Symantec 2012 Annual Report Download - page 181

SYMANTEC CORPORATION
Notes to Consolidated Financial Statements — (Continued)
The aggregate changes in the balance of gross unrecognized tax benefits from April 3, 2009 to March 30,
2012 were as follows (in millions):
Balance as of April 3, 2009 ..................................................... $633
Settlements and effective settlements with tax authorities and related remeasurements ....... (7)
Lapse of statute of limitations ................................................... (14)
Increases in balances related to tax positions taken during prior years .................... 12
Decreases in balances related to tax positions taken during prior years ................... (92)
Increases in balances related to tax positions taken during current year ................... 11
Balance as of April 2, 2010 ..................................................... $543
Settlements and effective settlements with tax authorities and related remeasurements ....... (6)
Lapse of statute of limitations ................................................... (27)
Increases in balances related to tax positions taken during prior years .................... 13
Decreases in balances related to tax positions taken during prior years ................... (36)
Increases in balances related to tax positions taken during current year ................... 40
Balance as of April 1, 2011 ..................................................... $527
Settlements and effective settlements with tax authorities and related remeasurements ....... (62)
Lapse of statute of limitations ................................................... (12)
Increases in balances related to tax positions taken during prior years .................... 78
Decreases in balances related to tax positions taken during prior years ................... (30)
Increases in balances related to tax positions taken during current year ................... 118
Balance as of March 30, 2012 ................................................... $619
Of the $92 million of changes in gross unrecognized tax benefits during the fiscal year as disclosed above,
approximately $32 million was provided through purchase accounting in connection with acquisitions during
fiscal 2012. This gross liability is reduced by offsetting tax benefits associated with the correlative effects of
potential transfer pricing adjustments, interest deductions, and state income taxes, as well as payments made to
date.
Of the total unrecognized tax benefits at March 30, 2012, $612 million, if recognized, would favorably
affect the Company’s effective tax rate, while $7 million would affect the cumulative translation adjustments.
However, one or more of these unrecognized tax benefits could be subject to a valuation allowance if and when
recognized in a future period, which could impact the timing of any related effective tax rate benefit.
At March 30, 2012, before any tax benefits, we had $73 million of accrued interest and penalties on
unrecognized tax benefits. Interest included in our provision for income taxes was approximately $11 million for
the year ended March 30, 2012. If the accrued interest and penalties do not ultimately become payable, amounts
accrued will be reduced in the period that such determination is made, and reflected as a reduction of the overall
income tax provision.
We file income tax returns in the U.S. on a federal basis and in many U.S. state and foreign jurisdictions.
Our two most significant tax jurisdictions are the U.S. and Ireland. Our tax filings remain subject to examination
by applicable tax authorities for a certain length of time following the tax year to which those filings relate. Our
2002 through 2012 fiscal years remain subject to examination by the Internal Revenue Service (“IRS”) for
U.S. federal tax purposes, and our 2007 through 2012 fiscal years remain subject to examination by the
102