Symantec 2014 Annual Report Download - page 118

Our effective tax rate includes the impact of certain undistributed foreign earnings for which no U.S. taxes
have been provided because such earnings are planned to be indefinitely reinvested outside the United
States. While we do not anticipate changing our intention regarding indefinitely reinvested earnings outside the
United States, material changes in our estimates of such earnings or tax legislation that limits or restricts the
amount of such earnings could materially impact our income tax provision and effective tax rate. If certain
foreign earnings previously treated as indefinitely reinvested outside the United States are repatriated, the related
U.S. tax liability may be reduced by any foreign income taxes paid on these earnings.
We account for uncertain tax positions pursuant to authoritative guidance based on a two-step approach to
recognize and measure those positions taken or expected to be taken in a tax return. The first step is to determine
if the weight of available evidence indicates that it is more likely than not that the tax position will be sustained
on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax
benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. We adjust
reserves for our uncertain tax positions due to changing facts and circumstances, such as the closing of a tax
audit, the refinement of estimates, or the realization of earnings or deductions that differ from our estimates. To
the extent that the final outcome of these matters is different than the amounts recorded, such differences will
impact our tax provision in our Consolidated Statements of Income in the period in which such determination is
made.
We must also assess the likelihood that deferred tax assets will be realized from future taxable income and,
based on this assessment establish a valuation allowance, if required. The determination of our valuation
allowance involves assumptions, judgments and estimates, including forecasted earnings, future taxable income,
and the relative proportions of revenue and income before taxes in the various domestic and international
jurisdictions in which we operate. To the extent we establish a valuation allowance or change the valuation
allowance in a period, we reflect the change with a corresponding increase or decrease to our tax provision in our
Consolidated Statements of Income.
RESULTS OF OPERATIONS
Total net revenue
Fiscal
2014
Change in Fiscal
2013
Change in Fiscal
2012$ % $ %
(Dollars in millions)
Content, subscription, and maintenance revenue $ 5,960 $ (61) (1)%$ 6,021 $ 198 3% $ 5,823
Percentage of total net revenue 89% 87% 87%
License revenue 716 (169) (19)% 885 (22) (2)% 907
Percentage of total net revenue 11% 13% 13%
Total $ 6,676 $ (230) (3)%$ 6,906 $ 176 3% $ 6,730
Fiscal 2014 compared to Fiscal 2013:
Content, subscription and maintenance revenue represented 89%, 87% and 87% of total net revenue for the
fiscal years ended 2014, 2013 and 2012, respectively. Content, subscription, and maintenance revenue decreased
primarily due to decreases from our User Productivity & Protection segment of $48 million and Information
Management segment of $26 million offset by an increase of $13 million from our Information Security segment.
License revenue includes sales of software licenses, appliances, and certain revenue sharing arrangements.
License revenue decreased primarily due to declines from our Information Management segment of $89 million,
User Productivity & Protection segment of $62 million and Information Security segment of $17 million.
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