Symantec 2014 Annual Report Download - page 125

The timing of the resolution of income tax examinations is highly uncertain, and the amounts ultimately
paid, if any, upon resolution of the issues raised by the taxing authorities may differ materially from the amounts
accrued for each year. Although potential resolution of uncertain tax positions involve multiple tax periods and
jurisdictions, it is reasonably possible that the gross unrecognized tax benefits related to these audits could
decrease (whether by payment, release, or a combination of both) in the next 12 months by between $20 million
and $140 million.
We continue to monitor the progress of ongoing tax controversies and the impact, if any, of the expected
tolling of the statute of limitations in various taxing jurisdictions.
Noncontrolling interest
In fiscal 2011, we completed the acquisition of the identity and authentication business of VeriSign,
including a controlling interest in its subsidiary VeriSign Japan K.K. (“VeriSign Japan”), a publicly traded
company on the Tokyo Stock Exchange. Given our majority ownership interest of 54% in VeriSign Japan, the
accounts of VeriSign Japan have been consolidated with our accounts, and a noncontrolling interest had been
recorded for the noncontrolling investors’ interests in the equity and operations of VeriSign Japan. During the
second quarter of fiscal 2013, we completed a tender offer and paid $92 million to acquire VeriSign Japan
common shares and stock rights, which increased our ownership percentage to 92%. During the third quarter of
fiscal 2013, we acquired the remaining 8% interest for $19 million and VeriSign Japan became a wholly-owned
subsidiary. The payment was made in the fourth quarter of fiscal 2013. See Note 14 of the Notes to Consolidated
Financial Statements in this annual report for additional information. For fiscal 2013 and 2012 the loss
attributable to the noncontrolling interest in VeriSign Japan was approximately $0 million.
LIQUIDITY AND CAPITAL RESOURCES
Sources of cash
We have historically relied on cash flow from operations, borrowings under a credit facility, and issuances
of debt and equity securities for our liquidity needs. As of March 28, 2014, we had cash and cash equivalents of
$3.7 billion and an unused credit facility of $1.0 billion resulting in a liquidity position of $4.7 billion. As of
March 28, 2014, $2.5 billion in cash, cash equivalents, and marketable equity securities were held by our foreign
subsidiaries. We have provided U.S. deferred taxes on a portion of our undistributed foreign earnings sufficient
to address the incremental U.S. tax that would be due if we needed such portion of these funds to support our
operations in the U.S.
Senior Notes: In the first quarter of fiscal 2013, we issued $600 million in principal amount of 2.75% senior
notes due June 2017 and $400 million in principal amount of 3.95% senior notes due June 2022, for an aggregate
principal amount of $1.0 billion. In the second quarter of fiscal 2011, we issued $350 million in principal amount
of 2.75% senior notes due September 2015 and $750 million in principal amount of 4.20% senior notes due
September 2020, for an aggregate principal amount of $1.1 billion.
Revolving Credit Facility: In the second quarter of fiscal 2011, we entered into a $1.0 billion senior
unsecured revolving credit facility (“credit facility”), which was amended in the first quarter of 2013 to extend
the term to June 2017. Under the terms of this credit facility, we must comply with certain financial and non-
financial covenants, including a debt to EBITDA (earnings before interest, taxes, depreciation and amortization)
covenant. As of March 28, 2014, we were in compliance with all required covenants, and there was no
outstanding balance on the credit facility.
We believe that our existing cash and investment balances, our available revolving credit facility, our ability
to issue new debt instruments, and cash generated from operations will be sufficient to meet our working capital
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