Symantec 2011 Annual Report Download - page 169

The principal components of deferred tax assets are as follows:
April 1,
2011
April 2,
2010
Year Ended
(In millions)
Deferred tax assets:
Tax credit carryforwards ......................................... $ 17 $ 16
Net operating loss carryforwards of acquired companies . ................. 181 148
Other accruals and reserves not currently tax deductible . ................. 141 137
Deferred revenue ............................................... 77 61
Loss on investments not currently tax deductible ....................... 17 23
Book over tax depreciation ....................................... — 20
State income taxes.............................................. 35 36
Goodwill ..................................................... 34 64
Other ....................................................... 79 81
581 586
Valuation allowance .............................................. (45) (67)
Total deferred tax assets ......................................... 536 519
Deferred tax liabilities:
Tax over book depreciation ....................................... $ (26) $ —
Intangible assets ............................................... (228) (272)
Unremitted earnings of foreign subsidiaries ........................... (282) (244)
Total deferred tax liabilities ....................................... (536) (516)
Net deferred tax assets ............................................ $ 0 $ 3
All of the $45 million total valuation allowance provided against our deferred tax assets is attributable to
acquisition-related assets. The valuation allowance decreased by a net of $22 million in fiscal 2011, resulting from
the release of $22 million of Irish deferred tax assets related to our Veritas 2000-2001 court case decision, current
year utilization, and a favorable change in our ability to use deferred tax assets on our tax returns; and a $6 million
decrease due to utilization of capital losses, partially offset by a $6 million increase attributable to intangible assets
and other miscellaneous items.
As of April 1, 2011, we have U.S. federal net operating losses attributable to various acquired companies of
approximately $170 million, which, if not used, will expire between fiscal 2012 and 2029. These net operating loss
carryforwards are subject to an annual limitation under Internal Revenue Code § 382, but are expected to be fully
realized. Furthermore, we have U.S. state net operating loss and credit carryforwards attributable to various
acquired companies of approximately $344 million and $13 million, respectively, which will expire in various fiscal
years. In addition, we have foreign net operating loss carryforwards attributable to various acquired foreign
companies of approximately $583 million net of valuation allowances, which, under current applicable foreign tax
law, can be carried forward indefinitely.
As a result of the impairment of goodwill in fiscal year 2009, we have cumulative pre-tax book losses, as measured
by the current and prior two years. We considered the negative evidence of this cumulative pre-tax book loss position on
our ability to continue to recognize deferred tax assets that are dependent upon future taxable income for realization. We
considered the following as positive evidence: the vast majority of the goodwill impairment is not deductible for tax
purposes and thus will not result in tax losses; we have a strong, consistent taxpaying history; we have substantial
U.S. federal income tax carryback potential; and we have substantial amounts of scheduled future reversals of taxable
99
SYMANTEC CORPORATION
Notes to Consolidated Financial Statements — (Continued)