Symantec 2011 Annual Report Download - page 170

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temporary differences from our deferred tax liabilities. We have concluded that this positive evidence outweighs the
negative evidence and, thus, that the deferred tax assets as of April 1, 2011 of $536 million, after application of the
valuation allowances, are realizable on a “more likely than not” basis.
As of April 1, 2011, no provision has been made for federal or state income taxes on $2.1 billion of cumulative
unremitted earnings of certain of our foreign subsidiaries since we plan to indefinitely reinvest these earnings. As of
April 1, 2011, the unrecognized deferred tax liability for these earnings was $585 million.
The Company adopted the provisions of new authoritative guidance on income taxes, effective March 31,
2007. The cumulative effect of adopting this new guidance was a decrease in tax reserves of $16 million, resulting in
a decrease to Veritas goodwill of $10 million, an increase of $5 million to the March 31, 2007 Accumulated earnings
balance, and a $1 million increase in Additional paid-in capital. Upon adoption, the gross liability for unrecognized
tax benefits as of March 31, 2007 was $456 million, exclusive of interest and penalties.
The aggregate changes in the balance of gross unrecognized tax benefits since adoption were as follows (in
millions):
Beginning balance as of March 31, 2007 (date of adoption) .......................... $456
Settlements and effective settlements with tax authorities and related remeasurements. ...... (7)
Lapse of statute of limitations ................................................ (6)
Increases in balances related to tax positions taken during prior years................... 40
Decreases in balances related to tax positions taken during prior years .................. (6)
Increases in balances related to tax positions taken during current year.................. 111
Balance as of March 28, 2008 ................................................ $588
Settlements and effective settlements with tax authorities and related remeasurements. ...... (2)
Lapse of statute of limitations ................................................ (9)
Increases in balances related to tax positions taken during prior years................... 31
Decreases in balances related to tax positions taken during prior years .................. (19)
Increases in balances related to tax positions taken during current year.................. 44
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
Of the $16 million of changes in gross unrecognized tax benefits during the fiscal year as disclosed above,
approximately $22 million was provided through purchase accounting in connection with acquisitions during fiscal
100
SYMANTEC CORPORATION
Notes to Consolidated Financial Statements — (Continued)