Symantec 2011 Annual Report Download - page 172

In July 2008, we reached an agreement with the IRS concerning our eligibility to claim a lower tax rate on a
distribution made from a Veritas foreign subsidiary prior to the July 2005 acquisition. The distribution was intended
to be made pursuant to the American Jobs Creation Act of 2004, and therefore eligible for a 5.25% effective
U.S. federal rate of tax, in lieu of the 35% statutory rate. The final impact of this agreement remains uncertain since
this relates to the taxability of earnings that are otherwise the subject of transfer pricing matters at issue in the IRS
examination of Veritas tax years 2002-2005. To the extent that we owe taxes as a result of these transfer pricing
matters in years prior to the distribution, we anticipate that the incremental tax due from this negotiated agreement
will decrease. We currently estimate that the most probable outcome from this negotiated agreement will be that we
will owe $13 million or less, for which an accrual has already been made.
We continue to monitor the progress of ongoing income tax controversies and the impact, if any, of the
expected tolling of the statute of limitations in various taxing jurisdictions.
Note 13. Earnings Per Share
Basic and diluted earnings per share are computed on the basis of the weighted average number of shares of
common stock outstanding during the period. Diluted earnings per share also includes the incremental effect of dilutive
potential common shares outstanding during the period using the treasury stock method. Dilutive potential common
shares include shares underlying outstanding stock options, restricted stock, warrants and Convertible Senior Notes.
The components of earnings per share are as follows:
April 1,
2011
April 2,
2010
April 3,
2009
Year Ended
(In millions, except per share data)
Net income (loss) per share attributable to Symantec
Corporation stockholders — basic:
Net income (loss) attributable to Symantec Corporation
stockholders ........................................ $597 $714 $(6,786)
Net income (loss) per share attributable to Symantec Corporation
stockholders — basic .................................. $0.77 $0.88 $ (8.17)
Net income (loss) per share attributable to Symantec
Corporation stockholders — diluted:
Net income (loss) attributable to Symantec Corporation
stockholders ........................................ $597 $714 $(6,786)
Net income (loss) per share attributable to Symantec Corporation
stockholders — diluted ................................ $0.76 $0.87 $ (8.17)
Weighted average outstanding common shares attributable to
Symantec Corporation stockholders — basic................. 778 810 831
Shares issuable from assumed exercise of stock options .......... 4 6 —
Dilutive impact of restricted stock .......................... 4 3 —
Total weighted-average shares outstanding attributable to Symantec
Corporation stockholders — diluted . ...................... 786 819 831
Anti-dilutive weighted-average stock options
(1)
................ 43 47 61
Anti-dilutive weighted-average restricted stock
(1)
............... — — 2
102
SYMANTEC CORPORATION
Notes to Consolidated Financial Statements — (Continued)