Symantec 2013 Annual Report Download - page 195

SYMANTEC CORPORATION
Notes to Consolidated Financial Statements — (Continued)
Pretax income from international operations was $652 million, $891 million, and $460 million for fiscal
2013, fiscal 2012, and 2011, respectively.
The difference between our effective income tax and the federal statutory income tax is as follows:
Year Ended
March 29,
2013
March 30,
2012
April 1,
2011
(In millions)
Expected Federal statutory tax .............................. $358 $515 $255
State taxes, net of federal benefit ............................ 25 12 12
Foreign earnings taxed at less than the federal rate .............. (96) (160) (84)
Domestic production activities deduction ..................... (12) (20) (9)
Federal research and development credit ...................... (10) (12) (10)
Valuation allowance increase (decrease) ...................... — 5 (15)
Benefit of losses from joint venture .......................... — (1) (2)
VERITAS tax positions (including valuation allowance release) . . . (9) (52) (49)
Other, net .............................................. 2 11 7
$ 258 $ 298 $ 105
The principal components of deferred tax assets are as follows:
As of
March 29,
2013
March 30,
2012
(In millions)
Deferred tax assets:
Tax credit carryforwards ......................................... $ 54 $ 43
Net operating loss carryforwards of acquired companies ................ 102 137
Other accruals and reserves not currently tax deductible ................ 144 152
Deferred revenue ............................................... 93 95
Loss on investments not currently tax deductible ...................... 10 23
State income taxes .............................................. 29 33
Goodwill ..................................................... — 36
Stock-based compensation ....................................... 36 60
Other ........................................................ — 4
468 583
Valuation allowance .............................................. (66) (55)
Total deferred tax assets ......................................... $402 $528
Deferred tax liabilities:
Tax over book depreciation ....................................... $ (73) $ (41)
Goodwill ..................................................... (19) —
Intangible assets ............................................... (102) (208)
Unremitted earnings of foreign subsidiaries .......................... (372) (329)
Other ........................................................ (3) —
Total deferred tax liabilities ...................................... $(569) $(578)
Net deferred tax assets ............................................ $(167) $ (50)
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