Symantec 2013 Annual Report Download - page 196

SYMANTEC CORPORATION
Notes to Consolidated Financial Statements — (Continued)
The $66 million total valuation allowance provided against our deferred tax assets as of March 29, 2013 is
mainly attributable to net operating loss and tax credit carryforwards of acquired companies, state tax credits, and
net operating losses in foreign jurisdictions. The valuation allowance increased by a net of $11 million in fiscal
2013, related mostly to state research tax credits that are not deemed more likely than not to be realized.
As of March 29, 2013, we have U.S. federal net operating losses attributable to various acquired companies
of approximately $90 million, which, if not used, will expire between fiscal 2014 and 2032. 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 $279 million and $68 million, respectively. If not used, our U.S. state net
operating losses will expire between fiscal 2014 and 2032 and the majority of our U.S. state credit carryforwards
can be carried forward indefinitely. In addition, we have foreign net operating loss carryforwards attributable to
various acquired foreign companies of approximately $331 million net of valuation allowances, the majority of
which, under current applicable foreign tax law, can be carried forward indefinitely.
In assessing the ability to realize our deferred tax assets, we considered whether it was more likely than not
that some portion or all the deferred tax assets will not be realized. We considered the following: we have
historical cumulative book income, as measured by the current and prior two years, we have 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 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
March 29, 2013 of $402 million, after application of the valuation allowances described above, are realizable on
a “more likely than not” basis.
As of March 29, 2013, no provision has been made for federal or state income taxes on $2.8 billion of
cumulative unremitted earnings of certain of our foreign subsidiaries since we plan to indefinitely reinvest these
earnings. As of March 29, 2013, the unrecognized deferred tax liability for these earnings was $830 million.
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