Symantec 2013 Annual Report Download - page 197

SYMANTEC CORPORATION
Notes to Consolidated Financial Statements — (Continued)
The aggregate changes in the balance of gross unrecognized tax benefits from April 2, 2010 to March 29,
2013 were as follows (in millions):
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
Settlements and effective settlements with tax authorities and related remeasurements ...... (62)
Lapse of statute of limitations ................................................... (12)
Increases in balances related to tax positions taken during prior years .................... 78
Decreases in balances related to tax positions taken during prior years ................... (30)
Increases in balances related to tax positions taken during current year ................... 118
Balance as of March 30, 2012 ................................................... $619
Settlements and effective settlements with tax authorities and related remeasurements ...... (114)
Lapse of statute of limitations ................................................... (98)
Increases in balances related to tax positions taken during prior years .................... 11
Decreases in balances related to tax positions taken during prior years ................... (20)
Increases in balances related to tax positions taken during current year ................... 14
Balance as of March 29, 2013 ................................................... $412
Of the $207 million of changes in gross unrecognized tax benefits during the fiscal year as disclosed above,
approximately $1 million was provided through purchase accounting in connection with acquisitions during
fiscal 2013. This gross liability does not include offsetting tax benefits associated with the correlative effects of
potential transfer pricing adjustments, interest deductions, and state income taxes, as well as payments made to
date.
Of the total unrecognized tax benefits at March 29, 2013, $411 million, if recognized, would favorably
affect the Company’s effective tax rate, while $1 million would affect the cumulative translation adjustments.
However, one or more of these unrecognized tax benefits could be subject to a valuation allowance if and when
recognized in a future period, which could impact the timing of any related effective tax rate benefit.
At March 29, 2013, before any tax benefits, we had $46 million of accrued interest and penalties on
unrecognized tax benefits. Interest included in our provision for income taxes was a benefit of approximately
$37 million, offset by accruals of $12 million for the year ended March 29, 2013. If the accrued interest and
penalties do not ultimately become payable, amounts accrued will be reduced in the period that such
determination is made, and reflected as a reduction of the overall income tax provision.
We file income tax returns in the U.S. on a federal basis and in many U.S. state and foreign jurisdictions.
Our most significant tax jurisdictions are the U.S., Ireland, and Singapore. Our tax filings remain subject to
examination by applicable tax authorities for a certain length of time following the tax year to which those filings
relate. Our 2005 through 2013 fiscal years remain subject to examination by the Internal Revenue Service
(“IRS”) for U.S. federal tax purposes, our 2009 through 2013 fiscal years remain subject to examination by the
99