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SYMANTEC CORPORATION
Summary of Significant Accounting Policies
53
Business
Symantec is a world leader in utility software for business and personal computing. Our products and solutions
make users productive and keep their computers safe and reliable anywhere and anytime. Founded in 1982, we have
offices in 26 countries worldwide.
Principles of Consolidation
The accompanying consolidated financial statements include the accounts of Symantec Corporation and its wholly-
owned subsidiaries. All significant intercompany accounts and transactions have been eliminated.
Basis of Presentation
During the March 1999 quarter, we acquired Quarterdeck. During the September 1998 quarter, we acquired Intel’s
anti-virus business. During the June 1998 quarter, we acquired IBM’s anti-virus business and Binary’s operations.
See Note 3 of Notes to Consolidated Financial Statements in this Form 10-K. Each of these acquisitions was
accounted for as a purchase and, accordingly, the operating results have been included in our consolidated financial
statements since the respective dates of acquisition.
During fiscal 1998, no companies were acquired by Symantec. During fiscal 1997, we acquired Delrina Corporation
and Fast Track, Inc. in transactions accounted for as poolings of interests. All financial information has been
restated to reflect the combined operations of Symantec and the acquired entities. The results of operations of Fast
Track were not material to our consolidated financial statements and therefore, amounts prior to the year of
acquisition were not combined with Symantec’s financial statements.
On January 6, 1999, we received a comment letter from the Securities and Exchange Commission with respect to our
Form 10-K for the fiscal year ended March 31, 1998 and Form 10-Q for the quarter ended September 30, 1998. The
comment letter contained questions related to accounting for certain acquisitions, including questions related to the
write-off of associated in-process research and development costs. We re-evaluated the Binary and IBM transactions
and the related in-process research and development costs as well as the other questions raised in the comment letter.
As a result, final operating results for the quarters ended June, September and December 1998 and the related year-
to-date amounts were restated for the adjustments made to our acquisitions of Binary and IBM’s anti-virus business.
In addition, we have reclassified our financial results related to the sales of our electronic forms product line to
JetForm Corporation and our network administration technologies to Hewlett-Packard Corporation from net
revenues to income, net of expense, from sale of technologies and product lines. Although there was no impact to our
net income, we have restated our fiscal 1998 and 1997 financials to reflect these reclassifications from revenue to
non-operating income.
Symantec has a 52/53-week fiscal accounting year. Accordingly, all references as of and for the periods ended
March 31, 1999, 1998 and 1997 reflect amounts as of and for the periods ended April 2, 1999, April 3, 1998 and
March 28, 1997, respectively. The fiscal accounting years ended April 2, 1999 and March 28, 1997 each comprised
52 weeks of operations and the fiscal accounting year ended April 3, 1998 comprised 53 weeks of operations.
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the amounts reported in the financial statements and
accompanying notes. Actual results could differ from those estimates.
Foreign Currency Translation
The functional currency of our foreign subsidiaries is the local currency. Assets and liabilities denominated in
foreign currencies are translated using the exchange rate on the balance sheet dates. The cumulative translation
adjustments resulting from this process are shown separately as a component of stockholders’ equity. Revenues and
expenses are translated using average exchange rates prevailing during the year. Foreign currency transaction gains
and losses are included in the determination of net income.
Revenue Recognition
Under Statement of Positions (SOP) 97-2 as modified by SOP 98-4 and SOP 98-9, we recognize revenue upon
persuasive evidence of an arrangement, delivery of software to the customer, determination that there are no
significant post-delivery obligations and collection of a fixed or determinable license fee is considered probable. We
defer revenue relating to all distribution and reseller channel inventory in excess of defined inventory levels in these