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Note 4. Goodwill, Acquired Product Rights, and Other Intangible Assets
Goodwill
In accordance with SFAS No. 142, we allocate goodwill to our reporting units, which are the same as our
operating segments. Goodwill is allocated as follows:
Consumer
Products
Security and
Data
Management
Data Center
Management Services
Total
Company
(In thousands)
Balance as of March 31,
2006
(a)
................ $102,810 $4,597,889 $5,396,985 $233,361 $10,331,045
Goodwill acquired through
business combinations..... — 5,739 — 21,820 27,559
Goodwill adjustments
(b)
..... (21,558) 3,733 (1,323) (19,148)
Effect of exchange rates ..... — — — 892 892
Balance as of March 31,
2007 ................. $102,810 $4,582,070 $5,400,718 $254,750 $10,340,348
(a)
In the June 2006 quarter, we consolidated our Enterprise Security, Data Protection, and Storage and Server
Management segments into two segments — the Security and Data Management segment and the Data Center
Management segment. We changed our reportable segments to the following: Consumer Products, Security and
Data Management, Data Center Management, Services and Other. As a result, we reallocated goodwill as of
March 31, 2006. In conjunction with the reallocation of our segments, we determined that there were no
indicators of impairment.
(b)
During fiscal 2007, we adjusted the goodwill related to several prior acquisitions for individually insignificant
amounts primarily related to purchase consideration adjustments for cash received and adjustments related to
taxes. The tax adjustments consist of adjustments to increase deferred tax liabilities by approximately
$12 million and decrease income taxes payable by approximately $12 million related to pre-acquisition tax
contingencies and actual tax benefits arising from employee exercises of assumed fully-vested stock options.
Goodwill is tested for impairment on an annual basis, or earlier if indicators of impairment exist. We
completed our annual goodwill impairment test required by SFAS No. 142 during the March 2007 quarter and
determined that there was no impairment of goodwill.
Acquired product rights, net
Acquired product rights subject to amortization are as follows:
Gross Carrying
Amount
Accumulated
Amortization
Net Carrying
Amount
March 31, 2007
(In thousands)
Developed technology ......................... $1,610,199 $(754,328) $855,871
Patents..................................... 79,684 (25,677) 54,007
Backlog and other ............................ 60,661 (60,661) —
$1,750,544 $(840,666) $909,878
89
SYMANTEC CORPORATION
Notes to Consolidated Financial Statements — (Continued)