Symantec 2008 Annual Report Download - page 154

Fiscal Years
We have a 52/53-week fiscal year ending on the Friday closest to March 31. Unless otherwise stated,
references to years in this report relate to fiscal years rather than calendar years.
Fiscal Year Ended Weeks
2008 March 28, 2008 52
2007 March 30, 2007 52
2006 March 31, 2006 52
The fiscal year ending April 3, 2009 will comprise 53 weeks of operations.
Use of Estimates
The preparation of consolidated financial statements in conformity with generally accepted accounting
principles in the United States requires management to make estimates and assumptions that affect the amounts
reported in the consolidated financial statements and accompanying notes. Estimates are based upon historical
factors, current circumstances and the experience and judgment of management. Management evaluates its
assumptions and estimates on an ongoing basis and may engage outside subject matter experts to assist in its
valuations. Actual results could differ from those estimates. Significant items subject to such estimates and
assumptions include those related to the allocation of revenues between recognized and deferred amounts, carrying
values of goodwill, intangible assets and long-lived assets, valuation of stock-based compensation, and the
valuation allowance for deferred income taxes.
Foreign Currency Translation
The functional currency of our foreign subsidiaries is generally the local currency. Assets and liabilities
denominated in foreign currencies are translated using the exchange rate on the balance sheet dates. Revenues and
expenses are translated using monthly average exchange rates prevailing during the year. The translation adjust-
ments resulting from this process are included as a component of Stockholders’ equity in Accumulated other
comprehensive income. Foreign currency transaction gains and losses are included in Other income (expense), net,
in the Consolidated Statements of Income. Deferred tax assets (liabilities) are established on the cumulative
translation adjustment attributable to unremitted foreign earnings that are not intended to be indefinitely reinvested.
Revenue Recognition
We market and distribute our software products both as stand-alone software products and as integrated
product suites. We recognize revenue when the following conditions have been met:
• Persuasive evidence of an arrangement exists
• Delivery has occurred or services have been rendered
• Collection of a fixed or determinable amount is considered probable
If we determine that any one of the three criteria is not met, we will defer recognition of revenue until all the
criteria are met.
We derive revenue primarily from sales of content, subscriptions, and maintenance and licenses. We present
revenue net of sales taxes and any similar assessments.
Content, subscriptions, and maintenance revenue includes arrangements for software maintenance and
technical support for our products, content and subscription services primarily related to our security products,
revenue from arrangements where vendor-specific objective evidence, or VSOE, of the fair value of undelivered
elements does not exist, and arrangements for managed security services. These arrangements are generally offered
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SYMANTEC CORPORATION
Notes to Consolidated Financial Statements — (Continued)