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Note 7. 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
Compliance
Storage and
Server
Management Services
Total
Company
(In thousands)
Balance as of March 30, 2007 . . . . . . . . $102,810 $ 4,582,070 $5,400,718 $254,750 $10,340,348
Goodwill acquired through business
combinations
(a)
. . . . . . . . . . . . . . . . . — 882,321 — 11,705 894,026
Goodwill adjustments
(b),(c)
. . . . . . . . . . . — (11,294) (15,723) — (27,017)
Operating segment reclassification
(d)
. . . . — (1,372,380) 1,280,739 91,641 —
Balance as of March 28, 2008 . . . . . . . . $102,810 $ 4,080,717 $6,665,734 $358,096 $11,207,357
Consumer
Products
Security and
Compliance
Storage and
Server
Management Services
Total
Company
(In thousands)
Balance as of March 31, 2006 . . . . . . . . $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
(e)
. . . . . . . . . . . . . — (21,558) 3,733 (1,323) (19,148)
Effect of exchange rates . . . . . . . . . . . . — — — 892 892
Balance as of March 30, 2007 . . . . . . . . $102,810 $4,582,070 $5,400,718 $254,750 $10,340,348
(a)
Reflects adjustments made to goodwill acquired through business combinations of approximately $12 million in
the Services segment, including the effects of foreign exchange, for Company-i, approximately $633 million for
Altiris, approximately $259 million for Vontu, and approximately $10 million including a tax adjustment for
Transparent Logic. See Note 4 for further detail.
(b)
On March 31, 2007, we adjusted the Security and Compliance segment Goodwill balance related to a prior
acquisition as a result of the adoption of FIN 48. During the third and the fourth quarter of fiscal 2008, we
adjusted the Goodwill balance associated with the Veritas and Altiris acquisition as a result of tax adjustments
to stock based compensation, lease payoffs, and restricted stock award reversals. See Note 17 for further details.
(c)
The decrease of $16 million in the goodwill balance for the Storage and Server Management segment is
attributable to $9 million related to the sale of the APM business recorded during the second, third and fourth
quarters of fiscal 2008 and $7 million related to various acquisition related tax adjustments. See Note 6 for
further detail.
(d)
During the fourth quarter of fiscal 2008 we modified our operating segments to be better in line with how we
manage our business. As a result of this reclassification the above adjustments were made as required by
SFAS No. 142. See Note 19 for further details.
(e)
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.
85
SYMANTEC CORPORATION
Notes to Consolidated Financial Statements — (Continued)