Symantec 2009 Annual Report Download - page 104

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Impairment of goodwill and Impairment of assets held for sale
Fiscal
2009 $ %
Fiscal
2008 $ %
Fiscal
2007
2009 vs. 2008 2008 vs. 2007
($ in thousands)
Impairment of goodwill . . . . $7,418,574 $7,418,574 100% $ — $ — 0% $—
Percentage of total net
revenues ............. 121% 0% 0%
Impairment of assets held
for sale .............. $ 46,592 $ (49,224) (51)% $95,816 $95,816 0% $—
Percentage of total net
revenues ............. 1% 2% 0%
Based on a combination of factors, including the current economic environment and a decline in our market
capitalization, we concluded that there were sufficient indicators to require us to perform an interim goodwill
impairment analysis during the third quarter of fiscal 2009. The analysis was not completed during the third quarter
of fiscal 2009 and an estimated impairment charge of $7.0 billion was recorded. The analysis was subsequently
finalized and an additional impairment charge of $413 million was included in our results for the fourth quarter of
fiscal 2009. As a result, we incurred a total impairment charge of $7.4 billion for fiscal 2009. We also performed our
annual impairment analysis during the fourth quarter of fiscal 2009 and determined that no additional impairment
charge was necessary.
For the purposes of this analysis, our estimates of fair value are based on a combination of the income
approach, and the market approach. The income approach estimates the fair value of our reporting units based on the
future discounted cash flows. We also consider the market approach, which estimates the fair value of our reporting
units based on comparable market prices.
During the year ended April 3, 2009, we recognized an impairment of $47 million on certain land and buildings
classified as held for sale. SFAS No. 144 provides that a long-lived asset classified as held for sale should be
measured at the lower of its carrying amount or fair value less cost to sell.
During the year ended March 28, 2007, we determined that the APM business in the Storage and Server
Management segment did not meet the long-term strategic objectives of the segment. As such, we recognized an
impairment of $96 million, primarily due to sale of the APM business during fiscal 2008.
Patent settlement
Fiscal
2009 $ %
Fiscal
2008 $ %
Fiscal
2007
2009 vs. 2008 2008 vs. 2007
($ in thousands)
Patent settlement . . . . . . . . . . . . . . . . . . . . . . . . $(9,900) $(9,900) 100% $— $— 0% $—
Percentage of total net revenues . . . . . . . . . . . . . . 0% 0% 0%
During the third quarter of fiscal 2009, we settled a patent lawsuit in which the result was a gain of
approximately $10 million reflected in the Consolidated Statement of Operations under the caption “Patent
settlement.”
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