Symantec 2009 Annual Report Download - page 111

Upon adoption, we will record a debt discount, which will be amortized to interest expense through maturity of
the Senior Notes. Although we have not completed our evaluation of the impact of adoption, we expect to
retrospectively adjust the original carrying amount of the Senior Notes as of June 2006 to reflect a discount of
approximately $586 million on the date of issuance, with an offsetting increase in additional paid-in capital of
approximately $354 million and a decrease in deferred tax assets of approximately $232 million. Excluding the
corresponding impact of income taxes, we expect to retrospectively record an increase in non-cash interest expense
of approximately $91 million in fiscal 2008 and approximately $97 million in fiscal 2009. As a result of applying
the FSP, we also expect non-cash interest expense in fiscal 2010 to increase by approximately $104 million,
excluding the corresponding impact of income taxes. The additional non-cash interest expense will have no impact
on the total operating, investing and financing cash flows in prior periods or in future consolidated statements of
cash flows. If future interpretations of, or changes to, the FSP necessitate a further change in these reporting
practices, our previously reported and future results of operations could be adversely affected.
In May 2008, the FASB issued SFAS No. 162, The Hierarchy of Generally Accepted Accounting Principles.
SFAS No. 162 defines the order in which accounting principles that are generally accepted should be followed.
SFAS No. 162 is effective 60 days following the SEC’s approval of the Public Company Accounting Oversight
Board (“PCAOB”) amendments to AU Section 411, The Meaning of Present Fairly in Conformity with Generally
Accepted Accounting Principles. We do not expect the adoption of SFAS No. 162 to have a material impact on our
consolidated financial statements.
In April 2008, the FASB finalized FSP No. 142-3, Determination of the Useful Life of Intangible Assets. The
position amends the factors that should be considered in developing renewal or extension assumptions used to
determine the useful life of a recognized intangible asset under FASB SFAS No. 142. The position applies to
intangible assets that are acquired individually or with a group of other assets and both intangible assets acquired in
business combinations and asset acquisitions. FSP 142-3 is effective for fiscal years beginning after December 15,
2008, and interim periods within those fiscal years. We are currently evaluating the impact of the pending adoption
of FSP 142-3 on our consolidated financial statements.
In December 2007, the FASB issued SFAS No. 160, Noncontrolling Interests in Consolidated Financial
Statements, an amendment of ARB No. 51. The standard changes the accounting for noncontrolling (minority)
interests in consolidated financial statements including the requirements to classify noncontrolling interests as a
component of consolidated stockholders’ equity, to identify earnings attributable to noncontrolling interests
reported as part of consolidated earnings, and to measure gain or loss on the deconsolidated subsidiary using
the fair value of the noncontrolling equity investment. Additionally, SFAS No. 160 revises the accounting for both
increases and decreases in a parent’s controlling ownership interest. SFAS No. 160 is effective for fiscal years
beginning after December 15, 2008, with early adoption prohibited. We do not expect the adoption of SFAS No. 160
to have a material impact on our consolidated financial statements.
In December 2007, the FASB issued SFAS No. 141(R). This standard changes the accounting for business
combinations by requiring that an acquiring entity measures and recognizes identifiable assets acquired and
liabilities assumed at the acquisition date fair value with limited exceptions. The changes include the treatment of
acquisition related transaction costs, the valuation of any noncontrolling interest at acquisition date fair value, the
recording of acquired contingent liabilities at acquisition date fair value and the subsequent re-measurement of such
liabilities after acquisition date, the recognition of capitalized in-process research and development, the accounting
for acquisition-related restructuring cost accruals subsequent to the acquisition date, and the recognition of changes
in the acquirer’s income tax valuation allowance. SFAS No. 141(R) is effective for fiscal years beginning after
December 15, 2008, with early adoption prohibited. We are currently evaluating the impact of the pending adoption
of SFAS No. 141(R) on our consolidated financial statements. The accounting treatment related to pre-acquisition
uncertain tax positions will change when SFAS No. 141(R) becomes effective, which will be in the first quarter of
our fiscal year 2010. At such time, any changes to the recognition or measurement of uncertain tax positions related
to pre-acquisition periods will be recorded through income tax expense, where currently the accounting treatment
would require any adjustment to be recognized through the purchase price. In April 2009, the FASB issued FSP
No. FAS 141(R)-1, Accounting for Assets Acquired and Liabilities Assumed in a Business Combination That Arise
from Contingencies. FSP No. FAS 141(R)-1 provides guidance on the accounting and disclosure of contingencies
acquired or assumed in a business combination. FSP No. FAS 141(R)-1 is effective for fiscal years beginning after
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