Symantec 2009 Annual Report Download - page 112

December 15, 2008. We are currently evaluating the impact of the pending adoption of FSP No. FAS 141(R)-1 on
our consolidated financial statements. See Note 14 for further details.
In February 2007, the FASB issued SFAS No. 159, The Fair Value Option for Financial Assets and Financial
Liabilities, including an amendment of SFAS No. 115. SFAS No. 159 permits companies to choose to measure
certain financial instruments and certain other items at fair value and requires unrealized gains and losses on items
for which the fair value option has been elected to be reported in earnings. SFAS No. 159 is effective for fiscal years
beginning after November 15, 2007. Effective March 29, 2008, we adopted SFAS 159, but we have not elected the
fair value option for any eligible financial instruments as of April 3, 2009.
In September 2006, the FASB issued SFAS No. 157, Fair Value Measurements, which defines fair value,
establishes guidelines for measuring fair value and expands disclosures regarding fair value measurements.
SFAS No. 157 does not require any new fair value measurements but rather eliminates inconsistencies in guidance
found in various prior accounting pronouncements and is effective for fiscal years beginning after November 15,
2007. In February 2008, the FASB issued FSP No. 157-2, The Effective Date of FASB Statement No. 157, which
delays the effective date of SFAS No. 157 for all nonfinancial assets and nonfinancial liabilities, except those that
are recognized or disclosed at fair value in the financial statements on a recurring basis (at least annually), until
fiscal years beginning after November 15, 2008, and interim periods within those fiscal years. These nonfinancial
items include assets and liabilities such as reporting units measured at fair value in a goodwill impairment test and
nonfinancial assets acquired and liabilities assumed in a business combination. Effective March 29, 2008, we
adopted SFAS No. 157 for financial assets and liabilities recognized at fair value on a recurring basis. The partial
adoption of SFAS No. 157 for financial assets and liabilities did not have a material impact on our consolidated
financial position, results of operations or cash flows. In October 2008, the FASB issued FSP No. FAS 157-3,
Determining the Fair Value of a Financial Asset When the Market for That Asset Is Not Active. FSP No. FAS 157-3
provides examples to illustrate key considerations in determining the fair value of a financial asset when the market
for that financial asset is not active. FSP No. FAS 157-3 is effective upon issuance. The adoption of the FSP did not
have a material impact on our consolidated financial statements. In April 2009, the FASB issued FSP No. FAS 157-4,
Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly
Decreased and Identifying Transactions That Are Not Orderly. FSP No. FAS 157-4 provides guidance on estimating
fair value when the volume and level of activity for an asset or liability have significantly decreased and determining
when a transaction is not orderly. FSP No. FAS 157-4 is effective for interim and annual periods ending after
June 15, 2009. We do not expect adoption of the FSP to have a material impact on our consolidated financial
statements. See Note 2 for information and related disclosures regarding our fair value measurements.
Item 7A. Quantitative and Qualitative Disclosures about Market Risk
We are exposed to various market risks related to fluctuations in interest rates, foreign currency exchange rates,
and equity prices. We may use derivative financial instruments to mitigate certain risks in accordance with our
investment and foreign exchange policies. We do not use derivatives or other financial instruments for trading or
speculative purposes.
Interest Rate Risk
Our exposure to interest rate risk relates primarily to our short-term investment portfolio and the potential
losses arising from changes in interest rates. Our investment objective is to achieve the maximum return compatible
with capital preservation and our liquidity requirements. Our strategy is to invest our cash in a manner that preserves
capital, maintains sufficient liquidity to meet our cash requirements, maximizes yields consistent with approved
credit risk, and limits inappropriate concentrations of investment by sector, credit, or issuer. We classify our cash
equivalents and short-term investments in accordance with SFAS No. 115, Accounting for Certain Investments in
Debt and Equity Securities. We consider investments in instruments purchased with an original maturity of 90 days
or less to be cash equivalents. We classify our short-term investments as available-for-sale, and short-term
investments consist of marketable debt or equity securities with original maturities in excess of 90 days. Our
cash equivalents and short-term investment portfolios consist primarily of money market funds, commercial paper,
corporate debt securities, and U.S. government and government-sponsored debt securities. Our short-term
investments do not include equity investments in privately held companies. Our short-term investments are
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