Symantec 2009 Annual Report Download - page 134

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
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.
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SYMANTEC CORPORATION
Notes to Consolidated Financial Statements — (Continued)