Symantec 2009 Annual Report Download - page 135

Note 2. Fair Value Measurements
We measure financial assets and liabilities at fair value based upon exit price, representing the amount that
would be received on the sale of an asset or paid to transfer a liability, as the case may be, in an orderly transaction
between market participants. As such, fair value may be based on assumptions that market participants would use in
pricing an asset or liability. SFAS No. 157 (as impacted by FSP Nos. 157-1, 157-2 and 157-3) establishes a
consistent framework for measuring fair value on either a recurring or nonrecurring basis whereby inputs, used in
valuation techniques, are assigned a hierarchical level. The following are the hierarchical levels of inputs to measure
fair value:
•Level 1: Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active
markets.
•Level 2: Inputs reflect quoted prices for identical assets or liabilities in markets that are not active; quoted
prices for similar assets or liabilities in active markets; inputs other than quoted prices that are observable for
the assets or liabilities; or inputs that are derived principally from or corroborated by observable market data
by correlation or other means.
•Level 3: Unobservable inputs reflecting our own assumptions incorporated in valuation techniques used to
determine fair value. These assumptions are required to be consistent with market participant assumptions
that are reasonably available.
The following table summarizes our financial assets and liabilities measured at fair value on a recurring basis,
by level within the fair value hierarchy:
Level 1 Level 2 Level 3 Total
As of April 3, 2009
(In thousands)
Cash equivalents........................ $389,150 $ 952,860 $ — $1,342,010
Short-term investments ................... 3,306 195,361 — 198,667
Total . . ............................ $392,456 $1,148,221 $ — $1,540,677
Certain financial assets and liabilities are not included in the table above because they are measured at fair
value on a nonrecurring basis and no fair value measurements have been made during the year ended April 3, 2009.
These include our convertible Senior Notes and bond hedge (including the derivative call option).
FSP FAS No. 157-2, which measures fair value of nonfinancial assets and liabilities which are recognized or
disclosed at fair value on a nonrecurring basis, will be effective beginning in fiscal 2010. This deferral applies to us
for such items as nonfinancial assets and liabilities initially measured at fair value in a business combination but not
measured at fair value in subsequent periods, nonfinancial long-lived and intangible asset groups measured at fair
value for an impairment assessment and reporting units measured at fair value as part of a goodwill impairment test.
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Notes to Consolidated Financial Statements — (Continued)