Symantec 2009 Annual Report Download - page 137

Note 4. Assets Held for Sale
The following table summarizes the changes in assets held for sale (in thousands):
Assets held for sale as of March 30, 2007 ................................... $ —
Added properties, net of impairment and assets of a business ................... 232,638
Sold properties and assets of a business
(1)
................................. (193,070)
Assets held for sale as of March 28, 2008 ................................... 39,568
Added properties, net of impairment ..................................... 109,047
Sold properties
(1)
.................................................... (38,203)
Reclassifications
(2)
................................................... (46,374)
Additional impairments and adjustments................................... (5,420)
Assets held for sale as of April 3, 2009 ..................................... $ 58,618
(1)
We sold properties and a business for cash proceeds of $40 million and $98 million during fiscal 2009 and 2008,
respectively. The loss on the sale of the business was $95 million and is included in Impairments of assets held
for sale. The gain and the loss on the sales of properties were not significant.
(2)
Due to changing real estate market conditions and a review of our real estate holdings, we decided to retain two
properties previously held for sale. As a result, we reclassified these properties to Property and equipment.
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, and thus, we have recorded impairments of assets held for sale of
$47 million and $96 million during fiscal 2009 and 2008, respectively. There were no impairments in fiscal 2007.
In fiscal 2009 and 2008, as part of our ongoing review of real estate holdings, we determined that certain
properties were underutilized and committed to sell these properties. We expect the sale of the remaining properties
to be completed no later than the third quarter of fiscal 2010.
In fiscal 2008, we determined that certain tangible and intangible assets and liabilities of the Storage and
Server Management segment did not meet the long term strategic objectives of the segment. During the fourth
quarter of 2008, we sold the tangible and intangible assets (and liabilities) classified as held for sale.
Note 5. Acquisitions
Fiscal 2009 acquisitions
MessageLabs Purchase
On November 14, 2008, we completed the acquisition of MessageLabs Group Limited (“MessageLabs”), a
nonpublic United Kingdom-based provider of managed services to protect, control, encrypt, and archive electronic
communications. The acquisition complements our SaaS business. In exchange for all of the voting equity interests
of MessageLabs, we paid the following (in thousands):
Cash paid for acquisition of common stock outstanding, excluding cash acquired ....... $622,214
Acquisition-related transaction costs ........................................ 8,107
Total purchase price .................................................... $630,321
The results of operations for MessageLabs are included since the date of acquisition as part of the Services
segment. Supplemental proforma information for MessageLabs is not material to our financial results and is
therefore not included. In addition, the purchase price is subject to an adjustment of up to an additional $13 million
in cash due to estimates in the initial purchase price that have yet to be finalized.
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SYMANTEC CORPORATION
Notes to Consolidated Financial Statements — (Continued)