Symantec 2009 Annual Report Download - page 141

Download and view the complete annual report

Please find page 141 of the 2009 Symantec annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 167

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167

Note 6. Goodwill and Intangible Assets
Goodwill
We account for goodwill in accordance with SFAS No. 142. As such, we allocate goodwill to our reporting
units, which are the same as our operating segments, except for the Services operating segment, which includes the
SaaS and Other Services reporting units. Goodwill is allocated by operating segment as follows:
Consumer
Security and
Compliance
Storage and
Server
Management Services Total
(In thousands)
Balance as of March 30, 2007. . . . . . . . $102,810 $ 4,582,070 $ 5,400,718 $ 254,750 $10,340,348
Operating segment
reclassification
(1)
. . . . . . . . . . . . . — (1,372,380) 1,280,739 91,641 —
Goodwill acquired through business
combinations
(2)
. . . . . . . . . . . . . . . — 882,321 — 11,705 894,026
Goodwill adjustments
(3)(4)
. . . . . . . . — (11,294) (15,723) — (27,017)
Balance as of March 28, 2008. . . . . . . . $102,810 $ 4,080,717 $ 6,665,734 $ 358,096 $11,207,357
Operating segment
reclassification
(5)
. . . . . . . . . . . . . — (84,376) — 84,376 —
Goodwill acquired through business . . 253,360 54,182 — 470,280 777,822
combinations
(2)
Goodwill adjustments
(3)
. . . . . . . . . . — 3,766 (9,822) 74 (5,982)
Goodwill impairment . . . . . . . . . . . . — (2,699,763) (4,198,715) (520,096) (7,418,574)
Balance as of April 3, 2009 $356,170 $ 1,354,526 $ 2,457,197 $ 392,730 $ 4,560,623
(1)
In the fourth quarter of fiscal year 2008, we modified our operating segments to be better in line with how we
manage our business.
(2)
See Note 5 for acquisitions.
(3)
Reflects adjustments made to goodwill of prior acquisitions as a result of tax adjustments, primarily related to
stock-based compensation.
(4)
The decrease of $16 million in the goodwill balance for the Storage and Server Management segment’s
goodwill balance is attributable to $9 million related to the sale of the APM business and $7 million related to
various acquisition related tax adjustments.
(5)
In the first quarter of fiscal year 2009, we moved Altiris services from the Security and Compliance segment to
the Services segment. As a result of this reclassification the above adjustments were made as required by
SFAS No. 142.
Based on a combination of factors, including the current economic environment and a decline in our market
capitalization, we concluded that there were sufficient indicators to require us to perform an interim goodwill
impairment analysis during the third quarter of fiscal 2009. The analysis was not completed during the third quarter
of fiscal 2009 and an estimated impairment charge of $7.0 billion was recorded. The analysis was subsequently
finalized and an additional impairment charge of $413 million was included in our results for the fourth quarter of
fiscal 2009. As a result, we recorded a total non-cash goodwill impairment charge based on the interim impairment
analysis of $7.4 billion for fiscal 2009. We also performed our annual impairment analysis during the fourth quarter
of fiscal 2009 and determined that no additional impairment charge was required.
81
SYMANTEC CORPORATION
Notes to Consolidated Financial Statements — (Continued)