Symantec 2010 Annual Report Download - page 139

SYMANTEC CORPORATION
Notes to Consolidated Financial Statements
Note 1. Summary of Significant Accounting Policies
Business
Symantec Corporation (“we,” “us,” “our,” and “the Company” refer to Symantec Corporation and all of its
subsidiaries) is a provider of security, storage and systems management solutions that help businesses and
consumers secure and manage their information. We provide customers worldwide with software and services
that protect, manage and control information risks related to security, data protection, storage, compliance, and
systems management. We help our customers manage cost, complexity and compliance by protecting their IT
infrastructure as they seek to maximize value from their IT investments.
Principles of Consolidation
The accompanying consolidated financial statements of Symantec Corporation and its wholly-owned sub-
sidiaries are prepared in conformity with generally accepted accounting principles in the United States. All
significant intercompany accounts and transactions have been eliminated. Certain prior year amounts have been
reclassified to conform to the current presentation with no impact on previously reported net income.
Fiscal Calendar
We have a 52/53-week fiscal year ending on the Friday closest to March 31. Unless otherwise stated,
references to years in this report relate to fiscal years rather than calendar years.
Fiscal Year Ended Weeks
2010 April 2, 2010 52
2009 April 3, 2009 53
2008 March 28, 2008 52
Our 2011 fiscal year will consist of 52 weeks and will end on April 1, 2011.
Use of Estimates
The preparation of consolidated financial statements in conformity with generally accepted accounting
principles in the United States requires management to make estimates and assumptions that affect the amounts
reported in the consolidated financial statements and accompanying notes. Estimates are based upon historical
factors, current circumstances and the experience and judgment of management. Management evaluates its
assumptions and estimates on an ongoing basis and may engage outside subject matter experts to assist in its
valuations. Actual results could differ from those estimates. Significant items subject to such estimates and
assumptions include those related to the allocation of revenue between recognized and deferred amounts, fair value
of financial instruments, valuation of goodwill, intangible assets and long-lived assets, valuation of stock-based
compensation, contingencies and litigation, and the valuation allowance for deferred income taxes.
Foreign Currency Translation
The functional currency of our foreign subsidiaries is generally the local currency. Assets and liabilities
denominated in foreign currencies are translated using the exchange rate on the balance sheet dates. Revenues and
expenses are translated using monthly average exchange rates prevailing during the year. The translation adjust-
ments resulting from this process are included as a component of Accumulated other comprehensive income. In
event of liquidation of a foreign subsidiary, the accumulated translation adjustment attributable to that foreign
subsidiary is reclassified from Accumulated other comprehensive income and included in Other Income, net. As a
result of such liquidations in fiscal 2010 and 2009, we recorded a net gain of $47 million and a net loss of $5 million,
respectively. Foreign currency transaction gains and losses are also included in Other income, net, in the
Consolidated Statements of Operations. Foreign currency transaction losses were $3 million and $8 million for
63