Symantec 2010 Annual Report Download - page 143

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against accounts receivable when channel inventories are in excess of specified levels and for transactions where
collection of a receivable is not considered probable. The following table summarizes trade accounts receivable, net
of allowances and reserves, for the periods presented:
April 2,
2010
April 3,
2009
As of
(In millions)
Trade accounts receivable, net:
Receivables ................................................... $873 $858
Less: allowance for doubtful accounts ............................... (8) (9)
Less: reserve for product returns ................................... (9) (12)
Trade accounts receivable, net: ................................... $856 $837
Inventories
Inventories are valued at the lower of cost or market. Cost is principally determined using the first-in, first-out
method. Inventory predominantly consists of deferred costs of revenue and finished goods. Deferred costs of
revenue were $23 million as of April 2, 2010 and $24 million as of April 3, 2009, of which $17 million in both
periods was related to consumer products that include content updates and will be recognized ratably over the term
of the subscription.
Property and Equipment
Property, equipment, and leasehold improvements are stated at cost, net of accumulated depreciation and
amortization. We also capitalize certain costs incurred related to the development of internal use software. We
capitalize costs incurred during the application development stage related to the development of internal use
software. We expense costs incurred related to the planning and post-implementation phases of development as
incurred. Depreciation and amortization is provided on a straight-line basis over the estimated useful lives of the
related assets. Buildings are depreciated over 20 to 30 years, and leasehold improvements are depreciated over the
lesser of the life of the improvement or the initial lease term. Computer hardware and software is depreciated over
three to five years and office furniture and equipment is depreciated over a three to five-year period. The following
table summarizes property and equipment by categories for the periods presented:
April 2,
2010
April 3,
2009
As of
(In millions)
Property and equipment, net:
Computer hardware and software ................................. $1,237 $ 989
Office furniture and equipment ................................... 185 199
Buildings................................................... 440 483
Leasehold improvements........................................ 245 228
2,107 1,899
Less: accumulated depreciation and amortization .................... (1,299) (1,077)
808 822
Construction in progress ........................................ 70 73
Land ...................................................... 71 78
Property and equipment, net: ................................... $ 949 $ 973
Depreciation expense was $247 million, $250 million and $255 million in fiscal 2010, 2009 and 2008,
respectively.
67
SYMANTEC CORPORATION
Notes to Consolidated Financial Statements — (Continued)