Symantec 2010 Annual Report Download - page 151

This guidance specifies that if the fair value of a debt security is less than its amortized cost basis, an other-than-
temporary impairment is triggered in circumstances in which (1) an entity has an intent to sell the security, (2) it is
more likely than not that the entity will be required to sell the security before recovery of its amortized cost basis, or
(3) the entity does not expect to recover the entire amortized cost basis of the security (that is, a credit loss exists).
Other-than-temporary impairments are separated into amounts representing credit losses, which are recognized in
earnings, and amounts related to all other factors, which are recognized in other comprehensive income (loss). The
adoption of this guidance did not have a material impact on our consolidated financial statements.
In the first quarter of fiscal 2010, we adopted new authoritative guidance on noncontrolling (minority) interests
in consolidated financial statements, which includes requiring noncontrolling interests be classified as a component
of consolidated stockholders’ equity and to identify earnings attributable to noncontrolling interests reported as part
of consolidated earnings. The guidance also requires the gain or loss on the deconsolidated subsidiary be measured
using the fair value of the noncontrolling equity investment. The adoption of this guidance did not have a material
impact on our consolidated financial statements.
In the first quarter of fiscal 2010, we adopted new authoritative guidance that specifies the way in which fair
value measurements should be made for non-financial assets and liabilities that are not measured and recorded at
fair value on a recurring basis, and specifies additional disclosures related to these fair value measurements. The
adoption of this guidance did not have a material impact on our consolidated financial statements.
In the fourth quarter of fiscal 2010, we adopted new authoritative guidance on revenue recognition for
multiple-element arrangements. The new standard changes the requirements for establishing separate units of
accounting in a multiple element arrangement and requires the allocation of arrangement consideration to each
deliverable to be based on the relative selling price. The new standard establishes a selling price hierarchy that
allows for the use of an estimated selling price to determine the allocation of arrangement consideration to a
deliverable in a multiple element arrangement where neither VSOE nor TPE is available for that deliverable.
Concurrently to issuing the new standard, the FASB also issued new authoritative guidance that excludes tangible
products that contain software and non-software elements that function together to provide the tangible products’
essential functionality from the scope of software revenue guidance. We have elected to adopt the new accounting
standards as of the beginning of fiscal 2010 for applicable transactions originating from or materially modified after
April 2, 2009. Our adoption did not have a material impact on our financial statements. Our joint venture also
adopted the accounting standards during its period ended December 31, 2009, which was applied to the beginning
of its fiscal year. As a result of the joint venture’s adoption of the accounting standards, our Loss from joint venture
decreased by $12 million during our fiscal 2010. See Note 6 for further details regarding the impact of this guidance
on our joint venture.
Recently Issued Authoritative Guidance
In June 2009, the FASB issued revised guidance which changes the model for determining whether an entity
should consolidate a variable interest entity (“VIE”). The standard replaces the quantitative-based risks and rewards
calculation for determining which enterprise has a controlling financial interest in a VIE with an approach focused
on identifying which enterprise has the power to direct the activities of a VIE and the obligation to absorb losses of
the entity or the right to receive the entity’s residual returns. The statement is effective as of the first quarter of our
fiscal 2011, and early adoption is prohibited. We do not expect the adoption of this new authoritative guidance to
have a material impact on our consolidated financial statements.
Note 2. Fair Value Measurements
We measure assets and liabilities at fair value based on an expected exit price as defined by the authoritative
guidance on fair value measurements, which represents 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. The
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Notes to Consolidated Financial Statements — (Continued)