Symantec 2010 Annual Report Download - page 158

(5)
Gross goodwill balances for the Consumer, Security and Compliance, Storage and Server Management, and
Services are $356 million, $4.1 billion, $6.7 billion, and $913 million, respectively as of April 3, 2009.
Accumulated impairment losses for the Security and Compliance, Storage and Server Management, and
Services are $2.7 billion, $4.2 billion, and $520 million, respectively as of April 3, 2009. There was no
accumulated impairment loss for the Consumer segment as of April 3, 2009.
(6)
During the first quarter of fiscal 2010, we changed our reporting segments to better align to our operating
structure, resulting in the Enterprise Vault products that were formerly included in the Security and Compliance
segment being moved to the Storage and Server Management segment. Also, Software-as-a-Service, which was
a standalone reporting unit in fiscal 2009, moved to either the Security and Compliance segment or the Storage
and Server Management segment from the Services segment, based on the nature of the service delivered. The
predominant amount of SaaS goodwill went to the Security and Compliance segment. See Note 11 for segment
information.
(7)
Gross goodwill balances for the Consumer, Security and Compliance, Storage and Server Management, and
Services are $356 million, $4.0 billion, $7.2 billion, and $461 million, respectively as of April 2, 2010.
Accumulated impairment losses for Security and Compliance, Storage and Server Management, and Services
are $2.4 billion, $4.6 billion, and $442 million, respectively as of April 2, 2010. There was no accumulated
impairment loss for the Consumer segment as of April 2, 2010. These balances are reflective of amounts after
adjustment for segment reclassifications during the period.
During the fourth quarter of fiscal 2010, in accordance with our accounting policy as described in Note 1, we
performed our annual impairment analysis and determined that goodwill was not impaired. Based on the
impairment analysis performed, we determined that the fair value of each of our reporting units exceeded its
carrying value by more than 20% of the carrying value.
During the third quarter of fiscal 2009, based on a combination of factors, including the current economic
environment and a decline in our market capitalization, we concluded that there were sufficient potential
impairment indicators that required us to perform an interim goodwill impairment analysis. 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.
The calculation of potential goodwill impairment requires significant judgment at many points during the
analysis. In determining the carrying value of equity of the reporting units, we applied judgment to allocate assets
and liabilities, such as accounts receivable and property and equipment, based on the specific identification or
relevant driver, as they are not held by those reporting units but by functional departments. Furthermore, we utilize
the income approach, under which we calculate fair value based on the estimated discounted future cash flows of
that specific reporting unit. The income approach was determined to be the most representative valuation technique
that would be utilized by a market participant in an assumed transaction, but we also considered the market
approach which measures the value of an asset through an analysis of recent sales or offerings of comparable
property. We also consider our market capitalization on the date we perform our analysis as compared to the sum of
the fair values of our reporting units to assess the reasonableness of the values of the reporting units determined
under the income approach.
The income approach requires us to make estimates and judgments about the future cash flows of each
reporting unit as well as discount rates to be applied. Although our cash flow forecasts are based on assumptions that
are consistent with the plans and estimates we are using to manage the underlying reporting units, there is
significant judgment in determining the cash flows attributable to these reporting units. For the fiscal 2010 analysis,
due to the improving overall economic environment and its impact on our long-term estimates, our estimated future
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SYMANTEC CORPORATION
Notes to Consolidated Financial Statements — (Continued)