Symantec 2012 Annual Report Download - page 110

strategic acquisitions have continued to contribute positively to our revenue in fiscal 2012. Of the total increase
in revenue, approximately $486 million was due to the growth from our existing products and services and $54
million from our fiscal 2012 acquisitions. We expect that our acquisitions will continue to contribute positively
to our revenue in future periods.
Our revenue grew both domestically and internationally in fiscal 2012 as compared to fiscal 2011.
Fluctuations in the U.S. dollar compared to foreign currencies favorably impacted our international revenue by
$145 million for fiscal 2012 as compared to fiscal 2011 and unfavorably by $53 million for fiscal 2011 as
compared to fiscal 2010. For fiscal 2012, we experienced the highest growth in revenue, on a percentage basis, in
the Asia Pacific and Japan region followed by the Americas. We also experienced increases in revenue from the
EMEA region despite overall weakness in the European economies.
Our revenue mix has gradually shifted to a greater proportion of Content, subscription, and maintenance
revenue, particularly revenue derived from subscription arrangements. This shift in our revenue mix is indicative
of our success in achieving a more subscription based revenue model and a greater mix of subscription sales as a
percentage of total sales. Revenue derived from subscription arrangements is recognized ratably over the
subscription period. We recognized fewer license sales during the fourth quarter of fiscal 2012, which are
generally recognized upon delivery of the product.
Our operating expenses increased for fiscal 2012 as compared to fiscal 2011 by $304 million, due to an
increase in the compensation expenses of $273 million and an adverse impact of the change in foreign currency
exchange rates of $68 million. Compensation expense increased primarily due to an increase in headcount due to
the overall growth of our business. Our operating expenses increased for similar reasons in fiscal 2011 as
compared to fiscal 2010.
Our non-operating income in fiscal 2012 increased by $573 million over fiscal 2011 primarily due to the
gain from the sale to Huawei of our ownership interest in the Huawei Symantec joint venture of $526 million.
See Note 5 of the Notes to Consolidated Financial Statements for additional information.
CRITICAL ACCOUNTING ESTIMATES
The preparation of the Consolidated Financial Statements and related notes included in this annual report in
accordance with generally accepted accounting principles in the United States, requires us to make estimates,
including judgments and assumptions, that affect the reported amounts of assets, liabilities, revenue, and
expenses, and related disclosure of contingent assets and liabilities. We have based our estimates on historical
experience and on various assumptions that we believe to be reasonable under the circumstances. We evaluate
our estimates on a regular basis and make changes accordingly. Historically, our critical accounting estimates
have not differed materially from actual results; however, actual results may differ from these estimates under
different conditions. If actual results differ from these estimates and other considerations used in estimating
amounts reflected in the Consolidated Financial Statements included in this annual report, the resulting changes
could have a material adverse effect on our Consolidated Statements of Income, and in certain situations, could
have a material adverse effect on our liquidity and financial condition.
A critical accounting estimate is based on judgments and assumptions about matters that are uncertain at the
time the estimate is made. Different estimates that reasonably could have been used or changes in accounting
estimates could materially impact the operating results or financial condition. We believe that the estimates
described below represent our critical accounting estimates, as they have the greatest potential impact on our
Consolidated Financial Statements. See also Note 1 of the Notes to the Consolidated Financial Statements
included in this annual report.
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