Symantec 2012 Annual Report Download - page 147

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 global provider of security, storage, and systems management solutions that help organizations
and consumers secure and manage their information-driven world. Our software and services protect against
advanced threats enabling confidence wherever information is used or stored.
Principles of consolidation
The accompanying consolidated financial statements of Symantec Corporation and its wholly-owned
subsidiaries are prepared in conformity with generally accepted accounting principles in the United States
(“U.S.”). Noncontrolling interest positions of certain of our consolidated entities are reported as a separate
component of consolidated equity from the equity attributable to our stockholders for all periods presented. All
significant intercompany accounts and transactions have been eliminated.
Fiscal calendar
We have a 52/53-week fiscal year ending on the Friday closest to March 31. Our fiscal 2012, 2011 and 2010
were 52-week years and our 2013 fiscal year will consist of 52 weeks.
Reclassifications
Certain prior period amounts have been reclassified to conform to the current year presentation including
the reclassification of certain revenue from Content, subscription and maintenance revenue to License revenue.
License revenue includes revenue from software licenses, appliances and certain revenue-sharing arrangements.
Use of estimates
The preparation of consolidated financial statements in conformity with generally accepted accounting
principles in the U.S. 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, 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
adjustments resulting from this process are included as a component of Accumulated other comprehensive
income. Deferred tax assets (liabilities) are established on the cumulative translation adjustment attributable to
unremitted foreign earnings that are not intended to be indefinitely reinvested. In the event of liquidation of a
foreign subsidiary, the accumulated translation adjustment attributable to that foreign subsidiary is reclassified
68