Symantec 2012 Annual Report Download - page 148

SYMANTEC CORPORATION
Notes to Consolidated Financial Statements — (Continued)
from Accumulated other comprehensive income and included in Other (expense) income, net. As a result of such
liquidations in fiscal 2012, 2011, and 2010, we recorded a net loss of $3 million, a net loss of $21 million, and a
net gain of $47 million, respectively. Foreign currency transaction gains and losses are also included in Other
(expense) income, net, in the Consolidated Statements of Income.
Revenue recognition
We market and distribute our software products both as stand-alone products and as integrated product
suites. We recognize revenue when 1) persuasive evidence of an arrangement exists, 2) delivery has occurred or
services have been rendered, 3) fees are fixed or determinable and 4) collectability is probable. If we determine
that any one of the four criteria is not met, we will defer recognition of revenue until all the criteria are met.
We derive revenue primarily from sales of content, subscriptions, and maintenance and licenses. We present
revenue net of sales taxes and any similar assessments.
Content, subscriptions, and maintenance revenue includes arrangements for software maintenance and
technical support for our products, content and subscription services primarily related to our security products,
revenue from arrangements where vendor-specific objective evidence (“VSOE”) of the fair value of undelivered
elements does not exist, arrangements for managed security services, and Software-as-a-Service (“SaaS”)
offerings. These arrangements are generally offered to our customers over a specified period of time, and we
recognize the related revenue ratably over the maintenance, subscription, or service period.
Content, subscriptions, and maintenance revenue also includes professional services revenue, which consists
primarily of the fees we earn related to consulting and educational services. We generally recognize revenue
from professional services as the services are performed or upon written acceptance from customers, if
applicable, assuming all other conditions for revenue recognition noted above have been met.
License revenue is derived primarily from the licensing of our various products and technology. We
generally recognize license revenue upon delivery of the product, assuming all other conditions for revenue
recognition noted above have been met. We enter into perpetual software license agreements through direct sales
to customers and indirect sales with distributors and resellers. The license agreements generally include product
maintenance agreements, for which the related revenue is included with Content, subscriptions, and maintenance
and is deferred and recognized ratably over the period of the agreements. License revenue also includes
appliances product revenue. We generally recognize appliance product revenue as each product is delivered,
assuming all other conditions for revenue recognition noted about have been met.
For arrangements that include multiple elements, including perpetual software licenses, maintenance,
services, and packaged products with content updates, managed security services, and subscriptions, we allocate
and defer revenue for the undelivered items based on VSOE of the fair value of the undelivered elements, and
recognize the difference between the total arrangement fee and the amount deferred for the undelivered items as
license revenue. VSOE of each element is based on historical evidence of our stand-alone sales of these elements
to third parties or from the stated renewal rate for the undelivered elements. When VSOE does not exist for
undelivered items, the entire arrangement fee is recognized ratably over the performance period. Our deferred
revenue consists primarily of the unamortized balance of enterprise product maintenance, consumer product
content updates, managed security services, subscriptions, and arrangements where VSOE does not exist for an
undelivered element.
For arrangements that include both software and non-software elements, we allocate revenue to the software
deliverables as a group and non-software deliverables based on their relative selling prices. In such
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