Symantec 2012 Annual Report Download - page 151

SYMANTEC CORPORATION
Notes to Consolidated Financial Statements — (Continued)
The following table summarizes trade accounts receivable, net of allowances and reserves, for the periods
presented:
As of
March 30,
2012
April 1,
2011
(In millions)
Trade accounts receivable, net:
Receivables ..................................................... $962 $1,034
Less: allowance for doubtful accounts ................................ (5) (9)
Less: reserve for product returns .................................... (17) (12)
Trade accounts receivable, net: ................................... $940 $1,013
Inventories
Inventories are valued at the lower of cost or market. Cost is principally determined using the first-in,
first-out method. Adjustments to reduce the cost of inventory to its net realizable value are made, if required, for
estimated excess, obsolescence or impaired balances. Inventory predominantly consists of deferred costs of
revenue and finished goods. Deferred costs of revenue were $20 million as of March 30, 2012 and $22 million as
of April 1, 2011. Finished goods were $11 million as of March 30, 2012 and $7 million as of April 1, 2011.
Property and equipment
Property, equipment, and leasehold improvements are stated at cost, net of accumulated depreciation and
amortization. We capitalize costs incurred during the application development stage related to the development
of internal use software and enterprise cloud computing services. We expense costs incurred related to the
planning and post-implementation phases of development as incurred. Depreciation and amortization is provided
on a straight-line basis over the estimated useful lives of the related assets. Buildings are depreciated over 20 to
30 years. Leasehold improvements are depreciated over the lesser of the life of the improvement or the initial
lease term. Computer hardware and software, and office furniture and equipment are depreciated over three to
five years.
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