Symantec 2012 Annual Report Download - page 152

SYMANTEC CORPORATION
Notes to Consolidated Financial Statements — (Continued)
The following table summarizes property and equipment by categories for the periods presented:
As of
March 30,
2012
April 1,
2011
(In millions)
Property and equipment, net:
Computer hardware and software ................................... $1,640 $ 1,458
Office furniture and equipment ..................................... 176 189
Buildings ...................................................... 489 467
Leasehold improvements ......................................... 284 270
2,589 2,384
Less: accumulated depreciation and amortization .................... (1,663) (1,530)
926 854
Construction in progress .......................................... 95 117
Land ......................................................... 79 79
Property and equipment, net ..................................... $1,100 $ 1,050
Depreciation expense was $273 million, $257 million, and $247 million in fiscal 2012, 2011, and 2010,
respectively.
Business combinations
We use the acquisition method of accounting under the authoritative guidance on business combinations.
Each acquired company’s operating results are included in our consolidated financial statements starting on the
date of acquisition. The purchase price is equivalent to the fair value of consideration transferred. Tangible and
identifiable intangible assets acquired and liabilities assumed as of the date of acquisition are recorded at the
acquisition date fair value. Goodwill is recognized for the excess of purchase price over the net fair value of
assets acquired and liabilities assumed.
Amounts allocated to assets and liabilities are based upon fair values. Such valuations require management
to make significant estimates and assumptions, especially with respect to the identifiable intangible assets.
Management makes estimates of fair value based upon assumptions believed to be reasonable and that of a
market participant. These estimates are based on historical experience and information obtained from the
management of the acquired companies and are inherently uncertain. The separately identifiable intangible assets
generally include developed technology, customer relationships and tradenames. We estimate the fair value of
deferred revenue related to product support assumed in connection with acquisitions. The estimated fair value of
deferred revenue is determined by estimating the costs related to fulfilling the obligations plus a normal profit
margin. The estimated costs to fulfill the support contracts are based on the historical direct costs related to
providing the support.
For any given acquisition, we may identify certain pre-acquisition contingencies. We estimate the fair value
of such contingencies, which are included under the acquisition method as part of the assets acquired or liabilities
assumed, as appropriate. Differences from these estimates are recorded in the Consolidated Statements of Income
in the period in which they are identified.
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