Symantec 2014 Annual Report Download - page 153

Recently issued authoritative guidance
There was no recently issued authoritative guidance that had a material impact to our Consolidated
Financial Statements.
Note 2. Fair Value Measurements
For assets and liabilities measured at fair value, such amounts are based on an expected exit price
representing the amount that would be received on the sale of an asset or paid to transfer a liability, as the case
may be, in an orderly transaction between market participants. As such, fair value may be based on assumptions
that market participants would use in pricing an asset or liability. The authoritative guidance on fair value
measurements establishes a consistent framework for measuring fair value on either a recurring or nonrecurring
basis whereby inputs, used in valuation techniques, are assigned a hierarchical level. The following are the
hierarchical levels of inputs to measure fair value:
•Level 1: Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in
active markets.
•Level 2: Observable inputs that reflect quoted prices for identical assets or liabilities in markets that are
not active; quoted prices for similar assets or liabilities in active markets; inputs other than quoted
prices that are observable for the assets or liabilities; or inputs that are derived principally from or
corroborated by observable market data by correlation or other means.
•Level 3: Unobservable inputs reflecting our own assumptions incorporated in valuation techniques used
to determine fair value. These assumptions are required to be consistent with market participant
assumptions that are reasonably available.
Assets measured and recorded at fair value on a recurring basis
Cash equivalents. Cash equivalents consist of money market funds that are classified as level 1, and
corporate securities and commercial paper classified as level 2, all of which have an original maturity of three
months or less, and the carrying amount is a reasonable estimate of fair value.
Other short-term investments. Other short-term investments consist of U.S. government securities with
original maturities greater than three months and are classified as recurring level 1. Also included in other short-
term investments are commercial paper, federal agency and corporate securities with original maturities greater
than three months, which are classified as level 2. Other short-term investments are priced using inputs such as
actual trade data, benchmark yields, broker/dealer quotes, and other similar data, which are obtained from quoted
market prices, independent pricing vendors, or other sources, to determine the fair value of these assets.
Marketable equity securities. Marketable equity securities are classified as level 1 and are recorded at fair
value using quoted prices in active markets for identical assets.
There have been no transfers between fair value measurement levels during fiscal 2014. The following table
summarizes our assets measured at fair value on a recurring basis, by level, within the fair value hierarchy:
March 28, 2014 March 29, 2013
Level 1 Level 2 Total Level 1 Level 2 Total
(Dollars in millions)
Cash equivalents $2,380 $ 40 $2,420 $3,469 $ - $3,469
Other short-term investments 95 236 331 - - -
Marketable equity securities 6 - 6 62 - 62
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