Symantec 2014 Annual Report Download - page 154

Assets and liabilities measured and recorded at fair value on a nonrecurring basis
Goodwill. In fiscal 2012, we recorded an impairment of $19 million as a cumulative-effect adjustment in
accumulated deficit, related to an implied fair value measurement made for our former Services reporting unit
upon the adoption of a new accounting standard. The valuation technique used to estimate the implied fair value
of goodwill was an income approach which relied upon level 3 inputs, which included discounted estimated
future cash flows or profit streams.
Indefinite-lived intangible assets. In fiscal 2012, we recorded impairment charges of $4 million, which
reduced the gross carrying value of indefinite-lived trade names. The fair value amounts were derived using an
income approach which required level 3 inputs such as discounted estimated future cash flows on profit streams.
These impairment charges were due to reductions in expected future cash flows for certain indefinite-lived trade
names related to the Information Security segment. These impairment charges were recorded within impairment
of intangible assets in our Consolidated Statements of Income.
Disclosure of the Fair Value of Financial Instruments
See Note 6 for information regarding long-term debt including fair value disclosures.
Note 3. Business Combinations
Fiscal 2013
On April 2, 2012, we completed the acquisition of a privately-held provider of mobile application
management. In exchange for all of the voting equity interests of the acquired company, we paid a total purchase
price of $28 million in cash. The objective of the acquisition is to extend our enterprise mobility portfolio to
include a cross-platform mobile application protection solution to help organizations protect and isolate corporate
data and applications across both corporate-owned and personally-owned devices. The results of operations of
the acquired company have been included in our User Productivity & Protection segment. Supplemental pro
forma information for the acquired company was not material to our financial results and therefore has not been
included. The purchase price allocation resulted in goodwill of $24 million and intangible assets of $4 million.
Goodwill, which is not tax deductible, resulted primarily from our expectation of synergies from the integration
of the acquired company’s technology into our product offerings. Intangible assets included developed
technology and customer relationships, which are amortized over their estimated useful lives of five and nine
years, respectively.
Fiscal 2012
Clearwell Systems Inc.
On June 24, 2011, we completed the acquisition of Clearwell Systems Inc. (“Clearwell”), a privately-held
provider of eDiscovery solutions. In exchange for all of the voting equity interests of Clearwell, we transferred a
total consideration of $392 million, which consists of $364 million in cash, net of $20 million cash acquired, and
$8 million of assumed stock options. The objective of the acquisition was to enhance our eDiscovery, archiving
and backup offerings to our customers. The results of operations of Clearwell are included as part of the
Information Management segment. Supplemental pro forma information for Clearwell was not material to our
financial results and therefore not included.
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