Symantec 2016 Annual Report Download - page 146

SYMANTEC CORPORATION
Notes to Consolidated Financial Statements
Note 1. Summary of Significant Accounting Policies
Business
Symantec Corporation (“we,” “us,” “our,” and “the Company” refer to Symantec Corporation and all of its
subsidiaries) is a global leader in security.
In August 2015, we entered into a definitive agreement to sell the assets of our information management
business (“Veritas”) to The Carlyle Group (“Carlyle”). On January 19, 2016, the Company and Carlyle amended
the terms of the definitive agreement for Carlyle’s acquisition of Veritas. The results of Veritas are presented as
discontinued operations in our Consolidated Statements of Operations and thus have been excluded from
continuing operations and segment results for all reported periods. Furthermore, Veritas’ assets and liabilities
were removed from our Consolidated Balance Sheet upon consummation of its sale on January 29, 2016, and
have been classified as discontinued operations on our Consolidated Balance Sheet as of April 3, 2015. For
additional information on the sale of Veritas and on our discontinued operations, see Note 3.
Principles of consolidation
The accompanying consolidated financial statements of Symantec Corporation and its wholly-owned
subsidiaries are prepared in conformity with generally accepted accounting principles (“GAAP”) in the United
States (“U.S.”). All significant intercompany accounts and transactions have been eliminated in consolidation.
Fiscal calendar
We have a 52/53-week fiscal year ending on the Friday closest to March 31. Our fiscal 2016 and 2014 were
52-week years ended April 1, 2016 and March 28, 2014, whereas our fiscal 2015 was a 53-week year ended
April 3, 2015.
Use of estimates
The preparation of consolidated financial statements in conformity with U.S. GAAP requires management
to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and
accompanying notes. Estimates are based upon historical factors, current circumstances and the experience and
judgment of management. Management evaluates its assumptions and estimates on an ongoing basis and may
engage outside subject matter experts to assist in its valuations. Actual results could differ from those estimates.
Significant items subject to such estimates and assumptions include those related to the allocation of revenue
recognized and deferred amounts, valuation of goodwill, intangible assets and long-lived assets, contingencies
and litigation, and the recognition and measurement of current and deferred income taxes (including the
measurement of uncertain tax positions).
Foreign currency translation
Assets and liabilities denominated in foreign currencies are translated using the exchange rate on the
balance sheet dates. Revenues and expenses are translated using monthly average exchange rates prevailing
during the year. The translation adjustments resulting from this process are included as a component of
accumulated other comprehensive income. Deferred tax assets and liabilities are established on the cumulative
translation adjustment attributable to unremitted foreign earnings that are not intended to be indefinitely
reinvested. In the event of liquidation of a foreign subsidiary, the cumulative translation adjustment attributable
to that foreign subsidiary is reclassified from accumulated other comprehensive income and included in other
income, net.
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