Symantec 2016 Annual Report Download - page 150

The following table summarizes property and equipment, net of accumulated depreciation by categories for
the periods presented:
April 1,
2016
April 3,
2015
(Dollars in millions)
Land $73$73
Computer hardware and software 987 922
Office furniture and equipment 92 88
Buildings 426 426
Leasehold improvements 310 249
Construction in progress 74 79
Gross property and equipment 1,962 1,837
Accumulated depreciation (1,005) (887)
Property and equipment, net $ 957 $ 950
Depreciation expense was $213 million, $229 million, and $236 million in fiscal 2016, 2015, and 2014,
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 their
estimated fair values at acquisition date. Goodwill is recognized for the excess of purchase price over the net fair
value of assets acquired and liabilities assumed.
Goodwill and intangible assets
Goodwill. Goodwill represents the excess of the purchase price of an acquisition over the net fair value of
assets acquired and liabilities assumed. Goodwill is allocated to our reporting units expected to benefit from the
business combination based on the relative fair value at the acquisition date. We review goodwill for impairment
for each reporting unit on an annual basis during the fourth quarter of our fiscal year or more frequently if facts
and circumstances warrant. Under the authoritative guidance we have the option to perform a qualitative
assessment to determine whether further impairment testing is necessary. During the annual impairment reviews
in fiscal 2015 and 2014, we performed the qualitative assessment and determined there were no indicators of
significant risk of goodwill impairment. During the fourth quarter of fiscal 2016, we completed the divestiture of
Veritas. See Note 3. As a result, we determined that we should perform a quantitative assessment related to the
goodwill of our two remaining reporting units: Customer Security and Enterprise Security. Based on the
guidance, we performed the first step of the quantitative assessment and concluded that the fair values of these
two reporting units exceeded their respective carrying amounts. Based on this assessment, we concluded that for
fiscal 2016, goodwill was not impaired.
Intangible assets. In connection with our acquisitions, we generally recognize assets for customer
relationships, developed technology, finite-lived trade names, patents, and indefinite-lived trade names. Finite-
lived intangible assets are carried at cost less accumulated amortization. Such amortization is provided on a
straight-line basis over the estimated useful lives of the respective assets, generally from 1 to 11 years.
Amortization for developed technology is recognized in cost of revenue. Amortization for customer relationships
and certain trade names is recognized in operating expenses. Indefinite-lived intangible assets are not subject to
amortization but instead tested for impairment annually or more frequently if events or changes in circumstances
indicate that the carrying amount of an asset may not be recoverable. Recoverability of indefinite-lived intangible
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