Symantec 2002 Annual Report Download - page 82

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SYMANTEC CORPORATION
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Ì (Continued)
The lessors associated with lease agreements relating to certain of our facilities, described under Synthetic
Leases in Note 7 of Notes to Consolidated Financial Statements, are special purpose entities or equivalent
structures. Presently, we account for these leases as operating leases, while the special purpose entities or
equivalent structures own and account for the leased assets and related liabilities in their records. The FASB
has indicated that it will, prior to June 30, 2002, issue proposed new rules on accounting for ""Entities That
Lack SuÇcient Independent Economic Substance'', including special purpose entities, in the form of an
Interpretation to SFAS No. 94, Consolidation of All Majority-Owned Subsidiaries, and Accounting Research
Bulletin No. 51, Consolidated Financial Statements. Based on public comments from the FASB to date, the
proposed interpretation will provide guidance for determining when an entity (such as us), the Primary
BeneÑciary, should consolidate another entity, a special purpose entity or equivalent structure (such as the
lessor), that functions to support the activities of the Primary BeneÑciary. The expected proposed Interpreta-
tion may result in us having to consolidate the operating results of the special purpose entities and equivalent
structures, which are the lessors under the aforementioned operating lease agreements. The eÅective date of
these proposed new rules on our current operating leases could be as early as the beginning of our Ñscal year
2004, and sooner on any new leases entered into after the new rules' eÅective date which utilize special
purpose entities or equivalent structures.
ReclassiÑcations
Certain previously reported amounts have been reclassiÑed to conform to the current presentation format
with no impact on net income (loss). All related Ñnancial information has been restated to conform to this
presentation.
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