Symantec 2006 Annual Report Download - page 80

SYMANTEC CORPORATION
Summary of Significant Accounting Policies
Business
Symantec Corporation (""we,'' ""us,'' and ""our'' refer to Symantec Corporation and all of its subsidiaries)
is the world leader in providing a wide range of solutions to help individuals and enterprises assure the security,
availability, and integrity of their information technology, or IT, infrastructure as well as the information itself.
With innovative technology solutions and services, we help individuals and enterprises protect and manage
their digital assets. We provide a wide range of solutions including enterprise and consumer security, data
protection, application and infrastructure management, security management, storage and server manage-
ment, and response and managed security services. Founded in 1982, we have operations in 40 countries
worldwide.
Principles of Consolidation
The accompanying consolidated financial statements include the accounts of Symantec Corporation and
its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated.
Reclassifications
Certain previously reported amounts have been reclassified to conform to the current presentation. In
particular, we have reclassified certain amounts related to auction-rate securities for the fiscal year ended
March 31, 2004 from cash equivalents to short-term investments to comply with Statement of Financial
Accounting Standards, or SFAS, No. 95, Statement of Cash Flows. As a result, our Consolidated Statement
of Cash Flows for the year ended March 31, 2004 reflects an increase of $278 million in Net cash used for
investing activities and corresponding decreases in Increase in cash and cash equivalents and Ending cash and
cash equivalents when compared to amounts previously reported in our Form 10-K for the year ended
March 31, 2004.
Acquisitions and Divestitures
On July 2, 2005, we completed our acquisition of Veritas Software Corporation, or Veritas, a leading
provider of software and services to enable storage and backup. The results of operations of Veritas have been
included in our results of operations beginning on July 2, 2005. For pro forma results of operations of
Symantec and Veritas, see Note 3. In addition, in fiscal 2006, we acquired five privately-held companies and
one public company. In fiscal 2005, we acquired five privately-held companies and in fiscal 2004, we acquired
two privately-held companies and two public companies. Each of these acquisitions was accounted for as a
purchase and, accordingly, each acquired company's operating results has been included in our consolidated
financial statements since its respective date of acquisition.
Fiscal years
We have a 52/53-week fiscal accounting year. Accordingly, all references as of and for the periods ended
March 31, 2006, 2005, and 2004 reflect amounts as of and for the periods ended March 31, 2006, April 1,
2005, and April 2, 2004, respectively. The fiscal accounting years ended March 31, 2006 and April 1, 2005 are
each comprised of 52 weeks of operations, while the fiscal accounting year ended April 2, 2004 is comprised of
53 weeks of operations. The fiscal accounting year ending March 30, 2007 will comprise 52 weeks of
operations.
Symantec share and per share amounts in the Consolidated Statements of Income and the Notes to
Consolidated Financial Statements retroactively reflect the two-for-one stock splits effected as stock
dividends, which occurred on November 30, 2004 and November 19, 2003.
Use of Estimates
The preparation of consolidated financial statements in conformity with generally accepted accounting
principles requires management to make estimates and assumptions that affect the amounts reported in the
consolidated financial statements and accompanying notes. Actual results could differ from those estimates.
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