Symantec 2011 Annual Report Download - page 142

Leasehold improvements are depreciated over the lesser of the life of the improvement or the initial lease term.
Computer hardware and software, and office furniture and equipment are depreciated over three to five years. The
following table summarizes property and equipment by categories for the periods presented:
April 1,
2011
April 2,
2010
As of
(In millions)
Property and equipment, net:
Computer hardware and software ................................. $1,458 $ 1,237
Office furniture and equipment ................................... 189 185
Buildings ................................................... 467 440
Leasehold improvements........................................ 270 245
2,384 2,107
Less: accumulated depreciation and amortization .................... (1,530) (1,299)
854 808
Construction in progress ........................................ 117 70
Land ...................................................... 79 71
Property and equipment, net: ................................... $1,050 $ 949
Depreciation expense was $257 million, $247 million, and $250 million in fiscal 2011, 2010, and 2009,
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 the acquisition date
fair value. Goodwill is recognized for the excess of purchase price over the net fair value of assets acquired and
liabilities assumed.
Amounts allocated to assets and liabilities are based upon fair values. Such valuations require management to
make significant estimates and assumptions, especially with respect to the identifiable intangible assets. Man-
agement makes estimates of fair value based upon assumptions believed to be reasonable and that of a market
participant. These estimates are based on historical experience and information obtained from the management of
the acquired companies and are inherently uncertain. The separately identifiable intangible assets generally include
developed technology, customer relationships and tradenames. We estimate the fair value of deferred revenue
related to product support assumed in connection with acquisitions. The estimated fair value of deferred revenue is
determined by estimating the costs related to fulfilling the obligations plus a normal profit margin. The estimated
costs to fulfill the support contracts are based on the historical direct costs related to providing the support.
For any given acquisition, we may identify certain pre-acquisition contingencies. We estimate the fair value of
such contingencies, which are included under the acquisition method as part of the assets acquired or liabilities
assumed, as appropriate. Differences from these estimates are recorded in the Consolidated Statements of
Operations in the period in which they are identified.
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SYMANTEC CORPORATION
Notes to Consolidated Financial Statements — (Continued)