Symantec 2013 Annual Report Download - page 164

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, backup and availability solutions. Our innovative products and
services protect people and information in any digital environment – from the smallest mobile device, to the
enterprise data center, to cloud-based systems. Our software and services protect against advanced threats
independent of the device and environment in which information is used or stored.
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 in the U.S. Noncontrolling
interest positions of certain of our consolidated entities are reported as a separate component of consolidated
equity from the equity attributable to our stockholders for fiscal 2012 and 2011. In fiscal 2013, an entity in which
we held a noncontrolling interest became a wholly-owned subsidiary. See Note 14 for details. All significant
intercompany accounts and transactions have been eliminated.
Fiscal calendar
We have a 52/53-week fiscal year ending on the Friday closest to March 31. Our fiscal 2013, 2012, and
2011 were 52-week years and our 2014 fiscal year will consist of 52 weeks.
Use of estimates
The preparation of consolidated financial statements in conformity with generally accepted accounting
principles in the U.S. 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, valuation of stock-based compensation, contingencies and litigation, and
the recognition and measurement of current and deferred income taxes (including the measurement of uncertain
tax positions).
Foreign currency
The functional currency of our foreign subsidiaries is generally the local foreign currency. Assets and
liabilities denominated in non-functional currencies are remeasured into the functional currencies at current
exchange rates, and the gains or losses from such remeasurement are recorded in Other income (expense), net.
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
66