Symantec 2015 Annual Report Download - page 141

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Executive Officer and Chief Financial Officer. Reclassifications of prior period segment information have been
made to conform to the current period presentation. This change does not impact our previously reported
Consolidated Financial Statements. See Note 9 for additional information on our segment reporting change.
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, 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, net. For
fiscal 2015, the net foreign currency transaction loss was $3 million. For fiscal 2014 and 2013, the net foreign
currency transaction losses were $6 million for each year. These net losses are included in other income, net, in
our Consolidated Statements of Income.
Revenue recognition
We market and distribute our software products both as stand-alone products and as integrated product
suites. We recognize revenue when 1) persuasive evidence of an arrangement exists, 2) delivery has occurred or
services have been rendered, 3) fees are fixed or determinable and 4) collectability is probable. If we determine
that any one of the four criteria is not met, we will defer recognition of revenue until all the criteria are met.
We derive revenue primarily from sales of content, subscriptions, and maintenance and licenses. We present
revenue net of sales taxes and any similar assessments.
Content, subscription, and maintenance revenue includes arrangements for software maintenance and
technical support for our products, content and subscription services primarily related to our security products,
revenue from arrangements where vendor-specific objective evidence (“VSOE”) of the fair value of undelivered
elements does not exist, arrangements for managed security services, and Software-as-a-Service (“SaaS”)
offerings. These arrangements are generally offered to our customers over a specified period of time, and we
recognize the related revenue ratably over the maintenance, subscription, or service period. We enter into
perpetual software license agreements through direct sales to customers and indirect sales with distributors and
resellers. The license agreements generally include product maintenance agreements, for which the related
revenue is included with content, subscriptions, and maintenance and is deferred and recognized ratably over the
period of the agreements.
Content, subscription, and maintenance revenue also includes professional services revenue, consisting
primarily of the fees we earn related to consulting and educational services. We generally recognize revenue
from professional services as the services are performed or upon written acceptance from customers, if
applicable, assuming all other conditions for revenue recognition noted above have been met.
License revenue is derived primarily from the licensing of our various products and technology. We
generally recognize license revenue upon delivery of the product, assuming all other conditions for revenue
recognition noted above have been met. License revenue also includes appliance product revenue. We generally
recognize appliance product revenue as each product is delivered, assuming all other conditions for revenue
recognition noted above have been met.
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