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Goodwill And Intangible Assets

3 Months Ended

Jul. 01, 2011

Note 4. Goodwill and Intangible Assets

Goodwill

The changes in the carrying amount of goodwill are as follows:

	Consumer	Security and Compliance	Storage and Server Management	Services	Total
	(In millions)
Balance as of April 1, 2011	$ 363	$ 2,464	$ 2,648	$ 19	$ 5,494
Goodwill impairment ⁽¹⁾	—	—	—	(19)	(19)
Goodwill acquired through business combinations ⁽²⁾	—	—	258	—	258
Goodwill adjustments ⁽³⁾	4	2	—	—	6
Balance as of July 1, 2011	$ 367	$ 2,466	$ 2,906	$ —	$ 5,739

____________

⁽¹⁾ Due to the adoption of new authoritative accounting guidance at the beginning of our fiscal year (see Note 1), we were required to perform a goodwill Step 2 impairment test for our Services reporting unit. As a result, we recognized an impairment loss of $19 million which reduced the carrying value of goodwill reported in the Services reporting segment to zero. The valuation technique used by the Company to estimate the fair value of the Services reporting unit goodwill, relies on Level 3 inputs, including estimated fair value using future cash flows or profit streams. This impairment was recorded to beginning Accumulated deficit as a cumulative-effect adjustment upon adoption.

⁽²⁾ Goodwill acquired through business combinations is related to the acquisition of Clearwell, see Note 3 for further information.

⁽³⁾Reflects adjustments made to goodwill as a result of foreign currency exchange rate fluctuations.

The effects of the cumulative-effect application are as follows:


	Accumulated Deficit	Accumulated Other Comprehensive Income (Loss)	Other Stockholders' Equity	Total Symantec Corporation Stockholders' Equity	Noncontrolling Interest in Subsidiary	Total Stockholders' Equity
	(In millions)
Beginning balance as of April 2, 2011	$ (4,012)	$ 171	$ 8,369	$ 4,528	$ 77	$ 4,605
Cumulative effect adjustment	(19)	—	—	(19)	—	(19)
Beginning balance as adjusted	$ (4,031)	$ 171	$ 8,369	$ 4,509	$ 77	$ 4,586

We apply a fair value based impairment test to the carrying value of goodwill and indefinite-lived intangible assets on an annual basis in the fourth quarter of each fiscal year or earlier if indicators of impairment exist. As of July 1, 2011, no further indicators of impairment were identified, except as it relates to the Services reporting unit as described above.

Intangible assets, net


	As of July 1, 2011
	Gross Carrying Amount	Accumulated Amortization	Net Carrying Amount	Weighted-Average Remaining Useful Life
	($ in millions)
Customer relationships	$ 2,226	$ (1,296)	$ 930	3 years
Developed technology ⁽¹⁾	1,871	(1,588)	283	4 years
Finite-lived tradenames	144	(83)	61	4 years
Patents ⁽¹⁾	75	(63)	12	6 years
Indefinite-lived tradenames	302	—	302	Indefinite
Indefinite-lived IPR&D	3	—	3	Indefinite
Total	$ 4,621	$ (3,030)	$ 1,591	3 years


	As of April 1, 2011
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount	Weighted-Average Remaining Useful Life
		($ in millions)
Customer relationships	$ 2,121			$ (1,227)	$ 894			3 years
Developed technology ⁽¹⁾	1,810			(1,567)	243			4 years
Finite-lived tradenames	136			(80)	56			4 years
Patents ⁽¹⁾	75			(62)	13			2 years
Indefinite-lived tradenames	302			—	302			Indefinite
Indefinite-lived IPR&D	3			—	3			Indefinite
Total	$ 4,447			$ (2,936)	$ 1,511			3 years

____________

⁽¹⁾Amortization related to developed technology and patents is recorded as Amortization of acquired product rights in the Condensed Consolidated Statements of Income.

Total amortization expense for intangible assets that have finite lives was $93 million and $106 million for the three months ended July 1, 2011 and July 2, 2010, respectively. Total future amortization expense for intangible assets that have finite lives, based on our existing intangible assets and their current estimated useful lives as of July 1, 2011, is estimated as follows (in millions):

Remainder of fiscal 2012	$ 287
2013	349
2014	204
2015	150
2016	99
Thereafter	197
Total	$ 1,286

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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