Quarterly report pursuant to Section 13 or 15(d)

Basis of Presentation

Basis of Presentation
9 Months Ended
Oct. 01, 2011
Basis of Presentation [Abstract]  
Basis of Presentation [Text Block]

Note 1: Basis of Presentation


We prepared our interim consolidated condensed financial statements that accompany these notes in conformity with U.S. generally accepted accounting principles (GAAP), consistent in all material respects with those applied in our Annual Report on Form 10-K for the year ended December 25, 2010.


We have a 52- or 53-week fiscal year that ends on the last Saturday in December. Fiscal year 2011 is a 53-week fiscal year, and the first quarter of 2011 was a 14-week quarter. Fiscal year 2010 was a 52-week fiscal year, and the first quarter of 2010 was a 13-week quarter.


In the first quarter of 2011, we completed the acquisition of McAfee, Inc. For further information, see “Note 15: Acquisitions.” Certain of the operations acquired from McAfee have a functional currency other than the U.S. dollar. As a result, translation adjustments have been recorded through accumulated other comprehensive income (loss) beginning in 2011.


We have made estimates and judgments affecting the amounts reported in our consolidated condensed financial statements and the accompanying notes. The actual results that we experience may differ materially from our estimates. The accounting estimates that require our most significant, difficult, and subjective judgments include:

  • the valuation of non-marketable equity investments and the determination of other-than-temporary impairments;
  • the assessment of recoverability of long-lived assets (property, plant and equipment; goodwill; and identified intangibles);
  • the recognition and measurement of current and deferred income taxes (including the measurement of uncertain tax positions);
  • the valuation of inventory; and
  • the recognition and measurement of loss contingencies.


The interim financial information is unaudited, but reflects all normal adjustments that are, in our opinion, necessary to provide a fair statement of results for the interim periods presented. This interim information should be read in conjunction with the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 25, 2010.