Fluctuations in the U.S. dollar compared to foreign currencies negatively impacted our international revenue by approximately $14 million and $89 million during the three and six months ended October 2, 2009 respectively, as compared to the same period last year. We are unable to predict the extent to which revenues in future periods will be impacted by changes in foreign currency exchange rates. If our level of international sales and expenses increase in the future, changes in foreign exchange rates may have a potentially greater impact on our revenues and operating results.
As discussed above under "Fiscal Year End," the six months ended October 3, 2008 consisted of 27 weeks, whereas the six months ended October 2, 2009 consisted of 26 weeks. The extra 14th week contributed additional revenue to the July 4, 2008 quarter when compared to the July 3, 2009 quarter.
Our net income was $150 million for the three months ended October 2, 2009 as compared to our net income of $126 million for the three months ended October 3, 2008. The higher net income for the second quarter of fiscal 2010 as compared to the same period last year was primarily due to our ongoing cost and expense discipline which more than offset our revenue decline. Critical Accounting Estimates
There have been no changes in the matters for which we make critical accounting estimates in the preparation of our consolidated financial statements during the six months ended October 2, 2009 as compared to those disclosed in Management's Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the fiscal year ended April 3, 2009. While there have been no such changes, we have revised our description of the critical accounting estimates made in the valuation of goodwill, intangible assets and long-lived assets, as provided below.
Valuation of goodwill, intangible assets and long-lived assets When we acquire businesses, we allocate the purchase price to tangible assets and liabilities and identifiable intangible assets acquired. Any residual purchase price is recorded as goodwill. The allocation of the purchase price requires management to make significant estimates in determining the fair values of assets acquired and liabilities assumed, especially with respect to intangible assets. These estimates are based on historical experience and information obtained from the management of the acquired companies. These estimates can include, but are not limited to, the cash flows that an asset is expected to generate in the future, the appropriate weighted-average cost of capital, and the cost savings expected to be derived from acquiring an asset. These estimates are inherently uncertain and unpredictable, and if different estimates were used the purchase price for the acquisition could be allocated to the acquired assets differently from the allocation that we have made. In addition, unanticipated events and circumstances may occur which may affect the accuracy or validity of such estimates, and if such events occur we may be required to record a charge against the value ascribed to an acquired asset.
Goodwill. We review goodwill for impairment on an annual basis on the first day of the fourth quarter of each fiscal year, and on an interim basis whenever events or changes in circumstances indicate that the carrying value may not be recoverable in accordance with our accounting policy. Before performing the goodwill impairment test, we first assess the value of long-lived assets in each reporting unit, including tangible and intangible assets. We then perform a two-step impairment test on goodwill. In the first step, we compare the estimated fair value of each reporting unit to its allocated carrying value (book value). If the carrying value of the reporting unit exceeds the fair value of the equity assigned to that unit, there is an indicator of impairment and we must perform the second step of the impairment test. This second step involves determining the implied fair value of that reporting unit's goodwill in a manner similar to the purchase price allocation for an acquired business. If the carrying value of the reporting unit's goodwill exceeds its implied fair value, then we would record an impairment loss equal to the excess. Our reporting units are consistent with our operating segments.
The process of estimating the fair value of our reporting units requires significant judgment at many points during the analysis. Many assets and liabilities, such as accounts receivable and property and equipment, are not specifically allocated to an individual reporting unit. In determining the carrying value of the reporting units, we apply judgment to allocate the assets and liabilities, and this allocation affects the carrying value of the respective reporting units. Similarly, we use judgment to allocate goodwill to the reporting units based on relative fair values. The use of relative fair values has been necessary for certain reporting units due to changes in our operating structure in prior years.
To determine a reporting unit's fair value, we use the income approach under which we calculate the fair value of each reporting unit based on the estimated discounted future cash flows of that unit. We evaluate the reasonableness of this approach with the market approach, which involves a review of the carrying value of our assets relative to our market capitalization and to the valuation of publicly traded companies operating in the same or similar lines of business.

Applying the income approach requires that we make a number of important estimates and assumptions. We estimate the future cash flows of each reporting unit based on historical and forecasted revenues and operating costs. This, in turn, involves further estimates, such as estimates of future growth rates and foreign exchange rates. In addition, we apply a discount rate to the estimated future cash flows for the purpose of the valuation. This discount rate is based on the estimated weighted-average cost of capital for each reporting unit and may change from year to year. For example, in our valuation process in the fourth quarter of fiscal 2009 we used a higher discount rate than in the prior year due to increased risk associated with the declining global economic conditions. Changes in these key estimates and assumptions, or in other assumptions used in this process, could materially affect our impairment analysis for a given year.
As of April 3, 2009, the last day of fiscal 2009, our goodwill balance was $4.6 billion. Based on the impairment analysis performed on January 3, 2009, we determined that the fair value of each of our reporting units exceeded the carrying value of the unit by not less than 20% of the carrying value. While discount rates are only one of several important estimates used in the analysis, we determined that an increase of one percentage point in the discount rate used for each respective reporting unit would not have resulted in an impairment indicator for any unit in the current quarter.
A number of factors, many of which we have no ability to control, could affect our financial condition, operating results and business prospects and could cause actual results to differ from the estimates and assumptions we employed. These factors include:
• a prolonged global economic crisis;

• a significant decrease in the demand for our products;

• the inability to develop new and enhanced products and services in a timely manner;

• a significant adverse change in legal factors or in the business climate;

• an adverse action or assessment by a regulator;

• successful efforts by our competitors to gain market share in our markets;

• a loss of key personnel;

• our determination to dispose of one or more of our reporting units;

• the testing for recoverability of a significant asset group within a reporting unit; and

• recognition of a goodwill impairment loss in the financial statements of a subsidiary that is a component of a reporting unit.

Intangible Assets. We assess the impairment of identifiable intangible assets whenever events or changes in circumstances indicate that an asset's carrying amount may not be recoverable. In addition, for intangible assets with indefinite lives, we review such assets for impairment on an annual basis consistent with the timing of the annual evaluation for goodwill. An impairment loss would be recognized when the sum of the undiscounted estimated future cash flows expected to result from the use of the asset and its eventual disposition is less than its carrying amount. Such impairment loss would be measured as the difference between the carrying amount of the asset and its fair value. Our cash flow assumptions are based on historical and forecasted revenue, operating costs, and other relevant factors. If management's estimates of future operating results change, or if there are changes to other assumptions, the estimate of the fair value of our acquired product rights and other identifiable intangible assets could change significantly. Such change could result in impairment charges in future periods, which could have a significant impact on our operating results and financial condition.
We record impairment charges on developed technology or acquired product rights when we determine that the net realizable value of the assets may not be recoverable. To determine the net realizable value of the assets, we use the estimated future gross revenues from each product. Our estimated future gross revenues of each product are based on company forecasts and are subject to change.
Long-Lived Assets (including Assets Held for Sale). We record impairment charges on long-lived assets to be held and used when we determine that the carrying value of the long-lived assets may not be recoverable. Based upon the existence of one or more indicators of impairment, we measure any impairment of long-lived assets based on a projected undiscounted cash flow method using assumptions determined by our management to be commensurate with the risk inherent in our current business model. Our estimates of cash flows require significant judgment based on our historical results and anticipated results and are subject to many triggering factors which could change and cause a material impact to our operating results or financial condition. We record impairment charges on long-lived assets to be held for sale when we determine that the carrying value of the long-lived assets may not be recoverable. In determining our fair value, we obtain market value appraisal information from third-parties. Recently Issued Accounting Pronouncements Information with respect to Recently Issued Authoritative Guidance is in Note 1 of Notes to Condensed Consolidated Financial Statements in this Form 10-Q, which information is incorporated herein by reference.

                             RESULTS OF OPERATIONS
Total Net Revenues

                                       Three Months Ended                                             Six Months Ended
                      October 2,        October 3,            Change in            October 2,        October 3,            Change in
                         2009              2008             $           %             2009              2008             $            %
                                                                          ($ in millions)

Net revenues decreased for the three months ended October 2, 2009, as compared to the same period last year, due to a $117 million decrease in Licenses revenues partially offset by a $73 million increase in Content, subscriptions, and maintenance revenues. The net decrease was primarily driven by the items discussed above under "Financial Results and Trends." Net revenues decreased for the six months ended October 2, 2009, as compared to the same period last year, due to a $253 million decrease in Licenses revenues coupled with a $9 million decrease in Content, subscriptions, and maintenance revenues. The net decrease was primarily driven by the items discussed above under "Financial Results and Trends." The revenue decreases for the three and six months ended October 2, 2009 discussed above are further described in the segment discussions that follow.
Content, subscriptions, and maintenance revenues

                                      Three Months Ended                                          Six Months Ended
                      October 2,        October 3,           Change in           October 2,        October 3,           Change in
                         2009              2008            $           %            2009              2008            $           %
                                                                         ($ in millions)
Content,
subscriptions,
and maintenance
revenues             $    1,254        $    1,181        $ 73          6 %      $    2,463        $    2,472        $ (9 )        0 %
Percentage of
total net
revenues                     85 %              78 %                                     85 %              78 %

Content, subscriptions, and maintenance revenues increased for the three months ended October 2, 2009 as compared to the same period last year as a result of revenue from recent acquisitions and the strength of our Consumer segment, partially offset by the reasons discussed above under "Financial Results and Trends."
Content, subscriptions, and maintenance revenues remained relatively flat for the six months ended October 2, 2009 as compared to the same period last year.
Licenses revenues

                                      Three Months Ended                                          Six Months Ended
                     October 2,      October 3,            Change in            October 2,      October 3,            Change in
                        2009            2008            $             %            2009            2008            $             %
                                                                       ($ in millions)
Licenses
revenues             $    220        $    337        $ (117 )        (35 )%     $    443        $    696          (253 )        (36 )%
Percentage of
total net
revenues                   15 %            22 %                                       15 %            22 %

Licenses revenues decreased for the three and six months ended October 2, 2009 as compared to the same periods last year, primarily due to the global economic slowdown and customers emphasizing purchases of smaller volumes of new licenses consistent with their near term needs during the periods presented as well as for the reasons discussed above under "Financial Results and Trends."

Net revenue and operating income by segment Consumer segment

                                     Three Months Ended                                         Six Months Ended
                     October 2,      October 3,           Change in           October 2,      October 3,           Change in
                        2009            2008            $           %            2009            2008            $            %
                                                                     ($ in millions)
Consumer
revenues             $    463        $    437        $  26           6 %      $    910        $    909        $   1            0 %
Percentage of
total net
revenues                   31 %            29 %                                     31 %            29 %
Consumer
operating income     $    216        $    235        $ (19 )        (8 )%     $    439        $    510        $ (71 )        (14 )%
Percentage of
Consumer
revenues                   47 %            54 %                                     48 %            56 %

Consumer revenues increased for the three months ended October 2, 2009 as compared to the same period last year primarily due to increases in revenue from our core consumer products in the electronic channel and from acquired security products. These increases were partially offset by the factors discussed above under "Financial Results and Trends."
Consumer revenues were relatively consistent for the six months ended October 2, 2009 as compared to the same period last year since increases in revenue from our core consumer products in the electronic channel and from acquired security products were fully offset by the factors discussed above under "Financial Results and Trends."
Our electronic channel sales are derived from OEMs, subscriptions, upgrades, online sales, and renewals. For the three and six months ended October 2, 2009, electronic channel revenue increased as compared to the same periods last year. Electronic sales constituted 81% and 80%, respectively, of Consumer revenues for the three and six months ended October 2, 2009 as compared to 79% and 78% for the same periods last year.
Operating income for the Consumer segment decreased for the three and six months ended October 2, 2009 as compared to the same period last year, as expense growth outpaced revenue growth. Total expenses for the segment increased primarily as a result of the PC Tools acquisition and costs associated with our development of our new proprietary eCommerce platform, offset in part by the effects discussed above under "Financial Results and Trends." Security and Compliance segment

                                      Three Months Ended                                         Six Months Ended
                     October 2,      October 3,           Change in            October 2,      October 3,           Change in
                        2009            2008            $            %            2009            2008            $            %
                                                                      ($ in millions)
Security and
Compliance
revenues.            $    345        $    355        $ (10 )         (3 )%     $    681        $    748        $ (67 )         (9 )%
Percentage of
total net
revenues                   24 %            23 %                                      24 %            24 %
Security and
Compliance
operating income     $     89        $     99        $ (10 )        (10 )%     $    167        $    216        $ (49 )        (23 )%
Percentage of
Security and
Compliance
revenues.                  26 %            28 %                                      25 %            29 %

Security and Compliance revenues decreased for the three and six months ended October 2, 2009 as compared to the same periods last year for the reasons discussed above under "Financial Results and Trends." This decrease was partially offset by increased revenues from our acquisition of MessageLabs during fiscal 2009.
Operating income for the Security and Compliance segment decreased for the three and six months ended October 2, 2009 as compared to the same periods last year, as the revenue decrease more than offset the expense decrease. Total expenses decreased for the reasons discussed above under "Financial Results and Trends."

Storage and Server Management segment

                                     Three Months Ended                                           Six Months Ended
                     October 2,      October 3,           Change in            October 2,        October 3,             Change in
                        2009            2008            $           %             2009              2008             $             %
                                                                      ($ in millions)
Storage and
Server
Management
revenues             $    563        $    621        $ (58 )        (9 )%     $    1,116        $    1,286        $ (170 )        (13 )%
Percentage of
total net
revenues                   38 %            41 %                                       38 %              40 %
Storage and
Server
Management
operating income     $    275        $    270        $   5           2 %      $      536        $      533        $    3            1 %
Percentage of
Storage and
Server
Management
revenues                   49 %            43 %                                       48 %              41 %

Storage and Server Management revenues decreased for the three and six months ended October 2, 2009 as compared to the same periods last year for the reasons discussed above under "Financial Results and Trends." In addition, for each of the fiscal 2010 periods presented, some of our customers bought smaller volumes of licenses appropriate to their immediate needs, particularly with respect to our storage management products.
Operating income for the Storage and Server Management segment increased for the three and six months ended October 2, 2009 as compared to the same period last year, as the decrease in expenses more than offset the revenue decrease. Total expenses decreased for the reasons discussed above under "Financial Results and Trends."

 Services segment

                                     Three Months Ended                                         Six Months Ended
                     October 2,      October 3,           Change in           October 2,      October 3,           Change in
                        2009            2008           $            %            2009            2008            $            %
                                                                     ($ in millions)
Services
revenues             $    103        $    104        $ (1 )         (1 )%     $    199        $    224        $ (25 )        (11 )%
Percentage of
total net
revenues                    7 %             7 %                                      7 %             7 %
Services
operating income     $     14        $      3        $ 11          367 %      $     19        $      7        $  12          171 %
Percentage of
Services
revenues                   14 %             3 %                                     10 %             3 %

Services revenues were relatively consistent for the three months ended October 2, 2009 as compared to the same period last year. Service revenues decreased for the six months ended October 2, 2009 as compared to the same . . .