Symantec 1996 Annual Report Download - page 40

Note 10. Acquisition, Restructuring
and Other Expenses
Acquisition, re s t ructuring and other expense consists of the
following:
In connection with the acquisition of Delrina (See Note 2) in
fiscal 1996, Symantec re c o rded total acquisition charges of
$22.0 million, which included $8.8 million for legal, accounting
and financial advisory services, $6.4 million for the elimination
of duplicative and excess facilities and equipment, $3.7 million
for personnel severance and outplacement expenses and $3.1
million for the consolidation and discontinuance of cert a i n
operational activities and other acquisition-related expenses.
In November, 1995, Symantec sold the assets of Time Line
Solutions Corporation, a wholly-owned subsidiary, to a group
comprised of Time Line Solution Corporation’s management
and incurred a $2.7 million loss on the sale.
During fiscal 1996, Symantec expensed $1.0 million, which
included a loss on the sale of certain assets and liabilities of a
subsidiary and other expenses.
In Fe b r u a r y 1995, Symantec announced a plan to consolidate
c e r tain re s e a r ch and development activities. This plan was designed
to gain greater synergy between the Company’s T h i rd Ge n e r a t i o n
Language and Fo u rth Generation Language development gro u p s .
During fiscal 1996, the Company incurred $2.2 million for the
relocation costs of moving equipment and personnel.
In the fourth quarter of fiscal 1996, the Company recorded
$2.0 million in estimated legal fees expected to be incurred in
connection with a securities class action complaint filed in
March 1996 and other legal expenses (See Note 11).
In connection with the acquisitions of Central Point and S L R
( See No t e 2), Symantec re c o rded total acquisition charges of
$9.5 million in fiscal 1995. The charges included $3.2 million
for legal, accounting and financial advisory services, $1.0 million
for the write-off of duplicative pro d u c t - r elated expenses and
modification of certain development contracts, $0.9 million for
the elimination of duplicative and excess facilities, $3.1 million
for personnel severance and outplacement expenses and $1.3
million for the consolidation and discontinuance of cert a i n
operational activities and other acquisition related expenses.
During fiscal 1996, the Company re c o g n i zed a reduction in
a c c rued acquisition, re s t ructuring and other expenses of $2.3
million as actual costs incurred we re less than costs pre v i o u s l y
a c c r ued by the Company.
In connection with the acquisitions of Fifth Generation and
Contact by Symantec and the acquisition of XTree by Central
Point (See No t e 2), the Company re c o rded total charges of
$25.9 million in fiscal 1994. The charges included $4.3 million
for legal, accounting and financial advisory services, $7.6 million
for the write-off of duplicative product related expenses and
modification of certain development contracts, $3.6 million for
the elimination of duplicative and excess facilities, $5.3 million
for personnel severance and outplacement expenses and $5.1
million for the consolidation and discontinuance of cert a i n
operational activities and other acquisition related expenses.
During fiscal 1994, Symantec implemented a plan to consol-
idate and centralize certain operational activities. This plan was
designed to reduce operating expenses and enhance operational
efficiencies by centralizing certain order administration, techni-
cal support and customer service activities in Eugene, Oregon.
The Company recorded a charge of $4.7 million, which includ-
ed $1.1 million for the elimination of duplicative and exc e s s
facilities, $1.5 million for the relocation of the Company’s
existing operations and equipment, $1.1 million for employee
relocation expenses and $1.0 million for employee seve r a n c e
payments. This centralization has been completed.
During fiscal 1994, Central Point incurred $16.0 million of
expenses related to the restructuring of its operations in order
to reduce its overall cost stru c t u r e and to re d i rect its software
d e velopment and marketing efforts away from the personal
desktop computer market tow a rd personal computer network
markets. The charge included $6.2 million for employee sever-
ance, outplacement and relocation expenses, $5.6 million for
the write-off of certain excess fixed and intangible assets, $1.8
million for lease abandonments and facility relocation and $2.4
million for the consolidation and discontinuance of cert a i n
operational activities and other related expenses. Of the total
charges, $5.9 million resulted from the write-off of assets and
$10.1 million invo l ved cash outflows. T his re s t ructuring has
been completed.
As of Ma rc h 3 1 , 1996, total accrued cash related acquisition
and re s t ructuring expenses we r e $7.8 million and included $2.0
million for estimated legal fees and expenses, $3.5 million for the
elimination of duplicative and excess facilities and $2.3 million
for the consolidation and discontinuance of certain operational
activities and other acquisition related expenses.
During fiscal 1994, Central Point purchased from unre l a t e d
p a rties certain in-process software technologies for approx i m a t e l y
(In thousands) Year Ended March ,
  
Delrina acquisition  , ——
Loss on sale of Time Line
Solutions Corporation assets , — —
Relocation of certain research
and development activities , — —
SLR acquisition — —
Central Point acquisition (,), —
Fifth Generation acquisition ——,
Contact acquisition ——,
XTree acquisition ——,
Centralization and
restructuring expense ——,
Central Point
restructuring charges ——,
Purchased in-process
research and development ——,
Class action lawsuit settlement ——,
Legal fees and expenses , — —
Other , — —
Total acquisition, restructuring
and other expenses  ,  ,  ,