Symantec 1999 Annual Report Download - page 21

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7
We typically offer two types of rebate programs: volume incentive rebates and rebates to end users. Volume incentive
rebates are made available to our distributors and resellers. The distributor or reseller earns a rebate based upon their
purchases and their sale of products to end users. Volume incentive rebates are accrued when revenue is recorded.
From time to time, we also make rebates available to end users of various products acquired through major retailers.
End user rebates are accrued when revenue is recorded.
International Revenues
International revenues, or revenues outside of North America, represented approximately 37%, 34% and 30% of our
net revenues for fiscal 1999, 1998 and 1997, respectively.
The majority of our net revenues from various European regions are derived from sales by affiliates of our major
United States distributors. In other countries, we sell our products through authorized distributors. In some countries,
these distributors are restricted to specified territories. We typically adapt products for local markets. We adapt
products by translating the documentation and software, where necessary, and preparing marketing programs for each
local market.
We have marketing offices in Argentina, Australia, Brazil, Canada, China, Czech Republic, Denmark, France,
Germany, Holland, Hong Kong, Italy, Japan, Korea, Malaysia, Mexico, New Zealand, Norway, Russia, Singapore,
South Africa, Sweden, Switzerland, Taiwan, United Arab Emirates and the United Kingdom. These local offices
facilitate our marketing and distribution in international markets. Our international operations are subject to various
risks common to international operations, including:
• government regulations;
• import restrictions;
• currency fluctuations;
• repatriation restrictions; and
• in some jurisdictions, reduced protection for our copyrights and trademarks.
Customer Support
Our product support program provides a wide variety of free and fee-based technical support services to our
customers. We provide customers with free support via electronic and automated services as well as 30 to 90 days
free telephone support for selected products. In August 1996, we introduced LiveUpdate, which provides online
access to application bug fixes and/or patches for most of our currently marketed and developed products. In
addition, we offer both domestic individual users and domestic corporate customers a variety of fee-based options
designed to meet their technical support requirements. We revise these fee-based support programs from time to
time as customer requirements change and as market trends dictate. Fee-based technical support services did not
generate material revenues in any fiscal year presented and are not expected to generate material revenues in the
near future.
Product Development, Partnerships and Acquisitions .
We use a multiple product sourcing strategy that includes, as necessary:
• internal development;
• licensing from third parties; and
• acquisitions of technologies, product lines or companies.
We develop software products that are designed to operate on a variety of operating systems. We typically develop
new products and enhancements of existing products through our business units. Each unit is responsible for design,
development, documentation and quality assurance.
Independent contractors are used for aspects of the product development process. In addition, elements of some of our
products are licensed from third-party developers.
We use strategic acquisitions, as necessary, to provide certain technology, people and products for our overall product
strategy. We have completed a number of acquisitions and dispositions of technologies, companies and products and
may acquire and dispose of other technologies, companies and products in the future. As discussed in the Introduction
to this Item, during fiscal 1999, we acquired Quarterdeck, Intel’s and IBM’s anti-virus businesses, and Binary’s
operations. For further discussion, see Note 3 of Notes to Consolidated Financial Statements in this Form 10-K.