Symantec 1999 Annual Report Download - page 82

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SYMANTEC CORPORATION
Notes to Consolidated Financial Statements, Continued
68
NOTE 13. SALE OF TECHNOLOGIES AND PRODUCT RIGHTS
During September 1996, Symantec sold its electronic forms software product line and related tangible assets to
JetForm for approximately $100 million, payable over four years in quarterly installments through the June 2000
quarter. During February 1998, the purchase agreement was amended to accelerate certain quarterly payments during
the remaining payment term in exchange for a reduction in the total sale price to approximately $93 million. During
June 1998, the purchase agreement was amended once again to modify certain payments, however, the total sales
price remained at $93 million. JetForm has the option to tender payment in either cash or in registered JetForm
common stock, within a contractually defined quantity threshold. Due to the uncertainty regarding the ultimate
collectibility of these installments, we are recognizing the related revenue as payments are due and collectibility is
assured from JetForm. We recognized income of approximately $34 million, $24 million and $18 million from
JetForm during fiscal 1999, 1998 and 1997, respectively.
In March 1997, Symantec sold its network administration technologies and related tangible assets to Hewlett-Packard,
resulting in the receipt of approximately $1 million of revenue and a $2 million research and development
reimbursement in fiscal 1997. Additionally, a two-year quarterly royalty payment stream, not to exceed a present
value of $27 million as of March 1997, commenced in fiscal 1998, which was solely contingent on future sales of
certain Hewlett-Packard products. Due to the uncertainty regarding the amounts upon which these royalties will be
determined, Symantec recognized these amounts as they were received from Hewlett-Packard. We recognized
income of approximately $7 million and $22 million from Hewlett-Packard during fiscal 1999 and 1998, respectively.
Royalty payments from Hewlett-Packard ended during the December 1998 quarter.
In connection with the sale to Hewlett-Packard during fiscal 1997, Symantec wrote off approximately $7 million of
unamortized software development costs and less than $1 million of unamortized purchased product rights, as well as
incurred approximately $2 million of legal, accounting and other costs associated with the transaction.
NOTE 14. ACQUISITION , RESTRUCTURING AND OTHER EXPENSES
Acquisition, restructuring and other expenses consist of the following:
Year Ended March 31,
(In thousands) 1999 1998 1997
Centralization and restructuring expenses $-- $-- $3,185
Write off of equity investment -- -- 1,750
Fast Track, Inc. acquisition -- -- 600
Employee severance and out-placement 3,800 -- --
Excess facilities and equipment 1,305 -- --
Total acquisition, restructuring and other expenses $ 5,105 $ -- $ 5,535
On September 29, 1998, Symantec’s CEO announced a reduction in workforce and the outsourcing of Symantec’s
domestic short-run manufacturing, product distribution and return teams which resulted in the closure and vacancy of
the Sunnyvale, California site in February 1999 and the termination of related employees. The exit plan associated
with the reduction in workforce and facility closure specifically identified all the significant actions, including:
• the number and categories of individuals who would not continue employment with Symantec;
• the termination dates and severance packages for each terminating employee;
• the planned date we would vacate the Sunnyvale, California building which was under an existing
operating lease; and
• the excess equipment, furniture, fixtures and leasehold improvements to be disposed of.