Symantec 1999 Annual Report Download - page 83

SYMANTEC CORPORATION
Notes to Consolidated Financial Statements, Continued
69
Details of the restructuring charge are as follows:
Cash/ Restructuring Amount Balance
(In thousands) Non-cash Charge Paid at 3/31/99
Employee severance and out-placement Cash $3,800 $3,132 $ 668
Excess facilities and equipment Cash &Non-cash 1,305 310 995
Total restructuring and other expenses $ 5,105 $ 3,442 $ 1,663
Employee severance and out-placement was primarily comprised of severance packages for employees who were to
be terminated as a result of the restructuring. As part of the restructuring plan, we specifically identified those
individuals who would not continue employment with Symantec. The severance periods ranged from one to six
months. Symantec’s Human Resource Department met with each terminating employee and presented them with their
termination date and severance package. The total cost of the severance packages was accrued and included in
restructuring charge after the identified employees had their severance packages communicated to them.
Additionally, Symantec accrued estimated costs associated with outplacement services to be provided to terminating
employees as these costs have no future economic benefit to us. The remaining accrual at March 31, 1999 was for
outstanding severance and outplacement costs.
Excess facilities and equipment included remaining lease payments associated with building leases for the Sunnyvale,
California site subsequent to the planned abandonment date. The cash outlays for the lease are to be made over the
remaining term of the lease. In addition, Symantec reserved for the write-off of the site-specific equipment, furniture,
fixtures and leasehold improvements that would no longer be utilized. The accrual at March 31, 1999 relates to the
remaining lease payments, which will be paid over the remaining lease term subsequent to the abandonment of the
facility.
No acquisition, restructuring and other expenses were incurred during fiscal 1998.
During fiscal 1997, Symantec recorded charges of approximately $2 million in connection with the write-off of an
equity investment in a privately held company. Additionally, during fiscal 1997, we recorded a charge of
approximately $3 million for centralization and restructuring costs, which is outlined below. Symantec recorded total
acquisition charges of less than $1 million in the quarter ended June 30, 1996 in connection with the acquisition of
Fast Track, Inc.
Centralization and Restructuring Costs
Cash/ Restructuring Amount Balance
(In thousands) Non-cash Charge Paid at 3/31/99
Employee severance and out-placement Cash $2,434 $1,680 $ 754
Excess facilities and equipment Cash &Non-cash 276 250 26
Legal and other Cash 476 410 65
Total restructuring and other expenses $ 3,185 $ 2,340 $ 845
In June and September 1996, Executive Management approved and committed Symantec to close the Bedford,
Massachusetts and St. Louis, Missouri facilities. The facility closures were part of the Company’s plan to consolidate
certain research and development activities. These exit plans specifically identified the following significant actions
to complete the closures:
• the number and categories of individuals who would not continue employment with Symantec;
• the termination date and severance package for each terminating employee;
• the date the Bedford and St. Louis facilities would be vacated; and
• the excess equipment, furniture, fixtures and leasehold improvements to be disposed of.
Employee severance and out-placement expenses were primarily comprised of severance packages for employees who
were to be terminated as a result of the closure of the Bedford and St. Louis sites. The severance reserve was
computed based on an estimated severance compensation, benefits and related employer payroll taxes. The severance
periods ranged from one to six months. Prior to amounts being accrued, Symantec’s Human Resource Department
met with each terminating employee and presented them with their termination date and severance package.
Additionally, Symantec accrued estimated costs associated with out-placement services provided to terminating