Symantec 1999 Annual Report Download - page 84

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SYMANTEC CORPORATION
Notes to Consolidated Financial Statements, Continued
70
employees as these costs had no future economic benefit to the Company. The actual cash outlays for these accrued
expenses were made during the terminated employees’ severance period.
The remaining accrual is a result of the following:
• Certain employees who were identified for termination found employment at other Symantec locations and
therefore were not eligible to receive the severance packages. At the time of the site closures, Symantec had
determined that these individuals would not find employment elsewhere within the Company.
• Symantec determined that most employees had not availed themselves of the out-placement services offered by
the Company at the time of their termination.
Excess facilities and equipment included remaining lease payments associated with the building leases for the Bedford
and St. Louis sites. The cash outlays for these leases were made over the remaining lives of the leases. The Company
expensed to operations lease rental costs until the time the facilities were vacated. In addition, Symantec reserved for
the write-off of excess equipment, furniture, fixtures and leasehold improvements which would not be utilized. Such
equipment, furniture, fixtures and leasehold improvements were either not utilized or were scrapped.
Legal and other primarily included Symantec’s legal expenses related to the site closures and the settlement of a
lawsuit. These costs and expenses were incurred in the period of the restructuring charge.
As of March 31, 1999, total accrued cash related to acquisition and restructuring expenses were approximately $4
million and included $1 million for excess facilities and equipment and $3 million for other acquisition related
expenses.
NOTE 15. NET INCOME PER SHARE
The components of the net income per share were as follows:
Year Ended March 31,
(In thousands, except per share data) 1999 1998 1997
Basic Net Income Per Share
Net income $ 50,201 $ 85,089 $ 26,038
Weighted average number of common
shares outstanding during the period 56,601 56,097 54,705
Basic net income per share $ 0.89 $ 1.52 $ 0.48
Diluted Net Income Per Share
Net income $50,201 $85,089 $26,038
Interest on convertible subordinated
debentures, net of income tax effect 627 692 --
Net income, as adjusted $ 50,828 $ 85,781 $ 26,038
Weighted average number of common
shares outstanding during the period 56,601 56,097 54,705
Shares issuable from assumed exercise
of options 1,684 2,964 702
Shares issuable from assumed conversion
of convertible subordinated debentures 1,004 1,220 --
Total shares for purpose of calculating
diluted net income per share 59,289 60,281 55,407
Diluted net income per share $ 0.86 $ 1.42 $ 0.47
For the twelve months ended March 31, 1997, 1,250,000 shares of convertible subordinated debentures and $708,000
of interest expense were excluded from the computation of diluted net income per share because the effect would have
been anti-dilutive.