Symantec 2000 Annual Report Download - page 22

parties have asserted and may, in the future, assert infringement
claims against us. These claims and any litigation may result in
invalidation of our proprietary rights. Litigation, even if not meri-
torious, could result in substantial costs and diversion of
resources and management attention.
Employees As of March 31, 2000, we employed approximately
2,600 people worldwide, including approximately 1,500 in sales,
marketing and related staff activities, 500 in product development
and 600 in management, manufacturing, administration and
finance. None of our employees are represented by a labor union
and we have experienced no work stoppages. We believe that rela-
tions with our employees are good. Competition in recruiting
personnel in the software industry is intense. We believe that our
future success will depend in part on our ability to recruit and
retain highly skilled management, marketing and technical
personnel. We believe that we must provide personnel with a
competitive compensation package, which necessitates the con-
tinued availability of stock options and shares to be issued under
our employee stock option and purchase plans.
Management’s Discussion and Analysis
of Financial Condition and Results of Operations
During the last three fiscal years, we completed the following
acquisitions and divestitures:
In March 2000, we purchased 100% of the outstanding common
stock of 20/20 Software. The transaction was accounted for as a
purchase and will be paid for in cash. We recorded goodwill and
acquired product rights in connection with this acquisition. We are
amortizing these intangible assets over five years.
Also in March 2000, we acquired L-3Network Security’s operations.
The transaction was accounted for as a purchase and was paid for
with cash. We recorded goodwill and other intangible assets in the
transaction. We wrote-off the acquired in-process research and
development. We are amortizing the value of the goodwill, acquired
product rights and other intangibles over five years.
In July 1999, we purchased 100%of the outstanding common stock
of URLabs. The transaction was accounted for as a purchase and
was paid for with cash. We recorded goodwill and other intangi-
ble assets in connection with the acquisition. We wrote-off the
acquired in-process research and development. We are amortiz-
ing the value of the goodwill, acquired product rights and other
intangibles over a five-year period.
In November 1998, we completed a tender offer for the common
stock of Quarterdeck, obtaining 63% of the outstanding shares.
In March 1999, Quarterdeck shareholders approved the acquisition
by Symantec of the remaining outstanding shares of Quarterdeck.
The acquisition of Quarterdeck was accounted for as a purchase
and was paid for with cash. We recorded acquired product rights,
goodwill, workforce in place and other intangible assets for the
respective purchases. We wrote-off the acquired in-process
research and development. We are amortizing the value of the
workforce in place over two years. We are amortizing the value of
the remaining intangibles, acquired product rights and goodwill
over five years.
In September 1998, we entered into an agreement with Intel to
acquire its anti-virus business and to license its systems man-
agement technology. The acquisition was accounted for as a
purchase and was paid for with cash. We recorded acquired
product rights and other intangibles as of the date of the acqui-
sition. We wrote-off the acquired in-process research and
development. We are amortizing the value of the intangible assets
over five years.
In June 1998, we acquired the operations of Binary. The acquisition
was accounted for as a purchase and was paid for with cash. We
recorded intangible assets of acquired product rights and work-
force in place as of the date of the acquisition. We wrote-off the
acquired in-process research and development. We are amortiz-
ing the value of the workforce in place and acquired product rights
over four years.
In May 1998, we entered into an agreement with IBM to acquire its
immune system technology and related anti-virus patents. The
acquisition was accounted for as a purchase and was paid for with
cash and debt. We recorded intangible assets of prepaid research
and development, customer base and goodwill. We wrote-off the
acquired in-process research and development. We amortized
the value of prepaid research and development over one year. We
are amortizing the value of both the goodwill and customer base
over five years.
We did not complete any acquisitions during fiscal 1998.
On December 31, 1999, we divested our ACT! and Visual Café prod-
uct lines. Because the divestitures of the ACT! and Visual Café
product lines were effective at the close of business on Decem-
ber 31, 1999, these product lines are included in the results of
operations through December 31, 1999.
Results of Operations The following table sets forth each item
from our consolidated statements of income as a percentage of
net revenues and the percentage change in the total amount of
each item for the periods indicated.
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