Symantec 2000 Annual Report Download - page 27

technologies in the marketplace during calendar year 2000, and
it was introduced at the end of the December 1999 quarter.
We used a discount rate of 30%for valuing the in-process tech-
nologies from URLabs, which we believe reflects the risk
associated with the completion of these research and develop-
ment projects and the estimated future economic benefits to be
generated subsequent to their completion. This discount rate is
higher than the weighted average cost of capital of 25%, due to the
fact that the technology had not reached technological feasibility
as of the date of the valuation. The rates used for URLabs are
higher than the rates used for L-3due to differences in the eco-
nomic environments at the time of each acquisition, such as the
equities market and the interest rate environment.
The assumptions and projections discussed for the technologies
acquired from URLabs were based on information available at the
time and should not be taken as indications of actual results,
which could vary materially based on the risks and uncertainties
identified in the risk factors set forth in our previously filed Form
10K for the year ended March 31, 2000.
IBM The in-process technology acquired in the IBM purchase pri-
marily consisted of the IBM immune system technology and
related anti-virus patents. We have integrated this technology into
our anti-virus products. The original assumptions and projections
discussed in prior filings for the immune system and related anti-
virus technology acquired from IBM have not significantly changed.
Binary The in-process technology acquired in the Binary acqui-
sition primarily consisted of disk cloning technologies associated
with Ghost, the flagship product of Binary, which has been added
to our product offerings. The assumptions and projections dis-
cussed in prior filings for the disk cloning technologies acquired
from Binary have not significantly changed.
Intel The in-process technology acquired in the Intel purchase
consists of the LANDesk anti-virus technology, which resides in the
LANDesk virus protect product line. This technology has been inte-
grated into our corporate anti-virus offerings. The assumptions and
projections discussed in prior filings for the LANDesk anti-virus
technology acquired from Intel have not significantly changed.
Quarterdeck The in-process technology acquired in our acquisi-
tion of Quarterdeck consisted of projects related to Quarterdeck’s
CleanSweep product line. These technologies have been inte-
grated into Norton SystemWorks and is sold as a stand-alone
product. The assumptions and projections discussed in prior fil-
ings for the projects related to Quarterdeck’s CleanSweep product
line have not significantly changed.
Restructuring and Other Expenses During the March 2000
quarter, we reduced our operations in our Melville and Toronto
sites, thereby reducing our workforce by 96 employees. Each of
these employees received a separation package. As a result, we
vacated the facility in Melville and we are reducing the space occu-
pied in Toronto. We recorded approximately $3.4million for
employee severance, outplacement and abandonment of certain
facilities and equipment during the March 2000 quarter. In addition,
we provided approximately $0.7million for costs of severance,
related benefits and outplacement services for two members of
senior management due to the realignment of our business units
and their resulting departures during the March 2000 quarter.
During the December 1999 quarter, we reduced our Internet Tools
business unit’s workforce and reduced our Sales workforce. There
were 48 employees in the Internet Tools business unit affected,
resulting in approximately $1.8million of severance, related ben-
efits and outplacement services being accrued during the
December 1999 quarter. The Sales workforce reduction affected 10
employees, resulting in approximately $0.4million of severance,
related benefits and outplacement services being accrued in the
December 1999 quarter.
During the September 1999 quarter, we provided approximately
$0.7million for costs of severance, related benefits and outplace-
ment services for two members of senior management due to the
realignment of our business units and their resulting departures.
We also accrued approximately $2.7million for certain costs
related to an agreement reached with our former CEO in the June
1999 quarter. These costs were comprised of severance and accel-
eration of unvested stock options.
During the September 1998 quarter, we made a decision to restruc-
ture our operations and outsource domestic manufacturing
operations. As a result, we originally recorded a $3.8million
charge for personnel severance to reduce the workforce by
approximately 5%in both domestic and international operations
and a $1.3million charge for the planned abandonment of a man-
ufacturing facility lease. These estimates were subsequently
revised in the September 1999 quarter, resulting in a reduction in
the personnel severance and outplacement accruals by approxi-
mately $0.7million.
There were no restructuring and other expenses incurred in
fiscal 1998.
Litigation Judgment During the June 1998 quarter, we accrued
litigation expenses of approximately $6million related to a judgment
by a Canadian court on a decade-old copyright action assumed by
us as a result of our acquisition of Delrina Corporation.
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