Symantec 2000 Annual Report Download - page 38

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Recent Accounting Pronouncements In June 1998, the Financial
Accounting Standards Board (“FASB”) issued SFAS No. 133,
Accounting for Derivative Instruments and Hedging Activities,
which establishes accounting and reporting standards for deriva-
tive instruments, including certain derivative instruments
embedded in other contracts (collectively referred to as deriva-
tives) and for hedging activities. In June 1999, the FASB issued SFAS
No. 137, Accounting for Derivative Instruments and Hedging Activ-
ities – Deferral of the Effective Date of FASB Statement No. 133,
which defers the adoption of SFAS No. 133 for one year. SFAS 133
will be effective for us at the beginning of the June 2001 quarter for
both annual and interim reporting periods. We are currently eval-
uating the potential impact of this accounting pronouncement on
our required disclosures and accounting practices.
In March 2000, the FASB issued Interpretation No. 44, Accounting
for Certain Transactions Involving Stock Compensation, an inter-
pretation of APB Opinion No. 25. This Interpretation clarifies the
application of Opinion No. 25 for certain issues including: (a) the
definition of an employee for purposes of applying Opinion No. 25,
(b) the criteria for determining whether a plan qualifies as a non-
compensatory plan, (c) the accounting consequence of various
modifications to the terms of a previously fixed stock option or
award and (d) the accounting for an exchange of stock compen-
sation awards in a business combination. In general, this
Interpretation is effective July 1, 2000. We do not expect the adop-
tion of Interpretation No. 44 to have a material effect on our
consolidated financial position or results of operations.
In December 1999, the SEC issued Staff Accounting Bulletin (“SAB”)
No. 101, Revenue Recognition in Financial Statements. In March
2000, the SEC released SAB No. 101A, which defers reporting the
effects of the adoption of SAB No. 101 until our first fiscal quarter
of fiscal 2001. We are currently evaluating the potential impact of
SAB No. 101 on our required disclosures and accounting practices.
Reclassifications Certain previously reported amounts have
been reclassified to conform to the current presentation format
with no impact on net income. All financial information has been
restated to conform to this presentation.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1. BALANCE SHEET INFORMATION
March 31,
(In thousands) 2000 1999
Cash, cash equivalents
and short-term investments:
Cash $60,103$41,031
Cash equivalents 27,870 102,832
Short-term investments 343,577 48,892
$ 431,550 $ 192,755
Trade accounts receivable:
Receivables $ 53,710 $ 81,332
Less: allowance for doubtful accounts (6,444) (4,946)
$ 47,266 $ 76,386
Inventories:
Raw materials $ 2,483 $ 1,887
Finished goods 3,192 4,490
$ 5,675 $ 6,377
Equipment and leasehold improvements:
Computer hardware and software $ 142,290 $ 134,745
Office furniture and equipment 39,330 33,705
Leasehold improvements 19,585 22, 516
201,205 190,966
Less: accumulated depreciation
and amortization (149,300) (138,079)
$ 51,905 $ 52,887
Purchased product rights
and capitalized software:
Purchased product rights
and technologies $ 54,592 $ 47,181
Capitalized software development costs 2,397 2,377
Less: accumulated amortization
of purchased product rights
and technologies (20,522) (11, 112)
Less: accumulated amortization
of capitalized software
development costs (2,397) (2,237)
$ 34,070 $ 36,209
Goodwill:
Goodwill $ 107,032 $ 81,400
Less: accumulated amortization (24,060) (6, 176)
$ 82,972 $ 75,224
Accumulated other comprehensive loss:
Unrealized loss on
available-for-sale investments $ ( 2,373) $ ( 304)
Cumulative translation adjustment (25,334) (18, 806)
$ (27,707) $ (19, 110)