Symantec 2000 Annual Report Download - page 46

primarily to Quarterdeck, of approximately $46 million that expire
in fiscal 2011 through 2019. Because of the “change in ownership”
provisions of the Internal Revenue Code of 1986, the net operat-
ing loss carryforwards of Quarterdeck are subject to an annual
limitation of approximately $2million regarding their utilization
against taxable income in future periods.
Pretax income from international operations was approximately
$117 million, $64 million and $65 million for the years ended March
31, 2000, 1999 and 1998, respectively.
No provision has been made for federal or state income taxes on
unremitted earnings of certain of our foreign subsidiaries (cumu-
lative $195 million at March 31, 2000) since we plan to indefinitely
reinvest all such earnings. At March 31, 2000, the unrecognized
deferred tax liability for these earnings was approximately
$50 million.
NOTE 10. EMPLOYEE BENEFITS
401(k) Plan We maintain a salary deferral 401(k) plan for all of
our domestic employees. This plan allows employees to con-
tribute up to 15%of their pretax salary up to the maximum dollar
limitation prescribed by the Internal Revenue Code. We match
100%of the first $500 of employees’ contributions and then 50%
of the employee’s contribution up to 6%of the employees’ eligi-
ble compensation. Our contributions under the plan were
approximately $2million for each of the years ended March 31,
2000, 1999 and 1998.
Employee Stock Purchase Plans In October 1989, we estab-
lished the 1989 Employee Stock Purchase Plan (“89 Plan”) and
reserved a total of approximately 3.4million shares of common
stock for issuance under this plan. Subject to certain limitations,
our employees may purchase, through payroll deductions of 2%to
10%of compensation, shares of common stock at a price per share
that is the lesser of 85%of the fair market value as of the beginning
of the offering period or the end of the purchase period. As of
March 31, 2000, approximately 3.1million shares had been issued
and 0.3million shares remain available under the 89 Plan.
On September 17, 1998, our stockholders approved the 1998
Employee Stock Purchase Plan (“98 Plan”). The 98 Plan was sub-
sequently amended by our stockholders on September 15, 1999,
increasing the shares available for issuance from approximately 0.5
million to 1.3million and to increase the limit on such shares by 1%
of our outstanding shares of Common Stock on each subsequent
January 1during the term of the 98 Plan. On January 1, 2000, the
number of shares available for issuance automatically increased by
approximately 0.6million shares to 1.9million shares. As of March
31, 2000, approximately 0.1million shares had been issued and 1.8
million shares remain available under the 98 Plan.
Stock Award Plans During fiscal 1996, we registered 0.4million
shares to be issued under the terms of the 1994 Patent Incentive
Plan. The purpose of this plan is to increase awareness of the
importance of patents to our business and to provide employees with
incentives to pursue patent protection for new technologies that may
be valuable to us. Our executive officers are not eligible for awards
under the 1994 Patent Incentive Plan. As of March 31, 2000, a total of
approximately 26,000 shares had been issued under this plan.
In March 1998, the Board of Directors approved the terms of the
1998 Star Award Bonus Plan, under which we may grant up to
5,000 shares of common stock to employees who perform excep-
tionally in a given quarter. Directors and executive officers are not
eligible to receive awards under this plan. Stock awards under this
plan are recorded as compensation expense at the time of
issuance. The Board of Directors reserved 20,000 shares of com-
mon stock for issuance under this plan. As of March 31, 2000, a
total of 1,300 shares had been issued under this plan.
Stock Option Plans We maintain stock option plans pursuant to
which an aggregate total of approximately 26.3million shares of com-
mon stock have been reserved for issuance as incentive and
nonqualified stock options to employees, officers, directors, consult-
ants, independent contractors and advisors to us (or of any parent,
subsidiary or affiliate of Symantec as the Board of Directors or com-
mittee may determine). The purpose of these plans are to attract,
retain and motivate eligible persons whose present and potential
contributions are important to our success by offering them an
opportunity to participate in our future performance through awards
of stock options and stock bonuses. Under the terms of these plans,
the option exercise price may not be less than 100%of the fair mar-
ket value on the date of grant, the options have a maximum term of
ten years and generally vest over a four-year period.
On May 14, 1996, Symantec stockholders approved the 1996 Equity
Incentive Plan and a total of approximately 6.7million shares of
common stock had been reserved for issuance under this plan. On
September 17, 1998, stockholders approved an amendment to
increase the number of shares reserved for issuance by approxi-
mately 2.3million to 9.0million shares. On September 15, 1999,
stockholders approved an additional amendment to increase the
number of shares reserved for issuance by approximately 3.2mil-
lion to 12.2million shares. As of March 31, 2000 a total of 8.4million
shares had been issued and are outstanding under this plan.
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