Symantec 2001 Annual Report Download - page 21

management’s discussion and analysis
of financial condition and results of operations
During the last three fiscal years, we completed the following acquisi-
tions and divestitures:
In December 2000, we acquired 100% of the outstanding common
stock of AXENT in exchange for Symantec common stock. The trans-
action was accounted for as a purchase. We recorded goodwill and
other intangible assets in connection with this acquisition and are
amortizing these assets over four years. We wrote off the acquired in-
process research and development at the time of acquisition.
In March 2000, we purchased 100% of the outstanding common stock
of 20/20 Software. The transaction was accounted for as a purchase
and was paid for in cash. We recorded goodwill and acquired product
rights in connection with this acquisition and are amortizing these
assets over five years.We wrote off the acquired in-process research
and development at the time of acquisition.
Also in March 2000, we acquired L-3 Network 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 connection
with the acquisition and are amortizing these assets over five years.
We wrote off the acquired in-process research and development at the
time of acquisition.
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 intangible assets
in connection with the acquisition and are amortizing these assets
over five years. We wrote off the acquired in-process research and
development at the time of acquisition.
In November 1998, we completed a tender offer for the common stock
of Quarterdeck, obtaining 63% of the outstanding shares. In March
1999, we acquired 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 in connection with the
acquisition. We amortized 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. We wrote off the
acquired in-process research and development at the time of acquisition.
In September 1998, we entered into an agreement with Intel to acquire
its anti-virus business and to license its systems management 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 acquisition and are amortizing the value of these assets
over five years. We wrote off the acquired in-process research and
development at the time of acquisition.
In June 1998, we acquired the operations of Binary Research, including
the “Ghost”product line. The acquisition was accounted for as a
purchase and was paid for with cash. We recorded intangible assets of
acquired product rights and workforce-in-place as of the date of the
acquisition and are amortizing the value of the workforce-in-place
and acquired product rights over four years.We wrote off the acquired
in-process research and development at the time acquisition.
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.
We recorded intangible assets of prepaid research and development,
customer base and goodwill. 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 wrote off
the acquired in-process research and development at the time of
acquisition.
On December 31, 1999, we divested our Visual Café and ACT! product
lines. Because the divestitures of the Visual Café and ACT! product
lines were effective at the close of business on December 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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