Symantec 2001 Annual Report Download - page 25

We estimated costs to be incurred to reach technological feasibility of
the in-process technologies from AXENT as of the date of the acquisi-
tion to total approximately $4.7 million. We estimated the in-process
technology to be between 40% and 60% complete at that time.
We used a discount rate of 25% for valuing the in-process technologies
from AXENT, which we believe reflects the risk associated with the
completion of these research and development projects and the esti-
mated future economic benefits to be generated subsequent to their
completion. This discount rate is higher than the weighted average cost
of capital of 15%, due to the risks related to the fact that the technology
had not reached technological feasibility as of the date of the valuation.
The assumptions and projections discussed for the technologies
acquired from AXENT were based on information 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
Business Risk Factors.
L-3 Network SecurityThe in-process technology acquired in the L-3
Network Security purchase consisted primarily of research and devel-
opment related to the next generation of Retriever and Expert. We
have integrated this technology into our vulnerability management
products. The original assumptions and projections discussed in prior
filings for the research and development acquired from L-3 Networks
Security have not significantly changed.
URLabs The in-process technology acquired in the URLabs purchase
consisted primarily of research and development related to the next
generation of URLabs’two main products, I-Gear and Mail-Gear,
which have been added to our product offerings. The original assump-
tions and projections discussed in prior filings for the research and
development acquired from URLabs have not significantly changed.
IBM The in-process technology acquired in the IBM purchase prima-
rily 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 Research The in-process technology acquired in the Binary
Research acquisition primarily consisted of disk cloning technologies
associated with Ghost, the flagship product of Binary Research,
which has been added to our product offerings. The assumptions and
projections discussed in prior filings for the disk cloning technologies
acquired from Binary Research have not significantly changed.
Intel The in-process technology acquired in the Intel purchase
consisted of the LANDesk anti-virus technology, which resides in
the LANDesk virus protect product line. This technology has been
integrated 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 acquisition of
Quarterdeck consisted of projects related to Quarterdeck’s CleanSweep
product line. These technologies have been integrated into Norton
SystemWorks and are sold as a stand-alone product. The assumptions
and projections discussed in prior filings for the projects related to
Quarterdeck’s CleanSweep product line have not significantly changed.
Restructuring and Other Expenses During the March 2001 quarter,
we reorganized various operating functions, thereby reducing our
workforce by 50 employees, and recorded approximately $1.1 million
for the costs of severance, related benefits and outplacement services.
In addition, we provided approximately $1.2 million for costs of sever-
ance and related benefits for six members of our senior management
due to a realignment of certain responsibilities.
During the December 2000 quarter, we reduced a portion of our oper-
ations in Toronto, thereby reducing our workforce by 10 employees,
and recorded approximately $0.4 million for the costs of severance,
related benefits and abandonment of certain equipment. In addition,
approximately $0.9 million was provided for costs of severance and
related benefits for four members of our senior management due to a
realignment of certain responsibilities.
During the March 2000 quarter, we reduced our operations in our
Melville and Toronto sites, thereby reducing our workforce by 96
employees.As a result, we vacated the facility in Melville and we
reduced the space occupied in Toronto. We recorded approximately
$3.4 million for employee severance, outplacement and abandonment
of certain facilities and equipment during the March 2000 quarter. In
addition, we provided approximately $0.7 million for costs of sever-
ance, 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 a
charge of approximately $1.8 million for severance, related benefits
and outplacement services. The sales workforce reduction affected 10
employees, resulting in a charge of approximately $0.4 million for
severance, related benefits and outplacement services.
During the September 1999 quarter, we provided approximately
$0.7 million for costs of severance, related benefits and outplacement
services for two members of senior management due to the realign-
ment of our business units and their resulting departures. We also
recorded approximately $2.7 million for certain costs related to an
agreement reached with our former CEO in the June 1999 quarter.
These costs were comprised of severance and the acceleration of
unvested stock options.
During the September 1998 quarter, we made a decision to restructure
our operations and outsource domestic manufacturing operations.
As a result, we originally recorded a $3.8 million charge for personnel
severance to reduce the workforce by approximately 5% in both
domestic and international operations and a $1.3 million charge for
the planned abandonment of a manufacturing facility lease. These esti-
mates were subsequently revised in the September 1999 quarter,
resulting in a reduction in the personnel severance and outplacement
accruals by approximately $0.7 million.
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