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symantec annual report 2002
new game new rules

Table of contents

  • Page 1
    symantec annual report 2002 new game new rules

  • Page 2
    ... from Visual Café and ACT! product lines divested on December 31, 1999, one-time charges and acquisition-related amortization charges. This annual report should be read in conjunction with Symantec Corporation's previously filed Form 10-K for the period ended March 31, 2002. ($0.20) 02 $1.30

  • Page 3
    ... updates directly to the desktop, gateway or server through a common, easyto-use method. We also integrated our antivirus and content filtering technologies to enhance gateway and mail server protection with Symantecâ„¢ Web Security, which plugs the holes on a company's network perimeter to block...

  • Page 4
    ... are also an important part of our coverage strategy. changing the rules of the game In this increasingly connected world, customers are struggling to protect hundreds of network servers, thousands of desktops and a vast array of mobile devices from new security threats. The complexity of...

  • Page 5
    ...expect rapid response and tools that protect all tiers of the network. Our world-class security response team supports customers around the world on a 24/7 basis, sends alerts, posts new software updates and provides repair tools to clean up the damage caused by the growing number of new threats. As...

  • Page 6
    4 NEW GAME NEW RULES SYMANTEC ANNUAL REPORT 2002 5 things have changed

  • Page 7
    6 NEW GAME NEW RULES SYMANTEC ANNUAL REPORT 2002 7 the world met the web and fell in love

  • Page 8
    8 NEW GAME NEW RULES SYMANTEC ANNUAL REPORT 2002 9 perimeters began to dissolve

  • Page 9
    10 NEW GAME NEW RULES SYMANTEC ANNUAL REPORT 2002 11 security decisions moved from the desktop to the boardroom

  • Page 10
    12 NEW GAME peace of mind moved from being

  • Page 11
    NEW RULES SYMANTEC ANNUAL REPORT 2002 13 It's a new game. The world is more connected than ever. Securing the Internet is more vital than ever to protecting the way we work, play and do business. As the global leader in Internet security, Symantec is helping customers stay ahead of the game-even ...

  • Page 12
    ...rules of the new game For the last 20 years, Symantec has provided global solutions that anticipate emerging customer issues. Now we're joining forces with customers and partners to lay the foundation for the next generation of Internet security-where it takes new rules to win. shifting to proactive...

  • Page 13
    ... client firewall/VPN and intrusion detection applications into a single, scalable management tool. The result: the single deployment of timely definitions, rules and signatures critical to addressing blended threats. Symantec's enterprise administration solutions are primed for rolling out security...

  • Page 14
    ... experts, security engineers, virus hunters and global technical support teams. The group works together to provide global, 24/7 coverage to help protect business continuity and reduce downtime for enterprises and individuals around the world. automation ensures rapid response Symantec's automated...

  • Page 15
    NEW RULES SYMANTEC ANNUAL REPORT 2002 17 response center support center security operations center fig. 04 GLOBAL REACH-With operations around the world, Symantec provides consistent coverage to global customers. quickly and easily deployed across the portfolio of Symantec products using ...

  • Page 16
    ...We also work closely with Microsoft on its security initiatives and Microsoft .NET technologies. To ensure the broadest delivery of our security solutions, Symantec teams with service providers, large systems integrators and top consulting firms. We provide varying levels of antivirus protection for...

  • Page 17
    ...channel partner program provides resources and fee-based training and certification on basic product knowledge as well as critical technologies and processes in four technical areas: virus protection and content management, firewall and VPN technologies, intrusion detection systems and vulnerability...

  • Page 18
    ... John W. Thompson Chairman of the Board and Chief Executive Officer, Symantec Corporation Vice President, Worldwide Security Services Steven B. Messick Vice President, North America Sales and Marketing Akihiko Narita President SKK and Vice President, Japan Mark L. Nittler Vice President, Strategic...

  • Page 19
    ...The company is a leading provider of client, gateway and server security solutions for virus protection, firewall and virtual private network, vulnerability management, intrusion detection, Internet content and e-mail filtering, remote management technologies and security services to enterprises and...

  • Page 20

  • Page 21
    symantec annual report 2002 financial results

  • Page 22
    ... by non-aÇliates of the registrant, based upon the closing sale price of the Symantec common stock on June 7, 2002 as reported on the Nasdaq National Market and with respect to the Delrina exchangeable stock on the Toronto Stock Exchange: $4,572,558,473 Number of shares outstanding of each of the...

  • Page 23
    SYMANTEC CORPORATION FORM 10-K For the Fiscal Year Ended March 29, 2002 TABLE OF CONTENTS Page Item Item Item Item 1. 2. 3. 4. PART I Business Properties Legal Proceedings Submission of Matters to a Vote of Security Holders 2 12 13 13 14 15 16 36 37 37 38 38 38 41 42 86 PART II Item 5. ...

  • Page 24
    ... Security Our Enterprise Security segment focuses on providing Internet security technology, global response and services necessary for organizations to manage their information security needs. Our comprehensive solutions oÃ...er products to protect gateways, servers, and clients (desktop PCs, laptops...

  • Page 25
    ... security area. Symantec AntiVirusTM oÃ...ers the Ã-exibility of a bundled, multi-tiered antivirus solution to protect the enterprise's network, including Internet gateways, desktops, Ã'le and print servers, mail servers and Ã'rewalls. Symantec AntiVirus also enables corporations to keep their virus...

  • Page 26
    ... automate the discovery of security vulnerabilities and deviations of the security policy in mission critical e-business applications and servers across the enterprise from a single location. Symantec Enterprise Security Manager provides intelligent tools that allow administrators to create a pre-de...

  • Page 27
    ... Security Services allows organizations to leverage the knowledge of Internet security experts in order to protect the value of their networked assets and infrastructure. The around-the-clock delivery of managed services is provided remotely from our global Security Operation Centers located in San...

  • Page 28
    ...of our products and product upgrades through direct mail and over the Internet, in conjunction with channel partners. We maintain distribution relationships with major independent distributors. Our indirect sales force works closely with our major distributor and reseller accounts to manage the Ã-ow...

  • Page 29
    ... Check, a web-based tool for users to assess the security vulnerabilities on their computers (consumer only); ‚ participation in focused trade and computer shows; and ‚ primary market research to understand evolving customer need and buying behaviors (consumer only). For our consumer products...

  • Page 30
    ... and global technical support teams that work in tandem to provide extensive coverage for enterprise businesses and consumers. Symantec Security Response provides customers with comprehensive, global, 24x7 Internet security expertise to guard against today's blended Internet threats, threats that...

  • Page 31
    ...severe problems; 3) periodic software updates; 4) access to our technical knowledge base and FAQ facility; and 5) an invitation to the annual user group meeting. Inclusive in these standard annual support contracts are virus deÃ'nitions and intrusion detection signatures created by Symantec Security...

  • Page 32
    ... of viruses and other Internet-based security threats, several other companies have entered the market and may become signiÃ'cant competitors in the future. Our Symantec Security Services competes with companies such as Counterpane, Internet Security Services, Network Associates and Riptech. Price...

  • Page 33
    ...and management attention. Employees As of March 31, 2002, we employed approximately 3,900 people worldwide, including approximately 2,100 in sales, marketing and related staÃ... activities, 890 in product development, 150 in consulting services, and 760 in management, manufacturing, administration and...

  • Page 34
    ... administrative, sales and marketing facilities are located in Cupertino, California. We lease a number of additional facilities for administrative, marketing, localization and technical support in the United States, China, Ireland, Japan, the Netherlands, New Zealand and Taiwan; for administration...

  • Page 35
    ... Notes to Consolidated Financial Statements of this Form 10-K, which information is incorporated into this Item 3 by reference. Item 4. Submission of Matters to a Vote of Security Holders No matters were submitted to a vote of the security holders during the quarter ended March 31, 2002. 13

  • Page 36
    ... closing sales prices set forth below are in Canadian dollars as reported on the Toronto Stock Exchange. Delrina exchangeable stock is exchangeable at the option of the stockholders on a one-for-one basis into Symantec common stock until November 2002, at which point the Delrina exchangeable shares...

  • Page 37
    ... related notes included elsewhere herein. During Ã'scal 2002, we acquired Lindner & Pelc and Foster-Melliar. During Ã'scal 2001, we acquired AXENT. During Ã'scal 2000, we acquired 20/20 Software, L-3 Network Security's operations and URLabs. Each of these acquisitions was accounted for as a purchase...

  • Page 38
    ...provider of client, gateway and server security solutions for virus protection, Ã'rewall and virtual private network, vulnerability management, intrusion detection, Internet content and e-mail Ã'ltering, remote management technologies and security services to enterprises and service providers around...

  • Page 39
    ... education services revenue as services are performed. We recognize managed security services revenue ratably over the period that such contracted services are provided. In arrangements that include software licenses and maintenance and/or professional services, and packaged products with content...

  • Page 40
    ...rebates, related primarily to products within our Enterprise Security, Enterprise Administration and Consumer segments. Our estimated reserves for channel volume incentive rebates are based on distributors' and resellers' actual performance against the terms and conditions of volume incentive rebate...

  • Page 41
    ...we acquired 100% of the outstanding common stock of AXENT, an enterprise security software company, in exchange for Symantec common stock. We also assumed all of the outstanding AXENT employee stock options. The transaction was accounted for as a purchase and was initially recorded for approximately...

  • Page 42
    ... Ã'scal 2002. The increase in enterprise security products during Ã'scal 2002 was attributable to a full year of sales related to AXENT solutions as compared to approximately three months during Ã'scal 2001. From a regional standpoint, this increase was primarily due to growth in net revenues in the...

  • Page 43
    ...2002 as compared to Ã'scal 2001. This increase was primarily related to an increase in sales of our Norton AntiVirus and Norton Internet Security products, mostly as a result of strong consumer and small business spending, and an increase in the renewal subscription pricing of our antivirus products...

  • Page 44
    ... to Ã'scal 2000 due primarily to higher margins associated with the increase in enterprise related sales and cost savings achieved in reduced packaging costs. Acquired Product Rights Acquired product rights are comprised of purchased product rights, technologies and workforce-in-place. During Ã'scal...

  • Page 45
    ... three months during Ã'scal 2001. Research and development expenses increased 17% to approximately $126.7 million during Ã'scal 2001 from $108.4 million during Ã'scal 2000. The increase was a result of Enterprise Security segment hiring, salary increases and other employee related expenses...

  • Page 46
    ... line in August 2001. L-3 Network Security The in-process technology acquired in the L-3 Network Security purchase consisted primarily of research and development related to the next generation of Retriever and Expert. We have integrated this technology into our vulnerability management products. 24

  • Page 47
    ... in Melville and Toronto and our Internet Tools business unit. We reduced our workforce by 154 employees and Ã've members of our senior management, and as a result, we recorded approximately $9.7 million for severance, related beneÃ'ts, outplacement services and abandonment of certain facilities and...

  • Page 48
    ... and 2000, respectively. During Ã'scal 2002 and 2001, income, net of expense, from sale of technologies and product lines was related primarily to royalties from Interact Commerce Corporation, who subsequently merged with The Sage Group plc, as a result of the divestiture of our ACT! product line...

  • Page 49
    ..., as well as net proceeds from the exercise of stock options and sales of common stock through our employee stock purchase plan. The cash provided by these factors was partially oÃ...set by cash paid to purchase marketable securities and investments, net of proceeds, of approximately $721.7 million...

  • Page 50
    ... Directors replaced an earlier stock repurchase program with a new authorization to repurchase up to $700.0 million, not to exceed 30.0 million shares, of Symantec's common stock with no expiration date. During the September 2001 quarter, we repurchased 9.6 million shares at prices ranging from $17...

  • Page 51
    ... that all business combinations initiated after June 30, 2001 be accounted for under the purchase method of accounting. Under SFAS No. 142, goodwill and intangible assets deemed to have indeÃ'nite lives will no longer be amortized but will be subject to an annual impairment test. Other intangibles...

  • Page 52
    ...sales force attempts to close transactions before the end of our Ã'scal year. To the extent seasonality makes it more diÇcult to predict our revenues and value our business, our stock price may suÃ...er and the volatility of our stock may increase. Our increased sales of enterprise-wide site licenses...

  • Page 53
    segment becomes more important to our business and our product strategy continues to develop, we may face new competitors or new levels of competition. Enterprise licensing arrangements involve a longer sales cycle than sales through other distribution channels, require greater investment of ...

  • Page 54
    ...our Ã'nancial results and stock price. The inclusion of security, remote access or virus protection tools in new operating systems and hardware packages could adversely aÃ...ect our sales. For example, the inclusion of features by Microsoft in future editions of Windows which directly compete with our...

  • Page 55
    ... majority of their purchases at the end of a Ã'scal quarter. In addition, many enterprise customers negotiate site licenses near the end of each quarter. In part, this is because these two groups are able, or believe that they are able, to negotiate lower prices and more favorable terms at that time...

  • Page 56
    ..., we may experience reduced sales or increased write-oÃ...s, which would adversely aÃ...ect our operating results. Product returns may negatively aÃ...ect our net revenues. Product returns can occur when we introduce upgrades and new versions of products or when distributors or retailers have excess...

  • Page 57
    ... of our license agreements with customers contain provisions designed to limit our exposure to potential product liability claims. It is possible, however, that these provisions may not prove eÃ...ective in limiting our liability. Increased utilization and costs of our technical support services may...

  • Page 58
    ... conduct business in 30 international currencies through our worldwide operations. We have established a foreign exchange risk management program, utilizing forward exchange contracts with one Ã'scal-month duration to oÃ...set various non-functional currency exposures. Under this program, increases or...

  • Page 59
    ... Jun. 30, 2000 (In thousands, except net income (loss) per share; unaudited) Net revenues Gross margin Amortization of goodwill Acquired in-process research and development Restructuring, site closures and other expenses Income, net of expense, from sale of technologies and product lines Net...

  • Page 60
    ...1998 Employee Stock Purchase Plan contains an ""evergreen'' provision whereby the number of shares available for issuance increases automatically on January 1 of each year (beginning in 2000) by 1% of our outstanding shares of common stock on each immediately preceding December 31 during the term of...

  • Page 61
    ... the committee, in a number of other forms of consideration, including cancellation of indebtedness, fully paid shares of Symantec common stock, delivery of a promissory note, waiver of compensation due or accrued to an optionee for services rendered, through a ""same day sale,'' through a ""margin...

  • Page 62
    ...Granted to John Thompson, CEO of Symantec In accordance with the employment agreement dated April 11, 1999 between Mr. Thompson and us, the board of directors approved the issuance of a non-qualiÃ'ed stock option to acquire 400,000 shares of common stock to Mr. Thompson. The option exercise price is...

  • Page 63
    ... 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. Number of Shares Subject to the Plan. A total of 800,000 shares of common stock...

  • Page 64
    ... be sent to: Helyn Corcos Investor Relations Symantec Corporation 20330 Stevens Creek Boulevard Cupertino, California 95014 408-517-8324 (a) The following documents are Ã'led as part of this report: Page Number 1. Consolidated Financial Statements Report of Ernst & Young LLP, Independent Auditors...

  • Page 65
    ... of Publicity 10.03** Symantec Corporation Section 401(k) Plan, Summary Plan Description, amended as of August 1, 2000 10.04** Form of Stock Option Agreement and Form of Stock Option Exercise Request, as currently in eÃ...ect, under the Registrant's 1988 Employees Stock Option Plan S-4 33-35385...

  • Page 66
    ...Arrangement terms and conditions between the Company and Greg Myers 10.16** Employment Agreement between Symantec Corporation and John W. Thompson 10.17** Symantec Corporation Restricted Stock Purchase Agreement with John W. Thompson, dated April 14, 1999 10.18** Symantec Corporation Stock Option...

  • Page 67
    ... Plan-grades 15, 16, 18 & 20 10.34** Promissory Note issued by Mansour Safai in favor of Symantec Corporation 10.35** Promissory Note issued by John W. Thompson in favor of Symantec Corporation 10.36 Amended and Restated Participation Agreement, dated as of February 9, 1999 by and among Symantec...

  • Page 68
    ...Limited, San Francisco Branch Amended and Restated Pledge Agreement, dated as of February 2, 1999, made by Symantec Corporation and Delrina Corporation, in favor of Sumitomo Bank, Limited, Los Angeles Branch for the beneÃ't of the Lenders, and Donaldson, Lufkin, Jenrette Securities Corporations, as...

  • Page 69
    ... Agency Agreement, dated as of June 6, 2001, between The Symantec 2001 Trust and Symantec Corporation OÇce building lease, dated as of April 10, 1991, between the Registrant and Maguire Thomas Partners Colorado Place regarding property located in Santa Monica, California Fifth Amendment...

  • Page 70
    ... and Symantec Corporation regarding property located in Maidenhead, United Kingdom 10-Q Assignment of Copyright and Other Intellectual Property Rights S-4 Software License Agreement, dated as of September 27, 1998, between Symantec Corporation and Intel Corporation 8-K Software License Agreement...

  • Page 71
    ... Consolidated Statements of Stockholders' Equity for the years ended March 31, 2002, 2001 and 2000 Consolidated Statements of Cash Flows for the years ended March 31, 2002, 2001 and 2000 Summary of SigniÃ'cant Accounting Policies Notes to Consolidated Financial Statements 50 51 52 53 54 55 61...

  • Page 72
    ... Ã'nancial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the Ã'nancial statements. An audit also includes assessing the accounting principles used and signiÃ'cant estimates made by management, as well as...

  • Page 73
    SYMANTEC CORPORATION CONSOLIDATED BALANCE SHEETS March 31, 2002 2001 (In thousands, except par value) ASSETS Current assets: Cash, cash equivalents and short-term investments 1,375,051 Trade accounts receivable, net 89,223 Inventories 7,463 Deferred income taxes 68,621 Other 22,461 Total ...

  • Page 74
    SYMANTEC CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS 2002 Year Ended March 31, 2001 2000 (In thousands, except net income (loss) per share) Net revenues 1,071,438 Cost of revenues 194,610 Gross margin Operating expenses: Research and development Sales and marketing General and ...

  • Page 75
    ...-for-sale securities Translation adjustment Total comprehensive income Issued common stock: 8,676 shares under stock plans ÏÏÏÏ 200 shares of restricted stock Amortization of unearned compensation Agreement with former CEO Repurchased 2,000 shares of common stock Income tax beneÃ't related...

  • Page 76
    ... 20/20 Software Proceeds from divestiture of Visual Cafe π product line Purchase of L-3 Network Security's operations Purchase of URLabs Purchase of IBM's antivirus business Purchase of Quarterdeck Cash acquired in business purchases Purchases of marketable securities Proceeds from sales of...

  • Page 77
    ... CORPORATION SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Business Symantec provides a broad range of content and network security software and appliance solutions to enterprises, individuals and service providers. We are a leading provider of client, gateway and server security solutions for virus...

  • Page 78
    ... education services revenue as services are performed. We recognize managed security services revenue ratably over the period that such contracted services are provided. In arrangements that include software licenses and maintenance and/or professional services and packaged products with content...

  • Page 79
    ... of revenues or income (net of expense) from sale of technologies and product lines. EÃ...ective April 1, 2002, the net balance of workforce-in-place will be reclassiÃ'ed to goodwill and will no longer be amortized but will be subject to an annual impairment test (see Recent Accounting Pronouncements...

  • Page 80
    ... assets will be assessed according to new accounting guidelines (see Recent Accounting Pronouncements). Income Taxes Income taxes are computed in accordance with Statement of Financial Accounting Standards, or SFAS, No. 109, Accounting for Income Taxes. Stock-Based Compensation We account for stock...

  • Page 81
    ...our strategy regarding these lawsuits; ‚ deductible amounts under our insurance policies; and ‚ past experiences with similar lawsuits. Recent Accounting Pronouncements In July 2001, the FASB issued SFAS No. 141, Business Combinations, and No. 142, Goodwill and Other Intangible Assets, eÃ...ective...

  • Page 82
    ... operating leases could be as early as the beginning of our Ã'scal year 2004, and sooner on any new leases entered into after the new rules' eÃ...ective date which utilize special purpose entities or equivalent structures. ReclassiÃ'cations Certain previously reported amounts have been reclassiÃ'ed...

  • Page 83
    ... hardware and software 260,170 OÇce furniture and equipment 49,887 Buildings and land 41,671 Leasehold improvements 35,265 Less: accumulated depreciation and amortization 386,993 (200,688) $ 186,305 Acquired product rights, net: Purchased product rights, technologies and workforce-in-place...

  • Page 84
    ...11, 2001, we acquired the enterprise security management division of Foster-Melliar Limited, an IT services company located in Johannesburg, South Africa. We paid approximately $1.5 million for these assets and the IT services business. The transaction was accounted for as a purchase and we recorded...

  • Page 85
    ..., oÃ...set by $900,000 in related income tax liabilities, which accounted for the $7.5 million guaranteed purchase price. In addition, the agreement required contingent payments that were based on targeted future sales of certain of our products from July 1, 2000 to June 30, 2001, with a cumulative...

  • Page 86
    SYMANTEC CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued) Acquisition of L-3 Network Security On March 9, 2000, we acquired the operations of L-3 Network Security for a one-time cash payment of approximately $20.1 million. The transaction was accounted for as a purchase. In ...

  • Page 87
    .... We also entered into an exclusive license and option agreement with PassGo whereby they will license our web access management technology products. In consideration for the license, PassGo is required to pay us quarterly royalties based on their net revenue starting at 30% and declining to...

  • Page 88
    ... Corporation, previously SalesLogix, for a period of four years. In addition, we sold the inventory and Ã'xed assets related to the ACT! product line to Interact. In consideration for the license and assets, Interact transferred to us 623,247 shares of its unregistered common stock. These shares...

  • Page 89
    ... sale of technologies and product lines were as follows: 2002 Year Ended March 31, 2001 2000 (In thousands) Royalties from Interact 15,500 $19,250 Gain on divestiture of: Web access management product line 392 Ì Visual Cafe π product line ACT! product line Amortization of developed technology...

  • Page 90
    .... As of March 31, 2002, we held no publicly traded equity securities. As of March 31, 2001, equity securities of approximately $7.5 million consisted of 623,247 shares of Interact. During the March 2001 quarter, Interact entered into a plan to merge with The Sage Group plc and we recorded a loss...

  • Page 91
    ... Interest will be paid semi-annually, commencing May 1, 2002. Debt issuance costs related to the 3% convertible subordinated debentures will be amortized on a straight-line basis through November 1, 2006. We have reserved approximately 17.6 million shares of common stock for issuance upon conversion...

  • Page 92
    ... based on the three-month LIBOR in eÃ...ect at the beginning of each Ã'scal quarter plus a speciÃ'ed margin. We have the right to acquire the related properties at any time during the seven-year lease period ending February 1, 2006. If, at the end of the lease term we do not renew the lease, purchase...

  • Page 93
    ... approved a two-for-one stock split of Symantec's common stock eÃ...ected as a stock dividend, which became eÃ...ective as of January 31, 2002 to stockholders of record on January 17, 2002. Based on the number of shares outstanding on January 17, 2002, the stock dividend resulted in the issuance...

  • Page 94
    ... employees' eligible compensation. Our contributions under the plan were approximately $4.1 million, $3.0 million and $2.4 million during Ã'scal 2002, 2001 and 2000. Restricted Shares During Ã'scal 1999, we issued 200,000 restricted shares to our current CEO for a purchase price of $0.005 per share...

  • Page 95
    ... basis over the vesting term. As of March 31, 2002, there were 200,000 shares fully vested and outstanding. Employee Stock Purchase Plans In September 1998, our stockholders approved the 1998 Employee Stock Purchase Plan and reserved a total of 1.0 million shares of common stock for issuance. The...

  • Page 96
    ... of Directors reserved 1.0 million shares of common stock for issuance under the plan. As of March 31, 2002, approximately 417,000 options were outstanding under this plan. In accordance with the employment agreement dated April 11, 1999 between our current CEO and Symantec, the Board of Directors...

  • Page 97
    SYMANTEC CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued) Stock option activity was as follows: Weighted Average Exercise Number Price of Shares Per Share (In thousands, except weighted average exercise price per share) Outstanding as of March 31, 1999 Granted Exercised ...

  • Page 98
    ... Ã'scal 2002, 2001 and 2000 reported below has been estimated at the date of grant using the BlackScholes option-pricing model assuming no expected dividends and the following weighted average assumptions: Employee Stock Options 2002 2001 2000 Employee Stock Purchase Plans 2002 2001 2000 Expected...

  • Page 99
    ...1998 Employee Stock Purchase Plan contains an ""evergreen'' provision whereby the number of shares available for issuance increases automatically on January 1 of each year (beginning in 2000) by 1% of our outstanding shares of common stock on each immediately preceding December 31 during the term of...

  • Page 100
    SYMANTEC CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS ÃŒ (Continued) abandoned Ã'xed asset and leasehold improvement write-oÃ...s. As of March 31, 2002, we had an accrual of approximately $6.8 million outstanding related to rent and related exit costs of the facilities and related abandoned ...

  • Page 101
    ... we reduced our Internet Tools business unit's workforce and reduced our sales workforce. There were 48 employees in the Internet Tools business unit aÃ...ected, resulting in a charge of approximately $1.8 million for severance, related beneÃ'ts and outplacement services. The sales workforce reduction...

  • Page 102
    SYMANTEC CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS ÃŒ (Continued) after the identiÃ'ed employees had their severance packages communicated to them. Additionally, we accrued estimated costs associated with outplacement services to be provided to terminating employees, as these costs have...

  • Page 103
    ... tax assets: Tax credit carryforwards 1,618 Net operating loss carryforwards of acquired companies 25,029 Other accruals not currently tax deductible 11,652 Accrued compensation and beneÃ'ts 9,299 Deferred revenue 9,736 Sales incentive programs 5,488 Non-deductible accrual for product returns...

  • Page 104
    ... court ordered the matter dismissed on January 9, 2002. On December 23, 1999, Altiris Inc. Ã'led a lawsuit against us in the United States District Court, District of Utah, alleging that unspeciÃ'ed Symantec products including Norton Ghost Enterprise Edition, infringed a patent owned by Altiris. The...

  • Page 105
    ... these lawsuits. Note 17. Segment Information Our operating segments are signiÃ'cant strategic business units that oÃ...er diÃ...erent products and services, distinguished by customer needs. We have Ã've operating segments: Enterprise Security, Enterprise Administration, Consumer Products, Services and...

  • Page 106
    ... STATEMENTS ÃŒ (Continued) The Enterprise Security segment focuses on providing Internet security technology, global response and services necessary for organizations to manage their information security needs. The Enterprise Administration segment oÃ...ers products that enable companies to be more...

  • Page 107
    ... SigniÃ'cant Customers $905,379 5,779 5,602 4,043 1,243 9,200 $931,246 $159,392 805 4,905 3,965 1,851 8,789 $179,707 The following distributors covered all segments and accounted for more than 10% of net revenues during Ã'scal 2002, 2001 and 2000: Year Ended March 31, 2002 2001 2000 Ingram Micro...

  • Page 108
    ..., thereunto duly authorized. SYMANTEC CORPORATION (Registrant) By JOHN W. THOMPSON (John W. Thompson, Chairman and Chief Executive OÇcer) /s/ Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the...

  • Page 109
    ... II SYMANTEC CORPORATION VALUATION AND QUALIFYING ACCOUNTS Balance at Beginning of Period Charged to Costs and Expenses* Write-oÃ...s (In thousands) Balance at End of Period Allowance for Year ended Year ended Year ended doubtful accounts: March 31, 2000 March 31, 2001 March 31, 2002 $4,946...