Symantec 2002 Annual Report Download - page 47

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 oÅerings.
Restructuring, Site Closures and Other Expenses
Restructuring, site closures and other expenses were approximately $20.4 million, $3.7 million and
$9.0 million during Ñscal 2002, 2001 and 2000, respectively. During Ñscal 2002, we incurred expenses related
to consolidating smaller sites into a larger facility in Newport News, Virginia, consolidating most of our United
Kingdom facilities to Maidenhead, UK, consolidating our European support functions by moving our Leiden,
Netherlands facility to Dublin, Ireland and relocating our North American support group to SpringÑeld,
Oregon. As a result, we recorded approximately $17.8 million for exit costs, including $12.8 million in rent and
related exit costs remaining on the abandoned facilities and $5.0 million in related abandoned Ñxed asset and
leasehold improvement write-oÅs. In addition, we recorded approximately $2.6 million for costs of severance,
related beneÑts and outplacement services, as we reorganized various operating functions, including former
AXENT operations, and reduced our workforce by 87 employees. During the June 2002 quarter, we will
record costs of severance, related beneÑts and outplacement services, as a result of the relocation of our
Leiden, Netherlands operations to Dublin, Ireland.
During Ñscal 2001, we reorganized various operating functions, including a portion of our operations in
Toronto. We reduced our workforce by 60 employees and ten members of our senior management, and as a
result, we recorded approximately $3.7 million for costs of severance, related beneÑts, outplacement services
and abandonment of certain equipment.
During Ñscal 2000, we reduced our operations and realigned our business units, including operations in
Melville and Toronto and our Internet Tools business unit. We reduced our workforce by 154 employees and
Ñve members of our senior management, and as a result, we recorded approximately $9.7 million for
severance, related beneÑts, outplacement services and abandonment of certain facilities and equipment.
For further discussion on restructuring, site closures and other expenses, see Note 13 of Notes to
Consolidated Financial Statements of this Form 10-K.
Litigation Judgment
During the March 2002 quarter, we accrued litigation expenses of approximately $3.1 million for post-
judgment interest and other costs related to a judgment by a Canadian court on a decade-old copyright action
assumed by us as a result of our acquisition of Delrina Corporation. For further discussion on our current
litigation, see Note 16 of Notes to Consolidated Financial Statements of this Form 10-K.
Interest Income, Interest Expense and Other Income (Expense)
Interest income was approximately $31.7 million, $33.3 million and $13.4 million during Ñscal 2002, 2001
and 2000, respectively. Although interest income was relatively Öat during Ñscal 2002 and Ñscal 2001, average
cash balances were higher during Ñscal 2002 as compared to Ñscal 2001, which was oÅset by a decrease in
average interest rates. Interest income increased signiÑcantly during Ñscal 2001 as compared to Ñscal 2000 due
to higher average cash balances during Ñscal 2001.
Interest expense was approximately $9.2 million during Ñscal 2002, nearly all of which was related to the
issuance of $600.0 million of 3% convertible subordinated debentures in October 2001. Interest expense was
not signiÑcant during Ñscal 2001 and 2000.
Other expense, net of approximately $627,000 during Ñscal 2002 was primarily comprised of net losses
from non-functional currency transactions. Other expense, net was approximately $22.5 million during Ñscal
2001 and consisted primarily of impairment charges on our equity investments. Other income, net was
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