Symantec 2004 Annual Report Download - page 27

Download and view the complete annual report

Please find page 27 of the 2004 Symantec annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 80

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80

SYMANTEC CORPORATION «25»
NORTH AMERICA
In addition to the above properties, we lease 25 properties in North
America (principally in the United States) for which the square
footage is individually insignificant, but which total 195,000 square
feet in the aggregate. Of the properties we own and lease in North
America, we are attempting to sublease facilities of approximately
167,000 square feet while facilities of approximately 248,000 square
feet are subleased to third parties. We are currently building a
facility in Culver City, which we expect to occupy in 2007. In addition,
with the acquisition of ON Technology, we expect to consolidate
our Waltham, Massachusetts site and the site acquired through
ON Technology into one main site. We expect this to be finalized
during fiscal 2005.
In March 2003, we terminated our operating lease obligations
for four facilities located in Springfield, Oregon, Newport News,
Virginia and two in Cupertino, California by purchasing the land
and buildings for $124 million.
INTERNATIONAL
In addition to the above properties, we lease 58 properties outside
of North America (principally in Europe) for which the square
footage is individually insignificant, but which total 364,000 square
feet in the aggregate. Of the properties we own and lease in EMEA,
we are attempting to sublease facilities of approximately 32,000
square feet while facilities of approximately 16,000 square feet are
subleased to third parties.
We believe that our existing facilities are adequate for current
needs and that the productive capacity in such facilities is
substantially being utilized.
Statement Regarding Use of Non-GAAP
Financial Measures
In addition to reporting financial results in accordance with
generally accepted accounting principles, or GAAP, Symantec
reports non-GAAP financial results. Non-GAAP gross margin,
operating expenses, operating income, net income and earnings
per share exclude acquisition related charges, such as amortization
of other intangibles and in-process research and development,
and certain other identified charges, such as restructuring and
patent settlement, as well as the tax effect of these items,
where applicable. Symantec’s management believes these non-
GAAP measures are useful to investors because they provide
supplemental information that facilitates comparisons to prior
periods. Management uses these non-GAAP measures to
evaluate its financial results, develop budgets and manage
expenditures. The method Symantec uses to produce non-
GAAP results is not computed according to GAAP, is likely to
differ from the methods used by other companies and should
not be regarded as a replacement for corresponding GAAP
measures. Investors are encouraged to review the reconciliation
of these non-GAAP financial measures to the comparable GAAP
results, which can be found on the investor relations Web site
at www.symantec.com/invest.
2004 Annual Report