Symantec 2004 Annual Report Download - page 35

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SYMANTEC CORPORATION «33»
The increase in amortization of other intangibles from acquisitions
in fiscal 2004 as compared to fiscal 2003 was primarily related
to the amortization of other intangible assets acquired with the
purchase of ON Technology in February 2004, PowerQuest in
December 2003 and Nexland in July 2003. This increase was offset
by certain other intangibles being fully amortized during fiscal 2004.
The increase in amortization of other intangibles from acquisitions
in fiscal 2003 as compared to fiscal 2002 was primarily related to
the amortization of other intangibles acquired with the purchase
of Recourse and SecurityFocus in August 2002.
2004 Annual Report
The increase in sales and marketing expenses in fiscal 2004 as
compared to fiscal 2003 was due primarily to increases in head-
count and related compensation and in overhead costs due to
the growth of the company, including business acquisitions during
fiscal 2004. In addition, we spent more on outside services, adver-
tising and promotion activities during fiscal 2004, as compared
to fiscal 2003, as our variable marketing expenses have increased
in connection with our growth in revenue. The increase in sales
and marketing expenses in fiscal 2003 as compared to fiscal 2002
was primarily related to increases in headcount and related
compensation and in overhead costs due to the growth of the
company during fiscal 2003, including business acquisitions during
fiscal 2003. In addition, we spent more on advertising and promotion
expenses in fiscal 2003 as compared to fiscal 2002.
SALES AND MARKETING EXPENSES
Year Ended March 31, % Change % Change
Fiscal 2003 Fiscal 2002
($ in thousands) 2004 2003 2002 to 2004 to 2003
Expenses $660,573 $525,029 $425,951 26% 23%
Percentage of total net revenues 35% 37% 40%
GENERAL AND ADMINISTRATIVE EXPENSES
Year Ended March 31, % Change % Change
Fiscal 2003 Fiscal 2002
($ in thousands) 2004 2003 2002 to 2004 to 2003
Expenses $94,645 $74,442 $55,131 27% 35%
Percentage of total net revenues 5% 5% 5%
The increases in general and administrative expenses in fiscal 2004
as compared to fiscal 2003, and fiscal 2003 as compared to fiscal
2002, were due primarily to increases in headcount and related
compensation. The increased headcount was the direct result of the
growth of the Company, including business acquisitions completed
in fiscal 2004 and fiscal 2003.
AMORTIZATION OF GOODWILL
During fiscal 2002, we recorded $197 million of amortization of
goodwill. In accordance with SFAS No. 142, the carrying values
of goodwill and intangible assets deemed to have indefinite lives
are no longer amortized as of April 1, 2002. Therefore, there was
no corresponding expense in fiscal 2004 and 2003.
Goodwill is tested for impairment on an annual basis. We
completed our annual goodwill impairment required by SFAS
No. 142 during the March 2004 quarter and determined that
there was no impairment of goodwill. We will continue to test
for impairment during the fourth quarter of each year, or earlier
if indicators of impairment exist.
AMORTIZATION OF OTHER INTANGIBLES FROM ACQUISITIONS
Year Ended March 31, % Change % Change
Fiscal 2003 Fiscal 2002
($ in thousands) 2004 2003 2002 to 2004 to 2003
Expenses $2,954 $2,787 $2,144 6% 30%
Percentage of total net revenues ***
* Percentage not meaningful