Symantec 2004 Annual Report Download - page 59

SYMANTEC CORPORATION «57»
Note 2. Sales and Marketing Expense Information
Technical Support Costs Technical support costs, included in Sales
and marketing, relate to the cost of providing free post-contract
support and were accrued at the time of product sale. Technical
support costs included in Sales and marketing in the Consolidated
Statements of Operations for fiscal 2004, 2003 and 2002 were
$20 million, $20 million and $16 million, respectively.
Advertising Costs Advertising costs are charged to operations as
incurred. Advertising costs included in Sales and marketing in the
Consolidated Statements of Operations for fiscal 2004, 2003, and
2002 were $128 million, $108 million and $93 million, respectively.
Note 3. Acquisitions and Divestitures
FISCAL YEAR 2004 ACQUISITIONS
During fiscal 2004, we acquired two public and two privately-
held companies for a total of $311 million in cash, including
acquisition-related expense resulting from financial advisory, legal
and accounting services and duplicate sites and severance costs.
Approximately $5 million of acquisition-related expenses remains
as an accrual as of March 31, 2004. We expect that the acquisition
of these emerging technologies will strengthen our competitive
position in the enterprise administration and enterprise security
markets. The results of operations of the acquired companies
have been included in our operations as of the dates of acquisition.
ON Technology Corp. and PowerQuest, Inc. are included in
our Enterprise Administration segment, and SafeWeb, Inc. and
Nexland, Inc. are included in our Enterprise Security segment.
ON Technology On February 13, 2004, we acquired ON Technology,
a global provider of enterprise infrastructure management solutions,
for $109 million in cash, including $7 million of acquisition-related
expenses. We expect the acquisition to strengthen our competitive
position in the enterprise administration market by allowing us to
provide a unified solution that will help customers create a secure
enterprise infrastructure. ON Technology’s software distribution and
configuration management capabilities will be a critical component
to the end-to-end system Symantec is establishing to help customers
build, manage and protect their IT infrastructures.
PowerQuest On December 5, 2003, we acquired PowerQuest, a
global provider of automated deployment and recovery solutions
for corporations and individual users, for $154 million in cash,
including $4 million of acquisition-related expenses. We expect
the acquisition to strengthen our competitive position in the
enterprise administration market by enabling us to deliver solutions
that allow customers to build, manage and protect their IT
infrastructures with end-to-end security management capabilities.
2004 Annual Report
NNotes to Consolidated Financial Statements
Note 1. Consolidated Balance Sheet Information
(In thousands) March 31,
2004 2003
Cash, cash equivalents and short-term investments:
Cash $ 174,389 $ 111,687
Cash equivalents 664,773 182,919
839,162 294,606
Short-term investments 1,571,169 1,411,052
$ 2,410,331 $1,705,658
Trade accounts receivable, net:
Receivables $ 264,826 $ 159,417
Less: allowance for doubtful accounts (5,674) (9,753)
$ 259,152 $ 149,664
Property, equipment and leasehold improvements, net:
Computer hardware and software $ 378,866 $ 306,679
Office furniture and equipment 74,120 65,535
Buildings 148,782 142,915
Land 50,688 29,362
Leasehold improvements 77,040 54,483
729,496 598,974
Less: accumulated depreciation and amortization (351,129) (265,699)
$ 378,367 $ 333,275