Symantec 2004 Annual Report Download - page 64

«62»SYMANTEC CORPORATION
2004 Annual Report
On August 6, 2003, we purchased a security technology patent as
part of a settlement in Hilgraeve, Inc. v. Symantec Corporation. As
part of the settlement, we also received licenses to the remaining
patents in Hilgraeve’s portfolio. The total cost of purchasing the
patent and licensing additional patents was $63 million, which was
paid in cash in August 2003. Under the transaction, we recorded
$14 million of patent settlement costs in the June 2003 quarter
that was deemed related to benefits received by us in and prior
to the June 2003 quarter. In addition, we recorded $49 million
for acquired product rights in the September 2003 quarter. The
acquired product rights are being amortized to cost of revenues
over the remaining life of the primary patent, which expires in
June 2011.
On April 17, 2003, we purchased acquired product rights related
to Roxio Inc.’s GoBack computer recovery software business for
$13 million in cash. The acquired product rights will be amortized
to cost of revenues over their estimated useful life of three years.
During fiscal 2004, 2003 and 2002, amortization expense for
acquired product rights was $42 million, $32 million and $32 million,
respectively. Amortization of acquired product rights was included
in Cost of revenues in the Consolidated Statements of Operations,
except for an immaterial amount related to the divested Web
Access Management product line, which was included in Income,
net of expense, from sale of technologies and product lines in the
Statement of Operations. The future annual amortization expense
for acquired product rights, based upon our existing acquired
product rights and their current useful lives, is estimated to be
the following as of March 31, 2004:
2005 $41 million
2006 $27 million
2007 $19 million
2008 $12 million
2009 $8 million
During fiscal 2004, 2003 and 2002, amortization expense for other
intangible assets was $3 million, $3 million and $2 million, respec-
tively. The future annual amortization expense for other intangible
assets, based upon our existing intangible assets and their current
useful lives, is estimated to be the following as of March 31, 2004:
2005 $3 million
2006 $2 million
2007 $2 million
2008 $1 million
2009 $1 million
Note 5. Investments
Cash Equivalents and Short-term Investments The estimated fair value of the cash equivalents and short-term investments
consisted of the following:
(In thousands) March 31,
2004 2003
Corporate securities $ 1,388,382 $ 688,805
Taxable auction rate securities 328,400 258,250
Money market funds 149,269 151,307
Asset backed securities –176,860
Corporate bonds 95,201 63,448
United States government and government-sponsored securities 194,633 218,082
Bank securities and deposits 80,057 37,219
Total available-for-sale and trading investments 2,235,942 1,593,971
Less: amounts classified as cash equivalents (664,773) (182,919)
$ 1,571,169 $1,411,052
The estimated fair value of cash equivalents and short-term investments by contractual maturity as of March 31, 2004 was as follows:
(In thousands)
Due in one year or less $1,773,932
Due after one year and through 3 years 462,010
$2,235,942