Symantec 2004 Annual Report Download - page 67

SYMANTEC CORPORATION «65»
50% of our assets, each right will entitle the holder to purchase,
at a price equal to the exercise price of the right, a number of
shares of common stock of such entity having a then-current
value of twice the exercise price.
We may exchange the rights at a ratio of one share of common
stock for each right (other than the Acquiring Person) at any time
after an Acquiring Person acquires 20% or more of our common
stock but before such person acquires 50% or more of our common
stock. We may also redeem the rights at our option at a price
of $0.001 per right at any time before an Acquiring Person has
acquired 20% or more of our common stock. The rights will
expire on August 12, 2008.
Note 12. Employee Benefits
401(k) Plan We maintain a salary deferral 401(k) plan for all of our
domestic employees. This plan allows employees to contribute up
to 20% of their pretax salary up to the maximum dollar limitation
prescribed by the Internal Revenue Code. We match 100% of
the first $500 of employees’ contributions and then 50% of the
employees’ contribution. The maximum employer match in any
given plan year is 3% of the employees’ eligible compensation.
Our contributions under the plan were $7 million, $4 million and
$4 million during fiscal 2004, 2003 and 2002, respectively.
Restricted Shares During fiscal 1999, we issued 400,000 restricted
shares to our current CEO for a purchase price equal to the par
value of the shares at the date of issuance, vesting 50% at each
anniversary date, with the first anniversary date being April 14, 2000.
Unearned compensation equivalent to the market value of the
common stock on the date of grant, less par, was charged to stock-
holders’ equity and was amortized into compensation expense
on a straight-line basis over the vesting term. As of March 31, 2004,
there were 400,000 shares fully vested and outstanding.
STOCK PURCHASE PLANS
2002 Executive Officers’ Stock Purchase Plan In September
2002, our stockholders approved the 2002 Executive Officers’
Stock Purchase Plan and reserved 250,000 shares of common
stock for issuance thereunder, of which none are subject to
adjustment pursuant to changes in capital. The purpose of the
plan is to provide executive officers with a convenient means
to acquire an equity interest in Symantec at fair market value by
applying a portion or all of their respective bonus payments
towards the purchase price. Each executive officer may purchase
up to 10,000 shares in any fiscal year. As of March 31, 2004, no shares
have been issued under the plan and the entire 250,000 shares
remain available for future issuance. Shares reserved for issuance
under this plan have not been adjusted for the stock dividend.
1998 Employee Stock Purchase Plan In September 1998, our
stockholders approved the 1998 Employee Stock Purchase Plan
and reserved 2.0 million shares of common stock for issuance
thereunder. In September 1999, the plan was amended by our
stockholders to increase the shares available for issuance by
3.0 million and to add an “evergreen” provision whereby the
number of shares available for issuance increases automatically
on January 1of each year (beginning in 2000) by 1% of our out-
standing shares of common stock on each immediately preceding
December 31 during the term of the plan, provided that the
aggregate number of shares issued over the term of the plan does
not exceed 32.0 million shares. As of March 31, 2004, 12.7 million
shares remain available for issuance under the plan, including
3.1 million shares added in connection with the “evergreen” provision
on January 1, 2004 but which have not yet been registered.
Subject to certain limitations, our employees may purchase, through
payroll deductions of 2% to 10% of their compensation, shares
of common stock at a price per share that is the lesser of 85% of
the fair market value as of the beginning of the two-year offering
period or the end of the six-month purchase period. Under the
Employee Stock Purchase Plan 1.4 million, 2.2 million and 1.9 million
shares were issued during fiscal 2004, 2003 and 2002, respectively,
representing $23 million, $17 million and $14 million in contributions,
respectively. As of March 31, 2004, a total of 6.6 million shares
had been issued under this plan.
2000 Directors Incentive Plan In September 2000, our stockholders
approved the 2000 Directors Equity Incentive Plan and reserved
25,000 shares of common stock for issuance thereunder, of which
none are subject to adjustment pursuant to changes in capital.
The purpose of this plan is to provide the members of the Board
of Directors with an opportunity to receive common stock for all
or a portion of the retainer payable to each director for serving
as a member. Each director may elect to receive 50% to 100% of
the retainer to be paid in the form of stock. As of March 31, 2004,
a total of 15,000 shares had been issued under this plan and
10,000 shares remained available for future issuance. Shares
reserved for issuance under this plan have not been adjusted
for the stock dividend.
2004 Annual Report