Symantec 2004 Annual Report Download - page 71

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SYMANTEC CORPORATION «69»
Fiscal 2002 During fiscal 2002, we recorded costs associated
with the excess facilities and fixed assets associated with relocating
certain sites in the United States and Europe. We moved our
operations in Newport News, Virginia to a larger facility and we
relocated our North American support group from Eugene,
Oregon to an expanded facility in Springfield, Oregon. In addition,
we consolidated our European support functions by relocating
our Leiden, Netherlands operations to Dublin, Ireland and
consolidating most of our United Kingdom facilities to one
facility in Maidenhead, UK.
During fiscal 2002, we also recorded costs of severance, related
benefits and outplacement services, as we reorganized and
consolidated various operating functions. As a result, we termi-
nated 87 employees. The fiscal 2002 restructuring provision was
subsequently adjusted in fiscal 2003, as actual costs were
higher/(lower) than anticipated.
2004 Annual Report
The Company anticipates that the remaining restructuring reserve balance related to our United Kingdom facilities will be paid by the
end of fiscal 2006.
The following table sets forth an analysis of the components of the fiscal 2003 restructuring plans, the provision adjustments that
followed, and payments made against the reserve as of March 31, 2004.
Cash/ Original Amount Amount Balance
(In thousands) Non-cash Charge Paid/Used Adjusted at 3/31/04
Employee severance and outplacement Cash $ 2,639 $ (2,585) $ (54) $ –
Excess facilities and fixed assets Cash/non-cash 17,789 (15,668) 423 2,544
Total restructuring, site closures and other $20,428 $(18,253) $ 369 $2,544
Note 14. Income Taxes
The components of the provision for income taxes were as follows:
(In thousands) Year Ended March 31,
2004 2003 2002
Current:
Federal $ 60,528 $ 58,732 $24,508
State 18,084 15,045 9,543
International 65,810 45,809 26,045
144,422 119,586 60,096
Deferred:
Federal 24,248 (620) 13,802
State 4,401 (2,465) 1,512
International (1,468) (1,308) (1,761)
27,181 (4,393) 13,553
$171,603 $115,193 $73,649
The difference between our effective income tax rate and the federal statutory income tax rate as a percentage of income before income
taxes was as follows:
(In thousands) Year Ended March 31,
2004 2003 2002
Federal statutory rate 35.0% 35.0% 35.0%
State taxes, net of federal benefit 2.6 2.1 15.8
Non-deductible goodwill amortization ––148.5
Foreign earnings taxed at less than the federal rate (7.0) (5.7) (30.8)
Research tax credits –– (2.2)
Benefit of exempt foreign sales income ––(2.0)
Other, net 1.0 0.3 (2.4)
31.6% 31.7% 161.9%