Symantec 2007 Annual Report Download - page 55

Europe due to the consolidation and relocation of engineering and development functions. In addition we recorded
an increase to the accrual relating to the fiscal 2002 restructuring plan of $1 million due to the termination of a
sublease agreement for facilities in Eugene, Oregon. Substantially all of the costs had been paid by March 31, 2005.
Integration
In fiscal 2007, we recorded $1 million of integration charges in connection with our April 2007 acquisition of
Altiris. These integration charges consisted of costs incurred for consulting services and other professional fees. We
expect to incur additional integration costs related to Altiris in fiscal 2008. In connection with our acquisition of
Veritas, we recorded integration costs of $16 million in fiscal 2006 and $3 million in fiscal 2005, which consisted
primarily of costs incurred for consulting services and other professional fees.
Patent settlement
On May 12, 2005, we resolved patent litigation matters with Altiris, Inc. by entering into a cross-licensing
agreement that resolved all legal claims between the companies. As part of the settlement, we paid Altiris
$10 million for use of the disputed technology. Under the transaction, we expensed $2 million of patent settlement
costs in the June 2005 quarter that was related to benefits received in and prior to the June 2005 quarter. The
remaining $8 million was recorded as Acquired product rights in the Consolidated Balance Sheets and is being
amortized to Cost of revenues in the Consolidated Statements of Income over the remaining life of the primary
patent, which expires in May 2017. In April 2007, we acquired Altiris. See Note 17 of the Notes to Consolidated
Financial Statements for more information.
Non-operating Income and Expense
2007 2006 2005
Year Ended March 31,
($ in thousands)
Interest income ..................................... $122,043 $108,404 $ 50,195
Interest expense .................................... (27,233) (17,996) (12,323)
Other income (expense), net ........................... 17,070 (1,650) 990
Total ........................................... $111,880 $ 88,758 $ 38,862
Percentage of total net revenues ........................ 2% 2% 2%
Period over period increase ............................ $ 23,122 $ 49,896
26%
*
*
Percentage not meaningful
The increase in Interest income in fiscal 2007 as compared to fiscal 2006 was due primarily to a higher average
investment balance and higher average interest rates realized on our invested cash and available-for-sale securities.
The increase in Interest income in fiscal 2006 as compared to fiscal 2005 was due primarily to a higher average
investment balance, due to the cash acquired through the Veritas acquisition, and higher average interest rates.
Interest expense in fiscal 2007 was due primarily to the interest and amortization of issuance costs related to
our 0.75% and 1.00% Convertible Senior Notes issued in June 2006. In addition, the period includes interest and
accretion related to the 0.25% Convertible Subordinated Notes that we assumed in connection with our acquisition
of Veritas. The 0.25% Veritas Convertible Subordinated Notes were paid in full during August 2006. Interest
expense in fiscal 2006 was due primarily to the Veritas 0.25% Convertible Subordinated Notes. Interest expense in
fiscal 2005 was primarily related to our $600 million 3% convertible subordinated notes issued in October 2001. In
November 2004, substantially all of the outstanding convertible subordinated notes were converted into 70.3 million
shares of our common stock and the remainder was redeemed for cash.
In fiscal 2007, Other income (expense), net includes a gain of $20 million on the sale of our buildings in
Milpitas, California, and Maidenhead, United Kingdom.
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