Symantec 2007 Annual Report Download - page 89

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SYMANTEC CORPORATION
Notes to Consolidated Financial Statements
Note 1. Consolidated Balance Sheet Information
2007 2006
March 31,
(In thousands)
Trade accounts receivable, net:
Receivables .............................................. $ 687,580 $ 692,571
Less: allowance for doubtful accounts .......................... (8,391) (8,794)
Less: reserve for product returns............................... (12,221) (12,840)
$ 666,968 $ 670,937
Property and equipment, net:
Computer hardware and software .............................. $ 842,691 $ 654,946
Office furniture and equipment ................................ 282,838 149,591
Buildings................................................ 533,319 434,548
Leasehold improvements . ................................... 237,843 190,385
1,896,691 1,429,470
Less: accumulated depreciation and amortization .................. (917,357) (612,072)
979,334 817,398
Land ................................................... 112,906 128,819
$1,092,240 $ 946,217
Note 2. Sales and Marketing Expense
Technical support costs
Technical support costs relate to the cost of providing self-help online services, chat, and email support.
Technical support costs included in Sales and marketing in the Consolidated Statements of Income for fiscal 2007,
2006, and 2005 were $18 million, $24 million, and $21 million, respectively.
Advertising costs
Advertising costs are charged to operations as incurred and include electronic and print advertising, trade
shows, collateral production, and all forms of direct marketing. Certain advertising contracts contain placement fee
arrangements with escalation clauses which are expensed on an estimated average cost basis over the term of the
arrangement. Advertising costs included in Sales and marketing in the Consolidated Statements of Income for fiscal
2007, 2006, and 2005 were $382 million, $253 million, and $172 million, respectively.
Note 3. Acquisitions
Fiscal 2007 acquisitions
On December 1, 2006, we completed our acquisition of Company-i Limited, a UK-based professional services
firm that specialized in addressing key challenges associated with operating and managing a data center in the
financial services industry, for $26 million in cash, including an insignificant amount for acquisition related
expenses. The aggregate purchase price was allocated as follows, based on the currency exchange rate on the date of
acquisition: goodwill, $22 million; other intangible assets, $6 million; net deferred tax liabilities, $2 million; and an
insignificant amount to net tangible assets. Goodwill resulted primarily from our expectation of synergies from the
integration of Company-i’s service offerings with our service offerings. The amount allocated to Other intangible
assets is being amortized to Operating expenses in the Consolidated Statements of Income over its estimated useful
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