Symantec 2008 Annual Report Download

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2008 Annual Report

Table of contents

  • Page 1
    2008 Annual Report

  • Page 2

  • Page 3
    ... Symantec's products and services to both new and existing customers. In addition, important adjustments made in our sales and marketing programs, as well as improved execution, fueled more than 1,500 large deals during the year. We fortified our position at the endpoint with the addition of Altiris...

  • Page 4
    ... encryption products. Both DLP and endpoint encryption are key components in helping customers protect valuable information that resides on laptops and desktops. We see excellent opportunities to broaden the distribution of our DLP and encryption products, particularly in international markets...

  • Page 5
    ... new Software-as-a-Service (SaaS) business designed to provide small- and medium-sized customers with a suite of online data protection and security solutions. Symantec Online Backup provides data protection services for servers, desktops and laptops online, while Symantec Online Storage for Backup...

  • Page 6
    ... results. I also extend our gratitude to our partners and customers for their loyalty to Symantec. Finally, I thank our stockholders for their support as Symantec continues to grow and evolve in the global marketplace. Sincerely, JOHN W. THOMPSON Chairman of the Board and Chief Executive Officer 4

  • Page 7
    ... ($ in millions, except per share amounts) Fiscal Year 2008 2007 Revenue GAAP Revenue Deferred revenue related to acquisitions Non-GAAP Revenue Gross Profit GAAP Gross Profit Amortization of acquired product rights Deferred revenue related to acquisitions Stock-based compensation Gross profit...

  • Page 8
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  • Page 9
    ... Investor Services, by email through their website at www.computershare.com/contactus or by phone at (877) 282-1168 (within the U.S. and Canada) or (781) 575-2879 (outside the U.S. and Canada). Sincerely yours, JOHN W. THOMPSON Chairman of the Board of Directors and Chief Executive Officer

  • Page 10
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  • Page 11
    ...to view this stockholder list, please contact Investor Relations at (408) 517-8324. BY ORDER OF THE BOARD OF DIRECTORS ARTHUR F. COURVILLE Executive Vice President, General Counsel and Secretary Cupertino, California July 28, 2008 Every stockholder vote is important. To assure that your shares are...

  • Page 12
    ... report. The Notice of Internet Availability also instructs you on how to access your proxy card to vote through the Internet or by telephone. This new process is designed to expedite stockholders' receipt of proxy materials, lower the cost of the annual meeting, and help conserve natural resources...

  • Page 13
    ... EMPLOYEE STOCK PURCHASE PLAN ...Summary of our 2008 Employee Stock Purchase Plan ...New Plan Benefits ...U.S. Federal Income Tax Consequences ...Accounting Treatment ...PROPOSAL NO. 4 APPROVAL OF THE MATERIAL TERMS OF THE AMENDED AND RESTATED SYMANTEC SENIOR EXECUTIVE INCENTIVE PLAN ...Background...

  • Page 14
    ...Committee Report ...Summary of Compensation ...Summary Compensation Table for Fiscal 2008 ...Grants of Plan-Based Awards in Fiscal 2008 ...Outstanding Equity Awards at Fiscal Year-End 2008 ...Option Exercises and Stock Vested in Fiscal 2008 ...Potential Payments Upon Termination or Change-In-Control...

  • Page 15
    ...management will report on the performance of Symantec and respond to questions from stockholders. What proposals are scheduled to be voted on at the meeting? There are five proposals scheduled for a vote. The proposals are: • Proposal No. 1: To elect ten directors to the Board, each to hold office...

  • Page 16
    ...vote over the Internet or by telephone, or if you received a paper proxy material by mail, by filling out and returning the proxy card. Beneficial Owner: Shares Registered in the Name of a Broker or Nominee If on July 24, 2008, your shares were held in an account with a brokerage firm, bank or other...

  • Page 17
    ... materials, Symantec and its agents may solicit proxies by mail, electronic mail, telephone, facsimile, by other similar means, or in person. Our directors, officers, and other employees, without additional compensation, may also solicit proxies personally or in writing, by telephone, e-mail, or...

  • Page 18
    ... regarding how to: • view our proxy materials for the annual meeting over the Internet; and • instruct us to send our future proxy materials to you electronically by email. Choosing to receive your future proxy materials by email will save us the cost of printing and mailing documents to you and...

  • Page 19
    ... securities listed on the NASDAQ Global Select Market, the NASDAQ Stock Market ("NASDAQ") requires that a majority of the members of our Board be independent, as defined under NASDAQ's Marketplace Rules. Currently, each member of our Board, other than our Chief Executive Officer, John W. Thompson...

  • Page 20
    ..., including our principal financial officer and principal accounting officer. Our Code of Conduct and Code of Ethics for Chief Executive Officer and Senior Financial Officers are posted on the Investor Relations section of our website, which is located at www.symantec.com/invest, by clicking on...

  • Page 21
    ... SEC disclosure requirement and does not impose any additional duties, obligations or liability on any person so designated than those generally imposed on members of the Audit Committee and the Board. Number of Meetings in Fiscal Year 2008: Independence: Functions: Compensation Committee Members...

  • Page 22
    ... for our Chief Executive Officer; To review and approve all compensation arrangements for our other executive officers; To review the overall strategy for employee compensation; To administer our equity incentive plans; To review and recommend to the Board compensation for nonemployee members of the...

  • Page 23
    ... and address of the candidate; • the number of shares of Symantec common stock beneficially owned by the candidate; • a certification that the candidate consents to being named in the proxy statement and intends to serve on the Board if elected; and • biographical information, including work...

  • Page 24
    ... to accounting, internal controls or auditing matters will be handled in accordance with Symantec's policy regarding accounting complaints and concerns. Attendance of Board Members at Annual Meetings The Board does not have a formal policy with respect to Board member attendance at our annual...

  • Page 25
    .... Mr. Thompson joined Symantec after 28 years at International Business Machines Corporation, a global information technology company, where he held senior executive positions in sales, marketing and software development. In his last assignment, he was general manager of IBM Americas and a member of...

  • Page 26
    ... application and service infrastructure software provider, where he served as Chairman of the Board from the company's inception in 1995 until August 2002, Chief Strategy Officer from October 2001 to August 2002, and Chief Executive Officer from 1995 to October 2001. Mr. Coleman is a member...

  • Page 27
    ... as Chief Executive Officer of Virgin Mobile USA, a cellular phone service provider, since 2001, and also served as a member of the board of directors of Virgin Mobile USA since 2001. From 2000 to 2001, Mr. Schulman was President and Chief Executive Officer of priceline.com Incorporated, an online...

  • Page 28
    ...our equity compensation awards, refer to Note 15 of the financial statements in our Form 10-K for the year ended March 28, 2008, as filed with the SEC. (10) In fiscal year 2008, there were no stock option grants to any person who served as a non-employee director. The outstanding stock option awards...

  • Page 29
    ... serving in the capacity for which he or she was compensated. Annual Equity Awards. Each non-employee member of the Board receives an annual award of restricted stock units having a fair market value on the grant date equal to $180,000, with this value prorated for new nonemployee directors from the...

  • Page 30
    ...2004 Equity Incentive Plan and the 2008 Employee Stock Purchase Plan under Proposal Nos. 2 and 3. (2) Excludes outstanding options and restricted stock unit awards to acquire 26,770,874 shares as of March 28, 2008 that were assumed as part of the Veritas acquisition. Excludes outstanding options and...

  • Page 31
    ...above with respect to Symantec's 2001 NonQualified Equity Incentive Plan, except that the 1999 Acquisition Plan does not contain a provision for the expiration of employees' options upon a termination for cause. Term and Amendment of the Plan. The plan was terminated by the Board on October 18, 2005...

  • Page 32
    ...2002 Executive Officer's Stock Purchase Plan. The 2004 Plan is the only plan under which we currently have authority to grant options or stock awards. One of the important factors that we consider in administering our equity compensation programs is our "burn rate," meaning the number of shares that...

  • Page 33
    ... 2004 Plan, (b) the limits on the number of shares that may be issued to participants in a calendar year, (c) the exercise price and number of shares subject to outstanding options and (d) the purchase price and number of shares subject to other outstanding awards, including restricted stock awards...

  • Page 34
    ...with the opportunity to share in any appreciation in the value of our stock that their efforts help bring about. The 2004 Plan is an essential component of the total compensation package offered to employees, reflecting the importance that Symantec places on motivating and rewarding superior results...

  • Page 35
    ... date as reported in The Wall Street Journal. • Method of Exercise: The exercise price of options and the purchase price, if any, of other stock awards may be paid by cash, check, wire transfer, cancellation of indebtedness, surrender of shares previously held, broker assisted same-day sales...

  • Page 36
    ... 2004 Plan, (b) the limits on the number of shares that may be issued to participants in a calendar year, (c) the exercise price and number of shares subject to outstanding options and (d) the purchase price and number of shares subject to other outstanding awards, including restricted stock awards...

  • Page 37
    ... without limitation our Board may amend the non-employee director formula restricted stock unit grants; provided, that our Board may not, without the approval of the stockholders of Symantec, amend the 2004 Plan to increase the number of shares that may be issued under the 2004 Plan, change the...

  • Page 38
    ... and cannot be determined at this time. Further, since the number of shares subject to the restricted stock units to be automatically granted to non-employee directors under the 2004 Plan depends on the fair market value of our common stock at future dates, it is not possible to determine the exact...

  • Page 39
    ...July 4, 2008, the following named executive officers had received grants of options and restricted stock units relating to the number of the shares listed after his or her name during the fiscal year ending April 3, 2009: John W. Thompson - 115,000 RSUs and 380,000 options; Enrique T. Salem - 50,000...

  • Page 40
    ... affiliates with the ability to acquire shares of our common stock at a discount to the purchase date fair market value through accumulated payroll deductions. This is a long-standing benefit program and we believe it is important in helping us retain employees and helping align the interests of our...

  • Page 41
    ... used to purchase shares under the New ESPP. Eligible compensation is defined in the New ESPP as all compensation including base salary, wages, commissions, overtime, shift premiums and bonuses, plus draws against commissions but excluding amounts related to Company equity compensation, except that...

  • Page 42
    ... to be 85% of the fair market value of a share of our common stock on the last trading day of the Offering Period (the "Purchase Date"). For purposes of the New ESPP, "fair market value" means the closing sale price of our common stock on the Purchase Date, as reported in The Wall Street Journal or...

  • Page 43
    ... the New ESPP will depend on the fair market value of our common stock at various future dates, it is not possible to determine the benefits that will be received by employees if the New ESPP is approved by our stockholders. During fiscal year 2008, three Named Executive Officers participated in the...

  • Page 44
    ... at the time of the exercise of an option under a Non-Statutory Plan, an employee subject to tax under the Code would recognize ordinary income equal to the excess of the fair market value of the stock on the date of exercise and the purchase price, Symantec would be able to claim a tax deduction...

  • Page 45
    ... executive officers as "performance-based compensation" under federal tax rules applicable to public companies. Section 162(m) of the Code generally disallows a tax deduction to public companies for compensation in excess of $1 million paid during a single year to the company's Chief Executive...

  • Page 46
    ... • market share • return on net assets • return on equity • return on investment • cash flow, including cash flow from operations • new product releases • employee productivity and satisfaction metrics • strategic plan development and implementation (including individual performance...

  • Page 47
    ...active employee and on Symantec's payroll on either (a) the last day of the fiscal year (or performance period) to which the award relates or (b) the date of payment or vesting, in each case as specified in the documents governing the specific award. The Compensation Committee may make exceptions to...

  • Page 48
    ... Cash Awards under Annual Incentive Plan Target Amount for Fiscal Year LTIP Period Beginning on 3/29/08 for Cash Awards under LTIP Name and Principal Position John W. Thompson, ...Chairman of the Board and CEO Enrique T. Salem, ...Chief Operating Officer James A. Beer, ...Executive Vice President...

  • Page 49
    ..., it does not affect our ability to deduct deferred compensation. We operate the SEIP in a manner that exempts it from application of Section 409A, although the SEIP allows us to offer deferral programs to participants with respect to their plan awards. To the extent we adopt such deferral...

  • Page 50
    ... fees for audit services principally related to the year-end examination and the quarterly reviews of Symantec's consolidated financial statements, consultation on matters that arise during a review or audit, review of SEC filings, audit services performed in connection with Symantec's acquisitions...

  • Page 51
    ... registered public accounting firm and management are required to periodically report to the Audit Committee regarding the extent of services provided by the independent registered public accounting firm in accordance with this pre-approval, and the fees for the services performed to date. The Audit...

  • Page 52
    ...and Services Executive Vice President, General Counsel and Secretary Executive Vice President and Chief Human Resources Officer Senior Vice President, Finance and Chief Accounting Officer The Board chooses executive officers, who then serve at the Board's discretion. There is no family relationship...

  • Page 53
    ...Senior Vice President and Chief Marketing Officer from May 2003 to May 2006. Prior to Symantec, Ms. Chaffin spent 21 years at Hewlett-Packard Company, a global provider of products, technologies, solutions and services, where she held a variety of marketing and business management positions and most...

  • Page 54
    ...the beneficial ownership of Symantec common stock by (i) each stockholder known by Symantec to be the beneficial owner of more than 5% of Symantec common stock, (ii) each member of the Board , (iii) the named executive officers of Symantec included in the Summary Compensation Table appearing on page...

  • Page 55
    ...,886 shares subject to options that will be exercisable as of September 2, 2008. Symantec has adopted a policy that executive officers and members of the Board hold an equity stake in the company. The policy requires each executive officer to hold a minimum number of shares of Symantec common stock...

  • Page 56
    ...to structure compensation packages that are competitive in the markets in which we compete for executive talent. While we strive for a basic level of internal pay equity among our management team members, we also believe that it is important to reward outstanding individual performance, team success...

  • Page 57
    ...for the CEO and the other named executive officers (including base salary, target annual bonus, target and accrued award payments under the Long Term Incentive Plans, and the value of all vested and unvested equity awards). Focus on Pay-for-Performance: Our executive compensation program is designed...

  • Page 58
    ...: Our current policy is to target the base salary and annual short-term cash incentive structure for named executive officers at the 65th percentile of the relevant market composite, as described below, with target long-term incentive opportunities and benefits for named executive officers at the...

  • Page 59
    ... bonus levels for our Executive Annual Incentive Plans. In addition, the award opportunities for fiscal 2008 were determined based on a market composite, the desired pay mix, internal pay equity goals, and the role of the named executive officer. For fiscal 2008, the target opportunity for the CEO...

  • Page 60
    ... that any single named executive officer may be paid for a single fiscal year. Executive Annual Incentive Plan Performance Measures and Target Setting: Executive Annual Incentive Plan performance targets are established on or about the beginning of each plan year. Our management develops proposed...

  • Page 61
    ... named executive officers who remain our employees as of the end of fiscal 2010. Accordingly, Messrs. Salem, Beer and Hughes and Ms. Chaffin will each receive a payout of $472,500 if they remain employed by us on such date. This level of achievement against target compares to our reported increase...

  • Page 62
    ... Mr. Thompson accepted, an equity grant of options to purchase 380,000 shares and 115,000 RSUs. Burn Rate and Dilution: We closely manage how we use our equity to compensate employees. We think of "gross burn rate" as the total number of shares granted under all of our equity incentive plans during...

  • Page 63
    ... of Plan-Based Awards table on page 56.) Equity Grant Practices: The Committee generally approves grants to the named executive officers at its first meeting of each fiscal year. The grant date for all stock options granted to employees, including the named executive officers, is the 10th day of...

  • Page 64
    ...approved a sign-on bonus for Mr. Beer pursuant to his offer letter with Symantec in February 2006. Other Benefits All named executive officers are eligible to participate in our 401(k) plan (which includes our matching contributions), health and dental coverage, life insurance, disability insurance...

  • Page 65
    ... purchase or write any put or call option involving Symantec's securities. In addition, our Insider Trading Policy requires that our Chief Executive Officer, Chief Financial Officer, and each of our directors conduct open market transactions in our securities only through use of stock trading plans...

  • Page 66
    ...to our named executive officers is deductible. We believe that all of the stock options granted to the executive officers under our 1996 Equity Incentive Plan and 2004 Equity Incentive Plan qualify under Section 162(m) as performance-based compensation and that all amounts of compensation related to...

  • Page 67
    ... Symantec specifically incorporates it by reference. The Compensation Committee has reviewed and discussed with management the Compensation Discussion and Analysis ("CD&A") contained in this proxy statement. Based on this review and discussion, the Compensation Committee has recommended to the Board...

  • Page 68
    ... Fiscal Year Salary ($) Bonus ($) Stock Awards ($)(1) Option Awards ($)(2) Non-Equity Incentive Plan Compensation ($) All Other Compensation ($) Total ($) Name and Principal Position John W. Thompson ...Chairman of the Board of Directors and Chief Executive Officer James A. Beer ...Executive Vice...

  • Page 69
    ...sales achiever's trip and Board retreat, (b) $14,386 for term executive life insurance and individual long term disability insurance premium payments made by the Company, (c) $6,000 for the Company's contributions to Mr. Thompson's account under its 401(k) plan and (d) $184,689 for incremental costs...

  • Page 70
    ...table shows for the fiscal year ended March 28, 2008, certain information regarding grants of plan-based awards to the Named Executive Officers from our incentive plans: Grants of Plan-Based Awards in Fiscal 2008 All Other Stock Awards: Number of Shares of Stock or Units (#) All Other Option Awards...

  • Page 71
    ... respect to each applicable metric under the FY08 Executive Annual Incentive Plan. (2) Represents grant date of stock awards and option awards. (3) Represents threshold, target and maximum payouts under the FY08 LTIP. Payment under this plan is contingent upon employment through the end of fiscal...

  • Page 72
    ... fiscal year end for the Named Executive Officers. Outstanding Equity Awards At Fiscal Year-End 2008 Option Awards Number of Securities Underlying Unexercised Options (#) Exercisable Number of Securities Underlying Unexercised Options (#) Unexercisable Stock Awards Number of Shares or Units of Stock...

  • Page 73
    ... table shows for the fiscal year ended March 28, 2008, certain information regarding option exercises and stock vested during the last fiscal year with respect to the Named Executive Officers: Option Exercises and Stock Vested in Fiscal 2008 Option Awards Number of Shares Acquired Value Realized...

  • Page 74
    ... to the Symantec Corporation Severance Plan is subject to the applicable employee's returning a release of claims against Symantec. John W. Thompson In accordance with an employment agreement dated April 11, 1999 between Mr. Thompson and Symantec, in the event Mr. Thompson resigns with good reason...

  • Page 75
    ... stock units. The payment of the foregoing severance benefits is subject to Mr. Beer's returning a release of claims against Symantec. The following table summarizes the value of the payouts to Mr. Beer pursuant to Mr. Beer's employment letter agreement, the Symantec Executive Retention Plan...

  • Page 76
    ... pursuant to Mr. Hughes' employment agreement, the Symantec Executive Retention Plan, and the Symantec Corporation Severance Plan assuming a qualifying termination as of March 28, 2008 (intrinsic values of equity awards are based upon the closing price for a share of our common stock of $16.82 on...

  • Page 77
    ... 30 days of termination of employment. The payment of the foregoing severance benefits is subject to Mr. Butterfield's returning a release of claims against Symantec. The following table summarizes the value of the payouts to Mr. Butterfield pursuant to Mr. Butterfield's employment letter agreement...

  • Page 78
    ... an executive officer) if the aggregate amount involved does not exceed the greater of $2,000,000, or three percent of that company's total annual gross revenues, provided that the transaction involves the purchase of either company's goods and services and the transaction is subject to usual trade...

  • Page 79
    ... year ended March 28, 2008, as well as KPMG's Report of Independent Registered Public Accounting Firm included in Symantec's Annual Report on Form 10-K related to its audit of (i) the consolidated financial statements and financial statement schedule and (ii) the effectiveness of internal control...

  • Page 80
    ... printing costs and postage fees, and helps protect the environment as well. This year, a number of brokers with account holders who are Symantec stockholders will be "householding" our annual report and proxy materials, including the Notice of Internet Availability. A single Notice of Internet...

  • Page 81
    ...of Internet Availability or annual report and other proxy materials who wish to receive only one copy in the future can contact their bank, broker or other holder of record to request information about householding or Symantec's Investor Relations department at the address or telephone number listed...

  • Page 82
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  • Page 83
    ... Cupertino, California (Address of principal executive offices) 95014-2132 (zip code) Registrant's telephone number, including area code: (408) 517-8000 Securities registered pursuant to Section 12(b) of the Act: Common Stock, par value $0.01 per share, and Related Preferred Stock Purchase Rights...

  • Page 84
    ..., Executive Officers and Corporate Governance ...Executive Compensation...Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters ...Certain Relationships and Related Transactions, and Director Independence ...Principal Accountant Fees and Services ... 24...

  • Page 85
    ... not undertake any obligation to update these forward-looking statements to reflect events occurring or circumstances arising after the date of this report. These forward-looking statements involve risks and uncertainties, and our actual results, performance, or achievements could differ materially...

  • Page 86
    .... This evolution is a key driver of our research and development and acquisition strategies, as we strive to differentiate our solutions from the competition and address our customers' changing needs. The storage software market includes products that manage, archive, protect, and recover business...

  • Page 87
    ... and Storage and Server Management group report directly to Mr. Salem. • Greg Hughes was named Chief Strategy Officer responsible for strategy and corporate development. Mr. Hughes will be focusing on emerging growth areas, such as our Symantec Protection Network, our software-as-a-service (SaaS...

  • Page 88
    ...periods presented in this annual report. Consumer Products Our Consumer Products segment provides suites and services that include Internet security, PC tuneup, and backup for individual users and home offices. Our NortonTM brand of consumer security software products provides protection for Windows...

  • Page 89
    ... management, IT asset and service management, business process automation, data archiving and remote control. Products include SymantecTM Endpoint Protection, Symantec Network Access Control, and AltirisTM Total Management Suite. Information Risk Management Our Information Risk Management solutions...

  • Page 90
    ...programs, including technical training and security awareness training, to help customers optimize their Symantec solutions. Sales and Channel Strategy Consumer Products We sell our consumer products and services to individuals and home offices globally through a multi-tiered network of distribution...

  • Page 91
    ... severe problems; and, periodic software updates and access to our technical knowledge base and frequently asked questions. Our consumer product support program provides self-help online services, phone, chat, and email support to consumers worldwide. A team of product experts, editors, and language...

  • Page 92
    ... partners with universities to conduct research to support Symantec's needs. Our Security Response experts, located at research centers throughout the world, are focused on collecting and analyzing the latest malware threats, ranging from network security threats and vulnerabilities to viruses and...

  • Page 93
    ...compete for access to retail distribution channels and for the attention of customers at the retail level and in corporate accounts. In addition, we compete with other software companies, operating system providers, network equipment manufacturers and other OEMs to acquire technologies, products, or...

  • Page 94
    ...6,200 employees work in sales and marketing; 5,200 in research and development; 3,900 in support and services; and 2,300 in management, manufacturing, and administration. Other Information Our Internet address is www.symantec.com. We make available free of charge on our website our annual reports on...

  • Page 95
    ...unified enterprise security and storage solutions • Incorporating acquired products and technologies • Trade compliance issues affecting our ability to ship new products • Developing or expanding efficient sales channels • Obtaining sufficient licenses to technology and technical access from...

  • Page 96
    ... for sales to end-users of our products, we compete with them for the opportunity to have our products bundled with the product offerings of our strategic partners such as computer hardware OEMs and ISPs. Our competitors could gain market share from us if any of these strategic partners replace...

  • Page 97
    ... OEM partners may develop, market, and distribute their own products and market and distribute products of our competitors, which could reduce our sales If we fail to manage our sales and distribution channels successfully, these channels may conflict with one another or otherwise fail to perform as...

  • Page 98
    ... number of special risks and challenges, including: • Complexity, time, and costs associated with the integration of acquired business operations, workforce, products, and technologies into our existing business, sales force, employee base, product lines, and technology • Diversion of management...

  • Page 99
    ... reduce our customers' ability to obtain financing for software products or that could make our products more expensive or could increase our costs of doing business in certain countries • Limitations on future growth or inability to maintain current levels of revenues from international sales if...

  • Page 100
    ... or fail to manage our employee base effectively, we may be unable to develop new and enhanced products and services, effectively manage or expand our business, or increase our revenues. Our future success depends upon our ability to recruit and retain our key management, technical, sales, marketing...

  • Page 101
    ..."), or the Software & Information Industry Association (SIIA), could be costly, may distract management from day-to-day operations, and may lead to additional claims against us, which could adversely affect our operating results. Some of our products contain "open source" software, and any failure...

  • Page 102
    ...a portion of these intangible assets and stock-based compensation expense related to the stock options to purchase Veritas common stock assumed by us. In addition, we will evaluate our long-lived assets, including property and equipment, goodwill, acquired product rights, and other intangible assets...

  • Page 103
    ... of the fair value of our reporting units could change significantly, which could result in a goodwill impairment charge. The foregoing types of accounting charges may also be incurred in connection with or as a result of other business acquisitions. The price of our common stock could decline to...

  • Page 104
    ... Changes in revenue and earnings estimates by us, our investors, or securities analysts • Accounting charges, including charges relating to the impairment of goodwill • Announcements of planned acquisitions or dispositions by us or by our competitors • Announcements of new or planned products...

  • Page 105
    ... fiscal year to which this report relates and that relate to our periodic or current reports under the Exchange Act. Item 2. Properties Our properties consist primarily of owned and leased office facilities for sales, research and development, administrative, customer service, and technical support...

  • Page 106
    ... of Our Equity Securities Stock repurchases during the three-month period ended March 28, 2008 were as follows: Dollar Value of Shares That May Yet be Purchased Under Total Number of Shares the Plans Purchased Under Publicly Total Number of Average Price or Programs Shares Purchased Paid per...

  • Page 107
    ...to be incorporated by reference into any filing of Symantec under the Securities Act or the Exchange Act. Comparison of cumulative total return - March 31, 2003 to March 31, 2008 The graph below compares the cumulative total stockholder return on Symantec common stock from March 31, 2003 to March 31...

  • Page 108
    ... company. The comparisons in the graph below are based on historical data and are not intended to forecast the possible future performance of Symantec common stock. COMPARISON OF 19-YEAR CUMULATIVE TOTAL RETURN* Among Symantec Corporation, The S & P 500 Index And The S & P Information Technology...

  • Page 109
    ... their respective dates of acquisition. Five-Year Summary 2008 Fiscal(c) 2007(a) 2006(b) 2005 (In thousands, except net income per share) 2004 Consolidated Statements of Income Data: Net revenues ...Acquired in-process research and development(d) ...Restructuring ...Integration ...Loss on sale of...

  • Page 110
    ... Business Symantec is a global leader in providing security, storage and systems management solutions to help businesses and consumers secure and manage their information. We provide customers worldwide with software and services that protect, manage and control information risks related to security...

  • Page 111
    ... to the write-off in fiscal 2006 of $285 million of acquired in-process research and development, or IPR&D, as a result of the Veritas acquisition for which there is no comparable charge in fiscal 2007. This increase was partially offset by $154 million of stock-based compensation expense related to...

  • Page 112
    ... 2008 we repurchased 81 million shares of our common stock at an average price of $18.53, for total consideration of $1.5 billion. CRITICAL ACCOUNTING ESTIMATES The preparation of the Consolidated Financial Statements and related notes included in this annual report in accordance with generally...

  • Page 113
    ... software licenses and maintenance and/or services, and packaged products with content updates, we allocate and defer revenue for the undelivered items based on vendor specific objective evidence, or VSOE, of the fair value of the undelivered elements, and recognize the difference between the total...

  • Page 114
    ..., net were $1.2 billion, and acquired product rights, net were $649 million. We assess goodwill and intangible assets with indefinite life for impairment within our reporting units annually or more often if events or changes in circumstances indicate that the carrying value may not be recoverable in...

  • Page 115
    ...our Newport News, VA building held for sale. Acquired Product Rights. We account for acquired product rights in accordance with SFAS No. 86, "Accounting for Costs of Computer Software to be Sold, Leased or Otherwise Marketed". We record impairment charges on acquired product rights when we determine...

  • Page 116
    ... lack of comparability with other companies that use different models, methods, and assumptions. Stock-based compensation expense related to employee stock options, RSUs, and employee stock purchases recognized under SFAS No. 123R for the year ended March 28, 2008 was $164 million. Contingencies and...

  • Page 117
    ...the change with a corresponding increase or decrease to our tax provision in our Consolidated Statements of Income, or to goodwill to the extent that the valuation allowance related to tax attributes of the acquired entities. We failed to file in a timely fashion the final pre-acquisition tax return...

  • Page 118
    ...security products and services were sold under our historical buying programs. The combination of buying programs resulted in a change in the VSOE for some of our storage and availability products and services. This change, coupled with an increased number of maintenance renewals sold with a license...

  • Page 119
    ...to the new sales of the storage and availability products and services from our acquisition of Veritas for the full twelve months in the 2007 period compared to nine months in the 2006 period. These products and services contributed $250 million of Content, subscriptions, and maintenance revenues in...

  • Page 120
    ...migration to our Norton Internet Security product and our new Norton 360 product, which offer broader protection and backup features to address the rapidly changing threat environment. Our electronic orders include sales derived from OEMs, subscriptions, upgrades, online sales, and renewals. Revenue...

  • Page 121
    ...OEM subscriptions, upgrades, online sales, and renewals. Revenue from electronic orders (which includes sales of our Norton Internet Security products and our Norton AntiVirus products) grew by $221 million in fiscal 2007 as compared to fiscal 2006. Total expenses from our Consumer segment increased...

  • Page 122
    ... $95 million. Additionally, increases in Sales expenses drove costs higher for the Storage and Server Management group. Services Segment 2008 Fiscal 2007 ($ in thousands) 2006 Services revenues ...Percentage of total net revenues ...Period over period change...Services operating loss ...Percentage...

  • Page 123
    ... as acquired inprocess research and development, stock-based compensation, and restructuring; and certain indirect costs that are not charged to the other operating segments. Net revenues by geographic region 2008 Fiscal 2007 ($ in thousands) 2006 Americas (U.S., Canada and Latin America) ...$3,095...

  • Page 124
    ... consists primarily of amortization of acquired product rights, fee-based technical support costs, costs of billable services, payments to OEMs under revenue-sharing arrangements, manufacturing and direct material costs, and royalties paid to third parties under technology licensing agreements. 42

  • Page 125
    ... of fee-based technical support costs, costs of billable services, and payments to OEMs under revenue-sharing agreements. Cost of content, subscriptions, and maintenance decreased as a percentage of the related revenue in fiscal 2008 as compared to fiscal 2007. The year over year decrease in cost of...

  • Page 126
    ..., which added $56 million of stock-based compensation expense in fiscal 2007 for which there is no comparable expense in fiscal 2006. In addition, approximately $171 million of the increase is due to an additional three months of sales and marketing expenses related to the Veritas acquisition, which...

  • Page 127
    ...total net revenues ...4% 4% 4% Period over period change ...$ 23,629 $ 52,680 12% 35% Other purchased intangible assets are comprised of customer base, tradenames, partnership agreements, and marketing-related assets. The increased amortization in fiscal 2008 is primarily associated with a full year...

  • Page 128
    ... working prototype in which there is no remaining risk relating to the development. At the time of the acquisition in July 2005, Veritas was developing new products in multiple product areas that qualify as IPR&D. These efforts included NetBackup 6.1, Backup Exec 11.0, Server Management 5.0, and...

  • Page 129
    ... was approximately 35%, 36%, and 57% in fiscal 2008, 2007, and 2006, respectively. The effective tax rate for fiscal 2008 reflects the impact of non-deductible stock-based compensation offset by U.S. tax benefits from domestic manufacturing deductions. The effective tax rate for fiscal 2007 reflects...

  • Page 130
    ...cost of the Veritas purchase price. Any incremental interest accrued subsequent to the date of the Veritas acquisition would be recorded as an expense in the period the matter is resolved. In the fourth quarter of fiscal 2006, we made $90 million of tax-related adjustments to the purchase accounting...

  • Page 131
    ...12 months. Uses of Cash Our principal cash requirements include working capital, capital expenditures, payments of principal and interest on our debt and payments of taxes. In addition, we regularly evaluate our ability to repurchase stock, pay debts and acquire other businesses. Acquisition-Related...

  • Page 132
    ... of the Veritas 0.25% notes with cash, which reflected principal plus interest. Stock Repurchases. During fiscal 2008, we repurchased a total of 81 million shares, or $1.5 billion, of our Company's common stock. At March 28, 2008 we have $1 billion remaining under the plan authorized by the Board of...

  • Page 133
    ... $541 million acquired through the acquisition of Veritas, net of cash expenditures for our other acquisitions in fiscal 2006. Additionally, we recognized net proceeds from sales of available-for-sale securities of $3.4 billion during fiscal 2006, which was primarily associated with the liquidation...

  • Page 134
    ... estimated fair value of these indemnification agreements in excess of applicable insurance coverage is minimal. We provide limited product warranties and the majority of our software license agreements contain provisions that indemnify licensees of our software from damages and costs resulting from...

  • Page 135
    ... research and development, the accounting for acquisition-related restructuring cost accruals subsequent to acquisition date, and the recognition of changes in the acquirer's income tax valuation allowance. SFAS No. 141(R) is effective for fiscal years beginning after December 15, 2008, with early...

  • Page 136
    ... Accounting for Certain Investments in Debt and Equity Securities. We consider investments in instruments purchased with an original maturity of 90 days or less to be cash equivalents. We classify our short-term investments as available-for-sale, and short-term investments consist of marketable debt...

  • Page 137
    ... convert their Senior Notes prior to maturity upon the occurrence of certain circumstances. Upon conversion, we would pay the holder the cash value of the applicable number of shares of Symantec common stock, up to the principal amount of the note. Amounts in excess of the principal amount, if any...

  • Page 138
    ... costs were primarily related to severance, associated benefits, outplacement services, and termination of excess facilities for the fiscal 2007 plans as well as acquisition related restructuring. See Note 16 of the Notes to Consolidated Financial Statements in this annual report. During...

  • Page 139
    ... for Symantec. Our management, with the participation of our Chief Executive Officer and our Chief Financial Officer, has conducted an evaluation of the effectiveness of our internal control over financial reporting as of March 28, 2008, based on criteria established in Internal Control - Integrated...

  • Page 140
    ... this item is incorporated by reference to Symantec's Proxy Statement for its 2008 Annual Meeting of Stockholders to be filed with the SEC within 120 days after the end of the fiscal year ended March 28, 2008. Item 14. Principal Accountant Fees and Services The information required by this item is...

  • Page 141
    ... schedule of Symantec Corporation for the years ended March 28, 2008, March 30, 2007, and March 31, 2006 is filed as part of this Form 10-K and should be read in conjunction with the consolidated financial statements of Symantec Corporation Schedule: II Valuation and Qualifying Accounts...Schedules...

  • Page 142
    ... 4.06 Agreement and Plan of Reorganization dated as of 8-K 000-17781 December 15, 2004 among Symantec Corporation, Carmel Acquisition Corp., and Veritas Software Corporation Agreement and Plan of Merger among Symantec 8-K 000-17781 Corporation, Atlas Merger Corp. and Altiris, Inc. dated January 26...

  • Page 143
    ... Restated Symantec Corporation 2002 Executive Officers' Stock Purchase Plan Veritas Software Corporation 2002 Directors Stock Option Plan, including form of Stock Option Agreement and forms of Notice of Stock Option Grant Altiris, Inc. 2002 Stock Plan Form of Stock Option Agreement under the Altiris...

  • Page 144
    ...Option Agreement under the Altiris, Inc. 2005 Stock Plan, as amended Offer Letter, dated February 8, 2006, from Symantec Corporation to James A. Beer Separation and Release Agreement dated November 5, 2007 (as amended on December 7, 2007), between Symantec Corporation and Kristof Hagerman Employment...

  • Page 145
    ... Agreement of Purchase and Sale, dated March 29, 1999, between Veritas and Fairchild Semiconductor of California Subsidiaries of Symantec Corporation Consent of Independent Registered Public Accounting Firm Power of Attorney (see Signature page to this annual report) Certification of Chief Executive...

  • Page 146
    ... Page Reports of Independent Registered Public Accounting Firm ...Consolidated Balance Sheets as of March 28, 2008 and March 30, 2007 ...Consolidated Statements of Income for the years ended March 28, 2008, March 30, 2007, and March 31, 2006...Consolidated Statements of Stockholders' Equity and...

  • Page 147
    ... issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO), and our report dated May 20, 2008 expressed an unqualified opinion on the effectiveness of the Company's internal control over financial reporting. /s/ KPMG LLP Mountain View, California May 20, 2008 65

  • Page 148
    ..., stockholders' equity and comprehensive income, and cash flows for each of the years in the three-year period ended March 28, 2008, and our report dated May 20, 2008 expressed an unqualified opinion on those consolidated financial statements. /s/ KPMG LLP Mountain View, California May 20...

  • Page 149
    ... ...Acquired product rights, net ...Other intangible assets, net ...Goodwill ...Investment in joint venture ...Other long-term assets ...Long-term deferred income taxes . Total assets ...LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable ...Accrued compensation and benefits...

  • Page 150
    ... Total net revenues ...Cost of revenues: Content, subscriptions, and maintenance ...Licenses ...Amortization of acquired product rights ...Gross profit ...Operating expenses: Sales and marketing ...Research and development ...General and administrative ...Amortization of other purchased intangible...

  • Page 151
    ...) Restricted stock units released, net of taxes...593 6 (4,144) Stock-based compensation, net of estimated forfeitures ...- - 156,704 Acquisition PPA adjustment for options ...- - 31,522 Director Retainer Fee - Stock Portion ...17 - 300 Income tax benefit from employee stock transactions ...- - 17...

  • Page 152
    ...Stock-based compensation expense ...163,695 Impairment of equity investments ...1,000 Write-down of assets ...1,200 Deferred income taxes ...(180,215) Income tax benefit from the exercise of stock options ...29,443 Excess income tax benefit from the exercise of stock options ...(26,151) Loss on sale...

  • Page 153
    ...solutions to help businesses and consumers secure and manage their information. We provide customers worldwide with software and services that protect, manage and control information risks related to security, data protection, storage, compliance, and systems management. We help our customers manage...

  • Page 154
    ... and maintenance and licenses. We present revenue net of sales taxes and any similar assessments. Content, subscriptions, and maintenance revenue includes arrangements for software maintenance and technical support for our products, content and subscription services primarily related to our security...

  • Page 155
    ... recognized when the OEM reports the sale of the software products to an end-user, generally on a quarterly basis. In addition to license royalties, some OEMs pay an annual flat fee and/or support royalties for the right to sell maintenance and technical support to the end-user. We recognize revenue...

  • Page 156
    ... when channel inventories are in excess of specified levels and for transactions where collection of a receivable is not considered probable. Equity Investments We have equity investments in privately held companies for business and strategic purposes. We account for non-marketable equity securities...

  • Page 157
    ...term or seven years • Buildings - twenty-five to thirty years Acquired Product Rights Acquired product rights are comprised of purchased product rights, technologies, databases, patents, and contracts from acquired companies. Acquired product rights are stated at cost less accumulated amortization...

  • Page 158
    .... We evaluate goodwill for impairment by comparing the fair value of each of our reporting units, which are the same as our operating segments, to its carrying value, including the goodwill allocated to that reporting unit. To determine the reporting units' fair values in the current year evaluation...

  • Page 159
    ..., Share-Based Payment, which replaced SFAS No. 123 and superseded APB No. 25 and related interpretations. Under SFAS No. 123R, we must measure the fair value of all stock-based awards, including stock options, restricted stock units, and employee stock purchase plan purchase rights, on the date of...

  • Page 160
    ...to be incurred during the next fiscal quarter. Effective October 1, 2006, we changed our policy related to legal costs from one generally accepted method of accounting to another generally accepted method of accounting. Under our new policy, we will no longer recognize a liability for external legal...

  • Page 161
    ... research and development, the accounting for acquisition-related restructuring cost accruals subsequent to acquisition date, and the recognition of changes in the acquirer's income tax valuation allowance. SFAS No. 141(R) is effective for fiscal years beginning after December 15, 2008, with early...

  • Page 162
    ... This framework is intended to provide increased consistency in how fair value determinations are made under various existing accounting standards which permit, or in some cases require, estimates of fair market value. SFAS No. 157 is effective for fiscal years beginning after November 15, 2007, and...

  • Page 163
    ... $1,092,240 $ $ 1,986,435 (1,079,468) 906,967 94,783 $ 1,001,750 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 2008, 2007, and...

  • Page 164
    .... The Vontu products are expected to enhance our endpoint and network security and storage and compliance solutions offered to customers. In exchange for all the voting equity interests, we paid a total purchase price of $321 million, which includes $14 million in assumed equity awards at fair value...

  • Page 165
    ... 2006, we completed the acquisition of Company-i Limited ("Company-i"), a UK-based professional services firm that specialized in addressing key challenges associated with operating and managing a data center for customers in the financial services industry, in exchange for all of the voting equity...

  • Page 166
    ... million, reflecting our carrying value of the assets contributed in exchange for the common shares received. Huawei contributed its telecommunications storage and security business assets, engineering, sales and marketing resources, personnel, and licenses related intellectual property in exchange...

  • Page 167
    ... balance associated with the Veritas and Altiris acquisition as a result of tax adjustments to stock based compensation, lease payoffs, and restricted stock award reversals. See Note 17 for further details. The decrease of $16 million in the goodwill balance for the Storage and Server Management...

  • Page 168
    ... estimated lives of acquired product rights are approximately 2 years for developed technology and approximately 3 years for patents. The weighted-average remaining estimated life of acquired product rights in total is approximately 2 years. Annual amortization of acquired product rights, based upon...

  • Page 169
    ... estimated lives for other intangible assets are approximately 5 years for customer base and approximately 7 years for trade name. The weighted-average remaining estimated life of other intangible assets in total is approximately 6 years. Annual amortization of other intangible assets, based upon...

  • Page 170
    ...210) Amortized Cost March 30, 2007 Unrealized Unrealized Gains Losses (In thousands) Estimated Fair Value Cash and cash equivalents: Cash ...$ 587,675 Money market funds ...561,240 Commercial paper ...1,354,302 Corporate securities ...10,709 Bank securities and deposits ...45,108 Total cash and...

  • Page 171
    ... due to a decrease in the fair market value of fixed-rate debt securities as a result of changes in interest rates. As of March 28, 2008 and March 30, 2007 we have recorded no write-downs related to other than temporary impairments of short-term investment securities. Unrealized gains and losses on...

  • Page 172
    ... our common stock for at least 20 trading days in the 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is more than 130% of the applicable conversion price per share; (2) if specified corporate transactions, including a change in control, occur...

  • Page 173
    ... to sell vacant buildings and land with a total carrying value of $39 million and no associated liabilities. In accordance with the provisions of SFAS No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets, we designated these buildings and land as assets held for sale and 91

  • Page 174
    ... greater than the estimated fair value less cost to sell for the year ended March 28, 2008. This impairment was included in Research and development expense on our Consolidated Statements of Income. We believe that these sales will be completed no later than the end of fiscal 2009. Note 11. Leases...

  • Page 175
    ... for future purchases. During the three-month period ended June 29, 2007, we repurchased 25 million shares of our common stock at prices ranging from $19.42 to $20.16 per share which completed the $1 billion share repurchase program announced in January 2007. On June 14, 2007, our Board of Directors...

  • Page 176
    ...any future unsolicited acquisition attempt to ensure a fair value of Symantec for our stockholders. In connection with the plan, the Board of Directors declared and paid a dividend of one preferred share purchase right for each share of Symantec common stock outstanding on the record date, August 21...

  • Page 177
    ...which was amended by our Board of Directors in January 2008. The purpose of the plan is to provide executive officers with a 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. As of March 28...

  • Page 178
    ... an opportunity to participate in our future performance through equity awards of stock options and stock bonuses. Under the terms of the 2004 Plan, the exercise price of stock options may not be less than 100% of the fair market value on the date of grant. Options generally vest over a four-year...

  • Page 179
    ... per share upon vesting. The total value of the assumed RSAs on the date of acquisition was approximately $9 million, assuming no RSAs are forfeited prior to vesting. As of March 28, 2008, total unrecognized compensation cost adjusted for estimated forfeitures, related to the Altiris unvested stock...

  • Page 180
    ...the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions: Employee Stock Options Fiscal 2007 Employee Stock Purchase Plan Fiscal 2006 Fiscal 2008 Fiscal 2006 Expected life ...3 years 3 years 3 years Expected volatility ...33% 34% 45% Risk-free...

  • Page 181
    .... Year Ended March 28, March 30, March 31, 2008 2007 2006 (In thousands, except net income per share data) Cost of revenues - Content, subscriptions, and maintenance ...Cost of revenues - Licenses ...Sales and marketing ...Research and development ...General and administrative ...Total stock-based...

  • Page 182
    ...No. 123 to stock-based employee compensation using the Black-Scholes option-pricing model for the fiscal years ended March 31, 2006: Fiscal 2006 (In thousands, except per share amounts) Net income, as reported ...Add: Amortization of deferred stock-based compensation included in reported net income...

  • Page 183
    ... reserved the following shares of authorized but unissued common stock: Stock purchase plans ...Stock award plans ...Employee stock option plans ...Total ...9,828,088 54,449 141,740,626 151,623,163 Note 16. Restructuring Our restructuring costs consist of severance and benefits and facility and...

  • Page 184
    ... fiscal 2010. Future costs for exited facilities associated with these events are not expected to be significant. Prior and Acquisition-Related Restructuring Plans Fiscal Years 2002-2006. In fiscal 2006, management entered into restructuring plans to reduce job redundancy in the Americas, Europe and...

  • Page 185
    ... Cumulative Incurred to Date 2008 Restructuring Plans: Severance ...Facilities & Other ...2007 Restructuring Plans: Severance ...Facilities & Other ...Prior & Acquisition Restructuring Plans: Severance ...Facilities & Other ...Total ...Less purchase price adjustments to goodwill: ... $ - - 45,132...

  • Page 186
    ... taxes is as follows: March 28, 2008 Year Ended March 30, 2007 March 31, 2006 Federal statutory rate ...State taxes, net of federal benefit ...Foreign earnings taxed at less than the federal rate ...Non-deductible stock-based compensation ...American Jobs Creation Act - tax expense on repatriation...

  • Page 187
    ...is attributable to acquisition-related assets, the benefit of which will reduce goodwill when and ...annual limitation under Internal Revenue Code § 382, but are expected to be fully realized. Furthermore, we have U.S. state net operating loss and credit carryforwards attributable to various acquired...

  • Page 188
    ... changes in the balance of gross unrecognized tax benefits were as follows: (In thousands) Beginning balance as of March 31, 2007 (date of adoption) ...Settlements with tax authorities ...Lapse of statute of limitations ...Increases in balances related to tax positions taken during prior years...

  • Page 189
    ... would be accounted for principally as additions to the cost of Veritas purchase price. Any incremental interest accrued subsequent to the date of the Veritas acquisition would be recorded as an expense in the period the matter is resolved. On September 5, 2006, we executed a closing agreement with...

  • Page 190
    ..., and small-sized business with solutions for compliance and security management, endpoint security, messaging management, and data protection management software solutions that allow our customers to secure, provision, backup, and remotely access their laptops, PCs, mobile devices, and servers. 108

  • Page 191
    ... the end of their life cycle. It also includes general and administrative expenses; amortization of acquired product rights, other intangible assets, and other assets; charges, such as acquired in-process research and development, stock-based compensation, restructuring and certain indirect costs...

  • Page 192
    ... from sales of our data protection products within our Storage and Server Management segment represented 19%, 19%, and 15% of our total revenues during fiscal 2008, 2007, and 2006, respectively. Geographical information The following table represents revenue amounts reported for products shipped to...

  • Page 193
    ... duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Cupertino, State of California, on the 20th day of May, 2008. SYMANTEC CORPORATION By /s/ John W. Thompson John W. Thompson, Chairman and Chief Executive Officer KNOWALL PERSONS BY...

  • Page 194
    Signature Title Date /s/ David L. Mahoney David L. Mahoney /s/ Robert S. Miller Robert S. Miller George Reyes George Reyes Director May 20, 2008 Director May 20, 2008 /s/ Director May 20, 2008 /s/ Daniel ...

  • Page 195
    ...doubtful accounts: Year ended March 28, 2008 ...$ 8,391 Year ended March 30, 2007 ...8,794 Year ended March 31, 2006 ...4,668 Reserve for product returns: Year ended March 28, 2008 ...$12,221 Year ended March 30, 2007 ...12,840 Year ended March 31, 2006 ...4,755 Reserve for rebates: Year ended March...

  • Page 196
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  • Page 197
    ... CA 95014 (408) 517-8324 [email protected] www.symantec.com/invest ANNUAL REPORT ON FORM 10-K John W. Thompson Chairman and Chief Executive Officer James A. Beer Executive Vice President, Chief Financial Officer A copy of Symantec's Form 10-K, including exhibits, for the period ended...

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    20330 Stevens Creek Blvd. Cupertino, CA 95014 Tel: (408) 517-8000 www.symantec.com