Symantec 2008 Annual Report Download - page 128

completion of a beta-phase 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 various other
projects. At the time of the acquisition, it was estimated that these IPR&D development efforts would be completed
over the following 12 to 18 months at an estimated total cost of $120 million. As of March 28, 2008, all IPR&D
projects had been completed on schedule and within expected costs.
Restructuring
2008 2007 2006
Fiscal
($ in thousands)
Restructuring . . ....................................... $73,914 $70,236 $24,918
Percentage of total net revenues ........................... 1% 1% 1%
Period over period change ............................... $ 3,678 $45,318
5% 182%
In fiscal 2008, we approved and initiated a restructuring plan (“2008 Plan”) to reduce costs, implement
management structure changes and optimize the business structure and discontinue certain products. Projects
within the plan began in the third quarter of 2008 and are expected to be completed by the fourth quarter of 2009.
Total remaining costs of the restructuring plan, consisting of severance and benefits and excess facilities costs, are
estimated to range between approximately $80 million and $110 million. In fiscal 2007, we entered into
restructuring plans (“2007 Plans”) to consolidate facilities and reduce operating costs through headcount reduc-
tions. We also consolidated certain facilities and exited facilities as a result of earlier acquisitions. In fiscal 2006, we
entered into restructuring plans (“2006 Plans”) to reduce job redundancy in the Americas, EMEA and Asia Pacific
Japan and to consolidate certain facilities in Europe and Asia. Future severance and benefit costs and facilities
charges for both the 2007 Plans and 2006 Plans are not expected to be significant.
We recognized $74 million in restructuring charges in fiscal 2008 compared to $70 million in fiscal 2007.
Charges in fiscal 2008 were $59 million of severance and benefit costs and $15 million for contract termination
costs for exited facilities. In fiscal 2008, severance and benefit costs of $42 million related to the 2008 Plan and
$16 million related to the 2007 Plans. In addition, facilities contract termination costs of $9 million related to the
2007 Plans and $5 million were acquisition-related charges for Altiris and Vontu that occurred in fiscal 2008. In
fiscal 2007, severance and benefit costs of $69 million and an insignificant amount for facilities termination costs
for the 2007 Plans. Included in the $69 million for severance and benefit costs were $13 million which were
acquisition-related charges for Veritas and others that occurred in fiscal 2006. In fiscal 2006, we recognized
$18 million of severance and benefit costs and $7 million for contract termination costs for exited facilities were
recognized.
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. In
connection with our acquisition of Veritas, we recorded integration costs of $16 million in fiscal 2006, which
consisted primarily of costs incurred for consulting services and other professional fees.
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