Symantec 2008 Annual Report Download - page 181

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Stock-based compensation expense
Stock-based compensation is classified in the Consolidated Statements of Income in the same expense line
items as cash compensation. The following table sets forth the total stock-based compensation expense recognized
in our Consolidated Statements of Income.
March 28,
2008
March 30,
2007
March 31,
2006
Year Ended
(In thousands, except net income per
share data)
Cost of revenues — Content, subscriptions, and maintenance . . . $ 13,003 $ 12,373 $ 439
Cost of revenues — Licenses ........................... 3,731 4,064 —
Sales and marketing ................................. 58,181 55,895 13,314
Research and development ............................ 57,597 57,132 17,497
General and administrative ............................ 31,183 24,416 7,151
Total stock-based compensation ....................... 163,695 153,880 38,401
Tax benefit associated with stock-based compensation expense. . (41,589) (35,415) (11,405)
Net effect of stock-based compensation expense on net
income ....................................... $122,106 $118,465 $ 26,996
Net effect of stock-based compensation expense on earnings
per share — basic . . ............................. $ 0.14 $ 0.12 $ 0.03
Net effect of stock-based compensation expense on earnings
per share - diluted . . ............................. $ 0.14 $ 0.12 $ 0.03
As of March 28, 2008, total unrecognized compensation cost adjusted for estimated forfeitures related to
unvested stock options, RSUs, and RSAs, was $144 million, $46 million, and $1 million, respectively, which is
expected to be recognized over the remaining weighted-average vesting periods of 2.5 years for stock options,
1.4 years for RSUs, and 0.6 years for RSAs.
Prior to the adoption of SFAS No. 123R, we provided the pro forma information regarding net income and
earnings per share required by SFAS No. 123. This information was required to be determined as if we had
accounted for our employee stock options, including shares issued under our ESPP, granted subsequent to
March 31, 1995 under the fair value method of SFAS No. 123. We generally did not recognize stock-based
compensation expense in our Consolidated Statements of Income for option grants to our employees for the periods
prior to our adoption of SFAS No. 123R because the exercise price of options granted was equal to the fair market
value of the underlying common stock on the date of grant. Prior to April 1, 2006, stock-based compensation
expense resulted primarily from stock options and RSUs assumed in acquisitions and restricted stock granted to
executives. The following table illustrates the effect on net income and earnings per share as if we had applied the
99
SYMANTEC CORPORATION
Notes to Consolidated Financial Statements — (Continued)