Symantec 2008 Annual Report Download - page 44

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Symantec may also grant options under Non-Statutory Plans to employees of our designated subsidiaries and
affiliates that do not participate in the Statutory Plan. The specific terms of such Non-Statutory Plans are not yet
known, accordingly it is not possible to discuss with certainty the relevant tax consequences of these Non-Statutory
Plans. The Non-Statutory Plans will be sub-plans of the New ESPP that are generally not intended to qualify under
the provisions of Sections 421 and 423 of the Code. Therefore, it is likely that 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 equal to this difference, and Symantec would be required to withhold employment
taxes and income tax at the time of the purchase.
Accounting Treatment
Based on Statement of Financial Accounting Standards No. 123(R), Symantec recognizes compensation
expense in connection with options outstanding under the New ESPP. So long as Symantec continues issuing shares
under the New ESPP with a purchase price at a discount to the fair market value of its stock, Symantec will
recognize compensation expense which will be determined by the level of participation in the New ESPP. As
mentioned above, in 2005 we amended the structure of the Old ESPP in a manner that we believe decreased the
amount of compensation expense we are required to recognize and we intend to maintain that structure when we
commence operation of the New ESPP.
THE BOARD RECOMMENDS A VOTE “FOR” APPROVAL OF PROPOSAL NO. 3
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