Symantec 2009 Annual Report Download - page 156

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Stock-based compensation expense
The following table sets forth the total stock-based compensation expense recognized in our Consolidated
Statements of Operations.
April 3,
2009
March 28,
2008
March 30,
2007
Year Ended
(In thousands, except per share data)
Cost of revenues — Content, subscriptions, and maintenance . . . $ 11,180 $ 13,003 $ 12,373
Cost of revenues — Licenses .......................... 3,053 3,731 4,064
Sales and marketing ................................. 65,744 58,181 55,895
Research and development ............................ 49,285 57,597 57,132
General and administrative ............................ 28,202 31,183 24,416
Total stock-based compensation ...................... 157,464 163,695 153,880
Tax benefit associated with stock-based compensation
expense ........................................ (44,471) (41,589) (35,415)
Net effect of stock-based compensation expense on
operations..................................... $112,993 $122,106 $118,465
Net effect of stock-based compensation expense on earnings
per share — basic ............................... $ 0.14 $ 0.14 $ 0.12
Net effect of stock-based compensation expense on earnings
per share — diluted .............................. $ 0.14 $ 0.14 $ 0.12
The net effect of a forfeiture rate adjustment in the third quarter based upon actual results was a decrease to our
stock-based compensation expense for the twelve months ended April 3, 2009 by approximately $13 million.
As of April 3, 2009, total unrecognized compensation cost adjusted for estimated forfeitures related to
unvested stock options, and RSUs was $79 million and $77 million, respectively, which is expected to be recognized
over the remaining weighted-average vesting periods of 2 years for stock options and 2 years for RSUs.
Stock option activity
The following table summarizes stock option activity for the year ended April 3, 2009:
Number
of Shares
Weighted-
Average
Exercise
Price
Weighted-
Average
Remaining
Years
Aggregate
Intrinsic
Value
(1)
(In thousands) (In thousands)
Outstanding at March 28, 2008 ........... 95,268 $18.08 $ —
Granted ............................ 5,469 18.97
Exercised ........................... (14,042) 11.96
Forfeited
(2)
.......................... (4,730) 18.73
Expired
(3)
........................... (7,942) 24.16
Outstanding at April 3, 2009 ............. 74,023 $18.61 3.96 $136,615
Exercisable at April 3, 2009 ............. 57,611 $18.65 3.57 $129,608
Vested and expected to vest at April 3, 2009 . . 68,472 $18.62 3.86 $134,250
(1)
Intrinsic value is calculated as the difference between the market value of Symantec’s common stock as of
April 3, 2009 and the exercise price of the option. The aggregate intrinsic value of options outstanding and
96
SYMANTEC CORPORATION
Notes to Consolidated Financial Statements — (Continued)