Symantec 2010 Annual Report Download - page 104

(d)
In fiscal 2007, we adopted new authoritative guidance on share-based compensation. The adoption resulted in
stock-based compensation charges of $155 million, $157 million, $164 million, and $154 million for fiscal
years 2010, 2009, 2008, and 2007, respectively.
(e)
We acquired Veritas Software Corporation on July 2, 2005 and its results of operations are included from the
date of acquisition.
(f)
During fiscal 2009, we recorded a non-cash goodwill impairment charge of $7.4 billion. For more information,
see Note 5 of the Notes to the Consolidated Financial Statements in this annual report.
(g)
In fiscal 2006, in connection with our acquisition of Veritas, we assumed $520 million of 0.25% convertible
subordinated notes. These notes were paid off in their entirety in August 2006.
(h)
In fiscal 2007, we issued $1.1 billion principal amount of 0.75% Convertible Senior Notes and $1.0 billion
principal amount of 1.00% Convertible Senior Notes. For more information, see Notes 1 and 7 of the Notes to
Consolidated Financial Statements in this annual report.
(i)
Beginning in fiscal 2008, we entered into OEM placement fee contracts, which is the primary driver for the
increase in liabilities.
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
OVERVIEW
Our Business
Symantec is a global provider of security, storage and systems management solutions that 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 cost, complexity and compliance by protecting their IT infrastructure
as they seek to maximize value from their IT investments.
Fiscal Calendar
We have a 52/53-week fiscal year ending on the Friday closest to March 31. Unless otherwise stated,
references to fiscal years in this report relate to fiscal year and periods ended April 2, 2010, April 3, 2009 and
March 28, 2008. Fiscal 2010 and 2008 each consisted of 52 weeks, while fiscal 2009 consisted of 53 weeks. Our
2011 fiscal year will consist of 52 weeks and will end on April 1, 2011.
Our Operating Segments
Our operating segments are significant strategic business units that offer different products and services,
distinguished by customer needs. Since the March 2008 quarter, we have operated in five operating segments:
Consumer, Security and Compliance, Storage and Server Management, Services, and Other. During the first quarter
of fiscal 2010, we changed our reporting segments to better align to our operating structure, resulting in the
Enterprise Vault products that were formerly included in the Security and Compliance segment being moved to the
Storage and Server Management segment. Also, our SaaS offerings moved to either the Security and Compliance
segment or the Storage and Server Management segment from the Services segment, based on the nature of the
service delivered. As a result, the revenue contribution from our SaaS offering primarily benefited our Security and
Compliance segment following the move. We revised the segment information for the prior year to conform to the
new presentation. For further descriptions of our operating segments, see Note 11 of the Notes to Consolidated
Financial Statements in this annual report. Our reportable segments are the same as our operating segments.
Financial Results and Trends
Revenue decreased for fiscal 2010 compared to fiscal 2009. The challenging economic environment resulted
in corporate IT budgets being reduced and spending has slowed from previous levels. Smaller IT budgets have led
some of our corporate customers to purchase smaller volumes of our products, particularly in the Storage and Server
Management segment. In addition, our storage business within the Storage and Server Management segment has
28