Symantec 2010 Annual Report Download - page 171

Plan upon their cancellation will also be added to the 2004 Plan reserve. As of April 2, 2010, 59 million shares
remain available for future grant under the 2004 Plan.
Assumed Vontu stock options
In connection with our fiscal 2008 acquisition of Vontu, we assumed all unexercised, outstanding options to
purchase Vontu common stock. Each unexercised, outstanding option assumed was converted into an option to
purchase Symantec common stock after applying the exchange ratio of 0.5351 shares of Symantec common stock
for each share of Vontu common stock. In total, all unexercised, outstanding Vontu options were converted into
options to purchase approximately 2.2 million shares of Symantec common stock. As of April 2, 2010, total
unrecognized compensation cost adjusted for estimated forfeitures related to unexercised, outstanding Vontu stock
options was approximately $2 million.
Furthermore, all shares obtained upon exercise of unvested Vontu options were converted into the right to
receive cash of $9.33 per share upon vesting. The total value of the assumed exercised, unvested Vontu options on
the date of acquisition was approximately $7 million, assuming no options are forfeited prior to vesting. As of
April 2, 2010, total unrecognized compensation cost adjusted for estimated forfeitures related to exercised,
unvested Vontu stock options was immaterial.
The assumed options retained all applicable terms and vesting periods, except for certain options that were
accelerated according to a change in control provision and will generally vest within a twelve month period from the
date of acquisition and certain other options that vested in full as of the acquisition date. In general, the assumed
options typically vest over a period of four years from the original date of grant of the option and have a maximum
term of ten years.
Other stock option plans
Options remain outstanding under several other stock option plans, including the 2001 Non-Qualified Equity
Incentive Plan, the 1999 Acquisition Plan, the 1996 Plan, and various plans assumed in connection with
acquisitions. No further options may be granted under any of these plans.
Valuation of stock-based awards
The fair value of each stock option granted under our equity incentive plans is estimated on the date of grant
using the Black-Scholes option-pricing model with the following weighted-average assumptions:
Fiscal
2010
Fiscal
2009
Fiscal
2008
Employee Stock Options
Expected life .......................................... 3years 3 years 3 years
Expected volatility . . . ................................... 44% 37% 33%
Risk-free interest rate . ................................... 1.47% 2.04% 4.52%
Changes in the Black-Scholes valuation assumptions and our estimated forfeiture rate may change the estimate of
fair value for stock-based compensation and the related expense recognized. There have not been any material changes
to our stock-based compensation expense due to changes in our valuation assumptions of stock-based awards.
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SYMANTEC CORPORATION
Notes to Consolidated Financial Statements — (Continued)