Symantec 2010 Annual Report Download - page 85

We typically offer two types of rebate programs within most countries: volume incentive rebates to channel
partners and promotional rebates to distributors and end users. Distributors and resellers earn volume incentive
rebates primarily based upon product sales to end users. We also offer rebates to individual users who purchase
products through various resale channels. Both volume incentive rebates and end-user rebates are accrued as an
offset to revenue.
Research and Development
Symantec embraces a global research and development (“R&D”) strategy to drive organic innovation across
the company. Engineers throughout the company pursue advanced projects and work with our engineering centers,
research labs and global services teams to translate R&D into next-generation technologies and integrate our unique
set of technology assets across the portfolio. Symantec focuses on short, medium, and long-term applied research,
develops new products in emerging areas, participates in government-funded research projects, and partners with
universities to conduct research to support Symantec’s strategy. Symantec holds more than 900 patents.
Symantec’s Security Technology and Response organization is a global team of security engineers, threat
analysts, and researchers that provides the underlying functionality, content, and support for all Symantec
enterprise, SMB and consumer security products. Symantec’s security experts monitor malicious code reports
collected through the Global Intelligence Network to provide insight into emerging attacks, malicious code activity,
phishing, spam, and other threats. The team uses this vast intelligence to develop new technologies and approaches,
such as Symantec’s reputation-based security technology, to protect customer’s information.
Research and development expenses, exclusive of in-process research and development associated with
acquisitions, were $857 million, $870 million and $895 million in fiscal 2010, 2009 and 2008, respectively,
representing approximately 14%, 14% and 15% of revenue in the respective periods. We believe that technical
leadership is essential to our success and we expect to continue to commit substantial resources to research and
development.
Support
Symantec has centralized support facilities throughout the world that provide rapid, around-the-clock
response, and are staffed by technical product experts knowledgeable in the operating environments in which
our products are deployed. Our technical support experts assist customers with product implementation and usage,
issue resolution and countermeasures, and threat detection.
Symantec provides customers various levels of enterprise support offerings. Our enterprise security support
program offers annual maintenance support contracts, including content, upgrades, and technical support. Our
standard technical support includes: unlimited hotline service delivered by telephone, fax, email, and over the
Internet; immediate patches for severe problems; periodic software updates; and access to our technical knowledge
base and frequently asked questions.
Our consumer product support program provides self-help online services, phone, chat, email support, and fee-
based premium support and diagnostic services to consumers worldwide. Customers that subscribe to LiveUpdate
receive automatic downloads of the latest virus definitions, application bug fixes, and patches for most of our
consumer products.
Customers
In fiscal 2010 and 2008, one distributor, Ingram Micro accounted for 10% of our total net revenue in both
periods. In fiscal 2009, Ingram Micro did not account for 10% of total net revenue. Our distributor arrangements
with Ingram Micro consist of several non-exclusive, independently negotiated agreements with its subsidiaries,
each of which cover different countries or regions. Each of these agreements is separately negotiated and is
independent of any other contract (such as a master distribution agreement), and these agreements are not based on
the same form of contract. In fiscal 2009 and 2008, one reseller, Digital River accounted for 10% and 11% of our
total net revenues, respectively. In fiscal 2010, we launched a new, internally-developed eCommerce platform
which will reduce our reliance on Digital River.
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