Symantec 2014 Annual Report Download - page 112

Financial results and trends
Revenue decreased by $230 million for fiscal 2014 as compared to fiscal 2013, primarily due to decreases in
revenue from our User Productivity & Protection segment and Information Management segment following the
transition of our sales force into new and renewal business teams. We experienced revenue declines domestically
and internationally in fiscal 2014 as compared to fiscal 2013. The Asia Pacific and Japan region experienced the
largest net revenue decrease followed by Americas, while the EMEA region experienced net revenue growth for
fiscal 2014 as compared to fiscal 2013. The Asia Pacific and Japan region revenue declined primarily due to
foreign currency translation adjustments resulting from the weakening of the Japanese yen compared to the U.S.
dollar, while we experienced favorable foreign currency effects in the EMEA region.
Cost of revenue decreased by $26 million for fiscal 2014 as compared to fiscal 2013, primarily due to
decreases in revenue and decreases in intangible assets amortization as certain developed technologies became
fully amortized early in fiscal 2014.
Operating expenses decreased by $281 million for fiscal 2014 as compared to fiscal 2013, primarily due to
lower salaries and wages resulting from lower headcount, lower advertising and promotion expenses and lower
amortization of intangible assets as various customer relationship intangibles became fully amortized early in
fiscal 2014. For fiscal 2014, we recognized $270 million of restructuring and transition costs. We are focused on
five priorities for fiscal 2015. These include optimizing our businesses based on lifecycle and growth potential;
prioritizing investments for growth in our enterprise businesses; further reducing costs and improving
efficiencies across the company; rounding out our talented executive team; and continuing to return significant
cash to shareholders.
CRITICAL ACCOUNTING ESTIMATES
The preparation of our Consolidated Financial Statements and related notes included in this annual report in
accordance with generally accepted accounting principles in the United States, requires us to make estimates,
including judgments and assumptions, that affect the reported amounts of assets, liabilities, revenue, and
expenses, and related disclosure of contingent assets and liabilities. We have based our estimates on historical
experience and on various assumptions that we believe to be reasonable under the circumstances. We evaluate
our estimates on a regular basis and make changes accordingly. Historically, our critical accounting estimates
have not differed materially from actual results; however, actual results may differ from these estimates under
different conditions. If actual results differ from these estimates and other considerations used in estimating
amounts reflected in our Consolidated Financial Statements included in this annual report, the resulting changes
could have a material adverse effect on our Consolidated Statements of Income, and in certain situations, could
have a material adverse effect on our liquidity and financial condition.
A critical accounting estimate is based on judgments and assumptions about matters that are uncertain at the
time the estimate is made. Different estimates that reasonably could have been used or changes in accounting
estimates could materially impact our operating results or financial condition. We believe that the estimates
described below represent our critical accounting estimates, as they have the greatest potential impact on our
Consolidated Financial Statements. See also Note 1 of the Notes to Consolidated Financial Statements included
in this annual report.
Revenue recognition
We recognize revenue primarily pursuant to the requirements under the authoritative guidance on software
revenue recognition, and any applicable amendments or modifications. Revenue recognition requirements in the
software industry are very complex and require us to make estimates.
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