Symantec 2014 Annual Report Download - page 122
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Operating expenses
Fiscal Change in Fiscal Change in Fiscal
2014 $ % 2013 $ % 2012
(Dollars in millions)
Sales and marketing expense $ 2,435 $ (317) (12)% $ 2,752 $ (37) (1)% $ 2,789
Percentage of total net revenue 36 %40 %41 %
Research and development expense $ 1,038 $ 26 3 % $ 1,012 $ 43 4 % $ 969
Percentage of total net revenue 16 %15 %14 %
General and administrative expense $ 445 $ (5) (1)% $ 450 $ 13 3 % $ 437
Percentage of total net revenue 7 %7%6%
Amortization of intangible assets $ 156 $ (130) (45)% $ 286 $ (3) (1)% $ 289
Percentage of total net revenue 2 %4%4%
Restructuring and transition $ 270 $ 145 116 % $ 125 $ 69 123 % $ 56
Percentage of total net revenue 4 %2%1%
Impairment of intangible assets $ - $ - * $ - $ (4) * $ 4
Percentage of total net revenue -%-%-%
Total $ 4,344 $ (281) (6)% $ 4,625 $ 81 2 % $ 4,544
* Percentage not meaningful
Fiscal 2014 compared to Fiscal 2013:
Sales and marketing expense decreased for fiscal 2014, primarily due to lower salaries and wages of $159
million resulting from lower headcount and lower advertising and promotion expenses of $146 million. Our sales
and marketing expense in fiscal 2014 was also impacted by the changes in our go-to-market strategy as described
above under “Overview-Strategy-Redesigning our Go-To-Market-Strategy.”
The increase in research and development for fiscal 2014, was primarily due to higher equipment cost
including depreciation and amortization of $23 million.
Amortization of intangible assets decreased by $130 million primarily as a result of various customer
relationship intangibles becoming fully amortized early in fiscal 2014.
Restructuring and transition costs consist of severance, facilities, transition and other related costs
associated with our organization simplification. For fiscal 2014, we recognized $212 million of restructuring, $49
million in transition costs related to our ERP system and $9 million in other transition costs. For further
information on restructuring and transition costs, see Note 7 of the Notes to Consolidated Financial Statements.
We experienced favorable foreign currency effects on our operating expenses of $42 million in the year
ended March 28, 2014, as compared to the same period last year.
Fiscal 2013 compared to Fiscal 2012:
Sales and marketing expense decreased primarily due to lower advertising and promotional expenses of $73
million, which was attributed to lower placement fees. This decrease was offset by higher salaries and wages of
$53 million due to higher headcount.
Research and development expense increased due to higher salaries and wages expenses of $36 million,
which was attributed to increased headcount to support our continued investment in product development.
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