Symantec 2016 Annual Report Download - page 127

2015 compared to 2014
Our cost of revenues decreased $64 million for fiscal 2015 compared to fiscal 2014 primarily due to
favorable currency effects, a decrease in OEM royalty fees, and a decrease in service related and content delivery
expenses in our Consumer Security segment.
Operating expenses by fiscal year
Change in %
2016 2015 2014 2016 v 2015 2015 v 2014
(Dollars in millions)
Sales and marketing expense $ 1,292 $ 1,650 $ 1,766 (22)% (7)%
Research and development expense 748 812 722 (8)% 12%
General and administrative expense 295 362 420 (19)% (14)%
Amortization of intangible assets 57 87 93 (34)% (6)%
Restructuring, separation, and transition 136 164 247 (17)% (34)%
Total $ 2,528 $ 3,075 $ 3,248 (18)% (5)%
2016 compared to 2015
The overall decreases in operating expenses for fiscal 2016 compared to fiscal 2015 were primarily due to a
decrease in unallocated corporate charges previously allocated to Veritas. These unallocated corporate charges
are included in expenses from continuing operations. Refer to Note 8 of the Notes to Consolidated Financial
Statements in this annual report for more information about our unallocated corporate charges. The impacts of
the unallocated corporate charges are discussed below. In addition to the impacts of unallocated corporate
charges, we experienced favorable foreign currency effects on our operating expenses for fiscal 2016 compared
to fiscal 2015.
Sales and marketing expense decreased $358 million primarily due to a reduction of unallocated corporate
charges of $328 million.
Research and development expense decreased $64 million primarily due to a reduction of unallocated
corporate charges of $76 million.
General and administrative expenses decreased $67 million primarily due to a reduction of unallocated
corporate charges of $91 million, partially offset by an increase in stock-based compensation expense.
Amortization of intangible assets decreased $30 million primarily due to certain intangible assets becoming
fully amortized during fiscal 2015.
Restructuring, separation, and transition costs include severance, facilities, separation, transition and other
related costs. For fiscal 2016, we incurred $44 million of restructuring costs, $14 million in separation costs, and
$78 million in transition costs. For further information on restructuring, separation, and transition costs, see Note
6 of the Notes to Consolidated Financial Statements in this annual report.
2015 compared to 2014
We experienced favorable foreign currency effects on our operating expenses in fiscal 2015 as compared to
fiscal 2014.
Sales and marketing expense decreased $116 million in fiscal 2015, primarily due to lower advertisement
and promotions expenses partly offset by higher unallocated corporate charges of $67 million.
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