Symantec 1997 Annual Report Download - page 53

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SYMANTEC CORPORATION
mately $7.0 million of unamortized software development
costs and approximately $0.6 million of unamortized
purchased product rights, as well as incurring approximately
$2.0 million of legal, accounting and other costs associated
with the transaction.
Note 10. Acquisition, Restructuring
and Other Expenses
Acquisition, restructuring and other expenses consist of
the following:
Year Ended March 31,
(In thousands) 1997 1996 1995
Centralization and
restructuring expenses $3,185 $ — $ —
Write off of acquired in-process
research and development costs 3,050 — —
Write off of equity investment 1,750 — —
Fast Track, Inc.
acquisition expenses 600 — —
Delrina acquisition —22,000 —
Loss on sale of Time Line
Solutions Corporation assets —2,653 —
Relocation of certain research
and development activities —2,229 —
SLR acquisition ——545
Central Point acquisition —(2,300) 9,000
Legal fees and expenses —2,000 —
Other —1,035 —
Total acquisition, restructuring
and other expenses $8,585 $ 27,617 $ 9,545
During fiscal 1997, Symantec recorded a $1.8 million
charge in connection with the write-off of an equity invest-
ment in a privately held company and a $3.1 million charge
for the write off of certain in-process research and develop-
ment costs acquired by the Company. Additionally, during
fiscal 1997, the Company recorded a charge of $3.2 million,
which included $2.4 million for personnel severance and
outplacement charges, for costs related to the restructuring
of certain domestic and international sales and research and
development operations, settlement of the Carmel lawsuit
(See Note 11 to Notes to Consolidated Financial Statements)
and other expenses. The restructuring plans were substan-
tially completed during fiscal 1997. Symantec recorded total
acquisition charges of $0.6 million in the quarter ended June
30, 1996 in connection with the acquisition of Fast Track, Inc.
In connection with the acquisition of Delrina (See Note 2
to Notes to Consolidated Financial Statements) in fiscal 1996,
Symantec recorded total acquisition charges of $22.0 million,
which included $8.8 million for legal, accounting and finan-
cial advisory services, $6.4 million for the elimination of
duplicative and excess facilities and equipment, $3.7 million for
personnel severance and outplacement expenses and $3.1 mil-
lion for the consolidation and discontinuance of certain
operational activities and other acquisition-related expenses.
In November 1995, Symantec sold the assets of Time
Line Solutions Corporation, a wholly-owned subsidiary,
to a group comprised of Time Line Solution Corporation’s
management and incurred a $2.7 million loss on the sale.
During fiscal 1996, Symantec also expensed $1.0 million,
which included a loss on the sale of certain assets and liabilities
of a subsidiary and other expenses.
In February 1995, Symantec announced a plan to consoli-
date certain research and development activities. This plan
was designed to gain greater synergy between the Company’s
Third Generation Language and Fourth Generation Language
development groups. During fiscal 1996, the Company
incurred $2.2 million for the relocation costs of moving
equipment and personnel.
In the fourth quarter of fiscal 1996, the Company
recorded $2.0 million for estimated legal fees expected to
be incurred in connection with a securities class action
complaint filed in March 1996 and other legal expenses (See
Note 11 to Consolidated Financial Statements).
In connection with the acquisitions of Central Point and
SLR (See Note 2 to Consolidated Financial Statements),
Symantec recorded total acquisition charges of $9.5 million
in fiscal 1995. The charges included $3.2 million for legal,
accounting and financial advisory services, $1.0 million for
the write-off of duplicative product-related expenses and
modification of certain development contracts, $0.9 million
for the elimination of duplicative and excess facilities, $3.1
million for personnel severance and outplacement expenses
and $1.3 million for the consolidation and discontinuance of
certain operational activities and other acquisition related
expenses. During fiscal 1996, the Company recognized a
reduction in accrued acquisition, restructuring and other
expenses of $2.3 million as actual costs incurred were less than
costs previously accrued by the Company.
As of March 31, 1997, total accrued cash related acquisi-
tion and restructuring expenses were $3.8 million and
included $0.2 million for estimated legal fees and expenses, $0.4
million for the elimination of duplicative and excess facilities
and $3.2 million for other acquisition related expenses.