Symantec 2002 Annual Report Download - page 38

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Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations
Forward-Looking Statements and Factors That May AÅect Future Results
The following discussion contains forward-looking statements that involve known and unknown risks,
uncertainties and other factors that may cause our actual results, levels of activity, performance or
achievements to be materially diÅerent from any future results, levels of activity, performance or achievements
expressed or implied by such forward-looking statements. Such factors include, among others things, those
risk factors set forth in this section and elsewhere in this report. We identify forward-looking statements by
words such as ""may,'' ""will,'' ""should,'' ""could,'' ""expects,'' ""plans,'' ""anticipates,'' ""believes,'' ""estimates,''
""predicts,'' ""potential,'' or ""continue'' or similar terms that refer to the future. We cannot guarantee future
results, levels of activity, performance or achievements.
Overview
Symantec provides a broad range of content and network security software and appliance solutions to
enterprises, individuals and service providers. We are a leading provider of client, gateway and server security
solutions for virus protection, Ñrewall and virtual private network, vulnerability management, intrusion
detection, Internet content and e-mail Ñltering, remote management technologies and security services to
enterprises and service providers around the world. Founded in 1982, we have oÇces in 38 countries
worldwide.
We have a 52/53-week Ñscal accounting year. Accordingly, all references as of and for the periods ended
March 31, 2002, 2001 and 2000 reÖect amounts as of and for the periods ended March 29, 2002, March 30,
2001 and March 31, 2000, respectively. The Ñscal accounting years ended March 29, 2002, March 30, 2001
and March 31, 2000 each comprised 52 weeks of operations.
Revenue Recognition
We derive revenue primarily from sales of packaged software products, perpetual software license
agreements, product maintenance and professional services, and recognize this revenue in accordance with
Statement of Position, or SOP, 97-2, Software Revenue Recognition, as modiÑed by SOP 98-9, and StaÅ
Accounting Bulletin No. 101, Revenue Recognition in Financial Statements, when the following conditions
have been met:
‚ persuasive evidence of an arrangement exists;
‚ passage of title occurs;
‚ delivery has occurred or services have been rendered;
‚ if applicable, customer acceptance has been received;
‚ collection of a Ñxed or determinable license fee is considered reasonably assured; and
‚ if appropriate, reasonable estimates of future product returns have been made.
We sell packaged products through a multi-tiered distribution channel. We defer revenue on all
distribution and reseller channel inventory in excess of speciÑed inventory levels in these channels. We oÅer
the right of return of our products under various policies and programs with our distributors, resellers and end-
user customers. We estimate and record reserves for end-user product returns and channel and end-user
rebates, and we account for these reserves as an oÅset to revenue.
We enter into perpetual software license agreements through direct sales to customers and indirect sales
with distributors and resellers. The license agreements generally include product maintenance agreements, for
which the related revenue is deferred and recognized ratably over the period of the agreements.
Our professional services include consulting, education, and managed security services. We recognize
consulting services revenue as services are performed or upon written acceptance from customers, if
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