Symantec 2002 Annual Report Download - page 45

April 1, 2002, the net balance of workforce-in-place of approximately $3.9 million, net of a deferred tax
liability, will be included with goodwill and will no longer be amortized but will be subject to an annual
impairment test.
For further discussion on acquired product rights and related amortization, see Notes 3 and 4 of Notes to
Consolidated Financial Statements of this Form 10-K.
Research and Development Expenses
We charge research and development expenditures to operations as incurred. As a percentage of net
revenues, research and development expenses remained Öat at 15% during Ñscal 2002, 2001 and 2000.
Although research and development expenses remained Öat as a percentage of net revenues, absolute
dollars increased 29% to approximately $164.0 million during Ñscal 2002 from $126.7 million during Ñscal
2001. The increase was primarily a result of salary increases and other employee related expenses,
infrastructure related expenditures and a full year of AXENT related research and development expenses as
compared to approximately three months during Ñscal 2001.
Research and development expenses increased 17% to approximately $126.7 million during Ñscal 2001
from $108.4 million during Ñscal 2000. The increase was a result of Enterprise Security segment hiring, salary
increases and other employee related expenses and AXENT related research and development expenses that
were included from the date of acquisition. This increase was partially oÅset by the lack of expenses during
Ñscal 2001 associated with the divested Visual Cafπe and ACT! product lines and the patent claim settlements
in the Consumer Products segment.
Sales and Marketing Expenses
Sales and marketing expenses as a percentage of net revenues were 40% during Ñscal 2002 and were Öat
at 41% during Ñscal 2001 and 2000. Sales and marketing expenses were approximately $428.5 million,
$350.0 million and $306.8 million during Ñscal 2002, 2001 and 2000, respectively. The absolute dollar increase
in sales and marketing expenses during Ñscal 2002 as compared to Ñscal 2001 was primarily related to
Enterprise Security segment hiring, salary and commission increases, outside services for consultants and
contractors, infrastructure related expenditures, and a full year of AXENT related sales and marketing
expenses as compared to approximately three months during Ñscal 2001.
The absolute dollar increase in sales and marketing expenses during Ñscal 2001 as compared to Ñscal
2000 was also due to increased Enterprise Security segment hiring, increase in salaries, commissions and other
performance based compensation, and AXENT related sales and marketing expenses which were included
from the date of acquisition.
General and Administrative Expenses
General and administrative expenses as a percentage of net revenues remained Öat at 5% during Ñscal
2002 and 2001 and were 6% during Ñscal 2000.
General and administrative expenses were approximately $53.9 million, $44.8 million and $42.2 million
during Ñscal 2002, 2001 and 2000, respectively. The absolute dollar increase in general and administrative
expenses during Ñscal 2002 as compared to Ñscal 2001 was primarily due to a full year of AXENT related
general and administrative expenses as compared to approximately three months during Ñscal 2001, salary
increases, legal fees, infrastructure related expenditures and bad debt expense, oÅset by a reduction of other
general and administrative expenses.
General and administrative expenses in absolute dollars increased during Ñscal 2001 as compared to Ñscal
2000, primarily due to an increase in salary related expenses and other general and administrative expenses,
oÅset by a reduction in bad debt expenses.
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