Symantec 2002 Annual Report Download - page 84

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SYMANTEC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued)
Note 2. Statement of Operations Information
Year Ended March 31,
2002 2001 2000
(In thousands)
Technical support costs included in sales and marketing ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $18,415 $26,968 $32,427
Advertising expense ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $34,657 $46,884 $43,630
Technical support costs, included in sales and marketing, relate to the estimated cost of providing free
post-contract support and were accrued at the time of product sale. Advertising expenditures were charged to
operations as incurred.
Note 3. Acquisitions and Divestitures
Acquisition of Lindner & Pelc
On August 30, 2001, we purchased 100% of the outstanding shares of Lindner & Pelc Consult GmbH, a
security services and implementation company in Berlin, Germany, for approximately $2.2 million. The
transaction was accounted for as a purchase and we recorded approximately $2.1 million in goodwill. As we
acquired Lindner & Pelc subsequent to June 30, 2001, the related goodwill will not be amortized, but will be
subject to an annual impairment test in accordance with SFAS No. 142. Under the terms of the agreement,
we may also be liable for contingency payments based on targeted future sales through September 2004. The
maximum aggregate amount of such contingency payments is approximately $2.0 million.
Acquisition of Foster-Melliar's Enterprise Security Management Division
On July 11, 2001, we acquired the enterprise security management division of Foster-Melliar Limited, an
IT services company located in Johannesburg, South Africa. We paid approximately $1.5 million for these
assets and the IT services business. The transaction was accounted for as a purchase and we recorded
approximately $1.5 million of goodwill. As we acquired Foster-Melliar's enterprise security management
division subsequent to June 30, 2001, the related goodwill will not be amortized, but will be subject to an
annual impairment test in accordance with SFAS No. 142. Under the terms of the agreement, we may also be
liable for contingency payments based on targeted future sales through Ñscal year 2004. The maximum
aggregate amount of such contingency payments is $1.5 million. During the March 2002 quarter, an amount of
$500,000 was recorded as goodwill, as it was determined that such amounts will be paid. The amount of
$500,000 represents contingency payments, of which the entire amount remains as an accrual as of March 31,
2002.
Acquisition of AXENT
On December 18, 2000, we acquired 100% of the outstanding common stock of AXENT Technologies,
Inc. by issuing approximately 29,056,000 shares of our common stock to AXENT shareholders. We also
assumed all of the outstanding AXENT employee stock options valued at approximately $87.0 million. A
valuation specialist used our estimates to establish the amount of acquired in-process research and
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