Symantec 2003 Annual Report Download - page 58

56 Symantec 2003
aggregate maximum of $57.0 million. Because the royalties are not
guaranteed and the quarterly amounts to be received are not deter-
minable until earned, we are recognizing these royalties as payments
are due. We recorded approximately $10.5 million, $15.5 million and
$19.3 million of royalty payments during fiscal 2003, 2002 and 2001,
respectively, in income, net of expense, from sale of technologies and
product lines. At the end of the four-year period, Interact has the exclu-
sive option, for a period of 30 days, to purchase the licensed technology
from us for $60 million less all royalties paid to us to date.
Other Royalties and Transition Fees In accordance with individual
transition agreements, PassGo and Interact paid us royalties and/or fees
for invoicing, collecting receivables, shipping and other operational and
support activities. We recorded approximately $0.8 million, $0.7 million
and $0.8 million for these royalties and/or fees during fiscal 2003, 2002
and 2001, respectively, in income, net of expense, from sale of technolo-
gies and product lines.
Divestiture of Electronic Forms During September 1996, we sold our
electronic forms software product line and related tangible assets to
JetForm Corporation, payable in installments through the June 2000
quarter. We received installment payments from JetForm of approxi-
mately $0.4 million during fiscal 2001. Due to the uncertainty regarding
the ultimate collectibility of these installments, we recognized the
related amounts as payments were due and collectibility was assured
from JetForm. Installment payments from JetForm were recorded in
income, net of expense, from sale of technologies and product lines.
The components of income, net of expense, from sale of technologies
and product lines were as follows:
Year Ended March 31,
(IN THOUSANDS) 2003 2002 2001
Royalties from Interact $10,500 $15,500 $19,250
Gain on divestiture of Web access
management product line –392 –
Amortization and write-off of
developed technology related
to Web access management
product line (4,462) (1,050) –
Other royalties and transition fees 840 694 801
Payments from JetForm ––397
Income, net of expense, from sale
of technologies and product lines $6,878 $15,536 $20,448
Note 4. Goodwill, Acquired Product Rights and Other
Intangible Assets
With the adoption of SFAS No. 142, we ceased the amortization of good-
will and recharacterized acquired workforce-in-place (and the related
deferred tax liability) as goodwill on April 1, 2002. Accordingly, there
was no amortization of goodwill and acquired workforce-in-place during
fiscal 2003.
The following table presents a reconciliation of previously reported net
income (loss) and net income (loss) per share to the amounts adjusted
for the exclusion of the amortization of goodwill and acquired work-
force-in-place, net of the related income tax effect:
Year Ended March 31,
(IN THOUSANDS, EXCEPT PER SHARE DATA) 2003 2002 2001
Net income (loss), as reported $248,438 $ (28,151) $ 63,936
Amortization of goodwill and acquired workforce-in-place, net of tax benefit of $0, $2,745 and
$1,977, respectively –196,894 70,271
Net income, as adjusted $248,438 $168,743 $134,207
Net income (loss) per share – basic, as reported $1.71 $(0.20) $ 0.49
Amortization of goodwill and acquired workforce-in-place, net of tax benefit –1.38 0.55
Net income per share – basic, as adjusted 1.71 1.18 1.04
Effect of dilutive securities (0.17) (0.08) (0.06)
Net income per share – diluted, as adjusted $1.54 $1.10 $ 0.98
Shares used to compute net income (loss) per share – basic, as adjusted 145,395 143,604 129,474
Shares issuable from assumed conversion of options 7,748 7,593 7,000
Shares issuable from assumed conversion of convertible subordinated notes 17,575 7,580 –
Shares used to compute net income per share – diluted, as adjusted 170,718 158,777 136,474