Symantec 2003 Annual Report Download - page 71

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Symantec 2003 69
We also reclassified from other accrued expenses to other long-term
obligations the long-term portion of certain lease payments related to
facilities abandoned during the March 2002 quarter. We have reclas-
sified the related balances as of March 31, 2002 in the consolidated
balance sheet.
Subsequent to March 31, 2002, we revised our methodology for allocat-
ing certain costs, including the allocation of technical support costs
between sales and marketing expenses and cost of revenues and the
allocation of certain general and administrative expenses between cost
of revenues and operating expenses. As a result, we have reclassified
the related balances for the years ended March 31, 2002 and 2001 in
the consolidated statements of operations and in Note 2.
A summary of reclassifications of the consolidated balance sheet as of
March 31, 2002 and the consolidated statements of operations for the
years ended March 31, 2002 and 2001 was as follows:
CONSOLIDATED BALANCE SHEET
March 31, 2002
As Reclassified
As Originally in 2003
(IN THOUSANDS) Reported Form 10-K
Deferred income taxes (long-term) $ 3,152 $ 6,207
Acquired product rights, net 72,193 65,219
Goodwill, net 521,949 525,868
Other accrued expenses 70,745 66,422
Total current liabilities 579,098 574,775
Other long-term obligations $ 3,631 $ 7,954
CONSOLIDATED STATEMENTS OF OPERATIONS
Year Ended March 31,
2002 2001
As Reclassified As Reclassified
As Originally in 2003 As Originally in 2003
(IN THOUSANDS) Reported Form 10-K Reported Form 10-K
Cost of revenues $194,610 $195,903 $123,860 $131,999
Gross margin 876,828 875,535 729,694 721,555
Sales and marketing 428,495 425,951 349,921 341,456
General and administrative 53,880 55,131 44,784 45,110
Total operating expenses $868,787 $867,494 $620,094 $611,955
Note 18. Subsequent Events
On April 17, 2003, we purchased certain assets related to Roxio Inc.’s
GoBack computer recovery software business for approximately
$13.0 million in cash.
Also, on May 13, 2003, we entered into an agreement to acquire
Nexland, Inc., a technology driven Internet security company whose
Internet Protocol based networking appliances are installed at enter-
prise branches and telecommuter offices worldwide, for approximately
$19.6 million in cash. We expect to complete the acquisition in the first
quarter of fiscal 2004.
Schedule II. Valuation and Qualifying Accounts
Balance at Charged to Balance at
Beginning Costs and End
(IN THOUSANDS) of Period Expenses* Write-offs of Period
Allowance for doubtful accounts:
Year ended March 31, 2001 $ 6,444 $3,287 $(1,392) $ 8,339
Year ended March 31, 2002 8,339 2,349 (607) 10,081
Year ended March 31, 2003 10,081 456 (784) 9,753
*During fiscal 2001, amount represents a balance sheet increase in allowance for doubtful accounts as a result of a balance acquired from our acquisition of AXENT. Bad debt expense was
not significant during fiscal 2001.