Symantec 2006 Annual Report Download - page 109

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SYMANTEC CORPORATION
Notes to Consolidated Financial Statements Ì (Continued)
restructuring reserve assumed from Veritas in connection with the acquisition, $21 million related to
restructuring reserves established in fiscal 2006, and an insignificant amount related to our fiscal 2002
restructuring plan. Restructuring reserves established in fiscal 2006 include $9 million related to our 2006
restructuring plan, $3 million related to restructuring costs as a result of the Veritas acquisition, and $9 million
related to restructuring costs as a result of our other acquisitions.
Restructuring expense
In fiscal 2006, we recorded $25 million of restructuring costs, of which $18 million related to severance,
associated benefits, and outplacement services and $7 million related to excess facilities. These restructuring
costs reflect the termination of 446 redundant employees located in the United States, Europe, and Asia
Pacific and the consolidation of certain facilities in Europe and Asia Pacific. In fiscal 2006, we paid
$16 million related to this restructuring reserve. We expect the remainder of the costs to be paid by the end of
fiscal 2018.
In fiscal 2005, we recorded $3 million of restructuring charges, of which $2 million was for costs of
severance, related benefits, and outplacement services related to the termination of 51 employees located in
the U.S. and Europe due to the consolidation and relocation of engineering and development functions. In
addition we recorded an increase to the accrual relating to the fiscal 2002 restructuring plan of $1 million due
to the termination of a sublease agreement for facilities in Eugene, Oregon. Substantially all of the costs had
been paid by March 31, 2005.
In fiscal 2004, we recorded $1 million of restructuring charges for costs of severance, related benefits, and
outplacement services for a member of our senior management team, as well as an increase to the accrual for
excess facilities in Eugene, Oregon in connection with our fiscal 2002 restructuring plan. Substantially all of
the costs had been paid by March 31, 2005.
The fiscal 2002 restructuring reserve consisted of the costs of excess facilities in Europe and Eugene,
Oregon, net of sublease income. In fiscal 2006, we paid $2 million upon termination of the remaining leases.
Substantially all of the costs had been paid by March 31, 2006.
Amounts related to restructuring expense are included in Restructuring in the Consolidated Statements
of Income.
Acquisition-related restructuring
In connection with the Veritas acquisition on July 2, 2005, we assumed a restructuring reserve of
$53 million related to the 2002 Veritas facilities restructuring plan. From the date of the acquisition through
March 31, 2006, we paid $25 million related to this reserve. Also during this period, we reduced this reserve by
$19 million as we returned some facilities to use and negotiated early lease terminations on others for amounts
less than originally accrued. The remaining reserve amount of $9 million will be paid over the remaining lease
terms, ending at various dates through 2022. The majority of costs are currently scheduled to be paid by the
end of fiscal 2011.
With regard to the 2002 Veritas facilities restructuring plan, our actual costs have varied and could
continue to vary significantly from our current estimates, depending, in part, on the commercial real estate
market in the applicable metropolitan areas, our ability to obtain subleases related to these facilities and the
time period to do so, the sublease rental market rates, and the outcome of negotiations with lessors regarding
terminations of some of the leases. Some of these factors are beyond our control. Adjustments to the 2002
Veritas facilities restructuring plan will be made if actual lease exit costs or sublease income differ materially
from amounts currently expected.
In connection with the Veritas acquisition on July 2, 2005, we recorded $7 million of restructuring costs,
of which $2 million related to excess facilities costs and $5 million related to severance, associated benefits,
and outplacement services. These restructuring costs reflect the termination of redundant employees and the
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