Symantec 2006 Annual Report Download - page 114

SYMANTEC CORPORATION
Notes to Consolidated Financial Statements Ì (Continued)
financial results, which allegedly contained revenue recognized from contracts that were unsigned or lacked
essential terms. The defendants to this matter filed a motion to dismiss the CAC in July 2005; the motion was
denied in May 2006. The defendants to this matter intend to defend this case vigorously.
We are also involved in a number of other judicial and administrative proceedings that are incidental to
our business. Although adverse decisions (or settlements) may occur in one or more of the cases, it is not
possible to estimate the possible loss or losses from each of these cases. The final resolution of these lawsuits,
individually or in the aggregate, is not expected to have a material adverse affect on our financial condition or
results of operations. We have accrued estimated legal fees and expenses related to certain of these matters;
however, actual amounts may differ materially from those estimated amounts.
Note 15. Segment Information
Our operating segments are significant strategic business units that offer different products and services,
distinguished by customer needs. As of March 31, 2006, we operated in six operating segments:
‚Consumer Products. Our Consumer Products segment focuses on delivering our Internet security and
problem-solving products to individual users, home offices, and small businesses.
‚Enterprise Security. Our Enterprise Security segment provides security solutions for all tiers of a
network: at the server tier behind the gateway and at the client tier, including desktop personal
computers, or PCs, laptops, and handhelds.
‚Data Protection. Our Data Protection segment provides software products designed to protect,
backup, archive, and restore data across a broad range of computing environments from large corporate
data centers to remote groups and PC clients, such as desktop and laptop computers.
‚Storage and Server Management. Our Storage and Server Management segment provides solutions
to simplify and automate the administration of heterogeneous storage and server environments and
provide continuous availability of mission-critical applications.
‚Services. Our Services segment provides a full range of consulting and educational services to assist
our customers in assessing, architecting, implementing, supporting, and maintaining their security,
storage, and infrastructure software solutions.
‚Other. Our Other segment is comprised of sunset products and products nearing the end of their life
cycle and also includes all indirect costs; general and administrative expenses; amortization of acquired
product rights, other intangible assets, and other assets; and charges, such as acquired in-process
research and development, patent settlement, amortization of deferred compensation, and restructur-
ing, that are not charged to the other operating segments. The expenses of the former Veritas sales
force that cannot be allocated to a specific operating segment are also reported in the Other segment.
We expect this treatment to continue until we have completed the realignment of our combined sales
force.
In the quarter ended September 2005, we renamed the Enterprise Administration segment to be the
Storage and Server Management segment and added the Data Protection segment. In the quarter ended June
2005, we moved Managed Security Services from the Services segment to the Enterprise Security segment
and moved the services-related revenue previously included in the Storage and Server Management segment
to the Services segment. Net revenues for fiscal 2005 and 2004 have been reclassified to conform to our
current presentation. Specifically, we reclassified $31 million and $27 million of Managed Security Services
revenue from the Services segment to the Enterprise Security segment and $5 million and an insignificant
amount of services-related revenue from the Storage and Server Management segment to the Services
segment for fiscal 2005 and 2004, respectively.
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