Symantec 2006 Annual Report Download - page 38

Other fiscal 2006 acquisitions
During fiscal 2006, in addition to Veritas, we completed acquisitions of five privately-held companies and
one public company for $627 million in cash, including acquisition-related expenses resulting from financial
advisory, legal and accounting services, duplicate sites, and severance costs. XtreamLok Pty. Ltd and
substantially all of WholeSecurity, Inc. are included in our Consumer Products segment, Sygate Technologies,
Inc., the remainder of WholeSecurity, BindView Development Corporation, and IMlogic, Inc. are included in
our Enterprise Security Segment, and Relicore, Inc. is included in our Storage and Server Management
segment.
Our Business
Our operating segments are significant strategic business units that offer different products and services,
distinguished by customer needs. As of March 31, 2006, we had 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.
Beginning in the June 2006 quarter, we will consolidate our Enterprise Security, Data Protection, and
Storage and Server Management segments into two segments Ì the Security and Data Management segment
and the Data Center Management segment.
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