Symantec 2006 Annual Report Download - page 54

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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 the 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
consolidation of certain facilities as a result of the Veritas acquisition. In fiscal 2006, we paid $4 million
related to this reserve. We expect the remainder of the costs to be paid by the end of fiscal 2012.
For information on the acquisition related costs incurred in connection with the Veritas acquisition, see
Note 3 of the Notes to Consolidated Financial Statements.
In connection with our other acquisitions in fiscal 2006, we recorded $12 million of restructuring costs, of
which $8 million related to severance, associated benefits, and outplacement services and $4 million related to
excess facilities costs. These restructuring costs reflect the termination of redundant employees and the
consolidation of certain facilities as a result of our other acquisitions. In fiscal 2006, we paid $3 million in
connection with this reserve. We expect the remainder of the costs to be paid by the end of fiscal 2012.
Amounts related to acquisition-related restructuring are reflected in the purchase price allocation of the
applicable acquisition.
Integration planning
In connection with our acquisition of Veritas, we recorded integration planning costs of $16 million in
fiscal 2006 and $3 million in fiscal 2005, which consisted primarily of costs incurred for consulting services and
other professional fees.
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