Symantec 2006 Annual Report Download - page 63

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We believe that these foreign exchange forward contracts do not subject us to undue risk from the
movement of foreign exchange rates because gains and losses on these contracts are offset by losses and gains
on the underlying assets and liabilities. All contracts have a maturity of no more than 35 days. Gains and
losses are accounted for as Interest and other income, net each period. We regularly review our hedging
program and may make changes as a result of this review.
Item 8. Financial Statements and Supplementary Data
Annual Financial Statements
The consolidated financial statements and related disclosures included in Part IV, Item 15 of this annual
report are incorporated by reference into this Item 8.
Selected Quarterly Financial Data
We have a 52/53-week fiscal accounting year. Accordingly, we have presented quarterly fiscal periods,
each comprised of 13 weeks, as follows:
Fiscal 2006 Fiscal 2005
Mar. 31, Dec. 31, Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30, Jun. 30,
2006 2005 2005 2005 2005 2004 2004 2004
(In thousands, except net income (loss) per share)
Net revenuesÏÏÏÏÏÏÏÏÏÏÏ $1,238,560 $1,149,026 $1,055,864 $699,942 $712,678 $695,224 $618,313 $556,634
Gross profit ÏÏÏÏÏÏÏÏÏÏÏÏ 955,406 880,548 742,422 583,147 591,547 573,726 509,094 456,373
Stock-based
compensation
expense(a) ÏÏÏÏÏÏÏÏÏÏ 9,459 12,329 13,389 2,785 2,844 1,041 639 Ì
Acquired in-process
research and
development(b) ÏÏÏÏÏÏ 1,100 Ì 284,000 Ì Ì 1,218 Ì 2,262
Restructuring ÏÏÏÏÏÏÏÏÏÏ 4,426 15,566 1,452 3,474 Ì Ì 1,916 860
Patent settlement(c) ÏÏÏÏ Ì Ì Ì 2,200 375ÌÌÌ
Integration planning(d) ÏÏ 587 2,185 5,253 7,901 3,494 Ì Ì Ì
Operating income (loss) ÏÏ 180,333 119,661 (258,347) 232,318 231,822 228,069 192,117 167,258
Net income (loss) ÏÏÏÏÏÏ 118,813 90,734 (251,328) 198,633 119,682 163,577 135,623 117,277
Net income (loss) per
share Ì basic(e) ÏÏÏÏÏ $ 0.11 $ 0.08 $ (0.21) $ 0.28 $ 0.17 $ 0.24 $ 0.22 $ 0.19
Net income (loss) per
share Ì diluted(e)ÏÏÏÏ $ 0.11 $ 0.08 $ (0.21) $ 0.27 $ 0.16 $ 0.22 $ 0.19 $ 0.16
(a) In connection with our acquisition of Veritas in fiscal 2006, we assumed Veritas stock options and
restricted stock units and converted them into options to purchase Symantec common stock and
Symantec restricted stock units. In connection with the Brightmail acquisition during fiscal 2005, we
assumed unvested Brightmail stock options and converted them into unvested options to purchase
Symantec common stock. For more information, see Note 3 of the Notes to Consolidated Financial
Statements. In addition, in fiscal 2006 and 2005, we issued restricted stock and restricted stock units to
certain officers and employees. For more information, see Note 11 of the Notes to Consolidated Financial
Statements.
(b) In fiscal 2006, we wrote off $284 million and $1 million of IPR&D in connection with our acquisitions of
Veritas and BindView, respectively. In fiscal 2005, we wrote off $3 million of IPR&D in connection with
our acquisition of Brightmail.
(c) During fiscal 2006, we recorded patent settlement costs and entered into a cross-licensing agreement with
Altiris, Inc. For more information, see Note 4 of the Notes to Consolidated Financial Statements.
(d) During fiscal 2006, we acquired Veritas. In connection with this acquisition, we recorded integration
planning costs. For more information, see Note 3 of the Notes to Consolidated Financial Statements.
57