Symantec 2013 Annual Report Download - page 143

Fiscal 2013 compared to Fiscal 2012:
Sales and marketing expense decreased primarily due to lower advertising and promotional expenses of $73
million, which was attributable to lower placement fees. Research and development expense increased due to
higher salaries and wages expenses of $36 million, which was attributable to increased headcount to support our
continued investment in product development. General and administrative expense remained relatively
consistent.
Intangible assets are comprised of customer relationships and trade names. Amortization of intangible assets
remained consistent.
Restructuring and transition costs consist of severance, facilities, transition and other related costs. For fiscal
2013, we recognized $114 million of transition and other related costs, $10 million of severance, and $1 million
of facilities costs. Transition and other related costs consist of severance costs associated with acquisition
integrations and consulting charges associated with the planning and design phase of a new enterprise resource
planning system. In the fourth quarter of fiscal 2013, we announced our strategic direction to focus on key
strategic customer offerings and simplify our GTM strategy and organizational structure. In order to deliver on
this focus, we initiated a restructuring plan to reduce the layers of management and redundant personnel resulting
in headcount reductions across the company beginning in the fourth quarter of fiscal 2013. This plan is expected
to be completed in fiscal 2014 and we expect to incur significant restructuring charges thereunder. For further
information on restructuring and transition costs, see Note 7 of the Notes to Consolidated Financial Statements in
this annual report.
Fiscal 2012 compared to Fiscal 2011:
Sales and marketing expense increased due to increased salaries and wages of $140 million, which was
attributable to increased headcount to support the growth of our business. Research and development expense
increased primarily due to increased salaries and wages of $104 million, which was attributable to increased
headcount to support our continued investment in product development and absorption of the Clearwell
acquisition into our operations. General and administrative expense increased due to higher salaries and wages,
external professional services, and equipment expenses of $45 million.
Amortization of intangible assets increased primarily due to the acquisition of Clearwell.
For fiscal 2012, we recognized restructuring and transition costs of $29 million for severance, $19 million of
transition and other related costs, and $8 million of facilities costs. The transition charges incurred were primarily
due to the planning and design phase of implementing a new enterprise resource planning system. For fiscal
2011, we recognized $47 million of severance, $27 million of facilities costs, and $18 million of transition and
other related costs.
For fiscal 2012 and 2011, we recorded impairment charges of $4 million and $27 million, respectively,
which reduced the gross carrying value of indefinite-lived trade names.
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