| Statement of Financial Position, Classified (USD $) | |||||||||||||||||||
| In Millions | Oct. 02, 2009
| Apr. 03, 2009
| |||||||||||||||||
| ASSETS: | |||||||||||||||||||
| Cash and cash equivalents | $2,314 | $1,793 | |||||||||||||||||
| Short-term investments | 18 | 199 | |||||||||||||||||
| Trade accounts receivable, net | 688 | 837 | |||||||||||||||||
| Inventories | 23 | 27 | |||||||||||||||||
| Deferred income taxes | 178 | 163 | |||||||||||||||||
| Other current assets | 272 | 278 | [1] | ||||||||||||||||
| Total current assets | 3,493 | 3,297 | [1] | ||||||||||||||||
| Property and equipment, net | 994 | 973 | |||||||||||||||||
| Intangible assets, net | 1,380 | 1,639 | |||||||||||||||||
| Goodwill | 4,596 | 4,561 | |||||||||||||||||
| Investment in joint venture | 72 | 97 | |||||||||||||||||
| Long-term deferred income taxes | 6 | 7 | |||||||||||||||||
| Other long-term assets | 70 | 64 | [1] | ||||||||||||||||
| Total assets | 10,611 | 10,638 | [1] | ||||||||||||||||
| LIABILITIES: | |||||||||||||||||||
| Accounts payable | 218 | 190 | |||||||||||||||||
| Accrued compensation and benefits | 307 | 374 | |||||||||||||||||
| Current deferred revenue | 2,520 | 2,644 | |||||||||||||||||
| Income taxes payable | 24 | 44 | |||||||||||||||||
| Other current liabilities | 304 | 261 | |||||||||||||||||
| Total current liabilities | 3,373 | 3,513 | |||||||||||||||||
| Convertible senior notes | 1,818 | 1,766 | [1] | ||||||||||||||||
| Long-term deferred revenue | 385 | 419 | |||||||||||||||||
| Long-term deferred tax liabilities | 181 | 181 | |||||||||||||||||
| Long-term income taxes payable | 588 | 522 | |||||||||||||||||
| Other long-term liabilities | 65 | 90 | |||||||||||||||||
| Total liabilities | 6,410 | 6,491 | [1] | ||||||||||||||||
| STOCKHOLDERS' EQUITY: | |||||||||||||||||||
| Common stock | 8 | 8 | |||||||||||||||||
| Additional paid-in capital | 9,124 | 9,289 | [1] | ||||||||||||||||
| Accumulated other comprehensive income | 170 | 186 | |||||||||||||||||
| Accumulated deficit | (5,101) | (5,336) | [1] | ||||||||||||||||
| Total stockholders' equity | 4,201 | 4,147 | [1] | ||||||||||||||||
| Total liabilities and stockholders' equity | $10,611 | $10,638 | [1] | ||||||||||||||||
| [1]Derived from audited financials, as adjusted for the retrospective adoption of new authoritative guidance on convertible debt instruments. See Notes 1 and 4 for further details. | |||||||||||||||||||
| Statement of Income (Including Gross Margin) (USD $) | |||||||||||||||||||
| In Millions, except Per Share data | 3 Months Ended
Oct. 02, 2009 | 3 Months Ended
Oct. 03, 2008 | 6 Months Ended
Oct. 02, 2009 | 6 Months Ended
Oct. 03, 2008 | |||||||||||||||
| Net revenues: | |||||||||||||||||||
| Content, subscriptions, and maintenance | $1,254 | $1,181 | $2,463 | $2,472 | |||||||||||||||
| Licenses | 220 | 337 | 443 | 696 | |||||||||||||||
| Total net revenues | 1,474 | 1,518 | 2,906 | 3,168 | |||||||||||||||
| Cost of revenues: | |||||||||||||||||||
| Content, subscriptions and maintenance | 207 | 212 | 416 | 431 | |||||||||||||||
| Licenses | 5 | 10 | 10 | 18 | |||||||||||||||
| Amortization of acquired product rights | 47 | 87 | 145 | 172 | |||||||||||||||
| Total cost of revenues | 259 | 309 | 571 | 621 | |||||||||||||||
| Gross profit | 1,215 | 1,209 | 2,335 | 2,547 | |||||||||||||||
| Operating expenses: | |||||||||||||||||||
| Sales and marketing | 576 | 597 | 1,135 | 1,260 | |||||||||||||||
| Research and development | 210 | 219 | 431 | 451 | |||||||||||||||
| General and administrative | 84 | 85 | 173 | 178 | |||||||||||||||
| Amortization of other purchased intangible assets | 63 | 56 | 125 | 111 | |||||||||||||||
| Restructuring | 25 | 9 | 59 | 26 | |||||||||||||||
| Impairment of assets held for sale | 0 | 26 | 3 | 26 | |||||||||||||||
| Total operating expenses | 958 | 992 | 1,926 | 2,052 | |||||||||||||||
| Operating income | 257 | 217 | 409 | 495 | |||||||||||||||
| Interest income | 1 | 12 | 3 | 30 | |||||||||||||||
| Interest expense | (31) | (30) | [1] | (63) | (63) | ||||||||||||||
| Other income (expense), net | 2 | (9) | 8 | (9) | |||||||||||||||
| Income before income taxes and loss from joint venture | 229 | 190 | [1] | 357 | 453 | ||||||||||||||
| Provision for income taxes | 67 | 53 | [1] | 109 | 138 | ||||||||||||||
| Loss from joint venture | 12 | 11 | 25 | 17 | |||||||||||||||
| Net income | $150 | $126 | [1] | $223 | $298 | [1] | |||||||||||||
| Net income per share -- basic | 0.18 | 0.15 | [1] | 0.27 | 0.36 | ||||||||||||||
| Net income per share -- diluted | 0.18 | 0.15 | [1] | 0.27 | 0.35 | ||||||||||||||
| Weighted-average shares outstanding -- basic | 812 | 838 | 814 | 839 | |||||||||||||||
| Weighted-average shares outstanding -- diluted | 819 | 852 | 823 | 853 | |||||||||||||||
| [1]As adjusted for the retrospective adoption of new authoritative guidance on convertible debt instruments. See Notes 1 and 4 for further details. | |||||||||||||||||||
| Statement of Cash Flows (USD $) | |||||||||||||||||||
| In Millions | 6 Months Ended
Oct. 02, 2009 | 6 Months Ended
Oct. 03, 2008 | |||||||||||||||||
| OPERATING ACTIVITIES: | |||||||||||||||||||
| Net income | $223 | $298 | [1] | ||||||||||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||||
| Depreciation and amortization | 395 | 410 | |||||||||||||||||
| Amortization of discount on senior convertible notes | 51 | 48 | [1] | ||||||||||||||||
| Stock-based compensation expense | 85 | 89 | |||||||||||||||||
| Impairment of assets held for sale | 3 | 26 | |||||||||||||||||
| Deferred income taxes | 4 | (19) | [1] | ||||||||||||||||
| Income tax benefit from the exercise of stock options | 2 | 18 | |||||||||||||||||
| Excess income tax benefit from the exercise of stock options | (6) | (16) | |||||||||||||||||
| Loss from joint venture | 25 | 17 | |||||||||||||||||
| Realized and other than temporary impairment loss on investments | 2 | 2 | |||||||||||||||||
| Other | (2) | 11 | |||||||||||||||||
| Net change in assets and liabilities, excluding effects of acquisitions: | |||||||||||||||||||
| Trade accounts receivable, net | 171 | 100 | |||||||||||||||||
| Inventories | 5 | 6 | |||||||||||||||||
| Accounts payable | (7) | (1) | |||||||||||||||||
| Accrued compensation and benefits | (79) | (82) | |||||||||||||||||
| Deferred revenue | (259) | (229) | |||||||||||||||||
| Income taxes payable | (16) | (51) | |||||||||||||||||
| Other assets | (8) | 73 | |||||||||||||||||
| Other liabilities | 8 | (39) | |||||||||||||||||
| Net cash provided by operating activities | 597 | 661 | |||||||||||||||||
| INVESTING ACTIVITIES: | |||||||||||||||||||
| Purchase of property and equipment | (108) | (125) | |||||||||||||||||
| Proceeds from sale of property and equipment | 3 | 40 | |||||||||||||||||
| Cash returned from (payments for) acquisitions, net of cash acquired | 3 | (187) | |||||||||||||||||
| Purchase of equity investment | (16) | 0 | |||||||||||||||||
| Purchases of available-for-sale securities | (2) | (173) | |||||||||||||||||
| Proceeds from sales of available-for-sale securities | 189 | 668 | |||||||||||||||||
| Net cash provided by investing activities | 69 | 223 | |||||||||||||||||
| FINANCING ACTIVITIES: | |||||||||||||||||||
| Net proceeds from sale of common stock under employee stock benefit plans | 54 | 186 | |||||||||||||||||
| Excess income tax benefit from the exercise of stock options | 6 | 16 | |||||||||||||||||
| Tax payments related to restricted stock issuance | (18) | (15) | |||||||||||||||||
| Repurchase of common stock | (243) | (400) | |||||||||||||||||
| Repayment of short-term borrowing | 0 | (200) | |||||||||||||||||
| Repayment of other long-term liability | (4) | (4) | |||||||||||||||||
| Net cash used in financing activities | (205) | (417) | |||||||||||||||||
| Effect of exchange rate fluctuations on cash and cash equivalents | 60 | (95) | |||||||||||||||||
| Increase in cash and cash equivalents | 521 | 372 | |||||||||||||||||
| Beginning cash and cash equivalents | 1,793 | 1,890 | |||||||||||||||||
| Ending cash and cash equivalents | $2,314 | $2,262 | |||||||||||||||||
| [1]As adjusted for the retrospective adoption of new authoritative guidance on convertible debt instruments. See Notes 1 and 4 for further details. | |||||||||||||||||||
| Basis of Presentation | |
| 6 Months Ended
Oct. 02, 2009 | |
| Basis of Presentation [Abstract] | |
| Basis of Presentation | Note1.Basis of Presentation The condensed consolidated financial statements of Symantec Corporation (we, us, and our refer to Symantec Corporation and all of its subsidiaries) as of October 2, 2009 and April 3, 2009, and for the three and six months ended October 2, 2009 and October 3, 2008, have been prepared in accordance with the instructions on Form 10-Q pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). In accordance with those rules and regulations, we have omitted certain information and notes normally provided in our annual consolidated financial statements. In the opinion of management, the condensed consolidated financial statements contain all adjustments, consisting only of normal recurring items, except as otherwise noted, necessary for the fair presentation of our financial position and results of operations for the interim periods. The condensed consolidated balance sheet as of April 3, 2009, has been derived from our annual consolidated financial statements as adjusted for the retrospective adoption of new authoritative guidance on accounting for convertible debt instruments. These condensed consolidated financial statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in our Annual Report on Form 10-K for the fiscal year ended April 3, 2009. The results of operations for the three and six months ended October 2, 2009 are not necessarily indicative of the results expected for the entire fiscal year. All significant intercompany accounts and transactions have been eliminated. Fiscal Year End We have a 52/53-week fiscal accounting year ending on the Friday closest to March 31. The three months ended October 2, 2009 and October 3, 2008 both consisted of 13 weeks. The six months ended October 2, 2009 consisted of 26 weeks, whereas the six months ended October 3, 2008 consisted of 27 weeks. Our 2010 fiscal year consists of 52 weeks and ends on April 2, 2010. Significant Accounting Policies There have been no changes in our significant accounting policies for the six months ended October 2, 2009 as compared to the significant accounting policies described in our Annual Report on Form 10-K for the fiscal year ended April 3, 2009. As of April 4, 2009, we adopted new authoritative guidance on convertible debt instruments. See Note 4 for further details. Financial Instruments For certain financial instruments, including cash and cash equivalents, short-term investments, accounts receivable, accounts payable and other current liabilities, the carrying amounts approximate their fair value due to the relatively short maturity of these balances. The following methods were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value: Cash and Cash Equivalents.We consider all highly liquid investments with an original maturity of three months or less to be cash equivalents. Cash equivalents are recognized at fair value. As of October 2, 2009, our cash equivalents consisted of $1.5 billion in money market funds and $201million in bank securities and deposits. As of |
| Fair Value Measurements | |
| 6 Months Ended
Oct. 02, 2009 | |
| Fair Value Measurements [Abstract] | |
| Fair Value Measurements | Note2.Fair Value Measurements We measure assets and liabilities at fair value based on exit price as defined by the authoritative guidance on fair value measurements, which represents the amount that would be received on the sale of an asset or paid to transfer a liability, as the case may be, in an orderly transaction between market participants. As such, fair value may be based on assumptions that market participants would use in pricing an asset or liability. The authoritative guidance on fair value measurements establishes a consistent framework for measuring fair value on either a recurring or nonrecurring basis whereby inputs, used in valuation techniques, are assigned a hierarchical level. The following are the hierarchical levels of inputs to measure fair value: Level1:Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level2:Inputs reflect quoted prices for identical assets or liabilities in markets that are not active; quoted prices for similar assets or liabilities in active markets; inputs other than quoted prices that are observable for the assets or liabilities; or inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level3:Unobservable inputs reflecting our own assumptions incorporated in valuation techniques used to determine fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available. Assets Measured and Recorded at Fair Value on a Recurring Basis The following table summarizes our assets that are measured at fair value on a recurring basis, by level, within the fair value hierarchy: As of October 2, 2009 As of April3, 2009 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total (In millions) Cash equivalents: Money market funds........................................................... $ 1,544 $ $ $ 1,544 $ 389 $ $ $ 389 Bank securities and deposits.............................................. 201 201 474 474 Government securities......................................................... 479 479 Cash equivalents total:........................................................... 1,544 201 1,745 389 953 1,342 Short-term investments: Asset-backed securities....................................................... 9 9 13 13 Corporate securities............................................................. 4 4 8 8 Government securities......................................................... 175 175 Marketable equity securities.............................................. 5 5 3 3 Short-term investments total:................................................ 5 13 18 3 196 199 Total........................................................................................... $ 1,549 $ 214 |
| Investments | |
| 6 Months Ended
Oct. 02, 2009 | |
| Investments [Abstract] | |
| Investments | Note3. Investments The following summarizes our available-for-sale investments: As of October 2, 2009 As of April3, 2009 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value (In millions) Asset-backed securities....................................... $ 10 $ $ (1) $ 9 $ 15 $ $ (2) $ 13 Corporate securities............................................. 4 4 8 8 Government securities......................................... 175 175 Marketable equity securities.............................. 2 3 5 2 1 3 Total..................................................................... $ 16 $ 3 $ (1) $ 18 $ 200 $ 1 $ (2) $ 199 The following table provides the gross unrealized losses and the fair market value of our investments with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position: As of October 2, 2009 As of April3, 2009 Less than 12 Months 12 Months or Greater Total Less than 12 Months 12 Months or Greater Total Losses Fair Value Losses Fair Value Losses Fair Value Losses Fair Value Losses Fair Value Losses Fair Value (In millions) Asset-backed securities.. $ $ $ 1 $ 8 $ 1 $ 8 $ $ $ 2 $ 13 $ 2 $ 13 Proceeds from sales, maturities and principal pay downs on available-for-sale securities were $6million primarily from corporate securities and $196 million primarily from asset-backed securities for the three months ended October 2, 2009 and October 3, 2008, respectively. Proceeds from available-for-sale securities were $189million primarily from government securities and $668 million primarily from asset-backed securities for the six months ended October 2, 2009 and October 3, 2008, respectively. Gross realized losses on these sales were not material for the same periods. |
| Accounting for convertible debt instruments | |
| 6 Months Ended
Oct. 02, 2009 | |
| Accounting for Convertible Debt Instruments [Abstract] | |
| Accounting for Convertible Debt Instruments | Note 4. Accounting for Convertible Debt Instruments As of April 4, 2009, we adopted new authoritative guidance on convertible debt instruments, which requires issuers of certain types of convertible notes to separately account for the liability and equity components of such convertible notes in a manner that reflects the entitys nonconvertible debt borrowing rate when interest cost is recognized in subsequent periods. This guidance applies to the 0.75% Convertible Senior Notes due June 15, 2011 and the 1.00% Convertible Senior Notes due June 15, 2013, collectively referred to as the Senior Notes. Prior to the adoption of this guidance, the liability of the Senior Notes was carried at its principal value and only the contractual interest expense was recognized in our Condensed Consolidated Statements of Operations. Because this guidance requires retrospective adoption, we were required to adjust all periods for which the Senior Notes were outstanding before the date of adoption. Upon adoption of the new authoritative guidance on convertible debt instruments and effective as of the issuance date of the Senior Notes, we recorded $586million of the principal amount to equity, representing the debt discount for the difference between our estimated nonconvertible debt borrowing rate of 6.78% at the time of issuance and the coupon rate of the Senior Notes. This debt discount, recorded in additional paid-in capital, is amortized as additional non-cash interest expense over the contractual terms of the Senior Notes using the effective interest method. In addition, we allocated $9million of the issuance costs to the equity component of the Senior Notes and the remaining $24million of the issuance costs to the debt component of the Senior Notes. The issuance costs were allocated pro rata based on the relative carrying amounts of the debt and equity components. The $24million of debt issuance costs allocated to the debt component is amortized as interest expense over the respective contractual terms of the Senior Notes using the effective interest method. Each $1,000 of principal of the Senior Notes will initially be convertible into 52.2951 shares of Symantec common stock, which is the equivalent of $19.12 per share, subject to adjustment upon the occurrence of specified events. As of October 2, 2009, the remaining weighted average amortization period of the discount and debt issuance costs is approximately 3 years and the if-converted value of the Senior Notes does not exceed the principal amount of the Senior Notes. The following table presents information regarding the equity and liability components of the Senior Notes: As of October 2, 2009 April3, 2009 As Adjusted (In millions) Equity component of Senior Notes..................................................................................................................................... $ 586 $ 586 Principal amount of Senior Notes........................................................................................................................................ $ 2,100 $ 2,100 Unamortized discount of Senior Notes.. |
| Goodwill and Intangible Assets | |
| 6 Months Ended
Oct. 02, 2009 | |
| Goodwill and Intangible Assets [Abstract] | |
| Goodwill and Intangible Assets | Note5.Goodwill and Intangible Assets Goodwill We allocate goodwill to our reporting units, which are the same as our operating segments. Goodwill is allocated by operating segment as follows: Consumer Security and Compliance Storage and Server Management Services Total (In millions) Balance as of April3, 2009................................................................................ $ 356 $ 1,355 $ 2,457 $ 393 $ 4,561 Operating segment reclassification (1)............................................................... 103 2 (105) Goodwill adjustments (2)...................................................................................... 14 11 10 35 Balance as of October 2, 2009.......................................................................... $ 370 $ 1,469 $ 2,459 $ 298 $ 4,596 ____________ (1) During the first quarter of fiscal 2010, we modified our segment reporting structure to more readily match our operating structure. Refer to Note9 for further discussion on segment information. (2) Adjustments made to goodwill reflect the finalization of purchase price, foreign currency exchange rate, and tax adjustments related to prior acquisitions. We apply a fair value based impairment test to the net book value of goodwill and indefinite-lived intangible assets on an annual basis on the first day of the fourth quarter of each fiscal year or earlier if indicators of impairment exist. As of October 2, 2009, no indicators of impairment were identified. Intangible assets, net As of October 2, 2009 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted-Average Remaining Useful Life (In millions) Customer relationships................................................................................................... $ 1,833 $ (862) $ 971 4years Developed technology.................................................................................................... 1,778 (1,519) 259 1year Definite-lived tradenames.............................................................................................. 130 (62) 68 5years Patents............................................................................................................................... 76 (50) 26 4years Indefinite-lived tradenames........................................................................................... 56 56 Indefinite Total.................................................................................................................................. $ 3,873 $ (2,493) $ 1,380 3years As of April3, 2009 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted-Average Remaining Useful Life (In millions) Customer relationships...................................................................................... |
| Restructuring | |
| 6 Months Ended
Oct. 02, 2009 | |
| Restructuring [Abstract] | |
| Restructuring | Note6.Restructuring Our restructuring costs and liabilities consist of severance, benefits, facilities and other costs. Severance and benefits generally include severance, stay-put or one-time bonuses, outplacement services, health insurance coverage, effects of foreign currency exchange and legal costs. Facilities costs generally include rent expense, less expected sublease income and lease termination costs. Other costs generally include relocation, asset abandonment costs, the effects of foreign currency exchange and consulting services. Also included in Restructuring in our Condensed Consolidated Statements of Operations are transition and transformation fees, consulting charges, and other costs related to the outsourcing of back office functions. Restructuring expenses generally do not impact a particular reporting segment and are included in the Other reporting segment. Charges for restructuring costs were $15million and $9million for the three months and $37 million and $26million for the six months ended October 2, 2009 and October 3, 2008, respectively. Transition, transformation, and related other costs were $10million and $22 million for the three and six months ended October 2, 2009, respectively; such costs did not exist in the prior fiscal period. Transition and transformation related activities are expected to be substantially complete at the end of fiscal 2010. Total remaining costs for transition and transformation activities are estimated to be approximately $25million. 2009 Restructuring Plan (2009 Plan) In the third quarter of fiscal 2009, management approved and initiated the following restructuring events to: Reduce operating costs through a worldwide headcount reduction.This action was initiated in fiscal 2009 and was substantially completed in fiscal 2010. Corporate headquarter move.This action was initiated and substantially completed in fiscal 2010. 2008 Restructuring Plan (2008 Plan) In the third quarter of fiscal 2008, management approved and initiated the following restructuring events to: Reduce operating costs through a worldwide headcount reduction.This action was initiated and substantially completed in fiscal 2008. Reduce operating costs, implement management structure changes, optimize the business structure and discontinue certain products.Charges related to these actions are for severance and benefits. These actions were initiated in the third quarter of fiscal 2008 and are expected to be completed in fiscal 2010. Total remaining costs for this component are estimated to range from $10million to $25million. Outsource certain back office functions worldwide.Charges related to these actions are primarily for severance and benefits. These actions were initiated in the beginning of fiscal 2009 and are expected to be substantially completed in fiscal 2010. Total remaining costs for severance and benefits are expected to range from $5million to $15million. Acquisition-Related Restructuring Plans As a result of business acquisitions, management may deem certain job functions to be redundant and facilities to be in excess either at the time of acquisition or for a peri |
| Litigation | |
| 6 Months Ended
Oct. 02, 2009 | |
| Litigation [Abstract] | |
| Litigation | Note7.Litigation For a discussion of our pending tax litigation with the Internal Revenue Service relating to the 2000 and 2001 tax years of Veritas, see Note11. On July 7, 2004, a purported class action complaint entitled Paul Kuck, et al.v. Veritas Software Corporation, et al. was filed in the United States District Court for the District of Delaware. The lawsuit alleges violations of federal securities laws in connection with Veritas announcement on July6, 2004 that it expected results of operations for the fiscal quarter ended June30, 2004 to fall below earlier estimates. The complaint generally seeks an unspecified amount of damages. Subsequently, additional purported class action complaints have been filed in Delaware federal court, and, on March3, 2005, the Court entered an order consolidating these actions and appointing lead plaintiffs and counsel. A consolidated amended complaint (CAC), was filed on May 27, 2005, expanding the class period from April 23, 2004 through July 6, 2004. The CAC also named another officer as a defendant and added allegations that Veritas and the named officers made false or misleading statements in press releases and SEC filings regarding the companys 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. In April 2008, the parties filed a stipulation of settlement. On July 31, 2008, the Court held a final approval hearing and, on August5, 2008, the Court entered an order approving the settlement. An objector to the fees portion of the settlement has lodged an appeal. In fiscal 2008, we recorded an accrual in the amount of $21.5 million for this matter and, pursuant to the terms of the settlement, we established a settlement fund of $21.5 million on May 1, 2008. 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 effect on our financial condition or results of operations. |
| Stock repurchases | |
| 6 Months Ended
Oct. 02, 2009 | |
| Stock Repurchases [Abstract] | |
| Stock repurchases | Note8.Stock Repurchases The following table summarizes our stock repurchases: Three Months Ended October 2, 2009 Six Months Ended October 2, 2009 (In millions, except per share data) Total number of shares repurchased........................................................................................................... 8 16 Dollar amount of shares repurchased......................................................................................................... 120 243 Average price paid per share......................................................................................................................... 15.22 15.41 Range of price paid per share....................................................................................................................... 14.77 to 15.72 14.14 to 16.81 We have had stock repurchase programs in effect since fiscal 2001 and have repurchased shares on a quarterly basis since the fourth quarter of fiscal 2004. Our current program was authorized by our Board of Directors on June14, 2007 to repurchase up to $2billion of our common stock. This program does not have an expiration date, and as of October 2, 2009, $57million remained authorized for future repurchases. As noted in Note 13, on October 28, 2009 we announced that our Board of Directors approved a new share repurchase program. |
| Segment Information | |
| 6 Months Ended
Oct. 02, 2009 | |
| Segment Information [Abstract] | |
| Segment Information | Note9.Segment Information During the first quarter of fiscal 2010, we modified our segment reporting structure to more readily match our operating structure. The following modifications were made to our segment reporting structure: (i)Enterprise Vault products moved to the Storage and Server Management segment from the Security and Compliance segment; and (ii)Software-as-a-Service (SaaS) offerings moved to either the Security and Compliance segment or the Storage and Server Management segment from the Services segment, based on the nature of the service delivered. There were no changes to the Consumer or Other segments. The new reporting structure more directly aligns the operating segments with our markets and customers, and we believe it will establish more direct lines of reporting responsibilities, expedite decision making, and enhance the ability to pursue product integration and strategic growth opportunities. Data shown from the prior periods has been reclassified to match the current reporting structure. As of October 2, 2009, our five operating segments are: Consumer.Our Consumer segment focuses on delivering our Internet security, PC tuneup, and backup products to individual users and home offices. Security and Compliance.Our Security and Compliance segment focuses on providing large, medium, and small-sized businesses with solutions for endpoint security and management, compliance, messaging management, and data loss prevention solutions that allow our customers to secure, provision, and remotely access their laptops, PCs, mobile devices, and servers, as well as services delivered through our SaaS offerings. Storage and Server Management.Our Storage and Server Management segment focuses on providing large, medium and small-sized businesses with storage and server management, backup, archiving, and data protection solutions across heterogeneous storage and server platforms, as well as services delivered through our SaaS offerings. Services.Our Services segment provides customers with implementation services and solutions designed to assist them in maximizing the value of their Symantec software. Our offerings include consulting, business critical services, education, and managed security services. Other.Our Other segment is comprised of sunset products and products nearing the end of their life cycle. It also includes general and administrative expenses; amortization of acquired product rights, other intangible assets, and other assets; goodwill impairment charges; charges such as stock-based compensation and restructuring; and certain indirect costs that are not charged to the other operating segments. Our reportable segments are the same as our operating segments. The accounting policies of the segments are described in our Annual Report on Form10-K for the fiscal year ended April3, 2009 and have not changed as of October 2, 2009. There were no intersegment sales for the three and six month periods ended October 2, 2009. Segment information The following table summarizes our operating segments: Consumer Security and Compliance Storage and Server Management Services |
| Stock-based Compensation | |
| 6 Months Ended
Oct. 02, 2009 | |
| Stock-Based Compensation [Abstract] | |
| Stock-based Compensation | Note10.Stock-based Compensation The following table sets forth the total stock-based compensation expense recognized in our Condensed Consolidated Statements of Operations for the following periods: Three Months Ended Six Months Ended October2, 2009 October 3, 2008 October2, 2009 October 3, 2008 (In millions, except per share data) Cost of revenues Content, subscriptions, and maintenance....... $ 3 $ 3 $ 7 $ 6 Cost of revenues Licenses.................................................................. 1 1 2 2 Sales and marketing................................................................................. 14 18 32 37 Research and development.................................................................... 12 14 29 27 General and administrative..................................................................... 6 8 15 17 Total stock-based compensation expense.......................................... 36 44 85 89 Tax benefit associated with stock-based compensation expense... 10 13 23 25 Net effect of stock-based compensation expense on operations... $ 26 $ 31 $ 62 $ 64 Net effect of stock-based compensation expense on earnings per share basic......................................................................................... $ 0.03 $ 0.04 $ 0.08 $ 0.08 Net effect of stock-based compensation expense on earnings per share diluted...................................................................................... $ 0.03 $ 0.04 $ 0.08 $ 0.08 As of October 2, 2009, total unrecognized compensation expense adjusted for estimated forfeitures related to unvested stock options and Restricted Stock Units (RSUs), was $65million and $140million, respectively, which is expected to be recognized over the remaining weighted-average vesting periods of 2years for stock options and 3 years for RSUs. The weighted-average fair value per stock option granted during the six months ended October 2, 2009 and October 3, 2008 was $5.15 and $5.30, respectively. The total intrinsic value of options exercised during the six months ended October 2, 2009 and October 3, 2008, including assumed options, was $30million and $97million, respectively. The weighted-average fair value per RSUs granted during the six months ended October 2, 2009 and October 3, 2008 was $15.39 and $19.96, respectively. The fair value of RSUs granted for the six months ended October 2, 2009 and October 3, 2008, was $150million and $181million, respectively. The total fair value of RSUs that vested during the six months ended October 2, 2009 and October 3, 2008, including assumed RSUs, was $65million and $49million, respectively. During the six months ended October 2, 2009, we granted 93,992 Restricted Stock Awards (RSAs) to members of our board of directors. Each RSA had a fair value of $15.32 and vested immediately upon grant. As a result, we recorded $1million of stock |
| Income Taxes | |
| 6 Months Ended
Oct. 02, 2009 | |
| Income Taxes [Abstract] | |
| Income Taxes | Note11.Income Taxes The effective tax rate was approximately 29% and 28% for the three months ended October 2, 2009 and October 3, 2008, respectively, and 31% and 30% for the six months ended October 2, 2009 and October 3, 2008, respectively. The effective tax rates for both periods reflect the benefits of lower-taxed foreign earnings, domestic manufacturing tax incentives, and research and development credits, offset by state income taxes and non-deductible stock-based compensation. We recognized a $2 million tax benefit during the three months ended October 2, 2009 from favorable adjustments of prior year items. As discussed further below, the tax expense for the six months ended October 2, 2009 also includes a $7 million tax expense recorded in the June 2009 quarter related to the U.S. tax treatment of certain stock based compensation. During the three months ended October 3, 2008, we recognized a $7 million tax benefit as a result of an agreement with the IRS on the treatment of a 2005 dividend from a Veritas international subsidiary, and an additional $5 million tax benefit from favorable prior year items, including the retroactive reinstatement of the U.S. federal research and development credit. Further, the tax expense for the six months ended October 3, 2008 included a $5 million tax benefit related to a favorable Irish settlement that was recorded in the June 2008 quarter. The effective tax rate for the three and six months ended October 2, 2009 is otherwise lower than in the three and six months ended October 3, 2008 primarily due to higher benefits from lower-taxed foreign earnings. On May27, 2009, the U.S.Court of Appeals for the Ninth Circuit overturned a 2005 U.S.Tax Court ruling in Xilinx, Inc.v. Commissioner, holding that stock-based compensation related to research and development (RD) must be shared by the participants of a RD cost sharing arrangement. The Ninth Circuit held that related parties to such an arrangement must share stock option costs, notwithstanding the U.S.Tax Courts finding that unrelated parties in such an arrangement would not share such costs. Symantec has a similar RD cost sharing arrangement in place. The Ninth Circuits reversal of the U.S.Tax Courts decision changes our estimate of stock option related tax benefits previously recognized under the authoritative guidance on income taxes. As a result of the Ninth Circuits ruling, we increased our liability for unrecognized tax benefits, recording a tax expense of approximately $7million and a reduction of additional paid-in capital of approximately $30million in the six months ended October 2, 2009. On March29, 2006, we received a Notice of Deficiency from the IRS claiming that we owe $867million of additional taxes, excluding interest and penalties, for the 2000 and 2001 tax years based on an audit of Veritas. On June26, 2006, we filed a petition with the U.S.Tax Court protesting the IRS claim for such additional taxes. In the March 2007 quarter, we agreed to pay $7million out of $35million originally assessed by the IRS in connection with several of the lesser issues covered in the assessment. The IRS agreed to waive the assessment of penalt |
| Earnings Per Share | |
| 6 Months Ended
Oct. 02, 2009 | |
| Earnings Per Share [Abstract] | |
| Earnings Per Share | Note12.Earnings Per Share The components of earnings per share are as follows: Three Months Ended Six Months Ended October2, 2009 October3, 2008 October2, 2009 October3, 2008 (In millions, except per share data) Net income per share basic: Net income................................................................................................. $ 150 $ 126 $ 223 $ 298 Net income per share basic................................................................ $ 0.18 $ 0.15 $ 0.27 $ 0.36 Weighted average outstanding common shares................................. 812 838 814 839 Net income per share diluted: Net income................................................................................................. $ 150 $ 126 $ 223 $ 298 Net income per share diluted............................................................. $ 0.18 $ 0.15 $ 0.27 $ 0.35 Weighted average outstanding common shares................................. 812 838 814 839 Shares issuable from assumed exercise of options......................... 6 12 7 13 Dilutive impact of restricted stock and restricted stock units....... 1 2 2 6 Total weighted-average shares outstanding diluted...................... 819 852 823 853 We excluded 56million and 47million weighted-average stock options for the three months ended October 2, 2009 and October 3, 2008, respectively, and 56million and 49million weighted-average stock options for the six months ended October 2, 2009 and October 3, 2008, respectively, because their effect would have been anti-dilutive. The effect of the warrants issued and options purchased in connection with the convertible senior notes were also excluded for the reasons discussed in Note8 of Notes to Consolidated Financial Statements in our Annual Report on Form10-K for the fiscal year ended April3, 2009. |
| Subsequent Events | |
| 6 Months Ended
Oct. 02, 2009 | |
| Subsequent Events | |
| Subsequent events | Note13.Subsequent Event On October 28, 2009, we announced that our Board of Directors approved a $1 billion share repurchase program. The repurchase program does not have a scheduled expiration date. |
| Document Information | |
| 6 Months Ended
Oct. 02, 2009 | |
| Document Information [Line Items] | |
| Document Type | 10-Q |
| Amendment Flag | false |
| Document Period End Date | 2009-10-02 |
| Entity Information (USD $) | ||
| 6 Months Ended
Oct. 02, 2009 | Oct. 30, 2009
| |
| Entity Information [Line Items] | ||
| Entity Registrant Name | SYMANTEC CORP | |
| Entity Central Index Key | 0000849399 | |
| Current Fiscal Year End Date | --04-02 | |
| Entity Filer Category | Large Accelerated Filer | |
| Entity Common Stock, Shares Outstanding | 810,560,473 |
