| CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | |||||||||||||||||||
| In Millions | Jan. 01, 2010
| Apr. 03, 2009
| |||||||||||||||||
| ASSETS: | |||||||||||||||||||
| Cash and cash equivalents | $2,593 | $1,793 | |||||||||||||||||
| Short-term investments | 18 | 199 | |||||||||||||||||
| Trade accounts receivable, net | 901 | 837 | |||||||||||||||||
| Inventories | 24 | 27 | |||||||||||||||||
| Deferred income taxes | 184 | 163 | |||||||||||||||||
| Other current assets | 224 | 278 | [1] | ||||||||||||||||
| Total current assets | 3,944 | 3,297 | [1] | ||||||||||||||||
| Property and equipment, net | 990 | 973 | |||||||||||||||||
| Intangible assets, net | 1,282 | 1,639 | |||||||||||||||||
| Goodwill | 4,606 | 4,561 | |||||||||||||||||
| Investment in joint venture | 60 | 97 | |||||||||||||||||
| Other long-term assets | 67 | 71 | [1] | ||||||||||||||||
| Total assets | 10,949 | 10,638 | [1] | ||||||||||||||||
| LIABILITIES: | |||||||||||||||||||
| Accounts payable | 198 | 190 | |||||||||||||||||
| Accrued compensation and benefits | 362 | 374 | |||||||||||||||||
| Deferred revenue | 2,680 | 2,644 | |||||||||||||||||
| Income taxes payable | 27 | 44 | |||||||||||||||||
| Other current liabilities | 333 | 261 | |||||||||||||||||
| Total current liabilities | 3,600 | 3,513 | |||||||||||||||||
| Convertible senior notes | 1,844 | 1,766 | [1] | ||||||||||||||||
| Long-term deferred revenue | 369 | 419 | |||||||||||||||||
| Long-term deferred tax liabilities | 178 | 181 | |||||||||||||||||
| Long-term income taxes payable | 487 | 522 | |||||||||||||||||
| Other long-term liabilities | 51 | 90 | |||||||||||||||||
| Total liabilities | 6,529 | 6,491 | [1] | ||||||||||||||||
| STOCKHOLDERS' EQUITY: | |||||||||||||||||||
| Common stock | 8 | 8 | |||||||||||||||||
| Additional paid-in capital | 9,061 | 9,289 | [1] | ||||||||||||||||
| Accumulated other comprehensive income | 151 | 186 | |||||||||||||||||
| Accumulated deficit | (4,800) | (5,336) | [1] | ||||||||||||||||
| Total stockholders' equity | 4,420 | 4,147 | [1] | ||||||||||||||||
| Total liabilities and stockholders' equity | $10,949 | $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. | |||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | |||||||||||||||||||
| In Millions, except Per Share data | 3 Months Ended
Jan. 01, 2010 | 3 Months Ended
Jan. 02, 2009 | 9 Months Ended
Jan. 01, 2010 | 9 Months Ended
Jan. 02, 2009 | |||||||||||||||
| Net revenue: | |||||||||||||||||||
| Content, subscription, and maintenance | $1,292 | $1,197 | $3,755 | $3,669 | |||||||||||||||
| License | 256 | 317 | 699 | 1,013 | |||||||||||||||
| Total net revenue | 1,548 | 1,514 | 4,454 | 4,682 | |||||||||||||||
| Cost of revenue: | |||||||||||||||||||
| Content, subscription and maintenance | 208 | 200 | 624 | 631 | |||||||||||||||
| License | 6 | 9 | 16 | 27 | |||||||||||||||
| Amortization of acquired product rights | 44 | 90 | 189 | 262 | |||||||||||||||
| Total cost of revenue | 258 | 299 | 829 | 920 | |||||||||||||||
| Gross profit | 1,290 | 1,215 | 3,625 | 3,762 | |||||||||||||||
| Operating expenses: | |||||||||||||||||||
| Sales and marketing | 635 | 581 | 1,770 | 1,841 | |||||||||||||||
| Research and development | 210 | 194 | 641 | 645 | |||||||||||||||
| General and administrative | 92 | 83 | 265 | 261 | |||||||||||||||
| Amortization of other purchased intangible assets | 61 | 60 | 186 | 171 | |||||||||||||||
| Restructuring | 5 | 47 | 64 | 73 | |||||||||||||||
| Impairment of goodwill | 0 | 7,006 | 0 | 7,006 | |||||||||||||||
| Loss and impairment of assets held for sale | 10 | 17 | 13 | 43 | |||||||||||||||
| Total operating expenses | 1,013 | 7,988 | 2,939 | 10,040 | |||||||||||||||
| Operating income (loss) | 277 | (6,773) | 686 | (6,278) | |||||||||||||||
| Interest income | 1 | 5 | 4 | 35 | |||||||||||||||
| Interest expense | (33) | (31) | [1] | (96) | (94) | [1] | |||||||||||||
| Other income, net | 44 | 17 | 52 | 8 | |||||||||||||||
| Income (loss) before income taxes and loss from joint venture | 289 | (6,782) | [1] | 646 | (6,329) | [1] | |||||||||||||
| (Benefit) provision for income taxes | (23) | 22 | [1] | 86 | 160 | [1] | |||||||||||||
| Loss from joint venture | 12 | 16 | 37 | 33 | |||||||||||||||
| Net income (loss) | $300 | ($6,820) | [1] | $523 | ($6,522) | [1] | |||||||||||||
| Net income (loss) per share -- basic | 0.37 | -8.25 | [1] | 0.64 | -7.81 | [1] | |||||||||||||
| Net income (loss) per share -- diluted | 0.37 | -8.25 | [1] | 0.64 | -7.81 | [1] | |||||||||||||
| Weighted-average shares outstanding -- basic | 809 | 827 | 812 | 835 | |||||||||||||||
| Weighted-average shares outstanding -- diluted | 819 | 827 | 822 | 835 | |||||||||||||||
| [1]As adjusted for the retrospective adoption of new authoritative guidance on convertible debt instruments. See Notes 1 and 4 for further details. | |||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | |||||||||||||||||||
| In Millions | 9 Months Ended
Jan. 01, 2010 | 9 Months Ended
Jan. 02, 2009 | |||||||||||||||||
| OPERATING ACTIVITIES: | |||||||||||||||||||
| Net income (loss) | $523 | ($6,522) | [1] | ||||||||||||||||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||||||||||
| Depreciation and amortization | 563 | 625 | |||||||||||||||||
| Amortization of discount on senior convertible notes | 77 | 72 | [1] | ||||||||||||||||
| Stock-based compensation expense | 124 | 123 | |||||||||||||||||
| Loss and impairment of assets held for sale | 13 | 43 | |||||||||||||||||
| Deferred income taxes | (3) | (81) | [1] | ||||||||||||||||
| Income tax benefit from the exercise of stock options | 6 | 17 | |||||||||||||||||
| Excess income tax benefit from the exercise of stock options | (10) | (16) | |||||||||||||||||
| Loss from joint venture | 37 | 33 | |||||||||||||||||
| Impairment of goodwill | 0 | 7,006 | |||||||||||||||||
| Net (gain) loss on legal liquidation of foreign entities | (46) | 5 | |||||||||||||||||
| Other | 1 | 11 | |||||||||||||||||
| Net change in assets and liabilities, excluding effects of acquisitions: | |||||||||||||||||||
| Trade accounts receivable, net | (47) | (157) | |||||||||||||||||
| Inventories | 4 | 6 | |||||||||||||||||
| Accounts payable | (42) | (20) | |||||||||||||||||
| Accrued compensation and benefits | (24) | (45) | |||||||||||||||||
| Deferred revenue | (95) | (49) | |||||||||||||||||
| Income taxes payable | (118) | (17) | |||||||||||||||||
| Other assets | 4 | 68 | |||||||||||||||||
| Other liabilities | 23 | (38) | |||||||||||||||||
| Net cash provided by operating activities | 990 | 1,064 | |||||||||||||||||
| INVESTING ACTIVITIES: | |||||||||||||||||||
| Purchase of property and equipment | (149) | (215) | |||||||||||||||||
| Proceeds from sale of property and equipment | 45 | 40 | |||||||||||||||||
| Cash payments for business acquisitions, net of cash acquired | (16) | (1,045) | |||||||||||||||||
| Purchase of equity investment | (16) | 0 | |||||||||||||||||
| Purchases of available-for-sale securities | (2) | (223) | |||||||||||||||||
| Proceeds from sales of available-for-sale securities | 190 | 679 | |||||||||||||||||
| Net cash provided by (used in) investing activities | 52 | (764) | |||||||||||||||||
| FINANCING ACTIVITIES: | |||||||||||||||||||
| Net proceeds from sales of common stock under employee stock benefit plans | 73 | 189 | |||||||||||||||||
| Excess income tax benefit from the exercise of stock options | 10 | 16 | |||||||||||||||||
| Tax payments related to restricted stock issuance | (19) | (15) | |||||||||||||||||
| Repurchase of common stock | (364) | (600) | |||||||||||||||||
| Repayment of short-term borrowing | 0 | (200) | |||||||||||||||||
| Repayment of other long-term liability | (4) | (6) | |||||||||||||||||
| Net cash used in financing activities | (304) | (616) | |||||||||||||||||
| Effect of exchange rate fluctuations on cash and cash equivalents | 62 | (125) | |||||||||||||||||
| Increase (decrease) in cash and cash equivalents | 800 | (441) | |||||||||||||||||
| Beginning cash and cash equivalents | 1,793 | 1,890 | |||||||||||||||||
| Ending cash and cash equivalents | $2,593 | $1,449 | |||||||||||||||||
| [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 | |
| 9 Months Ended
Jan. 01, 2010 | |
| 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 January 1, 2010 and April 3, 2009, and for the three and nine months ended January 1, 2010 and January 2, 2009, 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 nine months ended January 1, 2010 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 January 1, 2010 and January 2, 2009 both consisted of 13 weeks. The nine months ended January 1, 2010 consisted of 39 weeks, whereas the nine months ended January 2, 2009 consisted of 40 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 nine months ended January 1, 2010 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 also adopted new authoritative guidance on convertible debt instruments. See Note 4 for further details. Financial Instruments 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 January 1, 2010, our cash equivalents consisted of $1.8 billion in money market funds and $210million in bank securities and deposits. As of April 3, 2009, our cash equivalents consisted of $389million in money market funds, $474million in bank securities and deposits, and $479million in government securities. Short-Term Investments. Short-term investments consist of marketable debt or equity securit |
| Fair Value Measurements | |
| 9 Months Ended
Jan. 01, 2010 | |
| 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 January 1, 2010 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........................................................... $ 1,777 $ $ $ 1,777 $ 389 $ $ $ 389 Bank securities and deposits.............................................. 210 210 474 474 Government securities......................................................... 479 479 Total cash equivalents............................................................ 1,777 210 1,987 389 953 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 Total short-term investments................................................. 5 13 18 3 196 199 Total........................................................................................... $ 1,782 $ 223 |
| Investments | |
| 9 Months Ended
Jan. 01, 2010 | |
| Investments [Abstract] | |
| Investments | Note3. Investments The following table summarizes our available-for-sale investments: As of January 1, 2010 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 January 1, 2010 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 $ 7 $ 1 $ 7 $ $ $ 2 $ 13 $ 2 $ 13 Proceeds from sales, maturities, and principal pay downs related to available-for-sale securities were $1million and $11 million primarily from asset-backed securities for the three months ended January 1, 2010 and January 2, 2009, respectively. Proceeds from sales, maturities, and principal pay downs related to available-for-sale securities were $190million primarily from government securities and $679 million primarily from asset-backed securities for the nine months ended January 1, 2010 and January 2, 2009, respectively. Gross realized losses on these sales were not material for the same periods. |
| Accounting for convertible debt instruments | |
| 9 Months Ended
Jan. 01, 2010 | |
| 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 January 1, 2010, 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 summarizes information regarding the equity and liability components of the Senior Notes: As of January 1, 2010 April3, 2009 As Adjusted (In millions) Equity component.................................................................................................................................................................. $ 586 $ 586 Principal amount.................................................................................................................................................................... $ 2,100 $ 2,100 Unamortized d |
| Goodwill and Intangible Assets | |
| 9 Months Ended
Jan. 01, 2010 | |
| Goodwill and Intangible Assets [Abstract] | |
| Goodwill and Intangible Assets | Note5.Goodwill and Intangible Assets Goodwill 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) (3) .......................................................... 193 191 (384) Goodwill acquired through business combination......................................... Goodwill adjustments (2)..................................................................................... 10 14 11 10 14 31 Balance as of January 1, 2010.......................................................................... $ 366 $ 1,573 $ 2,648 $ 19 $ 4,606 ________ (1) During the first quarter of fiscal 2010, we modified our segment reporting structure to more readily match our operating structure. Refer to Note10 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 that were accounted for under the prior authoritative guidance on business combinations. (3) During the period ended January 1, 2010, we revised an allocation of goodwill related to the Services, Security and Compliance, and the Storage and Server Management segments as a result of the modification of our segment reporting structure that we completed in the first quarter of fiscal 2010. See Note 10 for further information. This revised allocation was to appropriately classify the Software-as-a-Service reporting units goodwill into the Security and Compliance and the Storage and Server Management segments, and the Enterprise Vault products goodwill into the Storage and Server Management segment. This revision is effective as of July 3, 2009. The result of this reallocation was to increase goodwill by $90 million in the Security and Compliance segment, increase goodwill by $189 million in the Storage and Server Management segment and decrease goodwill by $279 million in the Services segment. We apply a fair value based impairment test to the carrying 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 January 1, 2010, no indicators of impairment were identified. Intangible assets, net As of January 1, 2010 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted-Average Remaining Useful Life (In millions) Customer relationships................................................................................................... $ 1,841 $ (919) $ 922 4years Developed technology.................................................................................................... 1,779 ( |
| Investment in Joint Venture | |
| 9 Months Ended
Jan. 01, 2010 | |
| Investment in Joint Venture [Abstract] | |
| Investment in Joint Venture | Note 6. Investment in Joint Venture On February 5, 2008, Symantec formed Huawei-Symantec, Inc. (joint venture) with a subsidiary of Huawei Technologies Co., Ltd. (Huawei). The joint venture is domiciled in Hong Kong with principal operations in Chengdu, China. We account for our investment in the joint venture under the equity method of accounting. Under this method, we record our proportionate share of the joint ventures net income or loss based on the quarterly financial statements of the joint venture. We record our proportionate share of net income or loss one quarter in arrears. For the three and nine months ended January 1, 2010, we recorded a loss of $12 million and $37 million, respectively, related to our share of the joint ventures net loss, including the amortization of the basis difference, for the joint ventures period ended September 30, 2009. This loss is included in Loss from joint venture. The carrying value of our investment in the joint venture as of January 1, 2010 was $60 million. In October 2009, the FASB issued new authoritative literature that provides guidance on determining multiple elements in an arrangement and how total consideration should be allocated amongst the elements. It also expands disclosure requirements for multiple-element arrangements. Concurrently, the FASB also issued new authoritative literature for arrangements that include both software and tangible products. This guidance excludes tangible products and certain related elements from the scope of the revenue recognition authoritative guidance specific to software transactions. The standards must both be adopted in the same period and can be applied on a prospective basis for revenue arrangements entered into or materially modified in fiscal years beginning on or after June 15, 2010, with earlier application permitted, or they can be adopted on a retrospective basis. The joint venture adopted new authoritative guidance on revenue arrangements with multiple deliverables during its period ended December 31, 2009, which was applied to the beginning of its fiscal year. The expected impact of adopting the new authoritative guidance on the joint ventures financial statements will be a decrease in its net loss of approximately $21 million to $24 million for its fiscal year ended December 31, 2009. We expect to include our proportionate share of the decrease in net loss of approximately $10 million to $12 million in our Annual Report on Form 10-K for our fiscal year ending April 2, 2010. Approximately $1 million to $2 million of the decrease in net loss will impact our fiscal fourth quarter. |
| Restructuring | |
| 9 Months Ended
Jan. 01, 2010 | |
| Restructuring [Abstract] | |
| Restructuring | Note7.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 $5million and $47million for the three months ended January 1, 2010 and January 2, 2009, respectively, and $64 million and $73million for the nine months ended January 1, 2010 and January 2, 2009, respectively. These amounts include Transition, transformation, and related other costs of $1million and $24 million for the three and nine months ended January 1, 2010, respectively. There were no Transition, transformation, and related other costs in the prior year. Transition and transformation related activities are expected to be substantially completed by the end of the second quarter in fiscal 2011. Total remaining costs for transition and transformation activities are estimated to be approximately $20 million to $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 headquarters relocation.This action was initiated and substantially completed in fiscal 2010. This includes the cost of relocating our employees to the new headquarters. The loss on the sale of our previous headquarters is recorded in our Condensed Consolidated Statement of Operations in the line entitled Loss and impairment of assets held for sale. 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 substantially completed by the end of the second quarter in fiscal 2011. Total remaining costs for this component are estimated to range from $10million to $20million. Outsource certain back office functions worldwide.Charges related to these actions are primarily for severance |
| Litigation | |
| 9 Months Ended
Jan. 01, 2010 | |
| Litigation [Abstract] | |
| Litigation | Note8.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 Note12. 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 | |
| 9 Months Ended
Jan. 01, 2010 | |
| Stock Repurchases [Abstract] | |
| Stock repurchases | Note9.Stock Repurchases The following table summarizes our stock repurchases: Three Months Ended January 1, 2010 Nine Months Ended January 1, 2010 (In millions, except per share data) Total number of shares repurchased........................................................................................................... 7 23 Dollar amount of shares repurchased......................................................................................................... $ 121 $ 364 Average price paid per share......................................................................................................................... $ 17.76 $ 16.12 Range of price paid per share....................................................................................................................... $17.27 to 18.29 $14.14 to 18.29 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 October 27, 2009 to repurchase up to $1billion of our common stock. This program does not have an expiration date, and as of January 1, 2010, $936million remained authorized for future repurchases. |
| Segment Information | |
| 9 Months Ended
Jan. 01, 2010 | |
| Segment Information [Abstract] | |
| Segment Information | Note10.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 January 1, 2010, our five operating segments are: Consumer.Our Consumer segment focuses on delivering our Internet security, PC tune-up, 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. These products allow our customers to secure, provision, and remotely access their laptops, PCs, mobile devices, and servers. We also provide our customers with services delivered through our SaaS security 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 January 1, 2010. There were no intersegment sales for the three and nine months ended January 1, 2010. Segment information The following table summarizes our operating segments: Consumer Security and Compliance Storage and |
| Stock-based Compensation | |
| 9 Months Ended
Jan. 01, 2010 | |
| Stock-Based Compensation [Abstract] | |
| Stock-based Compensation | Note11.Stock-based Compensation The following table summarizes the total stock-based compensation expense recognized in our Condensed Consolidated Statements of Operations for the following periods: Three Months Ended Nine Months Ended January 1, 2010 January 2, 2009 January 1, 2010 January 2, 2009 (In millions, except per share data) Cost of revenue Content, subscriptions, and maintenance......... $ 4 $ 2 $ 11 $ 9 Cost of revenue Licenses................................................................... - 1 2 2 Sales and marketing................................................................................. 16 15 48 52 Research and development.................................................................... 13 11 42 38 General and administrative..................................................................... 6 5 21 22 Total stock-based compensation expense.......................................... 39 34 124 123 Tax benefit associated with stock-based compensation expense... 10 9 33 34 Net effect of stock-based compensation expense on operations... $ 29 $ 25 $ 91 $ 89 Net effect of stock-based compensation expense on earnings per share basic......................................................................................... $ 0.04 $ 0.03 $ 0.11 $ 0.11 Net effect of stock-based compensation expense on earnings per share diluted...................................................................................... $ 0.04 $ 0.03 $ 0.11 $ 0.11 As of January 1, 2010, total unrecognized compensation expense adjusted for estimated forfeitures related to unvested stock options and Restricted Stock Units (RSUs), was $54million and $147million, 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 nine months ended January 1, 2010 and January 2, 2009 was $5.15 and $5.29, respectively. The total intrinsic value of options exercised during the nine months ended January 1, 2010 and January 2, 2009, including assumed options, was $48million and $101million, respectively. The weighted-average fair value per RSUs granted during the nine months ended January 1, 2010 and January 2, 2009 was $15.45 and $19.67, respectively. The fair value of RSUs granted for the nine months ended January 1, 2010 and January 2, 2009, was $155million and $186million, respectively. The total fair value of RSUs that vested during the nine months ended January 1, 2010 and January 2, 2009, including assumed RSUs, was $68million and $50million, respectively. During the nine months ended January 1, 2010, 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 $1mi |
| Income Taxes | |
| 9 Months Ended
Jan. 01, 2010 | |
| Income Taxes [Abstract] | |
| Income Taxes | Note12.Income Taxes The effective tax rate was approximately (8)% and (0.3)% for the three months ended January 1, 2010 and January 2, 2009, respectively, and 13% and (3)% for the nine months ended January 1, 2010 and January 2, 2009, respectively. The tax expense for the three and nine months ended January 1, 2010 was significantly reduced by the following benefits recognized in the third quarter of fiscal 2010: (1) $78.5 million tax benefit arising from the Veritas v. Commissioner Tax Court decision (see further discussion below), (2) $9 million tax benefit from the reduction of our valuation allowance for certain deferred tax assets, and (3) $5 million benefit to adjust taxes provided in prior periods. The change in the valuation allowance follows discussions with Irish Revenue in the quarter, the result of which accelerates the timing of the use of certain Irish tax loss carryforwards in the future. The tax expense for the nine months ended January 1, 2010 is otherwise increased by a $7 million tax expense recognized in the first quarter of fiscal 2010 as a result of the May 2009 Ninth Circuit Court of Appeals decision in Xilinx v. Commissioner (see further discussion below). The tax expense for the three and nine months ended January 2, 2009 was materially impacted by the inclusion of a $44 million tax benefit associated with the $7.0 billion impairment of goodwill in the third quarter of fiscal 2009. The provision for the three and nine months ended January 1, 2010 otherwise reflects a forecast tax rate of 31%. The provision for the three and nine months ended January 2, 2009 otherwise reflected a forecast tax rate of 35%. The forecast tax rates for all periods presented reflect the benefits of lower-taxed foreign earnings, domestic manufacturing incentives, and research and development credits, partially offset by state income taxes and non-deductible stock based compensation. The forecast tax rate in fiscal 2010 is lower than in fiscal 2009 primarily due to higher benefits from low-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 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 first quarter of fiscal 2010. On January 13, 2010, the Ninth Circuit Court of Appeals withdrew its issued opinion. We will monitor any further actions by the Ni |
| Earnings Per Share | |
| 9 Months Ended
Jan. 01, 2010 | |
| Earnings Per Share [Abstract] | |
| Earnings Per Share | Note13.Earnings per Share The components of earnings per share are as follows: Three Months Ended Nine Months Ended January 1, 2010 January 2, 2009 January 1, 2010 January 2, 2009 (In millions, except per share data) Net income (loss) per share basic: Net income (loss)....................................................................................... $ 300 $ (6,820) $ 523 $ (6,522) Net income (loss) per share basic...................................................... $ 0.37 $ (8.25) $ 0.64 $ (7.81) Weighted average outstanding common shares................................. 809 827 812 835 Net income (loss) per share diluted: Net income (loss)....................................................................................... $ 300 $ (6.820) $ 523 $ (6,522) Net income (loss) per share diluted................................................... $ 0.37 $ (8.25) $ 0.64 $ (7.81) Weighted average outstanding common shares................................. 809 827 812 835 Shares issuable from assumed exercise of options......................... 7 - 7 - Dilutive impact of restricted stock and restricted stock units....... 3 - 3 - Total weighted-average shares outstanding diluted...................... 819 827 822 835 We excluded 46million and 70million weighted-average stock options for the three months ended January 1, 2010 and January 2, 2009, respectively, and 50million and 61million weighted-average stock options for the nine months ended January 1, 2010 and January 2, 2009, 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 our Annual Report on Form10-K for the fiscal year ended April3, 2009. |
| Document Information | |
| 9 Months Ended
Jan. 01, 2010 | |
| Document Information [Line Items] | |
| Document Type | 10-Q |
| Amendment Flag | false |
| Document Period End Date | 2010-01-01 |
| Entity Information (USD $) | ||
| 9 Months Ended
Jan. 01, 2010 | Jan. 29, 2010
| |
| 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 | 806,239,036 |
