Stock-Based Compensation

3 Months Ended

Jul. 01, 2011

Stock-Based Compensation

Stock-Based Compensation

Note 11. Stock-based Compensation

The following table summarizes the total stock-based compensation expense recognized in our Condensed Consolidated Statements of Income:

	Three Months Ended
	July 1,              2011	July 2,              2010
	(In millions, except per share data)
Cost of revenue — Content, subscription, and maintenance	$        4	$         3
Cost of revenue — License	1	1
Sales and marketing	15	14
Research and development	11	10
General and administrative	8	7
Total stock-based compensation expense	39	35
Tax benefit associated with stock-based compensation expense	(11)	(10)
Net stock-based compensation expense	$      28	$      25
Net stock-based compensation expense per share attributable to Symantec       Corporation stockholders— basic	$   0.04	$    0.03
Net stock-based compensation expense per share attributable to Symantec Corporation stockholders— diluted	$   0.04	$   0.03

The following table summarizes additional information pertaining to our stock-based compensation:

	Three Months Ended
	July 1,              2011	July 2,              2010
	($ in millions, except per grant data)
Restricted stock units ("RSUs")
Weighted-average fair value per grant	$    18.54	$      14.52
Fair value of RSUs granted	155	118
Total fair value of RSUs vested	71	63
Total unrecognized compensation expense	235	197
Weighted-average remaining vesting period	3 years	3 years
Stock options
Weighted-average fair value per grant	$      5.31	$        3.99
Total intrinsic value of stock options exercised	19	7
Total unrecognized compensation expense	32	45
Weighted-average remaining vesting period	3 years	3 years

 During the first quarter of fiscal 2012, we granted 91,368 Restricted Stock Awards ("RSAs") to members of our board of directors. Each RSA had a fair value of $19.70 and vested immediately upon grant.  As a result, we recorded approximately $2 million of stock-based compensation expense for these RSAs during the first quarter of fiscal 2012.

Performance Based Awards

During the first quarter of fiscal 2012, we granted performance based restricted stock units ("PRUs") to certain senior level employees under our 2004 Equity Incentive Plan. The PRU grants are in lieu of the stock option grants typically awarded as part of our annual compensation program.  These PRUs can be earned depending upon the achievement of a company-specific performance condition and a market condition as follows: (1) our achievement of a specified company-specific performance target for fiscal 2012 and (2) our two and three year cumulative relative total shareholder return ranked against that of other companies that are included in the Standard & Poor's 500 Index. These PRUs are also subject to a three year continued service vesting provision with earlier vesting permitted under certain conditions, such as upon a change of control of the company. The determination of the fair value of these awards takes into consideration the likelihood of achievement of the market condition, and the compensation expense for the PRUs is initially also based on the probability of achieving the target level of the company-specific performance condition, and will be adjusted for subsequent changes in the estimated or actual outcome of this performance condition. The weighted average grant date fair value of the PRUs was $23.58 per share.

Assumed Clearwell stock options

In connection with our acquisition of Clearwell, we assumed all unexercised, outstanding options to purchase Clearwell common stock.  Each unexercised, outstanding option assumed was converted into an option to purchase our common stock after applying the exchange ratio of 0.40906 shares of our common stock for each share of Clearwell common stock which resulted in an allocation of approximately 1 million shares of our common stock to the assumed options.  As of July 1, 2011 total unrecognized compensation cost related to the assumed, unvested Clearwell stock options was $7 million, including estimated forfeitures.

Furthermore, all shares obtained upon early exercise of unvested Clearwell options were converted into the right to receive a cash consideration of $7.65 per share upon vesting.  The total value of the early exercised, unvested Clearwell shares on the date of acquisition was approximately $4 million, assuming no forfeitures, prior to vesting.  As of July 1, 2011, total unrecognized compensation cost related to early exercised, unvested Clearwell shares was approximately $4 million.