Stock-Based Compensation

6 Months Ended

Sep. 28, 2012

Stock-based Compensation [Abstract]

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		Six Months Ended
	September 28, 2012	September 30, 2011	September 28, 2012	September 30, 2011
	(In millions, except per share data)
Cost of revenue	$                      4	$                      3	$                      8	$                        8
Sales and marketing	17	17	33	32
Research and development	13	12	24	23
General and administrative	11	6	18	14
Total stock-based compensation expense	45	38	83	77
Tax benefit associated with stock-based compensation expense	(14)	(11)	(24)	(22)
Net stock-based compensation expense	$                    31	$                    27	$                    59	$                      55
Net stock-based compensation expense per share attributable to Symantec Corporation stockholders— basic	$                 0.04	$                 0.04	$                 0.08	$                   0.07
Net stock-based compensation expense per share attributable to Symantec Corporation stockholders— diluted	$                 0.04	$                 0.04	$                 0.08	$                   0.07

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

	Six Months Ended
	September 28, 2012	September 30, 2011
	($ in millions, except per grant data)
Restricted stock
Weighted-average fair value per grant	$                15.20	$                18.33
Fair value of awards granted	155	173
Total fair value of awards vested	39	79
Total unrecognized compensation expense	272	221
Weighted-average remaining vesting period	3 years	3 years
Performance-based restricted stock
Weighted-average fair value per grant	$                16.15	$                23.58
Fair value of awards granted	29	11
Total fair value of awards vested	1	”-“
Total unrecognized compensation expense	23	10
Weighted-average remaining vesting period	2 years	3 years
Stock options
Weighted-average fair value per grant	$                  4.07	$                  5.24
Total intrinsic value of stock options exercised	13	26
Total unrecognized compensation expense	22	38
Weighted-average remaining vesting period	2 years	3 years

During the first quarter of fiscal 2013, we granted 112,923 Restricted Stock Awards to members of our Board of Directors. Each award had a fair value of $15.94 and vested immediately upon grant.  As a result, we recorded approximately $2 million of stock-based compensation expense for these awards during the first quarter of fiscal 2013. 

Performance-based restricted stock units and performance-contingent stock units

During the first quarter of fiscal 2013 and 2012, we granted performance-based restricted stock units (“PRUs”) to certain senior level employees under our 2004 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 annual target earnings per share for its applicable fiscal year 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.  

On July 24, 2012, Enrique Salem, our former President and Chief Executive Officer (“CEO”), resigned from the Company. Our Board of Directors appointed Stephen M. Bennett as our new President and CEO in addition to his role as our Chairman of the Board of Directors, effective July 25, 2012. During the second quarter of fiscal 2013, we granted 115,000 PRUs to our new CEO. These PRUs are subject to vesting based on the same terms and conditions as the aforementioned fiscal 2013 PRUs grants, except that the target number of shares our CEO will be eligible to receive at the end of the three-year performance period will be not less than 80,000 shares. The compensation expense for these PRUs is initially 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.  Additionally, we granted 450,000 performance-contingent stock units (“PCSUs”) to our new CEO based on the achievement of specified performance metrics. The PCSUs are also subject to an underlying continued service vesting condition. Each performance metric is based on the average twenty day trailing closing price of Symantec’s common stock (the “Average Closing Price”) over a three-year period beginning with the second quarter of fiscal 2013. During this three-year period, 150,000 shares from this grant will vest during the fiscal quarter (if any) when the Average Closing Price first exceeds $18.00, $20.00 and $22.00, respectively. The lowest Price Threshold of $18.00 was achieved during the quarter ended September 28, 2012 and, as a result, 150,000  PCSUs were vested and released to Mr. Bennett on October 22, 2012. For those price thresholds that are not achieved during the three-year period, the remaining PCSUs will be forfeited. The compensation expense is amortized using the graded vesting attribution method over the derived service periods. The fair value and derived service period for each of these three tranches are calculated using a Monte Carlo simulation option pricing model.