Symantec 2007 Annual Report Download - page 102

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Note 7. Commitments
Leases
We lease certain of our facilities and equipment under operating leases that expire at various dates through
2026. We currently sublease some space under various operating leases that will expire on various dates through
2018. Some of our leases contain renewal options, escalation clauses, rent concessions, and leasehold improvement
incentives.
The future fiscal year minimum operating lease commitments and existing sublease information were as
follows as of March 31, 2007:
Lease
Commitment
Sublease
Income
Net Lease
Commitment
(In thousands)
2008 .......................................... $ 85,481 $ (3,811) $ 81,670
2009 .......................................... 64,781 (3,523) 61,258
2010 .......................................... 53,304 (3,084) 50,220
2011 .......................................... 41,450 (2,606) 38,844
2012 .......................................... 31,647 (1,753) 29,894
Thereafter ...................................... 138,571 (1,727) 136,844
$415,234 $(16,504) $398,730
The net lease commitment amount includes $12 million related to facilities that are included in our
restructuring reserve. For more information, see Note 12.
Rent expense charged to operations totaled $83 million, $70 million, and $35 million in fiscal 2007, 2006, and
2005, respectively.
Development agreements
During fiscal 2006, we entered into agreements in connection with the construction of, or refurbishments to,
buildings in Springfield, Oregon, and Culver City, California. Payment is contingent upon the achievement of
certain agreed-upon milestones. The remaining commitment under the Culver City, California agreement is
$91 million as of March 31, 2007. At March 31, 2007, the Springfield, Oregon project had been completed and there
were no remaining commitments under that agreement.
Royalties
We have certain royalty commitments associated with the shipment and licensing of certain products. Royalty
expense is generally based on a dollar amount per unit shipped or a percentage of underlying revenue. Certain
royalty commitments have minimum commitment obligations; however, as of March 31, 2007 all such obligations
are insignificant.
Indemnification
As permitted under Delaware law, we have agreements whereby we indemnify our officers and directors for
certain events or occurrences while the officer or director is, or was, serving at our request in such capacity. The
maximum potential amount of future payments we could be required to make under these indemnification
agreements is not limited; however, we have director and officer insurance coverage that reduces our exposure
and may enable us to recover a portion or all of any future amounts paid. We believe the estimated fair value of these
indemnification agreements in excess of applicable insurance coverage is minimal.
96
SYMANTEC CORPORATION
Notes to Consolidated Financial Statements — (Continued)