Symantec 2007 Annual Report Download - page 60

In fiscal 2007, we repaid the entire balance of $520 million related to the Veritas 0.25% Convertible
Subordinated Notes and in fiscal 2006, we repaid the entire balance of a short-term loan with a principal amount of
EURO 411 million that we assumed in connection with our acquisition of Veritas.
Contractual Obligations
The contractual obligations presented in the table below represent our estimates of future payments under fixed
contractual obligations and commitments. Changes in our business needs, cancellation provisions, interest rates,
and other factors may result in actual payments differing from these estimates. We cannot provide certainty
regarding the timing and amounts of payments related to the contractual obligations set forth in the table below. The
following table summarizes our fixed contractual obligations and commitments as of March 31, 2007:
Total Fiscal 2008
Fiscal 2009
and 2010
Fiscal 2011
and 2012
Fiscal 2013
and thereafter
Payments Due by Period
(In thousands)
Convertible senior notes
(1)
.... $2,100,000 $ — $ — $1,100,000 $1,000,000
Purchase obligations
(2)
....... 217,691 208,337 9,327 27 —
Operating leases
(3)
.......... 415,234 85,481 118,085 73,097 138,571
Total contractual
obligations ............ $2,732,925 $293,818 $127,412 $1,173,124 $1,138,571
(1)
Convertible senior notes, due June 15, 2011 and June 15, 2013 collectively referred to as the Senior Notes.
Holders of the Senior Notes may convert their Senior Notes prior to maturity upon the occurrence of certain
circumstances. Upon conversion, we would pay the holder the cash value of the applicable number of shares of
Symantec common stock, up to the principal amount of the note. Amounts in excess of the principal amount, if
any, may be paid in cash or in stock at our option. As of March 31, 2007, those circumstances had not occurred.
(2)
Represents amounts associated with agreements that are enforceable, legally binding, and specify terms.
(3)
Includes $12 million related to facilities included in our restructuring reserve.
Purchase price adjustment
On December 1, 2006, we completed our acquisition of Company-i Limited for $26 million in cash. The
purchase price may be increased by up to $11 million in cash if Company-i meets certain billings targets by
September 30, 2008. Payments of the additional consideration may be accelerated if certain billings targets are met
by March 31, 2007 or September 30, 2007. Under the terms of the purchase agreement, Symantec has 90 days from
the respective dates to determine whether the billings target for payment of the additional consideration has been
met. Any increase in the purchase consideration would result in a corresponding increase in goodwill. We believe
that it is not determinable beyond a reasonable doubt that the billing targets are met as of March 31, 2007 and
therefore we have not booked an adjustment in accordance with SFAS No. 141, Business Combinations.
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. As of 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
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