Symantec 2007 Annual Report Download - page 61

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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 directors and officers insurance coverage that reduces our exposure
and may enable us to recover a portion of any future amounts paid. We believe the estimated fair value of these
indemnification agreements in excess of applicable insurance coverage is minimal.
We provide limited product warranties and the majority of our software license agreements contain provisions
that indemnify licensees of our software from damages and costs resulting from claims alleging that our software
infringes the intellectual property rights of a third party. Historically, payments made under these provisions have
been insignificant. We monitor the conditions that are subject to indemnification to identify if a loss has occurred.
Newly Adopted and Recently Issued Accounting Pronouncements
Recent accounting pronouncements
In February 2007, the Financial Accounting Standards Board, or FASB, issued SFAS No. 159, The Fair Value
Option for Financial Assets and Financial Liabilities, including an amendment of SFAS No. 115. SFAS No. 159
permits companies to choose to measure certain financial instruments and certain other items at fair value and
requires unrealized gains and losses on items for which the fair value option has been elected to be reported in
earnings. SFAS No. 159 is effective for fiscal years beginning after November 15, 2007. We are currently in the
process of evaluating the impact of SFAS No. 159 on our consolidated financial statements.
In September 2006, the FASB issued SFAS No. 157, Fair Value Measurements. SFAS No. 157 establishes a
framework for measuring the fair value of assets and liabilities. This framework is intended to provide increased
consistency in how fair value determinations are made under various existing accounting standards which permit, or
in some cases require, estimates of fair market value. SFAS No. 157 is effective for fiscal years beginning after
November 15, 2007, and interim periods within those fiscal years. Earlier application is encouraged, provided that
the reporting entity has not yet issued financial statements for that fiscal year, including any financial statements for
an interim period within that fiscal year. We are currently in the process of evaluating the impact of SFAS No. 157
on our consolidated financial statements.
In September 2006, the FASB issued Emerging Issues Task Force Issue, or EITF, No. 06-1, Accounting for
Consideration Given by a Service Provider to a Manufacturer or Reseller of Equipment Necessary for an End-
Customer to Receive Service from the Service Provider. EITF No. 06-1 requires that we provide disclosures
regarding the nature of arrangements in which we provide consideration to manufacturers or resellers of equipment
necessary for an end-customer to receive service from us, including the amounts recognized in the Consolidated
Statements of Income. EITF 06-1 is effective for fiscal years beginning after June 15, 2007. We do not expect the
adoption of EITF No. 06-1 to have a material impact on our consolidated financial statements.
In June 2006, the FASB issued FIN 48, Accounting for Uncertainty in Income Taxes — an interpretation of
FASB Statement No. 109. The interpretation contains a two-step approach to recognizing and measuring uncertain
tax positions accounted for in accordance with SFAS No. 109. The first step is to evaluate the tax position for
recognition by determining if the weight of available evidence indicates that it is more likely than not that the
position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second
step is to measure the tax benefit as the largest amount which is more than 50% likely of being realized upon
ultimate settlement. FIN 48 is effective for fiscal years beginning after December 15, 2006. We are currently in the
process of evaluating the impact of FIN 48 on our consolidated financial statements.
In February 2006, the FASB issued SFAS No. 155, Accounting for Certain Hybrid Financial Instruments,
which amends SFAS No. 133, Accounting for Derivative Instruments and Hedging Activities, and SFAS No. 140,
Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities. SFAS No. 155
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