Symantec 2008 Annual Report Download - page 134

Subordinated Notes, or the 0.25% Notes assumed in the Veritas acquisition; these amounts were partially offset by
$326 million received from the sale of common stock warrants and $230 million received from the issuance of our
common stock through employee stock plans.
Fiscal 2007 Compared to Fiscal 2006: During fiscal 2006, we repurchased 174 million shares of our
common stock for $3.6 billion and repaid the entire balance of $491 million from a short-term loan assumed in the
Veritas acquisition, partially offset by $210 million in proceeds from the issuance of our common stock through
employee stock plans.
Purchase price adjustment
As a result of Company-i meeting target billings conditions in the first quarter of fiscal 2008, as was stipulated
in the Company-i merger agreement, we paid the former shareholders of Company-i an additional $11 million in
cash. This increase in purchase price resulted in a respective increase in goodwill.
Convertible 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 28, 2008, the conditions to convertibility of the Senior
Notes had not been met.
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 28, 2008 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 immaterial. 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 May 2008, the FASB issued SFAS No. 162, The Hierarchy of Generally Accepted Accounting Principles.
SFAS No. 162 defines the order in which accounting principles that are generally accepted should be followed.
SFAS No. 162 is effective 60 days following the SEC’s approval of the Public Company Accounting Oversight
Board (“PCAOB”) amendments to AU Section 411, The Meaning of Present Fairly in Conformity with Generally
Accepted Accounting Principles. We do not expect the adoption of SFAS No. 162 to have a material impact on our
consolidated financial statements.
In April 2008, the FASB finalized Staff Position (“FSP”) No. 142-3, Determination of the Useful Life of
Intangible Assets. The position amends the factors that should be considered in developing renewal or extension
assumptions used to determine the useful life of a recognized intangible asset under FASB Statement of Financial
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