Symantec 2008 Annual Report Download - page 174

included them in Other current assets on our Consolidated Balance Sheets. SFAS No. 144 provides that a long-lived
asset classified as held for sale should be measured at the lower of its carrying amount or fair value less cost to sell.
We recorded a $1 million impairment loss because the carrying value was greater than the estimated fair value less
cost to sell for the year ended March 28, 2008. This impairment was included in Research and development expense
on our Consolidated Statements of Income. We believe that these sales will be completed no later than the end of
fiscal 2009.
Note 11. Commitments
Leases
We lease certain of our facilities and equipment under operating leases that expire at various dates through
2022. 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 28, 2008:
Lease
Commitment
Sublease
Income
Net Lease
Commitment
(In thousands)
2009 .......................................... $102,799 $ 5,948 $ 96,851
2010 .......................................... 86,422 6,348 80,074
2011 .......................................... 66,734 5,475 61,259
2012 .......................................... 53,954 3,488 50,466
2013 .......................................... 46,831 2,442 44,389
Thereafter ...................................... 164,012 2,744 161,268
$520,752 $26,445 494,307
The net lease commitment amount includes $13 million related to facilities that are included in our
restructuring reserve. For more information, see Note 16.
Rent expense charged to operations totaled $87 million, $83 million, and $70 million in fiscal 2008, 2007, and
2006, respectively.
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 not material.
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.
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SYMANTEC CORPORATION
Notes to Consolidated Financial Statements — (Continued)