Symantec 2009 Annual Report Download - page 110

expects to make future cash payments according to the contract terms or in similar amounts for similar
materials.
(3)
We have entered into various non-cancelable operating lease agreements that expire on various dates through
2029. The amounts in the table above include $27 million related to exited or excess facility costs related to
restructuring activities.
(4)
In June 2007, we amended an existing royalty agreement with Peter Norton for the licensing of certain publicity
rights. As a result, we recorded a long-term liability reflecting the net present value of expected future royalty
payments due to Mr. Norton.
(5)
As of April 3, 2009, we reflected $522 million in long term taxes payable related to uncertain tax benefits. At
this time, we are unable to make a reasonably reliable estimate of the timing of payments in individual years
beyond the next twelve months due to uncertainties in the timing of the commencement and settlement of
potential tax audits and controversies.
Indemnifications
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
In April 2009, the FASB issued (1) FSP FAS 115-2 and FSP FAS 124-2, which provides guidance on
determining other-than-temporary impairments for debt securities; and (2) FSP FAS 107-1 and FSP APB 28-1,
which provides additional fair value disclosures for financial instruments in interim periods. Each of these FSPs are
effective for interim and annual periods ending after June 15, 2009. We do not expect the adoption of these FSPs to
have a material impact on our consolidated financial statements.
In June 2008, the FASB issued EITF Issue No. 07-5, Determining Whether an Instrument (or an Embedded
Feature) Is Indexed to an Entity’s Own Stock. EITF Issue No. 07-5 provides guidance on evaluating whether an
equity-linked financial instrument (or embedded feature) is indexed to a company’s own stock, including evaluating
the instrument’s contingent exercise and settlement provisions. EITF Issue No. 07-5 is effective for fiscal years
beginning after December 15, 2008. We are currently assessing the impact of EITF Issue No. 07-5 on our
consolidated financial statements.
In May 2008, the FASB issued FSPAPB No. 14-1, Accounting for Convertible Debt Instruments That May Be
Settled in Cash upon Conversion (Including Partial Cash Settlement). The FSP will require the issuer of convertible
debt instruments with cash settlement features to separately account for the liability and equity components of the
instrument. The debt will be recognized at the present value of its cash flows discounted using the issuer’s
nonconvertible debt borrowing rate at the time of issuance. The equity component will be recognized as the
difference between the proceeds from the issuance of the note and the fair value of the liability. The FSP will also
require interest to be accreted as interest expense of the resultant debt discount over the expected life of the debt.
The transition guidance requires retrospective application to all periods presented, and does not grandfather existing
instruments. The guidance will be effective for fiscal years beginning after December 15, 2008, and interim periods
within those years. As such, we will adopt the FSP in the first quarter of fiscal year 2010. Our 0.75% Convertible
Senior Notes due June 15, 2011, and our 1.00% Convertible Senior Notes due June 15, 2013 (collectively the
“Senior Notes”), each issued in June 2006, are subject to the FSP.
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