Symantec 2009 Annual Report Download - page 146

Revolving credit facility
In July 2006, we entered into a five-year $1 billion senior unsecured revolving credit facility that expires in
July 2011. Borrowings under the facility bear interest, at our option, at either a rate equal to the bank’s base rate or a
rate equal to LIBOR plus a margin based on our leverage ratio, as defined in the credit facility agreement. In
connection with the credit facility, we must maintain certain covenants, including a specified ratio of debt to
earnings (before interest, taxes, depreciation, amortization and impairments) as well as various other non-financial
covenants.
On November 29, 2007, we borrowed $200 million under this credit agreement to partially finance our
acquisition of Vontu with an interest rate of 4.7075% per annum due and payable quarterly. During the first quarter
of fiscal 2009, we repaid the entire line of credit principal amount of $200 million plus accrued interest of
$3 million. Total interest expense associated with this borrowing was approximately $6 million. As of April 3, 2009,
we were in compliance with all required covenants, and there was no outstanding balance on the credit facility.
Note 9. Restructuring
Our restructuring costs consist of severance, benefits, facilities and other costs. Severance and benefits
generally include severance, stay-put or one-time bonuses, outplacement services, health insurance coverage,
effects of foreign currency exchange and legal costs. Facilities’ costs generally include rent expense, less expected
sublease income and lease termination costs. Other costs generally include relocation, asset abandonment costs, the
effects of foreign currency exchange and consulting services. Restructuring expenses generally do not impact a
particular reporting segment and are included in the “Other” reporting segment.
Charges for severance, benefits and facilities were $75 million, $74 million, and $70 million for fiscal 2009,
2008, and 2007, respectively. Charges for fiscal 2009, 2008, and 2007 periods were primarily related to severance
and benefits related to the worldwide headcount reduction actions in each year as well as the business structure
changes in the 2008 Plan described below which occurred in fiscal 2009.
Additionally, we incurred $21 million in charges for transition and transformation fees, consulting charges and
other costs related to the outsourcing of back office functions in fiscal 2009.. The transition and transformation
related activities are expected to be substantially complete at the end of fiscal 2010. Total remaining costs for these
activities are estimated to be $40 million.
2009 Restructuring Plan (“2009 Plan”)
In the third quarter of fiscal 2009, management approved and initiated the following restructuring events to:
•Reduce operating costs through a worldwide headcount reduction. Charges related to this action are for
severance and benefits. These actions were initiated in the third quarter of fiscal 2009 and are expected to be
substantially completed in fiscal 2010. Total remaining costs for relocation are not expected to be material.
•Consolidate facilities. In an ongoing effort to consolidate facilities, we decided to move our corporate
headquarters to Mountain View, California. Charges related to this action will primarily be associated with
moving costs. These actions have been initiated and costs are expected to be substantially completed in fiscal
2010 but are not expected to be material.
2008 Restructuring Plan (“2008 Plan”)
In the third quarter of fiscal 2008, management approved and initiated the following restructuring events to:
•Reduce operating costs through a worldwide headcount reduction. This action was initiated in the third
quarter of fiscal 2008 and was substantially completed in the fourth quarter of fiscal 2008. Charges related to
this action are for severance and benefits. Total remaining costs are not expected to be material.
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SYMANTEC CORPORATION
Notes to Consolidated Financial Statements — (Continued)