Symantec 2010 Annual Report Download - page 124

Contractual Obligations and Commitments
The following table summarizes our significant contractual obligations and commitments as of April 2, 2010:
Total Fiscal 2011
Fiscal 2012
and 2013
Fiscal 2014
and 2015
Fiscal 2016
and Thereafter Other
Payments Due by Period
(In millions)
Convertible Senior Notes
(1)
................. $2,100 $ — $1,100 $1,000 $— $ —
Interest payments on Convertible Senior
Notes
(1)
.............................. 42 18 22 2 — —
Purchase obligations
(2)
.................... 421 334 85 2 — —
Operating leases
(3)
....................... 392 90 133 87 82 —
Norton royalty agreement
(4)
................ 5 3 2 — — —
Uncertain tax positions
(5)
.................. 426 — — — — 426
Totalcontractualobligations................ $3,386 $445 $1,342 $1,091 $82 $426
(1)
Senior Notes are due in fiscal 2012 and 2014. 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 our 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 April 2, 2010, the
conditions to conversion had not been met. Interest payments were calculated based on terms of the related
notes.
(2)
These amounts are associated with agreements for purchases of goods or services generally including
agreements that are enforceable and legally binding and that specify all significant terms, including fixed
or minimum quantities to be purchased; fixed, minimum, or variable price provisions; and the approximate
timing of the transaction. The table above also includes agreements to purchase goods or services that have
cancellation provisions requiring little or no payment. The amounts under such contracts are included in the
table above because management believes that cancellation of these contracts is unlikely and the Company
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-cancellable operating lease agreements that expire on various dates through
2029. The amounts in the table above include $21 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 2, 2010, we reflected $426 million in long term taxes payable related to uncertain tax positions. 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
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