Symantec 2010 Annual Report Download - page 163

conversion ratio provided under the terms of the Senior Notes. See Note 14 for information regarding the impact on
EPS of the Senior Notes and warrants in the current period.
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. As of April 2, 2010, we were in compliance with all required covenants, and there was no outstanding
balance on the credit facility.
Note 8. Restructuring
Upon approval of a restructuring plan by management with the appropriate level of authority, we record
restructuring liabilities in accordance with the authoritative guidance. Liabilities for costs associated with an exit or
disposal activity are recognized when the liability is incurred, as opposed to when management commits to an exit
plan. In addition, (i) liabilities associated with exit and disposal activities are measured at fair value; (ii) one-time
termination benefits are expensed at the date the entity notifies the employee, unless the employee must provide
future service, in which case the benefits are expensed ratably over the future service period; and (iii) costs to
terminate a contract before the end of its term are recognized when the entity terminates the contract in accordance
with the contract terms. In addition, a portion of the restructuring costs related to international employees whose
termination benefits are recognized when the amount of such termination benefits becomes estimable and payment
is probable. We record other costs associated with exit activities as they are incurred.
Our restructuring costs and liabilities consist of severance, benefits, facilities and other costs. Severance and
benefits generally include severance, 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 the effects of foreign currency exchange and consulting services.
Also included in Restructuring in our Consolidated Statements of Operations are transition and transformation fees,
consulting services, and other costs related to the outsourcing of back office functions. Restructuring expenses are
included in the Other reporting segment.
Charges for restructuring costs were $94 million, $96 million, and $74 million for fiscal 2010, 2009 and 2008,
respectively. These amounts include transition, transformation, consulting costs and related other costs of
$28 million and $21 million for fiscal 2010 and 2009, respectively. There were no transition, transformation,
consulting costs and related other costs in fiscal 2008. Transition and transformation related activities are expected
to be substantially completed in fiscal 2011. Total remaining costs for transition and transformation activities are
estimated to range from approximately $10 million to $20 million.
Restructuring Plans
The following details restructuring plans that management has committed to and are not substantially
completed:
2010 Restructuring Plan (“2010 Plan”)
In the fourth quarter of fiscal 2010, management approved and initiated the following restructuring events to:
•Reduce operating costs through a workforce realignment. This action was initiated to more appropriately
allocate resources to the Company’s key strategic initiatives. Charges related to this action are for severance
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Notes to Consolidated Financial Statements — (Continued)