Symantec 2010 Annual Report Download - page 166

Purchase Obligations
We have purchase obligations of $421 million as of April 2, 2010 that are associated with agreements for
purchases of goods or services. Management believes that cancellation of these contracts is unlikely and we expect
to make future cash payments according to the contract terms.
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.
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.
Litigation Contingencies
For a discussion of our pending tax litigation with the Internal Revenue Service relating to the 2000 and 2001
tax years of Veritas, see Note 13.
On July 7, 2004, a purported class action complaint entitled Paul Kuck, et al. v. Veritas Software Corporation,
et al. was filed in the United States District Court for the District of Delaware. The lawsuit alleges violations of
federal securities laws in connection with Veritas’ announcement on July 6, 2004 that it expected results of
operations for the fiscal quarter ended June 30, 2004 to fall below earlier estimates. The complaint generally seeks
an unspecified amount of damages. Subsequently, additional purported class action complaints have been filed in
Delaware federal court, and, on March 3, 2005, the Court entered an order consolidating these actions and
appointing lead plaintiffs and counsel. A consolidated amended complaint (“CAC”), was filed on May 27, 2005,
expanding the class period from April 23, 2004 through July 6, 2004. The CAC also named another officer as a
defendant and added allegations that Veritas and the named officers made false or misleading statements in press
releases and SEC filings regarding the company’s financial results, which allegedly contained revenue recognized
from contracts that were unsigned or lacked essential terms. The defendants to this matter filed a motion to dismiss
the CAC in July 2005; the motion was denied in May 2006. In April 2008, the parties filed a stipulation of
settlement. On July 31, 2008, the Court held a final approval hearing and, on August 5, 2008, the Court entered an
order approving the settlement. An objector to the fees portion of the settlement has lodged an appeal. In fiscal 2008,
we recorded an accrual in the amount of $21.5 million for this matter and, pursuant to the terms of the settlement, we
established a settlement fund of $21.5 million on May 1, 2008.
We are also involved in a number of other judicial and administrative proceedings that are incidental to our
business. Although adverse decisions (or settlements) may occur in one or more of the cases, it is not possible to
estimate the possible loss or losses from each of these cases. The final resolution of these lawsuits, individually or in
the aggregate, is not expected to have a material adverse effect on our financial condition or results of operations.
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SYMANTEC CORPORATION
Notes to Consolidated Financial Statements — (Continued)