Symantec 2012 Annual Report Download - page 123

other related costs. The transition charges incurred were primarily due to the planning and design phase of
implementing a new enterprise resource planning system. For fiscal 2011, we recognized $47 million of
severance, $27 million of facilities costs, and $18 million of transition and other related costs. For fiscal 2010, we
recognized $56 million of severance, $10 million of facilities costs, and $28 million of transition and other
related costs. For further information on restructuring and transition, see Note 7 of the Notes to Consolidated
Financial Statements.
For fiscal 2012, we recorded an impairment of $4 million which reduced the gross carrying value of
indefinite-lived tradenames. During fiscal 2011, we recorded an impairment of $27 million which reduced the
gross carrying value of indefinite-lived tradenames.
During fiscal 2010, we recognized impairments of $20 million on certain land and buildings classified as
held for sale. The impairments were recorded in accordance with the authoritative guidance that requires a long-
lived asset classified as held for sale to be measured at the lower of its carrying amount or fair value, less cost to
sell. Also, in fiscal 2010, we sold assets for $42 million which resulted in losses of $10 million.
Non-operating income (expense)
Fiscal
2012
2012 vs. 2011 Fiscal
2011
2011 vs. 2010 Fiscal
2010$ % $ %
($ in millions)
Interest income .............................. $ 13 $ 10 $ 6
Interest expense ............................. (115) (143) (129)
Other (expense) income, net ................... (6) (2) 55
Loss on early extinguishment of debt ............ — (16) —
Loss from joint venture ....................... (27) (31) (39)
Gain from sale of joint venture ................. 526 — —
Total .................................... $391 $573 (315)% $(182) $(75) 70% $(107)
Percentage of total net revenue ................. 6% (3)% (2)%
We had net non-operating income for fiscal 2012, as compared to net non-operating expense in fiscal 2011.
In fiscal 2012, we had a gain of $526 million from the sale of our joint venture interest described below, and also
had lower interest expense from our repayment of the $1.1 billion convertible senior notes that we issued in fiscal
2007. In the second quarter of fiscal 2011 and the first quarter of fiscal 2012, we made payments of $500 million
and $600 million, respectively, to retire the notes. In fiscal 2011, we recorded a loss on early extinguishment of
debt of $16 million due to the repurchase of $500 million of aggregate principal amount of the 0.75% Notes due
on June 15, 2011. See Note 6 of the Notes to Consolidated Financial Statements for information on our debt.
Non-operating expense increased for fiscal 2011, as compared to fiscal 2010, due in part to the interest
expense on the Senior Notes of $1.1 billion issued in the second quarter of fiscal 2011. For fiscal 2011, other
(expense) income, net included a $21 million loss from the liquidation of certain foreign legal entities, partially
offset by a realized gain on the sale of marketable securities, compared to fiscal 2010 in which we recorded a $47
million gain from the liquidation of certain foreign legal entities.
On February 5, 2008, Symantec formed Huawei-Symantec, Inc. (“joint venture”) with a subsidiary of
Huawei Technologies Co., Ltd. (“Huawei”). The joint venture was domiciled in Hong Kong with principal
operations in Chengdu, China. The joint venture developed, manufactured, marketed, and supported security and
storage appliances on behalf of global telecommunications carriers and enterprise customers. As discussed in
Note 5 of the Notes to Consolidated Financial Statements, we sold our 49% ownership interest in the joint
venture to Huawei on March 30, 2012 for $526 million, net.
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