Symantec 2012 Annual Report Download - page 129

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.
Recently issued and adopted authoritative guidance
In May 2011, the Financial Accounting Standards Board (“FASB”) issued an accounting standards update
that provided guidance on achieving a consistent definition of and common requirements for measurement and
disclosure of fair values in U.S. generally accepted accounting principles (“GAAP”) and International Financial
Reporting Standards (“IFRS”). The guidance expanded disclosures relating to fair value measurements that are
estimated using significant unobservable (Level 3) inputs. The guidance also required categorization by level of
the fair value hierarchy for items that are not measured at fair value but for which fair value is required to be
disclosed. We adopted this guidance in the fourth quarter of fiscal 2012. The adoption of this guidance did not
have a material impact on our Consolidated Financial Statements.
In June 2011, the FASB issued an accounting standards update that eliminates the option to report other
comprehensive income and its components in the statement of stockholders’ equity and requires that all
non-owner changes in stockholders’ equity be presented in either a single continuous statement of comprehensive
income or in two separate but consecutive statements. In December 2011, the FASB issued another accounting
standards update that defers the requirement to present reclassification adjustments for each component of
Accumulated other comprehensive income (“AOCI”) in both Other comprehensive income and Net income on
the face of the financial statements. The amended guidance will be adopted by us in the first quarter of fiscal
2013, on a retrospective basis, and will result only in changes in our financial statement presentation.
In September 2011, the FASB issued an accounting standards update that permits entities to first assess
qualitative factors to determine whether it is more likely than not (a likelihood of more than 50%) that the fair
value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to
perform the two-step goodwill impairment test. This new guidance will be adopted by us in fiscal 2013 on a
prospective basis, and will be applied in our fourth quarter of fiscal 2013 at the time we perform our annual
goodwill test. We do not expect that this guidance will materially impact our Consolidated Financial Statements.
In December 2011, the FASB issued an accounting standards update that will require us to disclose
information about offsetting and related arrangements associated with certain financial and derivative
instruments to enable users of our financial statements to better understand the effect of those arrangements on
our financial position. The new guidance will be applicable to us on a retrospective basis in the first quarter of
fiscal 2014. We do not expect that this guidance will materially impact our disclosures included in our
Consolidated Financial Statements.
Item 7A. Quantitative and Qualitative Disclosures about Market Risk
We are exposed to various market risks related to fluctuations in interest rates, foreign currency exchange
rates, and equity prices. We may use derivative financial instruments to mitigate certain risks in accordance with
our investment and foreign exchange policies. We do not use derivatives or other financial instruments for
trading or speculative purposes.
Interest rate risk
As of March 30, 2012, we had $1.1 billion in principal amount of fixed-rate Senior Notes outstanding, with
a carrying amount of $1.1 billion and a fair value of $1.13 billion, which fair value is based on Level 2 inputs of
market prices for similar convertible debt instruments and resulting yields. On March 30, 2012, a hypothetical 50
bps increase or decrease in market interest rates would change the fair value of the fixed-rate debt by a decrease
50