Symantec 2012 Annual Report Download - page 131

The convertible senior notes have a fixed annual interest rate and therefore, we do not have economic
interest rate exposure on the convertible senior notes. However, the values of the convertible senior notes are
exposed to interest rate risk. Generally, the fair market value of our fixed interest rate convertible senior notes
will increase as interest rates fall and decrease as interest rates rise. In addition, the fair values of our convertible
senior notes are affected by our stock price. The carrying value of the 1.00% notes was $941 million as of
March 30, 2012 which represents the liability component of the $1.0 billion principal balance. The total
estimated fair value of our 1.00% notes at March 30, 2012 was $1.1 billion and the fair value was determined
based on the closing trading price per $100 of the 1.00% notes as of the last day of trading for the fourth quarter
of fiscal 2012, which was $111.50. See Note 6 of the Notes to Consolidated Financial Statements.
For business and strategic purposes, we also hold equity interests in several privately held companies, many
of which can be considered to be in the start-up or development stages. These investments are inherently risky
and we could lose a substantial part or our entire investment in these companies. These investments are recorded
at cost and classified as Other long-term assets in the Consolidated Balance Sheets. As of March 30, 2012, we
held equity investments in privately-held companies of $40 million.
Item 8. Financial Statements and Supplementary Data
Annual financial statements
The Consolidated Financial Statements and related disclosures included in Part IV, Item 15 of this annual
report are incorporated by reference into this Item 8.
Selected quarterly financial data
Fiscal 2012 Fiscal 2011
Mar. 30,
2012(a)
Dec. 30,
2011
Sep. 30,
2011
Jul. 1,
2011
Apr. 1,
2011
Dec. 31,
2010
Oct. 1,
2010
Jul. 2,
2010
(Unaudited)
(In millions, except per share data)
Net revenue ........................... $1,681 $1,715 $1,681 $1,653 $1,673 $1,604 $1,480 $1,433
Gross profit ........................... 1,394 1,444 1,416 1,394 1,403 1,340 1,234 1,168
Operating income ...................... 192 300 285 302 239 229 218 194
Net income ........................... 559 241 182 190 166 132 134 161
Less: Income (loss) attributable to
noncontrolling interest ................. — 1 — (1) (2) — (2) —
Net income attributable to Symantec
Corporation stockholders .............. 559 240 182 191 168 132 136 161
Net income per share attributable to Symantec
Corporation stockholders — basic ....... $ 0.77 $ 0.33 $ 0.24 $ 0.25 $ 0.23 $ 0.17 $ 0.17 $ 0.20
Net income per share attributable to Symantec
Corporation stockholders — diluted ...... $ 0.76 $ 0.32 $ 0.24 $ 0.25 $ 0.22 $ 0.17 $ 0.17 $ 0.20
(a) During the fourth quarter of fiscal 2012, we sold our 49% ownership interest in the joint venture to Huawei
for $530 million in cash. The gross proceeds of $530 million, offset by costs to sell the joint venture of $4
million, are included in “Gain from sale of joint venture” reflected in our fiscal 2012 Consolidated
Statements of Income.
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
None.
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