Symantec 2012 Annual Report Download - page 164
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SYMANTEC CORPORATION
Notes to Consolidated Financial Statements — (Continued)
Note 5. Investment in Joint Venture
On February 5, 2008, Symantec formed Huawei-Symantec Technologies Co., Ltd. (“joint venture”) with a
subsidiary of Huawei Technologies Co., Limited (“Huawei”). The joint venture was domiciled in Hong Kong
with principal operations in Chengdu, China. We had an ownership interest of 49% which was accounted for
under the equity method of accounting. As of March 30, 2012, our equity investment was zero. As such, we did
not provide for additional losses as we have no commitments to provide financial support to the joint venture.
On March 30, 2012, we sold our 49% ownership interest in the joint venture to Huawei for $ 530 million in
cash. The gain of $530 million, offset by costs to sell the joint venture of $4 million, is included in “Gain from
sale of joint venture” reflected in our Consolidated Statements of Income.
Note 6. Long-Term Debt
The following table summarizes components of our long-term debt:
As of March 30, 2012
Effective
Face Value interest rate Fair Value(2)
(In millions)
4.20% Senior Notes, due September 2020 (“4.20% notes”) ......... $ 750 4.25% $ 771
2.75% Senior Notes, due September 2015 (“2.75% notes”) ......... 350 2.76% 363
1.00% Convertible Senior Notes, due June 2013 (“1.00% notes”) .... 1,000 6.78%(1) 1,115
As of April 1, 2011
Face Value
Effective
interest rate
Fair Value(2)
(In millions)
4.20% notes ............................................... $ 750 4.25% $ 706
2.75% notes ............................................... 350 2.76% 340
1.00% notes ............................................... 1,000 6.78%(1) 1,208
0.75% Convertible Senior Notes, due June 2011 (“0.75% notes”) .... 600 6.78%(1) 618
(1) Represents the interest rate on our debt for accounting purposes while taking into account the effects of
amortization of debt discount. Although the effective interest rates of the 1.00% notes and 0.75% notes were
6.78%, we are making cash interest payments at the stated coupon rates of 1.00% and 0.75%, respectively.
(2) The fair value of long-term debt relies on Level 2 inputs. See Note 2 for definition of Level 2 inputs. For
convertible senior notes, the fair value represents that of the liability component. See Note 1 for our
accounting policy of estimating the fair value of our long-term debt.
85