Symantec 2012 Annual Report Download - page 165

SYMANTEC CORPORATION
Notes to Consolidated Financial Statements — (Continued)
As of March 30, 2012, future maturities of long-term debt are as follows (in millions):
2013 ...................................................................... $ —
2014 ...................................................................... 1,000
2015 ...................................................................... —
2016 ...................................................................... 350
Thereafter .................................................................. 750
Total ...................................................................... $2,100
Senior Notes
We issued the 4.20% notes and 2.75% notes in September 2010. These are senior unsecured obligations that
rank equally in right of payment with all of our existing and future unsecured and unsubordinated obligations and
are redeemable by us at any time, subject to a “make-whole” premium. Our proceeds from the issuance of the
senior notes were $1.1 billion, net of an issuance discount. Interest on these notes is payable semiannually.
Contractual interest expense was $41 million and $22 million in fiscal 2012 and 2011, respectively.
Convertible Senior Notes
We issued the 1.00% notes and 0.75% notes in June 2006. In September 2010, we repurchased $500 million
of aggregate principal amount of our 0.75% convertible senior notes in privately negotiated transactions for
approximately $510 million. Concurrently with the repurchase, we sold a proportionate share of the note hedges
that we entered into at the time of the issuance of the convertible senior notes back to the note hedge
counterparties for approximately $13 million. The net cost of the repurchase and the concurrent sale of the note
hedges was $497 million in cash. On June 15, 2011, the remaining principal balance on our 0.75% convertible
senior notes matured and was settled by a cash payment of $600 million. Concurrent with the maturity, the
remaining related note hedges and warrants expired. No portion of it was converted into our common shares
upon maturity.
As of March 30, 2012, the remaining amortization period of the discount and debt issuance costs associated
with the 1.00% notes is approximately one year and the “if-converted” value of the 1.00% notes does not exceed
the principal amount. Contractual interest expense was $11 million, $16 million, and $18 million in fiscal 2012,
2011, and 2010, respectively. Amortization of the debt discount was $56 million, $96 million, and $104 million
in fiscal 2012, 2011, and 2010, respectively. Interest on these notes is payable semiannually.
The following table summarizes information regarding the equity and liability components of the
convertible senior notes:
As of
March 30,
2012
April 1,
2011
(In millions)
Principal amount .................................................. $1,000 $1,600
Equity component ................................................. 313 462
Liability component ................................................ 941 1,485
Unamortized discount .............................................. 59 115
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