Symantec 2012 Annual Report Download - page 167

SYMANTEC CORPORATION
Notes to Consolidated Financial Statements — (Continued)
Revolving credit facility
In fiscal 2011, we entered into a four-year $1.0 billion senior unsecured revolving credit facility (“credit
facility”) that expires on September 8, 2014. The credit facility provides that we may borrow up to $1.0 billion
under revolving loans. Revolving loans under the credit facility bear interest, at our option, either at a rate equal
to a) LIBOR plus a margin based on our consolidated leverage ratio, as defined in the credit facility agreement or
b) the bank’s prime rate plus a margin based on our consolidated leverage ratio, as defined in the credit facility
agreement. Under the terms of this credit facility, we must comply with certain financial and non-financial
covenants, including a covenant to maintain a specified ratio of debt to EBITDA (earnings before interest, taxes,
depreciation and amortization). As of March 30, 2012, we were in compliance with all required covenants, and
no amounts were outstanding.
Note 7. Restructuring and Transition
Our restructuring and transition costs and liabilities consist primarily of severance, facilities costs, and
transition and other related costs. Severance generally includes severance payments, outplacement services,
health insurance coverage, effects of foreign currency exchange, and legal costs. Facilities costs generally
include rent expense and lease termination costs, less estimated sublease income. Transition and other related
costs consist of severance costs associated with acquisition integrations in efforts to streamline our business
operations, consulting charges associated with the planning and design phase of implementing a new enterprise
resource planning system, and costs related to the outsourcing of certain back office functions. Restructuring and
transition costs are included in the Other segment.
Restructuring plans
The following restructuring plans are substantially complete:
•Fiscal 2011 plan. In the first quarter of fiscal 2011, management approved and initiated a plan to
expand our consulting partner sales and delivery capabilities. This action was initiated to expand our
partner eco-system to better leverage their customer reach and operational scale, which resulted in a
headcount reduction within our consulting services organization.
•Fiscal 2010 plan. In the fourth quarter of fiscal 2010, management approved and initiated a plan to
reduce worldwide operating costs through workforce realignment and to reduce operating costs through a
facilities consolidation. These actions were initiated to appropriately allocate resources to our key
strategic initiatives and streamline our operations to deliver better and more efficient support to our
customers and employees. During fiscal 2011, we terminated certain operating leases and consolidated
facilities in North America and Europe. Excess facility obligations are expected to be paid over the
respective lease terms, the longest of which extends through fiscal 2016.
Other exit and disposal costs
Our other exit and disposal costs consist primarily of costs associated with closing or consolidating certain
facilities that are not accounted for under the restructuring plans above. Largely as a result of business
acquisitions, management may deem certain leased facilities to be in excess and make a plan to exit them either
at the time of acquisition or after the acquisition in conjunction with our efforts to integrate and streamline our
operations. As of March 30, 2012, liabilities for these excess facility obligations at several locations around the
world are expected to be paid over the respective lease terms, the longest of which extends through fiscal 2018.
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