Symantec 2014 Annual Report Download - page 123

Restructuring and transition costs consist of transition, severance, facilities, and other related costs. For
fiscal 2013, we recognized $114 million of transition and other related costs, $10 million of severance, and $1
million of facilities costs. For further information on restructuring and transition costs, see Note 7 of the Notes to
Consolidated Financial Statements in this annual report.
We experienced favorable foreign currency effects on our operating expenses of $99 million in the year
ended March 29, 2013, as compared to the year ended in fiscal 2012.
Non-operating income (expense)
Fiscal Change in Fiscal Change in Fiscal
2014 $ % 2013 $ % 2012
(Dollars in millions)
Interest income $ 12 $ 12 $ 13
Interest expense (84) (139) (115)
Other income (expense), net 45 27 (6)
Loss from joint venture - - (27)
Gain from sale of joint venture - - 526
Total $ (27) $ 73 73 % $ (100) $ (491) (126)% $ 391
Percentage of total net
revenue -%(1)%6%
Fiscal 2014 compared to Fiscal 2013:
The decrease in non-operating expense, net, is primarily driven by a realized gain from sale of short-term
investments of $32 million during fiscal 2014, coupled with a decrease in interest expense of $55 million as we
experienced lower amortization of debt issuance costs and discounts following the maturity of our $1.0 billion
1.00% notes in June 2013.
Fiscal 2013 compared to Fiscal 2012:
In the first quarter of fiscal 2013, we issued $600 million in principal amount of 2.75% interest-bearing
senior notes due June 2017 and $400 million in principal amount of 3.95% interest-bearing senior notes due June
2022, which resulted in interest expense of $26 million in fiscal 2013. Other income (expense), net increased due
to a tax incentive received from the China tax bureau in the form of value-added tax refunds of $33 million.
Provision for income taxes
Fiscal Change in Fiscal Change in Fiscal
2014 $ % 2013 $ % 2012
(Dollars in millions)
Provision for income taxes $ 258 $ 7 3 % $ 251 $ (57) (19)% $ 308
Effective tax rate on earnings 22 % 25 % 21 %
Our effective tax rate was approximately 22%, 25%, and 21% in fiscal 2014, 2013, and 2012, respectively.
The tax expense in fiscal 2014 was reduced by the following benefits: (1) $33 million for the resolution of a
tax matter related to the sale of our 49% ownership interest in the joint venture with Huawei during the fourth
quarter of fiscal 2012, (2) $24 million for tax benefits related to the settlement of the Symantec 2005 through
2008 Internal Revenue Service (“IRS”) audit, (3) $15 million tax benefit related to certain foreign operations, and
(4) $13 million from lapses of statutes of limitation. These tax benefits were partially offset by $12 million in tax
expense, resulting from the sale of short-term investments.
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