Symantec 2014 Annual Report Download - page 129

Indemnifications
In the ordinary course of business, we may provide indemnifications of varying scope and terms to
customers, vendors, lessors, business partners, subsidiaries and other parties with respect to certain matters,
including, but not limited to, losses arising out of our breach of agreements or representations and warranties
made by us. In addition, our bylaws contain indemnification obligations to our directors, officers, employees and
agents, and we have entered into indemnification agreements with our directors and certain of our officers to give
such directors and officers additional contractual assurances regarding the scope of the indemnification set forth
in our bylaws and to provide additional procedural protections. We maintain director and officer insurance,
which may cover certain liabilities arising from our obligation to indemnify our directors and officers. It is not
possible to determine the aggregate maximum potential loss under these indemnification agreements due to the
limited history of prior indemnification claims and the unique facts and circumstances involved in each particular
agreement. Such indemnification agreements might not be subject to maximum loss clauses. Historically, we
have not incurred material costs as a result of obligations under these agreements and we have not accrued any
liabilities related to such indemnification obligations in our Consolidated Financial Statements.
We provide limited product warranties and the majority of our software license agreements contain
provisions that indemnify licensees of our software from damages and costs resulting from claims alleging that
our software infringes on the intellectual property rights of a third party. Historically, payments made under these
provisions have been immaterial. We monitor the conditions that are subject to indemnification to identify if a
loss has occurred.
Recently issued authoritative guidance
There was no recently issued authoritative guidance that had a material impact to our Consolidated
Financial Statements.
Item 7A. Quantitative and Qualitative Disclosures about Market Risk
We are exposed to various market risks related to fluctuations in interest rates, foreign currency exchange
rates, and equity prices. We may use derivative financial instruments to mitigate certain risks in accordance with
our investment and foreign exchange policies. We do not use derivatives or other financial instruments for
trading or speculative purposes.
Interest rate risk
As of March 28, 2014, we had $2.10 billion in principal amount of fixed-rate senior notes outstanding, with
a carrying amount of $2.10 billion and a fair value of $2.17 billion, which fair value is based on level 2 inputs of
market prices for similar debt instruments and resulting yields. We have performed sensitivity analyses as of
March 28, 2014 by using a modeling technique that measures the change in the fair values arising from a
hypothetical 50 bps movement in the levels of interest rates across the entire yield curve, with all other variables
held constant. On March 28, 2014, a hypothetical 50 bps increase or decrease in market interest rates would
change the fair value of the fixed-rate senior notes by a decrease of approximately $48 million and an increase of
approximately $49 million, respectively. However, this hypothetical change in interest rates would not impact the
interest expense on the fixed-rate debt.
Foreign currency exchange rate risk
We conduct business in 38 currencies through our worldwide operations and, as such, we are exposed to
foreign currency risk. Foreign currency risks are associated with our cash and cash equivalents, investments,
receivables, and payables denominated in foreign currencies. Our exposure to foreign currency transaction gains
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