Symantec 2014 Annual Report Download - page 158

Download and view the complete annual report

Please find page 158 of the 2014 Symantec annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 183

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183

Gain from sale of joint venture
In fiscal 2008, Symantec formed a joint venture with a subsidiary of Huawei Technologies Co., Limited
(“Huawei”). 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, was included in
gain from sale of joint venture in our Consolidated Statements of Income.
Other income (expense), net
In fiscal 2013, we began receiving a tax incentive from the China tax bureau in the form of value-added tax
(“VAT”) refunds. The tax incentive is provided to companies that perform software research and development
activities in China. The refunds relate to VAT collected on qualifying software product sales. This tax incentive
plan enables companies to retrospectively apply the rules back to January 2011. As of March 28, 2014, we
recognized cumulative refunds of $33 million, which were included in other income (expense), net in our
Consolidated Statements of Income.
Note 6. Debt
The following table summarizes components of our debt:
March 28, 2014
Face Value
Effective
Interest Rate
Fair
Value (1)
(Dollars in millions)
3.95% Senior Notes, due June 2022 (“3.95% Notes”) $ 400 4.05 % $ 401
2.75% Senior Notes, due June 2017 (“2.75% Notes due 2017”) 600 2.79 % 618
4.20% Senior Notes, due September 2020 (“4.20% Notes”) 750 4.25 % 795
2.75% Senior Notes, due September 2015 (“2.75% Notes due 2015”) 350 2.76 % 357
March 29, 2013
Face
Value
Effective
Interest Rate
Fair
Value (1)
(Dollars in millions)
3.95% Senior Notes, due June 2022 (“3.95% Notes”) $ 400 4.05 % $ 412
2.75% Senior Notes, due June 2017 (“2.75% Notes due 2017”) 600 2.79 % 620
4.20% Senior Notes, due September 2020 (“4.20% Notes”) 750 4.25 % 799
2.75% Senior Notes, due September 2015 (“2.75% Notes due 2015”) 350 2.76 % 363
1.00% Convertible Senior Notes, due June 2013 (“1.00% notes”) 1,000 6.78 % (2) 1,291
(1) The fair value of debt relies on level 2 inputs, which are based on market prices for similar debt instruments
and resulting yields. 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 debt.
(2) 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 were 6.78% for fiscal
2013 and 2012, we made cash interest payments at the stated coupon rates of 1.00%.
79