Symantec 2014 Annual Report Download - page 159

As of March 28, 2014, future maturities of debt by fiscal years are as follows:
March 28,
2014
(Dollars in millions)
2015 $-
2016 350
2017 -
2018 600
2019 -
Thereafter 1,150
Total $ 2,100
Senior Notes
In fiscal 2013, we issued the 3.95% notes and 2.75% notes due 2017. These are senior unsecured obligations
that rank equally in right of payment with all of our existing and future unsecured, unsubordinated obligations
and are redeemable by us at any time, subject to a “make-whole” premium. Our proceeds were $1.0 billion, less
issuance discount of $4 million resulting from sale of the notes at a yield slightly above the stated coupon rate.
We also incurred issuance costs of $6 million. Both the discount and issuance costs are being amortized as
incremental interest expense over the respective terms of the notes. Interest on these notes is payable
semiannually. Contractual interest expense was $32 million and $26 million in fiscal 2014 and fiscal 2013,
respectively.
In fiscal 2011, we issued the 4.20% notes and 2.75% notes due 2015. These are senior unsecured obligations
that rank equally in right of payment with all of our existing and future unsecured, 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 for each of the fiscal years 2014, 2013, and 2012.
Convertible Senior Notes
In the first quarter of fiscal 2007, we issued $1.0 billion in principal amount of 1.00% Convertible Senior
Notes, due in June 2013. On June 15, 2013, the principal balance on those notes matured and was settled by a
cash payment of $1.0 billion, along with the $5 million semiannual interest payment. In addition, we elected to
pay the conversion value above par value in cash in the amount of $189 million. Concurrently with the payment
of the conversion value we received $189 million from the note hedge, we entered into at the time of issuance of
the 1.00% notes.
At the time of issuance of the 1.00% notes, we granted warrants to affiliates of certain initial purchasers of
the notes whereby they had the option to purchase up to 52.7 million shares of our common stock at a price of
$27.1330 per share. All the warrants expired unexercised on various dates during the second quarter of fiscal
2014 and there was no dilutive impact from the warrants on our earnings per share for fiscal 2014.
Interest on our convertible senior notes was payable semiannually. Contractual interest expense was $2
million, $10 million, and $11 million in fiscal 2014, 2013, and 2012, respectively. Amortization of the debt
discount was $3 million, $55 million, and $56 million in fiscal 2014, 2013, and 2012, respectively.
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