Symantec 2014 Annual Report Download - page 162

Purchase obligations
We have purchase obligations that are associated with agreements for purchases of goods or services.
Management believes that cancellation of these contracts is unlikely and we expect to make future cash payments
according to the contract terms. The following reflects unrecognized purchase obligations:
March 28, 2014
(Dollars in millions)
2015 $ 483
2016 34
2017 6
2018 -
2019 -
Thereafter -
Total purchase obligations $ 523
Indemnification
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.
Litigation contingencies
During the first quarter of fiscal 2013, we were advised by the Commercial Litigation Branch of the
Department of Justice’s Civil Division and the Civil Division of the U.S. Attorney’s Office for the District of
Columbia that the government is investigating our compliance with certain provisions of our U.S. General
Services Administration (“GSA”) Multiple Award Schedule Contract No. GS-35F-0240T effective January 24,
2007, including provisions relating to pricing, country of origin, accessibility, and the disclosure of commercial
sales practices. As reported on the GSA’s publicly-available database, our total sales under the GSA Schedule
contract were approximately $222 million from the period beginning January 2007 and ending September 2012.
We are fully cooperating with the investigation and in January 2014 met with representatives of the government
who presented us with an initial analysis of our actual damages exposure in the amount of approximately $145
million. We are currently in the process of evaluating the government’s initial analysis. Since the initial meeting,
the government’s analysis of our potential damages exposure has fluctuated.
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