Symantec 2016 Annual Report Download - page 130

The timing of the resolution of income tax examinations is highly uncertain, and the amounts ultimately
paid, if any, upon resolution of the issues raised by the taxing authorities may differ materially from the amounts
accrued for each year. Although potential resolution of uncertain tax positions involve multiple tax periods and
jurisdictions, it is reasonably possible that the gross unrecognized tax benefits related to these audits could
decrease (whether by payment, release, or a combination of both) in the next 12 months by $7 million.
We continue to monitor the progress of ongoing income tax controversies and the impact, if any, of the
expected tolling of the statute of limitations in various taxing jurisdictions.
LIQUIDITY AND CAPITAL RESOURCES
Divestiture of Veritas
In August 2015, we entered into a definitive agreement to sell the assets of Veritas to Carlyle and amended
the terms in January 2016. Based on the amended terms of the definitive agreement, we received net
consideration of $6.6 billion in cash excluding transaction costs and 40 million B common shares of Veritas and
Veritas assumed certain liabilities in connection with the acquisition. Our U.S. and foreign income taxes and
indirect taxes payable resulting from the transaction are estimated to be $1.0 billion.
Sources of cash
We have historically relied on cash flow from operations, borrowings under a credit facility, issuances of
debt and equity securities, and sale of business, more recently, for our liquidity needs. As of April 1, 2016, we
had cash, cash equivalents and short-term investments of $6.0 billion and an unused credit facility of $1.0 billion
resulting in a liquidity position of approximately $7.0 billion. As of April 1, 2016, $4.9 billion in cash, cash
equivalents, and short-term investments were held by our foreign subsidiaries. We have provided U.S. deferred
taxes on a portion of our undistributed foreign earnings sufficient to address the incremental U.S. tax that would
be due if we needed such portion of these funds to support our operations in the U.S.
Senior Notes. In fiscal 2013, we issued $1.0 billion of Senior Notes consisting of the 3.95% Senior Notes
due in 2022 and the 2.75% Senior Notes due in 2017. We received proceeds of $996 million, net of an issuance
discount. In fiscal 2011, we issued $750 million of Senior Notes consisting of the 4.20% Senior Notes due in
2020.
Convertible Senior Notes. In fiscal 2016, we issued $500 million in 2.50% Convertible Senior Notes, due
April 2021.
Revolving Credit Facility. In fiscal 2011, we entered into a $1.0 billion senior unsecured revolving credit
facility (“credit facility”), which was amended in fiscal 2013. The amendment extended the term of the credit
facility to June 7, 2017. This revolving credit facility was further amended in March 2016 to amend the definition
of EBITDA (earnings before interest, taxes, depreciation and amortization) to account for the sale of Veritas and
related expenses and to amend our consolidated leverage ratio under the agreement. Under the terms of this credit
facility, we must comply with certain financial and non-financial covenants, including a covenant to maintain a
specified ratio of debt to EBITDA. As of April 1, 2016, we were in compliance with the required covenants, and
no amounts were outstanding.
In May 2016, we replaced our existing $1.0 billion senior unsecured revolving credit facility with a new
$2.0 billion credit facility. See Note 13 of the Notes to the Consolidated Financial Statements in this annual
report for more information.
We believe that our existing cash and investment balances, our available revolving credit facility, our ability
to issue new debt instruments, and cash generated from operations will be sufficient to meet our working capital
42