Symantec 2016 Annual Report Download - page 134

with the respective taxing authorities. Therefore, $160 million in long-term income taxes payable has been
excluded from the contractual obligations table. For further information, see Note 11 of the Notes to
Consolidated Financial Statements in this annual report.
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.
In connection with the sale of Veritas, we assigned several leases to Veritas Technologies LLC or its related
subsidiaries. As a condition to consenting to the assignments, certain lessors required us to agree to indemnify
the lessor under the applicable lease with respect to certain matters, including, but not limited to, losses arising
out of Veritas Technologies LLC or its related subsidiaries’ breach of payment obligations under the terms of the
lease. As with our other indemnification obligations discussed above and in general, 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. As with our other indemnification obligations, such indemnification agreements might not be subject
to maximum loss clauses and to date, generally under our real estate obligations, we have not incurred material
costs as a result of such obligations under our leases and have not accrued any liabilities related to such
indemnification obligations under 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.
Item 7A. Quantitative and Qualitative Disclosures about Market Risk
We are exposed to various market risks related to fluctuations in interest rates and foreign currency
exchange rates. 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 April 1, 2016, we had $2.3 billion in principal amount of fixed-rate Senior Notes and Convertible
Senior Notes outstanding, with a carrying amount of $2.2 billion and a fair value of $2.3 billion, which fair value
was based on level 2 inputs. As of April 3, 2015, we had $2.1 billion in principal amount of fixed-rate Senior
Notes outstanding, with a carrying amount of $2.1 billion and a fair value of $2.2 billion, which was based on
level 2 inputs. We have performed sensitivity analysis as of April 1, 2016 and April 3, 2015 by using a modeling
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