Symantec 2016 Annual Report Download - page 135
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technique that measures the change in the fair values arising from a hypothetical 50 bps movement in the levels
of market interest rates, with all other variables held constant. On April 1, 2016 and April 3, 2015, a hypothetical
50 bps increase or decrease in market interest rates would change the fair value of the fixed-rate Senior Notes
and Convertible Senior Notes by a decrease of approximately $41 million and $39 million, respectively and an
increase of approximately $42 million and $40 million, respectively. However, this hypothetical change in
market interest rates would not impact the interest expense on the fixed-rate debt.
Foreign currency exchange rate risk
We conduct business in approximately 38 currencies through our worldwide operations and, as such, we are
exposed to foreign currency risk. Our entities conduct their businesses in the primary local currency in which
they operate, however, they may conduct business in other currencies. To the extend our entities hold monetary
assets or liabilities, earn revenues or expend costs in currencies other than that entity’s functional currency, they
will be exposed to foreign exchange gains or losses and impacts to margins as a result. As part of our foreign
currency risk mitigation strategy, we have entered into foreign exchange forward contracts with up to six months
in duration to help mitigate foreign exchange risk, however we are not able to mitigate all of our foreign
exchange risk. We have considered historical trends in exchange rates and determined that it is possible that
adverse changes in exchange rates for any currency could be experienced. The estimated impacts of a ten percent
appreciation or depreciation of foreign currency are as follows:
April 1, 2016 April 3, 2015
Change in Fair Value Due
to 10%
Change in Fair Value Due
to 10%
Foreign Exchange
Forward Contract
Notional
Amount Appreciation Depreciation
Notional
Amount Appreciation Depreciation
(Dollars in millions)
Purchased $ 693 $ 69 $ (69) $ 102 $ 10 $ (10)
Sold (198) (19) 19 (195) (19) 19
Total net outstanding contracts $ 495 $ 50 $ (50) $ (93) $ (9) $ 9
We do not use derivative financial instruments for speculative trading purposes, nor do we hedge our
foreign currency exposure in a manner that entirely offsets the effects of the changes in foreign exchange rates.
Item 8. Financial Statements and Supplementary Data
Annual financial statements
The Consolidated Financial Statements and related disclosures included in Part IV, Item 15 of this annual
report are incorporated by reference into this Item 8.
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