Symantec 2006 Annual Report Download - page 102

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SYMANTEC CORPORATION
Notes to Consolidated Financial Statements Ì (Continued)
The future fiscal year minimum operating lease commitments and existing sublease information were as
follows as of March 31, 2006:
Lease Sublease Net Lease
Commitment Income Commitment
(In thousands)
2007 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 91,339 $(10,218) $ 81,121
2008 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 68,609 (4,558) 64,051
2009 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 48,491 (3,196) 45,295
2010 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 38,791 (2,803) 35,988
2011 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 27,543 (2,270) 25,273
ThereafterÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 111,348 (3,108) 108,240
$386,121 $(26,153) $359,968
The net lease commitment amount includes $22 million related to facilities that are included in our
restructuring reserve. For more information, see Note 12.
Rent expense charged to operations totaled $70 million, $35 million, and $27 million in fiscal 2006, 2005,
and 2004, respectively.
Development agreements
In the June 2005 quarter, we entered into agreements in connection with the construction of or
refurbishments to buildings in Springfield, Oregon and Culver City, California. Payment is contingent upon
the achievement of certain agreed-upon milestones. The remaining commitment is $147 million as of
March 31, 2006 which mainly relates to the construction of the Culver City, California facility.
Royalties
We have certain royalty commitments associated with the shipment and licensing of certain products.
Royalty expense is generally based on a dollar amount per unit shipped or a percentage of underlying revenue.
Certain royalty commitments have minimum commitment obligations; however, as of March 31, 2006 all such
obligations are immaterial.
Indemnification
As permitted under Delaware law, we have agreements whereby we indemnify our officers and directors
for certain events or occurrences while the officer or director is, or was, serving at our request in such capacity.
The maximum potential amount of future payments we could be required to make under these indemnifica-
tion agreements is not limited; however, we have director and officer insurance coverage that reduces our
exposure and enables us to recover a portion or all of any future amounts paid. We believe the estimated fair
value of these indemnification agreements in excess of applicable insurance coverage is minimal.
Note 8. Stock Transactions
Stock repurchases
We have operated a stock repurchase program since 2001. On March 28, 2005, the Board of Directors
increased the dollar amount of authorized stock repurchases by $3 billion, which became effective upon
completion of the Veritas acquisition on July 2, 2005. We commenced repurchases under the $3 billion
authorization on August 2, 2005 and as of December 31, 2005 all authorized repurchases, including
$474 million from prior authorizations, were completed.
On January 31, 2006, the Board, through one of its committees, authorized the repurchase of $1 billion of
Symantec common stock, without a scheduled expiration date. In connection with this stock repurchase
authorization, we entered into Rule 10b5-1 trading plans intended to facilitate stock repurchases of
96