Symantec 2006 Annual Report Download - page 60

in the table below. The following table summarizes our fixed contractual obligations and commitments as of
March 31, 2006:
Payments Due In
Total
Payments Fiscal 2008 Fiscal 2010 Fiscal 2012
Due Fiscal 2007 and 2009 and 2011 and thereafter
(In thousands)
Convertible subordinated notes1ÏÏ $520,000 $520,000 $ Ì $ Ì $ Ì
Purchase obligations2ÏÏÏÏÏÏÏÏÏÏÏ 32,850 32,850 Ì Ì Ì
Operating leases3ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 386,121 91,339 117,100 66,334 111,348
Total contractual obligations ÏÏÏ $938,971 $644,189 $117,100 $66,334 $111,348
1Convertible subordinated notes, due August 1, 2013, assumed in connection with the Veritas acquisition. On
or after August 5, 2006, Symantec has the option to redeem all or a portion of the 0.25% Notes at a
redemption price equal to 100% of the principal amount, plus accrued and unpaid interest. On August 1,
2006 and August 1, 2008, or upon the occurrence of a fundamental change involving Symantec, holders of
the 0.25% Notes may require Symantec to repurchase their notes at a purchase price equal to 100% of the
principal amount, plus accrued and unpaid interest.
2Represents amounts associated with agreements that are enforceable, legally binding, and specify terms.
3Includes $22 million related to facilities included in our restructuring reserve.
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
and has not been included in the table above. 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.
Newly Adopted And Recently Issued Accounting Pronouncements
In February 2006, the Financial Accounting Standards Board, or FASB, issued SFAS No. 155,
Accounting for Certain Hybrid Financial Instruments, which amends SFAS No. 133, Accounting for
Derivative Instruments and Hedging Activities, and SFAS No. 140, Accounting for Transfers and Servicing of
Financial Assets and Extinguishments of Liabilities. SFAS No. 155 simplifies the accounting for certain
derivatives embedded in other financial instruments by allowing them to be accounted for as a whole if the
holder elects to account for the entire instrument on a fair value basis. SFAS No. 155 also clarifies and
amends certain other provisions of SFAS No. 133 and SFAS No. 140. SFAS No. 155 is effective for all
financial instruments acquired, issued or subject to a remeasurement event occurring in fiscal years beginning
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