Symantec 2013 Annual Report Download - page 182

SYMANTEC CORPORATION
Notes to Consolidated Financial Statements — (Continued)
As of March 30, 2012
Face Value
Effective
Interest Rate Fair Value(2)
(In millions)
4.20% Senior Notes, due September 2020 (“4.20%
notes”) ......................................... $ 750 4.25% $ 771
2.75% Senior Notes, due September 2015 (“2.75% notes
due 2015”) ...................................... 350 2.76% 363
1.00% Convertible Senior Notes, due June 2013
(“1.00% notes”) ................................. 1,000 6.78%(1) 1,115
(1) Represents the interest rate on our debt for accounting purposes while taking into account the effects of
amortization of debt discount. Although the effective interest rates of the 1.00% notes were 6.78% for fiscal
2013 and 2012, we are making cash interest payments at the stated coupon rates of 1.00%.
(2) The fair value of debt relies on Level 2 inputs, which is based on market prices for similar debt instruments
and resulting yields. For convertible senior notes, the fair value represents that of the liability component.
See Note 1 for our accounting policy of estimating the fair value of our debt.
As of March 29, 2013, future maturities of debt by fiscal years are as follows (in millions):
2014 ...................................................................... $1,000
2015 ...................................................................... —
2016 ...................................................................... 350
2017 ...................................................................... —
Thereafter .................................................................. 1,750
Total ...................................................................... $3,100
Senior Notes
In fiscal 2013, we issued the 3.95% notes and 2.75% notes due 2017. These are senior unsecured obligations
that rank equally in right of payment with our future unsecured, unsubordinated obligations and are redeemable
by us at any time, subject to a “make-whole” premium. Our proceeds were $1.0 billion, less issuance discount of
$4 million resulting from sale of the notes at a yield slightly above the stated coupon rate. We also incurred
issuance costs of $6 million. Both the discount and issuance costs are being amortized as incremental interest
expense over the respective terms of the notes. Interest on these notes is payable semiannually. Contractual
interest expense was $26 million in fiscal 2013.
In fiscal 2011, we issued the 4.20% notes and 2.75% notes due 2015. These are senior unsecured obligations
that rank equally in right of payment with our future unsecured, unsubordinated obligations and are redeemable
by us at any time, subject to a “make-whole” premium. Our proceeds from the issuance of the senior notes were
$1.1 billion, net of an issuance discount. Interest on these notes is payable semiannually. Contractual interest
expense was $41 million, $41 million and $22 million in fiscal 2013, 2012, and 2011, respectively.
Convertible Senior Notes
As of March 29, 2013, $1.0 billion of 1.00% notes is included in Current portion of long-term debt in the
Consolidated Balance Sheet. Interest on our convertible senior notes is payable semiannually. Contractual
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