Symantec 2015 Annual Report Download - page 128

(2) These amounts are associated with agreements for purchases of goods or services generally including
agreements that are enforceable and legally binding and that specify all significant terms, including
fixed or minimum quantities to be purchased; fixed, minimum, or variable price provisions; and the
approximate timing of the transaction. The table above also includes agreements to purchase goods or
services that have cancellation provisions requiring little or no payment. The amounts under such
contracts are included in the table above because management believes that cancellation of these
contracts is unlikely and we expect to make future cash payments according to the contract terms or in
similar amounts for similar materials.
(3) We have entered into various noncancelable operating lease agreements that expire on various dates
through fiscal 2029. The amounts in the table above exclude expected sublease income and include $6
million in exited or excess facility costs related to restructuring activities.
(4) Due to the uncertainty with respect to the timing of future cash flows associated with our unrecognized
tax benefits as of April 3, 2015 we are unable to make reasonably reliable estimates of the period of
cash settlement with the respective taxing authorities. Therefore, $134 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.
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 3, 2015 and March 28, 2014, 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 fair value is based on
level 2 inputs. We have performed sensitivity analyses as of April 3, 2015 and March 28, 2014 by using a
modeling technique that measures the change in the fair values arising from a hypothetical 50 bps movement in
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