Symantec 2000 Annual Report Download - page 30

Net cash used in investing activities was approximately $330 mil-
lion and was comprised of $75 million in proceeds from our
divestiture of the Visual Café product line, offset by $87 million in
payments made in connection with our recent acquisitions, $288
million in net purchases of marketable securities and $30 million
of capital expenditures.
On June 9, 1998, the Board of Directors of Symantec authorized
the repurchase of up to 5%of our outstanding common stock
before December 31, 1998. We completed the repurchase as of
October 31, 1998, repurchasing approximately three million shares
for approximately $56 million at prices ranging from $13.10 to
$27.21 per share. The repurchased shares were used for employee
stock purchase programs and option grants.
On March 22, 1999, the Board authorized the repurchase of up to
$75 million of our outstanding common stock. As of March 31,
2000, we have purchased one million shares at prices ranging
from $17.90 to $19.90, for an aggregate amount of $18.7million.
We believe that existing cash and short-term investments and
cash generated from operating results will be sufficient to fund
operations for the next year.
Quantitative and Qualitative
Disclosures about Market Risk
We do not have significant exposure to changing interest rates
because of the low levels of marketable securities on our balance
sheet. We do not undertake any specific actions to cover our expo-
sure to interest rate risk and we are not a party to any interest rate
risk management transactions. We do not purchase or hold any
derivative financial instruments for trading purposes.
Interest Rate Sensitivity As of March 31,2000, the fair market
value of our financial instruments with exposure to interest risk was
approximately US $308 million and euro 133 million. Sensitivity
analysis for a six-month horizon was performed on our floating
rate and fixed rate financial investments and floating rate liabilities.
Parallel shifts in the yield curve of both +/-50 basis points (+/-10%
of our weighted average interest rate) would result in changes in
fair market values for these investments and floating rate liabili-
ties of less than $1 million. For the euro investments, parallel
shifts in the yield curve of both +/-50 basis points (+/-10%of our
weighted average interest rate) would result in changes in fair
market values for these investments of approximately less than
euro 1million.
Equity Sensitivity We are exposed to equity price risk on the
marketable portion of our portfolio of equity securities. We typi-
cally do not attempt to reduce or eliminate the market exposure
on our securities. As of March 31,2000, these securities consisted
of approximately 600,000 shares of Interact Commerce Corporation,
a publicly traded company (Nasdaq symbol “IACT”), with a market
value of approximately $16.9million. We believe that it is reason-
ably possible that the prices of these securities could experience
a 50%adverse change in the near term. Assuming a 50%adverse
change, these securities would decrease in value by approxi-
mately $8.5million, based on the value of the securities as of
March 31, 2000. Since April 2000, many high-technology stocks
experienced increased volatility and a significant decrease in
value, including these shares. If these securities had been valued
using prices as of June 16, 2000, the value of these securities
would have decreased by approximately an additional $9.3million
subsequent to March 31, 2000. The value of these securities may
vary over time and the value as of June 16, 2000 of approximately
$7.6million is not necessarily indicative of future performance.
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