Symantec 2003 Annual Report Download - page 37

Symantec 2003 35
exercise of stock options and sales of common stock through our
employee stock purchase plan. The cash provided by these factors was
partially offset by cash paid for the companies we acquired during fiscal
2003, capital expenditures and the repurchase of common stock.
Net cash provided by operating activities during fiscal 2003, 2002 and
2001 was approximately $583.9 million, $511.2 million and $324.5 mil-
lion, respectively. During fiscal 2003, net cash provided by operating
activities was comprised primarily of net income of approximately
$248.4 million, net non-cash related expenses of $140.9 million, and
an increase in liabilities, net of assets, of $194.6 million. During fiscal
2002, net cash provided by operating activities was comprised of net
non-cash related expenses of approximately $339.4 million and an
increase in liabilities, net of assets, of $199.9 million, offset by a net
loss of approximately $28.2 million. During fiscal 2001, net cash pro-
vided by operating activities was comprised of non-cash related
expenses of approximately $157.4 million, net income of $63.9 million,
and an increase in liabilities, net of assets, of $103.2 million.
Net trade accounts receivable increased $60.4 million to approximately
$149.7 million as of March 31, 2003 from $89.2 million as of March 31,
2002. The increase in net trade accounts receivable was primarily due
to higher sales in the month of March 2003 compared to the month of
March 2002 and an unusually low net trade accounts receivable balance
at March 31, 2002 as compared to the prior six quarter-end balances. In
prior quarters, we had generated a larger percentage of net revenues
during the last month of each quarter.
Net cash used in investing activities during fiscal 2003, 2002 and 2001
was approximately $756.6 million, $869.3 million and $24.2 million,
respectively. During fiscal 2003, net cash used in investing activities
was comprised primarily of approximately $367.5 million in acquisition
related costs, $194.8 million in net purchases of marketable securities
and other investments and $192.2 million of capital expenditures.
During the March 2003 quarter, we exercised our option to purchase
four of our facilities, previously accounted for as operating leases, for
approximately $123.9 million. During fiscal 2002, net cash used in
investing activities was comprised primarily of approximately $721.7
million in net purchases of marketable securities and other investments,
and $140.9 million of capital expenditures. During fiscal 2001, net cash
used in investing activities was comprised primarily of approximately
$73.4 million of capital expenditures and other investing activities,
offset by $60.2 million in net proceeds from sales of marketable securi-
ties and other investments and $37.4 million in acquired AXENT cash
balances.
Net cash provided by financing activities during fiscal 2003 and 2002
was approximately $73.4 million and $514.1 million, respectively, and
net cash used in financing activities during fiscal 2001 was $198.3 mil-
lion. During fiscal 2003, net cash provided by financing activities was
comprised primarily of approximately $137.7 million in net proceeds
from the exercise of stock options and sales of common stock through
our employee stock purchase plan, offset by $64.3 million for repur-
chases of common stock. During fiscal 2002, net cash provided by
financing activities was comprised primarily of approximately $584.6
million in net proceeds from the issuance of 3% convertible subordi-
nated notes in October 2001 and $133.9 million in net proceeds from
exercise of stock options and sales of common stock through our
employee stock purchase plan, offset by approximately $204.4 million
for repurchases of common stock. During fiscal 2001, net cash used in
financing activities was comprised primarily of approximately $244.4
million for repurchases of common stock, offset by $46.4 million in net
proceeds from exercise of stock options and sales of common stock
through our employee stock purchase plan.
On January 16, 2001, the Board of Directors replaced an earlier stock
repurchase program with a new authorization to repurchase up to
$700.0 million of Symantec’s common stock, not to exceed 30.0 million
shares, with no expiration date. As of March 31, 2003, we had repur-
chased a total of 21.9 million shares under this program at prices rang-
ing from $17.78 to $29.97 per share, for an aggregate amount of
approximately $513.2 million. During fiscal 2003, we repurchased 2.2
million shares at prices ranging from $27.93 to $29.97 per share, for an
aggregate amount of approximately $64.3 million. During fiscal 2002,
we repurchased 9.6 million shares at prices ranging from $17.78 to
$24.50 per share, for an aggregate amount of approximately $204.4
million. During fiscal 2001, we repurchased 10.0 million shares at prices
ranging from $23.04 to $25.58 per share, for an aggregate amount of
approximately $244.4 million.
On October 24, 2001, we completed a private offering of $600.0 million
of 3% convertible subordinated notes due November 1, 2006, the net
proceeds of which were approximately $584.6 million. The notes are
convertible into shares of Symantec common stock by the holders at any
time before maturity at a conversion price of $34.14 per share, subject
to certain adjustments. During fiscal 2003, an immaterial principal
amount of our notes were converted into shares of our common stock.
We may redeem the remaining notes on or after November 5, 2004,
at a redemption price of 100.75% of stated principal during the period
November 5, 2004 through October 31, 2005 and 100% thereafter.
Interest is paid semi-annually, commencing May 1, 2002.
On April 17, 2003, we purchased certain assets related to Roxio Inc.’s
GoBack computer recovery software business for approximately $13.0
million.
Also, on May 13, 2003, we entered into an agreement to acquire
Nexland, Inc., a technology driven Internet security company whose
Internet Protocol based networking appliances are installed at enter-
prise branches and telecommuter offices worldwide, for approximately
$19.6 million. We expect to complete the acquisition in the first quarter
of fiscal 2004.