Symantec 2004 Annual Report Download - page 40

«38»SYMANTEC CORPORATION
Net cash used in investing activities decreased in fiscal 2003,
as compared to fiscal 2002, due primarily to a decrease in net
purchases of marketable securities and restricted investments
of $520 million, offset by a $371 million increase in cash payments
for acquisitions of businesses and technologies and a $51 million
increase in capital expenditures during fiscal 2003.
FINANCING ACTIVITIES
During the past three fiscal years, our financing activities have
included cash proceeds from the sale of our common stock through
employee benefit plans, cash payments for the repurchase of our
common stock and the issuance of our $600 million 3% convertible
subordinated notes.
Net cash provided by financing activities increased in fiscal 2004,
as compared to fiscal 2003, due to an increase of $51 million of
net proceeds from the sale of common stock through our employee
benefit plans.
Net cash provided by financing activities decreased in fiscal 2003,
as compared to fiscal 2002, due to the $585 million of proceeds
received upon the issuance of our 3% convertible subordinated
notes, net of debt issuance costs. This decrease was offset by a
$140 million decrease in cash spent to repurchase our common stock.
On October 24, 2001, we completed a private offering of $600 million
of 3% convertible subordinated notes due November 1, 2006, the
net proceeds of which were $585 million. The notes are convertible
into shares of our common stock by the holders at any time before
maturity at a conversion price of $17.07 per share, subject to certain
adjustments. During fiscal 2004 and 2003, an insignificant principal
amount of our notes were converted into shares of our common
stock. No shares were converted during fiscal 2002. 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 and we commenced making these
payments on May 1, 2002. Debt issuance costs of $16 million
related to the notes is amortized on a straight-line basis through
November 1, 2006. We have reserved 35.1 million shares of common
stock for issuance upon conversion of the notes.
On January 16, 2001, the Board of Directors replaced an earlier
stock repurchase program with a new authorization to repurchase
up to $700 million of Symantec common stock, not to exceed
60.0 million shares, with no expiration date. On January 20, 2004,
the Board of Directors increased the dollar amount of the company’s
authorized stock repurchase program from $700 million to
$940 million, without any specific limit on the number of shares
to be repurchased. In connection with the additional $240 million
authorization, we adopted a repurchase plan under Rule 10b5-1
and intend to repurchase $60 million of shares during each calendar
2004 quarter.
During fiscal 2004, we repurchased 1.5 million shares under the
amended stock repurchase program, at prices ranging from $39.03
to $41.63 per share, for an aggregate amount of $60 million. During
fiscal 2003, we repurchased 4.4 million shares at prices ranging
from $13.97 to $14.98 per share, for an aggregate amount of
$64 million. During fiscal 2002, we repurchased 19.3 million shares
at prices ranging from $8.89 to $12.25 per share, for an aggregate
amount of $204 million. As of March 31, 2004, $367 million remained
authorized for future repurchases, of which $180 million is expected
to be utilized through the 10b5-1 plan through December 2004.
Contractual Obligations
The contractual obligations presented in the table below represent
our estimates of future payments under fixed contractual obligations
and commitments. Changes in our business needs, cancellation
provisions, changing interest rates and other factors may result in
actual payments differing from the estimates. We cannot provide
certainty regarding the timing and amounts of payments. We have
presented below a summary of the most significant assumptions
used in our information within the context of our consolidated
financial position, results of operations and cash flows.
2004 Annual Report
The following table summarizes our fixed contractual obligations and commitments as of March 31, 2004:
Total Payments Due In
Payments Fiscal 2006 Fiscal 2008 Fiscal 2010
(In thousands) Due Fiscal 2005 and 2007 and 2009 and thereafter
Convertible subordinated notes $599,987 $ – $599,987 $ – $ –
Purchase obligations 57,745 57,745 – – –
Operating leases 118,434 35,637 53,676 18,402 10,719
Total contractual obligations $776,166 $ 93,382 $653,663 $ 18,402 $ 10,719