Symantec 2004 Annual Report Download - page 66

«64»SYMANTEC CORPORATION
Note 9. Common Stock Repurchases
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.
2004 Annual Report
During fiscal 2004, 2003 and 2002, 0.8 million, 1.4 million and
27.6 million shares, respectively, issuable from assumed exercise
of options were excluded from the computation of diluted net
income (loss) per share, as the effect would have been anti-dilutive.
During fiscal 2002, 15.2 million shares issuable upon conversion
of the 3% convertible subordinated notes were excluded from the
computation of diluted net loss per share, as their effect would
have been anti-dilutive.
Note 11. Adoption of Stockholder Rights Plan
On August 11, 1998, the Board of Directors adopted a stockholder
rights plan designed to ensure orderly consideration of any future
unsolicited acquisition attempt to ensure fair value of us for
our stockholders.
In connection with the plan, the Board of Directors declared and
paid a dividend of one preferred share purchase right for each
share of Symantec common stock outstanding on the record
date, August 21, 1998. The rights are initially attached to Symantec
common stock and will not trade separately. If a person or a group,
an Acquiring Person, acquires 20% or more of our common stock,
or announces an intention to make a tender offer for 20% or
more of our common stock, the rights will be distributed and will
thereafter trade separately from the common stock.
If the rights become exercisable, each right (other than rights
held by the Acquiring Person) will entitle the holder to purchase,
at a price equal to the exercise price of the right, a number of
shares of our common stock having a then-current value of twice
the exercise price of the right. If, after the rights become exercis-
able, we agree to merge into another entity or we sell more than
Note 10. Net Income (Loss) Per Share
The components of net income (loss) per share were as follows:
(In thousands, except per share data) Year Ended March 31,
2004 2003 2002
Basic Net Income (Loss) Per Share:
Net income (loss) $370,619 $248,438 $ (28,151)
Weighted average number of common shares outstanding during the period 305,985 290,790 287,208
Basic net income (loss) per share $ 1.21 $ 0.85 $ (0.10)
Diluted Net Income (Loss) Per Share:
Net income (loss) $370,619 $248,438 $(28,151)
Interest on convertible subordinated notes, net of income tax effect 14,392 14,393 –
Net income (loss), as adjusted $385,011 $262,831 $ (28,151)
Weighted average number of common shares outstanding during the period 305,985 290,790 287,208
Shares issuable from assumed exercise of options using the treasury stock method 18,421 15,496 –
Shares issuable from assumed conversion of convertible subordinated notes 35,149 35,150 –
Total shares for purpose of calculating diluted net income (loss) per share 359,555 341,436 287,208
Diluted net income (loss) per share $ 1.07 $ 0.77 $ (0.10)