Symantec 2007 Annual Report Download - page 59

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Operating Activities
Net cash provided by operating activities during fiscal 2007 resulted largely from net income of $404 million,
plus non-cash depreciation and amortization charges of $811 million, non-cash stock-based compensation expense
of $154 million, and an increase in deferred revenue of $400 million. These amounts were partially offset by a
decrease in income taxes payable of $182 million, primarily due to the timing of tax payments. We expect operating
cash flow to continue to be positive in the future.
Net cash provided by operating activities in fiscal 2006 resulted largely from net income of $157 million, plus
an increase in deferred revenue of $683 million, non-cash charges, primarily for depreciation and amortization, of
$640 million, and the write off of IPR&D of $285 million related to the acquisitions of Veritas and BindView. These
factors were partially offset by a decrease in deferred income taxes of $203 million and by an increase in trade
accounts receivable of $87 million.
Net cash provided by operating activities in fiscal 2005 resulted largely from net income of $536 million, plus
non-cash depreciation and amortization charges of $127 million, the income tax benefit from employee stock plans
of $109 million, and deferred income taxes of $61 million. In addition, our deferred revenue increased by
$319 million and income taxes payable increased by $56 million.
Investing Activities
Net cash used in investing activities in fiscal 2007 was primarily the result of capital expenditures of
$420 million, including $81 million for the purchase of two office buildings in Cupertino, California, and purchases
of available-for-sale securities of $227 million. These amounts were partially offset by proceeds of $349 million
from sales of available-for-sale securities and net proceeds from the sale of property and equipment, primarily
buildings in Milpitas, California and Maidenhead, England, of $121 million.
Net cash provided by investing activities in fiscal 2006 was primarily the result of net sales of availa-
ble-for-sale securities of $3.4 billion and cash of $541 million acquired through the acquisition of Veritas, net of
cash expenditures for our other acquisitions in fiscal 2006. These amounts were partially offset by capital
expenditures of $267 million, including $63 million for the purchase of two buildings in Mountain View, California.
Net cash used for investing activities in fiscal 2005 was primarily the result of payments for business
acquisitions of $424 million and net purchases of available-for-sale securities of $143 million.
Financing Activities
In the June 2006 quarter, we issued the Senior Notes for net proceeds of approximately $2.1 billion. We used
$1.5 billion of the proceeds to repurchase shares of our common stock, as discussed below. We also purchased
hedges related to the Senior Notes for $592 million and received proceeds of $326 million from the sale of common
stock warrants. In addition, we applied the remainder of the proceeds from the Senior Notes to the $520 million used
to repurchase the Veritas 0.25% Notes in August 2006.
We have operated stock repurchase programs since 2001. As of January 2007, we completed the $1 billion
share repurchase program announced in January 2006 as well as the $1.5 billion share repurchase program
announced in June 2006. On January 24, 2007, we announced that our Board of Directors authorized the repurchase
of $1 billion of Symantec common stock, without a scheduled expiration date.
During fiscal 2007, we repurchased 162 million shares of our common stock at prices ranging from $15.61 to
$21.66 per share for an aggregate amount of $2.8 billion. During fiscal 2006, we repurchased 174 million shares at
prices ranging from $15.83 to $23.85 per share for an aggregate amount of $3.6 billion. During fiscal 2005, we
repurchased eight million shares at prices ranging from $21.05 to $30.77 per share, for an aggregate amount of
$192 million. As of March 31, 2007, $500 million remained authorized for future repurchases. For further
information regarding our stock repurchases, see Item 5, Market for Registrant’s Common Equity, Related
Stockholder Matters and Issuer Purchases of Equity Securities, of this annual report.
In fiscal 2007, 2006, and 2005, we received net proceeds of $230 million, $210 million, and $160 million,
respectively, from the issuance of our common stock through employee stock plans.
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