Symantec 2008 Annual Report Download - page 132

Altiris, Inc. and paid $841 million, net of cash acquired, which reflects $165 million of cash acquired and
$17 million of cash paid for transaction costs. In November 2007, we acquired Vontu, Inc. and paid $298 million,
net of cash acquired. We used $200 million borrowed under a five-year, $1 billion senior unsecured revolving credit
facility to partially fund the purchase. In January 2008, we acquired Transparent Logic Technologies, Inc., and paid
$12 million in cash. During fiscal 2007, we paid cash of $33 million for the acquisitions of other businesses. During
fiscal 2006, we had net sales of available-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. In connection
with the Veritas acquisition, we assumed Veritas’ 0.25% Convertible Subordinated Notes, or the Veritas
0.25% Notes, with a principal amount of $520 million due August 1, 2013, and a short-term loan with a principal
amount of euros 411 million, which was paid in its entirety in fiscal 2006. In August 2006, we repurchased all
$520 million of the Veritas 0.25% notes with cash, which reflected principal plus interest.
Stock Repurchases. During fiscal 2008, we repurchased a total of 81 million shares, or $1.5 billion, of our
Company’s common stock. At March 28, 2008 we have $1 billion remaining under the plan authorized by the Board
of Directors in June 2007.
Issuance of Convertible Senior Notes. In June 2006, we issued $1.1 billion principal amount of 0.75% Con-
vertible Senior Notes (“Senior Notes”) due June 15, 2011, and $1.0 billion principal amount of 1.00% Convertible
Senior Notes due June 15, 2013, to initial purchasers in a private offering for resale to qualified institutional buyers
pursuant to SEC Rule 144A. Concurrently with the issuance of the Senior Notes, we entered into note hedge
transactions with affiliates of certain of the initial purchasers whereby we have the option to purchase up to
110 million shares of our common stock at a price of $19.12 per share.
The following table provides information about our significant contractual obligations and commitments as of
March 28, 2008:
Total Fiscal 2009
Fiscal 2010
and 2011
Fiscal 2012
and 2013
Fiscal 2014
and thereafter Other
Payments Due by Period
(In thousands)
Convertible senior notes
(1)
. . . . . . . . $2,100,000 $ — $ — $1,100,000 $1,000,000 $ —
Purchase obligations
(2)
. . . . . . . . . . 366,911 308,665 58,118 128 — —
Operating leases
(3)
. . . . . . . . . . . . . 520,752 102,799 153,156 100,785 164,012 —
Norton royalty agreement
(4)
. . . . . . . 17,854 7,023 8,792 1,642 397 —
Uncertain tax positions
(5)
. . . . . . . . . 479,743 — — — — 479,743
Total contractual obligations . . . . . $3,485,260 $418,487 $220,066 $1,202,555 $1,164,409 $479,743
(1)
Senior Notes are due in fiscal 2012 and 2014. Holders of the Senior Notes may convert their Senior Notes prior
to maturity upon the occurrence of certain circumstances. Upon conversion, we would pay the holder the cash
value of the applicable number of shares of our common stock, up to the principal amount of the note. Amounts
in excess of the principal amount, if any, may be paid in cash or in stock at our option. As of March 28, 2008, the
conditions to conversion had not been met.
(2)
The amounts are associated with agreements that are enforceable, legally binding, and specify terms.
(3)
Operating lease obligations include $13 million related to exited or excess facility costs related to restructuring
activities.
(4)
In June 2007, the Company amended an existing royalty agreement with Peter Norton for the licensing of certain
publicity rights. As a result, the Company recorded a long-term liability reflecting the net present value of
expected future royalty payments due to Mr. Norton.
(5)
At March 28, 2008, we reflected $480 million in long term taxes payable related to uncertain tax benefits. At this
time, we are unable to make a reasonably reliable estimate of the timing of payments in individual years beyond
the next twelve months due to uncertainties in the timing of the commencement and settlement of potential tax
audits and controversies.
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