Symantec 2010 Annual Report Download - page 122

LIQUIDITY AND CAPITAL RESOURCES
Sources of Cash
We have historically relied on cash flow from operations, borrowings under a credit facility and issuances of
convertible notes and equity securities for our liquidity needs.
In fiscal 2007, we entered into a five-year $1 billion senior unsecured revolving credit facility that expires in
July 2011. In order to be able to draw on the credit facility, we must maintain certain covenants, including a
specified ratio of debt to earnings (before interest, taxes, depreciation, amortization and impairment) as well as
certain other non-financial covenants. As of April 2, 2010, we were in compliance with all required covenants and
there was no outstanding balance on the credit facility.
As of April 2, 2010, we had cash and cash equivalents of $3.0 billion and short-term investments of $15 million
resulting in a net liquidity position of approximately $4.0 billion, which is defined as unused availability of the
credit facility, cash and cash equivalents and short-term investments.
We believe that our existing cash and investment balances, our borrowing capacity, our ability to issue new
debt instruments, and cash generated from operations will be sufficient to meet our working capital and capital
expenditures requirements for at least the next 12 months.
Uses of Cash
Our principal cash requirements include working capital, capital expenditures, payments of principal and
interest on our debt and payments of taxes. In addition, we regularly evaluate our ability to repurchase stock, pay
debts and acquire other businesses.
Line of Credit. There were no borrowings under our credit facility for the fiscal year ended April 2, 2010. For
the fiscal year ended April 3, 2009, we repaid the entire $200 million principal amount, plus $3 million of accrued
interest, that we borrowed during fiscal 2008 under the credit facility.
Acquisition-related. For fiscal 2010, we acquired two companies for an aggregate payment of $31 million,
net of cash acquired. For fiscal 2009, we acquired MessageLabs, PC Tools, SwapDrive and several other companies
for an aggregate payment of $1.1 billion, net of cash acquired. For fiscal 2008, we acquired Altiris and two other
companies for an aggregate payment of $1.2 billion, net of cash acquired. Also, in fiscal 2008, we entered into a
joint venture with Huawei Technologies Co., Limited and contributed $150 million in cash.
Convertible Senior Notes. In June 2006, we issued $1.1 billion principal amount of 0.75% Convertible Senior
Notes due June 15, 2011, and $1.0 billion principal amount of 1.00% Convertible Senior Notes (collectively the
“Senior Notes”) due June 15, 2013. Concurrently with the issuance of the Senior Notes, we entered into note hedge
transactions for $592 million 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. For the fiscal years ended April 2, 2010,
April 3, 2009 and March 28, 2008, we have not repaid any of this debt other than the related interest costs.
Stock Repurchases. We repurchased 34 million, 42 million and 81 million shares for $553 million,
$700 million and $1.5 billion during fiscal 2010, 2009 and 2008, respectively. As of April 2, 2010, we had
$747 million remaining under the plan authorized for future repurchases.
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