Symantec 2014 Annual Report Download - page 126

and capital expenditure requirements, as well as to fund any cash dividends, principal and interest payments on
debt and repurchases of our stock, for at least the next 12 months and foreseeable future. We have implemented a
capital allocation strategy pursuant to which we expect to return over time approximately 50% of free cash flow
to stockholders through a combination of dividends and share repurchases, while still enabling our company to
invest in its future. Our strategy emphasizes organic growth through internal innovation and will be
complemented by acquisitions that fit strategically and meet specific internal profitability hurdles.
Uses of Cash
Our principal cash requirements include working capital, capital expenditures, payments of principal and
interest on our debt, and payments of taxes. Also, we may, from time to time, engage in the open market
purchase of our notes prior to their maturity. Furthermore, our capital allocation strategy contemplates a quarterly
cash dividend. In addition, we regularly evaluate our ability to repurchase stock, pay debts, and acquire other
businesses.
Acquisitions: In fiscal 2013, we acquired a privately-held provider of mobile application management for an
aggregate payment of $28 million, net of cash acquired. In fiscal 2012, we acquired Clearwell, LiveOffice, and
another company for an aggregate amount of $508 million, net of cash acquired.
Convertible Senior Notes: On June 15, 2013, the principal balance on our 1.00% notes matured and was
settled by a cash payment of $1.0 billion, along with the $5 million semi-annual interest payment. In addition, we
elected to pay the conversion value above par value of the notes in cash in the amount of $189 million.
Concurrently with the payment of the conversion value, we received $189 million from the settlement of the note
hedge we entered into at the time of the issuance of the 1.00% notes.
Stock Repurchases: Our board of directors authorized a new $1.0 billion stock repurchase program during
the fourth quarter of fiscal 2013. In fiscal 2014, we repurchased 21 million shares, or $500 million, of our
common stock. In fiscal 2013, we repurchased 49 million shares, or $826 million, of our common stock. In fiscal
2012, we repurchased 51 million shares, or $893 million, of our common stock. Our active stock repurchase
programs have $658 million remaining authorized for future repurchase as of March 28, 2014, with no expiration
date.
Dividend Program: During fiscal 2014 we declared and paid common stock dividends of $418 million or
$0.60 per share. Each quarterly dividend was recorded as a reduction to additional paid-in capital. In addition,
our board of directors approved dividend equivalent rights entitling holders of restricted stock and performance-
based stock to dividend equivalents to be paid in the form of cash upon vesting for each share of the underlying
units. No dividends and dividend equivalents were paid in any periods prior to fiscal 2014. Any future dividends
and dividend equivalents are subject to the approval of our board of directors.
Restructuring Plan: In the fourth quarter of fiscal 2013, we announced our strategy focusing on three
priority areas, developing innovative products and services, changing our GTM plans and investing in people,
process and technology infrastructure to make it easier to do business with us and improve our execution. In
connection with this strategy we initiated a restructuring plan in the fourth quarter of fiscal 2013 to reduce
management and redundant personnel resulting in headcount reductions across the Company. As of March 28,
2014, total costs related to our plan incurred from inception were $222 million, primarily related to severance
and related employee benefits.
Noncontrolling Interest: In July 2012, we completed a tender offer and paid $92 million to acquire VeriSign
Japan common shares and stock rights, which increased our ownership percentage to 92%. In November 2012,
we acquired the remaining 8% interest for $19 million and it became a wholly-owned subsidiary. The payment
for the remaining 8% interest was made in the fourth quarter of fiscal 2013.
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