Symantec 2016 Annual Report Download - page 131

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. In connection with the
divestiture of Veritas, our Board of Directors committed to returning the net proceeds of the sale to stockholders
through a combination of a special dividend and share repurchases. The Board of Directors also resolved to
adjust its annual dividend starting fiscal year 2017 to $0.30 per share to reflect reduced projected domestic cash
flow following the sale of Veritas, 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 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.
Stock Repurchases on Open Market Transactions. In fiscal 2016, we repurchased 17 million shares, or $368
million of our common stock. In fiscal 2015, we repurchased 21 million shares, or $500 million, of our common
stock. In fiscal 2014, we repurchased 21 million shares, or $500 million, of our common stock. Our active stock
repurchase programs have $790 million remaining authorized for future repurchase as of April 1, 2016, with no
expiration date.
Accelerated Stock Repurchase. In November and March of fiscal 2016, we entered into ASR agreements
with financial institutions to repurchase an aggregate of $1.5 billion of our common stock. We made upfront
payments of $500 million and $1 billion for a total of $1.5 billion, to the financial institutions pursuant to the
ASR agreements and received and retired the initial deliveries of 19.9 million and 42.4 million shares of our
common stock. The November 2015 ASR agreement’s purchase period concluded in the fourth quarter of fiscal
2016, whereby upon settlement, we received an additional 5.0 million shares of our common stock. The total
shares received and retired under the terms of the November 2015 ASR were 24.9 million, with an average price
paid per share of $20.08. The March 2016 purchase period is expected to close by or no later than the third
quarter of fiscal 2017. The upfront payments for the November 2015 and March 2016 ASR agreements are
presented under the caption repurchases of common stock in our Consolidated Statements of Cash Flows.
Dividend Program. During fiscal 2016, we declared and paid aggregate cash dividends of $3.0 billion, or
$4.60 per common share. These dividends were comprised of our quarterly dividends and a special dividend of
$4.00 per share. During fiscal 2015, we declared and paid cash dividends of $413 million or $0.60 per common
share. During fiscal 2014, we declared and paid cash dividends of $418 million or $0.60 per common share. Our
restricted stock and performance-based stock units have dividend equivalent rights entitling holders to dividend
equivalents to be paid in the form of cash upon vesting, for each share of the underlying units.
On May 12, 2016, we declared a cash dividend of $0.075 per share of common stock to be paid on June 22,
2016 to all stockholders of record as of the close of business on June 8, 2016. All shares of common stock issued
and outstanding, and unvested restricted stock and performance-based stock, as of the record date will be entitled
to the dividend and dividend equivalents, respectively. Any future dividends and dividend equivalents will be
subject to the approval of our Board of Directors.
Restructuring Plans. In fiscal 2015, we announced plans to separate our security and information
management businesses. In order to separate the businesses, we put a restructuring plan in place to properly align
personnel, and have therefore incurred associated severance and facilities costs. We also incurred separation
costs in the form of advisory, consulting and disentanglement expenses. These actions were substantially
completed in the fourth quarter of fiscal 2016 with the sale of Veritas on January 29, 2016. However, we expect
to incur immaterial adjustments to existing reserves in subsequent periods.
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