Symantec 2002 Annual Report Download - page 50

revenues being generated more evenly throughout the March 2002 quarter due primarily to the increase in
sales of consumer products, which resulted in higher cash collections. In prior quarters, we had generated a
larger percentage of net revenues during the last month of each quarter.
Net cash used in investing activities was approximately $869.3 million and was comprised primarily of
$721.7 million in net purchases of marketable securities and investments, and $140.9 million of capital
expenditures, including $62.0 million for the implementation of Oracle 11i and a CRM system and $25 million
in January 2002 and $18 million in November 2001 for land and a building in Maidenhead, United Kingdom
and Dublin, Ireland, respectively.
On January 16, 2001, the Board of Directors replaced an earlier stock repurchase program with a new
authorization to repurchase up to $700.0 million, not to exceed 30.0 million shares, of Symantec's common
stock with no expiration date. During the September 2001 quarter, we repurchased 9.6 million shares at prices
ranging from $17.78 to $24.50 per share, for an aggregate amount of approximately $204.4 million. During the
March 2001 quarter, we repurchased 10.0 million shares at prices ranging from $23.04 to $25.58 per share, for
an aggregate amount of approximately $244.4 million.
On October 24, 2001, we completed a private oÅering of $600.0 million of 3% convertible subordinated
debentures due November 1, 2006, the net proceeds of which were approximately $584.6 million. The
debentures are convertible into shares of Symantec's common stock by the holders at any time before maturity
at a conversion price of $34.14 per share, subject to certain adjustments. We may redeem the notes on or after
November 5, 2004, at a redemption price of 100.75% of stated principal during the period November 5, 2004
through October 31, 2005 and 100% thereafter. Interest will be paid semi-annually, commencing May 1, 2002.
We intend to use the net proceeds of the oÅering for general corporate purposes, including working capital,
potential acquisitions, stock repurchases and investments in our infrastructure.
The following table displays our contractual obligations as of March 31, 2002:
Payments Due In
Total
Payments Fiscal 2004 Fiscal 2006 Fiscal 2008
Due Fiscal 2003 and 2005 and 2007 and Thereafter
(In thousands)
Convertible subordinated debentures ÏÏÏÏÏ $600,000 $ Ì $ Ì $600,000 $ Ì
Operating leases ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 86,070 26,901 34,687 16,335 8,147
Total contractual obligationsÏÏÏÏÏÏÏÏÏÏ $686,070 $26,901 $34,687 $616,335 $8,147
The above table assumes that the convertible subordinated debentures will be paid in cash upon maturity
and excludes the balance of our current liabilities.
We believe that existing cash and short-term investments, cash generated from operating results and cash
from the subordinated convertible debenture oÅering will be suÇcient to fund operations for at least the next
year.
Synthetic Leases
We currently have two real estate leasing arrangements that we have classiÑed as operating leases.
One of the lease arrangements is for two existing oÇce buildings in Cupertino, California. Lease
payments for these facilities are based on the three-month LIBOR in eÅect at the beginning of each Ñscal
quarter plus a speciÑed margin. We have the right to acquire the related properties at any time during the
seven-year lease period ending February 1, 2006. If, at the end of the lease term we do not renew the lease,
purchase the properties or arrange for a third party to purchase the properties, we may be obligated to the
lessor for all or some portion of an amount up to the guaranteed residual amount of approximately
$66.0 million, representing approximately 84% of the lessor's purchase price of the property.
On March 30, 2001, we entered into a master lease agreement for land and the construction of two oÇce
buildings, one in Newport News, Virginia, eÅective June 6, 2001, and another in SpringÑeld, Oregon, eÅective
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