Symantec 2002 Annual Report Download - page 91

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SYMANTEC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued)
AXENT. The other than temporary decline in value and gain on investment were recorded as other income
(expense) on the Consolidated Statements of Operations.
Restricted Investments
As of March 31, 2002 and 2001, the estimated fair value of our restricted investments was approximately
$124.3 million and $74.5 million, respectively, and consisted of U.S. Treasury securities or certiÑcates of
deposits. Our available-for-sale restricted investments relate to certain collateral requirements for lease
agreements associated with our corporate facilities in Cupertino, California and facilities in Newport News,
Virginia and SpringÑeld, Oregon. These amounts were classiÑed as non-current restricted investments on the
Consolidated Balance Sheets.
Derivative Financial Instruments
During the periods covered by the consolidated Ñnancial statements, we did not use any derivative
instrument for trading purposes. We utilize some natural hedging to mitigate our exposures and we manage
certain residual balance sheet exposures through the use of one-month forward exchange contracts. We enter
into forward exchange contracts with Ñnancial institutions primarily to minimize currency exchange risks
associated with certain balance sheet positions. The fair value of forward exchange contracts approximates
cost due to the short maturity periods. As of March 31, 2002, the notional amount of our forward exchange
contracts was approximately $239.6 million, all of which mature in 35 days or less. We do not hedge our
foreign currency translation risk.
Note 6. Convertible Subordinated Debentures
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 debentures 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. Debt issuance costs related to the 3% convertible subordinated debentures will be amortized on a
straight-line basis through November 1, 2006. We have reserved approximately 17.6 million shares of
common stock for issuance upon conversion of the 3% convertible subordinated debentures.
Note 7. Commitments
We lease certain of our facilities and equipment under operating leases that expire at various dates
through 2018. We currently sublease some space under various operating leases that will expire at various
dates through 2012.
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