Symantec 2003 Annual Report Download - page 61

Symantec 2003 59
The future fiscal year minimum operating lease commitments were as
follows as of March 31, 2003:
(IN THOUSANDS)
2004 $ 31,306
2005 24,069
2006 19,036
2007 15,322
2008 8,650
Thereafter 7,291
Operating lease commitments 105,674
Sublease income (20,120)
Net operating lease commitments $ 85,554
Based on existing subleases, we expect to record future sublease
income of approximately $6.6 million, $5.5 million, $3.5 million, $2.3
million, $0.5 million and $1.7 million during fiscal 2004, 2005, 2006,
2007, 2008 and thereafter, respectively.
Rent expense charged to operations totaled approximately $28.8 mil-
lion, $25.2 million and $22.9 million during fiscal 2003, 2002 and 2001,
respectively.
In March 2003, we terminated our operating lease obligations for four
facilities located in Cupertino, California, Springfield, Oregon, and
Newport News, Virginia by purchasing the land and buildings for approx-
imately $17.9 million and $106.0 million, respectively.
Note 8. Stock Split
On December 14, 2001, the Board of Directors approved a two-for-one
stock split of Symantec’s common stock effected as a stock dividend,
which became effective as of January 31, 2002 to stockholders of record
on January 17, 2002. Based on the number of shares outstanding on
January 17, 2002, the stock dividend resulted in the issuance of approx-
imately 70.7 million additional shares of Symantec’s common stock. All
Symantec share and per share amounts in prior periods have been
adjusted to give retroactive effect to the stock dividend.
Note 9. Common Stock Repurchases
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 of Symantec common stock, not to exceed 30.0 million
shares, with no expiration date. As of March 31, 2003, we had repur-
chased a total of 21.9 million shares under this program at prices
ranging from $17.78 to $29.97 per share, for an aggregate amount of
approximately $513.2 million. During fiscal 2003, we repurchased 2.2
million shares at prices ranging from $27.93 to $29.97 per share, for an
aggregate amount of approximately $64.3 million. During fiscal 2002,
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 fiscal 2001, 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.
Note 10. Net Income (Loss) per Share
The components of net income (loss) per share were as follows:
Year Ended March 31,
(IN THOUSANDS, EXCEPT PER SHARE DATA) 2003 2002 2001
Basic Net Income (Loss) Per Share
Net income (loss) $248,438 $ (28,151) $ 63,936
Weighted average number of
common shares outstanding
during the period 145,395 143,604 129,474
Basic net income (loss) per share $1.71 $(0.20) $ 0.49
Diluted Net Income (Loss) Per Share
Net income (loss) $248,438 $ (28,151) $ 63,936
Interest on convertible subor-
dinated notes, net of income
tax effect 14,393 ––
Net income (loss), as adjusted $262,831 $ (28,151) $ 63,936
Weighted average number of
common shares outstanding
during the period 145,395 143,604 129,474
Shares issuable from assumed
conversion of options 7,748 –7,000
Shares issuable from assumed
conversion of convertible
subordinated notes 17,575 ––
Total shares for purpose of
calculating diluted net
income (loss) per share 170,718 143,604 136,474
Diluted net income (loss)
per share $1.54 $(0.20) $ 0.47
During fiscal 2003, 2002 and 2001, approximately 0.7 million, 13.8 mil-
lion and 8.3 million shares, respectively, issuable from assumed exercise
of options were excluded from the computation of diluted net income
(loss) per share, as the effect would have been anti-dilutive.
During fiscal 2002, approximately 7.6 million shares issuable upon con-
version of the 3% convertible subordinated notes were excluded from
the computation of diluted net income (loss) per share, as their effect
would have been anti-dilutive.
Note 11. Adoption of Stockholder Rights Plan
On August 11, 1998, the Board of Directors adopted a stockholder rights
plan designed to ensure orderly consideration of any future unsolicited
acquisition attempt to ensure fair value of us for our stockholders.