Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Sep. 30, 2016 | Oct. 28, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | SYMANTEC CORP | |
Entity Central Index Key | 849,399 | |
Current Fiscal Year End Date | --03-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 623,419,220 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2016 | Apr. 01, 2016 | [1] |
Current assets: | |||
Cash and cash equivalents | $ 5,610 | $ 5,983 | |
Short-term investments | 9 | 42 | |
Accounts receivable, net | 459 | 556 | |
Other current assets | 391 | 378 | |
Total current assets | 6,469 | 6,959 | |
Property and equipment, net | 933 | 957 | |
Intangible assets, net | 1,961 | 443 | |
Goodwill | 7,232 | 3,148 | |
Equity investments | 159 | 157 | |
Other long-term assets | 110 | 103 | |
Total assets | 16,864 | 11,767 | |
Current liabilities: | |||
Accounts payable | 139 | 175 | |
Accrued compensation and benefits | 218 | 219 | |
Deferred revenue | 2,085 | 2,279 | |
Current portion of long-term debt | 600 | 0 | |
Income taxes payable | 96 | 941 | |
Other current liabilities | 371 | 419 | |
Total current liabilities | 3,509 | 4,033 | |
Long-term debt | 6,576 | 2,207 | |
Long-term deferred revenue | 402 | 359 | |
Long-term deferred tax liabilities | 2,234 | 1,235 | |
Long-term income taxes payable | 192 | 160 | |
Other long-term obligations | 89 | 97 | |
Total liabilities | 13,002 | 8,091 | |
Commitments and contingencies | |||
Stockholders’ equity: | |||
Preferred stock, $0.01 par value, 1,000 shares authorized; 21 shares issued; 0 outstanding | 0 | 0 | |
Common stock and additional paid-in capital, $0.01 par value: 3,000,000 shares authorized; 623,348 and 612,266 shares issued and outstanding, respectively | 4,527 | 4,309 | |
Accumulated other comprehensive income (loss) | (1) | 22 | |
Accumulated deficit | (664) | (655) | |
Total stockholders’ equity | 3,862 | 3,676 | |
Total liabilities and stockholders’ equity | $ 16,864 | $ 11,767 | |
[1] | Derived from audited financial statements. |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2016 | Apr. 01, 2016 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value per share (in usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, number of shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, number of shares issued (in shares) | 21,000 | 21,000 |
Preferred stock, number of shares outstanding (in shares) | 0 | 0 |
Common stock, par value per share (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, number of shares authorized (in shares) | 3,000,000,000 | 3,000,000,000 |
Common stock, number of shares issued (in shares) | 623,348,000 | 612,266,000 |
Common stock, number of shares outstanding (in shares) | 623,348,000 | 612,266,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2016 | Oct. 02, 2015 | Sep. 30, 2016 | Oct. 02, 2015 | |
Income Statement [Abstract] | ||||
Net revenues | $ 979 | $ 906 | $ 1,863 | $ 1,818 |
Cost of revenues | 210 | 160 | 359 | 318 |
Gross profit | 769 | 746 | 1,504 | 1,500 |
Operating expenses: | ||||
Sales and marketing | 338 | 336 | 629 | 676 |
Research and development | 200 | 199 | 370 | 397 |
General and administrative | 145 | 66 | 229 | 150 |
Amortization of intangible assets | 34 | 14 | 48 | 28 |
Restructuring, separation, transition, and other | 64 | 31 | 134 | 66 |
Total operating expenses | 781 | 646 | 1,410 | 1,317 |
Operating income (loss) | (12) | 100 | 94 | 183 |
Interest income | 4 | 2 | 9 | 5 |
Interest expense | (52) | (19) | (79) | (39) |
Other income (expense), net | 10 | 4 | 23 | (2) |
Income (loss) from continuing operations before income taxes | (50) | 87 | 47 | 147 |
Provision for income taxes | 19 | 34 | 50 | 69 |
Income (loss) from continuing operations | (69) | 53 | (3) | 78 |
Income (loss) from discontinued operations, net of income taxes | (75) | 103 | (6) | 195 |
Net income (loss) | $ (144) | $ 156 | $ (9) | $ 273 |
Income (loss) per share - basic: | ||||
Continuing operations (in usd per share) | $ (0.11) | $ 0.08 | $ 0 | $ 0.11 |
Discontinued operations (in usd per share) | (0.12) | 0.15 | (0.01) | 0.29 |
Net income (loss) per share — basic (in usd per share) | (0.23) | 0.23 | (0.01) | 0.40 |
Income (loss) per share - diluted: | ||||
Continuing operations (in usd per share) | (0.11) | 0.08 | 0 | 0.11 |
Discontinued operations (in usd per share) | (0.12) | 0.15 | (0.01) | 0.28 |
Net income (loss) per share — diluted (in usd per share) | $ (0.23) | $ 0.23 | $ (0.01) | $ 0.40 |
Weighted-average shares outstanding: | ||||
Basic (in shares) | 620 | 682 | 617 | 682 |
Diluted (in shares) | 620 | 687 | 617 | 689 |
Cash dividends declared per common share (in usd per share) | $ 0.075 | $ 0.15 | $ 0.15 | $ 0.3 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2016 | Oct. 02, 2015 | Sep. 30, 2016 | Oct. 02, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (144) | $ 156 | $ (9) | $ 273 |
Foreign currency translation adjustments: | ||||
Translation adjustments | 2 | (34) | (22) | (22) |
Reclassification adjustments for net loss included in net income (loss) | 0 | 1 | 0 | 1 |
Net foreign currency translation adjustments | 2 | (33) | (22) | (21) |
Unrealized gain (loss) on available-for-sale securities, net of taxes | 0 | 5 | (1) | 5 |
Other comprehensive income (loss), net of taxes | 2 | (28) | (23) | (16) |
Comprehensive income (loss) | $ (142) | $ 128 | $ (32) | $ 257 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Sep. 30, 2016 | Oct. 02, 2015 | |
OPERATING ACTIVITIES: | ||
Net income (loss) | $ (9) | $ 273 |
(Income) loss from discontinued operations, net of income taxes | 6 | (195) |
Adjustments to reconcile income (loss) from continuing operations to net cash provided by (used in) continuing operating activities: | ||
Depreciation and amortization | 205 | 153 |
Stock-based compensation expense | 134 | 80 |
Deferred income taxes | 49 | 15 |
Excess income tax benefit from the exercise of stock options | (5) | (6) |
Other | 31 | 8 |
Changes in operating assets and liabilities, net of acquisitions: | ||
Accounts receivable, net | 225 | 108 |
Accounts payable | (66) | 17 |
Accrued compensation and benefits | (35) | (54) |
Deferred revenue | (213) | (207) |
Income taxes payable | (841) | (46) |
Other assets | 6 | 47 |
Other liabilities | (51) | (30) |
Net cash provided by (used in) continuing operating activities | (564) | 163 |
Net cash provided by (used in) discontinued operating activities | (153) | 271 |
Net cash provided by (used in) operating activities | (717) | 434 |
INVESTING ACTIVITIES: | ||
Purchases of property and equipment | (39) | (111) |
Payments for acquisitions, net of cash acquired | (4,533) | (4) |
Purchases of short-term investments | 0 | (326) |
Proceeds from maturities of short-term investments | 31 | 1,018 |
Proceeds from sales of short-term investments | 0 | 76 |
Proceeds from divestiture of information management business, net of transaction costs | 7 | 0 |
Net cash provided by (used in) continuing investing activities | (4,534) | 653 |
Net cash used in discontinued investing activities | 0 | (38) |
Net cash provided by (used in) investing activities | (4,534) | 615 |
FINANCING ACTIVITIES: | ||
Repayments of debt and other obligations | (17) | (367) |
Proceeds from issuance of debt, net of issuance costs | 4,999 | 0 |
Net proceeds from sales of common stock under employee stock benefit plans | 49 | 44 |
Excess income tax benefit from the exercise of stock options | 5 | 6 |
Tax payments related to restricted stock units | (34) | (25) |
Dividends and dividend equivalents paid | (120) | (210) |
Repurchases of common stock | 0 | (250) |
Proceeds from other financing | 10 | 0 |
Net cash provided by (used in) continuing financing activities | 4,892 | (802) |
Net cash used in discontinued financing activities | 0 | (12) |
Net cash provided by (used in) financing activities | 4,892 | (814) |
Effect of exchange rate fluctuations on cash and cash equivalents | (14) | (12) |
Change in cash and cash equivalents | (373) | 223 |
Beginning cash and cash equivalents | 5,983 | 2,874 |
Ending cash and cash equivalents | 5,610 | 3,097 |
Less: Cash and cash equivalents of discontinued operations | 0 | 736 |
Cash and cash equivalents of continuing operations | 5,610 | 2,361 |
Supplemental disclosure of cash flow information | ||
Cash paid for income taxes, net of refunds | $ 977 | $ 94 |
Description of Business and Sig
Description of Business and Significant Accounting Policies | 6 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Significant Accounting Policies | Description of Business and Significant Accounting Policies Business Symantec Corporation (“Symantec,” “we,” “us,” “our,” and the "Company” refer to Symantec Corporation and all of its subsidiaries) is a global leader in cybersecurity. On August 1, 2016 (the "close date"), we completed our acquisition of Blue Coat, Inc. ("Blue Coat"). Blue Coat's results of operations have been included in our Condensed Consolidated Statements of Operations beginning August 1, 2016 . See Note 3 for more information on the Blue Coat acquisition. Basis of presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles ("GAAP") in the United States of America ("U.S.") for interim financial information. In the opinion of management, the unaudited Condensed Consolidated Financial Statements contain all adjustments, consisting only of normal recurring items, except as otherwise noted, necessary for the fair presentation of our financial position, results of operations, and cash flows for the interim periods. These unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and accompanying Notes thereto included in our Annual Report on Form 10-K for the fiscal year ended April 1, 2016 . The results of operations for the three and six months ended September 30, 2016 , are not necessarily indicative of the results expected for the entire fiscal year. We have a 52/53-week fiscal accounting year. Unless otherwise stated, references to three and six month ended periods in this report relate to fiscal periods ended September 30, 2016 and October 2, 2015 . The six months ended September 30, 2016 and October 2, 2015 , each consisted of 26 weeks. Our 2017 fiscal year consists of 52 weeks and ends on March 31, 2017 . There have been no material changes in our significant accounting policies as compared to those described in our Annual Report on Form 10-K for the fiscal year ended April 1, 2016 . In connection with the Blue Coat acquisition, we assumed options to purchase common stock with a fair value of $265 million . Stock-based compensation Stock-based compensation expense is measured at the grant date based on the fair value of the award and is generally recognized on a straight-line basis over the requisite service period, which is generally the vesting period of the respective award. No compensation cost is ultimately recognized for awards for which employees do not render the requisite service and are forfeited. We estimate forfeitures based on historical experience. Our granted stock-based awards principally consist of restricted stock units (“RSUs”). The fair value of each RSU is equal to the market value of our common stock on the date of grant. The fair values of RSUs are not discounted by the dividend yield because the Company’s RSUs include dividend-equivalent rights. We use the Black-Scholes model to determine the fair value of stock options. The Black-Scholes model incorporates various subjective variables, including our expected stock price volatility over the expected life of the options, actual and projected employee stock option exercise and forfeiture behaviors, risk-free interest rates, and expected dividends. Recent accounting guidance not yet adopted In May 2014, the Financial Accounting Standards Board ("FASB") issued authoritative guidance on revenue from contracts with customers. The new standard provides principles for recognizing revenue for the transfer of promised goods or services to customers with the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard also requires significantly expanded disclosures about revenue recognition. As currently issued and amended, the standard is effective for us for our first quarter of fiscal 2019 and may be applied retrospectively or using the cumulative effect transition method. Early adoption as of the original effective date is permitted, but we do not intend to adopt the provisions of the new standard early. We expect to determine an adoption method by the end of fiscal 2017 and to have a preliminary qualitative assessment of the effect that the standard will have on our Consolidated Financial Statements. In January 2016, the FASB issued new authoritative guidance on financial instruments. The new guidance enhances the reporting model for financial instruments, which includes amendments to address aspects of recognition, measurement, presentation and disclosure. The update to the standard is effective for us for our first quarter of fiscal 2019, with early adoption permitted under limited circumstances. We are currently evaluating the effect the standard will have on our Consolidated Financial Statements. In February 2016, the FASB issued new authoritative guidance on lease accounting. Among its provisions, the standard requires lessees to recognize right-of-use assets and lease liabilities on the balance sheet for operating leases and also requires additional qualitative and quantitative disclosures about lease arrangements. The standard is effective for us for our first quarter of fiscal 2020 with early adoption permitted. It is not expected that the adoption of the standard will have a material impact to our operating results. In March 2016, the FASB issued authoritative guidance simplifying several aspects of the accounting for employee share-based payment transactions, including the income tax consequences, accounting for forfeitures, and classification of excess tax benefits on the statement of cash flows. The standard is effective for us for our first quarter of fiscal 2018, however, early adoption is permitted. We believe the most significant impact of the new guidance will be volatility to our effective tax rate from the change in accounting for income taxes and on its classification of excess tax benefit on the Consolidated Statements of Cash Flows. The impact of this standard on our effective tax rate for future periods will be dependent on our stock price at the time the awards vest and the number of awards that vest. In June 2016, the FASB issued new authoritative guidance on credit losses which changes the impairment model for most financial assets and certain other instruments. For trade receivables and other instruments, we will be required to use a new forward-looking “expected loss” model. Additionally, for available-for-sale debt securities with unrealized losses, we will measure credit losses in a manner similar to today, except that the losses will be recognized as allowances rather than reductions in the amortized cost of the securities. The standard will be effective for us for our first quarter of fiscal 2021. We are currently evaluating the effect the standard will have on our Consolidated Financial Statements. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements We account for certain assets at fair value. The hierarchy below lists three levels of fair value based on the extent to which inputs used in measuring fair value are observable in the market. We categorize each of our fair value measurements in one of these three levels based on the lowest level input that is significant to the fair value measurement in its entirety. These levels are: • Level 1: Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. • Level 2: Observable inputs other than quoted prices included in Level 1 for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-driven valuations in which all significant inputs and significant value drivers are observable in active markets. • Level 3: Unobservable inputs reflecting our own assumptions incorporated in valuation techniques used to determine fair value. Assets measured and recorded at fair value on a recurring basis Our cash equivalents consist primarily of money market funds with original maturities of three months or less at the time of purchase, and the carrying amount is a reasonable estimate of fair value. Our short-term investments consist of investment securities with original maturities greater than three months and marketable equity securities. The following table summarizes our assets measured at fair value on a recurring basis, by level, within the fair value hierarchy: September 30, 2016 April 1, 2016 Fair Value Cash and Cash Equivalents Short-term Investments Fair Value Cash and Cash Equivalents Short-term Investments (In millions) Cash $ 944 $ 944 $ — $ 1,072 $ 1,072 $ — Non-negotiable certificates of deposit 46 46 — 1 — 1 Level 1 Money market 2,977 2,977 — 2,905 2,905 — U.S. government securities 117 117 — 335 310 25 Marketable equity securities 9 — 9 11 — 11 3,103 3,094 9 3,251 3,215 36 Level 2 Corporate bonds — — — 45 43 2 U.S. agency securities 574 574 — 526 523 3 Commercial paper 952 952 — 1,121 1,121 — Negotiable certificates of deposit — — — 9 9 — 1,526 1,526 — 1,701 1,696 5 Total $ 5,619 $ 5,610 $ 9 $ 6,025 $ 5,983 $ 42 There were no transfers between fair value measurements levels during the six months ended September 30, 2016 . Fair value of debt As of September 30, 2016 and April 1, 2016 , the total fair value of our debt was $7.3 billion and $2.3 billion , respectively, based on Level 2 inputs. Assets Measured and Recorded at Fair Value on a Non-Recurring Basis Our non-financial assets, which primarily consist of goodwill, other intangible assets, property and equipment and equity investments, are measured at fair value on a non-recurring basis, generally when there is a transaction involving those assets such as a purchase transaction, a business combination or if any indicators for impairment exist. On a periodic basis whenever events or changes in circumstances indicate their carrying value may not be fully recoverable, and at least annually for goodwill and indefinite-lived intangible assets, non-financial assets are assessed for impairment. If applicable, these non-financial assets are written-down to and recorded at fair value. |
Acquisition
Acquisition | 6 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
Acquisition | Acquisition On the close date, we acquired all of the outstanding common stock of Blue Coat, a provider of advanced web security solutions for global enterprises and governments. With this acquisition we are positioned to introduce new cybersecurity solutions, to address the ever-evolving threat landscape, the changes introduced by the shift to mobile and cloud, and the challenges created by regulatory and privacy concerns. The total consideration for the acquisition of Blue Coat was approximately $4.67 billion , net of cash acquired, and consisted of the following: August 1, 2016 (In millions) Cash and equity consideration for outstanding Blue Coat common shares and restricted stock awards $ 2,006 Cash consideration for outstanding Blue Coat debt 1,910 Issuance of Symantec 2.0% convertible debt to Bain Capital Funds (selling shareholder) 750 Fair value of vested assumed Blue Coat stock options 102 Cash consideration for acquiree acquisition-related expenses 51 Total consideration 4,819 Cash acquired (146 ) Net consideration transferred $ 4,673 The cash consideration for the retirement of Blue Coat debt included the repayment of the associated principal, accrued interest, premiums and other costs. We funded a portion of the total purchase price through debt financing, including borrowings of an aggregate principal amount of $2.8 billion under an amended and restated credit facility and a new term loan facility. On the close date, we also issued 2.0% Convertible Unsecured Notes due 2021 for an aggregate principal amount of $1.25 billion , $750 million of which was to a selling shareholder. See Note 5 for more information on these debt instruments. Our preliminary allocation of the purchase price, based on the estimated fair values of the assets acquired and liabilities assumed on the close date, is as follows: August 1, 2016 (In millions) Assets Accounts receivable $ 125 Other current assets 65 Property and equipment 54 Intangibles 1,608 Goodwill 4,086 Other long-term assets 9 Total assets acquired 5,947 Liabilities Deferred revenue 144 Other current liabilities 111 Long-term deferred revenue 76 Long-term deferred tax liabilities 924 Other long-term obligations 19 Total liabilities assumed 1,274 Total purchase price $ 4,673 The allocation of the purchase price was based upon a preliminary valuation, and our estimates and assumptions are subject to refinement within the measurement period (up to one year from the close date). Adjustments to the purchase price allocation may require adjustments to goodwill prospectively. The primary areas of the preliminary purchase price allocation that are not yet finalized are certain tax matters, intangible assets, and identification of contingencies. The preliminary goodwill of $4.1 billion arising from the acquisition is attributed to the expected synergies, including future cost efficiencies, and other benefits that are expected to be generated by combining Symantec and Blue Coat. Substantially all of the goodwill recognized is not expected to be deductible for tax purposes. See Note 4 for more information on goodwill. Preliminary identified intangible assets and their respective useful lives are as follows: Fair Value Weighted-average Estimated Useful Life (In millions) Customer relationships $ 844 7 years Developed technology and patents 739 4.3 years Finite-lived trade names 4 2 years Product backlog 2 4 months Total identified finite-lived intangible assets 1,589 In-process research and development 19 N/A Total identified intangible assets $ 1,608 The fair value of in-process research and development was determined using the relief-from-royalty method. A key assumption of this method is a hypothetical technology licensing rate applied to forecasted revenue. The premise associated with this valuation method is that, in lieu of ownership of the asset, a market participant would be willing to pay a licensing fee for the use of that asset. Impact on operating results Our results of continuing operations for the three and six months ended September 30, 2016 include $88 million of net revenues and $105 million of loss before income taxes attributable to Blue Coat beginning August 1, 2016 . The Blue Coat results are included in our Enterprise Security segment. See Note 9 for more information on our segments. Additionally, transaction costs of $40 million incurred by Symantec in connection with the Blue Coat acquisition are included in general and administrative expense in the Condensed Consolidated Statements of Operations for the three and six months ended September 30, 2016 . Unaudited pro forma information The unaudited pro forma financial results combine the historical results of Symantec and Blue Coat for the three and six months ended September 30, 2016 and October 2, 2015. The results include the effects of pro forma adjustments as if Blue Coat were acquired at the beginning of our 2016 fiscal year. The pro forma results for the three and six months ended September 30, 2016 and October 2, 2015 include nonrecurring adjustments for amortization of acquired intangible assets, stock-based compensation, commissions, interest on debt used to finance the acquisition, and acquisition-related transaction costs, as well as for the income tax effect of the other pro forma adjustments. The unaudited pro forma financial results presented below do not include any anticipated synergies or other expected benefits of the acquisition. These pro forma results are presented for informational purposes only and are not indicative of future operations or results that would have been achieved had the acquisition been completed as of the beginning of our 2016 fiscal year. The following table summarizes the pro forma financial information: Three Months Ended Six Months Ended September 30, 2016 October 2, September 30, 2016 October 2, (In millions) Net revenues $ 1,023 $ 1,041 $ 2,086 $ 2,078 Net income (loss) $ (158 ) $ 40 $ (119 ) $ — |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill The changes in the carrying amount of goodwill are as follows: Consumer Security Enterprise Security Total (In millions) Net balance as of April 1, 2016 $ 1,231 $ 1,917 $ 3,148 Acquisition of Blue Coat — 4,086 4,086 Translation adjustments — (2 ) (2 ) Net balance as of September 30, 2016 $ 1,231 $ 6,001 $ 7,232 See Note 3 for more information on the Blue Coat acquisition. Intangible assets, net September 30, 2016 April 1, 2016 Gross Accumulated Net Gross Accumulated Net (In millions) Customer relationships $ 1,247 $ (361 ) $ 886 $ 406 $ (320 ) $ 86 Developed technology 883 (125 ) 758 144 (84 ) 60 Finite-lived trade names 19 (4 ) 15 2 (2 ) — Patents 21 (19 ) 2 21 (18 ) 3 Total finite-lived intangible assets 2,170 (509 ) 1,661 573 (424 ) 149 Indefinite-lived trade names 281 — 281 294 — 294 In-process research and development 19 — 19 — — — Total $ 2,470 $ (509 ) $ 1,961 $ 867 $ (424 ) $ 443 As a result of our acquisition of Blue Coat, we recorded $1.6 billion of acquired intangible assets during the three months ended September 30, 2016. See Note 3 for more information on the Blue Coat acquisition. As of September 30, 2016 , future amortization expense related to intangible assets that have finite lives is as follows by fiscal year: September 30, 2016 (In millions) Remainder of 2017 $ 272 2018 347 2019 317 2020 301 2021 153 Thereafter 271 Total $ 1,661 |
Debt
Debt | 6 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following table summarizes components of our debt: September 30, 2016 April 1, 2016 Amount Effective Amount Effective (In millions, except percentages) 2.75% Senior Notes due June 15, 2017 $ 600 2.79 % $ 600 2.79 % Senior Term Loan A-1 due May 10, 2019 1,000 LIBOR plus (1) — — % Senior Term Loan A-2 due August 1, 2019 800 LIBOR plus (1) — — % Senior Term Loan A-3 due August 1, 2019 200 LIBOR plus (1) — — % 4.2% Senior Notes due September 15, 2020 750 4.25 % 750 4.25 % 2.5% Convertible Senior Notes due April 1, 2021 500 3.76 % 500 3.76 % Senior Term Loan A-5 due August 1, 2021 1,800 LIBOR plus (1) — — % 2.0% Convertible Unsecured Notes due August 15, 2021 1,250 2.66 % — — % 3.95% Senior Notes due June 15, 2022 400 4.05 % 400 4.05 % Total principal amount 7,300 2,250 Less: Unamortized discount and issuance costs (124 ) (43 ) Total debt 7,176 2,207 Less: Current portion (600 ) — Total long-term debt $ 6,576 $ 2,207 (1) The senior term facilities bear interest at a rate equal to the London Interbank Offered Rate ("LIBOR") plus a margin based on the debt rating of our non-credit-enhanced, senior unsecured long-term debt. The future maturities of debt by fiscal year are as follows as of September 30, 2016: September 30, 2016 (In millions) Remainder of 2017 $ — 2018 600 2019 — 2020 2,000 2021 1,250 Thereafter 3,450 Total $ 7,300 Senior Term Facilities On May 10, 2016, we entered into a senior unsecured credit facility (“Amended and Restated Credit Facility”). The agreement provided for a 5-year Revolving Credit Facility and a 3 -year term loan in an amount of $1.0 billion (the “Senior Term Loan A-1”), which is set to expire on May 10, 2019. On July 18, 2016, we amended and restated our credit agreement to provide for, among other things, an additional $800 million 3 -year term loan (“Senior Term Loan A-2”) which is set to expire on August 1, 2019. Interest on both the Senior Term Loan A-1 and Senior Term Loan A-2 are payable according to the terms of the agreement. The Amended and Restated Credit Agreement became effective concurrently on the close date of the Blue Coat acquisition. See Note 3 for more information on the Blue Coat acquisition. On August 1, 2016 , we entered into a Term Loan Agreement (the "Term Loan Agreement") with a group of lenders that allows us to borrow an aggregate amount of $2.0 billion , consisting of a $1.8 billion 5 -year term loan (“Senior Term Loan A-5”), with a maturity date of August 1, 2021, and a $200 million 3 -year term loan (“Senior Term Loan A-3”), with a maturity date of August 1, 2019. The Term Loan Agreement closed concurrently with the Blue Coat acquisition on August 1, 2016 . Interest on borrowings under the Term Loan Agreement is payable according to the terms of the agreement. As of October 3, 2016, the Term Loan Agreement was held by a foreign subsidiary of Symantec. We utilized the proceeds of the Senior Term Loan A-2 under the Amended and Restated Credit Agreement and proceeds of the Term Loan Agreement (collectively the “Acquisition Term Loans”), to pay a portion of the purchase price for the Blue Coat acquisition. Across each of the facilities which were either amended and restated, or entered into in connection with the close of the Blue Coat acquisition, we paid a total of $52 million of issuance costs. The issuance costs are being amortized over the respective periods of the Acquisition Term Loans and Amended and Restated Credit Facility using the effective interest method. The Amended and Restated Credit Facility and Term Loan Facility include a consolidated leverage ratio covenant. As of September 30, 2016 , we were in compliance with all covenants in the indentures governing the credit facilities. Convertible Unsecured Notes On August 1, 2016 , we issued 2.0% Convertible Unsecured Notes due August 15, 2021 (the "Notes") for an aggregate principal amount of $1.25 billion . An aggregate of $750 million of the Notes were issued to Bain Capital Fund XI, L.P. and Bain Capital Europe Fund IV, L.P. (collectively with their affiliates, "Bain") and $500 million to Silver Lake Partners IV Cayman (AIV II), L.P. The Notes were issued concurrently on the close date of the Blue Coat acquisition and the proceeds were used to pay a portion of the purchase price for Blue Coat. The fair value of the equity component of the Notes using level 2 inputs, was $39 million , and was included in additional paid-in capital on the Company's Condensed Consolidated Balance Sheet as of September 30, 2016. The Notes are convertible into cash, shares of our common stock or a combination of cash and common stock, at our option, at a conversion rate of 48.9860 per $1,000 principal amount (which represents an initial conversion price of approximately $20.41 per share), subject to customary anti-dilution adjustments. If holders of the Notes convert them in connection with a fundamental change, we may be required to provide a make-whole premium in the form of an increased conversion rate, subject to a maximum amount. With certain exceptions, upon change in control of Symantec, the holders of the Notes may require that we repurchase all or part of the principal amount of the Notes at a purchase price equal to the principal amount plus accrued and unpaid interest. The Notes are not redeemable by us. The indenture of the Notes includes customary events of default, which may result in the acceleration of the maturities of the Notes. In accordance with the provisions of the investment agreement with the holders of the Notes, dated June 12, 2016 and as amended on July 31, 2016, we appointed a designee of Bain to the Board of Directors (the "Board") on August 1, 2016. Bain's rights to Board representation will terminate under certain circumstances, including if Bain and its affiliates beneficially own less than 4% of all the Company's outstanding common stock (on an as-converted basis). Revolving Credit Facility On May 10, 2016, we terminated our previous $1.0 billion senior revolving credit facility and entered into a new senior unsecured credit facility (the “Revolving Credit Facility”). The new credit agreement provides for a 5 -year $1.0 billion revolving credit facility. The Amended and Restated Credit Agreement (as discussed in the Senior Term Facility) which was entered into by the Company on July 18, 2016, includes provisions for the Revolving Credit Facility. Under the Amended and Restated Credit Agreement, the Revolving Credit Facility bears a commitment fee which has pricing adjustments relative to the Company's senior unsecured long-term credit rating. The commitment fee is payable in arrears quarterly. Drawings under the Revolving Credit Facility bear interest according to the terms of the agreement. The Amended and Restated Credit Agreement includes a consolidated leverage ratio covenant, which is similar to that of the Term Loan Facility. As of September 30, 2016 , we were in compliance with the required covenants for the Revolving Credit Facility, and no amounts were outstanding. |
Discontinued Operations
Discontinued Operations | 6 Months Ended |
Sep. 30, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations On January 29, 2016, we completed the sale of our former information management business ("Veritas"). The results of Veritas are presented as discontinued operations in our Condensed Consolidated Statements of Operations and thus have been excluded from continuing operations and segment results for all reported periods. In connection with the divestiture, the Company and Veritas entered into Transition Service Agreements ("TSA") pursuant to which we provide Veritas certain limited services including financial support services, information technology services, and access to facilities, and Veritas provides us certain limited financial support services. The TSAs commenced with the close of the transaction and expire at various dates through fiscal 2019. During the three and six months ended September 30, 2016 , we recorded income of $8 million and $17 million , respectively, for all services provided to Veritas, which is presented as part of other income (expense), net in the Condensed Consolidated Statements of Operations . We also have retained various customer relationships and contracts that were reported historically as a part of the Veritas business. Approximately $157 million related to these relationships and contracts have been reported as part of our deferred revenue in the Condensed Consolidated Balance Sheet as of September 30, 2016 , along with a $65 million asset representing the service and maintenance rights we have under an agreement with Veritas. These balances will be amortized to discontinued operations through the remaining term of the underlying contracts. The following table presents information regarding certain components of income (loss) from discontinued operations, net of income taxes: Three Months Ended Six Months Ended September 30, October 2, 2015 September 30, October 2, 2015 (In millions) Net revenues $ 51 $ 592 $ 123 $ 1,179 Cost of revenues (6 ) (104 ) (9 ) (200 ) Operating expenses — (385 ) (24 ) (758 ) Gain on sale of Veritas — — 38 — Other expense, net (2 ) (1 ) — (6 ) Income from discontinued operations before income taxes 43 102 128 215 Income taxes expense (benefit) 118 (1 ) 134 20 Income (loss) from discontinued operations, net of income taxes $ (75 ) $ 103 $ (6 ) $ 195 During the first quarter of fiscal 2017, the Company received an additional payment of $38 million , which represented a purchase price adjustment for the sale of Veritas. |
Restructuring, Separation, Tran
Restructuring, Separation, Transition and Other Costs | 6 Months Ended |
Sep. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring, Separation, Transition and Other Costs | Restructuring, Separation, Transition, and Other Costs Our restructuring, separation, transition, and other costs and liabilities consist primarily of severance, facilities, separation, transition, and other related costs. Severance costs generally include severance payments, outplacement services, health insurance coverage, and legal costs. Facilities costs generally include rent expense and lease termination costs, less estimated sublease income. Separation and related costs include advisory, consulting and other costs incurred in connection with the separation of Veritas. Transition costs primarily consist of consulting charges associated with the implementation of new enterprise resource planning systems and costs to automate business processes. Other costs primarily consist of asset write-offs and advisory fees incurred in connection with restructuring events. Restructuring, separation, transition, and other costs are managed at the corporate level and are not allocated to our reportable segments. See Note 9 for information regarding the reconciliation of total segment operating income to total consolidated operating income (loss) from continuing operations. Fiscal 2017 Plan We initiated a restructuring plan in the first quarter of fiscal 2017 to reduce complexity by means of long-term structural improvements. We expect to reduce headcount and close certain facilities in connection with the restructuring plan. We expect to incur total costs in connection with the plan to range between $230 million and $280 million , of which approximately $90 million to $100 million is expected to be for severance and termination benefits, $45 million to $60 million is expected to be for contract termination and relocation costs, and the remainder is expected to be in the form of other costs, including advisory fees and asset write-offs. Non-cash expenses in connection with the plan are expected to be approximately $50 million . These actions are expected to be completed in fiscal 2018. As of September 30, 2016 , liabilities for excess facility obligations at several locations around the world are expected to be paid throughout the respective lease terms, the longest of which extends through fiscal 2022 . Fiscal 2015 Plan In fiscal 2015, we initiated a restructuring plan primarily to align personnel with our plans to separate Veritas. These actions were substantially completed in the fourth quarter of fiscal 2016 with the sale of Veritas on January 29, 2016. See Note 6 for more information on the sale of Veritas. Restructuring, separation, transition, and other expense summary Three Months Ended September 30, 2016 Six Months Ended September 30, 2016 (In millions) Fiscal 2017 Plan Severance costs $ 14 $ 38 Other exit and disposal costs 20 35 Asset write-offs 5 14 Fiscal 2017 Plan total 39 87 Fiscal 2015 Plan total — 2 Transition and other related costs 25 45 Restructuring, separation, transition, and other from continuing operations 64 134 Restructuring, separation, transition, and other from discontinued operations 1 10 Total restructuring, separation, transition, and other $ 65 $ 144 Restructuring and separation liabilities summary Balance as of April 1, 2016 Costs, Net of Cash Non-Cash Charges Balance as of September 30, 2016 Cumulative (In millions) Fiscal 2017 Plan Severance costs $ — $ 38 $ (31 ) $ — $ 7 $ 38 Other exit and disposal costs 4 35 (21 ) — 18 39 Asset write-offs — 14 — (14 ) — 14 Fiscal 2017 Plan total 4 87 (52 ) (14 ) 25 $ 91 Fiscal 2015 Plan total 29 12 (32 ) — 9 $ 468 Restructuring and separation plans total $ 33 $ 99 $ (84 ) $ (14 ) $ 34 As of September 30, 2016 and April 1, 2016 , the restructuring and separation liabilities are included in accounts payable, other current liabilities and other long-term obligations in our Condensed Consolidated Balance Sheets. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Indemnifications In the ordinary course of business, we may provide indemnifications of varying scope and terms to customers, vendors, lessors, business partners, subsidiaries and other parties with respect to certain matters, including, but not limited to, losses arising out of our breach of agreements or representations and warranties made by us. In addition, our bylaws contain indemnification obligations to our directors, officers, employees and agents, and we have entered into indemnification agreements with our directors and certain of our officers to give such directors and officers additional contractual assurances regarding the scope of the indemnification set forth in our bylaws and to provide additional procedural protections. We maintain director and officer insurance, which may cover certain liabilities arising from our obligation to indemnify our directors and officers. It is not possible to determine the aggregate maximum potential loss under these indemnification agreements due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular agreement. Such indemnification agreements might not be subject to maximum loss clauses. Historically, we have not incurred material costs as a result of obligations under these agreements and we have not accrued any liabilities related to such indemnification obligations in our Condensed Consolidated Financial Statements. In connection with the sale of Veritas, we assigned several leases to Veritas Technologies LLC or its related subsidiaries. As a condition to consenting to the assignments, certain lessors required us to agree to indemnify the lessor under the applicable lease with respect to certain matters, including, but not limited to, losses arising out of Veritas Technologies LLC or its related subsidiaries' breach of payment obligations under the terms of the lease. As with our other indemnification obligations discussed above and in general, it is not possible to determine the aggregate maximum potential loss under these indemnification agreements due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular agreement. As with our other indemnification obligations, such indemnification agreements might not be subject to maximum loss clauses and to date, generally under our real estate obligations, we have not incurred material costs as a result of such obligations under our leases and have not accrued any liabilities related to such indemnification obligations in our Condensed Consolidated Financial Statements. We provide limited product warranties and the majority of our software license agreements contain provisions that indemnify licensees of our software from damages and costs resulting from claims alleging that our software infringes on the intellectual property rights of a third party. Historically, payments made under these provisions have been immaterial. We monitor the conditions that are subject to indemnification to identify if a loss has occurred. Litigation contingencies GSA During the first quarter of fiscal 2013, we were advised by the Commercial Litigation Branch of the Department of Justice’s Civil Division and the Civil Division of the U.S. Attorney’s Office for the District of Columbia that the government is investigating our compliance with certain provisions of our U.S. General Services Administration (“GSA”) Multiple Award Schedule Contract No. GS-35F-0240T effective January 24, 2007, including provisions relating to pricing, country of origin, accessibility, and the disclosure of commercial sales practices. As reported on the GSA’s publicly-available database, our total sales under the GSA Schedule contract were approximately $222 million from the period beginning January 2007 and ending September 2012. We have fully cooperated with the government throughout its investigation and in January 2014, representatives of the government indicated that their initial analysis of our actual damages exposure from direct government sales under the GSA schedule was approximately $145 million ; since the initial meeting, the government’s analysis of our potential damages exposure relating to direct sales has increased. The government has also indicated they are going to pursue claims for certain sales to New York, California, and Florida as well as sales to the federal government through reseller GSA Schedule contracts, which could significantly increase our potential damages exposure. In 2012, a sealed civil lawsuit was filed against Symantec related to compliance with the GSA Schedule contract and contracts with California, Florida, and New York. On July 18, 2014, the Court-imposed seal expired, and the government intervened in the lawsuit. On September 16, 2014, the states of California and Florida intervened in the lawsuit, and the state of New York notified the Court that it would not intervene. On October 3, 2014, the Department of Justice filed an amended complaint, which did not state a specific damages amount. On October 17, 2014, California and Florida combined their claims with those of the Department of Justice and the relator on behalf of New York in an Omnibus Complaint, and a First Amended Omnibus Complaint was filed on October 8, 2015; the state claims also do not state specific damages amounts. It is possible that the litigation could lead to claims or findings of violations of the False Claims Act, and could be material to our results of operations and cash flows for any period. Resolution of False Claims Act investigations can ultimately result in the payment of somewhere between one and three times the actual damages proven by the government, plus civil penalties in some cases, depending upon a number of factors. Our current estimate of the low end of the range of the probable estimated loss from this matter is $25 million , which we have accrued. This amount contemplates estimated losses from both the investigation of compliance with the terms of the GSA Schedule contract as well as possible violations of the False Claims Act. There is at least a reasonable possibility that a loss may have been incurred in excess of our accrual for this matter, however, we are currently unable to determine the high end of the range of estimated losses resulting from this matter. EDS & NDI On January 24, 2011, a class action lawsuit was filed against us and our previous e-commerce vendor Digital River, Inc.; the lawsuit alleged violations of California’s Unfair Competition Law, the California Legal Remedies Act and unjust enrichment related to prior sales of Extended Download Service (“EDS”) and Norton Download Insurance (“NDI”). On March 31, 2014, the U.S. District Court for the District of Minnesota certified a class of all people who purchased these products between January 24, 2005 and March 10, 2011. In August 2015, the parties executed a settlement agreement pursuant to which we would pay the plaintiffs $30 million , which we accrued. On October 8, 2015, the Court granted preliminary approval of the settlement, which was subsequently paid into escrow by us. The Court granted final approval on April 22, 2016, and entered judgment in the case. Objectors to the settlement have appealed to the Eighth Circuit Court of Appeals, challenging the Court’s approval of the settlement. Finjan On August 28, 2013, Finjan, Inc. filed a complaint against Blue Coat Systems, Inc. in the U.S. District Court for the Northern District of California alleging that certain Blue Coat products infringe six of Finjan's U.S. patents. On August 4, 2015, a jury returned a verdict that certain Blue Coat products infringe five of the Finjan patents-in-suit and awarded Finjan lump-sum damages of $40 million . On November 20, 2015, the trial court entered a judgment in favor of Finjan on the jury verdict and certain non-jury legal issues. On July 28, 2016, in its ruling on post-trial motions the trial court denied Blue Coat’s motions seeking a new trial or judgment as a matter of law and denied Finjan’s request for enhanced damages and attorneys’ fees. In August 2016, we completed our acquisition of Blue Coat. We intend to vigorously contest the judgment and continue to investigate all available remedies for relief, including the filing of a Notice of Appeal to the Federal Circuit Court of Appeals. Our current best estimated loss and related interest with respect to the jury verdict is $40 million , which was accrued by Blue Coat and assumed by us as a part of the acquisition of Blue Coat. Other We are involved in a number of other judicial and administrative proceedings that are incidental to our business. Although adverse decisions (or settlements) may occur in one or more of the cases, it is not possible to estimate the possible loss or losses from each of these cases. The final resolution of these lawsuits, individually or in the aggregate, is not expected to have a material adverse effect on our business, results of operations, financial condition or cash flows. |
Segment Information
Segment Information | 6 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We operate in the following two reporting segments, which are the same as our operating segments: • Consumer Security: Our Consumer Security segment focuses on making it simple for customers to be productive and protected at home and at work. Our Norton-branded services provide multi-layer security and identity protection on major desktop and mobile operating systems, to defend against increasingly complex online threats to individuals, families, and small businesses. • Enterprise Security: Our Enterprise Security segment protects organizations so they can securely conduct business while leveraging new platforms and data. Our Enterprise Security segment includes our threat protection products, information protection products, cyber security services, and website security services. There were no intersegment sales for the periods presented. The following table summarizes the operating results of our reporting segments: Three Months Ended Six Months Ended September 30, 2016 October 2, September 30, 2016 October 2, (In millions) Total Segments Net revenues $ 979 $ 906 $ 1,863 $ 1,818 Operating income 249 283 502 558 Consumer Security Net revenues $ 405 $ 420 $ 808 $ 850 Operating income 224 232 449 477 Enterprise Security Net revenues $ 574 $ 486 $ 1,055 $ 968 Operating income 25 51 53 81 Operating segments are based upon the nature of our business and how our business is managed. Our Chief Operating Decision Makers, comprised of our Chief Executive Officer ("CEO") and Chief Financial Officer, use operating segment financial information to evaluate our performance and to assign resources. A significant portion of the segments' operating expenses and cost of revenues, to a lesser extent, arise from shared services and infrastructure that we have historically provided to the segments in order to realize economies of scale and to efficiently use resources. These expenses (collectively "corporate charges") include legal, accounting, real estate, information technology services, treasury, human resources and other corporate infrastructure expenses. Corporate charges were allocated to the segments, and the allocations were determined on a basis that we consider to be a reasonable reflection of the utilization of services provided to or benefits received by the segments. Corporate charges previously allocated to Veritas, but not classified within discontinued operations, were not reallocated to our other segments. At the beginning of the third quarter of fiscal 2016, as Veritas became operationally separate, operating costs related to Veritas were attributed directly to Veritas which reduced our unallocated corporate charges to zero . These charges are presented below as a component of the reconciliation between the total segment operating income and Symantec's income from continuing operations and are classified as unallocated corporate charges. In addition, we do not allocate stock-based compensation expense, amortization of intangible assets, costs related to restructuring, separation and transition events, and certain acquisition and integration costs. The following table provides a reconciliation of our total reportable segments’ operating income to our consolidated operating income (loss) from continuing operations: Three Months Ended Six Months Ended September 30, 2016 October 2, September 30, 2016 October 2, (In millions) Total segment operating income $ 249 $ 283 $ 502 $ 558 Reconciling items: Unallocated corporate charges — 87 — 186 Stock-based compensation 85 45 134 80 Amortization of intangible assets 69 20 89 43 Restructuring, separation, transition, and other 64 31 134 66 Acquisition and integration costs 43 — 51 — Total consolidated operating income (loss) from continuing operations $ (12 ) $ 100 $ 94 $ 183 |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Dividends The following table summarizes dividends declared and paid and dividend equivalents paid for the periods presented: Three Months Ended Six Months Ended September 30, 2016 October 2, September 30, 2016 October 2, (In millions, except per share data) Dividends declared and paid $ 47 $ 102 $ 93 $ 205 Dividend equivalents paid 5 1 27 5 Total dividends and dividend equivalents paid $ 52 $ 103 $ 120 $ 210 Cash dividends declared per common share $ 0.075 $ 0.15 $ 0.15 $ 0.30 Our RSUs and performance-based restricted stock units ("PSUs") are entitled to dividend equivalents to be paid in the form of cash upon vesting for each share of the underlying unit. On November 3, 2016 , we declared a cash dividend of $0.075 per share of common stock to be paid on December 14, 2016 , to all stockholders of record as of the close of business on November 21, 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. Changes in accumulated other comprehensive income (loss) by component Components of accumulated other comprehensive income (loss), on a net of tax basis, were as follows: Foreign Currency Translation Adjustments Unrealized Gain on Available-For-Sale Securities Total (In millions) Balance as of April 1, 2016 $ 15 $ 7 $ 22 Other comprehensive loss before reclassifications (22 ) (1 ) (23 ) Balance as of September 30, 2016 $ (7 ) $ 6 $ (1 ) |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Sep. 30, 2016 | |
Share-based Compensation [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation expense The following table sets forth the stock-based compensation expense recognized in our Condensed Consolidated Statements of Operations : Three Months Ended Six Months Ended September 30, 2016 October 2, September 30, 2016 October 2, (In millions) Cost of revenues $ 5 $ 2 $ 8 $ 4 Sales and marketing 24 16 38 27 Research and development 24 16 39 28 General and administrative 32 11 49 21 Total stock-based compensation expense 85 45 134 80 Tax benefit associated with stock-based compensation expense (25 ) (13 ) (40 ) (23 ) Net stock-based compensation expense from continuing operations 60 32 94 57 Net stock-based compensation expense from discontinued operations — 24 — 37 Net stock-based compensation expense $ 60 $ 56 $ 94 $ 94 The following table summarizes additional information related to our stock-based compensation: Six Months Ended September 30, 2016 October 2, (In millions, except per grant data) Restricted stock units Weighted-average fair value per grant $ 18.59 $ 23.53 Awards granted and assumed in acquisition 13.8 12.8 Total fair value of awards vested $ 94 $ 140 Total unrecognized compensation expense $ 301 $ 462 Weighted-average remaining vesting period 2.1 years 2.3 years Performance-based restricted stock units Weighted-average fair value per grant $ 19.84 $ 27.03 Awards granted and assumed in acquisition 4.9 0.9 Total fair value of awards released $ 13 $ 5 Total unrecognized compensation expense $ 68 $ 24 Weighted-average remaining vesting period 1.4 years 1.8 years Stock options Total intrinsic value of stock options exercised $ 50 $ 2 Total unrecognized compensation expense $ 134 $ — Weighted-average remaining vesting period 1.8 years — Blue Coat acquisition In connection with the Blue Coat acquisition, we assumed the outstanding equity awards under two of Blue Coat’s equity incentive plans (the Blue Coat, Inc. 2016 Equity Incentive Plan and the Batman Holdings, Inc. 2015 Amended and Restated Equity Incentive Plan (collectively, the "Plans")), including 7.5 million vested and 12.5 million unvested stock options, 4.8 million unvested RSUs, and 3.0 million unvested PRUs. Upon vesting, these assumed options will be exercisable into, and these assumed RSUs and PRUs will settle into shares of our common stock. The assumed RSUs and PRUs generally retained the terms and conditions under which they were originally granted. We will not grant additional options or shares under the Plans. Future equity awards by Symantec will be made under Symantec's 2013 Equity Incentive Plan, as amended. See Note 3 for more information on the Blue Coat acquisition. Included in the aforementioned assumed Blue Coat equity awards were RSUs and PRUs granted to Gregory S. Clark, former Blue Coat CEO and our current CEO, in connection with the closing of the Blue Coat acquisition. These equity awards were assumed by Symantec on the close date for an equivalent of 1.3 million Symantec RSUs and 1.0 million PRUs. The RSUs vest at various times over 3 -years and PRUs are subject to 2 -year vesting and the achievement of certain performance metrics during the applicable performance period. These awards had a combined fair value of $46 million on the close date of the Blue Coat acquisition. In addition, Blue Coat had previously granted Mr. Clark stock options which were assumed by Symantec on the close date. Upon assumption of these options, Mr. Clark held 3.9 million unvested options to purchase our common stock with a fair value of $53 million on the close date, of which $50 million will be recognized as stock-based compensation expense over the 2 -year vesting period and the remainder was included as part of the consideration transferred for the acquisition. |
Income Taxes
Income Taxes | 6 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The following table summarizes our effective tax rate for income (loss) from continuing operations for the periods presented: Three Months Ended Six Months Ended September 30, 2016 October 2, September 30, 2016 October 2, (In millions, except percentages) Income (loss) before income taxes $ (50 ) $ 87 $ 47 $ 147 Provision for income taxes $ 19 $ 34 $ 50 $ 69 Effective tax rate (38 )% 39 % 106 % 47 % Our effective tax rate for income (loss) from continuing operations for the three and six months ended September 30, 2016 differs from the federal statutory income tax rate primarily due to the benefits of lower-taxed international earnings and the research and development credit, offset by various permanent differences and tax expense related to the loss of tax attributes due to restructuring activities as noted below. Additionally, as pre-tax income (loss) approaches break even, small changes can produce significant variability in the effective tax rate. Our effective tax rate for income from continuing operations for the three and six months ended October 2, 2015 differs from the federal statutory income tax rate primarily due to the impact of unallocated corporate charges triggering foreign losses benefited by lower international tax rates. For the three and six months ended September 30, 2016 , we recorded an income tax expense on discontinued operations of $118 million and $134 million respectively. For the three and six months ended October 2, 2015 , we recorded an income tax benefit on discontinued operations of $1 million and income tax expense on discontinued operations of $20 million , respectively. See Note 6 for further details regarding discontinued operations. For the three months ended September 30, 2016 , our tax provision was increased due to a deferred tax expense of $52 million related to the loss of tax attributes as a result of restructuring activities. For the three and six months ended September 30, 2016 , our tax provision was reduced by tax benefits primarily resulting from settlements with certain taxing authorities and lapses of statutes of limitations of $1 million and $9 million , respectively. For the three and six months ended October 2, 2015 , our tax provision was reduced by $8 million in tax benefits related to certain foreign operations. We are a U.S.-based multinational company subject to tax in multiple U.S. and international tax jurisdictions. A substantial portion of our international earnings were generated from subsidiaries organized in Ireland and Singapore. Our results of operations would be adversely affected to the extent that our geographical mix of income becomes more weighted toward jurisdictions with higher tax rates and would be favorably affected to the extent the relative geographic mix shifts to lower tax jurisdictions. Any change in our mix of earnings is dependent upon many factors and is therefore difficult to predict. The timing of the resolution of income tax examinations is highly uncertain, and the amounts ultimately paid, if any, upon resolution of the issues raised by the taxing authorities may differ materially from the amounts accrued for each year. Although potential resolution of uncertain tax positions involve multiple tax periods and jurisdictions, it is reasonably possible that the gross unrecognized tax benefits related to these audits could decrease (whether by payment, release, or a combination of both) in the next 12 months by $7 million , which could reduce our income tax provision and therefore benefit the resulting effective tax rate. We continue to monitor the progress of ongoing income tax controversies and the impact, if any, of the expected expiration of the statute of limitations in various taxing jurisdictions. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 6 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | Net Income (Loss) Per Share Basic and diluted net income (loss) per share are computed on the basis of the weighted-average number of shares of common stock outstanding during the period. Diluted net income per share also includes the incremental effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include the dilutive effect of the shares' underlying outstanding stock options, restricted stock, employee stock purchase plan and Convertible Senior Notes. The components of net income (loss) per share are as follows: Three Months Ended Six Months Ended September 30, 2016 October 2, September 30, 2016 October 2, (In millions, except per share data) Income (loss) from continuing operations $ (69 ) $ 53 $ (3 ) $ 78 Income (loss) from discontinued operations, net of tax (75 ) 103 (6 ) 195 Net income (loss) $ (144 ) $ 156 $ (9 ) $ 273 Income (loss) per share - basic: Continuing operations $ (0.11 ) $ 0.08 $ — $ 0.11 Discontinued operations $ (0.12 ) $ 0.15 $ (0.01 ) $ 0.29 Net income (loss) per share - basic $ (0.23 ) $ 0.23 $ (0.01 ) $ 0.40 Income (loss) per share - diluted: Continuing operations $ (0.11 ) $ 0.08 $ — $ 0.11 Discontinued operations $ (0.12 ) $ 0.15 $ (0.01 ) $ 0.28 Net income (loss) per share - diluted $ (0.23 ) $ 0.23 $ (0.01 ) $ 0.40 Weighted-average shares outstanding - basic 620 682 617 682 Dilutive potential shares — 5 — 7 Weighted-average shares outstanding - diluted 620 687 617 689 Note: The total amounts may not add due to rounding. The following convertible shares, stock options and restricted stock units have been excluded from the computation of diluted net income (loss) per share because their effect would have been anti-dilutive: As of September 30, 2016 October 2, (In millions) Convertible shares 91 — Stock options 19 — Restricted stock units 29 11 Total 139 11 Under the treasury stock method, the Convertible Senior Notes will generally have a dilutive impact on earnings when our average stock price for the period exceeds approximately $16.77 per share for the 2.5% Convertible Senior Notes and $20.41 per share for the 2.0% Convertible Senior Notes. During the three and six months ended September 30, 2016 , the conversion feature of both notes was anti-dilutive due to a loss from continuing operations. |
Description of Business and S20
Description of Business and Significant Accounting Policies (Policies) | 6 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of presentation | Basis of presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles ("GAAP") in the United States of America ("U.S.") for interim financial information. In the opinion of management, the unaudited Condensed Consolidated Financial Statements contain all adjustments, consisting only of normal recurring items, except as otherwise noted, necessary for the fair presentation of our financial position, results of operations, and cash flows for the interim periods. These unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and accompanying Notes thereto included in our Annual Report on Form 10-K for the fiscal year ended April 1, 2016 . The results of operations for the three and six months ended September 30, 2016 , are not necessarily indicative of the results expected for the entire fiscal year. |
Fiscal accounting year | We have a 52/53-week fiscal accounting year. Unless otherwise stated, references to three and six month ended periods in this report relate to fiscal periods ended September 30, 2016 and October 2, 2015 . The six months ended September 30, 2016 and October 2, 2015 , each consisted of 26 weeks. Our 2017 fiscal year consists of 52 weeks and ends on March 31, 2017 . |
Stock-based compensation | Stock-based compensation Stock-based compensation expense is measured at the grant date based on the fair value of the award and is generally recognized on a straight-line basis over the requisite service period, which is generally the vesting period of the respective award. No compensation cost is ultimately recognized for awards for which employees do not render the requisite service and are forfeited. We estimate forfeitures based on historical experience. Our granted stock-based awards principally consist of restricted stock units (“RSUs”). The fair value of each RSU is equal to the market value of our common stock on the date of grant. The fair values of RSUs are not discounted by the dividend yield because the Company’s RSUs include dividend-equivalent rights. We use the Black-Scholes model to determine the fair value of stock options. The Black-Scholes model incorporates various subjective variables, including our expected stock price volatility over the expected life of the options, actual and projected employee stock option exercise and forfeiture behaviors, risk-free interest rates, and expected dividends. |
Recent accounting guidance not yet adopted | Recent accounting guidance not yet adopted In May 2014, the Financial Accounting Standards Board ("FASB") issued authoritative guidance on revenue from contracts with customers. The new standard provides principles for recognizing revenue for the transfer of promised goods or services to customers with the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard also requires significantly expanded disclosures about revenue recognition. As currently issued and amended, the standard is effective for us for our first quarter of fiscal 2019 and may be applied retrospectively or using the cumulative effect transition method. Early adoption as of the original effective date is permitted, but we do not intend to adopt the provisions of the new standard early. We expect to determine an adoption method by the end of fiscal 2017 and to have a preliminary qualitative assessment of the effect that the standard will have on our Consolidated Financial Statements. In January 2016, the FASB issued new authoritative guidance on financial instruments. The new guidance enhances the reporting model for financial instruments, which includes amendments to address aspects of recognition, measurement, presentation and disclosure. The update to the standard is effective for us for our first quarter of fiscal 2019, with early adoption permitted under limited circumstances. We are currently evaluating the effect the standard will have on our Consolidated Financial Statements. In February 2016, the FASB issued new authoritative guidance on lease accounting. Among its provisions, the standard requires lessees to recognize right-of-use assets and lease liabilities on the balance sheet for operating leases and also requires additional qualitative and quantitative disclosures about lease arrangements. The standard is effective for us for our first quarter of fiscal 2020 with early adoption permitted. It is not expected that the adoption of the standard will have a material impact to our operating results. In March 2016, the FASB issued authoritative guidance simplifying several aspects of the accounting for employee share-based payment transactions, including the income tax consequences, accounting for forfeitures, and classification of excess tax benefits on the statement of cash flows. The standard is effective for us for our first quarter of fiscal 2018, however, early adoption is permitted. We believe the most significant impact of the new guidance will be volatility to our effective tax rate from the change in accounting for income taxes and on its classification of excess tax benefit on the Consolidated Statements of Cash Flows. The impact of this standard on our effective tax rate for future periods will be dependent on our stock price at the time the awards vest and the number of awards that vest. In June 2016, the FASB issued new authoritative guidance on credit losses which changes the impairment model for most financial assets and certain other instruments. For trade receivables and other instruments, we will be required to use a new forward-looking “expected loss” model. Additionally, for available-for-sale debt securities with unrealized losses, we will measure credit losses in a manner similar to today, except that the losses will be recognized as allowances rather than reductions in the amortized cost of the securities. The standard will be effective for us for our first quarter of fiscal 2021. We are currently evaluating the effect the standard will have on our Consolidated Financial Statements. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of the Carrying Value of Assets Measured at Fair Value on a Recurring Basis | The following table summarizes our assets measured at fair value on a recurring basis, by level, within the fair value hierarchy: September 30, 2016 April 1, 2016 Fair Value Cash and Cash Equivalents Short-term Investments Fair Value Cash and Cash Equivalents Short-term Investments (In millions) Cash $ 944 $ 944 $ — $ 1,072 $ 1,072 $ — Non-negotiable certificates of deposit 46 46 — 1 — 1 Level 1 Money market 2,977 2,977 — 2,905 2,905 — U.S. government securities 117 117 — 335 310 25 Marketable equity securities 9 — 9 11 — 11 3,103 3,094 9 3,251 3,215 36 Level 2 Corporate bonds — — — 45 43 2 U.S. agency securities 574 574 — 526 523 3 Commercial paper 952 952 — 1,121 1,121 — Negotiable certificates of deposit — — — 9 9 — 1,526 1,526 — 1,701 1,696 5 Total $ 5,619 $ 5,610 $ 9 $ 6,025 $ 5,983 $ 42 |
Acquisition (Tables)
Acquisition (Tables) | 6 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
Schedule of Total Consideration | The total consideration for the acquisition of Blue Coat was approximately $4.67 billion , net of cash acquired, and consisted of the following: August 1, 2016 (In millions) Cash and equity consideration for outstanding Blue Coat common shares and restricted stock awards $ 2,006 Cash consideration for outstanding Blue Coat debt 1,910 Issuance of Symantec 2.0% convertible debt to Bain Capital Funds (selling shareholder) 750 Fair value of vested assumed Blue Coat stock options 102 Cash consideration for acquiree acquisition-related expenses 51 Total consideration 4,819 Cash acquired (146 ) Net consideration transferred $ 4,673 |
Schedule of Preliminary Fair Values of the Assets Acquired and Liabilities Assumed | Our preliminary allocation of the purchase price, based on the estimated fair values of the assets acquired and liabilities assumed on the close date, is as follows: August 1, 2016 (In millions) Assets Accounts receivable $ 125 Other current assets 65 Property and equipment 54 Intangibles 1,608 Goodwill 4,086 Other long-term assets 9 Total assets acquired 5,947 Liabilities Deferred revenue 144 Other current liabilities 111 Long-term deferred revenue 76 Long-term deferred tax liabilities 924 Other long-term obligations 19 Total liabilities assumed 1,274 Total purchase price $ 4,673 |
Components of Intangible Assets Recognized | Preliminary identified intangible assets and their respective useful lives are as follows: Fair Value Weighted-average Estimated Useful Life (In millions) Customer relationships $ 844 7 years Developed technology and patents 739 4.3 years Finite-lived trade names 4 2 years Product backlog 2 4 months Total identified finite-lived intangible assets 1,589 In-process research and development 19 N/A Total identified intangible assets $ 1,608 |
Schedule of Pro Forma Information | The following table summarizes the pro forma financial information: Three Months Ended Six Months Ended September 30, 2016 October 2, September 30, 2016 October 2, (In millions) Net revenues $ 1,023 $ 1,041 $ 2,086 $ 2,078 Net income (loss) $ (158 ) $ 40 $ (119 ) $ — |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in the Carrying Amount of Goodwill | The changes in the carrying amount of goodwill are as follows: Consumer Security Enterprise Security Total (In millions) Net balance as of April 1, 2016 $ 1,231 $ 1,917 $ 3,148 Acquisition of Blue Coat — 4,086 4,086 Translation adjustments — (2 ) (2 ) Net balance as of September 30, 2016 $ 1,231 $ 6,001 $ 7,232 |
Schedule of Intangible Assets, Net, Indefinite-Lived | September 30, 2016 April 1, 2016 Gross Accumulated Net Gross Accumulated Net (In millions) Customer relationships $ 1,247 $ (361 ) $ 886 $ 406 $ (320 ) $ 86 Developed technology 883 (125 ) 758 144 (84 ) 60 Finite-lived trade names 19 (4 ) 15 2 (2 ) — Patents 21 (19 ) 2 21 (18 ) 3 Total finite-lived intangible assets 2,170 (509 ) 1,661 573 (424 ) 149 Indefinite-lived trade names 281 — 281 294 — 294 In-process research and development 19 — 19 — — — Total $ 2,470 $ (509 ) $ 1,961 $ 867 $ (424 ) $ 443 |
Schedule of Intangible Assets, Net, Finite-Lived | September 30, 2016 April 1, 2016 Gross Accumulated Net Gross Accumulated Net (In millions) Customer relationships $ 1,247 $ (361 ) $ 886 $ 406 $ (320 ) $ 86 Developed technology 883 (125 ) 758 144 (84 ) 60 Finite-lived trade names 19 (4 ) 15 2 (2 ) — Patents 21 (19 ) 2 21 (18 ) 3 Total finite-lived intangible assets 2,170 (509 ) 1,661 573 (424 ) 149 Indefinite-lived trade names 281 — 281 294 — 294 In-process research and development 19 — 19 — — — Total $ 2,470 $ (509 ) $ 1,961 $ 867 $ (424 ) $ 443 |
Schedule of Future Intangible Asset Amortization Expense | As of September 30, 2016 , future amortization expense related to intangible assets that have finite lives is as follows by fiscal year: September 30, 2016 (In millions) Remainder of 2017 $ 272 2018 347 2019 317 2020 301 2021 153 Thereafter 271 Total $ 1,661 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Components of Debt | The following table summarizes components of our debt: September 30, 2016 April 1, 2016 Amount Effective Amount Effective (In millions, except percentages) 2.75% Senior Notes due June 15, 2017 $ 600 2.79 % $ 600 2.79 % Senior Term Loan A-1 due May 10, 2019 1,000 LIBOR plus (1) — — % Senior Term Loan A-2 due August 1, 2019 800 LIBOR plus (1) — — % Senior Term Loan A-3 due August 1, 2019 200 LIBOR plus (1) — — % 4.2% Senior Notes due September 15, 2020 750 4.25 % 750 4.25 % 2.5% Convertible Senior Notes due April 1, 2021 500 3.76 % 500 3.76 % Senior Term Loan A-5 due August 1, 2021 1,800 LIBOR plus (1) — — % 2.0% Convertible Unsecured Notes due August 15, 2021 1,250 2.66 % — — % 3.95% Senior Notes due June 15, 2022 400 4.05 % 400 4.05 % Total principal amount 7,300 2,250 Less: Unamortized discount and issuance costs (124 ) (43 ) Total debt 7,176 2,207 Less: Current portion (600 ) — Total long-term debt $ 6,576 $ 2,207 (1) The senior term facilities bear interest at a rate equal to the London Interbank Offered Rate ("LIBOR") plus a margin based on the debt rating of our non-credit-enhanced, senior unsecured long-term debt. |
Schedule of Maturities of Long-term Debt | The future maturities of debt by fiscal year are as follows as of September 30, 2016: September 30, 2016 (In millions) Remainder of 2017 $ — 2018 600 2019 — 2020 2,000 2021 1,250 Thereafter 3,450 Total $ 7,300 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 6 Months Ended |
Sep. 30, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Summary of Components of Discontinued Operations | The following table presents information regarding certain components of income (loss) from discontinued operations, net of income taxes: Three Months Ended Six Months Ended September 30, October 2, 2015 September 30, October 2, 2015 (In millions) Net revenues $ 51 $ 592 $ 123 $ 1,179 Cost of revenues (6 ) (104 ) (9 ) (200 ) Operating expenses — (385 ) (24 ) (758 ) Gain on sale of Veritas — — 38 — Other expense, net (2 ) (1 ) — (6 ) Income from discontinued operations before income taxes 43 102 128 215 Income taxes expense (benefit) 118 (1 ) 134 20 Income (loss) from discontinued operations, net of income taxes $ (75 ) $ 103 $ (6 ) $ 195 |
Restructuring, Separation, Tr26
Restructuring, Separation, Transition and Other Costs (Tables) | 6 Months Ended |
Sep. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
Schedule of the Restructuring, Separation, Transition and Other Expense Summary | Restructuring, separation, transition, and other expense summary Three Months Ended September 30, 2016 Six Months Ended September 30, 2016 (In millions) Fiscal 2017 Plan Severance costs $ 14 $ 38 Other exit and disposal costs 20 35 Asset write-offs 5 14 Fiscal 2017 Plan total 39 87 Fiscal 2015 Plan total — 2 Transition and other related costs 25 45 Restructuring, separation, transition, and other from continuing operations 64 134 Restructuring, separation, transition, and other from discontinued operations 1 10 Total restructuring, separation, transition, and other $ 65 $ 144 |
Schedule of the Restructuring and Separation Liabilities Summary | Restructuring and separation liabilities summary Balance as of April 1, 2016 Costs, Net of Cash Non-Cash Charges Balance as of September 30, 2016 Cumulative (In millions) Fiscal 2017 Plan Severance costs $ — $ 38 $ (31 ) $ — $ 7 $ 38 Other exit and disposal costs 4 35 (21 ) — 18 39 Asset write-offs — 14 — (14 ) — 14 Fiscal 2017 Plan total 4 87 (52 ) (14 ) 25 $ 91 Fiscal 2015 Plan total 29 12 (32 ) — 9 $ 468 Restructuring and separation plans total $ 33 $ 99 $ (84 ) $ (14 ) $ 34 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Reportable Segment Data | The following table summarizes the operating results of our reporting segments: Three Months Ended Six Months Ended September 30, 2016 October 2, September 30, 2016 October 2, (In millions) Total Segments Net revenues $ 979 $ 906 $ 1,863 $ 1,818 Operating income 249 283 502 558 Consumer Security Net revenues $ 405 $ 420 $ 808 $ 850 Operating income 224 232 449 477 Enterprise Security Net revenues $ 574 $ 486 $ 1,055 $ 968 Operating income 25 51 53 81 |
Reconciliation of Total Segment Operating Income from Continuing Operations to Total Consolidated Operating Income | The following table provides a reconciliation of our total reportable segments’ operating income to our consolidated operating income (loss) from continuing operations: Three Months Ended Six Months Ended September 30, 2016 October 2, September 30, 2016 October 2, (In millions) Total segment operating income $ 249 $ 283 $ 502 $ 558 Reconciling items: Unallocated corporate charges — 87 — 186 Stock-based compensation 85 45 134 80 Amortization of intangible assets 69 20 89 43 Restructuring, separation, transition, and other 64 31 134 66 Acquisition and integration costs 43 — 51 — Total consolidated operating income (loss) from continuing operations $ (12 ) $ 100 $ 94 $ 183 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Summary of Dividends Declared and Paid | The following table summarizes dividends declared and paid and dividend equivalents paid for the periods presented: Three Months Ended Six Months Ended September 30, 2016 October 2, September 30, 2016 October 2, (In millions, except per share data) Dividends declared and paid $ 47 $ 102 $ 93 $ 205 Dividend equivalents paid 5 1 27 5 Total dividends and dividend equivalents paid $ 52 $ 103 $ 120 $ 210 Cash dividends declared per common share $ 0.075 $ 0.15 $ 0.15 $ 0.30 |
Schedule of Accumulated Other Comprehensive Income (Loss) | Components of accumulated other comprehensive income (loss), on a net of tax basis, were as follows: Foreign Currency Translation Adjustments Unrealized Gain on Available-For-Sale Securities Total (In millions) Balance as of April 1, 2016 $ 15 $ 7 $ 22 Other comprehensive loss before reclassifications (22 ) (1 ) (23 ) Balance as of September 30, 2016 $ (7 ) $ 6 $ (1 ) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Sep. 30, 2016 | |
Share-based Compensation [Abstract] | |
Schedule of Stock-Based Compensation Expense Recognized in our Condensed Consolidated Statements of Income | The following table sets forth the stock-based compensation expense recognized in our Condensed Consolidated Statements of Operations : Three Months Ended Six Months Ended September 30, 2016 October 2, September 30, 2016 October 2, (In millions) Cost of revenues $ 5 $ 2 $ 8 $ 4 Sales and marketing 24 16 38 27 Research and development 24 16 39 28 General and administrative 32 11 49 21 Total stock-based compensation expense 85 45 134 80 Tax benefit associated with stock-based compensation expense (25 ) (13 ) (40 ) (23 ) Net stock-based compensation expense from continuing operations 60 32 94 57 Net stock-based compensation expense from discontinued operations — 24 — 37 Net stock-based compensation expense $ 60 $ 56 $ 94 $ 94 |
Schedule of Additional Information Related to Stock-Based Compensation | The following table summarizes additional information related to our stock-based compensation: Six Months Ended September 30, 2016 October 2, (In millions, except per grant data) Restricted stock units Weighted-average fair value per grant $ 18.59 $ 23.53 Awards granted and assumed in acquisition 13.8 12.8 Total fair value of awards vested $ 94 $ 140 Total unrecognized compensation expense $ 301 $ 462 Weighted-average remaining vesting period 2.1 years 2.3 years Performance-based restricted stock units Weighted-average fair value per grant $ 19.84 $ 27.03 Awards granted and assumed in acquisition 4.9 0.9 Total fair value of awards released $ 13 $ 5 Total unrecognized compensation expense $ 68 $ 24 Weighted-average remaining vesting period 1.4 years 1.8 years Stock options Total intrinsic value of stock options exercised $ 50 $ 2 Total unrecognized compensation expense $ 134 $ — Weighted-average remaining vesting period 1.8 years — |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Summary of Effective Tax Rate | The following table summarizes our effective tax rate for income (loss) from continuing operations for the periods presented: Three Months Ended Six Months Ended September 30, 2016 October 2, September 30, 2016 October 2, (In millions, except percentages) Income (loss) before income taxes $ (50 ) $ 87 $ 47 $ 147 Provision for income taxes $ 19 $ 34 $ 50 $ 69 Effective tax rate (38 )% 39 % 106 % 47 % |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 6 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Components of Net Income Per Share | The components of net income (loss) per share are as follows: Three Months Ended Six Months Ended September 30, 2016 October 2, September 30, 2016 October 2, (In millions, except per share data) Income (loss) from continuing operations $ (69 ) $ 53 $ (3 ) $ 78 Income (loss) from discontinued operations, net of tax (75 ) 103 (6 ) 195 Net income (loss) $ (144 ) $ 156 $ (9 ) $ 273 Income (loss) per share - basic: Continuing operations $ (0.11 ) $ 0.08 $ — $ 0.11 Discontinued operations $ (0.12 ) $ 0.15 $ (0.01 ) $ 0.29 Net income (loss) per share - basic $ (0.23 ) $ 0.23 $ (0.01 ) $ 0.40 Income (loss) per share - diluted: Continuing operations $ (0.11 ) $ 0.08 $ — $ 0.11 Discontinued operations $ (0.12 ) $ 0.15 $ (0.01 ) $ 0.28 Net income (loss) per share - diluted $ (0.23 ) $ 0.23 $ (0.01 ) $ 0.40 Weighted-average shares outstanding - basic 620 682 617 682 Dilutive potential shares — 5 — 7 Weighted-average shares outstanding - diluted 620 687 617 689 Note: The total amounts may not add due to rounding. The following convertible shares, stock options and restricted stock units have been excluded from the computation of diluted net income (loss) per share because their effect would have been anti-dilutive: As of September 30, 2016 October 2, (In millions) Convertible shares 91 — Stock options 19 — Restricted stock units 29 11 Total 139 11 |
Schedule of Antidilutive Securities Excluded from Diluted Net Income (Loss) Per Share | The following convertible shares, stock options and restricted stock units have been excluded from the computation of diluted net income (loss) per share because their effect would have been anti-dilutive: As of September 30, 2016 October 2, (In millions) Convertible shares 91 — Stock options 19 — Restricted stock units 29 11 Total 139 11 |
Description of Business and S32
Description of Business and Significant Accounting Policies (Details) $ in Millions | Aug. 01, 2016USD ($) |
Stock options | Blue Coat, Inc. | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Assumed awards, fair value | $ 265 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule of the Carrying Value of Assets Measured at Fair Value on a Recurring Basis) (Details) - Recurring - USD ($) $ in Millions | Sep. 30, 2016 | Apr. 01, 2016 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | $ 5,619 | $ 6,025 |
Fair Value | Cash | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 944 | 1,072 |
Fair Value | Non-negotiable certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 46 | 1 |
Fair Value | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 3,103 | 3,251 |
Fair Value | Level 1 | Money market | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 2,977 | 2,905 |
Fair Value | Level 1 | U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 117 | 335 |
Fair Value | Level 1 | Marketable equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 9 | 11 |
Fair Value | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 1,526 | 1,701 |
Fair Value | Level 2 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 45 |
Fair Value | Level 2 | U.S. agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 574 | 526 |
Fair Value | Level 2 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 952 | 1,121 |
Fair Value | Level 2 | Negotiable certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 9 |
Reported Value Measurement | Cash and Cash Equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 5,610 | 5,983 |
Reported Value Measurement | Cash and Cash Equivalents | Cash | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 944 | 1,072 |
Reported Value Measurement | Cash and Cash Equivalents | Non-negotiable certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 46 | 0 |
Reported Value Measurement | Cash and Cash Equivalents | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 3,094 | 3,215 |
Reported Value Measurement | Cash and Cash Equivalents | Level 1 | Money market | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 2,977 | 2,905 |
Reported Value Measurement | Cash and Cash Equivalents | Level 1 | U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 117 | 310 |
Reported Value Measurement | Cash and Cash Equivalents | Level 1 | Marketable equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Reported Value Measurement | Cash and Cash Equivalents | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 1,526 | 1,696 |
Reported Value Measurement | Cash and Cash Equivalents | Level 2 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 43 |
Reported Value Measurement | Cash and Cash Equivalents | Level 2 | U.S. agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 574 | 523 |
Reported Value Measurement | Cash and Cash Equivalents | Level 2 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 952 | 1,121 |
Reported Value Measurement | Cash and Cash Equivalents | Level 2 | Negotiable certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 9 |
Reported Value Measurement | Short-term Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 9 | 42 |
Reported Value Measurement | Short-term Investments | Cash | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Reported Value Measurement | Short-term Investments | Non-negotiable certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 1 |
Reported Value Measurement | Short-term Investments | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 9 | 36 |
Reported Value Measurement | Short-term Investments | Level 1 | Money market | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Reported Value Measurement | Short-term Investments | Level 1 | U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 25 |
Reported Value Measurement | Short-term Investments | Level 1 | Marketable equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 9 | 11 |
Reported Value Measurement | Short-term Investments | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 5 |
Reported Value Measurement | Short-term Investments | Level 2 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 2 |
Reported Value Measurement | Short-term Investments | Level 2 | U.S. agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 3 |
Reported Value Measurement | Short-term Investments | Level 2 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Reported Value Measurement | Short-term Investments | Level 2 | Negotiable certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | $ 0 | $ 0 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) | 6 Months Ended | |
Sep. 30, 2016 | Apr. 01, 2016 | |
Fair Value Disclosures [Abstract] | ||
Transfers between fair value measurement levels | $ 0 | |
Level 2 | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Fair value of debt | $ 7,300,000,000 | $ 2,300,000,000 |
Acquisition (Narrative) (Detail
Acquisition (Narrative) (Details) - USD ($) | Aug. 01, 2016 | Sep. 30, 2016 | Sep. 30, 2016 | Apr. 01, 2016 | [1] |
Business Acquisition [Line Items] | |||||
Goodwill | $ 7,232,000,000 | $ 7,232,000,000 | $ 3,148,000,000 | ||
Convertible Debt | 2.0% Convertible Unsecured Notes due August 15, 2021 | |||||
Business Acquisition [Line Items] | |||||
Stated interest rate (as a percent) | 2.00% | 2.00% | |||
Blue Coat, Inc. | |||||
Business Acquisition [Line Items] | |||||
Total purchase price | $ 4,673,000,000 | ||||
Aggregate proceeds drawn | 2,800,000,000 | ||||
Issuance of Symantec 2.0% convertible debt to Bain Capital Funds (selling shareholder) | 750,000,000 | ||||
Goodwill | $ 4,086,000,000 | ||||
Net revenues | $ 88,000,000 | $ 87,000,000 | |||
Net loss before income taxes | 105,000,000 | $ 105,000,000 | |||
Transaction costs | $ 40,000,000 | ||||
Blue Coat, Inc. | Convertible Debt | 2.0% Convertible Unsecured Notes due August 15, 2021 | |||||
Business Acquisition [Line Items] | |||||
Stated interest rate (as a percent) | 2.00% | ||||
Principal amount | $ 1,250,000,000 | ||||
[1] | Derived from audited financial statements. |
Acquisition (Schedule of Total
Acquisition (Schedule of Total Consideration) (Details) - USD ($) $ in Millions | Aug. 01, 2016 | Sep. 30, 2016 |
Convertible Debt | 2.0% Convertible Unsecured Notes due August 15, 2021 | ||
Business Acquisition [Line Items] | ||
Stated interest rate (as a percent) | 2.00% | |
Blue Coat, Inc. | ||
Business Acquisition [Line Items] | ||
Cash and equity consideration for outstanding Blue Coat common shares and restricted stock awards | $ 2,006 | |
Cash consideration for outstanding Blue Coat debt | 1,910 | |
Issuance of Symantec 2.0% convertible debt to Bain Capital Funds (selling shareholder) | 750 | |
Fair value of vested assumed Blue Coat stock options | 102 | |
Cash consideration for acquiree acquisition-related expenses | 51 | |
Total consideration | 4,819 | |
Cash acquired | (146) | |
Net consideration transferred | $ 4,673 | |
Blue Coat, Inc. | Convertible Debt | 2.0% Convertible Unsecured Notes due August 15, 2021 | ||
Business Acquisition [Line Items] | ||
Stated interest rate (as a percent) | 2.00% |
Acquisition (Schedule of Prelim
Acquisition (Schedule of Preliminary Fair Values of the Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Aug. 01, 2016 | Apr. 01, 2016 | [1] |
Assets | ||||
Goodwill | $ 7,232 | $ 3,148 | ||
Blue Coat, Inc. | ||||
Assets | ||||
Accounts receivable | $ 125 | |||
Other current assets | 65 | |||
Property and equipment | 54 | |||
Intangibles | 1,608 | |||
Goodwill | 4,086 | |||
Other long-term assets | 9 | |||
Total assets acquired | 5,947 | |||
Liabilities | ||||
Deferred revenue | 144 | |||
Other current liabilities | 111 | |||
Long-term deferred revenue | 76 | |||
Long-term deferred tax liabilities | 924 | |||
Other long-term obligations | 19 | |||
Total liabilities assumed | 1,274 | |||
Total purchase price | $ 4,673 | |||
[1] | Derived from audited financial statements. |
Acquisition (Components of Inta
Acquisition (Components of Intangible Assets Recognized) (Details) - Blue Coat, Inc. $ in Millions | Aug. 01, 2016USD ($) |
Business Acquisition [Line Items] | |
Total identified finite-lived intangible assets | $ 1,589 |
In-process research and development | 19 |
Intangibles | 1,608 |
Customer relationships | |
Business Acquisition [Line Items] | |
Total identified finite-lived intangible assets | $ 844 |
Weighted-average Estimated Useful Life | 7 years |
Developed technology and patents | |
Business Acquisition [Line Items] | |
Total identified finite-lived intangible assets | $ 739 |
Weighted-average Estimated Useful Life | 4 years 3 months 18 days |
Finite-lived trade names | |
Business Acquisition [Line Items] | |
Total identified finite-lived intangible assets | $ 4 |
Weighted-average Estimated Useful Life | 2 years |
Product backlog | |
Business Acquisition [Line Items] | |
Total identified finite-lived intangible assets | $ 2 |
Weighted-average Estimated Useful Life | 4 months |
Acquisition (Schedule of Pro Fo
Acquisition (Schedule of Pro Forma Information) (Details) - Blue Coat, Inc. - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2016 | Oct. 02, 2015 | Sep. 30, 2016 | Oct. 02, 2015 | |
Business Acquisition [Line Items] | ||||
Net revenues | $ 1,023 | $ 1,041 | $ 2,086 | $ 2,078 |
Net income (loss) | $ (158) | $ 40 | $ (119) | $ 0 |
Goodwill and Intangible Asset40
Goodwill and Intangible Assets (Schedule of Changes in the Carrying Amount of Goodwill) (Details) - USD ($) | 6 Months Ended | ||
Sep. 30, 2016 | Aug. 01, 2016 | ||
Goodwill [Roll Forward] | |||
Net balance, beginning | [1] | $ 3,148,000,000 | |
Acquisition of Blue Coat | 4,086,000,000 | ||
Translation adjustments | (2,000,000) | ||
Net balance, ending | 7,232,000,000 | ||
Blue Coat, Inc. | |||
Goodwill [Roll Forward] | |||
Goodwill, expected tax deductible amount | $ 0 | ||
Consumer Security | |||
Goodwill [Roll Forward] | |||
Net balance, beginning | 1,231,000,000 | ||
Acquisition of Blue Coat | 0 | ||
Translation adjustments | 0 | ||
Net balance, ending | 1,231,000,000 | ||
Enterprise Security | |||
Goodwill [Roll Forward] | |||
Net balance, beginning | 1,917,000,000 | ||
Acquisition of Blue Coat | 4,086,000,000 | ||
Translation adjustments | (2,000,000) | ||
Net balance, ending | $ 6,001,000,000 | ||
[1] | Derived from audited financial statements. |
Goodwill and Intangible Asset41
Goodwill and Intangible Assets (Schedule of Intangible Assets, Net) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Aug. 01, 2016 | Apr. 01, 2016 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Carrying Amount | $ 2,170 | $ 573 | ||
Accumulated Amortization | (509) | (424) | ||
Net Carrying Amount | 1,661 | 149 | ||
Indefinite-lived Intangible Assets [Line Items] | ||||
Gross Carrying Amount | 2,470 | 867 | ||
Net Carrying Amount | 1,961 | 443 | [1] | |
Blue Coat, Inc. | ||||
Business Acquisition [Line Items] | ||||
Intangible assets recorded as part of acquisition | $ 1,608 | |||
Trade Names | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Indefinite-lived intangible assets | 281 | 294 | ||
In-process research and development | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Indefinite-lived intangible assets | 19 | 0 | ||
Customer relationships | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Carrying Amount | 1,247 | 406 | ||
Accumulated Amortization | (361) | (320) | ||
Net Carrying Amount | 886 | 86 | ||
Developed technology | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Carrying Amount | 883 | 144 | ||
Accumulated Amortization | (125) | (84) | ||
Net Carrying Amount | 758 | 60 | ||
Trade Names | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Carrying Amount | 19 | 2 | ||
Accumulated Amortization | (4) | (2) | ||
Net Carrying Amount | 15 | 0 | ||
Patents | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Carrying Amount | 21 | 21 | ||
Accumulated Amortization | (19) | (18) | ||
Net Carrying Amount | $ 2 | $ 3 | ||
[1] | Derived from audited financial statements. |
Goodwill and Intangible Asset42
Goodwill and Intangible Assets (Schedule of Future Intangible Asset Amortization Expense) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Apr. 01, 2016 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remainder of 2017 | $ 272 | |
2,018 | 347 | |
2,019 | 317 | |
2,020 | 301 | |
2,021 | 153 | |
Thereafter | 271 | |
Net Carrying Amount | $ 1,661 | $ 149 |
Debt (Summary of Components of
Debt (Summary of Components of Debt) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Apr. 01, 2016 | |
Debt Instrument [Line Items] | |||
Total principal amount | $ 7,300 | $ 2,250 | |
Less: unamortized discount and issuance costs | (124) | (43) | |
Total debt | 7,176 | 2,207 | |
Less: current portion | (600) | 0 | [1] |
Total long-term portion | $ 6,576 | 2,207 | [1] |
Senior Notes | 2.75% Senior Notes due June 15, 2017 | |||
Debt Instrument [Line Items] | |||
Stated interest rate (as a percent) | 2.75% | ||
Total principal amount | $ 600 | $ 600 | |
Effective interest rate (as a percent) | 2.79% | 2.79% | |
Senior Notes | 4.2% Senior Notes due September 15, 2020 | |||
Debt Instrument [Line Items] | |||
Stated interest rate (as a percent) | 4.20% | ||
Total principal amount | $ 750 | $ 750 | |
Effective interest rate (as a percent) | 4.25% | 4.25% | |
Senior Notes | 3.95% Senior Notes due June 15, 2022 | |||
Debt Instrument [Line Items] | |||
Stated interest rate (as a percent) | 3.95% | ||
Total principal amount | $ 400 | $ 400 | |
Effective interest rate (as a percent) | 4.05% | 4.05% | |
Unsecured Debt | Senior Term Loan A-1 due May 10, 2019 | |||
Debt Instrument [Line Items] | |||
Total principal amount | $ 1,000 | $ 0 | |
Effective interest rate (as a percent) | 0.00% | ||
Unsecured Debt | Senior Term Loan A-2 due August 1, 2019 | |||
Debt Instrument [Line Items] | |||
Total principal amount | 800 | ||
Unsecured Debt | Senior Term Loan A-3 due August 1, 2019 | |||
Debt Instrument [Line Items] | |||
Total principal amount | 200 | ||
Unsecured Debt | Senior Term Loan A-5 due August 1, 2021 | |||
Debt Instrument [Line Items] | |||
Total principal amount | $ 1,800 | ||
Convertible Debt | 2.5% Convertible Senior Notes due April 1, 2021 | |||
Debt Instrument [Line Items] | |||
Stated interest rate (as a percent) | 2.50% | ||
Total principal amount | $ 500 | $ 500 | |
Effective interest rate (as a percent) | 3.76% | 3.76% | |
Convertible Debt | 2.0% Convertible Unsecured Notes due August 15, 2021 | |||
Debt Instrument [Line Items] | |||
Stated interest rate (as a percent) | 2.00% | ||
Total principal amount | $ 1,250 | ||
Effective interest rate (as a percent) | 2.66% | ||
[1] | Derived from audited financial statements. |
Debt (Maturities of Long-term D
Debt (Maturities of Long-term Debt) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Apr. 01, 2016 |
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
Remainder of 2017 | $ 0 | |
2,018 | 600 | |
2,019 | 0 | |
2,020 | 2,000 | |
2,021 | 1,250 | |
Thereafter | 3,450 | |
Total | $ 7,300 | $ 2,250 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) | Aug. 01, 2016 | Jul. 18, 2016 | May 10, 2016 | Sep. 30, 2016 | Apr. 01, 2011 |
Unsecured Debt | Term Facility Due May 10, 2019 | |||||
Debt Instrument [Line Items] | |||||
Term (in years) | 3 years | ||||
Aggregate amount | $ 1,000,000,000 | ||||
Unsecured Debt | $800 Million, Three Year Term Loan | Blue Coat, Inc. | |||||
Debt Instrument [Line Items] | |||||
Term (in years) | 3 years | ||||
Aggregate amount | $ 800,000,000 | ||||
Unsecured Debt | Term Loan | Blue Coat, Inc. | |||||
Debt Instrument [Line Items] | |||||
Aggregate amount | $ 2,000,000,000 | ||||
Issuance costs | $ 52,000,000 | ||||
Unsecured Debt | $1.8 Billion, Five Year Term Loan | Blue Coat, Inc. | |||||
Debt Instrument [Line Items] | |||||
Term (in years) | 5 years | ||||
Aggregate amount | $ 1,800,000,000 | ||||
Unsecured Debt | $200 Million, Three Year Term Loan | Blue Coat, Inc. | |||||
Debt Instrument [Line Items] | |||||
Term (in years) | 3 years | ||||
Aggregate amount | $ 200,000,000 | ||||
Convertible Debt | 2.0% Convertible Unsecured Notes due August 15, 2021 | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate (as a percent) | 2.00% | ||||
Conversion price (in usd per share) | $ 20.41 | ||||
Convertible Debt | 2.0% Convertible Unsecured Notes due August 15, 2021 | Blue Coat, Inc. | |||||
Debt Instrument [Line Items] | |||||
Aggregate amount | $ 1,250,000,000 | ||||
Stated interest rate (as a percent) | 2.00% | ||||
Conversion ratio | 0.0489860 | ||||
Conversion price (in usd per share) | $ 20.41 | ||||
Threshold percentage of common stock ownership, termination of rights to board representation (less than) | 4.00% | ||||
Convertible Debt | 2.0% Convertible Unsecured Notes due August 15, 2021 | Blue Coat, Inc. | Level 3 | |||||
Debt Instrument [Line Items] | |||||
Fair value of convertible debt | $ 39,000,000 | ||||
Convertible Debt | $750 Million, 2.0%, Convertible Unsecured Notes Due 2021 | Blue Coat, Inc. | |||||
Debt Instrument [Line Items] | |||||
Aggregate amount | $ 750,000,000 | ||||
Convertible Debt | $500 Million, 2.0%, Convertible Unsecured Notes Due 2021 | Blue Coat, Inc. | |||||
Debt Instrument [Line Items] | |||||
Aggregate amount | $ 500,000,000 | ||||
Line of Credit | Revolving Credit Facility | Senior Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity under revolving loans | $ 1,000,000,000 | ||||
Line of Credit | Revolving Credit Facility | Revolving Facility Due May 10, 2021 | |||||
Debt Instrument [Line Items] | |||||
Term (in years) | 5 years | ||||
Maximum borrowing capacity under revolving loans | $ 1,000,000,000 | ||||
Borrowings outstanding | $ 0 |
Discontinued Operations (Narrat
Discontinued Operations (Narrative) (Details) - Information Management - Discontinued Operations, Disposed of by Sale - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2016 | Jul. 01, 2016 | Oct. 02, 2015 | Sep. 30, 2016 | Oct. 02, 2015 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Purchase price adjustment | $ 0 | $ 38 | $ 0 | $ 38 | $ 0 |
Deferred Revenue, Current | Customer Relationships and Customer Contracts | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Intangible assets, current | 157 | 157 | |||
Deferred Revenue, Current | Service and Maintenance Rights | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Intangible assets, current | 65 | 65 | |||
Other Income (Expense), Net | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Income from discontinued operation after disposal | $ 8 | $ 17 |
Discontinued Operations (Income
Discontinued Operations (Income (Loss) From Discontinued Operations) (Details) - Information Management - Discontinued Operations, Disposed of by Sale - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2016 | Jul. 01, 2016 | Oct. 02, 2015 | Sep. 30, 2016 | Oct. 02, 2015 | |
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||||
Net revenues | $ 51 | $ 592 | $ 123 | $ 1,179 | |
Cost of revenues | (6) | (104) | (9) | (200) | |
Operating expenses | 0 | (385) | (24) | (758) | |
Gain on sale of Veritas | 0 | $ 38 | 0 | 38 | 0 |
Other expense, net | (2) | (1) | 0 | (6) | |
Income from discontinued operations before income tax | 43 | 102 | 128 | 215 | |
Income taxes expense (benefit) | 118 | (1) | 134 | 20 | |
Income (loss) from discontinued operations, net of income taxes | $ (75) | $ 103 | $ (6) | $ 195 |
Restructuring, Separation, Tr48
Restructuring, Separation, Transition and Other Costs (Schedule of the Restructuring, Separation and Transition Expense Summary) (Details) | 3 Months Ended | 6 Months Ended |
Sep. 30, 2016USD ($) | Sep. 30, 2016USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | $ 99,000,000 | |
Total restructuring, separation, transition, and other | $ 65,000,000 | 144,000,000 |
Continuing Operations | ||
Restructuring Cost and Reserve [Line Items] | ||
Transition and other related costs | 25,000,000 | 45,000,000 |
Total restructuring, separation, transition, and other | 64,000,000 | 134,000,000 |
Discontinued Operations | ||
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring, separation, transition, and other | 1,000,000 | 10,000,000 |
Fiscal 2017 Plan | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected noncash expenses | 50,000,000 | 50,000,000 |
Restructuring costs | 87,000,000 | |
Fiscal 2017 Plan | Continuing Operations | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 39,000,000 | 87,000,000 |
Fiscal 2017 Plan | Severance and termination benefits | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 38,000,000 | |
Fiscal 2017 Plan | Severance and termination benefits | Continuing Operations | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 14,000,000 | 38,000,000 |
Fiscal 2017 Plan | Other exit and disposal costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 35,000,000 | |
Fiscal 2017 Plan | Other exit and disposal costs | Continuing Operations | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 20,000,000 | 35,000,000 |
Fiscal 2017 Plan | Asset write-offs | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 14,000,000 | |
Fiscal 2017 Plan | Asset write-offs | Continuing Operations | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 5,000,000 | 14,000,000 |
Fiscal 2015 Plan | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 12,000,000 | |
Fiscal 2015 Plan | Continuing Operations | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 0 | 2,000,000 |
Minimum | Fiscal 2017 Plan | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected cost | 230,000,000 | 230,000,000 |
Minimum | Fiscal 2017 Plan | Severance and termination benefits | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected cost | 90,000,000 | 90,000,000 |
Minimum | Fiscal 2017 Plan | Contract termination and relocation costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected cost | 45,000,000 | 45,000,000 |
Maximum | Fiscal 2017 Plan | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected cost | 280,000,000 | 280,000,000 |
Maximum | Fiscal 2017 Plan | Severance and termination benefits | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected cost | 100,000,000 | 100,000,000 |
Maximum | Fiscal 2017 Plan | Contract termination and relocation costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected cost | $ 60,000,000 | $ 60,000,000 |
Restructuring, Separation, Tr49
Restructuring, Separation, Transition and Other Costs (Schedule of the Restructuring and Separation Liabilities Summary) (Details) - USD ($) $ in Millions | 6 Months Ended |
Sep. 30, 2016 | |
Restructuring Reserve [Roll Forward] | |
Balance as of April 1, 2016 | $ 33 |
Costs, Net of Adjustments | 99 |
Cash Payments | (84) |
Non-Cash Charges | (14) |
Balance as of September 30, 2016 | 34 |
Fiscal 2015 Plan | |
Restructuring Reserve [Roll Forward] | |
Balance as of April 1, 2016 | 29 |
Costs, Net of Adjustments | 12 |
Cash Payments | (32) |
Non-Cash Charges | 0 |
Balance as of September 30, 2016 | 9 |
Cumulative Incurred to Date | 468 |
Fiscal 2017 Plan | |
Restructuring Reserve [Roll Forward] | |
Balance as of April 1, 2016 | 4 |
Costs, Net of Adjustments | 87 |
Cash Payments | (52) |
Non-Cash Charges | (14) |
Balance as of September 30, 2016 | 25 |
Cumulative Incurred to Date | 91 |
Fiscal 2017 Plan | Severance costs | |
Restructuring Reserve [Roll Forward] | |
Balance as of April 1, 2016 | 0 |
Costs, Net of Adjustments | 38 |
Cash Payments | (31) |
Non-Cash Charges | 0 |
Balance as of September 30, 2016 | 7 |
Cumulative Incurred to Date | 38 |
Fiscal 2017 Plan | Other exit and disposal costs | |
Restructuring Reserve [Roll Forward] | |
Balance as of April 1, 2016 | 4 |
Costs, Net of Adjustments | 35 |
Cash Payments | (21) |
Non-Cash Charges | 0 |
Balance as of September 30, 2016 | 18 |
Cumulative Incurred to Date | 39 |
Fiscal 2017 Plan | Asset write-offs | |
Restructuring Reserve [Roll Forward] | |
Balance as of April 1, 2016 | 0 |
Costs, Net of Adjustments | 14 |
Cash Payments | 0 |
Non-Cash Charges | (14) |
Balance as of September 30, 2016 | 0 |
Cumulative Incurred to Date | $ 14 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Aug. 04, 2015USD ($)patent | Aug. 28, 2013patent | Sep. 30, 2016USD ($) | Oct. 02, 2015USD ($) | Sep. 30, 2016USD ($) | Oct. 02, 2015USD ($) | Sep. 30, 2012USD ($) | Aug. 31, 2015USD ($) | Jan. 31, 2014USD ($) |
Loss Contingencies [Line Items] | |||||||||
Net revenues | $ 979 | $ 906 | $ 1,863 | $ 1,818 | |||||
GSA Schedule Contract | |||||||||
Loss Contingencies [Line Items] | |||||||||
Net revenues | $ 222 | ||||||||
GSA initial analysis of damage exposure | $ 145 | ||||||||
GSA Schedule Contract | Minimum | |||||||||
Loss Contingencies [Line Items] | |||||||||
Current estimate of the low end of the range of estimated loss | 25 | 25 | |||||||
Class Action Lawsuit vs. Symantec, Extended Download Services and Norton Download Insurance | |||||||||
Loss Contingencies [Line Items] | |||||||||
Accrual for settlement | $ 30 | ||||||||
Finjan, Inc vs. Blue Coat Systems, Inc. | Pending Litigation | |||||||||
Loss Contingencies [Line Items] | |||||||||
Number of patents allegedly infringed | patent | 6 | ||||||||
Finjan, Inc vs. Blue Coat Systems, Inc. | Judicial Ruling | |||||||||
Loss Contingencies [Line Items] | |||||||||
Current estimate of the low end of the range of estimated loss | $ 40 | $ 40 | |||||||
Number of patents found infringed | patent | 5 | ||||||||
Damages awarded | $ 40 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2016USD ($) | Oct. 02, 2015USD ($) | Sep. 30, 2016USD ($)segment | Oct. 02, 2015USD ($) | |
Segment Reporting [Abstract] | ||||
Number of reportable segments | segment | 2 | |||
Segment Reporting Information [Line Items] | ||||
Net revenues | $ 979,000,000 | $ 906,000,000 | $ 1,863,000,000 | $ 1,818,000,000 |
Operating income | (12,000,000) | 100,000,000 | 94,000,000 | 183,000,000 |
Intersegment Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 0 | 0 | 0 | 0 |
Corporate, Non-Segment | ||||
Segment Reporting Information [Line Items] | ||||
Operating income | $ 0 | $ 87,000,000 | $ 0 | $ 186,000,000 |
Segment Information (Schedule o
Segment Information (Schedule of Reportable Segment Data) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2016 | Oct. 02, 2015 | Sep. 30, 2016 | Oct. 02, 2015 | |
Segment Reporting Information [Line Items] | ||||
Net revenues | $ 979 | $ 906 | $ 1,863 | $ 1,818 |
Operating income | (12) | 100 | 94 | 183 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 979 | 906 | 1,863 | 1,818 |
Operating income | 249 | 283 | 502 | 558 |
Operating Segments | Consumer Security | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 405 | 420 | 808 | 850 |
Operating income | 224 | 232 | 449 | 477 |
Operating Segments | Enterprise Security | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 574 | 486 | 1,055 | 968 |
Operating income | $ 25 | $ 51 | $ 53 | $ 81 |
Segment Information (Reconcilia
Segment Information (Reconciliation of Total Segment Operating Income to Total Consolidated Operating Income) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2016 | Oct. 02, 2015 | Sep. 30, 2016 | Oct. 02, 2015 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating income (loss) | $ (12,000,000) | $ 100,000,000 | $ 94,000,000 | $ 183,000,000 |
Stock-based compensation | 85,000,000 | 45,000,000 | 134,000,000 | 80,000,000 |
Restructuring, separation, transition, and other | 65,000,000 | 144,000,000 | ||
Operating Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating income (loss) | 249,000,000 | 283,000,000 | 502,000,000 | 558,000,000 |
Unallocated Corporate Charges | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating income (loss) | 0 | 87,000,000 | 0 | 186,000,000 |
Segment Reconciling Items | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Stock-based compensation | 85,000,000 | 45,000,000 | 134,000,000 | 80,000,000 |
Amortization of intangible assets | 69,000,000 | 20,000,000 | 89,000,000 | 43,000,000 |
Restructuring, separation, transition, and other | 64,000,000 | 31,000,000 | 134,000,000 | 66,000,000 |
Acquisition and integration costs | $ 43,000,000 | $ 0 | $ 51,000,000 | $ 0 |
Stockholders' Equity (Summary o
Stockholders' Equity (Summary of Dividends Declared and Paid) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2016 | Oct. 02, 2015 | Sep. 30, 2016 | Oct. 02, 2015 | |
Equity [Abstract] | ||||
Dividends declared and paid | $ 47 | $ 102 | $ 93 | $ 205 |
Dividend equivalents paid | 5 | 1 | 27 | 5 |
Total dividends and dividend equivalents paid | $ 52 | $ 103 | $ 120 | $ 210 |
Cash dividends declared per common share (in usd per share) | $ 0.075 | $ 0.15 | $ 0.15 | $ 0.3 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - $ / shares | Nov. 03, 2016 | Sep. 30, 2016 | Oct. 02, 2015 | Sep. 30, 2016 | Oct. 02, 2015 |
Class of Stock [Line Items] | |||||
Dividends declared per common share (in usd per share) | $ 0.075 | $ 0.15 | $ 0.15 | $ 0.3 | |
Subsequent Event | Common Stock | |||||
Class of Stock [Line Items] | |||||
Dividends payable, date declared | Nov. 3, 2016 | ||||
Dividends declared per common share (in usd per share) | $ 0.075 | ||||
Dividends payable, date to be paid | Dec. 14, 2016 | ||||
Dividends payable, date of record | Nov. 21, 2016 |
Stockholders' Equity (Schedule
Stockholders' Equity (Schedule of Accumulated Other Comprehensive Income (Loss)) (Details) $ in Millions | 6 Months Ended | |
Sep. 30, 2016USD ($) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
April 1, 2016 | $ 3,676 | [1] |
September 30, 2016 | 3,862 | |
Foreign Currency Translation Adjustments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
April 1, 2016 | 15 | |
Other comprehensive loss before reclassifications | (22) | |
September 30, 2016 | (7) | |
Unrealized Gain on Available-For-Sale Securities | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
April 1, 2016 | 7 | |
Other comprehensive loss before reclassifications | (1) | |
September 30, 2016 | 6 | |
Total | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
April 1, 2016 | 22 | |
Other comprehensive loss before reclassifications | (23) | |
September 30, 2016 | $ (1) | |
[1] | Derived from audited financial statements. |
Stock-Based Compensation (Sched
Stock-Based Compensation (Schedule of Stock-Based Compensation Expense Recognized in our Condensed Consolidated Statements of Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2016 | Oct. 02, 2015 | Sep. 30, 2016 | Oct. 02, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | $ 85 | $ 45 | $ 134 | $ 80 |
Tax benefit associated with stock-based compensation expense | (25) | (13) | (40) | (23) |
Net stock-based compensation expense | 60 | 56 | 94 | 94 |
Continuing Operations | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Net stock-based compensation expense | 60 | 32 | 94 | 57 |
Discontinued Operations | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Net stock-based compensation expense | 0 | 24 | 0 | 37 |
Cost of revenues | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 5 | 2 | 8 | 4 |
Sales and marketing | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 24 | 16 | 38 | 27 |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 24 | 16 | 39 | 28 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | $ 32 | $ 11 | $ 49 | $ 21 |
Stock-Based Compensation (Sch58
Stock-Based Compensation (Schedule of Restricted Stock Units) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 6 Months Ended | |
Sep. 30, 2016 | Oct. 02, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total intrinsic value of stock options exercised | $ 50 | $ 2 |
Total unrecognized compensation expense | $ 134 | $ 0 |
Stock options, weighted-average remaining vesting period (in years) | 1 year 9 months 18 days | |
Restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted-average fair value per grant (in usd per share) | $ 18.59 | $ 23.53 |
Awards granted and assumed in acquisition (in shares) | 13.8 | 12.8 |
Total fair value of awards vested | $ 94 | $ 140 |
Total unrecognized compensation expense | $ 301 | $ 462 |
Weighted-average remaining vesting period (in years) | 2 years 1 month 6 days | 2 years 3 months 18 days |
Performance-based restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted-average fair value per grant (in usd per share) | $ 19.84 | $ 27.03 |
Awards granted and assumed in acquisition (in shares) | 4.9 | 0.9 |
Total fair value of awards vested | $ 13 | $ 5 |
Total unrecognized compensation expense | $ 68 | $ 24 |
Weighted-average remaining vesting period (in years) | 1 year 4 months 24 days | 1 year 9 months 18 days |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) shares in Millions, $ in Millions | Aug. 01, 2016USD ($)planshares | Sep. 30, 2016USD ($)shares | Oct. 02, 2015USD ($)shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total unrecognized compensation expense | $ | $ 134 | $ 0 | |
Blue Coat, Inc. | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of equity incentive plans assumed | plan | 2 | ||
Blue Coat, Inc. | CEO | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Assumed awards, fair value | $ | $ 46 | ||
Options granted (in shares) | 3.9 | ||
Options granted, fair value | $ | $ 53 | ||
Total unrecognized compensation expense | $ | $ 50 | ||
Stock Options, Vested | Blue Coat, Inc. | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Assumed awards (in shares) | 7.5 | ||
Stock Options, Unvested | Blue Coat, Inc. | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Assumed awards (in shares) | 12.5 | ||
Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards granted and assumed in acquisition (in shares) | 13.8 | 12.8 | |
Restricted stock units | Blue Coat, Inc. | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Assumed awards (in shares) | 4.8 | ||
Restricted stock units | Blue Coat, Inc. | CEO | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards granted and assumed in acquisition (in shares) | 1.3 | ||
Vesting period (in years) | 3 years | ||
Performance-based restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards granted and assumed in acquisition (in shares) | 4.9 | 0.9 | |
Performance-based restricted stock units | Blue Coat, Inc. | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Assumed awards (in shares) | 3 | ||
Performance-based restricted stock units | Blue Coat, Inc. | CEO | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards granted and assumed in acquisition (in shares) | 1 | ||
Vesting period (in years) | 2 years |
Income Taxes (Schedule of Effec
Income Taxes (Schedule of Effective Tax Rate) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2016 | Oct. 02, 2015 | Sep. 30, 2016 | Oct. 02, 2015 | |
Income Tax Disclosure [Abstract] | ||||
Income (loss) before income taxes | $ (50) | $ 87 | $ 47 | $ 147 |
Provision for income taxes | $ 19 | $ 34 | $ 50 | $ 69 |
Effective tax rate (as a percent) | (38.00%) | 39.00% | 106.00% | 47.00% |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2016 | Oct. 02, 2015 | Sep. 30, 2016 | Oct. 02, 2015 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Increase in tax provision related to loss of tax attributes as a result of restructuring activities | $ 52 | |||
Tax benefits resulting from settlements | (1) | $ (9) | ||
Reduction in provision related to certain foreign operations | $ 8 | $ 8 | ||
Decrease in unrecognized tax benefits is reasonably possible | 7 | 7 | ||
Information Management | Discontinued Operations, Held-for-sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income taxes expense (benefit) | $ 118 | $ (1) | $ 134 | $ 20 |
Net Income (Loss) Per Share (Sc
Net Income (Loss) Per Share (Schedule of Components of Net Income Per Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2016 | Oct. 02, 2015 | Sep. 30, 2016 | Oct. 02, 2015 | |
Earnings Per Share [Abstract] | ||||
Income (loss) from continuing operations | $ (69) | $ 53 | $ (3) | $ 78 |
Income (loss) from discontinued operations, net of tax | (75) | 103 | (6) | 195 |
Net income (loss) | $ (144) | $ 156 | $ (9) | $ 273 |
Income (loss) per share - basic: | ||||
Continuing operations (in usd per share) | $ (0.11) | $ 0.08 | $ 0 | $ 0.11 |
Discontinued operations (in usd per share) | (0.12) | 0.15 | (0.01) | 0.29 |
Net income (loss) per share — basic (in usd per share) | (0.23) | 0.23 | (0.01) | 0.40 |
Income (loss) per share - diluted: | ||||
Continuing operations (in usd per share) | (0.11) | 0.08 | 0 | 0.11 |
Discontinued operations (in usd per share) | (0.12) | 0.15 | (0.01) | 0.28 |
Net income (loss) per share — diluted (in usd per share) | $ (0.23) | $ 0.23 | $ (0.01) | $ 0.40 |
Weighted-average shares outstanding — basic (in shares) | 620 | 682 | 617 | 682 |
Dilutive potential shares (in shares) | 0 | 5 | 0 | 7 |
Weighted-average shares outstanding - diluted (in shares) | 620 | 687 | 617 | 689 |
Anti-dilutive potential shares (in shares) | 139 | 11 |
Net Income (Loss) Per Share (Na
Net Income (Loss) Per Share (Narrative) (Details) - Convertible Debt | Sep. 30, 2016$ / shares |
2.5% Convertible Senior Notes due April 1, 2021 | |
Debt Instrument [Line Items] | |
Conversion price (in usd per share) | $ 16.77 |
Stated interest rate (as a percent) | 2.50% |
2.0% Convertible Unsecured Notes due August 15, 2021 | |
Debt Instrument [Line Items] | |
Conversion price (in usd per share) | $ 20.41 |
Stated interest rate (as a percent) | 2.00% |
Net Income (Loss) Per Share (64
Net Income (Loss) Per Share (Schedule of Antidilutive Securities Excluded from Diluted Net Income (Loss) Per Share) (Details) - shares shares in Millions | 6 Months Ended | |
Sep. 30, 2016 | Oct. 02, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive potential shares (in shares) | 139 | 11 |
Convertible shares | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive potential shares (in shares) | 91 | 0 |
Stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive potential shares (in shares) | 19 | 0 |
Restricted stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive potential shares (in shares) | 29 | 11 |