Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jun. 29, 2018 | Nov. 05, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 29, 2018 | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | SYMANTEC CORP | |
Entity Central Index Key | 849,399 | |
Current Fiscal Year End Date | --03-29 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 638,888,439 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Jun. 29, 2018 | Mar. 30, 2018 | [1] |
Current assets: | |||
Cash and cash equivalents | $ 2,001 | $ 1,774 | |
Short-term investments | 324 | 388 | |
Accounts receivable, net | 502 | 809 | |
Other current assets | 501 | 522 | |
Total current assets | 3,328 | 3,493 | |
Property and equipment, net | 758 | 778 | |
Intangible assets, net | 2,532 | 2,643 | |
Goodwill | 8,322 | 8,319 | |
Other long-term assets | 1,308 | 526 | |
Total assets | 16,248 | 15,759 | |
Current liabilities: | |||
Accounts payable | 170 | 168 | |
Accrued compensation and benefits | 165 | 262 | |
Contract liabilities | 2,137 | 2,368 | |
Other current liabilities | 403 | 372 | |
Total current liabilities | 2,875 | 3,170 | |
Long-term debt | 5,032 | 5,026 | |
Long-term contract liabilities | 630 | 735 | |
Deferred income tax liabilities | 598 | 592 | |
Long-term income taxes payable | 1,112 | 1,126 | |
Other long-term liabilities | 83 | 87 | |
Total liabilities | 10,330 | 10,736 | |
Commitments and contingencies (Note 15) | |||
Stockholders’ equity: | |||
Preferred stock, $0.01 par value: 1 shares authorized; 0 shares issued and outstanding | 0 | 0 | |
Common stock and additional paid-in capital, $0.01 par value: 3,000 shares authorized; 631 and 624 shares issued and outstanding as of June 29, 2018 and March 30, 2018, respectively | 4,780 | 4,691 | |
Accumulated other comprehensive income (loss) | (20) | 4 | |
Retained earnings | 1,158 | 328 | |
Total stockholders’ equity | 5,918 | 5,023 | |
Total liabilities and stockholders’ equity | $ 16,248 | $ 15,759 | |
[1] | Derived from audited financial statements. |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Jun. 29, 2018 | Mar. 30, 2018 |
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) | 0 | 0 |
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) | 631,000,000 | 624,000,000 |
Common stock, number of shares outstanding (in shares) | 631,000,000 | 624,000,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | ||
Jun. 29, 2018 | Jun. 30, 2017 | ||
Income Statement [Abstract] | |||
Net revenues | $ 1,156 | $ 1,175 | |
Cost of revenues | 249 | 257 | |
Gross profit | 907 | 918 | |
Operating expenses: | |||
Sales and marketing | 386 | 433 | |
Research and development | 237 | 233 | |
General and administrative | 133 | 149 | |
Amortization of intangible assets | 53 | 59 | |
Restructuring, transition and other costs | 96 | 88 | |
Total operating expenses | 905 | 962 | |
Operating income (loss) | 2 | (44) | |
Interest expense | (52) | (84) | |
Other expense, net | (19) | (6) | |
Loss from continuing operations before income taxes | (69) | (134) | |
Income tax benefit | (4) | (24) | |
Loss from continuing operations | (65) | (110) | |
Income (loss) from discontinued operations, net of income taxes | 5 | (23) | |
Net loss | $ (60) | $ (133) | |
Income (loss) per share - basic and diluted: | |||
Continuing operations (in dollars per share) | $ (0.10) | $ (0.18) | |
Discontinued operations (in dollars per share) | 0.01 | (0.04) | |
Net loss per share - basic and diluted (in dollars per share) | [1] | $ (0.10) | $ (0.22) |
Weighted-average shares outstanding - basic and diluted | |||
Weighted-average shares outstanding - basic and diluted (in shares) | 624 | 609 | |
Cash dividends declared per common share (in dollars per share) | $ 0.075 | $ 0.075 | |
[1] | Net loss per share amounts may not add due to rounding. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 29, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (60) | $ (133) |
Other comprehensive loss, net of taxes: | ||
Foreign currency translation adjustments | (24) | (2) |
Comprehensive loss | $ (84) | $ (135) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 29, 2018 | Jun. 30, 2017 | ||
OPERATING ACTIVITIES: | |||
Net loss | $ (60) | $ (133) | |
(Income) loss from discontinued operations, net of income taxes | (5) | 23 | |
Adjustments: | |||
Amortization and depreciation | 152 | 165 | |
Impairments of long-lived assets | 4 | 14 | |
Stock-based compensation expense | 113 | 147 | |
Deferred income taxes | (42) | (62) | |
Other | (21) | 26 | |
Changes in operating assets and liabilities, net of acquisitions: | |||
Accounts receivable, net | 321 | 188 | |
Accounts payable | 19 | (32) | |
Accrued compensation and benefits | (77) | (68) | |
Contract liabilities | (106) | (21) | |
Income taxes payable | (1) | 2 | |
Other assets | (5) | 41 | |
Other liabilities | 39 | (39) | |
Net cash provided by continuing operating activities | 331 | 251 | |
Net cash used in discontinued operating activities | 0 | (38) | |
Net cash provided by operating activities | 331 | 213 | |
INVESTING ACTIVITIES: | |||
Additions to property and equipment | (44) | (47) | |
Payments for acquisitions, net of cash acquired | (5) | (8) | |
Proceeds from maturities and sales of short-term investments | 64 | 0 | |
Other | (5) | 1 | |
Net cash provided by (used in) investing activities | 10 | (54) | |
FINANCING ACTIVITIES: | |||
Repayments of debt | 0 | (2,010) | |
Net proceeds from sales of common stock under employee stock incentive plans | 4 | 11 | |
Tax payments related to restricted stock units | (42) | (61) | |
Dividends and dividend equivalents paid | (60) | (66) | |
Net cash used in financing activities | (98) | (2,126) | |
Effect of exchange rate fluctuations on cash and cash equivalents | (16) | 26 | |
Change in cash and cash equivalents | 227 | (1,941) | |
Beginning cash and cash equivalents | 1,774 | [1] | 4,247 |
Ending cash and cash equivalents | $ 2,001 | $ 2,306 | |
[1] | Derived from audited financial statements. |
Description of Business and Sig
Description of Business and Significant Accounting Policies | 3 Months Ended |
Jun. 29, 2018 | |
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,” the “Company,” “we,” “us,” and “our” refer to Symantec Corporation and all of its subsidiaries) is a global leader in cybersecurity. We provide security products, services and solutions to organizations and individuals. Our Integrated Cyber Defense Platform helps enterprise, business and government customers unify cloud and on-premises security to protect against threats and safeguard information across every control point and attack vector. Our Cyber Safety Solutions (delivered through our Norton and LifeLock offerings) help consumers protect their information, identities, devices and networks at home and online. 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 March 30, 2018 . The results of operations for the three months ended June 29, 2018 , are not necessarily indicative of the results expected for the entire fiscal year. We have a 52/53-week fiscal year ending on the Friday closest to March 31. Unless otherwise stated, references to three -month periods in this report relate to fiscal periods ended June 29, 2018 and June 30, 2017 , each consisting of 13 weeks. Our 2019 fiscal year consists of 52 weeks and ends on March 29, 2019 . Use of estimates The preparation of Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported and disclosed in the financial statements and accompanying notes. Such estimates include, but are not limited to, the determination of revenue recognition, valuation of goodwill, intangible assets and long-lived assets, income taxes, valuation of stock-based awards and recognition of stock-based compensation expense, and loss contingencies. Management determines these estimates and assumptions based on historical experience and on various other assumptions that are believed to be reasonable. Actual results could differ significantly from these estimates, and such differences may be material to the Condensed Consolidated Financial Statements. Significant accounting policies There have been no material changes to our significant accounting policies as of and for the three months ended June 29, 2018 , except for those noted in Note 2 and Note 3 , as compared to the significant accounting policies described in our Annual Report on Form 10-K for the fiscal year ended March 30, 2018 . |
Recent Accounting Standards
Recent Accounting Standards | 3 Months Ended |
Jun. 29, 2018 | |
Accounting Policies [Abstract] | |
Recent Accounting Standards | Recent Accounting Standards Recently adopted authoritative guidance Revenue Recognition - Contracts with Customers. In May 2014, the Financial Accounting Standards Board ("FASB") issued new authoritative guidance for revenue from contracts with customers. The standard’s core principle is that a company recognizes revenue when it transfers promised goods or services to customers in an amount that reflects the consideration that the company expects to receive in exchange for those goods or services. In addition, companies are required to capitalize certain contract acquisition costs, including commissions paid, when contracts are signed. The asset recognized from capitalized incremental and recoverable acquisition costs is amortized on a straight-line basis consistent with the timing of transfer of the products or services to which the asset relates. On March 31, 2018, the first day of our fiscal 2019, we adopted the new guidance on a modified retrospective basis, applying the practical expedient to all uncompleted contracts as of March 31, 2018, and as a result, results for reporting periods beginning in the first quarter of our fiscal 2019 are presented under the new revenue recognition guidance, while prior period amounts are not adjusted and continue to be reported under the prior revenue recognition guidance. During the three months ended June 29, 2018, as a result of the adoption of the new revenue recognition guidance, our net revenue increased $5 million and operating expenses decreased $9 million . The effects of the adoption of the new revenue recognition guidance on our June 29, 2018 Condensed Consolidated Balance Sheets were as follows: As of June 29, 2018 (In millions) As Reported Balances Without Adoption of New Standard Effect of Change Accounts receivable, net $ 502 $ 459 $ 43 Other current assets (1) $ 501 $ 490 $ 11 Other long-term assets (2) $ 1,308 $ 1,260 $ 48 Total assets $ 16,248 $ 16,146 $ 102 Short-term contract liabilities $ 2,137 $ 2,242 $ (105 ) Other current liabilities $ 403 $ 377 $ 26 Long-term contract liabilities $ 630 $ 708 $ (78 ) Deferred income tax liabilities $ 598 $ 551 $ 47 Total liabilities $ 10,330 $ 10,440 $ (110 ) Accumulated other comprehensive loss $ (20 ) $ (16 ) $ (4 ) Retained earnings $ 1,158 $ 942 $ 216 Total stockholders’ equity $ 5,918 $ 5,706 $ 212 (1) As reported includes short-term deferred commissions of $87 million . The balance without adoption of new standard includes short-term deferred commissions of $80 million . (2) As reported includes long-term deferred commissions of $88 million . The balance without adoption of new standard includes long-term deferred commissions of $39 million . The adoption of the new revenue recognition guidance had no impact on our Condensed Consolidated Statements of Cash Flows. Financial Instruments - Recognition and Measurement. 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. We adopted this new guidance in the first quarter of fiscal 2019. Substantially all of our equity investments that were not accounted for under the equity method were previously accounted for under the cost method and are now accounted for using the measurement alternative defined as cost, less impairments, adjusted for observable price changes. Based on the composition of our investment portfolio, the adoption of this guidance did not have a material impact on our Consolidated Financial Statements. Income Taxes - Intra-Entity Asset Transfers Other Than Inventory. In October 2016, the FASB issued new authoritative guidance that requires entities to immediately recognize the tax consequences of intercompany asset transfers, excluding inventory, at the transaction date, rather than deferring the tax consequences under legacy GAAP. We adopted this new guidance in the first quarter of fiscal 2019 using a modified retrospective transition method. The adoption resulted in a cumulative-effect adjustment of a $742 million increase to retained earnings. This cumulative-effect adjustment primarily consisted of additional deferred tax assets related to an intra-entity sale of intangible assets in periods prior to adoption, partially offset by the write-off of income tax consequences deferred from pre-adoption intra-entity transfers and other liabilities for amounts not recognized under legacy GAAP. Opening Balance Sheet Adjustments The following summarizes the effect of adopting the above new accounting standards: (in millions) Balance as of March 30, 2018 Revenue Recognition Guidance Accounting for Income Taxes Guidance Opening Balance as of March 31, 2018 Accounts receivable, net $ 809 $ 24 $ — $ 833 Other current assets (1) $ 522 $ (8 ) $ (8 ) $ 506 Other long-term assets (2) $ 526 $ 57 $ 750 $ 1,333 Total assets $ 15,759 $ 73 $ 742 $ 16,574 Short-term contract liabilities $ 2,368 $ (107 ) $ — $ 2,261 Other current liabilities $ 372 $ (2 ) $ — $ 370 Long-term contract liabilities $ 735 $ (62 ) $ — $ 673 Deferred income tax liabilities $ 592 $ 47 $ — $ 639 Total liabilities $ 10,736 $ (124 ) $ — $ 10,612 Stockholders’ equity: Retained earnings $ 328 $ 197 $ 742 $ 1,267 (1) The balance as of March 30, 2018, includes income tax receivable and prepaid income taxes of $107 million and short-term deferred commissions of $94 million . The opening balance as of March 31, 2018, includes income tax receivable and prepaid income taxes of $99 million and short-term deferred commissions of $86 million . (2) The balance as of March 30, 2018, includes long-term deferred commissions of $35 million , long-term income tax receivable and prepaid income taxes of $61 million and deferred income tax assets of $46 million . The opening balance as of March 31, 2018, includes long-term deferred commissions of $92 million , long-term income tax receivable and prepaid income taxes of $29 million and deferred income tax assets of $828 million . Recently issued authoritative guidance not yet adopted Leases. In February 2016, the FASB issued new guidance on lease accounting which will require lessees to recognize assets and liabilities on their balance sheet for the rights and obligations created by operating leases and will also require disclosures designed to give users of financial statements information on the amount, timing, and uncertainty of cash flows arising from leases. The new guidance will be effective for us in our first quarter of fiscal 2020. Early adoption is permitted but we do not plan to adopt the provisions of the new guidance early. We are currently in the assessment phase to determine the adoption methodology and are evaluating the impact of this new standard on our Consolidated Financial Statements and disclosures. We expect that most of our operating lease commitments will be subject to the new standard and recognized as lease liabilities and right-of-use assets upon adoption, which will increase the total assets and total liabilities we report. We are evaluating the impact to our Consolidated Financial Statements as it relates to other aspects of the business. Credit Losses. 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 in our first quarter of fiscal 2021. We are currently evaluating the impact of the adoption of this guidance on our Consolidated Financial Statements. Accumulated Other Comprehensive Income. In February 2018, the FASB issued new authoritative guidance that will permit entities to reclassify tax effects stranded in accumulated other comprehensive income as a result of the Tax Cuts and Jobs Act (H.R.1) (the “Act”) to retained earnings. The amendment will be effective for us in our first quarter of fiscal 2020. If we decide to adopt this amendment, we do not expect that it will have a material impact on our Consolidated Financial Statements. Although there are several other new accounting pronouncements issued or proposed by the FASB that we have adopted or will adopt, as applicable, we do not believe any of these accounting pronouncements has had, or will have, a material impact on our consolidated financial position, operating results or disclosures. |
Revenues
Revenues | 3 Months Ended |
Jun. 29, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues General We recognize revenue when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for the goods or services. Revenue is recognized net of allowances for returns, discounts, distributor incentives and end-user rebates, and any taxes collected from customers and subsequently remitted to governmental authorities. For arrangements with multiple performance obligations, which may include hardware, software licenses, cloud services, support and maintenance, and professional services, we allocate revenue to each performance obligation on a relative fair value basis based on management’s estimate of stand-alone selling price (“SSP”). Judgment is required to determine the SSP for each performance obligation. The determination of SSP is made by taking into consideration observable prices in historical transactions. When observable prices in historical transactions are not available or are inconsistent, we estimate SSP based on observable prices in historical transactions of similar products, pricing discount practices, product margins, and other factors that may vary over time depending upon the unique facts and circumstances related to each performance obligation. Enterprise Security Revenue for our Enterprise Security products is earned from arrangements that can include various combinations of software licenses, cloud services, hardware, support and maintenance, and professional services, which are sold directly to end-users or through a multi-tiered distribution channel. We generally do not offer rights of return for Enterprise Security products and the distribution channel does not hold inventory. As a result, historical returns and related reserves have been insignificant. We offer channel rebates and marketing programs for our Enterprise Security products. Our estimated reserves for channel volume incentive rebates are based on distributors’ and resellers’ performance compared to the terms and conditions of volume incentive rebate programs, which are typically entered into quarterly. We had reserves for Enterprise Security rebates and marketing programs of $5 million recorded in Other current liabilities as of June 29, 2018 , and $6 million recorded against Accounts receivable, net as of March 30, 2018 . Consumer Digital Safety We sell consumer products and services directly to end-users and consumer packaged software products through a multi-tiered distribution channel. We offer various channel and end-user rebates for our Consumer Digital Safety products. Our estimated reserves for channel volume incentive rebates are based on distributors’ and resellers’ performance compared to the terms and conditions of volume incentive rebate programs, which are typically entered into quarterly. Our reserves for end-user rebates are estimated based on the terms and conditions of the promotional program, actual sales during the promotion, the amount of redemptions received, historical redemption trends by product and by type of promotional program, and the value of the rebate. We record estimated reserves for channel and end-user rebates as an offset to revenue or contract liabilities. We had reserves for Consumer Digital Safety rebates of $11 million recorded in Other current liabilities as of June 29, 2018 and $21 million recorded against Accounts receivable, net as of March 30, 2018 . For consumer products that include content updates, rebates are recognized as a ratable offset to revenue or contract liabilities over the term of the subscription. Performance obligations At contract inception, we assess the products and services promised in the contract to identify each performance obligation and evaluate whether the performance obligations are capable of being distinct and are distinct within the context of the contract. Performance obligations that are not both capable of being distinct and distinct within the context of the contract are combined and treated as a single performance obligation in determining the allocation and recognition of revenue. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. In determining whether products and services are considered distinct performance obligations, we assess whether the customer can benefit from the products and services on their own or together with other readily available resources, and whether our promise to transfer the product or service to the customer is separately identifiable from other promises in the contract. Our typical performance obligations include the following: Performance Obligation When Performance Obligations is Typically Satisfied Products and services transferred at a point in time: License with distinct deliverables When software activation keys have been made available for download Hardware with distinct deliverables When control of the product passes to the customer; typically upon shipment Products and services transferred over time: License with interrelated deliverables Over the expected performance term, beginning on the date that software activation keys are made available to the customer Cloud hosted solutions Over the contract term, beginning on the date that service is made available to the customer Support and maintenance Ratably over the course of the service term Professional services As the services are provided Timing of revenue recognition As a result of the adoption of the new revenue recognition guidance, the timing of recognition of certain of our performance obligations has changed. For example, certain term-based licenses with distinct performance obligations have a portion of revenue recognized up front when the software activation keys have been made available for download, whereas these arrangements were previously recognized over time. In addition, allocating the transaction price for perpetual software licenses and support on a relative standalone selling price basis under the new guidance has generally resulted in more revenue allocated to the upfront license compared to the residual method of allocation under the previous guidance. Conversely, certain of our perpetual licenses are not distinct from their accompanying support and maintenance under the new guidance and are now recognized over time. The following table provides our revenue disaggregated by the timing of recognition under both the new guidance and the legacy guidance during the three months ended June 29, 2018 . (In millions) As Reported Amounts Without Adoption of New Standard Effect of Change Enterprise Security: Products and services transferred at a point in time $ 99 $ 61 $ 38 Products and services transferred over time $ 457 $ 490 $ (33 ) Consumer Digital Safety: Products and services transferred at a point in time $ 12 $ 12 $ — Products and services transferred over time $ 588 $ 588 $ — Total Products and services transferred at a point in time $ 111 $ 73 $ 38 Products and services transferred over time $ 1,045 $ 1,078 $ (33 ) Contract liabilities Contract liabilities consist of deferred revenue and customer deposit liabilities and represent cash payments received or due in advance of our performance obligations. Deferred revenue represents billings under non-cancelable contracts before the related product or service is transferred to the customer. Certain arrangements in our Consumer Digital Safety segment include terms that allow the end user to terminate the contract and receive a pro-rata refund for a period of time. In these arrangements, we have concluded there are no enforceable rights and obligations during the period in which the option to cancel is exercisable by the customer and therefore the consideration received or due from the customer is recorded as a customer deposit liability. During the three months ended June 29, 2018 , we recognized $848 million of revenue from our beginning contract liabilities balance. Contract acquisition costs Sales commissions that are incremental to obtaining a customer contract for which revenue is deferred are accrued and capitalized, and subsequently amortized to sales and marketing expense on a straight-line basis over three years, the expected period of benefit. In arriving at the average period of benefit, we evaluate both qualitative and quantitative factors which include historical customer renewal rates, anticipated renewal periods, and the estimated useful life of the underlying product sold as part of the transaction. Commissions paid on renewals of support and maintenance are not commensurate with the initial commissions paid, and therefore the amortization period of commissions for initial contracts considers the estimated term of specific anticipated renewal contracts over the life of the customer. During the three months ended June 29, 2018 , we recognized $23 million of amortization expense of capitalized contract acquisition costs. There were no impairment losses recognized during the period. Remaining performance obligations Remaining performance obligations represent contracted revenue that has not been recognized, which include contract liabilities and amounts that will be billed and recognized as revenue in future periods. As of June 29, 2018 , we had $2.8 billion of remaining performance obligations and the approximate percentages expected to be recognized as revenue in the future are as follows: Total Remaining Performance Obligations Percent Expected to be Recognized as Revenue (In millions, except percentages) 0 - 12 Months 13 - 24 Months 25 - 36 Months Over 36 Months Enterprise Security $ 1,747 65 % 23 % 10 % 2 % Consumer Digital Safety 1,053 96 % 3 % 1 % — % Total $ 2,800 77 % 15 % 7 % 1 % |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Jun. 29, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill The changes in the carrying amount of goodwill by segment are as follows: (In millions) Enterprise Security Consumer Digital Safety Total Balance as of March 30, 2018 $ 5,734 $ 2,585 $ 8,319 Acquisitions — 6 6 Translation adjustments (2 ) (1 ) (3 ) Balance as of June 29, 2018 $ 5,732 $ 2,590 $ 8,322 During the three months ended June 29, 2018 , we completed the acquisition of a business for a net cash purchase price of $5 million . Intangible assets, net June 29, 2018 March 30, 2018 (In millions) Gross Accumulated Net Gross Accumulated Net Customer relationships $ 1,462 $ (409 ) $ 1,053 $ 1,462 $ (357 ) $ 1,105 Developed technology 1,039 (419 ) 620 1,037 (361 ) 676 Finite-lived trade names and other 13 (9 ) 4 13 (8 ) 5 Total finite-lived intangible assets 2,514 (837 ) 1,677 2,512 (726 ) 1,786 Indefinite-lived trade names 852 — 852 852 — 852 In-process research and development 3 — 3 5 — 5 Total intangible assets $ 3,369 $ (837 ) $ 2,532 $ 3,369 $ (726 ) $ 2,643 Amortization expense for purchased intangible assets is summarized below: Three Months Ended Statements of Operations Classification (In millions) June 29, 2018 June 30, 2017 Customer relationships and other $ 53 $ 59 Operating expenses Developed technology 58 55 Cost of revenues Total $ 111 $ 114 As of June 29, 2018 , future amortization expense related to intangible assets that have finite lives is as follows by fiscal year: (In millions) June 29, 2018 Remainder of 2019 $ 330 2020 434 2021 323 2022 262 2023 220 Thereafter 108 Total $ 1,677 |
Supplementary Information
Supplementary Information | 3 Months Ended |
Jun. 29, 2018 | |
Supplementary Information [Abstract] | |
Supplementary Information | Supplementary Information (in millions) Cash and cash equivalents: June 29, 2018 March 30, 2018 Cash $ 472 $ 1,016 Cash equivalents 1,529 758 Total cash and cash equivalents $ 2,001 $ 1,774 Other current assets: June 29, 2018 March 30, 2018 Prepaid expenses $ 184 $ 177 Income tax receivable and prepaid income taxes 79 107 Short-term deferred commissions 87 94 Assets held for sale 26 26 Other 125 118 Total other current assets $ 501 $ 522 In October 2018, we completed the sale of certain land and buildings that were reported as assets held for sale as of June 29, 2018 and March 30, 2018 for a sales price of $26 million , net of selling costs, which was equal to their carrying value. Property and equipment, net: June 29, 2018 March 30, 2018 Land $ 65 $ 66 Computer hardware and software 1,083 1,081 Office furniture and equipment 106 110 Buildings 365 365 Leasehold improvements 328 339 Construction in progress 37 29 Total property and equipment, gross 1,984 1,990 Accumulated depreciation and amortization (1,226 ) (1,212 ) Total property and equipment, net $ 758 $ 778 Other long-term assets: June 29, 2018 March 30, 2018 Cost method investments $ 175 $ 175 Equity method investment 108 134 Long-term income tax receivable and prepaid income taxes 29 61 Deferred income tax assets 828 46 Long-term deferred commissions 88 35 Other 80 75 Total other long-term assets $ 1,308 $ 526 Short-term contract liabilities: June 29, 2018 March 30, 2018 Deferred revenue $ 1,686 $ 2,368 Customer deposit liabilities 451 — Total short-term contract liabilities $ 2,137 $ 2,368 Long-term income taxes payable: June 29, 2018 March 30, 2018 Deemed repatriation tax payable $ 820 $ 824 Uncertain tax positions (including interest and penalties) 292 302 Total long-term income taxes payable $ 1,112 $ 1,126 Other income (expense), net: Three Months Ended June 29, 2018 June 30, 2017 Interest income $ 7 $ 6 Loss from equity interest (26 ) — Foreign exchange loss (9 ) (14 ) Other 9 2 Total other expense, net $ (19 ) $ (6 ) |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 3 Months Ended |
Jun. 29, 2018 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments and Fair Value Measurements | Financial Instruments and Fair Value Measurements For financial instruments measured at fair value, fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining fair value, we consider the principal or most advantageous market in which we would transact, and we consider assumptions that market participants would use when pricing the asset or liability. The three levels of inputs that may be used to measure fair value are: • Level 1: Quoted prices in active markets for identical assets or liabilities. • Level 2: Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in less active markets or model-derived valuations. All significant inputs used in our valuations, such as discounted cash flows, are observable or can be derived principally from or corroborated with observable market data for substantially the full term of the assets or liabilities. • Level 3: Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of assets or liabilities. We monitor and review the inputs and results of these valuation models to help ensure the fair value measurements are reasonable and consistent with market experience in similar asset classes. Assets measured and recorded at fair value on a recurring basis The following table summarizes our financial instruments measured at fair value on a recurring basis: June 29, 2018 March 30, 2018 (In millions) Fair Value Level 1 Level 2 Fair Value Level 1 Level 2 Assets: Cash equivalents: Money market funds $ 1,418 $ 1,418 $ — $ 679 $ 679 $ — Certificates of deposit 111 — 111 79 — 79 Short-term investments: Corporate bonds 318 — 318 374 — 374 Commercial paper — — — 2 — 2 Certificates of deposit 6 — 6 12 — 12 Total $ 1,853 $ 1,418 $ 435 $ 1,146 $ 679 $ 467 The following table presents the contractual maturities of our investments in debt securities as of June 29, 2018 : (In millions) Fair Value Due in one year or less $ 88 Due after one year through five years 236 Total $ 324 Actual maturities may differ from the contractual maturities because borrowers may have the right to call or prepay certain obligations. Financial instruments not recorded at fair value on a recurring basis include our non-marketable equity investments, equity method investment and our long-term debt. Non-marketable equity investments Our non-marketable equity investments are investments in privately-held companies without a readily determinable fair value. Prior to March 31, 2018, we accounted for substantially all of these investments at cost less impairment and recognized realized gains or losses from sale or impairment in Other expense, net in our Condensed Consolidated Statements of Operations. Effective March 31, 2018, we adopted the new accounting guidance related to the recognition and measurement of financial instruments. As a result, starting the first quarter of fiscal 2019, we measure these investments at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer. Gains and losses on these investments, whether realized or unrealized, are recognized in Other expense, net in our Condensed Consolidated Statements of Operations. As of June 29, 2018 and March 30, 2018 , the carrying value of our non-marketable equity investments was $175 million . Equity method investment Our investment in equity securities that is accounted for using the equity method is included in Long-term other assets in our Condensed Consolidated Balance Sheets and consists of our equity investment in a privately-held company that had a carrying value of $108 million and $134 million at June 29, 2018 and March 30, 2018 , respectively. We recorded a loss from equity interests of $26 million during the three months ended June 29, 2018 , in Other expense, net in our Condensed Consolidated Statements of Operations. This loss was reflected as a reduction in the carrying amount of our investment in equity interests in our Condensed Consolidated Balance Sheets. The following table summarizes unaudited financial data from the privately-held company for the three months ended March 31, 2018, which was provided to us on a three-month lag: (In millions) Revenue $ 66 Gross profit $ 53 Net loss $ (82 ) Current and long-term debt As of June 29, 2018 and March 30, 2018 , the total fair value of our current and long-term fixed rate debt was $3.9 billion . The fair value of our variable rate debt approximated its carrying value. The fair values of all our debt obligations were based on Level 2 inputs. |
Debt
Debt | 3 Months Ended |
Jun. 29, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following table summarizes components of our long-term debt: (In millions, except percentages) June 29, 2018 March 30, 2018 Effective Senior Term Loan A-2 due August 1, 2019 $ 600 $ 600 LIBOR plus (1) 4.2% Senior Notes due September 15, 2020 750 750 4.25 % 2.5% Convertible Senior Notes due April 1, 2021 500 500 3.76 % Senior Term Loan A-5 due August 1, 2021 500 500 LIBOR plus (1) 2.0% Convertible Senior Notes due August 15, 2021 1,250 1,250 2.66 % 3.95% Senior Notes due June 15, 2022 400 400 4.05 % 5.0% Senior Notes due April 15, 2025 1,100 1,100 5.23 % Total principal amount 5,100 5,100 Less: Unamortized discount and issuance costs (68 ) (74 ) Total long-term debt $ 5,032 $ 5,026 (1) The senior term facilities bear interest at a rate equal to the London Interbank Offered Rate (“LIBOR”) plus a margin based on the current debt rating of our non-credit-enhanced, senior unsecured long-term debt and the underlying loan agreements. The interest rates for the outstanding senior term loans are as follows: June 29, 2018 March 30, 2018 Senior Term Loan A-2 due August 1, 2019 3.88 % 3.31 % Senior Term Loan A-5 due August 1, 2021 4.08 % 3.54 % As of June 29, 2018 , the future contractual maturities of debt by fiscal year are as follows: (In millions) June 29, 2018 2020 $ 600 2021 1,250 2022 1,750 2023 400 Thereafter 1,100 Total future maturities of debt $ 5,100 Based on the closing price of our common stock of $20.65 on June 29, 2018 , the if-converted values of our 2.5% and 2.0% Convertible Senior Notes exceeded the principal amount by approximately $116 million and $15 million , respectively. The following table sets forth total interest expense recognized related to our 2.5% and 2.0% Convertible Senior Notes: Three Months Ended (In millions) June 29, 2018 June 30, 2017 Contractual interest expense $ 9 $ 9 Amortization of debt discount and issuance costs $ 4 $ 4 Revolving credit facility We have an unsecured revolving credit facility to borrow up to $1.0 billion through May 10, 2021. For our current credit rating, borrowings under the credit facility are subject to the same interest rate as our Senior Term Loan A-2. We are obligated to pay commitment fees on the unused commitment at a rate based on our debt ratings. As of June 29, 2018 and March 30, 2018 , there were no borrowings outstanding under this revolving credit facility. Covenant compliance The Senior Term Loan agreements A-2, A-5 and our revolving credit facility contain customary representations and warranties, affirmative and negative covenants, including compliance with specified financial ratios, non-financial covenants for financial reporting, and restrictions on subsidiary indebtedness, liens, stock repurchases and dividends (with exceptions permitting our regular quarterly dividend). Our Convertible Senior Notes agreements and the agreement for our 5.0% Senior Note due April 15, 2025 also require us to file periodic reports with the U.S. Securities and Exchange Commission (the “SEC”) by specified deadlines. As of June 29, 2018, we had not met the requirements in the Senior Term Loan agreements A-2, A-5, the revolving credit facility agreement, the Convertible Senior Notes agreements and the agreement for our 5.0% Senior Note due April 15, 2025 to deliver audited financial statements for our fiscal year ended March 30, 2018 and file our Annual Report on Form 10-K for such period with the SEC. In addition, we subsequently did not meet the requirements under the Convertible Senior Notes agreements and the agreement for our 5.0% Senior Note due April 15, 2025 to file our quarterly report on Form 10-Q for our fiscal quarter ended June 29, 2018 with the SEC by the specified deadline. On June 22, 2018, we reached an agreement with lenders to waive the financial reporting requirements under the Senior Term Loan agreements A-2, A-5 and the revolving credit facility agreement through October 27, 2018. On October 26, 2018 we satisfied these requirements for our fiscal year ended March 30, 2018 by filing our Form 10-K for such period with the SEC. The filing of our Form 10-K and this Form 10-Q for the first quarter ended June 29, 2018 also satisfied our SEC reporting requirements for our year ended March 30, 2018 and our quarter ended June 29, 2018, respectively, under the Convertible Senior Notes agreements and the agreement for our 5.0% Senior Note due April 15, 2025. However, we have not yet met our SEC reporting requirements under these notes for our quarterly period ended September 28, 2018. The failure to meet these reporting requirements under the 5% Notes and the Convertible Senior Notes does not mature into the right for noteholders to take action until notice is received from noteholders and a grace period, as defined in the associated indentures, has passed. Furthermore, according to the Convertible Senior Note agreements, we have the option to remedy an event of default by paying additional interest for up to 360 days after the passage of the grace period. As of the date of this filing, no notice has been received from noteholders. Because we expected as of June 29, 2018 that we will comply with all of our debt covenants before the applicable grace periods have passed and waivers have expired, we have classified all of the associated outstanding debt as long-term debt in our Condensed Consolidated Balance Sheets. |
Derivatives
Derivatives | 3 Months Ended |
Jun. 29, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives We conduct business in numerous currencies throughout our worldwide operations and our entities hold monetary assets or liabilities, earn revenues and/or incur costs in currencies other than their functional currency. As a result, we are exposed to foreign exchange gains or losses which impact our operating results. As part of our foreign currency risk mitigation strategy, we have entered into foreign exchange forward contracts for up to six months in duration. We do not use derivative financial instruments for speculative trading purposes, nor do we hedge our foreign currency exposure in a manner that entirely offsets the effects of the changes in foreign exchange rates. The notional amount of our outstanding foreign exchange forward contracts in U.S. dollar equivalent was as follows: (In millions) June 29, 2018 March 30, 2018 Foreign exchange forward contracts purchased $ 856 $ 697 Foreign exchange forward contracts sold $ 171 $ 151 The fair value of our foreign exchange forward contracts is presented on a gross basis in our Condensed Consolidated Balance Sheets. As of June 29, 2018 and March 30, 2018 , the fair value was insignificant. To mitigate losses in the event of nonperformance by counterparties, we have entered into master netting arrangements with our counterparties that allow us to settle payments on a net basis. The effect of netting on our derivative assets and liabilities was not material as of June 29, 2018 and March 30, 2018 . Our foreign exchange forward contracts are not designated as hedging instruments. The related gain (loss) recognized in Other expense, net in our Condensed Consolidated Statements of Operations was as follows: Three Months Ended (In millions) June 29, 2018 June 30, 2017 Foreign exchange forward contracts gain (loss) $ (36 ) $ 10 |
Restructuring, Transition and O
Restructuring, Transition and Other Costs | 3 Months Ended |
Jun. 29, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring, Transition and Other Costs | Restructuring, Transition and Other Costs Our restructuring, transition and other costs consist primarily of severance, facilities, transition and other related costs. Severance costs generally include severance payments, outplacement services, health insurance coverage and legal costs. Included in other exit and disposal costs are advisory fees incurred in connection with restructuring events and facilities exit costs, which generally include rent expense and lease termination costs, less estimated sublease income. Transition costs are incurred in connection with Board of Directors approved discrete strategic information technology transformation initiatives and primarily consist of consulting charges associated with our enterprise resource planning and supporting systems and costs to automate business processes. In addition, transition costs include expenses associated with divestitures of our product lines. 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 (the “Fiscal 2017 Plan”), under which we reduced headcount and closed certain facilities. These actions were substantially completed at the end of our first quarter of fiscal 2019. As of June 29, 2018 , 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 2025 . Restructuring, transition and other costs summary Our restructuring, transition and other costs are presented in the table below: Three Months Ended (In millions) June 29, 2018 June 30, 2017 Severance and termination benefit costs $ 12 $ 27 Other exit and disposal costs 9 32 Asset write-offs 2 1 Transition costs 73 28 Total restructuring, transition and other costs $ 96 $ 88 Restructuring summary Our restructuring activities related to the Fiscal 2017 Plan are presented in the table below: (In millions) Balance as of March 30, 2018 Additional Accruals, Net of Cash Balance as of June 29, 2018 Cumulative Incurred to Date Severance and termination benefit costs $ 10 $ 12 $ (12 ) $ 10 $ 149 Other exit and disposal costs 15 9 (8 ) 16 140 Total $ 25 $ 21 $ (20 ) $ 26 $ 289 The restructuring liabilities are included in Other current liabilities and Other long-term liabilities in our Condensed Consolidated Balance Sheets. |
Income Taxes
Income Taxes | 3 Months Ended |
Jun. 29, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The following table summarizes our effective tax rate for income (loss) from continuing operations: Three Months Ended (In millions, except percentages) June 29, 2018 June 30, 2017 Loss from continuing operations before income taxes $ (69 ) $ (134 ) Income tax benefit $ (4 ) $ (24 ) Effective tax rate 6 % 18 % For the three months ended June 29, 2018 , we had no income tax expense on discontinued operations. For the three months ended June 30, 2017 , we recorded an income tax expense of $41 million on discontinued operations. Our effective tax rate for continuing operations for the three months ended June 29, 2018 was based on the statutory tax rate of 21% . Our effective tax rate for continuing operations for the three months ended June 29, 2018 differs from the federal statutory income tax rate primarily due to the benefits of lower-taxed international earnings, the research and development tax credit and foreign derived intangible income deduction, partially offset by tax expense from certain intercompany transactions and various permanent differences. Our effective tax rate for continuing operations for the three months ended June 30, 2017 was based on the historic statutory tax rate of 35% . Our effective tax rate for continuing operations for the three months ended June 30, 2017 differs from the federal statutory income tax rate primarily due to the benefits of lower-taxed international earnings, the research and development tax credit, and excess tax benefits related to stock-based compensation, partially offset by various permanent differences. As of June 29, 2018 , we have not completed our accounting for the tax effects of the enactment of the Act; however, in certain cases, as described below, we have made a reasonable estimate of the effects on our existing deferred tax balances and the one-time transition tax. These amounts may require further adjustments as a result of additional future guidance from the U.S. Department of the Treasury, changes in our assumptions, and the availability of further information and interpretations. On August 21, 2018, the U.S. Internal Revenue Service (“IRS”) issued a notice providing additional guidance on the application of new provisions under Section 162(m) regarding deductibility of stock-based compensation enacted with the Act. On September 13, 2018, the U.S. Department of Treasury released proposed regulations under the global intangible low taxed Income (“GILTI”) regime of the Act. We are in the process of evaluating the impact of the proposed regulations and notices on our provisional estimate for transition tax liability. The Act contained a one-time transition tax that is based on our total post-1986 earnings and profits (“E&P”) that we previously deferred from U.S. income taxes. In fiscal 2018, we recorded a provisional amount for our one-time transition tax liability of our foreign subsidiaries. We have not yet completed our calculation of the total post-1986 E&P for these foreign subsidiaries. Further, the transition tax is based in part on the amount of those earnings held in cash and other specified assets. This amount may change when we finalize the calculation of post-1986 foreign E&P previously deferred from U.S. federal taxation and finalize the amounts held in cash or other specified assets. Future accounting guidance may also change our provisional estimates for the transition tax. On August 1, 2018, the IRS and U.S. Department of Treasury issued proposed regulations on the one-time transition tax under Section 965 on untaxed foreign earnings of U.S. controlled foreign companies and other specified foreign corporations, which was enacted under the Act. Additional guidance on the transition tax was provided in the form of an IRS notice on October 1, 2018. During the three months ended June 29, 2018, we recorded a tax benefit of approximately $5 million to reduce our provisional estimate for the transition tax liability. We have not completed our analysis of the deferred tax accounting for the new taxes on GILTI and, therefore, have not recorded provisional amounts. We have not determined whether our accounting policy will be to record these amounts as deferred taxes or as period costs. We do not have sufficient information to complete the analysis and are awaiting potential further guidance required to evaluate the impact of deferred tax accounting for these provisions. As of June 29, 2018 , because we are still evaluating the GILTI provisions and our analysis of future taxable income that is subject to GILTI, we have only considered the GILTI impact related to current-year operations in our estimated annual effective tax rate and have not provided deferred taxes for future reversal of GILTI timing items. 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 involves 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 $13 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. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Jun. 29, 2018 | |
Stockholders' Equity Note [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 (In millions, except per share data) June 29, 2018 June 30, 2017 Dividends declared and paid $ 47 $ 46 Dividend equivalents paid 13 20 Total dividends and dividend equivalents paid $ 60 $ 66 On August 2, 2018 , we announced a cash dividend of $0.075 per share of common stock to be paid in September 2018 . On November 1, 2018 , we announced a cash dividend of $0.075 per share of common stock to be paid in December 2018 . All shares of common stock issued and outstanding and all restricted stock units (“RSUs”) and performance-based restricted stock units (“PRUs”) as of the record date will be entitled to the dividend and dividend equivalents, respectively. Any future dividends and dividend equivalents will be subject to the approval of our Board of Directors. Stock Repurchase Program Under our current stock repurchase program, we may purchase shares of our outstanding common stock through open market and through accelerated stock repurchase transactions. As of June 29, 2018 , the remaining balance of our stock repurchase authorization was $800 million and does not have an expiration date. Accumulated other comprehensive income (loss) Components of Accumulated other comprehensive income (loss), net of taxes, were as follows: (In millions) Foreign Currency Translation Adjustments Unrealized Loss on Available-For-Sale Securities Total Balance as of March 30, 2018 $ 8 $ (4 ) $ 4 Other comprehensive loss before reclassifications (24 ) — (24 ) Balance as of June 29, 2018 $ (16 ) $ (4 ) $ (20 ) |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Jun. 29, 2018 | |
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 for our equity incentive plans: Three Months Ended (In millions) June 29, 2018 June 30, 2017 Cost of revenues $ 5 $ 6 Sales and marketing 31 43 Research and development 39 41 General and administrative 38 57 Total stock-based compensation expense $ 113 $ 147 Income tax benefit for stock-based compensation expense $ (26 ) $ (51 ) The following table summarizes additional information related to our stock-based compensation: Three Months Ended (In millions, except per grant data) June 29, 2018 June 30, 2017 RSUs: Weighted-average fair value per award granted $ 21.71 $ 29.91 Awards granted 10 7 Total fair value of awards released $ 167 $ 170 Outstanding and unvested 20 23 PRUs: Weighted-average fair value per award granted $ — $ 33.96 Awards granted — 3 Total fair value of awards released $ 8 $ 21 Outstanding and unvested at target payout 3 8 Stock options: Total intrinsic value of stock options exercised $ 7 $ 17 Outstanding and unvested 13 18 Restricted stock: Outstanding and unvested 1 — PRUs As of June 29, 2018 , 12 million PRUs that vested on March 30, 2018 remained unreleased. Liability-classified awards settled in shares For certain employees, we settled fiscal 2018 bonuses in approximately 1 million RSUs. These awards were granted and vested in the first quarter of fiscal 2019. Certain fiscal 2019 bonuses are expected to be settled in RSUs in the first quarter of fiscal 2020. As of June 29, 2018 and March 30, 2018 , the total liability associated with liability-classified awards was $8 million and $25 million , respectively which is presented in Accrued compensation and benefits in our Condensed Consolidated Balance Sheets. As of June 29, 2018 , the total unrecognized stock-based compensation costs, net of estimated forfeitures, were as follows: (In millions) Unrecognized compensation cost Weighted-average remaining years RSUs $ 329 2.1 years PRUs 50 1.5 years Options 27 1.0 year Restricted stock 32 2.1 years Liability-classified awards settled in shares 40 1.4 years Employee stock purchase plan 4 0.2 years Total $ 482 |
Net Income Per Share
Net Income Per Share | 3 Months Ended |
Jun. 29, 2018 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Net Income Per Share Basic income per share is computed by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted net income per share also includes the incremental effect of dilutive potentially issuable common shares outstanding during the period using the treasury stock method. Dilutive potentially issuable common shares includes the dilutive effect of the shares underlying convertible debt and employee equity awards. Diluted loss per share was the same as basic loss per share for each of the three months ended June 29, 2018 and June 30, 2017 , as there was a loss from continuing operations in the periods and inclusion of potentially issuable shares was anti-dilutive. The components of basic and diluted net income (loss) per share are as follows: Three Months Ended (In millions, except per share amounts) June 29, 2018 June 30, 2017 Loss from continuing operations $ (65 ) $ (110 ) Income (loss) from discontinued operations, net of income taxes 5 (23 ) Net loss $ (60 ) $ (133 ) Income (loss) per share - basic and diluted: Continuing operations $ (0.10 ) $ (0.18 ) Discontinued operations $ 0.01 $ (0.04 ) Net loss per share - basic and diluted (1) $ (0.10 ) $ (0.22 ) Weighted-average shares outstanding - basic and diluted 624 609 Anti-dilutive shares excluded from diluted net income per share calculation: Convertible debt 91 91 Employee equity awards 55 53 Total 146 144 (1) Net loss per share amounts may not add due to rounding. Under the treasury stock method, our Convertible Senior Notes will generally have a dilutive impact on net income per share 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. The conversion feature of both notes was anti-dilutive during the three months ended June 29, 2018 and June 30, 2017 as there was a loss from continuing operations in the periods . |
Segment and Geographical Inform
Segment and Geographical Information | 3 Months Ended |
Jun. 29, 2018 | |
Segment Reporting [Abstract] | |
Segment and Geographical Information | Segment and Geographic Information We operate in the following two reporting segments, which are the same as our operating segments: • Enterprise Security. Our Enterprise Security segment focuses on providing solutions to protect organizations so they can securely conduct business while leveraging new platforms and data. Our Enterprise Security portfolio includes products, services and solutions that are delivered as part of an Integrated Cyber Defense Platform. • Consumer Digital Safety. Our Consumer Digital Safety segment focuses on providing a comprehensive Digital Safety solution to protect information, devices, networks and the identities of consumers. This solution includes our Norton-branded security solutions and LifeLock identity theft protection solutions. Operating segments are based upon the nature of our business and how our business is managed. Our Chief Operating Decision Makers (“CODM”), consisting of our Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), use our operating segment financial information to evaluate segment performance and to allocate resources. There were no inter-segment sales for the periods presented. The following table summarizes the operating results of our reportable segments: Three Months Ended (In millions) June 29, 2018 June 30, 2017 Total Segments: Net revenues $ 1,156 $ 1,175 Operating income $ 319 $ 324 Enterprise Security: Net revenues $ 556 $ 646 Operating income $ 56 $ 94 Consumer Digital Safety: Net revenues $ 600 $ 529 Operating income $ 263 $ 230 We do not allocate to our operating segments certain operating expenses that we manage separately at the corporate level and are not used in evaluating the results of, or in allocating resources to, our segments. These unallocated expenses consist primarily of stock-based compensation expense; amortization of intangible assets; restructuring, transition and other costs; and acquisition-related costs. The following table provides a reconciliation of our total reportable segments’ operating income to our total operating income (loss): Three Months Ended (In millions) June 29, 2018 June 30, 2017 Total segment operating income $ 319 $ 324 Reconciling items: Stock-based compensation expense 113 147 Amortization of intangible assets 111 114 Restructuring, transition and other costs 96 88 Acquisition-related costs 2 19 Other (5 ) — Total consolidated operating income (loss) from continuing operations $ 2 $ (44 ) The following table summarizes net revenues by significant products and services categories: Three Months Ended (In millions) June 29, 2018 June 30, 2017 Enterprise Security: Endpoint and information protection $ 253 $ 237 Network and web security 173 172 Website security and public key infrastructure — 103 Other products and services 130 134 Total Enterprise Security $ 556 $ 646 Consumer Digital Safety: Consumer security $ 369 $ 371 Identity and information protection 231 158 Total Consumer Digital Safety 600 529 Total net revenues $ 1,156 $ 1,175 Endpoint and information protection products include endpoint security, advanced threat protection, and information protection solutions and their related support services. Network and web security products include network security, web security, and cloud security solutions and their related support services. Website security and public key infrastructure products consist of the solutions we divested on October 31, 2017. Other products and services primarily consist of email security products, managed security services, consulting and other professional services. Consumer security products include Norton security, Norton Secure VPN, and other consumer security solutions. Identity and information protection products include LifeLock identity theft protection and other information protection solutions. Geographical information Net revenues by geography are based on the billing addresses of our customers. The following table represents net revenues by geographic area for the periods presented: Three Months Ended (In millions) June 29, 2018 June 30, 2017 Americas $ 734 $ 736 EMEA 243 250 APJ 179 189 Total net revenues $ 1,156 $ 1,175 The Americas include U.S., Canada and Latin America; EMEA includes Europe, Middle East and Africa; APJ includes Asia Pacific and Japan. Revenues from customers inside the U.S. were $688 million and $679 million during the three months ended June 29, 2018 and June 30, 2017 , respectively. No other individual country accounted for more than 10% of revenues. Most of our assets, excluding cash and cash equivalents and short-term investments, as of June 29, 2018 and June 30, 2017 , were attributable to our U.S. operations. The table below represents cash, cash equivalents and short-term investments held in the U.S. and internationally in various foreign subsidiaries. (In millions) June 29, 2018 March 30, 2018 U.S. $ 1,627 $ 858 International 698 1,304 Total cash, cash equivalent and short-term investments $ 2,325 $ 2,162 The table below represents our property and equipment, net of accumulated depreciation and amortization, by geographic area, based on the physical location of the asset, at the end of each period presented. (In millions) June 29, 2018 March 30, 2018 U.S. $ 663 $ 677 International (1) 95 101 Total property and equipment, net $ 758 $ 778 (1) No individual country represented more than 10% of the respective totals. Significant customers In the three months ended June 29, 2018 and June 30, 2017 , no customer accounted for more than 10% of our net revenues. As of June 29, 2018 and March 30, 2018 , customers, which are distributors, that accounted for over 10% of our net accounts receivable, are as follows: June 29, 2018 March 30, 2018 Customer A 15 % 22 % Customer B N/A 15 % |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Jun. 29, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitment and contingencies | Commitments and Contingencies Lease commitments Our operating leases primarily consist of leases of our facilities and data center co-locations. As of June 29, 2018 , the minimum future rentals on non-cancelable operating leases by fiscal year are as follows: (In millions) June 29, 2018 Remainder of 2019 $ 66 2020 50 2021 42 2022 30 2023 21 Thereafter 43 Total minimum future lease payments 252 Sublease income (13 ) Total minimum future payments, net $ 239 Purchase obligations As of June 29, 2018 , we had purchase obligations of $619 million associated with agreements for purchases of goods or services. Management believes that cancellation of these contracts is unlikely and we expect to make future cash payments according to the contract terms. Deemed repatriation taxes As of June 29, 2018 , we are required to pay a one-time transition tax of $892 million on untaxed foreign earnings of our foreign subsidiaries in annual installments over the next eight years as a result of the Act. See Note 10 for further information on the transition tax. 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 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. 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 Audit Committee Investigation Several securities class action and derivative lawsuits were filed against us following our announcement on May 10, 2018 of the Audit Committee of our Board of Directors’ (the “Audit Committee”) internal investigation (the “Audit Committee Investigation”), including an action brought derivatively on behalf of Symantec’s 2008 Employee Stock Purchase Plan. In addition, we have received certain demands from purported stockholders to inspect corporate books and records under Delaware law. No specific amounts of damages have been alleged in these lawsuits. We will continue to incur legal fees in connection with these pending cases, including expenses for the reimbursement of legal fees of present and former officers and directors under indemnification obligations. The expense of continuing to defend such litigation may be significant. We intend to defend these lawsuits vigorously, but there can be no assurance that we will be successful in any defense. If any of the lawsuits related to our Audit Committee Investigation are decided adversely, we may be liable for significant damages directly or under our indemnification obligations, which could adversely affect our business, results of operations and cash flows. At this stage, we are unable to assess whether any material loss or adverse effect is reasonably possible as a result of these lawsuits or estimate the range of any potential loss. GSA During the first quarter of fiscal 2013, we were advised by the Commercial Litigation Branch of the Department of Justice’s (“DOJ”) 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 California, Florida, and New York 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 DOJ 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 DOJ 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. 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. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Jun. 29, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Restructuring plan On August 2, 2018, we announced a restructuring plan under which we will initiate targeted reductions of our global workforce of up to approximately 8% . We estimate that we will incur total costs in connection with the restructuring plan of approximately $50 million , primarily for severance and termination benefits. These actions are expected to be completed in fiscal 2019. Purchase obligations In September 2018, we entered into a five -year purchase agreement with a service provider for a total contract value of $500 million . |
Description of Business and S_2
Description of Business and Significant Accounting Policies (Policies) | 3 Months Ended |
Jun. 29, 2018 | |
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 March 30, 2018 . The results of operations for the three months ended June 29, 2018 , are not necessarily indicative of the results expected for the entire fiscal year. |
Fiscal accounting year | We have a 52/53-week fiscal year ending on the Friday closest to March 31. Unless otherwise stated, references to three -month periods in this report relate to fiscal periods ended June 29, 2018 and June 30, 2017 , each consisting of 13 weeks. Our 2019 fiscal year consists of 52 weeks and ends on March 29, 2019 . |
Significant accounting policies and new accounting pronouncements | Significant accounting policies There have been no material changes to our significant accounting policies as of and for the three months ended June 29, 2018 , except for those noted in Note 2 and Note 3 , as compared to the significant accounting policies described in our Annual Report on Form 10-K for the fiscal year ended March 30, 2018 . |
Recent Accounting Standards (Ta
Recent Accounting Standards (Tables) | 3 Months Ended |
Jun. 29, 2018 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The effects of the adoption of the new revenue recognition guidance on our June 29, 2018 Condensed Consolidated Balance Sheets were as follows: As of June 29, 2018 (In millions) As Reported Balances Without Adoption of New Standard Effect of Change Accounts receivable, net $ 502 $ 459 $ 43 Other current assets (1) $ 501 $ 490 $ 11 Other long-term assets (2) $ 1,308 $ 1,260 $ 48 Total assets $ 16,248 $ 16,146 $ 102 Short-term contract liabilities $ 2,137 $ 2,242 $ (105 ) Other current liabilities $ 403 $ 377 $ 26 Long-term contract liabilities $ 630 $ 708 $ (78 ) Deferred income tax liabilities $ 598 $ 551 $ 47 Total liabilities $ 10,330 $ 10,440 $ (110 ) Accumulated other comprehensive loss $ (20 ) $ (16 ) $ (4 ) Retained earnings $ 1,158 $ 942 $ 216 Total stockholders’ equity $ 5,918 $ 5,706 $ 212 (1) As reported includes short-term deferred commissions of $87 million . The balance without adoption of new standard includes short-term deferred commissions of $80 million . (2) As reported includes long-term deferred commissions of $88 million . The balance without adoption of new standard includes long-term deferred commissions of $39 million . The following summarizes the effect of adopting the above new accounting standards: (in millions) Balance as of March 30, 2018 Revenue Recognition Guidance Accounting for Income Taxes Guidance Opening Balance as of March 31, 2018 Accounts receivable, net $ 809 $ 24 $ — $ 833 Other current assets (1) $ 522 $ (8 ) $ (8 ) $ 506 Other long-term assets (2) $ 526 $ 57 $ 750 $ 1,333 Total assets $ 15,759 $ 73 $ 742 $ 16,574 Short-term contract liabilities $ 2,368 $ (107 ) $ — $ 2,261 Other current liabilities $ 372 $ (2 ) $ — $ 370 Long-term contract liabilities $ 735 $ (62 ) $ — $ 673 Deferred income tax liabilities $ 592 $ 47 $ — $ 639 Total liabilities $ 10,736 $ (124 ) $ — $ 10,612 Stockholders’ equity: Retained earnings $ 328 $ 197 $ 742 $ 1,267 (1) The balance as of March 30, 2018, includes income tax receivable and prepaid income taxes of $107 million and short-term deferred commissions of $94 million . The opening balance as of March 31, 2018, includes income tax receivable and prepaid income taxes of $99 million and short-term deferred commissions of $86 million . (2) The balance as of March 30, 2018, includes long-term deferred commissions of $35 million , long-term income tax receivable and prepaid income taxes of $61 million and deferred income tax assets of $46 million . The opening balance as of March 31, 2018, includes long-term deferred commissions of $92 million , long-term income tax receivable and prepaid income taxes of $29 million and deferred income tax assets of $828 million . |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended |
Jun. 29, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, Remaining Performance Obligation | Our typical performance obligations include the following: Performance Obligation When Performance Obligations is Typically Satisfied Products and services transferred at a point in time: License with distinct deliverables When software activation keys have been made available for download Hardware with distinct deliverables When control of the product passes to the customer; typically upon shipment Products and services transferred over time: License with interrelated deliverables Over the expected performance term, beginning on the date that software activation keys are made available to the customer Cloud hosted solutions Over the contract term, beginning on the date that service is made available to the customer Support and maintenance Ratably over the course of the service term Professional services As the services are provided As of June 29, 2018 , we had $2.8 billion of remaining performance obligations and the approximate percentages expected to be recognized as revenue in the future are as follows: Total Remaining Performance Obligations Percent Expected to be Recognized as Revenue (In millions, except percentages) 0 - 12 Months 13 - 24 Months 25 - 36 Months Over 36 Months Enterprise Security $ 1,747 65 % 23 % 10 % 2 % Consumer Digital Safety 1,053 96 % 3 % 1 % — % Total $ 2,800 77 % 15 % 7 % 1 % |
Revenue Disaggregated by the Timing of Recognition | The following table provides our revenue disaggregated by the timing of recognition under both the new guidance and the legacy guidance during the three months ended June 29, 2018 . (In millions) As Reported Amounts Without Adoption of New Standard Effect of Change Enterprise Security: Products and services transferred at a point in time $ 99 $ 61 $ 38 Products and services transferred over time $ 457 $ 490 $ (33 ) Consumer Digital Safety: Products and services transferred at a point in time $ 12 $ 12 $ — Products and services transferred over time $ 588 $ 588 $ — Total Products and services transferred at a point in time $ 111 $ 73 $ 38 Products and services transferred over time $ 1,045 $ 1,078 $ (33 ) |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Jun. 29, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in the Carrying Amount of Goodwill by Segment | The changes in the carrying amount of goodwill by segment are as follows: (In millions) Enterprise Security Consumer Digital Safety Total Balance as of March 30, 2018 $ 5,734 $ 2,585 $ 8,319 Acquisitions — 6 6 Translation adjustments (2 ) (1 ) (3 ) Balance as of June 29, 2018 $ 5,732 $ 2,590 $ 8,322 |
Schedule of Intangible Assets, Net, Finite-Lived | June 29, 2018 March 30, 2018 (In millions) Gross Accumulated Net Gross Accumulated Net Customer relationships $ 1,462 $ (409 ) $ 1,053 $ 1,462 $ (357 ) $ 1,105 Developed technology 1,039 (419 ) 620 1,037 (361 ) 676 Finite-lived trade names and other 13 (9 ) 4 13 (8 ) 5 Total finite-lived intangible assets 2,514 (837 ) 1,677 2,512 (726 ) 1,786 Indefinite-lived trade names 852 — 852 852 — 852 In-process research and development 3 — 3 5 — 5 Total intangible assets $ 3,369 $ (837 ) $ 2,532 $ 3,369 $ (726 ) $ 2,643 |
Schedule of Intangible Assets, Net, Indefinite-Lived | June 29, 2018 March 30, 2018 (In millions) Gross Accumulated Net Gross Accumulated Net Customer relationships $ 1,462 $ (409 ) $ 1,053 $ 1,462 $ (357 ) $ 1,105 Developed technology 1,039 (419 ) 620 1,037 (361 ) 676 Finite-lived trade names and other 13 (9 ) 4 13 (8 ) 5 Total finite-lived intangible assets 2,514 (837 ) 1,677 2,512 (726 ) 1,786 Indefinite-lived trade names 852 — 852 852 — 852 In-process research and development 3 — 3 5 — 5 Total intangible assets $ 3,369 $ (837 ) $ 2,532 $ 3,369 $ (726 ) $ 2,643 |
Amortization Expense | Amortization expense for purchased intangible assets is summarized below: Three Months Ended Statements of Operations Classification (In millions) June 29, 2018 June 30, 2017 Customer relationships and other $ 53 $ 59 Operating expenses Developed technology 58 55 Cost of revenues Total $ 111 $ 114 |
Schedule of Future Intangible Asset Amortization Expense | As of June 29, 2018 , future amortization expense related to intangible assets that have finite lives is as follows by fiscal year: (In millions) June 29, 2018 Remainder of 2019 $ 330 2020 434 2021 323 2022 262 2023 220 Thereafter 108 Total $ 1,677 |
Supplementary Information (Tabl
Supplementary Information (Tables) | 3 Months Ended |
Jun. 29, 2018 | |
Supplementary Information [Abstract] | |
Schedule of Cash and cash equivalents | Cash and cash equivalents: June 29, 2018 March 30, 2018 Cash $ 472 $ 1,016 Cash equivalents 1,529 758 Total cash and cash equivalents $ 2,001 $ 1,774 |
Schedule of Other current assets | Other current assets: June 29, 2018 March 30, 2018 Prepaid expenses $ 184 $ 177 Income tax receivable and prepaid income taxes 79 107 Short-term deferred commissions 87 94 Assets held for sale 26 26 Other 125 118 Total other current assets $ 501 $ 522 |
Summary of Property and equipment, net | Property and equipment, net: June 29, 2018 March 30, 2018 Land $ 65 $ 66 Computer hardware and software 1,083 1,081 Office furniture and equipment 106 110 Buildings 365 365 Leasehold improvements 328 339 Construction in progress 37 29 Total property and equipment, gross 1,984 1,990 Accumulated depreciation and amortization (1,226 ) (1,212 ) Total property and equipment, net $ 758 $ 778 |
Schedule of Other long-term assets | Other long-term assets: June 29, 2018 March 30, 2018 Cost method investments $ 175 $ 175 Equity method investment 108 134 Long-term income tax receivable and prepaid income taxes 29 61 Deferred income tax assets 828 46 Long-term deferred commissions 88 35 Other 80 75 Total other long-term assets $ 1,308 $ 526 |
Schedule of contract liabilities | Short-term contract liabilities: June 29, 2018 March 30, 2018 Deferred revenue $ 1,686 $ 2,368 Customer deposit liabilities 451 — Total short-term contract liabilities $ 2,137 $ 2,368 |
Schedule of Long-term income taxes payable | Long-term income taxes payable: June 29, 2018 March 30, 2018 Deemed repatriation tax payable $ 820 $ 824 Uncertain tax positions (including interest and penalties) 292 302 Total long-term income taxes payable $ 1,112 $ 1,126 |
Schedule of Other income, net | Other income (expense), net: Three Months Ended June 29, 2018 June 30, 2017 Interest income $ 7 $ 6 Loss from equity interest (26 ) — Foreign exchange loss (9 ) (14 ) Other 9 2 Total other expense, net $ (19 ) $ (6 ) |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurements (Tables) | 3 Months Ended |
Jun. 29, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of the Carrying Value of Assets Measured at Fair Value on a Recurring Basis | The following table summarizes our financial instruments measured at fair value on a recurring basis: June 29, 2018 March 30, 2018 (In millions) Fair Value Level 1 Level 2 Fair Value Level 1 Level 2 Assets: Cash equivalents: Money market funds $ 1,418 $ 1,418 $ — $ 679 $ 679 $ — Certificates of deposit 111 — 111 79 — 79 Short-term investments: Corporate bonds 318 — 318 374 — 374 Commercial paper — — — 2 — 2 Certificates of deposit 6 — 6 12 — 12 Total $ 1,853 $ 1,418 $ 435 $ 1,146 $ 679 $ 467 |
Available-for-sale Securities | The following table presents the contractual maturities of our investments in debt securities as of June 29, 2018 : (In millions) Fair Value Due in one year or less $ 88 Due after one year through five years 236 Total $ 324 |
Summarized Financial Information, Profit (Loss) | The following table summarizes unaudited financial data from the privately-held company for the three months ended March 31, 2018, which was provided to us on a three-month lag: (In millions) Revenue $ 66 Gross profit $ 53 Net loss $ (82 ) |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Jun. 29, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Components of Debt | The following table summarizes components of our long-term debt: (In millions, except percentages) June 29, 2018 March 30, 2018 Effective Senior Term Loan A-2 due August 1, 2019 $ 600 $ 600 LIBOR plus (1) 4.2% Senior Notes due September 15, 2020 750 750 4.25 % 2.5% Convertible Senior Notes due April 1, 2021 500 500 3.76 % Senior Term Loan A-5 due August 1, 2021 500 500 LIBOR plus (1) 2.0% Convertible Senior Notes due August 15, 2021 1,250 1,250 2.66 % 3.95% Senior Notes due June 15, 2022 400 400 4.05 % 5.0% Senior Notes due April 15, 2025 1,100 1,100 5.23 % Total principal amount 5,100 5,100 Less: Unamortized discount and issuance costs (68 ) (74 ) Total long-term debt $ 5,032 $ 5,026 (1) The senior term facilities bear interest at a rate equal to the London Interbank Offered Rate (“LIBOR”) plus a margin based on the current debt rating of our non-credit-enhanced, senior unsecured long-term debt and the underlying loan agreements. The interest rates for the outstanding senior term loans are as follows: June 29, 2018 March 30, 2018 Senior Term Loan A-2 due August 1, 2019 3.88 % 3.31 % Senior Term Loan A-5 due August 1, 2021 4.08 % 3.54 % |
Schedule of Maturities of Long-term Debt | As of June 29, 2018 , the future contractual maturities of debt by fiscal year are as follows: (In millions) June 29, 2018 2020 $ 600 2021 1,250 2022 1,750 2023 400 Thereafter 1,100 Total future maturities of debt $ 5,100 |
Schedule of Interest Expense | The following table sets forth total interest expense recognized related to our 2.5% and 2.0% Convertible Senior Notes: Three Months Ended (In millions) June 29, 2018 June 30, 2017 Contractual interest expense $ 9 $ 9 Amortization of debt discount and issuance costs $ 4 $ 4 |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Jun. 29, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Foreign Exchange Contracts | The notional amount of our outstanding foreign exchange forward contracts in U.S. dollar equivalent was as follows: (In millions) June 29, 2018 March 30, 2018 Foreign exchange forward contracts purchased $ 856 $ 697 Foreign exchange forward contracts sold $ 171 $ 151 |
Derivative Instruments, Gain (Loss) | The related gain (loss) recognized in Other expense, net in our Condensed Consolidated Statements of Operations was as follows: Three Months Ended (In millions) June 29, 2018 June 30, 2017 Foreign exchange forward contracts gain (loss) $ (36 ) $ 10 |
Restructuring, Transition and_2
Restructuring, Transition and Other Costs (Tables) | 3 Months Ended |
Jun. 29, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | Our restructuring, transition and other costs are presented in the table below: Three Months Ended (In millions) June 29, 2018 June 30, 2017 Severance and termination benefit costs $ 12 $ 27 Other exit and disposal costs 9 32 Asset write-offs 2 1 Transition costs 73 28 Total restructuring, transition and other costs $ 96 $ 88 |
Schedule of the Restructuring and Separation Liabilities Summary | Our restructuring activities related to the Fiscal 2017 Plan are presented in the table below: (In millions) Balance as of March 30, 2018 Additional Accruals, Net of Cash Balance as of June 29, 2018 Cumulative Incurred to Date Severance and termination benefit costs $ 10 $ 12 $ (12 ) $ 10 $ 149 Other exit and disposal costs 15 9 (8 ) 16 140 Total $ 25 $ 21 $ (20 ) $ 26 $ 289 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Jun. 29, 2018 | |
Income Tax Disclosure [Abstract] | |
Summary of Effective Tax Rate | The following table summarizes our effective tax rate for income (loss) from continuing operations: Three Months Ended (In millions, except percentages) June 29, 2018 June 30, 2017 Loss from continuing operations before income taxes $ (69 ) $ (134 ) Income tax benefit $ (4 ) $ (24 ) Effective tax rate 6 % 18 % |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Jun. 29, 2018 | |
Stockholders' Equity Note [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 (In millions, except per share data) June 29, 2018 June 30, 2017 Dividends declared and paid $ 47 $ 46 Dividend equivalents paid 13 20 Total dividends and dividend equivalents paid $ 60 $ 66 |
Schedule of Accumulated Other Comprehensive Income | Components of Accumulated other comprehensive income (loss), net of taxes, were as follows: (In millions) Foreign Currency Translation Adjustments Unrealized Loss on Available-For-Sale Securities Total Balance as of March 30, 2018 $ 8 $ (4 ) $ 4 Other comprehensive loss before reclassifications (24 ) — (24 ) Balance as of June 29, 2018 $ (16 ) $ (4 ) $ (20 ) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Jun. 29, 2018 | |
Share-based Compensation [Abstract] | |
Schedule of Stock-Based Compensation Expense | The following table sets forth the stock-based compensation expense recognized for our equity incentive plans: Three Months Ended (In millions) June 29, 2018 June 30, 2017 Cost of revenues $ 5 $ 6 Sales and marketing 31 43 Research and development 39 41 General and administrative 38 57 Total stock-based compensation expense $ 113 $ 147 Income tax benefit for stock-based compensation expense $ (26 ) $ (51 ) |
Schedule of Additional Information Related to Stock-Based Compensation | The following table summarizes additional information related to our stock-based compensation: Three Months Ended (In millions, except per grant data) June 29, 2018 June 30, 2017 RSUs: Weighted-average fair value per award granted $ 21.71 $ 29.91 Awards granted 10 7 Total fair value of awards released $ 167 $ 170 Outstanding and unvested 20 23 PRUs: Weighted-average fair value per award granted $ — $ 33.96 Awards granted — 3 Total fair value of awards released $ 8 $ 21 Outstanding and unvested at target payout 3 8 Stock options: Total intrinsic value of stock options exercised $ 7 $ 17 Outstanding and unvested 13 18 Restricted stock: Outstanding and unvested 1 — |
Schedule of Unrecognized Compensation Cost, Nonvested Awards | As of June 29, 2018 , the total unrecognized stock-based compensation costs, net of estimated forfeitures, were as follows: (In millions) Unrecognized compensation cost Weighted-average remaining years RSUs $ 329 2.1 years PRUs 50 1.5 years Options 27 1.0 year Restricted stock 32 2.1 years Liability-classified awards settled in shares 40 1.4 years Employee stock purchase plan 4 0.2 years Total $ 482 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 3 Months Ended |
Jun. 29, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Components of Net Income Per Share | The components of basic and diluted net income (loss) per share are as follows: Three Months Ended (In millions, except per share amounts) June 29, 2018 June 30, 2017 Loss from continuing operations $ (65 ) $ (110 ) Income (loss) from discontinued operations, net of income taxes 5 (23 ) Net loss $ (60 ) $ (133 ) Income (loss) per share - basic and diluted: Continuing operations $ (0.10 ) $ (0.18 ) Discontinued operations $ 0.01 $ (0.04 ) Net loss per share - basic and diluted (1) $ (0.10 ) $ (0.22 ) Weighted-average shares outstanding - basic and diluted 624 609 Anti-dilutive shares excluded from diluted net income per share calculation: Convertible debt 91 91 Employee equity awards 55 53 Total 146 144 (1) Net loss per share amounts may not add due to rounding. |
Segment and Geographical Info_2
Segment and Geographical Information (Tables) | 3 Months Ended |
Jun. 29, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Reportable Segment Data | The following table summarizes the operating results of our reportable segments: Three Months Ended (In millions) June 29, 2018 June 30, 2017 Total Segments: Net revenues $ 1,156 $ 1,175 Operating income $ 319 $ 324 Enterprise Security: Net revenues $ 556 $ 646 Operating income $ 56 $ 94 Consumer Digital Safety: Net revenues $ 600 $ 529 Operating income $ 263 $ 230 |
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 total operating income (loss): Three Months Ended (In millions) June 29, 2018 June 30, 2017 Total segment operating income $ 319 $ 324 Reconciling items: Stock-based compensation expense 113 147 Amortization of intangible assets 111 114 Restructuring, transition and other costs 96 88 Acquisition-related costs 2 19 Other (5 ) — Total consolidated operating income (loss) from continuing operations $ 2 $ (44 ) |
Revenue by Significant Products and Services | The following table summarizes net revenues by significant products and services categories: Three Months Ended (In millions) June 29, 2018 June 30, 2017 Enterprise Security: Endpoint and information protection $ 253 $ 237 Network and web security 173 172 Website security and public key infrastructure — 103 Other products and services 130 134 Total Enterprise Security $ 556 $ 646 Consumer Digital Safety: Consumer security $ 369 $ 371 Identity and information protection 231 158 Total Consumer Digital Safety 600 529 Total net revenues $ 1,156 $ 1,175 |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | Net revenues by geography are based on the billing addresses of our customers. The following table represents net revenues by geographic area for the periods presented: Three Months Ended (In millions) June 29, 2018 June 30, 2017 Americas $ 734 $ 736 EMEA 243 250 APJ 179 189 Total net revenues $ 1,156 $ 1,175 |
Cash, Cash Equivalents and Investments | The table below represents cash, cash equivalents and short-term investments held in the U.S. and internationally in various foreign subsidiaries. (In millions) June 29, 2018 March 30, 2018 U.S. $ 1,627 $ 858 International 698 1,304 Total cash, cash equivalent and short-term investments $ 2,325 $ 2,162 |
Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country | The table below represents our property and equipment, net of accumulated depreciation and amortization, by geographic area, based on the physical location of the asset, at the end of each period presented. (In millions) June 29, 2018 March 30, 2018 U.S. $ 663 $ 677 International (1) 95 101 Total property and equipment, net $ 758 $ 778 (1) No individual country represented more than 10% of the respective totals. |
Schedule of Accounts Receivable by Major Customers | As of June 29, 2018 and March 30, 2018 , customers, which are distributors, that accounted for over 10% of our net accounts receivable, are as follows: June 29, 2018 March 30, 2018 Customer A 15 % 22 % Customer B N/A 15 % |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Jun. 29, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | Our operating leases primarily consist of leases of our facilities and data center co-locations. As of June 29, 2018 , the minimum future rentals on non-cancelable operating leases by fiscal year are as follows: (In millions) June 29, 2018 Remainder of 2019 $ 66 2020 50 2021 42 2022 30 2023 21 Thereafter 43 Total minimum future lease payments 252 Sublease income (13 ) Total minimum future payments, net $ 239 |
Recent Accounting Standards (Na
Recent Accounting Standards (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | ||||
Jun. 29, 2018 | Jun. 30, 2017 | Mar. 31, 2018 | Mar. 30, 2018 | [1] | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Net revenues | $ 1,156 | $ 1,175 | |||
Operating Expenses | 905 | $ 962 | |||
Retained earnings | 1,158 | $ 1,267 | $ 328 | ||
Accounting Standards Update 2014-09 | |||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Retained earnings | 197 | ||||
Accounting Standards Update 2016-16 | |||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Retained earnings | $ 742 | ||||
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | |||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Net revenues | 5 | ||||
Operating Expenses | (9) | ||||
Retained earnings | $ 216 | ||||
[1] | Derived from audited financial statements. |
Recent Accounting Standards (Sc
Recent Accounting Standards (Schedule of Effect of New Accounting Pronouncement) (Details) - USD ($) $ in Millions | Jun. 29, 2018 | Mar. 31, 2018 | Mar. 30, 2018 | |
Assets: | ||||
Accounts receivable, net | $ 502 | $ 833 | $ 809 | [1] |
Other current assets | 501 | 506 | 522 | [1] |
Other long-term assets | 1,308 | 1,333 | 526 | [1] |
Total assets | 16,248 | 16,574 | 15,759 | [1] |
Income tax receivable and prepaid income taxes | 79 | 99 | 107 | |
Short-term deferred commissions | 87 | 86 | 94 | |
Deferred income tax assets | 828 | 828 | 46 | |
Long-term deferred commissions | 88 | 92 | 35 | |
Long-term income tax receivable and prepaid income taxes | 29 | 29 | 61 | |
Liabilities: | ||||
Short-term contract liabilities | 2,137 | 2,261 | 2,368 | [1] |
Other current liabilities | 403 | 370 | 372 | [1] |
Long-term contract liabilities | 630 | 673 | 735 | [1] |
Deferred income tax liabilities | 598 | 639 | 592 | [1] |
Total liabilities | 10,330 | 10,612 | 10,736 | [1] |
Stockholders’ equity: | ||||
Accumulated other comprehensive loss | (20) | 4 | [1] | |
Retained earnings | 1,158 | 1,267 | 328 | [1] |
Total stockholders’ equity | 5,918 | $ 5,023 | [1] | |
Calculated under Revenue Guidance in Effect before Topic 606 | ||||
Assets: | ||||
Accounts receivable, net | 459 | |||
Other current assets | 490 | |||
Other long-term assets | 1,260 | |||
Total assets | 16,146 | |||
Short-term deferred commissions | 80 | |||
Long-term deferred commissions | 39 | |||
Liabilities: | ||||
Short-term contract liabilities | 2,242 | |||
Other current liabilities | 377 | |||
Long-term contract liabilities | 708 | |||
Deferred income tax liabilities | 551 | |||
Total liabilities | 10,440 | |||
Stockholders’ equity: | ||||
Accumulated other comprehensive loss | (16) | |||
Retained earnings | 942 | |||
Total stockholders’ equity | 5,706 | |||
Accounting Standards Update 2016-16 | ||||
Assets: | ||||
Accounts receivable, net | 0 | |||
Other current assets | (8) | |||
Other long-term assets | 750 | |||
Total assets | 742 | |||
Liabilities: | ||||
Short-term contract liabilities | 0 | |||
Other current liabilities | 0 | |||
Long-term contract liabilities | 0 | |||
Deferred income tax liabilities | 0 | |||
Total liabilities | 0 | |||
Stockholders’ equity: | ||||
Retained earnings | 742 | |||
Accounting Standards Update 2014-09 | ||||
Assets: | ||||
Accounts receivable, net | 24 | |||
Other current assets | (8) | |||
Other long-term assets | 57 | |||
Total assets | 73 | |||
Liabilities: | ||||
Short-term contract liabilities | (107) | |||
Other current liabilities | (2) | |||
Long-term contract liabilities | (62) | |||
Deferred income tax liabilities | 47 | |||
Total liabilities | (124) | |||
Stockholders’ equity: | ||||
Retained earnings | $ 197 | |||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | ||||
Assets: | ||||
Accounts receivable, net | 43 | |||
Other current assets | 11 | |||
Other long-term assets | 48 | |||
Total assets | 102 | |||
Liabilities: | ||||
Short-term contract liabilities | (105) | |||
Other current liabilities | 26 | |||
Long-term contract liabilities | (78) | |||
Deferred income tax liabilities | 47 | |||
Total liabilities | (110) | |||
Stockholders’ equity: | ||||
Accumulated other comprehensive loss | (4) | |||
Retained earnings | 216 | |||
Total stockholders’ equity | $ 212 | |||
[1] | Derived from audited financial statements. |
Revenues (Narrative) (Details)
Revenues (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 29, 2018 | Jun. 30, 2017 | Mar. 30, 2018 | |
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 1,156 | $ 1,175 | |
Revenue recognized from beginning contract liabilities | 848 | ||
Amortization expense from capitalized contract acquisition costs | 23 | ||
Capitalized contract costs, impairment loss | 0 | ||
Revenue, remaining performance obligation | 2,800 | ||
Total Enterprise Security | |||
Disaggregation of Revenue [Line Items] | |||
Revenue, remaining performance obligation | 1,747 | ||
Total Consumer Digital Safety | |||
Disaggregation of Revenue [Line Items] | |||
Revenue, remaining performance obligation | 1,053 | ||
Transferred at Point in Time | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 111 | ||
Transferred at Point in Time | Total Enterprise Security | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 99 | ||
Transferred at Point in Time | Total Consumer Digital Safety | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 12 | ||
Transferred over Time | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,045 | ||
Transferred over Time | Total Enterprise Security | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 457 | ||
Transferred over Time | Total Consumer Digital Safety | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 588 | ||
Other Current Liabilities | Total Enterprise Security | |||
Disaggregation of Revenue [Line Items] | |||
Rebate Reserves | 5 | ||
Other Current Liabilities | Total Consumer Digital Safety | |||
Disaggregation of Revenue [Line Items] | |||
Rebate Reserves | 11 | ||
Accounts Receivable | Total Enterprise Security | |||
Disaggregation of Revenue [Line Items] | |||
Rebate Reserves | $ 6 | ||
Accounts Receivable | Total Consumer Digital Safety | |||
Disaggregation of Revenue [Line Items] | |||
Rebate Reserves | $ 21 | ||
Calculated under Revenue Guidance in Effect before Topic 606 | Transferred at Point in Time | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 73 | ||
Calculated under Revenue Guidance in Effect before Topic 606 | Transferred at Point in Time | Total Enterprise Security | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 61 | ||
Calculated under Revenue Guidance in Effect before Topic 606 | Transferred at Point in Time | Total Consumer Digital Safety | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 12 | ||
Calculated under Revenue Guidance in Effect before Topic 606 | Transferred over Time | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,078 | ||
Calculated under Revenue Guidance in Effect before Topic 606 | Transferred over Time | Total Enterprise Security | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 490 | ||
Calculated under Revenue Guidance in Effect before Topic 606 | Transferred over Time | Total Consumer Digital Safety | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 588 | ||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 5 | ||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | Transferred at Point in Time | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 38 | ||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | Transferred at Point in Time | Total Enterprise Security | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 38 | ||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | Transferred at Point in Time | Total Consumer Digital Safety | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | ||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | Transferred over Time | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | (33) | ||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | Transferred over Time | Total Enterprise Security | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | (33) | ||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | Transferred over Time | Total Consumer Digital Safety | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 0 |
Revenues (Revenue, Remaining Pe
Revenues (Revenue, Remaining Performance Obligation) (Details) $ in Millions | 3 Months Ended |
Jun. 29, 2018USD ($) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total Remaining Performance Obligations | $ 2,800 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-06-30 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Percent Expected to be Recognized as Revenue | 77.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-06-30 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Percent Expected to be Recognized as Revenue | 15.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-06-30 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Percent Expected to be Recognized as Revenue | 7.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-06-30 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Percent Expected to be Recognized as Revenue | 1.00% |
Enterprise Security | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total Remaining Performance Obligations | $ 1,747 |
Enterprise Security | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-06-30 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Percent Expected to be Recognized as Revenue | 65.00% |
Expected timing of satisfaction, period | 1 year |
Enterprise Security | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-06-30 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Percent Expected to be Recognized as Revenue | 23.00% |
Expected timing of satisfaction, period | 1 year |
Enterprise Security | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-06-30 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Percent Expected to be Recognized as Revenue | 10.00% |
Expected timing of satisfaction, period | 1 year |
Enterprise Security | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-06-30 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Percent Expected to be Recognized as Revenue | 2.00% |
Expected timing of satisfaction, period | |
Consumer Digital Safety | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total Remaining Performance Obligations | $ 1,053 |
Consumer Digital Safety | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-06-30 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Percent Expected to be Recognized as Revenue | 96.00% |
Expected timing of satisfaction, period | 1 year |
Consumer Digital Safety | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-06-30 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Percent Expected to be Recognized as Revenue | 3.00% |
Expected timing of satisfaction, period | 1 year |
Consumer Digital Safety | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-06-30 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Percent Expected to be Recognized as Revenue | 1.00% |
Expected timing of satisfaction, period | 1 year |
Consumer Digital Safety | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-06-30 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Percent Expected to be Recognized as Revenue | 0.00% |
Expected timing of satisfaction, period |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Schedule of Changes in the Carrying Amount of Goodwill) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 29, 2018 | Jun. 30, 2017 | ||
Goodwill [Roll Forward] | |||
March 30, 2018 | [1] | $ 8,319 | |
Acquisitions | 6 | ||
Translation adjustments | (3) | ||
June 29, 2018 | 8,322 | ||
Net cash purchase price, acquisition | 5 | $ 8 | |
Enterprise Security | |||
Goodwill [Roll Forward] | |||
March 30, 2018 | 5,734 | ||
Acquisitions | 0 | ||
Translation adjustments | (2) | ||
June 29, 2018 | 5,732 | ||
Consumer Digital Safety | |||
Goodwill [Roll Forward] | |||
March 30, 2018 | 2,585 | ||
Acquisitions | 6 | ||
Translation adjustments | (1) | ||
June 29, 2018 | $ 2,590 | ||
[1] | Derived from audited financial statements. |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Schedule of Intangible Assets, Net) (Details) - USD ($) $ in Millions | Jun. 29, 2018 | Mar. 30, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 2,514 | $ 2,512 | |
Accumulated Amortization | (837) | (726) | |
Net Carrying Amount | 1,677 | 1,786 | |
Indefinite-lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 3,369 | 3,369 | |
Net Carrying Amount | 2,532 | 2,643 | [1] |
Trade Names | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets | 852 | 852 | |
In-process research and development | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets | 3 | 5 | |
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 1,462 | 1,462 | |
Accumulated Amortization | (409) | (357) | |
Net Carrying Amount | 1,053 | 1,105 | |
Developed technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 1,039 | 1,037 | |
Accumulated Amortization | (419) | (361) | |
Net Carrying Amount | 620 | 676 | |
Trade Names | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 13 | 13 | |
Accumulated Amortization | (9) | (8) | |
Net Carrying Amount | $ 4 | $ 5 | |
[1] | Derived from audited financial statements. |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (Schedule of Amortization Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 29, 2018 | Jun. 30, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of intangible assets | $ 53 | $ 59 |
Total | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of intangible assets | 111 | 114 |
Customer relationships | Operating expenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of intangible assets | 53 | 59 |
Developed technology | Cost of revenues | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of intangible assets | $ 58 | $ 55 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets (Schedule of Future Intangible Asset Amortization Expense) (Details) - USD ($) $ in Millions | Jun. 29, 2018 | Mar. 30, 2018 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remainder of 2019 | $ 330 | |
2,020 | 434 | |
2,021 | 323 | |
2,022 | 262 | |
2,023 | 220 | |
Thereafter | 108 | |
Net Carrying Amount | $ 1,677 | $ 1,786 |
Supplementary Information (Cash
Supplementary Information (Cash and Cash Equivalents) (Details) - USD ($) $ in Millions | Jun. 29, 2018 | Mar. 30, 2018 | Jun. 30, 2017 | Mar. 31, 2017 | |
Supplementary Information [Abstract] | |||||
Cash | $ 472 | $ 1,016 | |||
Cash equivalents | 1,529 | 758 | |||
Total cash and cash equivalents | $ 2,001 | $ 1,774 | [1] | $ 2,306 | $ 4,247 |
[1] | Derived from audited financial statements. |
Supplementary Information (Othe
Supplementary Information (Other Current Assets) (Details) - USD ($) $ in Millions | Jun. 29, 2018 | Mar. 31, 2018 | Mar. 30, 2018 | |
Supplementary Information [Abstract] | ||||
Prepaid expenses | $ 184 | $ 177 | ||
Income tax receivable and prepaid income taxes | 79 | $ 99 | 107 | |
Short-term deferred commissions | 87 | 86 | 94 | |
Assets held for sale | 26 | 26 | ||
Other | 125 | 118 | ||
Total other current assets | $ 501 | $ 506 | $ 522 | [1] |
[1] | Derived from audited financial statements. |
Supplementary Information (Narr
Supplementary Information (Narrative) (Details) $ in Millions | 1 Months Ended |
Oct. 31, 2018USD ($) | |
Subsequent Event | |
Subsequent Event [Line Items] | |
Proceeds from Sale of Productive Assets | $ 26 |
Supplementary Information (Prop
Supplementary Information (Property and Equipment) (Details) - USD ($) $ in Millions | Jun. 29, 2018 | Mar. 30, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Total property and equipment, gross | $ 1,984 | $ 1,990 | |
Accumulated depreciation and amortization | (1,226) | (1,212) | |
Total property and equipment, net | 758 | 778 | [1] |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment, gross | 65 | 66 | |
Computer hardware and software | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment, gross | 1,083 | 1,081 | |
Office furniture and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment, gross | 106 | 110 | |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment, gross | 365 | 365 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment, gross | 328 | 339 | |
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment, gross | $ 37 | $ 29 | |
[1] | Derived from audited financial statements. |
Supplementary Information (Ot_2
Supplementary Information (Other Long-term Assets) (Details) - USD ($) $ in Millions | Jun. 29, 2018 | Mar. 31, 2018 | Mar. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Cost method investments | $ 175 | $ 175 | ||
Equity method investment | 108 | 134 | ||
Long-term income tax receivable and prepaid income taxes | 29 | $ 29 | 61 | |
Deferred income tax assets | 828 | 828 | 46 | |
Long-term deferred commissions | 88 | 92 | 35 | |
Other | 80 | 75 | ||
Total other long-term assets | $ 1,308 | $ 1,333 | $ 526 | [1] |
[1] | Derived from audited financial statements. |
Supplementary Information (Shor
Supplementary Information (Short-term Contract Liabilities) (Details) - USD ($) $ in Millions | Jun. 29, 2018 | Mar. 31, 2018 | Mar. 30, 2018 | |
Supplementary Information [Abstract] | ||||
Deferred revenue | $ 1,686 | $ 2,368 | ||
Customer deposit liabilities | 451 | 0 | ||
Total short-term contract liabilities | $ 2,137 | $ 2,261 | $ 2,368 | [1] |
[1] | Derived from audited financial statements. |
Supplementary Information (Long
Supplementary Information (Long-term Income Taxes Payable) (Details) - USD ($) $ in Millions | Jun. 29, 2018 | Mar. 30, 2018 | |
Supplementary Information [Abstract] | |||
Deemed repatriation tax payable | $ 820 | $ 824 | |
Uncertain tax positions (including interest and penalties) | 292 | 302 | |
Total long-term income taxes payable | $ 1,112 | $ 1,126 | [1] |
[1] | Derived from audited financial statements. |
Supplementary Information (Ot_3
Supplementary Information (Other Income (Expense), Net) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 29, 2018 | Jun. 30, 2017 | |
Supplementary Information [Abstract] | ||
Interest income | $ 7 | $ 6 |
Loss from equity interest | (26) | 0 |
Foreign exchange loss | (9) | (14) |
Other | 9 | 2 |
Total other expense, net | $ (19) | $ (6) |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Measurements (Schedule of the Carrying Value of Assets Measured at Fair Value on a Recurring Basis) (Details) - Recurring - USD ($) $ in Millions | Jun. 29, 2018 | Mar. 30, 2018 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | $ 1,853 | $ 1,146 |
Fair Value | Cash equivalents: | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 1,418 | 679 |
Fair Value | Cash equivalents: | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 111 | 79 |
Fair Value | Short-term investments: | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 6 | 12 |
Fair Value | Short-term investments: | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 318 | 374 |
Fair Value | Short-term investments: | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 2 |
Reported Value Measurement | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 1,418 | 679 |
Reported Value Measurement | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 435 | 467 |
Reported Value Measurement | Cash equivalents: | Level 1 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 1,418 | 679 |
Reported Value Measurement | Cash equivalents: | Level 1 | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Reported Value Measurement | Cash equivalents: | Level 2 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Reported Value Measurement | Cash equivalents: | Level 2 | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 111 | 79 |
Reported Value Measurement | Short-term investments: | Level 1 | Certificates of deposit | ||
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 | Corporate bonds | ||
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 | 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 | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 6 | 12 |
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 | 318 | 374 |
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 | $ 2 |
Financial Instruments and Fai_4
Financial Instruments and Fair Value Measurements (Schedule of Debt Maturities) (Details) $ in Millions | Jun. 29, 2018USD ($) |
Fair Value Disclosures [Abstract] | |
Due in one year or less | $ 88 |
Due after one year through five years | 236 |
Total | $ 324 |
Financial Instruments and Fai_5
Financial Instruments and Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 29, 2018 | Jun. 30, 2017 | Mar. 30, 2018 | |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Non-marketable equity investments | $ 175 | $ 175 | |
Equity method investment | 108 | 134 | |
Loss from equity interest | 26 | $ 0 | |
Level 2 | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Fair value of debt | 3,900 | $ 3,900 | |
Other Income | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Loss from equity interest | $ 26 |
Financial Instruments and Fai_6
Financial Instruments and Fair Value Measurements (Equity Method Investment, Summarized Financial Information, Profit (Loss)) (Details) $ in Millions | 3 Months Ended |
Jun. 29, 2018USD ($) | |
Fair Value Disclosures [Abstract] | |
Revenue | $ 66 |
Gross profit | 53 |
Net loss | $ (82) |
Debt (Summary of Components of
Debt (Summary of Components of Debt) (Details) - USD ($) $ in Millions | Jun. 29, 2018 | Mar. 30, 2018 |
Debt Instrument [Line Items] | ||
Total principal amount | $ 5,100 | $ 5,100 |
Less: unamortized discount and issuance costs | (68) | (74) |
Total debt | 5,032 | 5,026 |
Senior Notes | 4.2% Senior Notes due September 15, 2020 | ||
Debt Instrument [Line Items] | ||
Total principal amount | $ 750 | 750 |
Stated interest rate (as a percent) | 4.20% | |
Effective interest rate | 4.25% | |
Senior Notes | 3.95% Senior Notes due June 15, 2022 | ||
Debt Instrument [Line Items] | ||
Total principal amount | $ 400 | 400 |
Stated interest rate (as a percent) | 3.95% | |
Effective interest rate | 4.05% | |
Senior Notes | 5.0% Senior Notes due April 15, 2025 | ||
Debt Instrument [Line Items] | ||
Total principal amount | $ 1,100 | 1,100 |
Stated interest rate (as a percent) | 5.00% | |
Effective interest rate | 5.23% | |
Unsecured Debt | Senior Term Loan A-2 due August 1, 2019 | ||
Debt Instrument [Line Items] | ||
Total principal amount | $ 600 | $ 600 |
Interest rate | 3.88% | 3.31% |
Unsecured Debt | Senior Term Loan A-5 due August 1, 2021 | ||
Debt Instrument [Line Items] | ||
Total principal amount | $ 500 | $ 500 |
Interest rate | 4.08% | 3.54% |
Convertible Debt | 2.5% Convertible Senior Notes due April 1, 2021 | ||
Debt Instrument [Line Items] | ||
Total principal amount | $ 500 | $ 500 |
Stated interest rate (as a percent) | 2.50% | |
Effective interest rate | 3.76% | |
Convertible Debt | 2.0% Convertible Senior Notes due August 15, 2021 | ||
Debt Instrument [Line Items] | ||
Total principal amount | $ 1,250 | $ 1,250 |
Stated interest rate (as a percent) | 2.00% | |
Effective interest rate | 2.66% |
Debt (Maturities of Long-term D
Debt (Maturities of Long-term Debt) (Details) - USD ($) $ in Millions | Jun. 29, 2018 | Mar. 30, 2018 |
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
2,020 | $ 600 | |
2,021 | 1,250 | |
2,022 | 1,750 | |
2,023 | 400 | |
Thereafter | 1,100 | |
Total future maturities of debt | $ 5,100 | $ 5,100 |
Debt (Summary of Interest Expen
Debt (Summary of Interest Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 29, 2018 | Jun. 30, 2017 | |
Debt Instrument [Line Items] | ||
Contractual interest expense | $ 9 | $ 9 |
Amortization of debt discount and issuance costs | $ 4 | $ 4 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) | 3 Months Ended | |
Jun. 29, 2018 | Mar. 30, 2018 | |
Debt Instrument [Line Items] | ||
Stock closing price (in dollars per share) | $ 20.65 | |
2.5% Convertible Senior Notes due April 1, 2021 | ||
Debt Instrument [Line Items] | ||
If-converted value in excess of principal | $ 116,000,000 | |
2.0% Convertible Senior Notes due August 15, 2021 | ||
Debt Instrument [Line Items] | ||
If-converted value in excess of principal | $ 15,000,000 | |
Convertible Debt | 2.5% Convertible Senior Notes due April 1, 2021 | ||
Debt Instrument [Line Items] | ||
Stated interest rate (as a percent) | 2.50% | |
Convertible Debt | 2.0% Convertible Senior Notes due August 15, 2021 | ||
Debt Instrument [Line Items] | ||
Stated interest rate (as a percent) | 2.00% | |
Convertible Debt | 2.5% Convertible Senior Notes Due April 1, 2021 | ||
Debt Instrument [Line Items] | ||
Stated interest rate (as a percent) | 2.50% | |
Convertible Debt | 2.0% Convertible Senior Notes Due August 15, 2021 | ||
Debt Instrument [Line Items] | ||
Stated interest rate (as a percent) | 2.00% | |
Revolving Credit Facility | Line of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 1,000,000,000 | |
Borrowings outstanding | $ 0 | $ 0 |
Derivatives (Details)
Derivatives (Details) - Foreign Exchange Forward - Not Designated as Hedging Instrument - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 29, 2018 | Jun. 30, 2017 | Mar. 30, 2018 | |
Other Income | |||
Derivatives, Fair Value [Line Items] | |||
Gain (loss) on derivative | $ (36) | $ 10 | |
Foreign exchange forward contracts purchased | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount | 856 | $ 697 | |
Foreign exchange forward contracts sold | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount | $ 171 | $ 151 |
Restructuring, Transition and_3
Restructuring, Transition and Other Costs (Schedule of the Restructuring and Separation Liabilities Summary) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 29, 2018 | Jun. 30, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||
Severance and termination benefit costs | $ 12 | $ 27 |
Other exit and disposal costs | 9 | 32 |
Asset write-offs | 2 | 1 |
Transition costs | 73 | 28 |
Total restructuring, transition and other costs | 96 | $ 88 |
Fiscal 2017 Plan: | ||
Restructuring Reserve [Roll Forward] | ||
March 30, 2018 | 25 | |
Additional Accruals, Net of Adjustments | 21 | |
Cash Payments | (20) | |
June 29, 2018 | 26 | |
Cumulative Incurred to Date | 289 | |
Fiscal 2017 Plan: | Severance and termination benefit costs | ||
Restructuring Reserve [Roll Forward] | ||
March 30, 2018 | 10 | |
Additional Accruals, Net of Adjustments | 12 | |
Cash Payments | (12) | |
June 29, 2018 | 10 | |
Cumulative Incurred to Date | 149 | |
Fiscal 2017 Plan: | Other exit and disposal costs | ||
Restructuring Reserve [Roll Forward] | ||
March 30, 2018 | 15 | |
Additional Accruals, Net of Adjustments | 9 | |
Cash Payments | (8) | |
June 29, 2018 | 16 | |
Cumulative Incurred to Date | $ 140 |
Income Taxes (Schedule of Effec
Income Taxes (Schedule of Effective Tax Rate) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 29, 2018 | Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | ||
Income (loss) from continuing operations before income taxes | $ (69) | $ (134) |
Income tax expense (benefit) | $ (4) | $ (24) |
Effective tax rate (as a percent) | 6.00% | 18.00% |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 29, 2018 | Jun. 30, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Tax benefits, effect of Tax Cuts and Jobs Act of 2017 | $ 5 | |
Decrease in income tax provision related to uncertain tax positions in the next 12 months | 13 | |
Discontinued Operations, Disposed of by Sale | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Income tax expense | $ 0 | $ 41 |
Stockholders' Equity (Summary o
Stockholders' Equity (Summary of Dividends Declared and Paid) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 29, 2018 | Jun. 30, 2017 | |
Stockholders' Equity Note [Abstract] | ||
Dividends declared and paid | $ 47 | $ 46 |
Dividend equivalents paid | 13 | 20 |
Total dividends and dividend equivalents paid | $ 60 | $ 66 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | Nov. 01, 2018 | Aug. 02, 2018 | Jun. 29, 2018 | Jun. 30, 2017 |
Class of Stock [Line Items] | ||||
Dividends declared per common share (in dollars per share) | $ 0.075 | $ 0.075 | ||
Remaining authorized repurchase amount | $ 800 | |||
Subsequent Event | Common Stock | ||||
Class of Stock [Line Items] | ||||
Dividends declared per common share (in dollars per share) | $ 0.075 | $ 0.075 |
Stockholders' Equity (Schedule
Stockholders' Equity (Schedule of Accumulated Other Comprehensive Income) (Details) $ in Millions | 3 Months Ended | |
Jun. 29, 2018USD ($) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
March 30, 2018 | $ 5,023 | [1] |
June 29, 2018 | 5,918 | |
Total | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
March 30, 2018 | 4 | |
Other comprehensive loss before reclassification | (24) | |
June 29, 2018 | (20) | |
Foreign Currency Translation Adjustments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
March 30, 2018 | 8 | |
Other comprehensive loss before reclassification | (24) | |
June 29, 2018 | (16) | |
Unrealized Loss on Available-For-Sale Securities | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
March 30, 2018 | (4) | |
Other comprehensive loss before reclassification | 0 | |
June 29, 2018 | $ (4) | |
[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 | |
Jun. 29, 2018 | Jun. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | $ 113 | $ 147 |
Income tax benefit for stock-based compensation expense | (26) | (51) |
Cost of revenues | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 5 | 6 |
Sales and marketing | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 31 | 43 |
Research and development | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 39 | 41 |
General and administrative | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | $ 38 | $ 57 |
Stock-Based Compensation (Infor
Stock-Based Compensation (Information related to stock-based compensation) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | ||
Jun. 29, 2018 | Jun. 30, 2017 | Mar. 30, 2018 | |
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average fair value per grant (in usd per share) | $ 21.71 | $ 29.91 | |
Awards granted (in shares) (approximately for 2018 Bonuses) | 10 | 7 | |
Total fair value of awards released | $ 167 | $ 170 | |
Outstanding and unvested (in shares) | 20 | 23 | |
RSUs | Certain Employees | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards granted (in shares) (approximately for 2018 Bonuses) | 1 | ||
PRUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average fair value per grant (in usd per share) | $ 0 | $ 33.96 | |
Awards granted (in shares) (approximately for 2018 Bonuses) | 0 | 3 | |
Total fair value of awards released | $ 8 | $ 21 | |
Outstanding and unvested (in shares) | 3 | 8 | |
Vested but unreleased shares (in shares) | 12 | ||
Stock options: | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total intrinsic value of stock options exercised | $ 7 | $ 17 | |
Outstanding and unvested (in shares) | 13 | 18 | |
Restricted stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding and unvested (in shares) | 1 | 0 | |
Liability-Classified awards settled in shares | Accrued Compensation and Benefits | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Liability current | $ 8 | $ 25 |
Stock-Based Compensation (Sch_2
Stock-Based Compensation (Schedule of Unrecognized Compensation Costs) (Details) $ in Millions | 3 Months Ended |
Jun. 29, 2018USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Compensation cost not yet recognized | $ 482 |
RSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Compensation cost not yet recognized | $ 329 |
Compensation cost not yet recognized, period for recognition (in years) | 2 years 1 month 4 days |
PRUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Compensation cost not yet recognized | $ 50 |
Compensation cost not yet recognized, period for recognition (in years) | 1 year 5 months 13 days |
Stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Compensation cost not yet recognized | $ 27 |
Compensation cost not yet recognized, period for recognition (in years) | 1 year |
Restricted stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Compensation cost not yet recognized | $ 32 |
Compensation cost not yet recognized, period for recognition (in years) | 2 years 1 month 4 days |
Liability-Classified awards settled in shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Compensation cost not yet recognized | $ 40 |
Compensation cost not yet recognized, period for recognition (in years) | 1 year 4 months 22 days |
Employee Stock Purchase Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Compensation cost not yet recognized | $ 4 |
Compensation cost not yet recognized, period for recognition (in years) | 2 months 11 days |
Net Income Per Share (Schedule
Net Income Per Share (Schedule of Components of Net Income Per Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | ||
Jun. 29, 2018 | Jun. 30, 2017 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Loss from continuing operations | $ (65) | $ (110) | |
Income (loss) from discontinued operations, net of income taxes | 5 | (23) | |
Net loss | $ (60) | $ (133) | |
Income (loss) per share - basic and diluted: | |||
Continuing operations (in dollars per share) | $ (0.10) | $ (0.18) | |
Discontinued operations (in dollars per share) | 0.01 | (0.04) | |
Net loss per share - basic and diluted (in dollars per share) | [1] | $ (0.10) | $ (0.22) |
Weighted-average shares outstanding - basic and diluted (in shares) | 624 | 609 | |
Anti-dilutive shares excluded from diluted net income per share calculation (in shares) | 146 | 144 | |
Convertible debt | |||
Income (loss) per share - basic and diluted: | |||
Anti-dilutive shares excluded from diluted net income per share calculation (in shares) | 91 | 91 | |
Employee equity awards | |||
Income (loss) per share - basic and diluted: | |||
Anti-dilutive shares excluded from diluted net income per share calculation (in shares) | 55 | 53 | |
[1] | Net loss per share amounts may not add due to rounding. |
Net Income Per Share (Narrative
Net Income Per Share (Narrative) (Details) - Convertible Debt | Jun. 29, 2018$ / shares |
2.5% Convertible Senior Notes due April 1, 2021 | |
Debt Instrument [Line Items] | |
Stated interest rate (as a percent) | 2.50% |
2.0% Convertible Senior Notes due August 15, 2021 | |
Debt Instrument [Line Items] | |
Stated interest rate (as a percent) | 2.00% |
Minimum | 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% |
Minimum | 2.0% Convertible Senior 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% |
Segment and Geographical Info_3
Segment and Geographical Information (Narrative) (Details) $ in Millions | 3 Months Ended | |
Jun. 29, 2018USD ($)segment | Jun. 30, 2017USD ($) | |
Segment Reporting [Abstract] | ||
Number of reportable segments | segment | 2 | |
Segment Reporting Information [Line Items] | ||
Net revenues | $ 1,156 | $ 1,175 |
Intersegment Eliminations | ||
Segment Reporting Information [Line Items] | ||
Net revenues | $ 0 | $ 0 |
(Schedule of Reportable Segment
(Schedule of Reportable Segment Data) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 29, 2018 | Jun. 30, 2017 | |
Segment Reporting Information [Line Items] | ||
Net revenues | $ 1,156 | $ 1,175 |
Operating income | 2 | (44) |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 1,156 | 1,175 |
Operating income | 319 | 324 |
Operating Segments | Total Enterprise Security | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 556 | 646 |
Operating income | 56 | 94 |
Operating Segments | Consumer Digital Safety: | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 600 | 529 |
Operating income | $ 263 | $ 230 |
Segment and Geographical Info_4
Segment and Geographical Information (Reconciliation of Total Segment Operating Income to Total Consolidated Operating Income) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 29, 2018 | Jun. 30, 2017 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Operating income (loss) | $ 2 | $ (44) |
Stock-based compensation expense | 113 | 147 |
Amortization of intangible assets | 53 | 59 |
Restructuring, transition and other costs | 96 | 88 |
Operating Segments | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Operating income (loss) | 319 | 324 |
Segment Reconciling Items | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Stock-based compensation expense | 113 | 147 |
Amortization of intangible assets | 111 | 114 |
Restructuring, transition and other costs | 96 | 88 |
Acquisition-related costs | 2 | 19 |
Other Nonrecurring (Income) Expense | $ (5) | $ 0 |
Segment and Geographical Info_5
Segment and Geographical Information (Schedule of Product Revenue Information) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 29, 2018 | Jun. 30, 2017 | |
Segment Reporting Information [Line Items] | ||
Net revenues | $ 1,156 | $ 1,175 |
Total Enterprise Security | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 556 | 646 |
Endpoint and information protection | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 253 | 237 |
Network and web security | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 173 | 172 |
Website security and public key infrastructure | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 0 | 103 |
Other products and services | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 130 | 134 |
Total Consumer Digital Safety | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 600 | 529 |
Consumer security | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 369 | 371 |
Identity and information protection | ||
Segment Reporting Information [Line Items] | ||
Net revenues | $ 231 | $ 158 |
Segment and Geographical Info_6
Segment and Geographical Information (Schedule of Revenue by Geographical Location) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 29, 2018 | Jun. 30, 2017 | |
Revenue from External Customer [Line Items] | ||
Net revenues | $ 1,156 | $ 1,175 |
Americas | ||
Revenue from External Customer [Line Items] | ||
Net revenues | 734 | 736 |
EMEA | ||
Revenue from External Customer [Line Items] | ||
Net revenues | 243 | 250 |
APJ | ||
Revenue from External Customer [Line Items] | ||
Net revenues | 179 | 189 |
U.S. | ||
Revenue from External Customer [Line Items] | ||
Net revenues | $ 688 | $ 679 |
Segment and Geographical Info_7
Segment and Geographical Information (Schedule of Long-lived Assets by Geographic Location) (Details) - USD ($) $ in Millions | Jun. 29, 2018 | Mar. 30, 2018 | |
Revenue from External Customer [Line Items] | |||
Total cash, cash equivalent and short-term investments | $ 2,325 | $ 2,162 | |
Total property and equipment, net | 758 | 778 | [1] |
U.S. | |||
Revenue from External Customer [Line Items] | |||
Total cash, cash equivalent and short-term investments | 1,627 | 858 | |
Total property and equipment, net | 663 | 677 | |
International | |||
Revenue from External Customer [Line Items] | |||
Total cash, cash equivalent and short-term investments | 698 | 1,304 | |
Total property and equipment, net | $ 95 | $ 101 | |
[1] | Derived from audited financial statements. |
Segment and Geographical Info_8
Segment and Geographical Information (Schedule of Revenue by Major Customers) (Details) - Customer Concentration Risk | 3 Months Ended | 12 Months Ended |
Jun. 29, 2018 | Mar. 30, 2018 | |
Customer A | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk, percentage | 15.00% | 22.00% |
Customer B | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk, percentage | 15.00% |
Commitments and Contingencies_2
Commitments and Contingencies (Schedule of Future Minimum Operating Lease Payments) (Details) $ in Millions | Jun. 29, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Remainder of 2019 | $ 66 |
2,020 | 50 |
2,021 | 42 |
2,022 | 30 |
2,023 | 21 |
Thereafter | 43 |
Total minimum future lease payments | 252 |
Sublease income | (13) |
Total minimum future payments, net | $ 239 |
Commitments and Contingencies_3
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 69 Months Ended | ||
Jun. 29, 2018 | Jun. 30, 2017 | Sep. 30, 2012 | Jan. 31, 2014 | |
Loss Contingencies [Line Items] | ||||
Purchase obligation | $ 619 | |||
Deemed repatriation taxes | 892 | |||
Net revenues | 1,156 | $ 1,175 | ||
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] | ||||
Estimated loss | $ 25 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event - USD ($) $ in Millions | Aug. 02, 2018 | Sep. 30, 2018 |
Subsequent Event [Line Items] | ||
Long-term purchase commitment, period | 5 years | |
Long-term purchase commitment, amount | $ 500 | |
Severance and termination benefit costs | ||
Subsequent Event [Line Items] | ||
Number of positions expected to be eliminated, percent | 8.00% | |
Expected restructuring costs | $ 50 |