Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Dec. 28, 2018 | Jan. 28, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Dec. 28, 2018 | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q3 | |
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 | 639,217,123 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Dec. 28, 2018 | Mar. 30, 2018 | [1] |
Current assets: | |||
Cash and cash equivalents | $ 2,309 | $ 1,774 | |
Short-term investments | 270 | 388 | |
Accounts receivable, net | 723 | 809 | |
Other current assets | 422 | 522 | |
Total current assets | 3,724 | 3,493 | |
Property and equipment, net | 791 | 778 | |
Intangible assets, net | 2,329 | 2,643 | |
Goodwill | 8,344 | 8,319 | |
Other long-term assets | 1,268 | 526 | |
Total assets | 16,456 | 15,759 | |
Current liabilities: | |||
Accounts payable | 201 | 168 | |
Accrued compensation and benefits | 226 | 262 | |
Current portion of long-term debt | 598 | 0 | |
Contract liabilities | 2,214 | 2,368 | |
Other current liabilities | 404 | 372 | |
Total current liabilities | 3,643 | 3,170 | |
Long-term debt | 4,447 | 5,026 | |
Long-term contract liabilities | 701 | 735 | |
Deferred income tax liabilities | 626 | 592 | |
Long-term income taxes payable | 1,055 | 1,126 | |
Other long-term liabilities | 78 | 87 | |
Total liabilities | 10,550 | 10,736 | |
Commitments and contingencies (Note 16) | |||
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; 639 and 624 shares issued and outstanding as of December 28, 2018 and March 30, 2018, respectively | 4,804 | 4,691 | |
Accumulated other comprehensive income (loss) | (14) | 4 | |
Retained earnings | 1,116 | 328 | |
Total stockholders’ equity | 5,906 | 5,023 | |
Total liabilities and stockholders’ equity | $ 16,456 | $ 15,759 | |
[1] | Derived from audited financial statements. |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 28, 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) | 639,000,000 | 624,000,000 |
Common stock, number of shares outstanding (in shares) | 639,000,000 | 624,000,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Dec. 28, 2018 | Dec. 29, 2017 | Dec. 28, 2018 | Dec. 29, 2017 | ||
Income Statement [Abstract] | |||||
Net revenues | $ 1,211 | $ 1,209 | $ 3,542 | $ 3,624 | |
Cost of revenues | 266 | 249 | 771 | 768 | |
Gross profit | 945 | 960 | 2,771 | 2,856 | |
Operating expenses: | |||||
Sales and marketing | 364 | 372 | 1,115 | 1,239 | |
Research and development | 209 | 225 | 677 | 699 | |
General and administrative | 98 | 122 | 345 | 431 | |
Amortization of intangible assets | 52 | 52 | 156 | 166 | |
Restructuring, transition and other costs | 53 | 93 | 205 | 278 | |
Total operating expenses | 776 | 864 | 2,498 | 2,813 | |
Operating income | 169 | 96 | 273 | 43 | |
Interest expense | (53) | (58) | (157) | (199) | |
Gain on divestiture | 0 | 658 | 0 | 658 | |
Other income (expense), net | (19) | 9 | (60) | 0 | |
Income from continuing operations before income taxes | 97 | 705 | 56 | 502 | |
Income tax expense (benefit) | 38 | (606) | 70 | (683) | |
Income (loss) from continuing operations | 59 | 1,311 | (14) | 1,185 | |
Income from discontinued operations, net of income taxes | 6 | 31 | 11 | 12 | |
Net income (loss) | $ 65 | $ 1,342 | $ (3) | $ 1,197 | |
Income (loss) per share - basic: | |||||
Continuing operations (in dollars per share) | $ 0.09 | $ 2.12 | $ (0.02) | $ 1.93 | |
Discontinued operations (in dollars per share) | 0.01 | 0.05 | 0.02 | 0.02 | |
Net income (loss) per share - basic | 0.10 | 2.17 | 0 | 1.95 | |
Income (loss) per share - diluted: | |||||
Continuing operations (in dollars per share) | 0.09 | 1.97 | (0.02) | 1.78 | |
Discontinued operations (in dollars per share) | 0.01 | 0.05 | 0.02 | 0.02 | |
Net loss per share - diluted (in dollars per share) | [1] | $ 0.10 | $ 2.01 | $ 0 | $ 1.80 |
Weighted-average shares outstanding: | |||||
Weighted-average shares outstanding - basic | 637 | 619 | 631 | 614 | |
Weighted-average shares outstanding - diluted | 655 | 667 | 631 | 665 | |
Cash dividends declared per common share (in dollars per share) | $ 0.075 | $ 0.075 | $ 0.225 | $ 0.225 | |
[1] | Net income per share amounts may not add due to rounding. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 28, 2018 | Dec. 29, 2017 | Dec. 28, 2018 | Dec. 29, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 65 | $ 1,342 | $ (3) | $ 1,197 |
Foreign currency translation adjustments: | ||||
Translation adjustments | 2 | 6 | (21) | 4 |
Reclassification adjustments for net loss included in net income (loss) | 0 | 8 | 0 | 5 |
Net foreign currency translation adjustments | 2 | 14 | (21) | 9 |
Unrealized gain (loss) on available-for-sale securities: | ||||
Unrealized gain (loss) | 1 | (2) | 1 | (2) |
Reclassification adjustment for gain included in net income (loss) | 0 | (4) | 0 | (4) |
Net unrealized gain (loss) on available-for-sale securities | 1 | (6) | 1 | (6) |
Other comprehensive income from equity method investee | 0 | 0 | 2 | 0 |
Other comprehensive income (loss), net of taxes | 3 | 8 | (18) | 3 |
Comprehensive income (loss) | $ 68 | $ 1,350 | $ (21) | $ 1,200 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Dec. 28, 2018 | Dec. 29, 2017 | |
OPERATING ACTIVITIES: | ||
Net income (loss) | $ (3) | $ 1,197 |
Income from discontinued operations, net of income taxes | (11) | (12) |
Adjustments: | ||
Amortization and depreciation | 457 | 485 |
Impairments of long-lived assets | 8 | 47 |
Stock-based compensation expense | 265 | 448 |
Deferred income taxes | (18) | (1,821) |
Gain on divestiture | 0 | (658) |
Other | 52 | 37 |
Changes in operating assets and liabilities, net of acquisitions and divestiture: | ||
Accounts receivable, net | 97 | (38) |
Accounts payable | 35 | 5 |
Accrued compensation and benefits | (26) | (53) |
Contract liabilities | 70 | 187 |
Income taxes payable | (17) | 954 |
Other assets | 1 | (12) |
Other liabilities | 38 | (85) |
Net cash provided by continuing operating activities | 948 | 681 |
Net cash provided by discontinued operating activities | 0 | 3 |
Net cash provided by operating activities | 948 | 684 |
INVESTING ACTIVITIES: | ||
Additions to property and equipment | (153) | (105) |
Payments for acquisitions, net of cash acquired | (41) | (402) |
Proceeds from maturities and sales of short-term investments | 119 | 25 |
Purchases of short-term investments | 0 | (408) |
Proceeds from divestiture, net of cash contributed | 0 | 946 |
Proceeds from sale of property | 26 | 0 |
Other | (12) | (20) |
Net cash provided by (used in) investing activities | (61) | 36 |
FINANCING ACTIVITIES: | ||
Repayments of debt | 0 | (2,640) |
Net proceeds from sales of common stock under employee stock incentive plans | 8 | 83 |
Tax payments related to restricted stock units | (168) | (97) |
Dividends and dividend equivalents paid | (169) | (163) |
Payment for dissenting LifeLock shareholder settlement | 0 | (68) |
Net cash used in financing activities | (329) | (2,885) |
Effect of exchange rate fluctuations on cash and cash equivalents | (23) | 60 |
Change in cash and cash equivalents | 535 | (2,105) |
Beginning cash and cash equivalents | 1,774 | 4,247 |
Ending cash and cash equivalents | $ 2,309 | $ 2,142 |
Description of Business and Sig
Description of Business and Significant Accounting Policies | 9 Months Ended |
Dec. 28, 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 and nine months ended December 28, 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 and nine -month periods in this report relate to fiscal periods ended December 28, 2018 and December 29, 2017 . The nine months ended December 28, 2018 and December 29, 2017 each consisted of 39 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 nine months ended December 28, 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 | 9 Months Ended |
Dec. 28, 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 and nine months ended December 28, 2018 , as a result of the adoption of the new revenue recognition guidance, our net revenue increased $17 million and $26 million , respectively. Our operating expenses increased $1 million during the three months ended December 28, 2018 and decreased $10 million during the nine months ended December 28, 2018 . The effects of the adoption of the new revenue recognition guidance on our December 28, 2018 Condensed Consolidated Balance Sheets were as follows: As of December 28, 2018 (In millions) As Reported Balances Without Adoption of New Standard Effect of Change Accounts receivable, net $ 723 $ 670 $ 53 Other current assets (1) $ 422 $ 410 $ 12 Other long-term assets (2) $ 1,268 $ 1,219 $ 49 Total assets $ 16,456 $ 16,342 $ 114 Short-term contract liabilities $ 2,214 $ 2,310 $ (96 ) Other current liabilities $ 404 $ 371 $ 33 Long-term contract liabilities $ 701 $ 797 $ (96 ) Deferred income tax liabilities $ 626 $ 579 $ 47 Total liabilities $ 10,550 $ 10,662 $ (112 ) Accumulated other comprehensive loss $ (14 ) $ (8 ) $ (6 ) Retained earnings $ 1,116 $ 884 $ 232 Total stockholders’ equity $ 5,906 $ 5,680 $ 226 (1) As reported includes short-term deferred commissions of $99 million . The balance without adoption of new standard includes short-term deferred commissions of $90 million . (2) As reported includes long-term deferred commissions of $92 million . The balance without adoption of new standard includes long-term deferred commissions of $44 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 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 and early adoption is permitted. We expect to adopt the new guidance on a modified retrospective basis in our first quarter of fiscal 2020. We have selected and are in the process of implementing a lease accounting system and finalizing our accounting policy and use of optional practical expedients. We are continuing to evaluate 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. Internal-Use Software. In August 2018, the FASB issued new guidance that clarifies the accounting for implementation costs in a cloud computing arrangement. The new guidance aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The standard will be effective for us in our first quarter of fiscal 2021, with early adoption permitted. We are currently evaluating the adoption date and the impact of the adoption of this guidance on our Consolidated Financial Statements and disclosures. 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 | 9 Months Ended |
Dec. 28, 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 $8 million recorded in Other current liabilities as of December 28, 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 December 28, 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 are 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 December 28, 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 $ 144 $ 91 $ 53 Products and services transferred over time $ 465 $ 502 $ (37 ) Consumer Digital Safety: Products and services transferred at a point in time $ 12 $ 12 $ — Products and services transferred over time $ 590 $ 589 $ 1 Total Products and services transferred at a point in time $ 156 $ 103 $ 53 Products and services transferred over time $ 1,055 $ 1,091 $ (36 ) The following table provides our revenue disaggregated by the timing of recognition under both the new guidance and the legacy guidance during the nine months ended December 28, 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 $ 353 $ 223 $ 130 Products and services transferred over time $ 1,386 $ 1,490 $ (104 ) Consumer Digital Safety: Products and services transferred at a point in time $ 36 $ 36 $ — Products and services transferred over time $ 1,767 $ 1,767 $ — Total Products and services transferred at a point in time $ 389 $ 259 $ 130 Products and services transferred over time $ 3,153 $ 3,257 $ (104 ) 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 December 28, 2018 , we recognized $831 million of revenue from our beginning third quarter of fiscal 2019 contract liabilities balance. During the nine months ended December 28, 2018 , we recognized $1,954 million of revenue from our beginning fiscal 2019 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 and nine months ended December 28, 2018 , we recognized $25 million and $72 million , respectively, of amortization expense of capitalized contract acquisition costs. There were no impairment losses recognized during the periods. 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 December 28, 2018 , we had $2,959 million 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 $ 1,920 65 % 24 % 10 % 2 % Consumer Digital Safety 1,039 96 % 3 % 1 % — % Total $ 2,959 76 % 16 % 7 % 1 % Percentages may not add up to 100% due to rounding. |
Acquisitions and Divestiture
Acquisitions and Divestiture | 9 Months Ended |
Dec. 28, 2018 | |
Business Combinations [Abstract] | |
Acquisitions and Divestiture | Acquisitions and Divestiture Fiscal 2019 acquisitions During the nine months ended December 28, 2018 , we completed acquisitions of companies for an aggregate purchase price of $42 million , net of $3 million cash acquired. The purchase prices were primarily allocated to goodwill and intangible assets. Fiscal 2018 acquisitions In July 2017, we completed our acquisitions of Israel-based Fireglass Ltd. and Skycure Ltd. The total aggregate consideration for these acquisitions, primarily consisting of cash, was $345 million , net of $15 million cash acquired. In addition, during the nine months ended December 29, 2017 , we completed acquisitions of other companies for an aggregate purchase price of $66 million , net of cash acquired. Pro forma results of operations for our fiscal 2019 and fiscal 2018 acquisitions have not been presented because they were not material to our consolidated results of operations, either individually or in the aggregate. Fiscal 2018 divestiture On October 31, 2017, we completed the sale of our website security (“WSS”) and public key infrastructure (“PKI”) solutions in our Enterprise Security segment to DigiCert Parent Inc. (“DigiCert”) and received aggregate consideration of $1.1 billion , consisting of approximately $960 million in cash and shares of common stock representing an approximate 28% interest in the outstanding common stock of DigiCert valued at $160 million as of October 31, 2017. During our fourth quarter of fiscal 2018, the cash consideration was adjusted to $951 million as a result of sales price adjustments. As of October 31, 2017, our WSS and PKI solutions had net assets of $450 million . In addition, we had $8 million in cumulative currency translation losses related to subsidiaries that were sold, which was reclassified from Accumulated other comprehensive income (loss) to the gain on divestiture. We incurred direct costs of $8 million , which was netted against the gain on divestiture. During our third quarter of fiscal 2018, we recognized a gain on divestiture of $658 million , consisting of a $7 million gain on the sale of a short-term investment that was included in the transaction and a $651 million gain on the sale of other assets and liabilities. During our fourth quarter of fiscal 2018, the total gain on sale was adjusted to $653 million as a result of sales price adjustments. The tax expense on the gain on divestiture was $123 million . Income before income taxes for our WSS and PKI solutions during the three and nine months ended December 29, 2017 was $8 million and $66 million , respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Dec. 28, 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 24 6 30 Translation adjustments (2 ) (3 ) (5 ) Balance as of December 28, 2018 $ 5,756 $ 2,588 $ 8,344 Intangible assets, net December 28, 2018 March 30, 2018 (In millions) Gross Accumulated Net Gross Accumulated Net Customer relationships $ 1,466 $ (507 ) $ 959 $ 1,462 $ (357 ) $ 1,105 Developed technology 1,025 (513 ) 512 1,037 (361 ) 676 Finite-lived trade names and other 13 (9 ) 4 13 (8 ) 5 Total finite-lived intangible assets 2,504 (1,029 ) 1,475 2,512 (726 ) 1,786 Indefinite-lived trade names 852 — 852 852 — 852 In-process research and development 2 — 2 5 — 5 Total intangible assets $ 3,358 $ (1,029 ) $ 2,329 $ 3,369 $ (726 ) $ 2,643 Amortization expense for purchased intangible assets is summarized below: Three Months Ended Nine Months Ended Statements of Operations Classification (In millions) December 28, December 29, December 28, December 29, Customer relationships and other $ 52 $ 52 $ 156 $ 166 Operating expenses Developed technology 59 59 176 175 Cost of revenues Total $ 111 $ 111 $ 332 $ 341 As of December 28, 2018 , future amortization expense related to intangible assets that have finite lives is as follows by fiscal year: (In millions) December 28, Remainder of 2019 $ 110 2020 437 2021 327 2022 266 2023 223 Thereafter 112 Total $ 1,475 |
Supplementary Information
Supplementary Information | 9 Months Ended |
Dec. 28, 2018 | |
Supplementary Information [Abstract] | |
Supplementary Information | Supplementary Information (in millions) Cash and cash equivalents: December 28, March 30, Cash $ 313 $ 1,016 Cash equivalents 1,996 758 Total cash and cash equivalents $ 2,309 $ 1,774 Other current assets: December 28, March 30, Prepaid expenses $ 162 $ 177 Income tax receivable and prepaid income taxes 39 107 Short-term deferred commissions 99 94 Assets held for sale — 26 Other 122 118 Total other current assets $ 422 $ 522 In October 2018, we completed the sale of certain land and buildings that were reported as assets held for sale as of 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: December 28, March 30, Land $ 65 $ 66 Computer hardware and software 1,136 1,081 Office furniture and equipment 117 110 Buildings 364 365 Leasehold improvements 357 339 Construction in progress 35 29 Total property and equipment, gross 2,074 1,990 Accumulated depreciation and amortization (1,283 ) (1,212 ) Total property and equipment, net $ 791 $ 778 Other long-term assets: December 28, March 30, Cost method investments $ 179 $ 175 Equity method investment 51 134 Long-term income tax receivable and prepaid income taxes 31 61 Deferred income tax assets 828 46 Long-term deferred commissions 92 35 Other 87 75 Total other long-term assets $ 1,268 $ 526 Short-term contract liabilities: December 28, March 30, Deferred revenue $ 1,738 $ 2,368 Customer deposit liabilities 476 — Total short-term contract liabilities $ 2,214 $ 2,368 Long-term income taxes payable: December 28, March 30, Deemed repatriation tax payable $ 730 $ 824 Uncertain tax positions (including interest and penalties) 325 302 Total long-term income taxes payable $ 1,055 $ 1,126 Other income (expense), net: Three Months Ended Nine Months Ended December 28, December 29, December 28, December 29, Interest income $ 11 $ 5 $ 29 $ 16 Loss from equity interest (24 ) — (84 ) — Foreign exchange loss (4 ) (5 ) (16 ) (26 ) Other (2 ) 9 11 10 Total other income (expense), net $ (19 ) $ 9 $ (60 ) $ — |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 9 Months Ended |
Dec. 28, 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: December 28, 2018 March 30, 2018 (In millions) Fair Value Level 1 Level 2 Fair Value Level 1 Level 2 Assets: Cash equivalents: Money market funds $ 1,485 $ 1,485 $ — $ 679 $ 679 $ — Certificates of deposit 511 — 511 79 — 79 Short-term investments: Corporate bonds 269 — 269 374 — 374 Commercial paper — — — 2 — 2 Certificates of deposit 1 — 1 12 — 12 Total $ 2,266 $ 1,485 $ 781 $ 1,146 $ 679 $ 467 The following table presents the contractual maturities of our investments in debt securities as of December 28, 2018 : (In millions) Fair Value Due in one year or less $ 64 Due after one year through five years 206 Total $ 270 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 income (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 income (expense), net in our Condensed Consolidated Statements of Operations. As of December 28, 2018 and March 30, 2018 , the carrying value of our non-marketable equity investments was $179 million and $175 million , respectively. Equity method investment Our investment in equity securities that is accounted for using the equity method is included in Other long-term assets in our Condensed Consolidated Balance Sheets and consists of our equity investment in a privately-held company that had a carrying value of $51 million and $134 million at December 28, 2018 and March 30, 2018 , respectively. We recorded a loss from equity interests of $24 million and $84 million during the three and nine months ended December 28, 2018 , respectively, in Other income (expense), net in our Condensed Consolidated Statements of Operations. This loss for the nine months ended December 28, 2018 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 which was provided to us on a three-month lag: Three Months Ended Nine Months Ended (In millions) December 28, 2018 Revenue $ 80 $ 220 Gross profit $ 67 $ 181 Net loss $ (83 ) $ (288 ) Current and long-term debt As of December 28, 2018 and March 30, 2018 , the total fair value of our current and long-term fixed rate debt was $3.8 billion and 3.9 billion , respectively. 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 | 9 Months Ended |
Dec. 28, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following table summarizes components of our debt: (In millions, except percentages) December 28, March 30, 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 (55 ) (74 ) Total debt 5,045 5,026 Less: current portion (598 ) — Total long-term debt $ 4,447 $ 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: December 28, March 30, Senior Term Loan A-2 due August 1, 2019 4.06 % 3.31 % Senior Term Loan A-5 due August 1, 2021 4.26 % 3.54 % As of December 28, 2018 , the future contractual maturities of debt by fiscal year are as follows: (In millions) December 28, 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 $18.56 on December 28, 2018 , the if-converted value of our 2.5% Convertible Senior Notes exceeded the principal amount by approximately $53 million and the if-converted value of our 2.0% Convertible Senior Notes was below the principal amount. The following table sets forth total interest expense recognized related to our 2.5% and 2.0% Convertible Senior Notes: Three Months Ended Nine Months Ended (In millions) December 28, December 29, December 28, December 29, Contractual interest expense $ 9 $ 9 $ 28 $ 28 Amortization of debt discount and issuance costs $ 4 $ 4 $ 12 $ 12 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 revolving 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 December 28, 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 December 28, 2018 , we were in compliance with all debt covenants. |
Derivatives
Derivatives | 9 Months Ended |
Dec. 28, 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) December 28, March 30, Foreign exchange forward contracts purchased $ 825 $ 697 Foreign exchange forward contracts sold $ 94 $ 151 The fair value of our foreign exchange forward contracts is presented on a gross basis in our Condensed Consolidated Balance Sheets. As of December 28, 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 December 28, 2018 and March 30, 2018 . Our foreign exchange forward contracts are not designated as hedging instruments. The related gain (loss) recognized in Other income (expense), net in our Condensed Consolidated Statements of Operations was as follows: Three Months Ended Nine Months Ended (In millions) December 28, December 29, December 28, December 29, Foreign exchange forward contracts gain (loss) $ (1 ) $ 1 $ (39 ) $ 11 |
Restructuring, Transition and O
Restructuring, Transition and Other Costs | 9 Months Ended |
Dec. 28, 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 2019 Plan In August 2018, we announced a restructuring plan (the “Fiscal 2019 Plan”) under which we will initiate targeted reductions of up to approximately 8% of our global workforce. We estimate that we will incur total costs in connection with the Fiscal 2019 Plan of approximately $50 million , primarily for severance and termination benefits. These actions are expected to be completed in fiscal 2020. As of December 28, 2018 , we have incurred costs of $9 million related to our Fiscal 2019 Plan. 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 December 28, 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 . As of December 28, 2018 , we have incurred costs of $289 million related to our Fiscal 2017 Plan. Restructuring, transition and other costs summary Our restructuring, transition and other costs are presented in the table below: Three Months Ended Nine Months Ended (In millions) December 28, December 29, December 28, December 29, Severance and termination benefit costs $ 5 $ 11 $ 17 $ 50 Other exit and disposal costs 3 (2 ) 13 15 Asset write-offs — 9 2 18 Transition costs 45 75 173 195 Total restructuring, transition and other costs $ 53 $ 93 $ 205 $ 278 Restructuring summary Our activities related to our restructuring plans are presented in the table below: (In millions) Balance as of March 30, 2018 Net Charges Cash Balance as of December 28, 2018 Severance and termination benefit costs $ 10 $ 17 $ (23 ) $ 4 Other exit and disposal costs 15 13 (21 ) 7 Total $ 25 $ 30 $ (44 ) $ 11 The restructuring liabilities are included in Other current liabilities and Other long-term liabilities in our Condensed Consolidated Balance Sheets. |
Income Taxes
Income Taxes | 9 Months Ended |
Dec. 28, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The following table summarizes our effective tax rate for income from continuing operations for the periods presented: Three Months Ended Nine Months Ended (In millions, except percentages) December 28, December 29, December 28, December 29, Income from continuing operations before income taxes $ 97 $ 705 $ 56 $ 502 Income tax expense (benefit) $ 38 $ (606 ) $ 70 $ (683 ) Effective tax rate 39 % (86 )% 125 % (136 )% We recorded an income tax benefit on discontinued operations of $3 million and $30 million for the three months ended December 28, 2018 and December 29, 2017 , respectively. We recorded income tax expense on discontinued operations of $ 1 million , and $7 million for the nine months ended December 28, 2018 and December 29, 2017 , respectively. Our effective tax rate for continuing operations for fiscal 2019 was based on the statutory tax rate of 21% . Our effective tax rate for continuing operations for fiscal 2018 differs from the federal statutory income tax rate primarily due to the tax expense from one-time adjustments for newly issued guidance on the 2017 Tax Cuts and Jobs Act (“Act”) and other changes in response to tax reform, partially offset by the benefits of lower-taxed international earnings, the research and development tax credit and foreign derived intangible income deduction. Our effective tax rate for income from continuing operations for the nine months ended December 29, 2017 differs from the federal statutory income tax rate primarily due to accounting for the effects of enactment of the Act on December 22, 2017, 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 December 28, 2018 , we have completed our accounting for the effects of the enactment of the Act in accordance with SEC Staff Accounting Bulletin No. 118 and the amounts are no longer considered provisional. We will continue to evaluate any new guidance from the U.S. Department of Treasury and the IRS as issued. With respect to the Global Intangible Low Tax Income ("GILTI") provisions of the Act, we have determined that our accounting policy will be to record the tax expense associated with GILTI as a period cost. The adoption of this policy does not result in change to our fiscal year 2019 tax provision. 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 $22 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 | 9 Months Ended |
Dec. 28, 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 Nine Months Ended (In millions, except per share data) December 28, December 29, December 28, December 29, Dividends declared and paid $ 48 $ 47 $ 143 $ 139 Dividend equivalents paid 11 2 26 24 Total dividends and dividend equivalents paid $ 59 $ 49 $ 169 $ 163 On January 31, 2019 , we announced a cash dividend of $0.075 per share of common stock to be paid in March 2019 . 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 As of December 28, 2018 , we had a remaining balance of our stock repurchase program of $800 million . In January 2019, our Board of Directors increased their authorization by $500 million , resulting in an aggregate authorization of $1.3 billion with no fixed 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 Equity Method Investee Total Balance as of March 30, 2018 $ 8 $ (4 ) $ — $ 4 Other comprehensive income (loss) before reclassifications (21 ) 1 2 (18 ) Balance as of December 28, 2018 $ (13 ) $ (3 ) $ 2 $ (14 ) |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Dec. 28, 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 Nine Months Ended (In millions) December 28, December 29, December 28, December 29, Cost of revenues $ 4 $ 7 $ 13 $ 22 Sales and marketing 23 30 85 123 Research and development 19 49 97 143 General and administrative 9 39 70 160 Total stock-based compensation expense $ 55 $ 125 265 448 Income tax expense (benefit) for stock-based compensation expense $ (12 ) $ 2 (59 ) (107 ) The following table summarizes additional information related to our stock-based compensation: Nine Months Ended (In millions, except per grant data) December 28, December 29, RSUs: Weighted-average fair value per award granted and assumed $ 21.71 $ 30.20 Awards granted and assumed 14 12 Total fair value of awards released $ 203 $ 265 Outstanding and unvested 21 21 PRUs: Weighted-average fair value per award granted and assumed $ 21.21 $ 32.94 Awards granted and assumed 2 4 Total fair value of awards released $ 261 $ 24 Outstanding and unvested at target payout 4 9 Stock options: Total intrinsic value of stock options exercised $ 13 $ 123 Outstanding 12 14 Restricted stock: Outstanding and unvested 1 1 PRUs In October 2018, we released 12 million PRUs that vested on March 30, 2018 . 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 December 28, 2018 and March 30, 2018 , the total liability associated with liability-classified awards was $21 million and $25 million , respectively, which is presented in Accrued compensation and benefits in our Condensed Consolidated Balance Sheets. Employee stock purchase plan In August 2018, we cancelled the issuance of common stock under our 2008 Employee Stock Purchase Plan for the 6-month purchase period ended August 15, 2018, as a result of the delayed filing of our Annual Report on Form 10-K for the fiscal year ended March 30, 2018. All participant contributions were refunded. In addition, the enrollment in the purchase period beginning August 16, 2018 was cancelled. As of December 28, 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 $ 280 1.8 years PRUs 35 1.0 year Options 12 1.3 years Restricted stock 23 1.6 years Liability-classified awards settled in shares 22 1.0 year Total $ 372 |
Net Income Per Share
Net Income Per Share | 9 Months Ended |
Dec. 28, 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 the nine months ended December 28, 2018 , as there was a loss from continuing operations in the period 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 Nine Months Ended (In millions, except per share amounts) December 28, December 29, December 28, December 29, Income (loss) from continuing operations $ 59 $ 1,311 $ (14 ) $ 1,185 Income from discontinued operations, net of income taxes 6 31 11 12 Net income (loss) $ 65 $ 1,342 $ (3 ) $ 1,197 Income (loss) per share - basic: Continuing operations $ 0.09 $ 2.12 $ (0.02 ) $ 1.93 Discontinued operations $ 0.01 $ 0.05 $ 0.02 $ 0.02 Net income (loss) per share - basic $ 0.10 $ 2.17 $ (0.00 ) $ 1.95 Income (loss) per share - diluted: Continuing operations $ 0.09 $ 1.97 $ (0.02 ) $ 1.78 Discontinued operations $ 0.01 $ 0.05 $ 0.02 $ 0.02 Net income (loss) per share - diluted (1) $ 0.10 $ 2.01 $ (0.00 ) $ 1.80 Weighted-average shares outstanding - basic 637 619 631 614 Dilutive potentially issuable shares: Convertible debt 7 33 — 33 Employee equity awards 11 15 — 18 Weighted-average shares outstanding - diluted 655 667 631 665 Anti-dilutive shares excluded from diluted net income (loss) per share calculation: Convertible debt — — 91 — Employee equity awards 8 1 47 1 Total 8 1 138 1 (1) Net income 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 nine months ended December 28, 2018 as there was a loss from continuing operations in the period . |
Segment and Geographical Inform
Segment and Geographical Information | 9 Months Ended |
Dec. 28, 2018 | |
Segment Reporting [Abstract] | |
Segment and Geographical Information | Segment and Geographic Information We operate in the following two reportable 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 Nine Months Ended (In millions) December 28, December 29, December 28, December 29, Total Segments: Net revenues $ 1,211 $ 1,209 $ 3,542 $ 3,624 Operating income $ 388 $ 438 $ 1,073 $ 1,161 Enterprise Security: Net revenues $ 609 $ 625 $ 1,739 $ 1,957 Operating income $ 91 $ 136 $ 227 $ 377 Consumer Digital Safety: Net revenues $ 602 $ 584 $ 1,803 $ 1,667 Operating income $ 297 $ 302 $ 846 $ 784 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: Three Months Ended Nine Months Ended (In millions) December 28, December 29, December 28, December 29, Total segment operating income $ 388 $ 438 $ 1,073 $ 1,161 Reconciling items: Stock-based compensation expense 55 125 265 448 Amortization of intangible assets 111 111 332 341 Restructuring, transition and other costs 53 93 205 278 Acquisition-related costs — 13 3 51 Other — — (5 ) — Total consolidated operating income from continuing operations $ 169 $ 96 $ 273 $ 43 The following table summarizes net revenues by significant products and services categories: Three Months Ended Nine Months Ended (In millions) December 28, December 29, December 28, December 29, Enterprise Security: Endpoint and information protection $ 260 $ 240 $ 769 $ 722 Network and web security 207 215 567 592 Website security and public key infrastructure — 35 — 238 Other products and services 142 135 403 405 Total Enterprise Security $ 609 $ 625 $ 1,739 $ 1,957 Consumer Digital Safety: Consumer security $ 367 $ 370 $ 1,104 $ 1,120 Identity and information protection 235 214 699 547 Total Consumer Digital Safety 602 584 1,803 1,667 Total net revenues $ 1,211 $ 1,209 $ 3,542 $ 3,624 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 Nine Months Ended (In millions) December 28, December 29, December 28, December 29, Americas $ 815 $ 762 $ 2,315 $ 2,264 EMEA 241 270 718 791 APJ 155 177 509 569 Total net revenues $ 1,211 $ 1,209 $ 3,542 $ 3,624 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 $763 million and $2,165 million during the three and nine months ended December 28, 2018 , respectively, and $711 million and $2,103 million during the three and nine months ended December 29, 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 December 28, 2018 and December 29, 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) December 28, March 30, U.S. $ 2,215 $ 858 International 364 1,304 Total cash, cash equivalent and short-term investments $ 2,579 $ 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) December 28, March 30, U.S. $ 681 $ 677 International (1) 110 101 Total property and equipment, net $ 791 $ 778 (1) No individual country represented more than 10% of the respective totals. Significant customers In the three and nine months ended December 28, 2018 and December 29, 2017 , the following customer, which is a distributor, accounted for 10% or more of our net revenues: Three Months Ended Nine Months Ended December 28, December 29, December 28, December 29, Customer A 10 % 14 % N/A N/A As of December 28, 2018 and March 30, 2018 , customers, which are distributors, that accounted for over 10% of our net accounts receivable, are as follows: December 28, March 30, Customer A 16 % 22 % Customer B 15 % 15 % Customer C 14 % N/A |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Dec. 28, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Lease commitments Our operating leases primarily consist of leases of our facilities and data center co-locations. As of December 28, 2018 , the minimum future rentals on non-cancelable operating leases by fiscal year are as follows: (In millions) December 28, Remainder of 2019 $ 18 2020 53 2021 46 2022 36 2023 28 Thereafter 62 Total minimum future lease payments 243 Sublease income (8 ) Total minimum future payments, net $ 235 Purchase obligations As of December 28, 2018 , we had purchase obligations of $1,090 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 December 28, 2018 , we are required to pay a one-time transition tax of $703 million on untaxed foreign earnings of our foreign subsidiaries due in installments through July 2025 as a result of the Act. 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. |
Description of Business and S_2
Description of Business and Significant Accounting Policies (Policies) | 9 Months Ended |
Dec. 28, 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 and nine months ended December 28, 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 and nine -month periods in this report relate to fiscal periods ended December 28, 2018 and December 29, 2017 . The nine months ended December 28, 2018 and December 29, 2017 each consisted of 39 weeks. Our 2019 fiscal year consists of 52 weeks and ends on March 29, 2019 . |
Use of estimates | 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. |
Recently issued authoritative guidance | Significant accounting policies There have been no material changes to our significant accounting policies as of and for the nine months ended December 28, 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) | 9 Months Ended |
Dec. 28, 2018 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | 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 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 . The effects of the adoption of the new revenue recognition guidance on our December 28, 2018 Condensed Consolidated Balance Sheets were as follows: As of December 28, 2018 (In millions) As Reported Balances Without Adoption of New Standard Effect of Change Accounts receivable, net $ 723 $ 670 $ 53 Other current assets (1) $ 422 $ 410 $ 12 Other long-term assets (2) $ 1,268 $ 1,219 $ 49 Total assets $ 16,456 $ 16,342 $ 114 Short-term contract liabilities $ 2,214 $ 2,310 $ (96 ) Other current liabilities $ 404 $ 371 $ 33 Long-term contract liabilities $ 701 $ 797 $ (96 ) Deferred income tax liabilities $ 626 $ 579 $ 47 Total liabilities $ 10,550 $ 10,662 $ (112 ) Accumulated other comprehensive loss $ (14 ) $ (8 ) $ (6 ) Retained earnings $ 1,116 $ 884 $ 232 Total stockholders’ equity $ 5,906 $ 5,680 $ 226 (1) As reported includes short-term deferred commissions of $99 million . The balance without adoption of new standard includes short-term deferred commissions of $90 million . (2) As reported includes long-term deferred commissions of $92 million . The balance without adoption of new standard includes long-term deferred commissions of $44 million . |
Revenues (Tables)
Revenues (Tables) | 9 Months Ended |
Dec. 28, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Our typical performance obligations include the following: Performance Obligation When Performance Obligations are 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 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 December 28, 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 $ 144 $ 91 $ 53 Products and services transferred over time $ 465 $ 502 $ (37 ) Consumer Digital Safety: Products and services transferred at a point in time $ 12 $ 12 $ — Products and services transferred over time $ 590 $ 589 $ 1 Total Products and services transferred at a point in time $ 156 $ 103 $ 53 Products and services transferred over time $ 1,055 $ 1,091 $ (36 ) The following table provides our revenue disaggregated by the timing of recognition under both the new guidance and the legacy guidance during the nine months ended December 28, 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 $ 353 $ 223 $ 130 Products and services transferred over time $ 1,386 $ 1,490 $ (104 ) Consumer Digital Safety: Products and services transferred at a point in time $ 36 $ 36 $ — Products and services transferred over time $ 1,767 $ 1,767 $ — Total Products and services transferred at a point in time $ 389 $ 259 $ 130 Products and services transferred over time $ 3,153 $ 3,257 $ (104 ) |
Revenue, Remaining Performance Obligation | As of December 28, 2018 , we had $2,959 million 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 $ 1,920 65 % 24 % 10 % 2 % Consumer Digital Safety 1,039 96 % 3 % 1 % — % Total $ 2,959 76 % 16 % 7 % 1 % Percentages may not add up to 100% due to rounding. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Dec. 28, 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 24 6 30 Translation adjustments (2 ) (3 ) (5 ) Balance as of December 28, 2018 $ 5,756 $ 2,588 $ 8,344 |
Schedule of Intangible Assets, Net, Finite-Lived | December 28, 2018 March 30, 2018 (In millions) Gross Accumulated Net Gross Accumulated Net Customer relationships $ 1,466 $ (507 ) $ 959 $ 1,462 $ (357 ) $ 1,105 Developed technology 1,025 (513 ) 512 1,037 (361 ) 676 Finite-lived trade names and other 13 (9 ) 4 13 (8 ) 5 Total finite-lived intangible assets 2,504 (1,029 ) 1,475 2,512 (726 ) 1,786 Indefinite-lived trade names 852 — 852 852 — 852 In-process research and development 2 — 2 5 — 5 Total intangible assets $ 3,358 $ (1,029 ) $ 2,329 $ 3,369 $ (726 ) $ 2,643 |
Schedule of Intangible Assets, Net, Indefinite-Lived | December 28, 2018 March 30, 2018 (In millions) Gross Accumulated Net Gross Accumulated Net Customer relationships $ 1,466 $ (507 ) $ 959 $ 1,462 $ (357 ) $ 1,105 Developed technology 1,025 (513 ) 512 1,037 (361 ) 676 Finite-lived trade names and other 13 (9 ) 4 13 (8 ) 5 Total finite-lived intangible assets 2,504 (1,029 ) 1,475 2,512 (726 ) 1,786 Indefinite-lived trade names 852 — 852 852 — 852 In-process research and development 2 — 2 5 — 5 Total intangible assets $ 3,358 $ (1,029 ) $ 2,329 $ 3,369 $ (726 ) $ 2,643 |
Amortization Expense | Amortization expense for purchased intangible assets is summarized below: Three Months Ended Nine Months Ended Statements of Operations Classification (In millions) December 28, December 29, December 28, December 29, Customer relationships and other $ 52 $ 52 $ 156 $ 166 Operating expenses Developed technology 59 59 176 175 Cost of revenues Total $ 111 $ 111 $ 332 $ 341 |
Schedule of Future Intangible Asset Amortization Expense | As of December 28, 2018 , future amortization expense related to intangible assets that have finite lives is as follows by fiscal year: (In millions) December 28, Remainder of 2019 $ 110 2020 437 2021 327 2022 266 2023 223 Thereafter 112 Total $ 1,475 |
Supplementary Information (Tabl
Supplementary Information (Tables) | 9 Months Ended |
Dec. 28, 2018 | |
Supplementary Information [Abstract] | |
Schedule of Cash and cash equivalents | Cash and cash equivalents: December 28, March 30, Cash $ 313 $ 1,016 Cash equivalents 1,996 758 Total cash and cash equivalents $ 2,309 $ 1,774 |
Schedule of Other current assets | Other current assets: December 28, March 30, Prepaid expenses $ 162 $ 177 Income tax receivable and prepaid income taxes 39 107 Short-term deferred commissions 99 94 Assets held for sale — 26 Other 122 118 Total other current assets $ 422 $ 522 |
Summary of Property and equipment, net | Property and equipment, net: December 28, March 30, Land $ 65 $ 66 Computer hardware and software 1,136 1,081 Office furniture and equipment 117 110 Buildings 364 365 Leasehold improvements 357 339 Construction in progress 35 29 Total property and equipment, gross 2,074 1,990 Accumulated depreciation and amortization (1,283 ) (1,212 ) Total property and equipment, net $ 791 $ 778 |
Schedule of Other long-term assets | Other long-term assets: December 28, March 30, Cost method investments $ 179 $ 175 Equity method investment 51 134 Long-term income tax receivable and prepaid income taxes 31 61 Deferred income tax assets 828 46 Long-term deferred commissions 92 35 Other 87 75 Total other long-term assets $ 1,268 $ 526 |
Schedule of Short-term contract Liabilities | Short-term contract liabilities: December 28, March 30, Deferred revenue $ 1,738 $ 2,368 Customer deposit liabilities 476 — Total short-term contract liabilities $ 2,214 $ 2,368 |
Schedule of Long-term income taxes payable | Long-term income taxes payable: December 28, March 30, Deemed repatriation tax payable $ 730 $ 824 Uncertain tax positions (including interest and penalties) 325 302 Total long-term income taxes payable $ 1,055 $ 1,126 |
Schedule of Other income (expense), net | Other income (expense), net: Three Months Ended Nine Months Ended December 28, December 29, December 28, December 29, Interest income $ 11 $ 5 $ 29 $ 16 Loss from equity interest (24 ) — (84 ) — Foreign exchange loss (4 ) (5 ) (16 ) (26 ) Other (2 ) 9 11 10 Total other income (expense), net $ (19 ) $ 9 $ (60 ) $ — |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurements (Tables) | 9 Months Ended |
Dec. 28, 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: December 28, 2018 March 30, 2018 (In millions) Fair Value Level 1 Level 2 Fair Value Level 1 Level 2 Assets: Cash equivalents: Money market funds $ 1,485 $ 1,485 $ — $ 679 $ 679 $ — Certificates of deposit 511 — 511 79 — 79 Short-term investments: Corporate bonds 269 — 269 374 — 374 Commercial paper — — — 2 — 2 Certificates of deposit 1 — 1 12 — 12 Total $ 2,266 $ 1,485 $ 781 $ 1,146 $ 679 $ 467 |
Available-for-sale Securities | The following table presents the contractual maturities of our investments in debt securities as of December 28, 2018 : (In millions) Fair Value Due in one year or less $ 64 Due after one year through five years 206 Total $ 270 |
Summarized Financial Information, Profit (Loss) | The following table summarizes unaudited financial data from the privately-held company which was provided to us on a three-month lag: Three Months Ended Nine Months Ended (In millions) December 28, 2018 Revenue $ 80 $ 220 Gross profit $ 67 $ 181 Net loss $ (83 ) $ (288 ) |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Dec. 28, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Components of Debt | The following table summarizes components of our debt: (In millions, except percentages) December 28, March 30, 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 (55 ) (74 ) Total debt 5,045 5,026 Less: current portion (598 ) — Total long-term debt $ 4,447 $ 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: December 28, March 30, Senior Term Loan A-2 due August 1, 2019 4.06 % 3.31 % Senior Term Loan A-5 due August 1, 2021 4.26 % 3.54 % |
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 Nine Months Ended (In millions) December 28, December 29, December 28, December 29, Contractual interest expense $ 9 $ 9 $ 28 $ 28 Amortization of debt discount and issuance costs $ 4 $ 4 $ 12 $ 12 |
Schedule of Maturities of Long-term Debt | As of December 28, 2018 , the future contractual maturities of debt by fiscal year are as follows: (In millions) December 28, 2020 $ 600 2021 1,250 2022 1,750 2023 400 Thereafter 1,100 Total future maturities of debt $ 5,100 |
Derivatives (Tables)
Derivatives (Tables) | 9 Months Ended |
Dec. 28, 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) December 28, March 30, Foreign exchange forward contracts purchased $ 825 $ 697 Foreign exchange forward contracts sold $ 94 $ 151 |
Derivative Instruments, Gain (Loss) | The related gain (loss) recognized in Other income (expense), net in our Condensed Consolidated Statements of Operations was as follows: Three Months Ended Nine Months Ended (In millions) December 28, December 29, December 28, December 29, Foreign exchange forward contracts gain (loss) $ (1 ) $ 1 $ (39 ) $ 11 |
Restructuring, Transition and_2
Restructuring, Transition and Other Costs (Tables) | 9 Months Ended |
Dec. 28, 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 Nine Months Ended (In millions) December 28, December 29, December 28, December 29, Severance and termination benefit costs $ 5 $ 11 $ 17 $ 50 Other exit and disposal costs 3 (2 ) 13 15 Asset write-offs — 9 2 18 Transition costs 45 75 173 195 Total restructuring, transition and other costs $ 53 $ 93 $ 205 $ 278 |
Schedule of the Restructuring and Separation Liabilities Summary | Our activities related to our restructuring plans are presented in the table below: (In millions) Balance as of March 30, 2018 Net Charges Cash Balance as of December 28, 2018 Severance and termination benefit costs $ 10 $ 17 $ (23 ) $ 4 Other exit and disposal costs 15 13 (21 ) 7 Total $ 25 $ 30 $ (44 ) $ 11 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Dec. 28, 2018 | |
Income Tax Disclosure [Abstract] | |
Summary of Effective Tax Rate | The following table summarizes our effective tax rate for income from continuing operations for the periods presented: Three Months Ended Nine Months Ended (In millions, except percentages) December 28, December 29, December 28, December 29, Income from continuing operations before income taxes $ 97 $ 705 $ 56 $ 502 Income tax expense (benefit) $ 38 $ (606 ) $ 70 $ (683 ) Effective tax rate 39 % (86 )% 125 % (136 )% |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Dec. 28, 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 Nine Months Ended (In millions, except per share data) December 28, December 29, December 28, December 29, Dividends declared and paid $ 48 $ 47 $ 143 $ 139 Dividend equivalents paid 11 2 26 24 Total dividends and dividend equivalents paid $ 59 $ 49 $ 169 $ 163 |
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 Equity Method Investee Total Balance as of March 30, 2018 $ 8 $ (4 ) $ — $ 4 Other comprehensive income (loss) before reclassifications (21 ) 1 2 (18 ) Balance as of December 28, 2018 $ (13 ) $ (3 ) $ 2 $ (14 ) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Dec. 28, 2018 | |
Share-based Compensation [Abstract] | |
Schedule of Stock-Based Compensation Expense Recognized in our Condensed Consolidated Statements of Income | The following table sets forth the stock-based compensation expense recognized for our equity incentive plans: Three Months Ended Nine Months Ended (In millions) December 28, December 29, December 28, December 29, Cost of revenues $ 4 $ 7 $ 13 $ 22 Sales and marketing 23 30 85 123 Research and development 19 49 97 143 General and administrative 9 39 70 160 Total stock-based compensation expense $ 55 $ 125 265 448 Income tax expense (benefit) for stock-based compensation expense $ (12 ) $ 2 (59 ) (107 ) |
Schedule of Additional Information Related to Stock-Based Compensation | The following table summarizes additional information related to our stock-based compensation: Nine Months Ended (In millions, except per grant data) December 28, December 29, RSUs: Weighted-average fair value per award granted and assumed $ 21.71 $ 30.20 Awards granted and assumed 14 12 Total fair value of awards released $ 203 $ 265 Outstanding and unvested 21 21 PRUs: Weighted-average fair value per award granted and assumed $ 21.21 $ 32.94 Awards granted and assumed 2 4 Total fair value of awards released $ 261 $ 24 Outstanding and unvested at target payout 4 9 Stock options: Total intrinsic value of stock options exercised $ 13 $ 123 Outstanding 12 14 Restricted stock: Outstanding and unvested 1 1 |
Schedule of Unrecognized Compensation Cost, Nonvested Awards | As of December 28, 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 $ 280 1.8 years PRUs 35 1.0 year Options 12 1.3 years Restricted stock 23 1.6 years Liability-classified awards settled in shares 22 1.0 year Total $ 372 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 9 Months Ended |
Dec. 28, 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 Nine Months Ended (In millions, except per share amounts) December 28, December 29, December 28, December 29, Income (loss) from continuing operations $ 59 $ 1,311 $ (14 ) $ 1,185 Income from discontinued operations, net of income taxes 6 31 11 12 Net income (loss) $ 65 $ 1,342 $ (3 ) $ 1,197 Income (loss) per share - basic: Continuing operations $ 0.09 $ 2.12 $ (0.02 ) $ 1.93 Discontinued operations $ 0.01 $ 0.05 $ 0.02 $ 0.02 Net income (loss) per share - basic $ 0.10 $ 2.17 $ (0.00 ) $ 1.95 Income (loss) per share - diluted: Continuing operations $ 0.09 $ 1.97 $ (0.02 ) $ 1.78 Discontinued operations $ 0.01 $ 0.05 $ 0.02 $ 0.02 Net income (loss) per share - diluted (1) $ 0.10 $ 2.01 $ (0.00 ) $ 1.80 Weighted-average shares outstanding - basic 637 619 631 614 Dilutive potentially issuable shares: Convertible debt 7 33 — 33 Employee equity awards 11 15 — 18 Weighted-average shares outstanding - diluted 655 667 631 665 Anti-dilutive shares excluded from diluted net income (loss) per share calculation: Convertible debt — — 91 — Employee equity awards 8 1 47 1 Total 8 1 138 1 (1) Net income per share amounts may not add due to rounding. |
Segment and Geographical Info_2
Segment and Geographical Information (Tables) | 9 Months Ended |
Dec. 28, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area | 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 Nine Months Ended (In millions) December 28, December 29, December 28, December 29, Americas $ 815 $ 762 $ 2,315 $ 2,264 EMEA 241 270 718 791 APJ 155 177 509 569 Total net revenues $ 1,211 $ 1,209 $ 3,542 $ 3,624 |
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) December 28, March 30, U.S. $ 2,215 $ 858 International 364 1,304 Total cash, cash equivalent and short-term investments $ 2,579 $ 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) December 28, March 30, U.S. $ 681 $ 677 International (1) 110 101 Total property and equipment, net $ 791 $ 778 (1) No individual country represented more than 10% of the respective totals. |
Schedule of Revenue by Major Customers by Reporting Segments | In the three and nine months ended December 28, 2018 and December 29, 2017 , the following customer, which is a distributor, accounted for 10% or more of our net revenues: Three Months Ended Nine Months Ended December 28, December 29, December 28, December 29, Customer A 10 % 14 % N/A N/A As of December 28, 2018 and March 30, 2018 , customers, which are distributors, that accounted for over 10% of our net accounts receivable, are as follows: December 28, March 30, Customer A 16 % 22 % Customer B 15 % 15 % Customer C 14 % N/A |
Schedule of Reportable Segment Data | The following table summarizes the operating results of our reportable segments: Three Months Ended Nine Months Ended (In millions) December 28, December 29, December 28, December 29, Total Segments: Net revenues $ 1,211 $ 1,209 $ 3,542 $ 3,624 Operating income $ 388 $ 438 $ 1,073 $ 1,161 Enterprise Security: Net revenues $ 609 $ 625 $ 1,739 $ 1,957 Operating income $ 91 $ 136 $ 227 $ 377 Consumer Digital Safety: Net revenues $ 602 $ 584 $ 1,803 $ 1,667 Operating income $ 297 $ 302 $ 846 $ 784 |
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: Three Months Ended Nine Months Ended (In millions) December 28, December 29, December 28, December 29, Total segment operating income $ 388 $ 438 $ 1,073 $ 1,161 Reconciling items: Stock-based compensation expense 55 125 265 448 Amortization of intangible assets 111 111 332 341 Restructuring, transition and other costs 53 93 205 278 Acquisition-related costs — 13 3 51 Other — — (5 ) — Total consolidated operating income from continuing operations $ 169 $ 96 $ 273 $ 43 |
Revenue from External Customers by Products and Services | The following table summarizes net revenues by significant products and services categories: Three Months Ended Nine Months Ended (In millions) December 28, December 29, December 28, December 29, Enterprise Security: Endpoint and information protection $ 260 $ 240 $ 769 $ 722 Network and web security 207 215 567 592 Website security and public key infrastructure — 35 — 238 Other products and services 142 135 403 405 Total Enterprise Security $ 609 $ 625 $ 1,739 $ 1,957 Consumer Digital Safety: Consumer security $ 367 $ 370 $ 1,104 $ 1,120 Identity and information protection 235 214 699 547 Total Consumer Digital Safety 602 584 1,803 1,667 Total net revenues $ 1,211 $ 1,209 $ 3,542 $ 3,624 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Dec. 28, 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 December 28, 2018 , the minimum future rentals on non-cancelable operating leases by fiscal year are as follows: (In millions) December 28, Remainder of 2019 $ 18 2020 53 2021 46 2022 36 2023 28 Thereafter 62 Total minimum future lease payments 243 Sublease income (8 ) Total minimum future payments, net $ 235 |
Recent Accounting Standards (Na
Recent Accounting Standards (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Dec. 28, 2018 | Dec. 29, 2017 | Dec. 28, 2018 | Dec. 29, 2017 | Mar. 31, 2018 | Mar. 30, 2018 | [1] | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||
Net revenues | $ 1,211 | $ 1,209 | $ 3,542 | $ 3,624 | |||
Operating expenses | 776 | $ 864 | 2,498 | $ 2,813 | |||
Retained earnings | 1,116 | 1,116 | $ 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 | 17 | 26 | |||||
Operating expenses | 1 | (10) | |||||
Retained earnings | 232 | 232 | |||||
Calculated under Revenue Guidance in Effect before Topic 606 | |||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||
Retained earnings | $ 884 | $ 884 | |||||
[1] | Derived from audited financial statements. |
Recent Accounting Standards (Sc
Recent Accounting Standards (Schedule of Effect of New Accounting Pronouncement) (Details) - USD ($) $ in Millions | Dec. 28, 2018 | Mar. 31, 2018 | Mar. 30, 2018 | |
Assets: | ||||
Accounts receivable, net | $ 723 | $ 833 | $ 809 | [1] |
Other current assets | 422 | 506 | 522 | [1] |
Other long-term assets | 1,268 | 1,333 | 526 | [1] |
Total assets | 16,456 | 16,574 | 15,759 | [1] |
Liabilities: | ||||
Short-term contract liabilities | 2,214 | 2,261 | 2,368 | [1] |
Other current liabilities | 404 | 370 | 372 | [1] |
Long-term contract liabilities | 701 | 673 | 735 | [1] |
Deferred income tax liabilities | 626 | 639 | 592 | |
Total liabilities | 10,550 | 10,612 | 10,736 | [1] |
Stockholders’ equity: | ||||
Accumulated other comprehensive loss | (14) | 4 | [1] | |
Retained earnings | 1,116 | 1,267 | 328 | [1] |
Total stockholders’ equity | 5,906 | 5,023 | [1] | |
Short-term deferred commissions | 99 | 86 | 94 | |
Long-term deferred commissions | 92 | 92 | 35 | |
Income tax receivable and prepaid income taxes | 39 | 99 | 107 | |
Long-term income tax receivable and prepaid income taxes | 31 | 29 | 61 | |
Deferred income tax assets | 828 | 828 | $ 46 | |
Calculated under Revenue Guidance in Effect before Topic 606 | ||||
Assets: | ||||
Accounts receivable, net | 670 | |||
Other current assets | 410 | |||
Other long-term assets | 1,219 | |||
Total assets | 16,342 | |||
Liabilities: | ||||
Short-term contract liabilities | 2,310 | |||
Other current liabilities | 371 | |||
Long-term contract liabilities | 797 | |||
Deferred income tax liabilities | 579 | |||
Total liabilities | 10,662 | |||
Stockholders’ equity: | ||||
Accumulated other comprehensive loss | (8) | |||
Retained earnings | 884 | |||
Total stockholders’ equity | 5,680 | |||
Short-term deferred commissions | 90 | |||
Long-term deferred commissions | 44 | |||
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 | 53 | |||
Other current assets | 12 | |||
Other long-term assets | 49 | |||
Total assets | 114 | |||
Liabilities: | ||||
Short-term contract liabilities | (96) | |||
Other current liabilities | 33 | |||
Long-term contract liabilities | (96) | |||
Deferred income tax liabilities | 47 | |||
Total liabilities | (112) | |||
Stockholders’ equity: | ||||
Accumulated other comprehensive loss | (6) | |||
Retained earnings | 232 | |||
Total stockholders’ equity | $ 226 | |||
[1] | Derived from audited financial statements. |
Revenues (Details)
Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Dec. 28, 2018 | Dec. 29, 2017 | Dec. 28, 2018 | Dec. 29, 2017 | Mar. 30, 2018 | |
Disaggregation of Revenue [Line Items] | |||||
Revenues | $ 1,211 | $ 1,209 | $ 3,542 | $ 3,624 | |
Revenue recognized from beginning contract liabilities | 831 | 1,954 | |||
Amortization expense from capitalized contract acquisition costs | 25 | 72 | |||
Capitalized contract cost, impairment loss | 0 | 0 | |||
Revenue, remaining performance obligation | 2,959 | 2,959 | |||
Reportable Segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 1,211 | 1,209 | 3,542 | 3,624 | |
Enterprise Security | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue, remaining performance obligation | 1,920 | 1,920 | |||
Enterprise Security | Reportable Segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 609 | $ 625 | 1,739 | $ 1,957 | |
Consumer Digital Safety | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue, remaining performance obligation | 1,039 | 1,039 | |||
Transferred at Point in Time | Reportable Segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 156 | 389 | |||
Transferred at Point in Time | Enterprise Security | Reportable Segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 144 | 353 | |||
Transferred at Point in Time | Consumer Digital Safety | Reportable Segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 12 | 36 | |||
Transferred over Time | Reportable Segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 1,055 | 3,153 | |||
Transferred over Time | Enterprise Security | Reportable Segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 465 | 1,386 | |||
Transferred over Time | Consumer Digital Safety | Reportable Segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 590 | 1,767 | |||
Other Current Liabilities | Enterprise Security | |||||
Disaggregation of Revenue [Line Items] | |||||
Rebate Reserves | 8 | 8 | |||
Other Current Liabilities | Consumer Digital Safety | |||||
Disaggregation of Revenue [Line Items] | |||||
Rebate Reserves | 11 | 11 | |||
Accounts Receivable | Enterprise Security | |||||
Disaggregation of Revenue [Line Items] | |||||
Rebate Reserves | $ 6 | ||||
Accounts Receivable | 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 | Reportable Segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 103 | 259 | |||
Calculated under Revenue Guidance in Effect before Topic 606 | Transferred at Point in Time | Enterprise Security | Reportable Segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 91 | 223 | |||
Calculated under Revenue Guidance in Effect before Topic 606 | Transferred at Point in Time | Consumer Digital Safety | Reportable Segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 12 | 36 | |||
Calculated under Revenue Guidance in Effect before Topic 606 | Transferred over Time | Reportable Segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 1,091 | 3,257 | |||
Calculated under Revenue Guidance in Effect before Topic 606 | Transferred over Time | Enterprise Security | Reportable Segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 502 | 1,490 | |||
Calculated under Revenue Guidance in Effect before Topic 606 | Transferred over Time | Consumer Digital Safety | Reportable Segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 589 | 1,767 | |||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 17 | 26 | |||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | Transferred at Point in Time | Reportable Segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 53 | 130 | |||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | Transferred at Point in Time | Enterprise Security | Reportable Segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 53 | 130 | |||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | Transferred at Point in Time | Consumer Digital Safety | Reportable Segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 0 | 0 | |||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | Transferred over Time | Reportable Segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | (36) | (104) | |||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | Transferred over Time | Enterprise Security | Reportable Segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | (37) | (104) | |||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | Transferred over Time | Consumer Digital Safety | Reportable Segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | $ 1 | $ 0 |
Revenues (Revenue, Remaining Pe
Revenues (Revenue, Remaining Performance Obligation) (Details) $ in Millions | 9 Months Ended |
Dec. 28, 2018USD ($) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total Remaining Performance Obligations | $ 2,959 |
Enterprise Security | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total Remaining Performance Obligations | 1,920 |
Consumer Digital Safety | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total Remaining Performance Obligations | $ 1,039 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-12-29 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Percent Expected to be Recognized as Revenue | 76.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-12-29 | Enterprise Security | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Percent Expected to be Recognized as Revenue | 65.00% |
Remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-12-29 | Consumer Digital Safety | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Percent Expected to be Recognized as Revenue | 96.00% |
Remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-12-29 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Percent Expected to be Recognized as Revenue | 16.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-12-29 | Enterprise Security | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Percent Expected to be Recognized as Revenue | 24.00% |
Remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-12-29 | Consumer Digital Safety | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Percent Expected to be Recognized as Revenue | 3.00% |
Remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-12-29 | |
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]: 2020-12-29 | Enterprise Security | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Percent Expected to be Recognized as Revenue | 10.00% |
Remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-12-29 | Consumer Digital Safety | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Percent Expected to be Recognized as Revenue | 1.00% |
Remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-12-29 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Percent Expected to be Recognized as Revenue | 1.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-12-29 | Enterprise Security | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Percent Expected to be Recognized as Revenue | 2.00% |
Remaining performance obligation, expected timing of satisfaction, period | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-12-29 | Consumer Digital Safety | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Percent Expected to be Recognized as Revenue | 0.00% |
Remaining performance obligation, expected timing of satisfaction, period |
Acquisitions and Divestiture Ac
Acquisitions and Divestiture Acquisitions (Details) - USD ($) $ in Millions | 1 Months Ended | 9 Months Ended | |
Jul. 31, 2017 | Dec. 28, 2018 | Dec. 29, 2017 | |
Business Acquisition [Line Items] | |||
Payments for acquisitions, net of cash acquired | $ 41 | $ 402 | |
Series of Individually Immaterial Business Acquisitions | |||
Business Acquisition [Line Items] | |||
Payments for acquisitions, net of cash acquired | 42 | $ 66 | |
Cash Acquired from Acquisition | $ 3 | ||
Fireglass, Ltd. and Skycure, Ltd. | |||
Business Acquisition [Line Items] | |||
Payments for acquisitions, net of cash acquired | $ 345 | ||
Cash Acquired from Acquisition | $ 15 |
Acquisitions and Divestiture Di
Acquisitions and Divestiture Divestiture (Details) - USD ($) $ in Millions | Oct. 31, 2017 | Dec. 28, 2018 | Mar. 30, 2018 | Dec. 29, 2017 | Dec. 28, 2018 | Dec. 29, 2017 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Gain on sale of other assets and liabilities | $ 0 | $ 658 | $ 0 | $ 658 | ||
Income tax expense (benefit) | $ 38 | (606) | $ 70 | (683) | ||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | WSS and PKI Solutions | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Total consideration received | $ 1,100 | |||||
Cash proceeds from divestiture | 960 | $ 951 | ||||
Net assets | 450 | |||||
Cumulative currency translation losses | 8 | |||||
Transaction costs | 8 | |||||
Gain on disposal | 658 | |||||
Gain on sale of short-term investment | 7 | |||||
Gain on sale of other assets and liabilities | 651 | $ 653 | ||||
Income tax expense (benefit) | $ 123 | |||||
Income before taxes | $ 8 | $ 66 | ||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | WSS and PKI Solutions | DigiCert | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Divested operation, equity investment received, percent | 28.00% | |||||
Divested operation, equity investment received | $ 160 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Schedule of Changes in the Carrying Amount of Goodwill) (Details) $ in Millions | 9 Months Ended | |
Dec. 28, 2018USD ($) | ||
Goodwill [Roll Forward] | ||
March 30, 2018 | $ 8,319 | [1] |
Acquisitions | 30 | |
Translation adjustments | (5) | |
December 28, 2018 | 8,344 | |
Enterprise Security | ||
Goodwill [Roll Forward] | ||
March 30, 2018 | 5,734 | |
Acquisitions | 24 | |
Translation adjustments | (2) | |
December 28, 2018 | 5,756 | |
Consumer Digital Safety | ||
Goodwill [Roll Forward] | ||
March 30, 2018 | 2,585 | |
Acquisitions | 6 | |
Translation adjustments | (3) | |
December 28, 2018 | $ 2,588 | |
[1] | Derived from audited financial statements. |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Schedule of Intangible Assets, Net) (Details) - USD ($) $ in Millions | Dec. 28, 2018 | Mar. 30, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 2,504 | $ 2,512 | |
Accumulated Amortization | (1,029) | (726) | |
Net Carrying Amount | 1,475 | 1,786 | |
Indefinite-lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 3,358 | 3,369 | |
Net Carrying Amount | 2,329 | 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 | 2 | 5 | |
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 1,466 | 1,462 | |
Accumulated Amortization | (507) | (357) | |
Net Carrying Amount | 959 | 1,105 | |
Developed technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 1,025 | 1,037 | |
Accumulated Amortization | (513) | (361) | |
Net Carrying Amount | 512 | 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 | 9 Months Ended | ||
Dec. 28, 2018 | Dec. 29, 2017 | Dec. 28, 2018 | Dec. 29, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | $ 52 | $ 52 | $ 156 | $ 166 |
Customer relationships | Operating expenses | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | 52 | 52 | 156 | 166 |
Developed technology | Cost of revenues | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | 59 | 59 | 176 | 175 |
Segment Reconciling Items | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | $ 111 | $ 111 | $ 332 | $ 341 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets (Schedule of Future Intangible Asset Amortization Expense) (Details) - USD ($) $ in Millions | Dec. 28, 2018 | Mar. 30, 2018 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remainder of 2019 | $ 110 | |
2,020 | 437 | |
2,021 | 327 | |
2,022 | 266 | |
2,023 | 223 | |
Thereafter | 112 | |
Net Carrying Amount | $ 1,475 | $ 1,786 |
Supplementary Information (Cash
Supplementary Information (Cash and Cash Equivalents) (Details) - USD ($) $ in Millions | Dec. 28, 2018 | Mar. 30, 2018 | |
Supplementary Information [Abstract] | |||
Cash | $ 313 | $ 1,016 | |
Cash equivalents | 1,996 | 758 | |
Total cash and cash equivalents | $ 2,309 | $ 1,774 | [1] |
[1] | Derived from audited financial statements. |
Supplementary Information (Othe
Supplementary Information (Other Current Assets) (Details) - USD ($) $ in Millions | 1 Months Ended | ||||
Oct. 31, 2018 | Dec. 28, 2018 | Mar. 31, 2018 | Mar. 30, 2018 | ||
Subsequent Event [Line Items] | |||||
Proceeds from Sale of Productive Assets | $ 26 | ||||
Prepaid expenses | $ 162 | $ 177 | |||
Income tax receivable and prepaid income taxes | 39 | $ 99 | 107 | ||
Short-term deferred commissions | 99 | 86 | 94 | ||
Assets held for sale | 0 | 26 | |||
Other | 122 | 118 | |||
Total other current assets | $ 422 | $ 506 | $ 522 | [1] | |
[1] | Derived from audited financial statements. |
Supplementary Information (Prop
Supplementary Information (Property and Equipment) (Details) - USD ($) $ in Millions | Dec. 28, 2018 | Mar. 30, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Total property and equipment, gross | $ 2,074 | $ 1,990 | |
Accumulated depreciation and amortization | (1,283) | (1,212) | |
Total property and equipment, net | 791 | 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 | 1,136 | 1,081 | |
Office furniture and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment, gross | 117 | 110 | |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment, gross | 364 | 365 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment, gross | 357 | 339 | |
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment, gross | $ 35 | $ 29 | |
[1] | Derived from audited financial statements. |
Supplementary Information (Ot_2
Supplementary Information (Other Long-term Assets) (Details) - USD ($) $ in Millions | Dec. 28, 2018 | Mar. 31, 2018 | Mar. 30, 2018 | |
Supplementary Information [Abstract] | ||||
Cost method investments | $ 179 | $ 175 | ||
Equity method investment | 51 | 134 | ||
Long-term income tax receivable and prepaid income taxes | 31 | $ 29 | 61 | |
Deferred income tax assets | 828 | 828 | 46 | |
Long-term deferred commissions | 92 | 92 | 35 | |
Other | 87 | 75 | ||
Total other long-term assets | $ 1,268 | $ 1,333 | $ 526 | [1] |
[1] | Derived from audited financial statements. |
Supplementary Information (Cont
Supplementary Information (Contract Liabilities) (Details) - USD ($) $ in Millions | Dec. 28, 2018 | Mar. 31, 2018 | Mar. 30, 2018 | |
Supplementary Information [Abstract] | ||||
Deferred revenue | $ 1,738 | $ 2,368 | ||
Customer deposit liabilities | 476 | 0 | ||
Total short-term contract liabilities | $ 2,214 | $ 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 | Dec. 28, 2018 | Mar. 30, 2018 | |
Supplementary Information [Abstract] | |||
Deemed repatriation tax payable | $ 730 | $ 824 | |
Uncertain tax positions (including interest and penalties) | 325 | 302 | |
Total long-term income taxes payable | $ 1,055 | $ 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 | 9 Months Ended | ||
Dec. 28, 2018 | Dec. 29, 2017 | Dec. 28, 2018 | Dec. 29, 2017 | |
Supplementary Information [Abstract] | ||||
Interest income | $ 11 | $ 5 | $ 29 | $ 16 |
Loss from equity interest | (24) | 0 | (84) | 0 |
Foreign exchange loss | (4) | (5) | (16) | (26) |
Other | (2) | 9 | 11 | 10 |
Total other income (expense), net | $ (19) | $ 9 | $ (60) | $ 0 |
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 | Dec. 28, 2018 | Mar. 30, 2018 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | $ 2,266 | $ 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 | 1,485 | 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 | 511 | 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 | 1 | 12 |
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 |
Fair Value | Short-term investments: | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 269 | 374 |
Reported Value Measurement | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 1,485 | 679 |
Reported Value Measurement | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 781 | 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 | 1,485 | 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 | 511 | 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 | 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 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 2 | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 1 | 12 |
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 |
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 | $ 269 | $ 374 |
Financial Instruments and Fai_4
Financial Instruments and Fair Value Measurements (Schedule of Debt Maturities) (Details) $ in Millions | Dec. 28, 2018USD ($) |
Fair Value Disclosures [Abstract] | |
Due in one year or less | $ 64 |
Due after one year through five years | 206 |
Total | $ 270 |
Financial Instruments and Fai_5
Financial Instruments and Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Dec. 28, 2018 | Dec. 29, 2017 | Dec. 28, 2018 | Dec. 29, 2017 | Mar. 30, 2018 | |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||||
Cost method investments | $ 179 | $ 179 | $ 175 | ||
Equity method investment | 51 | 51 | 134 | ||
Loss from equity interest | 24 | $ 0 | 84 | $ 0 | |
Level 2 | |||||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||||
Fair value of debt | 3,800 | 3,800 | $ 3,900 | ||
Other income (expense), net | |||||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||||
Loss from equity interest | $ 24 | $ 84 |
Financial Instruments and Fai_6
Financial Instruments and Fair Value Measurements (Equity Method Investment, Summarized Financial Information, Profit (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Dec. 28, 2018 | Dec. 28, 2018 | |
Fair Value Disclosures [Abstract] | ||
Revenue | $ 80 | $ 220 |
Gross profit | 67 | 181 |
Net loss | $ (83) | $ (288) |
Debt (Summary of Components of
Debt (Summary of Components of Debt) (Details) - USD ($) $ in Millions | Dec. 28, 2018 | Mar. 30, 2018 | |
Debt Instrument [Line Items] | |||
Total principal amount | $ 5,100 | $ 5,100 | |
Less: unamortized discount and issuance costs | (55) | (74) | |
Total debt | 5,045 | 5,026 | |
Current portion of long-term debt | (598) | 0 | [1] |
Total long-term debt | 4,447 | 5,026 | [1] |
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 | |
Unsecured Debt | Senior Term Loan A-5 due August 1, 2021 | |||
Debt Instrument [Line Items] | |||
Total principal amount | $ 500 | $ 500 | |
Unsecured Debt | Senior Term Loan A-2 due August 1, 2019 | |||
Debt Instrument [Line Items] | |||
Interest rate | 4.06% | 3.31% | |
Unsecured Debt | Senior Term Loan A-5 due August 1, 2021 | |||
Debt Instrument [Line Items] | |||
Interest rate | 4.26% | 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% | ||
[1] | Derived from audited financial statements. |
Debt (Maturities of Long-term D
Debt (Maturities of Long-term Debt) (Details) - USD ($) $ in Millions | Dec. 28, 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) - Convertible Debt - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 28, 2018 | Dec. 29, 2017 | Dec. 28, 2018 | Dec. 29, 2017 | |
Debt Instrument [Line Items] | ||||
Contractual interest expense | $ 9 | $ 9 | $ 28 | $ 28 |
Amortization of debt discount and issuance costs | $ 4 | $ 4 | $ 12 | $ 12 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) | 9 Months Ended | |
Dec. 28, 2018 | Mar. 30, 2018 | |
Debt Instrument [Line Items] | ||
Stock closing price (in dollars per share) | $ 18.56 | |
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% | |
If-converted value in excess of principal | $ 53,000,000 | |
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 | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity, revolving line of credit | $ 1,000,000,000 | |
Amount outstanding, revolving line of credit | $ 0 | $ 0 |
Derivatives (Details)
Derivatives (Details) - Foreign Exchange Forward - Not Designated as Hedging Instrument - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Dec. 28, 2018 | Dec. 29, 2017 | Dec. 28, 2018 | Dec. 29, 2017 | Mar. 30, 2018 | |
Other income (expense), net | |||||
Derivatives, Fair Value [Line Items] | |||||
Foreign exchange forward contracts gain (loss) | $ (1) | $ 1 | $ (39) | $ 11 | |
Foreign exchange forward contracts purchased | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional amount | 825 | 825 | $ 697 | ||
Foreign exchange forward contracts sold | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional amount | $ 94 | $ 94 | $ 151 |
Restructuring, Transition and_3
Restructuring, Transition and Other Costs (Schedule of the Restructuring and Separation Liabilities Summary) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2018 | Dec. 28, 2018 | Dec. 29, 2017 | Dec. 28, 2018 | Dec. 29, 2017 | |
Restructuring and Related Cost, Expected Cost [Abstract] | |||||
Severance and termination benefit costs | $ 5 | $ 11 | $ 17 | $ 50 | |
Other exit and disposal costs | 3 | (2) | 13 | 15 | |
Asset write-offs | 0 | 9 | 2 | 18 | |
Transition costs | 45 | 75 | 173 | 195 | |
Total restructuring, transition and other costs | 53 | $ 93 | 205 | $ 278 | |
Restructuring Reserve [Roll Forward] | |||||
March 30, 2018 | 25 | ||||
Net Charges | 30 | ||||
Cash Payments | (44) | ||||
December 28, 2018 | 11 | 11 | |||
Severance and termination benefit costs | |||||
Restructuring Reserve [Roll Forward] | |||||
March 30, 2018 | 10 | ||||
Net Charges | 17 | ||||
Cash Payments | (23) | ||||
December 28, 2018 | 4 | 4 | |||
Other exit and disposal costs | |||||
Restructuring Reserve [Roll Forward] | |||||
March 30, 2018 | 15 | ||||
Net Charges | 13 | ||||
Cash Payments | (21) | ||||
December 28, 2018 | 7 | 7 | |||
Fiscal 2019 Plan | Severance and termination benefit costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Expected number of positions eliminated, percent | 8.00% | ||||
Expected cost | $ 50 | ||||
Cumulative incurred to date | 9 | 9 | |||
Fiscal 2017 Plan: | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Cumulative incurred to date | $ 289 | $ 289 |
Income Taxes (Schedule of Effec
Income Taxes (Schedule of Effective Tax Rate) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 28, 2018 | Dec. 29, 2017 | Dec. 28, 2018 | Dec. 29, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Income from continuing operations before income taxes | $ 97 | $ 705 | $ 56 | $ 502 |
Income tax expense (benefit) | $ 38 | $ (606) | $ 70 | $ (683) |
Effective tax rate (as a percent) | 39.00% | (86.00%) | 125.00% | (136.00%) |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 28, 2018 | Dec. 29, 2017 | Dec. 28, 2018 | Dec. 29, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Decrease in unrecognized tax benefit, reasonable possible amount in the next 12 months | $ 22 | $ 22 | ||
Discontinued Operations, Disposed of by Sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income tax expense (benefit) | $ (3) | $ (30) | $ 1 | $ 7 |
Stockholders' Equity (Summary o
Stockholders' Equity (Summary of Dividends Declared and Paid) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 28, 2018 | Dec. 29, 2017 | Dec. 28, 2018 | Dec. 29, 2017 | |
Stockholders' Equity Note [Abstract] | ||||
Dividends declared and paid | $ 48 | $ 47 | $ 143 | $ 139 |
Dividend equivalents paid | 11 | 2 | 26 | 24 |
Total dividends and dividend equivalents paid | $ 59 | $ 49 | $ 169 | $ 163 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | Jan. 31, 2109 | Jan. 31, 2019 | Dec. 28, 2018 | Dec. 29, 2017 | Dec. 28, 2018 | Dec. 29, 2017 |
Class of Stock [Line Items] | ||||||
Dividends declared per common share (in dollars per share) | $ 0.075 | $ 0.075 | $ 0.225 | $ 0.225 | ||
Remaining authorized repurchase amount | $ 800 | $ 800 | ||||
Subsequent Event | ||||||
Class of Stock [Line Items] | ||||||
Remaining authorized repurchase amount | $ 1,300 | |||||
Stock repurchase authorization increase amount | $ 500 | |||||
Subsequent Event | Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Dividends declared per common share (in dollars per share) | $ 0.075 |
Stockholders' Equity (Schedule
Stockholders' Equity (Schedule of Accumulated Other Comprehensive Income (Loss)) (Details) $ in Millions | 9 Months Ended | |
Dec. 28, 2018USD ($) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
March 30, 2018 | $ 5,023 | [1] |
December 28, 2018 | 5,906 | |
Total | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
March 30, 2018 | 4 | |
Other comprehensive income (loss) before reclassifications | (18) | |
December 28, 2018 | (14) | |
Foreign Currency Translation Adjustments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
March 30, 2018 | 8 | |
Other comprehensive income (loss) before reclassifications | (21) | |
December 28, 2018 | (13) | |
Unrealized Loss on Available-For-Sale Securities | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
March 30, 2018 | (4) | |
Other comprehensive income (loss) before reclassifications | 1 | |
December 28, 2018 | (3) | |
Equity Method Investee | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
March 30, 2018 | 0 | |
Other comprehensive income (loss) before reclassifications | 2 | |
December 28, 2018 | $ 2 | |
[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 | 9 Months Ended | ||
Dec. 28, 2018 | Dec. 29, 2017 | Dec. 28, 2018 | Dec. 29, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | $ 55 | $ 125 | $ 265 | $ 448 |
Income tax expense (benefit) for stock-based compensation expense | (12) | 2 | (59) | (107) |
Cost of revenues | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 4 | 7 | 13 | 22 |
Sales and marketing | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 23 | 30 | 85 | 123 |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 19 | 49 | 97 | 143 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | $ 9 | $ 39 | $ 70 | $ 160 |
Stock-Based Compensation (Infor
Stock-Based Compensation (Information Related to Stock-baed Compensation) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2018 | Jun. 29, 2018 | Dec. 28, 2018 | Dec. 29, 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 | $ 30.20 | |||
Awards granted and assumed (in shares) | 14 | 12 | |||
Total fair value of awards released | $ 203 | $ 265 | |||
Outstanding and unvested (in shares) | 21 | 21 | |||
PRUs: | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted-average fair value per grant (in usd per share) | $ 21.21 | $ 32.94 | |||
Awards granted and assumed (in shares) | 2 | 4 | |||
Total fair value of awards released | $ 261 | $ 24 | |||
Outstanding and unvested (in shares) | 4 | 9 | |||
Released shares (in shares) | 12 | ||||
Stock options: | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total intrinsic value of stock options exercised | $ 13 | $ 123 | |||
Outstanding (in shares) | 12 | 14 | |||
Restricted stock: | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Outstanding and unvested (in shares) | 1 | 1 | |||
Liability-Classified Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Liability current | $ 21 | $ 25 | |||
Liability-Classified Awards | Certain Employees | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Awards granted and assumed (in shares) | 1 | ||||
Awards vested (in shares) | 1 |
Stock-Based Compensation (Sch_2
Stock-Based Compensation (Schedule of Unrecognized Compensation Costs) (Details) $ in Millions | 9 Months Ended |
Dec. 28, 2018USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Compensation cost not yet recognized | $ 372 |
RSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Compensation cost not yet recognized | $ 280 |
Compensation cost not yet recognized, period for recognition (in years) | 1 year 9 months |
PRUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Compensation cost not yet recognized | $ 35 |
Compensation cost not yet recognized, period for recognition (in years) | 1 year |
Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Compensation cost not yet recognized | $ 12 |
Compensation cost not yet recognized, period for recognition (in years) | 1 year 3 months |
Restricted stock: | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Compensation cost not yet recognized | $ 23 |
Compensation cost not yet recognized, period for recognition (in years) | 1 year 7 months |
Liability-Classified Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Compensation cost not yet recognized | $ 22 |
Compensation cost not yet recognized, period for recognition (in years) | 1 year |
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 | 9 Months Ended | |||
Dec. 28, 2018 | Dec. 29, 2017 | Dec. 28, 2018 | Dec. 29, 2017 | ||
Earnings Per Share [Abstract] | |||||
Income (loss) from continuing operations | $ 59 | $ 1,311 | $ (14) | $ 1,185 | |
Income from discontinued operations, net of income taxes | 6 | 31 | 11 | 12 | |
Net income (loss) | $ 65 | $ 1,342 | $ (3) | $ 1,197 | |
Income (loss) per share - basic: | |||||
Continuing operations (in dollars per share) | $ 0.09 | $ 2.12 | $ (0.02) | $ 1.93 | |
Discontinued operations (in dollars per share) | 0.01 | 0.05 | 0.02 | 0.02 | |
Net income (loss) per share - basic | 0.10 | 2.17 | 0 | 1.95 | |
Income (loss) per share - diluted: | |||||
Continuing operations (in dollars per share) | 0.09 | 1.97 | (0.02) | 1.78 | |
Discontinued operations (in dollars per share) | 0.01 | 0.05 | 0.02 | 0.02 | |
Net loss per share - diluted (in dollars per share) | [1] | $ 0.10 | $ 2.01 | $ 0 | $ 1.80 |
Weighted-average shares outstanding - basic | 637 | 619 | 631 | 614 | |
Dilutive potentially issuable shares - convertible debt | 7 | 33 | 0 | 33 | |
Dilutive potentially issuable shares - employee equity awards | 11 | 15 | 0 | 18 | |
Weighted-average shares outstanding - diluted | 655 | 667 | 631 | 665 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Anti-dilutive shares excluded from diluted net income per share calculation (in shares) | 8 | 1 | 138 | 1 | |
Convertible debt | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Anti-dilutive shares excluded from diluted net income per share calculation (in shares) | 0 | 0 | 91 | 0 | |
Employee equity awards | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Anti-dilutive shares excluded from diluted net income per share calculation (in shares) | 8 | 1 | 47 | 1 | |
[1] | Net income per share amounts may not add due to rounding. |
Net Income Per Share (Narrative
Net Income Per Share (Narrative) (Details) - Convertible Debt | Dec. 28, 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 | 9 Months Ended | ||
Dec. 28, 2018USD ($) | Dec. 29, 2017USD ($) | Dec. 28, 2018USD ($)segment | Dec. 29, 2017USD ($) | |
Segment Reporting [Abstract] | ||||
Number of reportable segments | segment | 2 | |||
Segment Reporting Information [Line Items] | ||||
Net revenues | $ 1,211 | $ 1,209 | $ 3,542 | $ 3,624 |
Intersegment Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 0 | 0 | 0 | 0 |
U.S. | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | $ 763 | $ 711 | $ 2,165 | $ 2,103 |
(Schedule of Reportable Segment
(Schedule of Reportable Segment Data) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 28, 2018 | Dec. 29, 2017 | Dec. 28, 2018 | Dec. 29, 2017 | |
Segment Reporting Information [Line Items] | ||||
Net revenues | $ 1,211 | $ 1,209 | $ 3,542 | $ 3,624 |
Operating income | 169 | 96 | 273 | 43 |
Reportable Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 1,211 | 1,209 | 3,542 | 3,624 |
Operating income | 388 | 438 | 1,073 | 1,161 |
Reportable Segments | Enterprise Security | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 609 | 625 | 1,739 | 1,957 |
Operating income | 91 | 136 | 227 | 377 |
Reportable Segments | Consumer Digital Safety | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 602 | 584 | 1,803 | 1,667 |
Operating income | $ 297 | $ 302 | $ 846 | $ 784 |
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 | 9 Months Ended | ||
Dec. 28, 2018 | Dec. 29, 2017 | Dec. 28, 2018 | Dec. 29, 2017 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating income (loss) | $ 169 | $ 96 | $ 273 | $ 43 |
Stock-based compensation expense | 55 | 125 | 265 | 448 |
Amortization of intangible assets | 52 | 52 | 156 | 166 |
Reportable Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating income (loss) | 388 | 438 | 1,073 | 1,161 |
Segment Reconciling Items | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Stock-based compensation expense | 55 | 125 | 265 | 448 |
Amortization of intangible assets | 111 | 111 | 332 | 341 |
Restructuring, transition and other costs | 53 | 93 | 205 | 278 |
Acquisition-related costs | 0 | 13 | 3 | 51 |
Other | $ 0 | $ 0 | $ (5) | $ 0 |
Segment and Geographical Info_5
Segment and Geographical Information (Schedule of Product Revenue Information) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 28, 2018 | Dec. 29, 2017 | Dec. 28, 2018 | Dec. 29, 2017 | |
Segment Reporting Information [Line Items] | ||||
Net revenues | $ 1,211 | $ 1,209 | $ 3,542 | $ 3,624 |
Total Enterprise Security | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 609 | 625 | 1,739 | 1,957 |
Endpoint and information protection | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 260 | 240 | 769 | 722 |
Network and web security | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 207 | 215 | 567 | 592 |
Website security and public key infrastructure | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 0 | 35 | 0 | 238 |
Other products and services | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 142 | 135 | 403 | 405 |
Total Consumer Digital Safety | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 602 | 584 | 1,803 | 1,667 |
Consumer security | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 367 | 370 | 1,104 | 1,120 |
Identity and information protection | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | $ 235 | $ 214 | $ 699 | $ 547 |
Segment and Geographical Info_6
Segment and Geographical Information (Schedule of Revenue by Geographical Location) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 28, 2018 | Dec. 29, 2017 | Dec. 28, 2018 | Dec. 29, 2017 | |
Revenue from External Customer [Line Items] | ||||
Net revenues | $ 1,211 | $ 1,209 | $ 3,542 | $ 3,624 |
Americas | ||||
Revenue from External Customer [Line Items] | ||||
Net revenues | 815 | 762 | 2,315 | 2,264 |
EMEA | ||||
Revenue from External Customer [Line Items] | ||||
Net revenues | 241 | 270 | 718 | 791 |
APJ | ||||
Revenue from External Customer [Line Items] | ||||
Net revenues | $ 155 | $ 177 | $ 509 | $ 569 |
Segment and Geographical Info_7
Segment and Geographical Information (Schedule of Long-lived Assets by Geographic Location) (Details) - USD ($) $ in Millions | Dec. 28, 2018 | Mar. 30, 2018 | |
Revenue from External Customer [Line Items] | |||
Total cash, cash equivalent and short-term investments | $ 2,579 | $ 2,162 | |
Total property and equipment, net | 791 | 778 | [1] |
U.S. | |||
Revenue from External Customer [Line Items] | |||
Total cash, cash equivalent and short-term investments | 2,215 | 858 | |
Total property and equipment, net | 681 | 677 | |
International | |||
Revenue from External Customer [Line Items] | |||
Total cash, cash equivalent and short-term investments | 364 | 1,304 | |
Total property and equipment, net | $ 110 | $ 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 | 9 Months Ended | 12 Months Ended | |
Dec. 28, 2018 | Dec. 29, 2017 | Dec. 28, 2018 | Mar. 30, 2018 | |
Sales Revenue, Net | Customer A | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration risk, percentage | 10.00% | 14.00% | ||
Accounts Receivable | Customer A | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration risk, percentage | 16.00% | 22.00% | ||
Accounts Receivable | Customer B | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration risk, percentage | 15.00% | 15.00% | ||
Accounts Receivable | Customer C | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration risk, percentage | 14.00% |
Commitments and Contingencies_2
Commitments and Contingencies (Schedule of Future Minimum Lease Payments) (Details) $ in Millions | Dec. 28, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Remainder of 2019 | $ 18 |
2,020 | 53 |
2,021 | 46 |
2,022 | 36 |
2,023 | 28 |
Thereafter | 62 |
Total minimum future lease payments | 243 |
Sublease income | (8) |
Total minimum future payments, net | $ 235 |
Commitments and Contingencies_3
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 69 Months Ended | |||
Dec. 28, 2018 | Dec. 29, 2017 | Dec. 28, 2018 | Dec. 29, 2017 | Sep. 30, 2012 | Jan. 31, 2014 | |
Loss Contingencies [Line Items] | ||||||
Purchase Obligation | $ 1,090 | $ 1,090 | ||||
Transition tax on untaxed foreign earnings | 703 | |||||
Net revenues | 1,211 | $ 1,209 | 3,542 | $ 3,624 | ||
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 | $ 25 |