Cover Page
Cover Page - shares | 3 Months Ended | |
Jul. 05, 2019 | Jul. 31, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jul. 5, 2019 | |
Document Transition Report | false | |
Entity File Number | 000-17781 | |
Entity Registrant Name | Symantec Corp | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 77-0181864 | |
Entity Address, Address Line One | 350 Ellis Street, | |
Entity Address, City or Town | Mountain View, | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94043 | |
City Area Code | 650 | |
Local Phone Number | 527-8000 | |
Title of 12(b) Security | Common Stock, | |
Trading Symbol | SYMC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 618,031,627 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0000849399 | |
Current Fiscal Year End Date | --04-03 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Jul. 05, 2019 | Mar. 29, 2019 | [1] |
Current assets: | |||
Cash and cash equivalents | $ 1,532 | $ 1,791 | |
Short-term investments | 162 | 252 | |
Accounts receivable, net | 438 | 708 | |
Other current assets | 429 | 435 | |
Total current assets | 2,561 | 3,186 | |
Property and equipment, net | 784 | 790 | |
Operating lease assets | 183 | ||
Intangible assets, net | 2,137 | 2,250 | |
Goodwill | 8,449 | 8,450 | |
Other long-term assets | 1,255 | 1,262 | |
Total assets | 15,369 | 15,938 | |
Current liabilities: | |||
Accounts payable | 135 | 165 | |
Accrued compensation and benefits | 198 | 257 | |
Current portion of long-term debt | 494 | 491 | |
Contract liabilities | 2,211 | 2,320 | |
Current operating lease liabilities | 45 | ||
Other current liabilities | 525 | 533 | |
Total current liabilities | 3,608 | 3,766 | |
Long-term debt | 3,964 | 3,961 | |
Long-term contract liabilities | 688 | 736 | |
Deferred income tax liabilities | 548 | 577 | |
Long-term income taxes payable | 1,078 | 1,076 | |
Long-term operating lease liabilities | 163 | ||
Other long-term liabilities | 70 | 84 | |
Total liabilities | 10,119 | 10,200 | |
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; 617 and 630 shares issued and outstanding as of July 5, 2019 and March 29, 2019, respectively | 4,701 | 4,812 | |
Accumulated other comprehensive loss | (12) | (7) | |
Retained earnings | 561 | 933 | |
Total stockholders’ equity | 5,250 | 5,738 | |
Total liabilities and stockholders’ equity | $ 15,369 | $ 15,938 | |
[1] | Derived from audited financial statements. |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | ||
Jul. 05, 2019 | Jun. 29, 2018 | ||
Income Statement [Abstract] | |||
Net revenues | $ 1,247 | $ 1,156 | |
Cost of revenues | 272 | 249 | |
Gross profit | 975 | 907 | |
Operating expenses: | |||
Sales and marketing | 393 | 386 | |
Research and development | 241 | 237 | |
General and administrative | 108 | 133 | |
Amortization of intangible assets | 51 | 53 | |
Restructuring, transition and other costs | 25 | 96 | |
Total operating expenses | 818 | 905 | |
Operating income | 157 | 2 | |
Interest expense | (49) | (52) | |
Other expense, net | 0 | (19) | |
Income (loss) from continuing operations before income taxes | 108 | (69) | |
Income tax expense (benefit) | 82 | (4) | |
Income (loss) from continuing operations | 26 | (65) | |
Income from discontinued operations | 0 | 5 | |
Net income (loss) | $ 26 | $ (60) | |
Income (loss) per share - basic: | |||
Continuing operations (in dollars per share) | $ 0.04 | $ (0.10) | |
Discontinued operations (in dollars per share) | 0 | 0.01 | |
Net income (loss) per share - basic | [1] | 0.04 | (0.10) |
Income (loss) per share - diluted: | |||
Continuing operations (in dollars per share) | 0.04 | (0.10) | |
Discontinued operations (in dollars per share) | 0 | 0.01 | |
Net loss per share - diluted (in dollars per share) | [1] | $ 0.04 | $ (0.10) |
Weighted-average shares outstanding: | |||
Basic (in shares) | 619 | 624 | |
Diluted (in shares) | 642 | 624 | |
[1] | Net income (loss) per share may not add due to rounding. |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jul. 05, 2019 | Mar. 29, 2019 |
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) | 617,000,000 | 630,000,000 |
Common stock, number of shares outstanding (in shares) | 617,000,000 | 630,000,000 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 05, 2019 | Jun. 29, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ 26 | $ (60) |
Other comprehensive income (loss), net of taxes: | ||
Foreign currency translation adjustments | (7) | (24) |
Net unrealized gain on available-for-sale securities | 1 | 0 |
Other comprehensive income from equity method investee | 1 | 0 |
Other comprehensive loss, net of taxes | (5) | (24) |
Comprehensive income (loss) | $ 21 | $ (84) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Total Stockholders’ Equity | Common Stock and Additional Paid-In Capital | Accumulated Other Comprehensive Income | Retained Earnings |
Balance, beginning of year (in shares) at Mar. 30, 2018 | 624 | ||||
Balance, beginning of year at Mar. 30, 2018 | $ 5,023 | $ 4,691 | $ 4 | $ 328 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | $ (60) | (60) | (60) | ||
Other comprehensive loss | (24) | (24) | |||
Common stock issued under employee stock incentive plans (in shares) | 9 | ||||
Common stock issued under employee stock incentive plans | 4 | $ 4 | |||
Shares withheld for taxes related to vesting of restricted stock units (in shares) | (2) | ||||
Shares withheld for taxes related to vesting of restricted stock units | (45) | $ (45) | |||
Cash dividends declared and dividend equivalents accrued | (49) | 0 | (49) | ||
Stock-based compensation | 130 | $ 130 | |||
Balance, end of year (in shares) at Jun. 29, 2018 | 631 | ||||
Balance, end of year at Jun. 29, 2018 | 5,918 | $ 4,780 | (20) | 1,158 | |
Balance, beginning of year (in shares) at Mar. 30, 2018 | 624 | ||||
Balance, beginning of year at Mar. 30, 2018 | 5,023 | $ 4,691 | 4 | 328 | |
Balance, end of year (in shares) at Mar. 29, 2019 | 630 | 630 | |||
Balance, end of year at Mar. 29, 2019 | 5,738 | $ 4,812 | (7) | 933 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | $ 26 | 26 | 26 | ||
Other comprehensive loss | (5) | (5) | |||
Common stock issued under employee stock incentive plans (in shares) | 16 | ||||
Common stock issued under employee stock incentive plans | 37 | $ 37 | |||
Shares withheld for taxes related to vesting of restricted stock units (in shares) | (3) | ||||
Shares withheld for taxes related to vesting of restricted stock units | (57) | $ (57) | |||
Repurchases of common stock (in shares) | (26) | ||||
Repurchases of common stock | (541) | $ (190) | (351) | ||
Cash dividends declared and dividend equivalents accrued | (47) | 0 | (47) | ||
Stock-based compensation | 99 | $ 99 | |||
Balance, end of year (in shares) at Jul. 05, 2019 | 617 | 617 | |||
Balance, end of year at Jul. 05, 2019 | $ 5,250 | $ 4,701 | $ (12) | $ 561 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Jul. 05, 2019 | Jun. 29, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends declared per common share (in dollars per share) | $ 0.075 | $ 0.075 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 05, 2019 | Jun. 29, 2018 | |
OPERATING ACTIVITIES: | ||
Net income (loss) | $ 26 | $ (60) |
Income from discontinued operations | 0 | (5) |
Adjustments: | ||
Amortization and depreciation | 158 | 152 |
Impairments of long-lived assets | 3 | 4 |
Stock-based compensation expense | 80 | 113 |
Deferred income taxes | (30) | (42) |
Loss from equity interest | 11 | 26 |
Other | 13 | (47) |
Changes in operating assets and liabilities, net of acquisitions: | ||
Accounts receivable, net | 270 | 321 |
Accounts payable | (21) | 19 |
Accrued compensation and benefits | (46) | (77) |
Contract liabilities | (161) | (106) |
Income taxes payable | 72 | (1) |
Other assets | 5 | (5) |
Other liabilities | (55) | 39 |
Net cash provided by operating activities | 325 | 331 |
INVESTING ACTIVITIES: | ||
Purchases of property and equipment | (49) | (44) |
Payments for acquisitions, net of cash acquired | 0 | (5) |
Proceeds from maturities and sales of short-term investments | 92 | 64 |
Other | (5) | (5) |
Net cash provided by investing activities | 38 | 10 |
FINANCING ACTIVITIES: | ||
Net proceeds from sales of common stock under employee stock incentive plans | 37 | 4 |
Tax payments related to restricted stock units | (52) | (42) |
Dividends and dividend equivalents paid | (51) | (60) |
Repurchases of common stock | (559) | 0 |
Net cash used in financing activities | (625) | (98) |
Effect of exchange rate fluctuations on cash and cash equivalents | 3 | (16) |
Change in cash and cash equivalents | (259) | 227 |
Beginning cash and cash equivalents | 1,791 | 1,774 |
Ending cash and cash equivalents | $ 1,532 | $ 2,001 |
Description of Business and Sig
Description of Business and Significant Accounting Policies | 3 Months Ended |
Jul. 05, 2019 | |
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 is a global leader in cyber security. We provide cyber security products, services, and solutions. Our Integrated Cyber Defense Platform helps business and government customers unify cloud and on-premises security to deliver a more effective cyber defense solution, while driving down cost and complexity . Our Cyber Safety solutions under our Norton LifeLock brand help consumers protect their devices, online privacy, identities, and home networks. 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 29, 2019 . The results of operations for the three months ended July 5, 2019 are not necessarily indicative of the results expected for the entire fiscal year. We have a 52/53-week fiscal year ending on the Friday closest to March 31. Unless otherwise stated, references to three-month periods in this report relate to fiscal periods ended July 5, 2019 and June 29, 2018 . The three months ended July 5, 2019 consisted of 14 weeks, whereas the three months ended June 29, 2018 consisted of 13 weeks. Our 2020 fiscal year consists of 53 weeks and ends on April 3, 2020 . 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 stand-alone selling price for performance obligations, valuation of business combinations including acquired intangible assets and goodwill, loss contingencies, valuation of stock-based compensation, and the recognition and measurement of current and deferred income taxes, including the measurement of uncertain tax positions. Management determines these estimates and assumptions based on historical experience and on various other assumptions that are believed to be reasonable. Actual results could differ significantly from these estimates, and such differences may be material to the Condensed Consolidated Financial Statements. Significant accounting policies There have been no material changes to our significant accounting policies as of and for the three months ended July 5, 2019 , except for those noted in Note 2 and Note 4 , as compared to the significant accounting policies described in our Annual Report on Form 10-K for the fiscal year ended March 29, 2019 . |
Recent Accounting Standards
Recent Accounting Standards | 3 Months Ended |
Jul. 05, 2019 | |
Accounting Policies [Abstract] | |
Recent Accounting Standards | Recent Accounting Standards Recently adopted authoritative guidance Leases. In February 2016, the Financial Accounting Standards Board (FASB) issued new guidance on lease accounting which requires lessees to recognize assets and liabilities on their balance sheet for the rights and obligations created by operating leases and also requires disclosures designed to give users of financial statements information on the amount, timing, and uncertainty of cash flows arising from leases. Most prominent among the changes in the standard is the recognition of right-of-use (ROU) assets and lease liabilities by lessees for those leases classified as operating leases. Under the standard, disclosures are required to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. On March 30, 2019, the first day of our fiscal 2020, we adopted the new guidance using the alternative modified retrospective transition method under which we continue to apply the legacy lease accounting guidance, including its disclosure requirements, in comparative periods prior to fiscal 2020. In addition, we elected the package of practical expedients permitted under the transition guidance within the new standard that allowed us not to reassess (1) whether any expired or existing contracts are or contain leases, (2) lease classification for any expired or existing leases, and (3) initial direct costs for any existing leases. We currently do not have any finance leases. We combine the lease and non-lease components in determining the operating lease assets and liabilities. The adoption of the new lease accounting standard resulted in the recognition of ROU assets and lease liabilities of $182 million and $209 million , respectively, as of March 30, 2019 related to our operating leases. The adoption of the standard also resulted in elimination of deferred rent liabilities of $17 million , as of March 30, 2019, which are now recorded as a reduction of the ROU assets. The standard did not have an impact on our consolidated statements of operations or statements of cash flows. Recently issued authoritative guidance not yet adopted 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 | 3 Months Ended |
Jul. 05, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues Timing of revenue recognition The following table provides our revenue disaggregated by the timing of recognition: Three Months Ended (In millions) July 5, 2019 June 29, 2018 Enterprise Security: Products and services transferred at a point in time $ 93 $ 99 Products and services transferred over time $ 518 $ 457 Consumer Cyber Safety: Products and services transferred at a point in time $ 13 $ 12 Products and services transferred over time $ 623 $ 588 Total Products and services transferred at a point in time $ 106 $ 111 Products and services transferred over time $ 1,141 $ 1,045 Contract liabilities Contract liabilities by segment were as follows: (In millions) July 5, 2019 March 29, 2019 Enterprise Security $ 1,888 $ 2,002 Consumer Cyber Safety 1,011 1,054 Total $ 2,899 $ 3,056 The amount of revenue recognized during the three months ended July 5, 2019 that was included within the contract liabilities balance at March 29, 2019 was $920 million . The amount of revenue recognized during the three months ended June 29, 2018 that was included within the contract liabilities balance at March 31, 2018 was $848 million . Contract acquisition costs During the three months ended July 5, 2019 and June 29, 2018 , we recognized amortization expense of capitalized contract acquisition costs of $28 million and $23 million , respectively. 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 July 5, 2019 , we had $2,506 million of remaining performance obligations, which does not include Consumer Cyber Safety customer deposit liabilities of approximately $416 million . 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 $ 1,911 65 % 24 % 9 % 2 % Consumer Cyber Safety 595 95 % 4 % 1 % — % Total $ 2,506 72 % 19 % 7 % 1 % Percentages may not add to 100% due to rounding. |
Leases Leases
Leases Leases | 3 Months Ended |
Jul. 05, 2019 | |
Leases [Abstract] | |
Leases | Leases We lease certain of our facilities, equipment, and data center co-locations under operating leases that expire on various dates through fiscal 2029 . Our leases generally have terms that range from 1 year to 17 years for our facilities, 1 year to 6 years for equipment, and 1 year to 6 years for data center co-locations. Some of our leases contain renewal options, escalation clauses, rent concessions, and leasehold improvement incentives. We determine if an arrangement is a lease at inception. We have elected to not recognize a lease liability or right-of-use (ROU) asset for short-term leases (leases with a term of twelve months or less that do not include an option to purchase the underlying asset). Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. The interest rate we use to determine the present value of future payments is our incremental borrowing rate because the rate implicit in our leases is not readily determinable. Our incremental borrowing rate is a hypothetical rate for collateralized borrowings in economic environments where the leased asset is located based on credit rating factors. Our operating lease assets also include adjustments for prepaid lease payments , lease incentives and initial direct costs . Certain lease contracts include obligations to pay for other services, such as operations and maintenance. We elected the practical expedient whereby we record all lease components and the related minimum non-lease components as a single lease component. Cash payments made for variable lease costs are not included in the measurement of our operating lease assets and liabilities. Many of our lease terms include one or more options to renew. We do not assume renewals in our determination of the lease term unless it is reasonably certain that we will exercise that option. Lease costs for minimum lease payments for operating leases is recognized on a straight-line basis over the lease term. Our lease agreements do not contain any residual value guarantees. The following summarizes our lease costs for the three months ended July 5, 2019 : Three Months Ended (In millions) July 5, 2019 Operating lease costs $ 15 Short-term lease costs 2 Variable lease costs 8 Total lease costs $ 25 Rent expense under operating leases was $19 million for the three months ended June 29, 2018 . Other information related to our operating leases was as follows: Three Months Ended July 5, 2019 Weighted-average remaining lease term 5.3 years Weighted-average discount rate 4.28 % See Note 6 for additional cash flow information related to our operating leases. As of July 5, 2019 , the maturities of our lease liabilities by fiscal year are as follows: (In millions) Remainder of 2020 $ 39 2021 53 2022 43 2023 30 2024 26 Thereafter 42 Total lease payments 233 Less: Imputed interest (25 ) Present value of lease liabilities $ 208 As of March 29, 2019 , the minimum future rentals on non-cancelable operating leases by fiscal year, based on the previous lease accounting standard, were as follows: (In millions) 2020 $ 55 2021 49 2022 40 2023 32 2024 26 Thereafter 42 Total minimum future lease payments $ 244 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Jul. 05, 2019 | |
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 were as follows: (In millions) Enterprise Security Consumer Cyber Safety Total Balance as of March 29, 2019 $ 5,861 $ 2,589 $ 8,450 Translation adjustments (1 ) — (1 ) Balance as of July 5, 2019 $ 5,860 $ 2,589 $ 8,449 Intangible assets, net July 5, 2019 March 29, 2019 (In millions) Gross Accumulated Net Gross Accumulated Net Customer relationships $ 1,425 $ (566 ) $ 859 $ 1,425 $ (515 ) $ 910 Developed technology 1,039 (617 ) 422 1,039 (555 ) 484 Other 6 (2 ) 4 6 (2 ) 4 Total finite-lived intangible assets 2,470 (1,185 ) 1,285 2,470 (1,072 ) 1,398 Indefinite-lived trade names 852 — 852 852 — 852 Total intangible assets $ 3,322 $ (1,185 ) $ 2,137 $ 3,322 $ (1,072 ) $ 2,250 Amortization expense for purchased intangible assets is summarized below: Three Months Ended Statements of Operations Classification (In millions) July 5, 2019 June 29, 2018 Customer relationships and other $ 51 $ 53 Operating expenses Developed technology 61 58 Cost of revenues Total $ 112 $ 111 As of July 5, 2019 , future amortization expense related to intangible assets that have finite lives is as follows by fiscal year: (In millions) July 5, 2019 Remainder of 2020 $ 335 2021 338 2022 275 2023 224 2024 110 Thereafter 3 Total $ 1,285 |
Supplementary Information
Supplementary Information | 3 Months Ended |
Jul. 05, 2019 | |
Supplementary Information [Abstract] | |
Supplementary Information | Supplementary Information (in millions) Cash and cash equivalents: July 5, 2019 March 29, 2019 Cash $ 270 $ 376 Cash equivalents 1,262 1,415 Total cash and cash equivalents $ 1,532 $ 1,791 Other current assets: July 5, 2019 March 29, 2019 Prepaid expenses $ 164 $ 162 Income tax receivable and prepaid income taxes 34 61 Value-added tax receivable and other tax receivables 76 69 Short-term deferred commissions 101 92 Other 54 51 Total other current assets $ 429 $ 435 Property and equipment, net: July 5, 2019 March 29, 2019 Land $ 65 $ 66 Computer hardware and software 1,181 1,159 Office furniture and equipment 122 118 Buildings 364 364 Leasehold improvements 379 372 Construction in progress 31 30 Total property and equipment, gross 2,142 2,109 Accumulated depreciation and amortization (1,358 ) (1,319 ) Total property and equipment, net $ 784 $ 790 Other long-term assets: July 5, 2019 March 29, 2019 Cost method investments $ 186 $ 184 Equity method investment 22 32 Long-term income tax receivable and prepaid income taxes 43 34 Deferred income tax assets 833 830 Long-term deferred commissions 82 93 Other 89 89 Total other long-term assets $ 1,255 $ 1,262 Short-term contract liabilities: July 5, 2019 March 29, 2019 Deferred revenue $ 1,795 $ 1,815 Customer deposit liabilities 416 505 Total short-term contract liabilities $ 2,211 $ 2,320 Long-term income taxes payable: July 5, 2019 March 29, 2019 Deemed repatriation tax payable $ 638 $ 703 Uncertain tax positions (including interest and penalties) 440 373 Total long-term income taxes payable $ 1,078 $ 1,076 Other expense, net : Three Months Ended July 5, 2019 June 29, 2018 Interest income $ 10 $ 7 Loss from equity interest (11 ) (26 ) Foreign exchange loss (2 ) (9 ) Other 3 9 Other expense, net $ — $ (19 ) Supplemental cash flow information: Three Months Ended July 5, 2019 June 29, 2018 Income taxes paid, net of refunds $ 36 $ 21 Interest expense paid $ 48 $ 49 Cash paid for amounts included in the measurement of operating lease liabilities $ 18 $ — Non-cash operating activities: Operating lease assets obtained in exchange for operating lease liabilities $ 13 $ — Non-cash investing activities: Purchases of property and equipment in current liabilities $ 14 $ 13 |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 3 Months Ended |
Jul. 05, 2019 | |
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: July 5, 2019 March 29, 2019 (In millions) Fair Value Level 1 Level 2 Fair Value Level 1 Level 2 Assets: Cash equivalents: Money market funds $ 1,064 $ 1,064 $ — $ 1,415 $ 1,415 $ — Certificates of deposit 198 — 198 — — — Short-term investments: Corporate bonds 161 — 161 251 — 251 Certificates of deposit 1 — 1 1 — 1 Total $ 1,424 $ 1,064 $ 360 $ 1,667 $ 1,415 $ 252 The following table presents the contractual maturities of our investments in debt securities as of July 5, 2019 : (In millions) Fair Value Due in one year or less $ 97 Due after one year through five years 65 Total $ 162 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 As of July 5, 2019 and March 29, 2019 , the carrying value of our non-marketable equity investments was $186 million and $184 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 DigiCert Parent Inc. (DigiCert) that had a carrying value of $22 million and $32 million at July 5, 2019 and March 29, 2019 , respectively. We recorded a loss from equity interests of $11 million and $26 million during the three months ended July 5, 2019 and June 29, 2018 , respectively, in Other expense, net in our Condensed Consolidated Statements of Operations. This loss was reflected as a reduction in the carrying amount of our investment in equity interests in our Condensed Consolidated Balance Sheets. The following table summarizes financial data from DigiCert which was provided to us on a three-month lag: Three Months Ended (In millions) March 31, 2019 March 31, 2018 Revenue $ 106 $ 66 Gross profit $ 87 $ 53 Net loss $ (36 ) $ (82 ) On July 9, 2019, DigiCert announced that Clearlake Capital Group, L.P. (Clearlake), a private investment firm, and TA Associates, an existing investor of DigiCert and a private equity firm, have reached a definitive agreement to make an investment in DigiCert. As a part of the transaction, Clearlake and TA will become equal partners in DigiCert. The transaction is expected to close in the second half of calendar year 2019, pending customary regulatory approvals and closing conditions. Current and long-term debt As of July 5, 2019 and March 29, 2019 , the total fair value of our current and long-term fixed rate debt was $4,029 million and $3,964 million , 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 | 3 Months Ended |
Jul. 05, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following table summarizes components of our debt: (In millions, except percentages) July 5, 2019 March 29, 2019 Effective 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 4,500 4,500 Less: Unamortized discount and issuance costs (42 ) (48 ) Total debt 4,458 4,452 Less: current portion (494 ) (491 ) Total long-term debt $ 3,964 $ 3,961 (1) The senior term facility bears 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 agreement. The interest rates for the outstanding senior term loan are as follows: July 5, 2019 March 29, 2019 Senior Term Loan A-5 due August 1, 2021 4.16 % 4.24 % On or after March 4, 2020, holders of the 2.5% Convertible Senior Notes have the option to require us to repurchase the notes, in cash, equal to the principal amount and accrued and unpaid interest of the 2.5% Convertible Senior Notes. Therefore, as of July 5, 2019 and March 29, 2019, the principal amount and associated unamortized discount and issuance costs of the 2.5% Convertible Senior Notes were classified as Current portion of long-term debt in our Condensed Consolidated Balance Sheets. As of July 5, 2019 , the future contractual maturities of debt by fiscal year are as follows: (In millions) Remainder of 2020 $ — 2021 1,250 2022 1,750 2023 400 2024 — Thereafter 1,100 Total future maturities of debt $ 4,500 Based on the closing price of our common stock of $25.00 on July 5, 2019 , the if-converted value of our 2.5% Convertible Senior Notes exceeded the principal amount by approximately $245 million and the if-converted value of our 2.0% Convertible Senior Notes exceeded the principal amount by approximately $281 million . The following table sets forth total interest expense recognized related to our 2.5% and 2.0% Convertible Senior Notes: Three Months Ended (In millions) July 5, 2019 June 29, 2018 Contractual interest expense $ 10 $ 9 Amortization of debt discount and issuance costs $ 4 $ 4 Revolving credit facility We have an unsecured revolving credit facility to borrow up to $1.0 billion through May 10, 2021. Borrowings under the revolving facility bear interest at a floating rate of interest plus an applicable margin which is based on our senior unsecured credit agency rating. We are obligated to pay commitment fees on the daily amount of the unused commitment at a rate based on our debt ratings. As of July 5, 2019 and March 29, 2019 , there were no borrowings outstanding under this revolving credit facility. Debt Covenant compliance The Senior Term Loan A-5 agreement contains customary representations and warranties, non-financial covenants for financial reporting, and affirmative and negative covenants, including compliance with specified financial ratios . As of July 5, 2019 , we were in compliance with all debt covenants. |
Derivatives
Derivatives | 3 Months Ended |
Jul. 05, 2019 | |
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, or incur costs in currencies other than the entity’s functional currency. As a result, we are exposed to foreign exchange gains or losses which impacts our operating results. As part of our foreign currency risk mitigation strategy, we have entered into foreign exchange forward contracts with up to twelve 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. To help protect the net investment in a foreign operation from adverse changes in foreign currency exchange rates, we conduct a program under which we may enter into foreign currency forward and option contracts to offset the changes in the carrying amounts of these investments due to fluctuations in foreign currency exchange rates. As of July 5, 2019 and June 29, 2018 , the fair value of these contracts was insignificant. During the three months ended July 5, 2019 , the net gain recognized in Accumulated other comprehensive income (loss) was insignificant. We also enter into foreign currency forward contracts to hedge foreign currency balance sheet exposure. These forward contracts are not designated as hedging instruments. As of July 5, 2019 and June 29, 2018 , the fair value of these contracts was insignificant. The related gain (loss) recognized in Other expense, net in our Condensed Consolidated Statements of Operations was as follows: Three Months Ended (In millions) July 5, 2019 June 29, 2018 Foreign exchange forward contracts loss $ — $ (36 ) The fair value of our foreign exchange forward contracts is presented on a gross basis in our Condensed Consolidated Balance Sheets. 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 July 5, 2019 and June 29, 2018 . The notional amount of our outstanding foreign exchange forward contracts in U.S. dollar equivalent was as follows: (In millions) July 5, 2019 March 29, 2019 Net investment hedges Foreign exchange forward contracts sold $ 153 $ 116 Balance sheet contracts Foreign exchange forward contracts purchased $ 599 $ 963 Foreign exchange forward contracts sold $ 215 $ 122 |
Restructuring, Transition and O
Restructuring, Transition and Other Costs | 3 Months Ended |
Jul. 05, 2019 | |
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. Such projects were completed by the end of fiscal 2019. 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 July 5, 2019 , we have incurred costs of $47 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 completed in fiscal 2019 at a cumulative cost 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 (In millions) July 5, 2019 June 29, 2018 Severance and termination benefit costs $ 24 $ 12 Other exit and disposal costs 1 9 Asset write-offs — 2 Transition costs — 73 Total restructuring, transition and other costs $ 25 $ 96 |
Income Taxes
Income Taxes | 3 Months Ended |
Jul. 05, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The following table summarizes our effective tax rate for the periods presented: Three Months Ended (In millions, except percentages) July 5, 2019 June 29, 2018 Income (loss) before income taxes $ 108 $ (69 ) Income tax expense (benefit) $ 82 $ (4 ) Effective tax rate 76 % 6 % Our effective tax rate for the three months ended July 5, 2019 differs from the federal statutory income tax rate primarily due to tax expense related to the Ninth Circuit's recent holding in Altera Corp. v. Commissioner, various permanent differences, and state taxes, 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 the three months ended June 29, 2018 differs from the federal statutory income tax rate primarily due to the benefits of lower-taxed international earnings, the research and development tax credit, and foreign derived intangible income deduction, partially offset by tax expense from certain intercompany transactions and various permanent differences. On July 27, 2015, the United States Tax Court (Tax Court) issued its opinion in Altera Corp. v. Commissioner and concluded that related parties in a cost sharing arrangement are not required to share expenses related to stock-based compensation. The Commissioner of the Internal Revenue Service appealed the Tax Court decision to the Ninth Circuit Court of Appeals (Ninth Circuit). In June 2019, the U.S. Court of Appeals for the Ninth Circuit reversed the July 2015 decision of the U.S. Tax Court. As a result of this decision, we recorded a cumulative income tax expense of $62 million in three months ended July 5, 2019. On July 22, 2019, the taxpayer requested a rehearing before the full Ninth Circuit and may subsequently appeal from the Ninth Circuit to the Supreme Court. As a result, the final outcome of the case is uncertain. If the Altera Ninth Circuit Panel Opinion is reversed, we would anticipate recording an income tax benefit at that time. The aggregate changes in the balance of gross unrecognized tax benefits for the three months ended July 5, 2019 were as follows: Three Months Ended (In millions) July 5, 2019 Balance at beginning of year $ 446 Lapse of statute of limitations (13 ) Increase related to prior period tax positions 62 Increase related to current year tax positions 16 Net increase 65 Balance at end of quarter $ 511 As of July 5, 2019, $94 million of the gross unrecognized tax benefit was recorded in Deferred income tax liabilities and $417 million was recorded in Long-term income taxes payable . 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 $30 million , which could reduce our income tax provision and therefore benefit the resulting effective tax rate. We continue to monitor the progress of ongoing income tax controversies and the impact, if any, of the expected expiration of the statute of limitations in various taxing jurisdictions. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Jul. 05, 2019 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders' Equity Dividends On August 8, 2019 , we announced a cash dividend of $0.075 per share of common stock to be paid in September 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 During the three months ended July 5, 2019 , we executed and settled repurchases of 25 million shares for $541 million in the open market at an average price of $21.85 per share. In addition, repurchases of 1 million shares executed during fiscal 2019 settled during the three months ended July 5, 2019. As of July 5, 2019 , we had $507 million remaining under the authorization to be completed in future periods with no expiration date. Accumulated other comprehensive loss Components of Accumulated other comprehensive 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 29, 2019 $ (5 ) $ (1 ) $ (1 ) $ (7 ) Other comprehensive income (loss) before reclassifications (7 ) 1 1 (5 ) Balance as of July 5, 2019 $ (12 ) $ — $ — $ (12 ) |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Jul. 05, 2019 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation expense The following table sets forth the stock-based compensation expense recognized for our equity incentive plans: Three Months Ended (In millions) July 5, 2019 June 29, 2018 Cost of revenues $ 5 $ 5 Sales and marketing 25 31 Research and development 35 39 General and administrative 15 38 Total stock-based compensation expense $ 80 $ 113 Income tax benefit for stock-based compensation expense $ (15 ) $ (26 ) The following table summarizes additional information related to our stock-based compensation: Three Months Ended (In millions, except per grant data) July 5, 2019 June 29, 2018 RSUs: Weighted-average fair value per award granted $ 19.39 $ 21.71 Awards granted 12 10 Total fair value of awards released $ 174 $ 167 Outstanding and unvested 22 20 PRUs: Weighted-average fair value per award granted $ 19.21 $ — Awards granted 2 — Total fair value of awards released $ 26 $ 8 Outstanding and unvested at target payout 3 3 Stock options: Weight-average fair value per award granted $ 4.76 $ — Awards granted 2 — Total intrinsic value of stock options exercised $ 71 $ 7 Outstanding 8 13 Exercisable 6 11 Restricted stock: Outstanding and unvested 1 1 Liability-classified awards settled in shares For certain employees, we settled fiscal 2019 bonuses in approximately 1 million RSUs. These awards were granted and vested in the first quarter of fiscal 2020. As of July 5, 2019 and March 29, 2019 , the total liability associated with liability-classified awards was $4 million and $22 million , respectively, which is presented in Accrued compensation and benefits in our Condensed Consolidated Balance Sheets. As of July 5, 2019 , the total unrecognized stock-based compensation costs, net of estimated forfeitures, were as follows: (In millions) Unrecognized compensation cost Weighted-average remaining years RSUs $ 327 2.2 years PRUs 32 1.7 years Options 18 1.3 years Restricted stock 18 1.3 years Liability-classified awards settled in shares 25 2.1 years Employee stock purchase plan 10 0.6 years Total $ 430 |
Net Income Per Share
Net Income Per Share | 3 Months Ended |
Jul. 05, 2019 | |
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 three months ended June 29, 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 (In millions, except per share amounts) July 5, 2019 June 29, 2018 Income (loss) from continuing operations $ 26 $ (65 ) Income from discontinued operations — 5 Net income (loss) $ 26 $ (60 ) Income (loss) per share - basic: Continuing operations $ 0.04 $ (0.10 ) Discontinued operations $ — $ 0.01 Net income (loss) per share - basic (1) $ 0.04 $ (0.10 ) Income (loss) per share - diluted: Continuing operations $ 0.04 $ (0.10 ) Discontinued operations $ — $ 0.01 Net income (loss) per share - diluted (1) $ 0.04 $ (0.10 ) Weighted-average shares outstanding - basic 619 624 Dilutive potentially issuable shares: Convertible debt 10 — Employee equity awards 13 — Weighted-average shares outstanding - diluted 642 624 Anti-dilutive shares excluded from diluted net income (loss) per share calculation: Convertible debt — 91 Employee equity awards 5 55 Total 5 146 (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 three months ended June 29, 2018 as there was a loss from continuing operations in the period . |
Segment and Geographical Inform
Segment and Geographical Information | 3 Months Ended |
Jul. 05, 2019 | |
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 our Integrated Cyber Defense solutions to help business and government customers unify cloud and on-premises security to deliver a more effective cyber defense solution, while driving down cost and complexity. See Note 17 to the Condensed Consolidated Financial Statements for additional information about the planned divestiture of our Enterprise Security business . • Consumer Cyber Safety. Our Consumer Cyber Safety segment focuses on providing cyber safety solutions under our Norton LifeLock brand to help consumers protect their devices, online privacy, identities, and home networks. Operating segments are based upon the nature of our business and how our business is managed. Our Chief Operating Decision Makers (CODM), use our operating segment financial information to evaluate segment performance and to allocate resources. There were no inter-segment sales for the periods presented. The following table summarizes the operating results of our reportable segments: Three Months Ended (In millions) July 5, 2019 June 29, 2018 Total Segments: Net revenues $ 1,247 $ 1,156 Operating income $ 375 $ 319 Enterprise Security: Net revenues $ 611 $ 556 Operating income $ 39 $ 56 Consumer Cyber Safety: Net revenues $ 636 $ 600 Operating income $ 336 $ 263 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. The following table provides a reconciliation of our total reportable segments’ operating income to our total operating income: Three Months Ended (In millions) July 5, 2019 June 29, 2018 Total segment operating income $ 375 $ 319 Reconciling items: Stock-based compensation expense 80 113 Amortization of intangible assets 112 111 Restructuring, transition and other costs 25 96 Other 1 (3 ) Total consolidated operating income from continuing operations $ 157 $ 2 The following table summarizes net revenues by significant products and services categories: Three Months Ended (In millions) July 5, 2019 June 29, 2018 Enterprise Security: Endpoint and information protection $ 261 $ 249 Network and web security 196 173 Other products and services 154 134 Total Enterprise Security $ 611 $ 556 Consumer Cyber Safety: Consumer security $ 381 $ 369 Identity and information protection 255 231 Total Consumer Cyber Safety 636 600 Total net revenues $ 1,247 $ 1,156 From time to time, changes in our product hierarchy cause changes to the product categories above. When changes occur, we recast historical amounts to match the current product hierarchy. Endpoint and information protection products include endpoint security, advanced threat protection, 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. Other products and services primarily consist of email security products, managed security services, consulting, and other professional services. Consumer security products include Norton security, Norton Secure VPN, and other consumer security solutions. Identity and information protection products include LifeLock identity theft protection and other information protection solutions. Geographical information Net revenues by geography are based on the billing addresses of our customers. The following table represents net revenues by geographic area for the periods presented: Three Months Ended (In millions) July 5, 2019 June 29, 2018 Americas $ 807 $ 734 EMEA 252 243 APJ 188 179 Total net revenues $ 1,247 $ 1,156 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 $754 million and $688 million during the three months ended July 5, 2019 and June 29, 2018 , respectively. No other individual country accounted for more than 10% of revenues. Most of our assets, as of July 5, 2019 and March 29, 2019 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) July 5, 2019 March 29, 2019 U.S. $ 1,216 $ 1,544 International 478 499 Total cash, cash equivalent and short-term investments $ 1,694 $ 2,043 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) July 5, 2019 March 29, 2019 U.S. $ 661 $ 671 International (1) 123 119 Total property and equipment, net $ 784 $ 790 (1) No individual country represented more than 10% of the respective totals. Our operating lease assets by geographic area, based on the physical location of the asset, were as follows: (In millions) July 5, 2019 U.S. $ 95 India 22 Other international countries (1) 66 Total operating lease assets $ 183 (1) No other international country represented more than 10% of the respective totals. Significant customers In the three months ended July 5, 2019 and June 29, 2018 , no customer accounted for more than 10% of our net revenues. Customers, which are distributors, that accounted for over 10% of our net accounts receivable were as follows: July 5, 2019 March 29, 2019 Customer A 15 % 16 % Customer B 11 % 15 % Customer C 11 % N/A |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Jul. 05, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Purchase obligations As of July 5, 2019 , we had purchase obligations of $1,107 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 July 5, 2019 , 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 Tax Cuts and Jobs Act (H.R.1). 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 material liabilities related to such indemnification obligations in our Condensed Consolidated Financial Statements. In connection with the sale of our Veritas information management business, we assigned several leases to Veritas Technologies LLC or its related subsidiaries. As a condition to consenting to the assignments, certain lessors required us to agree to indemnify the lessor under the applicable lease with respect to certain matters, including, but not limited to, losses arising out of Veritas Technologies LLC or its related subsidiaries’ breach of payment obligations under the terms of the lease. As with our other indemnification obligations discussed above and in general, it is not possible to determine the aggregate maximum potential loss under these indemnification agreements due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular agreement. As with our other indemnification obligations, such indemnification agreements might not be subject to maximum loss clauses, and to date, generally under our real estate obligations, we have not incurred material costs as a result of such obligations under our leases and have not accrued any liabilities related to such indemnification obligations in our Condensed Consolidated Financial Statements. We provide limited product warranties, and the majority of our software license agreements contain provisions that indemnify licensees of our software from damages and costs resulting from claims alleging that our software infringes on the intellectual property rights of a third party. Historically, payments made under these provisions have been immaterial. We monitor the conditions that are subject to indemnification to identify if a loss has occurred. Litigation contingencies SEC Investigation As previously disclosed in our public filings, the Audit Committee of our Board of Directors (the Audit Committee) completed its internal investigation (the Audit Committee Investigation) in September 2018. In connection with the Audit Committee Investigation, we voluntarily contacted the U.S. Securities and Exchange Commission (SEC) in April 2018. The SEC commenced a formal investigation, and we continue to cooperate with that investigation. The outcome of such an investigation is difficult to predict. We have incurred, and will continue to incur, significant expenses related to legal and other professional services in connection with the SEC investigation. At this stage, we are unable to assess whether any material loss or adverse effect is reasonably possible as a result of the SEC’s investigation or estimate the range of any potential loss. Securities Class Action and Derivative Litigation Securities class action lawsuits, which have since been consolidated, were filed in May 2018 against us and certain of our former officers, in the U.S. District Court for the Northern District of California. The lead plaintiff’s consolidated amended complaint alleged that, during a purported class period of May 11, 2017 to August 2, 2018, defendants made false and misleading statements in violation of Sections 10(b) and 20(a), and that certain individuals violated Section 20A, of the Securities Exchange Act. Defendants filed motions to dismiss, which the Court granted in an order dated June 14, 2019. Pursuant to that order, plaintiff was permitted to file a motion seeking leave to amend its claims. Plaintiff filed that motion on July 11, 2019 and defendants are opposing that motion. Purported shareholder derivative lawsuits have been filed against Symantec and certain of our former officers and current and former directors in the U.S. District Courts for the District of Delaware and the Northern District of California, Delaware Chancery Court, and Delaware Superior Court, arising generally out of the same facts and circumstances as alleged in the securities class action and alleging claims for breach of fiduciary duty and related claims; these lawsuits include an action brought derivatively on behalf of Symantec’s 2008 Employee Stock Purchase Plan. The derivative actions are currently voluntarily stayed in light of the securities class action. No specific amount of damages has been alleged in these lawsuits. We have also received demands from purported stockholders to inspect corporate books and records under Delaware law. We will continue to incur legal fees in connection with these pending cases and demands, 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 are decided adversely, we may be liable for significant damages directly or under our indemnification obligations, which could adversely affect our business, results of operations, and cash flows. At this stage, we are unable to assess whether any material loss or adverse effect is reasonably possible as a result of these lawsuits or estimate the range of any potential loss. GSA During the first quarter of fiscal 2013, we were advised by the Commercial Litigation Branch of the Department of Justice’s (DOJ) Civil Division and the Civil Division of the U.S. Attorney’s Office for the District of Columbia that the government is investigating our compliance with certain provisions of our U.S. General Services Administration (GSA) Multiple Award Schedule Contract No. GS-35F-0240T effective January 24, 2007, including provisions relating to pricing, country of origin, accessibility, and the disclosure of commercial sales practices. As reported on the GSA’s publicly-available database, our total sales under the GSA Schedule contract were approximately $222 million from the period beginning January 2007 and ending September 2012. We have fully cooperated with the government throughout its investigation, and in January 2014, representatives of the government indicated that their initial analysis of our actual damages exposure from direct government sales under the GSA schedule was approximately $145 million ; since the initial meeting, the government’s analysis of our potential damages exposure relating to direct sales has increased. The government has also indicated they are going to pursue claims for certain sales to California, Florida, and New York as well as sales to the federal government through reseller GSA Schedule contracts, which could significantly increase our potential damages exposure. In 2012, a sealed civil lawsuit was filed against Symantec related to compliance with the GSA Schedule contract and contracts with California, Florida, and New York. On July 18, 2014, the Court-imposed seal expired, and the government intervened in the lawsuit. On September 16, 2014, the states of California and Florida intervened in the lawsuit, and the state of New York notified the Court that it would not intervene. On October 3, 2014, the DOJ filed an amended complaint, which did not state a specific damages amount. On October 17, 2014, California and Florida combined their claims with those of the DOJ and the relator on behalf of New York in an Omnibus Complaint, and a First Amended Omnibus Complaint was filed on October 8, 2015; the state claims also do not state specific damages amounts. It is possible that the litigation could lead to claims or findings of violations of the False Claims Act and could be material to our results of operations and cash flows for any period. Resolution of False Claims Act investigations can ultimately result in the payment of somewhere between one and three times the actual damages proven by the government, plus civil penalties in some cases, depending upon a number of factors. Our current estimate of the low end of the range of the probable estimated loss from this matter is $25 million , which we have accrued. This amount contemplates estimated losses from both the investigation of compliance with the terms of the GSA Schedule contract as well as possible violations of the False Claims Act. There is at least a reasonable possibility that a loss may have been incurred in excess of our accrual for this matter, however, we are currently unable to determine the high end of the range of estimated losses resulting from this matter. Other We are involved in a number of other judicial and administrative proceedings that are incidental to our business. Although adverse decisions (or settlements) may occur in one or more of the cases, it is not possible to estimate the possible loss or losses from each of these cases. The final resolution of these lawsuits, individually or in the aggregate, is not expected to have a material adverse effect on our business, results of operations, financial condition or cash flows. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Jul. 05, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Fiscal 2020 Plan On August 6, 2019, our Board of Directors approved a fiscal 2020 restructuring plan to improve productivity and reduce complexity in the way we manage the business. We expect to reduce net global headcount by approximately 7% . We also plan to downsize, vacate or close certain facilities and data centers in connection with the restructuring plan. We estimate that we will incur total costs in connection with the restructuring of approximately $100 million , approximately $75 million for severance and termination benefits and $25 million for site closures. These actions are expected to be completed in fiscal 2020. Stock repurchase program On August 6, 2019, our Board of Directors increased the share repurchase authorization to $1,600 million . Planned divestiture of Enterprise Security business On August 8, 2019, we entered into a definitive agreement to sell our Enterprise Security assets to Broadcom Inc. for $10.7 billion in cash and the assumption of certain liabilities. The divestiture of our Enterprise Security business will allow us to shift our operational focus to our Consumer Cyber Safety business. The transaction is expected to close before the end of calendar year 2019, subject to regulatory approvals and other customary closing conditions. We are in the process of evaluating the transaction and its impact on our consolidated financial statements, including evaluating the resulting net gain and expenses that will be recognized, based on the terms of the definitive agreement. The Company's U.S. and foreign income taxes payable resulting from the transaction are estimated to range from $2.3 billion to $2.7 billion . |
Description of Business and S_2
Description of Business and Significant Accounting Policies (Policies) | 3 Months Ended |
Jul. 05, 2019 | |
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 29, 2019 . The results of operations for the three months ended July 5, 2019 are not necessarily indicative of the results expected for the entire fiscal year. |
Fiscal accounting year | We have a 52/53-week fiscal year ending on the Friday closest to March 31. Unless otherwise stated, references to three-month periods in this report relate to fiscal periods ended July 5, 2019 and June 29, 2018 . The three months ended July 5, 2019 consisted of 14 weeks, whereas the three months ended June 29, 2018 consisted of 13 weeks. Our 2020 fiscal year consists of 53 weeks and ends on April 3, 2020 . |
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 stand-alone selling price for performance obligations, valuation of business combinations including acquired intangible assets and goodwill, loss contingencies, valuation of stock-based compensation, and the recognition and measurement of current and deferred income taxes, including the measurement of uncertain tax positions. 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 three months ended July 5, 2019 , except for those noted in Note 2 and Note 4 , as compared to the significant accounting policies described in our Annual Report on Form 10-K for the fiscal year ended March 29, 2019 . Recently adopted authoritative guidance Leases. In February 2016, the Financial Accounting Standards Board (FASB) issued new guidance on lease accounting which requires lessees to recognize assets and liabilities on their balance sheet for the rights and obligations created by operating leases and also requires disclosures designed to give users of financial statements information on the amount, timing, and uncertainty of cash flows arising from leases. Most prominent among the changes in the standard is the recognition of right-of-use (ROU) assets and lease liabilities by lessees for those leases classified as operating leases. Under the standard, disclosures are required to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. On March 30, 2019, the first day of our fiscal 2020, we adopted the new guidance using the alternative modified retrospective transition method under which we continue to apply the legacy lease accounting guidance, including its disclosure requirements, in comparative periods prior to fiscal 2020. In addition, we elected the package of practical expedients permitted under the transition guidance within the new standard that allowed us not to reassess (1) whether any expired or existing contracts are or contain leases, (2) lease classification for any expired or existing leases, and (3) initial direct costs for any existing leases. We currently do not have any finance leases. We combine the lease and non-lease components in determining the operating lease assets and liabilities. The adoption of the new lease accounting standard resulted in the recognition of ROU assets and lease liabilities of $182 million and $209 million , respectively, as of March 30, 2019 related to our operating leases. The adoption of the standard also resulted in elimination of deferred rent liabilities of $17 million , as of March 30, 2019, which are now recorded as a reduction of the ROU assets. The standard did not have an impact on our consolidated statements of operations or statements of cash flows. Recently issued authoritative guidance not yet adopted 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. |
Recent Accounting Standards (Po
Recent Accounting Standards (Policies) | 3 Months Ended |
Jul. 05, 2019 | |
Accounting Policies [Abstract] | |
Lessee, Leases | We determine if an arrangement is a lease at inception. We have elected to not recognize a lease liability or right-of-use (ROU) asset for short-term leases (leases with a term of twelve months or less that do not include an option to purchase the underlying asset). Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. The interest rate we use to determine the present value of future payments is our incremental borrowing rate because the rate implicit in our leases is not readily determinable. Our incremental borrowing rate is a hypothetical rate for collateralized borrowings in economic environments where the leased asset is located based on credit rating factors. Our operating lease assets also include adjustments for prepaid lease payments , lease incentives and initial direct costs . Certain lease contracts include obligations to pay for other services, such as operations and maintenance. We elected the practical expedient whereby we record all lease components and the related minimum non-lease components as a single lease component. Cash payments made for variable lease costs are not included in the measurement of our operating lease assets and liabilities. Many of our lease terms include one or more options to renew. We do not assume renewals in our determination of the lease term unless it is reasonably certain that we will exercise that option. Lease costs for minimum lease payments for operating leases is recognized on a straight-line basis over the lease term. Our lease agreements do not contain any residual value guarantees. |
Recently issued authoritative guidance | Significant accounting policies There have been no material changes to our significant accounting policies as of and for the three months ended July 5, 2019 , except for those noted in Note 2 and Note 4 , as compared to the significant accounting policies described in our Annual Report on Form 10-K for the fiscal year ended March 29, 2019 . Recently adopted authoritative guidance Leases. In February 2016, the Financial Accounting Standards Board (FASB) issued new guidance on lease accounting which requires lessees to recognize assets and liabilities on their balance sheet for the rights and obligations created by operating leases and also requires disclosures designed to give users of financial statements information on the amount, timing, and uncertainty of cash flows arising from leases. Most prominent among the changes in the standard is the recognition of right-of-use (ROU) assets and lease liabilities by lessees for those leases classified as operating leases. Under the standard, disclosures are required to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. On March 30, 2019, the first day of our fiscal 2020, we adopted the new guidance using the alternative modified retrospective transition method under which we continue to apply the legacy lease accounting guidance, including its disclosure requirements, in comparative periods prior to fiscal 2020. In addition, we elected the package of practical expedients permitted under the transition guidance within the new standard that allowed us not to reassess (1) whether any expired or existing contracts are or contain leases, (2) lease classification for any expired or existing leases, and (3) initial direct costs for any existing leases. We currently do not have any finance leases. We combine the lease and non-lease components in determining the operating lease assets and liabilities. The adoption of the new lease accounting standard resulted in the recognition of ROU assets and lease liabilities of $182 million and $209 million , respectively, as of March 30, 2019 related to our operating leases. The adoption of the standard also resulted in elimination of deferred rent liabilities of $17 million , as of March 30, 2019, which are now recorded as a reduction of the ROU assets. The standard did not have an impact on our consolidated statements of operations or statements of cash flows. Recently issued authoritative guidance not yet adopted 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 (Tables)
Revenues (Tables) | 3 Months Ended |
Jul. 05, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table provides our revenue disaggregated by the timing of recognition: Three Months Ended (In millions) July 5, 2019 June 29, 2018 Enterprise Security: Products and services transferred at a point in time $ 93 $ 99 Products and services transferred over time $ 518 $ 457 Consumer Cyber Safety: Products and services transferred at a point in time $ 13 $ 12 Products and services transferred over time $ 623 $ 588 Total Products and services transferred at a point in time $ 106 $ 111 Products and services transferred over time $ 1,141 $ 1,045 |
Schedule of Contract Liabilities | Contract liabilities by segment were as follows: (In millions) July 5, 2019 March 29, 2019 Enterprise Security $ 1,888 $ 2,002 Consumer Cyber Safety 1,011 1,054 Total $ 2,899 $ 3,056 Short-term contract liabilities: July 5, 2019 March 29, 2019 Deferred revenue $ 1,795 $ 1,815 Customer deposit liabilities 416 505 Total short-term contract liabilities $ 2,211 $ 2,320 |
Revenue, Remaining Performance Obligation | As of July 5, 2019 , we had $2,506 million of remaining performance obligations, which does not include Consumer Cyber Safety customer deposit liabilities of approximately $416 million . 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 $ 1,911 65 % 24 % 9 % 2 % Consumer Cyber Safety 595 95 % 4 % 1 % — % Total $ 2,506 72 % 19 % 7 % 1 % Percentages may not add to 100% due to rounding. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Jul. 05, 2019 | |
Leases [Abstract] | |
Schedule of Lease Cost and Sublease Income | Other information related to our operating leases was as follows: Three Months Ended July 5, 2019 Weighted-average remaining lease term 5.3 years Weighted-average discount rate 4.28 % The following summarizes our lease costs for the three months ended July 5, 2019 : Three Months Ended (In millions) July 5, 2019 Operating lease costs $ 15 Short-term lease costs 2 Variable lease costs 8 Total lease costs $ 25 |
Lessee, Operating Lease, Liability, Maturity | As of July 5, 2019 , the maturities of our lease liabilities by fiscal year are as follows: (In millions) Remainder of 2020 $ 39 2021 53 2022 43 2023 30 2024 26 Thereafter 42 Total lease payments 233 Less: Imputed interest (25 ) Present value of lease liabilities $ 208 |
Lessee, Operating Lease, Disclosure | As of March 29, 2019 , the minimum future rentals on non-cancelable operating leases by fiscal year, based on the previous lease accounting standard, were as follows: (In millions) 2020 $ 55 2021 49 2022 40 2023 32 2024 26 Thereafter 42 Total minimum future lease payments $ 244 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Jul. 05, 2019 | |
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 were as follows: (In millions) Enterprise Security Consumer Cyber Safety Total Balance as of March 29, 2019 $ 5,861 $ 2,589 $ 8,450 Translation adjustments (1 ) — (1 ) Balance as of July 5, 2019 $ 5,860 $ 2,589 $ 8,449 |
Schedule of Intangible Assets, Net, Finite-Lived | July 5, 2019 March 29, 2019 (In millions) Gross Accumulated Net Gross Accumulated Net Customer relationships $ 1,425 $ (566 ) $ 859 $ 1,425 $ (515 ) $ 910 Developed technology 1,039 (617 ) 422 1,039 (555 ) 484 Other 6 (2 ) 4 6 (2 ) 4 Total finite-lived intangible assets 2,470 (1,185 ) 1,285 2,470 (1,072 ) 1,398 Indefinite-lived trade names 852 — 852 852 — 852 Total intangible assets $ 3,322 $ (1,185 ) $ 2,137 $ 3,322 $ (1,072 ) $ 2,250 |
Schedule of Intangible Assets, Net, Indefinite-Lived | July 5, 2019 March 29, 2019 (In millions) Gross Accumulated Net Gross Accumulated Net Customer relationships $ 1,425 $ (566 ) $ 859 $ 1,425 $ (515 ) $ 910 Developed technology 1,039 (617 ) 422 1,039 (555 ) 484 Other 6 (2 ) 4 6 (2 ) 4 Total finite-lived intangible assets 2,470 (1,185 ) 1,285 2,470 (1,072 ) 1,398 Indefinite-lived trade names 852 — 852 852 — 852 Total intangible assets $ 3,322 $ (1,185 ) $ 2,137 $ 3,322 $ (1,072 ) $ 2,250 |
Amortization Expense | Amortization expense for purchased intangible assets is summarized below: Three Months Ended Statements of Operations Classification (In millions) July 5, 2019 June 29, 2018 Customer relationships and other $ 51 $ 53 Operating expenses Developed technology 61 58 Cost of revenues Total $ 112 $ 111 |
Schedule of Future Intangible Asset Amortization Expense | As of July 5, 2019 , future amortization expense related to intangible assets that have finite lives is as follows by fiscal year: (In millions) July 5, 2019 Remainder of 2020 $ 335 2021 338 2022 275 2023 224 2024 110 Thereafter 3 Total $ 1,285 |
Supplementary Information (Tabl
Supplementary Information (Tables) | 3 Months Ended |
Jul. 05, 2019 | |
Supplementary Information [Abstract] | |
Schedule of Cash and cash equivalents | Cash and cash equivalents: July 5, 2019 March 29, 2019 Cash $ 270 $ 376 Cash equivalents 1,262 1,415 Total cash and cash equivalents $ 1,532 $ 1,791 |
Schedule of Other current assets | Other current assets: July 5, 2019 March 29, 2019 Prepaid expenses $ 164 $ 162 Income tax receivable and prepaid income taxes 34 61 Value-added tax receivable and other tax receivables 76 69 Short-term deferred commissions 101 92 Other 54 51 Total other current assets $ 429 $ 435 |
Summary of Property and equipment, net | Property and equipment, net: July 5, 2019 March 29, 2019 Land $ 65 $ 66 Computer hardware and software 1,181 1,159 Office furniture and equipment 122 118 Buildings 364 364 Leasehold improvements 379 372 Construction in progress 31 30 Total property and equipment, gross 2,142 2,109 Accumulated depreciation and amortization (1,358 ) (1,319 ) Total property and equipment, net $ 784 $ 790 |
Schedule of Other long-term assets | Other long-term assets: July 5, 2019 March 29, 2019 Cost method investments $ 186 $ 184 Equity method investment 22 32 Long-term income tax receivable and prepaid income taxes 43 34 Deferred income tax assets 833 830 Long-term deferred commissions 82 93 Other 89 89 Total other long-term assets $ 1,255 $ 1,262 |
Schedule of Short-term contract Liabilities | Contract liabilities by segment were as follows: (In millions) July 5, 2019 March 29, 2019 Enterprise Security $ 1,888 $ 2,002 Consumer Cyber Safety 1,011 1,054 Total $ 2,899 $ 3,056 Short-term contract liabilities: July 5, 2019 March 29, 2019 Deferred revenue $ 1,795 $ 1,815 Customer deposit liabilities 416 505 Total short-term contract liabilities $ 2,211 $ 2,320 |
Schedule of Long-term income taxes payable | Long-term income taxes payable: July 5, 2019 March 29, 2019 Deemed repatriation tax payable $ 638 $ 703 Uncertain tax positions (including interest and penalties) 440 373 Total long-term income taxes payable $ 1,078 $ 1,076 |
Schedule of Other income (expense), net | Other expense, net : Three Months Ended July 5, 2019 June 29, 2018 Interest income $ 10 $ 7 Loss from equity interest (11 ) (26 ) Foreign exchange loss (2 ) (9 ) Other 3 9 Other expense, net $ — $ (19 ) |
Supplemental Cash Flow Information | Supplemental cash flow information: Three Months Ended July 5, 2019 June 29, 2018 Income taxes paid, net of refunds $ 36 $ 21 Interest expense paid $ 48 $ 49 Cash paid for amounts included in the measurement of operating lease liabilities $ 18 $ — Non-cash operating activities: Operating lease assets obtained in exchange for operating lease liabilities $ 13 $ — Non-cash investing activities: Purchases of property and equipment in current liabilities $ 14 $ 13 |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurements (Tables) | 3 Months Ended |
Jul. 05, 2019 | |
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: July 5, 2019 March 29, 2019 (In millions) Fair Value Level 1 Level 2 Fair Value Level 1 Level 2 Assets: Cash equivalents: Money market funds $ 1,064 $ 1,064 $ — $ 1,415 $ 1,415 $ — Certificates of deposit 198 — 198 — — — Short-term investments: Corporate bonds 161 — 161 251 — 251 Certificates of deposit 1 — 1 1 — 1 Total $ 1,424 $ 1,064 $ 360 $ 1,667 $ 1,415 $ 252 |
Contractual maturity of investments in debt securities | The following table presents the contractual maturities of our investments in debt securities as of July 5, 2019 : (In millions) Fair Value Due in one year or less $ 97 Due after one year through five years 65 Total $ 162 |
Summarized Financial Information, Profit (Loss) | The following table summarizes financial data from DigiCert which was provided to us on a three-month lag: Three Months Ended (In millions) March 31, 2019 March 31, 2018 Revenue $ 106 $ 66 Gross profit $ 87 $ 53 Net loss $ (36 ) $ (82 ) |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Jul. 05, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Components of Debt | The following table summarizes components of our debt: (In millions, except percentages) July 5, 2019 March 29, 2019 Effective 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 4,500 4,500 Less: Unamortized discount and issuance costs (42 ) (48 ) Total debt 4,458 4,452 Less: current portion (494 ) (491 ) Total long-term debt $ 3,964 $ 3,961 (1) The senior term facility bears 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 agreement. The interest rates for the outstanding senior term loan are as follows: July 5, 2019 March 29, 2019 Senior Term Loan A-5 due August 1, 2021 4.16 % 4.24 % |
Schedule of Maturities of Long-term Debt | As of July 5, 2019 , the future contractual maturities of debt by fiscal year are as follows: (In millions) Remainder of 2020 $ — 2021 1,250 2022 1,750 2023 400 2024 — Thereafter 1,100 Total future maturities of debt $ 4,500 |
Schedule of Interest Expense | The following table sets forth total interest expense recognized related to our 2.5% and 2.0% Convertible Senior Notes: Three Months Ended (In millions) July 5, 2019 June 29, 2018 Contractual interest expense $ 10 $ 9 Amortization of debt discount and issuance costs $ 4 $ 4 |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Jul. 05, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments, Gain (Loss) | The related gain (loss) recognized in Other expense, net in our Condensed Consolidated Statements of Operations was as follows: Three Months Ended (In millions) July 5, 2019 June 29, 2018 Foreign exchange forward contracts loss $ — $ (36 ) |
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) July 5, 2019 March 29, 2019 Net investment hedges Foreign exchange forward contracts sold $ 153 $ 116 Balance sheet contracts Foreign exchange forward contracts purchased $ 599 $ 963 Foreign exchange forward contracts sold $ 215 $ 122 |
Restructuring, Transition and_2
Restructuring, Transition and Other Costs (Tables) | 3 Months Ended |
Jul. 05, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | Our restructuring, transition and other costs are presented in the table below: Three Months Ended (In millions) July 5, 2019 June 29, 2018 Severance and termination benefit costs $ 24 $ 12 Other exit and disposal costs 1 9 Asset write-offs — 2 Transition costs — 73 Total restructuring, transition and other costs $ 25 $ 96 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Jul. 05, 2019 | |
Income Tax Disclosure [Abstract] | |
Summary of Effective Tax Rate | The following table summarizes our effective tax rate for the periods presented: Three Months Ended (In millions, except percentages) July 5, 2019 June 29, 2018 Income (loss) before income taxes $ 108 $ (69 ) Income tax expense (benefit) $ 82 $ (4 ) Effective tax rate 76 % 6 % |
Schedule of Unrecognized Tax Benefits Roll Forward | The aggregate changes in the balance of gross unrecognized tax benefits for the three months ended July 5, 2019 were as follows: Three Months Ended (In millions) July 5, 2019 Balance at beginning of year $ 446 Lapse of statute of limitations (13 ) Increase related to prior period tax positions 62 Increase related to current year tax positions 16 Net increase 65 Balance at end of quarter $ 511 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Jul. 05, 2019 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Accumulated Other Comprehensive Income | Components of Accumulated other comprehensive 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 29, 2019 $ (5 ) $ (1 ) $ (1 ) $ (7 ) Other comprehensive income (loss) before reclassifications (7 ) 1 1 (5 ) Balance as of July 5, 2019 $ (12 ) $ — $ — $ (12 ) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Jul. 05, 2019 | |
Share-based Payment Arrangement, Noncash Expense [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 (In millions) July 5, 2019 June 29, 2018 Cost of revenues $ 5 $ 5 Sales and marketing 25 31 Research and development 35 39 General and administrative 15 38 Total stock-based compensation expense $ 80 $ 113 Income tax benefit for stock-based compensation expense $ (15 ) $ (26 ) |
Schedule of Additional Information Related to Stock-Based Compensation | The following table summarizes additional information related to our stock-based compensation: Three Months Ended (In millions, except per grant data) July 5, 2019 June 29, 2018 RSUs: Weighted-average fair value per award granted $ 19.39 $ 21.71 Awards granted 12 10 Total fair value of awards released $ 174 $ 167 Outstanding and unvested 22 20 PRUs: Weighted-average fair value per award granted $ 19.21 $ — Awards granted 2 — Total fair value of awards released $ 26 $ 8 Outstanding and unvested at target payout 3 3 Stock options: Weight-average fair value per award granted $ 4.76 $ — Awards granted 2 — Total intrinsic value of stock options exercised $ 71 $ 7 Outstanding 8 13 Exercisable 6 11 Restricted stock: Outstanding and unvested 1 1 |
Schedule of Unrecognized Compensation Cost, Nonvested Awards | As of July 5, 2019 , the total unrecognized stock-based compensation costs, net of estimated forfeitures, were as follows: (In millions) Unrecognized compensation cost Weighted-average remaining years RSUs $ 327 2.2 years PRUs 32 1.7 years Options 18 1.3 years Restricted stock 18 1.3 years Liability-classified awards settled in shares 25 2.1 years Employee stock purchase plan 10 0.6 years Total $ 430 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 3 Months Ended |
Jul. 05, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Components of Net Income Per Share | The components of basic and diluted net income (loss) per share are as follows: Three Months Ended (In millions, except per share amounts) July 5, 2019 June 29, 2018 Income (loss) from continuing operations $ 26 $ (65 ) Income from discontinued operations — 5 Net income (loss) $ 26 $ (60 ) Income (loss) per share - basic: Continuing operations $ 0.04 $ (0.10 ) Discontinued operations $ — $ 0.01 Net income (loss) per share - basic (1) $ 0.04 $ (0.10 ) Income (loss) per share - diluted: Continuing operations $ 0.04 $ (0.10 ) Discontinued operations $ — $ 0.01 Net income (loss) per share - diluted (1) $ 0.04 $ (0.10 ) Weighted-average shares outstanding - basic 619 624 Dilutive potentially issuable shares: Convertible debt 10 — Employee equity awards 13 — Weighted-average shares outstanding - diluted 642 624 Anti-dilutive shares excluded from diluted net income (loss) per share calculation: Convertible debt — 91 Employee equity awards 5 55 Total 5 146 (1) Net income per share amounts may not add due to rounding. |
Segment and Geographical Info_2
Segment and Geographical Information (Tables) | 3 Months Ended |
Jul. 05, 2019 | |
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 (In millions) July 5, 2019 June 29, 2018 Americas $ 807 $ 734 EMEA 252 243 APJ 188 179 Total net revenues $ 1,247 $ 1,156 |
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) July 5, 2019 March 29, 2019 U.S. $ 1,216 $ 1,544 International 478 499 Total cash, cash equivalent and short-term investments $ 1,694 $ 2,043 |
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) July 5, 2019 March 29, 2019 U.S. $ 661 $ 671 International (1) 123 119 Total property and equipment, net $ 784 $ 790 (1) No individual country represented more than 10% of the respective totals. Our operating lease assets by geographic area, based on the physical location of the asset, were as follows: (In millions) July 5, 2019 U.S. $ 95 India 22 Other international countries (1) 66 Total operating lease assets $ 183 (1) No other international country represented more than 10% of the respective totals. |
Schedule of Accounts Receivable by Major Customers by Reporting Segments | Customers, which are distributors, that accounted for over 10% of our net accounts receivable were as follows: July 5, 2019 March 29, 2019 Customer A 15 % 16 % Customer B 11 % 15 % Customer C 11 % N/A |
Schedule of Reportable Segment Data | The following table summarizes the operating results of our reportable segments: Three Months Ended (In millions) July 5, 2019 June 29, 2018 Total Segments: Net revenues $ 1,247 $ 1,156 Operating income $ 375 $ 319 Enterprise Security: Net revenues $ 611 $ 556 Operating income $ 39 $ 56 Consumer Cyber Safety: Net revenues $ 636 $ 600 Operating income $ 336 $ 263 |
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 (In millions) July 5, 2019 June 29, 2018 Total segment operating income $ 375 $ 319 Reconciling items: Stock-based compensation expense 80 113 Amortization of intangible assets 112 111 Restructuring, transition and other costs 25 96 Other 1 (3 ) Total consolidated operating income from continuing operations $ 157 $ 2 |
Revenue from External Customers by Products and Services | The following table summarizes net revenues by significant products and services categories: Three Months Ended (In millions) July 5, 2019 June 29, 2018 Enterprise Security: Endpoint and information protection $ 261 $ 249 Network and web security 196 173 Other products and services 154 134 Total Enterprise Security $ 611 $ 556 Consumer Cyber Safety: Consumer security $ 381 $ 369 Identity and information protection 255 231 Total Consumer Cyber Safety 636 600 Total net revenues $ 1,247 $ 1,156 |
Recent Accounting Standards (Sc
Recent Accounting Standards (Schedule of Effect of New Accounting Pronouncement) (Details) - USD ($) $ in Millions | Jul. 05, 2019 | Mar. 30, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease assets | $ 183 | |
Operating lease liability | $ 208 | |
Accounting Standards Update 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease assets | $ 182 | |
Operating lease liability | 209 | |
Deferred rent liabilities | $ (17) |
Revenues (Schedule of Remaining
Revenues (Schedule of Remaining Performance Obligations) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jul. 05, 2019 | Jun. 29, 2018 | Mar. 29, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 1,247 | $ 1,156 | |
Revenue recognized from beginning contract liabilities | 920 | 848 | |
Amortization expense from capitalized contract acquisition costs | 28 | 23 | |
Revenue, remaining performance obligation | 2,506 | ||
Customer deposit liabilities | 416 | $ 505 | |
Impairment loss | 0 | 0 | |
Reportable Segments | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,247 | 1,156 | |
Enterprise Security | |||
Disaggregation of Revenue [Line Items] | |||
Revenue, remaining performance obligation | 1,911 | ||
Enterprise Security | Reportable Segments | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 611 | 556 | |
Consumer Cyber Safety | |||
Disaggregation of Revenue [Line Items] | |||
Revenue, remaining performance obligation | 595 | ||
Transferred at Point in Time | Reportable Segments | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 106 | 111 | |
Transferred at Point in Time | Enterprise Security | Reportable Segments | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 93 | 99 | |
Transferred at Point in Time | Consumer Cyber Safety | Reportable Segments | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 13 | 12 | |
Transferred over Time | Reportable Segments | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,141 | 1,045 | |
Transferred over Time | Enterprise Security | Reportable Segments | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 518 | 457 | |
Transferred over Time | Consumer Cyber Safety | Reportable Segments | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 623 | $ 588 |
Revenues (Schedule of Contract
Revenues (Schedule of Contract Liabilities) (Details) - USD ($) $ in Millions | Jul. 05, 2019 | Mar. 29, 2019 |
Capitalized Contract Cost [Line Items] | ||
Contract liabilities | $ 2,899 | $ 3,056 |
Enterprise Security | ||
Capitalized Contract Cost [Line Items] | ||
Contract liabilities | 1,888 | 2,002 |
Consumer Cyber Safety | ||
Capitalized Contract Cost [Line Items] | ||
Contract liabilities | $ 1,011 | $ 1,054 |
Revenues (Revenue, Remaining Pe
Revenues (Revenue, Remaining Performance Obligation) (Details) $ in Millions | Jul. 05, 2019USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total Remaining Performance Obligations | $ 2,506 |
Enterprise Security | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total Remaining Performance Obligations | 1,911 |
Consumer Cyber Safety | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total Remaining Performance Obligations | $ 595 |
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 | 72.00% |
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 | 65.00% |
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 Cyber Safety | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Percent Expected to be Recognized as Revenue | 95.00% |
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 | 19.00% |
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 | 24.00% |
Remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-12-29 | Consumer Cyber Safety | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Percent Expected to be Recognized as Revenue | 4.00% |
Remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-12-29 | |
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]: 2022-12-29 | Enterprise Security | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Percent Expected to be Recognized as Revenue | 9.00% |
Remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-12-29 | Consumer Cyber 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]: 2023-12-29 | |
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]: 2023-12-29 | 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]: 2023-12-29 | Consumer Cyber 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 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 29, 2018 | Jul. 05, 2019 | |
Property, Plant and Equipment [Line Items] | ||
Rent expense | $ 19 | |
Minimum | Facilities | ||
Property, Plant and Equipment [Line Items] | ||
Operating lease, term of contract | 1 year | |
Minimum | Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Operating lease, term of contract | 1 year | |
Minimum | Data Center Co-locations | ||
Property, Plant and Equipment [Line Items] | ||
Operating lease, term of contract | 1 year | |
Maximum | Facilities | ||
Property, Plant and Equipment [Line Items] | ||
Operating lease, term of contract | 17 years | |
Maximum | Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Operating lease, term of contract | 6 years | |
Maximum | Data Center Co-locations | ||
Property, Plant and Equipment [Line Items] | ||
Operating lease, term of contract | 6 years |
Leases (Lease Cost) (Details)
Leases (Lease Cost) (Details) $ in Millions | 3 Months Ended |
Jul. 05, 2019USD ($) | |
Leases [Abstract] | |
Operating lease costs | $ 15 |
Short-term lease costs | 2 |
Variable lease costs | 8 |
Total lease costs | $ 25 |
Leases (Operating Lease Informa
Leases (Operating Lease Information) (Details) | Jul. 05, 2019 |
Leases [Abstract] | |
Weighted-average remaining lease term | 5 years 3 months 18 days |
Weighted-average discount rate | 4.28% |
Leases (Maturity of Lease Liabi
Leases (Maturity of Lease Liabilities) (Details) $ in Millions | Jul. 05, 2019USD ($) |
Leases [Abstract] | |
Remainder of 2020 | $ 39 |
2021 | 53 |
2022 | 43 |
2023 | 30 |
2024 | 26 |
Thereafter | 42 |
Total lease payments | 233 |
Less: Imputed interest | (25) |
Present value of lease liabilities | $ 208 |
Leases (Schedule Of Minimum Fut
Leases (Schedule Of Minimum Future Rentals) (Details) $ in Millions | Mar. 29, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 55 |
2021 | 49 |
2022 | 40 |
2023 | 32 |
2024 | 26 |
Thereafter | 42 |
Total minimum future lease payments | $ 244 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Schedule of Changes in the Carrying Amount of Goodwill) (Details) $ in Millions | 3 Months Ended | |
Jul. 05, 2019USD ($) | ||
Goodwill [Roll Forward] | ||
March 29, 2019 | $ 8,450 | [1] |
Translation adjustments | (1) | |
July 5, 2019 | 8,449 | |
Enterprise Security | ||
Goodwill [Roll Forward] | ||
March 29, 2019 | 5,861 | |
Translation adjustments | (1) | |
July 5, 2019 | 5,860 | |
Consumer Cyber Safety | ||
Goodwill [Roll Forward] | ||
March 29, 2019 | 2,589 | |
Translation adjustments | 0 | |
July 5, 2019 | $ 2,589 | |
[1] | Derived from audited financial statements. |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Schedule of Intangible Assets, Net) (Details) - USD ($) $ in Millions | Jul. 05, 2019 | Mar. 29, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 2,470 | $ 2,470 | |
Accumulated Amortization | (1,185) | (1,072) | |
Net Carrying Amount | 1,285 | 1,398 | |
Indefinite-lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 3,322 | 3,322 | |
Net Carrying Amount | 2,137 | 2,250 | [1] |
Trade Names | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets | 852 | 852 | |
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 1,425 | 1,425 | |
Accumulated Amortization | (566) | (515) | |
Net Carrying Amount | 859 | 910 | |
Developed technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 1,039 | 1,039 | |
Accumulated Amortization | (617) | (555) | |
Net Carrying Amount | 422 | 484 | |
Other | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 6 | 6 | |
Accumulated Amortization | (2) | (2) | |
Net Carrying Amount | $ 4 | $ 4 | |
[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 | |
Jul. 05, 2019 | Jun. 29, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of intangible assets | $ 51 | $ 53 |
Customer relationships | Operating expenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of intangible assets | 51 | 53 |
Developed technology | Cost of revenues | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of intangible assets | 61 | 58 |
Segment Reconciling Items | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of intangible assets | $ 112 | $ 111 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets (Schedule of Future Intangible Asset Amortization Expense) (Details) - USD ($) $ in Millions | Jul. 05, 2019 | Mar. 29, 2019 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remainder of 2020 | $ 335 | |
2021 | 338 | |
2022 | 275 | |
2023 | 224 | |
2024 | 110 | |
Thereafter | 3 | |
Net Carrying Amount | $ 1,285 | $ 1,398 |
Supplementary Information (Cash
Supplementary Information (Cash and Cash Equivalents) (Details) - USD ($) $ in Millions | Jul. 05, 2019 | Mar. 29, 2019 | |
Supplementary Information [Abstract] | |||
Cash | $ 270 | $ 376 | |
Cash equivalents | 1,262 | 1,415 | |
Total cash and cash equivalents | $ 1,532 | $ 1,791 | [1] |
[1] | Derived from audited financial statements. |
Supplementary Information (Othe
Supplementary Information (Other Current Assets) (Details) - USD ($) $ in Millions | Jul. 05, 2019 | Mar. 29, 2019 | |
Supplementary Information [Abstract] | |||
Prepaid expenses | $ 164 | $ 162 | |
Income tax receivable and prepaid income taxes | 34 | 61 | |
Value-added tax receivable and other tax receivables | 76 | 69 | |
Short-term deferred commissions | 101 | 92 | |
Other | 54 | 51 | |
Total other current assets | $ 429 | $ 435 | [1] |
[1] | Derived from audited financial statements. |
Supplementary Information (Prop
Supplementary Information (Property and Equipment) (Details) - USD ($) $ in Millions | Jul. 05, 2019 | Mar. 29, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Total property and equipment, gross | $ 2,142 | $ 2,109 | |
Accumulated depreciation and amortization | (1,358) | (1,319) | |
Total property and equipment, net | 784 | 790 | [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 | 1,181 | 1,159 | |
Office furniture and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment, gross | 122 | 118 | |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment, gross | 364 | 364 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment, gross | 379 | 372 | |
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment, gross | $ 31 | $ 30 | |
[1] | Derived from audited financial statements. |
Supplementary Information (Ot_2
Supplementary Information (Other Long-term Assets) (Details) - USD ($) $ in Millions | Jul. 05, 2019 | Mar. 29, 2019 | |
Supplementary Information [Abstract] | |||
Cost method investments | $ 186 | $ 184 | |
Equity method investment | 22 | 32 | |
Long-term income tax receivable and prepaid income taxes | 43 | 34 | |
Deferred income tax assets | 833 | 830 | |
Long-term deferred commissions | 82 | 93 | |
Other | 89 | 89 | |
Total other long-term assets | $ 1,255 | $ 1,262 | [1] |
[1] | Derived from audited financial statements. |
Supplementary Information (Cont
Supplementary Information (Contract Liabilities) (Details) - USD ($) $ in Millions | Jul. 05, 2019 | Mar. 29, 2019 | |
Supplementary Information [Abstract] | |||
Deferred revenue | $ 1,795 | $ 1,815 | |
Customer deposit liabilities | 416 | 505 | |
Total short-term contract liabilities | $ 2,211 | $ 2,320 | [1] |
[1] | Derived from audited financial statements. |
Supplementary Information (Long
Supplementary Information (Long-term Income Taxes Payable) (Details) - USD ($) $ in Millions | Jul. 05, 2019 | Mar. 29, 2019 | |
Supplementary Information [Abstract] | |||
Deemed repatriation tax payable | $ 638 | $ 703 | |
Uncertain tax positions (including interest and penalties) | 440 | 373 | |
Total long-term income taxes payable | $ 1,078 | $ 1,076 | [1] |
[1] | Derived from audited financial statements. |
Supplementary Information (Ot_3
Supplementary Information (Other Expense, Net) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 05, 2019 | Jun. 29, 2018 | |
Supplementary Information [Abstract] | ||
Interest income | $ 10 | $ 7 |
Loss from equity interest | (11) | (26) |
Foreign exchange loss | (2) | (9) |
Other | 3 | 9 |
Other expense, net | $ 0 | $ (19) |
Supplementary Information (Supp
Supplementary Information (Supplemental Cash Flow Information) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 05, 2019 | Jun. 29, 2018 | |
Supplementary Information [Abstract] | ||
Income taxes paid, net of refunds | $ 36 | $ 21 |
Interest expense paid | 48 | 49 |
Cash paid for amounts included in the measurement of operating lease liabilities | 18 | 0 |
Non-cash operating activities: | ||
Operating lease assets obtained in exchange for operating lease liabilities | 13 | 0 |
Non-cash investing activities: | ||
Purchases of property and equipment in current liabilities | $ 14 | $ 13 |
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 | Jul. 05, 2019 | Mar. 29, 2019 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | $ 1,424 | $ 1,667 |
Fair Value | Cash equivalents: | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 1,064 | 1,415 |
Fair Value | Cash equivalents: | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 198 | 0 |
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 | 1 |
Fair Value | Short-term investments: | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 161 | 251 |
Reported Value Measurement | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 1,064 | 1,415 |
Reported Value Measurement | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 360 | 252 |
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 | 1,064 | 1,415 |
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 | 198 | 0 |
Reported Value Measurement | Short-term investments: | Level 1 | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Reported Value Measurement | Short-term investments: | Level 1 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Reported Value Measurement | Short-term investments: | Level 2 | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 1 | 1 |
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 | $ 161 | $ 251 |
Financial Instruments and Fai_4
Financial Instruments and Fair Value Measurements (Schedule of Debt Maturities) (Details) $ in Millions | Jul. 05, 2019USD ($) |
Fair Value Disclosures [Abstract] | |
Due in one year or less | $ 97 |
Due after one year through five years | 65 |
Total | $ 162 |
Financial Instruments and Fai_5
Financial Instruments and Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jul. 05, 2019 | Jun. 29, 2018 | Mar. 29, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying value of non-marketable equity investments | $ 186 | $ 184 | |
Equity method investment | 22 | 32 | |
Loss from equity interest | 11 | $ 26 | |
Digicert Parent, Inc. | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity method investment | 22 | 32 | |
Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of debt | 4,029 | $ 3,964 | |
Other expense, net | Digicert Parent, Inc. | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loss from equity interest | $ 11 | $ 26 |
Financial Instruments and Fai_6
Financial Instruments and Fair Value Measurements (Equity Method Investment, Summarized Financial Information, Profit (Loss)) (Details) - Digicert Parent, Inc. - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Apr. 01, 2018 | |
Schedule of Equity Method Investments [Line Items] | ||
Revenue | $ 106 | $ 66 |
Gross profit | 87 | 53 |
Net loss | $ (36) | $ (82) |
Debt (Summary of Components of
Debt (Summary of Components of Debt) (Details) - USD ($) $ in Millions | Jul. 05, 2019 | Mar. 29, 2019 | |
Debt Instrument [Line Items] | |||
Total principal amount | $ 4,500 | $ 4,500 | |
Less: unamortized discount and issuance costs | (42) | (48) | |
Total debt | 4,458 | 4,452 | |
Current portion of long-term debt | (494) | (491) | [1] |
Total long-term debt | 3,964 | 3,961 | [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-5 due August 1, 2021 | |||
Debt Instrument [Line Items] | |||
Total principal amount | $ 500 | $ 500 | |
Unsecured Debt | Senior Term Loan A-5 due August 1, 2021 | |||
Debt Instrument [Line Items] | |||
Interest rate | 4.16% | 4.24% | |
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 | Jul. 05, 2019 | Mar. 29, 2019 |
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
Remainder of 2020 | $ 0 | |
2021 | 1,250 | |
2022 | 1,750 | |
2023 | 400 | |
2024 | 0 | |
Thereafter | 1,100 | |
Total future maturities of debt | $ 4,500 | $ 4,500 |
Debt (Summary of Interest Expen
Debt (Summary of Interest Expense) (Details) - Convertible Debt - USD ($) $ in Millions | 3 Months Ended | |
Jul. 05, 2019 | Jun. 29, 2018 | |
Debt Instrument [Line Items] | ||
Contractual interest expense | $ 10 | $ 9 |
Amortization of debt discount and issuance costs | $ 4 | $ 4 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) | 3 Months Ended | |
Jul. 05, 2019 | Mar. 29, 2019 | |
Debt Instrument [Line Items] | ||
Stock closing price (in dollars per share) | $ 25 | |
Convertible Debt | 2.5% Convertible Senior Notes due April 1, 2021 | ||
Debt Instrument [Line Items] | ||
Stated interest rate (as a percent) | 2.50% | |
Convertible Debt | 2.0% Convertible Senior Notes due August 15, 2021 | ||
Debt Instrument [Line Items] | ||
Stated interest rate (as a percent) | 2.00% | |
Convertible Debt | 2.5% Convertible Senior Notes Due April 1, 2021 | ||
Debt Instrument [Line Items] | ||
Stated interest rate (as a percent) | 2.50% | |
If-converted value in excess of principal | $ 245,000,000 | |
Convertible Debt | 2.0% Convertible Senior Notes Due August 15, 2021 | ||
Debt Instrument [Line Items] | ||
Stated interest rate (as a percent) | 2.00% | |
If-converted value in excess of principal | $ 281,000,000 | |
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 - USD ($) $ in Millions | 3 Months Ended | ||
Jul. 05, 2019 | Jun. 29, 2018 | Mar. 29, 2019 | |
Maximum | |||
Derivatives, Fair Value [Line Items] | |||
Derivative contract term | 12 months | ||
Not Designated as Hedging Instrument | Other expense, net | |||
Derivatives, Fair Value [Line Items] | |||
Foreign exchange forward contracts loss | $ 0 | $ (36) | |
Sold | Net Investment Hedging | Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount | 153 | $ 116 | |
Sold | Balance Sheet Contracts | Not Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount | 215 | 122 | |
Purchased | Balance Sheet Contracts | Not Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount | $ 599 | $ 963 |
Restructuring, Transition and_3
Restructuring, Transition and Other Costs (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | ||
Aug. 31, 2018 | Jul. 05, 2019 | Mar. 29, 2019 | |
Fiscal 2019 Plan | Employee Severance | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected number of positions eliminated, percent | 8.00% | ||
Expected cost | $ 50 | ||
Cumulative incurred to date | $ 47 | ||
Fiscal 2017 Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Cumulative incurred to date | $ 289 |
Restructuring, Transition and_4
Restructuring, Transition and Other Costs (Schedule of the Restructuring, transition and Other Costs) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 05, 2019 | Jun. 29, 2018 | |
Restructuring and Related Activities [Abstract] | ||
Severance and termination benefit costs | $ 24 | $ 12 |
Other exit and disposal costs | 1 | 9 |
Asset write-offs | 0 | 2 |
Transition costs | 0 | 73 |
Total restructuring, transition and other costs | $ 25 | $ 96 |
Income Taxes (Schedule of Effec
Income Taxes (Schedule of Effective Tax Rate) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 05, 2019 | Jun. 29, 2018 | |
Income Tax Disclosure [Abstract] | ||
Income (loss) before income taxes | $ 108 | $ (69) |
Income tax expense (benefit) | $ 82 | $ (4) |
Effective tax rate (as a percent) | 76.00% | 6.00% |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jul. 05, 2019 | Jun. 29, 2018 | Mar. 29, 2019 | |
Income Tax Contingency [Line Items] | |||
Unrecognized tax benefits | $ 511 | $ 446 | |
Income tax expense (benefit) | 82 | $ (4) | |
Decrease in unrecognized tax benefit, reasonable possible amount in the next 12 months | 30 | ||
Altera Corp. v. Commissioner | |||
Income Tax Contingency [Line Items] | |||
Income tax expense (benefit) | 62 | ||
Deferred Income Tax Liabilities | |||
Income Tax Contingency [Line Items] | |||
Unrecognized tax benefits | 94 | ||
Long-term Income Taxes Payable | |||
Income Tax Contingency [Line Items] | |||
Unrecognized tax benefits | $ 417 |
Income Taxes (Schedule of Unrec
Income Taxes (Schedule of Unrecognized Tax Benefits) (Details) $ in Millions | 3 Months Ended |
Jul. 05, 2019USD ($) | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |
Balance at beginning of year | $ 446 |
Lapse of statute of limitations | (13) |
Increase related to prior period tax positions | 62 |
Increase related to current year tax positions | 16 |
Net increase | 65 |
Balance at end of quarter | $ 511 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Aug. 08, 2019 | Jul. 05, 2019 | Jun. 29, 2018 | Mar. 29, 2019 | Aug. 06, 2019 |
Class of Stock [Line Items] | |||||
Dividends declared per common share (in dollars per share) | $ 0.075 | $ 0.075 | |||
Repurchases of common stock | $ 559 | $ 0 | |||
Net revenues | $ 1,247 | $ 1,156 | |||
Common Stock | |||||
Class of Stock [Line Items] | |||||
Stock repurchased and settled during the period (in shares) | 25 | ||||
Repurchases of common stock | $ 541 | ||||
Stock repurchased average price per share (in dollars per share) | $ 21.85 | ||||
Repurchases of common stock (in shares) | 1 | ||||
Remaining authorized repurchase amount | $ 507 | ||||
Subsequent Event | |||||
Class of Stock [Line Items] | |||||
Remaining authorized repurchase amount | $ 1,600 | ||||
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 | 3 Months Ended | |
Jul. 05, 2019USD ($) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
March 29, 2019 | $ 5,738 | [1] |
July 5, 2019 | 5,250 | |
Total | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
March 29, 2019 | (7) | |
Other comprehensive income (loss) before reclassifications | (5) | |
July 5, 2019 | (12) | |
Foreign Currency Translation Adjustments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
March 29, 2019 | (5) | |
Other comprehensive income (loss) before reclassifications | (7) | |
July 5, 2019 | (12) | |
Unrealized Loss on Available-For-Sale Securities | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
March 29, 2019 | (1) | |
Other comprehensive income (loss) before reclassifications | 1 | |
July 5, 2019 | 0 | |
Equity Method Investee | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
March 29, 2019 | (1) | |
Other comprehensive income (loss) before reclassifications | 1 | |
July 5, 2019 | $ 0 | |
[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 | |
Jul. 05, 2019 | Jun. 29, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | $ 80 | $ 113 |
Income tax benefit for stock-based compensation expense | (15) | (26) |
Cost of revenues | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 5 | 5 |
Sales and marketing | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 25 | 31 |
Research and development | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 35 | 39 |
General and administrative | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | $ 15 | $ 38 |
Stock-Based Compensation (Infor
Stock-Based Compensation (Information Related to Stock-baed Compensation) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | ||
Jul. 05, 2019 | Jun. 29, 2018 | Mar. 29, 2019 | |
RSUs: | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average fair value per grant (in usd per share) | $ 19.39 | $ 21.71 | |
Awards granted (in shares) | 12 | 10 | |
Total fair value of awards released | $ 174 | $ 167 | |
Outstanding and unvested (in shares) | 22 | 20 | |
PRUs: | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average fair value per grant (in usd per share) | $ 19.21 | $ 0 | |
Awards granted (in shares) | 2 | 0 | |
Total fair value of awards released | $ 26 | $ 8 | |
Outstanding and unvested (in shares) | 3 | 3 | |
Stock options: | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average fair value per award granted (in usd per share) | $ 4.76 | $ 0 | |
Awards granted (in shares) | 2 | 0 | |
Total intrinsic value of stock options exercised | $ 71 | $ 7 | |
Outstanding (in shares) | 8 | 13 | |
Exercisable (in shares) | 6 | 11 | |
Liability-Classified Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Released shares (in shares) | 1 | ||
Liability-Classified Awards | Accrued compensation and benefits | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Liability current | $ 4 | $ 22 | |
Restricted stock: | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding and unvested (in shares) | 1 | 1 |
Stock-Based Compensation (Sch_2
Stock-Based Compensation (Schedule of Unrecognized Compensation Costs) (Details) $ in Millions | 3 Months Ended |
Jul. 05, 2019USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Compensation cost not yet recognized | $ 430 |
RSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Compensation cost not yet recognized | $ 327 |
Compensation cost not yet recognized, period for recognition (in years) | 2 years 2 months 12 days |
PRUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Compensation cost not yet recognized | $ 32 |
Compensation cost not yet recognized, period for recognition (in years) | 1 year 8 months 12 days |
Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Compensation cost not yet recognized | $ 18 |
Compensation cost not yet recognized, period for recognition (in years) | 1 year 3 months 18 days |
Restricted stock: | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Compensation cost not yet recognized | $ 18 |
Compensation cost not yet recognized, period for recognition (in years) | 1 year 3 months 18 days |
Liability-Classified Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Compensation cost not yet recognized | $ 25 |
Compensation cost not yet recognized, period for recognition (in years) | 2 years 1 month 6 days |
Employee Stock Purchase Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Compensation cost not yet recognized | $ 10 |
Compensation cost not yet recognized, period for recognition (in years) | 7 months 6 days |
Net Income Per Share (Schedule
Net Income Per Share (Schedule of Components of Net Income Per Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | ||
Jul. 05, 2019 | Jun. 29, 2018 | ||
Earnings Per Share [Abstract] | |||
Income (loss) from continuing operations | $ 26 | $ (65) | |
Income from discontinued operations | 0 | 5 | |
Net income (loss) | $ 26 | $ (60) | |
Income (loss) per share - basic: | |||
Continuing operations (in dollars per share) | $ 0.04 | $ (0.10) | |
Discontinued operations (in dollars per share) | 0 | 0.01 | |
Net income (loss) per share - basic | [1] | 0.04 | (0.10) |
Income (loss) per share - diluted: | |||
Continuing operations (in dollars per share) | 0.04 | (0.10) | |
Discontinued operations (in dollars per share) | 0 | 0.01 | |
Net loss per share - diluted (in dollars per share) | [1] | $ 0.04 | $ (0.10) |
Weighted-average shares outstanding - basic | 619 | 624 | |
Dilutive potentially issuable shares - convertible debt | 10 | 0 | |
Dilutive potentially issuable shares - employee equity awards | 13 | 0 | |
Weighted-average shares outstanding - diluted | 642 | 624 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive shares excluded from diluted net income per share calculation (in shares) | 5 | 146 | |
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 | 91 | |
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) | 5 | 55 | |
[1] | Net income (loss) per share may not add due to rounding. |
Net Income Per Share (Narrative
Net Income Per Share (Narrative) (Details) - Convertible Debt | Jul. 05, 2019$ / 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 | |
Jul. 05, 2019USD ($)segment | Jun. 29, 2018USD ($) | |
Segment Reporting [Abstract] | ||
Number of reportable segments | segment | 2 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 1,247 | $ 1,156 |
Intersegment Eliminations | ||
Segment Reporting Information [Line Items] | ||
Revenues | 0 | 0 |
U.S. | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ 754 | $ 688 |
(Schedule of Reportable Segment
(Schedule of Reportable Segment Data) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 05, 2019 | Jun. 29, 2018 | |
Segment Reporting Information [Line Items] | ||
Net revenues | $ 1,247 | $ 1,156 |
Operating income | 157 | 2 |
Reportable Segments | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 1,247 | 1,156 |
Operating income | 375 | 319 |
Reportable Segments | Enterprise Security | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 611 | 556 |
Operating income | 39 | 56 |
Reportable Segments | Consumer Cyber Safety | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 636 | 600 |
Operating income | $ 336 | $ 263 |
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 | |
Jul. 05, 2019 | Jun. 29, 2018 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Operating income (loss) | $ 157 | $ 2 |
Stock-based compensation expense | 80 | 113 |
Amortization of intangible assets | 51 | 53 |
Restructuring, transition and other costs | 25 | 96 |
Reportable Segments | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Operating income (loss) | 375 | 319 |
Segment Reconciling Items | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Stock-based compensation expense | 80 | 113 |
Amortization of intangible assets | 112 | 111 |
Restructuring, transition and other costs | 25 | 96 |
Other | $ 1 | $ (3) |
Segment and Geographical Info_5
Segment and Geographical Information (Schedule of Product Revenue Information) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 05, 2019 | Jun. 29, 2018 | |
Segment Reporting Information [Line Items] | ||
Net revenues | $ 1,247 | $ 1,156 |
Total Enterprise Security | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 611 | 556 |
Endpoint and information protection | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 261 | 249 |
Network and web security | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 196 | 173 |
Other products and services | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 154 | 134 |
Total Consumer Digital Safety | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 636 | 600 |
Consumer security | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 381 | 369 |
Identity and information protection | ||
Segment Reporting Information [Line Items] | ||
Net revenues | $ 255 | $ 231 |
Segment and Geographical Info_6
Segment and Geographical Information (Schedule of Revenue by Geographical Location) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 05, 2019 | Jun. 29, 2018 | |
Revenue from External Customer [Line Items] | ||
Net revenues | $ 1,247 | $ 1,156 |
Americas | ||
Revenue from External Customer [Line Items] | ||
Net revenues | 807 | 734 |
EMEA | ||
Revenue from External Customer [Line Items] | ||
Net revenues | 252 | 243 |
APJ | ||
Revenue from External Customer [Line Items] | ||
Net revenues | $ 188 | $ 179 |
Segment and Geographical Info_7
Segment and Geographical Information (Schedule of Long-lived Assets by Geographic Location) (Details) - USD ($) $ in Millions | Jul. 05, 2019 | Mar. 29, 2019 | |
Revenue from External Customer [Line Items] | |||
Total cash, cash equivalent and short-term investments | $ 1,694 | $ 2,043 | |
Total property and equipment, net | 784 | 790 | [1] |
Total operating lease assets | 183 | ||
U.S. | |||
Revenue from External Customer [Line Items] | |||
Total cash, cash equivalent and short-term investments | 1,216 | 1,544 | |
Total property and equipment, net | 661 | 671 | |
Total operating lease assets | 95 | ||
International | |||
Revenue from External Customer [Line Items] | |||
Total cash, cash equivalent and short-term investments | 478 | 499 | |
Total property and equipment, net | 123 | $ 119 | |
Total operating lease assets | 66 | ||
INDIA | |||
Revenue from External Customer [Line Items] | |||
Total operating lease assets | $ 22 | ||
[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 - customer | 3 Months Ended | 12 Months Ended | |
Jul. 05, 2019 | Jun. 29, 2018 | Mar. 29, 2019 | |
Sales Revenue, Net | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk, number of customers | 0 | 0 | |
Accounts Receivable | Customer A | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk, percentage | 15.00% | 16.00% | |
Accounts Receivable | Customer B | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk, percentage | 11.00% | 15.00% | |
Accounts Receivable | Customer C | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk, percentage | 11.00% |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 69 Months Ended | ||
Jul. 05, 2019 | Jun. 29, 2018 | Sep. 30, 2012 | Jan. 31, 2014 | |
Loss Contingencies [Line Items] | ||||
Purchase Obligation | $ 1,107 | |||
Transition tax on untaxed foreign earnings | 703 | |||
Net revenues | 1,247 | $ 1,156 | ||
GSA Schedule Contract | ||||
Loss Contingencies [Line Items] | ||||
Net revenues | $ 222 | |||
GSA initial analysis of damage exposure | $ 145 | |||
GSA Schedule Contract | Minimum | ||||
Loss Contingencies [Line Items] | ||||
Estimated loss | $ 25 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event - USD ($) $ in Millions | Aug. 06, 2019 | Aug. 08, 2019 |
Subsequent Event [Line Items] | ||
Share repurchase authorization | $ 1,600 | |
Enterprise Security | Discontinued Operations, Disposed of by Sale | ||
Subsequent Event [Line Items] | ||
Disposal Group, Including Discontinued Operation, Consideration | $ 10,700 | |
Fiscal 2020 Plan | ||
Subsequent Event [Line Items] | ||
Expected number of positions eliminated, percent | 7.00% | |
Expected cost | $ 100 | |
Fiscal 2020 Plan | Employee Severance | ||
Subsequent Event [Line Items] | ||
Expected cost | 75 | |
Fiscal 2020 Plan | Site closures | ||
Subsequent Event [Line Items] | ||
Expected cost | $ 25 | |
Minimum | Enterprise Security | Discontinued Operations, Disposed of by Sale | ||
Subsequent Event [Line Items] | ||
Disposal Group, Including Discontinued Operation, Accrued Income Tax Payable | 2,300 | |
Maximum | Enterprise Security | Discontinued Operations, Disposed of by Sale | U.S. and Foreign Tax Authority | ||
Subsequent Event [Line Items] | ||
Disposal Group, Including Discontinued Operation, Accrued Income Tax Payable | $ 2,700 |
Uncategorized Items - symc7519-
Label | Element | Value |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 939,000,000 |
AOCI Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Common Stock Including Additional Paid in Capital [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 939,000,000 |