Cover
Cover - shares | 6 Months Ended | |
Oct. 04, 2019 | Oct. 30, 2019 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Oct. 4, 2019 | |
Document Transition Report | false | |
Entity File Number | 000-17781 | |
Entity Registrant Name | NortonLifeLock Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 77-0181864 | |
Entity Address, Address Line One | 60 E. Rio Salado Parkway, | |
Entity Address, Address Line Two | Suite 1000, | |
Entity Address, City or Town | Tempe, | |
Entity Address, State or Province | AZ | |
Entity Address, Postal Zip Code | 85281 | |
City Area Code | 650 | |
Local Phone Number | 527-8000 | |
Entity Information, Former Legal or Registered Name | Symantec Corporation | |
Title of 12(b) Security | Common Stock, | |
Trading Symbol | NLOK | |
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 | 623,004,728 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0000849399 | |
Current Fiscal Year End Date | --04-03 | |
Former Address | ||
Entity Information [Line Items] | ||
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 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Oct. 04, 2019 | Mar. 29, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 1,697 | $ 1,791 |
Short-term investments | 134 | 252 |
Accounts receivable, net | 593 | 708 |
Other current assets | 289 | 286 |
Current assets of discontinued operations | 7,047 | 149 |
Total current assets | 9,760 | 3,186 |
Property and equipment, net | 676 | 718 |
Operating lease assets | 154 | |
Intangible assets, net | 1,146 | 1,202 |
Goodwill | 2,675 | 2,677 |
Other long-term assets | 1,818 | 1,163 |
Long-term assets of discontinued operations | 0 | 6,992 |
Total assets | 16,229 | 15,938 |
Current liabilities: | ||
Accounts payable | 120 | 165 |
Accrued compensation and benefits | 219 | 257 |
Current portion of long-term debt | 1,245 | 491 |
Contract liabilities | 990 | 1,032 |
Current operating lease liabilities | 36 | |
Other current liabilities | 514 | 524 |
Current liabilities of discontinued operations | 1,932 | 1,297 |
Total current liabilities | 5,056 | 3,766 |
Long-term debt | 3,219 | 3,961 |
Long-term contract liabilities | 26 | 27 |
Deferred income tax liabilities | 538 | 577 |
Long-term income taxes payable | 1,069 | 1,076 |
Long-term operating lease liabilities | 137 | |
Other long-term liabilities | 72 | 80 |
Long-term liabilities of discontinued operations | 0 | 713 |
Total liabilities | 10,117 | 10,200 |
Commitments and contingencies (Note 17) | ||
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; 623 and 630 shares issued and outstanding as of October 4, 2019 and March 29, 2019, respectively | 4,816 | 4,812 |
Accumulated other comprehensive loss | (2) | (7) |
Retained earnings | 1,298 | 933 |
Total stockholders’ equity | 6,112 | 5,738 |
Total liabilities and stockholders’ equity | $ 16,229 | $ 15,938 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - $ / shares | Oct. 04, 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) | 623,000,000 | 630,000,000 |
Common stock, number of shares outstanding (in shares) | 623,000,000 | 630,000,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Oct. 04, 2019 | Sep. 28, 2018 | Oct. 04, 2019 | Sep. 28, 2018 | ||
Income Statement [Abstract] | |||||
Net revenues | $ 608 | $ 612 | $ 1,258 | $ 1,224 | |
Cost of revenues | 100 | 116 | 200 | 226 | |
Gross profit | 508 | 496 | 1,058 | 998 | |
Operating expenses: | |||||
Sales and marketing | 189 | 175 | 374 | 373 | |
Research and development | 86 | 105 | 188 | 214 | |
General and administrative | 92 | 101 | 188 | 220 | |
Amortization of intangible assets | 21 | 20 | 41 | 40 | |
Restructuring, transition and other costs | 17 | 52 | 30 | 137 | |
Total operating expenses | 405 | 453 | 821 | 984 | |
Operating income | 103 | 43 | 237 | 14 | |
Interest expense | (46) | (52) | (95) | (104) | |
Other expense, net | (2) | (23) | (2) | (38) | |
Income (loss) from continuing operations before income taxes | 55 | (32) | 140 | (128) | |
Income tax expense | 20 | 30 | 70 | 6 | |
Income (loss) from continuing operations | 35 | (62) | 70 | (134) | |
Income from discontinued operations, net of taxes | 750 | 54 | 741 | 66 | |
Net income (loss) | $ 785 | $ (8) | $ 811 | $ (68) | |
Income (loss) per share - basic: | |||||
Continuing operations (in dollars per share) | $ 0.06 | $ (0.10) | $ 0.11 | $ (0.21) | |
Discontinued operations (in dollars per share) | 1.21 | 0.09 | 1.20 | 0.11 | |
Net income (loss) per share - basic (in dollars per share) | [1] | 1.27 | (0.01) | 1.31 | (0.11) |
Income (loss) per share - diluted: | |||||
Continuing operations (in dollars per share) | 0.05 | (0.10) | 0.11 | (0.21) | |
Discontinued operations (in dollars per share) | 1.16 | 0.09 | 1.15 | 0.11 | |
Net income (loss) per share - diluted (in dollars per share) | [1] | $ 1.22 | $ (0.01) | $ 1.26 | $ (0.11) |
Weighted-average shares outstanding: | |||||
Basic (in shares) | 620 | 630 | 619 | 627 | |
Diluted (in shares) | 644 | 630 | 643 | 627 | |
[1] | Net income per share amounts may not add due to rounding. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Oct. 04, 2019 | Sep. 28, 2018 | Oct. 04, 2019 | Sep. 28, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 785 | $ (8) | $ 811 | $ (68) |
Other comprehensive income (loss), net of taxes: | ||||
Foreign currency translation adjustments | 9 | 1 | 2 | (23) |
Net unrealized gain on available-for-sale securities | 1 | 0 | 2 | 0 |
Other comprehensive income from equity method investee | 0 | 2 | 1 | 2 |
Other comprehensive loss, net of taxes | 10 | 3 | 5 | (21) |
Comprehensive income (loss) | $ 795 | $ (5) | $ 816 | $ (89) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) shares in Millions, $ in Millions | Total | Total Stockholders’ Equity | Common Stock and Additional Paid-In Capital | Accumulated Other Comprehensive Loss | 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) | $ (68) | (68) | (68) | ||
Other comprehensive income (loss) | (21) | (21) | |||
Common stock issued under employee stock incentive plans (in shares) | 10 | ||||
Common stock issued under employee stock incentive plans | 6 | $ 6 | |||
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 | (53) | $ (53) | |||
Cash dividends declared and dividend equivalents accrued | (99) | (99) | |||
Stock-based compensation | 223 | $ 223 | |||
Balance, end of year (in shares) at Sep. 28, 2018 | 632 | ||||
Balance, end of year at Sep. 28, 2018 | 5,950 | $ 4,867 | (17) | 1,100 | |
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 | |
Balance, beginning of year (in shares) at Jun. 29, 2018 | 631 | ||||
Balance, beginning of year at Jun. 29, 2018 | 5,918 | $ 4,780 | (20) | 1,158 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | $ (8) | (8) | (8) | ||
Other comprehensive income (loss) | 3 | 3 | |||
Common stock issued under employee stock incentive plans (in shares) | 1 | ||||
Common stock issued under employee stock incentive plans | 2 | $ 2 | |||
Shares withheld for taxes related to vesting of restricted stock units | (8) | (8) | |||
Cash dividends declared and dividend equivalents accrued | (50) | (50) | |||
Stock-based compensation | 93 | $ 93 | |||
Balance, end of year (in shares) at Sep. 28, 2018 | 632 | ||||
Balance, end of year at Sep. 28, 2018 | 5,950 | $ 4,867 | (17) | 1,100 | |
Balance, beginning of year (in shares) at Mar. 29, 2019 | 630 | 630 | |||
Balance, beginning of year at Mar. 29, 2019 | 5,738 | $ 4,812 | (7) | 933 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | $ 811 | 811 | 811 | ||
Other comprehensive income (loss) | 5 | 5 | |||
Common stock issued under employee stock incentive plans (in shares) | 22 | ||||
Common stock issued under employee stock incentive plans | 88 | $ 88 | |||
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 | (64) | $ (64) | |||
Repurchases of common stock (in shares) | (26) | ||||
Repurchases of common stock | (541) | $ (190) | (351) | ||
Cash dividends declared and dividend equivalents accrued | (95) | (95) | |||
Stock-based compensation | 170 | $ 170 | |||
Balance, end of year (in shares) at Oct. 04, 2019 | 623 | 623 | |||
Balance, end of year at Oct. 04, 2019 | 6,112 | $ 4,816 | (2) | 1,298 | |
Balance, beginning of year (in shares) at Jul. 05, 2019 | 617 | ||||
Balance, beginning of year at Jul. 05, 2019 | 5,250 | $ 4,701 | (12) | 561 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | $ 785 | 785 | 785 | ||
Other comprehensive income (loss) | 10 | 10 | |||
Common stock issued under employee stock incentive plans (in shares) | 6 | ||||
Common stock issued under employee stock incentive plans | 51 | $ 51 | |||
Shares withheld for taxes related to vesting of restricted stock units (in shares) | 0 | ||||
Shares withheld for taxes related to vesting of restricted stock units | (7) | $ (7) | |||
Cash dividends declared and dividend equivalents accrued | (48) | (48) | |||
Stock-based compensation | 71 | $ 71 | |||
Balance, end of year (in shares) at Oct. 04, 2019 | 623 | 623 | |||
Balance, end of year at Oct. 04, 2019 | $ 6,112 | $ 4,816 | $ (2) | $ 1,298 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) (Unaudited) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Oct. 04, 2019 | Sep. 28, 2018 | Oct. 04, 2019 | Sep. 28, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends declared per common share (in dollars per share) | $ 0.075 | $ 0.075 | $ 0.15 | $ 0.150 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Oct. 04, 2019 | Sep. 28, 2018 | |
OPERATING ACTIVITIES: | ||
Net income (loss) | $ 811 | $ (68) |
Adjustments: | ||
Amortization and depreciation | 251 | 305 |
Impairments of long-lived assets | 4 | 7 |
Stock-based compensation expense | 150 | 210 |
Deferred income taxes | (707) | 3 |
Loss from equity interest | 22 | 60 |
Other | 30 | (42) |
Changes in operating assets and liabilities, net of acquisitions: | ||
Accounts receivable, net | 111 | 286 |
Accounts payable | (32) | (12) |
Accrued compensation and benefits | (20) | (81) |
Contract liabilities | (129) | (116) |
Income taxes payable | 5 | (67) |
Other assets | (5) | 55 |
Other liabilities | 15 | 31 |
Net cash provided by operating activities | 506 | 571 |
INVESTING ACTIVITIES: | ||
Purchases of property and equipment | (76) | (95) |
Payments for acquisitions, net of cash acquired | 0 | (17) |
Proceeds from maturities and sales of short-term investments | 120 | 99 |
Other | (5) | (7) |
Net cash provided by (used in) investing activities | 39 | (20) |
FINANCING ACTIVITIES: | ||
Net proceeds from sales of common stock under employee stock incentive plans | 88 | 6 |
Tax payments related to restricted stock units | (65) | (53) |
Dividends and dividend equivalents paid | (98) | (110) |
Repurchases of common stock | (559) | 0 |
Net cash used in financing activities | (634) | (157) |
Effect of exchange rate fluctuations on cash and cash equivalents | (5) | (21) |
Change in cash and cash equivalents | (94) | 373 |
Beginning cash and cash equivalents | 1,791 | 1,774 |
Ending cash and cash equivalents | $ 1,697 | $ 2,147 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 6 Months Ended |
Oct. 04, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies Recent Corporate Name Change In connection with the sale of certain assets of our Enterprise Security business as disclosed in Basis of presentation below, effective November 4, 2019, we changed our corporate name from Symantec Corporation to NortonLifeLock Inc. Basis of presentation On August 8, 2019, we entered into a definitive agreement with Broadcom Inc. (Broadcom) under which Broadcom agreed to purchase certain of our Enterprise Security assets and assume certain liabilities for a purchase price of $10.7 billion (the Broadcom sale). On November 4, 2019 , we completed the transaction. The divestiture of our Enterprise Security business allows us to shift our operational focus to our consumer business and represents a strategic shift in our operations. As a result, the majority of results of our Enterprise Security business were classified as discontinued operations in our Condensed Consolidated Statements of Operations and thus excluded from both continuing operations and segment results for all periods presented. Starting in the second quarter of fiscal 2020, we operate in one reportable segment. The Enterprise Security business was part of our Enterprise Security segment. Results of discontinued operations include all revenues and expenses directly derived from the Enterprise Security business, with the exception of revenues and associated costs of our ID Analytics solutions, which were formerly included in the Enterprise Security segment, and general corporate overhead which were previously allocated to the Enterprise Security segment but are not allocated to discontinued operations. These revenues and expenses are now included in continuing operations. The assets acquired and liabilities to be sold to Broadcom, as specified in the August 8, 2019 definitive agreement, were classified as discontinued operations in our Condensed Consolidated Balance Sheets, subject to changes set forth in the agreement. See Notes 3 and 18 for additional information about the divestiture of our Enterprise Security business . 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 six months ended October 4, 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 and six-month periods in this report relate to fiscal periods ended October 4, 2019 and September 28, 2018 . The three and six months ended October 4, 2019 consisted of 13 and 27 weeks, respectively, whereas the three and six months ended September 28, 2018 consisted of 13 and 26 weeks, respectively. 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 six months ended October 4, 2019 , except for those noted in Note 2 and Note 5 , 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 | 6 Months Ended |
Oct. 04, 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. |
Discontinued Operations
Discontinued Operations | 6 Months Ended |
Oct. 04, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations On August 8, 2019, we entered into a definitive agreement with Broadcom under which Broadcom agreed to purchase certain of our Enterprise Security assets and assume certain liabilities for a purchase price of $10.7 billion . The following table presents the aggregate carrying amounts of the classes of assets and liabilities sold under the definitive agreement with Broadcom: (In millions) October 4, 2019 March 29, 2019 Assets: Current assets $ 147 $ 149 Intangible assets, net 934 1,048 Goodwill 5,772 5,773 Other long-term assets 194 171 Total assets of discontinued operations $ 7,047 $ 7,141 Liabilities: Current contract liabilities $ 1,224 $ 1,288 Other current liabilities 22 9 Long-term contract liabilities 671 709 Other long-term liabilities 15 4 Total liabilities of discontinued operations $ 1,932 $ 2,010 The following table presents information regarding certain components of income from discontinued operations, net of income taxes: Three Months Ended Six Months Ended (In millions) October 4, 2019 September 28, 2018 October 4, 2019 September 28, 2018 Net revenues $ 576 $ 567 $ 1,173 $ 1,116 Operating income $ 113 $ 63 $ 136 $ 99 Income before income taxes $ 113 $ 63 $ 137 $ 95 Income tax expense (benefit) $ (637 ) $ 9 $ (604 ) $ 29 Income from discontinued operations, net of taxes $ 750 $ 54 $ 741 $ 66 Our discontinued operations consist of our divested Enterprise Security assets and also includes results of our previously divested Veritas information management business (Veritas). There was no income from Veritas during the three and six months ended October 4, 2019 . Revenue from Veritas was $4 million and $9 million during the three and six months ended September 28, 2018 . Income from Veritas, net of taxes was $0 million and $5 million during the three and six months ended September 28, 2018 . We recorded a $665 million tax benefit in discontinued operations during the three and six months ended October 4, 2019 to remeasure the deferred tax assets associated with the tax basis of intellectual property held by our subsidiaries organized in Ireland. We previously expected to recover the tax basis through normal operation of our Enterprise business, which is taxed at the Irish trading rate of 12.5% . We now expect to recover the tax basis through the sale of certain assets of the Enterprise business, which will be taxed at the Irish capital gains tax rate of 33% . The following table presents significant non-cash items and capital expenditures of discontinued operations: Six Months Ended (In millions) October 4, 2019 September 28, 2018 Amortization and depreciation $ 123 $ 182 Stock-based compensation expense $ 95 $ 122 Purchases of property and equipment $ 29 $ 16 See Note 18 for more information regarding the completion of the sale that occurred on November 4, 2019 . |
Revenues
Revenues | 6 Months Ended |
Oct. 04, 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 Six Months Ended (In millions) October 4, 2019 September 28, 2018 October 4, 2019 September 28, 2018 Products and services transferred at a point in time $ 12 $ 12 $ 25 $ 24 Products and services transferred over time $ 596 $ 600 $ 1,233 $ 1,200 Contract liabilities The amount of revenue recognized during the three and six months ended October 4, 2019 that was included within the contract liabilities balance at July 5, 2019 and March 29, 2019 was $427 million and $767 million , respectively. The amount of revenue recognized during the three and six months ended September 28, 2018 that was included within the contract liabilities balance at June 29, 2018 and March 31, 2018 was $443 million and $766 million , respectively. Contract acquisition costs We recognized amortization expense of capitalized contract acquisition costs of $1 million and $3 million during the three and six months ended October 4, 2019 , respectively, and $1 million and $2 million during the three and six months ended September 28, 2018 , 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 October 4, 2019 , we had $626 million of remaining performance obligations, which does not include customer deposit liabilities of $390 million , of which we expect to recognize approximately 96% as revenue over the next twelve months . |
Leases Leases
Leases Leases | 6 Months Ended |
Oct. 04, 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 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: Three Months Ended Six Months Ended (In millions) October 4, 2019 October 4, 2019 Operating lease costs $ 10 $ 22 Short-term lease costs 2 4 Variable lease costs 5 11 Total lease costs $ 17 $ 37 Rent expense under operating leases was $18 million and $37 million for the three and six months ended September 28, 2018 , respectively. Other information related to our operating leases was as follows: Six Months Ended October 4, 2019 Weighted-average remaining lease term 5.5 years Weighted-average discount rate 4.14 % See Note 7 for additional cash flow information related to our operating leases. As of October 4, 2019 , the maturities of our lease liabilities, excluding lease liabilities associated with our discontinued operations, by fiscal year are as follows: (In millions) Remainder of 2020 $ 21 2021 42 2022 36 2023 27 2024 26 Thereafter 42 Total lease payments 194 Less: Imputed interest (21 ) Present value of lease liabilities $ 173 As of March 29, 2019 , the minimum future rentals on non-cancelable operating leases, including leases associated with our discontinued operations and based on the previous lease accounting standard, by fiscal year 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 | 6 Months Ended |
Oct. 04, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill The changes in the carrying amount of goodwill were as follows: (In millions) Balance as of March 29, 2019 $ 2,677 Translation adjustments (2 ) Balance as of October 4, 2019 $ 2,675 Intangible assets, net October 4, 2019 March 29, 2019 (In millions) Gross Accumulated Net Gross Accumulated Net Customer relationships $ 541 $ (208 ) $ 333 $ 541 $ (168 ) $ 373 Developed technology 143 (76 ) 67 143 (61 ) 82 Other 4 (2 ) 2 6 (3 ) 3 Total finite-lived intangible assets 688 (286 ) 402 690 (232 ) 458 Indefinite-lived trade names 744 — 744 744 — 744 Total intangible assets $ 1,432 $ (286 ) $ 1,146 $ 1,434 $ (232 ) $ 1,202 Goodwill and intangible assets to be disposed of as a result of our agreement with Broadcom to sell certain assets of Enterprise Security business were included in assets of discontinued operations in our Condensed Consolidated Balance Sheets as of October 4, 2019 and March 29, 2019 , and accordingly, are excluded from the tables above. Amortization expense for purchased intangible assets is summarized below: Three Months Ended Six Months Ended Statements of Operations Classification (In millions) October 4, 2019 September 28, 2018 October 4, 2019 September 28, 2018 Customer relationships and other $ 21 $ 20 $ 41 $ 40 Operating expenses Developed technology 8 8 15 14 Cost of revenues Total $ 29 $ 28 $ 56 $ 54 As of October 4, 2019 , future amortization expense related to intangible assets that have finite lives is as follows by fiscal year: (In millions) Remainder of 2020 $ 54 2021 106 2022 99 2023 78 2024 64 Thereafter 1 Total $ 402 |
Supplementary Information
Supplementary Information | 6 Months Ended |
Oct. 04, 2019 | |
Supplementary Information [Abstract] | |
Supplementary Information | Supplementary Information (in millions) Cash and cash equivalents: October 4, 2019 March 29, 2019 Cash $ 395 $ 376 Cash equivalents 1,302 1,415 Total cash and cash equivalents $ 1,697 $ 1,791 Other current assets: October 4, 2019 March 29, 2019 Prepaid expenses $ 118 $ 136 Income tax receivable and prepaid income taxes 26 61 Other tax receivable 123 69 Other 22 20 Total other current assets $ 289 $ 286 Property and equipment, net: October 4, 2019 March 29, 2019 Land $ 65 $ 65 Computer hardware and software 917 926 Office furniture and equipment 123 118 Buildings 364 364 Leasehold improvements 355 332 Construction in progress 7 12 Total property and equipment, gross 1,831 1,817 Accumulated depreciation and amortization (1,155 ) (1,099 ) Total property and equipment, net $ 676 $ 718 Other long-term assets: October 4, 2019 March 29, 2019 Cost method investments $ 186 $ 184 Equity method investment 11 32 Long-term income tax receivable and prepaid income taxes 43 34 Deferred income tax assets 1,498 830 Other 80 83 Total other long-term assets $ 1,818 $ 1,163 Short-term contract liabilities: October 4, 2019 March 29, 2019 Deferred revenue $ 600 $ 527 Customer deposit liabilities 390 505 Total short-term contract liabilities $ 990 $ 1,032 Other current liabilities: October 4, 2019 March 29, 2019 Income taxes payable $ 93 $ 103 Other taxes payable 202 143 Other 219 278 Total other current liabilities $ 514 $ 524 Long-term income taxes payable: October 4, 2019 March 29, 2019 Deemed repatriation tax payable $ 638 $ 703 Uncertain tax positions (including interest and penalties) 431 373 Total long-term income taxes payable $ 1,069 $ 1,076 Other expense, net : Three Months Ended Six Months Ended October 4, 2019 September 28, 2018 October 4, 2019 September 28, 2018 Interest income $ 8 $ 11 $ 18 $ 18 Loss from equity interest (11 ) (34 ) (22 ) (60 ) Foreign exchange gain (loss) 1 (4 ) (2 ) (9 ) Other — 4 4 13 Other expense, net $ (2 ) $ (23 ) $ (2 ) $ (38 ) Supplemental cash flow information: Six Months Ended October 4, 2019 September 28, 2018 Income taxes paid, net of refunds $ 165 $ 57 Interest expense paid $ 86 $ 93 Cash paid for amounts included in the measurement of operating lease liabilities $ 31 $ — 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 $ 11 $ 29 |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 6 Months Ended |
Oct. 04, 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: October 4, 2019 March 29, 2019 (In millions) Fair Value Level 1 Level 2 Fair Value Level 1 Level 2 Assets: Money market funds $ 1,117 $ 1,117 $ — $ 1,415 $ 1,415 $ — Certificates of deposit 185 — 185 1 — 1 Corporate bonds 134 — 134 251 — 251 Total $ 1,436 $ 1,117 $ 319 $ 1,667 $ 1,415 $ 252 The following table presents the contractual maturities of our investments in debt securities as of October 4, 2019 : (In millions) Fair Value Due in one year or less $ 276 Due after one year through five years 43 Total $ 319 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 October 4, 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 $11 million and $32 million at October 4, 2019 and March 29, 2019 , respectively. We recorded a loss from equity interests of $11 million and $22 million during the three and six months ended October 4, 2019 , respectively, and $34 million and $60 million during the three and six months ended September 28, 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 Six Months Ended (In millions) June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Revenue $ 108 $ 74 $ 215 $ 140 Gross profit $ 90 $ 61 $ 177 $ 114 Net loss $ (36 ) $ (123 ) $ (72 ) $ (205 ) Current and long-term debt As of October 4, 2019 and March 29, 2019 , the total fair value of our current and long-term fixed rate debt was $4,020 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 | 6 Months Ended |
Oct. 04, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following table summarizes components of our debt: (In millions, except percentages) October 4, 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 (36 ) (48 ) Total debt 4,464 4,452 Less: current portion (1,245 ) (491 ) Total long-term debt $ 3,219 $ 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: October 4, 2019 March 29, 2019 Senior Term Loan A-5 due August 1, 2021 3.90 % 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 October 4, 2019 and March 29, 2019, the principal amount and associated unamortized discount and issuance costs of the 2.5% Convertible Senior Notes were classified within Current portion of long-term debt in our Condensed Consolidated Balance Sheets. As of October 4, 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 $23.48 on October 4, 2019 , the if-converted value of our 2.5% Convertible Senior Notes exceeded the principal amount by approximately $200 million and the if-converted value of our 2.0% Convertible Senior Notes exceeded the principal amount by approximately $188 million . The following table sets forth total interest expense recognized related to our 2.5% and 2.0% Convertible Senior Notes: Three Months Ended Six Months Ended (In millions) October 4, 2019 September 28, 2018 October 4, 2019 September 28, 2018 Contractual interest expense $ 9 $ 10 $ 19 $ 19 Amortization of debt discount and issuance costs $ 4 $ 4 $ 8 $ 8 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 October 4, 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 October 4, 2019 , we were in compliance with all debt covenants. |
Derivatives
Derivatives | 6 Months Ended |
Oct. 04, 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. We exclude changes in forward points for the forward contracts from the assessment of hedge effectiveness. We recognize changes in the excluded component in other income (expense), net. As of October 4, 2019 and September 28, 2018 , the fair value of these contracts was insignificant. During the six months ended October 4, 2019 , a net gain of $2 million was recorded in Accumulated other comprehensive loss . 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 October 4, 2019 and September 28, 2018 , the fair value of these contracts was insignificant. The related loss recognized in Other expense, net in our Condensed Consolidated Statements of Operations was as follows: Three Months Ended Six Months Ended (In millions) October 4, 2019 September 28, 2018 October 4, 2019 September 28, 2018 Foreign exchange forward contracts loss $ (6 ) $ (2 ) $ (6 ) $ (38 ) 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 October 4, 2019 and September 28, 2018 . The notional amount of our outstanding foreign exchange forward contracts in U.S. dollar equivalent was as follows: (In millions) October 4, 2019 March 29, 2019 Net investment hedges Foreign exchange forward contracts sold $ 120 $ 116 Balance sheet contracts Foreign exchange forward contracts purchased $ 410 $ 963 Foreign exchange forward contracts sold $ 277 $ 122 |
Restructuring, Transition and O
Restructuring, Transition and Other Costs | 6 Months Ended |
Oct. 04, 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, separation, 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. Separation costs primarily consist of consulting costs incurred in connection with the divestiture of our Enterprise Security business. 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. Fiscal 2020 Plan On August 6, 2019, our Board of Directors approved a fiscal 2020 restructuring plan (the Fiscal 2020 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. As of October 4, 2019 , we have incurred costs of $49 million related to our Fiscal 2020 Plan. Fiscal 2019 Plan In August 2018, we announced a restructuring plan (the Fiscal 2019 Plan) under which we incurred costs of $48 million as of October 4, 2019. These actions were substantially completed in fiscal 2020. 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 attributable to continuing operations are presented in the table below: Three Months Ended Six Months Ended (In millions) October 4, 2019 September 28, 2018 October 4, 2019 September 28, 2018 Severance and termination benefit costs $ 17 $ — $ 28 $ 5 Other exit and disposal costs — 1 2 8 Asset write-offs — — — 2 Separation costs — — — 3 Transition costs — 51 — 119 Total restructuring, transition and other costs $ 17 $ 52 $ 30 $ 137 In connection with the agreement to sell certain assets of our Enterprise Security business, a portion of our restructuring, transition and other costs were classified to discontinued operations for all periods presented. Our restructuring, transition and other costs attributable to discontinued operations are presented in the table below: Three Months Ended Six Months Ended (In millions) October 4, September 28, October 4, September 28, Severance and termination benefit costs $ 33 $ — $ 45 $ 7 Other exit and disposal costs — — — 2 Separation costs 7 — 7 — Transition costs — 4 — 6 Total restructuring, transition and other $ 40 $ 4 $ 52 $ 15 |
Income Taxes
Income Taxes | 6 Months Ended |
Oct. 04, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The following table summarizes our effective tax rate for the periods presented: Three Months Ended Six Months Ended (In millions, except percentages) October 4, 2019 September 28, 2018 October 4, 2019 September 28, 2018 Income (loss) from continuing operations before income taxes $ 55 $ (32 ) $ 140 $ (128 ) Income tax expense $ 20 $ 30 $ 70 $ 6 Effective tax rate 36 % (94 )% 50 % (5 )% Our effective tax rate for continuing operations for fiscal 2020 was based on the statutory tax rate of 21% . Our effective tax rate for continuing operations for the three and six months ended October 4, 2019 differs from the federal statutory income tax rate primarily due to various permanent differences, and state taxes, partially offset by the benefits of lower-taxed international earnings and the research and development tax credit. In addition, for the six months ended October 4, 2019 , there was additional tax expense recorded to account for uncertain tax positions related to the recent holding of the Ninth Circuit Court of Appeals (Ninth Circuit) in Altera Corp. v. Commissioner (the Altera holding). Our effective tax rate for income (loss) from continuing operations for the three and six months ended September 28, 2018 differs from the federal statutory income tax rate primarily due to tax expense recorded to account for one-time adjustments for guidance issued on the Tax Cuts and Jobs Act (H.R.1) (Tax Reform) and other changes in response to the Tax Reform, various permanent differences, and state taxes, partially offset by the benefits of lower-taxed international earnings and the research and development tax credit. 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. In June 2019, 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 six months ended October 4, 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 holding 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 six months ended October 4, 2019 were as follows: (In millions) Balance as of March 29, 2019 $ 446 Lapse of statute of limitations (14 ) Increase related to prior period tax positions 63 Increase related to current year tax positions 31 Balance as of October 4, 2019 $ 526 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 | 6 Months Ended |
Oct. 04, 2019 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders' Equity Stock repurchase program During the six months ended October 4, 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 six months ended October 4, 2019 . On August 6, 2019, our Board of Directors increased the share repurchase authorization to $1,600 million . As of October 4, 2019 , we had $1,600 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 Gain (Loss) on Available-For-Sale Securities Equity Method Investee Total Balance as of March 29, 2019 $ (5 ) $ (1 ) $ (1 ) $ (7 ) Other comprehensive income before reclassifications 2 2 1 5 Balance as of October 4, 2019 $ (3 ) $ 1 $ — $ (2 ) |
Employee Equity Incentive Plans
Employee Equity Incentive Plans | 6 Months Ended |
Oct. 04, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Employee Equity Incentive Plans | Employee Equity Incentive Plans The following table sets forth the stock-based compensation expense recognized for our equity incentive plans: Three Months Ended Six Months Ended (In millions) October 4, 2019 September 28, 2018 October 4, 2019 September 28, 2018 Cost of revenues $ 1 $ 1 $ 1 $ 3 Sales and marketing 6 11 13 22 Research and development 8 8 15 16 General and administrative 14 18 26 47 Total stock-based compensation from continuing operations 29 38 55 88 Discontinued operations 41 59 95 122 Total stock-based compensation expense $ 70 $ 97 $ 150 $ 210 Income tax benefit for stock-based compensation expense $ (14 ) $ (21 ) $ (29 ) $ (47 ) The following table summarizes additional information related to our stock-based awards, including awards associated with our discontinued operations: Six Months Ended (In millions, except per grant data) October 4, 2019 September 28, 2018 Restricted stock units (RSUs): Weighted-average fair value per award granted $ 19.50 $ 21.65 Awards granted 12 12 Total fair value of awards released $ 199 $ 195 Outstanding and unvested 20 21 Performance-based restricted stock units (PRUs): Weighted-average fair value per award granted $ 19.21 $ 21.23 Awards granted 2 2 Total fair value of awards released $ 28 $ 8 Outstanding and unvested at target payout 3 5 Stock options: Weight-average fair value per award granted $ 4.76 $ — Awards granted 2 — Total intrinsic value of stock options exercised $ 113 $ 11 Outstanding 6 13 Exercisable 4 12 Restricted stock: Outstanding and unvested — 1 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 October 4, 2019 and March 29, 2019 , the total liability associated with liability-classified awards was $6 million and $22 million , respectively, which is presented in Accrued compensation and benefits in our Condensed Consolidated Balance Sheets. As of October 4, 2019 , the total unrecognized stock-based compensation costs related to our unvested stock-based awards was $446 million , which will be recognized over an estimated weighted-average amortization period of 1.9 years . |
Net Income Per Share
Net Income Per Share | 6 Months Ended |
Oct. 04, 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 and six months ended September 28, 2018 , as there was a loss from continuing operations in the period and inclusion of potentially issuable shares was anti-dilutive. The components of basic and diluted net income (loss) per share are as follows: Three Months Ended Six Months Ended (In millions, except per share amounts) October 4, 2019 September 28, 2018 October 4, 2019 September 28, 2018 Income (loss) from continuing operations $ 35 $ (62 ) $ 70 $ (134 ) Income from discontinued operations, net of taxes 750 54 741 66 Net income (loss) $ 785 $ (8 ) $ 811 $ (68 ) Income (loss) per share - basic: Continuing operations $ 0.06 $ (0.10 ) $ 0.11 $ (0.21 ) Discontinued operations $ 1.21 $ 0.09 $ 1.20 $ 0.11 Net income (loss) per share - basic $ 1.27 $ (0.01 ) $ 1.31 $ (0.11 ) Income (loss) per share - diluted: Continuing operations $ 0.05 $ (0.10 ) $ 0.11 $ (0.21 ) Discontinued operations $ 1.16 $ 0.09 $ 1.15 $ 0.11 Net income (loss) per share - diluted $ 1.22 $ (0.01 ) $ 1.26 $ (0.11 ) Weighted-average shares outstanding - basic 620 630 619 627 Dilutive potentially issuable shares: Convertible debt 16 — 13 — Employee equity awards 8 — 11 — Weighted-average shares outstanding - diluted 644 630 643 627 Anti-dilutive shares excluded from diluted net income (loss) per share calculation: Convertible debt — 91 — 91 Employee equity awards 2 50 3 50 Total 2 141 3 141 (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 and six months ended September 28, 2018 as there was a loss from continuing operations in the period . |
Segment and Geographical Inform
Segment and Geographical Information | 6 Months Ended |
Oct. 04, 2019 | |
Segment Reporting [Abstract] | |
Segment and Geographical Information | Segment and Geographic Information Historically, we operated in two reportable segments: Enterprise Security and Consumer Cyber Safety. The Enterprise Security segment focused 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. The Consumer Cyber Safety segment focused on providing cyber safety solutions under our Norton LifeLock brand to help consumers protect their devices, online privacy, identities, and home networks. On August 8, 2019, we entered into a definitive agreement to sell certain assets of our Enterprise Security business to Broadcom, representing substantially all of our Enterprise Security segment. This transaction closed on November 4, 2019. The divestiture of these Enterprise Security assets allows us to shift our operational focus to our consumer business and represents a strategic shift in our operations. As a result, the results of our divested Enterprise Security assets were classified as discontinued operations in our Condensed Consolidated Statements of Operations and thus excluded from both continuing operations and segment results for all periods presented. Accordingly, we now have one reportable segment. Our Chief Operating Decision Maker reviews financial information presented on a consolidated basis to evaluate company performance and to allocate resources. The change has been reflected in our segment reporting for all periods presented. The following table summarizes net revenues by significant products and services categories: Three Months Ended Six Months Ended (In millions) October 4, 2019 September 28, 2018 October 4, 2019 September 28, 2018 Consumer security $ 358 $ 368 $ 739 $ 737 Identity and information protection 237 233 492 464 Other 13 11 27 23 Total net revenues $ 608 $ 612 $ 1,258 $ 1,224 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 Six Months Ended (In millions) October 4, 2019 September 28, 2018 October 4, 2019 September 28, 2018 Americas $ 447 $ 447 $ 926 $ 884 EMEA 92 96 189 200 APJ 69 69 143 140 Total net revenues $ 608 $ 612 $ 1,258 $ 1,224 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 $427 million and $883 million during the three and six months ended October 4, 2019 , respectively, and $425 million and $842 million during the three and six months ended September 28, 2018 , respectively. No other individual country accounted for more than 10% of revenues. Most of our assets as of October 4, 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) October 4, 2019 March 29, 2019 U.S. $ 1,429 $ 1,544 International 402 499 Total cash, cash equivalent and short-term investments $ 1,831 $ 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) October 4, 2019 March 29, 2019 U.S. $ 565 $ 606 International (1) 111 112 Total property and equipment, net $ 676 $ 718 (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) October 4, 2019 U.S. $ 77 International (1) 77 Total operating lease assets $ 154 (1) No individual country represented more than 10% of the respective totals. Significant customers Customers, which are distributors, that accounted for over 10% of our net accounts receivable were as follows: October 4, 2019 March 29, 2019 Customer A 13 % 16 % Customer B 13 % 15 % |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Oct. 04, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Purchase obligations As of October 4, 2019 , we had purchase obligations of $983 million associated with agreements for purchases of goods or services, including purchase obligations associated with our discontinued operations. The amount of purchase obligations reflects estimated future payments as of October 4, 2019 according to the contract terms. Deemed repatriation taxes As of October 4, 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 Act. Indemnifications In the ordinary course of business, we may provide indemnifications of varying scope and terms to customers, vendors, lessors, business partners, subsidiaries, and other parties with respect to certain matters, including, but not limited to, losses arising out of our breach of agreements or representations and warranties made by us. In addition, our bylaws contain indemnification obligations to our directors, officers, employees, and agents, and we have entered into indemnification agreements with our directors and certain of our officers to give such directors and officers additional contractual assurances regarding the scope of the indemnification set forth in our bylaws and to provide additional procedural protections. We maintain director and officer insurance, which may cover certain liabilities arising from our obligation to indemnify our directors and officers. It is not possible to determine the aggregate maximum potential loss under these indemnification agreements due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular agreement. Such indemnification agreements might not be subject to maximum loss clauses. Historically, we have not incurred material costs as a result of obligations under these agreements, and we have not accrued any material liabilities related to such indemnification obligations in our Condensed Consolidated Financial Statements. In connection with the sale of Veritas, we assigned several leases to Veritas Technologies LLC or its related subsidiaries. As a condition to consenting to the assignments, certain lessors required us to agree to indemnify the lessor under the applicable lease with respect to certain matters, including, but not limited to, losses arising out of Veritas Technologies LLC or its related subsidiaries’ breach of payment obligations under the terms of the lease. As with our other indemnification obligations discussed above and in general, it is not possible to determine the aggregate maximum potential loss under these indemnification agreements due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular agreement. As with our other indemnification obligations, such indemnification agreements might not be subject to maximum loss clauses, and to date, generally under our real estate obligations, we have not incurred material costs as a result of such obligations under our leases and have not accrued any liabilities related to such indemnification obligations in our Condensed Consolidated Financial Statements. We provide limited product warranties, and the majority of our software license agreements contain provisions that indemnify licensees of our software from damages and costs resulting from claims alleging that our software infringes on the intellectual property rights of a third party. Historically, payments made under these provisions have been immaterial. We monitor the conditions that are subject to indemnification to identify if a loss has occurred. Litigation contingencies 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 filed a motion seeking leave to amend and a proposed first amended complaint on July 11, 2019. The Court granted the motion in part on October 2, 2019 and the first amended complaint was filed on October 11, 2019. The Court’s order dismissed certain claims and certain of our former officers. The Court ordered defendants to answer by November 7. No trial date has been set. Purported shareholder derivative lawsuits have been filed against us 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 our 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 us 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. On June 6, 2019, we filed a motion seeking summary judgment on all claims asserted by all plaintiffs, and the plaintiffs filed a motion for partial summary judgment on elements of liability on their claims. Both motions are currently pending before the court and Symantec is currently unable to forecast the likely outcome of these motions. 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. Avila v. LifeLock et al On August 29, 2019 the Ninth Circuit issued a mandate remanding a securities class action lawsuit, originally filed on July 22, 2015, against our subsidiary, LifeLock, as well as certain of LifeLock’s former officers (the “LifeLock Defendants”) for further proceedings in the U.S. District Court for the District of Arizona. The Ninth Circuit had affirmed in part and reversed in part the August 21, 2017 decision of the District Court, which had dismissed the case with prejudice. The complaint in the remanded action alleges that, during a purported class period of July 30, 2014 to July 21, 2015, a period that predates LifeLock’s acquisition by us, the LifeLock Defendants made false and misleading statements in violation of Sections 10(b) and 20(a) of the Securities Exchange Act. The case is now back in the U.S. District Court for further proceedings. 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 | 6 Months Ended |
Oct. 04, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Sale of equity method investment On October 16, 2019, Clearlake Capital Group, L.P. (Clearlake), a private investment firm, and TA Associates, an existing investor of DigiCert and a private equity firm, completed an investment in DigiCert. As a part of the transaction, Clearlake and TA became equal partners in DigiCert. As a result, we received $378 million in cash for our equity investment in DigiCert. We expect to make income tax payments of approximately $55 million as a result of the transaction. As a result of the transaction, we expect to recognize a gain of approximately $310 million to $320 million , net of taxes. Divestiture of Enterprise Security business On November 4, 2019, we completed the sale of certain assets and the assumption of certain liabilities of our Enterprise Security business to Broadcom for a purchase price of $10.7 billion . In connection with the transaction, we expect to incur direct costs of $35 million to $40 million . We expect to pay $2.2 billion to $2.6 billion in U.S. and foreign income taxes as a result of the transaction. As a result of the transaction, we expect to recognize a gain of approximately $2 billion to $3 billion , net of taxes. We expect to distribute the net proceeds from the Broadcom sale to our stockholders through a special dividend in the fourth quarter of our 2020 fiscal year. In connection with the Broadcom sale, we entered into a transition services agreement under which we will provide assistance to Broadcom including, but not limited to, business support services and information technology services for a period of six months . New debt financing On November 4, 2019, we entered into a credit agreement with financial institutions, which provides a revolving line of credit of $1,000 million through October 2024, a 5 -year term loan of $500 million , and a delayed 5 -year term loan commitment of $750 million through September 15, 2020. Interest on borrowings under the credit agreement can be based on a base rate or a London interbank offered rate (LIBOR) at our election. Based on our debt ratings and our consolidated leverage ratios as determined in accordance with the credit agreement, loans borrowed bear interest, in the case of base rate loans, at a per annum rate equal to the applicable base rate plus a margin ranging from 0.125% to 0.75% , and in the case of LIBOR loans, LIBOR plus a margin ranging from 1.125% to 1.75% . The unused revolving line of credit is subject to a commitment fee ranging from 0.125% to 0.30% per annum. The principal amount of the term loan is repayable in quarterly installments on the last business day of each calendar quarter commencing with the quarter ended March 31, 2021 in an amount equal to 1.25% of the aggregate principal amount of the term loan and in the outstanding principal amount upon the October 2024 maturity date. The credit agreement contains customary representations and warranties, non-financial covenants for financial reporting, affirmative and negative covenants, including a covenant that we maintain a consolidated leverage ratio of not more than 5.25 to 1.0 , or 5.75 to 1.0 if we acquire assets or business in an aggregate amount greater than $250 million , and restrictions on subsidiary indebtedness, liens, stock repurchases, and dividends (with exceptions permitting our regular quarterly dividend). Dividends On November 7, 2019 , we announced a cash dividend of $0.125 per share of common stock to be paid in December 2019 . All shares of common stock issued and outstanding and all RSUs and 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. November 2019 Restructuring Plan On November 5, 2019, in connection with the strategic decision to divest our enterprise business, our Board of Directors approved a restructuring plan (the November 2019 Plan). Actions under this plan will include the reduction of our workforce by approximately 3,100 employees, as well as asset impairments, contract terminations, facilities closures, and the sale of underutilized facilities. We estimate that we will incur total costs of $800 million in connection with the November 2019 Plan of which approximately $350 million are expected to consist of cash expenditures for severance and termination benefits. These actions are expected to be completed within the next twelve months . |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 6 Months Ended |
Oct. 04, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of presentation | On August 8, 2019, we entered into a definitive agreement with Broadcom Inc. (Broadcom) under which Broadcom agreed to purchase certain of our Enterprise Security assets and assume certain liabilities for a purchase price of $10.7 billion (the Broadcom sale). On November 4, 2019 , we completed the transaction. The divestiture of our Enterprise Security business allows us to shift our operational focus to our consumer business and represents a strategic shift in our operations. As a result, the majority of results of our Enterprise Security business were classified as discontinued operations in our Condensed Consolidated Statements of Operations and thus excluded from both continuing operations and segment results for all periods presented. Starting in the second quarter of fiscal 2020, we operate in one reportable segment. The Enterprise Security business was part of our Enterprise Security segment. Results of discontinued operations include all revenues and expenses directly derived from the Enterprise Security business, with the exception of revenues and associated costs of our ID Analytics solutions, which were formerly included in the Enterprise Security segment, and general corporate overhead which were previously allocated to the Enterprise Security segment but are not allocated to discontinued operations. These revenues and expenses are now included in continuing operations. The assets acquired and liabilities to be sold to Broadcom, as specified in the August 8, 2019 definitive agreement, were classified as discontinued operations in our Condensed Consolidated Balance Sheets, subject to changes set forth in the agreement. See Notes 3 and 18 for additional information about the divestiture of our Enterprise Security business . 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 six months ended October 4, 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 and six-month periods in this report relate to fiscal periods ended October 4, 2019 and September 28, 2018 . The three and six months ended October 4, 2019 consisted of 13 and 27 weeks, respectively, whereas the three and six months ended September 28, 2018 consisted of 13 and 26 weeks, respectively. 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 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. |
Lessee, Leases | We determine if an arrangement is a lease at inception. We have elected to not recognize a lease liability or 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. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 6 Months Ended |
Oct. 04, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Discontinued Operations | The following table presents information regarding certain components of income from discontinued operations, net of income taxes: Three Months Ended Six Months Ended (In millions) October 4, 2019 September 28, 2018 October 4, 2019 September 28, 2018 Net revenues $ 576 $ 567 $ 1,173 $ 1,116 Operating income $ 113 $ 63 $ 136 $ 99 Income before income taxes $ 113 $ 63 $ 137 $ 95 Income tax expense (benefit) $ (637 ) $ 9 $ (604 ) $ 29 Income from discontinued operations, net of taxes $ 750 $ 54 $ 741 $ 66 The following table presents significant non-cash items and capital expenditures of discontinued operations: Six Months Ended (In millions) October 4, 2019 September 28, 2018 Amortization and depreciation $ 123 $ 182 Stock-based compensation expense $ 95 $ 122 Purchases of property and equipment $ 29 $ 16 The following table presents the aggregate carrying amounts of the classes of assets and liabilities sold under the definitive agreement with Broadcom: (In millions) October 4, 2019 March 29, 2019 Assets: Current assets $ 147 $ 149 Intangible assets, net 934 1,048 Goodwill 5,772 5,773 Other long-term assets 194 171 Total assets of discontinued operations $ 7,047 $ 7,141 Liabilities: Current contract liabilities $ 1,224 $ 1,288 Other current liabilities 22 9 Long-term contract liabilities 671 709 Other long-term liabilities 15 4 Total liabilities of discontinued operations $ 1,932 $ 2,010 |
Revenues (Tables)
Revenues (Tables) | 6 Months Ended |
Oct. 04, 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 Six Months Ended (In millions) October 4, 2019 September 28, 2018 October 4, 2019 September 28, 2018 Products and services transferred at a point in time $ 12 $ 12 $ 25 $ 24 Products and services transferred over time $ 596 $ 600 $ 1,233 $ 1,200 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Oct. 04, 2019 | |
Leases [Abstract] | |
Schedule of Lease Cost and Sublease Income | Other information related to our operating leases was as follows: Six Months Ended October 4, 2019 Weighted-average remaining lease term 5.5 years Weighted-average discount rate 4.14 % The following summarizes our lease costs: Three Months Ended Six Months Ended (In millions) October 4, 2019 October 4, 2019 Operating lease costs $ 10 $ 22 Short-term lease costs 2 4 Variable lease costs 5 11 Total lease costs $ 17 $ 37 |
Lessee, Operating Lease, Liability, Maturity | As of October 4, 2019 , the maturities of our lease liabilities, excluding lease liabilities associated with our discontinued operations, by fiscal year are as follows: (In millions) Remainder of 2020 $ 21 2021 42 2022 36 2023 27 2024 26 Thereafter 42 Total lease payments 194 Less: Imputed interest (21 ) Present value of lease liabilities $ 173 |
Lessee, Operating Lease, Disclosure | As of March 29, 2019 , the minimum future rentals on non-cancelable operating leases, including leases associated with our discontinued operations and based on the previous lease accounting standard, by fiscal year 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) | 6 Months Ended |
Oct. 04, 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 were as follows: (In millions) Balance as of March 29, 2019 $ 2,677 Translation adjustments (2 ) Balance as of October 4, 2019 $ 2,675 |
Schedule of Intangible Assets, Net, Finite-Lived | October 4, 2019 March 29, 2019 (In millions) Gross Accumulated Net Gross Accumulated Net Customer relationships $ 541 $ (208 ) $ 333 $ 541 $ (168 ) $ 373 Developed technology 143 (76 ) 67 143 (61 ) 82 Other 4 (2 ) 2 6 (3 ) 3 Total finite-lived intangible assets 688 (286 ) 402 690 (232 ) 458 Indefinite-lived trade names 744 — 744 744 — 744 Total intangible assets $ 1,432 $ (286 ) $ 1,146 $ 1,434 $ (232 ) $ 1,202 |
Schedule of Intangible Assets, Net, Indefinite-Lived | October 4, 2019 March 29, 2019 (In millions) Gross Accumulated Net Gross Accumulated Net Customer relationships $ 541 $ (208 ) $ 333 $ 541 $ (168 ) $ 373 Developed technology 143 (76 ) 67 143 (61 ) 82 Other 4 (2 ) 2 6 (3 ) 3 Total finite-lived intangible assets 688 (286 ) 402 690 (232 ) 458 Indefinite-lived trade names 744 — 744 744 — 744 Total intangible assets $ 1,432 $ (286 ) $ 1,146 $ 1,434 $ (232 ) $ 1,202 |
Amortization Expense | Amortization expense for purchased intangible assets is summarized below: Three Months Ended Six Months Ended Statements of Operations Classification (In millions) October 4, 2019 September 28, 2018 October 4, 2019 September 28, 2018 Customer relationships and other $ 21 $ 20 $ 41 $ 40 Operating expenses Developed technology 8 8 15 14 Cost of revenues Total $ 29 $ 28 $ 56 $ 54 |
Schedule of Future Intangible Asset Amortization Expense | Three Months Ended Six Months Ended Statements of Operations Classification (In millions) October 4, 2019 September 28, 2018 October 4, 2019 September 28, 2018 Customer relationships and other $ 21 $ 20 $ 41 $ 40 Operating expenses Developed technology 8 8 15 14 Cost of revenues Total $ 29 $ 28 $ 56 $ 54 As of October 4, 2019 , future amortization expense related to intangible assets that have finite lives is as follows by fiscal year: |
Supplementary Information (Tabl
Supplementary Information (Tables) | 6 Months Ended |
Oct. 04, 2019 | |
Supplementary Information [Abstract] | |
Schedule of Cash and cash equivalents | Cash and cash equivalents: October 4, 2019 March 29, 2019 Cash $ 395 $ 376 Cash equivalents 1,302 1,415 Total cash and cash equivalents $ 1,697 $ 1,791 |
Schedule of Other current assets | Other current assets: October 4, 2019 March 29, 2019 Prepaid expenses $ 118 $ 136 Income tax receivable and prepaid income taxes 26 61 Other tax receivable 123 69 Other 22 20 Total other current assets $ 289 $ 286 |
Summary of Property and equipment, net | Property and equipment, net: October 4, 2019 March 29, 2019 Land $ 65 $ 65 Computer hardware and software 917 926 Office furniture and equipment 123 118 Buildings 364 364 Leasehold improvements 355 332 Construction in progress 7 12 Total property and equipment, gross 1,831 1,817 Accumulated depreciation and amortization (1,155 ) (1,099 ) Total property and equipment, net $ 676 $ 718 |
Schedule of Other long-term assets | Other long-term assets: October 4, 2019 March 29, 2019 Cost method investments $ 186 $ 184 Equity method investment 11 32 Long-term income tax receivable and prepaid income taxes 43 34 Deferred income tax assets 1,498 830 Other 80 83 Total other long-term assets $ 1,818 $ 1,163 |
Schedule of Short-term contract Liabilities | Short-term contract liabilities: October 4, 2019 March 29, 2019 Deferred revenue $ 600 $ 527 Customer deposit liabilities 390 505 Total short-term contract liabilities $ 990 $ 1,032 |
Schedule of Other current liabilities | Other current liabilities: October 4, 2019 March 29, 2019 Income taxes payable $ 93 $ 103 Other taxes payable 202 143 Other 219 278 Total other current liabilities $ 514 $ 524 |
Schedule of Long-term income taxes payable | Long-term income taxes payable: October 4, 2019 March 29, 2019 Deemed repatriation tax payable $ 638 $ 703 Uncertain tax positions (including interest and penalties) 431 373 Total long-term income taxes payable $ 1,069 $ 1,076 |
Schedule of Other expense, net | Other expense, net : Three Months Ended Six Months Ended October 4, 2019 September 28, 2018 October 4, 2019 September 28, 2018 Interest income $ 8 $ 11 $ 18 $ 18 Loss from equity interest (11 ) (34 ) (22 ) (60 ) Foreign exchange gain (loss) 1 (4 ) (2 ) (9 ) Other — 4 4 13 Other expense, net $ (2 ) $ (23 ) $ (2 ) $ (38 ) |
Supplemental Cash Flow Information | Supplemental cash flow information: Six Months Ended October 4, 2019 September 28, 2018 Income taxes paid, net of refunds $ 165 $ 57 Interest expense paid $ 86 $ 93 Cash paid for amounts included in the measurement of operating lease liabilities $ 31 $ — 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 $ 11 $ 29 |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurements (Tables) | 6 Months Ended |
Oct. 04, 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: October 4, 2019 March 29, 2019 (In millions) Fair Value Level 1 Level 2 Fair Value Level 1 Level 2 Assets: Money market funds $ 1,117 $ 1,117 $ — $ 1,415 $ 1,415 $ — Certificates of deposit 185 — 185 1 — 1 Corporate bonds 134 — 134 251 — 251 Total $ 1,436 $ 1,117 $ 319 $ 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 October 4, 2019 : (In millions) Fair Value Due in one year or less $ 276 Due after one year through five years 43 Total $ 319 |
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 Six Months Ended (In millions) June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Revenue $ 108 $ 74 $ 215 $ 140 Gross profit $ 90 $ 61 $ 177 $ 114 Net loss $ (36 ) $ (123 ) $ (72 ) $ (205 ) |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Oct. 04, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Components of Debt | The following table summarizes components of our debt: (In millions, except percentages) October 4, 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 (36 ) (48 ) Total debt 4,464 4,452 Less: current portion (1,245 ) (491 ) Total long-term debt $ 3,219 $ 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: October 4, 2019 March 29, 2019 Senior Term Loan A-5 due August 1, 2021 3.90 % 4.24 % |
Schedule of Maturities of Long-term Debt | As of October 4, 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 Six Months Ended (In millions) October 4, 2019 September 28, 2018 October 4, 2019 September 28, 2018 Contractual interest expense $ 9 $ 10 $ 19 $ 19 Amortization of debt discount and issuance costs $ 4 $ 4 $ 8 $ 8 |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Oct. 04, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments, Loss | The related loss recognized in Other expense, net in our Condensed Consolidated Statements of Operations was as follows: Three Months Ended Six Months Ended (In millions) October 4, 2019 September 28, 2018 October 4, 2019 September 28, 2018 Foreign exchange forward contracts loss $ (6 ) $ (2 ) $ (6 ) $ (38 ) |
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) October 4, 2019 March 29, 2019 Net investment hedges Foreign exchange forward contracts sold $ 120 $ 116 Balance sheet contracts Foreign exchange forward contracts purchased $ 410 $ 963 Foreign exchange forward contracts sold $ 277 $ 122 |
Restructuring, Transition and_2
Restructuring, Transition and Other Costs (Tables) | 6 Months Ended |
Oct. 04, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | Our restructuring, transition and other costs attributable to continuing operations are presented in the table below: Three Months Ended Six Months Ended (In millions) October 4, 2019 September 28, 2018 October 4, 2019 September 28, 2018 Severance and termination benefit costs $ 17 $ — $ 28 $ 5 Other exit and disposal costs — 1 2 8 Asset write-offs — — — 2 Separation costs — — — 3 Transition costs — 51 — 119 Total restructuring, transition and other costs $ 17 $ 52 $ 30 $ 137 In connection with the agreement to sell certain assets of our Enterprise Security business, a portion of our restructuring, transition and other costs were classified to discontinued operations for all periods presented. Our restructuring, transition and other costs attributable to discontinued operations are presented in the table below: Three Months Ended Six Months Ended (In millions) October 4, September 28, October 4, September 28, Severance and termination benefit costs $ 33 $ — $ 45 $ 7 Other exit and disposal costs — — — 2 Separation costs 7 — 7 — Transition costs — 4 — 6 Total restructuring, transition and other $ 40 $ 4 $ 52 $ 15 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Oct. 04, 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 Six Months Ended (In millions, except percentages) October 4, 2019 September 28, 2018 October 4, 2019 September 28, 2018 Income (loss) from continuing operations before income taxes $ 55 $ (32 ) $ 140 $ (128 ) Income tax expense $ 20 $ 30 $ 70 $ 6 Effective tax rate 36 % (94 )% 50 % (5 )% |
Schedule of Unrecognized Tax Benefits Roll Forward | The aggregate changes in the balance of gross unrecognized tax benefits for the six months ended October 4, 2019 were as follows: (In millions) Balance as of March 29, 2019 $ 446 Lapse of statute of limitations (14 ) Increase related to prior period tax positions 63 Increase related to current year tax positions 31 Balance as of October 4, 2019 $ 526 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Oct. 04, 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 Gain (Loss) on Available-For-Sale Securities Equity Method Investee Total Balance as of March 29, 2019 $ (5 ) $ (1 ) $ (1 ) $ (7 ) Other comprehensive income before reclassifications 2 2 1 5 Balance as of October 4, 2019 $ (3 ) $ 1 $ — $ (2 ) |
Employee Equity Incentive Pla_2
Employee Equity Incentive Plans (Tables) | 6 Months Ended |
Oct. 04, 2019 | |
Share-based Payment Arrangement [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 Six Months Ended (In millions) October 4, 2019 September 28, 2018 October 4, 2019 September 28, 2018 Cost of revenues $ 1 $ 1 $ 1 $ 3 Sales and marketing 6 11 13 22 Research and development 8 8 15 16 General and administrative 14 18 26 47 Total stock-based compensation from continuing operations 29 38 55 88 Discontinued operations 41 59 95 122 Total stock-based compensation expense $ 70 $ 97 $ 150 $ 210 Income tax benefit for stock-based compensation expense $ (14 ) $ (21 ) $ (29 ) $ (47 ) |
Schedule of Additional Information Related to Stock-Based awards | The following table summarizes additional information related to our stock-based awards, including awards associated with our discontinued operations: Six Months Ended (In millions, except per grant data) October 4, 2019 September 28, 2018 Restricted stock units (RSUs): Weighted-average fair value per award granted $ 19.50 $ 21.65 Awards granted 12 12 Total fair value of awards released $ 199 $ 195 Outstanding and unvested 20 21 Performance-based restricted stock units (PRUs): Weighted-average fair value per award granted $ 19.21 $ 21.23 Awards granted 2 2 Total fair value of awards released $ 28 $ 8 Outstanding and unvested at target payout 3 5 Stock options: Weight-average fair value per award granted $ 4.76 $ — Awards granted 2 — Total intrinsic value of stock options exercised $ 113 $ 11 Outstanding 6 13 Exercisable 4 12 Restricted stock: Outstanding and unvested — 1 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 6 Months Ended |
Oct. 04, 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 Six Months Ended (In millions, except per share amounts) October 4, 2019 September 28, 2018 October 4, 2019 September 28, 2018 Income (loss) from continuing operations $ 35 $ (62 ) $ 70 $ (134 ) Income from discontinued operations, net of taxes 750 54 741 66 Net income (loss) $ 785 $ (8 ) $ 811 $ (68 ) Income (loss) per share - basic: Continuing operations $ 0.06 $ (0.10 ) $ 0.11 $ (0.21 ) Discontinued operations $ 1.21 $ 0.09 $ 1.20 $ 0.11 Net income (loss) per share - basic $ 1.27 $ (0.01 ) $ 1.31 $ (0.11 ) Income (loss) per share - diluted: Continuing operations $ 0.05 $ (0.10 ) $ 0.11 $ (0.21 ) Discontinued operations $ 1.16 $ 0.09 $ 1.15 $ 0.11 Net income (loss) per share - diluted $ 1.22 $ (0.01 ) $ 1.26 $ (0.11 ) Weighted-average shares outstanding - basic 620 630 619 627 Dilutive potentially issuable shares: Convertible debt 16 — 13 — Employee equity awards 8 — 11 — Weighted-average shares outstanding - diluted 644 630 643 627 Anti-dilutive shares excluded from diluted net income (loss) per share calculation: Convertible debt — 91 — 91 Employee equity awards 2 50 3 50 Total 2 141 3 141 (1) Net income per share amounts may not add due to rounding. |
Segment and Geographical Info_2
Segment and Geographical Information (Tables) | 6 Months Ended |
Oct. 04, 2019 | |
Segment Reporting [Abstract] | |
Revenue from External Customers by Products and Services | The following table summarizes net revenues by significant products and services categories: Three Months Ended Six Months Ended (In millions) October 4, 2019 September 28, 2018 October 4, 2019 September 28, 2018 Consumer security $ 358 $ 368 $ 739 $ 737 Identity and information protection 237 233 492 464 Other 13 11 27 23 Total net revenues $ 608 $ 612 $ 1,258 $ 1,224 |
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 Six Months Ended (In millions) October 4, 2019 September 28, 2018 October 4, 2019 September 28, 2018 Americas $ 447 $ 447 $ 926 $ 884 EMEA 92 96 189 200 APJ 69 69 143 140 Total net revenues $ 608 $ 612 $ 1,258 $ 1,224 |
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) October 4, 2019 March 29, 2019 U.S. $ 1,429 $ 1,544 International 402 499 Total cash, cash equivalent and short-term investments $ 1,831 $ 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) October 4, 2019 March 29, 2019 U.S. $ 565 $ 606 International (1) 111 112 Total property and equipment, net $ 676 $ 718 (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) October 4, 2019 U.S. $ 77 International (1) 77 Total operating lease assets $ 154 (1) No individual 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: October 4, 2019 March 29, 2019 Customer A 13 % 16 % Customer B 13 % 15 % |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Details) $ in Billions | 2 Months Ended | 4 Months Ended | |
Oct. 04, 2019segment | Aug. 07, 2019segment | Aug. 08, 2019USD ($) | |
Product Information [Line Items] | |||
Number of reportable segments | segment | 1 | 2 | |
Enterprise Security | Discontinued Operations, Disposed of by Sale | |||
Product Information [Line Items] | |||
Consideration from sale of discontinued operations | $ | $ 10.7 |
Recent Accounting Standards (Sc
Recent Accounting Standards (Schedule of Effect of New Accounting Pronouncement) (Details) - USD ($) $ in Millions | Oct. 04, 2019 | Mar. 30, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease assets | $ 154 | |
Operating lease liability | $ 173 | |
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 |
Discontinued Operations (Narrat
Discontinued Operations (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Oct. 04, 2019 | Sep. 28, 2018 | Oct. 04, 2019 | Sep. 28, 2018 | Aug. 08, 2019 | |
Discontinued Operations, Disposed of by Sale | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Income from discontinued operations | $ 750,000,000 | $ 54,000,000 | $ 741,000,000 | $ 66,000,000 | |
Revenue from discontinued operations | 576,000,000 | 567,000,000 | 1,173,000,000 | 1,116,000,000 | |
Tax benefit in discontinued operation | 637,000,000 | (9,000,000) | 604,000,000 | (29,000,000) | |
Enterprise Security | Discontinued Operations, Disposed of by Sale | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Consideration from sale of discontinued operations | $ 10,700,000,000 | ||||
Enterprise Security | Discontinued Operations, Held-for-sale | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Tax benefit in discontinued operation | 665,000,000 | 665,000,000 | |||
Veritas | Discontinued Operations, Disposed of by Sale | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Income from discontinued operations | $ 0 | 0 | $ 0 | 5,000,000 | |
Revenue from discontinued operations | $ 4,000,000 | $ 9,000,000 |
Discontinued Operations (Schedu
Discontinued Operations (Schedule of Carrying Amounts of Assets and Liabilities Sold) (Details) - USD ($) $ in Millions | Oct. 04, 2019 | Mar. 29, 2019 |
Assets: | ||
Current assets | $ 7,047 | $ 149 |
Enterprise Security | Discontinued Operations, Disposed of by Sale | ||
Assets: | ||
Current assets | 147 | 149 |
Intangible assets, net | 934 | 1,048 |
Goodwill | 5,772 | 5,773 |
Other long-term assets | 194 | 171 |
Total assets of discontinued operations | 7,047 | 7,141 |
Liabilities: | ||
Current contract liabilities | 1,224 | 1,288 |
Other current liabilities | 22 | 9 |
Long-term contract liabilities | 671 | 709 |
Other long-term liabilities | 15 | 4 |
Total liabilities of discontinued operations | $ 1,932 | $ 2,010 |
Discontinued Operations (Compon
Discontinued Operations (Components of Income from Discontinued Operations) (Details) - Discontinued Operations, Disposed of by Sale - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Oct. 04, 2019 | Sep. 28, 2018 | Oct. 04, 2019 | Sep. 28, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net revenues | $ 576 | $ 567 | $ 1,173 | $ 1,116 |
Operating income | 113 | 63 | 136 | 99 |
Income before income taxes | 113 | 63 | 137 | 95 |
Income tax expense (benefit) | (637) | 9 | (604) | 29 |
Income from discontinued operations, net of taxes | $ 750 | $ 54 | $ 741 | $ 66 |
Discontinued Operations (Sche_2
Discontinued Operations (Schedule of Non-cash Items and Capital Expenditures) (Details) - Discontinued Operations - USD ($) $ in Millions | 6 Months Ended | |
Oct. 04, 2019 | Sep. 28, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Amortization and depreciation | $ 123 | $ 182 |
Stock-based compensation expense | 95 | 122 |
Purchases of property and equipment | $ 29 | $ 16 |
Revenues (Timing of Revenue Rec
Revenues (Timing of Revenue Recognition, Contract Liabilities and Contract Acquisition Costs) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Oct. 04, 2019 | Sep. 28, 2018 | Oct. 04, 2019 | Sep. 28, 2018 | Mar. 29, 2019 | |
Disaggregation of Revenue [Line Items] | |||||
Revenues | $ 608,000,000 | $ 612,000,000 | $ 1,258,000,000 | $ 1,224,000,000 | |
Revenue recognized from beginning contract liabilities | 427,000,000 | 443,000,000 | 767,000,000 | 766,000,000 | |
Amortization expense from capitalized contract acquisition costs | 1,000,000 | 1,000,000 | 3,000,000 | 2,000,000 | |
Impairment loss | 0 | 0 | 0 | 0 | |
Customer deposit liabilities | 390,000,000 | 390,000,000 | $ 505,000,000 | ||
Transferred at Point in Time | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 12,000,000 | 12,000,000 | 25,000,000 | 24,000,000 | |
Transferred Over Time | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | $ 596,000,000 | $ 600,000,000 | $ 1,233,000,000 | $ 1,200,000,000 |
Revenues (Remaining Performance
Revenues (Remaining Performance Obligations) (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-05 $ in Millions | Oct. 04, 2019USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 626 |
Percent expected to be recognized as revenue | 96.00% |
Remaining performance obligation, expected timing of satisfaction, period | 12 months |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Sep. 28, 2018 | Sep. 28, 2018 | Oct. 04, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Rent expense | $ 18 | $ 37 | |
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) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Oct. 04, 2019 | Oct. 04, 2019 | |
Leases [Abstract] | ||
Operating lease costs | $ 10 | $ 22 |
Short-term lease costs | 2 | 4 |
Variable lease costs | 5 | 11 |
Total lease costs | $ 17 | $ 37 |
Leases (Operating Lease Informa
Leases (Operating Lease Information) (Details) | Oct. 04, 2019 |
Leases [Abstract] | |
Weighted-average remaining lease term | 5 years 6 months |
Weighted-average discount rate | 4.14% |
Leases (Maturity of Lease Liabi
Leases (Maturity of Lease Liabilities) (Details) $ in Millions | Oct. 04, 2019USD ($) |
Leases [Abstract] | |
Remainder of 2020 | $ 21 |
2021 | 42 |
2022 | 36 |
2023 | 27 |
2024 | 26 |
Thereafter | 42 |
Total lease payments | 194 |
Less: Imputed interest | (21) |
Present value of lease liabilities | $ 173 |
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 | 6 Months Ended |
Oct. 04, 2019USD ($) | |
Goodwill [Roll Forward] | |
March 29, 2019 | $ 2,677 |
Translation adjustments | (2) |
October 4, 2019 | $ 2,675 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Schedule of Intangible Assets, Net) (Details) - USD ($) $ in Millions | Oct. 04, 2019 | Mar. 29, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 688 | $ 690 |
Accumulated Amortization | (286) | (232) |
Net Carrying Amount | 402 | 458 |
Indefinite-lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,432 | 1,434 |
Net Carrying Amount | 1,146 | 1,202 |
Trade Names | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 744 | 744 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 541 | 541 |
Accumulated Amortization | (208) | (168) |
Net Carrying Amount | 333 | 373 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 143 | 143 |
Accumulated Amortization | (76) | (61) |
Net Carrying Amount | 67 | 82 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 4 | 6 |
Accumulated Amortization | (2) | (3) |
Net Carrying Amount | $ 2 | $ 3 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (Schedule of Amortization Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Oct. 04, 2019 | Sep. 28, 2018 | Oct. 04, 2019 | Sep. 28, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | $ 21 | $ 20 | $ 41 | $ 40 |
Customer relationships | Operating expenses | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | 21 | 20 | 41 | 40 |
Developed technology | Cost of revenues | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | 8 | 8 | 15 | 14 |
Segment Reconciling Items | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | $ 29 | $ 28 | $ 56 | $ 54 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets (Schedule of Future Intangible Asset Amortization Expense) (Details) - USD ($) $ in Millions | Oct. 04, 2019 | Mar. 29, 2019 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remainder of 2020 | $ 54 | |
2021 | 106 | |
2022 | 99 | |
2023 | 78 | |
2024 | 64 | |
Thereafter | 1 | |
Net Carrying Amount | $ 402 | $ 458 |
Supplementary Information (Cash
Supplementary Information (Cash and Cash Equivalents) (Details) - USD ($) $ in Millions | Oct. 04, 2019 | Mar. 29, 2019 |
Supplementary Information [Abstract] | ||
Cash | $ 395 | $ 376 |
Cash equivalents | 1,302 | 1,415 |
Total cash and cash equivalents | $ 1,697 | $ 1,791 |
Supplementary Information (Othe
Supplementary Information (Other Current Assets) (Details) - USD ($) $ in Millions | Oct. 04, 2019 | Mar. 29, 2019 |
Supplementary Information [Abstract] | ||
Prepaid expenses | $ 118 | $ 136 |
Income tax receivable and prepaid income taxes | 26 | 61 |
Other tax receivable | 123 | 69 |
Other | 22 | 20 |
Total other current assets | $ 289 | $ 286 |
Supplementary Information (Prop
Supplementary Information (Property and Equipment) (Details) - USD ($) $ in Millions | Oct. 04, 2019 | Mar. 29, 2019 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | $ 1,831 | $ 1,817 |
Accumulated depreciation and amortization | (1,155) | (1,099) |
Total property and equipment, net | 676 | 718 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 65 | 65 |
Computer hardware and software | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 917 | 926 |
Office furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 123 | 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 | 355 | 332 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | $ 7 | $ 12 |
Supplementary Information (Ot_2
Supplementary Information (Other Long-term Assets) (Details) - USD ($) $ in Millions | Oct. 04, 2019 | Mar. 29, 2019 |
Supplementary Information [Abstract] | ||
Cost method investments | $ 186 | $ 184 |
Equity method investment | 11 | 32 |
Long-term income tax receivable and prepaid income taxes | 43 | 34 |
Deferred income tax assets | 1,498 | 830 |
Other | 80 | 83 |
Total other long-term assets | $ 1,818 | $ 1,163 |
Supplementary Information (Shor
Supplementary Information (Short-term Contract Liabilities) (Details) - USD ($) $ in Millions | Oct. 04, 2019 | Mar. 29, 2019 |
Supplementary Information [Abstract] | ||
Deferred revenue | $ 600 | $ 527 |
Customer deposit liabilities | 390 | 505 |
Total short-term contract liabilities | $ 990 | $ 1,032 |
Supplementary Information (Ot_3
Supplementary Information (Other Current Liabilities) (Details) - USD ($) $ in Millions | Oct. 04, 2019 | Mar. 29, 2019 |
Supplementary Information [Abstract] | ||
Income taxes payable | $ 93 | $ 103 |
Other taxes payable | 202 | 143 |
Other | 219 | 278 |
Total other current liabilities | $ 514 | $ 524 |
Supplementary Information (Long
Supplementary Information (Long-term Income Taxes Payable) (Details) - USD ($) $ in Millions | Oct. 04, 2019 | Mar. 29, 2019 |
Supplementary Information [Abstract] | ||
Deemed repatriation tax payable | $ 638 | $ 703 |
Uncertain tax positions (including interest and penalties) | 431 | 373 |
Total long-term income taxes payable | $ 1,069 | $ 1,076 |
Supplementary Information (Ot_4
Supplementary Information (Other expense, net) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Oct. 04, 2019 | Sep. 28, 2018 | Oct. 04, 2019 | Sep. 28, 2018 | |
Supplementary Information [Abstract] | ||||
Interest income | $ 8 | $ 11 | $ 18 | $ 18 |
Loss from equity interest | (11) | (34) | (22) | (60) |
Foreign exchange gain (loss) | 1 | (4) | (2) | (9) |
Other | 0 | 4 | 4 | 13 |
Other expense, net | $ (2) | $ (23) | $ (2) | $ (38) |
Supplementary Information (Supp
Supplementary Information (Supplemental Cash Flow Information) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Oct. 04, 2019 | Sep. 28, 2018 | |
Supplementary Information [Abstract] | ||
Income taxes paid, net of refunds | $ 165 | $ 57 |
Interest expense paid | 86 | 93 |
Cash paid for amounts included in the measurement of operating lease liabilities | 31 | 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 | $ 11 | $ 29 |
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 | Oct. 04, 2019 | Mar. 29, 2019 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | $ 1,436 | $ 1,667 |
Fair Value | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 1,117 | 1,415 |
Fair Value | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 185 | 1 |
Fair Value | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 134 | 251 |
Reported Value Measurement | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 1,117 | 1,415 |
Reported Value Measurement | Level 1 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 1,117 | 1,415 |
Reported Value Measurement | 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 | 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 | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 319 | 252 |
Reported Value Measurement | 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 | Level 2 | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 185 | 1 |
Reported Value Measurement | Level 2 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | $ 134 | $ 251 |
Financial Instruments and Fai_4
Financial Instruments and Fair Value Measurements (Schedule of Debt Maturities) (Details) $ in Millions | Oct. 04, 2019USD ($) |
Fair Value Disclosures [Abstract] | |
Due in one year or less | $ 276 |
Due after one year through five years | 43 |
Total | $ 319 |
Financial Instruments and Fai_5
Financial Instruments and Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Oct. 04, 2019 | Sep. 28, 2018 | Oct. 04, 2019 | Sep. 28, 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 | $ 186 | $ 184 | ||
Equity method investment | 11 | 11 | 32 | ||
Loss from equity interest | 11 | $ 34 | 22 | $ 60 | |
Digicert Parent, Inc. | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Equity method investment | 11 | 11 | 32 | ||
Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair value of debt | 4,020 | 4,020 | $ 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 | $ 34 | $ 22 | $ 60 |
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 | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 29, 2018 | Jun. 30, 2019 | Jun. 29, 2018 | |
Schedule of Equity Method Investments [Line Items] | ||||
Revenue | $ 108 | $ 74 | $ 215 | $ 140 |
Gross profit | 90 | 61 | 177 | 114 |
Net loss | $ (36) | $ (123) | $ (72) | $ (205) |
Debt (Summary of Components of
Debt (Summary of Components of Debt) (Details) - USD ($) $ in Millions | Oct. 04, 2019 | Mar. 29, 2019 |
Debt Instrument [Line Items] | ||
Total principal amount | $ 4,500 | $ 4,500 |
Less: unamortized discount and issuance costs | (36) | (48) |
Total debt | 4,464 | 4,452 |
Less: current portion | (1,245) | (491) |
Total long-term debt | 3,219 | 3,961 |
Senior Notes | 4.2% Senior Notes due September 15, 2020 | ||
Debt Instrument [Line Items] | ||
Total principal amount | $ 750 | 750 |
Effective Interest Rate | 4.25% | |
Stated interest rate (as a percent) | 4.20% | |
Senior Notes | 3.95% Senior Notes due June 15, 2022 | ||
Debt Instrument [Line Items] | ||
Total principal amount | $ 400 | 400 |
Effective Interest Rate | 4.05% | |
Stated interest rate (as a percent) | 3.95% | |
Senior Notes | 5.0% Senior Notes due April 15, 2025 | ||
Debt Instrument [Line Items] | ||
Total principal amount | $ 1,100 | 1,100 |
Effective Interest Rate | 5.23% | |
Stated interest rate (as a percent) | 5.00% | |
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 | 3.90% | 4.24% |
Convertible Debt | 2.5% Convertible Senior Notes due April 1, 2021 | ||
Debt Instrument [Line Items] | ||
Total principal amount | $ 500 | $ 500 |
Effective Interest Rate | 3.76% | |
Stated interest rate (as a percent) | 2.50% | |
Convertible Debt | 2.0% Convertible Senior Notes due August 15, 2021 | ||
Debt Instrument [Line Items] | ||
Total principal amount | $ 1,250 | $ 1,250 |
Effective Interest Rate | 2.66% | |
Stated interest rate (as a percent) | 2.00% |
Debt (Maturities of Long-term D
Debt (Maturities of Long-term Debt) (Details) - USD ($) $ in Millions | Oct. 04, 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 | 6 Months Ended | ||
Oct. 04, 2019 | Sep. 28, 2018 | Oct. 04, 2019 | Sep. 28, 2018 | |
Debt Instrument [Line Items] | ||||
Contractual interest expense | $ 9 | $ 10 | $ 19 | $ 19 |
Amortization of debt discount and issuance costs | $ 4 | $ 4 | $ 8 | $ 8 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) | 6 Months Ended | |
Oct. 04, 2019 | Mar. 29, 2019 | |
Debt Instrument [Line Items] | ||
Stock closing price (in dollars per share) | $ 23.48 | |
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 | $ 200,000,000 | |
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 | $ 188,000,000 | |
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) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Oct. 04, 2019 | Sep. 28, 2018 | Oct. 04, 2019 | Sep. 28, 2018 | Mar. 29, 2019 | |
Derivatives, Fair Value [Line Items] | |||||
Gain recognized in Accumulated other comprehensive loss | $ 2 | ||||
Foreign Exchange Forward | Maximum | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative contract term | 12 months | ||||
Foreign Exchange Forward | Not Designated as Hedging Instrument | Other expense, net | |||||
Derivatives, Fair Value [Line Items] | |||||
Foreign exchange forward contracts loss | $ (6) | $ (2) | $ (6) | $ (38) | |
Sold | Net Investment Hedging | Foreign Exchange Forward | Designated as Hedging Instrument | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional amount | 120 | 120 | $ 116 | ||
Sold | Balance Sheet Contracts | Foreign Exchange Forward | Not Designated as Hedging Instrument | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional amount | 277 | 277 | 122 | ||
Purchased | Balance Sheet Contracts | Foreign Exchange Forward | Not Designated as Hedging Instrument | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional amount | $ 410 | $ 410 | $ 963 |
Restructuring, Transition and_3
Restructuring, Transition and Other Costs (Narrative) (Details) - USD ($) $ in Millions | Aug. 06, 2019 | Oct. 04, 2019 | Mar. 29, 2019 |
Fiscal 2020 Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected number of positions eliminated, percent | 7.00% | ||
Expected cost of restructuring | $ 100 | ||
Fiscal 2020 Plan | Employee Severance | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected cost of restructuring | 75 | ||
Fiscal 2020 Plan | Site Closures | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected cost of restructuring | $ 25 | ||
Cumulative restructuring cost incurred to date | $ 49 | ||
Fiscal 2019 Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Cumulative restructuring cost incurred to date | $ 48 | ||
Fiscal 2017 Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Cumulative restructuring cost 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 | 6 Months Ended | ||
Oct. 04, 2019 | Sep. 28, 2018 | Oct. 04, 2019 | Sep. 28, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring, transition and other costs | $ 17 | $ 52 | $ 30 | $ 137 |
Continuing Operations | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance and termination benefit costs | 17 | 0 | 28 | 5 |
Other exit and disposal costs | 0 | 1 | 2 | 8 |
Asset write-offs | 0 | 0 | 0 | 2 |
Separation costs | 0 | 0 | 0 | 3 |
Transition costs | 0 | 51 | 0 | 119 |
Total restructuring, transition and other costs | 17 | 52 | 30 | 137 |
Discontinued Operations | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance and termination benefit costs | 33 | 0 | 45 | 7 |
Other exit and disposal costs | 0 | 0 | 0 | 2 |
Separation costs | 7 | 0 | 7 | 0 |
Transition costs | 0 | 4 | 0 | 6 |
Total restructuring, transition and other costs | $ 40 | $ 4 | $ 52 | $ 15 |
Income Taxes (Schedule of Effec
Income Taxes (Schedule of Effective Tax Rate) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Oct. 04, 2019 | Sep. 28, 2018 | Oct. 04, 2019 | Sep. 28, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Income (loss) from continuing operations before income taxes | $ 55 | $ (32) | $ 140 | $ (128) |
Income tax expense | $ 20 | $ 30 | $ 70 | $ 6 |
Effective tax rate (as a percent) | 36.00% | (94.00%) | 50.00% | (5.00%) |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Oct. 04, 2019 | Sep. 28, 2018 | Oct. 04, 2019 | Sep. 28, 2018 | |
Income Tax Contingency [Line Items] | ||||
Income tax expense | $ 20 | $ 30 | $ 70 | $ 6 |
Altera Corp. v. Commissioner | ||||
Income Tax Contingency [Line Items] | ||||
Income tax expense | $ 62 |
Income Taxes (Schedule of Unrec
Income Taxes (Schedule of Unrecognized Tax Benefits) (Details) $ in Millions | 6 Months Ended |
Oct. 04, 2019USD ($) | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |
Beginning balance | $ 446 |
Lapse of statute of limitations | (14) |
Increase related to prior period tax positions | 63 |
Increase related to current year tax positions | 31 |
Ending balance | $ 526 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 6 Months Ended | 12 Months Ended | ||
Oct. 04, 2019 | Sep. 28, 2018 | Mar. 29, 2019 | Aug. 06, 2019 | |
Class of Stock [Line Items] | ||||
Repurchases of common stock | $ 559 | $ 0 | ||
Remaining authorized repurchase amount | $ 1,600 | |||
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 | $ 1,600 |
Stockholders' Equity (Schedule
Stockholders' Equity (Schedule of Accumulated Other Comprehensive Income (Loss)) (Details) $ in Millions | 6 Months Ended |
Oct. 04, 2019USD ($) | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning balance | $ 5,738 |
Ending balance | 6,112 |
Total | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning balance | (7) |
Other comprehensive income before reclassifications | 5 |
Ending balance | (2) |
Foreign Currency Translation Adjustments | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning balance | (5) |
Other comprehensive income before reclassifications | 2 |
Ending balance | (3) |
Unrealized Gain (Loss) on Available-For-Sale Securities | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning balance | (1) |
Other comprehensive income before reclassifications | 2 |
Ending balance | 1 |
Equity Method Investee | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning balance | (1) |
Other comprehensive income before reclassifications | 1 |
Ending balance | $ 0 |
Employee Equity Incentive Pla_3
Employee Equity Incentive Plans (Schedule of Stock-Based Compensation Expense Recognized in our Condensed Consolidated Statements of Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Oct. 04, 2019 | Sep. 28, 2018 | Oct. 04, 2019 | Sep. 28, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | $ 70 | $ 97 | $ 150 | $ 210 |
Income tax benefit for stock-based compensation expense | (14) | (21) | (29) | (47) |
Continuing operations | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 29 | 38 | 55 | 88 |
Discontinued operations | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 41 | 59 | 95 | 122 |
Cost of revenues | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 1 | 1 | 1 | 3 |
Sales and marketing | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 6 | 11 | 13 | 22 |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 8 | 8 | 15 | 16 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | $ 14 | $ 18 | $ 26 | $ 47 |
Employee Equity Incentive Pla_4
Employee Equity Incentive Plans (Information Related to Stock-baed Compensation) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 6 Months Ended | ||
Oct. 04, 2019 | Sep. 28, 2018 | Mar. 29, 2019 | |
Restricted stock units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average fair value per grant (in usd per share) | $ 19.50 | $ 21.65 | |
Awards granted (in shares) | 12 | 12 | |
Total fair value of awards released | $ 199 | $ 195 | |
Outstanding and unvested (in shares) | 20 | 21 | |
Performance-based restricted stock units (PRUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average fair value per grant (in usd per share) | $ 19.21 | $ 21.23 | |
Awards granted (in shares) | 2 | 2 | |
Total fair value of awards released | $ 28 | $ 8 | |
Outstanding and unvested (in shares) | 3 | 5 | |
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 | $ 113 | $ 11 | |
Outstanding (in shares) | 6 | 13 | |
Exercisable (in shares) | 4 | 12 | |
Restricted stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding and unvested (in shares) | 0 | 1 | |
Liability-Classified Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Released shares (in shares) | 1 | ||
Unrecognized stock-based compensation costs related to our unvested stock-based awards | $ 446 | ||
Unrecognized stock-based compensation costs, estimated weighted-average amortization period | 1 year 10 months 24 days | ||
Liability-Classified Awards | Accrued compensation and benefits | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Liability current | $ 6 | $ 22 |
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 | 6 Months Ended | |||
Oct. 04, 2019 | Sep. 28, 2018 | Oct. 04, 2019 | Sep. 28, 2018 | ||
Earnings Per Share [Abstract] | |||||
Income (loss) from continuing operations | $ 35 | $ (62) | $ 70 | $ (134) | |
Income from discontinued operations, net of taxes | 750 | 54 | 741 | 66 | |
Net income (loss) | $ 785 | $ (8) | $ 811 | $ (68) | |
Income (loss) per share - basic: | |||||
Continuing operations (in dollars per share) | $ 0.06 | $ (0.10) | $ 0.11 | $ (0.21) | |
Discontinued operations (in dollars per share) | 1.21 | 0.09 | 1.20 | 0.11 | |
Net income (loss) per share - basic (in dollars per share) | [1] | 1.27 | (0.01) | 1.31 | (0.11) |
Income (loss) per share - diluted: | |||||
Continuing operations (in dollars per share) | 0.05 | (0.10) | 0.11 | (0.21) | |
Discontinued operations (in dollars per share) | 1.16 | 0.09 | 1.15 | 0.11 | |
Net income (loss) per share - diluted (in dollars per share) | [1] | $ 1.22 | $ (0.01) | $ 1.26 | $ (0.11) |
Weighted-average shares outstanding - basic | 620 | 630 | 619 | 627 | |
Dilutive potentially issuable shares - convertible debt | 16 | 0 | 13 | 0 | |
Dilutive potentially issuable shares - employee equity awards | 8 | 0 | 11 | 0 | |
Weighted-average shares outstanding - diluted | 644 | 630 | 643 | 627 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Anti-dilutive shares excluded from diluted net income per share calculation (in shares) | 2 | 141 | 3 | 141 | |
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 | 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) | 2 | 50 | 3 | 50 | |
[1] | Net income per share amounts may not add due to rounding. |
Net Income Per Share (Narrative
Net Income Per Share (Narrative) (Details) - Convertible Debt | Oct. 04, 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 | 2 Months Ended | 3 Months Ended | 4 Months Ended | 6 Months Ended | ||
Oct. 04, 2019segment | Oct. 04, 2019USD ($) | Sep. 28, 2018USD ($) | Aug. 07, 2019segment | Oct. 04, 2019USD ($) | Sep. 28, 2018USD ($) | |
Segment Reporting [Abstract] | ||||||
Number of reportable segments | segment | 1 | 2 | ||||
Segment Reporting Information [Line Items] | ||||||
Revenues | $ 608 | $ 612 | $ 1,258 | $ 1,224 | ||
U.S. | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | $ 427 | $ 425 | $ 883 | $ 842 |
Segment and Geographical Info_4
Segment and Geographical Information (Schedule of Product Revenue Information) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Oct. 04, 2019 | Sep. 28, 2018 | Oct. 04, 2019 | Sep. 28, 2018 | |
Segment Reporting Information [Line Items] | ||||
Net revenues | $ 608 | $ 612 | $ 1,258 | $ 1,224 |
Consumer security | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 358 | 368 | 739 | 737 |
Identity and information protection | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 237 | 233 | 492 | 464 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | $ 13 | $ 11 | $ 27 | $ 23 |
Segment and Geographical Info_5
Segment and Geographical Information (Schedule of Revenue by Geographical Location) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Oct. 04, 2019 | Sep. 28, 2018 | Oct. 04, 2019 | Sep. 28, 2018 | |
Revenue from External Customer [Line Items] | ||||
Net revenues | $ 608 | $ 612 | $ 1,258 | $ 1,224 |
Americas | ||||
Revenue from External Customer [Line Items] | ||||
Net revenues | 447 | 447 | 926 | 884 |
EMEA | ||||
Revenue from External Customer [Line Items] | ||||
Net revenues | 92 | 96 | 189 | 200 |
APJ | ||||
Revenue from External Customer [Line Items] | ||||
Net revenues | 69 | 69 | 143 | 140 |
U.S. | ||||
Revenue from External Customer [Line Items] | ||||
Net revenues | $ 427 | $ 425 | $ 883 | $ 842 |
Segment and Geographical Info_6
Segment and Geographical Information (Schedule of Long-lived Assets by Geographic Location) (Details) - USD ($) $ in Millions | Oct. 04, 2019 | Mar. 29, 2019 |
Revenue from External Customer [Line Items] | ||
Total cash, cash equivalent and short-term investments | $ 1,831 | $ 2,043 |
Total property and equipment, net | 676 | 718 |
Total operating lease assets | 154 | |
U.S. | ||
Revenue from External Customer [Line Items] | ||
Total cash, cash equivalent and short-term investments | 1,429 | 1,544 |
Total property and equipment, net | 565 | 606 |
Total operating lease assets | 77 | |
International | ||
Revenue from External Customer [Line Items] | ||
Total cash, cash equivalent and short-term investments | 402 | 499 |
Total property and equipment, net | 111 | $ 112 |
Total operating lease assets | $ 77 |
Segment and Geographical Info_7
Segment and Geographical Information (Schedule of Revenue by Major Customers) (Details) - Accounts Receivable - Customer Concentration Risk | 6 Months Ended | 12 Months Ended |
Oct. 04, 2019 | Mar. 29, 2019 | |
Customer A | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk, percentage | 13.00% | 16.00% |
Customer B | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk, percentage | 13.00% | 15.00% |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 69 Months Ended | |||
Oct. 04, 2019 | Sep. 28, 2018 | Oct. 04, 2019 | Sep. 28, 2018 | Sep. 30, 2012 | Jan. 31, 2014 | |
Loss Contingencies [Line Items] | ||||||
Purchase Obligation | $ 983 | $ 983 | ||||
Transition tax on untaxed foreign earnings | 703 | 703 | ||||
Net revenues | 608 | $ 612 | 1,258 | $ 1,224 | ||
GSA Schedule Contract | ||||||
Loss Contingencies [Line Items] | ||||||
Net revenues | $ 222 | |||||
GSA initial analysis of damage exposure | $ 145 | |||||
GSA Schedule Contract | Minimum | ||||||
Loss Contingencies [Line Items] | ||||||
Estimated loss | $ 25 | $ 25 |
Subsequent Events (Details)
Subsequent Events (Details) | Nov. 07, 2019$ / shares | Nov. 05, 2019USD ($)employees | Nov. 04, 2019USD ($) | Nov. 04, 2019USD ($) | Oct. 16, 2019USD ($) | Oct. 04, 2019$ / shares | Sep. 28, 2018$ / shares | Oct. 04, 2019$ / shares | Sep. 28, 2018$ / shares | Aug. 08, 2019USD ($) |
Subsequent Event [Line Items] | ||||||||||
Cash dividend (in dollars per share) | $ / shares | $ 0.075 | $ 0.075 | $ 0.15 | $ 0.150 | ||||||
Subsequent Event | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Principal quarterly installment payment as percentage of aggregate principal amount | 1.25% | 1.25% | ||||||||
Subsequent Event | November 2019 Plan | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Reduction of workforce, number of employees | employees | 3,100 | |||||||||
Expected cost of restructuring | $ 800,000,000 | |||||||||
Restructuring completion period | 12 months | |||||||||
Subsequent Event | Employee Severance | November 2019 Plan | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Expected cost of restructuring | $ 350,000,000 | |||||||||
Common Stock | Subsequent Event | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Cash dividend (in dollars per share) | $ / shares | $ 0.125 | |||||||||
Revolving Credit Facility | Subsequent Event | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Maximum borrowing capacity, revolving line of credit | $ 1,000,000,000 | $ 1,000,000,000 | ||||||||
Revolving Credit Facility | Minimum | Subsequent Event | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Line of credit facility, commitment fee percentage | 0.125% | |||||||||
Debt covenant, aggregate acquisition amount benchmark | $ 250,000,000 | $ 250,000,000 | ||||||||
Revolving Credit Facility | Maximum | Subsequent Event | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Line of credit facility, commitment fee percentage | 0.30% | |||||||||
Debt covenant, consolidated leverage ratio | 5.25 | 5.25 | ||||||||
Debt covenant, consolidated leverage ratio if acquisition incurred | 5.75 | 5.75 | ||||||||
Revolving Credit Facility | Base Rate | Minimum | Subsequent Event | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate | 0.75% | |||||||||
Revolving Credit Facility | Base Rate | Maximum | Subsequent Event | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate | 0.125% | |||||||||
Revolving Credit Facility | LIBOR | Minimum | Subsequent Event | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate | 1.75% | |||||||||
Revolving Credit Facility | LIBOR | Maximum | Subsequent Event | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate | 1.125% | |||||||||
5-year term loan | Subsequent Event | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Debt instrument term | 5 years | |||||||||
Debt face amount | $ 500,000,000 | $ 500,000,000 | ||||||||
Delayed 5-year term loan | Subsequent Event | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Debt instrument term | 5 years | |||||||||
Debt face amount | 750,000,000 | $ 750,000,000 | ||||||||
Enterprise Security | Discontinued Operations, Disposed of by Sale | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Consideration from sale of discontinued operations | $ 10,700,000,000 | |||||||||
Enterprise Security | Discontinued Operations, Disposed of by Sale | Subsequent Event | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Consideration from sale of discontinued operations | $ 10,700,000,000 | $ 10,700,000,000 | ||||||||
Transition services agreement, term | 6 months | |||||||||
Enterprise Security | Discontinued Operations, Disposed of by Sale | Minimum | Subsequent Event | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Anticipated cost associated with disposal of discontinued operations | $ 35,000,000 | |||||||||
Taxes payment associated with disposal of discontinued operations | 2,200,000,000 | |||||||||
Expected gain on disposal of discontinued operation | 2,000,000,000 | |||||||||
Enterprise Security | Discontinued Operations, Disposed of by Sale | Maximum | Subsequent Event | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Anticipated cost associated with disposal of discontinued operations | 40,000,000 | |||||||||
Taxes payment associated with disposal of discontinued operations | 2,600,000,000 | |||||||||
Expected gain on disposal of discontinued operation | $ 3,000,000,000 | |||||||||
DigiCert | Subsequent Event | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Proceeds from sale of equity method investments | $ 378,000,000 | |||||||||
Expected income tax payments from sale of equity method investments | 55,000,000 | |||||||||
DigiCert | Minimum | Subsequent Event | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Expected gain from sale of equity method investment | 310,000,000 | |||||||||
DigiCert | Maximum | Subsequent Event | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Expected gain from sale of equity method investment | $ 320,000,000 |
Uncategorized Items - symc10419
Label | Element | Value |
Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 939,000,000 |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 939,000,000 |