Cover
Cover - USD ($) | 12 Months Ended | ||
Apr. 01, 2022 | May 19, 2022 | Oct. 01, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Apr. 1, 2022 | ||
Current Fiscal Year End Date | --04-01 | ||
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 | ||
Title of 12(b) Security | Common Stock, | ||
Trading Symbol | NLOK | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 9,832,405,362 | ||
Entity Common Stock, Shares Outstanding | 580,064,068 | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive proxy statement for the 2022 annual meeting of stockholders are incorporated herein by reference into Part III of this Annual Report on Form 10-K where indicated. Such Proxy Statement will be filed with the Securities and Exchange Commission within 120 days of the registrant’s fiscal year ended April 1, 2022. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000849399 |
Audit Information
Audit Information | 12 Months Ended |
Apr. 01, 2022 | |
Audit Information [Abstract] | |
Auditor Name | KPMG, LLC |
Auditor Location | Santa Clara, CA |
Auditor Firm ID | 185 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Apr. 01, 2022 | Apr. 02, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 1,887 | $ 933 |
Short-term investments | 4 | 18 |
Accounts receivable, net | 120 | 117 |
Other current assets | 193 | 237 |
Assets held for sale | 56 | 233 |
Total current assets | 2,260 | 1,538 |
Property and equipment, net | 60 | 78 |
Operating lease assets | 74 | 76 |
Intangible assets, net | 1,023 | 1,116 |
Goodwill | 2,873 | 2,867 |
Other long-term assets | 653 | 686 |
Total assets | 6,943 | 6,361 |
Current liabilities: | ||
Accounts payable | 63 | 52 |
Accrued compensation and benefits | 81 | 107 |
Current portion of long-term debt | 1,000 | 313 |
Contract liabilities | 1,264 | 1,210 |
Current operating lease liabilities | 18 | 26 |
Other current liabilities | 639 | 428 |
Total current liabilities | 3,065 | 2,136 |
Long-term debt | 2,736 | 3,288 |
Long-term contract liabilities | 42 | 55 |
Deferred income tax liabilities | 75 | 137 |
Long-term income taxes payable | 996 | 1,119 |
Long-term operating lease liabilities | 75 | 66 |
Other long-term liabilities | 47 | 60 |
Total liabilities | 7,036 | 6,861 |
Commitments and contingencies (Note 18) | ||
Stockholders’ equity (deficit): | ||
Common stock and additional paid-in capital, $0.01 par value: 3,000 shares authorized; 582 and 580 shares issued and outstanding as of April 1, 2022 and April 2, 2021, respectively | 1,851 | 2,229 |
Accumulated other comprehensive income | (4) | 47 |
Retained earnings (accumulated deficit) | (1,940) | (2,776) |
Total stockholders’ equity (deficit) | (93) | (500) |
Total liabilities and stockholders’ equity (deficit) | $ 6,943 | $ 6,361 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Apr. 01, 2022 | Apr. 02, 2021 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 3,000,000,000 | 3,000,000,000 |
Common stock, shares issued (in shares) | 582,000,000 | 580,000,000 |
Common stock, shares outstanding (in shares) | 582,000,000 | 580,000,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Apr. 01, 2022 | Apr. 02, 2021 | Apr. 03, 2020 | |
Income Statement [Abstract] | |||
Net revenues | $ 2,796 | $ 2,551 | $ 2,490 |
Cost of revenues | 408 | 362 | 393 |
Gross profit | 2,388 | 2,189 | 2,097 |
Operating expenses: | |||
Sales and marketing | 622 | 576 | 701 |
Research and development | 253 | 267 | 328 |
General and administrative | 392 | 215 | 368 |
Amortization of intangible assets | 85 | 74 | 79 |
Restructuring and other costs | 31 | 161 | 266 |
Total operating expenses | 1,383 | 1,293 | 1,742 |
Operating income (loss) | 1,005 | 896 | 355 |
Interest expense | (126) | (144) | (196) |
Other income (expense), net | 163 | 120 | 660 |
Income (loss) from continuing operations before income taxes | 1,042 | 872 | 819 |
Income tax expense (benefit) | 206 | 176 | 241 |
Income (loss) from continuing operations | 836 | 696 | 578 |
Income (loss) from discontinued operations | 0 | (142) | 3,309 |
Net income (loss) | $ 836 | $ 554 | $ 3,887 |
Income (loss) per share - basic: | |||
Continuing operations (in usd per share) | $ 1.44 | $ 1.18 | $ 0.94 |
Discontinued operations (in usd per share) | 0 | (0.24) | 5.38 |
Net income per share - basic (in usd per share) | 1.44 | 0.94 | 6.32 |
Income (loss) per share - diluted: | |||
Continuing operations (in usd per share) | 1.41 | 1.16 | 0.90 |
Discontinued operations (in usd per share) | 0 | (0.24) | 5.15 |
Net income per share - diluted (in usd per share) | $ 1.41 | $ 0.92 | $ 6.05 |
Weighted-average shares outstanding: | |||
Basic (in shares) | 581 | 589 | 615 |
Diluted (in shares) | 591 | 600 | 643 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 01, 2022 | Apr. 02, 2021 | Apr. 03, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 836 | $ 554 | $ 3,887 |
Other comprehensive income (loss), net of taxes: | |||
Foreign currency translation adjustments | (51) | 63 | (11) |
Unrealized gain (loss) on available-for-sale securities | 0 | 0 | 1 |
Other comprehensive income (loss) from equity method investee | 0 | 0 | 1 |
Other comprehensive income (loss), net of taxes | (51) | 63 | (9) |
Comprehensive income | $ 785 | $ 617 | $ 3,878 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT) - USD ($) shares in Millions, $ in Millions | Total | Common Stock and Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings (Accumulated Deficit) |
Balance, beginning of year (in shares) at Mar. 29, 2019 | 630 | |||
Beginning balance at Mar. 29, 2019 | $ 5,738 | $ 4,812 | $ (7) | $ 933 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 3,887 | 3,887 | ||
Other comprehensive income (loss), net of taxes | (9) | (9) | ||
Common stock issued under employee stock incentive plans (in shares) | 32 | |||
Common stock issued under employee stock incentive plans | 123 | $ 123 | ||
Shares withheld for taxes related to vesting of restricted stock units (in shares) | (4) | |||
Shares withheld for taxes related to vesting of restricted stock units | (86) | $ (86) | ||
Repurchases of common stock (in shares) | (69) | |||
Repurchases of common stock | (1,563) | $ (902) | (661) | |
Cash dividends declared and dividend equivalents accrued | (7,565) | (76) | (7,489) | |
Stock-based compensation | 338 | 338 | ||
Short-swing profit disgorgement | 9 | 9 | ||
Exchange and extinguishment of convertible debt | (862) | $ (862) | ||
Balance, end of year (in shares) at Apr. 03, 2020 | 589 | |||
Ending balance at Apr. 03, 2020 | 10 | $ 3,356 | (16) | (3,330) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 554 | 554 | ||
Other comprehensive income (loss), net of taxes | 63 | 63 | ||
Common stock issued under employee stock incentive plans (in shares) | 8 | |||
Common stock issued under employee stock incentive plans | 24 | $ 24 | ||
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 | $ (49) | $ (49) | ||
Repurchases of common stock (in shares) | (68) | (15) | ||
Repurchases of common stock | $ (304) | $ (304) | ||
Cash dividends declared and dividend equivalents accrued | (301) | (301) | ||
Stock-based compensation | 81 | 81 | ||
Exchange and extinguishment of convertible debt | $ (578) | $ (578) | ||
Balance, end of year (in shares) at Apr. 02, 2021 | 580 | 580 | ||
Ending balance at Apr. 02, 2021 | $ (500) | $ 2,229 | 47 | (2,776) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 836 | 836 | ||
Other comprehensive income (loss), net of taxes | (51) | (51) | ||
Common stock issued under employee stock incentive plans (in shares) | 3 | |||
Common stock issued under employee stock incentive plans | 14 | $ 14 | ||
Shares withheld for taxes related to vesting of restricted stock units (in shares) | (1) | |||
Shares withheld for taxes related to vesting of restricted stock units | (16) | $ (16) | ||
Cash dividends declared and dividend equivalents accrued | (294) | (294) | ||
Stock-based compensation | 70 | 70 | ||
Exchange and extinguishment of convertible debt | $ (152) | $ (152) | ||
Balance, end of year (in shares) at Apr. 01, 2022 | 582 | 582 | ||
Ending balance at Apr. 01, 2022 | $ (93) | $ 1,851 | $ (4) | $ (1,940) |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT) (Parenthetical) - $ / shares | 12 Months Ended | ||
Apr. 01, 2022 | Apr. 02, 2021 | Apr. 03, 2020 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends declared per common share (in usd per share) | $ 0.50 | $ 0.50 | $ 12.40 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 01, 2022 | Apr. 02, 2021 | Apr. 03, 2020 | |
OPERATING ACTIVITIES: | |||
Net income | $ 836 | $ 554 | $ 3,887 |
Adjustments: | |||
Amortization and depreciation | 140 | 150 | 361 |
Impairments and write-offs of current and long-lived assets | 13 | 90 | 74 |
Stock-based compensation expense | 70 | 81 | 312 |
Deferred income taxes | (81) | 42 | 16 |
Loss (gain) on extinguishment of debt | 3 | (20) | 0 |
Loss from equity interest | 0 | 0 | 31 |
Gain on divestitures | 0 | 0 | (5,684) |
Gain on sale of equity method investment | 0 | 0 | (379) |
Gain on sale of property | (175) | (98) | 0 |
Non-cash operating lease expense | 20 | 22 | 40 |
Other | 1 | 52 | (4) |
Changes in operating assets and liabilities, net of acquisitions: | |||
Accounts receivable, net | (9) | 3 | 583 |
Accounts payable | 10 | (44) | (61) |
Accrued compensation and benefits | (26) | (10) | (117) |
Contract liabilities | 67 | 118 | (121) |
Income taxes payable | (78) | (299) | 383 |
Other assets | (7) | 144 | (81) |
Other liabilities | 190 | (79) | (101) |
Net cash provided by (used in) operating activities | 974 | 706 | (861) |
INVESTING ACTIVITIES: | |||
Purchases of property and equipment | (6) | (6) | (89) |
Payments for acquisitions, net of cash acquired | (39) | (344) | 0 |
Proceeds from divestitures, net of cash contributed and transaction costs | 0 | 0 | 10,918 |
Proceeds from the maturities and sales of short-term investments | 15 | 68 | 167 |
Proceeds from the sale of property | 355 | 218 | 0 |
Proceeds from sale of equity method investment | 0 | 0 | 380 |
Other | 1 | (5) | 3 |
Net cash provided by (used in) investing activities | 326 | (69) | 11,379 |
FINANCING ACTIVITIES: | |||
Repayments of debt and related equity component | (541) | (1,941) | (868) |
Proceeds from issuance of debt, net of issuance costs | 512 | 750 | 300 |
Net proceeds from sales of common stock under employee stock incentive plans | 14 | 24 | 123 |
Tax payments related to restricted stock units | (15) | (58) | (78) |
Dividends and dividend equivalents paid | (303) | (373) | (7,481) |
Repurchases of common stock | 0 | (304) | (1,581) |
Cash consideration paid in exchange of convertible debt | 0 | 0 | (546) |
Short-swing profit disgorgement | 0 | 0 | 9 |
Other | 0 | (1) | (1) |
Net cash provided by (used in) financing activities | (333) | (1,903) | (10,123) |
Effect of exchange rate fluctuations on cash and cash equivalents | (13) | 22 | (9) |
Change in cash and cash equivalents | 954 | (1,244) | 386 |
Beginning cash and cash equivalents | 933 | 2,177 | 1,791 |
Ending cash and cash equivalents | $ 1,887 | $ 933 | $ 2,177 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Apr. 01, 2022 | |
Accounting Policies [Abstract] | |
Description of Business and Summary of Significant Accounting Policies | Description of Business and Significant Accounting Policies Business NortonLifeLock, Inc. is a global, leading provider of consumer Cyber Safety solutions. Our portfolio provides protection across three Cyber Safety categories, including security, identity protection and online privacy. We help customers protect their computer and mobile devices from online threats, safeguard their identity and personal information and strengthen online privacy capabilities and functionalities. Basis of presentation The accompanying Consolidated Financial Statements of NortonLifeLock and our wholly-owned subsidiaries are prepared in conformity with generally accepted accounting principles in the United States (GAAP). All significant intercompany accounts and transactions have been eliminated in consolidation. Fiscal calendar We have a 52/53-week fiscal year ending on the Friday closest to March 31. Fiscal 2022, 2021 and 2020 in this report refers to fiscal years ended April 1, 2022, April 2, 2021, and April 3, 2020, respectively. Fiscal 2020 was a 53-week year, whereas fiscal 2022 and 2021 each consisted of 52 weeks. Use of estimates The preparation of Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and accompanying Notes. Such estimates include, but are not limited to, valuation of business combinations including acquired intangible assets and goodwill, loss contingencies, the recognition and measurement of current and deferred income taxes, including the measurement of uncertain tax positions, and valuation of assets and liabilities and results of operations of our discontinued operations. On an ongoing basis, management determines these estimates and assumptions based on historical experience and on various other assumptions that are believed to be reasonable. Third-party valuation specialists are also utilized for certain estimates. Actual results could differ from such estimates and assumptions due to risks and uncertainties, including uncertainty in the current economic environment due to the COVID-19 pandemic, and such differences may be material to the Consolidated Financial Statements. Significant Accounting Policies With the exception of those discussed in Note 2, there were no material changes in accounting pronouncements issued by the Financial Accounting Standards Board (FASB) that were applicable or adopted by us during fiscal 2022. Revenue recognition We sell products and services directly to end-users and packaged software products through a multi-tiered distribution channel. We recognize revenue when control of the promised products or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for such products or services. Performance periods are generally one year or less, and payments are generally collected up front. Revenue is recognized net of allowances for partner incentives and rebates, and any taxes collected from customers and subsequently remitted to governmental authorities. We offer various channel rebates for our products. Our estimated reserves for channel volume incentive rebates are based on distributors’ and resellers’ performance compared to the terms and conditions of volume incentive rebate programs, which are typically entered into quarterly. Our reserves for rebates are estimated based on the terms and conditions of the promotional program, actual sales during the promotion, the amount of redemptions received, historical redemption trends by product and by type of promotional program and the value of the rebate. We record estimated reserves for rebates as an offset to revenue or contract liabilities. Reserves for rebates, recorded in Other current liabilities, were $5 million and $6 million as of April 1, 2022 and April 2, 2021, respectively. For products that include content updates, rebates are recognized as a ratable offset to revenue or contract liabilities over the term of the subscription. Performance obligations At contract inception, we assess the products and services promised in the contract to identify each performance obligation and evaluate whether the performance obligations are capable of being distinct and are distinct within the context of the contract. Performance obligations that are not both capable of being distinct and are distinct within the context of the contract are combined and treated as a single performance obligation in determining the allocation and recognition of revenue. Our software solutions typically consist of a term-based subscription as well as when-and-if available software updates and upgrades. We have determined that our promises to transfer the software license subscription and the related support and maintenance are not separately identifiable because: • the licensed software and the software updates and upgrades are highly interdependent and highly interrelated, working together to deliver continuously updated protection to customers; • by identifying and addressing new threats, the software updates and upgrades significantly modify the licensed software and are integral to maintaining its utility; and • given the rapid pace with which new threats are identified, the value of the licensed software diminishes rapidly without the software updates and upgrades. We therefore consider the software license and related support obligations a single, combined performance obligation with revenue recognized over time as our solutions are delivered. Fair value measurements For assets and liabilities 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: Cash equivalents . We consider all highly liquid investments with an original maturity of three months or less at the time of purchase to be cash equivalents. Cash equivalents are carried at amounts that approximate fair value due to the short period of time to maturity. Short-term investments . Short-term investments consist primarily of corporate bonds. They are classified as available-for-sale and recognized at fair value using Level 1 and Level 2 inputs, which are quoted using market prices, independent pricing vendors or other sources, to determine the fair value. Unrealized gains and losses, net of tax, are included in Accumulated other comprehensive income (AOCI). We regularly review our investment portfolio to identify and evaluate investments that have indications of impairment. Available-for-sale debt securities with an amortized cost basis in excess of estimated fair value are assessed to determine what amount of that difference, if any, is caused by expected credit losses. Factors considered in determining if a credit loss exists include: the extent to which the fair value has been lower than the cost basis, any changes to the rating of the security by a rating agency and any adverse financial conditions specifically related to the security. Expected credit losses on available-for-sale debt securities are recognized in Other income (expense), net in our Consolidated Statements of Operations, and any remaining unrealized losses, net of taxes, are included in AOCI in our Consolidated Statements of Stockholders’ Equity (Deficit). Non-marketable investments Our non-marketable investments consist of equity investments in privately-held companies without a readily determinable fair value. We primarily measure these investments at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer. We may elect to measure certain investments at fair value, for which we utilize third-party valuation specialists at least annually in the fourth quarter of each fiscal year, or more frequently if events or changes in circumstances indicate a change in the fair value of the investment. Gains and losses on these investments, whether realized or unrealized, are recognized in Other income (expense), net in our Consolidated Statements of Operations. We assess the recoverability of our non-marketable investments by reviewing various indicators of impairment. If indicators are present, a fair value measurement is made by performing a discounted cash flow analysis of the investment. We immediately recognize the impairment to our non-marketable equity investments if the carrying value exceeds the fair value. For our equity method investment, if a decline in value is determined to be other than temporary, impairment is recognized and included in Other income (expense), net in our Consolidated Statements of Operations. Accounts receivable Accounts receivable are recorded at the invoiced amount and are not interest bearing. We maintain an allowance for doubtful accounts or expected credit losses to reserve for potentially uncollectible receivables. We review our accounts receivables by aging category to identify specific customers with known disputes or collectability issues. In addition, we maintain an allowance for all other receivables not included in the specific reserve by applying specific percentages of projected uncollectible receivables to the various aging categories. In determining these percentages, we use judgment based on our historical collection experience and current economic trends as well as reasonable and supportable forecasts of future economic conditions. Assets held for sale Long-lived assets held for sale are recorded as the lower of its carrying value or fair value less costs to sell. Fair value is determined based on discounted cash flows, appraised values or management’s estimates, depending upon the nature of the assets and external data available. Property and equipment Property, equipment, and leasehold improvements are stated at cost, net of accumulated depreciation. Depreciation is provided on a straight-line basis over the estimated useful lives. Estimated useful lives for financial reporting purposes are as follows: buildings, 20 to 30 years; building improvements, 7 to 20 years; leasehold improvements, the lesser of the life of the improvement or the initial lease term, and computer hardware and software and office furniture and equipment, 3 to 5 years. Software development costs The costs for the development of new software products and substantial enhancements to existing software products are expensed as incurred until technological feasibility has been established, at which time any additional costs would be capitalized in accordance with the accounting guidance for software. Because our current process for developing software is essentially completed concurrently with the establishment of technological feasibility, which occurs upon the completion of a working model, no costs have been capitalized for any of the periods presented. Internal-use software development costs We capitalize qualifying costs incurred during the application development stage related to software developed for internal-use and amortize them over the estimated useful life of 3 years. We expense costs incurred related to the planning and post-implementation phases of development as incurred. As of April 1, 2022 and April 2, 2021, capitalized costs, net of amortization, were $6 million and $9 million, respectively. Leases We determine if an arrangement is a lease at inception. We have elected to not recognize a lease liability or right-of-use (ROU) asset for short-term leases (leases with a term of twelve months or less that do not include an option to purchase the underlying asset). Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. The interest rate we use to determine the present value of future payments is our incremental borrowing rate because the rate implicit in our leases is not readily determinable. Our incremental borrowing rate is a hypothetical rate for collateralized borrowings in economic environments where the leased asset is located based on credit rating factors. Our operating lease assets also include adjustments for prepaid lease payments , lease incentives and initial direct costs . Certain lease contracts include obligations to pay for other services, such as operations and maintenance. We elected the practical expedient whereby we record all lease components and the related minimum non-lease components as a single lease component. Cash payments made for variable lease costs are not included in the measurement of our operating lease assets and liabilities. Many of our lease terms include one or more options to renew. We do not assume renewals in our determination of the lease term unless it is reasonably certain that we will exercise that option. Lease costs for minimum lease payments for operating leases are recognized on a straight-line basis over the lease term. Our lease agreements do not contain any residual value guarantees. Business combinations We use the acquisition method of accounting under the authoritative guidance on business combinations. We allocate the purchase price of our acquisitions to the assets acquired and liabilities assumed based on their estimated fair values. The excess of the purchase price over the fair values of these identifiable assets and liabilities is recorded as goodwill. Acquisition-related expenses are recognized separately from the business combination and are expensed as incurred. Each acquired company’s operating results are included in our Consolidated Financial Statements starting on the date of acquisition. Goodwill Goodwill is recorded when consideration paid for an acquisition exceeds the fair value of net tangible and intangible assets acquired. We perform an impairment assessment of goodwill at the reporting unit level at least annually in the fourth quarter of each fiscal year, or more frequently if events or changes in circumstances indicate that the asset may be impaired. The accounting guidance gives us the option to perform a qualitative assessment to determine whether further impairment testing is necessary. The qualitative assessment considers events and circumstances that might indicate that a reporting unit’s fair value is less than its carrying amount. If it is determined, as a result of the qualitative assessment, that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, a quantitative test is performed. In fiscal 2022, based on our qualitative assessments, we concluded that it is more likely than not that the fair values are more than their carrying values. Accordingly, there was no indication of impairment of goodwill, and further quantitative testing was not required. Long-lived assets In connection with our acquisitions, we generally recognize assets for customer relationships, developed technology, finite-lived trade names, patents and indefinite-lived trade names. Finite-lived intangible assets are carried at cost less accumulated amortization. Such amortization is provided on a straight-line basis over the estimated useful lives of the respective assets, generally from 1 to 8 years. Amortization for developed technology is recognized in cost of revenue. Amortization for customer relationships and certain trade names is recognized in operating expenses. Indefinite-lived intangible assets are not subject to amortization but instead tested for impairment annually or more frequently if events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Long-lived assets, including finite-lived intangible assets and property and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or group may not be recoverable. The evaluation is performed at the lowest level of identifiable cash flows independent of other assets. An impairment loss is recognized when estimated undiscounted future cash flows generated from the assets are less than their carrying amount. Measurement of an impairment loss is based on the excess of the carrying amount of the asset group over its fair value. In fiscal 2022, based on our qualitative assessments, we concluded that it is more likely than not that the fair values are more than their carrying values. Accordingly, there was no indication of impairment of long-lived assets, and further quantitative testing was not required. Contract liabilities Contract liabilities consist of deferred revenue and customer deposit liabilities and represent cash payments received or due in advance of fulfilling our performance obligations. Deferred revenue represents billings under non-cancelable contracts before the related product or service is transferred to the customer. Certain arrangements include terms that allow the customer to terminate the contract and receive a pro-rata refund for a period of time. In these arrangements, we have concluded there are no enforceable rights and obligations during the period in which the option to cancel is exercisable by the customer, and therefore the consideration received or due from the customer is recorded as a customer deposit liability. Debt Our debt includes senior unsecured notes, senior term loans, convertible senior notes and a senior unsecured revolving credit facility. Our senior unsecured notes are recorded at par value at issuance less a discount representing the amount by which the face value exceeds the fair value at the date of issuance and an amount which represents issuance costs. Our senior term loans are recorded at par value less debt issuance costs, which are recorded as a reduction in the carrying value of the debt. Our convertible senior notes are recorded at par value less the fair value of the equity component of the notes, at their issuance date, determined using Level 2 inputs and less any issuance costs. The discount and issuance costs associated with the various notes are amortized using the effective interest rate method over the term of the debt as a non-cash charge to interest expense. Borrowings under our revolving credit facility, if any, are recognized at principal balance plus accrued interest based upon stated interest rates. Debt maturities are classified as current liabilities on our Consolidated Balance Sheets if we are contractually obligated to repay them in the next twelve months or, prior to the balance sheet date, we have the authorization and intent to repay them prior to their contractual maturities and within the next twelve months. Treasury stock We account for treasury stock under the cost method. Shares repurchased under our share repurchase program are retired. Upon retirement, we allocate the value of treasury stock between Additional paid-in capital and Retained earnings. Restructuring Restructuring actions generally include significant actions involving employee-related severance charges, contract termination costs and assets write-offs. Employee-related severance charges are largely based upon substantive severance plans, while some charges result from mandated requirements in certain foreign jurisdictions. These charges are reflected in the period when both the actions are probable and the amounts are estimable. Contract termination costs reflect costs that will continue to be incurred under a contract for its remaining term without future economic benefit. These charges are reflected in the period when a contract is terminated. Asset impairments, including those related to ROU lease assets, are recognized in the period that an asset is decommissioned or a facility ceases to be used. Income taxes We compute the provision for income taxes using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax basis of assets and liabilities and for operating losses and tax credit carryforwards in each jurisdiction in which we operate. We measure deferred tax assets and liabilities using the currently enacted tax rates that apply to taxable income in effect for the years in which those tax assets are expected to be realized or settled. We also assess the likelihood that deferred tax assets will be realized from future taxable income and based on weighting positive and negative evidence, we will assess and determine the need for a valuation allowance, if required. The determination of our valuation allowance involves assumptions, judgments and estimates, including forecasted earnings, future taxable income and the relative proportions of revenue and income before taxes in the various domestic and international jurisdictions in which we operate. To the extent we establish a valuation allowance or change the valuation allowance in a period, we reflect the change with a corresponding increase or decrease to our tax expense. We record accruals for uncertain tax positions when we believe that it is not more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. We adjust these accruals when facts and circumstances change, such as the closing of a tax audit or the refinement of an estimate. The provision for income taxes includes the effects of adjustments for uncertain tax positions as well as any related interest and penalties. Stock-based compensation We measure and recognize stock-based compensation for all stock-based awards, including restricted stock units (RSU), performance-based restricted stock units (PRU), stock options and rights to purchase shares under our employee stock purchase plan (ESPP), based on their estimated fair value on the grant date. We recognize the costs in our Consolidated Financial Statements on a straight-line basis over the award’s requisite service period except for PRUs with graded vesting, for which we recognize the costs on a graded basis. For awards with performance conditions, the amount of compensation cost we recognize over the requisite service period is based on the actual or estimated achievement of the performance condition. We estimate the number of stock-based awards that will be forfeited due to employee turnover. The fair value of each RSU and PRU that does not contain a market condition is equal to the market value of our common stock on the date of grant. The fair value of each PRU that contains a market condition is estimated using the Monte Carlo simulation model. The fair values of RSUs and PRUs are not discounted by the dividend yield because our RSUs and PRUs include dividend-equivalent rights. We use the Black-Scholes model to determine the fair value of stock options and the fair value of rights to acquire shares of common stock under our ESPP . The Black-Scholes valuation model incorporates a number of variables, including our expected stock price volatility over the expected life of the awards, actual and projected employee exercise and forfeiture behaviors, risk-free interest rates and expected dividends. Foreign currency For foreign subsidiaries whose functional currency is the local currency, assets and liabilities are translated to U.S. dollars at exchange rates in effect at the balance sheet date. Gains and losses resulting from translation of these foreign currency financial statements into U.S. dollars are recorded in AOCI. Remeasurement adjustments are recorded in Other income (expense), net in our Consolidated Statements of Operations. Concentrations of risk A significant portion of our revenue is derived from international sales. Fluctuations of the U.S. dollar against foreign currencies, changes in local regulatory or economic conditions, or piracy could adversely affect our operating results. Financial instruments that potentially subject us to concentrations of risk consist principally of cash and cash equivalents, short-term investments and trade accounts receivable. Our investment policy limits the amount of credit risk exposure to any one issuer and to any one country. A majority of our trade receivables are derived from sales to distributors and retailers. The credit risk in our trade accounts receivable is substantially mitigated by our credit evaluation process, reasonably short collection terms and the geographical dispersion of sales transactions. Customers which are distributors that accounted for over 10% of our net accounts receivable, are as follows: April 1, 2022 April 2, 2021 Customer A 41 % 46 % Customer B 13 % 9 % Advertising and other promotional costs Advertising and other promotional costs are charged to operations as incurred and included in sales and marketing expenses. These costs totaled $423 million, $353 million, and $343 million for fiscal 2022, 2021 and 2020, respectively. Contingencies |
Recent Accounting Standards
Recent Accounting Standards | 12 Months Ended |
Apr. 01, 2022 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recent Accounting Standards | Recent Accounting Standards Recently adopted authoritative guidance Income Taxes . In December 2019, the FASB issued new guidance that simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The guidance also clarifies and amends existing guidance to improve consistent application. On April 3, 2021, the first day of fiscal 2022, we adopted this guidance prospectively. The adoption of this guidance did not have a material impact on our Consolidated Financial Statements and disclosures. Business Combinations, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. In October 2021, the FASB issued new guidance which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers . Historically, such amounts were recognized by the acquirer at fair value in acquisition accounting. This new guidance results in the acquirer recognizing contract assets and contract liabilities at the same amounts recorded by the acquiree. On October 2, 2021, the first day of the third quarter of fiscal 2022, we elected to early adopt this guidance retrospectively for all acquisitions in fiscal 2022 and going forward. The adoption of this guidance did not have a material impact on our quarterly fiscal periods prior to adoption or our Consolidated Financial Statements and disclosures. Recently issued authoritative guidance not yet adopted Debt with Conversion and Other Options . In August 2020, the FASB issued new guidance that simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments. The new guidance removes from GAAP the separation models for convertible debt with embedded conversion features. As a result, after adopting the guidance, entities will no longer separately present embedded conversion features in equity. Instead, they will account for the convertible debt wholly as debt. The new guidance also requires use of the if-converted method when calculating the dilutive impact of convertible debt on earnings per share. The standard will be effective during our first quarter of fiscal 2023. It may be applied retrospectively to each prior period presented or retrospectively with cumulative effect recognized in retained earnings as of the date of adoption. We are currently evaluating the impact of the adoption of this guidance on our Consolidated Financial Statements and disclosures. Reference Rate Reform. In March 2020, the FASB issued new guidance providing temporary optional expedients and exceptions to ease the financial reporting burden of the expected market transition from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates, such as the Secured Overnight Financing Rate. The standard was effective upon issuance and may generally be applied through December 31, 2022, to any new or amended contracts, hedging relationships and other transactions that reference LIBOR. We continue to evaluate our contractual arrangements and hedging relationships that reference LIBOR. 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 Statements or disclosures. |
Divestitures, Discontinued Oper
Divestitures, Discontinued Operations and Assets Held for Sale | 12 Months Ended |
Apr. 01, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestitures, Discontinued Operations and Assets Held for Sale | Divestitures, Discontinued Operations and Assets Held for Sale Divestitures Enterprise Security assets On November 4, 2019, we completed the sale of certain of our Enterprise Security assets and certain liabilities to Broadcom Inc. (the Broadcom sale) for a purchase price of $10.7 billion. As a result of the sale, the majority of the results of our Enterprise Security business and certain related costs were classified as discontinued operations in our Consolidated Statements of Operations and thus excluded from both continuing operations and segment results for all periods presented. During fiscal 2020, we recognized a gain on sale of $5,434 million, which was included in Income (loss) from discontinued operations in our Consolidated Statements of Operations. Total net assets sold was $5,211 million, consisting of goodwill, net intangible assets and other assets of $7,121 million, net of contract and other liabilities of $1,910 million. During fiscal 2021, in connection with Broadcom sale, we recognized costs for severance and termination benefits as part of our November 2019 restructuring plan. These activities were completed during fiscal 2021. See Note 12 for information associated with our restructuring activities. On October 1, 2020, we entered into multiple agreements with Broadcom for an aggregate amount of $200 million. We licensed Broadcom’s enterprise software, multiple security engines and related telemetry for 5.6 years, which will be amortized to continuing operations over the term of the license. In addition, we resolved all outstanding payments and certain claims related to the asset purchase and transition services agreements, which were included in discontinued operations. In connection with the Broadcom sale, we entered into a transition services agreement under which we provided assistance to Broadcom including, but not limited to, business support services and information technology services. During fiscal 2021, the transition services were completed. Dedicated direct costs, net of charges to Broadcom, for these transition services were $9 million and $19 million during fiscal 2021 and 2020, respectively. These direct costs were presented as part of Other income (expense), net in the Consolidated Statements of Operations. ID Analytics solutions On January 31, 2020, we completed the sale of our ID Analytics solutions for $375 million in net cash proceeds. We recognized a gain on sale of $250 million, which was included in Other income (expense), net in our Consolidated Statements of Operations. Total net assets sold was $125 million, consisting of goodwill and net intangible assets of $114 million and net other assets, net of other liabilities, of $11 million. We incurred tax expense of $86 million related to the gain. Discontinued Operations The following table presents information regarding certain components of income (loss) from discontinued operations, net of income taxes during the years ended April 2, 2021 and April 3, 2020. There was no discontinued operations activity during the year ended April 1, 2022. Year Ended (In millions) April 2, 2021 April 3, 2020 Net revenues $ 1 $ 1,368 Gross profit $ 1 $ 1,035 Operating income (loss) $ (177) $ 4 Gain on sale $ — $ 5,434 Income (loss) before income taxes $ (176) $ 5,431 Income tax expense (benefit) $ (34) $ 2,122 Income (loss) from discontinued operations, net of taxes $ (142) $ 3,309 The following table presents significant non-cash items and capital expenditures of discontinued operations during the years ended April 2, 2021 and April 3, 2020. There was no discontinued operations activity during the year ended April 1, 2022. Year Ended (In millions) April 2, 2021 April 3, 2020 Amortization and depreciation $ — $ 130 Stock-based compensation expense $ 1 $ 172 Purchases of property and equipment $ — $ 43 Assets Held for Sale During fiscal 2020, we reclassified certain land and buildings previously reported as property and equipment to assets held for sale when the properties were approved for immediate sale in their present condition and the sale was expected to be completed within one year. As a result, we recognized an impairment of $24 million in fiscal 2020, which was included in restructuring costs, representing the difference between the estimated net sales price and the carrying value of one of our properties. On July 27, 2020, we completed the sale of our Culver City, California property, which was previously classified as held for sale during the first quarter of fiscal 2021, for cash consideration of $118 million, net of selling costs, and recognized a gain on sale of $35 million. On April 1, 2021, we completed the sale of certain land and buildings in Mountain View, California, which was previously classified as held for sale as of April 3, 2020, for cash consideration of $100 million, net of selling costs, and recognized a gain on sale of $63 million. On July 14, 2021, we completed the sale of certain land and buildings in Mountain View, California for cash consideration of $355 million, net of selling costs. We recognized a gain of $175 million on the sale. In conjunction with the sale, we signed a 7-year leaseback agreement for a portion of the property. See Note 9 for further information related to the sale leaseback. We continue to actively market the remaining properties for sale; however, during fiscal 2022, the commercial real estate market continues to be adversely affected by the COVID-19 pandemic, which delayed the expected timing of sale. As of April 1, 2022, these assets are classified as assets held for sale. We have taken into consideration the current real estate values and demand and continue to execute plans to sell these properties. As a result, we recognized an impairment of $2 million, which was included in restructuring costs, representing the difference between the estimated net sales price and the carrying value of one of our properties. During fiscal 2022, there were no other impairments because the fair value of the other properties less costs to sell either equals or exceeds their carrying value. |
Business Combinations
Business Combinations | 12 Months Ended |
Apr. 01, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combinations | Business Combinations Proposed Merger with Avast On August 10, 2021, we announced a transaction under which we intend to acquire the entire issued and to be issued ordinary share capital of Avast plc, a public company incorporated in England and Wales and a global leader of digital security and privacy headquartered in Prague, Czech Republic (Avast and such transaction, the Proposed Merger). The Proposed Merger will be implemented by means of a court-sanctioned scheme of arrangement under the UK Companies Act 2006, as amended (the Scheme), and remains subject to a certain number of conditions. Under the terms of the Proposed Merger, Avast shareholders will be entitled to elect to receive, for each ordinary share of Avast held, in respect of their entire holding of Avast shares, either: (i) $7.61 in cash and 0.0302 of a new share of our common stock (such option, the Majority Cash Option); or (ii) $2.37 in cash and 0.1937 of a new share of our common stock (such option, the Majority Stock Option). Based on our undisturbed closing share price of $27.20 on July 13, 2021, and depending on the Avast shareholder elections, the estimated purchase price range for the Avast shares under the Proposed Merger is $8.1 billion to $8.6 billion. Each of the directors of Avast who holds shares has undertaken to elect for the Majority Stock Option in respect of their entire beneficial holdings of Avast shares. We plan to finance the Proposed Merger with existing cash, cash to be generated by operations and new debt financing. In conjunction with the Proposed Merger, on August 10, 2021, we entered into an agreement (as amended, the Interim Facilities Agreement) with certain financial institutions, in which they agreed to provide us with (i) a $3,600 million term loan interim facility B (the Interim Facility B), (ii) $750 million term loan interim facility A1 (the Interim Facility A1) and $3,500 million term loan interim facility A2 (the Interim Facility A2), and (iii) a $1,500 million interim revolving facility (the Interim Revolving Facility) (collectively, the Interim Facilities) and a commitment letter (as amended, the Commitment Letter) with certain financial institutions, in which they agreed to provide us with financing no less than the financing available under the Interim Facilities (the Definitive Facilities and, together with the Interim Facilities, the Facilities) to finance the cash consideration payable in connection with the Proposed Merger. The Definitive Facilities will be financed by a syndicate of lenders led by Bank of America, N.A. and Wells Fargo Bank N.A. On January 28, 2022, Bank of America N.A. and Wells Fargo Bank N.A. agreed to arrange, on a best efforts basis, additional term loans under the Definitive Facilities in an amount up to $500 million. The Interim Facilities Agreement contains, and any definitive financing documentation for the Definitive Facilities entered into in connection with the Commitment Letter (the Facilities Agreement) will contain, customary representations and warranties, events of default and covenants for transactions of this type. The Facilities Agreement will replace the existing credit facility agreement upon the close of the transaction. In conjunction with the Proposed Merger, on August 10, 2021, we entered into a Co-operation Agreement (the Co-operation Agreement) with Nitro Bidco Limited, our wholly-owned subsidiary (Bidco), and Avast, pursuant to which we and Bidco agreed to, among other things, use all reasonable endeavors for the purposes of obtaining any regulatory authorizations which are required to implement the Proposed Merger, and we, Bidco and Avast agreed to cooperate with each other in preparing required transaction documents and certain other matters in connection with the Proposed Merger. The Co-operation Agreement also contains certain termination rights. The Co-operation Agreement also provides that, subject to certain exceptions, if we fail to receive approval from the U.K Competition and Markets Authority and cannot consummate the Proposed Merger, we may be required to pay Avast a break fee of up to $200 million. The Proposed Merger was approved by our Board of Directors and by our shareholders, the Board of Directors and shareholders of Avast and regulators including the Federal Trade Commission under the U.S. Hart-Scott-Rodino Antitrust Improvements Act of 1976 (the “HSR” Act) and in Europe, the German Federal Cartel Office and the Spanish National Markets and Competition Commission. On March 25, 2022, the U.K Competition and Markets Authority referred the Proposed Merger to a Phase 2 review investigation. The Proposed Merger is currently expected to close mid-to-late calendar year 2022, subject to regulatory approvals and the satisfaction or waiver of other customary closing conditions. Fiscal 2022 acquisition On September 15, 2021, we completed an acquisition of an online reputation management and digital privacy solutions company for total aggregate consideration of $39 million, net of $1 million cash acquired. The purchase price was primarily allocated to intangible assets and goodwill during the year ended April 1, 2022. Fiscal 2021 acquisition On January 8, 2021, we completed our acquisition of Avira. Avira provides a consumer-focused portfolio of cybersecurity and privacy solutions primarily in Europe and key emerging markets. The total aggregate consideration for the acquisition was $344 million, net of $32 million cash acquired. Our final allocation of the aggregate purchase price for the acquisition as of January 8, 2021, is as follows: (In millions) January 8, 2021 Assets: Current assets $ 12 Intangible assets 162 Goodwill 261 Other long-term asset 21 Total assets acquired 456 Liabilities: Current liabilities 29 Contract liabilities 54 Other long-term obligations 29 Total liabilities assumed 112 Total purchase price $ 344 The allocation of the purchase price reflects adjustments during the year ended April 1, 2022. Our estimates and assumptions were subject to refinement within the measurement period, which was up to one year from the acquisition date. Adjustments to the purchase price during the measurement period required adjustments to be made to goodwill. The measurement period ended on January 7, 2022. |
Revenues
Revenues | 12 Months Ended |
Apr. 01, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Contract liabilities During fiscal 2022 and 2021, we recognized $1,187 million and $1,050 million of revenue, respectively, from the contract liabilities balance at the beginning of the respective fiscal years. 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 April 1, 2022, we had $785 million of remaining performance obligations, excluding customer deposit liabilities of $521 million, of which we expect to recognize approximately 94% as revenue over the next 12 months. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Apr. 01, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill The changes in the carrying amount of goodwill are as follows: (In millions) Balance as of April 3, 2020 $ 2,585 Acquisitions 269 Translation adjustments 13 Balance as of April 2, 2021 2,867 Acquisitions 25 Purchase accounting adjustments (7) Translation adjustments (12) Balance as of April 1, 2022 $ 2,873 Intangible assets, net April 1, 2022 April 2, 2021 (In millions) Gross Accumulated Net Gross Accumulated Net Customer relationships $ 583 $ (382) $ 201 $ 556 $ (299) $ 257 Developed technology 217 (143) 74 210 (104) 106 Other 8 (3) 5 7 (1) 6 Total finite-lived intangible assets 808 (528) 280 773 (404) 369 Indefinite-lived trade names 743 — 743 747 — 747 Total intangible assets $ 1,551 $ (528) $ 1,023 $ 1,520 $ (404) $ 1,116 Amortization expense for purchased intangible assets is summarized below: Year Ended Consolidated Statements of Operations Classification (In millions) April 1, 2022 April 2, 2021 April 3, 2020 Customer relationships and other $ 85 $ 74 $ 79 Operating expenses Developed technology 39 31 30 Cost of revenues Total $ 124 $ 105 $ 109 As of April 1, 2022, future amortization expense related to intangible assets that have finite lives is as follows by fiscal year: (In millions) April 1, 2022 2023 $ 105 2024 93 2025 32 2026 26 2027 12 Thereafter 12 Total $ 280 |
Supplementary Information
Supplementary Information | 12 Months Ended |
Apr. 01, 2022 | |
Supplementary Information [Abstract] | |
Supplementary Information | Supplementary Information Cash and cash equivalents: (In millions) April 1, 2022 April 2, 2021 Cash $ 609 $ 650 Cash equivalents 1,278 283 Total cash and cash equivalents $ 1,887 $ 933 Accounts receivable, net: (In millions) April 1, 2022 April 2, 2021 Accounts receivable $ 121 $ 118 Allowance for doubtful accounts (1) (1) Accounts receivable, net $ 120 $ 117 Other current assets: (In millions) April 1, 2022 April 2, 2021 Prepaid expenses $ 107 $ 95 Income tax receivable and prepaid income taxes 35 96 Other tax receivable 27 31 Other 24 15 Total other current assets $ 193 $ 237 Property and equipment, net: (In millions) April 1, 2022 April 2, 2021 Land $ 2 $ 3 Computer hardware and software 462 479 Office furniture and equipment 27 63 Buildings 27 29 Leasehold improvements 56 58 Construction in progress 1 1 Total property and equipment, gross 575 633 Accumulated depreciation and amortization (515) (555) Total property and equipment, net $ 60 $ 78 Depreciation and amortization expense of property and equipment was $16 million, $45 million, and $122 million in fiscal 2022, 2021 and 2020, respectively. Other long-term assets: (In millions) April 1, 2022 April 2, 2021 Non-marketable equity investments $ 178 $ 185 Long-term income tax receivable and prepaid income taxes 25 30 Deferred income tax assets 351 355 Long-term prepaid royalty 53 70 Other 46 46 Total other long-term assets $ 653 $ 686 Short-term contract liabilities: (In millions) April 1, 2022 April 2, 2021 Deferred revenue $ 743 $ 795 Customer deposit liabilities 521 415 Total short-term contract liabilities $ 1,264 $ 1,210 Other current liabilities: (In millions) April 1, 2022 April 2, 2021 Income taxes payable $ 109 $ 111 Other taxes payable 87 82 Accrued legal fees 273 66 Accrued royalties 49 46 Other accrued liabilities 121 123 Total other current liabilities $ 639 $ 428 Long-term income taxes payable: (In millions) April 1, 2022 April 2, 2021 Deemed repatriation tax payable $ 437 $ 525 Other long-term income taxes 3 29 Uncertain tax positions (including interest and penalties) 556 565 Total long-term income taxes payable $ 996 $ 1,119 Other income (expense), net: Year Ended (In millions) April 1, 2022 April 2, 2021 April 3, 2020 Interest income $ — $ 4 $ 80 Loss from equity interest — — (31) Foreign exchange gain (loss) (2) 1 (6) Gain on divestitures — — 250 Gain on sale of equity method investment — — 379 (Loss) gain on early extinguishment of debt (3) 20 — Gain on sale of properties 175 98 — Transition service expense, net — (9) (19) Other (7) 6 7 Total other income (expense), net $ 163 $ 120 $ 660 Supplemental cash flow information: Year Ended (In millions) April 1, 2022 April 2, 2021 April 3, 2020 Income taxes paid, net of refunds $ 356 $ 341 $ 1,985 Interest expense paid $ 120 $ 139 $ 179 Cash paid for amounts included in the measurement of operating lease liabilities $ 27 $ 34 $ 51 Non-cash operating activities: Operating lease assets obtained in exchange for operating lease liabilities $ 35 $ 34 $ 15 Reduction of operating lease assets as a result of lease terminations and modifications $ 17 $ 26 $ 34 Non-cash investing and financing activities: Purchases of property and equipment in current liabilities $ 1 $ — $ — Extinguishment of debt with borrowings from same creditors $ 494 $ — $ 1,073 |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 12 Months Ended |
Apr. 01, 2022 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments and Fair Value Measurements | Financial Instruments and Fair Value Measurements The following table summarizes our financial instruments measured at fair value on a recurring basis: April 1, 2022 April 2, 2021 (In millions) Fair Value Level 1 Level 2 Fair Value Level 1 Level 2 Assets: Money market funds $ 1,278 $ 1,278 $ — $ 284 $ 284 $ — Certificates of deposit — — — 1 — 1 Corporate bonds 4 — 4 17 — 17 Total $ 1,282 $ 1,278 $ 4 $ 302 $ 284 $ 18 The following table presents the contractual maturities of our investments in debt securities as of April 1, 2022: (In millions) Fair Value Due in one year or less $ 4 Total $ 4 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 April 1, 2022 and April 2, 2021, the carrying value of our non-marketable equity investments was $178 million and $185 million, respectively. Equity method investment Our investment in equity securities that was accounted for using the equity method was divested during fiscal 2020 and consisted of our equity investment in DigiCert. On October 16, 2019, Clearlake Capital Group, L.P, a private investment firm, and TA Associates, an investor of DigiCert and private equity firm, completed a joint investment in DigiCert. As a result, we sold our equity investment in DigiCert for $380 million in cash and recognized a gain on sale of $379 million in fiscal 2020. We recorded a loss from our equity interest of $31 million during fiscal 2020 in Other income (expense), net in our Consolidated Statements of Operations. This loss was reflected as a reduction in the carrying amount of our investment in equity interests in our Consolidated Balance Sheets. DigiCert’s results were reported on a three month lag prior to our divestiture of our investment. The following table summarizes DigiCert’s results of operations through October 16, 2019, the date of our investment sale. (In millions) Period from January 1, 2019 to October 16, 2019 (unaudited) Revenue $ 350 Gross profit $ 293 Net loss $ (102) Current and long-term debt As of April 1, 2022 and April 2, 2021, the total fair value of our current and long-term fixed rate debt was $2,021 million and $2,400 million, respectively. The fair value of our variable rate debt approximated their carrying value. The fair values of all our debt obligations were based on Level 2 inputs. |
Leases
Leases | 12 Months Ended |
Apr. 01, 2022 | |
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 8 years for our facilities, 1 year to 3 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. On July 14, 2021, we completed the sale of certain land and buildings in Mountain View, California for cash consideration of $355 million, net of selling costs. In conjunction with the sale, we signed a 7-year leaseback agreement for a portion of the property, with an option to extend the lease for an additional 5 years. The leaseback agreement is effective as of the date of sale. The sale transaction and immediate leaseback qualified as a completed sale and we recognized a gain of $175 million on the sale. The following summarizes our lease costs for fiscal 2022, 2021 and 2020: Year Ended (In millions) April 1, 2022 April 2, 2021 April 3, 2020 Operating lease costs $ 16 $ 17 $ 34 Short-term lease costs 2 4 8 Variable lease costs 6 6 21 Total lease costs $ 24 $ 27 $ 63 Other information related to our operating leases for fiscal 2022, 2021 and 2020 was as follows: Year Ended April 1, 2022 April 2, 2021 April 3, 2020 Weighted-average remaining lease term 4.7 years 4.4 years 4.5 years Weighted-average discount rate 4.04 % 4.07 % 4.05 % See Note 7 for cash flow information related to our operating leases. As of April 1, 2022, the maturities of our lease liabilities by fiscal year are as follows: (In millions) 2023 $ 22 2024 26 2025 21 2026 15 2027 15 Thereafter 3 Total lease payments 102 Less: Imputed interest (9) Present value of lease liabilities $ 93 |
Debt
Debt | 12 Months Ended |
Apr. 01, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following table summarizes components of our debt: April 1, 2022 April 2, 2021 (In millions, except percentages) Amount Effective Amount Effective New 2.50% Convertible Senior Notes due April 1, 2022 $ — 2.63 % $ 250 2.63 % 3.95% Senior Notes due June 15, 2022 400 4.05 % 400 4.05 % New 2.00% Convertible Unsecured Notes due August 15, 2022 525 2.62 % 625 2.62 % 5.0% Senior Notes due April 15, 2025 1,100 5.00 % 1,100 5.00 % Initial Term Loan due May 7, 2026 1,010 LIBOR plus (1) 494 LIBOR plus (1) Delayed Term Loan due May 7, 2026 703 LIBOR plus (1) 741 LIBOR plus (1) 0.95% Avira Mortgage due December 30, 2030 4 0.95 % 5 0.95 % 1.29% Avira Mortgage due December 30, 2029 5 1.29 % 5 1.29 % Total principal amount 3,747 3,620 Less: unamortized discount and issuance costs (11) (19) Total debt 3,736 3,601 Less: current portion (1,000) (313) Total long-term portion $ 2,736 $ 3,288 (1) The term loans bear interest at a rate equal to the LIBOR plus a margin based on the current debt rating of our non-credit-enhanced, senior unsecured long-term debt, and our underlying loan agreements. The interest rates for the outstanding term loans are as follows: April 1, 2022 April 2, 2021 Initial Term Loan due May 7, 2026 1.75 % 1.50 % Delayed Term Loan due May 7, 2026 1.75 % 1.50 % As of April 1, 2022, the future contractual maturities of debt by fiscal year are as follows: (In millions) 2023 $ 1,001 2024 89 2025 89 2026 1,189 2027 1,376 Thereafter 3 Total future maturities of debt $ 3,747 Credit Facility On November 4, 2019, we entered into a credit agreement with financial institutions, which provides a revolving line of credit of $1 billion, a 5-year term loan of $500 million (the Initial Term Loan), and a delayed draw 5-year term loan commitment of $750 million (the Delayed Draw Term Loan). On September 14, 2020, we drew $750 million on the Delayed Draw Term Loan. On May 7, 2021, we entered into the first amendment to the credit agreement with financial institutions (the First Amendment), which extends the maturity of all term loan and revolver credit facilities from November 2024 to May 2026. The First Amendment also provided for an incremental increase under the Initial Term Loan of $525 million. This transaction was accounted for as a debt extinguishment of the Initial Term Loan and resulted in accelerated recognition of interest expense for unamortized debt issuance costs, which was immaterial. At the closing of the First Amendment, we did not borrow any funds under the revolving line of credit and fully borrowed the First Amendment under the Initial Term Loan, such that loans in an aggregate principal amount of $1,741 million were outstanding. The credit facilities remain senior secured. The principal amount of the Initial Term Loan and the additional borrowings under the First Amendment must be repaid in quarterly installments on the last business day of each calendar quarter commencing with the quarter ended September 30, 2022 in an amount equal to 1.25% of the aggregate principal amount, as of the date of the first amendment. The principal amount of the Delayed Draw Term Loan must be repaid in quarterly installments on the last business day of each calendar quarter commencing with the later of (i) the quarter ended March 31, 2021 and (ii) the first full fiscal quarter ended following the Borrowing of the Delayed Draw Term Loans in an amount equal to 1.25% of aggregate principal amount that are outstanding immediately after the borrowing of the Delayed Draw Term Loan. We may voluntarily repay outstanding principal balances without penalty. As of April 1, 2022, there were no borrowings outstanding under our revolving credit facilities. Interest on borrowings under the credit agreement can be based on a base rate or a 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, as adjusted for statutory reserves, 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 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 indebtedness, liens, investments, stock repurchases, and dividends (with exceptions permitting our regular quarterly dividend and other specific capital returns). As of April 1, 2022, we were in compliance with all debt covenants. Interim Facilities On August 10, 2021, in conjunction with the Proposed Merger, we entered into the Interim Facilities Agreement with certain financial institutions, in which they agreed to provide us with (i) a 7-year term loan interim facility B of $3,600 million (the Interim Facility B), (ii) a 60-day term loan interim facility A1 of $750 million (the Interim Facility A1) and 5-year term loan interim facility A2 of $3,500 million (the Interim Facility A2), and (iii) a 5-year interim revolving facility of $1,500 million (the Interim Revolving Facility) (collectively, the Interim Facilities) and a commitment letter (as amended, the Commitment Letter) with certain financial institutions, in which they agreed to provide us with financing no less than the financing available under the Interim Facilities (the Definitive Facilities and, together with the Interim Facilities, the Facilities) to finance the cash consideration payable in connection with the Proposed Merger. The Definitive Facilities will be financed by a syndicate of lenders led by Bank of America, N.A. and Wells Fargo Bank N.A. On January 28, 2022, Bank of America N.A. and Wells Fargo Bank N.A. agreed to arrange, on a best efforts basis, additional term loans under the Definitive Facilities in an amount up to $500 million. The Interim Facilities Agreement contains, and any definitive financing documentation for the Definitive Facilities entered into in connection with the Commitment Letter (the Facilities Agreement) will contain, customary representations and warranties, events of default and covenants for transactions of this type. The Facilities Agreement will replace the existing credit facility agreement upon the close of the transaction. Senior Notes On February 9, 2017, we issued $1.1 billion aggregate principal amount of our 5.0% Senior Notes due April 15, 2025 (the 5.0% Senior Notes). The 5.0% Senior Notes bear interest at a rate of 5.00% per year, payable semiannually in arrears on April 15 and October 15 of each year, beginning on October 15, 2017. On or after April 15, 2020, we may redeem some or all of the 5.0% Senior Notes at the applicable redemption prices set forth in the supplemental indenture, plus accrued and unpaid interest. In addition, we had two series of senior notes, the 4.2% Senior Notes and 3.95% Senior Notes, that are senior unsecured obligations that rank equally in right of payment with all of our existing and future senior, unsecured, unsubordinated obligations and may be redeemed at any time, subject to the make-whole provisions contained in the applicable indenture relating to such series of notes. Interest on each series of these notes is payable semi-annually in arrears, on September 15 and March 15 for the 4.2% Senior Notes, and June 15 and December 15 for the 3.95% Senior Notes. On September 15, 2020, we fully repaid the principal and accrued interest under the 4.2% Senior Notes due September 2020, which had an aggregate principal amount outstanding of $750 million. Convertible Senior Notes On March 4, 2016, we issued $500 million of convertible notes which would mature on April 1, 2021 and bear interest at an annual rate of 2.5% (2.5% Convertible Notes). On August 1, 2016, we issued an additional $1.25 billion of convertible notes which would mature on August 15, 2021 and bear interest at an annual rate of 2.0% (2.0% Convertible Notes and collectively, Convertible Senior Notes). As of March 29, 2019, the principal amount and associated unamortized discount and issuance costs of the 2.5% Convertible Notes were classified as current because upon the four year anniversary of the issuance of the notes, holders of thereof had 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 Notes (the Repurchase Right). On November 11, 2019, we amended the Convertible Senior Notes agreements to provide that, if and when we pay a special dividend of $12 to our stockholders, we would exchange $250 million of the principal amount underlying the 2.5% Convertible Notes for new notes to be issued pursuant to a new indenture (the New 2.5% Convertible Notes) and would also pay cash consideration of $12 for each share underlying the New 2.5% Convertible Notes, and exchange $625 million of the principal amount underlying the 2.0% Convertible Notes for new notes to be issued pursuant to a new indenture (the New 2.0% Convertible Notes) and would also pay cash consideration of $12 for each share underlying the New 2.0% Convertible Notes, in each case in lieu of conversion price adjustments (the Cash Note Payments). The remaining principal of the Convertible Senior Notes would receive a conversion price adjustment with respect to such special dividend. The special dividend was payable to stockholders on January 31, 2020. On February 4, 2020, we issued the New 2.5% Convertible Notes, maturing on April 1, 2022, and the New 2.0% Convertible Notes, which mature on August 15, 2022, pursuant to two new indentures, and made the Cash Note Payments. The new Notes are convertible into cash, shares of common stock or a combination of cash and common stock, at the Company’s option, at an initial conversion rate for the New 2.50% Convertible Notes of 59.6341 per $1,000 principal amount of the New 2.50% Convertible Notes (which represents an initial conversion price of approximately $16.77 per share) and an initial conversion rate for the New 2.00% Convertible Notes of 48.9860 per $1,000 principal amount of the New 2.00% Convertible Notes (which represents an initial conversion price of approximately $20.41 per share), in each case subject to certain limitations and certain adjustments. The Cash Note Payments consisted of $179 million with respect to holders of the New 2.5% Convertible Notes and $367 million with respect to holders of the New 2.0% Convertible Notes. The exchange of the convertible notes was accounted for as extinguishment of debt and the consideration comprising the Cash Note Payments were recorded as charges to paid in capital. We recognized a gain of $2 million related to the exchange. After giving effect to the conversion rate adjustment that was made in connection with the payment of the special dividend on January 31, 2020, the conversion rate for the remaining $250 million of the 2.5% Convertible Notes was 118.9814 shares of common stock per $1,000 principal amount of the notes, which represents an adjusted conversion price of approximately $8.40 per share and the conversion rate for the remaining $625 million of the 2.0% Convertible Notes was 97.7364 shares of common stock per $1,000 principal amount of the notes, which represented an adjusted conversion price of approximately $10.23 per share. In addition, in connection with the amendments, the maturity dates of the 2.5% Convertible Notes and the 2.0% Convertible Notes were extended to April 1, 2022 and August 15, 2022, respectively. Holders of the Convertible Senior Notes would only be able to convert the notes in a period of six months prior to the extended maturity dates; and the Redemption Right and Repurchase Right were removed. On March 5, 2020, we entered into an agreement to repay the full $250 million of principal and conversion rights of the 2.5% Convertible Notes for an aggregate amount of $566 million in cash. The payment was based on $19 per underlying share into which the 2.5% Convertible Notes were convertible. In addition, we paid $2 million of accrued and unpaid interest through the date of settlement, and $1 million in lieu of a proration of the cash dividend declared on February 6, 2020. The extinguishment was settled on March 10, 2020 and resulted in an adjustment to stockholders’ equity of $316 million and a loss on extinguishment of $1 million. On May 26, 2020, we settled the $625 million principal and conversion rights of the 2.0% Convertible Senior Notes in cash. The aggregate settlement amount of $1,176 million was based on $19.25 per underlying share into which the 2.0% Convertible Notes were convertible. In addition, we paid $3 million of accrued and unpaid interest through the date of settlement. The extinguishment resulted in an adjustment to stockholders’ equity of $578 million and a gain on extinguishment of $20 million. On May 20, 2021, we settled the $250 million principal and conversion rights of the New 2.5% Convertible Senior Notes in cash. The aggregate settlement amount of $364 million was based on $24.40 per underlying share into which the 2.5% Convertible Notes were convertible. In addition, we paid $1 million of accrued and unpaid interest through the date of settlement and $1 million of cash dividends that we declared on May 10, 2021. The extinguishment resulted in an adjustment to stockholders’ equity of $112 million and a loss on extinguishment of $2 million. On March 18, 2022, we settled $100 million of principal and conversion rights of the New 2.0% Convertible Senior Notes in cash. The aggregate settlement amount of $139 million was based on $28.32 per underlying share into which the New 2.0% Convertible Notes were convertible. The extinguishment resulted in an adjustment to stockholders’ equity of $40 million and a gain on extinguishment of $1 million. As of April 1, 2022 and April 2, 2021, the Convertible Senior Notes consisted of the following: April 1, 2022 April 2, 2021 (In millions) New 2.0% Convertible Notes New 2.5% Convertible Notes New 2.0% Convertible Notes Liability component: Principal $ 525 $ 250 $ 625 Unamortized discount and issuance costs (1) — (5) Net carrying amount $ 524 $ 250 $ 620 Equity component, net of tax $ 56 $ 43 $ 56 Based on the closing price of our common stock of $26.94 on the last trading date closest to April 1, 2022, the if-converted values of the New 2.0% Convertible Notes exceeded the principal amount by approximately $168 million. The following table sets forth total interest expense recognized related to our convertible notes: Year Ended (In millions) April 1, 2022 April 2, 2021 April 3, 2020 Contractual interest expense $ 12 $ 20 $ 37 Amortization of debt discount and issuance costs $ 4 $ 4 $ 13 Payments in lieu of conversion price adjustments (1) $ 8 $ 12 $ 11 |
Derivatives
Derivatives | 12 Months Ended |
Apr. 01, 2022 | |
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 monthly foreign exchange forward contracts. 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. We enter into foreign currency forward contracts to hedge foreign currency balance sheet exposure. These forward contracts are not designated as hedging instruments. As of April 1, 2022 and April 2, 2021, the fair value of these contracts was immaterial. The related gain (loss) recognized in Other income (expense), net in our Consolidated Statements of Operations was as follows: Year Ended (In millions) April 1, 2022 April 2, 2021 April 3, 2020 Foreign exchange forward contracts gain (loss) $ (7) $ 15 $ (22) The fair value of our foreign exchange forward contracts is presented on a gross basis in our 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 April 1, 2022 and April 2, 2021. The notional amount of our outstanding foreign exchange forward contracts in U.S. dollar equivalent was as follows: (In millions) April 1, 2022 April 2, 2021 Foreign exchange forward contracts purchased $ 155 $ 270 Foreign exchange forward contracts sold $ 191 $ 68 |
Restructuring and Other Costs
Restructuring and Other Costs | 12 Months Ended |
Apr. 01, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Costs | Restructuring and Other CostsOur restructuring and other costs consist primarily of severance, contract cancellations, separation and other related costs. Severance costs generally include severance payments, outplacement services, health insurance coverage, and legal costs. Contract cancellation charges primarily include penalties for early termination of contracts and write-offs of related prepaid assets. Other exit and disposal costs include costs to exit and consolidate facilities and advisory fees incurred in connection with restructuring events. Separation costs primarily consist of consulting costs incurred in connection with our divestitures. December 2020 Plan In December 2020, our Board of Directors approved a restructuring plan (the December 2020 Plan) to consolidate facilities and reduce operating costs in connection with our acquisition of Avira. These actions were completed in fiscal 2022. Any remaining costs or adjustments are immaterial. We incurred total costs of $24 million under the December 2020 Plan. November 2019 Plan In November 2019, our Board of Directors approved a restructuring plan (the November 2019 Plan) in connection with the strategic decision to divest our Enterprise Security business. Actions under this plan included the reduction of our workforce as well as asset write-offs and impairments, contract terminations, facilities closures and the sale of underutilized facilities. These actions were completed in fiscal 2021. Any remaining costs or adjustments are immaterial. We incurred total costs of $528 million, excluding stock-based compensation expense, under the November 2019 Plan. In connection with the Broadcom sale, our Board of Directors approved an equity-based severance program under which certain equity awards to certain terminated employees were accelerated. As of April 1, 2022, we have incurred $127 million of stock-based compensation related to our equity-based severance program. See Note 15 for further information on the impact of this program. August 2019 Plan On August 6, 2019, our Board of Directors approved a restructuring plan (the August 2019 Plan) to improve productivity and reduce complexity in the way we manage the business. Under the August 2019 Plan, we reduced our global headcount and closed certain facilities. These actions were completed in fiscal 2020, and we incurred total costs of $53 million, primarily consisting of severance and termination benefits. Restructuring and other costs summary Our restructuring and other costs attributable to continuing operations are presented in the table below: Year Ended (In millions) April 1, 2022 April 2, 2021 April 3, 2020 Severance and termination benefit costs $ 5 $ 31 $ 90 Contract cancellation charges 3 51 101 Stock-based compensation charges — 10 20 Asset write-offs and impairments 5 58 47 Other exit and disposal costs 18 11 7 Separation costs — — 1 Total restructuring and other $ 31 $ 161 $ 266 In connection with the agreement to sell certain assets of our Enterprise Security business, a portion of our restructuring and other costs were classified to discontinued operations for all periods presented. Our restructuring and other costs attributable to discontinued operations are presented in the table below. There was no discontinued operations activity during the year ended April 1, 2022. Year Ended (In millions) April 2, 2021 April 3, 2020 Severance and termination benefit costs $ 64 $ 121 Contract cancellation charges — 5 Stock-based compensation charges — 97 Asset write-offs and impairments — 13 Separation costs 2 25 Total restructuring and other $ 66 $ 261 Restructuring summary Our activities and liability balances related to our December 2020 Plan are presented in the tables below: (In millions) Liability Balance as of April 2, 2021 Net Charges Cash Payments Non-Cash Items Liability Balance as of April 1, 2022 Severance and termination benefit costs $ 3 $ 5 $ (8) $ — $ — Other exit and disposal costs — 7 (1) (6) — Total $ 3 $ 12 $ (9) $ (6) $ — |
Income Taxes
Income Taxes | 12 Months Ended |
Apr. 01, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of our income (loss) from continuing operations before income taxes are as follows: Year Ended (In millions) April 1, 2022 April 2, 2021 April 3, 2020 Domestic $ 791 $ 607 $ 667 International 251 265 152 Income (loss) before income taxes $ 1,042 $ 872 $ 819 The components of income tax expense (benefit) from continuing operations are as follows: Year Ended (In millions) April 1, 2022 April 2, 2021 April 3, 2020 Current: Federal $ 217 $ 133 $ 208 State 50 36 33 International 20 (13) 3 Total 287 156 244 Deferred: Federal (42) (6) (23) State (6) (5) 3 International (33) 31 17 Total (81) 20 (3) Income tax expense $ 206 $ 176 $ 241 The U.S. federal statutory income tax rates we have applied for fiscal 2022, 2021 and 2020 are as follows: Year Ended April 1, 2022 April 2, 2021 April 3, 2020 U.S. federal statutory income tax rate 21.0 % 21.0 % 21.0 % The difference between our effective income tax and the federal statutory income tax is as follows: Year Ended (In millions) April 1, 2022 April 2, 2021 April 3, 2020 Federal statutory tax expense (benefit) $ 219 $ 183 $ 172 State taxes, net of federal benefit 33 25 22 Foreign earnings taxed at other than the federal rate (47) (10) (2) Federal research and development credit (4) (1) (2) Valuation allowance increase (decrease) 2 1 (57) Change in uncertain tax positions 11 3 60 Stock-based compensation 7 5 5 Nondeductible goodwill — — 18 Favorable ruling on foreign withholding tax — (35) — US tax on foreign earnings 12 (15) (4) Return to provision adjustment (8) 1 12 Other, net — 2 17 Irish FX remeasurement (19) 17 — Income tax expense $ 206 $ 176 $ 241 The principal components of deferred tax assets and liabilities are as follows: (In millions) April 1, 2022 April 2, 2021 Deferred tax assets: Tax credit carryforwards $ 7 $ 2 Net operating loss carryforwards of acquired companies 16 23 Other accruals and reserves not currently tax deductible 84 54 Operating lease liabilities 28 29 Property and equipment 13 17 Intangible assets 123 103 Stock-based compensation 8 7 Other 54 36 Gross deferred tax assets 333 271 Valuation allowance (11) (7) Deferred tax assets, net of valuation allowance 322 264 Deferred tax liabilities: Operating lease assets (21) (25) Goodwill (6) (1) Deferred revenue (2) (1) Unremitted earnings of foreign subsidiaries (16) (15) Prepaids and deferred expenses (1) (2) Discount on convertible debt — (2) Deferred tax liabilities (46) (46) Net deferred tax assets (liabilities) $ 276 $ 218 Deferred income taxes reflect the net effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their basis for income tax purposes and the tax effects of net operating losses and tax credit carryforwards. The valuation allowance provided against our deferred tax assets as of April 1, 2022, increased primarily due to a valuation allowance on capital loss carryforwards. The ending valuation allowance of $11 million is provided primarily against tax attributes. As of April 1, 2022, we have U.S. federal net operating losses attributable to various acquired companies of approximately $52 million, which, if not used, will expire between fiscal 2023 and 2039. The net operating loss carryforwards are subject to an annual limitation under U.S. federal tax regulations but are expected to be fully realized. Furthermore, we have U.S. state net operating loss carryforwards attributable to various acquired companies of approximately $12 million. If not used, our U.S. state net operating losses will expire between fiscal 2023 and 2038. In addition, we have foreign net operating loss carryforwards attributable to various foreign companies of approximately $14 million. In assessing the ability to realize our deferred tax assets, we considered whether it is more likely than not that some portion or all the deferred tax assets will not be realized. We considered the following: we have historical cumulative book income, as measured by the current and prior two years; we have strong, consistent taxpaying history; and we have substantial amounts of scheduled future reversals of taxable temporary differences from our deferred tax liabilities. We have concluded that this positive evidence outweighs the negative evidence and, thus, that the deferred tax assets as of April 1, 2022, are realizable on a “more likely than not” basis. The aggregate changes in the balance of gross unrecognized tax benefits were as follows: Year Ended (In millions) April 1, 2022 April 2, 2021 April 3, 2020 Balance at beginning of year $ 548 $ 724 $ 446 Settlements with tax authorities — (37) (5) Lapse of statute of limitations (34) (34) (15) Increase related to prior period tax positions 16 13 77 Decrease related to prior period tax positions (11) (129) (11) Increase related to current year tax positions 8 11 232 Balance at end of year $ 527 $ 548 $ 724 There was a change of $21 million in gross unrecognized tax benefits during the year ended April 1, 2022, as disclosed above. This gross liability does not include offsetting tax benefits associated with the correlative effects of potential transfer pricing adjustments, interest deductions and state income taxes. Of the total unrecognized tax benefits at April 1, 2022, $486 million, if recognized, would affect our effective tax rate. We recognize interest and/or penalties related to uncertain tax positions in income tax expense. At April 1, 2022, before any tax benefits, we had $87 million of accrued interest and penalties on unrecognized tax benefits. Interest included in our provision for income taxes was an expense of approximately $19 million for fiscal 2022. If the accrued interest and penalties do not ultimately become payable, amounts accrued will be reduced in the period that such determination is made and reflected as a reduction of the overall income tax provision. We file income tax returns in the U.S. on a federal basis and in many U.S. state and foreign jurisdictions. Our most significant tax jurisdictions are the U.S. and Ireland. Our tax filings remain subject to examination by applicable tax authorities for a certain length of time following the tax year to which those filings relate. Our fiscal years 2014 through 2021 remain subject to examination by the IRS for U.S. federal tax purposes and fiscal years 2014 through 2020 are under audit. Our 2017 through 2021 fiscal years remain subject to examination by the appropriate governmental agencies for Irish tax purposes. The timing of the resolution of income tax examinations is highly uncertain, and the amounts ultimately paid, if any, upon resolution of the issues raised by the taxing authorities may differ materially from the amounts accrued for each year. Although potential resolution of uncertain tax positions involves multiple tax periods and jurisdictions, it is reasonably possible that the gross unrecognized tax benefits related to these audits could decrease (whether by payment, release, or a combination of both) in the next 12 months. Depending on the nature of the settlement or expiration of statutes of limitations, it could affect our income tax provision and therefore benefit the resulting effective tax rate. We continue to monitor the progress of ongoing income tax controversies and the impact, if any, of the expected tolling of the statute of limitations in various taxing jurisdictions. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Apr. 01, 2022 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Dividends On May 5, 2022, we announced that our Board of Directors declared a cash dividend of $0.125 per share of common stock to be paid in June 2022. 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 equivalent rights (DERs), respectively, which will be paid out if and when the underlying shares are released. Any future dividends and DERs will be subject to the approval of our Board of Directors. Stock repurchase program Under our stock repurchase program, we may purchase shares of our outstanding common stock through open market and through accelerated stock repurchase transactions. On May 4, 2021, our Board of Directors approved an incremental share repurchase authorization of $1,500 million. As of April 1, 2022, we have $1,774 million remaining under the authorization to be completed in future periods with no expiration date. No shares were repurchased during the year ended April 1, 2022. The following table summarizes activity related to our stock repurchase program during the years ended April 2, 2021 and April 3, 2020: Year Ended (In millions, except per share amounts) April 2, 2021 April 3, 2020 Number of shares repurchased 15 68 Average price per share $ 20.50 $ 22.97 Aggregate purchase price $ 304 $ 1,562 Subsequent to April 1, 2022, we executed repurchases of 4 million shares of our common stock for an aggregate amount of $107 million. As a result, we have $1,667 million remaining under our existing share repurchase program. Accumulated other comprehensive income (loss) Components and activities of AOCI, net of tax, were as follows: (In millions) Foreign Currency Translation Adjustments Balance as of April 3, 2020 $ (16) Other comprehensive income (loss) before reclassifications 63 Balance as of April 2, 2021 47 Other comprehensive income (loss) before reclassifications (51) Balance as of April 1, 2022 $ (4) |
Stock-Based Compensation and Be
Stock-Based Compensation and Benefit Plans | 12 Months Ended |
Apr. 01, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation and Benefit Plans | Stock-Based Compensation and Benefit Plans Stock incentive plans The purpose of our stock incentive plans is to attract, retain and motivate eligible persons whose present and potential contributions are important to our success by offering them an opportunity to participate in our future performance through equity awards. We have one primary stock incentive plan: the 2013 Equity Incentive Plan (the 2013 Plan), under which incentive stock options may be granted only to employees (including officers and directors who are also employees), and other awards may be granted to employees, officers, directors, consultants, independent contractors, and advisors. As amended, our stockholders have approved and reserved 82 million shares of common stock for issuance under the 2013 Plan. As of April 1, 2022, 11 million shares remained available for future grant, calculated using the maximum potential shares that could be earned and issued at vesting. In connection with the acquisitions of various companies, we have assumed the equity awards granted under stock incentive plans of the acquired companies or issued equity awards in replacement thereof. No new awards will be granted under our acquired stock plans. RSUs (In millions, except per share and year data) Number of Weighted- Outstanding as of April 2, 2021 5 $ 20.62 Granted 4 $ 22.53 Vested (2) $ 20.89 Forfeited (1) $ 21.07 Outstanding as of April 1, 2022 6 $ 21.80 RSUs generally vest over a three-year period. The weighted-average grant date fair value per share of RSUs granted during fiscal 2022, 2021 and 2020 was $22.53, $20.70, and $19.65, respectively. The total fair value of RSUs released in fiscal 2022, 2021 and 2020 was $57 million, $86 million, and $300 million, respectively, which represents the market value of our common stock on the date the RSUs were released. PRUs (In millions, except per share and year data) Number of Weighted- Outstanding and unvested as of April 2, 2021 1 $ 27.50 Granted 3 $ 28.68 Forfeited (1) $ 28.40 Unvested at April 1, 2022 3 $ 28.50 Vested and unreleased as of April 1, 2022 — Outstanding as of April 1, 2022 3 The total fair value of PRUs released in fiscal 2022, 2021 and 2020 was $0 million, $43 million, and $39 million, respectively, which represents the market value of our common stock on the date the PRUs were released. We have granted PRUs to certain of our executives. Typically, these PRUs have a three-year vest period. PRUs granted in fiscal 2022 and 2021 contain a combination of our company’s performance and market conditions whereas our fiscal 2020 PRUs only contain market conditions. The performance conditions are based on the achievement of specified one-year non-GAAP financial metrics. The market conditions are based on the achievement of our relative total shareholder return over a two Valuation of PRUs The fair value of each PRU that does not contain a market condition is equal to the market value of our common stock on the date of grant. The fair value of each PRU that contains a market condition is estimated using the Monte Carlo simulation model. The valuation and the underlying weighted-average assumptions for PRUs are summarized below: Year Ended April 1, 2022 April 2, 2021 April 3, 2020 Expected term 3.9 years 2.7 years 1.9 years Expected volatility 37.6 % 42.5 % 38.1 % Risk-free interest rate 1.0 % 0.2 % 1.7 % Expected dividend yield — % — % 1.7 % Weighted-average grant date fair value of PRUs $ 28.68 $ 26.39 $ 21.69 Stock options (In millions, except per share and year data) Number of Weighted-Average Exercise Price Weighted- Aggregate Intrinsic Outstanding as of April 1, 2021 (1) — $ 5.22 Granted — $ — Exercised (1) — $ 4.73 Canceled — $ — Forfeited and expired (1) — $ 7.01 Outstanding as of April 1, 2022 (1) — $ 5.51 Exercisable as of April 1, 2022 (1) — $ 5.51 3.8 $ 4 (1) The number of shares is less than 1 million. The total intrinsic value of options exercised during fiscal 2022, 2021 and 2020 was $3 million, $18 million, and $171 million, respectively. The fair value of options granted in fiscal 2020 was $4.76 per share. No options were granted in fiscal 2022 and 2021. ESPP Under our 2008 Employee Stock Purchase Plan, employees may annually contribute up to 10% of their gross compensation, subject to certain limitations, to purchase shares of our common stock at a discounted price. Eligible employees are offered shares through a 12-month offering period, which consists of two consecutive 6-month purchase periods, at 85% of the lower of either the fair market value on the purchase date or the fair market value at the beginning of the offering period. As of April 1, 2022, 38 million shares have been issued under this plan, and 32 million shares remained available for future issuance. The following table summarizes activity related to the purchase rights issued under the ESPP: Year Ended (In millions) April 1, 2022 April 2, 2021 April 3, 2020 Shares issued under the ESPP 1 1 2 Proceeds from issuance of shares $ 13 $ 14 $ 39 The fair value of each stock purchase right under our ESPP is estimated using the Black-Scholes option pricing model. The weighted-average grant date fair value related to rights to acquire shares of common stock under our ESPP in fiscal 2022, 2021 and 2020 was $6.77 per share, $5.65 per share, and $5.17 per share, respectively. Dividend equivalent rights (DERs) Our RSUs and PRUs contain dividend equivalent rights (DER) that entitles the recipient of an award to receive cash dividend payments when the associated award is released. The amount of DER equals to the cumulated dividends on the issued number of common stock that would have been payable since the date the associated award was granted. As of April 1, 2022 and April 2, 2021, current dividends payable related to DER was $11 million and $12 million, respectively, recorded as part of Other current liabilities in the Consolidated Balance Sheets, and long-term dividends payable related to DER was $2 million and $10 million, respectively, recorded as part of Other long-term liabilities. Stock-based award modifications In connection with the Broadcom sale, during fiscal 2021 and 2020, we entered into severance and retention arrangements with certain executives. Pursuant to these agreements, these executives were entitled to receive vesting of 50% of their unvested equity, subject to a service condition, and the remaining unvested equity will be earned at levels of 0% to 150%, subject to market and service conditions. In addition, we entered into severance and retention arrangements with certain other employees in connection with restructuring activities and the Broadcom sale, which accelerated either a portion or all of the vesting of their stock-based awards. All award modifications related to the Broadcom sale were fully expensed by fiscal 2021. The following table summarizes the stock-based compensation expense recognized as a result of these modifications: Year Ended (In millions) April 2, 2021 April 3, 2020 Sales and marketing $ 2 $ 6 Research and development 9 — General and administrative 8 20 Restructuring and other costs 10 20 Discontinued operations 1 99 Total stock-based compensation $ 30 $ 145 Stock-based compensation expense Total stock-based compensation expense and the related income tax benefit recognized for all of our equity incentive plans in our Consolidated Statements of Operations were as follows: Year Ended (In millions) April 1, 2022 April 2, 2021 April 3, 2020 Cost of revenues $ 2 $ 1 $ 2 Sales and marketing 19 18 29 Research and development 19 26 30 General and administrative 30 26 58 Restructuring and other costs — 10 20 Other income (expense), net — (1) 1 Total stock-based compensation from continuing operations 70 80 140 Discontinued operations — 1 172 Total stock-based compensation expense $ 70 $ 81 $ 312 Income tax benefit for stock-based compensation expense $ (11) $ (18) $ (55) As of April 1, 2022, the total unrecognized stock-based compensation expense related to our unvested stock-based awards was $160 million, which will be recognized over an estimated weighted-average amortization period of 2.2 years. Other employee benefit plans 401(k) plan We maintain a salary deferral 401(k) plan for all of our U.S. employees. This plan allows employees to contribute their pretax salary up to the maximum dollar limitation prescribed by the Internal Revenue Code. We match the first 3.5% of a participant’s eligible compensation up to $6,000 in a calendar year. Our employer matching contributions to the 401(k) plan were as follows, including contributions to employees of our discontinued operations: Year Ended (In millions) April 1, 2022 April 2, 2021 April 3, 2020 401(k) matching contributions $ 3 $ 3 $ 16 |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 12 Months Ended |
Apr. 01, 2022 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | Net Income (Loss) 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 include the dilutive effect of the shares underlying convertible debt and employee equity awards. The components of basic and diluted net income (loss) per share are as follows: Year Ended (In millions, except per share amounts) April 1, 2022 April 2, 2021 April 3, 2020 Income (loss) from continuing operations $ 836 $ 696 $ 578 Income (loss) from discontinued operations — (142) 3,309 Net income (loss) $ 836 $ 554 $ 3,887 Income (loss) per share - basic: Continuing operations $ 1.44 $ 1.18 $ 0.94 Discontinued operations $ — $ (0.24) $ 5.38 Net income per share - basic $ 1.44 $ 0.94 $ 6.32 Income (loss) per share - diluted: Continuing operations $ 1.41 $ 1.16 $ 0.90 Discontinued operations $ — $ (0.24) $ 5.15 Net income per share - diluted $ 1.41 $ 0.92 $ 6.05 Weighted-average shares outstanding - basic 581 589 615 Dilutive potentially issuable shares: Convertible debt 7 8 20 Employee equity awards 3 3 8 Weighted-average shares outstanding - diluted 591 600 643 Anti-dilutive shares excluded from diluted net income (loss) per share calculation: Convertible debt — 8 5 Employee equity awards 1 — 2 Total 1 8 7 Under the treasury stock method, our convertible debt instruments will generally have a dilutive impact on net income per share when our average stock price for the period exceeds the conversion prices for the convertible debt instruments. On February 4, 2020, a portion of the 2.5% Convertible Notes were exchanged for the New 2.5% Convertible Notes, and a portion of the 2.0% Convertible Notes were exchanged for the New 2.0% Convertible Notes. The remaining Convertible Senior Notes received conversion price adjustments. The 2.5% Convertible Notes and 2.0% Convertible Notes were fully repaid on March 10, 2020 and May 26, 2020, respectively. The New 2.5% Convertible Notes were fully repaid on May 20, 2021. See Note 10 for further information on our convertible debt instruments. The conversion price of each convertible debt applicable in the periods presented is as follows: Year Ended April 1, 2022 April 2, 2021 April 3, 2020 2.5% Convertible Senior Notes due April 1, 2022 N/A N/A $ 8.40 2.0% Convertible Senior Notes due August 15, 2022 N/A N/A $ 10.23 New 2.5% Convertible Senior Notes due April 1, 2022 N/A $ 16.77 $ 16.77 New 2.0% Convertible Senior Notes due August 15, 2022 $ 20.41 $ 20.41 $ 20.41 |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Apr. 01, 2022 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | Segment and Geographic Information We operate as 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 following table summarizes net revenues for our major solutions: Year Ended (In millions) April 1, 2022 April 2, 2021 April 3, 2020 Consumer security $ 1,669 $ 1,513 $ 1,450 Identity and information protection 1,127 1,038 994 ID Analytics — — 46 Total net revenues $ 2,796 $ 2,551 $ 2,490 Consumer security products include our Norton 360 Security offerings, Norton Security, Norton Secure VPN, Avira Security and other consumer security solutions. Identity and information protection products include our Norton 360 with LifeLock offerings, LifeLock identity theft protection and other information protection solutions. Our ID Analytics solutions were divested on January 31, 2020. Geographic 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: Year Ended (In millions) April 1, 2022 April 2, 2021 April 3, 2020 Americas $ 1,963 $ 1,827 $ 1,831 EMEA 506 419 376 APJ 327 305 283 Total net revenues $ 2,796 $ 2,551 $ 2,490 Note: 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 $1,860 million, $1,742 million, and $1,747 million during fiscal 2022, 2021 and 2020, respectively. No other individual country accounted for more than 10% of revenues. The table below represents cash, cash equivalents and short-term investments held in the U.S. and internationally in various foreign subsidiaries: (In millions) April 1, 2022 April 2, 2021 U.S. $ 1,220 $ 536 International 671 415 Total cash, cash equivalents and short-term investments $ 1,891 $ 951 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) April 1, 2022 April 2, 2021 U.S. $ 16 $ 28 Ireland 27 32 Germany 13 14 Other countries (1) 4 4 Total property and equipment, net $ 60 $ 78 (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) April 1, 2022 April 2, 2021 U.S. $ 66 $ 55 India 5 9 Other countries (1) 3 12 Total operating lease assets $ 74 $ 76 (1) No individual country represented more than 10% of the respective totals. Significant customers In fiscal 2022, 2021 and 2020, no customer accounted for 10% or more of our net revenues. See Note 1 for customers that accounted for over 10% of our net accounts receivable. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Apr. 01, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Purchase obligations We have purchase obligations that are associated with agreements for purchases of goods or services. Management believes that cancellation of these contracts is unlikely, and we expect to make future cash payments according to the contract terms. The following reflects estimated future payments for purchase obligations by fiscal year. The amount of purchase obligations reflects estimated future payments as of April 1, 2022. (In millions) April 1, 2022 2023 $ 353 2024 51 2025 9 2026 6 2027 3 Thereafter 4 Total purchase obligations $ 426 Deemed repatriation taxes Under the Tax Cuts and Jobs Act (H.R.1), we are required to pay a one-time transition tax on untaxed earnings of our foreign subsidiaries through July 2025. The following reflects estimated future payments for deemed repatriation taxes by fiscal year: (In millions) April 1, 2022 2023 $ 68 2024 128 2025 171 2026 138 Total obligations $ 505 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 Consolidated Financial Statements. In connection with the sale of Veritas and the sale of our Enterprise Security business to Broadcom, we assigned several leases to Veritas Technologies LLC or Broadcom and/or their 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, Broadcom, or their 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 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. Such indemnification provisions may not be subject to maximum loss clauses. 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 For a description of our accounting policy regarding litigation and loss contingencies, see “Critical Accounting Policies and Estimates” included in Part II, Item 7 of this Annual Report. Trustees of the University of Columbia in the City of New York v. NortonLifeLock As previously disclosed in our public filings, on May 2, 2022, a jury returned its verdict in a patent infringement case filed in 2013 by the Trustees of Columbia University in the City of New York in the U.S. District Court for the Eastern District of Virginia. Columbia originally brought suit alleging infringement of six patents owned by the university. The Company won a favorable claim construction order on all six patents, and the claim construction was upheld by the Federal Circuit in 2016 on all but U.S. Patent Nos. 8,601,322 and 8,074,115. The Company also sought inter partes review by the Patent Trial and Appeal Board of the claims of the ‘322 and ‘115 Patents and all but two claims of the ‘322 Patent and three claims of the ‘115 Patent were invalidated. The remaining claims of the ‘322 and ‘115 Patents were the only claims that remained in suit at trial. The jury found that the Company’s Norton Security products and Symantec Endpoint Protection products (the latter of which were sold to Broadcom as part of an Asset Purchase Agreement with NortonLifeLock dated November 4, 2019) willfully infringe the ‘322 and ‘115 Patents through the use of SONAR/BASH behavioral protection technology. The jury awarded damages in the amount of $185 million. Columbia did not seek injunctive relief against the Company. The Company intends to cease use of the technology found by the jury to infringe. The jury also found that the Company did not fraudulently conceal its prosecution of U.S. Patent No. 8,549,643 but did find that two Columbia professors were coinventors of this patent. No damages were awarded related to this patent. A formal judgment has not yet been entered in the case. There are likely to be post-verdict motions and hearings, and the Company intends to file an appeal challenging the verdict. At this time, our current estimate of the low end of the range of probable estimated losses from this matter is $185 million which we have accrued. The jury’s verdict may be enhanced and, should it be upheld on appeal, could ultimately result in the payment of somewhere between one and three times the jury’s verdict, plus interest and attorneys’ fees. There is a reasonable possibility that a loss may be incurred in excess of our accrual for this matter; however, such loss cannot be reasonably estimated. 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 with which we cooperated. In April 2022, the SEC Staff informed the Company that it concluded its investigation and does not intend to recommend an enforcement action by the Commission against us. 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 against certain of our former officers. Defendants filed answers on November 7, 2019. On April 20, 2021, to resolve an alleged conflict of interest raised with respect to the lead plaintiff and its counsel, the Court ordered a second Class Notice disclosing the circumstances of the alleged conflict and providing a further period for class members to opt out, which closed on July 2, 2021. The initial class opt out period closed on August 25, 2020. On May 24, 2021, the parties reached a proposed settlement and release of all claims in the class action, for $70 million, and on June 8, 2021, the parties executed a Stipulation and Agreement of Settlement, subject to Court approval and exclusive of any claims that may be brought by shareholders who opted out of the class action. Of the $70 million, $67.1 million was covered under the applicable insurance policy with the remainder to be paid by the Company. The Court approved the settlement on February 12, 2022. On November 22, 2021, investment funds managed by Orbis Investment Management Ltd. which previously opted out of the securities class action, filed suit under the Securities and Exchange Act of 1934, Arizona Securities Act, Arizona Consumer Fraud Act and certain common law causes of action to recover alleged damages for losses incurred by the funds for their purchases or acquisitions of our common stock during the class period. In the fourth quarter of fiscal 2022, we made an immaterial settlement offer in this matter, for which we have accrued. 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. 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. At this stage, we are unable to assess whether any material loss or adverse effect is reasonably possible as a result of the derivative lawsuits or estimate the range of any potential loss. 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. 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 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 contract 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 also indicated they would 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. On October 21, 2019, the DOJ moved for a Prejudgment Writ of Sequestration for the Company to set aside $1,090 million to pay a judgment, should the United States prevail in this litigation, under the Federal Debt Collection Procedures Act. The Writ was sought in response to the Company’s announcement of its plans to distribute the after-tax proceeds of the sale of the Symantec enterprise business to Broadcom to its shareholders via a special dividend. The Court denied the Writ on December 12, 2019, on the basis of the Government’s failure to establish the “probable validity” of the debt, the amount sought to be sequestered, and the Company’s available cash, cash equivalents and short-term investments. The Court permitted the DOJ limited discovery of facts relevant to the Company’s financial state and financial projections and the option to renew its motion if appropriate and supported by the analysis of its own financial expert. That discovery period has now closed. On March 30, 2020, the Court issued an Order granting in part and denying in part our motion for summary judgment and granting in part and denying in part the United States’ motion for partial summary judgment. On September 30, 2020, the Company filed a Motion for Reconsideration of certain rulings in the Court’s March 30 Summary Judgment Order. A second Motion for Reconsideration of certain rulings in the Summary Judgement Order based on significant change in the law was filed on July 23, 2021. Both Motions for Reconsideration were denied. Court ordered mediations in July 2020 and February 2021 were not successful. On March 23, 2021, Plaintiffs withdrew their demand for a jury trial and the Company consented to proceed with a bench trial, which concluded on March 24, 2022. The Court has not yet issued its judgment. On May 13, 2021, we reached a settlement in principle with the State of Florida to resolve all claims it asserted in the litigation for $0.5 million, plus Relator’s statutory attorney’s fees with respect to the State of Florida’s claims. On February 28 2022, we reached a settlement in principle with the State of New York and Relator to resolve all of the New York claims asserted in the litigation for $5 million. At this time, our current estimate of the low end of the range of probable estimated losses from this matter is $50 million, inclusive of the settlement with the States of Florida and New York, which we have accrued. 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. There is a reasonable possibility that a loss may have been incurred in excess of our accrual for this matter; however, such loss cannot be reasonably estimated. Holden v. NortonLifeLock On February 8, 2021, Lauren Holden filed a putative class action in the Circuit Court for Duval County, Florida alleging that the Company violated the Florida wiretapping statute, Florida Security of Communications Act, Fla. Stat. Ann. § 934.01, et. seq., through the use of session replay technology on www.us.norton.com. The complaint defines the class as consisting of Florida residents who visited the website and whose electronic communications were alleged to have been intercepted by the Company without prior consent and, on behalf of the class, seeks statutory damages, attorney’s fees and costs, and injunctive relief. On March 12, 2021, the Company removed the case to the District Court for the Middle District of Florida and filed its Answer and Affirmative Defenses to the complaint. The Company then filed a Motion for Judgment on the Pleadings on April 20, 2021. On April 29, 2021, Plaintiff filed a Motion for Leave to File an Amended Complaint. On July 22, 2021, the Court granted Plaintiff leave to file an amended complaint and deemed the Motion for Judgment on the Pleadings moot. On August 5, 2021, the Company filed a Motion to Dismiss the First Amended Complaint. On September 9, 2021, the Plaintiff filed a Notice of Voluntary Dismissal Without Prejudice and the Court entered an Order on September 16, 2021, dismissing the case without prejudice. Other We are involved in a number of other judicial and administrative proceedings that are incidental to our business. Although adverse decisions (or settlements) may occur in one or more of the cases, it is not possible to estimate the possible loss or losses from each of these cases. The final resolution of these lawsuits, individually or in the aggregate, is not expected to have a material adverse effect on our business, results of operations, financial condition or cash flows. |
Description of Business and S_2
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Apr. 01, 2022 | |
Accounting Policies [Abstract] | |
Principles of consolidation | The accompanying Consolidated Financial Statements of NortonLifeLock and our wholly-owned subsidiaries are prepared in conformity with generally accepted accounting principles in the United States (GAAP). All significant intercompany accounts and transactions have been eliminated in consolidation. |
Fiscal calendar | We have a 52/53-week fiscal year ending on the Friday closest to March 31. Fiscal 2022, 2021 and 2020 in this report refers to fiscal years ended April 1, 2022, April 2, 2021, and April 3, 2020, respectively. Fiscal 2020 was a 53-week year, whereas fiscal 2022 and 2021 each consisted of 52 weeks. |
Use of estimates | The preparation of Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and accompanying Notes. Such estimates include, but are not limited to, valuation of business combinations including acquired intangible assets and goodwill, loss contingencies, the recognition and measurement of current and deferred income taxes, including the measurement of uncertain tax positions, and valuation of assets and liabilities and results of operations of our discontinued operations. On an ongoing basis, management determines these estimates and assumptions based on historical experience and on various other assumptions that are believed to be reasonable. Third-party valuation specialists are also utilized for certain estimates. Actual results could differ from such estimates and assumptions due to risks and uncertainties, including uncertainty in the current economic environment due to the COVID-19 pandemic, and such differences may be material to the Consolidated Financial Statements. |
Revenue recognition and Contract Liabilities | We sell products and services directly to end-users and packaged software products through a multi-tiered distribution channel. We recognize revenue when control of the promised products or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for such products or services. Performance periods are generally one year or less, and payments are generally collected up front. Revenue is recognized net of allowances for partner incentives and rebates, and any taxes collected from customers and subsequently remitted to governmental authorities. We offer various channel rebates for our products. Our estimated reserves for channel volume incentive rebates are based on distributors’ and resellers’ performance compared to the terms and conditions of volume incentive rebate programs, which are typically entered into quarterly. Our reserves for rebates are estimated based on the terms and conditions of the promotional program, actual sales during the promotion, the amount of redemptions received, historical redemption trends by product and by type of promotional program and the value of the rebate. We record estimated reserves for rebates as an offset to revenue or contract liabilities. Reserves for rebates, recorded in Other current liabilities, were $5 million and $6 million as of April 1, 2022 and April 2, 2021, respectively. For products that include content updates, rebates are recognized as a ratable offset to revenue or contract liabilities over the term of the subscription. Performance obligations At contract inception, we assess the products and services promised in the contract to identify each performance obligation and evaluate whether the performance obligations are capable of being distinct and are distinct within the context of the contract. Performance obligations that are not both capable of being distinct and are distinct within the context of the contract are combined and treated as a single performance obligation in determining the allocation and recognition of revenue. Our software solutions typically consist of a term-based subscription as well as when-and-if available software updates and upgrades. We have determined that our promises to transfer the software license subscription and the related support and maintenance are not separately identifiable because: • the licensed software and the software updates and upgrades are highly interdependent and highly interrelated, working together to deliver continuously updated protection to customers; • by identifying and addressing new threats, the software updates and upgrades significantly modify the licensed software and are integral to maintaining its utility; and • given the rapid pace with which new threats are identified, the value of the licensed software diminishes rapidly without the software updates and upgrades. We therefore consider the software license and related support obligations a single, combined performance obligation with revenue recognized over time as our solutions are delivered. |
Fair value measurements | For assets and liabilities 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 | Cash equivalents . We consider all highly liquid investments with an original maturity of three months or less at the time of purchase to be cash equivalents. Cash equivalents are carried at amounts that approximate fair value due to the short period of time to maturity. Short-term investments . Short-term investments consist primarily of corporate bonds. They are classified as available-for-sale and recognized at fair value using Level 1 and Level 2 inputs, which are quoted using market prices, independent pricing vendors or other sources, to determine the fair value. Unrealized gains and losses, net of tax, are included in Accumulated other comprehensive income (AOCI). We regularly review our investment portfolio to identify and evaluate investments that have indications of impairment. Available-for-sale debt securities with an amortized cost basis in excess of estimated fair value are assessed to determine what amount of that difference, if any, is caused by expected credit losses. Factors considered in determining if a credit loss exists include: the extent to which the fair value has been lower than the cost basis, any changes to the rating of the security by a rating agency and any adverse financial conditions specifically related to the security. Expected credit losses on available-for-sale debt securities are recognized in Other income (expense), net in our Consolidated Statements of Operations, and any remaining unrealized losses, net of taxes, are included in AOCI in our Consolidated Statements of Stockholders’ Equity (Deficit). |
Non-marketable investments | Our non-marketable investments consist of equity investments in privately-held companies without a readily determinable fair value. We primarily measure these investments at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer. We may elect to measure certain investments at fair value, for which we utilize third-party valuation specialists at least annually in the fourth quarter of each fiscal year, or more frequently if events or changes in circumstances indicate a change in the fair value of the investment. Gains and losses on these investments, whether realized or unrealized, are recognized in Other income (expense), net in our Consolidated Statements of Operations. We assess the recoverability of our non-marketable investments by reviewing various indicators of impairment. If indicators are present, a fair value measurement is made by performing a discounted cash flow analysis of the investment. We immediately recognize the impairment to our non-marketable equity investments if the carrying value exceeds the fair value. For our equity method investment, if a decline in value is determined to be other than temporary, impairment is recognized and included in Other income (expense), net in our Consolidated Statements of Operations. |
Accounts receivable | Accounts receivable are recorded at the invoiced amount and are not interest bearing. We maintain an allowance for doubtful accounts or expected credit losses to reserve for potentially uncollectible receivables. We review our accounts receivables by aging category to identify specific customers with known disputes or collectability issues. In addition, we maintain an allowance for all other receivables not included in the specific reserve by applying specific percentages of projected uncollectible receivables to the various aging categories. In determining these percentages, we use judgment based on our historical collection experience and current economic trends as well as reasonable and supportable forecasts of future economic conditions. |
Assets held for sale | Long-lived assets held for sale are recorded as the lower of its carrying value or fair value less costs to sell. Fair value is determined based on discounted cash flows, appraised values or management’s estimates, depending upon the nature of the assets and external data available. |
Property and equipment | Property, equipment, and leasehold improvements are stated at cost, net of accumulated depreciation. Depreciation is provided on a straight-line basis over the estimated useful lives. Estimated useful lives for financial reporting purposes are as follows: buildings, 20 to 30 years; building improvements, 7 to 20 years; leasehold improvements, the lesser of the life of the improvement or the initial lease term, and computer hardware and software and office furniture and equipment, 3 to 5 years. |
Software development costs | The costs for the development of new software products and substantial enhancements to existing software products are expensed as incurred until technological feasibility has been established, at which time any additional costs would be capitalized in accordance with the accounting guidance for software. Because our current process for developing software is essentially completed concurrently with the establishment of technological feasibility, which occurs upon the completion of a working model, no costs have been capitalized for any of the periods presented. |
Internal-use software development costs | We capitalize qualifying costs incurred during the application development stage related to software developed for internal-use and amortize them over the estimated useful life of 3 years. We expense costs incurred related to the planning and post-implementation phases of development as incurred. |
Leases | We determine if an arrangement is a lease at inception. We have elected to not recognize a lease liability or right-of-use (ROU) asset for short-term leases (leases with a term of twelve months or less that do not include an option to purchase the underlying asset). Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. The interest rate we use to determine the present value of future payments is our incremental borrowing rate because the rate implicit in our leases is not readily determinable. Our incremental borrowing rate is a hypothetical rate for collateralized borrowings in economic environments where the leased asset is located based on credit rating factors. Our operating lease assets also include adjustments for prepaid lease payments , lease incentives and initial direct costs . |
Business combinations | We use the acquisition method of accounting under the authoritative guidance on business combinations. We allocate the purchase price of our acquisitions to the assets acquired and liabilities assumed based on their estimated fair values. The excess of the purchase price over the fair values of these identifiable assets and liabilities is recorded as goodwill. Acquisition-related expenses are recognized separately from the business combination and are expensed as incurred. Each acquired company’s operating results are included in our Consolidated Financial Statements starting on the date of acquisition. |
Goodwill | Goodwill is recorded when consideration paid for an acquisition exceeds the fair value of net tangible and intangible assets acquired. We perform an impairment assessment of goodwill at the reporting unit level at least annually in the fourth quarter of each fiscal year, or more frequently if events or changes in circumstances indicate that the asset may be impaired. The accounting guidance gives us the option to perform a qualitative assessment to determine whether further impairment testing is necessary. The qualitative assessment considers events and circumstances that might indicate that a reporting unit’s fair value is less than its carrying amount. If it is determined, as a result of the qualitative assessment, that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, a quantitative test is performed. |
Long-lived assets | In connection with our acquisitions, we generally recognize assets for customer relationships, developed technology, finite-lived trade names, patents and indefinite-lived trade names. Finite-lived intangible assets are carried at cost less accumulated amortization. Such amortization is provided on a straight-line basis over the estimated useful lives of the respective assets, generally from 1 to 8 years. Amortization for developed technology is recognized in cost of revenue. Amortization for customer relationships and certain trade names is recognized in operating expenses. Indefinite-lived intangible assets are not subject to amortization but instead tested for impairment annually or more frequently if events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.Long-lived assets, including finite-lived intangible assets and property and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or group may not be recoverable. The evaluation is performed at the lowest level of identifiable cash flows independent of other assets. An impairment loss is recognized when estimated undiscounted future cash flows generated from the assets are less than their carrying amount. Measurement of an impairment loss is based on the excess of the carrying amount of the asset group over its fair value. |
Debt | Our debt includes senior unsecured notes, senior term loans, convertible senior notes and a senior unsecured revolving credit facility. Our senior unsecured notes are recorded at par value at issuance less a discount representing the amount by which the face value exceeds the fair value at the date of issuance and an amount which represents issuance costs. Our senior term loans are recorded at par value less debt issuance costs, which are recorded as a reduction in the carrying value of the debt. Our convertible senior notes are recorded at par value less the fair value of the equity component of the notes, at their issuance date, determined using Level 2 inputs and less any issuance costs. The discount and issuance costs associated with the various notes are amortized using the effective interest rate method over the term of the debt as a non-cash charge to interest expense. Borrowings under our revolving credit facility, if any, are recognized at principal balance plus accrued interest based upon stated interest rates. Debt maturities are classified as current liabilities on our Consolidated Balance Sheets if we are contractually obligated to repay them in the next twelve months or, prior to the balance sheet date, we have the authorization and intent to repay them prior to their contractual maturities and within the next twelve months. |
Treasury stock | We account for treasury stock under the cost method. Shares repurchased under our share repurchase program are retired. Upon retirement, we allocate the value of treasury stock between Additional paid-in capital and Retained earnings. |
Restructuring | Restructuring actions generally include significant actions involving employee-related severance charges, contract termination costs and assets write-offs. Employee-related severance charges are largely based upon substantive severance plans, while some charges result from mandated requirements in certain foreign jurisdictions. These charges are reflected in the period when both the actions are probable and the amounts are estimable. Contract termination costs reflect costs that will continue to be incurred under a contract for its remaining term without future economic benefit. These charges are reflected in the period when a contract is terminated. Asset impairments, including those related to ROU lease assets, are recognized in the period that an asset is decommissioned or a facility ceases to be used. |
Income taxes | We compute the provision for income taxes using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax basis of assets and liabilities and for operating losses and tax credit carryforwards in each jurisdiction in which we operate. We measure deferred tax assets and liabilities using the currently enacted tax rates that apply to taxable income in effect for the years in which those tax assets are expected to be realized or settled. We also assess the likelihood that deferred tax assets will be realized from future taxable income and based on weighting positive and negative evidence, we will assess and determine the need for a valuation allowance, if required. The determination of our valuation allowance involves assumptions, judgments and estimates, including forecasted earnings, future taxable income and the relative proportions of revenue and income before taxes in the various domestic and international jurisdictions in which we operate. To the extent we establish a valuation allowance or change the valuation allowance in a period, we reflect the change with a corresponding increase or decrease to our tax expense. |
Stock-based compensation | We measure and recognize stock-based compensation for all stock-based awards, including restricted stock units (RSU), performance-based restricted stock units (PRU), stock options and rights to purchase shares under our employee stock purchase plan (ESPP), based on their estimated fair value on the grant date. We recognize the costs in our Consolidated Financial Statements on a straight-line basis over the award’s requisite service period except for PRUs with graded vesting, for which we recognize the costs on a graded basis. For awards with performance conditions, the amount of compensation cost we recognize over the requisite service period is based on the actual or estimated achievement of the performance condition. We estimate the number of stock-based awards that will be forfeited due to employee turnover. The fair value of each RSU and PRU that does not contain a market condition is equal to the market value of our common stock on the date of grant. The fair value of each PRU that contains a market condition is estimated using the Monte Carlo simulation model. The fair values of RSUs and PRUs are not discounted by the dividend yield because our RSUs and PRUs include dividend-equivalent rights. We use the Black-Scholes model to determine the fair value of stock options and the fair value of rights to acquire shares of common stock under our ESPP . |
Foreign currency | For foreign subsidiaries whose functional currency is the local currency, assets and liabilities are translated to U.S. dollars at exchange rates in effect at the balance sheet date. Gains and losses resulting from translation of these foreign currency financial statements into U.S. dollars are recorded in AOCI. Remeasurement adjustments are recorded in Other income (expense), net in our Consolidated Statements of Operations. |
Concentrations of credit risk | A significant portion of our revenue is derived from international sales. Fluctuations of the U.S. dollar against foreign currencies, changes in local regulatory or economic conditions, or piracy could adversely affect our operating results.Financial instruments that potentially subject us to concentrations of risk consist principally of cash and cash equivalents, short-term investments and trade accounts receivable. Our investment policy limits the amount of credit risk exposure to any one issuer and to any one country. A majority of our trade receivables are derived from sales to distributors and retailers. The credit risk in our trade accounts receivable is substantially mitigated by our credit evaluation process, reasonably short collection terms and the geographical dispersion of sales transactions. |
Advertising and other promotional costs | Advertising and other promotional costs are charged to operations as incurred and included in sales and marketing expenses. |
Contingencies | We evaluate contingent liabilities including threatened or pending litigation in accordance with the authoritative guidance on contingencies. We assess the likelihood of any adverse judgments or outcomes from potential claims or proceedings, as well as potential ranges of probable losses, when the outcomes of the claims or proceedings are probable and reasonably estimable. A determination of the amount of an accrual required, if any, for these contingencies is made after the analysis of each separate matter. Because of uncertainties related to these matters, we base our estimates on the information available at the time of our assessment. As additional information becomes available, we reassess the potential liability related to our pending claims and litigation and may revise our estimates. |
Recent Accounting Standards | Recently adopted authoritative guidance Income Taxes . In December 2019, the FASB issued new guidance that simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The guidance also clarifies and amends existing guidance to improve consistent application. On April 3, 2021, the first day of fiscal 2022, we adopted this guidance prospectively. The adoption of this guidance did not have a material impact on our Consolidated Financial Statements and disclosures. Business Combinations, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. In October 2021, the FASB issued new guidance which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers . Historically, such amounts were recognized by the acquirer at fair value in acquisition accounting. This new guidance results in the acquirer recognizing contract assets and contract liabilities at the same amounts recorded by the acquiree. On October 2, 2021, the first day of the third quarter of fiscal 2022, we elected to early adopt this guidance retrospectively for all acquisitions in fiscal 2022 and going forward. The adoption of this guidance did not have a material impact on our quarterly fiscal periods prior to adoption or our Consolidated Financial Statements and disclosures. Recently issued authoritative guidance not yet adopted Debt with Conversion and Other Options . In August 2020, the FASB issued new guidance that simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments. The new guidance removes from GAAP the separation models for convertible debt with embedded conversion features. As a result, after adopting the guidance, entities will no longer separately present embedded conversion features in equity. Instead, they will account for the convertible debt wholly as debt. The new guidance also requires use of the if-converted method when calculating the dilutive impact of convertible debt on earnings per share. The standard will be effective during our first quarter of fiscal 2023. It may be applied retrospectively to each prior period presented or retrospectively with cumulative effect recognized in retained earnings as of the date of adoption. We are currently evaluating the impact of the adoption of this guidance on our Consolidated Financial Statements and disclosures. Reference Rate Reform. In March 2020, the FASB issued new guidance providing temporary optional expedients and exceptions to ease the financial reporting burden of the expected market transition from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates, such as the Secured Overnight Financing Rate. The standard was effective upon issuance and may generally be applied through December 31, 2022, to any new or amended contracts, hedging relationships and other transactions that reference LIBOR. We continue to evaluate our contractual arrangements and hedging relationships that reference LIBOR. 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 Statements or disclosures. |
Description of Business and S_3
Description of Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Apr. 01, 2022 | |
Accounting Policies [Abstract] | |
Schedules of Concentration of Risk | Customers which are distributors that accounted for over 10% of our net accounts receivable, are as follows: April 1, 2022 April 2, 2021 Customer A 41 % 46 % Customer B 13 % 9 % |
Divestitures, Discontinued Op_2
Divestitures, Discontinued Operations and Assets Held for Sale (Tables) | 12 Months Ended |
Apr. 01, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Divestitures, Discontinued Operations and Assets Held for Sale | The following table presents information regarding certain components of income (loss) from discontinued operations, net of income taxes during the years ended April 2, 2021 and April 3, 2020. There was no discontinued operations activity during the year ended April 1, 2022. Year Ended (In millions) April 2, 2021 April 3, 2020 Net revenues $ 1 $ 1,368 Gross profit $ 1 $ 1,035 Operating income (loss) $ (177) $ 4 Gain on sale $ — $ 5,434 Income (loss) before income taxes $ (176) $ 5,431 Income tax expense (benefit) $ (34) $ 2,122 Income (loss) from discontinued operations, net of taxes $ (142) $ 3,309 The following table presents significant non-cash items and capital expenditures of discontinued operations during the years ended April 2, 2021 and April 3, 2020. There was no discontinued operations activity during the year ended April 1, 2022. Year Ended (In millions) April 2, 2021 April 3, 2020 Amortization and depreciation $ — $ 130 Stock-based compensation expense $ 1 $ 172 Purchases of property and equipment $ — $ 43 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Apr. 01, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | Our final allocation of the aggregate purchase price for the acquisition as of January 8, 2021, is as follows: (In millions) January 8, 2021 Assets: Current assets $ 12 Intangible assets 162 Goodwill 261 Other long-term asset 21 Total assets acquired 456 Liabilities: Current liabilities 29 Contract liabilities 54 Other long-term obligations 29 Total liabilities assumed 112 Total purchase price $ 344 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Apr. 01, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in the Carrying Amount of Goodwill | The changes in the carrying amount of goodwill are as follows: (In millions) Balance as of April 3, 2020 $ 2,585 Acquisitions 269 Translation adjustments 13 Balance as of April 2, 2021 2,867 Acquisitions 25 Purchase accounting adjustments (7) Translation adjustments (12) Balance as of April 1, 2022 $ 2,873 |
Schedule of Intangible Assets, Net, Indefinite-Lived | April 1, 2022 April 2, 2021 (In millions) Gross Accumulated Net Gross Accumulated Net Customer relationships $ 583 $ (382) $ 201 $ 556 $ (299) $ 257 Developed technology 217 (143) 74 210 (104) 106 Other 8 (3) 5 7 (1) 6 Total finite-lived intangible assets 808 (528) 280 773 (404) 369 Indefinite-lived trade names 743 — 743 747 — 747 Total intangible assets $ 1,551 $ (528) $ 1,023 $ 1,520 $ (404) $ 1,116 |
Schedule of Intangible Assets, Net, Finite-Lived | April 1, 2022 April 2, 2021 (In millions) Gross Accumulated Net Gross Accumulated Net Customer relationships $ 583 $ (382) $ 201 $ 556 $ (299) $ 257 Developed technology 217 (143) 74 210 (104) 106 Other 8 (3) 5 7 (1) 6 Total finite-lived intangible assets 808 (528) 280 773 (404) 369 Indefinite-lived trade names 743 — 743 747 — 747 Total intangible assets $ 1,551 $ (528) $ 1,023 $ 1,520 $ (404) $ 1,116 |
Schedule of Finite-lived Intangible Assets Amortization Expense | Amortization expense for purchased intangible assets is summarized below: Year Ended Consolidated Statements of Operations Classification (In millions) April 1, 2022 April 2, 2021 April 3, 2020 Customer relationships and other $ 85 $ 74 $ 79 Operating expenses Developed technology 39 31 30 Cost of revenues Total $ 124 $ 105 $ 109 |
Schedule of Future Intangible Asset Amortization Expense | As of April 1, 2022, future amortization expense related to intangible assets that have finite lives is as follows by fiscal year: (In millions) April 1, 2022 2023 $ 105 2024 93 2025 32 2026 26 2027 12 Thereafter 12 Total $ 280 |
Supplementary Information (Tabl
Supplementary Information (Tables) | 12 Months Ended |
Apr. 01, 2022 | |
Supplementary Information [Abstract] | |
Schedule of Cash and cash equivalents | Cash and cash equivalents: (In millions) April 1, 2022 April 2, 2021 Cash $ 609 $ 650 Cash equivalents 1,278 283 Total cash and cash equivalents $ 1,887 $ 933 |
Schedule of Accounts receivable, net | Accounts receivable, net: (In millions) April 1, 2022 April 2, 2021 Accounts receivable $ 121 $ 118 Allowance for doubtful accounts (1) (1) Accounts receivable, net $ 120 $ 117 |
Schedule of Other current assets | Other current assets: (In millions) April 1, 2022 April 2, 2021 Prepaid expenses $ 107 $ 95 Income tax receivable and prepaid income taxes 35 96 Other tax receivable 27 31 Other 24 15 Total other current assets $ 193 $ 237 |
Summary of Property and equipment, net | Property and equipment, net: (In millions) April 1, 2022 April 2, 2021 Land $ 2 $ 3 Computer hardware and software 462 479 Office furniture and equipment 27 63 Buildings 27 29 Leasehold improvements 56 58 Construction in progress 1 1 Total property and equipment, gross 575 633 Accumulated depreciation and amortization (515) (555) Total property and equipment, net $ 60 $ 78 |
Schedule of Other long-term assets | Other long-term assets: (In millions) April 1, 2022 April 2, 2021 Non-marketable equity investments $ 178 $ 185 Long-term income tax receivable and prepaid income taxes 25 30 Deferred income tax assets 351 355 Long-term prepaid royalty 53 70 Other 46 46 Total other long-term assets $ 653 $ 686 |
Schedule of Short-term contract liabilities | Short-term contract liabilities: (In millions) April 1, 2022 April 2, 2021 Deferred revenue $ 743 $ 795 Customer deposit liabilities 521 415 Total short-term contract liabilities $ 1,264 $ 1,210 |
Schedule of Other current liabilities | Other current liabilities: (In millions) April 1, 2022 April 2, 2021 Income taxes payable $ 109 $ 111 Other taxes payable 87 82 Accrued legal fees 273 66 Accrued royalties 49 46 Other accrued liabilities 121 123 Total other current liabilities $ 639 $ 428 |
Schedule of Long-term income taxes payable | Long-term income taxes payable: (In millions) April 1, 2022 April 2, 2021 Deemed repatriation tax payable $ 437 $ 525 Other long-term income taxes 3 29 Uncertain tax positions (including interest and penalties) 556 565 Total long-term income taxes payable $ 996 $ 1,119 |
Schedule of Other income (expense), net: | Other income (expense), net: Year Ended (In millions) April 1, 2022 April 2, 2021 April 3, 2020 Interest income $ — $ 4 $ 80 Loss from equity interest — — (31) Foreign exchange gain (loss) (2) 1 (6) Gain on divestitures — — 250 Gain on sale of equity method investment — — 379 (Loss) gain on early extinguishment of debt (3) 20 — Gain on sale of properties 175 98 — Transition service expense, net — (9) (19) Other (7) 6 7 Total other income (expense), net $ 163 $ 120 $ 660 |
Schedule of Supplemental cash flow information | Supplemental cash flow information: Year Ended (In millions) April 1, 2022 April 2, 2021 April 3, 2020 Income taxes paid, net of refunds $ 356 $ 341 $ 1,985 Interest expense paid $ 120 $ 139 $ 179 Cash paid for amounts included in the measurement of operating lease liabilities $ 27 $ 34 $ 51 Non-cash operating activities: Operating lease assets obtained in exchange for operating lease liabilities $ 35 $ 34 $ 15 Reduction of operating lease assets as a result of lease terminations and modifications $ 17 $ 26 $ 34 Non-cash investing and financing activities: Purchases of property and equipment in current liabilities $ 1 $ — $ — Extinguishment of debt with borrowings from same creditors $ 494 $ — $ 1,073 |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurements (Tables) | 12 Months Ended |
Apr. 01, 2022 | |
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: April 1, 2022 April 2, 2021 (In millions) Fair Value Level 1 Level 2 Fair Value Level 1 Level 2 Assets: Money market funds $ 1,278 $ 1,278 $ — $ 284 $ 284 $ — Certificates of deposit — — — 1 — 1 Corporate bonds 4 — 4 17 — 17 Total $ 1,282 $ 1,278 $ 4 $ 302 $ 284 $ 18 |
Schedule of Contractual Maturity of Investments in Debt Securities | The following table presents the contractual maturities of our investments in debt securities as of April 1, 2022: (In millions) Fair Value Due in one year or less $ 4 Total $ 4 |
Schedule of Equity Method Investments | The following table summarizes DigiCert’s results of operations through October 16, 2019, the date of our investment sale. (In millions) Period from January 1, 2019 to October 16, 2019 (unaudited) Revenue $ 350 Gross profit $ 293 Net loss $ (102) |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Apr. 01, 2022 | |
Leases [Abstract] | |
Schedule of Lease Cost and Sublease Income | The following summarizes our lease costs for fiscal 2022, 2021 and 2020: Year Ended (In millions) April 1, 2022 April 2, 2021 April 3, 2020 Operating lease costs $ 16 $ 17 $ 34 Short-term lease costs 2 4 8 Variable lease costs 6 6 21 Total lease costs $ 24 $ 27 $ 63 Other information related to our operating leases for fiscal 2022, 2021 and 2020 was as follows: Year Ended April 1, 2022 April 2, 2021 April 3, 2020 Weighted-average remaining lease term 4.7 years 4.4 years 4.5 years Weighted-average discount rate 4.04 % 4.07 % 4.05 % |
Schedule of Lessee, Operating Lease, Liability, Maturity | As of April 1, 2022, the maturities of our lease liabilities by fiscal year are as follows: (In millions) 2023 $ 22 2024 26 2025 21 2026 15 2027 15 Thereafter 3 Total lease payments 102 Less: Imputed interest (9) Present value of lease liabilities $ 93 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Apr. 01, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Components of Long-Term Debt | The following table summarizes components of our debt: April 1, 2022 April 2, 2021 (In millions, except percentages) Amount Effective Amount Effective New 2.50% Convertible Senior Notes due April 1, 2022 $ — 2.63 % $ 250 2.63 % 3.95% Senior Notes due June 15, 2022 400 4.05 % 400 4.05 % New 2.00% Convertible Unsecured Notes due August 15, 2022 525 2.62 % 625 2.62 % 5.0% Senior Notes due April 15, 2025 1,100 5.00 % 1,100 5.00 % Initial Term Loan due May 7, 2026 1,010 LIBOR plus (1) 494 LIBOR plus (1) Delayed Term Loan due May 7, 2026 703 LIBOR plus (1) 741 LIBOR plus (1) 0.95% Avira Mortgage due December 30, 2030 4 0.95 % 5 0.95 % 1.29% Avira Mortgage due December 30, 2029 5 1.29 % 5 1.29 % Total principal amount 3,747 3,620 Less: unamortized discount and issuance costs (11) (19) Total debt 3,736 3,601 Less: current portion (1,000) (313) Total long-term portion $ 2,736 $ 3,288 (1) The term loans bear interest at a rate equal to the LIBOR plus a margin based on the current debt rating of our non-credit-enhanced, senior unsecured long-term debt, and our underlying loan agreements. The interest rates for the outstanding term loans are as follows: April 1, 2022 April 2, 2021 Initial Term Loan due May 7, 2026 1.75 % 1.50 % Delayed Term Loan due May 7, 2026 1.75 % 1.50 % As of April 1, 2022 and April 2, 2021, the Convertible Senior Notes consisted of the following: April 1, 2022 April 2, 2021 (In millions) New 2.0% Convertible Notes New 2.5% Convertible Notes New 2.0% Convertible Notes Liability component: Principal $ 525 $ 250 $ 625 Unamortized discount and issuance costs (1) — (5) Net carrying amount $ 524 $ 250 $ 620 Equity component, net of tax $ 56 $ 43 $ 56 |
Schedule of Long-Term Debt for Each of the Next Five Years and Thereafter | As of April 1, 2022, the future contractual maturities of debt by fiscal year are as follows: (In millions) 2023 $ 1,001 2024 89 2025 89 2026 1,189 2027 1,376 Thereafter 3 Total future maturities of debt $ 3,747 |
Schedule of Interest Income and Interest Expense Disclosure | The following table sets forth total interest expense recognized related to our convertible notes: Year Ended (In millions) April 1, 2022 April 2, 2021 April 3, 2020 Contractual interest expense $ 12 $ 20 $ 37 Amortization of debt discount and issuance costs $ 4 $ 4 $ 13 Payments in lieu of conversion price adjustments (1) $ 8 $ 12 $ 11 |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Apr. 01, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments, Gain (Loss) | The related gain (loss) recognized in Other income (expense), net in our Consolidated Statements of Operations was as follows: Year Ended (In millions) April 1, 2022 April 2, 2021 April 3, 2020 Foreign exchange forward contracts gain (loss) $ (7) $ 15 $ (22) |
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) April 1, 2022 April 2, 2021 Foreign exchange forward contracts purchased $ 155 $ 270 Foreign exchange forward contracts sold $ 191 $ 68 |
Restructuring and Other Costs (
Restructuring and Other Costs (Tables) | 12 Months Ended |
Apr. 01, 2022 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Costs | Our restructuring and other costs attributable to continuing operations are presented in the table below: Year Ended (In millions) April 1, 2022 April 2, 2021 April 3, 2020 Severance and termination benefit costs $ 5 $ 31 $ 90 Contract cancellation charges 3 51 101 Stock-based compensation charges — 10 20 Asset write-offs and impairments 5 58 47 Other exit and disposal costs 18 11 7 Separation costs — — 1 Total restructuring and other $ 31 $ 161 $ 266 In connection with the agreement to sell certain assets of our Enterprise Security business, a portion of our restructuring and other costs were classified to discontinued operations for all periods presented. Our restructuring and other costs attributable to discontinued operations are presented in the table below. There was no discontinued operations activity during the year ended April 1, 2022. Year Ended (In millions) April 2, 2021 April 3, 2020 Severance and termination benefit costs $ 64 $ 121 Contract cancellation charges — 5 Stock-based compensation charges — 97 Asset write-offs and impairments — 13 Separation costs 2 25 Total restructuring and other $ 66 $ 261 |
Schedule of Restructuring Activities | Our activities and liability balances related to our December 2020 Plan are presented in the tables below: (In millions) Liability Balance as of April 2, 2021 Net Charges Cash Payments Non-Cash Items Liability Balance as of April 1, 2022 Severance and termination benefit costs $ 3 $ 5 $ (8) $ — $ — Other exit and disposal costs — 7 (1) (6) — Total $ 3 $ 12 $ (9) $ (6) $ — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Apr. 01, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of income tax expense (benefit) | The components of our income (loss) from continuing operations before income taxes are as follows: Year Ended (In millions) April 1, 2022 April 2, 2021 April 3, 2020 Domestic $ 791 $ 607 $ 667 International 251 265 152 Income (loss) before income taxes $ 1,042 $ 872 $ 819 The components of income tax expense (benefit) from continuing operations are as follows: Year Ended (In millions) April 1, 2022 April 2, 2021 April 3, 2020 Current: Federal $ 217 $ 133 $ 208 State 50 36 33 International 20 (13) 3 Total 287 156 244 Deferred: Federal (42) (6) (23) State (6) (5) 3 International (33) 31 17 Total (81) 20 (3) Income tax expense $ 206 $ 176 $ 241 |
Schedule of Difference Between Effective Income Tax and Federal Statutory Income Tax | The U.S. federal statutory income tax rates we have applied for fiscal 2022, 2021 and 2020 are as follows: Year Ended April 1, 2022 April 2, 2021 April 3, 2020 U.S. federal statutory income tax rate 21.0 % 21.0 % 21.0 % The difference between our effective income tax and the federal statutory income tax is as follows: Year Ended (In millions) April 1, 2022 April 2, 2021 April 3, 2020 Federal statutory tax expense (benefit) $ 219 $ 183 $ 172 State taxes, net of federal benefit 33 25 22 Foreign earnings taxed at other than the federal rate (47) (10) (2) Federal research and development credit (4) (1) (2) Valuation allowance increase (decrease) 2 1 (57) Change in uncertain tax positions 11 3 60 Stock-based compensation 7 5 5 Nondeductible goodwill — — 18 Favorable ruling on foreign withholding tax — (35) — US tax on foreign earnings 12 (15) (4) Return to provision adjustment (8) 1 12 Other, net — 2 17 Irish FX remeasurement (19) 17 — Income tax expense $ 206 $ 176 $ 241 |
Schedule of Principal Components of Deferred Tax Assets | The principal components of deferred tax assets and liabilities are as follows: (In millions) April 1, 2022 April 2, 2021 Deferred tax assets: Tax credit carryforwards $ 7 $ 2 Net operating loss carryforwards of acquired companies 16 23 Other accruals and reserves not currently tax deductible 84 54 Operating lease liabilities 28 29 Property and equipment 13 17 Intangible assets 123 103 Stock-based compensation 8 7 Other 54 36 Gross deferred tax assets 333 271 Valuation allowance (11) (7) Deferred tax assets, net of valuation allowance 322 264 Deferred tax liabilities: Operating lease assets (21) (25) Goodwill (6) (1) Deferred revenue (2) (1) Unremitted earnings of foreign subsidiaries (16) (15) Prepaids and deferred expenses (1) (2) Discount on convertible debt — (2) Deferred tax liabilities (46) (46) Net deferred tax assets (liabilities) $ 276 $ 218 |
Schedule of Changes in Unrecognized Tax Benefits | The aggregate changes in the balance of gross unrecognized tax benefits were as follows: Year Ended (In millions) April 1, 2022 April 2, 2021 April 3, 2020 Balance at beginning of year $ 548 $ 724 $ 446 Settlements with tax authorities — (37) (5) Lapse of statute of limitations (34) (34) (15) Increase related to prior period tax positions 16 13 77 Decrease related to prior period tax positions (11) (129) (11) Increase related to current year tax positions 8 11 232 Balance at end of year $ 527 $ 548 $ 724 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Apr. 01, 2022 | |
Equity [Abstract] | |
Schedule of Stock Repurchase Program | The following table summarizes activity related to our stock repurchase program during the years ended April 2, 2021 and April 3, 2020: Year Ended (In millions, except per share amounts) April 2, 2021 April 3, 2020 Number of shares repurchased 15 68 Average price per share $ 20.50 $ 22.97 Aggregate purchase price $ 304 $ 1,562 |
Schedule of Accumulated Other Comprehensive Income (Loss) | Components and activities of AOCI, net of tax, were as follows: (In millions) Foreign Currency Translation Adjustments Balance as of April 3, 2020 $ (16) Other comprehensive income (loss) before reclassifications 63 Balance as of April 2, 2021 47 Other comprehensive income (loss) before reclassifications (51) Balance as of April 1, 2022 $ (4) |
Stock-Based Compensation and _2
Stock-Based Compensation and Benefit Plans (Tables) | 12 Months Ended |
Apr. 01, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Restricted Stock Units Activities | RSUs (In millions, except per share and year data) Number of Weighted- Outstanding as of April 2, 2021 5 $ 20.62 Granted 4 $ 22.53 Vested (2) $ 20.89 Forfeited (1) $ 21.07 Outstanding as of April 1, 2022 6 $ 21.80 |
Schedule of PRUs Activity | PRUs (In millions, except per share and year data) Number of Weighted- Outstanding and unvested as of April 2, 2021 1 $ 27.50 Granted 3 $ 28.68 Forfeited (1) $ 28.40 Unvested at April 1, 2022 3 $ 28.50 Vested and unreleased as of April 1, 2022 — Outstanding as of April 1, 2022 3 |
Schedule Of PRUs Valuation Assumptions | The valuation and the underlying weighted-average assumptions for PRUs are summarized below: Year Ended April 1, 2022 April 2, 2021 April 3, 2020 Expected term 3.9 years 2.7 years 1.9 years Expected volatility 37.6 % 42.5 % 38.1 % Risk-free interest rate 1.0 % 0.2 % 1.7 % Expected dividend yield — % — % 1.7 % Weighted-average grant date fair value of PRUs $ 28.68 $ 26.39 $ 21.69 |
Schedule of Stock Option Activities | Stock options (In millions, except per share and year data) Number of Weighted-Average Exercise Price Weighted- Aggregate Intrinsic Outstanding as of April 1, 2021 (1) — $ 5.22 Granted — $ — Exercised (1) — $ 4.73 Canceled — $ — Forfeited and expired (1) — $ 7.01 Outstanding as of April 1, 2022 (1) — $ 5.51 Exercisable as of April 1, 2022 (1) — $ 5.51 3.8 $ 4 (1) The number of shares is less than 1 million. |
Schedule of ESPP Activities | The following table summarizes activity related to the purchase rights issued under the ESPP: Year Ended (In millions) April 1, 2022 April 2, 2021 April 3, 2020 Shares issued under the ESPP 1 1 2 Proceeds from issuance of shares $ 13 $ 14 $ 39 |
Schedule of Stock-based Compensation Expense | The following table summarizes the stock-based compensation expense recognized as a result of these modifications: Year Ended (In millions) April 2, 2021 April 3, 2020 Sales and marketing $ 2 $ 6 Research and development 9 — General and administrative 8 20 Restructuring and other costs 10 20 Discontinued operations 1 99 Total stock-based compensation $ 30 $ 145 Total stock-based compensation expense and the related income tax benefit recognized for all of our equity incentive plans in our Consolidated Statements of Operations were as follows: Year Ended (In millions) April 1, 2022 April 2, 2021 April 3, 2020 Cost of revenues $ 2 $ 1 $ 2 Sales and marketing 19 18 29 Research and development 19 26 30 General and administrative 30 26 58 Restructuring and other costs — 10 20 Other income (expense), net — (1) 1 Total stock-based compensation from continuing operations 70 80 140 Discontinued operations — 1 172 Total stock-based compensation expense $ 70 $ 81 $ 312 Income tax benefit for stock-based compensation expense $ (11) $ (18) $ (55) |
Schedule of Employer 401K Contributions | Our employer matching contributions to the 401(k) plan were as follows, including contributions to employees of our discontinued operations: Year Ended (In millions) April 1, 2022 April 2, 2021 April 3, 2020 401(k) matching contributions $ 3 $ 3 $ 16 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Apr. 01, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Components of Net Income (Loss) Per Share | The components of basic and diluted net income (loss) per share are as follows: Year Ended (In millions, except per share amounts) April 1, 2022 April 2, 2021 April 3, 2020 Income (loss) from continuing operations $ 836 $ 696 $ 578 Income (loss) from discontinued operations — (142) 3,309 Net income (loss) $ 836 $ 554 $ 3,887 Income (loss) per share - basic: Continuing operations $ 1.44 $ 1.18 $ 0.94 Discontinued operations $ — $ (0.24) $ 5.38 Net income per share - basic $ 1.44 $ 0.94 $ 6.32 Income (loss) per share - diluted: Continuing operations $ 1.41 $ 1.16 $ 0.90 Discontinued operations $ — $ (0.24) $ 5.15 Net income per share - diluted $ 1.41 $ 0.92 $ 6.05 Weighted-average shares outstanding - basic 581 589 615 Dilutive potentially issuable shares: Convertible debt 7 8 20 Employee equity awards 3 3 8 Weighted-average shares outstanding - diluted 591 600 643 Anti-dilutive shares excluded from diluted net income (loss) per share calculation: Convertible debt — 8 5 Employee equity awards 1 — 2 Total 1 8 7 |
Schedule of Debt | The conversion price of each convertible debt applicable in the periods presented is as follows: Year Ended April 1, 2022 April 2, 2021 April 3, 2020 2.5% Convertible Senior Notes due April 1, 2022 N/A N/A $ 8.40 2.0% Convertible Senior Notes due August 15, 2022 N/A N/A $ 10.23 New 2.5% Convertible Senior Notes due April 1, 2022 N/A $ 16.77 $ 16.77 New 2.0% Convertible Senior Notes due August 15, 2022 $ 20.41 $ 20.41 $ 20.41 |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 12 Months Ended |
Apr. 01, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Product Revenue Information | The following table summarizes net revenues for our major solutions: Year Ended (In millions) April 1, 2022 April 2, 2021 April 3, 2020 Consumer security $ 1,669 $ 1,513 $ 1,450 Identity and information protection 1,127 1,038 994 ID Analytics — — 46 Total net revenues $ 2,796 $ 2,551 $ 2,490 |
Schedule of Net Revenue by Geographic Location | The following table represents net revenues by geographic area for the periods presented: Year Ended (In millions) April 1, 2022 April 2, 2021 April 3, 2020 Americas $ 1,963 $ 1,827 $ 1,831 EMEA 506 419 376 APJ 327 305 283 Total net revenues $ 2,796 $ 2,551 $ 2,490 Note: The Americas include U.S., Canada, and Latin America; EMEA includes Europe, Middle East, and Africa; APJ includes Asia Pacific and Japan |
Schedule of Cash, Cash Equivalents and Short-term 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) April 1, 2022 April 2, 2021 U.S. $ 1,220 $ 536 International 671 415 Total cash, cash equivalents and short-term investments $ 1,891 $ 951 |
Schedule of Assets by Geographic Location | 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) April 1, 2022 April 2, 2021 U.S. $ 16 $ 28 Ireland 27 32 Germany 13 14 Other countries (1) 4 4 Total property and equipment, net $ 60 $ 78 (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) April 1, 2022 April 2, 2021 U.S. $ 66 $ 55 India 5 9 Other countries (1) 3 12 Total operating lease assets $ 74 $ 76 (1) No individual country represented more than 10% of the respective totals. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Apr. 01, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule Of Unrecognized Purchase Obligations | The following reflects estimated future payments for purchase obligations by fiscal year. The amount of purchase obligations reflects estimated future payments as of April 1, 2022. (In millions) April 1, 2022 2023 $ 353 2024 51 2025 9 2026 6 2027 3 Thereafter 4 Total purchase obligations $ 426 |
Schedule Of Estimated Future Payments For Deemed Repatriation Taxes By Fiscal Year | The following reflects estimated future payments for deemed repatriation taxes by fiscal year: (In millions) April 1, 2022 2023 $ 68 2024 128 2025 171 2026 138 Total obligations $ 505 |
Description of Business and S_4
Description of Business and Summary of Significant Accounting Policies - Additional Information (Details) $ in Millions | 12 Months Ended | ||
Apr. 01, 2022USD ($)option | Apr. 02, 2021USD ($) | Apr. 03, 2020USD ($) | |
Property, Plant and Equipment [Line Items] | |||
Rebate reserves | $ 5 | $ 6 | |
Capitalized software development costs | 0 | 0 | |
Capitalized costs, net | $ 6 | 9 | |
Number of option to renew | option | 1 | ||
Advertising expense | $ 423 | $ 353 | $ 343 |
Intangible assets | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Finite-lived intangible asset, useful life | 1 year | ||
Intangible assets | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Finite-lived intangible asset, useful life | 8 years | ||
Buildings | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, equipment useful life (in years) | 20 years | ||
Buildings | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, equipment useful life (in years) | 30 years | ||
Building Improvements | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, equipment useful life (in years) | 7 years | ||
Building Improvements | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, equipment useful life (in years) | 20 years | ||
Office furniture and equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, equipment useful life (in years) | 3 years | ||
Office furniture and equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, equipment useful life (in years) | 5 years | ||
Software and Software Development Costs | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, equipment useful life (in years) | 3 years |
Description of Business and S_5
Description of Business and Summary of Significant Accounting Policies - Schedules of Concentration Risk (Details) - Credit Risk - Accounts Receivable | 12 Months Ended | |
Apr. 01, 2022 | Apr. 02, 2021 | |
Customer A | ||
Product Information [Line Items] | ||
Concentration risk | 41.00% | 46.00% |
Customer B | ||
Product Information [Line Items] | ||
Concentration risk | 13.00% | 9.00% |
Divestitures, Discontinued Op_3
Divestitures, Discontinued Operations and Assets Held for Sale - Narrative (Details) | Feb. 15, 2022USD ($) | Jul. 14, 2021USD ($) | Apr. 01, 2021USD ($) | Oct. 01, 2020USD ($) | Jul. 27, 2020USD ($) | Jan. 31, 2020USD ($) | Apr. 01, 2022USD ($) | Apr. 02, 2021USD ($) | Apr. 03, 2020USD ($)property | Nov. 04, 2019USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Consideration from sale of properties | $ 0 | |||||||||
Gain on sale of business | 0 | $ 0 | $ 5,684,000,000 | |||||||
Gain on divestitures | 0 | 0 | 250,000,000 | |||||||
Impairment of assets to be disposed of | $ 2,000,000 | 0 | $ 24,000,000 | |||||||
Number of impaired properties | property | 1 | |||||||||
Gain on sale of property | $ 175,000,000 | 98,000,000 | $ 0 | |||||||
Mountain View Buildings | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Sale leaseback transaction, lease terms | 7-year | |||||||||
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 properties | $ 10,700,000,000 | |||||||||
Gain on sale of business | 5,434,000,000 | |||||||||
Total net assets sold | 5,211,000,000 | |||||||||
Assets sold | 7,121,000,000 | |||||||||
Liabilities from divestiture of business | $ 1,910,000,000 | |||||||||
Agreements, aggregate amount | $ 200,000,000 | |||||||||
License period | 5 years 7 months 6 days | |||||||||
Dedicated direct costs, net of charges, for transition services agreement | $ 9,000,000 | $ 19,000,000 | ||||||||
ID Analytics Solutions | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Consideration from sale of properties | $ 375,000,000 | |||||||||
Assets sold | 125,000,000 | |||||||||
Gain on divestitures | 250,000,000 | |||||||||
Goodwill and net intangible assets sold | 114,000,000 | |||||||||
Other assets sold, net of liabilities | 11,000,000 | |||||||||
Tax effect on gain | $ 86,000,000 | |||||||||
Culver City Property | Disposal Group, Held-for-sale, Not Discontinued Operations | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Consideration from sale of properties | $ 118,000,000 | |||||||||
Gain on sale of property | $ 35,000,000 | |||||||||
Mountain View Buildings | Disposal Group, Held-for-sale, Not Discontinued Operations | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Consideration from sale of properties | $ 355,000,000 | $ 100,000,000 | ||||||||
Gain on sale of property | $ 175,000,000 | $ 63,000,000 | ||||||||
Sale leaseback transaction, lease terms | 7-year |
Divestitures, Discontinued Op_4
Divestitures, Discontinued Operations and Assets Held for Sale - Components of Income from Discontinued Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 01, 2022 | Apr. 02, 2021 | Apr. 03, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Income (loss) from discontinued operations, net of taxes | $ 0 | $ (142) | $ 3,309 |
Discontinued Operations, Disposed of by Sale | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net revenues | 1 | 1,368 | |
Gross profit | 1 | 1,035 | |
Operating income (loss) | (177) | 4 | |
Gain on sale | 0 | 5,434 | |
Income (loss) before income taxes | (176) | 5,431 | |
Income tax expense (benefit) | (34) | 2,122 | |
Income (loss) from discontinued operations, net of taxes | $ (142) | $ 3,309 |
Divestitures, Discontinued Op_5
Divestitures, Discontinued Operations and Assets Held for Sale - Schedule of Non-cash Items and Capital Expenditures (Details) - Discontinued operations - USD ($) $ in Millions | 12 Months Ended | |
Apr. 02, 2021 | Apr. 03, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Amortization and depreciation | $ 0 | $ 130 |
Stock-based compensation expense | 1 | 172 |
Purchases of property and equipment | $ 0 | $ 43 |
Business Combinations - Propose
Business Combinations - Proposed merger with Avast (Details) | Jan. 28, 2022USD ($) | Aug. 10, 2021USD ($)$ / shares | Apr. 01, 2022$ / shares | Jul. 13, 2021$ / shares |
Business Acquisition [Line Items] | ||||
Share price (in dollars per share) | $ / shares | $ 26.94 | $ 27.20 | ||
Term Loan Interim Facility B | ||||
Business Acquisition [Line Items] | ||||
Maximum borrowing capacity | $ 3,600,000,000 | |||
Interim Revolving Facility A1 | ||||
Business Acquisition [Line Items] | ||||
Maximum borrowing capacity | 750,000,000 | |||
Term Loan Interim Facility A2 | ||||
Business Acquisition [Line Items] | ||||
Maximum borrowing capacity | 3,500,000,000 | |||
Interim Revolving Facility | ||||
Business Acquisition [Line Items] | ||||
Maximum borrowing capacity | 1,500,000,000 | |||
Line of Credit | ||||
Business Acquisition [Line Items] | ||||
Line of credit facility increase | $ 500,000,000 | |||
Avast plc | Minimum | ||||
Business Acquisition [Line Items] | ||||
Merger, contingent consideration | 8,100,000,000 | |||
Avast plc | Maximum | ||||
Business Acquisition [Line Items] | ||||
Merger, contingent consideration | 8,600,000,000 | |||
Potential merger agreement termination fee | $ 200,000,000 | |||
Avast plc | Cash Option | ||||
Business Acquisition [Line Items] | ||||
Merger share price (in dollars per share) | $ / shares | $ 7.61 | |||
Share of our stock (in dollars per share) | 0.0302 | |||
Avast plc | Equity Option | ||||
Business Acquisition [Line Items] | ||||
Merger share price (in dollars per share) | $ / shares | $ 2.37 | |||
Share of our stock (in dollars per share) | 0.1937 |
Business Combinations - Fiscal
Business Combinations - Fiscal 2022 Acquisition (Details) - USD ($) $ in Millions | Sep. 15, 2021 | Apr. 01, 2022 | Apr. 02, 2021 | Apr. 03, 2020 |
Business Acquisition [Line Items] | ||||
Cash payments, net of cash acquired | $ 39 | $ 344 | $ 0 | |
2022 Acquisition | ||||
Business Acquisition [Line Items] | ||||
Cash payments, net of cash acquired | $ 39 | |||
Cash acquired from acquisition | $ 1 |
Business Combinations - Fisca_2
Business Combinations - Fiscal 2021 Acquisition (Details) - USD ($) $ in Millions | Jan. 08, 2021 | Apr. 01, 2022 | Apr. 02, 2021 | Apr. 03, 2020 |
Business Acquisition [Line Items] | ||||
Cash payments, net of cash acquired | $ 39 | $ 344 | $ 0 | |
Avira | ||||
Business Acquisition [Line Items] | ||||
Cash payments, net of cash acquired | $ 344 | |||
Cash acquired from acquisition | $ 32 | |||
Purchase price allocation measurement period | 1 year |
Business Combinations - Prelimi
Business Combinations - Preliminary Allocation Of The Aggregate Purchase Price (Details) - USD ($) $ in Millions | Apr. 01, 2022 | Apr. 02, 2021 | Jan. 08, 2021 | Apr. 03, 2020 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | ||||
Goodwill | $ 2,873 | $ 2,867 | $ 2,585 | |
Avira | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | ||||
Current assets | $ 12 | |||
Intangible assets | 162 | |||
Goodwill | 261 | |||
Other long-term asset | 21 | |||
Total assets acquired | 456 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | ||||
Current liabilities | 29 | |||
Contract liabilities | 54 | |||
Other long-term obligations | 29 | |||
Total liabilities assumed | 112 | |||
Total purchase price | $ 344 |
Revenues - Additional Informati
Revenues - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Apr. 01, 2022 | Apr. 02, 2021 | |
Revenue from Contract with Customer [Abstract] | ||
Revenue recognized from contract liabilities balance | $ 1,187 | $ 1,050 |
Total remaining performance obligations | 785 | |
Customer deposit liabilities | $ 521 | $ 415 |
Revenues - Remaining Performanc
Revenues - Remaining Performance Obligations (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-03 | Apr. 01, 2022 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Percent expected to be recognized as revenue | 94.00% |
Expected timing of satisfaction | 12 months |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of Changes in the Carrying Amount of Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Apr. 01, 2022 | Apr. 02, 2021 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 2,867 | $ 2,585 |
Acquisitions | 25 | 269 |
Purchase accounting adjustments | (7) | |
Translation adjustments | (12) | 13 |
Ending balance | $ 2,873 | $ 2,867 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Intangible Assets, Net (Details) - USD ($) $ in Millions | Apr. 01, 2022 | Apr. 02, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 808 | $ 773 |
Accumulated Amortization | (528) | (404) |
Net Carrying Amount | 280 | 369 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Gross Carrying Amount | 1,551 | 1,520 |
Gross Carrying Amount | 808 | 773 |
Net Carrying Amount | 1,023 | 1,116 |
Trade Names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived trade names | 743 | 747 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 583 | 556 |
Accumulated Amortization | (382) | (299) |
Net Carrying Amount | 201 | 257 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Gross Carrying Amount | 583 | 556 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 217 | 210 |
Accumulated Amortization | (143) | (104) |
Net Carrying Amount | 74 | 106 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Gross Carrying Amount | 217 | 210 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 8 | 7 |
Accumulated Amortization | (3) | (1) |
Net Carrying Amount | 5 | 6 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Gross Carrying Amount | $ 8 | $ 7 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule of Amortization Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 01, 2022 | Apr. 02, 2021 | Apr. 03, 2020 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets | $ 85 | $ 74 | $ 79 |
Segment Reconciling Items | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets | 124 | 105 | 109 |
Customer relationships | Operating expenses | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets | 85 | 74 | 79 |
Developed technology | Cost of revenues | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets | $ 39 | $ 31 | $ 30 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Schedule of Future Intangible Asset Amortization Expense (Details) - USD ($) $ in Millions | Apr. 01, 2022 | Apr. 02, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2023 | $ 105 | |
2024 | 93 | |
2025 | 32 | |
2026 | 26 | |
2027 | 12 | |
Thereafter | 12 | |
Net Carrying Amount | $ 280 | $ 369 |
Supplementary Information - Cas
Supplementary Information - Cash and Cash Equivalents (Details) - USD ($) $ in Millions | Apr. 01, 2022 | Apr. 02, 2021 |
Supplementary Information [Abstract] | ||
Cash | $ 609 | $ 650 |
Cash equivalents | 1,278 | 283 |
Total cash and cash equivalents | $ 1,887 | $ 933 |
Supplementary Information - Acc
Supplementary Information - Accounts Receivable, Net (Details) - USD ($) $ in Millions | Apr. 01, 2022 | Apr. 02, 2021 |
Supplementary Information [Abstract] | ||
Accounts receivable | $ 121 | $ 118 |
Allowance for doubtful accounts | (1) | (1) |
Accounts receivable, net | $ 120 | $ 117 |
Supplementary Information - Oth
Supplementary Information - Other Current Assets (Details) - USD ($) $ in Millions | Apr. 01, 2022 | Apr. 02, 2021 |
Supplementary Information [Abstract] | ||
Prepaid expenses | $ 107 | $ 95 |
Income tax receivable and prepaid income taxes | 35 | 96 |
Other tax receivable | 27 | 31 |
Other | 24 | 15 |
Total other current assets | $ 193 | $ 237 |
Supplementary Information - Pro
Supplementary Information - Property and Equipment (Details) - USD ($) $ in Millions | Apr. 01, 2022 | Apr. 02, 2021 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | $ 575 | $ 633 |
Accumulated depreciation and amortization | (515) | (555) |
Property and equipment, net | 60 | 78 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 2 | 3 |
Computer hardware and software | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 462 | 479 |
Office furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 27 | 63 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 27 | 29 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 56 | 58 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | $ 1 | $ 1 |
Supplementary Information - Nar
Supplementary Information - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 01, 2022 | Apr. 02, 2021 | Apr. 03, 2020 | |
Supplementary Information [Abstract] | |||
Depreciation and amortization | $ 16 | $ 45 | $ 122 |
Supplementary Information - O_2
Supplementary Information - Other Long-term Assets (Details) - USD ($) $ in Millions | Apr. 01, 2022 | Apr. 02, 2021 |
Supplementary Information [Abstract] | ||
Non-marketable equity investments | $ 178 | $ 185 |
Long-term income tax receivable and prepaid income taxes | 25 | 30 |
Deferred income tax assets | 351 | 355 |
Long-term prepaid royalty | 53 | 70 |
Other | 46 | 46 |
Total other long-term assets | $ 653 | $ 686 |
Supplementary Information - Sho
Supplementary Information - Short-term Contract Liabilities (Details) - USD ($) $ in Millions | Apr. 01, 2022 | Apr. 02, 2021 |
Supplemental Information [Abstract] | ||
Deferred revenue | $ 743 | $ 795 |
Customer deposit liabilities | 521 | 415 |
Contract liabilities | $ 1,264 | $ 1,210 |
Supplementary Information - O_3
Supplementary Information - Other Current Liabilities (Details) - USD ($) $ in Millions | Apr. 01, 2022 | Apr. 02, 2021 |
Supplemental Information [Abstract] | ||
Income taxes payable | $ 109 | $ 111 |
Other taxes payable | 87 | 82 |
Accrued legal fees | 273 | 66 |
Accrued royalties | 49 | 46 |
Other accrued liabilities | 121 | 123 |
Total other current liabilities | $ 639 | $ 428 |
Supplementary Information - Lon
Supplementary Information - Long-term Income Taxes Payable (Details) - USD ($) $ in Millions | Apr. 01, 2022 | Apr. 02, 2021 |
Supplementary Information [Abstract] | ||
Deemed repatriation tax payable | $ 437 | $ 525 |
Other long-term income taxes | 3 | 29 |
Uncertain tax positions (including interest and penalties) | 556 | 565 |
Total long-term income taxes payable | $ 996 | $ 1,119 |
Supplementary Information - Tot
Supplementary Information - Total Other Income, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 01, 2022 | Apr. 02, 2021 | Apr. 03, 2020 | |
Supplementary Information [Abstract] | |||
Interest income | $ 0 | $ 4 | $ 80 |
Loss from equity interest | 0 | 0 | (31) |
Foreign exchange gain (loss) | (2) | 1 | (6) |
Gain on divestitures | 0 | 0 | 250 |
Gain on sale of equity method investment | 0 | 0 | 379 |
Loss (gain) on extinguishment of debt | (3) | 20 | 0 |
Gain on sale of property | 175 | 98 | 0 |
Transition service expense, net | 0 | (9) | (19) |
Other | (7) | 6 | 7 |
Other income (expense), net | $ 163 | $ 120 | $ 660 |
Supplementary Information - Non
Supplementary Information - Non-cash Investing and Financing Activities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 01, 2022 | Apr. 02, 2021 | Apr. 03, 2020 | |
Supplementary Information [Abstract] | |||
Income taxes paid, net of refunds | $ 356 | $ 341 | $ 1,985 |
Interest expense paid | 120 | 139 | 179 |
Cash paid for amounts included in the measurement of operating lease liabilities | 27 | 34 | 51 |
Non-cash operating activities: | |||
Operating lease assets obtained in exchange for operating lease liabilities | 35 | 34 | 15 |
Reduction of operating lease assets as a result of lease terminations and modifications | 17 | 26 | 34 |
Non-cash investing and financing activities: | |||
Purchases of property and equipment in current liabilities | 1 | 0 | 0 |
Extinguishment of debt with borrowings from same creditors | $ 494 | $ 0 | $ 1,073 |
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 | Apr. 01, 2022 | Apr. 02, 2021 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | $ 1,282 | $ 302 |
Fair Value | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | 0 | 1 |
Fair Value | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | 4 | 17 |
Fair Value | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 1,278 | 284 |
Reported Value Measurement | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 1,278 | 284 |
Reported Value Measurement | Level 1 | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | 0 | 0 |
Reported Value Measurement | Level 1 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | 0 | 0 |
Reported Value Measurement | Level 1 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 1,278 | 284 |
Reported Value Measurement | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 4 | 18 |
Reported Value Measurement | Level 2 | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | 0 | 1 |
Reported Value Measurement | Level 2 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | 4 | 17 |
Reported Value Measurement | Level 2 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | $ 0 | $ 0 |
Financial Instruments and Fai_4
Financial Instruments and Fair Value Measurements - Schedule of Debt Securities (Details) $ in Millions | Apr. 01, 2022USD ($) |
Fair Value Disclosures [Abstract] | |
Due in one year or less | $ 4 |
Total | $ 4 |
Financial Instruments and Fai_5
Financial Instruments and Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 01, 2022 | Apr. 02, 2021 | Apr. 03, 2020 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Carrying value of non-marketable equity investments | $ 178 | $ 185 | |
Proceeds from sale of equity method investment | 0 | 0 | $ 380 |
Gain on sale | 0 | 0 | 379 |
Loss from equity interest | 0 | 0 | $ 31 |
Equity method investment, operation results lag period | 3 months | ||
DigiCert | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Proceeds from sale of equity method investment | $ 380 | ||
Gain on sale | 379 | ||
DigiCert | Other Income | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Loss from equity interest | $ 31 | ||
Level 2 | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fair value of debt | $ 2,021 | $ 2,400 |
Financial Instruments and Fai_6
Financial Instruments and Fair Value Measurements - Schedule of Equity Method Investments Summarized Information (Details) - USD ($) $ in Millions | 10 Months Ended | 12 Months Ended | ||
Oct. 16, 2019 | Apr. 01, 2022 | Apr. 02, 2021 | Apr. 03, 2020 | |
Schedule of Equity Method Investments [Line Items] | ||||
Gross profit | $ 2,388 | $ 2,189 | $ 2,097 | |
Equity Method Investment, Nonconsolidated Investee | DigiCert | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Revenue | $ 350 | |||
Gross profit | 293 | |||
Net loss | $ (102) |
Leases - Narrative (Details)
Leases - Narrative (Details) | Apr. 01, 2022 |
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 | 8 years |
Maximum | Equipment | |
Property, Plant and Equipment [Line Items] | |
Operating lease, term of contract | 3 years |
Maximum | Data Center Co-locations | |
Property, Plant and Equipment [Line Items] | |
Operating lease, term of contract | 6 years |
Leases - Narrative - Sale Lease
Leases - Narrative - Sale Leaseback (Details) - USD ($) | Jul. 14, 2021 | Apr. 01, 2021 | Apr. 01, 2022 | Apr. 02, 2021 | Apr. 03, 2020 |
Sale Leaseback Transaction [Line Items] | |||||
Consideration from sale of properties | $ 0 | ||||
Gain on sale of property | $ 175,000,000 | $ 98,000,000 | $ 0 | ||
Disposal Group, Held-for-sale, Not Discontinued Operations | Mountain View Buildings | |||||
Sale Leaseback Transaction [Line Items] | |||||
Consideration from sale of properties | $ 355,000,000 | $ 100,000,000 | |||
Sale leaseback transaction, lease terms | 7-year | ||||
Sale leaseback transaction, lease terms, optional renewal period (in years) | 5 years | ||||
Gain on sale of property | $ 175,000,000 | $ 63,000,000 |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 01, 2022 | Apr. 02, 2021 | Apr. 03, 2020 | |
Leases [Abstract] | |||
Operating lease costs | $ 16 | $ 17 | $ 34 |
Short-term lease costs | 2 | 4 | 8 |
Variable lease costs | 6 | 6 | 21 |
Total lease costs | $ 24 | $ 27 | $ 63 |
Leases - Operating Lease Inform
Leases - Operating Lease Information (Details) | Apr. 01, 2022 | Apr. 02, 2021 | Apr. 03, 2020 |
Leases [Abstract] | |||
Weighted-average remaining lease term | 4 years 8 months 12 days | 4 years 4 months 24 days | 4 years 6 months |
Weighted-average discount rate | 4.04% | 4.07% | 4.05% |
Leases - Maturity of Lease Liab
Leases - Maturity of Lease Liabilities (Details) $ in Millions | Apr. 01, 2022USD ($) |
Leases [Abstract] | |
2023 | $ 22 |
2024 | 26 |
2025 | 21 |
2026 | 15 |
2027 | 15 |
Thereafter | 3 |
Total lease payments | 102 |
Less: Imputed interest | (9) |
Present value of lease liabilities | $ 93 |
Debt - Schedule Of Components O
Debt - Schedule Of Components Of Debt (Details) - USD ($) $ in Millions | Apr. 01, 2022 | Apr. 02, 2021 |
Debt Instrument [Line Items] | ||
Total principal amount | $ 3,747 | $ 3,620 |
Less: unamortized discount and issuance costs | (11) | (19) |
Total debt | 3,736 | 3,601 |
Less: current portion | (1,000) | (313) |
Total long-term portion | $ 2,736 | 3,288 |
Convertible Debt | New 2.50% Convertible Senior Notes due April 1, 2022 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 2.50% | |
Total principal amount | $ 0 | $ 250 |
Effective Interest Rate | 2.63% | 2.63% |
Convertible Debt | New 2.00% Convertible Unsecured Notes due August 15, 2022 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 2.00% | |
Total principal amount | $ 525 | $ 625 |
Effective Interest Rate | 2.62% | 2.62% |
Senior Notes | 3.95% Senior Notes due June 15, 2022 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 3.95% | |
Total principal amount | $ 400 | $ 400 |
Effective Interest Rate | 4.05% | 4.05% |
Senior Notes | 5.0% Senior Notes due April 15, 2025 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 5.00% | |
Total principal amount | $ 1,100 | $ 1,100 |
Effective Interest Rate | 5.00% | 5.00% |
Unsecured Debt | Initial Term Loan due May 7, 2026 | ||
Debt Instrument [Line Items] | ||
Total principal amount | $ 1,010 | $ 494 |
Weighted average interest rate | 1.75% | 1.50% |
Unsecured Debt | Delayed Term Loan due May 7, 2026 | ||
Debt Instrument [Line Items] | ||
Total principal amount | $ 703 | $ 741 |
Weighted average interest rate | 1.75% | 1.50% |
Mortgages | 0.95% Avira Mortgage due December 30, 2030 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 0.95% | |
Total principal amount | $ 4 | $ 5 |
Effective Interest Rate | 0.95% | 0.95% |
Mortgages | 1.29% Avira Mortgage due December 30, 2029 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 1.29% | |
Total principal amount | $ 5 | $ 5 |
Effective Interest Rate | 1.29% | 1.29% |
Debt - Schedule Of Long-Term De
Debt - Schedule Of Long-Term Debt For Each Of The Next Five Years And Thereafter (Details) - USD ($) $ in Millions | Apr. 01, 2022 | Apr. 02, 2021 |
Debt Disclosure [Abstract] | ||
2023 | $ 1,001 | |
2024 | 89 | |
2025 | 89 | |
2026 | 1,189 | |
2027 | 1,376 | |
Thereafter | 3 | |
Total future maturities of debt | $ 3,747 | $ 3,620 |
Debt - Narrative (Details)
Debt - Narrative (Details) | Mar. 18, 2022USD ($)$ / shares | Jan. 28, 2022USD ($) | Aug. 10, 2021USD ($) | May 20, 2021USD ($)$ / shares | Sep. 14, 2020USD ($) | May 26, 2020USD ($)$ / shares | Mar. 10, 2020USD ($) | Mar. 05, 2020USD ($)$ / shares | Feb. 04, 2020USD ($)$ / shares | Jan. 31, 2020USD ($)$ / shares | Nov. 11, 2019USD ($)$ / shares | Nov. 04, 2019USD ($) | Feb. 09, 2017USD ($)seniorNote | Apr. 01, 2022USD ($)$ / shares | Apr. 02, 2021USD ($)$ / shares | Apr. 03, 2020USD ($)$ / shares | Jul. 13, 2021$ / shares | May 07, 2021USD ($) | Sep. 15, 2020USD ($) | Aug. 01, 2016USD ($) | Mar. 04, 2016USD ($) |
Debt Instrument [Line Items] | |||||||||||||||||||||
Long-term debt | $ 3,736,000,000 | $ 3,601,000,000 | |||||||||||||||||||
Aggregater principal amount | 3,747,000,000 | 3,620,000,000 | |||||||||||||||||||
Gain (loss) on extinguishment of debt | (3,000,000) | 20,000,000 | $ 0 | ||||||||||||||||||
Special dividend (in dollars per share) | $ / shares | $ 12 | ||||||||||||||||||||
Extinguishment of debt with borrowings from the same creditors | 494,000,000 | 0 | 1,073,000,000 | ||||||||||||||||||
Payment for debt extinguishment | 0 | 0 | 546,000,000 | ||||||||||||||||||
Payment of accrued interest | $ 120,000,000 | 139,000,000 | 179,000,000 | ||||||||||||||||||
Share price (in dollars per share) | $ / shares | $ 26.94 | $ 27.20 | |||||||||||||||||||
Senior Notes | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Number of debt instrument | seniorNote | 2 | ||||||||||||||||||||
Convertible Debt | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Gain (loss) on extinguishment of debt | $ 2,000,000 | ||||||||||||||||||||
Conversion period prior to maturity dates | 6 months | ||||||||||||||||||||
Payments in lieu of conversion price adjustments | $ 8,000,000 | 12,000,000 | $ 11,000,000 | ||||||||||||||||||
Initial Term Loan due May 7, 2026 | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Debt instrument term | 5 years | ||||||||||||||||||||
Debt Instrument, face amount | $ 500,000,000 | ||||||||||||||||||||
Delayed Term Loan due May 7, 2026 | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Debt instrument term | 5 years | ||||||||||||||||||||
Debt Instrument, face amount | $ 750,000,000 | ||||||||||||||||||||
Quarterly installment payment (as a percent) | 1.25% | ||||||||||||||||||||
Delayed Draw Term Loan Due November 4, 2024 | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Amount drawn from credit agreement | $ 750,000,000 | ||||||||||||||||||||
First Amendment Additional Term Loan | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Debt Instrument, face amount | $ 525,000,000 | ||||||||||||||||||||
Credit Agreement, First Amendment | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Long-term debt | $ 1,741,000,000 | ||||||||||||||||||||
Quarterly installment payment (as a percent) | 1.25% | ||||||||||||||||||||
2019 Credit Facility | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Leverage ratio | 5.25 | ||||||||||||||||||||
Leverage ratio if acquisition incurred | 5.75 | ||||||||||||||||||||
Aggregate acquisition amount benchmark | $ 250,000,000 | ||||||||||||||||||||
2019 Credit Facility | Minimum | Base Rate | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Basis spread on variable rate | 0.125% | ||||||||||||||||||||
2019 Credit Facility | Minimum | LIBOR | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Basis spread on variable rate | 1.125% | ||||||||||||||||||||
2019 Credit Facility | Maximum | Base Rate | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Basis spread on variable rate | 0.75% | ||||||||||||||||||||
2019 Credit Facility | Maximum | LIBOR | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Basis spread on variable rate | 1.75% | ||||||||||||||||||||
5.0% Senior Notes due April 15, 2025 | Senior Notes | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Aggregater principal amount | $ 1,100,000,000 | ||||||||||||||||||||
Stated interest rate | 5.00% | ||||||||||||||||||||
4.2% Senior Notes Due September 15, 2020 | Senior Notes | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Debt Instrument, face amount | $ 750,000,000 | ||||||||||||||||||||
Stated interest rate | 4.20% | 4.20% | |||||||||||||||||||
3.95% Senior Notes due June 15, 2022 | Senior Notes | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Stated interest rate | 3.95% | ||||||||||||||||||||
2.5% Convertible Senior Notes due April 1, 2022 | Convertible Debt | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Debt Instrument, face amount | $ 500,000,000 | ||||||||||||||||||||
Stated interest rate | 2.50% | 2.50% | 2.50% | 2.50% | 2.50% | ||||||||||||||||
Extinguishment of debt with borrowings from the same creditors | $ 250,000,000 | ||||||||||||||||||||
Conversion price (in dollars per share) | $ / shares | $ 8.40 | ||||||||||||||||||||
2.0% Convertible Senior Notes due August 15, 2022 | Convertible Debt | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Debt Instrument, face amount | $ 1,250,000,000 | ||||||||||||||||||||
Stated interest rate | 2.00% | 2.00% | 2.00% | 2.00% | |||||||||||||||||
Extinguishment of debt with borrowings from the same creditors | $ 625,000,000 | ||||||||||||||||||||
Conversion price (in dollars per share) | $ / shares | 10.23 | ||||||||||||||||||||
Payment for debt extinguishment | $ 1,176,000,000 | ||||||||||||||||||||
Exchange and extinguishment of convertible notes, equity adjustment | 578,000,000 | ||||||||||||||||||||
New 2.5% Convertible Senior Notes due April 1, 2022 | Convertible Debt | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Debt Instrument, face amount | $ 250,000,000 | $ 250,000,000 | $ 250,000,000 | ||||||||||||||||||
Long-term debt | 250,000,000 | ||||||||||||||||||||
Aggregater principal amount | $ 250,000,000 | ||||||||||||||||||||
Stated interest rate | 2.50% | 2.50% | 2.50% | 2.50% | |||||||||||||||||
Gain (loss) on extinguishment of debt | $ (2,000,000) | $ (1,000,000) | |||||||||||||||||||
Cash notes payments per share (in dollars per share) | $ / shares | $ 12 | ||||||||||||||||||||
Conversion ratio | 0.0596341 | 0.1189814 | |||||||||||||||||||
Conversion price (in dollars per share) | $ / shares | $ 24.40 | $ 19 | $ 16.77 | $ 8.40 | $ 16.77 | 16.77 | |||||||||||||||
Cash note payments | $ 179,000,000 | ||||||||||||||||||||
Payment for debt extinguishment | $ 364,000,000 | $ 566,000,000 | |||||||||||||||||||
Payment of accrued interest | 1,000,000 | 2,000,000 | |||||||||||||||||||
Payments in lieu of conversion price adjustments | 1,000,000 | $ 1,000,000 | |||||||||||||||||||
Exchange and extinguishment of convertible notes, equity adjustment | $ 112,000,000 | $ 316,000,000 | |||||||||||||||||||
New 2.0% Convertible Senior Notes due August 15, 2022 | Convertible Debt | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Debt Instrument, face amount | $ 100,000,000 | $ 625,000,000 | $ 625,000,000 | ||||||||||||||||||
Long-term debt | 524,000,000 | $ 620,000,000 | |||||||||||||||||||
Aggregater principal amount | $ 525,000,000 | $ 625,000,000 | |||||||||||||||||||
Stated interest rate | 2.00% | 2.00% | 2.00% | 2.00% | 2.00% | ||||||||||||||||
Gain (loss) on extinguishment of debt | $ 1,000,000 | $ 20,000,000 | |||||||||||||||||||
Cash notes payments per share (in dollars per share) | $ / shares | $ 12 | ||||||||||||||||||||
Conversion ratio | 0.0489860 | 0.0977364 | |||||||||||||||||||
Conversion price (in dollars per share) | $ / shares | $ 28.32 | $ 19.25 | $ 20.41 | $ 10.23 | $ 20.41 | $ 20.41 | $ 20.41 | ||||||||||||||
Cash note payments | $ 367,000,000 | ||||||||||||||||||||
Payment for debt extinguishment | $ 139,000,000 | ||||||||||||||||||||
Payment of accrued interest | $ 3,000,000 | ||||||||||||||||||||
Exchange and extinguishment of convertible notes, equity adjustment | $ 40,000,000 | ||||||||||||||||||||
Debt instrument, if-converted, value in excess of principal | $ 168,000,000 | ||||||||||||||||||||
Revolving Credit Facility | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Maximum borrowing capacity | $ 1,000,000,000 | ||||||||||||||||||||
Revolving Credit Facility | Line of Credit | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Line of credit, amount outstanding | $ 0 | ||||||||||||||||||||
Revolving Credit Facility | 2019 Credit Facility | Minimum | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Commitment fee | 0.125% | ||||||||||||||||||||
Revolving Credit Facility | 2019 Credit Facility | Maximum | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Commitment fee | 0.30% | ||||||||||||||||||||
Term Loan Interim Facility B | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Maximum borrowing capacity | $ 3,600,000,000 | ||||||||||||||||||||
Debt instrument term | 7 years | ||||||||||||||||||||
Interim Revolving Facility A1 | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Maximum borrowing capacity | $ 750,000,000 | ||||||||||||||||||||
Debt instrument term | 60 days | ||||||||||||||||||||
Term Loan Interim Facility A2 | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Maximum borrowing capacity | $ 3,500,000,000 | ||||||||||||||||||||
Debt instrument term | 5 years | ||||||||||||||||||||
Interim Revolving Facility | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Maximum borrowing capacity | $ 1,500,000,000 | ||||||||||||||||||||
Debt instrument term | 5 years | ||||||||||||||||||||
Line of Credit | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Line of credit facility increase | $ 500,000,000 |
Debt - Schedule of Convertible
Debt - Schedule of Convertible Senior Notes (Details) - USD ($) $ in Millions | Apr. 01, 2022 | Mar. 18, 2022 | May 20, 2021 | Apr. 02, 2021 | May 26, 2020 | Mar. 05, 2020 | Feb. 04, 2020 | Nov. 11, 2019 |
Debt Instrument [Line Items] | ||||||||
Total principal amount | $ 3,747 | $ 3,620 | ||||||
Unamortized discount and issuance costs | (11) | (19) | ||||||
Total debt | $ 3,736 | 3,601 | ||||||
Convertible Debt | New 2.0% Convertible Senior Notes due August 15, 2022 | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate | 2.00% | 2.00% | 2.00% | 2.00% | 2.00% | |||
Total principal amount | $ 525 | 625 | ||||||
Unamortized discount and issuance costs | (1) | (5) | ||||||
Total debt | 524 | 620 | ||||||
Equity component, net of tax | $ 56 | 56 | ||||||
Convertible Debt | New 2.5% Convertible Senior Notes due April 1, 2022 | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate | 2.50% | 2.50% | 2.50% | 2.50% | ||||
Total principal amount | 250 | |||||||
Unamortized discount and issuance costs | 0 | |||||||
Total debt | 250 | |||||||
Equity component, net of tax | $ 43 |
Debt - Schedule of Interest Exp
Debt - Schedule of Interest Expense and Debt Discount and Issuance Costs (Details) - Convertible Debt - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 01, 2022 | Apr. 02, 2021 | Apr. 03, 2020 | |
Debt Instrument [Line Items] | |||
Contractual interest expense | $ 12 | $ 20 | $ 37 |
Amortization of debt discount and issuance costs | 4 | 4 | 13 |
Payments in lieu of conversion price adjustments | $ 8 | $ 12 | $ 11 |
Derivatives (Details)
Derivatives (Details) - Foreign Exchange Forward - Not Designated as Hedging Instrument - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 01, 2022 | Apr. 02, 2021 | Apr. 03, 2020 | |
Purchased | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount | $ 155 | $ 270 | |
Sold | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount | 191 | 68 | |
Other income (expense), net | |||
Derivatives, Fair Value [Line Items] | |||
Foreign exchange forward contracts gain (loss) | $ (7) | $ 15 | $ (22) |
Restructuring and Other Costs -
Restructuring and Other Costs - Narrative (Details) - USD ($) | Apr. 01, 2022 | Apr. 02, 2021 | Apr. 03, 2020 |
Restructuring Cost and Reserve [Line Items] | |||
Consideration from sale of properties | $ 0 | ||
December 2020 Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Cumulative restructuring cost incurred to date | 24,000,000 | ||
November 2019 Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Cumulative restructuring cost incurred to date | $ 528,000,000 | ||
November 2019 Plan | Equity Based Severance Program | |||
Restructuring Cost and Reserve [Line Items] | |||
Cumulative restructuring cost incurred to date | $ 127,000,000 | ||
August 2019 Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Cumulative restructuring cost incurred to date | $ 53,000,000 |
Restructuring and Other Costs_2
Restructuring and Other Costs - Schedule of Restructuring and other costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 01, 2022 | Apr. 02, 2021 | Apr. 03, 2020 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other costs | $ 31 | $ 161 | $ 266 |
Continuing Operations | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other costs | 31 | 161 | 266 |
Discontinued operations | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other costs | 66 | 261 | |
Severance and termination benefit costs | Continuing Operations | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other costs | 5 | 31 | 90 |
Severance and termination benefit costs | Discontinued operations | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other costs | 64 | 121 | |
Contract cancellation charges | Continuing Operations | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other costs | 3 | 51 | 101 |
Contract cancellation charges | Discontinued operations | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other costs | 0 | 5 | |
Stock-based compensation charges | Continuing Operations | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other costs | 0 | 10 | 20 |
Stock-based compensation charges | Discontinued operations | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other costs | 0 | 97 | |
Asset write-offs and impairments | Continuing Operations | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other costs | 5 | 58 | 47 |
Asset write-offs and impairments | Discontinued operations | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other costs | 0 | 13 | |
Other exit and disposal costs | Continuing Operations | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other costs | 18 | 11 | 7 |
Separation costs | Continuing Operations | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other costs | $ 0 | 0 | 1 |
Separation costs | Discontinued operations | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other costs | $ 2 | $ 25 |
Restructuring and Other Costs_3
Restructuring and Other Costs - Restructuring Summary (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 01, 2022 | Apr. 02, 2021 | Apr. 03, 2020 | |
Restructuring Reserve [Roll Forward] | |||
Net Charges | $ 31 | $ 161 | $ 266 |
December 2020 Plan | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 3 | ||
Net Charges | 12 | ||
Cash Payments | (9) | ||
Non-Cash Items | (6) | ||
Ending balance | 0 | 3 | |
December 2020 Plan | Severance and termination benefit costs | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 3 | ||
Net Charges | 5 | ||
Cash Payments | (8) | ||
Non-Cash Items | 0 | ||
Ending balance | 0 | 3 | |
December 2020 Plan | Other exit and disposal costs | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 0 | ||
Net Charges | 7 | ||
Cash Payments | (1) | ||
Non-Cash Items | (6) | ||
Ending balance | $ 0 | $ 0 |
Income Taxes - Components Of Ou
Income Taxes - Components Of Our Income (loss) From Continuing Operations Before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 01, 2022 | Apr. 02, 2021 | Apr. 03, 2020 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 791 | $ 607 | $ 667 |
International | 251 | 265 | 152 |
Income (loss) from continuing operations before income taxes | $ 1,042 | $ 872 | $ 819 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 01, 2022 | Apr. 02, 2021 | Apr. 03, 2020 | |
Current: | |||
Federal | $ 217 | $ 133 | $ 208 |
State | 50 | 36 | 33 |
International | 20 | (13) | 3 |
Total | 287 | 156 | 244 |
Deferred: | |||
Federal | (42) | (6) | (23) |
State | (6) | (5) | 3 |
International | (33) | 31 | 17 |
Total | (81) | 20 | (3) |
Income tax expense | $ 206 | $ 176 | $ 241 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate, Federal Statutory Income Tax Rate (Details) | 12 Months Ended | ||
Apr. 01, 2022 | Apr. 02, 2021 | Apr. 03, 2020 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory income tax rate, percent | 21.00% | 21.00% | 21.00% |
Income Taxes - Schedule Of Diff
Income Taxes - Schedule Of Difference Between Effective Income Tax And Federal Statutory Income Tax (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 01, 2022 | Apr. 02, 2021 | Apr. 03, 2020 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory tax expense (benefit) | $ 219 | $ 183 | $ 172 |
State taxes, net of federal benefit | 33 | 25 | 22 |
Foreign earnings taxed at other than the federal rate | (47) | (10) | (2) |
Federal research and development credit | (4) | (1) | (2) |
Valuation allowance increase (decrease) | 2 | 1 | (57) |
Change in uncertain tax positions | 11 | 3 | 60 |
Stock-based compensation | 7 | 5 | 5 |
Nondeductible goodwill | 0 | 0 | 18 |
Favorable ruling on foreign withholding tax | 0 | (35) | 0 |
US tax on foreign earnings | 12 | (15) | (4) |
Return to provision adjustment | (8) | 1 | 12 |
Other, net | 0 | 2 | 17 |
Irish FX remeasurement | (19) | 17 | 0 |
Income tax expense | $ 206 | $ 176 | $ 241 |
Income Taxes - Principal Compon
Income Taxes - Principal Components Of Deferred Tax Assets (Details) - USD ($) $ in Millions | Apr. 01, 2022 | Apr. 02, 2021 |
Deferred tax assets: | ||
Tax credit carryforwards | $ 7 | $ 2 |
Net operating loss carryforwards of acquired companies | 16 | 23 |
Other accruals and reserves not currently tax deductible | 84 | 54 |
Operating lease liabilities | 28 | 29 |
Property and equipment | 13 | 17 |
Intangible assets | 123 | 103 |
Stock-based compensation | 8 | 7 |
Other | 54 | 36 |
Gross deferred tax assets | 333 | 271 |
Valuation allowance | (11) | (7) |
Deferred tax assets, net of valuation allowance | 322 | 264 |
Deferred tax liabilities: | ||
Operating lease assets | (21) | (25) |
Goodwill | (6) | (1) |
Deferred revenue | (2) | (1) |
Unremitted earnings of foreign subsidiaries | (16) | (15) |
Prepaids and deferred expenses | (1) | (2) |
Discount on convertible debt | 0 | (2) |
Deferred tax liabilities | (46) | (46) |
Net deferred tax assets (liabilities) | $ 276 | $ 218 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Apr. 01, 2022 | Apr. 02, 2021 | |
Income Taxes [Line Items] | ||
Valuation allowance | $ 11 | $ 7 |
Change in gross unrecognized tax benefit | (21) | |
Unrecognized tax benefits which would affect the effective income tax rate | 486 | |
Accrued penalties and interest | 87 | |
Interest included in the provision for income taxes | 19 | |
Domestic | U.S. Federal | ||
Income Taxes [Line Items] | ||
Operating loss carryforwards | 52 | |
State | ||
Income Taxes [Line Items] | ||
Operating loss carryforwards | 12 | |
Foreign | ||
Income Taxes [Line Items] | ||
Operating loss carryforwards | $ 14 |
Income Taxes - Schedule Of Chan
Income Taxes - Schedule Of Changes In Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 01, 2022 | Apr. 02, 2021 | Apr. 03, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | $ 548 | $ 724 | $ 446 |
Settlements with tax authorities | 0 | (37) | (5) |
Lapse of statute of limitations | (34) | (34) | (15) |
Increase related to prior period tax positions | 16 | 13 | 77 |
Decrease related to prior period tax positions | (11) | (129) | (11) |
Increase related to current year tax positions | 8 | 11 | 232 |
Balance at end of year | $ 527 | $ 548 | $ 724 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | May 05, 2022 | May 04, 2021 | May 20, 2022 | Apr. 01, 2022 | Apr. 02, 2021 | Apr. 01, 2022 | Apr. 02, 2021 | Apr. 03, 2020 |
Class of Stock [Line Items] | ||||||||
Cash dividends declared per common share (in usd per share) | $ 0.50 | $ 0.50 | $ 12.40 | |||||
Number of shares repurchased (in shares) | 15,000,000 | 68,000,000 | ||||||
Share Repurchase Program | ||||||||
Class of Stock [Line Items] | ||||||||
Stock repurchase program, incremental authorized amount | $ 1,500 | |||||||
Remaining authorized repurchase amount | $ 1,774 | $ 1,774 | ||||||
Number of shares repurchased (in shares) | 0 | |||||||
Subsequent Event | ||||||||
Class of Stock [Line Items] | ||||||||
Cash dividends declared per common share (in usd per share) | $ 0.125 | |||||||
Subsequent Event | Share Repurchase Program | ||||||||
Class of Stock [Line Items] | ||||||||
Remaining authorized repurchase amount | $ 1,667 | |||||||
Number of shares repurchased (in shares) | 4,000,000 | |||||||
Aggregate purchase price | $ 107 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Stock Repurchase Program (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended |
Apr. 02, 2021 | Apr. 02, 2021 | |
Equity [Abstract] | ||
Number of shares repurchased (in shares) | 15 | 68 |
Average price per share (usd per share) | $ 20.50 | $ 22.97 |
Aggregate purchase price | $ 304 | $ 1,562 |
Stockholders' Equity - Schedu_2
Stockholders' Equity - Schedule of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | |
Apr. 01, 2022 | Apr. 02, 2021 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ (500) | $ 10 |
Ending balance | (93) | (500) |
Foreign Currency Translation Adjustments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 47 | (16) |
Other comprehensive income (loss) before reclassifications | (51) | 63 |
Ending balance | $ (4) | $ 47 |
Stock-Based Compensation and _3
Stock-Based Compensation and Benefit Plans - Narrative (Details) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Apr. 01, 2022USD ($)purchasePeriodplan$ / sharesshares | Apr. 02, 2021USD ($)$ / sharesshares | Apr. 03, 2020USD ($)$ / shares | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of stock incentive plan | plan | 1 | |||
Options granted in period (in shares) | shares | 0 | 0 | ||
Current dividends payable | $ | $ 11 | $ 12 | ||
Long-term dividend payable | $ | $ 2 | $ 10 | ||
Award modification term, vesting percentage | 50.00% | |||
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period (in years) | 3 years | |||
Weighted-average grant date fair value (in dollars per share) | $ / shares | $ 22.53 | $ 20.70 | $ 19.65 | |
Total fair value of stock released | $ | $ 57 | $ 86 | $ 300 | |
Weighted average grant date fair value (in dollars per share) | $ / shares | $ 21.80 | $ 20.62 | ||
PRUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period (in years) | 3 years | |||
Weighted-average grant date fair value (in dollars per share) | $ / shares | $ 28.68 | $ 26.39 | $ 21.69 | |
Total fair value of stock released | $ | $ 0 | $ 43 | $ 39 | |
Award performance conditions measurement period | 1 year | |||
Weighted average grant date fair value (in dollars per share) | $ / shares | $ 28.50 | $ 27.50 | ||
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total intrinsic value of options exercised | $ | $ 3 | $ 18 | $ 171 | |
Fair value of options granted (in dollars per share) | $ / shares | $ 4.76 | |||
Options granted in period (in shares) | shares | 0 | |||
Employee Stock Purchase Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Remaining shares available for future issuance (in shares) | shares | 32,000,000 | |||
Maximum employee subscription rate (up to) (as a percent) | 10.00% | |||
Award offering period (in months) | 12 months | |||
Purchase periods, number | purchasePeriod | 2 | |||
Purchase period | 6 months | |||
Purchase price of common stock (as a percent) | 85.00% | |||
Stock issued under employee stock purchase plan (in shares) | shares | 38,000,000 | |||
Weighted average grant date fair value (in dollars per share) | $ / shares | $ 6.77 | $ 5.65 | $ 5.17 | |
Liability-Classified Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation costs | $ | $ 160 | |||
Weighted-average remaining years | 2 years 2 months 12 days | |||
Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance award range, percent | 0.00% | |||
Award modification term, percentage of unvested equity | 0.00% | |||
Minimum | PRUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award market conditions measurement period | 2 years | |||
Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance award range, percent | 200.00% | |||
Award modification term, percentage of unvested equity | 150.00% | |||
Maximum | PRUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period (in years) | 3 years | |||
2013 Equity Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares approved and reserved for issuance (in shares) | shares | 82,000,000 | |||
Remaining shares available for future issuance (in shares) | shares | 11,000,000 |
Stock-Based Compensation and _4
Stock-Based Compensation and Benefit Plans - Schedule of RSUs and PSUs Activity (Details) - $ / shares shares in Millions | 12 Months Ended | ||
Apr. 01, 2022 | Apr. 02, 2021 | Apr. 03, 2020 | |
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Number of shares, unvested at beginning of year | 5 | ||
Number of shares, granted | 4 | ||
Number of shares, vested | (2) | ||
Number of shares, forfeited | (1) | ||
Number of shares, unvested at end of year | 6 | 5 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Weighted-Average Exercise Price, Outstanding and unvested at beginning of year (in dollars per share) | $ 20.62 | ||
Weighted-Average Exercise Price, Granted (in dollars per share) | 22.53 | $ 20.70 | $ 19.65 |
Weighted-Average Exercise Price, Vested (in dollars per share) | 20.89 | ||
Weighted-Average Exercise Price, Forfeited (in dollars per share) | 21.07 | ||
Weighted-Average Exercise Price, Outstanding and unvested at end of year (in dollars per share) | $ 21.80 | $ 20.62 | |
PRUs | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Number of shares, unvested at beginning of year | 1 | ||
Number of shares, granted | 3 | ||
Number of shares, forfeited | (1) | ||
Number of shares, unvested at end of year | 3 | 1 | |
Number of shares, vested and unreleased at end of year | 0 | ||
Number of shares, outstanding at end of year | 3 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Weighted-Average Exercise Price, Outstanding and unvested at beginning of year (in dollars per share) | $ 27.50 | ||
Weighted-Average Exercise Price, Granted (in dollars per share) | 28.68 | $ 26.39 | $ 21.69 |
Weighted-Average Exercise Price, Forfeited (in dollars per share) | 28.40 | ||
Weighted-Average Exercise Price, Outstanding and unvested at end of year (in dollars per share) | $ 28.50 | $ 27.50 |
Stock-Based Compensation and _5
Stock-Based Compensation and Benefit Plans - Valuation Assumptions (Details) - PRUs - $ / shares | 12 Months Ended | ||
Apr. 01, 2022 | Apr. 02, 2021 | Apr. 03, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term | 3 years 10 months 24 days | 2 years 8 months 12 days | 1 year 10 months 24 days |
Expected volatility | 37.60% | 42.50% | 38.10% |
Risk-free interest rate | 1.00% | 0.20% | 1.70% |
Expected dividend yield | 0.00% | 0.00% | 1.70% |
Weighted-average grant date fair value (in dollars per share) | $ 28.68 | $ 26.39 | $ 21.69 |
Stock-Based Compensation and _6
Stock-Based Compensation and Benefit Plans - Schedule of Stock Options Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Apr. 01, 2022 | Apr. 02, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Granted (in shares) | 0 | 0 |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Outstanding at the beginning of period (in shares) | 0 | |
Granted (in shares) | 0 | |
Exercised (in shares) | 0 | |
Canceled (in shares) | 0 | |
Forfeited and expired (in shares) | 0 | |
Outstanding at the end of period (in shares) | 0 | 0 |
Exercisable at period end (in shares) | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||
Weighted Average Exercise Price, Outstanding at the beginning of period (in dollars per share) | $ 5.22 | |
Weighted Average Exercise Price, Granted (in dollars per share) | 0 | |
Weighted Average Exercise Price, Exercised (in dollars per share) | 4.73 | |
Weighted Average Exercise Price, Canceled (in dollars per share) | 0 | |
Weighted Average Exercise Price, Forfeited and expired (in dollars per share) | 7.01 | |
Weighted Average Exercise Price, Outstanding at the end of period (in dollars per share) | 5.51 | $ 5.22 |
Weighted Average Exercise Price, Exercisable at period end (in dollars per share) | $ 5.51 | |
Exercisable at period end, Weighted Average Remaining Years (in years) | 3 years 9 months 18 days | |
Exercisable at period end, Aggregate Intrinsic Value | $ 4 |
Stock-Based Compensation and _7
Stock-Based Compensation and Benefit Plans - Employee Stock Purchase Plan Activity (Details) - 2008 Employee Stock Purchase Plan - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Apr. 01, 2022 | Apr. 02, 2021 | Apr. 03, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock issued under ESPP (in shares) | 1 | 1 | 2 |
Proceeds from issuance of shares | $ 13 | $ 14 | $ 39 |
Stock-Based Compensation and _8
Stock-Based Compensation and Benefit Plans - Schedule of Stock-based Compensation Expense from Modifications (Details) - USD ($) $ in Millions | 12 Months Ended | |
Apr. 02, 2021 | Apr. 03, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based expense associated with award modifications | $ 30 | $ 145 |
Discontinued operations | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based expense associated with award modifications | 1 | 99 |
Sales and marketing | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based expense associated with award modifications | 2 | 6 |
Research and development | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based expense associated with award modifications | 9 | 0 |
General and administrative | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based expense associated with award modifications | 8 | 20 |
Restructuring and other costs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based expense associated with award modifications | $ 10 | $ 20 |
Stock-Based Compensation and _9
Stock-Based Compensation and Benefit Plans - Schedule Of Stock-Based Compensation Expense Recognized In Our Consolidated Statements Of Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 01, 2022 | Apr. 02, 2021 | Apr. 03, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense from continuing operations | $ 70 | $ 81 | $ 312 |
Tax benefit associated with stock-based compensation expense | (11) | (18) | (55) |
Continuing Operations | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense from continuing operations | 70 | 80 | 140 |
Continuing Operations | Cost of revenues | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense from continuing operations | 2 | 1 | 2 |
Continuing Operations | Sales and marketing | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense from continuing operations | 19 | 18 | 29 |
Continuing Operations | Research and development | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense from continuing operations | 19 | 26 | 30 |
Continuing Operations | General and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense from continuing operations | 30 | 26 | 58 |
Continuing Operations | Restructuring and other costs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense from continuing operations | 0 | 10 | 20 |
Continuing Operations | Other income (expense), net | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense from continuing operations | 0 | (1) | 1 |
Discontinued operations | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense from continuing operations | $ 0 | $ 1 | $ 172 |
Stock-Based Compensation and_10
Stock-Based Compensation and Benefit Plans -Employer 401K Matching Contributions (Details) - USD ($) | 12 Months Ended | ||
Apr. 01, 2022 | Apr. 02, 2021 | Apr. 03, 2020 | |
Share-Based Payment Arrangement [Abstract] | |||
Contributions per employee, percent | 3.50% | ||
Contributions per employee, amount | $ 6,000 | ||
401(k) matching contributions | $ 3,000,000 | $ 3,000,000 | $ 16,000,000 |
Net Income (Loss) Per Share - S
Net Income (Loss) Per Share - Schedule of EPS (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Apr. 01, 2022 | Apr. 02, 2021 | Apr. 03, 2020 | |
Earnings Per Share [Abstract] | |||
Income (loss) from continuing operations | $ 836 | $ 696 | $ 578 |
Income (loss) from discontinued operations | 0 | (142) | 3,309 |
Net income (loss) | $ 836 | $ 554 | $ 3,887 |
Income (loss) per share - basic: | |||
Continuing operations (in usd per share) | $ 1.44 | $ 1.18 | $ 0.94 |
Discontinued operations (in usd per share) | 0 | (0.24) | 5.38 |
Net income per share - basic (in usd per share) | 1.44 | 0.94 | 6.32 |
Income (loss) per share - diluted: | |||
Continuing operations (in usd per share) | 1.41 | 1.16 | 0.90 |
Discontinued operations (in usd per share) | 0 | (0.24) | 5.15 |
Net income per share - diluted (in usd per share) | $ 1.41 | $ 0.92 | $ 6.05 |
Weighted-average shares outstanding — basic (in shares) | 581 | 589 | 615 |
Dilutive potential shares from convertible debt (in shares) | 7 | 8 | 20 |
Dilutive potential shares from employee equity awards (in shares) | 3 | 3 | 8 |
Weighted-average shares outstanding - diluted (in shares) | 591 | 600 | 643 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive shares excluded from diluted net income per share calculation (in shares) | 1 | 8 | 7 |
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 | 8 | 5 |
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) | 1 | 0 | 2 |
Net Income (Loss) Per Share -_2
Net Income (Loss) Per Share - Schedule of Debt Conversions (Details) - Convertible Debt - $ / shares | Apr. 01, 2022 | Mar. 18, 2022 | May 20, 2021 | Apr. 02, 2021 | May 26, 2020 | Apr. 03, 2020 | Mar. 10, 2020 | Mar. 05, 2020 | Feb. 04, 2020 | Jan. 31, 2020 | Nov. 11, 2019 | Aug. 01, 2016 | Mar. 04, 2016 |
2.5% Convertible Senior Notes due April 1, 2022 | |||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||||
Stated interest rate | 2.50% | 2.50% | 2.50% | 2.50% | 2.50% | ||||||||
Conversion price (in dollars per share) | $ 8.40 | ||||||||||||
2.0% Convertible Senior Notes due August 15, 2022 | |||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||||
Stated interest rate | 2.00% | 2.00% | 2.00% | 2.00% | |||||||||
Conversion price (in dollars per share) | 10.23 | ||||||||||||
New 2.5% Convertible Senior Notes due April 1, 2022 | |||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||||
Stated interest rate | 2.50% | 2.50% | 2.50% | 2.50% | |||||||||
Conversion price (in dollars per share) | $ 24.40 | $ 16.77 | 16.77 | $ 19 | $ 16.77 | $ 8.40 | |||||||
New 2.0% Convertible Senior Notes due August 15, 2022 | |||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||||
Stated interest rate | 2.00% | 2.00% | 2.00% | 2.00% | 2.00% | ||||||||
Conversion price (in dollars per share) | $ 20.41 | $ 28.32 | $ 20.41 | $ 19.25 | $ 20.41 | $ 20.41 | $ 10.23 |
Segment and Geographic Inform_3
Segment and Geographic Information - Narrative (Details) $ in Millions | 12 Months Ended | ||
Apr. 01, 2022USD ($)segment | Apr. 02, 2021USD ($) | Apr. 03, 2020USD ($) | |
Segment Reporting [Abstract] | |||
Number of reportable segments | segment | 1 | ||
Segment Reporting Information [Line Items] | |||
Net revenues | $ 2,796 | $ 2,551 | $ 2,490 |
U.S. | |||
Segment Reporting Information [Line Items] | |||
Net revenues | $ 1,860 | $ 1,742 | $ 1,747 |
Segment and Geographic Inform_4
Segment and Geographic Information - Disaggregated Net Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 01, 2022 | Apr. 02, 2021 | Apr. 03, 2020 | |
Revenue from External Customer [Line Items] | |||
Total net revenues | $ 2,796 | $ 2,551 | $ 2,490 |
Consumer security | |||
Revenue from External Customer [Line Items] | |||
Total net revenues | 1,669 | 1,513 | 1,450 |
Identity and information protection | |||
Revenue from External Customer [Line Items] | |||
Total net revenues | 1,127 | 1,038 | 994 |
ID Analytics | |||
Revenue from External Customer [Line Items] | |||
Total net revenues | $ 0 | $ 0 | $ 46 |
Segment and Geographic Inform_5
Segment and Geographic Information - Schedule Of Net Revenue By Geographic Location (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 01, 2022 | Apr. 02, 2021 | Apr. 03, 2020 | |
Revenue from External Customer [Line Items] | |||
Net revenues | $ 2,796 | $ 2,551 | $ 2,490 |
Americas | |||
Revenue from External Customer [Line Items] | |||
Net revenues | 1,963 | 1,827 | 1,831 |
EMEA | |||
Revenue from External Customer [Line Items] | |||
Net revenues | 506 | 419 | 376 |
APJ | |||
Revenue from External Customer [Line Items] | |||
Net revenues | $ 327 | $ 305 | $ 283 |
Segment and Geographic Inform_6
Segment and Geographic Information - Schedule Of Assets By Geographic Location (Details) - USD ($) $ in Millions | Apr. 01, 2022 | Apr. 02, 2021 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total cash, cash equivalents and short-term investments | $ 1,891 | $ 951 |
Property and equipment, net | 60 | 78 |
Total operating lease assets | 74 | 76 |
U.S. | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total cash, cash equivalents and short-term investments | 1,220 | 536 |
Property and equipment, net | 16 | 28 |
Total operating lease assets | 66 | 55 |
International | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total cash, cash equivalents and short-term investments | 671 | 415 |
Ireland | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 27 | 32 |
Germany | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 13 | 14 |
Other countries | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 4 | 4 |
Total operating lease assets | 3 | 12 |
India | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total operating lease assets | $ 5 | $ 9 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule Of Unrecognized Purchase Obligations (Details) $ in Millions | Apr. 01, 2022USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2023 | $ 353 |
2024 | 51 |
2025 | 9 |
2026 | 6 |
2027 | 3 |
Thereafter | 4 |
Total purchase obligations | $ 426 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Deemed Repatriation Taxes (Details) $ in Millions | Apr. 01, 2022USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2023 | $ 68 |
2024 | 128 |
2025 | 171 |
2026 | 138 |
Total obligations | $ 505 |
Commitments and Contingencies_3
Commitments and Contingencies - Narrative (Details) | May 02, 2022USD ($)claimPatent | Feb. 28, 2022USD ($) | Jun. 08, 2021USD ($) | May 24, 2021USD ($) | May 13, 2021USD ($) | Oct. 21, 2019USD ($) | Jan. 31, 2014USD ($) | Apr. 01, 2022USD ($) | Apr. 02, 2021USD ($) | Apr. 03, 2020USD ($) | Sep. 30, 2012USD ($) |
Loss Contingencies [Line Items] | |||||||||||
Litigation settlement payment | $ 70,000,000 | $ 70,000,000 | |||||||||
Loss contingency, insurance recoveries | $ 67,100,000 | ||||||||||
Total net revenues | $ 2,796,000,000 | $ 2,551,000,000 | $ 2,490,000,000 | ||||||||
Subsequent Event | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Loss contingency, number of patent, claim | Patent | 6 | ||||||||||
Estimated loss (low end) | $ 185,000,000 | ||||||||||
Loss contingency, damages awarded, value | $ 0 | ||||||||||
Minimum | Subsequent Event | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Estimated litigation payment as times of actual damages proven | 1 | ||||||||||
Maximum | Subsequent Event | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Estimated litigation payment as times of actual damages proven | 3 | ||||||||||
GSA Schedule Contract | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Estimated loss (low end) | $ 50,000,000 | ||||||||||
Litigation settlement payment | $ 5,000,000 | $ 500,000 | |||||||||
Total net revenues | $ 222,000,000 | ||||||||||
Estimated damage | $ 1,090,000,000 | $ 145,000,000 | |||||||||
GSA Schedule Contract | Minimum | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Estimated litigation payment as times of actual damages proven | 1 | ||||||||||
GSA Schedule Contract | Maximum | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Estimated litigation payment as times of actual damages proven | 3 | ||||||||||
115 Patents Remained in Suit | Subsequent Event | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Loss contingency, pending claims, number | claim | 3 | ||||||||||
322 Patents Remained in Suit | Subsequent Event | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Loss contingency, pending claims, number | claim | 2 |