Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jun. 30, 2017 | Jul. 28, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | SYMANTEC CORP | |
Entity Central Index Key | 849,399 | |
Current Fiscal Year End Date | --03-30 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 612,800,923 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2017 | Mar. 31, 2017 | [1] |
Assets, Current [Abstract] | |||
Cash and cash equivalents | $ 2,306 | $ 4,247 | |
Accounts receivable, net | 468 | 649 | |
Other current assets | 399 | 428 | |
Total current assets | 3,173 | 5,324 | |
Property and equipment, net | 895 | 937 | |
Intangible assets, net | 2,892 | 3,004 | |
Goodwill | 8,638 | 8,627 | |
Equity investments | 158 | 158 | |
Other long-term assets | 112 | 124 | |
Total assets | 15,868 | 18,174 | |
Current liabilities: | |||
Accounts payable | 121 | 180 | |
Accrued compensation and benefits | 206 | 272 | |
Current portion of long-term debt | 0 | 1,310 | |
Deferred revenue | 2,329 | 2,353 | |
Income taxes payable | 22 | 30 | |
Other current liabilities | 443 | 477 | |
Total current liabilities | 3,121 | 4,622 | |
Long-term debt | 6,202 | 6,876 | |
Long-term deferred revenue | 465 | 434 | |
Deferred income tax liabilities | 2,332 | 2,401 | |
Long-term income taxes payable | 261 | 251 | |
Other long-term obligations | 98 | 103 | |
Total liabilities | 12,479 | 14,687 | |
Commitments and contingencies | |||
Stockholders’ equity: | |||
Preferred stock, $0.01 par value: 1,000 shares authorized; 21 shares issued; 0 outstanding | 0 | 0 | |
Common stock and additional paid-in capital, $0.01 par value: 3,000,000 shares authorized; 610,991 and 608,019 shares issued and outstanding, respectively | 4,273 | 4,236 | |
Accumulated other comprehensive income | 10 | 12 | |
Accumulated deficit | (894) | (761) | |
Total stockholders’ equity | 3,389 | 3,487 | |
Total liabilities and stockholders’ equity | $ 15,868 | $ 18,174 | |
[1] | Derived from audited financial statements. |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2017 | Mar. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value per share (in usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, number of shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, number of shares issued (in shares) | 21,000 | 21,000 |
Preferred stock, number of shares outstanding (in shares) | 0 | 0 |
Common stock, par value per share (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, number of shares authorized (in shares) | 3,000,000,000 | 3,000,000,000 |
Common stock, number of shares issued (in shares) | 610,991,000 | 608,019,000 |
Common stock, number of shares outstanding (in shares) | 610,991,000 | 608,019,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Jun. 30, 2017 | Jul. 01, 2016 | |
Net revenues | $ 1,175 | $ 884 |
Cost of revenues | 257 | 149 |
Gross profit | 918 | 735 |
Operating expenses: | ||
Sales and marketing | 433 | 291 |
Research and development | 233 | 170 |
General and administrative | 149 | 84 |
Amortization of intangible assets | 59 | 14 |
Restructuring and Transition, Continuing Operations | 88 | 70 |
Total operating expenses | 962 | 629 |
Operating income (loss) | (44) | 106 |
Interest income | 6 | 5 |
Interest expense | (84) | (27) |
Other income (expense), net | (12) | 13 |
Income (loss) from continuing operations before income taxes | (134) | 97 |
Income tax expense (benefit) | (24) | 31 |
Income (loss) from continuing operations | (110) | 66 |
Income (loss) from discontinued operations, net of income taxes | (23) | 69 |
Net income (loss) | $ (133) | $ 135 |
Income (loss) per share - basic: | ||
Continuing operations (in usd per share) | $ (0.18) | $ 0.11 |
Discontinued operations (in usd per share) | (0.04) | 0.11 |
Net income per share — basic (in usd per share) | (0.22) | 0.22 |
Income (loss) per share - diluted: | ||
Continuing operations (in usd per share) | (0.18) | 0.11 |
Discontinued operations (in usd per share) | (0.04) | 0.11 |
Net income per share — diluted (in usd per share) | $ (0.22) | $ 0.22 |
Weighted-average shares outstanding: | ||
Basic (in shares) | 609 | 613 |
Diluted (in shares) | 609 | 620 |
Cash dividends declared per common share (in usd per share) | $ 0.075 | $ 0.075 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2017 | Jul. 01, 2016 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ (133) | $ 135 |
Other comprehensive income (loss), net of taxes: | ||
Translation adjustments | (2) | (24) |
Unrealized loss on available-for-sale securities | 0 | (1) |
Other comprehensive income (loss), net of taxes | (2) | (25) |
Comprehensive income (loss) | $ (135) | $ 110 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2017 | Jul. 01, 2016 | |
OPERATING ACTIVITIES: | ||
Net income (loss) | $ (133) | $ 135 |
(Income) loss from discontinued operations, net of income taxes | 23 | (69) |
Adjustments to continuing operating activities: | ||
Depreciation and amortization, including debt issuance costs and discounts | 191 | 72 |
Stock-based compensation expense | 147 | 49 |
Deferred income taxes | (62) | 33 |
Other | 14 | 27 |
Changes in operating assets and liabilities, net of acquisitions: | ||
Accounts receivable, net | 188 | 244 |
Accounts payable | (32) | (63) |
Accrued compensation and benefits | (68) | (52) |
Deferred revenue | (21) | (139) |
Income taxes | 40 | (940) |
Other assets | 3 | (2) |
Other liabilities | (39) | (35) |
Net cash provided by (used in) continuing operating activities | 251 | (740) |
Net cash used in discontinued operating activities | (38) | (30) |
Net cash provided by (used in) operating activities | 213 | (770) |
INVESTING ACTIVITIES: | ||
Additions to property and equipment | (47) | (22) |
Payments for acquisitions, net of cash acquired | (8) | 0 |
Proceeds from maturities and sales of short-term investments | 0 | 30 |
Other | 1 | 7 |
Net cash provided by (used in) investing activities | (54) | 15 |
FINANCING ACTIVITIES: | ||
Repayments of debt and other obligations | (2,010) | (17) |
Proceeds from issuance of debt, net of issuance costs | 0 | 994 |
Net proceeds from sales of common stock under employee stock benefit plans | 11 | 1 |
Tax payments related to restricted stock units | (61) | (24) |
Dividends and dividend equivalents paid | (66) | (68) |
Other | 0 | 10 |
Net cash provided by (used in) financing activities | (2,126) | 896 |
Effect of exchange rate fluctuations on cash and cash equivalents | 26 | (16) |
Change in cash and cash equivalents | (1,941) | 125 |
Beginning cash and cash equivalents | 4,247 | 5,983 |
Ending cash and cash equivalents | 2,306 | 6,108 |
Supplemental disclosure of cash flow information | ||
Income taxes paid, net of refunds | $ 39 | $ 953 |
Description of Business and Sig
Description of Business and Significant Accounting Policies | 3 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Significant Accounting Policies | Description of Business and Significant Accounting Policies Business Symantec Corporation (“Symantec,” “we,” “us,” “our,” and the “Company” refer to Symantec Corporation and all of its subsidiaries) is a global leader in cybersecurity. On August 1, 2016 , we completed our acquisition of Blue Coat, Inc. (“Blue Coat”). On February 9, 2017 , we completed our acquisition of LifeLock, Inc. (“LifeLock”). Blue Coat and LifeLock have been included in our consolidated results of operations since their respective acquisition dates. Basis of presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States of America (“U.S.”) for interim financial information. In the opinion of management, the unaudited Condensed Consolidated Financial Statements contain all adjustments, consisting only of normal recurring items, except as otherwise noted, necessary for the fair presentation of our financial position, results of operations, and cash flows for the interim periods. These unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and accompanying Notes thereto included in our Annual Report on Form 10-K for the fiscal year ended March 31, 2017 . The results of operations for the three months ended June 30, 2017 are not necessarily indicative of the results expected for the entire fiscal year. We have a 52/53-week fiscal year ending on the Friday closest to March 31. Unless otherwise stated, references to three month ended periods in this report relate to fiscal periods ended June 30, 2017 and July 1, 2016 . The three months ended June 30, 2017 and July 1, 2016 each consisted of 13 weeks. Our 2018 fiscal year consists of 52 weeks and ends on March 30, 2018 . Recently adopted authoritative guidance Employee Stock-Based Compensation. In the first quarter of fiscal 2018, we adopted new guidance to simplify accounting for share-based payment transactions. Prior to adoption, excess tax benefits resulting from the difference between the deduction for tax purposes and the compensation costs recognized for financial reporting were not recognized until the deduction reduced taxes payable. As a result of the new guidance, we now recognize excess tax benefits in the current accounting period. In addition, we elected to continue to estimate forfeitures rather than record the forfeitures as they occur. We adopted the change in accounting method using the modified retrospective method. We also elected to retrospectively apply the change in presentation of excess tax benefits recognized on stock-based compensation expense in our Condensed Consolidated Statements of Cash Flows from financing activities to operating activities. The cumulative effect of adopting the new accounting guidance was not material. There have been no other material changes in our significant accounting policies as of and for the three months ended June 30, 2017 , as compared to the significant accounting policies described in our Annual Report on Form 10-K for the fiscal year ended March 31, 2017 . |
Segment Information
Segment Information | 3 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We have the following two reporting segments, which are the same as our operating segments: • Enterprise Security. Our Enterprise Security segment protects organizations so they can securely conduct business while leveraging new platforms and data. Our Enterprise Security segment includes our threat protection products, information protection products, cyber security services, website security and advanced web and cloud security offerings. Our enterprise endpoint and network security and management offerings support evolving endpoints and networks, providing advanced threat protection while helping reduce cost and complexity. These solutions are delivered through various methods, such as software, appliance, Software-as-a-Service (“SaaS”) and managed services. • Consumer Digital Safety. Our Consumer Digital Safety segment focuses on providing a Digital Safety solution to protect information, devices, networks and the identities of consumers. This platform includes our Norton-branded services, which provide multi-layer security and identity protection on major desktop and mobile operating systems, to defend against increasingly complex online threats to individuals, families and small businesses. With the addition of LifeLock-branded identity protection services, we are accelerating our leadership in Consumer Digital Safety to protect all aspects of the consumer’s digital life. Operating segments are based upon the nature of our business and how our business is managed. Our Chief Operating Decision Makers (“CODM”), comprised of our Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), use operating segment financial information to evaluate segment performance and to allocate resources. There were no inter-segment sales for the periods presented. The following table summarizes the operating results of our reporting segments: Three Months Ended (In millions) June 30, 2017 July 1, 2016 Total Segments: Net revenues $ 1,175 $ 884 Operating income $ 324 $ 253 Enterprise Security: Net revenues $ 646 $ 481 Operating income $ 94 $ 28 Consumer Digital Safety: Net revenues $ 529 $ 403 Operating income $ 230 $ 225 We do not allocate to our operating segments certain operating expenses that we manage separately at the corporate level and are not used in evaluating the results of, or in allocating resources to, our segments. These unallocated expenses consist of stock-based compensation expense, amortization of intangible assets, restructuring, transition and other charges, and acquisition and integration costs. The following table provides a reconciliation of our total reportable segments’ operating income to our total operating income (loss): Three Months Ended (In millions) June 30, 2017 July 1, 2016 Total segment operating income $ 324 $ 253 Reconciling items: Stock-based compensation expense 147 49 Amortization of intangible assets 114 20 Restructuring, transition and other 88 70 Acquisition and integration costs 19 8 Total consolidated operating income (loss) from continuing operations $ (44 ) $ 106 |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 3 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | Net Income (Loss) Per Share Basic and diluted net income (loss) per share are computed on the basis of the weighted-average number of shares of common stock outstanding during the period. In the first quarter of fiscal 2017, diluted net income (loss) per share also includes the incremental effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include the dilutive effect of the shares’ underlying outstanding stock options, restricted stock units (“RSUs”), performance-based restricted stock units (“PRUs”), Employee Stock Purchase Plan (“ESPP”) and convertible notes. See Note 10 for more information on our stock-based compensation. The components of net income (loss) per share are as follows: Three Months Ended (In millions, except per share data) June 30, 2017 July 1, 2016 Income (loss) from continuing operations $ (110 ) $ 66 Income (loss) from discontinued operations, net of income taxes (23 ) 69 Net income (loss) $ (133 ) $ 135 Income (loss) per share - basic: Continuing operations $ (0.18 ) $ 0.11 Discontinued operations $ (0.04 ) $ 0.11 Net income (loss) per share - basic $ (0.22 ) $ 0.22 Income (loss) per share - diluted: Continuing operations $ (0.18 ) $ 0.11 Discontinued operations $ (0.04 ) $ 0.11 Net income (loss) per share - diluted $ (0.22 ) $ 0.22 Weighted-average shares outstanding - basic 609 613 Dilutive potential shares — 7 Weighted-average shares outstanding - diluted 609 620 The following have been excluded from the computation of diluted net income (loss) per share because their effect would have been anti-dilutive: As of (In millions) June 30, 2017 July 1, 2016 Convertible shares 91 — RSUs and PRUs 33 2 Stock options and ESPP 20 — Total 144 2 Under the treasury stock method, our Convertible Senior Notes will generally have a dilutive impact on earnings when our average stock price for the period exceeds approximately $16.77 per share for the 2.5% Convertible Senior Notes and $20.41 per share for the 2.0% Convertible Senior Notes. During the three months ended June 30, 2017 , the conversion feature of both notes was anti-dilutive due to a loss from continuing operations. |
Restructuring, Transition and O
Restructuring, Transition and Other Costs | 3 Months Ended |
Jun. 30, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring, Transition and Other Costs | Restructuring, Transition and Other Costs Our restructuring, transition and other costs and liabilities consist primarily of severance, facilities, transition and other related costs. Severance costs generally include severance payments, outplacement services, health insurance coverage, and legal costs. Included in other exit and disposal costs are advisory fees incurred in connection with restructuring events and consulting and disentanglement costs to prune selected lines of business that do not fit either our growth, margin or strategic objectives. Facilities costs, which are also included in other exit and disposal costs, generally include rent expense and lease termination costs, less estimated sublease income. Transition costs primarily consist of consulting charges associated with the implementation of new enterprise resource planning systems and costs to automate business processes. Restructuring, transition and other costs are managed at the corporate level and are not allocated to our reportable segments. See Note 2 for information regarding the reconciliation of total segment operating income to total consolidated operating income (loss). Fiscal 2017 Plan We initiated a restructuring plan in the first quarter of fiscal 2017 to reduce complexity by means of long-term structural improvements (the “Fiscal 2017 Plan”). We expect to reduce headcount and close certain facilities in connection with the restructuring plan. We expect total costs incurred in connection with the Fiscal 2017 Plan to range between $430 million and $480 million , of which approximately $185 million to $195 million is expected to be for severance and termination benefits and $205 million to $230 million is expected to be for other exit and disposal costs primarily consisting of contract termination and relocation costs and advisory fees. The remainder is expected to be in the form of asset write-offs. These actions are expected to be completed in fiscal 2018. As of June 30, 2017 , liabilities for excess facility obligations at several locations around the world are expected to be paid throughout the respective lease terms, the longest of which extends through fiscal 2022 . Additionally, we expect continuing significant transition costs associated with the implementation of a new enterprise resource planning system and costs to automate business processes. Restructuring, transition and other costs summary For the three months ended June 30, 2017 we incurred the following restructuring, transition and other costs: (In millions) June 30, 2017 Severance and termination costs $ 27 Other exit and disposal costs 32 Asset write-offs 1 Transition costs 28 Total restructuring, transition and other $ 88 Restructuring liabilities summary As of June 30, 2017 and March 31, 2017 , the restructuring liabilities are included in accounts payable, other current liabilities and other long-term obligations in our Condensed Consolidated Balance Sheets. (In millions) Balance as of March 31, 2017 Costs, Net of Cash Non-Cash Charges Balance as of June 30, 2017 Cumulative Incurred to Date for FY17 Plan Severance and termination costs $ 20 $ 27 $ (32 ) $ — $ 15 $ 103 Other exit and disposal costs 26 32 (20 ) (7 ) 31 111 Asset write-offs — 1 — (1 ) — 24 Total $ 46 $ 60 $ (52 ) $ (8 ) $ 46 $ 238 |
Income Taxes
Income Taxes | 3 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The following table summarizes our effective tax rate for income (loss) from continuing operations for the periods presented: Three Months Ended (In millions, except percentages) June 30, 2017 July 1, 2016 Income (loss) from continuing operations before income taxes $ (134 ) $ 97 Income tax expense (benefit) $ (24 ) $ 31 Effective tax rate 18 % 32 % Our effective tax rate for loss from continuing operations for the three months ended June 30, 2017 differs from the federal statutory income tax rate primarily due to the benefits of lower-taxed international earnings, the research and development tax credit, and excess tax benefits related to stock-based compensation, partially offset by various permanent differences. Our effective tax rate for income from continuing operations for the three months ended July 1, 2016 differs from the federal statutory income tax rate primarily due to the benefits of lower-taxed international earnings, domestic manufacturing incentives and the research and development tax credit, partially offset by state income taxes. For the three months ended June 30, 2017 , we recorded income tax expense on discontinued operations of $41 million . For the three months ended July 1, 2016 , we recorded income tax expense on discontinued operations of $16 million . See Note 12 for further details regarding discontinued operations. We are a U.S.-based multinational company subject to tax in multiple U.S. and international tax jurisdictions. A substantial portion of our international earnings were generated from subsidiaries organized in Ireland and Singapore. Our results of operations would be adversely affected to the extent that our geographical mix of income becomes more weighted toward jurisdictions with higher tax rates and would be favorably affected to the extent the relative geographic mix shifts to lower tax jurisdictions. Any change in our mix of earnings is dependent upon many factors and is therefore difficult to predict. 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 involve multiple tax periods and jurisdictions, it is reasonably possible that the gross unrecognized tax benefits related to these audits could decrease, whether by payment, release, or a combination of both, in the next 12 months by $12 million , which could reduce our income tax provision and therefore benefit the resulting effective tax rate. We continue to monitor the progress of ongoing income tax controversies and the impact, if any, of the expected expiration of the statute of limitations in various taxing jurisdictions. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Jun. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill The changes in the carrying amount of goodwill by segment are as follows: (In millions) Consumer Digital Safety Enterprise Security Total Net balance as of March 31, 2017 $ 2,549 $ 6,078 $ 8,627 Acquisitions 2 5 7 Translation adjustments 1 3 4 Net balance as of June 30, 2017 $ 2,552 $ 6,086 $ 8,638 Intangible assets, net June 30, 2017 March 31, 2017 (In millions) Gross Accumulated Net Gross Accumulated Net Customer relationships $ 1,650 $ (382 ) $ 1,268 $ 1,646 $ (322 ) $ 1,324 Developed technology 1,007 (284 ) 723 1,006 (229 ) 777 Finite-lived trade names and other 46 (28 ) 18 46 (26 ) 20 Total finite-lived intangible assets 2,703 (694 ) 2,009 2,698 (577 ) 2,121 Indefinite-lived trade names 864 — 864 864 — 864 In-process research and development 19 — 19 19 — 19 Total intangible assets $ 3,586 $ (694 ) $ 2,892 $ 3,581 $ (577 ) $ 3,004 As of June 30, 2017 , future amortization expense related to intangible assets that have finite lives is as follows by fiscal year: (In millions) June 30, 2017 Remainder of 2018 $ 337 2019 428 2020 407 2021 296 2022 235 Thereafter 306 Total $ 2,009 |
Debt
Debt | 3 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following table summarizes components of our debt: (In millions, except percentages) June 30, 2017 March 31, 2017 Effective 2.75% Senior Notes due June 15, 2017 $ — $ 600 2.79 % Senior Term Loan A-1 due May 10, 2019 800 1,000 LIBOR plus (1) Senior Term Loan A-2 due August 1, 2019 800 800 LIBOR plus (1) Senior Term Loan A-3 due August 1, 2019 200 200 LIBOR plus (1) 4.2% Senior Notes due September 15, 2020 750 750 4.25 % 2.5% Convertible Senior Notes due April 1, 2021 500 500 3.76 % Senior Term Loan A-5 due August 1, 2021 500 1,710 LIBOR plus (1) 2.0% Convertible Senior Notes due August 15, 2021 1,250 1,250 2.66 % 3.95% Senior Notes due June 15, 2022 400 400 4.05 % 5.0% Senior Notes due April 15, 2025 1,100 1,100 5.23 % Total principal amount 6,300 8,310 Less: Unamortized discount and issuance costs (98 ) (124 ) Total debt 6,202 8,186 Less: Current portion — (1,310 ) Total long-term portion $ 6,202 $ 6,876 (1) The senior term facilities bear interest at a rate equal to the London Interbank Offered Rate (“LIBOR”) plus a margin of 1.50% to 1.75% based on the current debt rating of our non-credit-enhanced, senior unsecured long-term debt and our underlying loan agreements. The future maturities of debt by fiscal year are as follows as of June 30, 2017 : (In millions) June 30, 2017 Remainder of 2018 $ — 2019 — 2020 1,800 2021 1,250 2022 1,750 Thereafter 1,500 Total future maturities of debt $ 6,300 Debt repayments We prepaid principal amounts of $1.2 billion of our Senior Term Loan A-5 and $200 million of our Senior Term Loan A-1 during the first quarter of fiscal 2018. In addition, during the first quarter of fiscal 2018, the $600 million principal balance of our 2.75% Senior Notes due June 15, 2017 matured and was settled by a cash payment. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Assets measured and recorded at fair value on a recurring basis Our cash equivalents consist primarily of money market funds with original maturities of three months or less at the time of purchase, and the carrying amount is a reasonable estimate of fair value. Our short-term investments consist of investment securities with original maturities greater than three months and marketable equity securities, and are included in our other current assets in the Condensed Consolidated Balance Sheets. The following table summarizes our assets measured at fair value on a recurring basis, by level, within the fair value hierarchy: June 30, 2017 March 31, 2017 (In millions) Fair Value Cash and Cash Equivalents Short-Term Investments Fair Value Cash and Cash Equivalents Short-Term Investments Cash $ 480 $ 480 $ — $ 1,183 $ 1,183 $ — Non-negotiable certificates of deposit 39 39 — 15 15 — Level 1 (Quoted prices in active markets for identical assets): Money market 1,298 1,298 — 2,532 2,532 — U.S. government securities 102 102 — 94 94 — Marketable equity securities 8 — 8 9 — 9 Total level 1 1,408 1,400 8 2,635 2,626 9 Level 2 (Significant other observable inputs): U.S. agency securities 64 64 — 75 75 — Commercial paper 323 323 — 348 348 — Total level 2 387 387 — 423 423 — Total $ 2,314 $ 2,306 $ 8 $ 4,256 $ 4,247 $ 9 There were no transfers between fair value measurement levels during the three months ended June 30, 2017 . Fair value of debt As of June 30, 2017 and March 31, 2017 , the total fair value of our debt was $6.4 billion and $ 8.3 billion , respectively, based on Level 2 inputs. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Dividends The following table summarizes dividends declared and paid and dividend equivalents paid for the periods presented: Three Months Ended (In millions, except per share data) June 30, 2017 July 1, 2016 Dividends declared and paid $ 46 $ 46 Dividend equivalents paid 20 22 Total dividends and dividend equivalents paid $ 66 $ 68 Cash dividends declared per common share $ 0.075 $ 0.075 Our RSUs and PRUs are entitled to dividend equivalents to be paid in the form of cash upon vesting for each share of the underlying unit. On August 2, 2017 , we declared a cash dividend of $0.075 per share of common stock to be paid on September 13, 2017 to all stockholders of record as of the close of business on August 21, 2017 . All shares of common stock issued and outstanding and all shares of unvested restricted stock and performance-based stock as of the record date will be entitled to the dividend and dividend equivalents, respectively. Any future dividends and dividend equivalents will be subject to the approval of our Board. Stock repurchase program As of June 30, 2017, the remaining balance of our share repurchase authorization is $800 million and does not have an expiration date. Accelerated stock repurchase agreement During the fourth quarter of fiscal 2017, we entered into an accelerated stock repurchase (“ASR”) agreement with financial institutions to repurchase an aggregate of $500 million of our common stock. Pursuant to the ASR agreement, we made an upfront payment of $500 million to the financial institutions and received and retired an initial delivery of 14.2 million shares of our common stock. In the first quarter of fiscal 2018, we completed the ASR and received and retired an additional delivery of 2.2 million shares of our common stock. The total shares received and retired under the terms of the ASR agreement were 16.4 million , with an average price paid per share of $30.51 . Changes in accumulated other comprehensive income by component Components of accumulated other comprehensive income, on a net of tax basis, were as follows: (In millions) Foreign Currency Translation Adjustments Unrealized Gain on Available-For-Sale Securities Total Balance as of March 31, 2017 $ 7 $ 5 $ 12 Other comprehensive loss before reclassifications (2 ) — (2 ) Balance as of June 30, 2017 $ 5 $ 5 $ 10 |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Jun. 30, 2017 | |
Share-based Compensation [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation expense The following table presents the stock-based compensation expense recognized in our Condensed Consolidated Statements of Operations : Three Months Ended (In millions) June 30, 2017 July 1, 2016 Cost of revenues $ 6 $ 3 Sales and marketing 43 14 Research and development 41 15 General and administrative 57 17 Total stock-based compensation expense 147 49 Tax benefit associated with stock-based compensation expense (51 ) (15 ) Total net stock-based compensation expense $ 96 $ 34 The following table summarizes additional information related to our stock-based compensation: Three Months Ended (In millions, except per grant data) June 30, 2017 July 1, 2016 Restricted stock units: Weighted-average fair value per grant $ 29.91 $ 17.30 Awards granted 7.1 8.5 Total fair value of awards released $ 170 $ 77 Total unrecognized compensation expense $ 370 $ 273 Weighted-average remaining vesting period 2.0 years 2.2 years Performance-based restricted stock units: Weighted-average fair value per grant $ 33.96 $ 17.30 Awards granted 2.5 1.3 Total fair value of awards released $ 21 $ 2 Total unrecognized compensation expense $ 191 $ 44 Weighted-average remaining vesting period 1.4 years 1.5 years Stock options: Total intrinsic value of stock options exercised $ 17 $ — Total unrecognized compensation expense $ 119 $ — Weighted-average remaining vesting period 1.4 years — |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Indemnifications In the ordinary course of business, we may provide indemnifications of varying scope and terms to customers, vendors, lessors, business partners, subsidiaries and other parties with respect to certain matters, including, but not limited to, losses arising out of our breach of agreements or representations and warranties made by us. In addition, our bylaws contain indemnification obligations to our directors, officers, employees and agents, and we have entered into indemnification agreements with our directors and certain of our officers to give such directors and officers additional contractual assurances regarding the scope of the indemnification set forth in our bylaws and to provide additional procedural protections. We maintain director and officer insurance, which may cover certain liabilities arising from our obligation to indemnify our directors and officers. It is not possible to determine the aggregate maximum potential loss under these indemnification agreements due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular agreement. Such indemnification agreements might not be subject to maximum loss clauses. Historically, we have not incurred material costs as a result of obligations under these agreements and we have not accrued any liabilities related to such indemnification obligations in our Condensed Consolidated Financial Statements. In connection with the sale of our former information management business (“Veritas”), we assigned several leases to Veritas Technologies LLC or its related subsidiaries. As a condition to consenting to the assignments, certain lessors required us to agree to indemnify the lessor under the applicable lease with respect to certain matters, including, but not limited to, losses arising out of Veritas Technologies LLC or its related subsidiaries’ breach of payment obligations under the terms of the lease. As with our other indemnification obligations discussed above and in general, it is not possible to determine the aggregate maximum potential loss under these indemnification agreements due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular agreement. As with our other indemnification obligations, such indemnification agreements might not be subject to maximum loss clauses and to date, generally under our real estate obligations, we have not incurred material costs as a result of such obligations under our leases and have not accrued any liabilities related to such indemnification obligations in our Condensed Consolidated Financial Statements. We provide limited product warranties and the majority of our software license agreements contain provisions that indemnify licensees of our software from damages and costs resulting from claims alleging that our software infringes on the intellectual property rights of a third party. Historically, payments made under these provisions have been immaterial. We monitor the conditions that are subject to indemnification to identify if a loss has occurred. Litigation contingencies GSA During the first quarter of fiscal 2013, we were advised by the Commercial Litigation Branch of the Department of Justice’s (“DOJ”) Civil Division and the Civil Division of the U.S. Attorney’s Office for the District of Columbia that the government is investigating our compliance with certain provisions of our U.S. General Services Administration (“GSA”) Multiple Award Schedule Contract No. GS-35F-0240T effective January 24, 2007, including provisions relating to pricing, country of origin, accessibility, and the disclosure of commercial sales practices. As reported on the GSA’s publicly-available database, our total sales under the GSA Schedule contract were approximately $222 million from the period beginning January 2007 and ending September 2012. We have fully cooperated with the government throughout its investigation and in January 2014, representatives of the government indicated that their initial analysis of our actual damages exposure from direct government sales under the GSA schedule was approximately $145 million ; since the initial meeting, the government’s analysis of our potential damages exposure relating to direct sales has increased. The government has also indicated they are going to pursue claims for certain sales to California, Florida, and New York as well as sales to the federal government through reseller GSA Schedule contracts, which could significantly increase our potential damages exposure. In 2012, a sealed civil lawsuit was filed against Symantec related to compliance with the GSA Schedule contract and contracts with California, Florida, and New York. On July 18, 2014, the Court-imposed seal expired, and the government intervened in the lawsuit. On September 16, 2014, the states of California and Florida intervened in the lawsuit, and the state of New York notified the Court that it would not intervene. On October 3, 2014, the DOJ filed an amended complaint, which did not state a specific damages amount. On October 17, 2014, California and Florida combined their claims with those of the DOJ and the relator on behalf of New York in an Omnibus Complaint, and a First Amended Omnibus Complaint was filed on October 8, 2015; the state claims also do not state specific damages amounts. It is possible that the litigation could lead to claims or findings of violations of the False Claims Act, and could be material to our results of operations and cash flows for any period. Resolution of False Claims Act investigations can ultimately result in the payment of somewhere between one and three times the actual damages proven by the government, plus civil penalties in some cases, depending upon a number of factors. Our current estimate of the low end of the range of the probable estimated loss from this matter is $25 million , which we have accrued. This amount contemplates estimated losses from both the investigation of compliance with the terms of the GSA Schedule contract as well as possible violations of the False Claims Act. There is at least a reasonable possibility that a loss may have been incurred in excess of our accrual for this matter, however, we are currently unable to determine the high end of the range of estimated losses resulting from this matter. EDS & NDI On January 24, 2011, a class action lawsuit was filed against us and our previous e-commerce vendor Digital River, Inc.; the lawsuit alleged violations of California’s Unfair Competition Law, the California Legal Remedies Act and unjust enrichment related to prior sales of Extended Download Service (“EDS”) and Norton Download Insurance (“NDI”). On March 31, 2014, the U.S. District Court for the District of Minnesota certified a class of all people who purchased these products between January 24, 2005 and March 10, 2011. In August 2015, the parties executed a settlement agreement pursuant to which we would pay the plaintiffs $30 million , which we accrued. On October 8, 2015, the Court granted preliminary approval of the settlement, which was subsequently paid into escrow by us. The Court granted final approval on April 22, 2016, and entered judgment in the case. Objectors to the settlement have appealed to the Eighth Circuit Court of Appeals (“Eighth Circuit”), challenging the Court’s approval of the settlement, and the decision granting approval was affirmed by the Eighth Circuit on April 28, 2017. The time for the objectors to appeal the Eighth Circuit’s ruling has now expired without any appeal being filed. This matter is therefore now closed . Finjan On August 28, 2013, Finjan, Inc. (“Finjan”) filed a complaint against Blue Coat Systems, Inc. in the U.S. District Court for the Northern District of California alleging that certain Blue Coat products infringe six of Finjan’s U.S. patents. On August 4, 2015, a jury returned a verdict that certain Blue Coat products infringe five of the Finjan patents-in-suit and awarded Finjan lump-sum damages of $40 million . On November 20, 2015, the trial court entered a judgment in favor of Finjan on the jury verdict and certain non-jury legal issues. On July 28, 2016, in its ruling on post-trial motions the trial court denied Blue Coat’s motions seeking a new trial or judgment as a matter of law and denied Finjan’s request for enhanced damages and attorneys’ fees. In August 2016, we completed our acquisition of Blue Coat. We intend to vigorously contest the judgment and have filed an appeal with the Federal Circuit Court of Appeals. Our current best estimated loss and related interest with respect to the jury verdict is $40 million , which was accrued by Blue Coat and assumed by us as a part of the acquisition of Blue Coat. 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. |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
Jun. 30, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations On January 29, 2016, we completed the sale of Veritas. The results of Veritas are presented as discontinued operations in our Condensed Consolidated Statements of Operations and thus have been excluded from continuing operations and segment results for all reported periods. The following table presents information regarding certain components of income (loss) from discontinued operations, net of income taxes: Three Months Ended (In millions) June 30, 2017 July 1, 2016 Net revenues $ 19 $ 72 Cost of revenues (3 ) (3 ) Operating expenses (1 ) (24 ) Gain on sale of Veritas 3 38 Other income, net — 2 Income from discontinued operations before income taxes 18 85 Income taxes expense 41 16 Income (loss) from discontinued operations, net of income taxes $ (23 ) $ 69 During the first quarter of fiscal 2017, we received an additional payment which represented a purchase price adjustment for the sale of Veritas. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Jun. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events In June 2017 and July 2017, we entered into definitive agreements to acquire Fireglass, Ltd. (“Fireglass”) and Skycure, Ltd. (“Skycure”), respectively. Both acquisitions closed in our second quarter of fiscal 2018. The consideration for the acquisitions of Fireglass and Skycure was approximately $225 million and $205 million , respectively, and primarily consisted of cash. On August 2, 2017, we entered into a definitive agreement to sell our website security and related public key infrastructure products to Thoma Bravo, LLC’s portfolio company DigiCert, Inc. (“DigiCert”). We expect to receive approximately $950 million in upfront cash proceeds and approximately a 30% equity interest in the common stock of the DigiCert business. The transaction, which has been unanimously approved by our Board of Directors, is expected to be completed in our third quarter of fiscal 2018, subject to the satisfaction of customary closing conditions. We expect that effective in our second quarter of fiscal 2018, the financial results of our website security business will be presented as discontinued operations on the Condensed Consolidated Statements of Income when we meet the criteria for the website security business to be classified as held for sale on our Condensed Consolidated Balance Sheets. |
Description of Business and S20
Description of Business and Significant Accounting Policies (Policies) | 3 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of presentation | Basis of presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States of America (“U.S.”) for interim financial information. In the opinion of management, the unaudited Condensed Consolidated Financial Statements contain all adjustments, consisting only of normal recurring items, except as otherwise noted, necessary for the fair presentation of our financial position, results of operations, and cash flows for the interim periods. These unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and accompanying Notes thereto included in our Annual Report on Form 10-K for the fiscal year ended March 31, 2017 . The results of operations for the three months ended June 30, 2017 are not necessarily indicative of the results expected for the entire fiscal year. |
Fiscal accounting year | We have a 52/53-week fiscal year ending on the Friday closest to March 31. Unless otherwise stated, references to three month ended periods in this report relate to fiscal periods ended June 30, 2017 and July 1, 2016 . The three months ended June 30, 2017 and July 1, 2016 each consisted of 13 weeks. Our 2018 fiscal year consists of 52 weeks and ends on March 30, 2018 . |
Recently issued authoritative guidance | Recently adopted authoritative guidance Employee Stock-Based Compensation. In the first quarter of fiscal 2018, we adopted new guidance to simplify accounting for share-based payment transactions. Prior to adoption, excess tax benefits resulting from the difference between the deduction for tax purposes and the compensation costs recognized for financial reporting were not recognized until the deduction reduced taxes payable. As a result of the new guidance, we now recognize excess tax benefits in the current accounting period. In addition, we elected to continue to estimate forfeitures rather than record the forfeitures as they occur. We adopted the change in accounting method using the modified retrospective method. We also elected to retrospectively apply the change in presentation of excess tax benefits recognized on stock-based compensation expense in our Condensed Consolidated Statements of Cash Flows from financing activities to operating activities. The cumulative effect of adopting the new accounting guidance was not material. There have been no other material changes in our significant accounting policies as of and for the three months ended June 30, 2017 , as compared to the significant accounting policies described in our Annual Report on Form 10-K for the fiscal year ended March 31, 2017 . |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Reportable Segment Data | The following table summarizes the operating results of our reporting segments: Three Months Ended (In millions) June 30, 2017 July 1, 2016 Total Segments: Net revenues $ 1,175 $ 884 Operating income $ 324 $ 253 Enterprise Security: Net revenues $ 646 $ 481 Operating income $ 94 $ 28 Consumer Digital Safety: Net revenues $ 529 $ 403 Operating income $ 230 $ 225 |
Reconciliation of Total Segment Operating Income from Continuing Operations to Total Consolidated Operating Income | The following table provides a reconciliation of our total reportable segments’ operating income to our total operating income (loss): Three Months Ended (In millions) June 30, 2017 July 1, 2016 Total segment operating income $ 324 $ 253 Reconciling items: Stock-based compensation expense 147 49 Amortization of intangible assets 114 20 Restructuring, transition and other 88 70 Acquisition and integration costs 19 8 Total consolidated operating income (loss) from continuing operations $ (44 ) $ 106 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 3 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Components of Net Income Per Share | The components of net income (loss) per share are as follows: Three Months Ended (In millions, except per share data) June 30, 2017 July 1, 2016 Income (loss) from continuing operations $ (110 ) $ 66 Income (loss) from discontinued operations, net of income taxes (23 ) 69 Net income (loss) $ (133 ) $ 135 Income (loss) per share - basic: Continuing operations $ (0.18 ) $ 0.11 Discontinued operations $ (0.04 ) $ 0.11 Net income (loss) per share - basic $ (0.22 ) $ 0.22 Income (loss) per share - diluted: Continuing operations $ (0.18 ) $ 0.11 Discontinued operations $ (0.04 ) $ 0.11 Net income (loss) per share - diluted $ (0.22 ) $ 0.22 Weighted-average shares outstanding - basic 609 613 Dilutive potential shares — 7 Weighted-average shares outstanding - diluted 609 620 |
Schedule of Antidilutive Securities Excluded from Diluted Net Income (Loss) Per Share | The following have been excluded from the computation of diluted net income (loss) per share because their effect would have been anti-dilutive: As of (In millions) June 30, 2017 July 1, 2016 Convertible shares 91 — RSUs and PRUs 33 2 Stock options and ESPP 20 — Total 144 2 |
Restructuring, Separation, Tran
Restructuring, Separation, Transition and Other Costs (Tables) | 3 Months Ended |
Jun. 30, 2017 | |
Restructuring and Related Activities [Abstract] | |
Schedule of the Restructuring, Separation, Transition and Other Expense Summary | Restructuring, transition and other costs summary For the three months ended June 30, 2017 we incurred the following restructuring, transition and other costs: (In millions) June 30, 2017 Severance and termination costs $ 27 Other exit and disposal costs 32 Asset write-offs 1 Transition costs 28 Total restructuring, transition and other $ 88 |
Schedule of the Restructuring and Separation Liabilities Summary | Restructuring liabilities summary As of June 30, 2017 and March 31, 2017 , the restructuring liabilities are included in accounts payable, other current liabilities and other long-term obligations in our Condensed Consolidated Balance Sheets. (In millions) Balance as of March 31, 2017 Costs, Net of Cash Non-Cash Charges Balance as of June 30, 2017 Cumulative Incurred to Date for FY17 Plan Severance and termination costs $ 20 $ 27 $ (32 ) $ — $ 15 $ 103 Other exit and disposal costs 26 32 (20 ) (7 ) 31 111 Asset write-offs — 1 — (1 ) — 24 Total $ 46 $ 60 $ (52 ) $ (8 ) $ 46 $ 238 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Summary of Effective Tax Rate | The following table summarizes our effective tax rate for income (loss) from continuing operations for the periods presented: Three Months Ended (In millions, except percentages) June 30, 2017 July 1, 2016 Income (loss) from continuing operations before income taxes $ (134 ) $ 97 Income tax expense (benefit) $ (24 ) $ 31 Effective tax rate 18 % 32 % |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Jun. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in the Carrying Amount of Goodwill by Segment | The changes in the carrying amount of goodwill by segment are as follows: (In millions) Consumer Digital Safety Enterprise Security Total Net balance as of March 31, 2017 $ 2,549 $ 6,078 $ 8,627 Acquisitions 2 5 7 Translation adjustments 1 3 4 Net balance as of June 30, 2017 $ 2,552 $ 6,086 $ 8,638 |
Schedule of Intangible Assets, Net, Finite-Lived | June 30, 2017 March 31, 2017 (In millions) Gross Accumulated Net Gross Accumulated Net Customer relationships $ 1,650 $ (382 ) $ 1,268 $ 1,646 $ (322 ) $ 1,324 Developed technology 1,007 (284 ) 723 1,006 (229 ) 777 Finite-lived trade names and other 46 (28 ) 18 46 (26 ) 20 Total finite-lived intangible assets 2,703 (694 ) 2,009 2,698 (577 ) 2,121 Indefinite-lived trade names 864 — 864 864 — 864 In-process research and development 19 — 19 19 — 19 Total intangible assets $ 3,586 $ (694 ) $ 2,892 $ 3,581 $ (577 ) $ 3,004 |
Schedule of Intangible Assets, Net, Indefinite-Lived | June 30, 2017 March 31, 2017 (In millions) Gross Accumulated Net Gross Accumulated Net Customer relationships $ 1,650 $ (382 ) $ 1,268 $ 1,646 $ (322 ) $ 1,324 Developed technology 1,007 (284 ) 723 1,006 (229 ) 777 Finite-lived trade names and other 46 (28 ) 18 46 (26 ) 20 Total finite-lived intangible assets 2,703 (694 ) 2,009 2,698 (577 ) 2,121 Indefinite-lived trade names 864 — 864 864 — 864 In-process research and development 19 — 19 19 — 19 Total intangible assets $ 3,586 $ (694 ) $ 2,892 $ 3,581 $ (577 ) $ 3,004 |
Schedule of Future Intangible Asset Amortization Expense | As of June 30, 2017 , future amortization expense related to intangible assets that have finite lives is as follows by fiscal year: (In millions) June 30, 2017 Remainder of 2018 $ 337 2019 428 2020 407 2021 296 2022 235 Thereafter 306 Total $ 2,009 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Components of Debt | The following table summarizes components of our debt: (In millions, except percentages) June 30, 2017 March 31, 2017 Effective 2.75% Senior Notes due June 15, 2017 $ — $ 600 2.79 % Senior Term Loan A-1 due May 10, 2019 800 1,000 LIBOR plus (1) Senior Term Loan A-2 due August 1, 2019 800 800 LIBOR plus (1) Senior Term Loan A-3 due August 1, 2019 200 200 LIBOR plus (1) 4.2% Senior Notes due September 15, 2020 750 750 4.25 % 2.5% Convertible Senior Notes due April 1, 2021 500 500 3.76 % Senior Term Loan A-5 due August 1, 2021 500 1,710 LIBOR plus (1) 2.0% Convertible Senior Notes due August 15, 2021 1,250 1,250 2.66 % 3.95% Senior Notes due June 15, 2022 400 400 4.05 % 5.0% Senior Notes due April 15, 2025 1,100 1,100 5.23 % Total principal amount 6,300 8,310 Less: Unamortized discount and issuance costs (98 ) (124 ) Total debt 6,202 8,186 Less: Current portion — (1,310 ) Total long-term portion $ 6,202 $ 6,876 (1) The senior term facilities bear interest at a rate equal to the London Interbank Offered Rate (“LIBOR”) plus a margin of 1.50% to 1.75% based on the current debt rating of our non-credit-enhanced, senior unsecured long-term debt and our underlying loan agreements. |
Schedule of Maturities of Long-term Debt | The future maturities of debt by fiscal year are as follows as of June 30, 2017 : (In millions) June 30, 2017 Remainder of 2018 $ — 2019 — 2020 1,800 2021 1,250 2022 1,750 Thereafter 1,500 Total future maturities of debt $ 6,300 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of the Carrying Value of Assets Measured at Fair Value on a Recurring Basis | The following table summarizes our assets measured at fair value on a recurring basis, by level, within the fair value hierarchy: June 30, 2017 March 31, 2017 (In millions) Fair Value Cash and Cash Equivalents Short-Term Investments Fair Value Cash and Cash Equivalents Short-Term Investments Cash $ 480 $ 480 $ — $ 1,183 $ 1,183 $ — Non-negotiable certificates of deposit 39 39 — 15 15 — Level 1 (Quoted prices in active markets for identical assets): Money market 1,298 1,298 — 2,532 2,532 — U.S. government securities 102 102 — 94 94 — Marketable equity securities 8 — 8 9 — 9 Total level 1 1,408 1,400 8 2,635 2,626 9 Level 2 (Significant other observable inputs): U.S. agency securities 64 64 — 75 75 — Commercial paper 323 323 — 348 348 — Total level 2 387 387 — 423 423 — Total $ 2,314 $ 2,306 $ 8 $ 4,256 $ 4,247 $ 9 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Summary of Dividends Declared and Paid | The following table summarizes dividends declared and paid and dividend equivalents paid for the periods presented: Three Months Ended (In millions, except per share data) June 30, 2017 July 1, 2016 Dividends declared and paid $ 46 $ 46 Dividend equivalents paid 20 22 Total dividends and dividend equivalents paid $ 66 $ 68 Cash dividends declared per common share $ 0.075 $ 0.075 |
Schedule of Accumulated Other Comprehensive Income | Components of accumulated other comprehensive income, on a net of tax basis, were as follows: (In millions) Foreign Currency Translation Adjustments Unrealized Gain on Available-For-Sale Securities Total Balance as of March 31, 2017 $ 7 $ 5 $ 12 Other comprehensive loss before reclassifications (2 ) — (2 ) Balance as of June 30, 2017 $ 5 $ 5 $ 10 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Jun. 30, 2017 | |
Share-based Compensation [Abstract] | |
Schedule of Stock-Based Compensation Expense Recognized in our Condensed Consolidated Statements of Income | The following table presents the stock-based compensation expense recognized in our Condensed Consolidated Statements of Operations : Three Months Ended (In millions) June 30, 2017 July 1, 2016 Cost of revenues $ 6 $ 3 Sales and marketing 43 14 Research and development 41 15 General and administrative 57 17 Total stock-based compensation expense 147 49 Tax benefit associated with stock-based compensation expense (51 ) (15 ) Total net stock-based compensation expense $ 96 $ 34 |
Schedule of Additional Information Related to Stock-Based Compensation | The following table summarizes additional information related to our stock-based compensation: Three Months Ended (In millions, except per grant data) June 30, 2017 July 1, 2016 Restricted stock units: Weighted-average fair value per grant $ 29.91 $ 17.30 Awards granted 7.1 8.5 Total fair value of awards released $ 170 $ 77 Total unrecognized compensation expense $ 370 $ 273 Weighted-average remaining vesting period 2.0 years 2.2 years Performance-based restricted stock units: Weighted-average fair value per grant $ 33.96 $ 17.30 Awards granted 2.5 1.3 Total fair value of awards released $ 21 $ 2 Total unrecognized compensation expense $ 191 $ 44 Weighted-average remaining vesting period 1.4 years 1.5 years Stock options: Total intrinsic value of stock options exercised $ 17 $ — Total unrecognized compensation expense $ 119 $ — Weighted-average remaining vesting period 1.4 years — |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
Jun. 30, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Summary of Components of Discontinued Operations | The following table presents information regarding certain components of income (loss) from discontinued operations, net of income taxes: Three Months Ended (In millions) June 30, 2017 July 1, 2016 Net revenues $ 19 $ 72 Cost of revenues (3 ) (3 ) Operating expenses (1 ) (24 ) Gain on sale of Veritas 3 38 Other income, net — 2 Income from discontinued operations before income taxes 18 85 Income taxes expense 41 16 Income (loss) from discontinued operations, net of income taxes $ (23 ) $ 69 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 3 Months Ended | |
Jun. 30, 2017USD ($)segment | Jul. 01, 2016USD ($) | |
Segment Reporting [Abstract] | ||
Number of reportable segments | segment | 2 | |
Segment Reporting Information [Line Items] | ||
Net revenues | $ 1,175,000,000 | $ 884,000,000 |
Intersegment Eliminations | ||
Segment Reporting Information [Line Items] | ||
Net revenues | $ 0 | $ 0 |
Segment Information (Schedule o
Segment Information (Schedule of Reportable Segment Data) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2017 | Jul. 01, 2016 | |
Segment Reporting Information [Line Items] | ||
Net revenues | $ 1,175 | $ 884 |
Operating income | (44) | 106 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 1,175 | 884 |
Operating income | 324 | 253 |
Operating Segments | Enterprise Security: | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 646 | 481 |
Operating income | 94 | 28 |
Operating Segments | Consumer Digital Safety: | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 529 | 403 |
Operating income | $ 230 | $ 225 |
Segment Information (Reconcilia
Segment Information (Reconciliation of Total Segment Operating Income to Total Consolidated Operating Income) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2017 | Jul. 01, 2016 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Operating income (loss) | $ (44) | $ 106 |
Stock-based compensation expense | 147 | 49 |
Operating Segments | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Operating income (loss) | 324 | 253 |
Segment Reconciling Items | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Stock-based compensation expense | 147 | 49 |
Amortization of intangible assets | 114 | 20 |
Restructuring, transition and other | 88 | 70 |
Acquisition and integration costs | $ 19 | $ 8 |
Net Income (Loss) Per Share (Sc
Net Income (Loss) Per Share (Schedule of Components of Net Income Per Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Jun. 30, 2017 | Jul. 01, 2016 | |
Earnings Per Share [Abstract] | ||
Income (loss) from continuing operations | $ (110) | $ 66 |
Income (loss) from discontinued operations, net of income taxes | (23) | 69 |
Net income (loss) | $ (133) | $ 135 |
Income (loss) per share - basic: | ||
Continuing operations (in usd per share) | $ (0.18) | $ 0.11 |
Discontinued operations (in usd per share) | (0.04) | 0.11 |
Net income per share — basic (in usd per share) | (0.22) | 0.22 |
Income (loss) per share - diluted: | ||
Continuing operations (in usd per share) | (0.18) | 0.11 |
Discontinued operations (in usd per share) | (0.04) | 0.11 |
Net income per share — diluted (in usd per share) | $ (0.22) | $ 0.22 |
Weighted-average shares outstanding — basic (in shares) | 609 | 613 |
Dilutive potential shares (in shares) | 0 | 7 |
Weighted-average shares outstanding - diluted (in shares) | 609 | 620 |
Net Income (Loss) Per Share (35
Net Income (Loss) Per Share (Schedule of Antidilutive Securities Excluded from Diluted Net Income Per Share) (Details) - shares | 3 Months Ended | |
Jun. 30, 2017 | Jul. 01, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive potential shares (in shares) | 144 | 2 |
Convertible shares | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive potential shares (in shares) | 91 | 0 |
RSUs and PRUs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive potential shares (in shares) | 33 | 2 |
Stock options and ESPP | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive potential shares (in shares) | 20 | 0 |
Net Income (Loss) Per Share (Na
Net Income (Loss) Per Share (Narrative) (Details) - Convertible Debt | Jun. 30, 2017$ / shares |
2.5% Convertible Senior Notes due April 1, 2021 | |
Debt Instrument [Line Items] | |
Conversion price (in usd per share) | $ 16.77 |
Stated interest rate (as a percent) | 2.50% |
2.0% Convertible Senior Notes due August 15, 2021 | |
Debt Instrument [Line Items] | |
Conversion price (in usd per share) | $ 20.41 |
Stated interest rate (as a percent) | 2.00% |
Restructuring, Separation, Tr37
Restructuring, Separation, Transition and Other Costs (Schedule of the Restructuring, Separation and Transition Expense Summary) (Details) - Fiscal 2017 Plan: $ in Millions | 3 Months Ended |
Jun. 30, 2017USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring costs | $ 60 |
Total restructuring, transition and other | 88 |
Continuing Operations | |
Restructuring Cost and Reserve [Line Items] | |
Transition costs | 28 |
Severance and termination benefits | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring costs | 27 |
Severance and termination benefits | Continuing Operations | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring costs | 27 |
Other exit and disposal costs | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring costs | 32 |
Other exit and disposal costs | Continuing Operations | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring costs | 32 |
Asset write-offs | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring costs | 1 |
Asset write-offs | Continuing Operations | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring costs | 1 |
Minimum | |
Restructuring Cost and Reserve [Line Items] | |
Expected cost | 430 |
Minimum | Severance and termination benefits | |
Restructuring Cost and Reserve [Line Items] | |
Expected cost | 185 |
Minimum | Other exit and disposal costs | |
Restructuring Cost and Reserve [Line Items] | |
Expected cost | 205 |
Maximum | |
Restructuring Cost and Reserve [Line Items] | |
Expected cost | 480 |
Maximum | Severance and termination benefits | |
Restructuring Cost and Reserve [Line Items] | |
Expected cost | 195 |
Maximum | Other exit and disposal costs | |
Restructuring Cost and Reserve [Line Items] | |
Expected cost | $ 230 |
Restructuring, Separation, Tr38
Restructuring, Separation, Transition and Other Costs (Schedule of the Restructuring and Separation Liabilities Summary) (Details) - Fiscal 2017 Plan: $ in Millions | 3 Months Ended |
Jun. 30, 2017USD ($) | |
Restructuring Reserve [Roll Forward] | |
Balance as of March 31, 2017 | $ 46 |
Restructuring, transition and other | 60 |
Cash Payments | (52) |
Non-Cash Charges | (8) |
Balance as of June 30, 2017 | 46 |
Cumulative Incurred to Date for FY17 Plan | 238 |
Severance and termination costs | |
Restructuring Reserve [Roll Forward] | |
Balance as of March 31, 2017 | 20 |
Restructuring, transition and other | 27 |
Cash Payments | (32) |
Non-Cash Charges | 0 |
Balance as of June 30, 2017 | 15 |
Cumulative Incurred to Date for FY17 Plan | 103 |
Other exit and disposal costs | |
Restructuring Reserve [Roll Forward] | |
Balance as of March 31, 2017 | 26 |
Restructuring, transition and other | 32 |
Cash Payments | (20) |
Non-Cash Charges | (7) |
Balance as of June 30, 2017 | 31 |
Cumulative Incurred to Date for FY17 Plan | 111 |
Asset write-offs | |
Restructuring Reserve [Roll Forward] | |
Balance as of March 31, 2017 | 0 |
Restructuring, transition and other | 1 |
Cash Payments | 0 |
Non-Cash Charges | (1) |
Balance as of June 30, 2017 | 0 |
Cumulative Incurred to Date for FY17 Plan | $ 24 |
Income Taxes (Schedule of Effec
Income Taxes (Schedule of Effective Tax Rate) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2017 | Jul. 01, 2016 | |
Income Tax Disclosure [Abstract] | ||
Income (loss) from continuing operations before income taxes | $ (134) | $ 97 |
Income tax expense (benefit) | $ (24) | $ 31 |
Effective tax rate (as a percent) | 18.00% | 32.00% |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2017 | Jul. 01, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Decrease in unrecognized tax benefits is reasonably possible | $ 12 | |
Information Management | Discontinued Operations, Held-for-sale | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Income taxes expense | $ 41 | $ 16 |
Goodwill and Intangible Asset41
Goodwill and Intangible Assets (Schedule of Changes in the Carrying Amount of Goodwill) (Details) $ in Millions | 3 Months Ended | |
Jun. 30, 2017USD ($) | ||
Goodwill [Roll Forward] | ||
March 31, 2017 | $ 8,627 | [1] |
Acquisitions | 7 | |
Translation adjustments | 4 | |
June 30, 2017 | 8,638 | |
Consumer Digital Safety | ||
Goodwill [Roll Forward] | ||
March 31, 2017 | 2,549 | |
Acquisitions | 2 | |
Translation adjustments | 1 | |
June 30, 2017 | 2,552 | |
Enterprise Security | ||
Goodwill [Roll Forward] | ||
March 31, 2017 | 6,078 | |
Acquisitions | 5 | |
Translation adjustments | 3 | |
June 30, 2017 | $ 6,086 | |
[1] | Derived from audited financial statements. |
Goodwill and Intangible Asset42
Goodwill and Intangible Assets (Schedule of Intangible Assets, Net) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Mar. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 2,703 | $ 2,698 | |
Accumulated Amortization | (694) | (577) | |
Net Carrying Amount | 2,009 | 2,121 | |
Indefinite-lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 3,586 | 3,581 | |
Net Carrying Amount | 2,892 | 3,004 | [1] |
Trade Names | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets | 864 | 864 | |
In-process research and development | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets | 19 | 19 | |
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 1,650 | 1,646 | |
Accumulated Amortization | (382) | (322) | |
Net Carrying Amount | 1,268 | 1,324 | |
Developed technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 1,007 | 1,006 | |
Accumulated Amortization | (284) | (229) | |
Net Carrying Amount | 723 | 777 | |
Trade Names | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 46 | 46 | |
Accumulated Amortization | (28) | (26) | |
Net Carrying Amount | $ 18 | $ 20 | |
[1] | Derived from audited financial statements. |
Goodwill and Intangible Asset43
Goodwill and Intangible Assets (Schedule of Future Intangible Asset Amortization Expense) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Mar. 31, 2017 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remainder of 2018 | $ 337 | |
2,019 | 428 | |
2,020 | 407 | |
2,021 | 296 | |
2,022 | 235 | |
Thereafter | 306 | |
Net Carrying Amount | $ 2,009 | $ 2,121 |
Debt (Summary of Components of
Debt (Summary of Components of Debt) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2017 | Mar. 31, 2017 | ||
Debt Instrument [Line Items] | |||
Total principal amount | $ 6,300 | $ 8,310 | |
Less: unamortized discount and issuance costs | (98) | (124) | |
Total debt | 6,202 | 8,186 | |
Less: current portion | 0 | (1,310) | [1] |
Total long-term portion | $ 6,202 | 6,876 | [1] |
Senior Notes | 2.75% Senior Notes due June 15, 2017 | |||
Debt Instrument [Line Items] | |||
Stated interest rate (as a percent) | 2.75% | ||
Total principal amount | $ 0 | 600 | |
Effective interest rate (as a percent) | 2.79% | ||
Senior Notes | 4.2% Senior Notes due September 15, 2020 | |||
Debt Instrument [Line Items] | |||
Stated interest rate (as a percent) | 4.20% | ||
Total principal amount | $ 750 | 750 | |
Effective interest rate (as a percent) | 4.25% | ||
Senior Notes | 3.95% Senior Notes due June 15, 2022 | |||
Debt Instrument [Line Items] | |||
Stated interest rate (as a percent) | 3.95% | ||
Total principal amount | $ 400 | 400 | |
Effective interest rate (as a percent) | 4.05% | ||
Senior Notes | 5.0% Senior Notes due April 15, 2025 | |||
Debt Instrument [Line Items] | |||
Stated interest rate (as a percent) | 5.00% | ||
Total principal amount | $ 1,100 | 1,100 | |
Effective interest rate (as a percent) | 5.23% | ||
Unsecured Debt | Senior Term Loan A-1 due May 10, 2019 | |||
Debt Instrument [Line Items] | |||
Total principal amount | $ 800 | 1,000 | |
Unsecured Debt | Senior Term Loan A-2 due August 1, 2019 | |||
Debt Instrument [Line Items] | |||
Total principal amount | 800 | 800 | |
Unsecured Debt | Senior Term Loan A-3 due August 1, 2019 | |||
Debt Instrument [Line Items] | |||
Total principal amount | 200 | 200 | |
Unsecured Debt | Senior Term Loan A-5 due August 1, 2021 | |||
Debt Instrument [Line Items] | |||
Total principal amount | $ 500 | 1,710 | |
Convertible Debt | 2.5% Convertible Senior Notes due April 1, 2021 | |||
Debt Instrument [Line Items] | |||
Stated interest rate (as a percent) | 2.50% | ||
Total principal amount | $ 500 | 500 | |
Effective interest rate (as a percent) | 3.76% | ||
Convertible Debt | 2.0% Convertible Senior Notes due August 15, 2021 | |||
Debt Instrument [Line Items] | |||
Stated interest rate (as a percent) | 2.00% | ||
Total principal amount | $ 1,250 | $ 1,250 | |
Minimum | Senior Notes | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.50% | ||
Maximum | Senior Notes | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.75% | ||
[1] | Derived from audited financial statements. |
Debt (Maturities of Long-term D
Debt (Maturities of Long-term Debt) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Mar. 31, 2017 |
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
Remainder of 2018 | $ 0 | |
2,019 | 0 | |
2,020 | 1,800 | |
2,021 | 1,250 | |
2,022 | 1,750 | |
Thereafter | 1,500 | |
Total future maturities of debt | $ 6,300 | $ 8,310 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2017 | Jul. 01, 2016 | |
Debt Instrument [Line Items] | ||
Debt repayments | $ 2,010 | $ 17 |
Senior Notes | Senior Term Loan A-5 due August 1, 2021 | ||
Debt Instrument [Line Items] | ||
Debt repayments | 1,200 | |
Senior Notes | Senior Term Loan A-1 Facility Due May 10, 2019 | ||
Debt Instrument [Line Items] | ||
Debt repayments | 200 | |
Senior Notes | 2.75% Senior Notes due June 15, 2017 | ||
Debt Instrument [Line Items] | ||
Debt repayments | $ 600 | |
Stated interest rate (as a percent) | 2.75% |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule of the Carrying Value of Assets Measured at Fair Value on a Recurring Basis) (Details) - Recurring - USD ($) $ in Millions | Jun. 30, 2017 | Mar. 31, 2017 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | $ 2,314 | $ 4,256 |
Fair Value | Cash | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 480 | 1,183 |
Fair Value | Non-negotiable certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 39 | 15 |
Fair Value | Level 1 (Quoted prices in active markets for identical assets): | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 1,408 | 2,635 |
Fair Value | Level 1 (Quoted prices in active markets for identical assets): | Money market | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 1,298 | 2,532 |
Fair Value | Level 1 (Quoted prices in active markets for identical assets): | U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 102 | 94 |
Fair Value | Level 1 (Quoted prices in active markets for identical assets): | Marketable equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 8 | 9 |
Fair Value | Level 2 (Significant other observable inputs): | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 387 | 423 |
Fair Value | Level 2 (Significant other observable inputs): | U.S. agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 64 | 75 |
Fair Value | Level 2 (Significant other observable inputs): | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 323 | 348 |
Reported Value Measurement | Cash and Cash Equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 2,306 | 4,247 |
Reported Value Measurement | Cash and Cash Equivalents | Cash | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 480 | 1,183 |
Reported Value Measurement | Cash and Cash Equivalents | Non-negotiable certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 39 | 15 |
Reported Value Measurement | Cash and Cash Equivalents | Level 1 (Quoted prices in active markets for identical assets): | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 1,400 | 2,626 |
Reported Value Measurement | Cash and Cash Equivalents | Level 1 (Quoted prices in active markets for identical assets): | Money market | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 1,298 | 2,532 |
Reported Value Measurement | Cash and Cash Equivalents | Level 1 (Quoted prices in active markets for identical assets): | U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 102 | 94 |
Reported Value Measurement | Cash and Cash Equivalents | Level 1 (Quoted prices in active markets for identical assets): | Marketable equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Reported Value Measurement | Cash and Cash Equivalents | Level 2 (Significant other observable inputs): | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 387 | 423 |
Reported Value Measurement | Cash and Cash Equivalents | Level 2 (Significant other observable inputs): | U.S. agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 64 | 75 |
Reported Value Measurement | Cash and Cash Equivalents | Level 2 (Significant other observable inputs): | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 323 | 348 |
Reported Value Measurement | Short-Term Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 8 | 9 |
Reported Value Measurement | Short-Term Investments | Cash | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Reported Value Measurement | Short-Term Investments | Non-negotiable certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Reported Value Measurement | Short-Term Investments | Level 1 (Quoted prices in active markets for identical assets): | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 8 | 9 |
Reported Value Measurement | Short-Term Investments | Level 1 (Quoted prices in active markets for identical assets): | Money market | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Reported Value Measurement | Short-Term Investments | Level 1 (Quoted prices in active markets for identical assets): | U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Reported Value Measurement | Short-Term Investments | Level 1 (Quoted prices in active markets for identical assets): | Marketable equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 8 | 9 |
Reported Value Measurement | Short-Term Investments | Level 2 (Significant other observable inputs): | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Reported Value Measurement | Short-Term Investments | Level 2 (Significant other observable inputs): | U.S. agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Reported Value Measurement | Short-Term Investments | Level 2 (Significant other observable inputs): | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | $ 0 | $ 0 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2017 | Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | ||
Transfers between fair value measurement levels | $ 0 | |
Level 2 (Significant other observable inputs): | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Fair value of debt | $ 6,400,000,000 | $ 8,300,000,000 |
Stockholders' Equity (Summary o
Stockholders' Equity (Summary of Dividends Declared and Paid) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Jun. 30, 2017 | Jul. 01, 2016 | |
Equity [Abstract] | ||
Dividends declared and paid | $ 46 | $ 46 |
Dividend equivalents paid | 20 | 22 |
Total dividends and dividend equivalents paid | $ 66 | $ 68 |
Cash dividends declared per common share (in usd per share) | $ 0.075 | $ 0.075 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Aug. 02, 2017 | Jun. 30, 2017 | May 19, 2017 | Mar. 31, 2017 | Jul. 01, 2016 |
Class of Stock [Line Items] | |||||
Dividends declared per common share (in usd per share) | $ 0.075 | $ 0.075 | |||
March 2017 Accelerated Stock Repurchase Agreement | |||||
Class of Stock [Line Items] | |||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 800 | ||||
Stock Repurchased and Retired During Period, Value | $ 500 | ||||
Repurchases of common stock (in shares) | 2.2 | 16.4 | 14.2 | ||
Average price paid per share (in usd per share) | $ 30.51 | ||||
Subsequent Event | Common Stock | |||||
Class of Stock [Line Items] | |||||
Dividends declared per common share (in usd per share) | $ 0.075 |
Stockholders' Equity (Schedule
Stockholders' Equity (Schedule of Accumulated Other Comprehensive Income) (Details) $ in Millions | 3 Months Ended | |
Jun. 30, 2017USD ($) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
March 31, 2017 | $ 3,487 | [1] |
June 30, 2017 | 3,389 | |
Foreign Currency Translation Adjustments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
March 31, 2017 | 7 | |
Other comprehensive loss before reclassifications | (2) | |
June 30, 2017 | 5 | |
Unrealized Gain on Available-For-Sale Securities | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
March 31, 2017 | 5 | |
Other comprehensive loss before reclassifications | 0 | |
June 30, 2017 | 5 | |
Total | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
March 31, 2017 | 12 | |
Other comprehensive loss before reclassifications | (2) | |
June 30, 2017 | $ 10 | |
[1] | Derived from audited financial statements. |
Stock-Based Compensation (Sched
Stock-Based Compensation (Schedule of Stock-Based Compensation Expense Recognized in our Condensed Consolidated Statements of Income) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2017 | Jul. 01, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | $ 147 | $ 49 |
Tax benefit associated with stock-based compensation expense | (51) | (15) |
Total net stock-based compensation expense | 96 | 34 |
Cost of revenues | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 6 | 3 |
Sales and marketing | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 43 | 14 |
Research and development | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 41 | 15 |
General and administrative | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | $ 57 | $ 17 |
Stock-Based Compensation (Sch53
Stock-Based Compensation (Schedule of Restricted Stock Units) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Jun. 30, 2017 | Jul. 01, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total intrinsic value of stock options exercised | $ 17 | $ 0 |
Total unrecognized compensation expense | $ 119 | $ 0 |
Stock options, weighted-average remaining vesting period (in years) | 1 year 5 months | |
Restricted stock units: | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted-average fair value per grant (in usd per share) | $ 29.91 | $ 17.30 |
Awards granted and assumed in acquisition (in shares) | 7.1 | 8.5 |
Total fair value of awards released | $ 170 | $ 77 |
Total unrecognized compensation expense | $ 370 | $ 273 |
Weighted-average remaining vesting period (in years) | 2 years | 2 years 2 months 7 days |
Performance-based restricted stock units: | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted-average fair value per grant (in usd per share) | $ 33.96 | $ 17.30 |
Awards granted and assumed in acquisition (in shares) | 2.5 | 1.3 |
Total fair value of awards released | $ 21 | $ 2 |
Total unrecognized compensation expense | $ 191 | $ 44 |
Weighted-average remaining vesting period (in years) | 1 year 5 months | 1 year 5 months 30 days |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Aug. 04, 2015USD ($)patent | Aug. 28, 2013patent | Jun. 30, 2017USD ($) | Jul. 01, 2016USD ($) | Sep. 30, 2012USD ($) | Aug. 31, 2015USD ($) | Jan. 31, 2014USD ($) |
Loss Contingencies [Line Items] | |||||||
Net revenues | $ 1,175 | $ 884 | |||||
GSA Schedule Contract | |||||||
Loss Contingencies [Line Items] | |||||||
Net revenues | $ 222 | ||||||
GSA initial analysis of damage exposure | $ 145 | ||||||
GSA Schedule Contract | Minimum | |||||||
Loss Contingencies [Line Items] | |||||||
Estimated loss | 25 | ||||||
Class Action Lawsuit vs. Symantec, Extended Download Services and Norton Download Insurance | |||||||
Loss Contingencies [Line Items] | |||||||
Accrual for settlement | $ 30 | ||||||
Finjan, Inc vs. Blue Coat Systems, Inc. | Pending Litigation | |||||||
Loss Contingencies [Line Items] | |||||||
Number of patents allegedly infringed | patent | 6 | ||||||
Finjan, Inc vs. Blue Coat Systems, Inc. | Judicial Ruling | |||||||
Loss Contingencies [Line Items] | |||||||
Estimated loss | $ 40 | ||||||
Number of patents found infringed | patent | 5 | ||||||
Damages awarded | $ 40 |
Discontinued Operations (Income
Discontinued Operations (Income (Loss) From Discontinued Operations) (Details) - Information Management - Discontinued Operations, Disposed of by Sale - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2017 | Jul. 01, 2016 | |
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | ||
Net revenues | $ 19 | $ 72 |
Cost of revenues | (3) | (3) |
Operating expenses | (1) | (24) |
Gain on sale of Veritas | 3 | 38 |
Other income, net | 0 | 2 |
Income from discontinued operations before income tax | 18 | 85 |
Income taxes expense | 41 | 16 |
Income (loss) from discontinued operations, net of income taxes | $ (23) | $ 69 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Millions | Aug. 01, 2017 | Jul. 31, 2017 | Jun. 30, 2017 |
Fireglass, Ltd. | |||
Subsequent Event [Line Items] | |||
Consideration for the acquisitions | $ 225 | ||
Skycure, Ltd. | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Consideration for the acquisitions | $ 205 | ||
Discontinued Operations, Disposed of by Sale | Website Security and Public Key Infrastructure Businesses | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Discontinued operation, ownership interest retained | 30.00% | ||
Discontinued Operations | Discontinued Operations, Disposed of by Sale | Website Security and Public Key Infrastructure Businesses | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Discontinued operation, consideration expected | $ 950 |