Cover
Cover - shares | 3 Months Ended | |
Jul. 03, 2020 | Jul. 30, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jul. 3, 2020 | |
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 Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 591,002,949 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0000849399 | |
Current Fiscal Year End Date | --04-02 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Jul. 03, 2020 | Apr. 03, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 1,073 | $ 2,177 |
Short-term investments | 58 | 86 |
Accounts receivable, net | 102 | 111 |
Other current assets | 364 | 435 |
Assets held for sale | 353 | 270 |
Total current assets | 1,950 | 3,079 |
Property and equipment, net | 88 | 238 |
Operating lease assets | 62 | 88 |
Intangible assets, net | 1,042 | 1,067 |
Goodwill | 2,588 | 2,585 |
Other long-term assets | 675 | 678 |
Total assets | 6,405 | 7,735 |
Current liabilities: | ||
Accounts payable | 60 | 87 |
Accrued compensation and benefits | 71 | 115 |
Current portion of long-term debt | 763 | 756 |
Contract liabilities | 1,028 | 1,049 |
Current operating lease liabilities | 26 | 28 |
Other current liabilities | 600 | 587 |
Total current liabilities | 2,548 | 2,622 |
Long-term debt | 2,841 | 3,465 |
Long-term contract liabilities | 30 | 27 |
Deferred income tax liabilities | 170 | 149 |
Long-term income taxes payable | 1,191 | 1,310 |
Long-term operating lease liabilities | 61 | 73 |
Other long-term liabilities | 67 | 79 |
Total liabilities | 6,908 | 7,725 |
Commitments and contingencies (Note 17) | ||
Stockholders’ equity (deficit): | ||
Common stock and additional paid-in capital, $0.01 par value: 3,000 shares authorized; 591 and 589 shares issued and outstanding as of July 3, 2020 and April 3, 2020, respectively | 2,713 | 3,356 |
Accumulated other comprehensive loss | (4) | (16) |
Accumulated deficit | (3,212) | (3,330) |
Total stockholders’ equity (deficit) | (503) | 10 |
Total liabilities and stockholders’ equity (deficit) | $ 6,405 | $ 7,735 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Jul. 03, 2020 | Apr. 03, 2020 |
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) | 591,000,000 | 589,000,000 |
Common stock, shares outstanding (in shares) | 591,000,000 | 589,000,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Jul. 03, 2020 | Jul. 05, 2019 | |
Income Statement [Abstract] | ||
Net revenues | $ 614 | $ 650 |
Cost of revenues | 86 | 96 |
Gross profit | 528 | 554 |
Operating expenses: | ||
Sales and marketing | 145 | 184 |
Research and development | 65 | 101 |
General and administrative | 53 | 96 |
Amortization of intangible assets | 18 | 20 |
Restructuring and other costs | 127 | 13 |
Total operating expenses | 408 | 414 |
Operating income | 120 | 140 |
Interest expense | (40) | (49) |
Other income, net | 19 | 1 |
Income from continuing operations before income taxes | 99 | 92 |
Income tax expense (benefit) | (50) | 54 |
Income from continuing operations | 149 | 38 |
Loss from discontinued operations | (31) | (12) |
Net income | $ 118 | $ 26 |
Income (loss) per share - basic: | ||
Continuing operations (in dollars per share) | $ 0.25 | $ 0.06 |
Discontinued operations (in dollars per share) | (0.05) | (0.02) |
Net income (loss) per share - basic (in dollars per share) | 0.20 | 0.04 |
Income (loss) per share - diluted: | ||
Continuing operations (in dollars per share) | 0.24 | 0.06 |
Discontinued operations (in dollars per share) | (0.05) | (0.02) |
Net income (loss) per share - diluted (in dollars per share) | $ 0.19 | $ 0.04 |
Weighted-average shares outstanding: | ||
Basic (in shares) | 590 | 619 |
Diluted (in shares) | 614 | 642 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 03, 2020 | Jul. 05, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 118 | $ 26 |
Other comprehensive income (loss), net of taxes: | ||
Foreign currency translation adjustments | 11 | (7) |
Net unrealized gain on available-for-sale securities | 1 | 1 |
Other comprehensive income from equity method investee | 0 | 1 |
Other comprehensive income (loss), net of taxes | 12 | (5) |
Comprehensive income | $ 130 | $ 21 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Deficit) (Unaudited) - USD ($) shares in Millions, $ in Millions | Total | Common Stock and Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit |
Beginning balance (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 | 26 | 26 | ||
Other comprehensive income (loss) | (5) | (5) | ||
Common stock issued under employee stock incentive plans (in shares) | 16 | |||
Common stock issued under employee stock incentive plans | 37 | $ 37 | ||
Shares withheld for taxes related to vesting of restricted stock units (in shares) | (3) | |||
Shares withheld for taxes related to vesting of restricted stock units | $ (57) | $ (57) | ||
Repurchases of common stock (in shares) | (25) | (26) | ||
Repurchases of common stock | $ (541) | $ (190) | (351) | |
Cash dividends declared and dividend equivalents accrued | (47) | (47) | ||
Stock-based compensation | 99 | $ 99 | ||
Ending balance (in shares) at Jul. 05, 2019 | 617 | |||
Ending balance at Jul. 05, 2019 | $ 5,250 | $ 4,701 | (12) | 561 |
Beginning balance (in shares) at Apr. 03, 2020 | 589 | 589 | ||
Beginning balance at Apr. 03, 2020 | $ 10 | $ 3,356 | (16) | (3,330) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 118 | 118 | ||
Other comprehensive income (loss) | 12 | 12 | ||
Common stock issued under employee stock incentive plans (in shares) | 3 | |||
Common stock issued under employee stock incentive plans | 2 | $ 2 | ||
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 | (17) | $ (17) | ||
Cash dividends declared and dividend equivalents accrued | (72) | (72) | ||
Stock-based compensation | 25 | 25 | ||
Adjustments to Additional Paid in Capital, Equity Component of Convertible Debt, Subsequent Adjustments | $ (581) | $ (581) | ||
Ending balance (in shares) at Jul. 03, 2020 | 591 | 591 | ||
Ending balance at Jul. 03, 2020 | $ (503) | $ 2,713 | $ (4) | $ (3,212) |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Jul. 03, 2020 | Jul. 05, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends declared per common share (in dollars per share) | $ 0.125 | $ 0.075 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 03, 2020 | Jul. 05, 2019 | |
OPERATING ACTIVITIES: | ||
Net income | $ 118 | $ 26 |
Adjustments: | ||
Amortization and depreciation | 46 | 158 |
Impairments of current and long-lived assets | 85 | 3 |
Stock-based compensation expense | 25 | 80 |
Deferred income taxes | 20 | (30) |
Gain on extinguishment of debt | (20) | 0 |
Loss from equity interest | 0 | 11 |
Non-cash operating lease expense | 6 | 12 |
Other | 24 | 1 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 5 | 270 |
Accounts payable | (28) | (21) |
Accrued compensation and benefits | (39) | (46) |
Contract liabilities | (29) | (161) |
Income taxes payable | (88) | 72 |
Other assets | 62 | 5 |
Other liabilities | (17) | (55) |
Net cash provided by operating activities | 170 | 325 |
INVESTING ACTIVITIES: | ||
Purchases of property and equipment | (1) | (49) |
Proceeds from maturities and sales of short-term investments | 29 | 92 |
Other | (5) | (5) |
Net cash provided by investing activities | 23 | 38 |
FINANCING ACTIVITIES: | ||
Repayments of debt and related equity component | (1,179) | 0 |
Net proceeds from sales of common stock under employee stock incentive plans | 2 | 37 |
Tax payments related to restricted stock units | (23) | (52) |
Dividends and dividend equivalents paid | (105) | (51) |
Repurchases of common stock | 0 | (559) |
Net cash used in financing activities | (1,305) | (625) |
Effect of exchange rate fluctuations on cash and cash equivalents | 8 | 3 |
Change in cash and cash equivalents | (1,104) | (259) |
Beginning cash and cash equivalents | 2,177 | 1,791 |
Ending cash and cash equivalents | $ 1,073 | $ 1,532 |
Description of business and Sig
Description of business and Significant Accounting Policies | 3 Months Ended |
Jul. 03, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of business and Significant Accounting Policies | Description of business and Significant Accounting Policies Business NortonLifeLock, Inc. is a leading provider of Cyber Safety solutions for consumers. Our NortonLifeLock branded solutions help customers protect their devices, online privacy, identity and home networks. Basis of presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles (GAAP) in the United States of America 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 included in our Annual Report on Form 10-K for the fiscal year ended April 3, 2020. The results of operations for the three months ended July 3, 2020 are not necessarily indicative of the results expected for the entire fiscal year. We have a 52/53-week fiscal year ending on the Friday closest to March 31. Unless otherwise stated, references to three-month periods in this report relate to fiscal periods ended July 3, 2020 and July 5, 2019. The three months ended July 3, 2020 consisted of 13 weeks, whereas the three months ended July 5, 2019 consisted of 14 weeks. Our 2021 fiscal year consists of 52 weeks and ends on April 2, 2021. Use of estimates The preparation of Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported and disclosed in the financial statements and accompanying notes. Such estimates include, but are not limited to, 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. Management determines these estimates and assumptions based on historical experience and on various other assumptions that are believed to be reasonable. Actual results could differ 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 Condensed Consolidated Financial Statements. Significant accounting policies There have been no material changes to our significant accounting policies as of and for the three months ended July 3, 2020, except for those noted in Note 2, as compared to the significant accounting policies described in our Annual Report on Form 10-K for the fiscal year ended April 3, 2020. |
Recent Accounting Standards
Recent Accounting Standards | 3 Months Ended |
Jul. 03, 2020 | |
Accounting Policies [Abstract] | |
Recent Accounting Standards | Recent Accounting Standards Recently adopted authoritative guidance Credit Losses. In June 2016, the Financial Accounting Standards Board (FASB) issued new authoritative guidance on credit losses which changes the impairment model for most financial assets and certain other instruments. On April 4, 2020, the first day of our fiscal 2021, we adopted the new guidance using the modified retrospective transition method. Upon adoption, we utilized a new forward-looking “expected loss” model to replace the incurred loss impairment model for our accounts receivable and other financial assets. Additionally, for available-for-sale debt securities with unrealized losses, we discontinued using the concept of “other than temporary” impairment and recognized the estimated credit loss as allowances. The cumulative effect from the adoption of this guidance was immaterial to our Condensed Consolidated Financial Statements. Internal-Use Software. In August 2018, the FASB issued new guidance that clarifies the accounting for implementation costs in a cloud computing arrangement. The new guidance aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. On April 4, 2020, we adopted the new guidance prospectively. The adoption of this guidance did not have a material impact on our Condensed Consolidated Financial Statements. Recently issued authoritative guidance not yet adopted 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. The standard will be effective for us in our first quarter of fiscal 2022, with early adoption permitted. We are currently evaluating the adoption date and the impact of the adoption of this guidance on our Condensed Consolidated Financial Statements and disclosures. |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
Jul. 03, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations On November 4, 2019, we completed the sale of certain of our Enterprise Security assets and certain liabilities to Broadcom Inc. (the Broadcom sale). As a result, the majority of the results of our Enterprise Security business were classified as discontinued operations in our Condensed Consolidated Statements of Operations and thus excluded from both continuing operations and segment results for all periods presented. 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 the three months ended July 3, 2020, the transition services were completed. Dedicated direct costs, net of charges to Broadcom, for these transition services were $8 million during the three months ended July 3, 2020 and were presented as part of Other income, net in the Condensed Consolidated Statements of Operations. The following table presents information regarding certain components of loss from discontinued operations, net of income taxes: Three Months Ended (In millions) July 3, 2020 July 5, 2019 Net revenues $ — $ 597 Gross profit $ — $ 421 Operating income (loss) $ (42) $ 17 Income (loss) before income taxes $ (41) $ 16 Income tax expense (benefit) $ (10) $ 28 Loss from discontinued operations $ (31) $ (12) The following table presents significant non-cash items and capital expenditures of discontinued operations: Three Months Ended (In millions) July 3, 2020 July 5, 2019 Amortization and depreciation $ — $ 94 Stock-based compensation expense $ 1 $ 54 Purchases of property and equipment $ — $ 21 |
Revenues
Revenues | 3 Months Ended |
Jul. 03, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues Contract liabilities During the three months ended July 3, 2020, we recognized $442 million from the contract liabilities balance at April 3, 2020. During the three months ended July 5, 2019, we recognized $471 million from the contract liabilities balance at March 29, 2019. Remaining performance obligations Remaining performance obligations represent contracted revenue that has not been recognized, which include contract liabilities and amounts that will be billed and recognized as revenue in future periods. As of July 3, 2020, we had $758 million of remaining performance obligations, which does not include customer deposit liabilities of $299 million, of which we expect to recognize approximately 96% as revenue over the next twelve months. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Jul. 03, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill The changes in the carrying amount of goodwill were as follows: (In millions) Balance as of April 3, 2020 $ 2,585 Translation adjustments 3 Balance as of July 3, 2020 $ 2,588 Intangible assets, net July 3, 2020 April 3, 2020 (In millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 505 $ (248) $ 257 $ 505 $ (230) $ 275 Developed technology 133 (92) 41 133 (85) 48 Total finite-lived intangible assets 638 (340) 298 638 (315) 323 Indefinite-lived trade names 744 — 744 744 — 744 Total intangible assets $ 1,382 $ (340) $ 1,042 $ 1,382 $ (315) $ 1,067 Amortization expense for purchased intangible assets is summarized below: Three Months Ended Statements of Operations Classification (In millions) July 3, 2020 July 5, 2019 Customer relationships and other $ 18 $ 20 Operating expenses Developed technology 7 7 Cost of revenues Total $ 25 $ 27 As of July 3, 2020, future amortization expense related to intangible assets that have finite lives is as follows by fiscal year: (In millions) July 3, 2020 Remainder of 2021 $ 73 2022 92 2023 72 2024 60 2025 1 Total $ 298 |
Supplementary Information
Supplementary Information | 3 Months Ended |
Jul. 03, 2020 | |
Supplementary Information [Abstract] | |
Supplementary Information | Supplementary Information (in millions) Cash and cash equivalents: July 3, 2020 April 3, 2020 Cash $ 500 $ 483 Cash equivalents 573 1,694 Total cash and cash equivalents $ 1,073 $ 2,177 Other current assets: July 3, 2020 April 3, 2020 Prepaid expenses $ 81 $ 110 Income tax receivable and prepaid income taxes 148 150 Other tax receivable 63 88 Other 72 87 Total other current assets $ 364 $ 435 Property and equipment, net: July 3, 2020 April 3, 2020 Land $ 1 $ 7 Computer hardware and software 533 746 Office furniture and equipment 67 88 Buildings 15 108 Leasehold improvements 63 128 Construction in progress 1 1 Total property and equipment, gross 680 1,078 Accumulated depreciation and amortization (592) (840) Total property and equipment, net $ 88 $ 238 During the three months ended July 3, 2020, we reclassified $83 million of land, buildings, furniture and fixtures, and leasehold improvements, which were previously reported as property and equipment, net to assets held for sale in the Condensed Consolidated Balance Sheets. The fair value of the properties held for sale less costs to sell exceed their carrying value. On July 27, 2020, we completed the sale of these assets for cash consideration of $120 million. Other long-term assets: July 3, 2020 April 3, 2020 Non-marketable equity investments $ 188 $ 187 Long-term income tax receivable and prepaid income taxes 38 38 Deferred income tax assets 389 387 Other 60 66 Total other long-term assets $ 675 $ 678 Short-term contract liabilities: July 3, 2020 April 3, 2020 Deferred revenue $ 729 $ 709 Customer deposit liabilities 299 340 Total short-term contract liabilities $ 1,028 $ 1,049 Other current liabilities: July 3, 2020 April 3, 2020 Income taxes payable $ 232 $ 195 Other taxes payable 110 141 Other 258 251 Total other current liabilities $ 600 $ 587 Long-term income taxes payable: July 3, 2020 April 3, 2020 Deemed repatriation tax payable $ 615 $ 615 Uncertain tax positions (including interest and penalties) 576 695 Total long-term income taxes payable $ 1,191 $ 1,310 Other income, net: Three Months Ended July 3, 2020 July 5, 2019 Interest income $ 2 $ 10 Loss from equity interest — (11) Foreign exchange gain (loss) 1 (1) Gain on early extinguishment of debt 20 — Other (4) 3 Other income, net $ 19 $ 1 Supplemental cash flow information: Three Months Ended July 3, 2020 July 5, 2019 Income taxes paid, net of refunds $ 2 $ 36 Interest expense paid $ 45 $ 48 Cash paid for amounts included in the measurement of operating lease liabilities $ 9 $ 18 Non-cash operating activities: Operating lease assets obtained in exchange for operating lease liabilities $ 2 $ 13 Reduction of operating lease assets as a result of lease terminations and modifications $ 23 $ — Non-cash investing and financing activities: Purchases of property and equipment in current liabilities $ — $ 14 |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 3 Months Ended |
Jul. 03, 2020 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments and Fair Value Measurements | Financial Instruments and Fair Value Measurements For financial instruments measured at fair value, fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining fair value, we consider the principal or most advantageous market in which we would transact, and we consider assumptions that market participants would use when pricing the asset or liability. The three levels of inputs that may be used to measure fair value are: • Level 1: Quoted prices in active markets for identical assets or liabilities. • Level 2: Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in less active markets or model-derived valuations. All significant inputs used in our valuations, such as discounted cash flows, are observable or can be derived principally from or corroborated with observable market data for substantially the full term of the assets or liabilities. • Level 3: Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of assets or liabilities. We monitor and review the inputs and results of these valuation models to help ensure the fair value measurements are reasonable and consistent with market experience in similar asset classes. Assets measured and recorded at fair value on a recurring basis The following table summarizes our financial instruments measured at fair value on a recurring basis: July 3, 2020 April 3, 2020 (In millions) Fair Value Level 1 Level 2 Fair Value Level 1 Level 2 Assets: Money market funds $ 573 $ 573 $ — $ 1,346 $ 1,346 $ — Corporate bonds 58 — 58 86 — 86 Total $ 631 $ 573 $ 58 $ 1,432 $ 1,346 $ 86 The following table presents the contractual maturities of our investments in debt securities as of July 3, 2020: (In millions) Fair Value Due in one year or less $ 35 Due after one year through five years 23 Total $ 58 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 and long-term debt. Non-marketable equity investments As of July 3, 2020 and April 3, 2020, the carrying value of our non-marketable equity investments was $188 million and $187 million, respectively. Current and long-term debt As of July 3, 2020 and April 3, 2020, the total fair value of our current and long-term fixed rate debt was $3,149 million and $3,634 million, respectively. The fair value of our variable rate debt approximated its carrying value. The fair values of all our debt obligations were based on Level 2 inputs. |
Leases
Leases | 3 Months Ended |
Jul. 03, 2020 | |
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 2028. Our leases generally have terms that range from 1 year to 10 years for our facilities, 1 year to 5 years for equipment, and 1 year to 5 years for data center co-locations. Some of our leases contain renewal options, escalation clauses, rent concessions, and leasehold improvement incentives. The following summarizes our lease costs: Three Months Ended (In millions) July 3, 2020 July 5, 2019 Operating lease costs $ 4 $ 12 Short-term lease costs 1 2 Variable lease costs 3 6 Total lease costs $ 8 $ 20 Other information related to our operating leases as of July 3, 2020 was as follows: Weighted-average remaining lease term 4.1 years Weighted-average discount rate 4.14 % See Note 6 for additional cash flow information related to our operating leases. As of July 3, 2020, the maturities of our lease liabilities by fiscal year are as follows: (In millions) Remainder of 2021 $ 22 2022 25 2023 18 2024 15 2025 9 Thereafter 6 Total lease payments 95 Less: Imputed interest (8) Present value of lease liabilities $ 87 |
Debt
Debt | 3 Months Ended |
Jul. 03, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following table summarizes components of our debt: (In millions, except percentages) July 3, 2020 April 3, 2020 Effective Interest Rate 4.2% Senior Notes due September 15, 2020 $ 750 $ 750 4.25 % New 2.5% Convertible Senior Notes due April 1, 2022 250 250 2.63 % 3.95% Senior Notes due June 15, 2022 400 400 4.05 % 2.0% Convertible Senior Notes due August 15, 2022 — 625 2.66 % New 2.0% Convertible Senior Notes due August 15, 2022 625 625 2.62 % Term Loan due November 4, 2024 500 500 LIBOR plus (1) 5.0% Senior Notes due April 15, 2025 1,100 1,100 5.23 % Total principal amount 3,625 4,250 Less: unamortized discount and issuance costs (21) (29) Total debt 3,604 4,221 Less: current portion (763) (756) Total long-term debt $ 2,841 $ 3,465 (1) The term loan bears interest at a rate equal to the London Interbank Offered Rate (LIBOR) plus a margin based either on the current debt rating of our non-credit-enhanced, senior unsecured long-term debt or consolidated adjusted leverage as defined in the underlying loan agreement. The interest rate for the outstanding term loan is as follows: July 3, 2020 April 3, 2020 Term Loan due November 4, 2024 1.69 % 2.88 % As of July 3, 2020, the future contractual maturities of debt by fiscal year are as follows: (In millions) Remainder of 2021 $ 756 2022 275 2023 1,050 2024 25 2025 419 Thereafter 1,100 Total future maturities of debt $ 3,625 Repayments of Convertible Senior Notes In May 2020, we settled the $625 million principal and conversion rights of the 2.0% Convertible Senior Note in cash. The aggregate settlement amount of $1,179 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 repayments resulted in an adjustment to stockholders’ equity of $581 million and a gain on extinguishment of $20 million. As of July 3, 2020 and April 3, 2020, the Convertible Senior Notes consisted of the following: July 3, 2020 April 3, 2020 (In millions) New 2.5% Convertible Notes New 2.0% Convertible Notes New 2.5% Convertible Notes New 2.0% Convertible Notes 2.0% Convertible Notes Liability components: Principal $ 250 $ 625 $ 250 $ 625 $ 625 Unamortized discount and issuance costs (1) (8) (1) (9) (6) Net carrying amount $ 249 $ 617 $ 249 $ 616 $ 619 Equity component net of tax $ 43 $ 56 $ 43 $ 56 $ 12 Based on the closing price of our common stock of $20.01 on July 2, 2020, the if-converted value of the New 2.5% Convertible Notes exceeded the principal amount by approximately $48 million. Based on the closing price of our common stock of $20.01 on July 2, 2020, the if-converted value of the New 2.0% Convertible Notes is less than the principal amount. The following table sets forth total interest expense recognized related to our Convertible Senior Notes: Three Months Ended (In millions) July 3, 2020 July 5, 2019 Contractual interest expense $ 6 $ 10 Amortization of debt discount and issuance costs $ 1 $ 4 Payments in lieu of conversion price adjustments (1) $ 2 $ — (1) Payments in lieu of conversion price adjustments include $2 million paid to holders of the Convertible Senior Notes because our dividend of $0.125 per share to our common stockholders that was paid in June 2020 exceeded the amounts defined in the Convertible Senior Notes agreements. Revolving credit facility We have a revolving line of credit of $1,000 million through November 2024. Borrowings under the revolving line of credit bear interest at a floating rate based on our debt ratings and our consolidated leverage ratios. The unused revolving line of credit is subject to a commitment fee ranging from 0.125% to 0.30% per annum. As of July 3, 2020 and April 3, 2020, there were no borrowings outstanding under our revolving credit facilities. Debt covenant compliance Our term loan and revolving credit facility 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 July 3, 2020 , we were in compliance with all debt covenants. |
Derivatives
Derivatives | 3 Months Ended |
Jul. 03, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives We conduct business in numerous currencies throughout our worldwide operations, and our entities hold monetary assets or liabilities, earn revenues, or incur costs in currencies other than the entity’s functional currency. As a result, we are exposed to foreign exchange gains or losses which impacts our operating results. As part of our foreign currency risk mitigation strategy, we have entered into foreign exchange forward contracts with up to twelve months in duration. We do not use derivative financial instruments for speculative trading purposes, nor do we hedge our foreign currency exposure in a manner that entirely offsets the effects of the changes in foreign exchange rates. 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 July 3, 2020 and July 5, 2019, the fair value of these contracts was insignificant. The related gain recognized in Other income, net in our Condensed Consolidated Statements of Operations was as follows: Three Months Ended (In millions) July 3, 2020 July 5, 2019 Foreign exchange forward contracts gain $ 10 $ — The fair value of our foreign exchange forward contracts is presented on a gross basis in our Condensed Consolidated Balance Sheets. To mitigate losses in the event of nonperformance by counterparties, we have entered into master netting arrangements with our counterparties that allow us to settle payments on a net basis. The effect of netting on our derivative assets and liabilities was not material as of July 3, 2020 and July 5, 2019. The notional amount of our outstanding foreign exchange forward contracts in U.S. dollar equivalent was as follows: (In millions) July 3, 2020 April 3, 2020 Foreign exchange forward contracts purchased $ 317 $ 362 Foreign exchange forward contracts sold $ 100 $ 57 |
Restructuring and Other Costs
Restructuring and Other Costs | 3 Months Ended |
Jul. 03, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Costs | Restructuring and Other Costs Our 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. Included in other exit and disposal costs are advisory fees incurred in connection with restructuring events. Separation costs primarily consist of consulting costs incurred in connection with our divestitures. 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 include the reduction of our workforce by approximately 3,100 employees, as well as asset write-offs and impairments, contract terminations, facilities closures, and the sale of underutilized facilities. As of July 3, 2020, we estimate that we will incur total costs of $550 million, excluding stock-based compensation expense, in connection with the November 2019 Plan, of which up to $225 million is expected to consist of cash expenditures for severance and termination benefits and up to $110 million is expected to consist of cash expenditures for contract terminations. Non-cash costs are estimated to be up to $240 million related to asset write-offs and other restructuring costs. These actions are expected to be substantially completed by September 2020. As of July 3, 2020, we have incurred costs of $463 million under the November 2019 Plan. In connection with the Broadcom sale, our Board of Directors also approved an equity-based severance program under which certain equity awards held by certain terminated employees were accelerated. As of July 3, 2020, we have incurred $124 million of stock-based compensation related to our equity-based severance program. See Note 14 for more information on the impact of this program. Restructuring and other costs summary Our restructuring and other costs attributable to continuing operations are presented in the table below: Three Months Ended (In millions) July 3, 2020 July 5, 2019 Severance and termination benefit costs $ 14 $ 12 Contract cancellation charges 48 — Stock-based compensation charges 7 — Asset write-offs and impairment 55 — Other exit and disposal costs 3 1 Total restructuring and other costs $ 127 $ 13 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: Three Months Ended (In millions) July 3, 2020 July 5, 2019 Severance and termination benefit costs $ 37 $ 12 Separation costs 1 — Total restructuring and other costs $ 38 $ 12 Restructuring summary Our activities related to our November 2019 Plan are presented in the table below: (In millions) Liability Balance as of April 3, 2020 Net Charges Cash Payments Non-Cash Items Liability Balance as of July 3, 2020 Severance and termination benefit costs $ 35 $ 51 $ (32) $ — $ 54 Contract cancellation charges 7 48 (4) (35) 16 Stock-based compensation charges — 7 — (7) — Asset write-offs and impairments — 55 — (55) — Other exit and disposal costs — 3 (3) — — Total $ 42 $ 164 $ (39) $ (97) $ 70 |
Income Taxes
Income Taxes | 3 Months Ended |
Jul. 03, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The following table summarizes our effective tax rate for the periods presented: Three Months Ended (In millions, except percentages) July 3, 2020 July 5, 2019 Income from continuing operations before income taxes $ 99 $ 92 Income tax expense (benefit) $ (50) $ 54 Effective tax rate (51) % 59 % Our effective tax rate for income from continuing operations for the three months ended July 3, 2020 differs from the federal statutory income tax rate primarily due to a tax benefit related to a favorable tax ruling, the benefits of lower-taxed international earnings, and the research and development tax credit, partially offset by state taxes and various permanent differences. Our effective tax rate for the three months ended July 5, 2019 differs from the federal statutory income tax rate primarily due to tax expense related to the Ninth Circuit's holding in Altera Corp. v. Commissioner (which the Supreme Court declined to review in June 2020), various permanent differences, and state taxes, partially offset by the benefits of lower-taxed international earnings and the research and development tax credit. The aggregate changes in the balance of gross unrecognized tax benefits for the three months ended July 3, 2020 were as follows: (In millions) Balance as of April 3, 2020 $ 724 Lapse of statute of limitations (12) Increase related to prior period tax positions 5 Decrease related to prior period tax positions (49) Increase related to current year tax positions 4 Balance as of July 3, 2020 $ 672 We continue to monitor the progress of ongoing income tax controversies and the impact, if any, of the expected expiration of the statute of limitations in various taxing jurisdictions. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Jul. 03, 2020 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders' Equity Preferred stock On May 22, 2020, we filed a Certificate of Elimination of Series A Junior Preferred Stock (the “Junior Preferred Stock”) with the Secretary of State of the State of Delaware, to remove the Certificate of Designations of the Junior Preferred Stock from our Amended and Restated Certificate of Incorporation. The Certificate of Elimination became effective upon filing. No shares of the Junior Preferred Stock were issued or outstanding upon filing of the Certificate of Elimination. Dividends On August 6, 2020, we announced that our Board of Directors declared a cash dividend of $0.125 per share of common stock to be paid in September 2020. All shares of common stock issued and outstanding and all restricted stock units (RSUs) and performance-based restricted stock units (PRUs) as of the record date will be entitled to the dividend and dividend 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. As of July 3, 2020, we had $578 million remaining under the authorization to be completed in future periods with no expiration date. No shares were repurchased during three months ended July 3, 2020. The following table summarizes activity related to this program for the three months ended July 5, 2019 : Three Months Ended July 5, 2019 (In millions, except per share amounts) Number of shares repurchased 25 Average price per share $ 21.85 Aggregate purchase price $ 541 In addition, repurchases of 1 million shares executed during fiscal 2019 settled during the three months ended July 5, 2019. Accumulated other comprehensive loss Components of Accumulated other comprehensive loss, net of taxes, were as follows: (In millions) Foreign Currency Unrealized Gain on Total Balance as of April 3, 2020 $ (16) $ — $ (16) Other comprehensive income before reclassifications 11 1 12 Balance as of July 3, 2020 $ (5) $ 1 $ (4) |
Employee Equity Incentive Plans
Employee Equity Incentive Plans | 3 Months Ended |
Jul. 03, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Employee Equity Incentive Plans | Employee Equity Incentive Plans The following table sets forth the stock-based compensation expense recognized for our equity incentive plans: Three Months Ended (In millions) July 3, 2020 July 5, 2019 Sales and marketing $ 4 $ 7 Research and development 6 7 General and administrative 8 12 Restructuring and other costs 7 — Other income, net (1) — Total stock-based compensation from continuing operations 24 26 Discontinued operations 1 54 Total stock-based compensation expense $ 25 $ 80 Income tax benefit for stock-based compensation expense $ (6) $ (15) As of July 3, 2020, the total unrecognized stock-based compensation costs related to our unvested stock-based awards was $66 million, which will be recognized over an estimated weighted-average amortization period of 1.2 years. The following table summarizes additional information related to our stock-based awards, including awards associated with our discontinued operations: Three Months Ended (In millions, except per grant data) July 3, 2020 July 5, 2019 Restricted stock units (RSUs): Weighted-average fair value per award granted $ 20.86 $ 19.39 Awards granted — (1) 12 Total fair value of awards released $ 56 $ 174 Outstanding and unvested 4 22 Performance-based restricted stock units (PRUs): Weighted-average fair value per award granted $ — $ 19.21 Awards granted — 2 Total fair value of awards released $ 3 $ 26 Outstanding and unvested at target payout 1 3 Stock options: Weight-average fair value per award granted $ — $ 4.76 Awards granted — 2 Total intrinsic value of stock options exercised $ 3 $ 71 Outstanding 1 8 Exercisable — (1) 6 (1) The number of shares is less than 1 million. Dividend equivalent rights (DERs) Our RSUs and PRUs contain DERs that entitles the recipient of an award to receive cash dividend payments if and when the underlying shares are released. The amount of DERs equals the amount of cumulated dividends on the issued number of common stock that would have been payable since the date the associated award was granted. As of July 3, 2020 and April 3,2020, current dividends payable related to DER was $47 million and $62 million, respectively, recorded as part of Other current liabilities in the Condensed Consolidated Balance Sheets, and long-term dividends payable related to DER was $10 million and $31 million, respectively, recorded as part of Other long-term liabilities. Stock-based award modifications In connection with the Broadcom sale, during the three months ended July 3, 2020 and fiscal 2020, we entered into severance and retention arrangements with certain executives. Pursuant to these agreements, these executives are entitled to receive vesting of 50% of their unvested equity, subject to a service condition, and the remaining unvested equity may be earned at levels of 0% to 150%, subject to market and service conditio ns. In addition, during the three months ended July 3, 2020 and fiscal 2020, 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. |
Net Income Per Share
Net Income Per Share | 3 Months Ended |
Jul. 03, 2020 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Net Income Per Share Basic income per share is computed by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted net income per share also includes the incremental effect of dilutive potentially issuable common shares outstanding during the period using the treasury stock method. Dilutive potentially issuable common shares includes the dilutive effect of the shares underlying convertible debt and employee equity awards. The components of basic and diluted net income (loss) per share are as follows: Three Months Ended (In millions, except per share amounts) July 3, 2020 July 5, 2019 Income from continuing operations $ 149 $ 38 Loss from discontinued operations (31) (12) Net income $ 118 $ 26 Income (loss) per share - basic: Continuing operations $ 0.25 $ 0.06 Discontinued operations $ (0.05) $ (0.02) Net income per share - basic $ 0.20 $ 0.04 Income (loss) per share - diluted: Continuing operations $ 0.24 $ 0.06 Discontinued operations $ (0.05) $ (0.02) Net income per share - diluted $ 0.19 $ 0.04 Weighted-average shares outstanding - basic 590 619 Dilutive potentially issuable shares: Convertible debt 20 10 Employee equity awards 4 13 Weighted-average shares outstanding - diluted 614 642 Anti-dilutive shares excluded from diluted net income per share calculation: Employee equity awards 1 5 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. The conversion price of each convertible debt applicable in the periods presented is as follows: Three Months Ended July 3, 2020 July 5, 2019 2.5% Convertible Senior Notes due April 1, 2022 N/A $ 16.77 2.0% Convertible Senior Notes due August 15, 2022 $ 10.23 $ 20.41 New 2.5% Convertible Senior Notes due April 1, 2022 $ 16.77 N/A New 2.0% Convertible Senior Notes due August 15, 2022 $ 20.41 N/A |
Segment and Geographic Informat
Segment and Geographic Information | 3 Months Ended |
Jul. 03, 2020 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | Segment and Geographic InformationWe 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: Three Months Ended (In millions) July 3, 2020 July 5, 2019 Consumer security $ 363 $ 381 Identity and information protection 251 255 ID Analytics — 14 Total net revenues $ 614 $ 650 From time to time, changes in our product hierarchy cause changes to the product categories above. When changes occur, we recast historical amounts to match the current product hierarchy. Consumer security products include our Norton 360 Security offerings, Norton Security, Norton Secure VPN, 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: Three Months Ended (In millions) July 3, 2020 July 5, 2019 Americas $ 448 $ 479 EMEA 96 97 APJ 70 74 Total net revenues $ 614 $ 650 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 $427 million and $456 million during the three months ended July 3, 2020 and July 5, 2019, 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) July 3, 2020 April 3, 2020 U.S. $ 412 $ 1,345 International 719 918 Total cash, cash equivalents and short-term investments $ 1,131 $ 2,263 The table below represents our property and equipment, net of accumulated depreciation and amortization, by geographic area, based on the physical location of the asset, at the end of each period presented. (In millions) July 3, 2020 April 3, 2020 U.S. $ 49 $ 174 Ireland 34 34 Other countries (1) 5 30 Total property and equipment, net $ 88 $ 238 (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, at the end of each period presented, are as follows: (In millions) July 3, 2020 April 3, 2020 U.S. $ 36 $ 40 India 11 11 Japan 8 10 Other countries (1) 7 27 Total operating lease assets $ 62 $ 88 (1) No individual country represented more than 10% of the respective totals. Significant customers Customers that accounted for over 10% of our net accounts receivable were as follows: July 3, 2020 April 3, 2020 Customer A 45 % 39 % |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Jul. 03, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Purchase obligations As of July 3, 2020, we had purchase obligations of $466 million associated with agreements for purchases of goods or services, including purchase obligations associated with our discontinued operations. The amount of purchase obligations reflects estimated future payments as of July 3, 2020 according to the contract terms. Deemed repatriation taxes As of July 3, 2020, we are required to pay a one-time transition tax of $683 million on untaxed foreign earnings of our foreign subsidiaries due in installments through July 2025 as a result of the Tax Cuts and Jobs Act. Indemnifications In the ordinary course of business, we may provide indemnifications of varying scope and terms to customers, vendors, lessors, business partners, subsidiaries, and other parties with respect to certain matters, including, but not limited to, losses arising out of our breach of agreements or representations and warranties made by us. In addition, our bylaws contain indemnification obligations to our directors, officers, employees, and agents, and we have entered into indemnification agreements with our directors and certain of our officers to give such directors and officers additional contractual assurances regarding the scope of the indemnification set forth in our bylaws and to provide additional procedural protections. We maintain director and officer insurance, which may cover certain liabilities arising from our obligation to indemnify our directors and officers. It is not possible to determine the aggregate maximum potential loss under these indemnification agreements due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular agreement. Such indemnification agreements might not be subject to maximum loss clauses. Historically, we have not incurred material costs as a result of obligations under these agreements, and we have not accrued any material liabilities related to such indemnification obligations in our Condensed Consolidated Financial Statements. In connection with the sale of Veritas 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 Condensed Consolidated Financial Statements. We provide limited product warranties, and the majority of our software license agreements contain provisions that indemnify licensees of our software from damages and costs resulting from claims alleging that our software infringes on the intellectual property rights of a third party. Historically, payments made under these provisions have been immaterial. We monitor the conditions that are subject to indemnification to identify if a loss has occurred. Litigation contingencies SEC Investigation As previously disclosed in our public filings, the Audit Committee of our Board of Directors (the Audit Committee) completed its internal investigation (the Audit Committee Investigation) in September 2018. In connection with the Audit Committee Investigation, we voluntarily contacted the U.S. Securities and Exchange Commission (SEC) in April 2018. The SEC commenced a formal investigation, and we continue to cooperate with that investigation. The outcome of such an investigation is difficult to predict. We have incurred, and will continue to incur, significant expenses related to legal and other professional services in connection with the SEC investigation. At this stage, we are unable to assess whether any material loss or adverse effect is reasonably possible as a result of the SEC’s investigation or estimate the range of any potential loss. Securities Class Action and Derivative Litigation Securities class action lawsuits, which have since been consolidated, were filed in May 2018 against us and certain of our former officers, in the U.S. District Court for the Northern District of California. The lead plaintiff’s consolidated amended complaint alleged that, during a purported class period of May 11, 2017 to August 2, 2018, defendants made false and misleading statements in violation of Sections 10(b) and 20(a), and that certain individuals violated Section 20A, of the Securities Exchange Act. Defendants filed motions to dismiss, which the Court granted in an order dated June 14, 2019. Pursuant to that order, plaintiff filed a motion seeking leave to amend and a proposed first amended complaint on July 11, 2019. The Court granted the motion in part on October 2, 2019 and the first amended complaint was filed on October 11, 2019. The Court’s order dismissed certain claims against certain of our former officers. Defendants filed answers on November 7, 2019. A trial date has been set for June 14, 2021. Purported shareholder derivative lawsuits have been filed against us and certain of our former officers and current and former directors in the U.S. District Courts for the District of Delaware and the Northern District of California, Delaware Chancery Court, and Delaware Superior Court, arising generally out of the same facts and circumstances as alleged in the securities class action and alleging claims for breach of fiduciary duty and related claims; these lawsuits include an action brought derivatively on behalf of our 2008 Employee Stock Purchase Plan. The derivative actions are currently voluntarily stayed in light of the securities class action. No specific amount of damages has been alleged in these lawsuits. We have also received demands from purported stockholders to inspect corporate books and records under Delaware law. We will continue to incur legal fees in connection with these pending cases and demands, including expenses for the reimbursement of legal fees of present and former officers and directors under indemnification obligations. The expense of continuing to defend such litigation may be significant. We intend to defend these lawsuits vigorously, but there can be no assurance that we will be successful in any defense. If any of the lawsuits are decided adversely, we may be liable for significant damages directly or under our indemnification obligations, which could adversely affect our business, results of operations, and cash flows. At this stage, we are unable to assess whether any material loss or adverse effect is reasonably possible as a result of these lawsuits or estimate the range of any potential loss. GSA During the first quarter of fiscal 2013, we were advised by the Commercial Litigation Branch of the Department of Justice’s (DOJ) Civil Division and the Civil Division of the U.S. Attorney’s Office for the District of Columbia that the government is investigating our compliance with certain provisions of our U.S. General Services Administration (GSA) Multiple Award Schedule Contract No. GS-35F-0240T effective January 24, 2007, including provisions relating to pricing, country of origin, accessibility, and the disclosure of commercial sales practices. As reported on the GSA’s publicly-available database, our total sales under the GSA Schedule contract were approximately $222 million from the period beginning January 2007 and ending September 2012. We 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 governme nt 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 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 co ntracts, 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 May 5, 2020, the Court ordered the parties to mediation with the mediation period to conclude on July 31, 2020, at which time the parties were to provide a status update to the Court. No trial date has been set. 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. Avila v. LifeLock et al On August 29, 2019, the Ninth Circuit issued a mandate remanding a securities class action lawsuit, originally filed on July 22, 2015, against our subsidiary, LifeLock, as well as certain of LifeLock’s former officers (the “LifeLock Defendants”) for further proceedings in the U.S. District Court for the District of Arizona. The Ninth Circuit had affirmed in part and reversed in part the August 21, 2017 decision of the District Court, which had dismissed the case with prejudice. The complaint in the remanded action alleges that, during a purported class period of July 30, 2014 to July 21, 2015, a period that predates our acquisition of LifeLock, the LifeLock Defendants made false and misleading statements in violation of Sections 10(b) and 20(a) of the Securities Exchange Act. In fiscal 2020, we settled this lawsuit and recorded a charge of $20 million in General and administrative expenses. The United States District Court for the District of Arizona approved the settlement on July 21, 2020. Other We are involved in a number of other judicial and administrative proceedings that are incidental to our business. Although adverse decisions (or settlements) may occur in one or more of the cases, it is not possible to estimate the possible loss or losses from each of these cases. The final resolution of these lawsuits, individually or in the aggregate, is not expected to have a material adverse effect on our business, results of operations, financial condition or cash flows. |
Description of business and S_2
Description of business and Significant Accounting Policies (Policies) | 3 Months Ended |
Jul. 03, 2020 | |
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 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 included in our Annual Report on Form 10-K for the fiscal year ended April 3, 2020. The results of operations for the three months ended July 3, 2020 are not necessarily indicative of the results expected for the entire fiscal year. |
Fiscal accounting year | We have a 52/53-week fiscal year ending on the Friday closest to March 31. Unless otherwise stated, references to three-month periods in this report relate to fiscal periods ended July 3, 2020 and July 5, 2019. The three months ended July 3, 2020 consisted of 13 weeks, whereas the three months ended July 5, 2019 consisted of 14 weeks. Our 2021 fiscal year consists of 52 weeks and ends on April 2, 2021. |
Use of estimates | Use of estimates The preparation of Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported and disclosed in the financial statements and accompanying notes. Such estimates include, but are not limited to, 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. Management determines these estimates and assumptions based on historical experience and on various other assumptions that are believed to be reasonable. Actual results could differ 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 Condensed Consolidated Financial Statements. |
Recently accounting standards | Recently adopted authoritative guidance Credit Losses. In June 2016, the Financial Accounting Standards Board (FASB) issued new authoritative guidance on credit losses which changes the impairment model for most financial assets and certain other instruments. On April 4, 2020, the first day of our fiscal 2021, we adopted the new guidance using the modified retrospective transition method. Upon adoption, we utilized a new forward-looking “expected loss” model to replace the incurred loss impairment model for our accounts receivable and other financial assets. Additionally, for available-for-sale debt securities with unrealized losses, we discontinued using the concept of “other than temporary” impairment and recognized the estimated credit loss as allowances. The cumulative effect from the adoption of this guidance was immaterial to our Condensed Consolidated Financial Statements. Internal-Use Software. In August 2018, the FASB issued new guidance that clarifies the accounting for implementation costs in a cloud computing arrangement. The new guidance aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. On April 4, 2020, we adopted the new guidance prospectively. The adoption of this guidance did not have a material impact on our Condensed Consolidated Financial Statements. Recently issued authoritative guidance not yet adopted 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. The standard will be effective for us in our first quarter of fiscal 2022, with early adoption permitted. We are currently evaluating the adoption date and the impact of the adoption of this guidance on our Condensed Consolidated Financial Statements and disclosures. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
Jul. 03, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Discontinued Operations | The following table presents information regarding certain components of loss from discontinued operations, net of income taxes: Three Months Ended (In millions) July 3, 2020 July 5, 2019 Net revenues $ — $ 597 Gross profit $ — $ 421 Operating income (loss) $ (42) $ 17 Income (loss) before income taxes $ (41) $ 16 Income tax expense (benefit) $ (10) $ 28 Loss from discontinued operations $ (31) $ (12) The following table presents significant non-cash items and capital expenditures of discontinued operations: Three Months Ended (In millions) July 3, 2020 July 5, 2019 Amortization and depreciation $ — $ 94 Stock-based compensation expense $ 1 $ 54 Purchases of property and equipment $ — $ 21 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Jul. 03, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in the Carrying Amount of Goodwill | The changes in the carrying amount of goodwill were as follows: (In millions) Balance as of April 3, 2020 $ 2,585 Translation adjustments 3 Balance as of July 3, 2020 $ 2,588 |
Schedule of Intangible Assets, Net, Finite-Lived | July 3, 2020 April 3, 2020 (In millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 505 $ (248) $ 257 $ 505 $ (230) $ 275 Developed technology 133 (92) 41 133 (85) 48 Total finite-lived intangible assets 638 (340) 298 638 (315) 323 Indefinite-lived trade names 744 — 744 744 — 744 Total intangible assets $ 1,382 $ (340) $ 1,042 $ 1,382 $ (315) $ 1,067 |
Schedule of Intangible Assets, Net, Indefinite-Lived | July 3, 2020 April 3, 2020 (In millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 505 $ (248) $ 257 $ 505 $ (230) $ 275 Developed technology 133 (92) 41 133 (85) 48 Total finite-lived intangible assets 638 (340) 298 638 (315) 323 Indefinite-lived trade names 744 — 744 744 — 744 Total intangible assets $ 1,382 $ (340) $ 1,042 $ 1,382 $ (315) $ 1,067 |
Amortization Expense | Amortization expense for purchased intangible assets is summarized below: Three Months Ended Statements of Operations Classification (In millions) July 3, 2020 July 5, 2019 Customer relationships and other $ 18 $ 20 Operating expenses Developed technology 7 7 Cost of revenues Total $ 25 $ 27 |
Schedule of Future Intangible Asset Amortization Expense | As of July 3, 2020, future amortization expense related to intangible assets that have finite lives is as follows by fiscal year: (In millions) July 3, 2020 Remainder of 2021 $ 73 2022 92 2023 72 2024 60 2025 1 Total $ 298 |
Supplementary Information (Tabl
Supplementary Information (Tables) | 3 Months Ended |
Jul. 03, 2020 | |
Supplementary Information [Abstract] | |
Schedule of Cash and cash equivalents | Cash and cash equivalents: July 3, 2020 April 3, 2020 Cash $ 500 $ 483 Cash equivalents 573 1,694 Total cash and cash equivalents $ 1,073 $ 2,177 |
Schedule of Other current assets | Other current assets: July 3, 2020 April 3, 2020 Prepaid expenses $ 81 $ 110 Income tax receivable and prepaid income taxes 148 150 Other tax receivable 63 88 Other 72 87 Total other current assets $ 364 $ 435 |
Summary of Property and equipment, net | Property and equipment, net: July 3, 2020 April 3, 2020 Land $ 1 $ 7 Computer hardware and software 533 746 Office furniture and equipment 67 88 Buildings 15 108 Leasehold improvements 63 128 Construction in progress 1 1 Total property and equipment, gross 680 1,078 Accumulated depreciation and amortization (592) (840) Total property and equipment, net $ 88 $ 238 |
Schedule of Other long-term assets | Other long-term assets: July 3, 2020 April 3, 2020 Non-marketable equity investments $ 188 $ 187 Long-term income tax receivable and prepaid income taxes 38 38 Deferred income tax assets 389 387 Other 60 66 Total other long-term assets $ 675 $ 678 |
Schedule of Short-term contract liabilities | Short-term contract liabilities: July 3, 2020 April 3, 2020 Deferred revenue $ 729 $ 709 Customer deposit liabilities 299 340 Total short-term contract liabilities $ 1,028 $ 1,049 |
Schedule of Other current liabilities | Other current liabilities: July 3, 2020 April 3, 2020 Income taxes payable $ 232 $ 195 Other taxes payable 110 141 Other 258 251 Total other current liabilities $ 600 $ 587 |
Schedule of Long-term income taxes payable | Long-term income taxes payable: July 3, 2020 April 3, 2020 Deemed repatriation tax payable $ 615 $ 615 Uncertain tax positions (including interest and penalties) 576 695 Total long-term income taxes payable $ 1,191 $ 1,310 |
Schedule of Other income (expense), net | Other income, net: Three Months Ended July 3, 2020 July 5, 2019 Interest income $ 2 $ 10 Loss from equity interest — (11) Foreign exchange gain (loss) 1 (1) Gain on early extinguishment of debt 20 — Other (4) 3 Other income, net $ 19 $ 1 |
Supplemental Cash Flow Information | Supplemental cash flow information: Three Months Ended July 3, 2020 July 5, 2019 Income taxes paid, net of refunds $ 2 $ 36 Interest expense paid $ 45 $ 48 Cash paid for amounts included in the measurement of operating lease liabilities $ 9 $ 18 Non-cash operating activities: Operating lease assets obtained in exchange for operating lease liabilities $ 2 $ 13 Reduction of operating lease assets as a result of lease terminations and modifications $ 23 $ — Non-cash investing and financing activities: Purchases of property and equipment in current liabilities $ — $ 14 |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurements (Tables) | 3 Months Ended |
Jul. 03, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of the Carrying Value of Assets Measured at Fair Value on a Recurring Basis | The following table summarizes our financial instruments measured at fair value on a recurring basis: July 3, 2020 April 3, 2020 (In millions) Fair Value Level 1 Level 2 Fair Value Level 1 Level 2 Assets: Money market funds $ 573 $ 573 $ — $ 1,346 $ 1,346 $ — Corporate bonds 58 — 58 86 — 86 Total $ 631 $ 573 $ 58 $ 1,432 $ 1,346 $ 86 |
Contractual Maturity of Investments in Debt Securities | The following table presents the contractual maturities of our investments in debt securities as of July 3, 2020: (In millions) Fair Value Due in one year or less $ 35 Due after one year through five years 23 Total $ 58 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Jul. 03, 2020 | |
Leases [Abstract] | |
Schedule of Lease Cost and Sublease Income | The following summarizes our lease costs: Three Months Ended (In millions) July 3, 2020 July 5, 2019 Operating lease costs $ 4 $ 12 Short-term lease costs 1 2 Variable lease costs 3 6 Total lease costs $ 8 $ 20 Other information related to our operating leases as of July 3, 2020 was as follows: Weighted-average remaining lease term 4.1 years Weighted-average discount rate 4.14 % |
Lessee, Operating Lease, Liability, Maturity | As of July 3, 2020, the maturities of our lease liabilities by fiscal year are as follows: (In millions) Remainder of 2021 $ 22 2022 25 2023 18 2024 15 2025 9 Thereafter 6 Total lease payments 95 Less: Imputed interest (8) Present value of lease liabilities $ 87 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Jul. 03, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Components of Debt | The following table summarizes components of our debt: (In millions, except percentages) July 3, 2020 April 3, 2020 Effective Interest Rate 4.2% Senior Notes due September 15, 2020 $ 750 $ 750 4.25 % New 2.5% Convertible Senior Notes due April 1, 2022 250 250 2.63 % 3.95% Senior Notes due June 15, 2022 400 400 4.05 % 2.0% Convertible Senior Notes due August 15, 2022 — 625 2.66 % New 2.0% Convertible Senior Notes due August 15, 2022 625 625 2.62 % Term Loan due November 4, 2024 500 500 LIBOR plus (1) 5.0% Senior Notes due April 15, 2025 1,100 1,100 5.23 % Total principal amount 3,625 4,250 Less: unamortized discount and issuance costs (21) (29) Total debt 3,604 4,221 Less: current portion (763) (756) Total long-term debt $ 2,841 $ 3,465 (1) The term loan bears interest at a rate equal to the London Interbank Offered Rate (LIBOR) plus a margin based either on the current debt rating of our non-credit-enhanced, senior unsecured long-term debt or consolidated adjusted leverage as defined in the underlying loan agreement. The interest rate for the outstanding term loan is as follows: July 3, 2020 April 3, 2020 Term Loan due November 4, 2024 1.69 % 2.88 % |
Schedule of Maturities of Long-term Debt | As of July 3, 2020, the future contractual maturities of debt by fiscal year are as follows: (In millions) Remainder of 2021 $ 756 2022 275 2023 1,050 2024 25 2025 419 Thereafter 1,100 Total future maturities of debt $ 3,625 |
Schedule of Convertible Debt | As of July 3, 2020 and April 3, 2020, the Convertible Senior Notes consisted of the following: July 3, 2020 April 3, 2020 (In millions) New 2.5% Convertible Notes New 2.0% Convertible Notes New 2.5% Convertible Notes New 2.0% Convertible Notes 2.0% Convertible Notes Liability components: Principal $ 250 $ 625 $ 250 $ 625 $ 625 Unamortized discount and issuance costs (1) (8) (1) (9) (6) Net carrying amount $ 249 $ 617 $ 249 $ 616 $ 619 Equity component net of tax $ 43 $ 56 $ 43 $ 56 $ 12 |
Schedule of Interest Expense | The following table sets forth total interest expense recognized related to our Convertible Senior Notes: Three Months Ended (In millions) July 3, 2020 July 5, 2019 Contractual interest expense $ 6 $ 10 Amortization of debt discount and issuance costs $ 1 $ 4 Payments in lieu of conversion price adjustments (1) $ 2 $ — |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Jul. 03, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments, Loss | The related gain recognized in Other income, net in our Condensed Consolidated Statements of Operations was as follows: Three Months Ended (In millions) July 3, 2020 July 5, 2019 Foreign exchange forward contracts gain $ 10 $ — |
Schedule of Foreign Exchange Contracts | The notional amount of our outstanding foreign exchange forward contracts in U.S. dollar equivalent was as follows: (In millions) July 3, 2020 April 3, 2020 Foreign exchange forward contracts purchased $ 317 $ 362 Foreign exchange forward contracts sold $ 100 $ 57 |
Restructuring and Other Costs (
Restructuring and Other Costs (Tables) | 3 Months Ended |
Jul. 03, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | Our restructuring and other costs attributable to continuing operations are presented in the table below: Three Months Ended (In millions) July 3, 2020 July 5, 2019 Severance and termination benefit costs $ 14 $ 12 Contract cancellation charges 48 — Stock-based compensation charges 7 — Asset write-offs and impairment 55 — Other exit and disposal costs 3 1 Total restructuring and other costs $ 127 $ 13 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: Three Months Ended (In millions) July 3, 2020 July 5, 2019 Severance and termination benefit costs $ 37 $ 12 Separation costs 1 — Total restructuring and other costs $ 38 $ 12 |
Schedule of Restructuring Activities | Our activities related to our November 2019 Plan are presented in the table below: (In millions) Liability Balance as of April 3, 2020 Net Charges Cash Payments Non-Cash Items Liability Balance as of July 3, 2020 Severance and termination benefit costs $ 35 $ 51 $ (32) $ — $ 54 Contract cancellation charges 7 48 (4) (35) 16 Stock-based compensation charges — 7 — (7) — Asset write-offs and impairments — 55 — (55) — Other exit and disposal costs — 3 (3) — — Total $ 42 $ 164 $ (39) $ (97) $ 70 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Jul. 03, 2020 | |
Income Tax Disclosure [Abstract] | |
Summary of Effective Tax Rate | The following table summarizes our effective tax rate for the periods presented: Three Months Ended (In millions, except percentages) July 3, 2020 July 5, 2019 Income from continuing operations before income taxes $ 99 $ 92 Income tax expense (benefit) $ (50) $ 54 Effective tax rate (51) % 59 % |
Schedule of Unrecognized Tax Benefits Roll Forward | The aggregate changes in the balance of gross unrecognized tax benefits for the three months ended July 3, 2020 were as follows: (In millions) Balance as of April 3, 2020 $ 724 Lapse of statute of limitations (12) Increase related to prior period tax positions 5 Decrease related to prior period tax positions (49) Increase related to current year tax positions 4 Balance as of July 3, 2020 $ 672 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Jul. 03, 2020 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stock Repurchase Program | The following table summarizes activity related to this program for the three months ended July 5, 2019 : Three Months Ended July 5, 2019 (In millions, except per share amounts) Number of shares repurchased 25 Average price per share $ 21.85 Aggregate purchase price $ 541 |
Schedule of Accumulated Other Comprehensive Income | Components of Accumulated other comprehensive loss, net of taxes, were as follows: (In millions) Foreign Currency Unrealized Gain on Total Balance as of April 3, 2020 $ (16) $ — $ (16) Other comprehensive income before reclassifications 11 1 12 Balance as of July 3, 2020 $ (5) $ 1 $ (4) |
Employee Equity Incentive Pla_2
Employee Equity Incentive Plans (Tables) | 3 Months Ended |
Jul. 03, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock-Based Compensation Expense Recognized in our Condensed Consolidated Statements of Income | The following table sets forth the stock-based compensation expense recognized for our equity incentive plans: Three Months Ended (In millions) July 3, 2020 July 5, 2019 Sales and marketing $ 4 $ 7 Research and development 6 7 General and administrative 8 12 Restructuring and other costs 7 — Other income, net (1) — Total stock-based compensation from continuing operations 24 26 Discontinued operations 1 54 Total stock-based compensation expense $ 25 $ 80 Income tax benefit for stock-based compensation expense $ (6) $ (15) |
Schedule of Additional Information Related to Stock-Based awards | The following table summarizes additional information related to our stock-based awards, including awards associated with our discontinued operations: Three Months Ended (In millions, except per grant data) July 3, 2020 July 5, 2019 Restricted stock units (RSUs): Weighted-average fair value per award granted $ 20.86 $ 19.39 Awards granted — (1) 12 Total fair value of awards released $ 56 $ 174 Outstanding and unvested 4 22 Performance-based restricted stock units (PRUs): Weighted-average fair value per award granted $ — $ 19.21 Awards granted — 2 Total fair value of awards released $ 3 $ 26 Outstanding and unvested at target payout 1 3 Stock options: Weight-average fair value per award granted $ — $ 4.76 Awards granted — 2 Total intrinsic value of stock options exercised $ 3 $ 71 Outstanding 1 8 Exercisable — (1) 6 (1) The number of shares is less than 1 million. |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 3 Months Ended |
Jul. 03, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Components of Net Income Per Share | The components of basic and diluted net income (loss) per share are as follows: Three Months Ended (In millions, except per share amounts) July 3, 2020 July 5, 2019 Income from continuing operations $ 149 $ 38 Loss from discontinued operations (31) (12) Net income $ 118 $ 26 Income (loss) per share - basic: Continuing operations $ 0.25 $ 0.06 Discontinued operations $ (0.05) $ (0.02) Net income per share - basic $ 0.20 $ 0.04 Income (loss) per share - diluted: Continuing operations $ 0.24 $ 0.06 Discontinued operations $ (0.05) $ (0.02) Net income per share - diluted $ 0.19 $ 0.04 Weighted-average shares outstanding - basic 590 619 Dilutive potentially issuable shares: Convertible debt 20 10 Employee equity awards 4 13 Weighted-average shares outstanding - diluted 614 642 Anti-dilutive shares excluded from diluted net income per share calculation: Employee equity awards 1 5 |
Schedule of Debt Conversion Rate | The conversion price of each convertible debt applicable in the periods presented is as follows: Three Months Ended July 3, 2020 July 5, 2019 2.5% Convertible Senior Notes due April 1, 2022 N/A $ 16.77 2.0% Convertible Senior Notes due August 15, 2022 $ 10.23 $ 20.41 New 2.5% Convertible Senior Notes due April 1, 2022 $ 16.77 N/A New 2.0% Convertible Senior Notes due August 15, 2022 $ 20.41 N/A |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 3 Months Ended |
Jul. 03, 2020 | |
Segment Reporting [Abstract] | |
Revenue from External Customers by Products and Services | The following table summarizes net revenues for our major solutions: Three Months Ended (In millions) July 3, 2020 July 5, 2019 Consumer security $ 363 $ 381 Identity and information protection 251 255 ID Analytics — 14 Total net revenues $ 614 $ 650 |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area | Net revenues by geography are based on the billing addresses of our customers. The following table represents net revenues by geographic area for the periods presented: Three Months Ended (In millions) July 3, 2020 July 5, 2019 Americas $ 448 $ 479 EMEA 96 97 APJ 70 74 Total net revenues $ 614 $ 650 |
Cash, Cash Equivalents and Investments | The table below represents cash, cash equivalents and short-term investments held in the U.S. and internationally in various foreign subsidiaries. (In millions) July 3, 2020 April 3, 2020 U.S. $ 412 $ 1,345 International 719 918 Total cash, cash equivalents and short-term investments $ 1,131 $ 2,263 |
Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country | The table below represents our property and equipment, net of accumulated depreciation and amortization, by geographic area, based on the physical location of the asset, at the end of each period presented. (In millions) July 3, 2020 April 3, 2020 U.S. $ 49 $ 174 Ireland 34 34 Other countries (1) 5 30 Total property and equipment, net $ 88 $ 238 (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, at the end of each period presented, are as follows: (In millions) July 3, 2020 April 3, 2020 U.S. $ 36 $ 40 India 11 11 Japan 8 10 Other countries (1) 7 27 Total operating lease assets $ 62 $ 88 (1) No individual country represented more than 10% of the respective totals. |
Schedule of Accounts Receivable by Major Customers by Reporting Segments | Customers that accounted for over 10% of our net accounts receivable were as follows: July 3, 2020 April 3, 2020 Customer A 45 % 39 % |
Discontinued Operations (Narrat
Discontinued Operations (Narrative) (Details) $ in Millions | 3 Months Ended |
Jul. 03, 2020USD ($) | |
Enterprise Security | Discontinued Operations, Disposed of by Sale | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Dedicated direct costs, net of charges to Broadcom, from transition service agreement | $ 8 |
Discontinued Operations (Compon
Discontinued Operations (Components of Income from Discontinued Operations) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 03, 2020 | Jul. 05, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Loss from discontinued operations | $ (31) | $ (12) |
Discontinued Operations, Disposed of by Sale | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Net revenues | 0 | 597 |
Gross profit | 0 | 421 |
Operating income (loss) | (42) | 17 |
Income (loss) before income taxes | (41) | 16 |
Income tax expense (benefit) | (10) | 28 |
Loss from discontinued operations | $ (31) | $ (12) |
Discontinued Operations (Schedu
Discontinued Operations (Schedule of Non-cash Items and Capital Expenditures) (Details) - Discontinued Operations, Disposed of by Sale - USD ($) $ in Millions | 3 Months Ended | |
Jul. 03, 2020 | Jul. 05, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Amortization and depreciation | $ 0 | $ 94 |
Stock-based compensation expense | 1 | 54 |
Purchases of property and equipment | $ 0 | $ 21 |
Revenues (Timing of Revenue Rec
Revenues (Timing of Revenue Recognition, Contract Liabilities and Contract Acquisition Costs) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 03, 2020 | Jul. 05, 2019 | |
Revenue from Contract with Customer [Abstract] | ||
Revenue recognized from beginning contract liabilities | $ 442 | $ 471 |
Revenues (Remaining Performance
Revenues (Remaining Performance Obligations) (Details) - USD ($) $ in Millions | Jul. 03, 2020 | Apr. 03, 2020 |
Revenue from Contract with Customer [Abstract] | ||
Remaining performance obligations | $ 758 | |
Customer deposit liabilities | $ 299 | $ 340 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-04 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Percent expected to be recognized as revenue | 96.00% | |
Remaining performance obligation, expected timing of satisfaction, period | 12 months |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Schedule of Changes in the Carrying Amount of Goodwill) (Details) $ in Millions | 3 Months Ended |
Jul. 03, 2020USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 2,585 |
Translation adjustments | 3 |
Ending balance | $ 2,588 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Schedule of Intangible Assets, Net) (Details) - USD ($) $ in Millions | Jul. 03, 2020 | Apr. 03, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 638 | $ 638 |
Accumulated Amortization | (340) | (315) |
Net Carrying Amount | 298 | 323 |
Indefinite-lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,382 | 1,382 |
Net Carrying Amount | 1,042 | 1,067 |
Indefinite-lived trade names | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 744 | 744 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 505 | 505 |
Accumulated Amortization | (248) | (230) |
Net Carrying Amount | 257 | 275 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 133 | 133 |
Accumulated Amortization | (92) | (85) |
Net Carrying Amount | $ 41 | $ 48 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (Schedule of Amortization Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 03, 2020 | Jul. 05, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of intangible assets | $ 18 | $ 20 |
Customer relationships | Operating expenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of intangible assets | 18 | 20 |
Developed technology | Cost of revenues | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of intangible assets | 7 | 7 |
Segment Reconciling Items | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of intangible assets | $ 25 | $ 27 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets (Schedule of Future Intangible Asset Amortization Expense) (Details) - USD ($) $ in Millions | Jul. 03, 2020 | Apr. 03, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remainder of 2021 | $ 73 | |
2022 | 92 | |
2023 | 72 | |
2024 | 60 | |
2025 | 1 | |
Net Carrying Amount | $ 298 | $ 323 |
Supplementary Information (Cash
Supplementary Information (Cash and Cash Equivalents) (Details) - USD ($) $ in Millions | Jul. 03, 2020 | Apr. 03, 2020 |
Supplementary Information [Abstract] | ||
Cash | $ 500 | $ 483 |
Cash equivalents | 573 | 1,694 |
Total cash and cash equivalents | $ 1,073 | $ 2,177 |
Supplementary Information (Othe
Supplementary Information (Other Current Assets) (Details) - USD ($) $ in Millions | Jul. 03, 2020 | Apr. 03, 2020 |
Supplementary Information [Abstract] | ||
Prepaid expenses | $ 81 | $ 110 |
Income tax receivable and prepaid income taxes | 148 | 150 |
Other tax receivable | 63 | 88 |
Other | 72 | 87 |
Total other current assets | $ 364 | $ 435 |
Supplementary Information (Prop
Supplementary Information (Property and Equipment) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jul. 03, 2020 | Jul. 27, 2020 | Apr. 03, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Total property and equipment, gross | $ 680 | $ 1,078 | |
Accumulated depreciation and amortization | (592) | (840) | |
Total property and equipment, net | 88 | 238 | |
Increase of assets held-for-sale, reclassified during period | 83 | ||
Subsequent Event | |||
Property, Plant and Equipment [Line Items] | |||
Consideration from sale of assets | $ 120 | ||
Land | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment, gross | 1 | 7 | |
Computer hardware and software | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment, gross | 533 | 746 | |
Office furniture and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment, gross | 67 | 88 | |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment, gross | 15 | 108 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment, gross | 63 | 128 | |
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment, gross | $ 1 | $ 1 |
Supplementary Information (Ot_2
Supplementary Information (Other Long-term Assets) (Details) - USD ($) $ in Millions | Jul. 03, 2020 | Apr. 03, 2020 |
Supplementary Information [Abstract] | ||
Non-marketable equity investments | $ 188 | $ 187 |
Long-term income tax receivable and prepaid income taxes | 38 | 38 |
Deferred income tax assets | 389 | 387 |
Other | 60 | 66 |
Total other long-term assets | $ 675 | $ 678 |
Supplementary Information (Shor
Supplementary Information (Short-term Contract Liabilities) (Details) - USD ($) $ in Millions | Jul. 03, 2020 | Apr. 03, 2020 |
Supplementary Information [Abstract] | ||
Deferred revenue | $ 729 | $ 709 |
Customer deposit liabilities | 299 | 340 |
Total short-term contract liabilities | $ 1,028 | $ 1,049 |
Supplementary Information (Ot_3
Supplementary Information (Other Current Liabilities) (Details) - USD ($) $ in Millions | Jul. 03, 2020 | Apr. 03, 2020 |
Supplementary Information [Abstract] | ||
Income taxes payable | $ 232 | $ 195 |
Other taxes payable | 110 | 141 |
Other | 258 | 251 |
Total other current liabilities | $ 600 | $ 587 |
Supplementary Information (Long
Supplementary Information (Long-term Income Taxes Payable) (Details) - USD ($) $ in Millions | Jul. 03, 2020 | Apr. 03, 2020 |
Supplementary Information [Abstract] | ||
Deemed repatriation tax payable | $ 615 | $ 615 |
Uncertain tax positions (including interest and penalties) | 576 | 695 |
Total long-term income taxes payable | $ 1,191 | $ 1,310 |
Supplementary Information (Ot_4
Supplementary Information (Other Income, net) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 03, 2020 | Jul. 05, 2019 | |
Supplementary Information [Abstract] | ||
Interest income | $ 2 | $ 10 |
Loss from equity interest | 0 | (11) |
Foreign exchange gain (loss) | 1 | (1) |
Gain on extinguishment of debt | 20 | 0 |
Other | (4) | 3 |
Other income, net | $ 19 | $ 1 |
Supplementary Information (Supp
Supplementary Information (Supplemental Cash Flow Information) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 03, 2020 | Jul. 05, 2019 | |
Supplementary Information [Abstract] | ||
Income taxes paid, net of refunds | $ 2 | $ 36 |
Interest expense paid | 45 | 48 |
Cash paid for amounts included in the measurement of operating lease liabilities | 9 | 18 |
Non-cash operating activities: | ||
Operating lease assets obtained in exchange for operating lease liabilities | 2 | 13 |
Reduction of operating lease assets as a result of lease terminations and modifications | 23 | 0 |
Non-cash investing and financing activities: | ||
Purchases of property and equipment in current liabilities | $ 0 | $ 14 |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Measurements (Schedule of the Carrying Value of Assets Measured at Fair Value on a Recurring Basis) (Details) - Recurring - USD ($) $ in Millions | Jul. 03, 2020 | Apr. 03, 2020 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | $ 631 | $ 1,432 |
Fair Value | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Corporate bonds | 58 | 86 |
Fair Value | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 573 | 1,346 |
Reported Value Measurement | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 573 | 1,346 |
Reported Value Measurement | Level 1 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Corporate bonds | 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 | 573 | 1,346 |
Reported Value Measurement | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 58 | 86 |
Reported Value Measurement | Level 2 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Corporate bonds | 58 | 86 |
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 Maturities) (Details) $ in Millions | Jul. 03, 2020USD ($) |
Fair Value Disclosures [Abstract] | |
Due in one year or less | $ 35 |
Due after one year through five years | 23 |
Total | $ 58 |
Financial Instruments and Fai_5
Financial Instruments and Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions | Jul. 03, 2020 | Apr. 03, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value of non-marketable equity investments | $ 188 | $ 187 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of debt | $ 3,149 | $ 3,634 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) | Jul. 03, 2020 |
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 | 10 years |
Maximum | Equipment | |
Property, Plant and Equipment [Line Items] | |
Operating lease, term of contract | 5 years |
Maximum | Data Center Co-locations | |
Property, Plant and Equipment [Line Items] | |
Operating lease, term of contract | 5 years |
Leases (Lease Cost) (Details)
Leases (Lease Cost) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 03, 2020 | Jul. 05, 2019 | |
Leases [Abstract] | ||
Operating lease costs | $ 4 | $ 12 |
Short-term lease costs | 1 | 2 |
Variable lease costs | 3 | 6 |
Total lease costs | $ 8 | $ 20 |
Leases (Operating Lease Informa
Leases (Operating Lease Information) (Details) | Jul. 03, 2020 |
Leases [Abstract] | |
Weighted-average remaining lease term | 4 years 1 month 6 days |
Weighted-average discount rate | 4.14% |
Leases (Maturity of Lease Liabi
Leases (Maturity of Lease Liabilities) (Details) $ in Millions | Jul. 03, 2020USD ($) |
Leases [Abstract] | |
Remainder of 2021 | $ 22 |
2022 | 25 |
2023 | 18 |
2024 | 15 |
2025 | 9 |
Thereafter | 6 |
Total lease payments | 95 |
Less: Imputed interest | (8) |
Present value of lease liabilities | $ 87 |
Debt (Summary of Components of
Debt (Summary of Components of Debt) (Details) - USD ($) $ in Millions | Jul. 03, 2020 | Jul. 02, 2020 | May 31, 2020 | Apr. 03, 2020 |
Debt Instrument [Line Items] | ||||
Total principal amount | $ 3,625 | $ 4,250 | ||
Less: unamortized discount and issuance costs | (21) | (29) | ||
Total debt | 3,604 | 4,221 | ||
Less: current portion | (763) | (756) | ||
Total long-term debt | 2,841 | 3,465 | ||
Senior Notes | 4.2% Senior Notes due September 15, 2020 | ||||
Debt Instrument [Line Items] | ||||
Total principal amount | $ 750 | 750 | ||
Effective Interest Rate | 4.25% | |||
Stated interest rate | 4.20% | |||
Senior Notes | 3.95% Senior Notes due June 15, 2022 | ||||
Debt Instrument [Line Items] | ||||
Total principal amount | $ 400 | 400 | ||
Effective Interest Rate | 4.05% | |||
Stated interest rate | 3.95% | |||
Senior Notes | 5.0% Senior Notes due April 15, 2025 | ||||
Debt Instrument [Line Items] | ||||
Total principal amount | $ 1,100 | 1,100 | ||
Effective Interest Rate | 5.23% | |||
Stated interest rate | 5.00% | |||
Term loan | Term Loan due November 4, 2024 | ||||
Debt Instrument [Line Items] | ||||
Total principal amount | $ 500 | $ 500 | ||
Interest rate | 1.69% | 2.88% | ||
Convertible Debt | New 2.5% Convertible Senior Notes due April 1, 2022 | ||||
Debt Instrument [Line Items] | ||||
Total principal amount | $ 250 | $ 250 | ||
Less: unamortized discount and issuance costs | (1) | (1) | ||
Total debt | $ 249 | 249 | ||
Effective Interest Rate | 2.63% | |||
Stated interest rate | 2.50% | 2.50% | ||
Convertible Debt | 2.0% Convertible Senior Notes due August 15, 2022 | ||||
Debt Instrument [Line Items] | ||||
Total principal amount | $ 0 | 625 | ||
Less: unamortized discount and issuance costs | (6) | |||
Total debt | 619 | |||
Effective Interest Rate | 2.66% | |||
Stated interest rate | 2.00% | 2.00% | ||
Convertible Debt | New 2.0% Convertible Senior Notes due August 15, 2022 | ||||
Debt Instrument [Line Items] | ||||
Total principal amount | $ 625 | 625 | ||
Less: unamortized discount and issuance costs | (8) | (9) | ||
Total debt | $ 617 | $ 616 | ||
Effective Interest Rate | 2.62% | |||
Stated interest rate | 2.00% | 2.00% |
Debt (Maturities of Long-term D
Debt (Maturities of Long-term Debt) (Details) - USD ($) $ in Millions | Jul. 03, 2020 | Apr. 03, 2020 |
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
Remainder of 2021 | $ 756 | |
2022 | 275 | |
2023 | 1,050 | |
2024 | 25 | |
2025 | 419 | |
Thereafter | 1,100 | |
Total future maturities of debt | $ 3,625 | $ 4,250 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |||
May 31, 2020 | Jul. 03, 2020 | Jul. 05, 2019 | Jul. 02, 2020 | Apr. 03, 2020 | |
Debt Instrument [Line Items] | |||||
Interest expense paid | $ 45,000,000 | $ 48,000,000 | |||
Adjustment to stockholders' equity | (581,000,000) | ||||
Gain on extinguishment of debt | $ 20,000,000 | $ 0 | |||
Stock closing price (in dollars per share) | $ 20.01 | ||||
Convertible Debt | 2.0% Convertible Senior Notes due August 15, 2022 | |||||
Debt Instrument [Line Items] | |||||
Principal amount | $ 625,000,000 | ||||
Stated interest rate | 2.00% | 2.00% | |||
Payment for debt extinguishment | $ 1,179,000,000 | ||||
Conversion price (in dollars per share) | $ 19.25 | $ 10.23 | $ 20.41 | ||
Interest expense paid | $ 3,000,000 | ||||
Adjustment to stockholders' equity | 581,000,000 | ||||
Gain on extinguishment of debt | $ 20,000,000 | ||||
Convertible Debt | New 2.5% Convertible Senior Notes due April 1, 2022 | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 2.50% | 2.50% | |||
Conversion price (in dollars per share) | $ 16.77 | ||||
If-converted value in excess of principal | $ 48,000,000 | ||||
Convertible Debt | New 2.0% Convertible Senior Notes due August 15, 2022 | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 2.00% | 2.00% | |||
Conversion price (in dollars per share) | $ 20.41 | ||||
Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Revolving line of credit | $ 1,000,000,000 | ||||
Line of credit, amount outstanding | $ 0 | $ 0 | |||
Revolving Credit Facility | Minimum | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, commitment fee percentage | 0.125% | ||||
Revolving Credit Facility | Maximum | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, commitment fee percentage | 0.30% | ||||
Term Loan and Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Debt covenant, consolidated leverage ratio | 5.25 | ||||
Debt covenant, consolidated leverage ratio if acquisition incurred | 5.75 | ||||
Debt covenant, aggregate acquisition amount benchmark | $ 250,000,000 |
Debt (Schedule of Convertible S
Debt (Schedule of Convertible Senior Notes) (Details) - USD ($) $ in Millions | Jul. 03, 2020 | Apr. 03, 2020 |
Debt Instrument [Line Items] | ||
Principal | $ 3,625 | $ 4,250 |
Less: unamortized discount and issuance costs | (21) | (29) |
Total debt | 3,604 | 4,221 |
Convertible Debt | New 2.5% Convertible Senior Notes due April 1, 2022 | ||
Debt Instrument [Line Items] | ||
Principal | 250 | 250 |
Less: unamortized discount and issuance costs | (1) | (1) |
Total debt | 249 | 249 |
Equity component net of tax | 43 | 43 |
Convertible Debt | New 2.0% Convertible Senior Notes due August 15, 2022 | ||
Debt Instrument [Line Items] | ||
Principal | 625 | 625 |
Less: unamortized discount and issuance costs | (8) | (9) |
Total debt | 617 | 616 |
Equity component net of tax | 56 | 56 |
Convertible Debt | 2.0% Convertible Senior Notes due August 15, 2022 | ||
Debt Instrument [Line Items] | ||
Principal | $ 0 | 625 |
Less: unamortized discount and issuance costs | (6) | |
Total debt | 619 | |
Equity component net of tax | $ 12 |
Debt (Summary of Interest Expen
Debt (Summary of Interest Expense) (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | |
Jun. 30, 2020 | Jul. 03, 2020 | Jul. 05, 2019 | |
Convertible Debt | |||
Debt Instrument [Line Items] | |||
Contractual interest expense | $ 6 | $ 10 | |
Amortization of debt discount and issuance costs | 1 | 4 | |
Payments in lieu of conversion price adjustments | $ 2 | $ 0 | |
Convertible Senior Notes | |||
Debt Instrument [Line Items] | |||
Dividends paid | $ 0.125 |
Derivatives (Details)
Derivatives (Details) - Foreign Exchange Forward - USD ($) $ in Millions | 3 Months Ended | ||
Jul. 03, 2020 | Jul. 05, 2019 | Apr. 03, 2020 | |
Derivatives, Fair Value [Line Items] | |||
Derivative contract term | 12 months | ||
Not Designated as Hedging Instrument | Other expense, net | |||
Derivatives, Fair Value [Line Items] | |||
Foreign exchange forward contracts gain | $ 10 | $ 0 | |
Purchased | Not Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount | 317 | $ 362 | |
Sold | Not Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount | $ 100 | $ 57 |
Restructuring and Other Costs_2
Restructuring and Other Costs (Narrative) (Details) $ in Millions | Nov. 30, 2019USD ($)employees | Jul. 03, 2020USD ($) | Jul. 05, 2019USD ($) |
Restructuring Cost and Reserve [Line Items] | |||
Stock-based compensation expense | $ 25 | $ 80 | |
November 2019 Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected number of positions to be eliminated | employees | 3,100 | ||
Expected cost of restructuring | $ 550 | ||
Cumulative restructuring cost incurred to date | 463 | ||
Stock-based compensation expense | $ 124 | ||
November 2019 Plan | Employee Severance | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected cost of restructuring | 225 | ||
November 2019 Plan | Contract termination | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected cost of restructuring | 110 | ||
November 2019 Plan | Asset Write-offs | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected cost of restructuring | $ 240 |
Restructuring and Other Costs_3
Restructuring and Other Costs (Schedule of Restructuring and other costs) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 03, 2020 | Jul. 05, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other costs | $ 127 | $ 13 |
Continuing Operations | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other costs | 127 | 13 |
Discontinued Operations | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other costs | 38 | 12 |
Employee Severance | Continuing Operations | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other costs | 14 | 12 |
Employee Severance | Discontinued Operations | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other costs | 37 | 12 |
Contract cancellation charges | Continuing Operations | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other costs | 48 | 0 |
Stock-based compensation charges | Continuing Operations | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other costs | 7 | 0 |
Asset write-offs and impairments | Continuing Operations | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other costs | 55 | 0 |
Other exit and disposal costs | Continuing Operations | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other costs | 3 | 1 |
Separation costs | Discontinued Operations | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other costs | $ 1 | $ 0 |
Restructuring and Other Costs_4
Restructuring and Other Costs (Restructuring Summary) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 03, 2020 | Jul. 05, 2019 | |
Restructuring Reserve [Roll Forward] | ||
Net Charges | $ 127 | $ 13 |
November 2019 Plan | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 42 | |
Net Charges | 164 | |
Cash Payments | (39) | |
Non-Cash Items | (97) | |
Ending balance | 70 | |
November 2019 Plan | Severance and termination benefit costs | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 35 | |
Net Charges | 51 | |
Cash Payments | (32) | |
Non-Cash Items | 0 | |
Ending balance | 54 | |
November 2019 Plan | Contract cancellation charges | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 7 | |
Net Charges | 48 | |
Cash Payments | (4) | |
Non-Cash Items | (35) | |
Ending balance | 16 | |
November 2019 Plan | Stock-based compensation charges | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 0 | |
Net Charges | 7 | |
Cash Payments | 0 | |
Non-Cash Items | (7) | |
Ending balance | 0 | |
November 2019 Plan | Asset write-offs and impairments | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 0 | |
Net Charges | 55 | |
Cash Payments | 0 | |
Non-Cash Items | (55) | |
Ending balance | 0 | |
November 2019 Plan | Other exit and disposal costs | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 0 | |
Net Charges | 3 | |
Cash Payments | (3) | |
Non-Cash Items | 0 | |
Ending balance | 0 | |
Continuing Operations | ||
Restructuring Reserve [Roll Forward] | ||
Net Charges | 127 | 13 |
Continuing Operations | Severance and termination benefit costs | ||
Restructuring Reserve [Roll Forward] | ||
Net Charges | 14 | 12 |
Continuing Operations | Contract cancellation charges | ||
Restructuring Reserve [Roll Forward] | ||
Net Charges | 48 | 0 |
Continuing Operations | Stock-based compensation charges | ||
Restructuring Reserve [Roll Forward] | ||
Net Charges | 7 | 0 |
Continuing Operations | Asset write-offs and impairments | ||
Restructuring Reserve [Roll Forward] | ||
Net Charges | 55 | 0 |
Continuing Operations | Other exit and disposal costs | ||
Restructuring Reserve [Roll Forward] | ||
Net Charges | 3 | 1 |
Discontinued Operations | ||
Restructuring Reserve [Roll Forward] | ||
Net Charges | 38 | 12 |
Discontinued Operations | Severance and termination benefit costs | ||
Restructuring Reserve [Roll Forward] | ||
Net Charges | 37 | 12 |
Discontinued Operations | Separation costs | ||
Restructuring Reserve [Roll Forward] | ||
Net Charges | $ 1 | $ 0 |
Income Taxes (Schedule of Effec
Income Taxes (Schedule of Effective Tax Rate) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 03, 2020 | Jul. 05, 2019 | |
Income Tax Disclosure [Abstract] | ||
Income from continuing operations before income taxes | $ 99 | $ 92 |
Income tax expense (benefit) | $ (50) | $ 54 |
Effective tax rate | (51.00%) | 59.00% |
Income Taxes (Schedule of Unrec
Income Taxes (Schedule of Unrecognized Tax Benefits) (Details) $ in Millions | 3 Months Ended |
Jul. 03, 2020USD ($) | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |
Beginning balance | $ 724 |
Lapse of statute of limitations | (12) |
Increase related to prior period tax positions | 5 |
Decrease related to prior period tax positions | (49) |
Increase related to current year tax positions | 4 |
Ending balance | $ 672 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, shares in Millions | Aug. 06, 2020 | Jul. 03, 2020 | Jul. 05, 2019 |
Class of Stock [Line Items] | |||
Cash dividends declared per common share (in dollars per share) | $ 0.125 | $ 0.075 | |
Remaining authorized repurchase amount | $ 578,000,000 | ||
Repurchases of common stock (in shares) | 25 | ||
Subsequent Event | |||
Class of Stock [Line Items] | |||
Cash dividends declared per common share (in dollars per share) | $ 0.125 | ||
Settled during three months ended July 5, 2019 | |||
Class of Stock [Line Items] | |||
Repurchases of common stock (in shares) | 1 |
Stockholders' Equity (Schedule
Stockholders' Equity (Schedule of Stock Repurchase Program) (Details) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended |
Jul. 05, 2019USD ($)$ / sharesshares | |
Stockholders' Equity Note [Abstract] | |
Number of shares repurchased | shares | 25 |
Average price per share (In dollars per share) | $ / shares | $ 21.85 |
Aggregate purchase price | $ | $ 541 |
Stockholders' Equity (Schedul_2
Stockholders' Equity (Schedule of Accumulated Other Comprehensive Income (Loss)) (Details) $ in Millions | 3 Months Ended |
Jul. 03, 2020USD ($) | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning balance | $ 10 |
Other comprehensive income before reclassifications | 12 |
Ending balance | (503) |
Total | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning balance | (16) |
Ending balance | (4) |
Foreign Currency Translation Adjustments | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning balance | (16) |
Other comprehensive income before reclassifications | 11 |
Ending balance | (5) |
Unrealized Gain on Available-For-Sale Securities | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning balance | 0 |
Other comprehensive income before reclassifications | 1 |
Ending balance | $ 1 |
Employee Equity Incentive Pla_3
Employee Equity Incentive Plans (Schedule of Stock-Based Compensation Expense Recognized in our Condensed Consolidated Statements of Income) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 03, 2020 | Jul. 05, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | $ 25 | $ 80 |
Income tax benefit for stock-based compensation expense | (6) | (15) |
Continuing operations | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 24 | 26 |
Discontinued operations | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 1 | 54 |
Sales and marketing | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 4 | 7 |
Research and development | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 6 | 7 |
General and administrative | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 8 | 12 |
Restructuring and other costs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 7 | 0 |
Other income, net | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | $ (1) | $ 0 |
Employee Equity Incentive Pla_4
Employee Equity Incentive Plans (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 03, 2020 | Apr. 03, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Current dividends payable | $ 47 | $ 62 |
Long-term dividend payable | $ 10 | $ 31 |
Award modification term, vesting percentage | 50.00% | |
Expense associated with stock-based award modifications | $ 13 | |
General and Administrative Expense | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expense associated with stock-based award modifications | 3 | |
Selling and Marketing Expense | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expense associated with stock-based award modifications | 1 | |
Research and development expense | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expense associated with stock-based award modifications | 2 | |
Continuing operations restructuring costs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expense associated with stock-based award modifications | $ 7 | |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award modification term, percentage of unvested equity | 0.00% | |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award modification term, percentage of unvested equity | 150.00% | |
Liability-Classified Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized stock-based compensation costs related to our unvested stock-based awards | $ 66 | |
Unrecognized stock-based compensation costs, estimated weighted-average amortization period | 1 year 2 months 12 days |
Employee Equity Incentive Pla_5
Employee Equity Incentive Plans (Information Related to Stock-based Compensation) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Jul. 03, 2020 | Jul. 05, 2019 | |
Restricted stock units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted-average fair value per award granted (in dollars per share) | $ 20.86 | $ 19.39 |
Awards granted (in shares) | 0 | 12 |
Total fair value of awards released | $ 56 | $ 174 |
Outstanding and unvested (in shares) | 4 | 22 |
Restricted stock units (RSUs) | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Awards granted (in shares) | 1 | |
Performance-based restricted stock units (PRUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted-average fair value per award granted (in dollars per share) | $ 0 | $ 19.21 |
Awards granted (in shares) | 0 | 2 |
Total fair value of awards released | $ 3 | $ 26 |
Outstanding and unvested (in shares) | 1 | 3 |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted-average fair value per award granted (in dollars per share) | $ 0 | $ 4.76 |
Awards granted (in shares) | 0 | 2 |
Total intrinsic value of stock options exercised | $ 3 | $ 71 |
Outstanding (in shares) | 1 | 8 |
Exercisable (in shares) | 0 | 6 |
Stock options | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercisable (in shares) | 1 |
Net Income Per Share (Schedule
Net Income Per Share (Schedule of Components of Net Income Per Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Jul. 03, 2020 | Jul. 05, 2019 | |
Earnings Per Share [Abstract] | ||
Income from continuing operations | $ 149 | $ 38 |
Loss from discontinued operations | (31) | (12) |
Net income | $ 118 | $ 26 |
Income (loss) per share - basic: | ||
Continuing operations (in dollars per share) | $ 0.25 | $ 0.06 |
Discontinued operations (in dollars per share) | (0.05) | (0.02) |
Net income (loss) per share - basic (in dollars per share) | 0.20 | 0.04 |
Income (loss) per share - diluted: | ||
Continuing operations (in dollars per share) | 0.24 | 0.06 |
Discontinued operations (in dollars per share) | (0.05) | (0.02) |
Net income (loss) per share - diluted (in dollars per share) | $ 0.19 | $ 0.04 |
Weighted-average shares outstanding - basic | 590 | 619 |
Dilutive potentially issuable shares - convertible debt | 20 | 10 |
Dilutive potentially issuable shares - employee equity awards | 4 | 13 |
Weighted-average shares outstanding - diluted | 614 | 642 |
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 | 5 |
Net Income Per Share (Schedul_2
Net Income Per Share (Schedule of Debt Conversions) (Details) - Convertible Debt - $ / shares | Jul. 03, 2020 | Jul. 02, 2020 | May 31, 2020 | Jul. 05, 2019 |
2.5% Convertible Senior Notes Due April 1, 2022 | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Conversion price (in dollars per share) | $ 16.77 | |||
Stated interest rate | 2.50% | |||
2.0% Convertible Senior Notes due August 15, 2022 | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Conversion price (in dollars per share) | $ 10.23 | $ 19.25 | $ 20.41 | |
Stated interest rate | 2.00% | 2.00% | ||
New 2.5% Convertible Senior Notes due April 1, 2022 | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Conversion price (in dollars per share) | $ 16.77 | |||
Stated interest rate | 2.50% | 2.50% | ||
New 2.0% Convertible Senior Notes due August 15, 2022 | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Conversion price (in dollars per share) | $ 20.41 | |||
Stated interest rate | 2.00% | 2.00% |
Segment and Geographic Inform_3
Segment and Geographic Information (Narrative) (Details) $ in Millions | 3 Months Ended | |
Jul. 03, 2020USD ($)segment | Jul. 05, 2019USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of reportable segment | segment | 1 | |
Revenues | $ 614 | $ 650 |
U.S. | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ 427 | $ 456 |
Segment and Geographic Inform_4
Segment and Geographic Information (Schedule of Product Revenue Information) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 03, 2020 | Jul. 05, 2019 | |
Segment Reporting Information [Line Items] | ||
Net revenues | $ 614 | $ 650 |
Consumer security | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 363 | 381 |
Identity and information protection | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 251 | 255 |
ID Analytics | ||
Segment Reporting Information [Line Items] | ||
Net revenues | $ 0 | $ 14 |
Segment and Geographic Inform_5
Segment and Geographic Information (Schedule of Revenue by Geographical Location) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 03, 2020 | Jul. 05, 2019 | |
Revenue from External Customer [Line Items] | ||
Net revenues | $ 614 | $ 650 |
Americas | ||
Revenue from External Customer [Line Items] | ||
Net revenues | 448 | 479 |
EMEA | ||
Revenue from External Customer [Line Items] | ||
Net revenues | 96 | 97 |
APJ | ||
Revenue from External Customer [Line Items] | ||
Net revenues | $ 70 | $ 74 |
Segment and Geographic Inform_6
Segment and Geographic Information (Schedule of Assets by Geographic Location) (Details) - USD ($) $ in Millions | Jul. 03, 2020 | Apr. 03, 2020 |
Revenue from External Customer [Line Items] | ||
Total cash, cash equivalents and short-term investments | $ 1,131 | $ 2,263 |
Total property and equipment, net | 88 | 238 |
Total operating lease assets | 62 | 88 |
U.S. | ||
Revenue from External Customer [Line Items] | ||
Total cash, cash equivalents and short-term investments | 412 | 1,345 |
Total property and equipment, net | 49 | 174 |
Total operating lease assets | 36 | 40 |
International | ||
Revenue from External Customer [Line Items] | ||
Total cash, cash equivalents and short-term investments | 719 | 918 |
Ireland | ||
Revenue from External Customer [Line Items] | ||
Total property and equipment, net | 34 | 34 |
India | ||
Revenue from External Customer [Line Items] | ||
Total operating lease assets | 11 | 11 |
Japan | ||
Revenue from External Customer [Line Items] | ||
Total operating lease assets | 8 | 10 |
Other Countries | ||
Revenue from External Customer [Line Items] | ||
Total property and equipment, net | 5 | 30 |
Total operating lease assets | $ 7 | $ 27 |
Segment and Geographic Inform_7
Segment and Geographic Information (Schedule of Revenue by Major Customers) (Details) | 3 Months Ended | 12 Months Ended |
Jul. 03, 2020 | Apr. 03, 2020 | |
Accounts Receivable | Customer Concentration Risk | Customer A | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk, percentage | 45.00% | 39.00% |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Oct. 21, 2019 | Jan. 31, 2014 | Jul. 03, 2020 | Jul. 05, 2019 | Apr. 03, 2020 | Sep. 30, 2012 |
Loss Contingencies [Line Items] | ||||||
Purchase Obligation | $ 466 | |||||
Transition tax on untaxed foreign earnings | 683 | |||||
Net revenues | 614 | $ 650 | ||||
GSA Schedule Contract | ||||||
Loss Contingencies [Line Items] | ||||||
Net revenues | $ 222 | |||||
Estimated damage | $ 1,090 | $ 145 | ||||
GSA Schedule Contract | Minimum | ||||||
Loss Contingencies [Line Items] | ||||||
Estimated loss | $ 25 | |||||
Avila v.LifeLock et al | ||||||
Loss Contingencies [Line Items] | ||||||
Charges related to litigation settlement | $ 20 |