Segment Information

6 Months Ended

Oct. 03, 2014

Segment Reporting [Abstract]

Segment Information

Segment Information

In fiscal 2015, we are focused on managing our businesses as a portfolio and optimizing certain businesses for margin or growth. As a result, in the second quarter of fiscal 2015 we formed a new consumer group and modified our segment reporting structure to match our operating structure based on financial information reviewed by our CODM. Consumer Security consists of our consumer businesses that were previously reported in User Productivity & Protection. Enterprise Security consists of our enterprise security businesses that were previously reported in User Productivity & Protection and Information Security. Our Information Management segment was not impacted by the change in our operating structure. The three reporting segments, which are the same as our operating segments, are as follows:

• Consumer Security: Our Consumer Security segment focuses on making it simple for customers to be productive and protected at home and at work. Our Norton-branded services provide multi-layer security and identity protection on major desktop and mobile operating systems, to defend against increasingly complex online threats to individuals, families, and small businesses.

• Enterprise Security: Our Enterprise Security segment protects organizations so they can securely conduct business while leveraging new platforms and data. These products include our Secure Socket Layer ("SSL") Certificates, authentication, mail and web security, data center security, data loss prevention, information security services, endpoint security and management, encryption, and mobile offerings.

• Information Management: Our Information Management segment focuses on backup and recovery, archiving and eDiscovery, storage and high availability solutions, ensuring that our customers’ IT infrastructure and mission-critical applications are protected, managed and available.

There were no intersegment sales during the three and six months ended October 3, 2014 or September 27, 2013. Reclassifications of prior period information have been made to conform to the current period presentation. The following table summarizes the operating results of our reporting segments:

	Consumer Security			Enterprise   Security			Information     Management			Total Segments
	(Dollars in millions)
Three Months Ended October 3, 2014
Net revenue	$	485		$	511		$	621		$	1,617
Percentage of total net revenue	30		%	32		%	38		%	100		%
Operating income	257			85			122			464
Operating margin	53		%	17		%	20		%
Three Months Ended September 27, 2013
Net revenue	$	518		$	517		$	602		$	1,637
Percentage of total net revenue	32		%	31		%	37		%	100		%
Operating income	225			80			145			450
Operating margin	43		%	15		%	24		%
Six Months Ended October 3, 2014
Net revenue	$	1,018		$	1,063		$	1,271		$	3,352
Percentage of total net revenue	30		%	32		%	38		%	100		%
Operating income	525			155			211			891
Operating margin	52		%	15		%	17		%
Six Months Ended September 27, 2013
Net revenue	$	1,042		$	1,061		$	1,243		$	3,346
Percentage of total net revenue	31		%	32		%	37		%	100		%
Operating income	449			138			293			880
Operating margin	43		%	13		%	24		%

Operating segments are based upon the nature of the business and how the business is managed. Our CODM uses financial information to evaluate the performance of, and to assign resources to, each of the operating segments. We do not allocate to the operating segments certain operating expenses, which we manage separately at the corporate level. These unallocated costs can include amortization of intangible assets, restructuring, separation, and transition charges, stock-based compensation expense, and acquisition-related charges.

The reconciliation of total segment operating income to total consolidated operating income is as follows:

	Three Months Ended				Six Months Ended
	October 3, 2014		September 27, 2013		October 3, 2014		September 27, 2013
	(Dollars in millions)
Total segment operating income	$	464	$	450	$	891	$	880
Reconciling items:
Stock-based compensation	46		38		89		77
Amortization of intangibles	40		42		82		128
Restructuring, separation, and transition	30		122		50		203
Total consolidated operating income	$	348	$	248	$	670	$	472