Segment Information

9 Months Ended

Jan. 02, 2015

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 nine months ended January 2, 2015 or December 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 January 2, 2015
Net revenue	$	461	$	509	$	668	$	1,638
Operating income	245		85		168		498
Three Months Ended December 27, 2013
Net revenue	517		528		660		1,705
Operating income	224		107		178		509
Nine Months Ended January 2, 2015
Net revenue	1,479		1,572		1,939		4,990
Operating income	770		240		379		1,389
Nine Months Ended December 27, 2013
Net revenue	1,559		1,589		1,903		5,051
Operating income	673		245		471		1,389

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 stock-based compensation expense, amortization of intangible assets, restructuring, separation, and transition charges, and acquisition-related charges.

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

	Three Months Ended				Nine Months Ended
	January 2, 2015		December 27, 2013		January 2, 2015		December 27, 2013
	(Dollars in millions)
Total segment operating income	$	498	$	509	$	1,389	$	1,389
Reconciling items:
Stock-based compensation	51		34		140		111
Amortization of intangibles	39		41		121		169
Restructuring, separation, and transition	81		29		131		232
Total consolidated operating income	$	327	$	405	$	997	$	877