Segment Information

9 Months Ended

Dec. 30, 2016

Segment Reporting [Abstract]

Segment Information

Segment Information

We operate in the following two reporting segments, which are the same as our operating segments:

• Consumer Security.Our Consumer Security segment focuses on providing a Digital Safety platform to protect information, devices, networks, and the identity of consumers. This platform includes our Norton-branded services, which provide multi-layer security and identity protection on major desktop and mobile operating systems, to defend against increasingly complex online threats to individuals, families and small businesses. With the proposed acquisition of LifeLock, a leader in identity protection services, we are accelerating our leadership in Consumer Security to protect all aspects of the consumer’s digital life.

• Enterprise Security.Our Enterprise Security segment protects organizations so they can securely conduct business while leveraging new platforms and data. Our Enterprise Security segment includes our threat protection products, information protection products, cyber security services, website security, and advanced web and cloud security offerings. Our enterprise endpoint and network security and management offerings support evolving endpoints and networks, providing advanced threat protection while helping reduce cost and complexity. These solutions are delivered through various methods, such as software, appliance, SaaS and managed services.

Operating segments are based upon the nature of our business and how our business is managed. Our Chief Operating Decision Makers (“CODM”), comprised of our Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), use operating segment financial information to evaluate our performance and to assign resources. Despite the CODM changes during fiscal 2017, we did not change the way we report and evaluate segments.

There were no inter-segment sales for the periods presented. The following table summarizes the operating results of our reporting segments:

	Three Months Ended				Nine Months Ended
	December 30, 2016		January 1, 2016		December 30, 2016		January 1, 2016
	(In millions)
Total Segments:
Net revenues	$	1,041	$	909	$	2,904	$	2,727
Operating income	$	271	$	254	$	773	$	812
Consumer Security:
Net revenues	$	397	$	414	$	1,205	$	1,264
Operating income	$	213	$	230	$	662	$	707
Enterprise Security:
Net revenues	$	644	$	495	$	1,699	$	1,463
Operating income	$	58	$	24	$	111	$	105

We do not allocate to our operating segments certain operating expenses that we manage separately at the corporate level and are not used in evaluating the results of, or in allocating resources to, our segments. These unallocated expenses consist of stock-based compensation expense, amortization of intangible assets, restructuring, separation, transition and other charges, and acquisition and integration costs. In addition, corporate charges previously allocated to Veritas prior to its operational separation in the third quarter of fiscal 2016, but not reclassified within discontinued operations, were not reallocated to our segments. See Note 6 for more information on our discontinued operations.

The following table provides a reconciliation of our total reportable segments’ operating income to our total operating income (loss):

	Three Months Ended					Nine Months Ended
	December 30, 2016			January 1, 2016		December 30, 2016		January 1, 2016
	(In millions)
Total segment operating income	$	271		$	254	$	773	$	812
Reconciling items:
Unallocated corporate charges related to Veritas	—			—		—		186
Stock-based compensation	97			38		231		118
Amortization of intangible assets	94			20		183		63
Restructuring, separation, transition, and other	67			50		201		116
Acquisition and integration costs	29			—		80		—
Total operating income (loss)	$	(16	)	$	146	$	78	$	329