Discontinued Operations

12 Months Ended

Mar. 31, 2017

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

On January 29, 2016, we completed the sale of Veritas. The results of Veritas are presented as discontinued operations in our Consolidated Statements of Operations and thus have been excluded from continuing operations and segment results for all reported periods.

In connection with the divestiture of Veritas, the Company and Veritas entered into Transition Service Agreements (“TSA”) pursuant to which the Company provides Veritas certain limited services including financial support services, information technology services, and access to facilities, and Veritas provides the Company certain limited financial support services. The TSAs commenced with the close of the transaction and expire at various dates through fiscal 2019. During fiscal 2017 and fiscal 2016, we recorded income of approximately $22 million and $8 million, respectively, for all services provided to Veritas, which is presented as part of other income, net in the Consolidated Statements of Operations.

We also have retained various customer relationships and contracts that were reported historically as a part of the Veritas business. Approximately $71 million and $330 million related to these relationships and contracts have been reported as part of our deferred revenue in the Consolidated Balance Sheet as of March 31, 2017 and April 1, 2016, respectively, along with an asset representing the service and maintenance rights we have under an agreement with Veritas of $41 million and $131 million, respectively. These balances will be amortized to discontinued operations through the remaining term of the underlying contracts.

The following table presents information regarding certain components of income from discontinued operations, net of income taxes:

	Year Ended
(In millions)	March 31, 2017			April 1, 2016			April 3, 2015
Net revenues	$	172		$	1,968		$	2,552
Cost of revenues	(15		)	(334		)	(426		)
Operating expenses	(26		)	(1,270		)	(1,131		)
Gain on sale of Veritas	31			4,060			—
Other income (expense), net	1			3			(3		)
Income from discontinued operations before income taxes	163			4,427			992
Provision for income taxes	33			1,118			223
Income from discontinued operations, net of income taxes	$	130		$	3,309		$	769

During fiscal 2017 we received additional payments which represented purchase price adjustments for the sale of Veritas.