Segment and Geographic Information

12 Months Ended

Mar. 31, 2017

Segment Reporting [Abstract]

Segment and Geographic Information

Segment and Geographic Information

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

• Consumer Digital Safety. Our Consumer Digital Safety segment focuses on providing a Digital Safety solution 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 acquisition of LifeLock, a leader in identity protection services, we are accelerating our leadership in Consumer Digital Safety 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.

Our operating segments are based upon the nature of our business and how our business is managed. Our Chief Operating Decision Makers (“CODMs”), comprised of our Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), use operating segment financial information to evaluate segment performance and to allocate resources. Our CODMs do not evaluate operating segments using discrete asset information, and our assets are not discretely identified by segment except for goodwill, as disclosed in Note 7. During the year, our Board appointed Gregory S. Clark, former Blue Coat CEO as our new CEO and Nicholas R. Noviello, former Blue Coat CFO as our new CFO. 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 reportable segments:

	Year Ended
(In millions)	March 31, 2017		April 1, 2016		April 3, 2015
Total Segments:
Net revenues	$	4,019	$	3,600	$	3,956
Operating income	$	1,026	$	1,026	$	1,275
Consumer Digital Safety:
Net revenues	$	1,664	$	1,670	$	1,887
Operating income	$	839	$	924	$	982
Enterprise Security:
Net revenues	$	2,355	$	1,930	$	2,069
Operating income	$	187	$	102	$	293

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 13 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):

	Year Ended
(In millions)	March 31, 2017			April 1, 2016		April 3, 2015
Total segment operating income	$	1,026		$	1,026	$	1,275
Less reconciling items:
Unallocated corporate charges related to Veritas	—			186		704
Stock-based compensation	440			161		131
Amortization of intangibles	293			86		122
Restructuring, separation, transition, and other	273			136		164
Acquisition and integration costs	120			—		—
Total consolidated operating income (loss) from continuing operations	$	(100	)	$	457	$	154

Product revenue information

The following table summarizes net revenues by significant product categories:

	Year Ended
(In millions)	March 31, 2017		April 1, 2016		April 3, 2015
Norton	$	1,597	$	1,670	$	1,887
Threat protection	804		807		882
Blue Coat security	427		—		—
Others (1)	1,191		1,123		1,187
Total net revenues	$	4,019	$	3,600	$	3,956

(1) No other product category represented more than 10% of the respective totals.

Geographical 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:

	Year Ended
(In millions)	March 31, 2017		April 1, 2016		April 3, 2015
U.S.	$	2,105	$	1,897	$	1,960
International (1)	1,914		1,703		1,996
Total net revenues	$	4,019	$	3,600	$	3,956

(1) No individual country represented more than 10% of the respective totals.

The table below represents our property and equipment, net of accumulated depreciation, by geographic area at the end of each period presented. We do not identify or allocate our other assets by geographic area.

(In millions)	March 31, 2017		April 1, 2016
U.S.	$	822	$	809
International (1)	115		148
Total property and equipment, net	$	937	$	957

(1) No individual country represented more than 10% of the respective totals.

Significant customers

In fiscal 2017, 2016 and 2015, no customer accounted for more than 10% of our total net revenues.