Segment Information

9 Months Ended

Dec. 29, 2017

Segment Reporting [Abstract]

Segment Information

Segment Information

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

• Enterprise Security. Our Enterprise Security segment solutions protect organizations so they can securely conduct business while leveraging new platforms and data. Our Enterprise Security segment includes our endpoint protection products, endpoint management products, messaging protection products, information protection products, cyber security services, website security (through October 31, 2017) and advanced web and cloud security offerings. See Note 6 for more information on our divestiture of our WSS and PKI solutions on October 31, 2017. Our enterprise endpoint, network security and management offerings support evolving endpoints and networks, providing advanced threat protection while helping reduce cost and complexity. These products and solutions are delivered through various methods, such as software, appliance, virtual appliance, Software-as-a-Service (“SaaS”) and managed services.

• Consumer Digital Safety.Our Consumer Digital Safety segment focuses on providing a comprehensive Digital Safety solution to protect information, devices, networks and the identities of consumers. This solution includes our Norton-branded services, which provide multi-layer security across major desktop and mobile operating systems, public Wi-Fi connections, and home networks, to defend against increasingly complex online threats to individuals, families and small businesses, and our LifeLock-branded identity protection services. Our LifeLock-branded identity protection services primarily consist of identifying and notifying users of identity-related and other events and assisting users in remediating their impact. With the addition of LifeLock-branded identity protection services, we are providing a comprehensive digital safety solution designed to protect information across devices, customer identities and the connected home and family and accelerating our leadership in Consumer Digital Safety to protect all aspects of consumers’ digital lives.

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 our operating segment financial information to evaluate segment performance and to allocate resources.

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
(In millions)	December 29, 2017		December 30, 2016		December 29, 2017		December 30, 2016
Total Segments:
Net revenues	$	1,209	$	1,041	$	3,624	$	2,904
Operating income	$	438	$	271	$	1,161	$	773
Enterprise Security:
Net revenues	$	625	$	644	$	1,957	$	1,699
Operating income	$	136	$	58	$	377	$	111
Consumer Digital Safety:
Net revenues	$	584	$	397	$	1,667	$	1,205
Operating income	$	302	$	213	$	784	$	662

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, transition and other costs; and acquisition-related costs.

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
(In millions)	December 29, 2017		December 30, 2016			December 29, 2017		December 30, 2016
Total segment operating income	$	438	$	271		$	1,161	$	773
Reconciling items:
Stock-based compensation expense	125		97			448		231
Amortization of intangible assets	111		94			341		183
Restructuring, transition and other costs	93		67			278		201
Acquisition-related costs	13		29			51		80
Total consolidated operating income (loss) from continuing operations	$	96	$	(16	)	$	43	$	78