Segment and Geographic Information

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


•	Enterprise Security. Our Enterprise Security segment focuses on providing solutions to protect organizations so they can securely conduct business while leveraging new platforms and data. Our Enterprise Security portfolio includes products, services and solutions that are delivered as part of an Integrated Cyber Defense Platform.


•	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 security solutions and LifeLock identity theft protection solutions.

Operating segments are based upon the nature of our business and how our business is managed. Our Chief Operating Decision Makers (“CODM”), consisting 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 reportable segments:



	Three Months Ended				Nine Months Ended
(In millions)	December 28, 2018		December 29, 2017		December 28, 2018		December 29, 2017
Total Segments:
Net revenues	$	1,211	$	1,209	$	3,542	$	3,624
Operating income	$	388	$	438	$	1,073	$	1,161
Enterprise Security:
Net revenues	$	609	$	625	$	1,739	$	1,957
Operating income	$	91	$	136	$	227	$	377
Consumer Digital Safety:
Net revenues	$	602	$	584	$	1,803	$	1,667
Operating income	$	297	$	302	$	846	$	784

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 primarily 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:



	Three Months Ended				Nine Months Ended
(In millions)	December 28, 2018		December 29, 2017		December 28, 2018			December 29, 2017
Total segment operating income	$	388	$	438	$	1,073		$	1,161
Reconciling items:
Stock-based compensation expense	55		125		265			448
Amortization of intangible assets	111		111		332			341
Restructuring, transition and other costs	53		93		205			278
Acquisition-related costs	—		13		3			51
Other	—		—		(5		)	—
Total consolidated operating income from continuing operations	$	169	$	96	$	273		$	43

The following table summarizes net revenues by significant products and services categories:



	Three Months Ended				Nine Months Ended
(In millions)	December 28, 2018		December 29, 2017		December 28, 2018		December 29, 2017
Enterprise Security:
Endpoint and information protection	$	260	$	240	$	769	$	722
Network and web security	207		215		567		592
Website security and public key infrastructure	—		35		—		238
Other products and services	142		135		403		405
Total Enterprise Security	$	609	$	625	$	1,739	$	1,957
Consumer Digital Safety:
Consumer security	$	367	$	370	$	1,104	$	1,120
Identity and information protection	235		214		699		547
Total Consumer Digital Safety	602		584		1,803		1,667
Total net revenues	$	1,211	$	1,209	$	3,542	$	3,624

Endpoint and information protection products include endpoint security, advanced threat protection, and information protection solutions and their related support services. Network and web security products include network security, web security, and cloud security solutions and their related support services. Website security and public key infrastructure products consist of the solutions we divested on October 31, 2017. Other products and services primarily consist of email security products, managed security services, consulting and other professional services.

Consumer security products include Norton security, Norton Secure VPN, and other consumer security solutions. Identity and information protection products include LifeLock identity theft protection and other information protection solutions.

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:



	Three Months Ended				Nine Months Ended
(In millions)	December 28, 2018		December 29, 2017		December 28, 2018		December 29, 2017
Americas	$	815	$	762	$	2,315	$	2,264
EMEA	241		270		718		791
APJ	155		177		509		569
Total net revenues	$	1,211	$	1,209	$	3,542	$	3,624

The Americas include U.S., Canada and Latin America; EMEA includes Europe, Middle East and Africa; APJ includes Asia Pacific and Japan.

Revenues from customers inside the U.S. were $763 million and $2,165 million during the three and nine months ended December 28, 2018, respectively, and $711 million and $2,103 million during the three and nine months ended December 29, 2017, respectively. No other individual country accounted for more than 10% of revenues.

Most of our assets, excluding cash and cash equivalents and short-term investments, as of December 28, 2018 and December 29, 2017, were attributable to our U.S. operations. The table below represents cash, cash equivalents and short-term investments held in the U.S. and internationally in various foreign subsidiaries.



(In millions)	December 28, 2018		March 30, 2018
U.S.	$	2,215	$	858
International	364		1,304
Total cash, cash equivalent and short-term investments	$	2,579	$	2,162

The table below represents our property and equipment, net of accumulated depreciation and amortization, by geographic area, based on the physical location of the asset, at the end of each period presented.



(In millions)	December 28, 2018		March 30, 2018
U.S.	$	681	$	677
International ⁽¹⁾	110		101
Total property and equipment, net	$	791	$	778


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

Significant customers

In the three and nine months ended December 28, 2018 and December 29, 2017, the following customer, which is a distributor, accounted for 10% or more of our net revenues:



	Three Months Ended				Nine Months Ended
	December 28, 2018		December 29, 2017		December 28, 2018	December 29, 2017
Customer A	10	%	14	%	N/A	N/A

As of December 28, 2018 and March 30, 2018, customers, which are distributors, that accounted for over 10% of our net accounts receivable, are as follows:



	December 28, 2018		March 30, 2018
Customer A	16	%	22	%
Customer B	15	%	15	%
Customer C	14	%	N/A