Discontinued Operations

6 Months Ended

Oct. 04, 2019

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

On August 8, 2019, we entered into a definitive agreement with Broadcom under which Broadcom agreed to purchase certain of our Enterprise Security assets and assume certain liabilities for a purchase price of $10.7 billion.

The following table presents the aggregate carrying amounts of the classes of assets and liabilities sold under the definitive agreement with Broadcom:

(In millions)	October 4, 2019		March 29, 2019
Assets:
Current assets	$	147	$	149
Intangible assets, net	934		1,048
Goodwill	5,772		5,773
Other long-term assets	194		171
Total assets of discontinued operations	$	7,047	$	7,141
Liabilities:
Current contract liabilities	$	1,224	$	1,288
Other current liabilities	22		9
Long-term contract liabilities	671		709
Other long-term liabilities	15		4
Total liabilities of discontinued operations	$	1,932	$	2,010

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

	Three Months Ended					Six Months Ended
(In millions)	October 4, 2019			September 28, 2018		October 4, 2019			September 28, 2018
Net revenues	$	576		$	567	$	1,173		$	1,116
Operating income	$	113		$	63	$	136		$	99
Income before income taxes	$	113		$	63	$	137		$	95
Income tax expense (benefit)	$	(637	)	$	9	$	(604	)	$	29
Income from discontinued operations, net of taxes	$	750		$	54	$	741		$	66

Our discontinued operations consist of our divested Enterprise Security assets and also includes results of our previously divested Veritas information management business (Veritas). There was no income from Veritas during the three and six months ended October 4, 2019. Revenue from Veritas was $4 million and $9 million during the three and six months ended September 28, 2018. Income from Veritas, net of taxes was $0 million and $5 million during the three and six months ended September 28, 2018.

We recorded a $665 million tax benefit in discontinued operations during the three and six months ended October 4, 2019 to remeasure the deferred tax assets associated with the tax basis of intellectual property held by our subsidiaries organized in Ireland. We previously expected to recover the tax basis through normal operation of our Enterprise business, which is taxed at the Irish trading rate of 12.5%. We now expect to recover the tax basis through the sale of certain assets of the Enterprise business, which will be taxed at the Irish capital gains tax rate of 33%.

The following table presents significant non-cash items and capital expenditures of discontinued operations:

	Six Months Ended
(In millions)	October 4, 2019		September 28, 2018
Amortization and depreciation	$	123	$	182
Stock-based compensation expense	$	95	$	122
Purchases of property and equipment	$	29	$	16

See Note 18 for more information regarding the completion of the sale that occurred on November 4, 2019.