Segment and Geographical Information

6 Months Ended

Oct. 04, 2019

Segment and Geographic Information

Historically, we operated in two reportable segments: Enterprise Security and Consumer Cyber Safety. The Enterprise Security segment focused on providing our Integrated Cyber Defense solutions to help business and government customers unify cloud and on-premises security to deliver a more effective cyber defense solution, while driving down cost and complexity. The Consumer Cyber Safety segment focused on providing cyber safety solutions under our Norton LifeLock brand to help consumers protect their devices, online privacy, identities, and home networks. On August 8, 2019, we entered into a definitive agreement to sell certain assets of our Enterprise Security business to Broadcom, representing substantially all of our Enterprise Security segment. This transaction closed on November 4, 2019. The divestiture of these Enterprise Security assets allows us to shift our operational focus to our consumer business and represents a strategic shift in our operations. As a result, the results of our divested Enterprise Security assets were classified as discontinued operations in our Condensed Consolidated Statements of Operations and thus excluded from both continuing operations and segment results for all periods presented. Accordingly, we now have one reportable segment. Our Chief Operating Decision Maker reviews financial information presented on a

consolidated basis to evaluate company performance and to allocate resources. The change has been reflected in our segment reporting for all periods presented.

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



	Three Months Ended				Six Months Ended
(In millions)	October 4, 2019		September 28, 2018		October 4, 2019		September 28, 2018
Consumer security	$	358	$	368	$	739	$	737
Identity and information protection	237		233		492		464
Other	13		11		27		23
Total net revenues	$	608	$	612	$	1,258	$	1,224

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				Six Months Ended
(In millions)	October 4, 2019		September 28, 2018		October 4, 2019		September 28, 2018
Americas	$	447	$	447	$	926	$	884
EMEA	92		96		189		200
APJ	69		69		143		140
Total net revenues	$	608	$	612	$	1,258	$	1,224

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 $427 million and $883 million during the three and six months ended October 4, 2019, respectively, and $425 million and $842 million during the three and six months ended September 28, 2018, respectively. No other individual country accounted for more than 10% of revenues.

Most of our assets as of October 4, 2019 and March 29, 2019 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)	October 4, 2019		March 29, 2019
U.S.	$	1,429	$	1,544
International	402		499
Total cash, cash equivalent and short-term investments	$	1,831	$	2,043

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)	October 4, 2019		March 29, 2019
U.S.	$	565	$	606
International ⁽¹⁾	111		112
Total property and equipment, net	$	676	$	718


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

Our operating lease assets by geographic area, based on the physical location of the asset, were as follows:



(In millions)	October 4, 2019
U.S.	$	77
International ⁽¹⁾	77
Total operating lease assets	$	154


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

Significant customers

Customers, which are distributors, that accounted for over 10% of our net accounts receivable were as follows:



	October 4, 2019		March 29, 2019
Customer A	13	%	16	%
Customer B	13	%	15	%