Divestiture and Discontinued Operations (Tables)

12 Months Ended

Apr. 03, 2020

Discontinued Operations and Disposal Groups [Abstract]

Schedule of Divestiture and Discontinued Operations

The following table presents the gain before income taxes associated with the sale, presented in the results of our discontinued operations below.

(In millions)
Cash proceeds	$	10,582
Income taxes withheld by Broadcom	109
Net assets sold	(5,211		)
Transaction costs	(39		)
Foreign exchange impact	(7		)
Total gain on sale	$	5,434

The carrying value of the net assets sold was as follows:

(In millions)
Current assets	$	158
Intangible assets, net	934
Goodwill	5,773
Other long-term assets	256
Current contract liabilities	(1,210		)
Other current liabilities	(28		)
Long-term contract liabilities	(634		)
Other long-term liabilities	(38		)
Total net assets sold	$	5,211

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

	Year Ended
(In millions)	April 3, 2020		March 29, 2019		March 30, 2018
Net revenues	$	1,368	$	2,288	$	2,329
Gross profit	$	1,035	$	1,693	$	1,737
Operating income	$	4	$	234	$	214
Gain on sale	$	5,434	$	—	$	—
Income before income taxes	$	5,431	$	228	$	203
Income tax expense	$	2,122	$	87	$	29
Income from discontinued operations	$	3,309	$	141	$	174

The following table presents the gain before income taxes associated with the divestiture, presented as part of Other income (expense), net:

(In millions)
Gain on sale of short-term investment	$	7
Gain on sale of other assets and liabilities	646
Total gain on divestiture	$	653

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

	Year Ended
(In millions)	April 3, 2020		March 29, 2019		March 30, 2018
Amortization and depreciation	$	130	$	368	$	370
Stock-based compensation expense	$	172	$	193	$	309
Purchases of property and equipment	$	43	$	65	$	58

The carrying value of the net assets sold was as follows:

(In millions)
Cash and cash equivalents	$	2
Goodwill and intangible assets, net	670
Liabilities, net of other assets	(222		)
Net assets sold	$	450

The following table presents the aggregate carrying amounts of the classes of assets and liabilities of discontinued operations as of March 29, 2019:

(In millions)
Assets:
Current assets	$	149
Intangible assets, net	1,048
Goodwill	5,773
Other long-term assets	229
Total assets of discontinued operations	$	7,199
Liabilities:
Current contract liabilities	$	1,288
Other current liabilities	16
Long-term contract liabilities	709
Other long-term liabilities	6
Total liabilities of discontinued operations	$	2,019