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Discontinued Operations and Assets Held for Sale
 6 Months Ended
Oct. 02, 2020
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations and Assets Held for Sale Discontinued Operations and Assets Held for Sale
Discontinued operations
On November 4, 2019, we completed the sale of certain of our Enterprise Security assets and certain liabilities to Broadcom Inc. (the Broadcom sale). As a result, the majority of the results of our Enterprise Security business 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.
In connection with the Broadcom sale, we entered into a transition services agreement under which we provided assistance to Broadcom including, but not limited to, business support services and information technology services. During the first quarter of fiscal 2021, the transition services were substantially completed. Dedicated direct costs, net of charges to Broadcom, for these transition services were $1 million and $9 million during the three and six months ended October 2, 2020, respectively, which were presented as part of Other income (expense), net in the Condensed Consolidated Statements of Operations.
On October 1, 2020, we entered into multiple agreements with Broadcom for an aggregate amount of $200 million. We licensed Broadcom’s enterprise software, multiple security engines and related telemetry for 5.6 years, which will be amortized to continuing operations over the term of the license. In addition, we resolved all outstanding payments and certain claims related to the asset purchase and transition services agreements, which is included in discontinued operations.
The following table presents information regarding certain components of income (loss) from discontinued operations, net of income taxes:
Three Months EndedSix Months Ended
(In millions)
October 2, 2020October 4, 2019October 2, 2020October 4, 2019
Net revenues
$— $576 $— $1,173 
Gross profit$— $451 $— $872 
Operating income (loss)$(133)$107 $(175)$124 
Income (loss) before income taxes$(132)$108 $(173)$124 
Income tax benefit$(30)$(639)$(40)

$(611)
Income (loss) from discontinued operations$(102)$747 $(133)$735 
The following table presents significant non-cash items and capital expenditures of discontinued operations:
Six Months Ended
(In millions)October 2, 2020October 4, 2019
Amortization and depreciation$— $128 
Stock-based compensation expense
$1 $95 
Purchases of property and equipment$— $29 
Assets held for sale
During the third and fourth quarters of fiscal 2020, we reclassified certain land and buildings previously reported as property and equipment to assets held for sale when the properties were approved for immediate sale in their present condition. We have actively marketed the properties and expect to sell them within the next twelve months. In fiscal 2021, we also considered the impact of the COVID-19 pandemic specifically as it affects the real estate values and demand. We determined that there were no impairments because the fair value of the properties less costs to sell exceeds their carrying value. Despite the uncertainty related to real estate values and demand as a result of the pandemic, we continue to execute plans to sell these properties classified as assets held for sale as of October 2, 2020.
On July 27, 2020, we completed the sale of certain properties, including land, buildings, furniture and fixtures, and leasehold improvements, for cash consideration of $118 million, net of selling costs. We recognized a gain of $35 million on the sale.