Segment and Geographic Information

3 Months Ended

Jun. 30, 2023

Segment Reporting [Abstract]

Segment and Geographic Information

Segment and Geographic Information

We operate as one reportable segment. Our Chief Operating Decision Maker reviews financial information presented on a consolidated basis to evaluate company performance and to allocate and prioritize resources.

The following table summarizes net revenues for our major solutions:

	Three Months Ended
(In millions)	June 30, 2023		July 1, 2022
Consumer security revenues	$	599	$	402
Identity and information protection revenues	330		294
Total Cyber Safety revenues	929		696
Legacy revenues	17		11
Total net revenues (1)	$	946	$	707

(1)     During the three months ended June 30, 2023, total net revenues include an unfavorable foreign exchange impact of $9 million from our consumer security solutions.

From time to time, changes in our product hierarchy cause changes to the product categories above. When changes occur, we recast historical amounts to match the current product hierarchy. The changes have been reflected for all periods presented above. Consumer security includes revenues from our Norton 360 Security offerings, Norton Security, Avast Security offerings, Norton Secure VPN, Avira Security and other consumer security and device performance solutions through our direct, partner and small business channels. Identity and information protection includes revenues from our Norton 360 with LifeLock offerings, LifeLock identity theft protection and other information protection and privacy solutions. Legacy includes revenues from products or solutions from markets that we have exited and in which we no longer operate, have been discontinued or identified to be discontinued, or remain in maintenance mode as a result of integration and product portfolio decisions.

Geographic information

Net revenues by geography are based on the billing addresses of our customers. The following table represents net revenues by geographic area at the end of each period presented:

	Three Months Ended
(In millions)	June 30, 2023		July 1, 2022
Americas	$	622	$	508
EMEA	225		120
APJ	99		79
Total net revenues (1)	$	946	$	707

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

(1)     During the three months ended June 30, 2023, total net revenues include an unfavorable foreign exchange impact of $9 million, consisting of $7 million from EMEA and $2 million from APJ.

Revenues from customers inside the U.S. were $565 million and $479 million during the three months ended June 30, 2023 and July 1, 2022, respectively. No other individual country accounted for more than 10% of revenues.

The table below represents cash, cash equivalents and short-term investments held in the U.S. and internationally in various foreign subsidiaries.

(In millions)	June 30, 2023		March 31, 2023
U.S.	$	103	$	178
International	520		572
Total cash, cash equivalents and short-term investments	$	623	$	750

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

(In millions)	June 30, 2023		March 31, 2023
U.S.	$	38	$	38
Czech Republic	13		16
Germany	13		13
Other countries (1)	9		9
Total property and equipment, net	$	73	$	76

(1)     No other 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, at the end of each period presented, are as follows:

(In millions)	June 30, 2023		March 31, 2023
U.S.	$	23	$	25
Czech Republic	9		12
Other countries (1)	6		6
Total operating lease assets	$	38	$	43

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

Significant customers and channel partners

No individual, end-user customer accounted for 10% or more of our net revenues during the three months ended June 30, 2023 and July 1, 2022.

Distributors that accounted for over 10% of our total billed and unbilled accounts receivable were as follows:

	June 30, 2023		March 31, 2023
Distributor A	15	%	13	%
Distributor B	17	%	14	%