false2024Q200008493993/29http://fasb.org/us-gaap/2023#AccountingStandardsUpdate202006Member00008493992023-04-012023-09-2900008493992023-11-03xbrli:shares00008493992023-09-29iso4217:USD00008493992023-03-31iso4217:USDxbrli:shares00008493992023-07-012023-09-2900008493992022-07-022022-09-3000008493992022-04-022022-09-300000849399us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2023-06-300000849399us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-06-300000849399us-gaap:RetainedEarningsMember2023-06-3000008493992023-06-300000849399us-gaap:RetainedEarningsMember2023-07-012023-09-290000849399us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-07-012023-09-290000849399us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2023-07-012023-09-290000849399us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2023-09-290000849399us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-09-290000849399us-gaap:RetainedEarningsMember2023-09-290000849399us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2023-03-310000849399us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-03-310000849399us-gaap:RetainedEarningsMember2023-03-310000849399us-gaap:RetainedEarningsMember2023-04-012023-09-290000849399us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-04-012023-09-290000849399us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2023-04-012023-09-290000849399us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2022-07-010000849399us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-07-010000849399us-gaap:RetainedEarningsMember2022-07-0100008493992022-07-010000849399us-gaap:RetainedEarningsMember2022-07-022022-09-300000849399us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-07-022022-09-300000849399us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2022-07-022022-09-300000849399us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2022-09-300000849399us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-09-300000849399us-gaap:RetainedEarningsMember2022-09-3000008493992022-09-300000849399us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2022-04-010000849399us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-04-010000849399us-gaap:RetainedEarningsMember2022-04-0100008493992022-04-010000849399us-gaap:RetainedEarningsMember2022-04-022022-09-300000849399us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-04-022022-09-300000849399us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2022-04-022022-09-3000008493992021-04-032022-04-010000849399us-gaap:CommonStockIncludingAdditionalPaidInCapitalMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2022-04-010000849399srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:RetainedEarningsMember2022-04-010000849399srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2022-04-010000849399gen:DublinAndIrelandBuildingsMemberus-gaap:DisposalGroupHeldforsaleNotDiscontinuedOperationsMember2023-06-300000849399gen:DublinAndIrelandBuildingsMemberus-gaap:DisposalGroupHeldforsaleNotDiscontinuedOperationsMember2023-04-012023-06-300000849399gen:TucsonAndArizonaBuildingsMemberus-gaap:SubsequentEventMemberus-gaap:DisposalGroupHeldforsaleNotDiscontinuedOperationsMember2023-10-120000849399srt:ScenarioForecastMembergen:TucsonAndArizonaBuildingsMemberus-gaap:DisposalGroupHeldforsaleNotDiscontinuedOperationsMember2023-09-302023-12-290000849399gen:AvastPlcMember2022-09-122022-09-120000849399gen:AvastPlcMember2022-09-120000849399gen:AvastPlcMember2023-07-012023-09-290000849399gen:AvastPlcMember2023-04-012023-09-290000849399gen:AvastPlcMember2022-07-022022-09-300000849399gen:AvastPlcMember2022-04-022022-09-3000008493992023-10-012023-09-29xbrli:pure0000849399us-gaap:CustomerRelationshipsMember2023-09-290000849399us-gaap:CustomerRelationshipsMember2023-03-310000849399us-gaap:DevelopedTechnologyRightsMember2023-09-290000849399us-gaap:DevelopedTechnologyRightsMember2023-03-310000849399us-gaap:OtherIntangibleAssetsMember2023-09-290000849399us-gaap:OtherIntangibleAssetsMember2023-03-310000849399us-gaap:TradeNamesMember2023-09-290000849399us-gaap:TradeNamesMember2023-03-310000849399us-gaap:OperatingExpenseMemberus-gaap:CustomerRelationshipsMember2023-07-012023-09-290000849399us-gaap:OperatingExpenseMemberus-gaap:CustomerRelationshipsMember2022-07-022022-09-300000849399us-gaap:OperatingExpenseMemberus-gaap:CustomerRelationshipsMember2023-04-012023-09-290000849399us-gaap:OperatingExpenseMemberus-gaap:CustomerRelationshipsMember2022-04-022022-09-300000849399us-gaap:DevelopedTechnologyRightsMemberus-gaap:CostOfSalesMember2023-07-012023-09-290000849399us-gaap:DevelopedTechnologyRightsMemberus-gaap:CostOfSalesMember2022-07-022022-09-300000849399us-gaap:DevelopedTechnologyRightsMemberus-gaap:CostOfSalesMember2023-04-012023-09-290000849399us-gaap:DevelopedTechnologyRightsMemberus-gaap:CostOfSalesMember2022-04-022022-09-300000849399us-gaap:MaterialReconcilingItemsMember2023-07-012023-09-290000849399us-gaap:MaterialReconcilingItemsMember2022-07-022022-09-300000849399us-gaap:MaterialReconcilingItemsMember2023-04-012023-09-290000849399us-gaap:MaterialReconcilingItemsMember2022-04-022022-09-300000849399us-gaap:LandAndBuildingMember2023-09-290000849399us-gaap:LandAndBuildingMember2023-03-310000849399us-gaap:ComputerEquipmentMember2023-09-290000849399us-gaap:ComputerEquipmentMember2023-03-310000849399us-gaap:OfficeEquipmentMember2023-09-290000849399us-gaap:OfficeEquipmentMember2023-03-310000849399us-gaap:BuildingMember2023-09-290000849399us-gaap:BuildingMember2023-03-310000849399us-gaap:LeaseholdsAndLeaseholdImprovementsMember2023-09-290000849399us-gaap:LeaseholdsAndLeaseholdImprovementsMember2023-03-310000849399us-gaap:ConstructionInProgressMember2023-09-290000849399us-gaap:ConstructionInProgressMember2023-03-310000849399us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-290000849399us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueInputsLevel1Memberus-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-290000849399us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueInputsLevel2Memberus-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-290000849399us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2023-03-310000849399us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueInputsLevel1Memberus-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2023-03-310000849399us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueInputsLevel2Memberus-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2023-03-310000849399us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-290000849399us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:InterestRateSwapMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2023-09-290000849399us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:InterestRateSwapMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2023-09-290000849399us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMember2023-03-310000849399us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:InterestRateSwapMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2023-03-310000849399us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:InterestRateSwapMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2023-03-310000849399us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-290000849399us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2023-09-290000849399us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2023-09-290000849399us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2023-03-310000849399us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2023-03-310000849399us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2023-03-310000849399us-gaap:InterestRateSwapMember2023-03-310000849399us-gaap:FairValueInputsLevel2Member2023-09-290000849399us-gaap:FairValueInputsLevel2Member2023-03-310000849399gen:FacilitiesMembersrt:MinimumMember2023-09-290000849399gen:FacilitiesMembersrt:MaximumMember2023-09-290000849399us-gaap:EquipmentMembersrt:MinimumMember2023-09-290000849399us-gaap:EquipmentMembersrt:MaximumMember2023-09-290000849399gen:DataCenterColocationsMembersrt:MinimumMember2023-09-290000849399gen:DataCenterColocationsMembersrt:MaximumMember2023-09-290000849399gen:A50SeniorNotesDue2025Memberus-gaap:SeniorNotesMember2023-09-290000849399gen:A50SeniorNotesDue2025Memberus-gaap:SeniorNotesMember2023-03-310000849399us-gaap:SecuredDebtMembergen:TermAFacilityDueSeptember122027Member2023-09-290000849399us-gaap:SecuredDebtMembergen:TermAFacilityDueSeptember122027Member2023-03-310000849399gen:A675SeniorNotesDueSeptember302027Memberus-gaap:SeniorNotesMember2023-09-290000849399gen:A675SeniorNotesDueSeptember302027Memberus-gaap:SeniorNotesMember2023-03-310000849399us-gaap:SecuredDebtMembergen:TermBFacilityDueSeptember122029Member2023-09-290000849399us-gaap:SecuredDebtMembergen:TermBFacilityDueSeptember122029Member2023-03-310000849399us-gaap:MortgagesMembergen:A129AviraMortgageDueDecember302029Member2023-09-290000849399us-gaap:MortgagesMembergen:A129AviraMortgageDueDecember302029Member2023-03-310000849399us-gaap:SeniorNotesMembergen:A7125SeniorNotesDueSeptember302030Member2023-09-290000849399us-gaap:SeniorNotesMembergen:A7125SeniorNotesDueSeptember302030Member2023-03-310000849399gen:A095AviraMortgageDueDecember302030Memberus-gaap:MortgagesMember2023-09-290000849399gen:A095AviraMortgageDueDecember302030Memberus-gaap:MortgagesMember2023-03-310000849399gen:SecuredOvernightFinancingRateSOFRPlusCreditSpreadAdjustmentCSAMembergen:TermBFacilityDueSeptember122029Member2023-04-012023-09-290000849399gen:AvastPlcMembergen:AmendedAndRestatedCreditAgreementMemberus-gaap:RevolvingCreditFacilityMember2022-09-120000849399gen:AvastPlcMembergen:AmendedAndRestatedCreditAgreementMembergen:TermLoanInterimFacilityAMember2022-09-120000849399gen:AvastPlcMembergen:AmendedAndRestatedCreditAgreementMembergen:TermLoanInterimFacilityBMember2022-09-120000849399gen:AvastPlcMembergen:AmendedAndRestatedCreditAgreementMemberus-gaap:BridgeLoanMember2022-09-120000849399gen:AmendedAndRestatedCreditAgreementMembergen:TermLoanInterimFacilityAMember2022-09-120000849399gen:AmendedAndRestatedCreditAgreementMembergen:TermLoanInterimFacilityBMember2022-09-120000849399us-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMember2023-09-290000849399gen:SecuredOvernightFinancingRateSOFRMembersrt:MinimumMembergen:AmendedAndRestatedCreditAgreementMember2022-09-122022-09-120000849399gen:SecuredOvernightFinancingRateSOFRMembergen:AmendedAndRestatedCreditAgreementMembersrt:MaximumMember2022-09-122022-09-120000849399srt:MinimumMembergen:AmendedAndRestatedCreditAgreementMemberus-gaap:BaseRateMember2022-09-122022-09-120000849399gen:AmendedAndRestatedCreditAgreementMembersrt:MaximumMemberus-gaap:BaseRateMember2022-09-122022-09-120000849399gen:AmendedAndRestatedCreditAgreementMemberus-gaap:SubsequentEventMembergen:TermLoanInterimFacilityBMember2023-10-132023-10-130000849399gen:AmendedAndRestatedCreditAgreementMemberus-gaap:SubsequentEventMembergen:TermLoanInterimFacilityBMember2023-10-272023-10-270000849399gen:AmendedAndRestatedCreditAgreementMembersrt:WeightedAverageMember2022-09-120000849399gen:AmendedAndRestatedCreditAgreementMembersrt:MaximumMember2022-09-120000849399gen:AmendedAndRestatedCreditAgreementMember2022-09-1200008493992022-09-120000849399us-gaap:SeniorNotesMembergen:A50SeniorNotesDueApril152025Member2017-02-090000849399us-gaap:SeniorNotesMembergen:A50SeniorNotesDueApril152025Member2020-04-150000849399us-gaap:SeniorNotesMember2022-09-192022-09-19gen:seniorNote0000849399gen:A675SeniorNotesDueSeptember302027Memberus-gaap:SeniorNotesMember2022-09-190000849399us-gaap:SeniorNotesMembergen:A7125SeniorNotesDueSeptember302030Member2022-09-190000849399us-gaap:SeniorNotesMembergen:A675And7125SeniorNotesMember2022-09-190000849399us-gaap:ConvertibleDebtMember2022-07-022022-09-300000849399us-gaap:ConvertibleDebtMember2022-04-022022-09-300000849399us-gaap:ConvertibleDebtMember2023-07-012023-09-290000849399us-gaap:ConvertibleDebtMember2023-04-012023-09-290000849399gen:TermAFacilityDueSeptember122027Member2023-03-310000849399gen:A3762FixedRateMemberus-gaap:InterestRateSwapMember2023-03-310000849399gen:A355FixedRateMemberus-gaap:InterestRateSwapMember2023-03-310000849399us-gaap:NondesignatedMemberus-gaap:CashFlowHedgingMemberus-gaap:ForeignExchangeForwardMember2023-09-290000849399us-gaap:NondesignatedMemberus-gaap:CashFlowHedgingMemberus-gaap:ForeignExchangeForwardMember2023-03-310000849399us-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateSwapMember2023-09-290000849399us-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateSwapMember2023-03-310000849399us-gaap:CashFlowHedgingMember2023-09-290000849399us-gaap:CashFlowHedgingMember2023-03-310000849399us-gaap:CashFlowHedgingMemberus-gaap:ForeignExchangeForwardMember2023-03-310000849399us-gaap:CashFlowHedgingMemberus-gaap:ForeignExchangeForwardMember2023-09-290000849399us-gaap:InterestRateSwapMember2023-07-012023-09-290000849399us-gaap:InterestRateSwapMember2023-04-012023-09-290000849399us-gaap:NondesignatedMemberus-gaap:ForeignExchangeForwardMember2023-07-012023-09-290000849399us-gaap:NondesignatedMemberus-gaap:ForeignExchangeForwardMember2022-07-022022-09-300000849399us-gaap:NondesignatedMemberus-gaap:ForeignExchangeForwardMember2023-04-012023-09-290000849399us-gaap:NondesignatedMemberus-gaap:ForeignExchangeForwardMember2022-04-022022-09-300000849399us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateSwapMember2023-07-012023-09-290000849399us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateSwapMember2022-07-022022-09-300000849399us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateSwapMember2023-04-012023-09-290000849399us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateSwapMember2022-04-022022-09-300000849399gen:September2022PlanMember2023-09-290000849399us-gaap:EmployeeSeveranceMembergen:September2022PlanMember2023-03-310000849399us-gaap:EmployeeSeveranceMembergen:September2022PlanMember2023-04-012023-09-290000849399us-gaap:EmployeeSeveranceMembergen:September2022PlanMember2023-09-290000849399us-gaap:ContractTerminationMembergen:September2022PlanMember2023-03-310000849399us-gaap:ContractTerminationMembergen:September2022PlanMember2023-04-012023-09-290000849399us-gaap:ContractTerminationMembergen:September2022PlanMember2023-09-290000849399gen:StockBasedCompensationChargesMembergen:September2022PlanMember2023-03-310000849399gen:StockBasedCompensationChargesMembergen:September2022PlanMember2023-04-012023-09-290000849399gen:StockBasedCompensationChargesMembergen:September2022PlanMember2023-09-290000849399gen:OtherExitAndDisposalCostsMembergen:September2022PlanMember2023-03-310000849399gen:OtherExitAndDisposalCostsMembergen:September2022PlanMember2023-04-012023-09-290000849399gen:OtherExitAndDisposalCostsMembergen:September2022PlanMember2023-09-290000849399gen:September2022PlanMember2023-03-310000849399gen:September2022PlanMember2023-04-012023-09-290000849399us-gaap:EmployeeSeveranceMember2023-07-012023-09-290000849399us-gaap:EmployeeSeveranceMember2022-07-022022-09-300000849399us-gaap:EmployeeSeveranceMember2023-04-012023-09-290000849399us-gaap:EmployeeSeveranceMember2022-04-022022-09-300000849399us-gaap:ContractTerminationMember2023-07-012023-09-290000849399us-gaap:ContractTerminationMember2022-07-022022-09-300000849399us-gaap:ContractTerminationMember2023-04-012023-09-290000849399us-gaap:ContractTerminationMember2022-04-022022-09-300000849399gen:StockBasedCompensationChargesMember2023-07-012023-09-290000849399gen:StockBasedCompensationChargesMember2022-07-022022-09-300000849399gen:StockBasedCompensationChargesMember2023-04-012023-09-290000849399gen:StockBasedCompensationChargesMember2022-04-022022-09-300000849399gen:OtherExitAndDisposalCostsMember2023-07-012023-09-290000849399gen:OtherExitAndDisposalCostsMember2022-07-022022-09-300000849399gen:OtherExitAndDisposalCostsMember2023-04-012023-09-290000849399gen:OtherExitAndDisposalCostsMember2022-04-022022-09-300000849399srt:ScenarioForecastMember2023-11-072023-11-070000849399gen:LiabilityClassifiedAwardsMember2022-09-120000849399gen:ShareRepurchaseProgramMember2023-09-290000849399us-gaap:AccumulatedTranslationAdjustmentMember2023-03-310000849399gen:UnrealizedGainLossOnDerivativeInstrumentsMember2023-03-310000849399us-gaap:AccumulatedTranslationAdjustmentMember2023-04-012023-09-290000849399gen:UnrealizedGainLossOnDerivativeInstrumentsMember2023-04-012023-09-290000849399us-gaap:AccumulatedTranslationAdjustmentMember2023-09-290000849399gen:UnrealizedGainLossOnDerivativeInstrumentsMember2023-09-29gen:plan0000849399us-gaap:CostOfSalesMember2023-07-012023-09-290000849399us-gaap:CostOfSalesMember2022-07-022022-09-300000849399us-gaap:CostOfSalesMember2023-04-012023-09-290000849399us-gaap:CostOfSalesMember2022-04-022022-09-300000849399us-gaap:SellingAndMarketingExpenseMember2023-07-012023-09-290000849399us-gaap:SellingAndMarketingExpenseMember2022-07-022022-09-300000849399us-gaap:SellingAndMarketingExpenseMember2023-04-012023-09-290000849399us-gaap:SellingAndMarketingExpenseMember2022-04-022022-09-300000849399us-gaap:ResearchAndDevelopmentExpenseMember2023-07-012023-09-290000849399us-gaap:ResearchAndDevelopmentExpenseMember2022-07-022022-09-300000849399us-gaap:ResearchAndDevelopmentExpenseMember2023-04-012023-09-290000849399us-gaap:ResearchAndDevelopmentExpenseMember2022-04-022022-09-300000849399us-gaap:GeneralAndAdministrativeExpenseMember2023-07-012023-09-290000849399us-gaap:GeneralAndAdministrativeExpenseMember2022-07-022022-09-300000849399us-gaap:GeneralAndAdministrativeExpenseMember2023-04-012023-09-290000849399us-gaap:GeneralAndAdministrativeExpenseMember2022-04-022022-09-300000849399us-gaap:RestructuringChargesMember2023-07-012023-09-290000849399us-gaap:RestructuringChargesMember2022-07-022022-09-300000849399us-gaap:RestructuringChargesMember2023-04-012023-09-290000849399us-gaap:RestructuringChargesMember2022-04-022022-09-300000849399gen:LiabilityClassifiedAwardsMember2023-09-290000849399gen:LiabilityClassifiedAwardsMember2023-04-012023-09-290000849399us-gaap:RestrictedStockUnitsRSUMember2023-04-012023-09-290000849399us-gaap:RestrictedStockUnitsRSUMember2022-04-022022-09-300000849399us-gaap:RestrictedStockUnitsRSUMember2023-09-290000849399us-gaap:RestrictedStockUnitsRSUMember2022-09-300000849399us-gaap:PerformanceSharesMember2023-04-012023-09-290000849399us-gaap:PerformanceSharesMember2022-04-022022-09-300000849399us-gaap:PerformanceSharesMember2023-09-290000849399us-gaap:PerformanceSharesMember2022-09-300000849399gen:EmployeeEquityAwardsMember2023-07-012023-09-290000849399gen:EmployeeEquityAwardsMember2022-07-022022-09-300000849399gen:EmployeeEquityAwardsMember2023-04-012023-09-290000849399gen:EmployeeEquityAwardsMember2022-04-022022-09-30gen:segment0000849399gen:CoreConsumerSecurityMember2023-07-012023-09-290000849399gen:CoreConsumerSecurityMember2022-07-022022-09-300000849399gen:CoreConsumerSecurityMember2023-04-012023-09-290000849399gen:CoreConsumerSecurityMember2022-04-022022-09-300000849399gen:LifeLockIdentityandFraudProtectionMember2023-07-012023-09-290000849399gen:LifeLockIdentityandFraudProtectionMember2022-07-022022-09-300000849399gen:LifeLockIdentityandFraudProtectionMember2023-04-012023-09-290000849399gen:LifeLockIdentityandFraudProtectionMember2022-04-022022-09-300000849399gen:CyberSafetyRevenuesMember2023-07-012023-09-290000849399gen:CyberSafetyRevenuesMember2022-07-022022-09-300000849399gen:CyberSafetyRevenuesMember2023-04-012023-09-290000849399gen:CyberSafetyRevenuesMember2022-04-022022-09-300000849399gen:LegacyMember2023-07-012023-09-290000849399gen:LegacyMember2022-07-022022-09-300000849399gen:LegacyMember2023-04-012023-09-290000849399gen:LegacyMember2022-04-022022-09-300000849399srt:AmericasMember2023-07-012023-09-290000849399srt:AmericasMember2022-07-022022-09-300000849399srt:AmericasMember2023-04-012023-09-290000849399srt:AmericasMember2022-04-022022-09-300000849399us-gaap:EMEAMember2023-07-012023-09-290000849399us-gaap:EMEAMember2022-07-022022-09-300000849399us-gaap:EMEAMember2023-04-012023-09-290000849399us-gaap:EMEAMember2022-04-022022-09-300000849399srt:AsiaPacificMember2023-07-012023-09-290000849399srt:AsiaPacificMember2022-07-022022-09-300000849399srt:AsiaPacificMember2023-04-012023-09-290000849399srt:AsiaPacificMember2022-04-022022-09-300000849399country:US2023-07-012023-09-290000849399country:US2023-04-012023-09-290000849399country:US2022-07-022022-09-300000849399country:US2022-04-022022-09-300000849399country:US2023-09-290000849399country:US2023-03-310000849399us-gaap:NonUsMember2023-09-290000849399us-gaap:NonUsMember2023-03-310000849399currency:CZK2023-09-290000849399currency:CZK2023-03-310000849399country:DE2023-09-290000849399country:DE2023-03-310000849399gen:OtherForeignCountriesMember2023-09-290000849399gen:OtherForeignCountriesMember2023-03-310000849399gen:CustomerAMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:AccountsReceivableMember2023-04-012023-09-290000849399gen:CustomerAMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:AccountsReceivableMember2022-04-022023-03-310000849399us-gaap:CustomerConcentrationRiskMemberus-gaap:AccountsReceivableMembergen:CustomerBMember2023-04-012023-09-290000849399us-gaap:CustomerConcentrationRiskMemberus-gaap:AccountsReceivableMembergen:CustomerBMember2022-04-022023-03-3100008493992022-05-022022-05-02gen:patent0000849399gen:A322PatentsRemainedInSuitMember2022-05-02gen:numberOfClaim0000849399gen:A115PatentsRemainedInSuitMember2022-05-020000849399gen:TrusteesOfTheUniversityOfColumbiaInTheCityOfNewYorkVNortonLifeLockMember2022-05-022022-05-02gen:coinventor0000849399us-gaap:SubsequentEventMembergen:TrusteesOfTheUniversityOfColumbiaInTheCityOfNewYorkVNortonLifeLockMember2023-09-302023-09-30gen:multiplier0000849399gen:TrusteesOfTheUniversityOfColumbiaInTheCityOfNewYorkVNortonLifeLockMember2023-09-2900008493992021-05-242021-05-2400008493992021-06-082021-06-0800008493992023-01-042023-01-04gen:lawsuit0000849399gen:GeneralServicesAdministrationGsaMultipleAwardScheduleContractMember2007-01-012012-09-300000849399gen:GeneralServicesAdministrationGsaMultipleAwardScheduleContractMember2014-01-012014-01-310000849399country:US2023-01-192023-01-190000849399stpr:CA2023-01-192023-01-190000849399gen:GeneralServicesAdministrationGsaMultipleAwardScheduleContractMember2021-05-132021-05-130000849399gen:GeneralServicesAdministrationGsaMultipleAwardScheduleContractMember2022-02-282022-02-280000849399gen:GeneralServicesAdministrationGsaMultipleAwardScheduleContractMember2023-01-310000849399srt:MinimumMembergen:GeneralServicesAdministrationGsaMultipleAwardScheduleContractMember2023-01-310000849399gen:GeneralServicesAdministrationGsaMultipleAwardScheduleContractMembersrt:MaximumMember2023-01-31

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended September 29, 2023
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
      
For the Transition Period from                to                
Commission File Number 000-17781
Gen Digital Inc.
(Exact name of the registrant as specified in its charter)
Delaware
77-0181864
(State or other jurisdiction of incorporation or organization)
(I.R.S. employer Identification no.)
60 E. Rio Salado Parkway,
Suite 1000,
Tempe,
Arizona
85281
(Address of principal executive offices)
(Zip code)
Registrant’s telephone number, including area code:
(650527-8000
Former name or former address, if changed since last report:
Not applicable
  ________________________
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading symbol(s)
Name of each exchange on which registered
Common Stock,
par value $0.01 per share
GEN
The Nasdaq Stock Market LLC
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes þ   No 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes þ   No 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer
þ
Accelerated filer
Non-accelerated filer
Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes    No þ
The number of shares of Gen common stock, $0.01 par value per share, outstanding as of November 3, 2023 was 640,715,270 shares.


Table of Contents
GEN DIGITAL INC.
FORM 10-Q
Quarterly Period Ended September 29, 2023
TABLE OF CONTENTS
Page
“Gen,” “we,” “us,” “our,” and “the Company” refer to Gen Digital Inc. and all of its subsidiaries. Gen, Norton, Avast,
LifeLock, Avira, AVG, Reputation Defender, CCleaner and all related trademarks, service marks and trade names are trademarks or registered trademarks of Gen or other respective owners that have granted Gen the right to use such marks. Other names may be trademarks of their respective owners.
2

Table of Contents
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
GEN DIGITAL INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, in millions, except par value per share amounts)
September 29, 2023March 31, 2023
ASSETS
Current assets:
Cash and cash equivalents$629 $750 
Accounts receivable, net147 168 
Other current assets278 284 
Assets held for sale22 31 
Total current assets1,076 1,233 
Property and equipment, net75 76 
Operating lease assets39 43 
Intangible assets, net2,859 3,097 
Goodwill10,199 10,217 
Other long-term assets2,163 1,281 
Total assets$16,411 $15,947 
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
Current liabilities:
Accounts payable$66 $77 
Accrued compensation and benefits61 102 
Current portion of long-term debt175 233 
Contract liabilities1,599 1,708 
Current operating lease liabilities19 26 
Other current liabilities540 703 
Total current liabilities2,460 2,849 
Long-term debt9,333 9,529 
Long-term contract liabilities73 80 
Deferred income tax liabilities256 395 
Long-term income taxes payable1,213 820 
Long-term operating lease liabilities31 31 
Other long-term liabilities631 43 
Total liabilities13,997 13,747 
Commitments and contingencies (Note 18)

Stockholders’ equity (deficit):
Common stock and additional paid-in capital, $0.01 par value: 3,000 shares authorized; 641 and 640 shares issued and outstanding as of September 29, 2023 and March 31, 2023, respectively
2,655 2,800 
Accumulated other comprehensive income (loss)6 (15)
Retained earnings (accumulated deficit)(247)(585)
Total stockholders’ equity (deficit)2,414 2,200 
Total liabilities and stockholders’ equity (deficit)$16,411 $15,947 
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
3

Table of Contents
GEN DIGITAL INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in millions, except per share amounts)
Three Months EndedSix Months Ended
 September 29, 2023September 30, 2022September 29, 2023September 30, 2022
Net revenues$948 $748 $1,894 $1,455 
Cost of revenues180 119 359 221 
Gross profit768 629 1,535 1,234 
Operating expenses:
Sales and marketing187 167 368 323 
Research and development85 73 175 134 
General and administrative393 110 449 214 
Amortization of intangible assets61 29 122 50 
Restructuring and other costs17 9 34 11 
Total operating expenses743 388 1,148 732 
Operating income (loss)25 241 387 502 
Interest expense(173)(48)(343)(79)
Other income (expense), net7 2 19 1 
Income (loss) before income taxes(141)195 63 424 
Income tax expense (benefit)(290)126 (275)155 
Net income (loss)$149 $69 $338 $269 
Net income (loss) per share - basic$0.23 $0.12 $0.53 $0.46 
Net income (loss) per share - diluted$0.23 $0.12 $0.52 $0.45 
Weighted-average shares outstanding:
Basic640 590 640 583 
Diluted644 595 644 599 
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

4

Table of Contents
GEN DIGITAL INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Unaudited, in millions)
 
Three Months EndedSix Months Ended
 
September 29, 2023September 30, 2022September 29, 2023September 30, 2022
Net income (loss)$149 $69 $338 $269 
Other comprehensive income (loss), net of taxes:
Foreign currency translation gain (loss)(36)29 (4)(11)
Net unrealized gain (loss) on derivative instruments6  25  
Other comprehensive income (loss), net of taxes(30)29 21 (11)
Comprehensive income (loss)$119 $98 $359 $258 
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
5

Table of Contents
GEN DIGITAL INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT)
(Unaudited, in millions, except share amounts)
Three months ended September 29, 2023
Common Stock and Additional Paid-In CapitalAccumulated Other Comprehensive Income (Loss)Retained Earnings (Accumulated Deficit)Total Stockholders’ Equity (Deficit)
SharesAmount
Balance as of June 30, 2023639 $2,697 $36 $(396)$2,337 
Net income (loss)— — — 149 149 
Other comprehensive income (loss), net of taxes— — (30)— (30)
Common stock issued under employee stock incentive plans2 6 — — 6 
Shares withheld for taxes related to vesting of stock units— (1)— — (1)
Cash dividends declared ($0.125 per share of common stock) and dividend equivalents accrued
— (82)— — (82)
Stock-based compensation— 35 — — 35 
Balance as of September 29, 2023641 $2,655 $6 $(247)$2,414 
Six months ended September 29, 2023Common Stock and Additional Paid-In CapitalAccumulated Other Comprehensive Income (Loss)Retained Earnings (Accumulated Deficit)Total Stockholders’ Equity (Deficit)
SharesAmount
Balance as of March 31, 2023640 $2,800 $(15)$(585)$2,200 
Net income (loss)— — — 338 338 
Other comprehensive income (loss), net of taxes— — 21 — 21 
Common stock issued under employee stock incentive plans5 6 — — 6 
Shares withheld for taxes related to vesting of stock units(1)(19)— — (19)
Repurchases of common stock(3)(41)— — (41)
Cash dividends declared ($0.250 per share of common stock) and dividend equivalents accrued
— (163)— — (163)
Stock-based compensation— 72 — — 72 
Balance as of September 29, 2023641$2,655 $6 $(247)$2,414 
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
















6

Table of Contents
GEN DIGITAL INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT)
(Unaudited, in millions, except share amounts)

Three months ended September 30, 2022Common Stock and Additional Paid-In CapitalAccumulated Other Comprehensive Income (Loss)Retained Earnings (Accumulated Deficit)Total Stockholders’ Equity (Deficit)
SharesAmount
Balance as of July 1, 2022571 $1,479 $(44)$(1,734)$(299)
Net income (loss)— — — 69 69 
Other comprehensive income (loss), net of taxes— — 29 — 29 
Common stock issued under employee stock incentive plans1 6 — — 6 
Repurchases of common stock(5)(104)— — (104)
Cash dividends declared ($0.125 per share of common stock) and dividend equivalents accrued
— (73)— — (73)
Stock-based compensation— 29 — — 29 
Extinguishment of convertible debt— (100)— — (100)
Merger consideration94 2,141 — — 2,141 
Balance as of September 30, 2022661 $3,378 $(15)$(1,665)$1,698 
Six months ended September 30, 2022
Common Stock and Additional Paid-In CapitalAccumulated Other Comprehensive Income (Loss)Retained Earnings (Accumulated Deficit)Total Stockholders’ Equity (Deficit)
SharesAmount
Balance as of April 1, 2022582 $1,851 $(4)$(1,940)$(93)
Net income (loss)— — — 269 269 
Other comprehensive income (loss), net of taxes— — (11)— (11)
Common stock issued under employee stock incentive plans3 6 — — 6 
Shares withheld for taxes related to vesting of stock units
(1)(16)— — (16)
Repurchases of common stock(17)(404)— — (404)
Cash dividends declared ($0.250 per share of common stock) and dividend equivalents accrued
— (146)— — (146)
Stock-based compensation— 53 — — 53 
Extinguishment of convertible debt— (100)— — (100)
Cumulative effect adjustment from adoption of ASU 2020-06 (1)
— (7)— 6 (1)
Merger consideration94 2,141 — — 2,141 
Balance as of September 30, 2022661 $3,378 $(15)$(1,665)$1,698 
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
(1) Effective on April 2, 2022, the Company adopted ASU 2020-06 (Debt with Conversion and Other Options, ASC 470-20) using a modified retrospective method.
7

Table of Contents
GEN DIGITAL INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in millions)
Six Months Ended
September 29, 2023September 30, 2022
OPERATING ACTIVITIES:
Net income (loss)$338 $269 
Adjustments:
Amortization and depreciation250 78 
Impairments and write-offs of current and long-lived assets (5)
Stock-based compensation expense72 53 
Deferred income taxes(976)(51)
Loss (gain) on extinguishment of debt 9 
Gain on sale of property(4) 
Non-cash operating lease expense11 11 
Other17 (45)
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable, net16 17 
Accounts payable(15)(18)
Accrued compensation and benefits(41)3 
Contract liabilities(99)(85)
Income taxes payable417 (91)
Other assets(21)9 
Other liabilities386 (27)
Net cash provided by (used in) operating activities351 127 
INVESTING ACTIVITIES:
Purchases of property and equipment(9)(4)
Payments for acquisitions, net of cash acquired (6,550)
Proceeds from the maturities and sales of short-term investments 4 
Proceeds from the sale of property13  
Other(1)4 
Net cash provided by (used in) investing activities3 (6,546)
FINANCING ACTIVITIES:
Repayments of debt(266)(2,738)
Proceeds from issuance of debt, net of issuance costs 8,954 
Net proceeds from sales of common stock under employee stock incentive plans6 6 
Tax payments related to vesting of stock units(20)(16)
Dividends and dividend equivalents paid(164)(153)
Repurchases of common stock(41)(404)
Net cash provided by (used in) financing activities(485)5,649 
Effect of exchange rate fluctuations on cash and cash equivalents10 (22)
Change in cash and cash equivalents(121)(792)
Beginning cash and cash equivalents750 1,887 
Ending cash and cash equivalents$629 $1,095 
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
8

Table of Contents
GEN DIGITAL INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Note 1. Description of Business and Significant Accounting Policies
Business
Gen Digital Inc. is a global company powering Digital Freedom with a family of trusted consumer brands including Norton, Avast, LifeLock, Avira, AVG, ReputationDefender and CCleaner. Our Cyber Safety portfolio provides protection across multiple channels and geographies, including security and performance, identity protection, and online privacy. Our technology platforms bring together software and service capabilities into comprehensive and easy-to-use products and solutions across our brands. We have also evolved beyond traditional Cyber Safety to offer adjacent trust-based solutions, including digital identity and access management, digital reputation, and restoration support services.
On September 12, 2022, we completed our acquisition of Avast, plc (Avast). Avast has been included in our consolidated results of operations since the acquisition date. See Note 4 for further information about this business combination.
Basis of presentation
The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles (GAAP) in the United States of America for interim financial information. In the opinion of management, the unaudited Condensed Consolidated Financial Statements contain all adjustments, consisting only of normal recurring items, except as otherwise noted, necessary for the fair presentation of our financial position, results of operations and cash flows for the interim periods. These unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended March 31, 2023. The results of operations for the three and six months ended September 29, 2023 are not necessarily indicative of the results expected for the entire fiscal year.
Fiscal calendar
We have a 52/53-week fiscal year ending on the Friday closest to March 31. Unless otherwise stated, references to three and six month periods in this report relate to fiscal periods ended September 29, 2023 and September 30, 2022. The three and six months ended September 29, 2023 and September 30, 2022 each consisted of 13 and 26 weeks, respectively. Our 2024 fiscal year consists of 52 weeks and ends on March 29, 2024.
Use of estimates
The preparation of Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported and disclosed in the financial statements and accompanying Notes. Such estimates include, but are not limited to, valuation of business combinations including acquired intangible assets and goodwill, loss contingencies, the recognition and measurement of current and deferred income taxes, including the measurement of uncertain tax positions, and valuation of assets and liabilities. On an ongoing basis, management determines these estimates and assumptions based on historical experience and on various other assumptions that are believed to be reasonable. Third-party valuation specialists are also utilized for certain estimates. Actual results could differ from such estimates and assumptions due to risks and uncertainties, including uncertainty in the current economic environment as a result of macroeconomic factors such as inflation, fluctuations in foreign currency exchange rates relative to the U.S. dollar, our reporting currency, changes in interest rates, and Russia’s invasion of Ukraine, and such differences may be material to the Condensed Consolidated Financial Statements.
Significant accounting policies
With the exception of those discussed in Note 2, there have been no material changes to our significant accounting policies as of and for the three and six months ended September 29, 2023, as compared to the significant accounting policies described in our Annual Report on Form 10-K for the fiscal year ended March 31, 2023.
Note 2. Recent Accounting Standards
Recently adopted authoritative guidance
There have been no material changes in recently issued or adopted accounting standards from those disclosed in our Annual Report on Form 10-K for the fiscal year ended March 31, 2023.
Although there are several other new accounting pronouncements issued or proposed by the FASB that we have adopted or will adopt, as applicable, we do not believe any of these accounting pronouncements has had, or will have, a material impact on our Condensed Consolidated Financial Statements and disclosures.
9

Table of Contents
Note 3. Assets Held for Sale
Assets held for sale
During 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 and the sale was expected to be completed within one year. However, the commercial real estate market was adversely affected by the COVID-19 pandemic, which delayed the expected timing of such sales.
During fiscal 2023, we determined land and buildings in Dublin, Ireland, which were previously reported as property and equipment, now qualifies as held for sale.
During the first quarter of fiscal 2024, we completed the sale of certain land and buildings in Dublin, Ireland, which were previously classified as held for sale as of March 31, 2023, for cash consideration of $13 million, net of selling costs, and recognized a gain on sale of $4 million. The remaining land and building in Dublin, Ireland, remains as held for sale.
Subsequent to September 29, 2023, on October 12, 2023, we completed the sale of certain land and buildings in Tucson, Arizona, which were previously classified as held for sale as of September 29, 2023 and March 31, 2023, for cash consideration of $12 million, net of selling costs. We recognized a gain on sale of $5 million during the third quarter of fiscal 2024.
We have taken into consideration the current real estate values and demand and continue to execute plans to sell the remaining property. As of September 29, 2023, the property is classified as held for sale. During the three and six months ended September 29, 2023, there were no impairments because the fair value less costs to sell either equals or exceeds its carrying value.
Note 4. Business Combinations
Fiscal 2023 Avast acquisition
During the second quarter of fiscal 2023, we acquired all of the outstanding common stock of Avast. Prior to the acquisition, Avast was a global leader in consumer cybersecurity, offering a comprehensive range of digital security and privacy products and services that protected and enhanced users’ online experiences. With this acquisition, we are positioned to provide a broad and complementary consumer product portfolio with greater geographic diversification and access to a larger user base. The total consideration for the acquisition of Avast was approximately $8,688 million, net of cash acquired.
Our final allocation of the aggregate purchase price for the acquisition as of September 12, 2022, was as follows:
(In millions)September 12, 2022
Assets:
Accounts receivable$63 
Other current assets17 
Property and equipment33 
Operating lease assets18 
Intangible assets2,383 
Goodwill7,335 
Other long-term assets11 
Total assets acquired9,860 
Liabilities:
Current liabilities180 
Contract liabilities509 
Operating lease liabilities18 
Long-term deferred tax liabilities419 
Other long-term obligations46 
Total liabilities assumed1,172 
Total purchase price$8,688 
Our estimates and assumptions were subject to refinement within the measurement period, which ended during the second quarter of fiscal 2024. Adjustments to the purchase price during the measurement period required adjustments to be made to goodwill. During the three and six months ended September 29, 2023, we recorded measurement period adjustments resulting in a net decrease to goodwill of $14 million, resulting from updated information regarding deferred tax liabilities, which resulted in a decrease of $14 million of long-term deferred tax liabilities.
Unaudited pro forma information
The following unaudited pro forma financial information represents the combined historical results for the three and six months ended September 30, 2022, as if the acquisition had been completed on April 3, 2021, the first day of fiscal 2022. The results presented below include adjustments to conform Avast financial information, prepared in accordance with International Financial Reporting Standards (IFRS), to U.S. GAAP as well as the impacts of material, nonrecurring pro forma adjustments,
10

Table of Contents
including amortization of acquired intangible assets, interest on debt issued to finance the acquisition, and acquisition-related transaction costs, and the income tax effect of the other pro forma adjustments. The unaudited pro forma results do not include any anticipated synergies or other expected benefits of the acquisition. The following table summarizes the unaudited pro forma financial information:
September 30, 2022
(In millions)Three Months EndedSix Months Ended
Net revenues$930 $1,873 
Net income (loss)$(62)$47 
The unaudited pro forma financial information is provided for informational purposes only and are not indicative of future operations or results that would have been achieved had the acquisition been completed as of the beginning of fiscal 2022.
Note 5. Revenues
Contract liabilities
During the three and six months ended September 29, 2023, we recognized $693 million and $1,206 million from the contract liabilities balances as of June 30, 2023 and March 31, 2023, respectively. During the three and six months ended September 30, 2022, we recognized $502 million and $875 million from the contract liabilities balances as of July 1, 2022 and April 1, 2022, respectively.
Remaining performance obligations
Remaining performance obligations represent contract revenue that has not been recognized, which include contract liabilities and amounts that will be billed and recognized as revenue in future periods. As of September 29, 2023, we had $1,148 million of remaining performance obligations, excluding customer deposit liabilities of $524 million, of which we expect to recognize approximately 94% as revenue over the next 12 months.
See Note 17 for tabular disclosures of disaggregated revenue by solution and geographic region.
Note 6. Goodwill and Intangible Assets
Goodwill
The changes in the carrying amount of goodwill were as follows:
(In millions)
Balance as of March 31, 2023$10,217 
Purchase accounting adjustment(14)
Translation adjustments
(4)
Balance as of September 29, 2023$10,199 
Intangible assets, net
 September 29, 2023March 31, 2023
(In millions)Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Customer relationships$1,640 $(666)$974 $1,641 $(549)$1,092 
Developed technology1,461 (394)1,067 1,462 (279)1,183 
Other91 (12)79 91 (8)83 
Total finite-lived intangible assets3,192 (1,072)2,120 3,194 (836)2,358 
Indefinite-lived trade names739 — 739 739 — 739 
Total intangible assets$3,931 $(1,072)$2,859 $3,933 $(836)$3,097 
Amortization expense for purchased intangible assets is summarized below:
Three Months EndedSix Months EndedCondensed Consolidated Statements of Operations Classification
(In millions)September 29, 2023September 30, 2022September 29, 2023September 30, 2022
Customer relationships and other$61 $29 $122 $50 Operating expenses
Developed technology58 16 115 21 Cost of revenues
Total$119 $45 $237 $71 
11

Table of Contents
As of September 29, 2023, future amortization expense related to intangible assets that have finite lives is as follows by fiscal year:
(In millions)
Remainder of 2024$225 
2025401 
2026394 
2027381 
2028378 
Thereafter341 
Total$2,120 
Note 7. Supplementary Information
Cash and cash equivalents:
(In millions)September 29, 2023March 31, 2023
Cash$417 $576 
Cash equivalents212 174 
Total cash and cash equivalents$629 $750 
Accounts receivable, net:
(In millions)September 29, 2023March 31, 2023
Accounts receivable$148 $169 
Allowance for doubtful accounts(1)(1)
Total accounts receivable, net$147 $168 
Other current assets:
(In millions)September 29, 2023March 31, 2023
Prepaid expenses$122 $122 
Income tax receivable and prepaid income taxes96 123 
Other tax receivable29 16 
Other31 23 
Total other current assets$278 $284 
Property and equipment, net:
(In millions)September 29, 2023March 31, 2023
Land$13 $13 
Computer hardware and software499 498 
Office furniture and equipment17 17 
Buildings27 28 
Leasehold improvements28 28 
Construction in progress12 1 
Total property and equipment, gross596 585 
Accumulated depreciation and amortization(521)(509)
Total property and equipment, net$75 $76 
12

Table of Contents
Other long-term assets:
(In millions)September 29, 2023March 31, 2023
Non-marketable equity investments$176 $176 
Long-term income tax receivable and prepaid income taxes695 669 
Deferred income tax assets1,198 353 
Long-term prepaid royalty28 36 
Other66 47 
Total other long-term assets$2,163 $1,281 
Short-term contract liabilities:
(In millions)September 29, 2023March 31, 2023
Deferred revenue$1,075 $1,153 
Customer deposit liabilities524 555 
Total short-term contract liabilities$1,599 $1,708 
Other current liabilities:
(In millions)September 29, 2023March 31, 2023
Income taxes payable$201 $172 
Other taxes payable79 76 
Accrued legal fees39 284 
Accrued royalties45 48 
Accrued interest78 27 
Other98 96 
Total other current liabilities$540 $703 
Other long-term liabilities:
(In millions)September 29, 2023March 31, 2023
Long-term accrued legal fees$588 $ 
Other 43 43 
Total other long-term liabilities$631 $43 
Long-term income taxes payable:
(In millions)September 29, 2023March 31, 2023
Deemed repatriation tax payable$139 $310 
Other long-term income taxes1 1 
Unrecognized tax benefits and related interest and penalties1,073 509 
Total long-term income taxes payable$1,213 $820 
As of September 29, 2023, total deferred income taxes changed by $984 million, which primarily relates to goodwill of $592 million, intangibles of $112 million, and other accruals and reserves not currently tax deductible of $192 million, and current year unrecognized tax benefits and penalties, which increased by $450 million and $90 million, respectively.
Other income (expense), net:
Three Months EndedSix Months Ended
(In millions)September 29, 2023September 30, 2022September 29, 2023September 30, 2022
Interest income$6 $3 $12 $5 
Foreign exchange gain (loss)1 2 2 1 
Gain (loss) on early extinguishment of debt (9) (9)
Gain on sale of properties  4  
Other 6 1 4 
Other income (expense), net$7 $2 $19 $1 
13

Table of Contents
Supplemental cash flow information:
Six Months Ended
(In millions)September 29, 2023September 30, 2022
Income taxes paid, net of refunds$270 $295 
Interest expense paid$283 $63 
Cash paid for amounts included in the measurement of operating lease liabilities$13 $11 
Non-cash operating activities:
Operating lease assets obtained in exchange for operating lease liabilities$ $18 
Reduction of operating lease assets as a result of lease terminations and modifications$(7)$30 
Non-cash investing and financing activities:
Purchases of property and equipment in current liabilities$4 $ 
Non-cash consideration for the Merger with Avast$ $2,141 
Note 8. Financial Instruments and Fair Value Measurements
For financial instruments measured at fair value, fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining fair value, we consider the principal or most advantageous market in which we would transact, and we consider assumptions that market participants would use when pricing the asset or liability.
The three levels of inputs that may be used to measure fair value are:
Level 1: Quoted prices in active markets for identical assets or liabilities.
Level 2: Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in less active markets or model-derived valuations. All significant inputs used in our valuations, such as discounted cash flows, are observable or can be derived principally from or corroborated with observable market data for substantially the full term of the assets or liabilities.
Level 3: Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of assets or liabilities. We monitor and review the inputs and results of these valuation models to help ensure the fair value measurements are reasonable and consistent with market experience in similar asset classes.
Assets measured and recorded at fair value on a recurring basis
The following table summarizes our financial instruments measured at fair value on a recurring basis:
September 29, 2023March 31, 2023
(In millions)Fair ValueLevel 1Level 2Fair ValueLevel 1Level 2
Assets:
Money market funds$212 $212 $ $174 $174 $ 
Interest rate swaps (1)
24  24    
Total$236 $212 $24 $174 $174 $ 
(1) The fair value of our interest rate swaps is less than $1 million as of March 31, 2023.
Financial instruments not recorded at fair value on a recurring basis include our non-marketable equity investments and long-term debt.
Non-marketable equity investments
As of September 29, 2023 and March 31, 2023, the carrying value of our non-marketable equity investments was $176 million.
Current and long-term debt
As of September 29, 2023 and March 31, 2023, the total fair value of our current and long-term fixed rate debt was $2,550 million and $2,593 million, respectively. The fair value of our variable rate debt approximated its carrying value. The fair values of all our debt obligations were based on Level 2 inputs.
Note 9. Leases
We lease certain of our facilities, equipment and data center co-locations under operating leases that expire on various dates through fiscal 2030. Our leases generally have terms that range from 1 year to 11 years for our facilities, 1 year to 3 years for equipment and 1 year to 5 years for data center co-locations. Some of our leases contain renewal options, escalation clauses, rent concessions and leasehold improvement incentives.
14

Table of Contents
The following summarizes our lease costs:
Three Months EndedSix Months Ended
(In millions)September 29, 2023September 30, 2022September 29, 2023September 30, 2022
Operating lease costs$2 $3 $6 $7 
Short-term lease costs1  1 1 
Variable lease costs2 2 3 3 
Total lease costs$5 $5 $10 $11 
Other information related to our operating leases was as follows:
September 29, 2023March 31, 2023
Weighted-average remaining lease term3.9 years2.8 years
Weighted-average discount rate5.06 %4.38 %
See Note 7 for cash flow information related to our operating leases.
As of September 29, 2023, the maturities of our lease liabilities by fiscal year are as follows:
(In millions)
Remainder of 2024$11 
202514 
202610 
202710 
20285 
Thereafter5 
Total lease payments55 
Less: Imputed interest(5)
Present value of lease liabilities$50 
15

Table of Contents
Note 10. Debt
The following table summarizes components of our debt:
(In millions, except percentages)
September 29, 2023March 31, 2023
Effective
Interest Rate
5.00% Senior Notes due April 15, 2025
$1,100 $1,100 5.00 %
Term A Facility due September 12, 20273,764 3,861 
SOFR + % (2)
6.75% Senior Notes due September 30, 2027
900 900 6.75 %
Term B Facility due September 12, 20293,262 3,431 
SOFR + % (3)
1.29% Avira Mortgage due December 30, 2029 (1)
4 4 1.29 %
7.125% Senior Notes due September 30, 2030
600 600 7.13 %
0.95% Avira Mortgage due December 30, 2030 (1)
3 3 0.95 %
Total principal amount
9,633 9,899 
Less: unamortized discount and issuance costs
(125)(137)
Total debt9,508 9,762 
Less: current portion(175)(233)
Total long-term debt$9,333 $9,529 
(1)     The Avira Mortgages are denominated in a foreign currency so the balances of these mortgages may fluctuate based on changes in foreign currency exchange rates.
(2)     Term A Facility due 2027 bears interest at a rate equal to Term SOFR plus a credit spread adjustment (CSA) plus a margin based either on the current debt rating of our non-credit-enhanced, senior unsecured long-term debt or consolidated adjusted leverage as defined in the underlying loan agreement.
(3)     Term B Facility due 2029 bears interest at a rate equal to Term SOFR plus CSA plus 2.00%.
The interest rates for the outstanding term loans are as follows:
September 29, 2023March 31, 2023
Term A Facility due September 12, 20276.92 %6.66 %
Term B Facility due September 12, 20297.42 %6.91 %
As of September 29, 2023, the future contractual maturities of debt by fiscal year are as follows:
(In millions)
Remainder of 2024$117 
2025176 
20261,392 
2027233 
20284,017 
Thereafter3,698 
Total future maturities of debt$9,633 
Senior credit facilities
On September 12, 2022, we entered into the Amended and Restated Credit Agreement (Credit Agreement) with certain financial institutions, in which they agreed to provide us with (i) a $1,500 million revolving credit facility (Revolving Facility), a $3,910 million term loan A facility (Term A Facility), (iii) a $3,690 million term loan B facility (Term B Facility) and (iv) a $750 million tranche A bridge loan (Bridge Loan) (collectively, the senior credit facilities). The Bridge Loan was undrawn and immediately terminated upon the close of the acquisition of Avast. The Credit Agreement provides that we have the right at any time, subject to customary conditions, to request incremental revolving commitments and incremental term loans up to an unlimited amount, subject to certain customary conditions precedent and other provisions. The lenders under these facilities will not be under any obligation to provide any such incremental loans or commitments. We drew down the aggregate principal amounts of the Term A Facility and Term B Facility to finance the cash consideration payable for the transaction and to fully repay the outstanding principal and accrued interest of the existing credit facilities. The Credit Agreement replaced the existing credit facilities upon the close of the transaction. The Revolving Facility and Term A Facility will mature in September 2027, and the Term Facility B will mature in September 2029; the senior credit facilities remain senior secured.
16

Table of Contents
The principal amounts of Term Facility A must be repaid in quarterly installments on the last business day of each calendar quarter equal to 1.25% of the aggregate principal amount as of the date of the Credit Agreement. The principal amounts of Term Facility B must be repaid in quarterly installments on the last business day of each calendar quarter equal to 0.25% of the aggregate principal amount as of the date of the Credit Agreement. Quarterly installment payments commenced on March 31, 2023. We may voluntarily repay outstanding principal balances under the Revolving Facility and both Term Loan facilities without penalty. As of September 29, 2023, there were no borrowings outstanding under our Revolving Facility; however, from time to time we utilize letters of credits as part of our ordinary course of business. Letters of credit reduce our Revolving Facility commitment amounts.
Interest on borrowings under the Credit Agreement can be based on a base rate or the SOFR at our election. Based on our debt ratings and our consolidated leverage ratios as determined in accordance with the Credit Agreement, loans borrowed bear interest, in the case of base rate loans, at a per annum rate equal to the applicable base rate plus CSA plus a margin ranging from 0.125% to 0.75%, and in the case of the SOFR loans, SOFR, as adjusted for statutory reserves, plus a margin ranging from 1.125% to 1.75%.
On October 13, 2023 and October 27, 2023, we made voluntary prepayments of $100 million each, pursuant to Section 2.05(a) of the Credit Agreement dated September 12, 2022. The prepayments were applied exclusively to the Term B Facility.
Debt covenant compliance
The Credit Agreement contains customary representations and warranties, affirmative and negative covenants. Each of the Revolving Facility and Term A Facility are subject to a covenant that we maintain a consolidated leverage ratio less than or equal to (i) 6.0 to 1.0 from the second quarter of fiscal 2023 through the last day of the second quarter of fiscal 2024, (ii) 5.75 to 1.0 following the last day of the second quarter of fiscal 2024 through the last day of the second quarter of fiscal 2025 and (iii) 5.25 to 1.0 for each fiscal quarter thereafter; provided that such maximum consolidated leverage ratio will increase to 5.75 to 1.0 for the four fiscal quarters ending immediately should we acquire property, business or assets in an aggregate amount greater than $250 million.
In addition, the Credit Agreement contains customary events of default under which our payment obligations may be accelerated, including, among others, non-payment of principal, interest or other amounts when due, inaccuracy of representations and warranties, violation of certain covenants, payment and acceleration cross defaults with certain other indebtedness, certain undischarged judgments, bankruptcy, insolvency or inability to pay debts, change of control, the occurrence of certain events related to the Employee Retirement Income Security Act of 1974 (ERISA), and the Company experiencing a change of control. As of September 29, 2023, we were in compliance with all debt covenants.
Senior notes
On February 9, 2017, we issued $1,100 million aggregate principal amount of our 5.0% Senior Notes due April 15, 2025 (the 5.0% Senior Notes). The 5.0% Senior Notes bear interest at a rate of 5.00% per year, payable semiannually in arrears on April 15 and October 15 of each year, beginning on October 15, 2017. On or after April 15, 2020, we may redeem some or all of the 5.0% Senior Notes at the applicable redemption prices set forth in the supplemental indenture, plus accrued and unpaid interest.
On September 19, 2022, we issued two series of senior notes, consisting of 6.75% Senior Notes due 2027 and 7.125% Senior Notes due 2030, for an aggregate principal of $1,500 million. They are senior unsecured obligations that rank equally in right of payment with all of our existing and future senior, unsecured, unsubordinated obligations and may be redeemed at any time, subject to the make-whole provisions contained in the applicable indenture relating to such series of notes. Interest on these series of notes is payable semi-annually in arrears on March 31 and September 30 for both the 6.75% Senior Notes and 7.125% Senior Notes, commencing on March 31, 2023. We may redeem some or all of the 6.75% Senior Notes due 2027 and 7.125% Senior Notes due 2030 at any time, subject to a prepayment penalty that expires one year prior to the maturity of each respective note. The First Call Dates of the 6.75% Senior Notes due 2027 and 7.125% Senior Notes due 2030 are September 30, 2024 and September 30, 2025, respectively.
Convertible Senior Notes
The following table sets forth total interest expense recognized related to our Convertible Senior Notes:
September 30, 2022
(In millions)Three Months EndedSix Months Ended
Contractual interest expense$1 $4 
Amortization of debt discount$ $ 
Payments in lieu of conversion price adjustments (1)
$ $1 
(1) Payments in lieu of conversion price adjustments consist of amounts paid to holders of the Convertible Senior Notes when our quarterly dividend to our common stockholders exceeds the amounts defined in the Convertible Senior Notes agreements.
During the three and six months ended September 29, 2023, we did not recognize any interest expense related to our Convertible Senior Notes as they were settled during the second quarter of fiscal year 2023.
17

Table of Contents
Note 11. Derivatives
Our primary objective in holding derivatives is to reduce the volatility of earnings and cash flow associated with changes in foreign currency exchange rates and interest rates. These hedging contracts reduce, but do not entirely eliminate the impact of adverse foreign exchange rate and interest rate movements. We do not use our derivative instruments for speculative trading purposes. By using derivative financial instruments to hedge exposures to changes in foreign exchange and interest rates, we are exposed to credit risk; however, we mitigate this risk by entering into hedging instruments with highly rated institutions that can be expected to fully perform under the terms of the applicable contracts.
Foreign currency exchange forward contracts
We conduct business in numerous currencies throughout our worldwide operations, and our entities hold monetary assets or liabilities, earn revenues, or incur costs in currencies other than the entity’s functional currency. As a result, we are exposed to foreign exchange gains or losses, which impacts our operating results. As part of our foreign currency risk mitigation strategy, we have entered into monthly foreign exchange forward contracts to hedge foreign currency balance sheet exposure. These forward contracts are not designated as hedging instruments. We do not hedge our foreign currency exposure in a manner that entirely offsets the effects of the changes in foreign exchange rates.
Interest rate swap
In March 2023, we entered into interest rate swap agreements to mitigate risks associated with the variable interest rate of our Term A Facility. These pay-fixed, receive-floating rate interest rate swaps have the economic effect of hedging the variability of forecasted interest payments until their maturity on March 31, 2026. Pursuant to the agreements, we have effectively converted $1 billion of our variable rate borrowings under Term A Facility to fixed rates, with $500 million at a fixed rate of 3.762% and $500 million at a fixed rate of 3.55%.
These arrangements are designated as cash flow hedges for accounting purposes and as such, we will recognize the changes in the fair value of these interest rate swaps in Accumulated other comprehensive income (loss) (AOCI), and the periodic settlements or accrued settlements of the swap will be recognized within or against interest expense in our Condensed Consolidated Statements of Operations. Cash flows related to these hedges are classified under operating activities in our Condensed Consolidated Statement of Cash Flows.
Summary of derivative instruments
The following table summarizes our outstanding derivative instruments as of September 29, 2023 and March 31, 2023:
Notional AmountFair Value of Derivative AssetsFair Value of Derivative Liabilities
(In millions)September 29, 2023March 31, 2023September 29, 2023March 31, 2023September 29, 2023March 31, 2023
Foreign exchange contracts not designated as hedging instrument (1)
$241 $291 $ $ $ $ 
Interest rate swap contracts designed as cash flow hedge1,000 1,000 24 1  2 
Total$1,241 $1,291 $24 $1 $ $2 
(1) The fair values of the foreign exchange contracts are less than $1 million as of September 29, 2023 and March 31, 2023.
The following table summarizes the effect of our cash flow hedges on AOCI during the periods indicated:
September 29, 2023
(In millions)Three Months EndedSix Months Ended
Interest rate swap contracts designed as cash flow hedge$(10)$(32)
During the three and six months ended September 30, 2022, there was no effect of our cash flow hedges on AOCI as interest rate swaps were not effective until the fourth quarter of fiscal 2023.
18

Table of Contents
The related gain (loss) recognized in our Condensed Consolidated Statements of Operations, with presentation location was as follows:
Three Months EndedSix Months EndedCondensed Consolidated Statements of Operations Classification
(In millions)September 29, 2023September 30, 2022September 29, 2023September 30, 2022
Foreign exchange contracts not designated as hedging instrument$(6)$(3)$(9)$(10)Other income (expense), net
Interest rate swap contracts designed as cash flow hedge4  7  Interest expense
Total$(2)$(3)$(2)$(10)
As of September 29, 2023, we estimate that $16 million of net deferred gains related to our interest rate hedges will be recognized in earnings over the next 12 months.
Note 12. Restructuring and Other Costs
Our restructuring and other costs consist primarily of severance and termination benefits, contract cancellation charges, asset write-offs and impairments and other exit and disposal costs. Severance costs generally include severance payments, outplacement services, health insurance coverage and legal costs. Contract cancellation charges primarily include penalties for early termination of contracts and write-offs of related prepaid assets. Other exit and disposal costs include costs to exit and consolidate facilities in connection with restructuring events. Separation costs primarily consist of consulting costs incurred in connection with our divestitures.
September 2022 Plan
In connection with our acquisition of Avast, our Board of Directors approved a restructuring plan (the September 2022 Plan) to realize cost savings and operational synergies, which became effective upon the close of acquisition on September 12, 2022. Actions under this plan include the reduction of our workforce, contract terminations, facilities closures, and the sale of underutilized facilities as well as stock-based compensation charges for accelerated equity awards to certain terminated employees. We expect that we will incur total costs up to $150 million following the completion of acquisition. These actions are expected to be completed by the end of fiscal 2024. As of September 29, 2023, we have incurred total costs of $102 million related to the September 2022 Plan.
Our activities and liabilities related to our September 2022 Plan are presented in the table below:
(in millions)Liability Balance as of March 31, 2023Costs, Net of AdjustmentsCash PaymentsNon-Cash ItemsLiability Balance as of September 29, 2023
Severance and termination benefit costs$7 $22 $(16)$(1)$12 
Contract cancellation charges 2 (2)  
Stock-based compensation charges 1  (1) 
Other exit and disposal costs 8 (8)  
Total$7 $33 $(26)$(2)$12 
The restructuring liabilities are included in Other current liabilities in our Condensed Consolidated Balance Sheets.
Restructuring and other costs summary
Our restructuring and other costs are presented in the table below:
Three Months EndedSix Months Ended
(In millions)September 29, 2023September 30, 2022September 29, 2023September 30, 2022
Severance and termination benefit costs$11 $1 $22 $1 
Contract cancellation charges1  2  
Stock-based compensation charges1  1  
Other exit and disposal costs4 8 9 10 
  Total restructuring and other costs$17 $9 $34 $11 
Occasionally, we incur costs related to past restructuring plans. These charges were immaterial for the three and six months ended September 29, 2023.
19

Table of Contents
Note 13. Income Taxes
The following table summarizes our effective tax rate for the periods presented:
Three Months EndedSix Months Ended
(In millions, except percentages)
September 29, 2023September 30, 2022September 29, 2023September 30, 2022
Income (loss) before income taxes$(141)$195 $63 $424 
Income tax expense (benefit)$(290)$126 $(275)$155 
Effective tax rate206 %65 %(437)%37 %
Our effective tax rate for the three and six months ended September 29, 2023, differs from the federal statutory income tax rate primarily due to tax benefits related to the set up and write-off of deferred tax items resulting from an internal restructuring, partially offset by state taxes, changes in unrecognized tax benefits and related interest and penalties, and the U.S. taxation on foreign earnings.
Our effective tax rate for the three and six months ended September 30, 2022, differs from the federal statutory income tax rate primarily due to state taxes and the U.S. taxation on foreign earnings, and certain items this quarter including the tax impacts of internal restructuring, deductibility of transaction costs from our acquisition with Avast, and the limitations of foreign taxes due to the increase of interest expense.
In the second quarter of fiscal 2024, as part of the Avast integration plan, which geographically realigned and simplified our business, we undertook a legal entity and operational restructuring. As part of that process, we distributed certain assets within the legal entity operating structure and as a result, we recorded a net tax benefit of $268 million. Differences between the final outcome and recorded amounts will impact the provision for income taxes in the period in which such a determination is made and could have a material impact on our Condensed Consolidated Balance Sheet and Statement of Operations in future years.
Note 14. Stockholders' Equity
Dividends
On November 7, 2023, we announced that our Board of Directors declared a cash dividend of $0.125 per share of common stock to be paid in December 2023. All shares of common stock issued and outstanding and all restricted stock units (RSUs) and performance-based restricted stock units (PRUs) as of the record date will be entitled to the dividend and dividend equivalent rights, respectively, which will be paid out if and when the underlying shares are released. However, the 4 million unvested RSUs assumed in connection with the acquisition of Avast will not be entitled to DERs. See Note 15 for further information about these equity awards. Any future dividends and DERs will be subject to the approval of our Board of Directors.
Stock repurchase program
Under our stock repurchase program, we may purchase shares of our outstanding common stock on the open market and through accelerated stock repurchase transactions. As of September 29, 2023, we had $829 million remaining under the authorization to be completed in future periods with no expiration date. No shares were repurchased during the three months ended September 29, 2023.
The following table summarizes activity related to this program during six months ended September 29, 2023 and September 30, 2022:
 
Six Months Ended
(In millions, except per share amounts)
September 29, 2023September 30, 2022
Number of shares repurchased3 17 
Average price per share$16.71 $23.60 
Aggregate purchase price$41 $404 
Accumulated other comprehensive income (loss)
Accumulated other comprehensive income (loss), net of taxes, consisted of foreign currency translation adjustments and unrealized gain (loss) on derivative instruments:
(In millions)Foreign Currency
Translation Adjustments
Unrealized Gain (Loss) On
Derivative Instruments
Total
Balance as of March 31, 2023$(15)$ $(15)
Other comprehensive income (loss), net of taxes(4)25 21 
Balance as of September 29, 2023$(19)$25 $6 
20

Table of Contents
Note 15. Stock-Based Compensation
Avast equity awards
In connection with our acquisition of Avast, we assumed the outstanding equity awards under two of Avast’s equity incentive plans (the Avast Holding B.V. 2014 Share Option Plan and the Rules of the Avast plc Long Term Incentive Plan (collectively, the Avast Plans)), which consisted of 4 million shares of unvested RSUs. The assumed RSUs generally retain the terms and conditions under which they were originally granted. We intend to grant all additional shares that remain available for issuance under the Avast Plans. Upon vesting, these assumed RSUs and any additional shares granted will settle into shares of our common stock. See Note 4 for further information about this business combination.
The following table sets forth the stock-based compensation expense recognized for our equity incentive plans:
 
Three Months EndedSix Months Ended
(In millions)
September 29, 2023September 30, 2022September 29, 2023September 30, 2022
Cost of revenues$1 $1 $2 $2 
Sales and marketing10 8 19 15 
Research and development10 6 21 12 
General and administrative13 14 29 24 
Restructuring and other costs1  1  
Total stock-based compensation expense$35 $29 $72 $53 
Income tax benefit for stock-based compensation expense$(4)$(4)$(9)$(8)
As of September 29, 2023, the total unrecognized stock-based compensation expense related to our unvested stock-based awards was $265 million, which will be recognized over an estimated weighted-average amortization period of 2.1 years.
The following table summarizes additional information related to our stock-based awards:
 Six Months Ended
(In millions, except per grant data) September 29, 2023September 30, 2022
Restricted stock units (RSUs):
Weighted-average fair value per award granted
$17.33 $23.34 
Awards granted5 6 
Total fair value of awards released$55 $50 
Outstanding and unvested10 10 
Performance-based restricted stock units (PRUs):
Weighted-average fair value per award granted$22.79 $30.47 
Awards granted2 1 
Total fair value of awards released$19 $4 
Outstanding and unvested at target payout5 4 
Dividend equivalent rights (DERs)
Our RSUs and PRUs, except the 4 million unvested RSUs assumed under the Avast Plans, contain DERs that entitles the recipient of an award to receive cash dividend payments if and when the underlying shares are released. The amount of DERs equals the amount of cumulated dividends on the issued number of common stock that would have been payable since the date the associated award was granted. As of September 29, 2023 and March 31, 2023, current dividends payable related to DER was $4 million and $5 million, respectively, recorded as part of Other current liabilities in the Condensed Consolidated Balance Sheets, and long-term dividends payable related to DER was $2 million, recorded as part of Other long-term liabilities.
21