Gen Digital (GEN) 10-K risk factor changes: FY2019 vs FY2018

The list is not [removed: exhaustive] [added: exhaustive,] and you should carefully consider these risks and uncertainties before investing in our common stock.

[removed: _A] [added: A] decrease in demand for our solutions could adversely affect our financial [removed: results._][added: results.]

We are subject to fluctuations in demand for our solutions due to a variety of factors, including market transitions, general economic conditions, competition, product obsolescence, technological change, shifts in buying patterns, the timing and duration of hardware refresh cycles, financial difficulties and budget constraints of our current and potential customers, public awareness of security threats to IT [removed: systems] [added: systems,] and other factors.

[removed: _Fluctuations] [added: Fluctuations] in our quarterly financial results have affected the trading price of our outstanding securities in the past and could affect the trading price of [added: our] outstanding securities in the [removed: future._][added: future.]

Factors associated with our industry, the operation of our business, and the markets for our solutions may cause our quarterly financial results to fluctuate, [removed: including:][added: including but not limited to:]

| [removed: |] • | [removed: |] Fluctuations in our revenue due to the transition of our sales contracts to a higher mix of products subject to ratable versus point-in-time revenue recognition; |

| [removed: |] • | [removed: |] Fluctuations in demand for our solutions; |

| [removed: |] • | [removed: |] Entry of new competition into our markets; |

| [removed: |] • | [removed: |] Competitive pricing pressure for one or more of our classes of our solutions; |

| [removed: |] • | [removed: |] Our ability to timely complete the release of new or enhanced versions of our solutions; |

| [removed: |] • | [removed: |] The timing and extent of significant restructuring charges; |

| [removed: |] • | [removed: |] The impact of acquisitions and our ability to achieve expected synergies; |

| [removed: |] • | [removed: |] Fluctuations in foreign currency exchange rates; |

| [removed: |] • | [removed: |] The number, severity, and timing of threat outbreaks (e.g. worms, viruses, malware, [removed: ransomware] [added: ransomware,] and other malicious threats) and cyber security incidents (e.g., large scale data breaches); |

| [removed: |] • | [removed: |] Our resellers making a substantial portion of their purchases near the end of each quarter; |

| [removed: |] • | [removed: |] Customers’ tendency to negotiate licenses and other agreements near the end of each quarter; |

| [removed: |] • | [removed: |] Cancellation, deferral, or limitation of orders by customers; |

| [removed: |] • | [removed: |] Changes in the mix or type of products and subscriptions [removed: sold;] [added: sold and changes in the renewal rates for our subscriptions;] |

| [removed: |] • | [removed: |] Our ability to achieve targeted operating income and [removed: margins;] [added: margins and revenues;] |

| [removed: |] • | [removed: |] Movements in interest rates; [added: and] |

| [removed: |] • | [removed: |] The rate of adoption of new [removed: technologies and] [added: technologies,] new releases of operating [removed: systems;] [added: systems, and new business processes;] |

| [removed: |] • | [removed: |] Changes in tax laws, rules, and [removed: regulations;] [added: regulations.] |

| [removed: |] • | [removed: |] Political and military instability caused by war or other events, which could slow spending within our target markets, delay sales cycles, and otherwise adversely affect our ability to generate revenues and operate effectively; |

| [removed: |] • | [removed: |] The [removed: timing of and] [added: timing,] rate and [removed: discounts at which customers] [added: pricing of customer purchases to] replace older versions of our hardware products that [removed: reach] [added: have reached] end of life; [removed: and] |

| [removed: |] • | [removed: |] Disruptions in our business operations or target markets caused by, among other things, terrorism or other intentional acts, outbreaks of disease, or earthquakes, floods, or other natural [removed: disasters.] [added: disasters;] |

[removed: _Our] [added: Our] business depends on customers renewing their arrangements for maintenance, subscriptions, managed security [removed: services] [added: services,] and cloud-based [removed: (“cloud”) offerings._][added: (cloud) offerings.]

A large portion of our [added: Enterprise Security] revenue is derived from arrangements for maintenance, subscriptions, managed security [removed: services] [added: services,] and cloud offerings, yet customers have no contractual obligation to purchase additional solutions after the initial subscription or contract period.

[removed: Our] [added: While we believe our] customers’ renewal rates, [removed: and our] [added: in general, have been relatively stable in recent periods,] customer [removed: retention,] [added: retention and renewal rates] may decline or fluctuate as a result of a number of factors, including [removed: their] [added: our customers’] level of satisfaction with our solutions or our customer support, customer [removed: budgets] [added: budgets,] and the pricing of our solutions compared with the solutions offered by our competitors, any of which may cause our revenue to grow more slowly than expected, or to decline.

If these efforts fail, [removed: or] if our customers do not renew for other reasons, or if [removed: they] [added: our customers] renew on terms less favorable to us, our revenue may [removed: decline] [added: decline,] and our business will suffer.

[removed: _Matters] [added: Matters] relating to or arising from our [added: completed] Audit Committee [removed: investigation,] [added: Investigation,] including regulatory investigations and proceedings, litigation [removed: matters] [added: matters,] and potential additional expenses, may adversely affect our business and results of [removed: operations._][added: operations.]

As previously disclosed in our public filings, the Audit Committee [removed: of our Board of Directors (the “Audit Committee”) has recently] completed [removed: an] [added: its] internal investigation [removed: (the “Audit Committee Investigation”).][added: in September 2018.]

In connection with the Audit Committee Investigation, we voluntarily contacted the [removed: SEC in May 2018.][added: SEC.]

The SEC commenced a formal [removed: investigation] [added: investigation,] and we continue to cooperate with that investigation.

[removed: Furthermore, if] [added: If] the SEC commences legal action, we could be required to pay significant penalties and become subject to injunctions, a cease and desist [removed: order] [added: order,] and other equitable remedies.

We have incurred, and [removed: may] [added: will] continue to incur, significant expenses related to [removed: legal, accounting,] [added: legal] and other professional services in connection with the [removed: internal investigation] [added: ongoing SEC investigation, which may continue to adversely affect our business] and [removed: related legal matters.][added: financial condition.]

In addition, securities class actions and other lawsuits have been filed against us, our [removed: directors] [added: directors,] and officers (see also, “We are subject to pending securities class action and stockholder derivative legal [removed: proceedings” below).][added: proceedings .]

Any future investigations or additional lawsuits may [added: also] adversely affect our business, financial condition, results of [removed: operations] [added: operations,] and cash flows.

[removed: _We] [added: We] are subject to pending securities class action and stockholder derivative legal proceedings that may adversely affect our [removed: business._][added: business.]

In addition, we have received [removed: certain] demands from purported stockholders to inspect corporate books and records under Delaware law.

Further, the amount of time that will be required to resolve these lawsuits is [removed: unpredictable] [added: unpredictable,] and these actions may divert management’s attention from the day-to-day operations of our business, which could further adversely affect our business, results of [removed: operations] [added: operations,] and cash flows.

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| • | Loss of customers or strategic partners; |

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| • | Consumer confidence and spending changes, which could be impacted by market changes and general economic conditions, among other reasons; |

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| • | The impact of litigation, regulatory inquiries, or investigations; |

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| | • | | The timing of satisfying revenue recognition criteria, particularly with regard to our enterprise sales transactions, as a result of our adoption of new revenue recognition accounting standards under ASC 606 on March 31, 2018; |

##### [Table of Contents](#toc)

| | • | | Weakness or uncertainty in general economic or industry conditions in any of the multiple markets in which we operate that could reduce customer demand and ability to pay for our solutions; |

The completion of the Audit Committee investigation and filing of delinquent periodic reports will not automatically resolve the SEC investigation.

These expenses, the delay in timely filing our periodic reports, and the diversion of the attention of the management team that has occurred, and is expected to continue, has adversely affected, and could continue to adversely affect, our business and financial condition.

As a result of the matters reported above, we are exposed to greater risks associated with litigation, regulatory proceedings and government enforcement actions.

Several securities class action and derivative lawsuits were filed against us following our announcement on May 10, 2018 of the Audit Committee Investigation, including an action brought derivatively on behalf of Symantec’s 2008 Employee Stock Purchase Plan.

_We have not been in compliance with Nasdaq’s requirements for continued listing and as a result our common stock may be delisted from trading on Nasdaq, which would have a material effect on us and our stockholders._

We were delinquent in the filing of our periodic reports with the SEC and have delayed convening our 2018 Annual Meeting of Stockholders (the “Annual Meeting”), as a result of which we are not in compliance with listing requirements of The Nasdaq Stock Market LLC (“Nasdaq”) Listing Rule 5250(c)(1), which requires timely filing of periodic financial reports with the SEC.

Under Nasdaq’s listing rules, we were permitted to submit to Nasdaq a plan to regain compliance with the Nasdaq listing rules.

We previously submitted such a plan to the Nasdaq Staff, and Nasdaq has granted us until November 26, 2018 to regain compliance.

We expect to file our delinquent Quarterly Reports as promptly as practicable following this Annual Report filing, however there can be no guarantee that we will be able to file by November 26, 2018, in which case our common stock may again be subject to delisting by Nasdaq.

If our common stock is delisted, there can no assurance whether or when it would

again be listed for trading on Nasdaq or any other exchange.

If our common stock is delisted, the market price of our shares will likely decline and become more volatile, and our stockholders may find that their ability to trade in our stock will be adversely affected.

Furthermore, institutions whose charters do not allow them to hold securities in unlisted companies might sell our shares, which could have a further adverse effect on the price of our stock.

From time to time, key personnel leave our company.

These risks may be exacerbated by the uncertainty associated with the acquisitions, divestitures and transitions we have experienced over the last few years.

and operating results.

These costs may

pricing strategy or provide guarantees of prices.

delays, or cessation of our licensing, which could cause us to lose existing or potential customers and could adversely affect our operating results.

continuity events that could have a significant disruptive effect on our operations.

For example, in January 2016 we completed the sale of Veritas, and in October 2017 we divested our WSS and PKI solutions.

_Direct Sales_.

Moreover, LifeLock entered into consent decrees and similar arrangements with the Federal Trade

_If we fail to accurately predict our manufacturing requirements and manage our supply chain we could incur additional costs or experience manufacturing delays that could harm our business._

We generally provide forecasts of our requirements to our supply chain partners on a rolling basis.

If our forecast exceeds our actual requirements, a supply chain partner may assess additional charges or we may have liability for excess inventory, each of which could negatively affect our gross margin.

If our forecast is less than our actual requirements, the applicable supply chain partner may have insufficient time or components to produce or fulfill our product requirements, which could delay or interrupt manufacturing of our products or fulfillment of orders for our products, and result in delays in shipments, customer dissatisfaction, and deferral or loss of revenue.

Further, we may be required to purchase sufficient inventory to satisfy our future needs in situations where a component or product is being discontinued.

If we fail to accurately predict our requirements, we may be unable to fulfill those orders or we may be required to record charges for excess inventory.

Any of the foregoing could adversely affect our business, financial condition or results of operations.

_We are dependent on original design manufacturers, contract manufacturers and third-party logistics providers to design and manufacture our hardware-based products and to fulfill orders for our hardware-based products._

We depend primarily on original design manufacturers (each of which is a third-party original design manufacturer for numerous companies) to co-design and co-develop the hardware platforms for our products.

We also depend on independent contract manufacturers (each of which is a third-party contract manufacturer for numerous companies) to manufacture and fulfill our hardware-based products.

These supply chain partners are not committed to design or manufacture our products, or to fulfill orders for our products, on a long-term basis in any specific quantity or at any specific price.

In addition, certain of our products or key components of our products are currently manufactured by a single third-party supplier.

There are alternative suppliers that could provide components, as our agreements do not provide for exclusivity or minimum purchase quantities, but the transition and qualification from one supplier to another could be lengthy, costly and difficult.

[removed: OVERVIEW][added: OVERVIEW]

[removed: Fiscal] [added: Fiscal] calendar and basis of [removed: presentation][added: presentation]

[removed: Unless otherwise stated, references to years] [added: Fiscal 2019, 2018, and 2017] in this report [removed: relate] [added: refers] to fiscal year ended March [added: 29, 2019, March] 30, 2018, [added: and] March 31, [removed: 2017 and April 1, 2016,] [added: 2017, respectively,] each of which was a 52-week year.

[removed: Key] [added: Key] financial [removed: metrics][added: metrics]

The following table provides our key financial metrics for [removed: continuing operations for] fiscal [removed: 2018] [added: 2019] compared with fiscal [removed: 2017:][added: 2018:]

| [removed: (In] [added: (In] millions, except for percentages and per share [removed: amounts) |] [added: amounts)] | [removed: Fiscal 2018] [added: Fiscal 2018] | | | | [removed: Fiscal 2017] [added: Fiscal 2017] | | |

| Net revenues | [removed: |] $ | 4,834 | | | $ | 4,019 | |

| Operating income (loss) | [removed: |] $ | 49 | | | $ | (100 | ) |

| Income (loss) from continuing operations | [removed: |] $ | 1,127 | | | $ | (236 | ) |

| Income (loss) per share from continuing operations [removed: —] [added: -] diluted | [removed: |] $ | 1.69 | | | $ | (0.38 | ) |

| Cash, cash [removed: equivalent] [added: equivalents] and short-term investments | [removed: |] $ | 2,162 | | | $ | 4,256 | |

| Net cash provided by (used in) continuing operating activities | [removed: |] $ | 957 | | | $ | (145 | ) |

| Deferred revenue | [removed: |] $ | 3,103 | | | $ | 2,787 | |

| [removed: |] • | [removed: |] Net revenues grew 20% in fiscal 2018 compared to fiscal 2017 primarily as a result of the inclusion of revenue from our [removed: consumer] [added: Consumer Cyber Safety segment] identity and information protection products acquired [added: through our LifeLock acquisition] at the end of fiscal 2017 for a full year and increased revenues from sales of our [removed: enterprise] [added: Enterprise Security segment] network and web security solutions which included products acquired in our fiscal 2017 [removed: acquisition,] [added: acquisition of Blue Coat,] partially offset by a decrease in revenue as a result of the divestiture of our [added: Enterprise Security segment] WSS and PKI solutions. [removed: See Note 14 to the Consolidated Financial Statements for further information on our products and services revenues.] |

| [removed: |] • | [removed: |] Operating income increased primarily as a result of increased net revenues and our cost reduction initiatives and integration synergy program we announced in fiscal 2017. This increase was partially offset by increased operating expenses as a result of [removed: acquisitions of Blue Coat and LifeLock,] [added: our fiscal 2017 acquisitions,] including stock-based compensation, amortization of intangible assets, and advertising and promotional expenses. The increase in operating income was also partially offset by increased transition costs primarily due to costs related to our enterprise resource planning and supporting systems and separation costs related to the divestiture of our WSS and PKI solutions. |

| [removed: |] • | [removed: |] Income from continuing operations and diluted income per share from continuing operations increased primarily as a result of the $653 million gain on the divestiture of our WSS and PKI solutions and a net tax benefit of $690 million primarily as a result of the [added: 2017] Tax [removed: Cuts and Jobs Act (H.R.1) (the “Act”).] [added: Act.] Partially offsetting the increase in the diluted income per share from continuing operations was a higher diluted share count due to including the dilutive effect of potentially issuable common shares under our equity award programs and convertible debt. Such potentially issuable common shares were excluded from our net loss per share computation in fiscal 2017 as they would have been anti-dilutive. |

| [removed: |] • | [removed: |] Cash, cash equivalents and short-term investments decreased primarily as a result of our $3.2 billion of debt repayments as part of our plan to deleverage our balance sheet and $401 million paid for acquisitions, partially offset by $933 million in net cash proceeds from the divestiture of our WSS and PKI solutions and cash flow from continuing operating activities of $957 million. |

| [removed: |] • | [removed: |] Cash flow from continuing operating activities increased primarily due to a one-time tax payment of $887 million related to the gain on sale from the divestiture of our [added: Veritas] information management business [removed: (“Veritas”)] in fiscal 2017 and an increase in deferred revenue. |

| [removed: |] • | [removed: |] Deferred revenue increased $316 [removed: million,] [added: million] primarily due to our shift in sales contracts to a higher mix of solutions subject to ratable versus point in time revenue recognition and longer contract duration in our Enterprise Security segment, which resulted in less in-period revenue recognized, and due to higher billings towards the end of the fiscal year, reflecting seasonal sales cycles in that segment. These factors were partially offset by a decrease of $319 million in deferred revenue as a result of the divestiture of our WSS and PKI solutions. |

[removed: CRITICAL] [added: CRITICAL] ACCOUNTING POLICIES AND [removed: ESTIMATES][added: ESTIMATES]

The preparation of our Consolidated Financial Statements and related notes in accordance with generally accepted accounting principles in the U.S. [removed: (“GAAP”)] [added: (GAAP)] requires us to make estimates, including judgments and assumptions that affect the reported amounts of assets, liabilities, [removed: revenue,] [added: revenue] and expenses, and related disclosure of contingent assets and liabilities.

Management believes that the accounting estimates [removed: employed] [added: employed,] and the resulting amounts are reasonable; however, actual results may differ from these estimates.

Should any of these estimates and assumptions change or prove to have been incorrect, it could have a material impact on our results of operations, financial [removed: position] [added: position,] and cash flows.

[removed: Revenue recognition][added: Revenue recognition]

We recognize revenue primarily pursuant to the requirements under the authoritative guidance on [removed: software revenue recognition, and any applicable amendments or modifications.][added: contracts with customers.]

Revenue recognition requirements [removed: in the software industry] are very complex and require us to make estimates and assumptions.

[removed: Valuation] [added: Valuation] of goodwill, intangible [removed: assets] [added: assets,] and long-lived [removed: assets][added: assets]

[removed: _Business combinations._] We allocate the purchase price of acquired businesses to the tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values on the acquisition date.

Critical estimates in valuing intangible assets include, but are not limited to, future expected cash flows from customer relationships, developed technology, trade [removed: names] [added: names,] and acquired patents; and discount rates.

Unanticipated events and circumstances may occur which may affect the accuracy or validity of such assumptions, [removed: estimates] [added: estimates,] or actual results.

[removed: Income taxes][added: Income taxes]

If we determine that the tax position will more likely than not be sustained on audit, the second step requires us to estimate and measure the tax benefit as the largest [added: amount that is more than 50% likely to be realized upon ultimate settlement.]

[removed: Stock-based compensation][added: Stock-based compensation]

We recognize stock-based compensation cost over the award’s requisite service period on a straight-line basis except for performance-based restricted stock units [removed: (“PRUs”)] [added: (PRUs)] with graded vesting which we recognize on a graded basis.

The fair value of each restricted stock unit [removed: (“RSU”)] [added: (RSU)] and PRU that does not contain a market condition is equal to the market value of our common stock on the date of grant.

We use the Black-Scholes model to determine the fair value of unvested stock options assumed in [removed: acquisitions and the fair value of rights to acquire shares of common stock under our employee stock purchase plan (“ESPP”).][added: acquisitions.]

The options assumed are without dividend [removed: equivalents] [added: equivalents,] and their fair values are discounted by our dividend yield.

[removed: Loss contingencies][added: Loss contingencies]

We review the status of each significant matter [removed: quarterly] [added: quarterly,] and we may revise our estimates.

[removed: RESULTS] [added: RESULTS] OF [removed: OPERATIONS][added: OPERATIONS]

Symantec Corporation is a global leader in cyber security.

We provide cyber security products, services, and solutions to organizations and individuals worldwide.

Founded in 1982, we have operations in more than 45 countries.

Our segments consist of:

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| • | Enterprise Security. Our Enterprise Security segment focuses 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. |

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| • | Consumer Cyber Safety. Our Consumer Cyber Safety segment focuses on providing cyber safety solutions under our Norton LifeLock brand to help consumers protect their devices, online privacy, identities, and home networks. |

For additional information about our offerings, see the discussion in Item 1.

Business, under the heading “Products and Services.”

Our financial results for fiscal 2019 are presented in accordance with the new revenue standard that was adopted under the modified retrospective method at the beginning of fiscal 2019.

Prior period results have not been restated.

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| (In millions, except for percentages and per share amounts) | Fiscal 2019 | | | | Fiscal 2018 | | |

| Operating income | $ | 380 | | | $ | 49 | |

| Net income | $ | 31 | | | $ | 1,138 | |

| Net income per share - diluted | $ | 0.05 | | | $ | 1.70 | |

| Net cash provided by operating activities | $ | 1,495 | | | $ | 950 | |

| | | | | | | | |

| | As of | | | | | | |

| | March 29, 2019 | | | | March 30, 2018 | | |

| Cash, cash equivalents and short-term investments | $ | 2,043 | | | $ | 2,162 | |

| Contract liabilities | $ | 3,056 | | | $ | 3,103 | |

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| • | Net revenues decreased 2% primarily due to the divestiture of our website security (WSS) and public key infrastructure (PKI) solutions in fiscal 2018, partially offset by increased revenue from our identity and information protection solutions. |

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| • | Operating income increased $331 million primarily due to increased revenue from our identity and information protection solutions in our Consumer Cyber Safety segment, lower stock-based compensation expense, and lower restructuring, transition, and other costs, partially offset by the negative impact to Enterprise Security segment operating income due to the fiscal 2018 divestiture of WSS and PKI solutions. |

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| • | Net income and diluted net income per share decreased primarily due to the absence in fiscal 2019 of the gain on the divestiture of WSS and PKI solutions and a net income tax benefit as a result of the passage of the 2017 Tax Act, both of which occurred during fiscal 2018. |

| | |

| • | Net cash provided by operating activities increased $545 million due to higher net income adjusted for non-cash items, partially offset by unfavorable net changes in operating assets and liabilities. |

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| --- | --- |

| • | Cash, cash equivalents and short-term investments decreased $119 million compared to March 30, 2018, primarily due to cash used for repayment of debt, stock repurchases, and payments of dividends, partially offset by cash from operations. |

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| • | Contract liabilities decreased $47 million compared to March 30, 2018, primarily due to a decrease of $169 million in the March 30, 2018 balances as a result of the adoption of the new revenue recognition standard, partially offset by higher billings versus recognized revenue during fiscal 2019. |

We enter into arrangements with multiple performance obligations, which may include hardware, software licenses, cloud services, support and maintenance, and professional services.

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We enter into arrangements that can include various combinations of software and non-software elements.

Where elements are delivered over different periods of time, and when allowed under GAAP, revenue is allocated to the respective elements based on their relative selling prices at the inception of the arrangement, and revenue is recognized as each element is delivered.

We use a hierarchy to determine the fair value to be used for allocating revenue to non-software elements: (i) vendor-specific objective evidence of fair value (“VSOE”), (ii) third-party evidence, and (iii) estimated selling price (“ESP”).

For software elements, we follow the industry-specific software guidance which only allows for the use of VSOE in establishing fair value.

VSOE of each element is based on the price for which the undelivered element is sold separately by us.

We determine fair value of the undelivered elements based on historical evidence of our stand-alone sales of these elements to third parties or from the stated renewal rate for the undelivered elements.

When VSOE does not exist for serial undelivered items, the entire arrangement fee is recognized ratably over the performance period.

When VSOE does not exist for a discrete undelivered item, consideration for the entire arrangement is deferred until that item is delivered.

Our deferred revenue consists primarily of the unamortized balance of enterprise product maintenance, consumer product content updates, managed security services, subscriptions, and arrangements where VSOE does not exist.

Changes to the elements in a software arrangement, the ability to identify VSOE for those elements, the fair value of the respective elements, and increasing flexibility in contractual arrangements could materially impact the amount recognized in the current period and deferred over time.

ESPs for non-software elements are established as best estimates of what the selling prices would be if the deliverables were sold regularly on a stand-alone basis.

Our process for determining ESPs requires judgment and considers multiple factors that may vary over time depending upon the unique facts and circumstances related to each deliverable.

amount that is more than 50% likely to be realized upon ultimate settlement.

As of March 30, 2018, we have not completed our accounting for the tax effects of enactment of the Act; however, in certain cases, as described below, we have made a reasonable estimate of the effects on our existing deferred tax balances and the one-time transition tax.

These amounts may require further adjustments as a result of additional future guidance from the U.S. Department of the Treasury, changes in our assumptions, and the availability of further information and interpretations.

In other cases, we have not been able to make a reasonable estimate and we continue to account for those items based on our existing accounting policies and the provisions of the tax laws that were in effect immediately prior to enactment.

For the items for which we were able to determine a reasonable estimate, we recognized a provisional tax benefit of $659 million, which is included as a component of income tax expense from continuing operations.

This includes an income tax benefit of $1.6 billion resulting from the application of the Act to existing deferred tax balances, including a reduction of the previously accrued deferred tax liability for foreign earnings by $1.4 billion.

This was partially offset by $893 million of tax expense that was recorded for the one-time transition tax liability under the Act.

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The increase in revenue from our Consumer Digital Safety segment was primarily a result of the inclusion of revenue from our identity and information protection products acquired at the end of fiscal 2017 for a full year.

_Fiscal 2017 compared to fiscal 2016_

Net revenues increased $419 million, primarily due to an increase of $425 million in revenue from our Enterprise Security segment as a result of the acquisition of Blue Coat during the second quarter of fiscal 2017.

Our percentage of revenue from the Americas increased, primarily as a result of the inclusion of revenue from our identity and information protection products acquired at the end of fiscal 2017 for a full year as sales of these products are generated entirely in the United States.

The geographical distribution of our revenue was relatively consistent in fiscal 2017 compared to fiscal 2016.

Our cost of revenues increased $179 million primarily due to an increase related to our network and web security solutions and consumer identity and information protection products that were acquired in fiscal 2017, including $88 million of increased amortization of acquired intangible assets and $60 million of increased technical support costs primarily driven by the consumer identity and information protection products, and an increase of $30 million in royalty fees.

Our cost of revenues increased $238 million primarily due to $122 million of increased amortization of acquired intangible assets and increased other costs related to sales of our network and web security solutions and consumer identity and information protection products that were acquired in fiscal 2017, including an acquired product inventory fair value write-up of $24 million.

These increases in cost of revenues were partially offset by decreased costs related to Veritas of $22 million.

| Total | | $ | 3,753 | | | $ | 3,266 | | | $ | 2,528 | | | | 15 | % | | | 29 | % |

Sales and marketing expense increased $134 million primarily due to increases of $148 million in advertising and promotional expense, largely related to promotion of our identity and information protection products, and $58 million in stock-based compensation expense.

General and administrative expense increased $10 million primarily due to a $35 million increase in salary and benefits expense as a result of higher headcount, a $15 million increase in stock-based compensation expense and increased cybersecurity and compliance costs, partially offset by a decrease of $41 million in acquisition-related and integration expenses due to a lower level of acquisition activities in fiscal 2018.

Stock-based compensation expense reported in operating expenses increased $163 million to $582 million in fiscal 2018 from $419 million in fiscal 2017, primarily due to the equity awards granted in connection with our fiscal 2018 and 2017 acquisitions.

Amortization of intangible assets increased $73 million primarily due to the intangible assets acquired in our fiscal 2017 acquisitions.

[removed: Interest] [added: Interest] rate [removed: risk][added: risk]

As of March [removed: 30, 2018,] [added: 29, 2019,] the fair value of our short-term investments was [removed: $388] [added: $252] million.

As of March [removed: 30, 2018,] [added: 29, 2019,] we had $4.0 billion in aggregate principal amount of fixed-rate Senior Notes and Convertible Senior Notes outstanding, with a carrying amount and a fair value of [removed: $3.9] [added: $4.0] billion, based on Level 2 inputs.

As of March [removed: 30, 2018,] [added: 29, 2019,] we also had [removed: $1.1 billion] [added: $500 million] outstanding debt with variable interest rates based on the London InterBank Offered Rate [removed: (“LIBOR”).][added: (LIBOR).]

[removed: Foreign] [added: Foreign] currency exchange rate [removed: risk][added: risk]

[removed: To the extent] [added: We conduct business in numerous currencies through] our [added: worldwide operations, and our] entities hold monetary assets or liabilities, earn [removed: revenues] [added: revenues,] or incur costs in currencies other than the entity’s functional [removed: currency, they are exposed to foreign exchange gains or losses] [added: currency primarily in Euro, Japanese Yen,] and [removed: impacts to operating results as a result.][added: British Pound.]

A hypothetical ten percent depreciation of foreign currency would result in a reduction in fair value of [removed: $55 million and $29] [added: our forward contracts of $84] million for fiscal [removed: 2018 and fiscal 2017, respectively.][added: 2019.]

In addition, we charge our international subsidiaries for their use of intellectual property and technology and for certain corporate services we provide.

Our cash flow, results of operations and certain of our intercompany balances that are exposed to foreign exchange rate fluctuations may differ materially from expectations, and we may record significant gains or losses due to foreign currency fluctuations and related hedging activities.

As a result, we are exposed to foreign exchange gains or losses which impacts our operating results.

We have a foreign exchange exposure management program designed to identify material foreign currency exposures, manage these exposures, and reduce the potential effects of currency fluctuations on our reported consolidated cash flows and results of operations through which we enter into foreign exchange forward contracts on our assets and liabilities denominated in currencies other than the functional currency of our subsidiaries with up to twelve months in duration.

We do not use derivative financial instruments for speculative trading purposes, nor do we hedge our foreign currency exposure in a manner that entirely offsets the effects of the changes in foreign exchange rates.

The gains and losses on these foreign exchange contracts are recorded in interest and other, net in our statement of operations.

As of March 29, 2019, we had open foreign currency forward contracts with notional amounts of $1.1 billion to hedge foreign currency balance sheet exposure, with an insignificant fair value.

In addition, to help protect the net investment in a foreign operation from adverse changes in foreign currency exchange rates, during fiscal 2019, we initiated a program under which we may enter into foreign currency forward and option contracts to offset the changes in the carrying amounts of these investments due to fluctuations in foreign currency exchange rates.

As of March 29, 2019, the notional amount of the related outstanding forward contracts was $116 million, and their fair value was not significant.

These contracts reduce, but do not entirely eliminate, the impact of currency exchange rate movements on investments in foreign operations.

The foreign currency gains and losses on these contracts are recorded in other comprehensive income.

For additional details related to our derivative instruments, please see “Note 9 - Derivatives” to our Consolidated Financial Statements included in this report.

##### [Table of Contents](#toc)

We conduct business in numerous currencies through our worldwide operations and, as such, we are exposed to foreign currency risk.

Our entities conduct their businesses in the primary local currency in which they operate; however, they may also conduct business in other currencies.

As part of our foreign currency risk mitigation strategy, we have entered into foreign exchange forward contracts with up to six months in duration to help mitigate foreign exchange risk; however, we are not able to hedge our foreign currency exposure in a manner that entirely offsets the effects of the changes in foreign exchange rates.

We have considered historical trends in exchange rates and determined that it is possible that adverse changes in exchange rates for any currency could occur.

As of March 30, 2018 and March 31, 2017, we had open foreign currency forward contracts with notional amounts of $848 million and $696 million, respectively.

[removed: Overview][added: Overview]

We provide cyber security products, [removed: services] [added: services,] and solutions to more than 350,000 organizations and 50 million individuals worldwide.

Our Integrated Cyber Defense Platform helps [removed: enterprise,] business and government customers unify cloud and on-premises security to [removed: protect against threats and safeguard information across every control point] [added: deliver a more effective cyber defense solution, while driving down cost] and [removed: attack vector.][added: complexity.]

Our Cyber Safety solutions [removed: (delivered through the] [added: from] Norton [removed: and] LifeLock [removed: offerings)] help consumers protect their [removed: information,] [added: devices, online privacy,] identities, [removed: devices] and [removed: networks at] home [removed: and online.][added: networks.]

Our business and consumer offerings are powered by the largest civilian threat intelligence network, which uses [added: artificial intelligence,] machine [removed: learning] [added: learning,] and human intelligence to analyze trillions of rows of data every day across hundreds of millions of devices to discover and help prevent advanced threats that might otherwise go undetected.

[removed: Fiscal 2018] [added: Fiscal 2019] Business [removed: Highlights][added: Highlights]

During fiscal [removed: 2018,] [added: 2019,] we continued to make progress enhancing and expanding our product and services portfolio and improving product integration, partner [removed: integration] [added: integration,] and sales delivery to help [removed: business] [added: enterprise] customers deploy our Integrated Cyber Defense Platform.

We also made progress driving [removed: revenue growth and] market adoption [removed: for] [added: and increasing customer retention of] our Consumer [removed: Digital] [added: Cyber] Safety [added: (previously called Consumer Digital Safety)] solutions, building on our Norton [removed: and] LifeLock product portfolio.

In addition, we implemented operational improvements to reduce costs and complexity, building on the business transformation programs we [removed: initiated] [added: completed] in fiscal [removed: 2017,] [added: 2019,] and leveraged synergies from the successful integration of our acquired businesses.

| [removed: |] • | [removed: |] Our [removed: enterprise] product [added: development] teams built extensive point-to-point integrations across endpoint, network, [removed: cloud] [added: cloud,] and email security products, responding to customer demand to consolidate vendors and enhance their security posture across control points. |

| [removed: |] • | [removed: |] We further extended our Integrated Cyber Defense [removed: platform] [added: (ICD) Platform] through application programming interfaces (APIs) and engineering-level integration with more than [removed: 100] [added: 120] certified technology [removed: partners. Their] [added: partners that have developed or are in the process of developing over 250 integrations of] complementary products and services [added: to] expand our ecosystem, helping businesses implement a coordinated and robust approach to threat protection, [removed: detection] [added: detection,] and [removed: response.] [added: response that improves security outcomes and drives down cost and complexity.] |

| [removed: |] • | [removed: |] We [removed: began offering consumers] [added: expanded the marketing of] bundled [added: offerings of cyber safety] services [added: for consumers through the integration] of our Norton-branded security services with LifeLock-branded identity theft protection services, [removed: allowing] [added: to help] individuals and families [removed: to help defend against increasingly complex online threats.] [added: combat ever-evolving cyberthreats.] Bundling these solutions [removed: enabled] [added: enables] us to combine our Norton and LifeLock demand generation and customer relationship management programs to drive new customer acquisition, improve [removed: retention] [added: retention,] and cross-sell within our large installed base. |

| [removed: |] • | [removed: |] We launched significant new products to advance our portfolio and competitive position: |

[removed: Business Strategy][added: Business Strategy]

Our strategy is to combine best-of-breed technology with unmatched scale to deliver [added: a] comprehensive cyber security [removed: platforms] [added: set of solutions] for [removed: enterprise,] business and government customers, as well as consumers.

Our Enterprise Security strategy is to leverage our [removed: product portfolio,] [added: ICD Platform,] partner ecosystem and global threat intelligence network to deliver Integrated Cyber Defense to [removed: enterprise,] business and government [removed: customers.][added: customers, helping them improve security while reducing cost and complexity.]

Our Consumer [removed: Digital] [added: Cyber] Safety strategy is to combine and leverage our portfolio of Norton and LifeLock [removed: brands, products, and services] [added: offerings] to deliver a [removed: comprehensive] set of Cyber Safety solutions that [removed: addresses] [added: address] today’s continually evolving and increasingly complex threat landscape.

This threat landscape puts consumers at increased risk of having their security, [added: online] privacy, and identities compromised.

As [added: the] risks [added: to consumers] shift from PC-based attacks to more sophisticated threats [removed: (ransomware,] [added: such as ransomware,] identity theft, [removed: Internet of Things (“IoT”) risks),] [added: and privacy risks,] our software and services provide a multi-layered approach to protect [removed: consumers everywhere,] [added: consumers,] regardless of device, [removed: network] [added: network,] or location.

[removed: Products] [added: Products] and [removed: Services][added: Services]

[removed: _Enterprise] [added: Enterprise] Security Portfolio: Integrated Cyber [removed: Defense_][added: Defense]

Our Enterprise Security portfolio includes a deep and broad mix of products, [removed: services] [added: services,] and solutions, delivered as part of [removed: an Integrated Cyber Defense platform.][added: our ICD Platform.]

Our platform unifies cloud and on-premises security to provide advanced threat protection and information protection across [removed: all] endpoints, networks, email, and cloud applications.

Key components of [removed: the platform] [added: our ICD Platform] include:

| [removed: |] • | [removed: | Advanced] [added: Advanced] Threat [removed: Protection:] [added: Protection:] Multiple layers of threat prevention, [removed: detection] [added: detection,] and forensic technology provide a robust view of malicious activities across control points, enabling users to contain, [removed: investigate] [added: investigate,] and remediate threats. |

| [removed: |] • | [removed: | Information Protection:] [added: Information Protection:] Encryption, data loss prevention, multi-factor authentication, tagging, and analytics enable businesses and governments to protect confidential information and IT assets while managing compliance requirements and restricting access to authenticated users. |

| [removed: |] • | [removed: | Control Points] [added: Control Points] |

| [removed: |] • | [removed: | Endpoint Security:] [added: Endpoint Security:] A single agent architecture delivers multi-layered security across [removed: all possible] endpoints - desktop, server, mobile, and IoT - and enables customers to protect enterprise and mobile [removed: workforces] [added: workforces,] regardless of operating system, [removed: device] [added: device,] or network security approaches. |

| [removed: |] • | [removed: | Network Security:] [added: Network Security:] Cloud and on-premises network security solutions, based on an advanced proxy architecture, provide superior defense against advanced threats, enable users to protect critical business information, and help ensure secure and compliant use of cloud applications and the web. |

| [removed: |] • | [removed: | Email Security:] [added: Email Security:] Multiple layers of protection (including threat isolation and advanced analytics) against ransomware, spear [removed: phishing] [added: phishing,] and enterprise email compromise help identify targeted [removed: attacks,] [added: attacks] and enable users to protect email against user error and data leakage. |

| [removed: |] • | [removed: | Cloud Security:] [added: Cloud Application Security:] Advanced solutions that secure cloud access, cloud [removed: infrastructure] [added: infrastructure,] and cloud applications, [removed: and provide] [added: providing] in-depth visibility, data security, and threat protection to safeguard users, [removed: information] [added: information,] and workloads across public and private clouds. |

| [removed: |] • | [removed: | Open Ecosystem: A rich] [added: An expansive] set of open APIs [removed: (Application Programming Interfaces)] with over 100 certified technology partners creating the broadest ecosystem in cyber security, enabling a coordinated and [removed: robust] [added: best-in-class] approach to threat protection, [removed: detection] [added: detection,] and response. |

| [removed: |] • | [removed: | Consulting Services:] [added: Consulting Services:] We provide the experience, expertise, and industry intelligence to assist enterprises to better architect, design, implement, and optimize their security software, [removed: people] [added: people,] and processes. Symantec consultants guide enterprises toward solutions that meet their business goals and leave them with the knowledge to maintain and enhance their security environment. |

| [removed: |] • | [removed: | Premium] [added: Premium] Support [removed: Services:] [added: Services:] Our premium support services for enterprises focus on timely and accurate issue resolution by placing a product family expert at the center of a tailored support experience, who provides technical support, manages escalations, delivers case and system reviews, oversees environmental health checks, and provides proactive services [removed: like] [added: such as] upgrade planning and feature optimization. |

| [removed: |] • | [removed: | Cyber] [added: Cyber] Security [removed: Services:] [added: Services:] We provide continual threat monitoring, customized guidance, and 24x7 personalized service within an enterprise’s security environment through our Managed Security Services, [removed: DeepSight] [added: Deep Sight] Intelligence, and Incident Response Services. |

[removed: _Consumer Digital] [added: Consumer Cyber] Safety [removed: Portfolio_][added: Portfolio]

| [removed: |] • | [removed: | Norton Security:] [added: Norton Security:] Our Norton Security solutions are available as a subscription service providing protection for devices against malware, viruses, adware, and ransomware on multiple platforms: Windows, Mac, [removed: Android] [added: Android,] and iOS. Users also have access to a password manager, parental controls, and safe web browsing that blocks malicious sites and filters browser search results. Users also can perform secure cloud backups of photos, financial [removed: files] [added: files,] and other important documents on Windows, providing additional protection in the event ransomware attacks make these files unavailable. For mobile devices, Norton Security also filters risky apps, enables stolen device recovery, provides contact recovery, and blocks unwanted spam texts and calls. Norton Security includes 24x7 support by trained support agents who [removed: work] [added: are available] to [removed: remediate any problems.] [added: assist customers.] |

| [removed: |] • | [removed: | LifeLock] [added: LifeLock] Identity Theft [removed: Protection:] [added: Protection:] Our LifeLock identity theft protection solution provides identity monitoring, alerts, and restoration to our customers. LifeLock puts users in control of their identity elements, including social security numbers, bank accounts, email addresses, physical addresses, [added: and] driver’s license and phone numbers. The service alerts users on key events and recommends actions to prevent unauthorized access. If an identity theft takes place, LifeLock’s identity experts work with the user to restore their identities, managing interaction with various governmental agencies, financial [removed: institutions] [added: institutions,] and merchants - and addressing legal fees, wage [removed: loss] [added: loss,] and associated damages. |

| [removed: |] • | [removed: | Norton] [added: Norton] Wi-Fi [removed: Privacy:] [added: Privacy VPN:] Our Norton Wi-Fi Privacy [added: VPN] service offers a protected way to connect to the Internet, encrypting data users send over [removed: Internet] [added: internet] connections and enhancing levels of privacy online. With this service, users can confidently [removed: send] [added: access] private information [removed: like] [added: such as] passwords, bank details, and credit card numbers when using public Wi-Fi on PC, [removed: Mac] [added: Mac,] or mobile device without risk of compromise. Users can also [removed: access] [added: connect] globally to their favorite [added: apps, websites, and online streaming by changing their virtual location. This service also limits the ability of websites to track users, thereby eliminating persistent personalized ads based on browsing history.] |

[removed: Sales] [added: Sales] and Go-to-Market [removed: Strategy][added: Strategy]

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| --- | --- |

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| --- | --- |

| ◦ | Symantec Advanced EDR Tools and Managed EDR: We introduced Symantec’s Advanced Endpoint Detection and Response (EDR) tools and fully managed EDR (MEDR) service, enabling security teams around the world to stay ahead of threats. EDR improves incident response, threat hunting, and forensics, fortifying teams with investigation expertise and threat intelligence from a world-class team of security operations center analysts. MEDR detects stealthy attacks and examines suspicious activity for faster incident validation and response. |

| | |

| --- | --- |

| ◦ | Cloud Security Portfolio Enhancements: We expanded our cloud security portfolio to help organizations protect cloud applications and related infrastructure. Our ICD Platform offers robust cloud protection, providing visibility and control for virtually any cloud app, and integrations with CloudSOC CASB, Cloud Workload Protection (CWP), and Data Loss Protection (DLP), while enabling customers to track more risk attributes and scan cloud applications and repositories with new API Integrations. |

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| --- | --- |

| ◦ | Data Loss Prevention Enhancements for Office 365: We introduced new features to protect data, whether at rest or in transit, on-premises or in the cloud, and everywhere it flows through a single management console. |

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| --- | --- |

| ◦ | Cloud-based Network Security with Web Isolation: We introduced industry-first Web Isolation technology that integrates into our Web Security Service (WSS) and enables web browsing, nearly eliminating the risk of infection by zero-day malware or advanced threats. |

| | |

| --- | --- |

| ◦ | Cloud-based Network Security with Integrated Endpoint Protection: We introduced improved network-to-endpoint protection with the integration of Symantec Endpoint Protection (SEP) and SEP Mobile into WSS, allowing web traffic re-directs to WSS for enforcement of network security policies while consequently eliminating the need for a separate agent to manage traffic flow. Our new SD-Cloud Connector enables customers to combine the performance and reliability of Software Defined WAN (SD-WAN) technology with our |

WSS to create a simple, high-performance method to connect branch office locations with our leading cloud security service.

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| --- | --- |

| ◦ | Targeted Attack Analytics: We expanded our Advanced Threat Protection (ATP) offering to include our targeted attack technology. This feature enables ATP customers to leverage advanced machine learning to automate the discovery of targeted attacks, one of the most dangerous intrusions in corporate networks. |

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| --- | --- |

| • | Consistent with our strategy of acquiring companies with complementary technology to enhance our products, services, and solutions and speed time to market, we completed several acquisitions during our fiscal year 2019, including the following: |

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| --- | --- |

| ◦ | Appthority. With this acquisition, we are able to provide mobile application security to our Consumer Cyber Safety customers, enabling them to analyze mobile apps for both malicious capabilities and unsafe and unwanted behaviors, such as vulnerabilities, risk of sensitive data loss, and privacy-invasive actions. |

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| --- | --- |

| ◦ | Javelin. This acquisition brings advanced software technology to our Enterprise Security solutions, enabling enterprises to defend against Active Directory-based (AD) attacks through detection of AD misconfigurations and backdoors to help prevent AD reconnaissance and credentials misuse by authorized devices and applications. |

| | |

| --- | --- |

| ◦ | Luminate. With this acquisition, our solutions now incorporate software defined perimeter and zero trust technology enabling us to deliver private secure application access to all users, regardless of device, location, or infrastructure, extending the power of our ICD Platform to users and significantly extending our leadership in cloud security beyond alternative approaches. |

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##### [Table of Contents](#toc)

| | • | | We completed several acquisitions, including Fireglass Ltd. and Skycure Ltd. |

| | • | | Fireglass provides agentless isolation solutions that prevent ransomware, malware, and phishing threats in real-time from reaching user endpoints or the corporate network. With this acquisition, we further strengthened our enterprise security strategy to deliver an Integrated Cyber Defense Platform and extended our participation in the Secure Web Gateway and Email protection markets delivered both on premises and in the cloud. |

| | • | | Skycure provides mobile threat defense for devices running modern operating systems, including iOS and Android. This acquisition extends our endpoint security capabilities. With the addition of Skycure our Integrated Cyber Defense Platform now enables visibility into and control over all endpoint devices, including mobile devices, whether corporate owned or bring your own device. |

| | • | | We completed the divestiture of our Website Security (“WSS”) and Public Key Infrastructure (“PKI”) solutions to DigiCert, Inc., allowing us to sharpen our enterprise security focus on Integrated Cyber Defense. At the closing of the transaction, we received a minority ownership stake in DigiCert. |

| | • | | Symantec Endpoint Protection 14.1 delivers superior, multi-layer protection to help stop threats regardless of how they attack endpoints, while integrating with other security products to provide an orchestrated response. Its single, lightweight agent offers high performance while maintaining end-user productivity. In addition, Symantec Endpoint Protection 14.1 is designed to be effective even in sites with low connectivity, using advanced machine learning and other signature-less technologies to minimize the need for content updates. |

| | • | | Symantec Advanced Threat Protection 3.0 extends and differentiates our endpoint security offering with new technology that includes file-less attack detection and enhanced adversary intelligence. It also enables “flight recorder” functionality, which records all activity on the endpoint, providing valuable forensic data to incident responders with no new agent to install. |

Our Integrated Cyber Defense platform enables us to acquire new customers and cross-sell our full portfolio of products and services to existing customers with improved visibility, enhanced controls, accelerated response and reduced cost of ownership.

| | • | | Core Services |

| | • | | Foundation |

| | • | | Threat Intelligence: A global threat intelligence network applies artificial intelligence to analyze over 1 trillion lines of telemetry annually, automatically updating intelligence on millions of malicious files and URL threat indicators across all control points to discover and block advanced targeted attacks that might otherwise go undetected. |

| | • | | Platform Integrations: A curated set of multi-point integrations between Symantec and technology partner solutions, orchestrating and automating actions, events and intelligence across the platform and eco-system to empower a powerful cyber defense. |

Our Consumer Digital Safety solutions consist of the following key elements, which we are integrating into a singular user experience for individuals and their families:

| | apps, websites and online streaming by changing their virtual location. This service also limits the ability of websites to track users, thereby eliminating persistent personalized ads based on browsing history. |

Business Segments, International Operations and Significant Customers

For financial information regarding our Enterprise Security and Consumer Digital Safety segments, revenues and property and equipment by geographical area and significant customers, see Note 14 to the Consolidated Financial Statements in this annual report.

For information regarding risks associated with our international operations, see Item 1A, _Risk Factors_.

services to drive the company’s leadership in cyber security.

Research and development expenses were $956 million, $823 million and $748 million in fiscal 2018, 2017 and 2016, respectively.

We regard some of the features of our internal operations, software, and documentation as proprietary and rely on copyright, patent, trademark and trade secret laws, confidentiality procedures, contractual arrangements, and other measures to protect our proprietary information.

These license agreements are

Revenues are generally higher in our third and fourth fiscal quarters.

Audit Committee Investigation Completed

As previously disclosed, the Audit Committee has concluded its internal investigation, which was originally announced in May 2018.

Please see Part III, Item 11 “Executive Compensation” — “Executive Compensation and Related Information” — “Compensation Discussion & Analysis” — “Additional Matters — Audit Committee Investigation” for more details.

In addition, you may read and copy any filing that we make with the SEC at the public reference room maintained by the SEC, located at 100 F Street, N.E., Washington, D.C. 20549.

Please call the SEC at 1-800-SEC-0330 for further information about the public reference room.

Information with respect to this Item may be found under the heading “Litigation contingencies” in Note [removed: 15] [added: 16] to the Consolidated Financial Statements in this Annual Report on Form 10-K which information is incorporated into this Item 3 by reference.

[removed: ##### [Table of Contents](#toc)][added: TABLE OF CONTENTS]

[removed: UNITED] [added: UNITED] STATES SECURITIES AND EXCHANGE [removed: COMMISSION][added: COMMISSION]

[removed: Washington,] [added: Washington,] D.C. [removed: 20549][added: 20549]

[removed: Form 10-K][added: Form 10-K]

[removed: (Mark One)][added: (Mark One)]

| [removed: ☑] [added: þ] | [removed: ANNUAL] [added: ANNUAL] REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF [removed: 1934] [added: 1934] |

[removed: | | For] [added: For] the Fiscal Year Ended March [removed: 30, 2018 |][added: 29, 2019]

| [removed: ☐] [added: o] | [removed: TRANSITION] [added: TRANSITION] REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF [removed: 1934] [added: 1934] |

[removed: | | For] [added: For] the Transition Period from [removed: to |][added: to]

[removed: Commission] [added: Commission] File Number [removed: 000-17781][added: 000-17781]

[removed: Symantec Corporation][added: Symantec Corporation]

[removed: _(Exact] [added: (Exact] name of [removed: the] registrant as specified in its [removed: charter)_][added: charter)]

| [removed: Delaware] [added: Delaware] | | [removed: 77-0181864] [added: 77-0181864] |

| [removed: _(State] [added: (State] or other jurisdiction [removed: of_ _incorporation] [added: of incorporation] or [removed: organization)_] [added: organization)] | | [removed: _(I.R.S. employer_ _Identification no.)_] [added: (I.R.S. Employer Identification No.)] |

| [removed: 350] [added: 350] Ellis [removed: Street, Mountain] [added: Street, Mountain] View, [removed: California] [added: California] | | [removed: 94043 _(Zip code)_] [added: 94043] |

| [removed: _(Address] [added: (Address] of principal executive [removed: offices)_] [added: offices)] | | [added: (Zip code)] |

[removed: Registrant’s] [added: Registrant’s] telephone number, including area [removed: code:][added: code:]

[removed: (650) 527-8000][added: (650) 527-8000]

[removed: Securities] [added: Securities] registered pursuant to Section 12(b) of the [removed: Act:][added: Act:]

| [removed: Common] [added: Common] Stock, par value $0.01 per [removed: share] [added: share] | [added: SYMC] | [removed: The NASDAQ] [added: The Nasdaq] Stock Market [removed: LLC] [added: LLC] |

| [removed: _(Title] [added: Title] of each [removed: class)_] [added: class] | [added: Trading symbol(s)] | [removed: _(Name] [added: Name] of each exchange on which [removed: registered)_] [added: registered] |

[removed: Securities] [added: Securities] registered pursuant to Section 12(g) of the [removed: Act:][added: Act:]

[removed: None][added: None]

[removed: _(Title] [added: (Title] of [removed: class)_][added: class)]

Yes [removed: ☐] [added: o] No [removed: ☑][added: þ]

Yes [removed: ☑] [added: o] No [removed: ☐][added: þ]

| Large accelerated filer [removed: ☑] [added: þ] | | Accelerated filer [removed: ☐] [added: o] | | Non-accelerated filer [removed: ☐] [added: o] | | Smaller reporting company [removed: ☐] [added: o] |

| | | | | | | Emerging growth company [removed: ☐] [added: o] |

[added: |] 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. [added: o | | | | | | |]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the [removed: Exchange] Act).

The number of shares of Symantec common stock, $0.01 par value per share, outstanding as of [removed: October 15, 2018] [added: May 13, 2019] was [removed: 638,800,147] [added: 618,193,875] shares.

[removed: DOCUMENTS] [added: DOCUMENTS] INCORPORATED BY [removed: REFERENCE][added: REFERENCE]

[removed: For] [added: For] the Fiscal Year Ended March [removed: 30, 2018][added: 29, 2019]

| | | [removed: | | Page | |] [added: Page] |

| [removed: PART I | | | |] [added: PART I] | | |

| Item 1. | [removed: | [Business](#osl573170_1) | | | 4] [added: [Business](#sC9846E4537540E187372C03DDD91203C)] | [added: [4](#sC9846E4537540E187372C03DDD91203C)] |

| Item 1A. | [removed: |] [Risk [removed: Factors](#osl573170_2) | | | 12] [added: Factors](#sD2204807D0975E4F9E19C03DEF8462C7)] | [added: [9](#sD2204807D0975E4F9E19C03DEF8462C7)] |

| Item 1B. | [removed: |] [Unresolved Staff [removed: Comments](#osl573170_3) | | | 30] [added: Comments](#sB43FAEE2DA1914D72DFCC03DEFA0CBB2)] | [added: [21](#sB43FAEE2DA1914D72DFCC03DEFA0CBB2)] |

| Item 2. | [removed: | [Properties](#osl573170_4) | | | 30] [added: [Properties](#sF964911A5A70F1EF440BC03DD81E4762)] | [added: [22](#sF964911A5A70F1EF440BC03DD81E4762)] |

| Item 3. | [removed: |] [Legal [removed: Proceedings](#osl573170_5) | | | 31] [added: Proceedings](#s87043E404F9D7CDC31A1C03DEFEF53DD)] | [added: [22](#s87043E404F9D7CDC31A1C03DEFEF53DD)] |

10-K 1 symc32919-10k.htm 10-K

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or

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________________________

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Yes þ No o

Yes þ No o

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Yes o No þ

Portions of the registrant’s definitive proxy statement for the 2019 annual meeting of stockholders are incorporated herein by reference into Part III of this Annual Report on Form 10-K where indicated.

Such Proxy Statement will be filed with the Securities and Exchange Commission within 120 days of the registrant’s fiscal year ended March 29, 2019.

SYMANTEC CORPORATION

FORM 10-K

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Risk Factors.

10-K 1 d573170d10k.htm 10-K

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(Check one):

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None.

TABLE OF CONTENTS

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EXPLANATORY NOTE

As previously reported, we were unable to timely file our Annual Report on Form 10-K for the fiscal year ended March 30, 2018 and our Quarterly Report on Form 10-Q for the first quarter of fiscal 2019 ended June 29, 2018 and we anticipate being unable to timely file our Quarterly Report on Form 10-Q for the second quarter of fiscal 2019 ended September 28, 2018 as a result of an Audit Committee investigation as described herein.

We expect to file the delinquent Quarterly Reports as promptly as practicable following this Annual Report filing.

Not applicable.

Our properties consist primarily of owned and leased office facilities for sales, research and development, administrative, customer service and technical support personnel.

Our corporate headquarters is located in Mountain View, California where we occupy facilities totaling approximately 734,000 square feet, of which 723,000 square feet is owned and 11,000 square feet is leased.

Our leased facilities are occupied under agreements that expire on various dates through fiscal 2029.

The following table presents the approximate square footage of our facilities as of March 30, 2018:

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| | | Approximate Square Footage (1) | | | | | | |

| (In thousands) | | Owned | | | | Leased | | |

| Americas (U.S., Canada and Latin America) | | | 1,402 | | | | 746 | |

| EMEA (Europe, Middle East and Africa) | | | 163 | | | | 227 | |

| APJ (Asia Pacific and Japan) | | | \- | | | | 945 | |

| Total approximate square footage | | | 1,565 | | | | 1,918 | |

| (1) | Included in the total approximate square footage above are vacant and available-for-lease properties totaling approximately 151,000 square feet. Total square footage excludes approximately 664,000 square feet relating to facilities subleased to third parties. As of March 30, 2018, we also own facilities that are held as available-for-sale on our Consolidated Balance Sheets. These facilities comprise approximately 403,000 square feet of space. In October 2018, we completed the sale of these facilities. |

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##### [Table of Contents](#toc)

We believe that our existing facilities are adequate for our current needs and that the productive capacity of our facilities is substantially utilized.

[removed: PART II][added: PART II]

##### [Table of Contents](#toc)

Our common stock is traded on the Nasdaq Global Select Market under the symbol “SYMC.” As of March [removed: 30, 2018,] [added: 29, 2019,] there were [removed: 1,665] [added: 1,601] stockholders of record.

[removed: Stock] [added: Stock] performance [removed: graph][added: graph]

The graph below compares the cumulative total stockholder return on our common stock with the cumulative total return on the S&P 500 Composite Index and the S&P Information Technology Index for the five fiscal years ended March [removed: 30, 2018] [added: 29, 2019] (assuming the initial investment of $100 in our common stock and in each of the other indices on the last day of trading for fiscal [removed: 2013,] [added: 2014] and the reinvestment of all dividends).

[removed: COMPARISON] [added: COMPARISON] OF FIVE-YEAR CUMULATIVE TOTAL [removed: RETURN][added: RETURN]

[removed: Among] [added: Among] Symantec Corporation, the S&P 500 [removed: Index][added: Index]

[removed: and] [added: and] the S&P Information Technology [removed: Index][added: Index]

[removed: ][added: ]

This performance graph shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities under that [removed: Section,] [added: Section] and shall not be deemed to be incorporated by reference into any filing of Symantec under the Securities Act or the Exchange Act.

[removed: Dividends][added: Dividends]

During fiscal [removed: 2018] [added: 2019] and [removed: 2017,] [added: 2018,] we declared and paid aggregate cash dividends and dividend equivalents of [removed: $211] [added: $217] million or $0.30 per common share, and [removed: $222] [added: $211] million or $0.30 per common share, respectively.

[removed: Repurchases] [added: Repurchases] of our equity [removed: securities][added: securities]

As of March [removed: 30, 2018,] [added: 29, 2019,] we have [removed: $800] [added: $1,048] million remaining authorized to be completed in future periods with no expiration date.

Stock repurchases during the three months ended March [removed: 30, 2018,] [added: 29, 2019,] were as follows:

| [removed: (In] [added: (In] millions, except per share [removed: data) |] [added: data)] | [removed: Total Number] [added: Total Number] of Shares [removed: Purchased |] [added: Purchased (1)] | | | [removed: Average Price Paid per Share] [added: Average Price Paid per Share] | | | | [removed: Total] [added: Total] Number of Shares Purchased as Part of Publicly Announced [removed: Program |] [added: Program] | | | [removed: Maximum] [added: Maximum] Dollar Value of Shares That May Yet Be [removed: Purchased Under] [added: Purchased Under] the Plans or [removed: Programs] [added: Programs] | | |

| December [removed: 30, 2017] [added: 29, 2018] to January [removed: 26, 2018 | |] [added: 25, 2019] | [removed: \-] [added: —] | | | $ | [removed: \- |] [added: —] | | | [removed: \-] [added: —] | | | $ | 800 | |

| Total number of shares repurchased | [removed: | | \- |] [added: 11] | | | | | | | [removed: \-] [added: 11] | | | | | |

Stockholders of record

In January 2019, our Board of Directors increased their authorization by $500 million.

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| January 26, 2019 to February 22, 2019 | — | | | $ | — | | | — | | | $ | 1,300 | |

| February 23, 2019 to March 29, 2019 | 11 | | | $ | 22.68 | | | 11 | | | $ | 1,048 | |

(1) The number of shares purchased is reported on trade date.

As of March 29, 2019, approximately 1 million share repurchases at the average price per share of $22.95 were executed but not settled until April 2019.

Price range of common stock and number of stockholders

The high and low closing sales prices set forth below are as reported on the Nasdaq Global Select Market during each quarter of the two most recent fiscal years.

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| | | 2017 | | | | | | | | | | | | | | | | 2018 | | | | | | | | | | | | | | |

| | | First Quarter | | | | Second Quarter | | | | Third Quarter | | | | Fourth Quarter | | | | First Quarter | | | | Second Quarter | | | | Third Quarter | | | | Fourth Quarter | | |

| High | | $ | 21.24 | | | $ | 25.27 | | | $ | 25.45 | | | $ | 30.83 | | | $ | 33.14 | | | $ | 34.16 | | | $ | 33.92 | | | $ | 29.57 | |

| Low | | $ | 16.60 | | | $ | 20.28 | | | $ | 23.49 | | | $ | 24.01 | | | $ | 28.06 | | | $ | 27.47 | | | $ | 27.36 | | | $ | 25.51 | |

##### [Table of Contents](#toc)

275 Symantec Corporation 250 S&P 500 225 S&P Information Technology 200 Dollars 175 150 125 100 75 3/29/2013 3/28/2014 4/3/2015 4/1/2016 3/31/2017 3/30/2018

Dividends declared and paid each quarter during fiscal 2018 and 2017 were $0.075 per share.

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| January 27, 2018 to February 23, 2018 | | | \- | | | $ | \- | | | | \- | | | $ | 800 | |

| February 24, 2018 to March 30, 2018 | | | \- | | | $ | \- | | | | \- | | | $ | 800 | |

[removed: _Management’s] [added: Management’s] Discussion and Analysis of Financial Condition and Results of [removed: Operations_.][added: Operations.]

[removed: Five-Year Summary][added: Five-Year Summary]

[removed: Summary] [added: | Summary] of [removed: Operations:][added: Operations: | Year Ended (1) | | | | | | | | | | | | | | | | | | |]

| [removed: (In] [added: (In] millions, except per share [removed: data)] [added: data)] | [added: March 29, 2019 (2)] | [removed: March] [added: | | | March] 30, 2018 [removed: (2)] [added: (3)] | | | | [removed: March] [added: March] 31, 2017 [removed: (3)] [added: (4)] | | | | [removed: April] [added: April] 1, 2016 [removed: (4)] [added: (5)] | | | | [removed: April] [added: April] 3, [removed: 2015 | | | | March 28, 2014] [added: 2015] | | |

| Net revenues | [removed: |] $ | [removed: 4,834] [added: 4,731] | | | $ | [removed: 4,019] [added: 4,834] | | | $ | [removed: 3,600] [added: 4,019] | | | $ | [removed: 3,956] [added: 3,600] | | | $ | [removed: 4,183] [added: 3,956] | |

| Operating income (loss) | [added: $] | [added: 380 | | |] $ | 49 | | | $ | (100 | ) | | $ | 457 | | | $ | 154 | | [removed: | $ | 144 | |]

| Income (loss) from continuing operations [removed: (2)] [added: (3)] | [added: $] | [added: 16 | | |] $ | 1,127 | | | $ | (236 | ) | | $ | (821 | ) | | $ | 109 | | [removed: | $ | 91 | |]

| Income from discontinued operations, net of income taxes [removed: (4) |] [added: (5)] | $ | [removed: 11] [added: 15] | | | $ | [removed: 130] [added: 11] | | | $ | [removed: 3,309] [added: 130] | | | $ | [removed: 769] [added: 3,309] | | | $ | [removed: 807] [added: 769] | |

| Net income (loss) | [added: $] | [added: 31 | | |] $ | 1,138 | | | $ | (106 | ) | | $ | 2,488 | | | $ | 878 | | [removed: | $ | 898 | |]

| Income (loss) per share [removed: —] [added: -] basic: [removed: (5) |] [added: (6)] | | | | | | | | | | | | | | | | | | | |

| Continuing operations | [added: $] | [added: 0.03 | | |] $ | 1.83 | | | $ | (0.38 | ) | | $ | (1.23 | ) | | $ | 0.16 | | [removed: | $ | 0.13 | |]

| Discontinued operations | [removed: |] $ | 0.02 | | | $ | [removed: 0.21] [added: 0.02] | | | $ | [removed: 4.94] [added: 0.21] | | | $ | [removed: 1.12] [added: 4.94] | | | $ | [removed: 1.16] [added: 1.12] | |

| Net income (loss) per share [removed: —] [added: -] basic | [added: $] | [added: 0.05 | | |] $ | 1.85 | | | $ | (0.17 | ) | | $ | 3.71 | | | $ | 1.27 | | [removed: | $ | 1.29 | |]

| Income (loss) per share [removed: —] [added: -] diluted: [removed: (5) |] [added: (6)] | | | | | | | | | | | | | | | | | | | |

| Continuing operations | [added: $] | [added: 0.02 | | |] $ | 1.69 | | | $ | (0.38 | ) | | $ | (1.23 | ) | | $ | 0.16 | | [removed: | $ | 0.13 | |]

| Discontinued operations | [removed: |] $ | 0.02 | | | $ | [removed: 0.21] [added: 0.02] | | | $ | [removed: 4.94] [added: 0.21] | | | $ | [removed: 1.10] [added: 4.94] | | | $ | [removed: 1.15] [added: 1.10] | |

| Net income (loss) per share [removed: —] [added: -] diluted | [added: $] | [added: 0.05 | | |] $ | 1.70 | | | $ | (0.17 | ) | | $ | 3.71 | | | $ | 1.26 | | [removed: | $ | 1.28 | |]

| Cash dividends declared per common share | [removed: |] $ | 0.30 | | | $ | 0.30 | | | $ | [removed: 4.60] [added: 0.30] | | | $ | [removed: 0.60] [added: 4.60] | | | $ | 0.60 | |

[removed: Consolidated] [added: | Consolidated] Balance Sheets [removed: Data:][added: Data: | | | | | | | | | | | | | | | | | | | |]

| [removed: (In millions)] [added: (In millions)] | [added: March 29, 2019] | [removed: March] [added: | | | March] 30, [removed: 2018] [added: 2018] | | | | [removed: March] [added: March] 31, [removed: 2017] [added: 2017] | | | | [removed: April] [added: April] 1, [removed: 2016] [added: 2016] | | | | [removed: April] [added: April] 3, [removed: 2015 | | | | March 28, 2014] [added: 2015] | | |

| Cash, cash equivalents and short-term investments | [removed: |] $ | [removed: 2,162] [added: 2,043] | | | $ | [removed: 4,256] [added: 2,162] | | | $ | [removed: 6,025] [added: 4,256] | | | $ | [removed: 3,860] [added: 6,025] | | | $ | [removed: 4,084] [added: 3,860] | |

| Total assets | [removed: |] $ | [removed: 15,759] [added: 15,938] | | | $ | [removed: 18,174] [added: 15,759] | | | $ | [removed: 11,767] [added: 18,174] | | | $ | [removed: 13,233] [added: 11,767] | | | $ | [removed: 13,539] [added: 13,233] | |

| Long-term debt | [removed: |] $ | [removed: 5,026] [added: 3,961] | | | $ | [removed: 6,876] [added: 5,026] | | | $ | [removed: 2,207] [added: 6,876] | | | $ | [removed: 1,746] [added: 2,207] | | | $ | [removed: 2,095] [added: 1,746] | |

| Total stockholders’ equity | [removed: |] $ | [removed: 5,023] [added: 5,738] | | | $ | [removed: 3,487] [added: 5,023] | | | $ | [removed: 3,676] [added: 3,487] | | | $ | [removed: 5,935] [added: 3,676] | | | $ | [removed: 5,797] [added: 5,935] | |

| (1) | We have a 52/53-week fiscal year. Our fiscal [removed: 2015 was a 53-week year, whereas fiscal] [added: 2019,] 2018, 2017, [removed: 2016] and [removed: 2014] [added: 2016] each consisted of 52 [removed: weeks.] [added: weeks, whereas fiscal 2015 was a 53-week year.] |

| [removed: (2)] [added: (3)] | In fiscal 2018, we sold [removed: our WSS] [added: Website Security (WSS)] and [removed: PKI] [added: Public Key Infrastructure (PKI)] solutions and recognized a gain of $653 million before income taxes associated with the sale (see Note [removed: 3] [added: 4] to the Consolidated Financial [removed: Statements)] [added: Statements),] and we recognized an income tax benefit of $659 million as a result of the enactment of the Tax Cuts and Jobs Act (H.R.1) [added: (the 2017 Tax Act)] (see Note [removed: 10] [added: 11] to the Consolidated Financial Statements). |

| [removed: (3)] [added: (4)] | In fiscal 2017, we acquired Blue [removed: Coat, Inc. (“Blue Coat”)] [added: Coat] and LifeLock, [removed: Inc. (“LifeLock”)] and the results of operations of those entities were included from their respective dates of acquisition (see Note [removed: 3] [added: 4] to the Consolidated Financial Statements). |

| [removed: (4)] [added: (5)] | In fiscal 2016, we recorded $1.1 billion in income tax expense related to unremitted earnings of foreign subsidiaries from the proceeds of the sale of our [removed: divested] [added: Veritas] information management [removed: business (“Veritas”).] [added: business.] This charge was presented in loss from [added: continuing operations in the Consolidated Statements of Operations. As a result of the sale, a net gain of $3.0 billion was presented as part of income from discontinued operations, net of income taxes.] |

| [removed: (5)] [added: (6)] | Net income per share amounts may not add due to rounding. |

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| (2) | We adopted the new revenue recognition accounting standard on a modified retrospective basis during the first quarter of fiscal 2019. The results for fiscal 2019 are presented under the new revenue recognition accounting standard, while prior years are not adjusted. |

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| | | Year Ended (1) | | | | | | | | | | | | | | | | | | |

##### [Table of Contents](#toc)

| | continuing operations in the Consolidated Statements of Operations (see Note 10 to the Consolidated Financial Statements). As a result of the sale, a net gain of $3.0 billion was presented as part of income from discontinued operations, net of income taxes (see Note 3 to the Consolidated Financial Statements). |

[removed: Selected] [added: Selected] Quarterly Financial Data [removed: (Unaudited)][added: (Unaudited)]

| | [removed: | Fiscal 2018] [added: Fiscal 2019] | | | | | | | | | | | | | | | | [removed: Fiscal 2017] [added: Fiscal 2018] | | | | | | | | | | | | | | |

| [removed: (In] [added: (In] millions, except per share [removed: data) |] [added: data)] | [removed: Fourth Quarter] [added: Fourth Quarter] | | | | [removed: Third] [added: Third] Quarter [removed: (1)] | | | | [removed: Second Quarter] [added: Second Quarter] | | | | [removed: First Quarter] [added: First Quarter] | | | | [removed: Fourth Quarter] [added: Fourth Quarter] | | | | [removed: Third Quarter] [added: Third Quarter (1)] | | | | [removed: Second Quarter] [added: Second Quarter] | | | | [removed: First Quarter] [added: First Quarter] | | |

| Net revenues | [removed: |] $ | [removed: 1,210] [added: 1,189] | | | $ | [removed: 1,209] [added: 1,211] | | | $ | [removed: 1,240] [added: 1,175] | | | $ | [removed: 1,175] [added: 1,156] | | | $ | [removed: 1,115] [added: 1,210] | | | $ | [removed: 1,041] [added: 1,209] | | | $ | [removed: 979] [added: 1,240] | | | $ | [removed: 884] [added: 1,175] | |

| Gross profit | [removed: |] [added: 910] | [removed: 946] | | | [added: 945] | [removed: 960] | | | [added: 919] | [removed: 978] | | | [added: 907] | [removed: 918] | | | [added: 946] | [removed: 856] | | | [added: 960] | [removed: 806] | | | [added: 978] | [removed: 769] | | | [added: 918] | [removed: 735] | |

| Income tax expense (benefit) | [removed: |] [added: 22] | [removed: (7] | [removed: )] | | [added: 38] | [removed: (606] | [removed: )] | | [added: 36] | [removed: (53] | [removed: )] | | [added: (4] | [removed: (24] | ) | | [added: (7] | [removed: (71] | ) | | [added: (606] | [removed: (5] | ) | | [added: (53] | [removed: 19] | [added: )] | | [added: (24] | [removed: 31] | [added: )] |

| Income (loss) from continuing operations | [removed: |] [added: 30] | [removed: (58] | [removed: )] | | [added: 59] | [removed: 1,311] | | | [added: (8] | [removed: (16] | ) | | [added: (65] | [removed: (110] | ) | | [added: (58] | [removed: (177] | ) | | [added: 1,311] | [removed: (56] | [removed: )] | | [added: (16] | [removed: (69] | ) | | [added: (110] | [removed: 66] | [added: )] |

| Income (loss) from discontinued operations, net of income taxes | [removed: |] [added: 4] | [removed: (1] | [removed: )] | | [added: 6] | [removed: 31] | | | [added: —] | [removed: 4] | | | [added: 5] | [removed: (23] | [removed: )] | | [added: (1] | [removed: 34] | [added: )] | | [added: 31] | [removed: 102] | | | [added: 4] | [removed: (75] | [removed: )] | | [added: (23] | [removed: 69] | [added: )] |

| Net income (loss) | [removed: |] [added: 34] | [removed: (59] | [removed: )] | | [added: 65] | [removed: 1,342] | | | [added: (8] | [removed: (12] | ) | | [added: (60] | [removed: (133] | ) | | [added: (59] | [removed: (143] | ) | | [added: 1,342] | [removed: 46] | | | [added: (12] | [removed: (144] | ) | | [added: (133] | [removed: 135] | [added: )] |

| Income (loss) per share [removed: —] [added: -] basic: (2) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [removed: |]

| Continuing operations | [removed: |] $ | [removed: (0.09] [added: 0.05] | [removed: )] | | $ | [removed: 2.12] [added: 0.09] | | | $ | [removed: (0.03] [added: (0.01] | ) | | $ | [removed: (0.18] [added: (0.10] | ) | | $ | [removed: (0.29] [added: (0.09] | ) | | $ | [removed: (0.09] [added: 2.12] | [removed: )] | | $ | [removed: (0.11] [added: (0.03] | ) | | $ | [removed: 0.11] [added: (0.18] | [added: )] |

| Discontinued operations | [removed: |] $ | [removed: (0.00] [added: 0.01] | [removed: )] | | $ | [removed: 0.05] [added: 0.01] | | | $ | [removed: 0.01] [added: —] | | | $ | [removed: (0.04] [added: 0.01] | [removed: )] | | $ | [removed: 0.06] [added: (0.00] | [added: )] | | $ | [removed: 0.16] [added: 0.05] | | | $ | [removed: (0.12] [added: 0.01] | [removed: )] | | $ | [removed: 0.11] [added: (0.04] | [added: )] |

| Net income (loss) per share [removed: —] [added: -] basic | [removed: |] $ | [removed: (0.10] [added: 0.05] | [removed: )] | | $ | [removed: 2.17] [added: 0.10] | | | $ | [removed: (0.02] [added: (0.01] | ) | | $ | [removed: (0.22] [added: (0.10] | ) | | $ | [removed: (0.23] [added: (0.10] | ) | | $ | [removed: 0.07] [added: 2.17] | | | $ | [removed: (0.23] [added: (0.02] | ) | | $ | [removed: 0.22] [added: (0.22] | [added: )] |

| Income (loss) per share [removed: —] [added: -] diluted: (2) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [removed: |]

| Continuing operations | [removed: |] $ | [removed: (0.09] [added: 0.05] | [removed: )] | | $ | [removed: 1.97] [added: 0.09] | | | $ | [removed: (0.03] [added: (0.01] | ) | | $ | [removed: (0.18] [added: (0.10] | ) | | $ | [removed: (0.29] [added: (0.09] | ) | | $ | [removed: (0.09] [added: 1.97] | [removed: )] | | $ | [removed: (0.11] [added: (0.03] | ) | | $ | [removed: 0.11] [added: (0.18] | [added: )] |

| Net income (loss) per share [removed: —] [added: -] diluted | [removed: |] $ | [removed: (0.10] [added: 0.05] | [removed: )] | | $ | [removed: 2.01] [added: 0.10] | | | $ | [removed: (0.02] [added: (0.01] | ) | | $ | [removed: (0.22] [added: (0.10] | ) | | $ | [removed: (0.23] [added: (0.10] | ) | | $ | [removed: 0.07] [added: 2.01] | | | $ | [removed: (0.23] [added: (0.02] | ) | | $ | [removed: 0.22] [added: (0.22] | [added: )] |