Symantec 2016 Annual Report Download - page 118

Divestiture of Veritas
In August 2015, we entered into a definitive agreement to sell the assets of Veritas to Carlyle and amended
the terms in January 2016. Based on the amended terms of the definitive agreement, we received net
consideration of $6.6 billion in cash, excluding transaction costs, and 40 million B common shares of Veritas and
Veritas assumed certain liabilities in connection with the acquisition. The transaction closed on January 29, 2016.
The disposition resulted in a net gain of $3.0 billion, which is presented as part of income from discontinued
operations, net of income taxes in the Consolidated Statements of Operations for fiscal 2016. See Note 6 of the
Notes to Consolidated Financial Statements for more information on severance, facilities and separation costs
related to our fiscal 2015 plans to separate our security and information management businesses.
The results of Veritas are presented as discontinued operations in our Consolidated Statements of
Operations and thus have been excluded from continuing operations and segment results for all reported periods.
Furthermore, Veritas’ assets and liabilities were removed from our Consolidated Balance Sheet upon
consummation of its sale on January 29, 2016, and have been classified as discontinued operations on our
Consolidated Balance Sheet as of April 3, 2015. Accordingly, the following discussion reflects our current
segment reporting structure, which was reduced from three to two segments, and segment results for all reported
periods have been adjusted to conform to the current segment structure. In addition, the following discussion
relates to our continuing operations unless stated otherwise.
Our operating segments
Our operating segments are significant strategic business units that offer different products and services
distinguished by customer needs. The two reporting segments, which are the same as our operating segments,
are:
•Consumer Security: Our Consumer Security segment focuses on making it simple for customers to be
productive and protected at home and at work. Our Norton-branded services provide multi-layer
security and identity protection on major desktop and mobile operating systems, to defend against
increasingly complex online threats to individuals, families, and small businesses.
•Enterprise Security: Our Enterprise Security segment protects organizations so they can securely
conduct business while leveraging new platforms and data. Our Enterprise Security segment includes
our threat protection products, information protection products, cyber security services, and website
security offerings, previously named trust services.
For further description of our operating segments see Note 8 of the Notes to Consolidated Financial
Statements in this annual report.
Financial results and trends
The following table provides an overview of key financial metrics for each of the last three fiscal years:
2016 2015 2014
(In millions, except percentages)
Consolidated Statements of Operations Data:
Net revenues $ 3,600 $ 3,956 $ 4,183
Gross profit 2,985 3,229 3,392
Operating income 457 154 144
Operating margin percentage 13% 4% 3%
Consolidated Cash Flow Data:
Net cash provided by continuing operating activities $ 1,456 $ 17 $ 108
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