Symantec 2016 Annual Report Download - page 125
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Net revenues and operating income by segment by fiscal year
Change in %
2016 2015 2014 2016 v 2015 2015 v 2014
(Dollars in millions)
Net revenues:
Consumer Security $ 1,670 $ 1,887 $ 2,063 (11)% (9)%
Enterprise Security 1,930 2,069 2,135 (7)% (3)%
Percentage of total net revenues:
Consumer Security 46% 48% 49%
Enterprise Security 54% 52% 51%
Operating income:
Consumer Security $ 924 $ 982 $ 928 (6)% 6%
Enterprise Security 102 293 349 (65)% (16)%
Operating margin:
Consumer Security 55% 52% 45%
Enterprise Security 5% 14% 16%
2016 compared to 2015
Consumer Security revenue decreased $217 million primarily due to the ongoing impact of changes to our
renewal practices and a reduction in revenue from OEM arrangements. Unfavorable currency fluctuations of $81
million also contributed to the decline in revenue. Consumer Security operating income decreased $58 million
primarily due to the decreases in revenue in this segment, which were partially offset by reductions in cost of
revenues, sales and marketing and research and development expenses.
Enterprise Security revenue decreased $139 million primarily due to unfavorable foreign currency
fluctuations of $90 million, as well as decrease in sales of endpoint management and our mail cloud security
products. The decrease of $191 million in operating income was primarily due to decreased revenue and
increased allocation of stranded costs. These stranded costs consist of overhead expenses resulting from the sale
of Veritas and primarily include information technology infrastructure and services, and real estate costs.
2015 compared to 2014
Consumer Security revenue decreased $176 million primarily due to our channel strategy to exit
unprofitable retail arrangements and certain high-cost OEM arrangements, coupled with the impact of our
decision to change our renewal practices. Consumer Security operating income increased $54 million primarily
due to reductions in advertising and promotional expenses of $141 million and decreases in cost of revenues of
$52 million and salaries and wages of $26 million, partially offset by the revenue decline in the segment.
Enterprise Security revenue decreased $66 million primarily due to unfavorable foreign currency
fluctuations, as well as a decrease in the sales of endpoint management. The decrease of $56 million in operating
income was mainly due to the reduction in revenue.
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