Symantec 2016 Annual Report Download - page 165

The following table summarizes the operating results of our reporting segments:
Consumer
Security
Enterprise
Security Total Segments
(Dollars in millions)
Fiscal 2016
Net revenues $ 1,670 $ 1,930 $ 3,600
Operating income 924 102 1,026
Fiscal 2015
Net revenues $ 1,887 $ 2,069 $ 3,956
Operating income 982 293 1,275
Fiscal 2014
Net revenues $ 2,063 $ 2,135 $ 4,198
Operating income 928 349 1,277
Our operating segments are based upon the nature of our business and how our business is managed. During
fiscal 2016, 2015, and 2014, our Chief Operating Decision Makers, comprised of our Chief Executive Officer
and Chief Financial Officer, use operating segment financial information to evaluate the Company’s performance
and to assign resources. Except for goodwill, as disclosed in Note 4, our assets are not discretely identified by
segment.
A significant portion of the segments’ operating expenses and cost of revenues, to a lesser extent, arise from
shared services and infrastructure that we have historically provided to the segments in order to realize
economies of scale and to efficiently use resources. These expenses (collectively “corporate charges”) include
legal, accounting, real estate, information technology services, treasury, human resources, other corporate
infrastructure expenses. Corporate charges were allocated to the segments, and the allocations were determined
on a basis that we consider to be a reasonable reflection of the utilization of services provided to or benefits
received by the segments. Corporate charges previously allocated to Veritas, but not classified within
discontinued operations, were not reallocated to our other segments. These unallocated corporate charges also
include a $15 million reduction of revenue during fiscal 2014 related to the GSA investigation. At the beginning
of the third quarter of fiscal 2016, as Veritas became operationally separate, operating costs related to Veritas
were attributed directly to Veritas which reduced our unallocated corporate charges to zero. These charges are
presented below as a component of the reconciliation between the total segment operating income and the
Company’s income from continuing operations and are classified as unallocated corporate charges. In addition,
we do not allocate stock-based compensation expense, amortization of intangible assets and restructuring,
separation, and transition charges.
The following table provides a reconciliation of the total of the Company’s reportable segments’ operating
income to the consolidated operating income from continuing operations:
Year Ended
April 1,
2016
April 3,
2015
March 28,
2014
(Dollars in millions)
Total segment operating income $ 1,026 $ 1,275 $ 1,277
Less reconciling items:
Unallocated corporate charges 186 704 650
Stock-based compensation 161 131 105
Amortization of intangibles 86 122 131
Restructuring, separation, and transition 136 164 247
Total consolidated operating income from continuing operations $ 457 $ 154 $ 144
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