XML 23 R11.htm IDEA: XBRL DOCUMENT
v3.20.4

Discontinued Operations and Assets Held for Sale | 9 Months Ended
--- | ---
Jan. 01, 2021
Discontinued Operations and Disposal Groups [Abstract] |
Discontinued Operations and Assets Held for Sale | Discontinued Operations and Assets Held for Sale Discontinued operations On November 4, 2019, we completed the sale of certain of our Enterprise Security assets and certain liabilities to Broadcom Inc. (the Broadcom sale). As a result, the majority of the results of our Enterprise Security business were classified as discontinued operations in our Condensed Consolidated Statements of Operations and thus excluded from both continuing operations and segment results for all periods presented. In connection with the Broadcom sale, we entered into a transition services agreement under which we provided assistance to Broadcom including, but not limited to, business support services and information technology services. During the nine months ended January 1, 2021, the transition services were completed. Dedicated direct costs, net of charges to Broadcom, for these transition services were $0 million and $9 million during the three and nine months ended January 1, 2021, respectively, and $5 million during the three and nine months ended January 3, 2020. These direct costs were presented as part of Other income, net in the Condensed Consolidated Statements of Operations. On October 1, 2020, we entered into multiple agreements with Broadcom for an aggregate amount of $200 million. We licensed Broadcom’s enterprise software, multiple security engines and related telemetry for 5.6 years, which will be amortized to continuing operations over the term of the license. In addition, we resolved all outstanding payments and certain claims related to the asset purchase and transition services agreements, which is included in discontinued operations. The following table presents information regarding certain components of incom e (loss) from discontinued operations, net of income taxes:
| Three Months Ended |  | Nine Months Ended
(In millions) | January 1, 2021 |  | January 3, 2020 |  | January 1, 2021 |  | January 3, 2020
Net revenues | $ | — |  |  | $ | 193 |  |  | $ | — |  |  | $ | 1,366 |
Gross profit | $ | — |  |  | $ | 161 |  |  | $ | — |  |  | $ | 1,033 |
Operating income (loss) | $ | 1 |  |  | $ | (118) |  |  | $ | (174) |  |  | $ | 6 |
Gain on sale | $ | — |  |  | $ | 5,422 |  |  | $ | — |  |  | $ | 5,422 |
Income (loss) before income taxes | $ | 1 |  |  | $ | 5,300 |  |  | $ | (172) |  |  | $ | 5,424 |
Income tax expense (benefit) | $ | (4) |  |  | $ | 2,808 |  |  | $ | (44) |  |  | $ | 2,197 |
Income (loss) from discontinued operations | $ | 5 |  |  | $ | 2,492 |  |  | $ | (128) |  |  | $ | 3,227 |
The following table presents significant non-cash items and capital expenditures of discontinued operations:
| Nine Months Ended
(In millions) | January 1, 2021 |  | January 3, 2020
Amortization and depreciation | $ | — |  |  | $ | 130 |
Stock-based compensation expense | $ | 1 |  |  | $ | 170 |
Purchases of property and equipment | $ | — |  |  | $ | 43 |
Assets held for sale During the third and fourth quarters of fiscal 2020, we reclassified certain land and buildings previously reported as property and equipment to assets held for sale when the properties were approved for immediate sale in their present condition and the sale was expected to be completed within one year. We continue to actively market the properties for sale; however, in fiscal 2021, the real estate market has been adversely affected by the COVID-19 pandemic, which has delayed the expected timing of sale. We have taken into consideration the current real estate values and demand, and continue to execute plans to sell these properties. As of January 1, 2021, these assets are classified as assets held for sale. During the nine months ended January 1, 2021, there were no impairments because the fair value of the properties less costs to sell either equals or exceeds their carrying value. On July 27, 2020, we completed the sale of certain properties, including land, buildings, furniture and fixtures, and leasehold improvements, for cash consideration of $118 million, net of selling costs. We recognized a gain of $35 million on the sale.

X
- References No definition available. + Details
Name: | us-gaap_DiscontinuedOperationsAndDisposalGroupsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI http://asc.fasb.org/topic&trid=2155823 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=2122178 + Details
Name: | us-gaap_DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration