Attached files
| file | filename |
|---|---|
| EX-99.1 - EX-99.1 - NortonLifeLock Inc. | d681132dex991.htm |
| 8-K - FORM 8-K - NortonLifeLock Inc. | d681132d8k.htm |
Exhibit 99.02
SYMANTEC CORPORATION
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
In the second quarter of fiscal 2018, Symantec Corporation (“Symantec,” “our,” and “the Company” refer to Symantec Corporation and all of its subsidiaries) entered into a definitive agreement to sell certain assets and assign certain liabilities of our Website Security and PKI solutions (“WSS”) to DigiCert Parent Inc. (“DigiCert”) and DigiCert, Inc. On October 31, 2017, the Company completed the sale of WSS (“the Sale”) for consideration of approximately $960 million in cash and an approximate 27% equity interest in the common stock of DigiCert in connection with the acquisition.
The following unaudited Pro Forma Condensed Consolidated Balance Sheet, as of June 30, 2017, reflects Symantec’s financial position as if the Sale had occurred on that date. The following unaudited Pro Forma Condensed Consolidated Statements of Operations for the fiscal year ended March 31, 2017, and the three months ended June 30, 2017, reflect Symantec’s results of operations as if the Sale had occurred on April 2, 2016 and does not assume any interest income on cash proceeds.
These unaudited Pro Forma Condensed Consolidated Financial Statements and the accompanying notes are based upon and should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in our Annual Report on Form 10-K for the fiscal year ended March 31, 2017 and Quarterly Report on Form 10-Q for the three months ended June 30, 2017. The accompanying unaudited Pro Forma Condensed Consolidated Statements of Operations have been prepared in accordance with the regulations of the Securities and Exchange Commission (“SEC”) and should not be considered indicative of the financial position or results of operations that would have occurred if the Sale had been consummated on the dates indicated, nor are they indicative of the future financial position or results of operations of the Company.
In accordance with SEC regulations, the unaudited Pro Forma Condensed Consolidated Financial Statements reflect adjustments to the extent they are directly attributable to the Sale, factually supportable and, for statement of operations purposes, are expected to have a continuing impact on the Company’s results of operations.
The “Historical” column in the unaudited Pro Forma Condensed Consolidated Financial Statements reflects Symantec’s historical financial statements for the periods presented and does not reflect any adjustments related to the Sale and related events.
The “Website Security Disposal Group” column in the unaudited Pro Forma Condensed Consolidated Financial Statements is derived from the financial position and results of WSS and other corporate charges that are directly attributable to WSS. The “Other Pro Forma Adjustments” column in the unaudited Pro Forma Condensed Consolidated Balance Sheet reflects other effects of the Sale, including cash proceeds received at the close of the Sale, an approximate 27% equity interest in the common stock of DigiCert, estimated after-tax gain on the Sale, and estimated tax payable related to the Sale.
SYMANTEC CORPORATION
Pro Forma Condensed Consolidated Balance Sheet
As of June 30, 2017
(Dollars in millions, unaudited)
| Historical | Website Security Disposal Group |
Other Pro Forma Adjustments |
Pro Forma | |||||||||||||
| ASSETS |
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| Current assets: |
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| Cash and cash equivalents |
$ | 2,306 | $ | (15 | ) | $ | 959 | (1) | $ | 3,250 | ||||||
| Accounts receivable, net |
468 | (48 | ) | - | 420 | |||||||||||
| Other current assets |
399 | (18 | ) | - | 381 | |||||||||||
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| Total current assets |
3,173 | (81 | ) | 959 | 4,051 | |||||||||||
| Property and equipment, net |
895 | (8 | ) | - | 887 | |||||||||||
| Intangible assets, net |
2,892 | (67 | ) | - | 2,825 | |||||||||||
| Goodwill |
8,638 | (605 | ) | - | 8,033 | |||||||||||
| Equity investments |
158 | - | 160 | (2) | 318 | |||||||||||
| Other long-term assets |
112 | (2 | ) | - | 110 | |||||||||||
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| Total assets |
$ | 15,868 | $ | (763 | ) | $ | 1,119 | $ | 16,224 | |||||||
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| LIABILITIES AND STOCKHOLDERS’ EQUITY |
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| Current liabilities: |
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| Accounts payable |
$ | 121 | $ | (1 | ) | $ | 12 | (3) | $ | 132 | ||||||
| Accrued compensation and benefits |
206 | (5 | ) | - | 201 | |||||||||||
| Deferred revenue |
2,329 | (250 | ) | - | 2,079 | |||||||||||
| Income taxes payable |
22 | - | 152 | (4) | 174 | |||||||||||
| Other current liabilities |
443 | (2 | ) | - | 441 | |||||||||||
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| Total current liabilities |
3,121 | (258 | ) | 164 | 3,027 | |||||||||||
| Long-term debt |
6,202 | - | - | 6,202 | ||||||||||||
| Long-term deferred revenue |
465 | (58 | ) | - | 407 | |||||||||||
| Deferred income tax liabilities |
2,332 | - | - | 2,332 | ||||||||||||
| Long-term income taxes payable |
261 | - | - | 261 | ||||||||||||
| Other long-term obligations |
98 | (2 | ) | - | 96 | |||||||||||
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| Total liabilities |
12,479 | (318 | ) | 164 | 12,325 | |||||||||||
| Total stockholders’ equity |
3,389 | 510 | (5) | 3,899 | ||||||||||||
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| Total liabilities and stockholders’ equity |
$ | 15,868 | $ | (318 | ) | $ | 674 | $ | 16,224 | |||||||
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SYMANTEC CORPORATION
Pro Forma Condensed Consolidated Statements of Operation
Fiscal Year Ended March 31, 2017
(In millions, except per share data, unaudited)
| Historical | Website Security Disposal Group |
Other Pro Forma Adjustments |
Pro Forma | |||||||||||||
| Net revenues |
$ | 4,019 | $ | 422 | $ | - | $ | 3,597 | ||||||||
| Cost of revenues |
853 | 60 | - | 793 | ||||||||||||
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| Gross profit |
3,166 | 362 | - | 2,804 | ||||||||||||
| Operating expenses: |
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| Sales and marketing |
1,459 | 89 | - | 1,370 | ||||||||||||
| Research and development |
823 | 35 | - | 788 | ||||||||||||
| General and administrative |
564 | 3 | - | 561 | ||||||||||||
| Amortization of intangible assets |
147 | 28 | - | 119 | ||||||||||||
| Restructuring, transition, and other |
273 | 4 | - | 269 | ||||||||||||
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| Total operating expenses |
3,266 | 159 | - | 3,107 | ||||||||||||
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| Operating income (loss) |
(100 | ) | 203 | - | (303 | ) | ||||||||||
| Interest income |
21 | - | - | 21 | ||||||||||||
| Interest expense |
(208 | ) | - | - | (208 | ) | ||||||||||
| Other income, net |
25 | 3 | 2 | (6) | 24 | |||||||||||
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| Income (loss) from continuing operations before income taxes |
(262 | ) | 206 | 2 | (466 | ) | ||||||||||
| Income tax expense (benefit) |
(26 | ) | 63 | 1 | (7) | (88 | ) | |||||||||
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| Income (loss) from continuing operations |
$ | (236 | ) | $ | 143 | $ | 1 | $ | (378 | ) | ||||||
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| Loss from continuing operations per share — basic and diluted |
$ | (0.38 | ) | $ | (0.61 | ) | ||||||||||
| Weighted-average shares outstanding — basic and diluted |
618 | 618 | ||||||||||||||
| Cash dividends declared per common share |
$ | 0.30 | $ | 0.30 | ||||||||||||
SYMANTEC CORPORATION
Pro Forma Condensed Consolidated Statements of Operation
For the Three Months Ended June 30, 2017
(In millions, except per share data, unaudited)
| Historical | Website Security Disposal Group |
Other Pro Forma Adjustments |
Pro Forma | |||||||||||||
| Net revenues |
$ | 1,175 | $ | 103 | $ | - | $ | 1,072 | ||||||||
| Cost of revenues |
257 | 16 | - | 241 | ||||||||||||
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| Gross profit |
918 | 87 | - | 831 | ||||||||||||
| Operating expenses: |
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| Sales and marketing |
433 | 20 | - | 413 | ||||||||||||
| Research and development |
233 | 9 | - | 224 | ||||||||||||
| General and administrative |
149 | 1 | - | 148 | ||||||||||||
| Amortization of intangible assets |
59 | 7 | - | 52 | ||||||||||||
| Restructuring, transition, and other |
88 | 14 | - | 74 | ||||||||||||
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| Total operating expenses |
962 | 51 | - | 911 | ||||||||||||
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| Operating income (loss) |
(44 | ) | 36 | - | (80 | ) | ||||||||||
| Interest income |
6 | - | - | 6 | ||||||||||||
| Interest expense |
(84 | ) | - | - | (84 | ) | ||||||||||
| Other expense, net |
(12 | ) | (1 | ) | (3 | )(6) | (14 | ) | ||||||||
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| Income (loss) from continuing operations before income taxes |
(134 | ) | 35 | (3 | ) | (172 | ) | |||||||||
| Income tax expense (benefit) |
(24 | ) | 11 | (1 | )(7) | (36 | ) | |||||||||
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| Income (loss) from continuing operations |
$ | (110 | ) | $ | 24 | $ | (2 | ) | $ | (136 | ) | |||||
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| Loss from continuing operations per share — basic and diluted |
$ | (0.18 | ) | $ | (0.22 | ) | ||||||||||
| Weighted-average shares outstanding — basic and diluted |
609 | 609 | ||||||||||||||
| Cash dividends declared per common share |
$ | 0.075 | $ | 0.075 | ||||||||||||
NOTES TO UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
| (1) | Reflects the cash proceeds in connection with the Sale |
| (2) | Reflects approximately 27% equity interest in the common stock of DigiCert with an estimated fair value of $160 million |
| (3) | Reflects estimated transaction costs incurred in connection with the Sale |
| (4) | Reflects an estimated $152 million payable for U.S. and foreign income taxes and indirect taxes resulting from the Sale |
| (5) | Reflects the estimated after-tax gain of $510 million related to the Sale |
| (6) | Reflects the Company’s approximate 27% equity interest in the income (loss) of DigiCert had the transaction closed on April 2, 2016 |
| (7) | Reflects the outside basis income tax expense (benefit) related to the Company’s approximate 27% equity interest in the income (loss) of DigiCert had the transaction closed on April 2, 2016 |