What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2021-05-21 compared with 2020-05-28 · 229 added, 134 removed, 42 unchanged (90% of the section changed)

NortonLifeLock is a trusted brand and leading provider of Cyber Safety solutions for consumers worldwide.

Our business is built around the prevention, detection and restoration of potential damages caused by cyber criminals.

The need for NortonLifeLock’s products is more critical than ever in today’s increasingly digital world, as people transition to remote work environments, conduct virtual meetings, and engage in online gaming, streaming, shopping, telemedicine and numerous other online transactions and activities on a daily basis.

Vision & Mission

Our vision is to protect and empower people to live their digital lives safely.

Our mission is to build a comprehensive and easy-to-use integrated portfolio that prevents, detects, and responds to cyber threats and cyber crimes in today’s digital world.

Protecting people is what inspires us, and our people are at the core of what we do.

We seek to attract talent that embraces the following values:

think consumer first – ensure the customer’s voice is heard and consider how our actions benefit our customers’ digital lives.

• Be Empowered:

own it – take initiative to lead and speak up when we see an opportunity to delight our customers or improve the business, regardless of job title.

• Communicate:

be open and authentic – being true to ourselves and our mission;

we build cross-functional and inclusive connections to stay aligned and move faster, and we operate with integrity.

• Execute - smart and scrappy:

be a leader, quick to adapt, willing to take risks and put yourself out there;

be agile in adapting to meet new challenges and continue a constant learning journey.

• Win Together:

innovate and grow – welcome diverse perspectives and seek and act on feedback;

champion the unique value of every individual;

diversity fuels innovation.

Company Overview

NortonLifeLock has the largest Consumer Cyber Safety platform in the world, empowering nearly 80 million users in more than 150 countries.

Our business is built around consumers, we are the trusted and number one top of mind brand in consumer Cyber Safety, according to the 2020 NortonLifeLock brand tracking study.

Today’s world is increasingly digital, and this digital world has changed the way we live our lives every day.

Between the massive shift to working and learning from home, and the ever-growing utility and opportunities to play and transact online, people’s digital lives have become the norm.

With each new digital interaction comes increased risk for consumers, as cyber criminals look to take advantage of this accelerating trend.

NortonLifeLock stands between today’s cyber criminals and consumers, helping secure the devices, identities, online privacy, and home and family needs of nearly 50 million consumers globally.

We are a trusted ally for our customers in a complex digital world and are committed to advancing our mission of protecting each element of their digital lives.

We offer subscription-based Cyber Safety solutions to consumers under the NortonLifeLock brand, with our integrated cyber safety platform Norton 360.

Norton 360’s integrated experience, and substantial scale and reach, provide extensive cyber safety coverage to our members.

In addition to Norton 360, we also offer standalone products for device security, privacy, identity, and home and family protection in certain channels and geographies.

We sell our products primarily direct-to-consumer through our in-house e-commerce platform, and indirectly through partner relationships with retailers, telecom service providers, hardware original equipment manufacturers (OEMs), and employee benefit providers.

This is why we view ourselves as a trusted ally for our customers in a complex digital world and are committed to advancing our mission of protecting each element of their digital lives.

We maintain a global, multi-channel direct acquisition and brand marketing program.

This program is designed to grow our customer base by increasing brand awareness and understanding of our products and services, and maximizing our global reach to prospective customers.

We help prevent, detect and restore potential damages caused by many cyber criminals.

We also make it easy for consumers to find, buy and use our products and services.

To this end, we sell subscription-based Cyber Safety solutions primarily direct-to-consumer through our Norton and Avira websites, and indirectly through partner relationships with retailers, telecom service providers, hardware original equipment manufacturers (OEMs), and employee benefit providers.

Most of our subscriptions are sold on either annual or monthly terms.

As of April 3, 2020, we served over 20 million direct customers and approximately 30 million more through partners or other indirect channels.

Our annual retention rate was 85% for fiscal 2020.

Please see “Performance Metrics” under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Item 7.

Our transformation into a pure-play consumer company follows the sale of our enterprise assets and name change from Symantec Corporation to NortonLifeLock Inc.

Founded in 1982, we formerly did business under the Symantec Corporation name as the Consumer Cyber Safety division.

The sale of our Enterprise Security assets to Broadcom Inc.

(Broadcom) and the sale of our ID Analytics business to LexisNexis Risk Solutions, part of RELX Inc., were completed in fiscal year 2020.

Industry Overview

Cyber crime, and the ways in which cyber criminals target consumers, continue to evolve along with behaviors and technology.

Cyber crime encompasses any crime committed digitally over the internet and includes crimes where (i) malicious software or unauthorized access is detected on a device, network or online account (including email, social media, online banking, online retail, etc.);

(ii) an individual is digitally victimized through a data breach, cyber theft, cyber extortion, or fraud (stolen personally identifiable information, identity theft);

or (iii) online stalking, bullying, or harassment is inflicted.

As cyber crime becomes an intensifying threat to our world, consumers are increasingly concerned.

Our annual NortonLifeLock Cyber Safety Insights Report evaluates current cyber crime trends to provide a snapshot of the impact of cyber crime.

According to the 2019 report, which is based on research conducted online by The Harris Poll on behalf of us, almost 500 million consumers have been the victim of a cyber crime, with nearly 350 million in the last year alone.

While many report having taken at least one step to protect their online activities and personal information, most people are taking only basic steps (clearing cookies, limiting information shared on social media) and few are going to greater lengths such as using anonymous payment methods, deleting social media accounts, or using a virtual private network (VPN).

For more insights or information related to our NortonLifeLock Cyber Safety Insights Report, please visit https://us.norton.com/nortonlifelock-cyber-safety-report .

The information contained, or referred to, on our website, including our Cyber Safety Insights Report, is not part of this annual report unless expressly noted.

Cyber Safety Solutions and Services

We help consumers by providing Cyber Safety subscription solutions with an integrated user experience under the NortonLifeLock brand, called Norton 360.

Our Norton 360 subscriptions include multiple levels of membership tiers that incorporate solutions from each of our Cyber Safety categories:

Device Security, Identity Protection, Online Privacy, and Home and Family Safety.

We also provide these solutions as standalone products in certain channels and geographies.

Our Consumer Cyber Safety solutions include the following offerings:

Device Security (Norton Security):

Our Norton Security solution provides real-time protection for PCs, Macs and mobile devices against malware, viruses, adware, ransomware and other online threats.

It monitors and blocks unauthorized traffic from the internet to the device to help protect private and sensitive information when customers are online.

For mobile devices, Norton Security alerts customers of risky apps, safeguards against fraudulent and malicious websites, identifies Wi-Fi networks that are under attack, enables stolen device recovery, and blocks unwanted spam and potential fraud calls.

Norton Security includes 24x7 support by trained support agents.

As of April 2, 2021, we have nearly 80 million total users, which come from direct, indirect, and freemium channels.

Of the total users, we have 23 million direct customers with whom we have a direct billing relationship, and we have 30 million free users.

• Direct-to-consumer channel:

We use advertising and direct response marketing to elevate our brand, attract new customers, and generate significant demand for our services.

We have a direct billing relationship with these customers.

• Indirect partner distribution channels:

We use strategic and affiliate partner distribution channels to refer prospective customers to us and expand our reach to our partners’ and affiliates’ customer bases.

We developed and implemented a global partner sales organization that targets new, as well as existing, partners to enhance our partner distribution channels.

These channels include retailers, telecom service providers, hardware OEMs, and employee benefit providers.

Physical retail and OEM partners represent a small portion of our distribution, which minimizes the impacts of supply chain disruptions.

• Freemium channel:

With the acquisition of Avira, we have expanded our go-to-market with a freemium channel.

We use free versions of our products to reach the broadest set of customers globally and bring Cyber Safety to a larger audience, especially in international markets.

The free solution offers a baseline of protection and presents premium functionalities based on the risk profile and device-type of the user.

The user can choose to add specific premium features or upgrade to our Norton 360 integrated platform, at which point, becoming a member of our paid customer base.

As is typical for many consumer technology companies, portions of our business are impacted by seasonality.

However, we believe the net impact to our business is limited.

Seasonal behavior in orders primarily reflects consumer spending patterns where our fiscal third and fourth quarters are higher due to the holidays in our third quarter, as well as follow-on holiday purchases and the U.S.

tax filing season in our fourth quarter.

Revenue generally reflects similar seasonal patterns but to a lesser extent than orders because of our subscription business model and because a large portion of our in-period revenues are recognized ratably from our deferred revenue balance.

Our strategy is focused on profitable growth, allowing consumers to experience Cyber Safety.

To fuel our growth, our consumer-centric strategy is to provide a comprehensive and easy-to-use integrated platform, which we have built in-house.

By combining and leveraging our entire portfolio of Norton, LifeLock, and Avira offerings, we are able to deliver an industry-leading set of Cyber Safety solutions.

The key elements of our strategy include the following:

• Extend our leadership position through continued enhancement of our solutions and services:

The Cyber Safety industry is large and expanding, which we believe provides a significant growth opportunity.

Our strategy is to grow our business by investing in research and development and pursuing acquisitions, where appropriate, to expand the solutions and services we offer into new cohorts, territories and sectors.

We believe there are many additional areas where we can both offer new solutions, as well as use our core capabilities and our integrated platform to reach new customers and markets globally.

• Grow our customer base through multiple channels:

We have multiple go-to-market channels to reach new customers globally, including direct-to-customer, indirect partnerships, and freemium.

We intend to leverage our expertise in digital marketing, as well as existing and new strategic partnerships, to grow our customer base.

We believe that continued investments in these areas, as well as our product offerings and infrastructure, will allow us to further enhance our leading brands and superior products, increase awareness of our consumer services and enhance our ability to efficiently acquire new customers.

• Continue our focus on customer retention:

We plan to invest in increasing customer retention by optimizing and expanding the value we provide to customers.

We aim to continue to increase customer engagements through actionable alerts, education on timely topics, and introducing new product capabilities.

We plan to also continue investing in enhancing both desktop and mobile customer experiences throughout a customer’s journey with NortonLifeLock, from purchase, to onboarding and beyond.

We aim to build long-term relationships with our customers, and to provide our customers with the peace of mind and confidence they need to protect their digital lives.

• Increase sales to existing customers:

We believe strong customer satisfaction will provide us with the opportunity to engage customers in new services offerings.

We maintain the Norton 360 platform, with multiple tiers of membership, and we are actively engaging with customers of standalone products to move them into a Norton 360 membership.

We also believe a substantial opportunity exists to increase the penetration of our premium-level consumer solutions.

Over time, we plan to drive further growth as we add additional offerings and services for our customers.

• Draw strength from our world-class customer service support:

We have the largest consumer Cyber Safety customer support organization in the world.

Our global support team seeks to ensure the voice of the consumer is heard, and that we put our customers first.

We leverage frequent communication and feedback from our customers to continually improve our solutions and services.

• Leverage our global brands to drive growth:

We will work to keep building our trusted brands in markets globally as we strive to bring protection and empowerment to all consumers when it comes to their digital lives.

According to our most recent research, Norton has 89% global brand awareness.

We are also the best positioned brand in device security and #1 top of mind brand in consumer Cyber Safety, according to the 2020 NortonLifeLock Brand Impact study.

Our Cyber Safety Solutions and Services

Our vast portfolio of products and services are developed from consumer insights to help us bring to market real solutions to real problems, and to raise the overall awareness of consumer Cyber Safety across all audiences.

We continuously target to release new products and features at an accelerated pace, and find synergies to integrate current and future technology acquisitions.

Our full portfolio provides protection across three Cyber Safety categories in multiple channels and geographies, including security, identity, and privacy.

We have built a technology platform that brings together software and service capabilities into a comprehensive and easy-to-use integrated platform – it is called Norton 360.

The Norton 360 integrated platform provides extensive Cyber Safety coverage to our members, by delivering Cyber Safety subscription solutions with industry leading features, coupled with an integrated user experience.

Through our platform, we aim for simplicity and peace of mind for the consumers.

We also complement this Cyber Safety platform by adding adjacent trust-based solutions, which enables people to live their digital lives without compromising their security, identity, or privacy.

We protect and empower consumers by providing solutions and services in two main ways:

• Comprehensive membership plans:

Providing a complete Cyber Safety portfolio of solutions for a membership fee.

Plans are offered through Norton 360 subscriptions, which include multiple levels of membership tiers that incorporate solutions from each of our key Cyber Safety categories:

Security, Identity Protection, and Online Privacy.

We also offer solutions that target specific needs of consumers such as Norton Family and Norton 360 for Gamers.

Norton Family brings the protection and security of our products to every member of the family across multiple devices and platforms.

Norton 360 for Gamers is designed by gamers to help protect gamers, we aim to provide the protection and features gamers need the most, while minimizing interruptions to gaming.

• Point solutions:

Individual, stand-alone products and services in security, identity, and privacy – both free and paid solutions.

We are positioned across three key Cyber Safety categories:

• Security (Norton and Avira offerings):

Our Norton 360 and Avira offerings provide real-time protection for PCs, Macs and mobile devices against malware, viruses, adware, ransomware and other online threats.

They monitor and block unauthorized traffic from the internet to the device to help protect private and sensitive information when customers are online.

For mobile devices, Norton 360 for Mobile alerts customers of risky apps, safeguards against fraudulent and malicious websites, identifies Wi-Fi networks that are under attack, enables stolen device recovery, and blocks unwanted spam and potential fraud calls.

Norton 360 includes 24x7 support by trained support agents.

We provide on-call support and offer a money-back guarantee if we cannot remove viruses from infected devices through our Virus Protection Promise.

2 unchanged sentences

We monitor events that may present a risk of identity theft, such as new account openings and applications.

If we detect that a customer’s personally identifiable

information is being used, we deliver notifications and alerts to our customers about potentially suspicious activity.

If we detect that a customer’s personally identifiable information is being used, we deliver notifications and alerts to our customers about potentially suspicious activity.

In the event of identity theft, we assign an Identity Restoration Specialist to work directly with customers to help restore their identities.

Customers are further protected by our Million Dollar Protection Package, which provides reimbursement for stolen funds and coverage for personal expenses.

Online Privacy (Norton Secure VPN and SurfEasy VPN):

As people are exchanging more sensitive information through digital channels - be it personal healthcare information to enable tele-health or financial information for personal accounting, having a VPN has become even more crucial.

Our Norton Secure VPN and SurfEasy VPN enhance security and online privacy by providing an encrypted data tunnel.

Our Dark Web Monitoring product looks for personal information of our Norton 360 members on the Dark Web.

We currently offer this product in many countries internationally and continue to add new countries each year.

• Online Privacy (VPN, Privacy Monitor Assistant, Home Title Protect):

As people are exchanging more sensitive information through digital channels, such as personal healthcare information to enable tele-health or financial information for personal accounting, having a VPN has become even more crucial.

Our VPN solution enhances security and online privacy by providing an encrypted data tunnel.

This allows customers to securely transmit and access private information such as passwords, bank details and credit card numbers when using public Wi-Fi on PCs, Macs and mobile iOS and Android devices.

Our VPN service allows customers to browse the Web anonymously to protect their online privacy and prevent tracking by online advertisers and other companies.

Our VPN service allows customers to browse the Web anonymously to protect their

online privacy and prevent tracking by online advertisers and other companies.

Customers can also change their virtual location when they are traveling internationally to allow them to connect to their favorite apps, websites and online streaming services as if they are in their home country.

Home and Family (Norton Family):

As entire households now spend hours online, whether for school, work, or personal use, protecting the home and family in a simple way is even more of a need.

Norton Family brings the protection and security of our products to every member of the family across multiple devices and platforms.

Norton Family also provides Parental Controls tools for parents to monitor kids’ online activities, including videos watched, websites visited, terms searched, and apps downloaded.

Parents can manage how much time kids spend online and block access to inappropriate websites.

Norton Family also provides GPS location monitoring for mobile devices and content filtering for PCs.

Our goal is to be the trusted cyber security partner for consumers across the globe and enable them to manage their digital lives safely.

The threat landscape is larger, more complicated and more connected than ever before, exposing consumers to an increased risk to their security, online privacy, home networks and identities.

As the risks to consumers continue to expand from device-based attacks to more sophisticated threats such as fraud, ransomware, identity theft and privacy risks, our solutions have evolved to provide a multi-layered approach in protecting against threats, detecting attacks and helping customers manage across their digital footprint, including their technology, applications, networks and identities.

The cornerstone of our strategy is to provide consumers with a platform that brings together superior software and service capabilities to enable all facets of Cyber Safety, including device security, identity protection, online privacy, and home and family safety.

By combining and leveraging our portfolio of Norton and LifeLock offerings, we are able to deliver an industry-leading set of Cyber Safety solutions.

The key elements of our strategy to achieve this goal include the following:

Extend our leadership position through continued enhancement of our solutions and services.

The Cyber Safety industry is large and expanding, which provides a significant growth opportunity.

We intend to grow our business by investing in research and development and making acquisitions to expand the solutions and services we offer into new cohorts, territories and sectors.

We believe there are many additional areas where we can both offer new solutions, as well as use our core capabilities to deliver offerings to new customers and markets.

Grow our customer base.

We intend to leverage our expertise in digital marketing, as well as existing and new strategic partnerships, to grow our customer base.

We believe that continued investments in these areas, as well as our product offerings and infrastructure, will allow us to further enhance our leading brand and superior products, increase awareness of our consumer services and enhance our ability to efficiently acquire new customers.

Continue our focus on customer retention.

We plan to invest in increasing customer retention by optimizing and expanding the value we provide through actionable alerts, education on timely topics, and new capabilities.

We aim to provide our customers with peace of mind and convenience, demonstrating the value of our solutions.

We plan to offer an integrated mobile application experience to improve customer experience from purchase, through onboarding and use.

We have a global customer services organization, and we leverage frequent communication and feedback from our customers to continually improve our solutions and services.

Increase sales to existing customers.

We believe the strong customer satisfaction we maintain with our customers provides us with the opportunity to engage them in new services offerings.

We introduced Norton 360 in April 2019, with various tiers of membership, and we are actively engaging with customers of standalone products to move them into a Norton 360 membership.

We also believe a substantial opportunity exists to increase the penetration of our premium-level consumer solutions.

Over time, we plan to add additional offerings and services for our customers to drive further growth.

Sales and Marketing

We execute a global, multi-channel direct acquisition and brand marketing program.

This program is designed to grow our customer base by increasing brand awareness and understanding of our superior products, as well as maximizing our reach to prospective customers.

Direct-to-consumer.

We use advertising and direct response marketing to elevate our brand, attract new customers, and generate significant demand for our services.

This program drives most bookings.

We use a variety of marketing programs to target customers, including digital marketing and online display advertising;

paid search and search-engine optimization;

radio, television, and print advertisements;

direct mail campaigns;

press coverage for our company and our services;

third-party endorsements;

and education programs.

Indirect partner distribution channels .

We use strategic and affiliate partner distribution channels to refer prospective customers to us and expand our reach to our partners’ and affiliates’ customer bases.

We have developed and implemented a global partner sales organization that targets new, as well as existing, partners to enhance our partner distribution channels.

These channels include:

retailers, telecom service providers, hardware OEMs, and employee benefit providers.

Physical retail and OEM partners represent a small portion of our distribution, which minimizes the impacts of supply chain disruptions.

Our Privacy Monitor Assistant is an on-demand, white glove service where our agents help our members delete personal information from Data brokers online.

Our Home Title Protect product detects fraud and notifies members if we find changes made to their Home Title.

If a member becomes a victim of identity theft, we provide a dedicated Identity Restoration Specialist to work with the customer until their case is closed.

Innovation and Research & Development

NortonLifeLock has a long history of innovation, and we plan to continue to invest in research and development to drive our long-term success.

As cyber threats evolve, we are focused on delivering a portfolio that protects each element of our customers’ digital lives.

To do this, we engage and listen to our customers, and we embrace innovation by deploying a global research and development strategy across our Cyber Safety platform.

Our engineering and product management teams are focused on delivering new versions of existing offerings, as well as developing entirely new offerings to drive the company’s global leadership in Cyber Safety.

We are committed to our innovation and research & development efforts.

Norton Labs, a global team of experts, is leading the company’s future technology and helping guide the consumer cybersecurity industry.

Within Norton Labs, our global technology research organization is focused on applied research projects, with the goal of rapidly creating new products to address consumer trends and grow the business, including defending consumer digital privacy and identity.

We also have a global threat response and security technology organization that is made up of leading threat and security researchers, supported by advanced systems to innovate security technology and threat intelligence.

Industry Overview & Market Opportunity

Cyber Safety is a growing market, fueled by the increase in activities online over the years, as well as the years ahead.

The core markets that we participate in are security, identity, and privacy.

We believe the Cyber Safety market will continue to expand beyond these core markets and grow significantly – driven by the growing number of people connected to the Internet who have a digital life.

The cyber threat landscape is larger and more complicated than ever before, exposing consumers to an increased risk to their digital lives.

The digitization of the world and the overlap between the physical and digital world is growing at a fast pace.

New technologies, smart devices, digital identities, and an increasingly more connected world means consumers will encounter a range of new Cyber Safety challenges.

Consumer demands and behaviors are rapidly changing and driving more activities online, from shopping, socializing, working, banking, to other activities in healthcare, entertainment, and so much more.

Almost every aspect of a person’s life has a digital component.

Unfortunately, many of those activities are left unprotected, and attackers are exploiting this larger opportunity and the inherent security and privacy vulnerabilities.

Cyber criminals have not only expanded their reach, but the sophistication of digital threats and attacks are becoming increasingly more consumer-related.

Cyber crime, and the ways in which cyber criminals target consumers, continue to evolve along with behaviors and technology.

Cyber crime encompasses any crime committed digitally over the internet and includes crimes where (i) malicious software or unauthorized access is detected on a device, network or online account (such as email, social media, online banking, online retail, gaming, online entertainment, etc.), and unauthorized access or connection to cloud service accounts;

(ii) an individual is digitally victimized through a data breach, cyber theft, cyber extortion, or fraud (stolen personally identifiable information, identity theft, etc.);

(iii) online stalking, bullying, or harassment is inflicted;

or (iv) attacks related to privacy or disinformation (such as online tracking protection, identity impersonation, disinformation on social media, DeepFakes, non-trustworthy WiFis, EvilTwin attacks, etc.).

As cyber crime becomes an intensifying threat to our world, consumers are increasingly concerned.

Our annual Norton Cyber Safety Insights Report examines the impact of cyber crime and consumers’ online behaviors and concerns related to their online security, privacy and identity.

According to the 2021 report, which is based on research conducted online by The Harris Poll on behalf of us, nearly 330 million people across 10 countries were victims of cyber crime and more than 55 million people were victims of identity theft.

Cyber crime victims collectively spent nearly 2.7 billion hours trying to resolve their issues.

For more insights or information related to our Norton Cyber Safety Insights Report, please visit https://us.norton.com/nortonlifelock-cyber-safety-report .

Competitive Landscape

We operate in a highly competitive and rapidly evolving business environment.

2 unchanged sentences

Our principal competitors are set forth below:

Device Security.

Our principal competitors in this market are Avast, Kaspersky, McAfee, Microsoft, Sophos, and Trend Micro.

Our principal competitors in this market are Avast, Kaspersky, McAfee, Microsoft, Bitdefender, and Trend Micro.

• Identity Protection:

Our principal competitors in this market are credit bureaus Equifax, Experian, and TransUnion, as well as certain credit monitoring and identity theft protection solutions from others such as Allstate, Credit Karma, and McAfee.

• Online Privacy:

Our principal competitors in this market are Avast, Kape, ExpressVPN, McAfee, NordVPN, and Pango.

Home and Family.

Our principal competitors in this market are Avast, Life360, and McAfee.

Our principal competitors in this market are Avast, Kape, ExpressVPN, NordVPN, and Pango.

• Other Competitors:

In addition to competition from large consumer security companies such as Avast and McAfee, we also face competition from smaller companies that may develop competing products.

We believe we compete favorably with our competitors on the strength of our technology, people, product offerings and integration across all the Cyber Safety pillars.

In addition to competition from large consumer security companies such as Avast and McAfee, we also face competition from smaller companies that may develop competing products, emerging competition from ISPs, operating systems, insurance companies, and financial service organization.

We believe we compete favorably with our competitors on the strength of our technology, people, product offerings, and integration across all of the key Cyber Safety categories.

However, some of our competitors have substantially greater financial, technical, marketing, distribution, and other resources than we possess that afford them competitive advantages.

2 unchanged sentences

and introduce new solutions and respond to market developments and customer requirements more quickly than we can.

For more information on the risks associated with our competitors, please see “Risk Factors” in Item 1A.

Research and Development

As cyber threats evolve, we are focused on delivering a portfolio that protects each element of our customers’ digital lives.

To do this, we embrace innovation and have developed a global research and development strategy across our Cyber Safety platform.

We have a technology research organization focused on applied research projects, with the goal of rapidly creating new products to address consumer trends and grow the business, including defending consumer digital privacy.

Also, NortonLifeLock’s threat response and security technology organization is a global organization made up of leading threat and security researchers supported by advanced systems to innovate security technology and threat intelligence as the consumer ally for Cyber Safety, protecting our customers against known and emerging threats.

NortonLifeLock has a long history of innovation and we plan to invest in research and development to drive our long-term success.

For more information on the risks associated with our competitors, please see “Risk Factors” in Item 1A included in this Annual Report on Form 10-K.

Environmental, Social and Governance (ESG)

We bring together our people, expertise, and technologies to support environmental, social, and governance (ESG) priorities that foster a safer and more sustainable future.

• Environment:

we have a sharp focus on environmental performance.

we are proud to support the communities where our team members live and work.

• Governance:

we operate with integrity with everything we do and celebrate diversity as a driver of innovation.

Our commitment to ESG is a critical anchor of our company’s mission and operating philosophy.

Our ESG mission is to bring together our team, expertise, and powerful technology to build a safe, inclusive, and sustainable future for people, their information, and the digital world.

Setting strategic, achievable, and business-aligned corporate responsibility objectives helps to guide our work and improves our company performance.

We aligned our objectives with the company’s business goals and focused on the unique impact we can make on the world.

Our objectives include:

• Data Privacy and Protection:

Raise awareness of NortonLifeLock as a privacy leader.

• Education and Training for Cyber Safety:

Leverage NortonLifeLock’s leading expertise and technology in Cyber Safety to protect communities.

• Diversity, Equity & Inclusion:

Invest in high-impact nonprofits to bring more women and under-represented groups into cybersecurity and tech.

• Volunteering & Giving:

Drive opportunities for employee volunteering and giving and increase employee participation rate.

• Environmental Stewardship:

Establish NortonLifeLock as an environmentally responsible business.

Our annual ESG and Corporate Responsibility Report can be found via the NortonLifeLock website at https://www.nortonlifelock.com/about/corporate-responsibility .

Human Capital Management

At NortonLifeLock, our mission is to provide solutions for consumer Cyber Safety that defend against ever-evolving cyber threats, in a world that’s more connected than ever before.

Our success in helping achieve this mission depends, in a large part, on the success of our employees.

We strive to be a diverse, vibrant community with strong values and a shared commitment to each other, the work we do, and the world we all share.

• General Employee Demographics:

As of April 2, 2021, we employed more than 2,800 employees in 26 countries worldwide, 1,216 in the U.S.

and 1,592 in the rest of world.

None of our U.S.

employees are represented by a labor union or covered by a collective bargaining agreement.

We are focused on attracting, developing, rewarding and retaining a diverse global team.

Our board is invested in us;

the Compensation and Leadership Development Committee of our Board of Directors oversees workforce and senior management compensation and development, and our Board of Directors is invested in our talent management strategies, culture, leadership quality development and overall engagement.

• Diversity, Equity and Inclusion (DEI):

Our mission is to increase our global representation of underrepresented groups at all levels (diversity), where everyone has an opportunity for development and advancement (equity) and is able to bring their whole selves to work and feel valued every day (inclusion).

This mission is built upon four foundational pillars:

(1) measurement and accountability;

(2) fostering an inclusive environment;

(3) diversifying our workforce;

and (4) employee development and retention, which are designed to support our ability to attract, retain and develop the best talent in cybersecurity.

Diversifying our workforce was a strategic talent goal for fiscal year 2021, and we have made progress in increasing representation.

As of April 2, 2021, women represented 33% of our workforce and held positions in 30% of our leadership.

In addition, as of April 2, 2021, women represented 44% of our Board of Directors.

In support of our Diversifying our Workforce pillar, we became approved as a Work180 partner company, a women-focused recruitment site that only lists career opportunities from employers that support diversity, inclusion, and flexibility.

In addition to WORK180, we post positions on several diverse recruiting sites, including Black Tech Jobs, Jobs for Her, and Women Who Code.

As part of ongoing focus on employee and development, we have participated in McKinsey & Company’s Black Leadership Academy since November 2020 to help accelerate the progression of Black leaders in the company.

Participants attended either a three-month Black Executive Leadership Program, designed for senior leaders looking to further develop their leadership capabilities, or a six-month Management Accelerator, designed to support ongoing career progression for high performing early to mid-career managers.

• NLOK Communities:

In FY21, we launched seven employee resource groups, called NLOK Communities, as a platform for communities of employees to come together as allies, to learn, support, mentor, and celebrate with one another.

We believe these groups play a vital role in helping create an inclusive work culture where everyone feels seen, heard, respected, and valued.

• Employee Development, Engagement and Training:

Feedback from our employees is critical in designing and refining our human capital management strategy.

We regularly seek both candid and structured input from our employees by conducting a quarterly Ngage pulse survey on a targeted topic.

We are invested in providing a productive, supportive, and inclusive environment for our teams with a focus on learning and development across all levels where flexibility and choice are guiding principles.

• Human Capital Governance:

We partner closely with our Board of Directors and the Compensation and Leadership Development Committee on our strategies and objectives related to talent management, talent acquisition, leadership development, retention and succession, DEI, and employee engagement.

Intellectual Property

13 unchanged sentences

Any unauthorized disclosure or use of our intellectual property could make it more expensive to do business and harm our operating results.

Companies in the technology industry may own a large number of patents, copyrights, and trademarks and may frequently request license agreements, threaten litigation, or file suit against us based on allegations of infringement or other violations of

intellectual property rights.

From time to time, we face, and we expect to face in the future, allegations that we have infringed the trademarks, copyrights, patents, and other intellectual property rights of third parties, including our competitors.

As we face increasing competition and as our business grows, we may face more claims of infringement.

For more information on the risks associated with our intellectual property, please see “Risk Factors” in Item 1A.

Third-Party Service Providers

We are heavily reliant on our technology and infrastructure to provide our products and services to our customers.

For example, we host many of our products using third-party data center facilities, and we do not control the operation of these facilities.

In addition, our endpoint security solution has historically relied upon certain threat analytics software engines and other software (Engine-Related Services) that have been developed and provided by engineering teams that have transferred to Broadcom as part of the Broadcom sale.

The technology, including source code, at issue is shared, and pursuant to the terms of the Broadcom sale, we retain rights to use, modify, enhance and create derivative works from such technology.

Broadcom has committed to provide these Engine-Related Services under a transition services agreement, substantially to the same extent and in substantially the same manner, as has been historically provided.

For information on the risks associated with our dependence on such third-party service providers, please see “Risk Factors” in Item 1A.

In addition, companies in the technology industry may own a large number of patents, copyrights, and trademarks and may frequently request license agreements, threaten litigation, or file suit against us based on allegations of infringement or other violations of intellectual property rights.

For more information on the risks associated with our intellectual property, please see “Risk Factors” in Item 1A included in this Annual Report on Form 10-K.

Information Security and Risk Oversight

We maintain a comprehensive technology and cybersecurity program to ensure our systems are effective and prepared for information security risks, including regular oversight of our programs for security monitoring for internal and external threats to ensure the confidentiality and integrity of our information assets.

We regularly perform evaluations of our security program and continue to invest in our capabilities to keep customers, employees, and critical assets safe.

Our Head of Cyber Security is ultimately responsible for our cybersecurity program, which includes the implementation of controls aligned with industry guidelines and applicable statutes and regulations to identify threats, detect attacks, and protect these information assets.

We have implemented security monitoring capabilities designed to alert us to suspicious activity and developed an incident response program that includes periodic testing and is designed to restore business operations as quickly and as orderly as possible in the event of a breach.

In addition, employees participate in ongoing mandatory annual trainings and receive communications regarding the cybersecurity environment to increase awareness throughout the firm.

We also implement enhanced annual trainings for specific specialized employee populations, including secure coding training.

Recently, our Board of Directors established a Technology and Cybersecurity Committee of the Board with direct oversight to the Company’s (1) technology strategy, initiatives and investments and (2) key cybersecurity information technology risks against both internal and external threats.

The Technology and Cybersecurity Committee is comprised entirely of independent directors, two of whom have significant work experience related to information security issues or oversight.

Management will report security

instances to the committee as they occur, if material, and will provide a summary multiple times per year to the Committee.

Additionally, our Head of Cyber Security meets at least twice annually with the Board of Directors or the Audit Committee of the Board of Directors to brief them on technology and information security matters.

We carry insurance that provides protection against the potential losses arising from a cybersecurity incident.

In the last three years, the expenses we have incurred from information security breach incidences were immaterial.

This includes penalties and settlements, of which there were none.

Governmental Regulation

1 unchanged sentence

The personal information we process is subject to an increasing number of federal, state, local, and foreign laws regarding privacy and data security.

For information on the risks associated with complying with privacy and data security laws, please see “Risk Factors” in Item 1A.

As is typical for many consumer technology companies, our business is subject to seasonality.

Our third and fourth quarters are seasonally higher due to the holidays in our third quarter, and follow-on holiday purchases and the U.S.

tax filing season in our fourth quarter.

Corporate Responsibility

Our annual Corporate Responsibility Report can be found via the NortonLifeLock website at https://www.nortonlifelock.com/about/corporate-responsibility.

The information contained, or referred to, on our website, including our Corporate Responsibility Report, is not part of this annual report unless expressly noted.

As of April 3, 2020, we employed more than 3,600 people worldwide.

None of our employees are represented by a labor union or covered by a collective bargaining agreement.

We consider our relationship with employees to be good, and are focused on effective attraction, development, and retention of, and compensation and benefits to, human resource talent, including workforce and management development, diversity and inclusion initiatives, succession planning, and corporate culture and leadership quality, morale and development, which are vital to the success of our innovation-driven growth strategy.

The Compensation and Leadership Development Committee of our Board of Directors oversees workforce and senior management development and our Board of Directors monitors the culture of the company and leadership quality, morale and development.

For information on the risks associated with complying with privacy and data security laws, please see “Risk Factors” in Item 1A included in this Annual Report on Form 10-K.

Available information

Our Internet home page is located at https://www.nortonlifelock.com .

We make available free of charge our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to those reports as soon as reasonably practicable after we electronically file such material with the Securities and Exchange Commission (SEC) on our investor relations website located at https://investor.nortonlifelock.com/About/Investors/default.aspx/ .

The information contained, or referred to, on our website is not part of this annual report unless expressly noted.

The information contained, or referred to, on our website, including in any reports that are posted on our website, is not part of this annual report unless expressly noted.

The SEC maintains a website that contains reports, proxy and information statements, and other information regarding our filings at http://www.sec.gov .

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business