3 unchanged sentences
(Unaudited, in millions, except par value per share amounts)
−Removed: September 27, 2024 March 29, 2024
+Added: December 27, 2024 March 29, 2024
Current assets:
9 unchanged sentences
Total assets $ 15,363 $ 15,793
−Removed: LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
+Added: LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
15 unchanged sentences
3,000 shares authorized;
−Removed: 616 and 623 shares issued and outstanding as of September 27, 2024 and March 29, 2024, respectively
+Added: 616 and 623 shares issued and outstanding as of December 27, 2024 and March 29, 2024, respectively
Accumulated other comprehensive income (loss) ( 46 ) 11
1 unchanged sentence
Total stockholders’ equity (deficit) 2,151 2,140
−Removed: Total liabilities and stockholders’ equity (deficit) $ 15,471 $ 15,793
+Added: Total liabilities and stockholders’ equity $ 15,363 $ 15,793
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
2 unchanged sentences
(Unaudited, in millions, except per share amounts)
−Removed: Three Months Ended Six Months Ended
−Removed: September 27, 2024 September 29, 2023 September 27, 2024 September 29, 2023
+Added: Three Months Ended Nine Months Ended
+Added: December 27, 2024 December 29, 2023 December 27, 2024 December 29, 2023
Net revenues $ 986 $ 948 $ 2,925 $ 2,836
23 unchanged sentences
(Unaudited, in millions)
−Removed: Three Months Ended Six Months Ended
−Removed: September 27, 2024 September 29, 2023 September 27, 2024 September 29, 2023
+Added: Three Months Ended Nine Months Ended
+Added: December 27, 2024 December 29, 2023 December 27, 2024 December 29, 2023
Net income (loss) $ 159 $ 142 $ 501 $ 476
8 unchanged sentences
(Unaudited, in millions, except share amounts)
−Removed: Three months ended September 27, 2024
+Added: Three months ended December 27, 2024
Common Stock and Additional Paid-In Capital Accumulated Other Comprehensive Income (Loss) Retained Earnings (Accumulated Deficit) Total Stockholders’ Equity (Deficit)
Shares Amount
−Removed: Balance as of June 28, 2024 615 $ 1,959 $ 6 $ 5 $ 1,970
+Added: Balance as of September 27, 2024 616 $ 1,995 $ 14 $ 89 $ 2,098
Net income (loss) — — — 159 159
Other comprehensive income (loss), net of taxes — — ( 60 ) — ( 60 )
−Removed: Common stock issued under employee stock incentive plans 1 6 — — 6
−Removed: Shares withheld for taxes related to vesting of stock units — ( 1 ) — — ( 1 )
Cash dividends declared ($ 0.125 per share of common stock) and dividend equivalents accrued
1 unchanged sentence
Stock-based compensation — 33 — — 33
−Removed: Balance as of September 27, 2024 616 $ 1,995 $ 14 $ 89 $ 2,098
−Removed: Six months ended September 27, 2024 Common Stock and Additional Paid-In Capital Accumulated Other Comprehensive Income (Loss) Retained Earnings (Accumulated Deficit) Total Stockholders’ Equity (Deficit)
+Added: Balance as of December 27, 2024 616 $ 2,026 $ ( 46 ) $ 171 $ 2,151
+Added: Nine months ended December 27, 2024 Common Stock and Additional Paid-In Capital Accumulated Other Comprehensive Income (Loss) Retained Earnings (Accumulated Deficit) Total Stockholders’ Equity (Deficit)
Shares Amount
10 unchanged sentences
Stock-based compensation — 97 — — 97
−Removed: Balance as of September 27, 2024 616 $ 1,995 $ 14 $ 89 $ 2,098
+Added: Balance as of December 27, 2024 616 $ 2,026 $ ( 46 ) $ 171 $ 2,151
(1) Amount includes excise tax on share repurchases.
3 unchanged sentences
(Unaudited, in millions, except share amounts)
−Removed: Three Months Ended September 29, 2023 Common Stock and Additional Paid-In Capital Accumulated Other Comprehensive Income (Loss) Retained Earnings (Accumulated Deficit) Total Stockholders’ Equity (Deficit)
+Added: Three Months Ended December 29, 2023 Common Stock and Additional Paid-In Capital Accumulated Other Comprehensive Income (Loss) Retained Earnings (Accumulated Deficit) Total Stockholders’ Equity (Deficit)
Shares Amount
−Removed: Balance as of June 30, 2023 639 $ 2,697 $ 36 $ ( 446 ) $ 2,287
+Added: Balance as of September 29, 2023 641 $ 2,655 $ 6 $ ( 299 ) $ 2,362
Net income (loss) — — — 142 142
Other comprehensive income (loss), net of taxes — — 13 — 13
−Removed: Common stock issued under employee stock incentive plans 2 6 — — 6
Shares withheld for taxes related to vesting of stock units
— ( 6 ) — — ( 6 )
+Added: Repurchases of common stock ( 4 ) ( 100 ) — — ( 100 )
Cash dividends declared ($ 0.125 per share of common stock) and dividend equivalents accrued
1 unchanged sentence
Stock-based compensation — 35 — — 35
−Removed: Balance as of September 29, 2023 641 $ 2,655 $ 6 $ ( 299 ) $ 2,362
−Removed: Six months ended September 29, 2023 Common Stock and Additional Paid-In Capital Accumulated Other Comprehensive Income (Loss) Retained Earnings (Accumulated Deficit) Total Stockholders’ Equity (Deficit)
+Added: Balance as of December 29, 2023 637 $ 2,502 $ 19 $ ( 157 ) $ 2,364
+Added: Nine months ended December 29, 2023 Common Stock and Additional Paid-In Capital Accumulated Other Comprehensive Income (Loss) Retained Earnings (Accumulated Deficit) Total Stockholders’ Equity (Deficit)
Shares Amount
9 unchanged sentences
Stock-based compensation — 107 — — 107
−Removed: Balance as of September 29, 2023 641 $ 2,655 $ 6 $ ( 299 ) $ 2,362
+Added: Balance as of December 29, 2023 637 $ 2,502 $ 19 $ ( 157 ) $ 2,364
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
2 unchanged sentences
(Unaudited, in millions)
−Removed: Six Months Ended
−Removed: September 27, 2024 September 29, 2023
+Added: Nine Months Ended
+Added: December 27, 2024 December 29, 2023
OPERATING ACTIVITIES:
6 unchanged sentences
Non-cash operating lease expense 11 15
+Added: Impairment on non-marketable equity investments 30 —
+Added: Legal contract dispute cost (Note 19)
+Added: Other ( 4 ) 25
Changes in operating assets and liabilities, net of acquisitions:
38 unchanged sentences
These unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended March 29, 2024.
−Removed: The results of operations for the three and six months ended September 27, 2024 are not necessarily indicative of the results expected for the entire fiscal year.
+Added: The results of operations for the three and nine months ended December 27, 2024 are not necessarily indicative of the results expected for the entire fiscal year.
Fiscal calendar
We have a 52/53-week fiscal year ending on the Friday closest to March 31.
−Removed: Unless otherwise stated, references to three and six month periods in this report relate to fiscal periods ended September 27, 2024 and September 29, 2023.
−Removed: The three and six months ended September 27, 2024 and September 29, 2023 each consisted of 13 and 26 weeks, respectively.
+Added: Unless otherwise stated, references to three and nine month periods in this report relate to fiscal periods ended December 27, 2024 and December 29, 2023.
+Added: The three and nine months ended December 27, 2024 and December 29, 2023 each consisted of 13 and 39 weeks, respectively.
Our 2025 fiscal year consists of 52 weeks and ends on March 28, 2025.
8 unchanged sentences
Significant accounting policies
−Removed: With the exception of those discussed in Note 2, there have been no material changes to our significant accounting policies as of and for the three and six months ended September 27, 2024, as compared to the significant accounting policies described in our Annual Report on Form 10-K for the fiscal year ended March 29, 2024.
+Added: With the exception of those discussed in Note 2, there have been no material changes to our significant accounting policies as of and for the three and nine months ended December 27, 2024, as compared to the significant accounting policies described in our Annual Report on Form 10-K for the fiscal year ended March 29, 2024.
Revision of Prior Period Financial Statements
6 unchanged sentences
We have corrected this error in the accompanying Condensed Consolidated Balance Sheet as of March 29, 2024 by increasing contract liabilities for $ 78 million, increasing other long-term assets for $ 21 million and decreasing retained earnings (accumulated deficit) for $ 57 million.
−Removed: The Condensed Consolidated Statement of Operations for the three months ended September 29, 2023 included a decrease to net revenues of $ 3 million and a decrease to income tax expense (benefit) of $ 1 million.
−Removed: The Condensed Consolidated Statement of Operations for the six months ended September 29, 2023 included a decrease to net revenues of $ 6 million and a decrease to income tax expense (benefit) of $ 2 million.
+Added: The Condensed Consolidated Statement of Operations for the three months ended December 29, 2023 included a decrease to net revenues of $ 3 million and a decrease to income tax expense (benefit) of $ 1 million.
+Added: The Condensed Consolidated Statement of Operations for the nine months ended December 29, 2023 included a decrease to net revenues of $ 9 million and a decrease to income tax expense (benefit) of $ 3 million.
Recent Accounting Standards
11 unchanged sentences
We are currently evaluating the impact of the adoption of this guidance on our Condensed Consolidated Financial Statements and disclosures.
+Added: ASU 2024-03, Income Statement - Reporting Comprehensive Income (Subtopic 220-40):
+Added: Expense Disaggregation Disclosures.
+Added: In November 2024, the FASB issued new guidance requiring that public business entities disclose additional information about specific expense categories in the notes to financial statements at interim and annual reporting periods.
+Added: This is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027.
+Added: We are currently evaluating the impact of the adoption of this guidance on our Condensed Consolidated Financial Statements and disclosures.
There have been no other material changes in recently issued or adopted accounting standards from those disclosed in our Annual Report on Form 10-K for the fiscal year ended March 29, 2024.
2 unchanged sentences
Assets held for sale
+Added: During 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.
+Added: However, the commercial real estate market was adversely affected by the COVID-19 pandemic, which delayed the expected timing of such sales.
+Added: During the third quarter of fiscal 2024, we completed the sale of the land and buildings in Tucson, Arizona, which were previously classified as held for sale, for cash consideration of $ 12 million, net of selling costs.
+Added: We recognized a gain on sale of $ 5 million.
During fiscal 2023, we determined land and buildings in Dublin, Ireland, which were previously reported as property and equipment, qualified as held for sale.
3 unchanged sentences
During the second quarter of fiscal year 2025, we recognized an immaterial impairment representing the difference between the fair value less cost to sell and the carrying value of the remaining land and building in Dublin, Ireland.
−Removed: As of September 27, 2024, this property remains classified as assets held for sale.
−Removed: During the second quarter of fiscal 2025, we determined certain land and buildings in Tettnang, Germany, which were previously reported as property and equipment, net as of March 29, 2024, now qualifies as held for sale classification.
−Removed: As a result, we reclassified the aggregate of $ 12 million carrying value from property and equipment, net to assets held for sale in our Condensed Consolidated Balance Sheet.
+Added: As of December 27, 2024, this property remains classified as assets held for sale.
+Added: During the second quarter of fiscal 2025, we determined certain land and buildings in Tettnang, Germany, which were previously reported as property and equipment, qualified as held for sale classification.
+Added: As a result, we reclassified the aggregate $ 12 million carrying value from property and equipment, net to assets held for sale in our Condensed Consolidated Balance Sheet.
Upon reclassification, we recognized an immaterial impairment representing the difference between the fair value less cost to sell and the carrying value of the property.
−Removed: During the three and six months ended September 27, 2024, we recognized immaterial impairments on our held for sale properties, which was included in Other Income (expense), net in our Condensed Consolidated Statement of Operations, because the fair value less costs to sell is less than the carrying value of our properties.
+Added: On December 18, 2024, we entered into an agreement to sell certain land and buildings in Tettnang, Germany, which were reclassified to assets held for sale during the second quarter of fiscal 2025, for cash consideration of approximately $ 9 million and a 5-year leaseback agreement for a portion of the property.
+Added: The transaction is expected to close during the fourth quarter of fiscal 2025.
+Added: During the three months ended December 27, 2024, there were no impairments on our held for sale properties.
+Added: During the nine months ended December 27, 2024, we recognized immaterial impairments on our held for sale properties, which was included in Other Income (expense), net in our Condensed Consolidated Statement of Operations, because the fair value less costs to sell is less than the carrying value of our properties.
+Added: Business Combinations
+Added: Proposed Acquisition of MoneyLion
+Added: On December 10, 2024, we entered into a definitive agreement to acquire MoneyLion Inc.
+Added: MoneyLion extends our identity solutions into offering comprehensive financial wellness through MoneyLion’s full-featured personal finance platform that includes credit building and financial management services.
+Added: Under the terms of the definitive agreement, each share of Class A common stock, par value $ 0.0001 per share, of MoneyLion, that is issued and outstanding as of immediately prior to the effective time of the acquisition will be automatically cancelled, extinguished, and converted into the right to receive cash in an amount equal to $ 82.00 , without interest thereon, representing a cash value of approximately $ 1 billion.
+Added: In addition, for each share owned, MoneyLion shareholders will receive at closing one contingent value right (CVR) that entitles the holder to a contingent payment of $ 23.00 in the form of shares of our common stock (issuable based on an assumed share price of $ 30.48 per Gen share) if our average volume-weighted average share price reaches at least $ 37.50 per share over 30 consecutive trading days from December 10, 2024 until 24 months after close.
+Added: There can be no assurance that any payments will be made with respect to CVRs.
+Added: It is expected that CVRs will be listed on the Nasdaq Stock Market.
+Added: The proposed acquisition has been approved by the Board of Directors of both Gen and MoneyLion.
+Added: Closing of the proposed acquisition is subject to approval by the MoneyLion shareholders.
+Added: The proposed acquisition is expected to close by the first half of Gen’s fiscal year 2026, subject to regulatory approvals and the satisfaction or waiver of other customary closing conditions.
Contract liabilities
−Removed: During the three and six months ended September 27, 2024, we recognized $ 733 million and $ 1,261 million from the contract liabilities balances as of June 28, 2024 and March 29, 2024, respectively.
−Removed: During the three and six months ended September 29, 2023, we recognized $ 705 million and $ 1,232 million from the contract liabilities balances as of June 30, 2023 and March 31, 2023, respectively.
+Added: During the three and nine months ended December 27, 2024, we recognized $ 742 million and $ 1,620 million from the contract liabilities balances as of September 27, 2024 and March 29, 2024, respectively.
+Added: During the three and nine months ended December 29, 2023, we recognized $ 702 million and $ 1,580 million from the contract liabilities balances as of September 29, 2023 and March 31, 2023, respectively.
Remaining performance obligations
Remaining performance obligations represent contracted revenue that has not been recognized, which include contract liabilities and amounts that will be billed and recognized as revenue in future periods.
−Removed: As of September 27, 2024, we had $ 1,232 million of remaining performance obligations, excluding customer deposit liabilities of $ 595 million, of which we expect to recognize approximately 94 % as revenue over the next 12 months.
+Added: As of December 27, 2024, we had $ 1,174 million of remaining performance obligations, excluding customer deposit liabilities of $ 675 million, of which we expect to recognize approximately 94 % as revenue over the next 12 months.
See Note 17 for tabular disclosures of disaggregated revenue by solution and geographic region.
4 unchanged sentences
Translation adjustments
−Removed: Balance as of September 27, 2024 $ 10,235
+Added: Balance as of December 27, 2024 $ 10,171
Intangible assets, net
The following table summarizes the components of our intangible assets, net:
−Removed: September 27, 2024 March 29, 2024
+Added: December 27, 2024 March 29, 2024
(In millions) Gross
10 unchanged sentences
Amortization expense for purchased intangible assets is summarized below:
−Removed: Three Months Ended Six Months Ended Condensed Consolidated Statements of Operations Classification
−Removed: (In millions) September 27, 2024 September 29, 2023 September 27, 2024 September 29, 2023
+Added: Three Months Ended Nine Months Ended Condensed Consolidated Statements of Operations Classification
+Added: (In millions) December 27, 2024 December 29, 2023 December 27, 2024 December 29, 2023
Customer relationships and other $ 43 $ 61 $ 130 $ 183 Operating expenses
1 unchanged sentence
Total $ 99 $ 118 $ 301 $ 355
−Removed: As of September 27, 2024, future amortization expense related to intangible assets that have finite lives is as follows by fiscal year:
+Added: As of December 27, 2024, future amortization expense related to intangible assets that have finite lives is as follows by fiscal year:
(In millions)
4 unchanged sentences
Cash and cash equivalents:
−Removed: (In millions) September 27, 2024 March 29, 2024
+Added: (In millions) December 27, 2024 March 29, 2024
Cash $ 432 $ 408
2 unchanged sentences
Accounts receivable, net:
−Removed: (In millions) September 27, 2024 March 29, 2024
+Added: (In millions) December 27, 2024 March 29, 2024
Accounts receivable $ 196 $ 165
2 unchanged sentences
Other current assets:
−Removed: (In millions) September 27, 2024 March 29, 2024
+Added: (In millions) December 27, 2024 March 29, 2024
Prepaid expenses $ 131 $ 142
3 unchanged sentences
Property and equipment, net:
−Removed: (In millions) September 27, 2024 March 29, 2024
+Added: (In millions) December 27, 2024 March 29, 2024
Land $ 12 $ 13
8 unchanged sentences
Other long-term assets:
−Removed: (In millions) September 27, 2024 March 29, 2024
+Added: (In millions) December 27, 2024 March 29, 2024
Non-marketable equity investments $ 110 $ 136
5 unchanged sentences
Short-term contract liabilities:
−Removed: (In millions) September 27, 2024 March 29, 2024
+Added: (In millions) December 27, 2024 March 29, 2024
Deferred revenue $ 1,102 $ 1,200
2 unchanged sentences
Other current liabilities:
−Removed: (In millions) September 27, 2024 March 29, 2024
+Added: (In millions) December 27, 2024 March 29, 2024
Income taxes payable $ 125 $ 198
7 unchanged sentences
Other long-term liabilities:
−Removed: (In millions) September 27, 2024 March 29, 2024
+Added: (In millions) December 27, 2024 March 29, 2024
Long-term accrued legal fees $ 598 $ 586
2 unchanged sentences
Long-term income taxes payable:
−Removed: (In millions) September 27, 2024 March 29, 2024
+Added: (In millions) December 27, 2024 March 29, 2024
Unrecognized tax benefits (including interest and penalties) $ 1,384 $ 1,346
3 unchanged sentences
Other income (expense), net:
−Removed: Three Months Ended Six Months Ended
−Removed: (In millions) September 27, 2024 September 29, 2023 September 27, 2024 September 29, 2023
+Added: Three Months Ended Nine Months Ended
+Added: (In millions) December 27, 2024 December 29, 2023 December 27, 2024 December 29, 2023
Interest income $ 6 $ 5 $ 20 $ 17
Foreign exchange gain (loss)
+Added: ( 1 ) ( 1 ) 1 1
+Added: Gain (loss) on equity investments
+Added: ( 30 ) — ( 30 ) —
Gain (loss) on sale of properties
2 unchanged sentences
Supplemental cash flow information:
−Removed: Six Months Ended
−Removed: (In millions) September 27, 2024 September 29, 2023
+Added: Nine Months Ended
+Added: (In millions) December 27, 2024 December 29, 2023
Income taxes paid (received), net of refunds
18 unchanged sentences
The following table summarizes our financial instruments measured at fair value on a recurring basis:
−Removed: September 27, 2024 March 29, 2024
+Added: December 27, 2024 March 29, 2024
(In millions) Fair Value Level 1 Level 2 Fair Value Level 1 Level 2
2 unchanged sentences
$ 457 $ 451 $ 6 $ 454 $ 438 $ 16
−Removed: Interest rate swaps $ 3 $ — $ 3 $ — $ — $ —
−Removed: Total liabilities
−Removed: $ 3 $ — $ 3 $ — $ — $ —
Financial instruments not recorded at fair value on a recurring basis include our non-marketable equity investments and long-term debt.
Non-marketable equity investments
−Removed: As of September 27, 2024 and March 29, 2024, the carrying value of our non-marketable equity investments was $ 140 million and $ 136 million, respectively.
+Added: As of December 27, 2024 and March 29, 2024, the carrying value of our non-marketable equity investments was $ 110 million and $ 136 million, respectively.
+Added: During the three months ended December 27, 2024, we recognized $ 30 million impairment on our non-marketable equity investment received as consideration in a legacy divestiture.
Current and long-term debt
−Removed: As of September 27, 2024 and March 29, 2024, the total fair value of our current and long-term fixed rate debt was $ 2,650 million and $ 2,624 million, respectively.
+Added: As of December 27, 2024 and March 29, 2024, the total fair value of our current and long-term fixed rate debt was $ 2,626 million and $ 2,624 million, respectively.
The fair value of our variable rate debt approximated their carrying value.
4 unchanged sentences
The following summarizes our lease costs:
−Removed: Three Months Ended Six Months Ended
−Removed: (In millions) September 27, 2024 September 29, 2023 September 27, 2024 September 29, 2023
+Added: Three Months Ended Nine Months Ended
+Added: (In millions) December 27, 2024 December 29, 2023 December 27, 2024 December 29, 2023
Operating lease costs $ 3 $ 3 $ 10 $ 9
3 unchanged sentences
Other information related to our operating leases was as follows:
−Removed: September 27, 2024 March 29, 2024
+Added: December 27, 2024 March 29, 2024
Weighted-average remaining lease term 4.8 years 4.6 years
1 unchanged sentence
See Note 7 for cash flow information related to our operating leases.
−Removed: As of September 27, 2024, the maturities of our lease liabilities by fiscal year are as follows:
+Added: As of December 27, 2024, the maturities of our lease liabilities by fiscal year are as follows:
(In millions)
6 unchanged sentences
(In millions, except percentages)
−Removed: September 27, 2024 March 29, 2024 Effective
+Added: December 27, 2024 March 29, 2024 Effective
Interest Rate
19 unchanged sentences
The interest rates for the outstanding term loans are as follows:
−Removed: September 27, 2024 March 29, 2024
+Added: December 27, 2024 March 29, 2024
Term A Facility due September 12, 2027 6.17 % 7.18 %
Term B Facility due September 12, 2029 6.32 % 7.43 %
−Removed: As of September 27, 2024, the future contractual maturities of debt by fiscal year are as follows:
+Added: As of December 27, 2024, the future contractual maturities of debt by fiscal year are as follows:
(In millions)
18 unchanged sentences
We may voluntarily repay outstanding principal balances under the Revolving Facility and Term loan facilities without penalty or premium.
−Removed: As of September 27, 2024, there were no borrowings outstanding under our Revolving Facility;
+Added: As of December 27, 2024, there were no borrowings outstanding under our Revolving Facility;
however, from time to time we utilize letters of credits as part of our ordinary course of business.
Letters of credit reduce our Revolving Facility commitment amounts.
−Removed: As of September 27, 2024, we had $ 10 million in letters of credit.
+Added: As of December 27, 2024, we had $ 5 million in letters of credit.
Interest on our Term A facility borrowings under the Amended Credit Agreement, can be based on a base rate or the SOFR at our election.
5 unchanged sentences
In addition, the Amended Credit Agreement contains customary events of default under which our payment obligations may be accelerated, including, among others, non-payment of principal, interest or other amounts when due, inaccuracy of representations and warranties, violation of certain covenants, payment and acceleration cross defaults with certain other indebtedness, certain undischarged judgments, bankruptcy, insolvency or inability to pay debts, change of control, the occurrence of certain events related to the Employee Retirement Income Security Act of 1974 (ERISA), and the Company experiencing a change of control.
−Removed: As of September 27, 2024 , we were in compliance with all financial debt covenants.
+Added: As of December 27, 2024 , we were in compliance with all financial debt covenants.
On February 9, 2017, we issued $ 1,100 million aggregate principal amount of our 5.0 % Senior Notes due April 15, 2025 (the 5.0 % Senior Notes).
22 unchanged sentences
These arrangements are designated as cash flow hedges for accounting purposes and as such, we will recognize the changes in the fair value of these interest rate swaps in Accumulated other comprehensive income (loss) (AOCI), and the periodic settlements or accrued settlements of the swap will be recognized within or against interest expense in our Condensed Consolidated Statements of Operations.
−Removed: Cash flows related to these hedges are classified under operating activities in our Condensed Consolidated Statement of Cash Flows.
+Added: Cash flows related to these hedges are classified under operating activities in our Condensed Consolidated Statements of Cash Flows.
Summary of derivative instruments
−Removed: The following table summarizes our outstanding derivative instruments as of September 27, 2024 and March 29, 2024:
+Added: The following table summarizes our outstanding derivative instruments as of December 27, 2024 and March 29, 2024:
Notional Amount Fair Value of Derivative Assets Fair Value of Derivative Liabilities
−Removed: (In millions) September 27, 2024 March 29, 2024 September 27, 2024 March 29, 2024 September 27, 2024 March 29, 2024
+Added: (In millions) December 27, 2024 March 29, 2024 December 27, 2024 March 29, 2024 December 27, 2024 March 29, 2024
Foreign exchange contracts not designated as hedging instrument (1)
3 unchanged sentences
Total $ 1,242 $ 1,345 $ 6 $ 16 $ — $ —
−Removed: (1) The fair values of the foreign exchange contracts are less than $ 1 million as of September 27, 2024 and March 29, 2024.
+Added: (1) The fair values of the foreign exchange contracts are less than $ 1 million as of December 27, 2024 and March 29, 2024.
The following table summarizes the effect of our cash flow hedges on AOCI during the periods indicated:
−Removed: Three Months Ended Six Months Ended
−Removed: (In millions) September 27, 2024 September 29, 2023 September 27, 2024 September 29, 2023
+Added: Three Months Ended Nine Months Ended
+Added: (In millions) December 27, 2024 December 29, 2023 December 27, 2024 December 29, 2023
Interest rate swap contracts designated as cash flow hedge
1 unchanged sentence
The related gain (loss) recognized in our Condensed Consolidated Statements of Operations was as follows:
−Removed: Three Months Ended Six Months Ended Condensed Consolidated Statements of Operations Classification
−Removed: (In millions) September 27, 2024 September 29, 2023 September 27, 2024 September 29, 2023
+Added: Three Months Ended Nine Months Ended Condensed Consolidated Statements of Operations Classification
+Added: (In millions) December 27, 2024 December 29, 2023 December 27, 2024 December 29, 2023
Foreign exchange contracts not designated as hedging instrument $ ( 7 ) $ 3 $ ( 5 ) $ ( 6 ) Other income (expense), net
2 unchanged sentences
Total $ ( 4 ) $ 7 $ 6 $ 5
−Removed: As of September 27, 2024, we estimate that less than $ 1 million of net deferred gains related to our interest rate hedges will be recognized in earnings over the next 12 months.
+Added: As of December 27, 2024, we estimate that less than $ 5 million of net deferred gains related to our interest rate hedges will be recognized in earnings over the next 12 months.
Restructuring and Other Costs
9 unchanged sentences
These actions are expected to be completed by the end of fiscal 2025.
−Removed: As of September 27, 2024, we have incurred costs of $ 126 million related to the September 2022 Plan.
+Added: As of December 27, 2024, we have incurred costs of $ 128 million related to the September 2022 Plan.
Restructuring and other costs summary
Our restructuring and other costs are presented in the table below:
−Removed: Three Months Ended Six Months Ended
−Removed: (In millions) September 27, 2024 September 29, 2023 September 27, 2024 September 29, 2023
+Added: Three Months Ended Nine Months Ended
+Added: (In millions) December 27, 2024 December 29, 2023 December 27, 2024 December 29, 2023
Severance and termination benefit costs $ 1 $ ( 1 ) $ 2 $ 21
1 unchanged sentence
Stock-based compensation charges — — — 1
+Added: Asset write-offs and impairments — 1 — 1
Other exit and disposal costs 1 ( 1 ) 2 8
1 unchanged sentence
The following table summarizes our effective tax rate for the periods presented:
−Removed: Three Months Ended Six Months Ended
+Added: Three Months Ended Nine Months Ended
(In millions, except percentages)
−Removed: September 27, 2024 September 29, 2023 September 27, 2024 September 29, 2023
+Added: December 27, 2024 December 29, 2023 December 27, 2024 December 29, 2023
Income (loss) before income taxes $ 208 $ 178 $ 742 $ 235
1 unchanged sentence
Effective tax rate 24 % 20 % 32 % ( 103 ) %
−Removed: Our effective tax rate for the three and six months ended September 27, 2024, differs from the federal statutory income tax rate primarily due to state taxes, changes in unrecognized tax benefits and related interest and penalties, and the U.S.
+Added: Our effective tax rate for the three and nine months ended December 27, 2024 , differs from the federal statutory income tax rate primarily due to state taxes, changes in unrecognized tax benefits and related interest and penalties, and the U.S.
taxation on foreign earnings.
−Removed: Our effective tax rate for the three and six months ended September 29, 2023, differs from the federal statutory income tax rate primarily due to tax benefits related to the set up and write-off of deferred tax items resulting from an internal restructuring, partially offset by state taxes, changes in unrecognized tax benefits and related interest and penalties, and the U.S.
+Added: Our effective tax rate for the three and nine months ended December 29, 2023, differs from the federal statutory income tax rate primarily due to tax benefits related to the set up and write-off of deferred tax items resulting from an internal restructuring, partially offset by state taxes, changes in unrecognized tax benefits and related interest and penalties, and the U.S.
taxation on foreign earnings.
Stockholders' Equity
−Removed: On October 30, 2024, we announced that our Board of Directors declared a cash dividend of $ 0.125 per share of common stock to be paid in December 2024.
+Added: On January 30, 2025, we announced that our Board of Directors declared a cash dividend of $ 0.125 per share of common stock to be paid in March 2025.
All shares of common stock issued and outstanding and all restricted stock units (RSUs) and performance-based restricted stock units (PRUs) as of the record date will be entitled to the dividend and dividend equivalent rights, respectively, which will be paid out if and when the underlying shares are released.
5 unchanged sentences
Under our stock repurchase program, we may purchase shares of our outstanding common stock on the open market and through accelerated stock repurchase transactions.
−Removed: As of September 27, 2024, we had $ 2,728 million remaining under the authorization to be completed in future periods.
−Removed: The following table summarizes activity related to our stock repurchase program during six months ended September 27, 2024 and September 29, 2023:
−Removed: Six Months Ended
+Added: As of December 27, 2024, we had $ 2,728 million remaining under the authorization to be completed in future periods.
+Added: The following table summarizes activity related to our stock repurchase program during three and nine months ended December 27, 2024 and December 29, 2023:
+Added: Three Months Ended Nine Months Ended
(In millions, except per share amounts)
−Removed: September 27, 2024 September 29, 2023
+Added: December 27, 2024 December 29, 2023 December 27, 2024 December 29, 2023
Number of shares repurchased — 5 11 7
1 unchanged sentence
Aggregate purchase price $ — $ 100 $ 272 $ 141
−Removed: We did not have any stock repurchases during the three months ended September 27, 2024 and September 29, 2023.
+Added: We did not have any stock repurchases during the three months ended December 27, 2024.
Accumulated other comprehensive income (loss)
5 unchanged sentences
Other comprehensive income (loss), net of taxes ( 47 ) ( 10 ) ( 57 )
−Removed: Balance as of September 27, 2024 $ 17 $ ( 3 ) $ 14
+Added: Balance as of December 27, 2024 $ ( 52 ) $ 6 $ ( 46 )
Stock-Based Compensation
6 unchanged sentences
The following table sets forth the stock-based compensation expense recognized for our equity incentive plans:
−Removed: Three Months Ended Six Months Ended
−Removed: (In millions)
−Removed: September 27, 2024 September 29, 2023 September 27, 2024 September 29, 2023
+Added: Three Months Ended Nine Months Ended
+Added: (In millions) December 27, 2024 December 29, 2023 December 27, 2024 December 29, 2023
Cost of revenues $ 1 $ 1 $ 3 $ 3
5 unchanged sentences
Income tax benefit for stock-based compensation expense $ ( 4 ) $ ( 4 ) $ ( 12 ) $ ( 13 )
−Removed: $ ( 4 ) $ ( 4 ) $ ( 8 ) $ ( 9 )
−Removed: As of September 27, 2024, the total unrecognized stock-based compensation expense related to our unvested stock-based awards was $ 238 million, which will be recognized over an estimated weighted-average amortization period of 2.0 years.
+Added: As of December 27, 2024, the total unrecognized stock-based compensation expense related to our unvested stock-based awards was $ 208 million, which will be recognized over an estimated weighted-average amortization period of 1.9 years.
The following table summarizes additional information related to our stock-based awards:
−Removed: Six Months Ended
−Removed: (In millions, except per grant data) September 27, 2024 September 29, 2023
+Added: Nine Months Ended
+Added: (In millions, except per grant data) December 27, 2024 December 29, 2023
Restricted stock units (RSUs):
12 unchanged sentences
The amount of DERs equals to the cumulated dividends on the issued number of common stock that would have been payable since the date the associated award was granted.
−Removed: As of September 27, 2024 and March 29, 2024, current dividends payable related to DER was $ 4 million recorded as part of Other current liabilities in the Condensed Consolidated Balance Sheets, and long-term dividends payable related to DER was $ 3 million and $ 4 million, respectively, recorded as part of Other long-term liabilities in the Condensed Consolidated Balance Sheets.
+Added: As of December 27, 2024 and March 29, 2024, current dividends payable related to DER was $ 4 million recorded as part of Other current liabilities in the Condensed Consolidated Balance Sheets, and long-term dividends payable related to DER was $ 4 million recorded as part of Other long-term liabilities in the Condensed Consolidated Balance Sheets.
Net Income (Loss) Per Share
3 unchanged sentences
The components of basic and diluted net income (loss) per share are as follows:
−Removed: Three Months Ended Six Months Ended
+Added: Three Months Ended Nine Months Ended
(In millions, except per share amounts)
−Removed: September 27, 2024 September 29, 2023 September 27, 2024 September 29, 2023
+Added: December 27, 2024 December 29, 2023 December 27, 2024 December 29, 2023
Net income (loss) $ 159 $ 142 $ 501 $ 476
11 unchanged sentences
The following table summarizes net revenues for our major solutions:
−Removed: Three Months Ended Six Months Ended
−Removed: (In millions) September 27, 2024 September 29, 2023 September 27, 2024 September 29, 2023
+Added: Three Months Ended Nine Months Ended
+Added: (In millions) December 27, 2024 December 29, 2023 December 27, 2024 December 29, 2023
Consumer security revenues $ 619 $ 598 $ 1,841 $ 1,796
11 unchanged sentences
The following table represents net revenues by geographic area for the periods presented:
−Removed: Three Months Ended Six Months Ended
−Removed: (In millions) September 27, 2024 September 29, 2023 (1)
−Removed: September 27, 2024 September 29, 2023 (1)
+Added: Three Months Ended Nine Months Ended
+Added: (In millions) December 27, 2024 December 29, 2023 (1)
+Added: December 27, 2024 December 29, 2023 (1)
Americas $ 647 $ 619 $ 1,924 $ 1,851
7 unchanged sentences
(1) From time to time, changes in allocation methodologies cause changes to the revenue by geographic area above.
−Removed: When changes occur, we recast historical amounts to match the current methodology, such as for the three and six months ended September 29, 2023 where we aligned allocation methodologies across similar product categories.
+Added: When changes occur, we recast historical amounts to match the current methodology, such as for the three and nine months ended December 29, 2023 where we aligned allocation methodologies across similar product categories.
Revenues from customers inside the U.S.
−Removed: were $ 584 million and $ 1,163 million during the three and six months ended September 27, 2024, respectively, and $ 563 million and $ 1,121 million during the three and six months ended September 29, 2023, respectively.
+Added: were $ 589 million and $ 1,752 million during the three and nine months ended December 27, 2024, respectively, and $ 564 million and $ 1,687 million during the three and nine months ended December 29, 2023, respectively.
No other individual country accounted for more than 10% of revenues.
1 unchanged sentence
and internationally in various foreign subsidiaries:
−Removed: (In millions) September 27, 2024 March 29, 2024
+Added: (In millions) December 27, 2024 March 29, 2024
International 386 379
1 unchanged sentence
The table below represents our property and equipment, net of accumulated depreciation and amortization, by geographic area, based on the physical location of the asset, at the end of each period presented:
−Removed: (In millions) September 27, 2024 March 29, 2024
+Added: (In millions) December 27, 2024 March 29, 2024
Other countries (1)
2 unchanged sentences
Significant customers and e-commerce partners
−Removed: No individual, end-user customer accounted for 10% or more of our net revenues during the six months ended September 27, 2024 and September 29, 2023.
−Removed: E-commerce partners that accounted for over 10% of our total billed and unbilled accounts receivable were as follows:
−Removed: September 27, 2024 March 29, 2024
+Added: No individual, end-user customer accounted for 10% or more of our net revenues during the nine months ended December 27, 2024 and December 29, 2023.
+Added: E-commerce partners that accounted for over 10% of our total billed and unbilled accounts receivable, prior to allowance of doubtful accounts, were as follows:
+Added: December 27, 2024 March 29, 2024
E-commerce partner A
E-commerce partner B
+Added: On January 16, 2025, we notified e-commerce partner B of our termination of the agreement and subsequently entered into a legal settlement agreement with them.
+Added: Refer to Note 19 for further information about this notice of termination and settlement agreement.
Commitments and Contingencies
37 unchanged sentences
and (iii) attorneys’ fees subject to the parties meeting and conferring as to amount.
−Removed: We have complied with the court’s order and submitted a stipulation regarding the final calculations of all outstanding interest, royalties and attorneys’ fees.
+Added: We have complied with the court’s order and submitted a stipulation regarding the final calculations of all outstanding interest, royalties
+Added: and attorneys’ fees.
We have posted the required surety bond and have appealed the judgement to the Federal Circuit Court of Appeals, which remains pending.
At this time, our current estimate of probable losses from this matter is approximately $ 594 million, which we have accrued and recorded as part of Other long-term liabilities in the Condensed Consolidated Balance Sheets .
−Removed: There is a reasonable
−Removed: possibility that a loss may be incurred in excess of our accrual for this matter;
+Added: There is a reasonable possibility that a loss may be incurred in excess of our accrual for this matter;
however, such incremental loss cannot be reasonably estimated.
21 unchanged sentences
Symantec, brought claims derivatively on behalf of our 2008 Employee Stock Purchase Plan.
−Removed: The parties have reached a settlement in principle, subject to Court approval.
−Removed: The impact of settlement was not material.
+Added: The parties reached a settlement, which received final approval from the Court on December 4, 2024, at which time judgment was entered.
+Added: The judgment was not appealed and is now final and the impact of the settlement was not material.
+Added: All related matters are now resolved.
During the first quarter of fiscal 2013, we were advised by the Commercial Litigation Branch of the Department of Justice’s (DOJ) Civil Division and the Civil Division of the U.S.
14 unchanged sentences
We settled with the State of Florida before trial and the State of New York during trial, both for immaterial amounts which have been paid.
−Removed: On January 19, 2023, the Court issued its Findings of Facts and Conclusions of Law in which it found in favor of the United States in part and awarded damages and penalties in the amount of $ 1.3 million.
−Removed: The Court also found in favor of the State of California in part and awarded penalties in the amount of $ 0.4 million.
+Added: On January 19, 2023, the Court issued its Findings of Facts and Conclusions of Law in which it found in favor of the United States in part and awarded damages and penalties in the amount of $ 1.3 million, which the Company then paid.
+Added: The Court also found in favor of the State of California in part and awarded penalties in the amount of $ 0.4 million, which the Company also paid.
The resulting Judgment was filed by the Court on January 20, 2023.
−Removed: On February 16, 2023, plaintiffs filed Motions to Amend Judgment to
−Removed: revive the damages claimed at trial.
+Added: On February 16, 2023, plaintiffs filed Motions to Amend Judgment to revive the damages claimed at trial.
On January 16, 2024, the Court granted in part and denied in part the United States’ Motion to Amend and awarded $ 53 million in damages and penalties.
The State of California’s Motion to Amend was denied.
−Removed: The January 2023 judgment amount has been paid, and at this time, our current estimate of the low end of the range of probable estimated losses from this matter is $ 53 million, which we have accrued and recorded as part of Other current liabilities in the Condensed Consolidated Balance Sheets.
−Removed: On February 13, 2024, we filed a motion to amend and correct the judgement in that the revised damages in the January 2024 decision include damages for products not included on the GSA schedule at issue in the case.
−Removed: The Court denied that motion on August 30, 2024, and subsequently issued its Judgment on September 30, 2024.
−Removed: The parties’ deadline to file a Notice of Appeal was October 29, 2024.
−Removed: Neither party filed a Notice of Appeal and we expect to pay the judgment, including post-judgment interest, in November 2024.
−Removed: In addition, we are currently negotiating the amount of attorneys’ fees owed to the Relator.
−Removed: If a negotiated resolution as to fees is not reached, Relator’s deadline to bring a motion for fees is December 2, 2024.
+Added: A subsequent motion to amend and correct the January 2024 judgment brought by the Company was denied.
+Added: The January 2024 judgment was paid by the Company in November 2024.
+Added: Additionally, the Company reached an agreement in principle to pay Relator’s counsel $ 12 million for its attorneys’ fees, which the Company accrued in the third quarter of fiscal 2025 and expects to pay in the fourth quarter of fiscal 2025.
Jumpshot Matters
16 unchanged sentences
No specific amount of damages has been alleged to date.
−Removed: At this stage, we are unable to assess whether any material loss or adverse effect is reasonably possible or estimate the range of any potential loss.
+Added: At this stage, the matter remains pending, and we are unable to assess whether any material loss or adverse effect is reasonably possible or estimate the range of any potential loss.
On April 18, 2024, we received a letter before action from counsel in the United Kingdom asserting it may bring a representative action on behalf of a class of Avast users in the United Kingdom and Wales for breach of contract and misuse of private information and seeking unspecified damages and a permanent injunction.
3 unchanged sentences
Gen Digital Inc.
−Removed: and Jumpshot Inc ., was filed in the Northern District of California alleging violations of the Electronic Communications Privacy Act, California Invasion of Privacy Act, statutory larceny, unfair competition and various common law claims related to the provision of customer data to Jumpshot.
−Removed: Such claims, to the extent related to Jumpshot, have now been dismissed from the case as has Jumpshot Inc.
−Removed: as a defendant.
+Added: and Jumpshot Inc .
+Added: (later restyled as Karwowski v.
+Added: Gen Digital Inc.
+Added: ), was filed in the Northern District of California alleging violations of the Electronic Communications Privacy Act, California Invasion of Privacy Act, statutory larceny, unfair competition and various common law claims related to the provision of customer data to Jumpshot.
+Added: The claims related to Jumpshot, and Jumpshot, Inc.
+Added: as a defendant, were dismissed on July 9, 2024, as a result of a Motion to Dismiss brought by the Company.
+Added: The remaining claims were then voluntarily dismissed, with prejudice, by the Plaintiffs.
+Added: Judgment was entered by the Court on October 23, 2024, as to those claims and on November 22, 2024, Plaintiffs filed a Notice of Appeal regarding the earlier dismissed Jumpshot-related claims.
At this stage, we are unable to assess whether any material loss or adverse effect is reasonably possible as a result of this action or estimate the range of any potential loss.
9 unchanged sentences
The final resolution of these lawsuits, individually or in the aggregate, is not expected to have a material adverse effect on our business, results of operations, financial condition or cash flows.
−Removed: During the three and six months ended September 27, 2024, we incurred $ 25 million and $ 40 million, respectively, related to the estimated accrual and final resolutions of our litigation contingencies in our Condensed Consolidated Statement of Operations.
−Removed: During the three and six months ended September 29, 2023, we incurred $ 347 million and $ 352 million, respectively, related to the estimated accrual and final resolutions of our litigation contingencies in our Condensed Consolidated Statement of Operations.
+Added: During the three and nine months ended December 27, 2024, we incurred $ 22 million and $ 62 million, respectively, related to the estimated accrual and final resolutions of our litigation contingencies in our Condensed Consolidated Statement of Operations.
+Added: During the three and nine months ended December 29, 2023, we incurred $ 60 million and $ 412 million, respectively, related to the estimated accrual and final resolutions of our litigation contingencies in our Condensed Consolidated Statement of Operations.
+Added: Subsequent Events
+Added: Significant E-commerce Partner
+Added: At the end of our third fiscal quarter of 2025, E-commerce Partner B (see Note 17), who acts as the payment processor and merchant of record for a subset of Avast customers, missed its contractually required payment.
+Added: Additional contractually required payments were missed in the first few weeks of our fourth fiscal quarter ending March 28, 2025.
+Added: In January 2025, E-commerce partner B cited financial difficulties, which raised our concerns about its solvency and ability to comply with the contractual terms of the agreement.
+Added: On January 16, 2025, we notified them of our termination of the agreement.
+Added: After further settlement discussions, the parties agreed to resolve all disputes between them, including but not limited to claims of breach of the agreement, and the parties entered into a legal settlement agreement.
+Added: Under the terms of the legal settlement agreement, E-commerce partner B is required to transfer all of our customer information to us, and we released our claims to valid outstanding accounts receivable (net of any fees payable) from E-commerce partner B, totaling $ 66 million as of January 17, 2025, along with customary releases for the parties.
+Added: In the third quarter of fiscal 2025, $ 42 million of accounts receivable existing on December 27, 2024 from E-commerce partner B were charged off as general and administrative expense.
+Added: Accounts receivable of $ 24 million generated from E-commerce Partner B in our fourth fiscal quarter of 2025 will be charged off in that quarter.
+Added: E-commerce partner B billed our customers $ 139 million during the three months ended December 27, 2024, primarily for annual renewals for a subset of Avast customers.
+Added: We immediately began the process of migrating these customers to our proprietary eStore platform and expect to complete a significant portion of the migration process by March 2025.
+Added: Upon transfer of all data, we do not anticipate any material impact on our customer base or revenue.
+Added: However, the seamless processing of customer transactions is critical to our business operations.
+Added: Any disruption in our billing and collection processes could adversely affect the customer experience, result in a loss of revenue, and materially impact our financial position, results of operations, and cash flows.
+Added: Fiscal 2025 Acquisition
+Added: On January 28, 2025, we acquired all the outstanding shares of a technology-enabled personal finance education and recommendation platform for an aggregate purchase price of $ 85 million in cash.
+Added: While this acquisition is immaterial to Gen’s overall financial results, it is expected to enhance our capabilities in the cyber safety, identity protection (LifeLock), and financial wellness business.
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.