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Press Release: NortonLifeLock's Q3 Growth -2-

· 02/04/2021 16:12
=== ========== === ========== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 67 $ 87 Accrued compensation and benefits 86 115 Current portion of long-term debt 63 756 Contract liabilities 1,090 1,049 Current operating lease liabilities 24 28 Other current liabilities 491 587 --- ---------- --- ---------- Total current liabilities 1,821 2,622 Long-term debt 3,542 3,465 Long-term contract liabilities 45 27 Deferred income tax liabilities 201 149 Long-term income taxes payable 1,096 1,310 Long-term operating lease liabilities 73 73 Other long-term liabilities 71 79 --- ---------- --- ---------- Total liabilities 6,849 7,725 Total stockholders' equity (deficit) (492) 10 --- ---------- --- ---------- Total liabilities and stockholders' equity (deficit) $ 6,357 $ 7,735 === ========== === ========== NORTONLIFELOCK INC. Condensed Consolidated Statements of Operations (1) (In millions, except per share data, unaudited) Three Months Ended Nine Months Ended --------------------- ---------------------- January January 3, January 1, January 3, 1, 2021 2020 2021 2020 --------- ---------- ---------- ---------- Net revenues $ 639 $ 618 $1,879 $1,876 Cost of revenues 87 103 263 296 ----- ------ ------ ------ Gross profit 552 515 1,616 1,580 Operating expenses: Sales and marketing 140 178 428 551 Research and development 71 72 199 258 General and administrative 42 85 163 271 Amortization of intangible assets 18 20 54 61 Restructuring and other costs 1 98 142 128 ----- ------ ------ ------ Total operating expenses 272 453 986 1,269 ----- ------ ------ ------ Operating income 280 62 630 311 Interest expense (32) (51) (109) (146) Other income, net 5 399 62 397 ----- ------ ------ ------ Income from continuing operations before income taxes 253 410 583 562 Income tax expense 80 57 95 133 ----- ------ ------ ------ Income from continuing operations 173 353 488 429 Income (loss) from discontinued operations 5 2,492 (128) 3,227 ----- ------ ------ ------ Net income $ 178 $2,845 $ 360 $3,656 ==== ===== ===== ===== Income (loss) per share - basic: Continuing operations $0.29 $ 0.57 $ 0.83 $ 0.69 Discontinued operations $0.01 $ 4.01 $(0.22) $ 5.20 Net income per share - basic (2) $0.30 $ 4.58 $ 0.61 $ 5.90 Income (loss) per share - diluted: Continuing operations $0.29 $ 0.55 $ 0.81 $ 0.67 Discontinued operations $0.01 $ 3.85 $(0.21) $ 5.01 Net income per share - diluted (2) $0.30 $ 4.40 $ 0.60 $ 5.68 Weighted-average shares outstanding: Basic 593 621 591 620 Diluted 597 647 604 644 ______________________ (1) The nine months ended January 1, 2021 consisted of 39 weeks whereas the nine months ended January 3, 2020 consisted of 40 weeks. The impact of the extra week on revenues in the nine months ended January 3, 2020 is estimated to be approximately $44 million. (2) Net income per share amounts may not add due to rounding. NORTONLIFELOCK INC. Condensed Consolidated Statements of Cash Flows (In millions, unaudited) Three Months Ended Nine Months Ended -------------------- -------------------- January 1, January January January 3, 2021 3, 2020 1, 2021 2020 ---------- -------- -------- ---------- OPERATING ACTIVITIES: Net income $ 178 $ 2,845 $ 360 $ 3,656 Adjustments: Amortization and depreciation 28 56 113 307 Impairments of current and long-lived assets -- 28 88 32 Stock-based compensation expense 21 120 66 270 Deferred income taxes 17 721 47 14 Gain on extinguishment of debt -- -- (20) -- Loss from equity interest -- 9 -- 31 Gain on sale of Enterprise Security assets -- (5,422) -- (5,422) Gain on sale of equity method investment -- (379) -- (379) Gain on sale of property -- -- (35) -- Non-cash operating lease expense 6 9 17 32 Other 16 20 54 27 Changes in operating assets and liabilities: Accounts receivable, net (12) 426 1 537 Accounts payable 1 11 (23) (21) Accrued compensation and benefits 11 (79) (25) (99) Contract liabilities 46 (34) 21 (163) Income taxes payable (49) 2,091 (348) 2,096 Other assets 15 (89) 36 (94) Other liabilities 15 66 (2) 81 ----- ------ ------ ------ Net cash provided by (used in) operating activities 293 399 350 905 INVESTING ACTIVITIES: Purchases of property and equipment (2) (10) (5) (86) Proceeds from divestitures, net of cash contributed and transaction costs -- 10,572 -- 10,572 Proceeds from maturities and sales of short-term investments 13 15 60 135 Proceeds from sale of property -- -- 118 -- Proceeds from sale of equity investment method -- 378 -- 378 Other (4) (3) (9) (8) ----- ------ ------ ------ Net cash provided by investing activities 7 10,952 164 10,991 FINANCING ACTIVITIES: Repayments of debt and related equity component -- (302) (1,929) (302) Proceeds from issuance of debt, net of issuance costs -- 300 750 300 Net proceeds from sales of common stock under employee stock incentive plans 6 21 16 109 Tax payments related to restricted stock units (27) (6) (57) (71) Dividends and dividend equivalents paid (113) (79) (300) (177) Repurchases of common stock (133) (345) (138) (904) Short-swing profit disgorgement -- 9 -- 9 Other -- (1) -- (1) ----- ------ ------ ------ Net cash used in financing activities (267) (403) (1,658) (1,037) Effect of exchange rate fluctuations on cash and cash equivalents 4 4 13 (1) ----- ------ ------ ------ Change in cash and cash equivalents 37 10,952 (1,131) 10,858 Beginning cash and cash equivalents 1,009 1,697 2,177 1,791 ----- ------ ------ ------ Ending cash and cash equivalents $1,046 $12,649 $ 1,046 $12,649

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February 04, 2021 16:12 ET (21:12 GMT)