Gen Digital GEN · USD

Segment and Geographic Information We operate as one reportable segment. Our Chief Operating Decision Maker is our Chief Executive Officer, who manages and reviews the business on a consolidated basis and uses consolidated net income (loss), as reported on our Consolidated Statements of Operations, as the primary measure of segment profit or loss to evaluate company performance and to allocate and prioritize resources during the planning and forecasting process. The measure of segment assets is reported on the Consolidated Balance Sheets as Total Assets. The following table is a reconciliation of our measure of segment profit or loss, significant segment expenses and other segment items: Year Ended (In millions) March 28, 2025 March 29, 2024 March 31, 2023 Net revenues $ 3,935 $ 3,800 $ 3,317 Less significant expenses and other segment items: Revenue share 109 106 95 E-Commerce fees 134 137 119 Product and cloud expense 156 146 131 Personnel expense 460 451 436 Marketing and affiliates expense 555 509 459 Support and outside service expense 98 110 123 Infrastructure and facilities expense (1) 125 132 140 Stock-based compensation 134 138 134 Amortization of intangible assets 401 462 308 Other segment items (2) 153 499 166 Interest expense 578 669 401 Other expense (income), net (3) 3 (6) 22 Income tax expense (benefit) 386 (160) (551) Net income (loss) $ 643 $ 607 $ 1,334 (1) Infrastructure and facilities expense includes depreciation expense, which are disclosed in Note 7. (2) Other segment items included in segment net income (loss) includes restructuring and other costs, acquisition and integration costs, litigation settlement charges, and legal contract dispute costs. (3) Other expense (income), net, includes interest income, which is disclosed in Note 7. Major solutions The following table summarizes net revenues from our major solutions: Year Ended (In millions) March 28, 2025 March 29, 2024 March 31, 2023 Consumer security revenues $ 2,462 $ 2,409 $ 2,013 Identity and information protection revenues 1,423 1,328 1,239 Total cyber safety revenues 3,885 3,737 3,252 Legacy revenues 50 63 65 Total net revenues $ 3,935 $ 3,800 $ 3,317 From time to time, changes in our product hierarchy cause changes to the product categories above. When changes occur, we recast historical amounts to match the current product hierarchy. The changes have been reflected for all periods presented above.

Revenues Contract liabilities During fiscal 2025 and 2024, we recognized $1,777 million and $1,736 million of revenue, respectively, from the contract liabilities balance at the beginning of the respective fiscal years. 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. As of March 28, 2025, we had $1,266 million of remaining performance obligations, excluding customer deposit liabilities of $657 million, of which we expect to recognize approximately 94% as revenue over the next 12 months.

Commitments and Contingencies Purchase obligations We have purchase obligations that are associated with agreements for purchases of goods or services. Management believes that cancellation of these contracts is unlikely, and we expect to make future cash payments according to the contract terms. The following reflects estimated future payments for purchase obligations by fiscal year. The amount of purchase obligations reflects estimated future payments as of March 28, 2025. (In millions) March 28, 2025 2026 $ 316 2027 55 2028 33 2029 25 2030 4 Thereafter 1 Total purchase obligations $ 434 Deemed repatriation taxes Under the Tax Cuts and Jobs Act (H.R.1), we are required to pay a one-time transition tax on untaxed earnings of our foreign subsidiaries through July 2025. The following reflects estimated future payments for deemed repatriation taxes by fiscal year: (In millions) March 28, 2025 2026 $ 139 Total obligations $ 139 Indemnifications In the ordinary course of business, we may provide indemnifications of varying scope and terms to customers, vendors, lessors, business partners, subsidiaries and other parties with respect to certain matters, including, but not limited to, product warranties and losses arising out of our breach of agreements or representations and warranties made by us, including claims alleging that our software infringes on the intellectual property rights of a third party. In addition, our bylaws contain indemnification obligations to our directors, officers, employees, and agents, and we have entered into indemnification agreements with our directors and certain of our officers to give such directors and officers additional contractual assurances regarding the scope of the indemnification set forth in our bylaws and to provide additional procedural protections. We maintain director and officer insurance, which may cover certain liabilities arising from our obligation to indemnify our directors and officers. It is not possible to determine the aggregate maximum potential loss under these indemnification agreements due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular agreement. Such indemnification agreements might not be subject to maximum loss clauses. We monitor the conditions that are subject to indemnification to identify if a loss has occurred.

Debt The following table summarizes components of our debt: (In millions, except percentages) March 28, 2025 March 29, 2024 Effective 5.0% Senior Notes due April 15, 2025 $ — $ 1,100 5.00 % Term A Facility due September 12, 2027 3,519 3,666 SOFR + % (2) 6.75% Senior Notes due September 30, 2027 900 900 6.75 % Term B Facility due September 12, 2029 2,386 2,444 SOFR + % (3) 1.29% Avira Mortgage due December 30, 2029 (1) — 3 1.29 % 7.125% Senior Notes due September 30, 2030 600 600 7.13 % 0.95% Avira Mortgage due December 30, 2030 (1) — 3 0.95 % 6.25% Senior Notes due April 1, 2033 950 — 6.25 % Total principal amount 8,355 8,716 Less: unamortized discount and issuance costs (96) (112) Total debt 8,259 8,604 Less: current portion (291) (175) Total long-term debt $ 7,968 $ 8,429 (1) The Avira Mortgages are denominated in a foreign currency so the balances of these mortgages may fluctuate based on changes in foreign currency exchange rates. Additionally, in connection with the agreement to sell certain land and buildings in Tettnang, Germany, as discussed in Note 3, the Avira Mortgages were repaid during the fourth quarter of fiscal 2025. (2) Term A Facility due 2027 bears interest at a rate equal to Term SOFR plus a credit spread adjustment (CSA) plus a margin based either on the current debt rating of our non-credit-enhanced, senior unsecured long-term debt or consolidated adjusted leverage as defined in the underlying loan agreement. (3) Term B Facility due 2029 bears interest at a rate equal to Term SOFR plus 1.75%. The interest rates for the outstanding term loans are as follows: March 28, 2025 March 29, 2024 Term A Facility due September 12, 2027 5.92 % 7.18 % Term B Facility due September 12, 2029 6.07 % 7.43 % As of March 28, 2025, the future contractual maturities of debt by fiscal year are as follows: (In millions) 2026 $ 291 2027 232 2028 4,016 2029 37 2030 2,229 Thereafter 1,550 Total future maturities of debt $ 8,355 Senior credit facilities On September 12, 2022, we entered into the Amended and Restated Credit Agreement (Credit Agreement) with certain financial institutions, in which they agreed to provide us with (i) a $1,500 million revolving credit facility (Revolving Facility), (ii) a $3,910 million term loan A facility (Term A Facility), (iii) a $3,690 million term loan B facility (Term B Facility) and (iv) a $750 million tranche A bridge loan (Bridge Loan) (collectively, the senior credit facilities).

Income Taxes The components of our income (loss) before income taxes are as follows: Year Ended (In millions) March 28, 2025 March 29, 2024 March 31, 2023 Domestic $ 514 $ 70 $ 337 International 515 377 446 Income (loss) before income taxes $ 1,029 $ 447 $ 783 The components of income tax expense (benefit) are as follows: Year Ended (In millions) March 28, 2025 March 29, 2024 March 31, 2023 Current: Federal $ 246 $ 201 $ (479) State 21 43 (28) International 149 579 99 Total 416 823 (408) Deferred: Federal (33) (729) (114) State 13 (134) (11) International (10) (120) (18) Total (30) (983) (143) Income tax expense (benefit) $ 386 $ (160) $ (551) The U.S. federal statutory income tax rates we have applied for fiscal 2025, 2024 and 2023 are as follows: Year Ended March 28, 2025 March 29, 2024 March 31, 2023 U.S. federal statutory income tax rate 21.0 % 21.0 % 21.

Stock-Based Compensation and Other Benefit Plans Stock incentive plans The purpose of our stock incentive plans is to attract, retain and motivate eligible persons whose present and potential contributions are important to our success by offering them an opportunity to participate in our future performance through equity awards. We maintain the 2013 Equity Incentive Plan (the 2013 Plan), under which awards may be granted to employees, officers, directors, consultants, independent contractors, and advisors. As amended, our stockholders have approved and reserved 112 million shares of common stock for issuance under the 2013 Plan. Stock options granted under the 2013 Plan expire no more than 10 years from the date of grant. In connection with our acquisition of Avast, we assumed the outstanding equity awards under two of Avast’s equity incentive plans (the Avast Holding B.V. 2014 Share Option Plan and the Rules of the Avast plc Long Term Incentive Plan (collectively, the Avast Plans)), which consisted of 4 million unvested RSUs. The assumed RSUs generally retain the terms and conditions under which they were originally granted. We intend to grant all additional shares that remain available for issuance under the Avast Plans. Upon vesting, these assumed RSUs and any additional shares granted will settle into shares of our common stock. See Note 4 for further information about this business combination. As of March 28, 2025, 27 million shares remained available for future grant, calculated using the maximum potential shares that could be earned and issued at vesting. RSUs (In millions, except per share and year data) Number of Weighted- Outstanding as of March 29, 2024 8 $ 19.39 Granted 6 $ 24.06 Vested (4) $ 20.08 Forfeited (1) $ 19.96 Outstanding as of March 28, 2025 9 $ 21.80 RSUs generally vest over a three-year period. The weighted-average grant date fair value per share of RSUs granted during fiscal 2025, 2024 and 2023 was $24.06, $17.42, and $22.38, respectively. The total fair value of RSUs released in fiscal 2025, 2024 and 2023 was $79 million, $85 million, and $74 million, respectively, which represents the market value of our common stock on the date the RSUs were released. PRUs (In millions, except per share and year data) Number of Weighted- Outstanding and unvested as of March 29, 2024 5 $ 26.02 Granted 2 $ 31.59 Vested (1) $ 29.94 Forfeited (1) $ 22.70 Outstanding and unvested as of March 28, 2025 5 $ 28.

Leases We lease certain facilities, equipment, and data center co-locations under operating leases that expire on various dates through fiscal 2033. Our leases generally have terms that range from 1 year to 9 years for our facilities, 1 year to 4 years for equipment and 1 year to 7 years for data center co-locations. Some of our leases contain renewal options, escalation clauses, rent concessions and leasehold improvement incentives. The following summarizes our lease costs for fiscal 2025, 2024 and 2023: Year Ended (In millions) March 28, 2025 March 29, 2024 March 31, 2023 Operating lease costs $ 14 $ 12 $ 16 Short-term lease costs 3 3 2 Variable lease costs 4 6 8 Total lease costs $ 21 $ 21 $ 26 Other information related to our operating leases for fiscal 2025, 2024 and 2023 was as follows: Year Ended March 28, 2025 March 29, 2024 March 31, 2023 Weighted-average remaining lease term 4.7 years 4.6 years 2.8 years Weighted-average discount rate 5.71 % 5.35 % 4.38 % See Note 7 for cash flow information related to our operating leases.

Business Combinations Fiscal 2023 Avast acquisition During the second quarter of fiscal 2023, we acquired all of the outstanding common stock of Avast. Avast has been included in our Consolidated Statements of Operations since the acquisition date. Prior to the acquisition, Avast was a global leader in consumer cybersecurity, offering a comprehensive range of digital security and privacy products and services that protected and enhanced users’ online experiences. With this acquisition, we are positioned to provide a broad and complementary consumer product portfolio with greater geographic diversification and access to a larger user base. The total consideration for the acquisition of Avast was approximately $8,688 million, net of cash acquired. Our final allocation of the aggregate purchase price for the acquisition as of September 12, 2022, was as follows: (In millions) September 12, 2022 Assets: Accounts receivable $ 63 Other current assets 17 Property and equipment 33 Operating lease assets 18 Intangible assets 2,383 Goodwill 7,335 Other long-term assets 11 Total assets acquired 9,860 Liabilities: Current liabilities 180 Contract liabilities 509 Operating lease liabilities 18 Long-term deferred tax liabilities 419 Other long-term obligations 46 Total liabilities assumed 1,172 Total purchase price $ 8,688 Our estimates and assumptions were subject to refinement within the measurement period, which ended during the second quarter of fiscal 2024. Adjustments to the purchase price during the measurement period required adjustments to be made to goodwill. Unaudited pro forma information The following unaudited pro forma financial information represents the combined historical results for the year ended March 31, 2023, as if the acquisition had been completed on April 3, 2021, the first day of fiscal 2022. The results presented below include adjustments to conform Avast financial information, prepared in accordance with International Financial Reporting Standards (IFRS), to U.S. GAAP as well as the impacts of material, nonrecurring pro forma adjustments, including amortization of acquired intangible assets, interest on debt issued to finance the acquisition, and acquisition-related transaction costs, and the income tax effect of the other pro forma adjustments. The unaudited pro forma results do not include any anticipated synergies or other expected benefits of the acquisition.