Gen Digital Inc.GEN

Gen Digital Inc. Fair Value Disclosure

10-KFiled May 21, 20262 min read
Financial Instruments and Fair Value Measurements
The following table summarizes our financial instruments measured at fair value on a recurring basis:
April 3, 2026March 28, 2025
(In millions)Fair ValueLevel 1Level 2Fair ValueLevel 1Level 2
Assets:
Money market funds$97 $97 $— $544 $544 $— 
Time deposits22 — 22 — — — 
Interest rate swaps (1)
— — — 3 — 3 
Total$119 $97 $22 $547 $544 $3 
(1)    The interest rate swap agreements expired on March 31, 2026 upon their maturity.
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
As of April 3, 2026 and March 28, 2025, the carrying value of our non-marketable equity investments was $16 million and $109 million, respectively, and is included in Other long-term assets in our Consolidated Balance Sheets.
During fiscal 2026, we sold an equity interest in a non-marketable equity investment. In connection with the sale, we received both cash proceeds and non-cash proceeds in the form of an equity investment. We recognized a gain of $11 million, which is included in Other income (expense), net in our Consolidated Statement of Operations. We also recognized other immaterial losses on sales of our non-marketable equity investments during fiscal 2026, in Other income (expense), net in our Consolidated Statement of Operations.
We recognized impairments of $90 million, $30 million and $40 million on our non-marketable equity investments during fiscal years 2026, 2025 and 2024, respectively, in Other income (expense), net in our Consolidated Statements of Operations.
Current and long-term debt
As of April 3, 2026 and March 28, 2025, the total fair value of our current and long-term fixed-rate debt was $2,443 million and $2,475 million, respectively. The fair value of our variable-rate debts approximated their carrying value. The fair values of all our debt obligations were based on Level 2 inputs.

Historical Timeline

Fiscal YearFiled
2026May 21, 2026Showing above
2025May 15, 2025
2024May 16, 2024
2023May 25, 2023
2022May 20, 2022
2021May 21, 2021
2020May 28, 2020
2019May 24, 2019
2018Oct 26, 2018
2017May 19, 2017
2016May 20, 2016

About Fair Value Disclosures

Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.

Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.

Other Available Disclosures

Income TaxesRevenueEarnings Per SharePP&EGoodwill & IntangiblesLeasesSegmentsDebtCommitmentsStock CompensationNew StandardsPay vs Performance