RESTRUCTURING ACTIVITIES

12 Months Ended

Jan. 29, 2017

NOTE 11—RESTRUCTURING ACTIVITIES

Fiscal 2015 Plan

As a result of the sale of the Power Solutions business unit in October 2015, management evaluated our talent alignment and functional support strategies. Consequently, during fiscal 2015, we initiated a restructuring plan to strategically align our leadership and functional support teams. During fiscal 2015, we incurred $9 million of restructuring charges under this plan. During fiscal 2016, we accelerated and expanded the restructuring plan, incurring $20 million of restructuring charges, offset by a net gain of $11 million related to real estate transactions under the plan. In total the Company incurred net restructuring charges of $18 million and expects the plan to deliver a payback of approximately two years via a reduction in costs. The Company completed the activities under the plan in fiscal 2016 and does not expect to incur additional charges.

As of January 29, 2017, the liability balances for these restructuring activities were $5 million and are included in Other current liabilities in the Consolidated Balance Sheet. Payments for these initial charges are expected to be substantially complete in the next twelve months.

The following table presents the activity for the liability balance (amounts in millions):

	Severance			Relocation & Other Costs			Total
Balance—January 31, 2016	$	6		$	1		$	7
Charges		8			12			20
Cash payments		(9	)		(13	)		(22	)

Balance—January 29, 2017	$	5		$	—		$	5

Fiscal 2013 Plan

During the fourth quarter of fiscal 2013, management evaluated the cost structure of the Company and identified opportunities to reduce costs across its businesses, primarily through a workforce reduction in the global support center and, to a lesser extent, its business units. During fiscal 2014, the Company continued restructuring activities under this plan, resulting in a restructuring charge of $6 million in fiscal 2014 for additional workforce reductions of approximately 130 employees, primarily at Facilities Maintenance, and the consolidation of six Construction & Industrial branches into three branches. These charges were recorded to operating expenses within the Consolidated Statements of Operations and Comprehensive Income (Loss). During fiscal 2014, the Company completed the restructuring activities under this plan. No further charges are expected under this plan.