Severance Charges

12 Months Ended

Feb. 03, 2017

Restructuring and Related Activities [Abstract]

In connection with the transformation of the Company's business model, the Company incurs costs related to employee severance. The Company records a liability for these costs when it is probable that employees will be entitled to termination benefits and the amounts can be reasonably estimated. The liability related to these actions is included in accrued and other current liabilities in the Consolidated Statements of Financial Position and was $416 million and $26 million as of February 3, 2017 and January 29, 2016, respectively. In connection with the EMC merger transaction, the Company assumed a liability of $70 million, which represents the fair value of the outstanding obligation of EMC's legacy severance programs. The Company has determined that it will manage the remainder of these programs as part of its ongoing severance actions. Accordingly, the Company has included the liability related to these programs in the table below.

The following table sets forth the activity related to the Company's severance liability for the respective periods:



	Severance Costs
	(in millions)
Balance as of January 31, 2014	$	433
Severance charges to provision	46
Cash paid and other	(384		)
Balance as of January 30, 2015	95
Severance charges to provision	20
Cash paid and other	(89		)
Balance as of January 29, 2016	26
Severance liability assumed through EMC merger transaction	70
Severance charges to provision	541
Cash paid and other	(221		)
Balance as of February 3, 2017	$	416

Severance costs are included in cost of net revenue, selling, general, and administrative expenses, and research and development expense in the Consolidated Statements of Income (Loss) as follows:



	Fiscal Year Ended
	February 3, 2017		January 29, 2016			January 30, 2015
	(in millions)
Severance charges:
Cost of net revenue	$	122	$	1		$	21
Selling, general, and administrative	355		(1		)	20
Research and development	64		20			5
Total	$	541	$	20		$	46