Restructuring

Summary of Restructuring Plans

Restructuring charges of $369 million and $24 million have been recorded by the Company for the three months ended July 31, 2016 and 2015, respectively, and restructuring charges of $841 million and $404 million have been recorded for the nine months ended July 31, 2016 and 2015, respectively, based on restructuring activities impacting the Company's employees and infrastructure. Restructuring activities related to the Company's employees and infrastructure, summarized by plan, are presented in the table below:



	Fiscal 2015 Plan						Fiscal 2012 Plan						Other Plans
	Employee Severance			Infrastructure and other			Employee Severance and EER			Infrastructure and other			Employee Severance		Infrastructure and other			Total
	In millions
Liability as of October 31, 2015	$	351		$	—		$	321		$	45		$	1	$	24		$	742
Charges	581			189			72			1			—		(2		)	841
Cash payments	(382		)	(100		)	(234		)	(19		)	—		(10		)	(745		)
Non-cash items	(25		)	(50		)	—			(1		)	—		(1		)	(77		)
Liability as of July 31, 2016	$	525		$	39		$	159		$	26		$	1	$	11		$	761
Total costs incurred to date, as of July 31, 2016	$	932		$	190		$	3,964		$	546		$	1,997	$	1,127		$	8,756
Total costs expected to be incurred, as of July 31, 2016	$	2,158		$	423		$	3,964		$	546		$	1,997	$	1,127		$	10,215

The current restructuring liability reported in Accrued restructuring in the Condensed Consolidated Balance Sheets at July 31, 2016 and October 31, 2015 was $613 million and $628 million, respectively. The long-term restructuring liability reported in Other liabilities in the Condensed Consolidated Balance Sheets at July 31, 2016 and October 31, 2015 was $148 million and $114 million, respectively.

Fiscal 2015 Restructuring Plan

On September 14, 2015, former Parent's Board of Directors approved a restructuring plan (the "2015 Plan") in connection with the separation which will be implemented through fiscal 2018. As part of the 2015 Plan, the Company expects approximately 30,000 employees to exit the Company by the end of 2018. These workforce reductions are primarily associated with the Company's Enterprise Services segment. The changes to the workforce will vary by country, based on local legal requirements and consultations with employee works councils and other employee representatives, as appropriate. The Company estimates that it will incur aggregate pre-tax charges through fiscal 2018 of approximately $2.6 billion in connection with the 2015 Plan, of which approximately $2.2 billion relates to workforce reductions and $423 million primarily relates to real estate consolidation.

Fiscal 2012 Restructuring Plan

On May 23, 2012, former Parent adopted a multi-year restructuring plan (the "2012 Plan") designed to simplify business processes, accelerate innovation and deliver better results for customers, employees and stockholders. As of July 31, 2016 and October 31, 2015 the Company had eliminated 42,100 positions in connection with the 2012 Plan, with a portion of those employees exiting the Company as part of voluntary enhanced early retirement ("EER") programs in the U.S. and in certain other countries. During the first nine months of fiscal 2016, the Company recorded severance charges of $72 million and infrastructure charges of $1 million as a result of a change in the estimate of expected cash payouts. The Company recognized $4.5 billion in total aggregate charges in connection with the 2012 Plan, with approximately $4.0 billion related to workforce reductions, including the EER programs, and $546 million related to infrastructure, including data center and real estate consolidation and other items. The 2012 Plan is substantially complete and the severance and infrastructure related cash payments associated with the 2012 Plan are expected to be substantially paid out through fiscal 2021.

Other Plans

Restructuring plans initiated by former Parent in fiscal 2008 and 2010 were substantially completed as of April 30, 2015. Severance and infrastructure related cash payments associated with these plans are expected to be paid out through fiscal 2019.