Restructuring Costs

The Company recorded restructuring costs of $76 million and $210 million, net of reversals, for the three months ended December 31, 2018 and December 31, 2017, respectively. For the nine months ended December 31, 2018 and December 31, 2017, the Company recorded $418 million and $585 million, net of reversals, respectively. The costs recorded during the three and nine months ended December 31, 2018 were largely a result of the Fiscal 2019 Plan (defined below).

The composition of restructuring liabilities by financial statement line item is as follows:



	As of
(in millions)	December 31, 2018
Accrued expenses and other current liabilities	$	356
Other long-term liabilities	118
Total	$	474

Summary of Restructuring Plans

Fiscal 2019 Plan

During the nine months ended December 31, 2018, management approved global cost savings initiatives designed to better align the Company's organizational structure with its strategic initiatives and continue the integration of HPES and other acquisitions (the "Fiscal 2019 Plan"). The Fiscal 2019 Plan includes workforce optimization and rationalization of facilities and data center assets.

Fiscal 2018 Plan

In June 2017, management approved a post-HPES Merger restructuring plan to optimize the Company's operations in response to a continuing business contraction (the "Fiscal 2018 Plan"). The additional restructuring initiatives are intended to reduce the company's core structure and related operating costs, improve its competitiveness, and facilitate the achievement of acceptable and sustainable profitability. The Fiscal 2018 Plan focuses mainly on optimizing specific aspects of global workforce, increasing the proportion of work performed in low cost offshore locations and re-balancing the pyramid structure. Additionally, this plan included global facility restructuring, including a global data center restructuring program. Costs incurred to date under the Fiscal 2018 Plan total $806 million, comprising $614 million in workforce reductions and $192 million of facilities costs.

Fiscal 2017 Plan

In May 2016, the Company initiated a restructuring plan to realign the Company's cost structure and resources to take advantage of operational efficiencies following recent acquisitions. During the fourth quarter of fiscal 2017, the Company expanded the plan to strengthen the Company's competitiveness and to optimize the workforce by increasing work performed in low-cost locations (the "Fiscal 2017 Plan"). Costs incurred to date under the Fiscal 2017 Plan total $216 million, comprising $207 million in workforce reductions and $9 million of facilities costs.

Other Prior Year Plans

Other prior year plans are comprised of the Fiscal 2016 Plan and Fiscal 2015 Plan. As of December 31, 2018, activities under these plans are substantially complete.

Acquired Restructuring Liabilities

As a result of the HPES Merger, DXC acquired restructuring liabilities under restructuring plans that were initiated for HPES under plans approved by the HPE Board of Directors.

Restructuring Liability Reconciliations by Plan



	Restructuring Liability as of March 31, 2018		Costs Expensed, Net of Reversals⁽¹⁾			Costs Not Affecting Restructuring Liability ⁽²⁾			Cash Paid			Other⁽³⁾			Restructuring Liability as of December 31, 2018
Fiscal 2019 Plan
Workforce Reductions	$	—	$	307		$	(1	)	$	(139	)	$	(4	)	$	163
Facilities Costs	—		129			(5		)	(50		)	(3		)	71
Total	$	—	$	436		$	(6	)	$	(189	)	$	(7	)	$	234

Fiscal 2018 Plan
Workforce Reductions	$	257	$	(10	)	$	—		$	(124	)	$	(16	)	$	107
Facilities Costs	98		(10		)	(3		)	(36		)	(6		)	43
Total	$	355	$	(20	)	$	(3	)	$	(160	)	$	(22	)	$	150

Fiscal 2017 Plan
Workforce Reductions	$	19	$	—		$	—		$	(10	)	$	(1	)	$	8
Facilities Costs	3		—			—			(3		)	—			—
Total	$	22	$	—		$	—		$	(13	)	$	(1	)	$	8

Other Prior Year Plans
Workforce Reductions	$	4	$	(1	)	$	—		$	(1	)	$	—		$	2
Facilities Costs	2		—			—			(1		)	—			1
Total	$	6	$	(1	)	$	—		$	(2	)	$	—		$	3

Acquired Liabilities
Workforce Reductions	$	110	$	2		$	—		$	(52	)	$	(3	)	$	57
Facilities Costs	$	27	1			—			(6		)	—			22
Total	$	137	$	3		$	—		$	(58	)	$	(3	)	$	79

⁽¹⁾ Costs expensed, net of reversals include $23 million, $2 million and $1 million of costs reversed from the Fiscal 2018 Plan, the Fiscal 2017 Plan and Other Prior Year Plans, respectively.

⁽²⁾Pension benefit augmentations recorded as a pension liability and asset impairments.

⁽³⁾Foreign currency translation adjustments.