Restructuring Costs

12 Months Ended

Mar. 31, 2020

The Company recorded restructuring costs, net of reversals, of $252 million, $465 million and $789 million for fiscal 2020, 2019 and 2018, respectively. The costs recorded during fiscal 2020 were largely the result of implementing the Fiscal 2020 Plan, as described below.

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



	As of
(in millions)	March 31, 2020		March 31, 2019
Accrued expenses and other current liabilities	$	145	$	273
Other long-term liabilities	35		106
Total	$	180	$	379

Summary of Restructuring Plans

Fiscal 2020 Plan

During fiscal 2020, management approved cost savings initiatives designed to reduce operating costs by re-balancing its workforce and facilities structures (the "Fiscal 2020 Plan"). The Fiscal 2020 Plan includes workforce optimization programs and facilities and data center rationalization.

Fiscal 2019 Plan

During fiscal 2019, 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. Costs incurred to date under the Fiscal 2019 Plan total $482 million, comprising $338 million in employee severance and $144 million of facilities costs.

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 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 $771 million, comprising $584 million in employee severance and $187 million of facilities costs.

Other Prior Year Plans

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"). Total costs incurred to date under the Fiscal 2017 Plan total $215 million, comprising $206 million in employee severance and $9 million of facilities costs.

Acquired Restructuring Liabilities

As a result of the merger of Computer Sciences Corporation ("CSC") and HPES ("HPES Merger"), DXC acquired restructuring liabilities under restructuring plans that were initiated for HPES under plans approved by the HPE Board of Directors.

Restructuring activities, summarized by plan year, were as follows:



	Restructuring Liability as of March 31, 2019		Adoption of ASC 842⁽¹⁾			Costs Expensed, Net of Reversals⁽²⁾			Costs Not Affecting Restructuring Liability⁽³⁾			Cash Paid			Other⁽⁴⁾			Restructuring Liability as of March 31, 2020
Fiscal 2020 Plan
Workforce Reductions	$	—	$	—		$	271		$	(11	)	$	(177	)	$	(9	)	$	74
Facilities Costs	—		—			21			(3		)	(16		)	—			2
Total	$	—	$	—		$	292		$	(14	)	$	(193	)	$	(9	)	$	76

Fiscal 2019 Plan
Workforce Reductions	$	138	$	—		$	(25	)	$	—		$	(83	)	$	(5	)	$	25
Facilities Costs	68		(53		)	—			(1		)	(7		)	(2		)	5
Total	$	206	$	(53	)	$	(25	)	$	(1	)	$	(90	)	$	(7	)	$	30

Fiscal 2018 Plan
Workforce Reductions	$	59	$	—		$	(10	)	$	—		$	(29	)	$	—		$	20
Facilities Costs	35		(36		)	(1		)	—			(2		)	4			—
Total	$	94	$	(36	)	$	(11	)	$	—		$	(31	)	$	4		$	20

Other Prior Year Plans
Workforce Reductions	$	9	$	—		$	(1	)	$	—		$	(3	)	$	(1	)	$	4
Facilities Costs	1		(1		)	—			—			—			—			—
Total	$	10	$	(1	)	$	(1	)	$	—		$	(3	)	$	(1	)	$	4

Acquired Liabilities
Workforce Reductions	$	51	$	—		$	1		$	—		$	(16	)	$	3		$	39
Facilities Costs	18		—			(4		)	—			(1		)	(2		)	11
Total	$	69	$	—		$	(3	)	$	—		$	(17	)	$	1		$	50

⁽¹⁾ Represents restructuring liability recorded as an offset to right-of-use assets upon the adoption of ASC 842.

⁽²⁾ Costs expensed, net of reversals include $30 million, $11 million, and $3 million of costs reversed from the Fiscal 2019 Plan, Fiscal 2018 Plan and Other Prior Year Plans, respectively.

⁽³⁾ Pension benefit augmentations recorded as a pension liability and asset impairment.

⁽⁴⁾ Foreign currency translation adjustments.



	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 March 31, 2019
Fiscal 2019 Plan
Workforce Reductions	$	—	$	363		$	(2	)	$	(218	)	$	(5	)	$	138
Facilities Costs	—		144			(6		)	(68		)	(2		)	68
Total	$	—	$	507		$	(8	)	$	(286	)	$	(7	)	$	206

Fiscal 2018 Plan
Workforce Reductions	$	257	$	(30	)	$	—		$	(151	)	$	(17	)	$	59
Facilities Costs	98		(14		)	(3		)	(40		)	(6		)	35
Total	$	355	$	(44	)	$	(3	)	$	(191	)	$	(23	)	$	94

Fiscal 2017 Plan
Workforce Reductions	$	19	$	—		$	—		$	(12	)	$	—		$	7
Facilities Costs	3		—			—			(3		)	—			—
Total	$	22	$	—		$	—		$	(15	)	$	—		$	7

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

Acquired Liabilities
Workforce Reductions	$	110	$	2		$	—		$	(58	)	$	(3	)	$	51
Facilities Costs	27		—			—			(9		)	—			18
Total	$	137	$	2		$	—		$	(67	)	$	(3	)	$	69

⁽¹⁾ Costs expensed, net of reversals include $48 million, $3 million, and $1 million of costs reversed from the Fiscal 2018 Plan, Fiscal 2017 Plan and Other Prior Year Plans, respectively.

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

⁽³⁾ Foreign currency translation adjustments.