Restructuring Costs

6 Months Ended

Sep. 30, 2020

The Company recorded restructuring costs of $265 million and $32 million, net of reversals, for the three months ended September 30, 2020 and September 30, 2019, respectively. For the six months ended September 30, 2020 and September 30, 2019, the Company recorded restructuring costs of $337 million and $174 million, net of reversals, respectively. The costs recorded during the three and six months ended September 30, 2020 were largely a result of the Fiscal 2021 Plan (defined below).

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


	As of
(in millions)	September 30, 2020
Accrued expenses and other current liabilities	$	289
Other long-term liabilities	76
Total	$	365

Summary of Restructuring Plans

Fiscal 2021 Plan

During fiscal 2021, management approved global cost savings initiatives designed to better align the Company's workforce and facility structures (the "Fiscal 2021 Plan").

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. Costs incurred to date under the Fiscal 2020 Plan total $283 million, comprising $266 million in employee severance and $17 million of facilities costs.

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 the Enterprise Services business of Hewlett Packard Enterprise Company ("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 $476 million, comprising $335 million in employee severance and $141 million of facilities costs.

Other Prior Year Plans

In June 2017, management approved a post-HPES Merger (as defined below) 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 organizational 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 $986 million, comprising $790 million in employee severance and $196 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 Liability Reconciliations by Plan


	Restructuring Liability as of March 31, 2020		Costs Expensed, Net of Reversals(1)		Costs Not Affecting Restructuring Liability(2)		Cash Paid		Other(3)		Restructuring Liability as of September 30, 2020
Fiscal 2021 Plan
Workforce Reductions	$	—	$	340	$	(4)	$	(89)	$	—	$	247
Facilities Costs	—		13		(4)		(6)		—		3
Total	$	—	$	353	$	(8)	$	(95)	$	—	$	250

Fiscal 2020 Plan
Workforce Reductions	$	74	$	(5)	$	2	$	(38)	$	4	$	37
Facilities Costs	2		(4)		4		(2)		—		—
Total	$	76	$	(9)	$	6	$	(40)	$	4	$	37

Fiscal 2019 Plan
Workforce Reductions	$	25	$	(3)	$	(2)	$	(9)	$	1	$	12
Facilities Costs	5		(3)		2		—		1		5
Total	$	30	$	(6)	$	—	$	(9)	$	2	$	17






Other Prior Year Plans
Workforce Reductions	$	24	$	—	$	3	$	(11)	$	2	$	18
Facilities Costs	—		—		—		—		—		—
Total	$	24	$	—	$	3	$	(11)	$	2	$	18

Acquired Liabilities
Workforce Reductions	$	39	$	—	$	—	$	(3)	$	—	$	36
Facilities Costs	11		(1)		1		(2)		(2)		7
Total	$	50	$	(1)	$	1	$	(5)	$	(2)	$	43

(1) Costs expensed, net of reversals include $11 million, $10 million, and $3 million of costs reversed from the Fiscal 2020 Plan, Fiscal 2019 Plan and Other Prior Year Plans, respectively.

(2) Costs Not Affecting Restructuring Liability include pension benefit augmentations recorded as a pension liability, asset impairments and restructuring costs associated with right-of-use assets.

(3)Other include foreign currency translation adjustments.