Restructuring Costs

9 Months Ended

Dec. 31, 2020

The Company recorded restructuring costs of $104 million and $74 million, net of reversals, for the three months ended December 31, 2020 and December 31, 2019, respectively. For the nine months ended December 31, 2020 and December 31, 2019, the Company recorded restructuring costs of $441 million and $248 million, net of reversals, respectively. The costs recorded during the three and six months ended December 31, 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)	December 31, 2020
Accrued expenses and other current liabilities	$	261
Other long-term liabilities	60
Total	$	321

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 $295 million, comprising $278 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 $477 million, comprising $336 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 $987 million, comprising $791 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 December 31, 2020
Fiscal 2021 Plan
Workforce Reductions	$	—	$	416	$	(9)	$	(210)	$	9	$	206
Facilities Costs	—		25		(9)		(11)		(1)		4
Total	$	—	$	441	$	(18)	$	(221)	$	8	$	210

Fiscal 2020 Plan
Workforce Reductions (4)	$	74	$	7	$	2	$	(49)	$	5	$	39
Facilities Costs	2		(4)		4		(2)		—		—
Total	$	76	$	3	$	6	$	(51)	$	5	$	39

Fiscal 2019 Plan
Workforce Reductions	$	25	$	(2)	$	(3)	$	(13)	$	2	$	9
Facilities Costs	5		(3)		2		—		1		5
Total	$	30	$	(5)	$	(1)	$	(13)	$	3	$	14






Other Prior Year Plans
Workforce Reductions	$	24	$	1	$	2	$	(14)	$	2	$	15
Facilities Costs	—		—		—		—		—		—
Total	$	24	$	1	$	2	$	(14)	$	2	$	15

Acquired Liabilities
Workforce Reductions	$	39	$	1	$	—	$	(7)	$	1	$	34
Facilities Costs	11		—		1		(3)		—		9
Total	$	50	$	1	$	1	$	(10)	$	1	$	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.

(4) Fiscal 2020 workforce reductions includes a $14 million adjustment to restructuring expense related to the prior year.