Restructuring

Restructuring charges of $10 million, $14 million, zero, and $20 million have been recorded by the Company during the fiscal years ended March 31, 2019 and 2018, the five months ended March 31, 2017, and the fiscal year ended October 31, 2016, respectively, based on restructuring activities impacting certain employees and infrastructure. Restructuring liabilities are included in accrued expenses as well as other long-term liabilities on the balance sheets as of March 31, 2019 and 2018.

Restructuring activities related to certain employees and infrastructure, summarized by plan year, were as follows:



(in millions)	Accrued Restructuring as of March 31, 2018		Costs Expensed		Cash Paid			Accrued Restructuring as of March 31, 2019
Fiscal 2019 Plan:
Workforce reductions	$	—	$	1	$	(1	)	$	—
Facilities costs	—		2		(2		)	—
Total	$	—	$	3	$	(3	)	$	—

Fiscal 2018 Plan:
Workforce reductions	$	1	$	—	$	(1	)	$	—
Facilities costs	6		—		(2		)	4
Total	$	7	$	—	$	(3	)	$	4



(in millions)	Accrued Restructuring as of March 31, 2017		Costs Expensed, Net of Reversals		Cash Paid			Accrued Restructuring as of March 31, 2018
Fiscal 2018 Plan:
Workforce reductions	$	—	$	6	$	(5	)	$	1
Facilities costs	—		8		(2		)	6
Total	$	—	$	14	$	(7	)	$	7

Acquired Restructuring Plan

As a result of the Mergers, the Company acquired deferred costs of $7 million associated with restructuring initiatives from prior years that were reimbursable as agreed upon by the Defense Contract Management Agency. During the fiscal year ended March 31, 2019, these remaining costs were recognized as restructuring expense.

Fiscal 2019 Restructuring Plan

In connection with the Spin-Off and Mergers, management approved a restructuring plan (the “2019 Plan”) in November 2018 to better align Perspecta to its mission and business objectives. The restructuring initiatives include a reduction in workforce as well as consolidation of infrastructure to achieve operating efficiencies, optimize utilization of facilities, and strengthen the Company’s competitiveness. The 2019 Plan also focuses on transitioning the Company’s legacy delivery model from a centralized, services-focused model to a decentralized, customer-focused model that will facilitate a more effective decision-making process tailored to our customer needs.

Fiscal 2018 Restructuring Plan

The Company recorded charges associated with Parent-approved restructuring plans to simplify business processes and accelerate innovation. Restructuring charges can include infrastructure charges to vacate facilities and consolidate operations and contract cancellation costs. We recorded restructuring charges based on estimated employee terminations and site closure and consolidation plans. We accrued for severance and other employee separation costs under these actions when it is probable that benefits will be paid and the amount is reasonably estimable. The rates used in determining severance accruals were based on existing plans, historical experiences and negotiated settlements.

On June 30, 2017, Parent approved a post-HPES Merger restructuring plan (the “2018 Plan”). The restructuring initiatives are intended to reduce Parent’s cost structure and related operating costs, improve its competitiveness, and facilitate the achievement of acceptable and sustainable profitability. The 2018 Plan focuses mainly on optimizing specific aspects of workforce and re-balancing the pyramid structure. Additionally, this plan includes facility restructuring.