Restructuring, Separation, and Transition

Our restructuring, separation, and transition costs and liabilities consist primarily of severance, facilities, separation, transition and other related costs. Severance costs generally include severance payments, outplacement services, health insurance coverage, and legal costs. Facilities costs generally include rent expense and lease termination costs, less estimated sublease income. Separation and other related costs will include advisory, consulting and other costs incurred in connection with the separation of our information management business. Transition and other related costs consist of consulting charges associated with the implementation of new Enterprise Resource Planning systems. Restructuring, separation, and transition costs are managed at the corporate level and are not allocated to our reportable segments. See Note 8 of these Condensed Consolidated Financial Statements for information regarding the reconciliation of total segment operating income to total consolidated operating income.

Restructuring plans

Fiscal 2014 Plan

We initiated a restructuring plan in the fourth quarter of fiscal 2013 to reduce management and redundant personnel resulting in headcount reductions across the Company. As of January 2, 2015, the related costs for severance and benefits are substantially complete, however we expect to incur immaterial adjustments to existing reserves in subsequent periods.

Fiscal 2015 Plan

Our Board of Directors has approved the strategic decision to separate our business into two independent publicly-traded companies: one focused on security and one focused on information management. We expect to complete this transaction by the end of December 2015, subject to market, regulatory and certain other conditions. In order to separate the business, we initiated a restructuring plan to properly align personnel and expect to incur associated severance and facilities costs. We also expect to incur separation costs in the form of advisory, consulting and disentanglement expenses. These actions are expected to be completed in fiscal 2016. We expect to incur total severance and facilities costs between $100 million and $120 million, more than half of which is expected to be incurred in fiscal 2015. We expect to incur separation costs between $80 million and $100 million, excluding any potential tax implications outside the U.S and potential advisor fees payable upon separation. Total restructuring and separation costs are expected to be between $180 million and $220 million. As of January 2, 2015, liabilities for excess facility obligations at several locations around the world are expected to be paid throughout the respective lease terms as we continue to occupy these facilities, the longest of which extends through fiscal 2016.

Restructuring, separation, and transition expense summary



	Three Months Ended January 2, 2015		Nine Months Ended January 2, 2015
	(Dollars in millions)
Fiscal 2014 Plan Total	$	—	$	16
Fiscal 2015 Plan
Severance costs	39		47
Separation costs	29		38
Other exit and disposal costs	1		1
Fiscal 2015 Plan Total	69		86
Transition and other related costs	12		29
Total restructuring, separation, and transition costs	$	81	$	131

Restructuring, separation, and transition liabilities summary



	March 28, 2014		Costs, Net of Adjustments		Cash Payments			January 2, 2015		Cumulative Incurred to Date
	(Dollars in millions)
Fiscal 2014 Plan Total	$	38	$	16	$	(47	)	$	7	$	238
Fiscal 2015 Plan
Severance costs	—		47		(15		)	32		47
Separation costs	—		38		(31		)	7		38
Other exit and disposal costs	—		1		—			1		1
Fiscal 2015 Plan Total	—		86		(46		)	40		86
Total restructuring and separation liabilities	$	38	102		$	(93	)	$	47
Transition and other related costs			29
Total restructuring, separation, and transition costs			$	131



Balance Sheet:	January 2, 2015		March 28, 2014
	(Dollars in millions)
Other current liabilities	$	47	$	37
Other long-term obligations	—		1
Total restructuring liabilities	$	47	$	38