Restructuring, Separation, and Transition

6 Months Ended

Oct. 02, 2015

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 include advisory, consulting and other costs incurred in connection with the separation of our information management business. Transition and other related costs primarily 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 October 2, 2015, the related costs for severance and benefits are substantially complete; however, we may experience immaterial adjustments to existing accruals in subsequent periods.

Fiscal 2015 Plan

In fiscal 2015, we announced plans to separate our security and information management businesses. In order to separate the businesses, we initiated a restructuring plan to properly align personnel and are incurring associated severance and facilities costs. We are also incurring separation costs in the form of advisory, consulting and disentanglement expenses. These actions are expected to be substantially completed by the end of the third quarter of fiscal 2016. Total remaining restructuring and separation costs are expected to be between $50 million and $100 million, excluding tax implications and potential advisor fees payable upon separation. As of October 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 2019.

Restructuring, separation, and transition expense summary



	Three Months Ended October 2, 2015		Six Months Ended October 2, 2015
	(Dollars in millions)
Fiscal 2015 Plan
Severance costs	$	—	$	21
Separation costs	73		136
Other exit and disposal costs	3		4
Fiscal 2015 Plan Total	76		161
Transition and other related costs	35		74
Total restructuring, separation, and transition costs	$	111	$	235

Restructuring, separation, and transition liabilities summary



	April 3, 2015		Costs, Net of Adjustments		Cash Payments			October 2, 2015		Cumulative Incurred to Date
	(Dollars in millions)
Fiscal 2014 Plan total	$	4	$	—	$	(3	)	$	1	$	238
Fiscal 2015 Plan
Severance costs	59		21		(58		)	22		123
Separation costs	17		136		(104		)	49		217
Other exit and disposal costs	6		4		(4		)	6		11
Fiscal 2015 Plan total	$	82	$	161	$	(166	)	$	77	$	351
Restructuring and separation plans total	$	86	$	161	$	(169	)	$	78
Transition and other related costs			74
Total restructuring, separation, and transition costs			$	235

The restructuring and separation liabilities are included in accounts payable, other current liabilities and other long-term obligations in our Condensed Consolidated Balance Sheets.