Restructuring, Separation, Transition, and Other Costs

Our restructuring, separation, transition, and other 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 related costs include advisory, consulting and other costs incurred in connection with the separation of Veritas. Transition costs primarily consist of consulting charges associated with the implementation of new enterprise resource planning systems and costs to automate business processes. Other costs primarily consist of asset write-offs and advisory fees incurred in connection with restructuring events. Restructuring, separation, transition, and other costs are managed at the corporate level and are not allocated to our reportable segments. See Note 9 for information regarding the reconciliation of total segment operating income to total consolidated operating income (loss).

Fiscal 2017 Plan

We initiated a restructuring plan in the first quarter of fiscal 2017 to reduce complexity by means of long-term structural improvements (the “Fiscal 2017 Plan”). We expect to reduce headcount and close certain facilities in connection with the restructuring plan. We expect total costs incurred in connection with the Fiscal 2017 Plan to range between $230 million and $280 million, of which approximately $90 million to $100 million is expected to be for severance and termination benefits and $90 million to $130 million is expected to be for other exit and disposal costs primarily consisting of contract termination and relocation costs and advisory fees. The remainder is expected to be in the form of asset write-offs. These actions are expected to be completed in fiscal 2018. Additionally, we expect continuing significant transition costs associated with the implementation of a new enterprise resource planning system and costs to automate business processes. As of December 30, 2016, liabilities for excess facility obligations at several locations around the world are expected to be paid throughout the respective lease terms, the longest of which extends through fiscal 2023.

Fiscal 2015 Plan

In fiscal 2015, we initiated a restructuring plan primarily to align personnel with our plans to separate Veritas (the “Fiscal 2015 Plan”). These actions were substantially completed in the fourth quarter of fiscal 2016 with the sale of Veritas on January 29, 2016. See Note 6 for more information on the sale of Veritas.

Restructuring, separation, transition, and other costs summary



	Three Months Ended		Nine Months Ended
	December 30, 2016		December 30, 2016
	(In millions)
Fiscal 2017 Plan:
Severance and termination costs	$	19	$	57
Other exit and disposal costs	17		52
Asset write-offs	2		16
Fiscal 2017 Plan total	38		125
Fiscal 2015 Plan total	3		5
Transition and other related costs	26		71
Restructuring, separation, transition, and other from continuing operations	67		201
Restructuring, separation, transition, and other from discontinued operations	1		11
Total restructuring, separation, transition, and other	$	68	$	212

Restructuring and separation liabilities summary



	Balance as of April 1, 2016		Costs, Net of Adjustments		Cash Payments			Non-Cash Charges			Balance as of December 30, 2016		Cumulative Incurred to Date
	(In millions)
Fiscal 2017 Plan:
Severance and termination costs	$	—	$	57	$	(42	)	$	—		$	15	$	57
Other exit and disposal costs	4		52		(38		)	(1		)	17		56
Asset write-offs	—		16		—			(16		)	—		16
Fiscal 2017 Plan total	4		125		(80		)	(17		)	32		$	129
Fiscal 2015 Plan total	29		16		(34		)	(5		)	6		$	472
Restructuring and separation plans total	$	33	$	141	$	(114	)	$	(22	)	$	38

As of December 30, 2016 and April 1, 2016, the restructuring and separation liabilities are included in accounts payable, other current liabilities and other long-term obligations in our Condensed Consolidated Balance Sheets.