Restructuring, Transition and Other Costs

6 Months Ended

Sep. 29, 2017

Restructuring and Related Activities [Abstract]

Restructuring, Transition and Other Costs

Our restructuring, transition and other costs and liabilities consist primarily of severance, facilities, transition and other related costs. Severance costs generally include severance payments, outplacement services, health insurance coverage and legal costs. Included in other exit and disposal costs are advisory fees incurred in connection with restructuring events and facilities costs, which generally include rent expense and lease termination costs, less estimated sublease income. Transition costs primarily consist of consulting charges associated with the implementation of new enterprise resource planning systems, costs to automate business processes and costs associated with divestitures of our product lines and businesses. Restructuring, transition and other costs are managed at the corporate level and are not allocated to our reportable segments. See Note 2 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 have reduced headcount and closed certain facilities in connection with the Fiscal 2017 Plan and expect additional headcount reductions and facilities closures. We expect to incur additional costs of between $165 million and $200 million in connection with the Fiscal 2017 Plan, of which approximately $70 million to $80 million is expected to be incurred for severance and termination benefits and $95 million to $120 million is expected to be incurred for other exit and disposal costs, primarily consisting of contract termination and relocation costs and advisory fees. These actions are expected to be completed in fiscal 2018. As of September 29, 2017, 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 2022. In addition to the Fiscal 2017 Plan, we expect continuing significant transition costs, as well as separation costs associated with our divestiture of our WSS and PKI product lines.

Restructuring, transition and other costs summary

Our restructuring, transition and other costs are presented in the table below:



(In millions)	Three Months Ended September 29, 2017		Six Months Ended September 29, 2017
Severance and termination benefit costs	$	12	$	39
Other exit and disposal costs	1		17
Asset write-offs	8		9
Transition costs	76		120
Total	$	97	$	185

Restructuring summary

Our restructuring activities are presented in the table below:



(In millions)	Balance as of March 31, 2017		Costs, Net of Adjustments		Cash Payments			Non-Cash Charges			Balance as of September 29, 2017		Cumulative Incurred to Date for FY17 Plan
Severance and termination benefit costs	$	20	$	39	$	(49	)	$	—		$	10	$	115
Other exit and disposal costs	26		17		(20		)	(8		)	15		96
Total	$	46	$	56	$	(69	)	$	(8	)	$	25	$	211

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