Restructuring, Transition and Other Costs

6 Months Ended

Oct. 04, 2019

Restructuring and Related Activities [Abstract]

Restructuring, Transition and Other Costs

Our restructuring, transition and other costs 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. Included in other exit and disposal costs are advisory fees incurred in connection with restructuring events and facilities exit costs, which generally include rent expense and lease termination costs, less estimated sublease income. Separation costs primarily consist of consulting costs incurred in connection with the divestiture of our Enterprise Security business. Transition costs are incurred in connection with Board of Directors approved discrete strategic information technology transformation initiatives and primarily consist of consulting charges associated with our enterprise resource planning and supporting systems and costs to automate business processes. Such projects were completed by the end of fiscal 2019.

Fiscal 2020 Plan

On August 6, 2019, our Board of Directors approved a fiscal 2020 restructuring plan (the Fiscal 2020 Plan) to improve productivity and reduce complexity in the way we manage the business. We expect to reduce net global headcount by approximately 7%. We also plan to downsize, vacate or close certain facilities and data centers in connection with the restructuring plan. We estimate that we will incur total costs in connection with the restructuring of approximately $100 million,

approximately $75 million for severance and termination benefits and $25 million for site closures. These actions are expected to be completed in fiscal 2020. As of October 4, 2019, we have incurred costs of $49 million related to our Fiscal 2020 Plan.

Fiscal 2019 Plan

In August 2018, we announced a restructuring plan (the Fiscal 2019 Plan) under which we incurred costs of $48 million as of October 4, 2019. These actions were substantially completed in fiscal 2020.

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), under which we reduced headcount and closed certain facilities. These actions were completed in fiscal 2019 at a cumulative cost of $289 million related to our Fiscal 2017 Plan.

Restructuring, transition and other costs summary

Our restructuring, transition and other costs attributable to continuing operations are presented in the table below:



	Three Months Ended				Six Months Ended
(In millions)	October 4, 2019		September 28, 2018		October 4, 2019		September 28, 2018
Severance and termination benefit costs	$	17	$	—	$	28	$	5
Other exit and disposal costs	—		1		2		8
Asset write-offs	—		—		—		2
Separation costs	—		—		—		3
Transition costs	—		51		—		119
Total restructuring, transition and other costs	$	17	$	52	$	30	$	137

In connection with the agreement to sell certain assets of our Enterprise Security business, a portion of our restructuring, transition and other costs were classified to discontinued operations for all periods presented. Our restructuring, transition and other costs attributable to discontinued operations are presented in the table below:



	Three Months Ended				Six Months Ended
(In millions)	October 4, 2019		September 28, 2018		October 4, 2019		September 28, 2018
Severance and termination benefit costs	$	33	$	—	$	45	$	7
Other exit and disposal costs	—		—		—		2
Separation costs	7		—		7		—
Transition costs	—		4		—		6
Total restructuring, transition and other	$	40	$	4	$	52	$	15