Restructuring, Transition and Other Costs

12 Months Ended

Apr. 03, 2020

Restructuring and Related Activities [Abstract]

Restructuring, Transition and Other Costs

Our restructuring, transition and other costs consist primarily of severance, contract cancellations, 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. Separation costs primarily consist of consulting costs incurred in connection with our divestitures. 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 transition projects were completed by the end of fiscal 2019.

November 2019 Plan

In November 2019, our Board of Directors approved a restructuring plan (the November 2019 Plan) in connection with the strategic decision to divest our Enterprise Security business. Actions under this plan include the reduction of our workforce by approximately 3,100 employees, as well as asset write-offs and impairments, contract terminations, facilities closures, and the

sale of underutilized facilities. As of April 3, 2020, we estimate that we will incur total costs of $550 million, excluding stock-based compensation expense, in connection with the November 2019 Plan, of which up to $200 million is expected to consist of cash expenditures for severance and termination benefits and $110 million of cash expenditures for contract terminations. Non-cash costs are estimated to be up to $240 million related to asset write-offs and other restructuring costs. These actions are expected to be completed by September 2020. As of April 3, 2020, we have incurred costs of $423 million related to our November 2019 Plan, including $117 million of stock-based compensation.

In addition, in connection with the Broadcom sale, our Board of Directors approved an equity-based severance program under which certain equity awards to certain terminated employees were accelerated. See Note 15 for more information on the impact of this program.

August 2019 Plan

On August 6, 2019, our Board of Directors approved a restructuring plan (the August 2019 Plan) to improve productivity and reduce complexity in the way we manage the business. Under the August 2019 Plan, we reduced our global headcount and closed certain facilities. These actions were completed in fiscal 2020. As of April 3, 2020, we have incurred costs of $53 million related to our August 2019 Plan, primarily consisting of severance and termination benefits.

August 2018 Plan

In August 2018, we announced a restructuring plan (the August 2018 Plan) under which we incurred costs of $48 million as of April 3, 2020. These actions were completed in fiscal 2020.

Restructuring, transition and other costs summary

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



	Year Ended
(In millions)	April 3, 2020		March 29, 2019		March 30, 2018
Severance and termination benefit costs	$	90	$	19	$	33
Contract cancellation charges	101		—		—
Stock-based compensation charges	20		—		—
Asset write-offs and impairments	47		2		25
Other exit and disposal costs	7		12		50
Separation costs	1		3		88
Transition costs	—		185		184
Total restructuring, transition and other	$	266	$	221	$	380

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:



	Year Ended
(In millions)	April 3, 2020		March 29, 2019		March 30, 2018
Severance and termination benefit costs	$	121	$	9	$	28
Contract cancellation charges	5		—		—
Stock-based compensation charges	97		—		—
Asset write-offs	13		—		—
Other exit and disposal costs	—		3		2
Separation costs	25		—		—
Transition costs	—		8		—
Total restructuring, transition and other	$	261	$	20	$	30

Restructuring summary

Our activities related to our restructuring plans are presented in the tables below:

November 2019 Plan



(In millions)	Liability Balance as of March 29, 2019		Net Charges		Cash Payments			Non-Cash Items			Liability Balance as of April 3, 2020
Severance and termination benefit costs	$	—	$	138	$	(103	)	$	—		$	35
Contract cancellation charges	—		106		(88		)	(11		)	7
Stock-based compensation charges	—		117		—			(117		)	—
Asset write-offs and impairments	—		57		—			(57		)	—
Other exit and disposal costs	—		5		(5		)	—			—
Total	$	—	$	423	$	(196	)	$	(185	)	$	42

August 2019 Plan



(In millions)	Liability Balance as of March 29, 2019		Net Charges		Cash Payments			Non-Cash Items			Liability Balance as of April 3, 2020
Severance and termination benefit costs	$	—	$	50	$	(50	)	$	—		$	—
Asset write-offs	—		3		—			(3		)	—
Total	$	—	$	53	$	(50	)	$	(3	)	$	—

August 2018 Plan



(In millions)	Liability Balance as of March 29, 2019		Net Charges		Cash Payments			Non-Cash Items		Liability Balance as of April 3, 2020
Severance and termination benefit costs	$	11	$	23	$	(34	)	$	—	$	—
Other exit and disposal costs	2		2		(4		)	—		—
Total	$	13	$	25	$	(38	)	$	—	$	—

The restructuring liabilities are included in Accounts payable and Other current liabilities in our Consolidated Balance Sheets.