Restructuring and Other Costs

3 Months Ended

Jul. 02, 2021

Restructuring and Related Activities [Abstract]

Our restructuring and other costs consist primarily of severance and termination benefits, contract cancellation charges and asset write-offs and impairments. Severance costs generally include severance payments, outplacement services, health insurance coverage and legal costs. Contract cancellation charges primarily include penalties for early termination of contracts and write-offs of related prepaid assets.

December 2020 Plan

In December 2020, our Board of Directors approved a restructuring plan (the December 2020 Plan) to consolidate facilities and reduce operating costs in connection with our acquisition of Avira. We estimate that we will incur total costs of up to $20 million. These actions are expected to be completed in fiscal 2022. As of July 2, 2021, we have incurred total costs of $15 million under the December 2020 Plan.

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 included the reduction of our workforce as well as asset write-offs and impairments, contract terminations, facilities closures, and the sale of underutilized facilities. These actions were completed in fiscal 2021. Any remaining costs or adjustments are immaterial. We incurred total costs of $513 million, excluding stock-based compensation expense, under the November 2019 Plan.

In connection with the Broadcom sale, our Board of Directors also approved an equity-based severance program under which certain equity awards held by certain terminated employees were accelerated. As of July 2, 2021, we have incurred $127 million of stock-based compensation related to our equity-based severance program. See Note 15 for further information on the impact of this program.

Restructuring and other costs summary

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


	Three Months Ended
(In millions)	July 2, 2021		July 3, 2020
Severance and termination benefit costs	$	3	$	14
Contract cancellation charges	1		48
Stock-based compensation charges	—		7
Asset write-offs	—		55
Other exit and disposal costs	3		3
Total restructuring and other costs	$	7	$	127

In connection with the agreement to sell certain assets of our Enterprise Security business, a portion of our restructuring and other costs were classified to discontinued operations during the three months ended July 3, 2020. Our restructuring and other costs attributable to discontinued operations are presented in the table below. There was no discontinued operations activity during the three months ended July 2, 2021.


	Three Months Ended
	July 3, 2020
Severance and termination benefit costs	$	37




Separation costs	1
Total restructuring and other costs	$	38

Restructuring summary

Our activities and liabilities related to our December 2020 Plan are presented in the table below:


(in millions)	Liability Balance as of April 2, 2021		Costs, Net of Adjustments		Cash Payments		Liability Balance as of July 2, 2021
Severance and termination benefit costs	$	3	$	3	$	(4)	$	2
Total	$	3	$	3	$	(4)	$	2

The restructuring liabilities are included in Other current liabilities in our Condensed Consolidated Balance Sheets.