Restructuring and Other Costs

12 Months Ended

Apr. 01, 2022

Restructuring and Related Activities [Abstract]

Restructuring and Other Costs

Restructuring and Other CostsOur restructuring and other costs consist primarily of severance, contract cancellations, separation and other related costs. 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. Other exit and disposal costs include costs to exit and consolidate facilities and advisory fees incurred in connection with restructuring events. Separation costs primarily consist of consulting costs incurred in connection with our divestitures.

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. These actions were completed in fiscal 2022. Any remaining costs or adjustments are immaterial. We incurred total costs of $24 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 $528 million, excluding stock-based compensation expense, under the November 2019 Plan.

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. As of April 1, 2022, 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.

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, and we incurred total costs of $53 million, primarily consisting of severance and termination benefits.

Restructuring and other costs summary

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

	Year Ended
(In millions)	April 1, 2022		April 2, 2021		April 3, 2020
Severance and termination benefit costs	$	5	$	31	$	90
Contract cancellation charges	3		51		101
Stock-based compensation charges	—		10		20
Asset write-offs and impairments	5		58		47
Other exit and disposal costs	18		11		7
Separation costs	—		—		1
Total restructuring and other	$	31	$	161	$	266

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 for all periods presented. Our restructuring and other costs attributable to discontinued operations are presented in the table below. There was no discontinued operations activity during the year ended April 1, 2022.

	Year Ended
(In millions)	April 2, 2021		April 3, 2020
Severance and termination benefit costs	$	64	$	121
Contract cancellation charges	—		5
Stock-based compensation charges	—		97
Asset write-offs and impairments	—		13
Separation costs	2		25
Total restructuring and other	$	66	$	261

Restructuring summary

Our activities and liability balances related to our December 2020 Plan are presented in the tables below:

(In millions)	Liability Balance as of April 2, 2021		Net Charges		Cash Payments		Non-Cash Items		Liability Balance as of April 1, 2022
Severance and termination benefit costs	$	3	$	5	$	(8)	$	—	$	—
Other exit and disposal costs	—		7		(1)		(6)		—
Total	$	3	$	12	$	(9)	$	(6)	$	—

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