Restructuring and Other Costs

9 Months Ended

Dec. 30, 2022

Restructuring and Related Activities [Abstract]

Restructuring and Other Costs

Restructuring and Other Costs

Our restructuring costs generally consist of severance and termination benefits, contract cancellation charges, asset write-offs and impairments and other exit and disposal 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 in connection with restructuring events.

September 2022 Plan

In connection with the Merger, our Board of Directors approved a restructuring plan (the September 2022 Plan) to realize cost savings and operational synergies, which became effective upon the close of the Merger on September 12, 2022. Actions under this plan include the reduction of our workforce, contract terminations, facilities closures, and the sale of underutilized facilities as well as stock-based compensation charges for accelerated equity awards to certain terminated employees. We expect that we will incur total costs up to $280 million, with $180 million and $100 million estimated to be incurred within the first and second full years, respectively, following the completion of the Merger. These actions are expected to be completed by fiscal 2024. As of December 30, 2022, we have incurred costs of $48 million related to the September 2022 Plan.

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.

Restructuring and other costs summary

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

	Three Months Ended				Nine Months Ended
(In millions)	December 30, 2022		December 31, 2021		December 30, 2022		December 31, 2021
Severance and termination benefit costs	$	31	$	1	$	32	$	5
Contract cancellation charges	1		1		1		2
Stock-based compensation charges	8		—		8		—
Asset write-offs and impairments	2		—		2		—
Other exit and disposal costs	2		10		12		17
Total restructuring and other costs	$	44	$	12	$	55	$	24

Restructuring summary

Our activities and liabilities related to our September 2022 Plan are presented in the table below:

(in millions)	Liability Balance as of April 1, 2022		Costs, Net of Adjustments		Cash Payments		Non-Cash Items		Liability Balance as of December 30, 2022
Severance and termination benefit costs	$	—	$	32	$	(17)	$	—	$	15
Stock-based compensation charges	—		8		—		(8)		—
Asset write-offs and impairments	—		2		—		(2)		—
Other exit and disposal costs	—		6		(4)		(2)		—
Total	$	—	$	48	$	(21)	$	(12)	$	15

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