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Restructuring

3 Months Ended

Jul. 01, 2011

Note 7. Restructuring

Our restructuring costs and liabilities consist primarily of severance, benefits, and facilities costs. Severance and benefits generally include severance payments, outplacement services, health insurance coverage, effects of foreign currency exchange, and legal costs. Facilities costs generally include rent expense, less expected sublease income and lease termination costs. Restructuring expenses are included in the Other segment.

Restructuring Plans

The following restructuring plans are substantially complete:

Fiscal 2011 Plan. In the first quarter of fiscal 2011, management approved and initiated a plan to expand our consulting partner sales and delivery capabilities. This action was initiated to expand our partner eco-system to better leverage their customer reach and operational scale, which resulted in a headcount reduction within our consulting services organization.

Fiscal 2010 Plan. In the fourth quarter of fiscal 2010, management approved and initiated a plan to reduce worldwide operating costs through a workforce realignment and to reduce operating costs through a facilities consolidation. These actions were initiated to appropriately allocate resources to our key strategic initiatives and streamline our operations to deliver better and more efficient support to our customers and employees. During fiscal 2011, we terminated operating leases and consolidated facilities in North America and Europe. Excess facility obligations are expected to be paid over the respective lease terms, the longest of which extends through fiscal 2016.

Other Exit and Disposal Costs

Largely as a result of business acquisitions, management may deem certain leased facilities to be in excess and make a plan to exit them either at the time of acquisition or after the acquisition in conjunction with our efforts to integrate and streamline our operations. As of July 1, 2011, liabilities for these excess facility obligations at several locations around the world are expected to be paid over the respective lease terms, the longest of which extends through fiscal 2018.

Restructuring Summary


			Restructuring Liabilities
		April 1, 2011		Costs, net of Adjustments		Cash Payments		July 1, 2011	Cumulative Incurred to Date
Restructuring plans:		(In millions)
Severance	$ 3			$ 2		$ (3)		$ 2	$ 72
Facilities	10			2		(1)		11	21
Total restructuring	13			4		(4)		13	93

Other exit and disposal costs	13			3		(4)		12
Total liabilities	$ 26			$ 7		$ (8)		$ 25
Transition and other related costs					5
Total charges					$ 12

Balance Sheet:
Other current liabilities	$ 14						$ 12
Other long-term obligations	12						13
	$ 26						$ 25

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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