Restructuring And Transition

9 Months Ended

Dec. 30, 2011

Restructuring And Transition [Abstract]

Note 8. Restructuring and Transition

Our restructuring and transition costs and liabilities consist primarily of severance, facilities costs, and transition and other related costs. Severance generally includes severance payments, outplacement services, health insurance coverage, effects of foreign currency exchange, and legal costs. Facilities costs generally include rent expense and lease termination costs, less expected sublease income. Transition and other related costs consist of severance costs associated with acquisition integrations in efforts to streamline our business operations, consulting charges associated with the implementation of a new Enterprise Resource Planning system, and costs related to the outsourcing of certain back office functions. Restructuring and transition costs 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 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 2018.

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 December 30, 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 2016.

Restructuring and Transition Summary


Restructuring Liabilities
					Cash Payments					Cumulative Incurred to Date
			Costs, Net of Adjustments ⁽¹⁾					December 30, 2011
	April 1, 2011		Costs, Net of Adjustments ⁽¹⁾					December 30, 2011

	(In millions)
Restructuring plans:
Severance	$	3	$	3	$	(5	)	$	1	$	78
Facilities		10		1		(4	)		7		23
Total restructuring plans		13		4		(9	)		8		101

Other exit and disposal costs		13		3		(8	)		8
Total liabilities	$	26	$	7	$	(17	)	$	16
Transition and other related costs				18
Total restructuring and transition			$	25

Balance Sheet:
Other current liabilities	$	14						$	7
Other long-term obligations		12							9
	$	26						$	16

(1) Total net adjustments were not material for the nine months ended of December 30, 2011. Adjustments primarily relate to foreign currency exchange rate fluctuations.

- 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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