Restructuring And Transition

12 Months Ended

Mar. 29, 2013

Restructuring And Transition [Abstract]

Note 7. 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, and legal costs. Facilities costs generally include rent expense and lease termination costs, less estimated sublease income. Transition and other related costs primarily consist of severance costs associated with acquisition integrations in efforts to streamline our business operations, and consulting charges associated with the planning and design phase of a new enterprise resource planning system. Restructuring and transition costs are included in the Other segment.

Restructuring plan

In the fourth quarter of fiscal 2013, the Company announced its strategic direction to streamline and simplify the Company in order to deliver significantly improved performance to customers and partners. The Company intends to focus on key strategic customer offerings and simplify our Go-To-Market strategy and organizational structure. In order to deliver on this focus, the Company initiated a restructuring plan to reduce the layers of management and redundant personnel resulting in headcount reductions across the Company. These actions are expected to be completed in fiscal 2014. As of March 29, 2013, total cost incurred to date is $10 million, primarily related to severance and benefits. We expect to incur total severance and benefit costs between $220 million and $250 million.

Other exit and disposal costs

Our other exit and disposal costs consist primarily of costs associated with closing or consolidating certain facilities. 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 March 29, 2013, 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 and transition summary


	March 30, 2012	Costs, Net of Adjustments ⁽¹⁾	Cash Payments	March 29, 2013	Cumulative Incurred to Date
	(In millions)
Restructuring liabilities:
Restructuring plan - severance	$ -	$ 10	$ -	$ 10	$ 10
Other exit and disposal costs	16	-	(13)	3
Total restructuring liabilities	$ 16	$ 10	$ (13)	$ 13
Transition and other related costs		115
Total restructuring and transition		$ 125
Balance Sheet:
Other current liabilities	$ 8			$ 11
Other long-term obligations	8			2
Total restructuring liabilities	$ 16			$ 13

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⁽¹⁾ Adjustments primarily relate to foreign currency exchange rate fluctuations. Included in transition and other related costs is $58 million of costs associated with the planning and design phase of a new enterprise resource planning system, $47 million of severance costs and $10 million of other related costs.

- 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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