Restructuring And Other Charges

9 Months Ended

Apr. 26, 2014

Restructuring and Related Activities [Abstract]


5.	Restructuring and Other Charges

August Fiscal 2014 Plan

In August 2013, the Company announced a workforce reduction plan that will impact up to 4,000 employees, or 5%, of the Company’s global workforce. This workforce reduction plan is designed to enable the Company to rebalance its workforce in order to reinvest in key growth areas such as the cloud, data center, mobility, services, software, and security and to drive operational efficiencies. As the Company intends to reinvest in the above areas, it does not expect significant overall cost savings as a result of this rebalancing of its resources.

In connection with this restructuring action, the Company incurred charges of $26 million and $336 million for the three and nine months ended April 26, 2014. The Company expects total pre-tax charges pursuant to these restructuring actions not to exceed $500 million, and that substantially all of the remaining charges will be incurred in the fourth quarter of fiscal 2014.

The following table summarizes the activities related to the restructuring and other charges pursuant to the August Fiscal 2014 Plan (in millions):



August Fiscal 2014 Plan	Employee Severance			Other			Total
Gross charges in fiscal 2014	$	331		$	5		$	336
Cash payments	(306		)	—			(306		)
Non-cash items	—			(5		)	(5		)
Liability as of April 26, 2014	$	25		$	—		$	25

Fiscal 2011 Plans

The Fiscal 2011 Plans consist primarily of the realignment and restructuring of the Company’s business announced in July 2011 and of certain consumer product lines as announced during April 2011. The Company completed the Fiscal 2011 Plans at the end of fiscal 2013 and does not expect any remaining charges related to these actions. The Company incurred cumulative charges of approximately $1.1 billion in connection with these plans. For the three and nine months ended April 27, 2013, such charges were $33 million and $105 million. The remaining liability balance as of April 26, 2014 was $4 million inclusive of severance and non-severance activities.

- 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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