Restructuring and Other Charges

3 Months Ended

Oct. 25, 2014


5.	Restructuring and Other Charges

Fiscal 2015 Plan

In connection with a restructuring action announced in August 2014, the Company incurred cumulative charges of $318 million for the first quarter of fiscal 2015. The Company estimates that it will recognize aggregate pre-tax charges pursuant to the restructuring action in an amount not expected to exceed $600 million, consisting of severance and other one-time termination benefits and other associated costs. These charges are primarily cash-based and the Company expects the remaining amount to be recognized during the remainder of fiscal 2015.

Fiscal 2014 Plan

The Fiscal 2014 Plan is a workforce reduction plan the Company announced in August 2013. In connection with this restructuring action, the Company incurred cumulative charges of approximately $418 million, of which $237 million was incurred during the three months ended October 26, 2013. The Company completed the Fiscal 2014 Plan at the end of fiscal 2014.

The following table summarizes the activities related to the restructuring and other charges as discussed above (in millions):



	Fiscal 2014 and Prior Plans						Fiscal 2015 Plan
	Employee Severance			Other			Employee Severance			Other			Total
Liability as of July 26, 2014	$	40		$	29		$	—		$	—		$	69
Gross charges in fiscal 2015	—			—			322			(4		)	318
Cash payments	(13		)	—			(142		)	—			(155		)
Non-cash items	—			(4		)	—			4			—
Liability as of October 25, 2014	$	27		$	25		$	180		$	—		$	232

- 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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