XML 109 R15.htm IDEA: XBRL DOCUMENT v3.2.0.727
Restructuring and Other Charges
12 Months Ended
Jul. 25, 2015
Restructuring Charges [Abstract]  
Restructuring and Other Charges
5.
Restructuring and Other Charges
Fiscal 2015 Plan The Company announced a restructuring action in August 2014 (the "Fiscal 2015 Plan"), in order to realign its workforce towards key growth areas of its business such as data center, software, security, and cloud. In connection with the Fiscal 2015 Plan, the Company incurred charges of $489 million during fiscal 2015. The Company estimates that it will recognize aggregate pretax charges pursuant to the restructuring of approximately $700 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 Fiscal 2015 Plan to be substantially completed during the first half of fiscal 2016.
Fiscal 2014 Plan and Fiscal 2011 Plans In connection with a restructuring action announced in August 2013 (the "Fiscal 2014 Plan"), the Company incurred cumulative charges of approximately $418 million. The Company completed the Fiscal 2014 Plan at the end of fiscal 2014.
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, with a total $105 million of charges having been incurred in fiscal 2013. The Company incurred cumulative charges of approximately $1.1 billion in connection with these plans.
The following table summarizes the activities related to the restructuring and other charges, as discussed above (in millions):
 
 
FISCAL 2014 AND
FISCAL 2011 PLANS
 
FISCAL 2015 PLAN
 
 
 
 
Employee
Severance
 
Other
 
Employee
Severance
 
Other
 
Total
Liability as of July 28, 2012
 
$
83

 
$
27

 
$

 
$

 
$
110

Charges
 
111

 
(6
)
 

 

 
105

Cash payments
 
(173
)
 
(11
)
 

 

 
(184
)
Non-cash items
 

 
(3
)
 

 

 
(3
)
Liability as of July 27, 2013
 
21

 
7

 

 

 
28

Charges
 
366

 
52

 

 

 
418

Cash payments
 
(345
)
 
(7
)
 

 

 
(352
)
Non-cash items
 
(2
)
 
(23
)
 

 

 
(25
)
Liability as of July 26, 2014
 
40

 
29

 

 

 
69

Charges
 

 

 
464

 
20

 
484

Cash payments
 
(29
)
 
(14
)
 
(413
)
 
(3
)
 
(459
)
Non-cash items
 

 
(1
)
 
(2
)
 
(2
)
 
(5
)
Liability as of July 25, 2015
 
$
11

 
$
14

 
$
49

 
$
15

 
$
89


During fiscal 2015, in addition to the above amounts, the Company incurred $5 million of restructuring and other charges within cost of sales.