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Restructuring and Other Charges
12 Months Ended
Jul. 30, 2016
Restructuring Charges [Abstract]  
Restructuring and Other Charges
5.
Restructuring and Other Charges
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 this plan, the Company incurred cumulative charges of approximately $756 million. The Company completed the Fiscal 2015 Plan at the end of fiscal 2016.
In connection with a restructuring action announced in August 2013 (the “Fiscal 2014 Plan”), the Company incurred cumulative charges of approximately $417 million, of which a $1 million credit was recognized in fiscal 2016. 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 YEAR PLANS
 
FISCAL 2015 PLAN
 
 
 
 
Employee
Severance
 
Other
 
Employee
Severance
 
Other
 
Total
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

Charges
 

 
(1
)
 
225

 
44

 
268

Cash payments
 
(11
)
 
(4
)
 
(253
)
 
(11
)
 
(279
)
Non-cash items
 

 

 

 
(33
)
 
(33
)
Liability as of July 30, 2016
 
$

 
$
9

 
$
21

 
$
15

 
$
45


In addition to the above amounts, the Company incurred $2 million credit and $5 million of restructuring and other charges within cost of sales during fiscal 2016 and fiscal 2015, respectively.
In August 2016, the Company announced a restructuring plan that will impact up to 5,500 employees, representing approximately 7% of its global workforce. The Company began taking action under this plan in the first quarter of fiscal 2017. The Company currently estimates that it will recognize pre-tax charges of up to $700 million consisting of severance and other one-time termination benefits, and other associated costs. These charges are primarily cash based. The Company expects that approximately $325 million to $400 million of these charges will be recognized during the first quarter of fiscal 2017, with the remaining amount to be recognized during the rest of the fiscal 2017.