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Restructuring and Other Charges
9 Months Ended
Apr. 29, 2017
Restructuring Charges [Abstract]  
Restructuring and Other Charges
Restructuring and Other Charges
In August 2016, the Company announced a restructuring plan (the "Fiscal 2017 Plan") in order to reinvest in its key priority areas in which up to 5,500 employees would be impacted, with estimated pretax charges of approximately $700 million. In May 2017, the Company extended the Fiscal 2017 Plan to include an additional 1,100 employees with $150 million of estimated additional pretax charges. The Company's estimated aggregate pretax charges of approximately $850 million under the Fiscal 2017 Plan consist primarily of severance and other one-time termination benefits, and other associated costs. These charges are primarily cash-based, and the Company expects the Fiscal 2017 Plan to be substantially completed by the end of the first quarter of fiscal 2018. The Company has incurred net charges of $70 million and $17 million for the three months ended April 29, 2017 and April 30, 2016, respectively, and $614 million and $253 million, net of a $2 million credit to cost of sales for the nine months ended April 29, 2017 and April 30, 2016, respectively.
In connection with a restructuring action announced in August 2014 (the “Fiscal 2015 Plan”), the Company incurred cumulative charges of approximately $756 million. The Company completed the Fiscal 2015 Plan in fiscal 2016.
The following tables summarize the activities related to the restructuring and other charges (in millions):
 
 
FISCAL 2015 PLAN
 
FISCAL 2017 PLAN
 
 
 
 
Employee
Severance
 
Other
 
Employee
Severance
 
Other
 
Total
Liability as of July 30, 2016
 
$
21

 
$
24

 
$

 
$

 
$
45

Charges
 

 

 
510

 
104

 
614

Cash payments
 
(14
)
 
(5
)
 
(449
)
 
(21
)
 
(489
)
Non-cash items
 
(4
)
 
(9
)
 
(3
)
 
(48
)
 
(64
)
Liability as of April 29, 2017
 
$
3

 
$
10

 
$
58

 
$
35

 
$
106

 
 
FISCAL 2015 AND PRIOR PLANS
 
 
 
 
Employee
Severance
 
Other
 
Total
Liability as of July 25, 2015
 
$
60

 
$
29

 
$
89

Charges
 
224

 
31

 
255

Cash payments
 
(238
)
 
(13
)
 
(251
)
Non-cash items
 

 
(21
)
 
(21
)
Liability as of April 30, 2016
 
$
46

 
$
26

 
$
72