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Restructuring and Other Charges
9 Months Ended
Apr. 25, 2020
Restructuring Charges [Abstract]  
Restructuring and Other Charges
Restructuring and Other Charges
We initiated a restructuring plan in the third quarter of fiscal 2020 (the “Fiscal 2020 Plan”) in order to realign the organization and enable further investment in key priority areas. The total pretax charges are estimated to be approximately $300 million. These aggregate pretax charges related to the Fiscal 2020 Plan are primarily cash-based and consist of employee severance and other one-time termination benefits, and other costs. In connection with the Fiscal 2020 Plan, we incurred charges of $128 million for the third quarter and first nine months of fiscal 2020. We expect the Fiscal 2020 Plan to be substantially completed in fiscal 2021.
We initiated a restructuring plan during fiscal 2018 (the “Fiscal 2018 Plan”) in order to realign the organization and enable further investment in key priority areas. The aggregate pretax charges related to the Fiscal 2018 Plan were primarily cash-based and consisted of employee severance and other one-time termination benefits, and other associated costs. In connection with the Fiscal 2018 Plan, we incurred charges of $226 million in the first nine months of fiscal 2020 and have incurred cumulative charges of $656 million. We completed the Fiscal 2018 Plan in the second quarter of fiscal 2020.
The following tables summarize the activities related to the restructuring and other charges (in millions):
 
 
FISCAL 2018 AND PRIOR PLANS
 
FISCAL 2020 PLAN
 
 
 
 
Employee
Severance
 
Other
 
Employee
Severance
 
Other
 
Total
Liability as of July 27, 2019
 
$
22

 
$
11

 
$

 
$

 
$
33

Charges
 
209

 
17

 
116

 
12

 
354

Cash payments
 
(217
)
 
(2
)
 
(35
)
 
(6
)
 
(260
)
Non-cash items
 

 
(23
)
 

 
(6
)
 
(29
)
Liability as of April 25, 2020
 
$
14

 
$
3

 
$
81

 
$

 
$
98

 
 
FISCAL 2017 AND PRIOR PLANS
 
FISCAL 2018 PLAN
 
 
 
 
Employee
Severance
 
Other
 
Employee
Severance
 
Other
 
Total
Liability as of July 28, 2018
 
$
41

 
$
13

 
$
19

 
$

 
$
73

Charges
 

 
(1
)
 
232

 
51

 
282

Cash payments
 
(34
)
 
(7
)
 
(232
)
 
(2
)
 
(275
)
Non-cash items
 

 

 

 
(46
)
 
(46
)
Liability as of April 27, 2019
 
$
7

 
$
5

 
$
19

 
$
3

 
$
34