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Restructuring and Other Charges
12 Months Ended
Jul. 25, 2020
Restructuring Charges [Abstract]  
Restructuring and Other Charges
Restructuring and Other Charges
In the first quarter of fiscal 2021, we initiated a restructuring plan (the “Fiscal 2021 Plan”), which includes a voluntary early retirement program, in order to realign the organization and enable further investment in key priority areas with estimated pretax charges of approximately $900 million. These aggregate pretax charges will be primarily cash-based and will consist of severance and other one-time termination benefits, and other costs. We expect the plan to be substantially completed in fiscal 2021.
We initiated a restructuring plan during 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 $255 million during fiscal 2020. We expect the Fiscal 2020 Plan to be substantially completed in fiscal 2021.
In prior years, we initiated restructuring plans in order to realign our organization and enable further investment in key priority areas. The aggregate pretax charges related to these plans were primarily cash-based and consisted of employee severance and other one-time termination benefits, and other associated costs. These plans have been completed.
The following table summarizes the activities related to the restructuring and other charges, as discussed above (in millions):
 
 
FISCAL 2018 AND
PRIOR PLANS
 
FISCAL 2020 PLAN
 
 
 
 
Employee
Severance
 
Other
 
Employee
Severance
 
Other
 
Total
Liability as of July 29, 2017
 
$
74

 
$
43

 
$

 
$

 
$
117

Charges
 
319

 
39

 

 

 
358

Cash payments
 
(335
)
 
(37
)
 

 

 
(372
)
Non-cash items
 
2

 
(32
)
 

 

 
(30
)
Liability as of July 28, 2018
 
60

 
13

 

 

 
73

Charges
 
252

 
70

 

 

 
322

Cash payments
 
(289
)
 
(10
)
 

 

 
(299
)
Non-cash items
 
(1
)
 
(62
)
 

 

 
(63
)
Liability as of July 27, 2019
 
22

 
11

 

 

 
33

Charges
 
209

 
17

 
144

 
111

 
481

Cash payments
 
(224
)
 
(3
)
 
(93
)
 
(7
)
 
(327
)
Non-cash items
 

 
(23
)
 

 
(92
)
 
(115
)
Liability as of July 25, 2020
 
$
7

 
$
2

 
$
51

 
$
12

 
$
72