Restructuring and Other Charges

6 Months Ended

Jan. 23, 2021

We initiated a restructuring plan in the first quarter of fiscal 2021 (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. The total pretax charges are estimated to be approximately $900 million. In connection with the Fiscal 2021 Plan, we incurred charges of $232 million and $834 million for the second quarter and first six months of fiscal 2021, respectively.

We initiated a restructuring plan in 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. In connection with the Fiscal 2020 Plan, we have incurred cumulative charges of $257 million.

The aggregate pretax charges related to these plans are primarily cash-based and consist of severance and other one-time termination benefits, and other costs. We expect to substantially complete both plans in fiscal 2021.

The following tables summarize the activities related to the restructuring and other charges (in millions):


	FISCAL 2020 AND PRIOR PLANS				FISCAL 2021 PLAN
	Employee Severance		Other		Employee Severance		Other		Total
Liability as of July 25, 2020	$	58	$	14	$	—	$	—	$	72
Charges	—		2		804		30		836
Cash payments	(58)		(3)		(703)		(3)		(767)
Non-cash items	—		—		—		(21)		(21)
Liability as of January 23, 2021	$	—	$	13	$	101	$	6	$	120


	FISCAL 2018 AND PRIOR PLANS
	Employee Severance		Other		Total
Liability as of July 27, 2019	$	22	$	11	$	33
Charges	209		17		226
Cash payments	(202)		(1)		(203)
Non-cash items	—		(23)		(23)
Liability as of January 25, 2020	$	29	$	4	$	33