RESTRUCTURING

We initiated a targeted workforce reduction program in July 2015 that was designed to restructure our operations and cost structure for optimization of resources and cost savings. Approximately 100 employees of our total workforce were impacted by this program. In 2015, we also announced a voluntary pre-retirement notification program for retirement-eligible employees to provide early notice of their planned retirement in return for severance benefits. Approximately 160 employees of our total workforce opted for this program. Severance payments under both programs were complete at October 31, 2016.

We initiated a targeted workforce reduction program in November 2016 that is expected to reduce Keysight's total headcount by between 60 to 200 employees. The timing and scope of workforce reductions will vary based on local legal requirements. This targeted workforce management program was designed to support our site consolidation strategy, align with our new industry segment structure and improve efficiency. As of October 31, 2017, approximately 85 employees exited under this workforce reduction program, which we expect to be substantially complete by the end of first quarter of fiscal 2018.

A summary of balances and restructuring activity for the above plans is shown in the table below:



	Workforce reduction			U.S. Pre-retirement Plan
	(in millions)
Balance at October 31, 2015	$	4		$	2
Cash payments	(4		)	(2		)
Balance at October 31, 2016	—			—
Income statement expense	8			—
Cash payments	(6		)	—
Balance at October 31, 2017	$	2		$	—

The restructuring accrual of $2 million at October 31, 2017 relating to workforce reduction is recorded in other accrued liabilities in the consolidated balance sheet.

A summary of the charges in the consolidated statement of operations resulting from all restructuring activities, including acquisition and other activities, is shown below:



	Year Ended October 31,
	2017		2016		2015
	(in millions)
Cost of products and services	$	1	$	—	$	4
Research and development	3		—		2
Selling, general and administrative	8		—		10
Total restructuring and other related costs	$	12	$	—	$	16