Restructuring

Summary of Restructuring Plans

Restructuring charges of $165 million and $93 million have been recorded by the Company for the three months ended July 31, 2017 and 2016, respectively, and restructuring charges of $399 million and $346 million have been recorded for the nine months ended July 31, 2017 and 2016, respectively, based on restructuring activities impacting the Company's employees and infrastructure. Restructuring activities related to the Company's employees and infrastructure, summarized by plan, are presented in the table below:



	Fiscal 2015 Plan						Fiscal 2012 Plan
	Employee Severance			Infrastructure and other			Employee Severance and EER			Infrastructure and other			Total
	In millions
Liability as of October 31, 2016	$	277		$	22		$	39		$	15		$	353
Charges	350			41			8			—			399
Cash payments	(351		)	(18		)	(26		)	(5		)	(400		)
Non-cash items	(33		)	(26		)	5			(8		)	(62		)
Liability as of July 31, 2017	$	243		$	19		$	26		$	2		$	290
Total costs incurred to date, as of July 31, 2017	$	794		$	99		$	1,237		$	222		$	2,352
Total costs expected to be incurred, as of July 31, 2017	$	982		$	248		$	1,237		$	222		$	2,689

The current restructuring liability reported in Accrued restructuring in the Condensed Consolidated Balance Sheets at July 31, 2017 and October 31, 2016 was $229 million and $301 million, respectively. The non-current restructuring liability reported in Other liabilities in the Condensed Consolidated Balance Sheets at July 31, 2017 and October 31, 2016 was $61 million and $52 million, respectively.

Restructuring charges of $275 million for the three months ended July 31, 2016 and $159 million and $494 million for the nine months ended July 31, 2017 and 2016, respectively, are included in Net loss from discontinued operations in the Condensed Consolidated Statements of Earnings. There were no restructuring charges included in Net loss from discontinued operations in the Condensed Consolidated Statement of Earnings for the three months ended July 31, 2017.

Fiscal 2015 Restructuring Plan

On September 14, 2015, former Parent's Board of Directors approved a restructuring plan (the "2015 Plan") in connection with the Separation, which will be implemented through fiscal 2018. As a result of the Everett Transaction, cost amounts and total headcount exits were revised. As such, as of July 31, 2017, the Company now expects up to approximately 13,400 employees to exit the Company by the end of 2018, of which approximately 3,100 remain as of July 31, 2017. The changes to the workforce will vary by country, based on local legal requirements and consultations with employee work councils and other employee representatives, as appropriate. As of July 31, 2017, the Company estimates that it will incur aggregate pre-tax charges of approximately $1.2 billion through fiscal 2018 in connection with the 2015 Plan, of which approximately $1.0 billion relates to workforce reductions and approximately $0.2 billion primarily relates to real estate consolidation and asset impairments.

Fiscal 2012 Restructuring Plan

On May 23, 2012, former Parent adopted a multi-year restructuring plan (the "2012 Plan") designed to simplify business processes, accelerate innovation and deliver better results for customers, employees and stockholders. As a result of the Everett Transaction, cost amounts and total headcount exits were revised. As such, as of July 31, 2017, the Company had eliminated 12,700 positions, with a portion of those employees exiting the Company as part of voluntary enhanced early retirement ("EER") programs in the U.S. and in certain other countries. As of July 31, 2017, the plan is substantially complete, with no further positions being eliminated. The Company recognized $1.4 billion in total aggregate charges in connection with the 2012 Plan, with approximately $1.2 billion related to workforce reductions, including the EER programs, and approximately $0.2 billion related to infrastructure, including data center and real estate consolidation and other items. The severance- and infrastructure-related cash payments associated with the 2012 Plan are expected to be paid out through fiscal 2021.