Restructuring Costs

3 Months Ended

Jun. 28, 2013

The Company recorded $7 million and $27 million of restructuring costs for the quarters ended June 28, 2013 and June 29, 2012, respectively. The costs recorded during the quarter ended June 28, 2013 were in connection with actions under the Fiscal 2013 plan, and the costs recorded during the quarter ended June 29, 2012 were in connection with actions under the Fiscal 2012 plan, as described below.

Fiscal 2013 Plan

In September 2012, the Company initiated restructuring actions (the Fiscal 2013 Plan) across its business segments. The objectives of the Fiscal 2013 Plan are to (i) further increase the use of lower cost off-shore resources, and (ii) reduce headcount in order to align resources to support business needs, including the assessment of management span of control and layers.

Actions under the Fiscal 2013 Plan commenced in September 2012 and management expects that further actions will be taken during fiscal 2014, which could result in additional charges.

The composition of the restructuring liability for the Fiscal 2013 Plan as of June 28, 2013 is as follows:



(Amounts in millions)	Restructuring liability as of March 29, 2013		Costs expensed in fiscal 2014		Less: costs not affecting restructuring liability ⁽¹⁾			Cash paid			Other⁽³⁾			Restructuring liability as of June 28, 2013
Workforce reductions	$	155	$	7	$	(1	)	$	(37	)	$	(1	)	$	123
Facilities costs	10		—		—			—			—			$	10
Other⁽²⁾	11		—		—			(10		)	—			1
	$	176	$	7	$	(1	)	$	(47	)	$	(1	)	$	134


⁽¹⁾	Charges primarily consist of pension benefit augmentations and are recorded as a pension liability.


⁽²⁾	Other direct costs associated with the restructuring program.


⁽³⁾	Foreign currency translation adjustments.

Fiscal 2012 Plan

In March 2012, the Company initiated restructuring actions (the Fiscal 2012 Plan) primarily impacting its GIS segment. The objectives of the Fiscal 2012 Plan were to (i) align the Company's workforce across various geographies with business needs, (ii) increase use of lower cost off-shore resources, and (iii) optimize utilization of facilities. Actions under the Fiscal 2012 Plan commenced in March 2012 were carried out through the third quarter of fiscal 2013, with only the payments against the liability continuing into fiscal 2014. There were no restructuring costs for the Fiscal 2012 Plan accrued during the first quarter of fiscal 2014.

The composition of the restructuring liability for the Fiscal 2012 Plan as of June 28, 2013 is as follows:



(Amounts in millions)	Restructuring liability as of March 29, 2013		Cash paid			Other⁽¹⁾			Restructuring liability as of June 28, 2013
Workforce reductions	$	9	$	(6	)	$	—		$	3
Facilities costs	5		—			(1		)	4
Total	$	14	$	(6	)	$	(1	)	$	7


⁽¹⁾	Foreign currency translation adjustments.

Of the total $141 million restructuring liability as of June 28, 2013, $137 million is a short-term liability and is included in accrued expenses and other current liabilities, and $4 million is included in other long-term liabilities.

The composition of restructuring expenses for the first quarter of fiscal 2014 and fiscal 2013 by segment is as follows:



	Quarter Ended
(Amounts in millions)	June 28, 2013			June 29, 2012
GBS	$	9		$	14
GIS	—			13
NPS	—			—
Corporate	(2		)	—
Total	$	7		$	27

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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