Restructuring Costs

The Company recorded restructuring costs, net of reversals, of $23 million, $256 million, and $74 million for fiscal years 2016, 2015, and 2014, respectively.

Fiscal 2016 Plan

In September 2015, the Company initiated restructuring actions (the Fiscal 2016 Plan) across its business segments. The objectives of the Fiscal 2016 Plan are to optimize utilization of facilities and rightsize overhead organizations as a result of the Separation of CSRA. Total restructuring costs for the Fiscal 2016 Plan recognized during fiscal 2016 were $66 million, and consisted mainly of facilities restructuring and termination benefits associated with workforce reductions.

The composition of the restructuring liability for the Fiscal 2016 Plan as of April 1, 2016 was as follows:



(Amounts in millions)	Restructuring liability as of April 3, 2015		Costs expensed in fiscal 2016		Cash Paid			Other⁽¹⁾		Restructuring liability as of April 1, 2016
Workforce reductions	$	—	$	29	$	(6	)	$	6	$	29
Facilities costs	—		37		(9		)	2		$	30
Total	$	—	$	66	$	(15	)	$	8	$	59

⁽¹⁾Foreign currency translation adjustments and pension benefit augmentations recorded as pension liability.

Fiscal 2015 Plan

In June 2014, the Company initiated restructuring actions (the Fiscal 2015 Plan) across its business segments. The objectives of the Fiscal 2015 Plan were to further reduce headcount in order to align resources to support business needs. Total restructuring costs for the Fiscal 2015 Plan recorded during fiscal 2016 and 2015 were $(42) million and $269 million, and consisted of termination benefits associated with the workforce reductions, including pension benefit augmentations of $7 million and $10 million respectively, that are owed to certain employees in accordance with legal or contractual obligations, and which will be paid out over several years as part of normal pension distributions. As part of this plan, the Company took a restructuring charge of $241 million in the fourth quarter of fiscal 2015 to accelerate the efforts to optimize the workforce in high cost markets, particularly in Europe, address its labor pyramid and right-shore its labor mix.

The composition of the restructuring liability for the Fiscal 2015 Plan as of April 1, 2016 was as follows:



(Amounts in millions)	Restructuring liability as of April 3, 2015		Costs reversed in fiscal 2016			Cash Paid⁽¹⁾			Other⁽²⁾			Restructuring liability as of April 1, 2016
Workforce reductions	$	230	$	(42	)	$	(152	)	$	(7	)	$	29
Facilities costs	1		—			—			(1		)	—
Total	$	231	$	(42	)	$	(152	)	$	(8	)	$	29


⁽¹⁾	Includes $145 million related to fourth quarter fiscal 2015 special restructuring.

⁽²⁾ Foreign currency translation adjustments and pension benefit augmentations recorded as a pension liability.

The composition of the restructuring liability for the Fiscal 2015 Plan as of April 3, 2015 was as follows:



(Amounts in millions)	Restructuring liability as of March 28, 2014		Costs expensed in fiscal 2015		Less: costs not affecting restructuring liability⁽¹⁾			Cash Paid			Other ⁽²⁾			Restructuring liability as of April 3, 2015
Workforce reductions	$	—	$	265	$	(10	)	$	(21	)	$	(4	)	$	230
Facilities costs	—		4		(3		)	—			—			1
Total	$	—	$	269	$	(13	)	$	(21	)	$	(4	)	$	231


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


⁽²⁾	Foreign currency translation adjustments.

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 were to (i) further increase the use of lower cost off-shore resources, (ii) reduce headcount in order to align resources to support business needs, including the assessment of management span of control and layers and (iii) optimize utilization of facilities. Actions under the Fiscal 2013 Plan commenced in September 2012 and continued through fiscal 2014. The expense reduction in fiscal 2015 was due to cancellation of a portion of a restructuring plan in a region, as well as revisions on plans that were executed at lower than expected costs.

Total restructuring costs for the Fiscal 2013 Plan recorded during fiscal 2016, 2015, and 2014 were $(1) million, $(13) million, and $72 million, respectively, including pension benefit augmentations of $0 million, $(7) million, and $22 million, respectively, that are owed to certain employees in accordance with legal or contractual obligations, and which will be paid out over several years as part of normal pension distributions.

The composition of the restructuring liability for the Fiscal 2013 Plan as of April 1, 2016 was as follows:



(Amounts in millions)	Restructuring liability as of April 3, 2015		Costs expensed in fiscal 2016			Cash paid			Other⁽²⁾			Restructuring liability as of April 1, 2016
Workforce reductions	$	3	$	(1	)	$	(3	)	$	2		$	1
Facilities costs	5		—			(2		)	(3		)	—
Total	$	8	$	(1	)	$	(5	)	$	(1	)	$	1

The composition of the restructuring liability for the Fiscal 2013 Plan as of April 3, 2015 was as follows:



(Amounts in millions)	Restructuring liability as of March 28, 2014		Costs expensed in fiscal 2015			Less: costs not affecting restructuring liability⁽¹⁾		Cash paid			Other⁽²⁾			Restructuring liability as of April 3, 2015
Workforce reductions	$	70	$	(13	)	$	7	$	(57	)	$	(4	)	$	3
Facilities costs	13		—			—		(8		)	—			5
Total	$	83	$	(13	)	$	7	$	(65	)	$	(4	)	$	8


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


⁽²⁾	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 and were carried out in fiscal 2013 and fiscal 2014. There were no restructuring costs for the Fiscal 2012 Plan accrued in fiscal 2015 or fiscal 2016. The restructuring costs for the Fiscal 2012 plan recorded during fiscal 2014 was $2 million, and was associated primarily with employee terminations.

The composition of restructuring costs by segment for fiscal years 2016, 2015, and 2014 was as follows:



	Twelve Months Ended
(Amounts in millions)	April 1, 2016		April 3, 2015		March 28, 2014
GBS	$	20	$	137	$	46
GIS	3		114		28
Corporate	—		5		—
Total	$	23	$	256	$	74

Of the total $89 million restructuring liability as of April 1, 2016, $84 million is included in accrued expenses and other current liabilities and $5 million is included in other long-term liabilities. Of the total $240 million restructuring liability as of April 3, 2015, $240 million was included in accrued expenses and other current liabilities and $0 million was included in other long-term liabilities.

The composition of restructuring costs for fiscal years 2016, 2015, and 2014 by financial statement line item is as follows:



	Twelve Months Ended
(Amounts in millions)	April 1, 2016		April 3, 2015		March 28, 2014
Costs of services	$	7	$	248	$	68
Selling, general and administrative	16		8		6
Total	$	23	$	256	$	74