Severance and Exit Costs

6 Months Ended

Sep. 30, 2013

Restructuring and Related Activities [Abstract]

SEVERANCE AND EXIT COSTS

NOTE C – SEVERANCE AND EXIT COSTS

Fiscal year 2014 re-balancing plan: The fiscal year 2014 re-balancing plan (Fiscal 2014 Plan) was announced in May 2013 and will consist of a termination of more than 1,200 employees and consolidations of several facilities. The reduction in the number of employees is expected to be temporary as the Company intends to hire additional personnel with skills that will enable the Company to better focus its resources on key products and market segments. The total amount incurred for severance and facility exit costs under the Fiscal 2014 Plan for the first six months of fiscal year 2014 was approximately $103 million and $19 million, respectively, and is presented in "Other (gains) expenses, net" in the Company's Condensed Consolidated Statement of Operations. The Company expects total costs of the Fiscal 2014 Plan to be approximately $150 million (including severance costs of approximately $130 million and global facility consolidation costs of approximately $20 million). Actions under the Fiscal 2014 Plan are expected to be substantially completed by the end of fiscal year 2014.

Accrued severance and exit costs and changes in the accruals during the six months ended September 30, 2013 and 2012 were as follows:

(in millions)	Accrued Balance at March 31, 2013		Expense		Change in Estimate			Payments			Accretion and Other			Accrued Balance at September 30, 2013
Severance charges	$	16	$	111	$	(9	)	$	(69	)	$	3		$	52
Facility exit charges	23		19		—			(6		)	(3		)	33
Total accrued liabilities	$	39												$	85

(in millions)	Accrued Balance at March 31, 2012		Expense		Change in Estimate			Payments			Accretion and Other			Accrued Balance at September 30, 2012
Severance charges	$	13	$	—	$	(3	)	$	(7	)	$	—		$	3
Facility exit charges	40		—		—			(5		)	(3		)	32
Total accrued liabilities	$	53												$	35

Balances at September 30, 2013 and 2012 include severance accruals of approximately $7 million and $3 million, respectively, and facility exit accruals of approximately $15 million and $32 million, respectively, for plans and actions prior to fiscal year 2014.

The severance liability is included in “Accrued salaries, wages and commissions” in the Condensed Consolidated Balance Sheets. The facility exit liabilities are included in “Accrued expenses and other current liabilities” and “Other noncurrent liabilities” in the Condensed Consolidated Balance Sheets.

Accretion and other includes accretion of the Company’s lease obligations related to facility exits as well as changes in the assumptions related to future sublease income. These costs are included in “General and administrative” expense in the Condensed Consolidated Statements of Operations.