Severance and Exit Costs

12 Months Ended

Mar. 31, 2015

Restructuring and Related Activities [Abstract]

Note 4 — Severance and Exit Costs

Fiscal Year 2015 Severance Actions: During the fourth quarter of fiscal year 2015, the Company committed to and initiated severance actions (Fiscal 2015 Severance Actions) to further improve efficiencies in its operations and align its business with strategic objectives and cost savings initiatives. These actions comprised the termination of approximately 690 employees and resulted in a charge of approximately $40 million (approximately $16 million is included in “Product development and enhancements,” $10 million is included in “Selling and marketing,” $8 million is included in “Cost of professional services,” $5 million is included in “General and administrative” and $1 million is included in “Costs of licensing and maintenance” in the Company's Consolidated Statements of Operations). The Fiscal 2015 Severance Actions are expected to be substantially completed by the first quarter of fiscal year 2016.

Fiscal Year 2014 Rebalancing Plan: In fiscal year 2014, the Company's Board of Directors approved and committed to a rebalancing plan (Fiscal 2014 Plan) to better align its business priorities. This included the termination of approximately 1,900 employees and global facilities consolidations. Costs associated with the Fiscal 2014 Plan are presented in “Other expenses (gains), net” in the Company’s Consolidated Statements of Operations. The total amount incurred to date for severance and facility exit costs under the Fiscal 2014 Plan is approximately $166 million and $22 million, respectively. The Company expects total costs of the Fiscal 2014 Plan to be approximately $190 million. Severance and facility consolidation actions under the Fiscal 2014 Plan were substantially completed by the end of fiscal year 2014.

Accrued severance and exit costs and changes in the accruals for fiscal years 2015, 2014 and 2013 were as follows:



(in millions)	Accrued Balance at March 31, 2014		Expense		Change in Estimate			Payments			Accretion and Other			Accrued Balance at March 31, 2015
Severance charges	$	55	$	60	$	(7	)	$	(77	)	$	(3	)	$	28
Facility exit charges	29		—		—			(9		)	1			21
Total accrued liabilities	$	84												$	49



(in millions)	Accrued Balance at March 31, 2013		Expense		Change in Estimate			Payments			Accretion and Other			Accrued Balance at March 31, 2014
Severance charges	$	16	$	160	$	(12	)	$	(113	)	$	4		$	55
Facility exit charges	23		22		—			(13		)	(3		)	29
Total accrued liabilities	$	39												$	84



(in millions)	Accrued Balance at March 31, 2012		Expense		Change in Estimate			Payments			Accretion and Other			Accrued Balance at March 31, 2013
Severance charges	$	13	$	18	$	(6	)	$	(9	)	$	—		$	16
Facility exit charges	40		—		—			(13		)	(4		)	23
Total accrued liabilities	$	53												$	39

The balance at March 31, 2015 includes a severance accrual of approximately $5 million for plans and actions prior to the Fiscal 2015 Severance Actions.

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

- 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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