Severance and Exit Costs

12 Months Ended

Mar. 31, 2012

Severance and Exit Costs [Abstract]

Severance and Exit Costs

Note 4 — Severance and Exit Costs

Fiscal Year 2012 Workforce Reduction: The fiscal year 2012 workforce reduction plan (Fiscal 2012 Plan) was announced in July 2011 and consisted of a workforce reduction of approximately 400 positions.

This action is part of the Company’s efforts to reallocate resources and divest non-strategic parts of the business. The total amounts incurred with respect to severance under the Fiscal 2012 Plan were $42 million, of which approximately $22 million is included in “Selling and marketing,” $9 million is included in “General and administrative,” $8 million is included in “Product development and enhancements,” $2 million is included in “Costs of licensing and maintenance” and $1 million is included in “Cost of professional services” in the Consolidated Statements of Operations. Actions under the Fiscal 2012 Plan were substantially completed by the end of fiscal year 2012.

Fiscal Year 2010 Restructuring Plan: The fiscal year 2010 restructuring plan (Fiscal 2010 Plan) was announced in March 2010 and consisted of a workforce reduction of approximately 1,000 positions and global facilities consolidations. These actions were intended to better align the Company’s cost structure with the skills and resources required to more effectively pursue opportunities in the marketplace and execute the Company’s long-term growth strategy. The total amounts incurred with respect to severance and facilities abandonment under the Fiscal 2010 Plan were $43 million and $2 million, respectively. Actions under the Fiscal 2010 Plan were substantially completed by the end of fiscal year 2011.

Fiscal Year 2007 Restructuring Plan: In August 2006, the Company announced the fiscal year 2007 restructuring plan (Fiscal 2007 Plan) to significantly improve the Company’s expense structure and increase its competitiveness. The Fiscal 2007 Plan consisted of a workforce reduction of approximately 3,100 employees, global facilities consolidations and other cost reductions. The total amounts incurred with respect to severance and facilities abandonment under the Fiscal 2007 Plan were $220 million and $122 million, respectively. Actions under the Fiscal 2007 Plan were substantially completed by the end of fiscal year 2010.

Accrued severance and exit costs and changes in the accruals for fiscal years 2012, 2011 and 2010 associated with the Fiscal 2012, Fiscal 2010 and Fiscal 2007 Plans were as follows:

(in millions)	ACCRUED BALANCE AT MARCH 31, 2011		EXPENSE		CHANGE IN ESTIMATE			PAYMENTS			ACCRETION AND OTHER		ACCRUED BALANCE AT MARCH 31, 2012
Severance:
Fiscal 2012 Plan	$	—	$	49	$	(7	)	$	(31	)	$	—	$	11
Fiscal 2010 Plan		4		—		(1	)		(3	)		—		—
Fiscal 2007 Plan		4		—		—			(2	)		—		2
Total Severance	$	8	$	49	$	(8	)	$	(36	)	$	—	$	13
Facilities Abandonment:
Fiscal 2010 Plan	$	1	$	—	$	—		$	—		$	—	$	1
Fiscal 2007 Plan		46		—		—			(11	)		4		39
Total Facilities Abandonment	$	47	$	—	$	—		$	(11	)	$	4	$	40
Total Accrued Liabilities	$	55											$	53

(in millions)	ACCRUED BALANCE AT MARCH 31, 2010		EXPENSE		CHANGE IN ESTIMATE			PAYMENTS			ACCRETION AND OTHER			ACCRUED BALANCE AT MARCH 31, 2011
Severance:
Fiscal 2010 Plan	$	46	$	—	$	(4	)	$	(37	)	$	(1	)	$	4
Fiscal 2007 Plan		8		—		1			(5	)		—			4
Total Severance	$	54	$	—	$	(3	)	$	(42	)	$	(1	)	$	8
Facilities Abandonment:
Fiscal 2010 Plan	$	2	$	—	$	—		$	(1	)	$	—		$	1
Fiscal 2007 Plan		60		—		1			(18	)		3			46
Total Facilities Abandonment	$	62	$	—	$	1		$	(19	)	$	3		$	47
Total Liabilities	$	116												$	55

(in millions)	ACCRUED BALANCE AT MARCH 31, 2009		EXPENSE		CHANGE IN ESTIMATE			PAYMENTS			ACCRETION AND OTHER		ACCRUED BALANCE AT MARCH 31, 2010
Severance:
Fiscal 2010 Plan	$	—	$	48	$	—		$	(2	)	$	—	$	46
Fiscal 2007 Plan		45		—		(4	)		(33	)		—		8
Total Severance	$	45	$	48	$	(4	)	$	(35	)	$	—	$	54
Facilities Abandonment:
Fiscal 2010 Plan	$	—	$	2	$	—		$	—		$	—	$	2
Fiscal 2007 Plan		71		—		—			(19	)		8		60
Total Facilities Abandonment	$	71	$	2	$	—		$	(19	)	$	8	$	62
Total Liabilities	$	116											$	116

The severance liability is included in “Accrued salaries, wages and commissions” in the Consolidated Balance Sheets. The facilities abandonment liability is included in “Accrued expenses and other current liabilities” and “Other noncurrent liabilities” in the Consolidated Balance Sheets. Changes in estimates relating to the Fiscal 2010 Plan and Fiscal 2007 Plan are included in “Other expenses, net” in the Consolidated Statements of Operations.

Accretion and other includes accretion of the Company’s lease obligations related to facilities abandonment 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.