Restructuring, Separation, Transition, and Other Costs

Our restructuring, separation, transition, and other costs and liabilities consist primarily of severance, facilities, separation, transition, and other related costs. Severance costs generally include severance payments, outplacement services, health insurance coverage, and legal costs. Facilities costs generally include rent expense and lease termination costs, less estimated sublease income. Separation and related costs include advisory, consulting, and other costs incurred in connection with the separation of Veritas. Transition costs primarily consist of consulting charges associated with the implementation of new enterprise resource planning systems and costs to automate business processes. Other costs primarily consist of asset write-offs and advisory fees incurred in connection with restructuring events. Restructuring, separation, transition, and other costs are managed at the corporate level and are not allocated to our reportable segments. See Note 2 for information regarding the reconciliation of total segment operating income to total consolidated operating income (loss).

Fiscal 2017 Plan

We initiated a restructuring plan in the first quarter of fiscal 2017 to reduce complexity by means of long-term structural improvements (the “Fiscal 2017 Plan”). We expect to reduce headcount and close certain facilities in connection with the restructuring plan. We expect total costs incurred in connection with the Fiscal 2017 Plan to range between $415 million and $465 million, of which approximately $185 million to $195 million is expected to be for severance and termination benefits and $190 million to $215 million is expected to be for other exit and disposal costs primarily consisting of contract termination, relocation costs, and advisory fees. The remainder is expected to be in the form of asset write-offs. These actions are expected to be completed in fiscal 2018. Additionally, we expect continuing significant transition costs associated with the implementation of a new enterprise resource planning system and costs to automate business processes. As of March 31, 2017, liabilities for excess facility obligations at several U.S. and international locations are expected to be paid throughout the respective lease terms, the longest of which extends through fiscal 2022.

Restructuring, separation, transition, and other costs summary

We incurred $94 million in continuing operations transition expense during fiscal 2017. As of March 31, 2017 and April 1, 2016, restructuring and separation liabilities were included in accounts payable, other current liabilities and other long-term obligations in our Consolidated Balance Sheets. Additionally, $10 million of the following restructuring and separation costs is included in income from discontinued operations, net of income taxes.



(In millions)	Balance as of April 1, 2016		Costs, Net of Adjustments		Cash Payments			Non-Cash Charges			Balance as of March 31, 2017		Fiscal 2017 Plan Cumulative Incurred to Date
Fiscal 2017 Plan:
Severance and termination costs	$	—	$	76	$	(56	)	$	—		$	20	$	76
Other exit and disposal costs	4		75		(50		)	(7		)	22		79
Asset write-offs	—		23		—			(23		)	—		23
Fiscal 2017 Plan total	4		174		(106		)	(30		)	42		$	178
Prior year plans	$	29	$	15	$	(35	)	$	(5	)	$	4
Restructuring and separation plans total	$	33	$	189	$	(141	)	$	(35	)	$	46