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5. Restructuring and Other Charges
Fiscal 2015 Plan The Company announced a restructuring action in August 2014 (the “Fiscal 2015 Plan”), in order to realign its
workforce towards key growth areas of its business such as data center, software, security, and cloud. In connection with the
Fiscal 2015 Plan, the Company incurred charges of $489 million during fiscal 2015. The Company estimates that it will recognize
aggregate pretax charges pursuant to the restructuring of approximately $700 million, consisting of severance and other one-time
termination benefits and other associated costs. These charges are primarily cash-based, and the Company expects the Fiscal 2015
Plan to be substantially completed during the first half of fiscal 2016.
Fiscal 2014 Plan and Fiscal 2011 Plans In connection with a restructuring action announced in August 2013 (the “Fiscal 2014
Plan”), the Company incurred cumulative charges of approximately $418 million. The Company completed the Fiscal 2014 Plan
at the end of fiscal 2014.
The Fiscal 2011 Plans consist primarily of the realignment and restructuring of the Company’s business announced in July 2011
and of certain consumer product lines as announced during April 2011. The Company completed the Fiscal 2011 Plans at the end
of fiscal 2013, with a total $105 million of charges having been incurred in fiscal 2013. The Company incurred cumulative
charges of approximately $1.1 billion in connection with these plans.
The following table summarizes the activities related to the restructuring and other charges, as discussed above (in millions):
FISCAL 2014 AND
FISCAL 2011 PLANS FISCAL 2015 PLAN
Employee
Severance Other
Employee
Severance Other Total
Liability as of July 28, 2012 ................... $ 83 $ 27 $ — $ — $ 110
Charges ..................................... 111 (6) — — 105
Cash payments .............................. (173) (11) — — (184)
Non-cash items ............................. — (3) — — (3)
Liability as of July 27, 2013 ................... 21 7 — — 28
Charges ..................................... 366 52 — — 418
Cash payments .............................. (345) (7) — — (352)
Non-cash items ............................. (2) (23) — — (25)
Liability as of July 26, 2014 .................. 40 29 — — 69
Charges .................................... — — 464 20 484
Cash payments ............................. (29) (14) (413) (3) (459)
Non-cash items ............................. — (1) (2) (2) (5)
Liability as of July 25, 2015 .................. $ 11 $ 14 $ 49 $ 15 $ 89
During fiscal 2015, in addition to the above amounts, the Company incurred $5 million of restructuring and other charges within
cost of sales.
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