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NOTE 17: Restructuring and Other Special Charges, Net
2015 Restructuring Plan
In the third quarter of 2015, the Company implemented a restructuring plan (2015 Restructuring Plan)
focused on its ongoing efforts to simplify its business and better align resources around its priorities and business
outlook. The 2015 Restructuring Plan involves a reduction of global headcount by approximately 5% and
includes organizational actions such as outsourcing certain IT services and application development. During
2015, the Company recorded a $37 million restructuring charge, which consisted of approximately $27 million of
severance and benefit costs, approximately $1 million of facilities related consolidation charges and
approximately $9 million of intangible asset related charges associated with the impairment of certain software
licenses that have ongoing payment obligations. The 2015 Restructuring Plan resulted in total cash payments of
$14 million in 2015. The Company expects the 2015 Restructuring Plan will likely result in total cash payments
of approximately $14 million in 2016. The Company expects actions associated with the 2015 Restructuring Plan
to be substantially completed by the end the third quarter of 2016.
The following table provides a summary of the restructuring activities during 2015 and the related liabilities
recorded in Other current liabilities and Other long-term liabilities on the Company’s consolidated balance sheets
as of December 26, 2015:
Severance
and related
benefits
Other exit
related
costs Total
(In millions)
Balance as of June 27, 2015 ........................ $— $— $—
Charges (reversals), net ........................ 27 10 37
Cash payments .............................. (13) (1) (14)
Non-cash charges ............................ — (9) (9)
Balance as of December 26, 2015 .................... $ 14 $— $ 14
2014 Restructuring Plan
In the fourth quarter of 2014, the Company implemented a restructuring plan (2014 Restructuring Plan) designed
to improve operating efficiencies. The 2014 Restructuring Plan involved a reduction of global headcount by
approximately 6% and an alignment of its real estate footprint with its reduced headcount. The Company recorded a
$57 million restructuring charge in the fourth quarter of 2014, which consisted of $44 million for severance and costs
related to the continuation of certain employee benefits, $6 million for contract or program termination costs, $1
million for facilities related costs and $6 million for asset impairments, a non-cash charge. During 2015, the Company
recorded a $16 million restructuring charge, which consisted of $5 million non-cash charge related to asset
impairments, $2 million for severance and related benefits and $9 million for facilities related costs. The 2014
Restructuring Plan was substantially completed by the end of the third quarter of 2015.
The following table provides a summary of the restructuring activities during 2015 and the related liabilities
recorded in Other current liabilities and Other long-term liabilities on the Company’s consolidated balance sheets
as of December 26, 2015:
Severance
and related
benefits
Other exit
related
costs Total
(In millions)
Balance as of December 27, 2014 .................... $ 26 $13 $39
Charges (reversals), net ........................ 2 14 16
Cash payments ............................... (23) (7) (30)
Non-cash charges ............................. — (5) (5)
Balance as of December 26, 2015 .................... $ 5 $15 $20
106