Seagate 2015 Annual Report Download - page 86
Download and view the complete annual report
Please find page 86 of the 2015 Seagate annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.TableofContents
SEAGATETECHNOLOGYPLC
NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS—(Continued)
approximately$15millionrelatedtotheFebruary2016Plan,comprisedprimarilyofemployeeterminationcosts.
September2015Plan—OnSeptember4,2015,theCompanycommittedtoarestructuringplan(the"September2015Plan")intendedtorealignitscost
structurewiththecurrentmacroeconomicbusinessenvironment.TheSeptember2015Planincludedreducingworldwideheadcountbyapproximately
1,000employees.TheSeptember2015PlanwaslargelycompletedbythefiscalquarterendedJanuary1,2016.Duringfiscalyear2016,theCompanyrecorded
totalrestructuringchargesofapproximately$65millionrelatedtotheSeptember2015Plan,comprisedofapproximately$57millionforemployeetermination
costsand$8millionfacilityexitcosts,respectively.TheCompanymadecashpaymentsof$59million,comprisedprimarilyofemployeeterminationcostsrelated
totheSeptember2015Plan.
Fiscal2015Plan—Duringfiscalyear2015,theCompanyrecordedemployeeterminationcostsof$25millionandmadecashpaymentsof$16million
associatedwithareductionintheworkforce.The2015Planwaslargelycompletedbyfiscalyear2015.TheCompanydidnotrecordanymaterialrestructuring
chargesrelatedtothe2015Planduringfiscalyear2016.
OtherRestructuringandExitCosts—Duringfiscalyear2016,theCompanyrecordedrestructuringchargesofapproximately$26million,comprisedof
approximately$12millionforemployeeterminationcostsand$14millionfacilityexitcosts.TheCompanymadecashpaymentsof$33million,comprisedof
approximately$19millionforemployeeterminationcostsand$14millionfacilityexitcostsrelatedtootherrestructuringplans.
ThefollowingtablesummarizestheCompany'srestructuringactivitiesunderalloftheCompany'sactiverestructuringplansforfiscalyears2016,2015and
2014:
Oftheaccruedrestructuringbalanceof$63millionatJuly1,2016,$61millionisincludedinAccruedexpensesand$2millionisincludedinOthernon-
currentliabilitiesintheCompany'sConsolidatedBalanceSheet.Oftheaccruedrestructuringbalanceofapproximately$19millionatJuly3,2015,$15millionis
includedinAccruedexpensesand$4millionisincludedinOthernon-currentliabilitiesintheCompany'sConsolidatedBalanceSheet.
83
(Dollarsinmillions)
Post-
Employment
Benefits
Operating
Leases
Other
Exit
Costs Total
AllRestructuringActivities
AccrualbalancesatJune28,2013 $ 2 $ 15 $ — $ 17
Restructuringcharges 18 3 2 23
Cashpayments (20) (5) (2) (27)
Adjustments 2 (1) — 1
AccrualbalancesatJune27,2014 2 12 — 14
Restructuringcharges 23 3 4 30
Cashpayments (17) (6) (4) (27)
Adjustments 3 (1) — 2
AccrualbalancesatJuly3,2015 11 8 — 19
Restructuringcharges 151 14 10 175
Cashpayments (113) (8) (10) (131)
Adjustments 1 (1) — —
AccrualbalancesatJuly1,2016 $ 50 $ 13 $ — $ 63