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.

Page out of 155

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155

TableofContents
SEAGATETECHNOLOGYPLC
NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS—(Continued)
approximately$15millionrelatedtotheFebruary2016Plan,comprisedprimarilyofemployeeterminationcosts.
September2015Plan—OnSeptember4,2015,theCompanycommittedtoarestructuringplan(the"September2015Plan")intendedtorealignitscost
structurewiththecurrentmacroeconomicbusinessenvironment.TheSeptember2015Planincludedreducingworldwideheadcountbyapproximately
1,000employees.TheSeptember2015PlanwaslargelycompletedbythefiscalquarterendedJanuary1,2016.Duringfiscalyear2016,theCompanyrecorded
totalrestructuringchargesofapproximately$65millionrelatedtotheSeptember2015Plan,comprisedofapproximately$57millionforemployeetermination
costsand$8millionfacilityexitcosts,respectively.TheCompanymadecashpaymentsof$59million,comprisedprimarilyofemployeeterminationcostsrelated
totheSeptember2015Plan.
Fiscal2015Plan—Duringfiscalyear2015,theCompanyrecordedemployeeterminationcostsof$25millionandmadecashpaymentsof$16million
associatedwithareductionintheworkforce.The2015Planwaslargelycompletedbyfiscalyear2015.TheCompanydidnotrecordanymaterialrestructuring
chargesrelatedtothe2015Planduringfiscalyear2016.
OtherRestructuringandExitCosts—Duringfiscalyear2016,theCompanyrecordedrestructuringchargesofapproximately$26million,comprisedof
approximately$12millionforemployeeterminationcostsand$14millionfacilityexitcosts.TheCompanymadecashpaymentsof$33million,comprisedof
approximately$19millionforemployeeterminationcostsand$14millionfacilityexitcostsrelatedtootherrestructuringplans.
ThefollowingtablesummarizestheCompany'srestructuringactivitiesunderalloftheCompany'sactiverestructuringplansforfiscalyears2016,2015and
2014:
Oftheaccruedrestructuringbalanceof$63millionatJuly1,2016,$61millionisincludedinAccruedexpensesand$2millionisincludedinOthernon-
currentliabilitiesintheCompany'sConsolidatedBalanceSheet.Oftheaccruedrestructuringbalanceofapproximately$19millionatJuly3,2015,$15millionis
includedinAccruedexpensesand$4millionisincludedinOthernon-currentliabilitiesintheCompany'sConsolidatedBalanceSheet.
83
(Dollarsinmillions) 
Post-
Employment
Benefits
Operating
Leases
Other
Exit
Costs Total
AllRestructuringActivities         
AccrualbalancesatJune28,2013  $ 2 $ 15 $ — $ 17
Restructuringcharges   18  3  2  23
Cashpayments (20)  (5)  (2)  (27)
Adjustments   2  (1)  — 1
AccrualbalancesatJune27,2014   2  12  —  14
Restructuringcharges   23  3  4  30
Cashpayments (17)  (6)  (4)  (27)
Adjustments   3  (1)  — 2
AccrualbalancesatJuly3,2015   11  8  —  19
Restructuringcharges   151  14  10  175
Cashpayments (113)  (8)  (10)  (131)
Adjustments   1  (1)  — —
AccrualbalancesatJuly1,2016  $ 50 $ 13 $ — $ 63