Restructuring

Summary of Restructuring Plans

Restructuring charges of $1.2 billion and $1.0 billion were recorded by the Company during fiscal 2016 and 2015, respectively, based on restructuring activities impacting the Company's employees and infrastructure. Restructuring charges of $1.5 billion were recorded by the Company during fiscal 2014 based on restructuring activities impacting the Company's employees and infrastructure, as well as an allocation of restructuring charges related to former Parent's corporate and shared functional employees and infrastructure of $131 million. Restructuring activities related to the Company's employees and infrastructure (“Direct Restructuring”), summarized by plan, are presented in the table below:



	Fiscal 2015 Plan						Fiscal 2012 Plan						Other Plans
	Employee Severance			Infrastructure and other			Employee Severance and EER			Infrastructure and other			Employee Severance			Infrastructure and other			Total
Liability as of October 31, 2013	$	—		$	—		$	712		$	37		$	9		$	120		$	878
Charges	—			—			1,092			253			—			(5		)	1,340
Cash payments	—			—			(978		)	(198		)	(1		)	(62		)	(1,239		)
Non-cash items	—			—			(89		)	(1		)	—			—			(90		)
Liability as of October 31, 2014	—			—			737			91			8			53			889
Charges	351			1			542			73			(4		)	(9		)	954
Cash payments	—			(1		)	(884		)	(116		)	—			(20		)	(1,021		)
Non-cash items	—			—			(74		)	(3		)	(3		)	—			(80		)
Liability as of October 31, 2015	351			—			321			45			1			24			742
Charges	932			217			88			1			—			(2		)	1,236
Cash payments	(615		)	(132		)	(263		)	(22		)	—			(11		)	(1,043		)
Non-cash items	(39		)	(50		)	(7		)	(1		)	—			(1		)	(98		)
Liability as of October 31, 2016	$	629		$	35		$	139		$	23		$	1		$	10		$	837
Total costs incurred to date as of October 31, 2016	$	1,283		$	218		$	3,980		$	546		$	1,997		$	1,127		$	9,151
Total expected costs to be incurred as of October 31, 2016	$	2,158		$	451		$	3,980		$	546		$	1,997		$	1,127		$	10,259

The current restructuring liability reported in Accrued restructuring in the Consolidated and Combined Financial Statements for fiscal 2016, 2015 and 2014 was $671 million, $628 million and $711 million, respectively. The non-current restructuring liability reported in Other liabilities in the Consolidated and Combined Financial Statements for fiscal 2016, 2015 and 2014 was $166 million, $114 million and $178 million, respectively.

Fiscal 2015 Restructuring Plan

On September 14, 2015, former Parent's Board of Directors approved a restructuring plan (the "2015 Plan") in connection with the Separation, which will be implemented through fiscal 2018. As of October 31, 2016, the Company expects up to approximately 30,000 employees to exit the Company by the end of 2018. The changes to the workforce will vary by country, based on local legal requirements and consultations with employee work councils and other employee representatives, as appropriate. As of October 31, 2016, the Company estimates that it will incur aggregate pre-tax charges of approximately $2.6 billion through fiscal 2018 in connection with the 2015 Plan, of which approximately $2.2 billion relates to workforce reductions and approximately $400 million primarily relates to real estate consolidation.

On May 24, 2016, the Company announced plans for a tax-free spin-off and merger of its Enterprise Services business with Computer Sciences Corporation ("CSC"). The completion of the transaction will result in lower costs being incurred by the Company in connection with the 2015 Plan, the extent of which will depend on a number of factors including the exact closing date.

Fiscal 2012 Restructuring Plan

On May 23, 2012, former Parent adopted a multi-year restructuring plan (the "2012 Plan") designed to simplify business processes, accelerate innovation and deliver better results for customers, employees and stockholders. As of October 31, 2015, the Company had eliminated 42,100 positions in connection with the 2012 Plan, with a portion of those employees exiting the Company as part of voluntary enhanced early retirement ("EER") programs in the U.S. and in certain other countries. As of October 31, 2016, the plan is substantially complete, with no further positions being eliminated. During fiscal 2016, the Company recorded severance charges of $88 million and infrastructure charges of $1 million, respectively, as a result of a change in the estimate of expected cash payouts. The Company recognized $4.5 billion in total aggregate charges in connection with the 2012 Plan, with approximately $4.0 billion related to workforce reductions, including the EER programs, and $546 million related to infrastructure, including data center and real estate consolidation and other items. The severance- and infrastructure-related cash payments associated with the 2012 Plan are expected to be paid out through fiscal 2021.

Other Plans

As of October 31, 2016, restructuring plans initiated by former Parent in fiscal 2008 and 2010 are substantially complete. Severance- and infrastructure-related cash payments associated with these plans are expected to be paid out through fiscal 2019.