17. Subsequent Events

SolidFire Acquisition

On February 2, 2016, we acquired all of the outstanding shares of privately-held SolidFire, Inc. (SolidFire), a maker of all-flash storage systems based in Colorado, for $855 million in cash. This acquisition extends our position in the all-flash array market by adding new flash offerings that will enhance our ability to deliver customers all-flash storage with a webscale architecture that simplifies data center operations and enables rapid deployments of new applications.

We are still in the process of evaluating the business combination accounting considerations, including the consideration transferred and the initial purchase price allocation for this acquisition. We currently expect between $100 million and $200 million of the purchase price to be allocated to identifiable intangible assets other than goodwill. A preliminary purchase price allocation will be included in our consolidated financial statements for the year ending April 29, 2016.

The following unaudited pro forma condensed combined financial information gives effect to the acquisition of SolidFire as if it were consummated on April 26, 2014. The unaudited pro forma condensed combined financial information is presented for informational purposes only, and is not intended to represent or be indicative of the results of operations of the Company that would have been reported had the acquisition occurred on April 26, 2014 and should not be taken as representative of future consolidated results of operations of the combined company (in millions).

	Three Months Ended				Nine Months Ended
	January 29, 2016		January 23, 2015		January 29, 2016		January 23, 2015
Net income	$	128	$	153	$	159	$	341

Adjustments have been reflected in the unaudited pro forma condensed combined information to include the amortization of identifiable intangible assets, purchase accounting adjustments to deferred revenue, interest expense related to the associated financing arrangement and costs directly attributable to the acquisition. Pro forma net revenues were not materially different than those presented in the condensed consolidated statements of operations.

Short-Term Loan

In connection with the acquisition, on February 2, 2016, we entered into a short-term loan of $870 million that matures on November 2, 2016. We may repay the loan before its maturity without penalty; however, we may not reborrow any borrowings that were repaid under the term loan agreement. As specified in the term loan agreement, interest on the outstanding borrowings accrues at an adjusted LIBOR plus a spread (based on our public debt ratings) or, at our option, a base rate. We may, from time to time, elect to convert the outstanding loan from one rate to another. We expect to repay the loan on or before the maturity date using funds generated from our global operations. The loan is subject to the same covenants as our credit facility.

Credit Facility Amendment

On February 2, 2016, we amended our existing credit facility to increase the unsecured revolving credit facility to $300 million.

Restructuring Event

On February 17, 2016, we committed to a restructuring and reduction in workforce to streamline our business and reduce operating expenses. In connection with these actions, we expect to reduce our worldwide headcount by approximately 12%. The reduction in workforce will be implemented through the end of the first quarter of fiscal 2017. We expect to incur aggregate charges of approximately $60 million to $70 million for employee terminations and other costs associated with the restructuring, consisting primarily of cash expenditures. The majority of these charges will be recognized in the fourth quarter of fiscal 2016.