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(6) RESTRUCTURING CHARGES
Restructuring information as of March 31, 2007 was as follows (in millions):
Workforce
Facilities-
related Other Workforce Workforce
Facilities-
related Total
Fiscal 2006 International
Publishing Reorganization
Fiscal 2006
Restructuring
Fiscal 2004, 2003 and
2002 Restructurings
Balances as of March 31, 2004 . . $ — $ — $ — $ — $ 2 $ 12 $ 14
Charges utilized in cash. . .... — — — — (2) (4) (6)
Adjustments to operations .... — — — — — 2 2
Balances as of March 31, 2005 . . — — — — — 10 10
Charges to operations . . . .... 3 8 3 10 — — 24
Charges utilized in cash. . .... (2) — (1) (7) — (5) (15)
Adjustments to operations .... — — — — — 2 2
Balances as of March 31, 2006 . . 1 8 2 3 — 7 21
Charges to operations . . . .... 10 1 4 — — — 15
Charges utilized in cash. . .... (11) — (5) (3) — (7) (26)
Balances as of March 31, 2007 . . $ — $ 9 $ 1 $ — $ — $ — $ 10
Fiscal 2006 International Publishing Reorganization
In November 2005, we announced plans to establish an international publishing headquarters in Geneva,
Switzerland. Through the quarter ended September 30, 2006, we relocated certain employees to our new
facility in Geneva, closed certain facilities in the United Kingdom, and made other related changes in our
international publishing business.
Since the inception of the restructuring plan, through March 31, 2007, we have incurred restructuring charges
of approximately $29 million, of which $13 million was for employee-related expenses, $9 million for the
closure of certain United Kingdom facilities, and $7 million in other costs in connection with our international
publishing reorganization. The restructuring accrual of $10 million as of March 31, 2007 is expected to be
utilized by March 2017. This accrual is included in other accrued expenses presented in Note 8 of the Notes
to Consolidated Financial Statements.
In connection with our fiscal 2006 international publishing reorganization, in fiscal 2008, we expect to incur
between $5 million and $10 million of restructuring costs. Overall, including charges incurred through
March 31, 2007, we expect to incur between $50 million and $55 million of restructuring costs in connection
with our fiscal 2006 international publishing reorganization, substantially all of which will result in cash
expenditures by 2017. These restructuring costs will consist primarily of employee-related relocation assistance
(approximately $30 million), facility exit costs (approximately $15 million), as well as other reorganization
costs (approximately $7 million).
Fiscal 2006 Restructuring
During the fourth quarter of fiscal 2006, we recorded a total pre-tax restructuring charge of $10 million
consisting entirely of one-time costs related to headcount reductions which are included in restructuring
charges in our Consolidated Statements of Operations. These headcount reductions related to our decision in
the fourth quarter of fiscal 2006 to realign our resources with our product plan for fiscal 2007 and strategic
opportunities with next-generation consoles, online and mobile platforms. As of March 31, 2006, this accrual
was included in other accrued expenses presented in Note 8 of the Notes to Consolidated Financial Statements.
As of March 31, 2007, all $10 million had been paid out in cash under the restructuring plan.
Annual Report
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