Symantec 2016 Annual Report Download - page 161

Transition and other related costs primarily consist of consulting charges associated with the implementation of
new enterprise resource planning systems. Restructuring, separation, and transition costs are managed at the
corporate level and are not allocated to our reportable segments. See Note 8 for information regarding the
reconciliation of total segment operating income to total consolidated operating income.
Fiscal 2014 Plan
We initiated a restructuring plan in the fourth quarter of fiscal 2013 to reduce management and redundant
personnel resulting in headcount reductions across the Company. As of April 1, 2016, the related costs for
severance and benefits are substantially complete; however, we expect to incur immaterial adjustments to
existing reserves in subsequent periods.
Fiscal 2015 Plan
In fiscal 2015, we announced plans to separate our security and information management businesses. In
order to separate the businesses, we put a restructuring plan in place to properly align personnel, and have
therefore incurred associated severance and facilities costs. We also incurred separation costs in the form of
advisory, consulting and disentanglement expenses. These actions were substantially completed in the fourth
quarter of fiscal 2016 with the sale of Veritas on January 29, 2016. However, we expect to incur immaterial
adjustments to existing reserves in subsequent periods. See Note 3 for more information on the sale of Veritas.
As of April 1, 2016, liabilities for excess facility obligations at several locations around the world are expected to
be paid throughout the respective lease terms, the longest of which extends through fiscal 2022.
Restructuring, separation, and transition summary
We incurred $78 million in continuing operations transition and other related costs during fiscal 2016. In
addition, the following table summarizes changes to our restructuring and separation liabilities, which remain
with the Company in continuing operations and are included in accounts payable, other current liabilities, and
other long-term obligations in our Consolidated Balance Sheets. A portion of the following restructuring and
separation costs is included in income from discontinued operations, net of income taxes.
April 3, 2015
Costs, Net of
Adjustments Cash Payments April 1, 2016
Cumulative
Incurred to Date
(Dollars in millions)
Fiscal 2014 Plan total $ 4 $ - $ (4) $ - $ 238
Fiscal 2015 Plan
Severance costs 59 34 (88) 5 136
Separation costs 17 214 (215) 16 295
Other exit and disposal costs 6 18 (16) 8 25
Fiscal 2015 Plan total 82 266 (319) 29 $ 456
Restructuring and separation plans
total $ 86 266 $ (323) $ 29
Note 7. Commitments and Contingencies
Lease commitments
We lease certain of our facilities, equipment, and co-locations under operating leases that expire at various
dates through fiscal 2026. We currently sublease some space under various operating leases that will expire on
various dates through fiscal 2023. Some of our leases contain renewal options, escalation clauses, rent
concessions, and leasehold improvement incentives. Rent expense under operating leases was $103 million, $113
million, and $106 million for fiscal 2016, 2015, and 2014, respectively.
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