Our restructuring and other costs consist primarily of severance and termination benefits, contract cancellation charges, asset write-offs and impairments and other exit and disposal costs. Severance costs generally include severance payments, outplacement services, health insurance coverage and legal costs. Contract cancellation charges primarily include penalties for early termination of contracts and write-offs of related prepaid assets. Other exit and disposal costs include costs to exit and consolidate facilities in connection with restructuring events.

During the first quarter of fiscal 2027, our Board of Directors approved a restructuring plan (the Fiscal 2027 Plan) to improve efficiency and align the operations with our strategic priorities. Actions under this plan include the reduction of our workforce, contract terminations, facilities consolidation, and other restructuring costs. Implementation is expected to be completed toward

the end of fiscal 2027. The total estimated cost of the plan is approximately $50 million, of which $32 million has been incurred to date under the Fiscal 2027 Plan. As of July 3, 2026, we had a restructuring liability of $15 million related to the Fiscal 2027 Plan.

Roll forwards of our activities and liability balances related to our Fiscal 2027 Plan are presented in the tables below:


(in millions)	Liability Balance as of April 3, 2026		Costs, Net of Adjustments		Cash Payments		Non-Cash Items		Liability Balance as of July 3, 2026
Severance and termination benefit costs	$	—	$	28	$	(13)	$	—	$	15

Stock-based compensation charges	—		4		—		(4)		—


Total	$	—	$	32	$	(13)	$	(4)	$	15

The restructuring liabilities are included in Other current liabilities in our Condensed Consolidated Balance Sheets.

Our restructuring and other costs related to the Fiscal 2027 Plan are presented in the table below:


	Three Months Ended
(In millions)	July 3, 2026
Severance and termination benefit costs	$	28

Stock-based compensation charges	4



Total restructuring and other costs	$	32

Occasionally, we incur costs related to past restructuring plans. Charges incurred during the three months ended July 3, 2026, and the related liability balances as of July 3, 2026, were immaterial.