Analyzing and Interpreting Restructuring Costs and Effects

Smith$-$Burke, Inc., reports the following footnote disclosure $($excerpted$)$ in its $201010-K$ relating to its restructuring programs.

Fiscal $2010$ Acquisitions: On July $1,2010,$ SB completed the acquisition of Palm and initiated a plan to restructure the operations of Palm, including severance for Palm employees, contract cancellation costs and

other items.

The total expected cost of the plan is $$46$ million.

On April $12,2010,$ SB completed the acquisition of $3$C$.$ In connection with the acquisition, SB$\text{'}$s management approved and initiated a plan to restructure the operation of $3$C$,$ including severance costs and

costs to vacate duplicative facilities.

The total expected cost of the plan is $$42$ million.

In fiscal $2010,$ SB recorded restructuring charges of approximately $$18$ million.

Fiscal $2010$ ES Restructuring Plan: On June $1,2010,$ SB$\text{'}$s management announced a plan to restructure its enterprise services business. The total expected cost of the plan that will be recorded as restructuring

charges is approximately $$1\mathrm{.}0$ billion, including severance costs to eliminate approximately $9,000$ positions and infrastructure charges. For fiscal $2010,$ a restructuring charge of $$650$ million was recorded

primarily related to severance costs. As of October $31,2010,$ approximately $2,100$ positions have been eliminated.

Fiscal $2009$ Restructuring Plan: In May $2009,$ SB$\text{'}$s management approved and initiated a restructuring plan to structurally change and improve the effectiveness of several businesses. The total expected cost of

the plan is $$292$ million in severance$-$related costs associated with the planned elimination of approximately $5,000$ positions. As of October $31,2010,$ approximately $4,200$ positions had been eliminated.

Fiscal $2008$ SB$/$EDS Restructuring Plan: In accordance with the acquisition of EDS on August $26,2008,$ SB$\text{'}$s management approved and initiated a restructuring plan to combine and align SB$\text{'}$s services

businesses, eliminate duplicative overhead functions and consolidate and vacate duplicative facilities. The restructuring plan is expected to be implemented over four years at a total expected cost of $$3\mathrm{.}4$

billion.