Workforce Realignment
In October 2015, reflecting a realignment of resources toward higher growth opportunities and our commitment to operating margin improvement, we announced a plan to repurpose or eliminate approximately 8% of worldwide positions and to consolidate select facilities, which would incur a then expected restructuring charge of $40 million to $50 million. As announced in October 2016, we increased the scope of our realignment, which raised our estimate to approximately $75 million to $80 million (and to approximately 13% of our September 30, 2015 worldwide headcount). As of December 31, 2016, we were materially complete with those actions and had incurred total restructuring charges of approximately $83 million, above the high end of our estimate due to some incremental efficiencies which were identified during the quarter. Of that amount, $37 million was recorded in Q1’16, $5 million in Q2’16, $3 million in Q3’16, $32 million in Q4’16 and $6 million in Q1’17. Substantially all of the charges are attributable to termination benefits.

FY’17 Business Outlook
For the second quarter ending April 1, 2017 and for fiscal year 2017, the company expects:

In millions except per share amounts
Operating Measures(1)				Q2’17 Low				Q2’17 High				FY’17 Low				FY’17 High
Subscription ACV				$ 24				$ 27				$ 130				$ 136
License and Subscription Bookings				$ 80				$ 90				$ 400				$ 420
Subscription % of Bookings				60%				60%				65%				65%
(1) An explanation of the metrics included in this table is provided below.
Financial Measures				Q2’17 Low				Q2’17 High				FY’17 Low				FY’17 High
Subscription Revenue				$ 64				$ 64				$ 262				$ 267
Support Revenue				140				140				578				578
Perpetual License Revenue				31				36				140				150
Total Software Revenue (2)				235				240				980				995
Professional Services Revenue				45				45				185				185
Total Revenue (2)				$ 280				$ 285				$ 1,165				$ 1,180
Operating Expense (GAAP)				$ 184				$ 188				$ 768				$ 778
Operating Expense (Non-GAAP)				161				166				670				680
Operating Margin (GAAP)				4%				5%				5%				6%
Operating Margin (Non-GAAP)				16%				17%				17%				18%
Tax Rate (GAAP)				35%				35%				60%				60%
Tax Rate (Non-GAAP)				10%				8%				10%				8%
Shares Outstanding				117				117				117				117
EPS (GAAP)				$ 0.01				$ 0.04				$ 0.06				$ 0.09
EPS (Non-GAAP) (2)				$ 0.26				$ 0.31				$ 1.20				$ 1.30
Free Cash Flow												$ 127				$ 137
Adjusted Free Cash Flow (3)												$ 170				$ 180

<