Restructuring and Other Charges
|6 Months Ended|
Jul. 02, 2016
|Restructuring Costs and Asset Impairment Charges [Abstract]|
|Restructuring and Asset Impairment Charges [Text Block]||
Note 12: Restructuring and Other Charges
Restructuring and other charges by program for each period were as follows:
2016 Restructuring Program
In the second quarter of 2016, our management approved and commenced the 2016 Restructuring Program to accelerate our transformation from a PC company to one that powers the cloud and billions of smart, connected computing devices. Under this program, we are in the process of closing certain facilities and reducing headcount globally to align our operations with evolving business needs and improve efficiencies. We expect these actions to be substantially completed by the second quarter of 2017.
Restructuring and other charges by type for the 2016 Restructuring Program for the period were as follows:
Restructuring and other activity for the 2016 Restructuring Program for the first six months of 2016 was as follows:
We recorded the accruals as restructuring and other charges in the consolidated condensed statement of income and within the "all other" operating segments category. Substantially all of the accrued restructuring balance as of July 2, 2016 is expected to be paid within the next 12 months and was recorded as a current liability within accrued compensation and benefits on the consolidated condensed balance sheets. The remaining accruals were recorded as an increase to our pension liability and are not included in our accrued restructuring balance.
The program is on track to meet our previously announced goal of a net reduction of approximately 12,000 positions globally.
2013 and 2015 Restructuring Programs
We had no restructuring and other charges associated with our 2013 and 2015 Restructuring Programs in the first six months of 2016 due to the completion of these programs in 2015. As of July 2, 2016, the remaining liability associated with both programs is $28 million ($70 million as of December 26, 2015). A majority of this liability is expected to be paid within the next 12 months and was recorded as a current liability. For more information about these programs, see "Restructuring and Asset Impairment Charges" note in Part II, Item 8 of our Annual Report on Form 10-K for the year ended December 26, 2015.
The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.
Reference 1: http://www.xbrl.org/2003/role/presentationRef