Quarterly report pursuant to Section 13 or 15(d)

Restructuring and Other Charges

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Restructuring and Other Charges
 9 Months Ended
Oct. 01, 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 for each period were as follows:
 
 
Three Months Ended
 
Nine Months Ended
(In Millions)
 
Oct 1,
2016
 
Sep 26,
2015
 
Oct 1,
2016
 
Sep 26,
2015
2016 Restructuring Program
 
$
349

 
$
—

 
$
1,763

 
$
—

2013 and 2015 Restructuring Programs
 
—

 
14

 
—

 
367

Other charges
 
23

 
—

 
23

 
—

Total restructuring and other charges
 
$
372

 
$
14

 
$
1,786

 
$
367


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 by investing in our growth businesses and improving 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:
 
 
Three Months Ended
Nine Months Ended
(In Millions)
 
Oct 1,
2016
 
Oct 1,
2016
Employee severance and benefit arrangements
 
$
338

 
$
1,752

Pension settlement charges
 
10

 
10

Asset impairments and other charges
 
1

 
1

Total restructuring and other charges
 
$
349

 
$
1,763


Restructuring and other activity for the 2016 Restructuring Program for the first nine months of 2016 was as follows:
(In Millions)
 
Employee Severance and Benefits
 
Asset Impairments and Other
 
Total
Accrued restructuring balance as of December 26, 2015
 
$
—

 
$
—

 
$
—

Additional accruals
 
1,511

 
1

 
1,512

Adjustments
 
150

 
—

 
150

Cash payments
 
(940
)
 
—

 
(940
)
Non-cash settlements
 
(8
)
 
—

 
(8
)
Accrued restructuring balance as of October 1, 2016
 
$
713

 
$
1

 
$
714


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 October 1, 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.
Restructuring actions related to this program that were approved in 2016 impacted approximately 15,000 employees. These reductions are in conjunction with our effort to re-balance our workforce to align to strategically important areas in the data center, Internet of Things, and memory businesses.
2013 and 2015 Restructuring Programs
As of October 1, 2016, the remaining liability associated with both programs is $17 million ($70 million as of December 26, 2015). For more information about these programs, see the "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.