Annual report pursuant to Section 13 and 15(d)

Restructuring and Other Charges

v3.8.0.1
Restructuring and Other Charges
12 Months Ended
Dec. 30, 2017
Restructuring Costs and Asset Impairment Charges [Abstract]  
Restructuring and Other Charges [Text Block]
Note 7: Restructuring and Other Charges
Years Ended
(In Millions)
 
Dec 30,
2017
 
Dec 31,
2016
 
Dec 26,
2015
2016 Restructuring Program
 
$
135

 
$
1,823

 
$

2015 and 2013 Restructuring Programs
 

 

 
354

ISecG separation costs and other charges
 
249

 
63

 

Total restructuring and other charges
 
$
384

 
$
1,886

 
$
354


2016 RESTRUCTURING PROGRAM
In the second quarter of 2016, 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 closed certain facilities and reduced headcount globally to align our operations with evolving business needs by investing in our growth businesses and improving efficiencies. This program was completed in 2017.
Restructuring and other charges by type for the 2016 Restructuring Program were as follows:
Years Ended
(In Millions)
 
Dec 30,
2017
 
Dec 31,
2016
Employee severance and benefit arrangements
 
$
70

 
$
1,737

Pension settlement charges
 
25

 
57

Asset impairment and other charges
 
40

 
29

Total restructuring and other charges
 
$
135

 
$
1,823


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

 
$

 
$

Additional accruals
 
1,556

 
29

 
1,585

Adjustments
 
92

 

 
92

Cash payments
 
(1,063
)
 

 
(1,063
)
Non-cash settlements
 

 
(19
)
 
(19
)
Accrued restructuring balance as of December 31, 2016
 
585

 
10

 
595

Additional accruals
 

 
40

 
40

Adjustments
 
70

 

 
70

Cash payments
 
(352
)
 
(25
)
 
(377
)
Non-cash settlements
 

 
(3
)
 
(3
)
Accrued restructuring balance as of December 30, 2017
 
$
303

 
$
22

 
$
325


We recorded the additional accruals as restructuring and other charges in the consolidated statements of income and within the "all other" operating segments category. A substantial majority of the accrued restructuring balance as of December 30, 2017 is expected to be paid within the next 12 months, and was recorded within accrued compensation and benefits on the consolidated balance sheets. Restructuring actions related to this program, which were approved in 2016, impacted approximately 16,000 employees.
2015 AND 2013 RESTRUCTURING PROGRAMS
During 2015 and 2013, management approved and commenced implementation of restructuring actions, including targeted workforce reductions and the exit of certain businesses and facilities, as we adjusted resources from areas of disinvestment to areas of investment. The 2013 restructuring program included the wind down of our 200mm wafer fabrication facility in Massachusetts and the closure of our assembly and test facility in Costa Rica. Both programs were completed in 2015.