Quarterly report pursuant to Section 13 or 15(d)

Restructuring and Asset Impairment Charges

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Restructuring and Asset Impairment Charges
3 Months Ended
Mar. 29, 2014
Restructuring Costs and Asset Impairment Charges [Abstract]  
Restructuring And Asset Impairment Charges [Text Block]
Note 11: Restructuring and Asset Impairment Charges
In response to the current business environment, beginning in the third quarter of 2013, management approved several restructuring actions including targeted workforce reductions as well as exit of certain businesses and facilities. These actions include the wind down of our 200 millimeter wafer fabrication facility in Massachusetts, which we expect to cease production by the end of 2014. These targeted reductions will enable the company to better align our resources in areas providing the greatest benefit in the changing market.
Restructuring and asset impairment charges for each period were as follows:
 
 
Three Months Ended
(In Millions)
 
Mar 29,
2014
 
Mar 30,
2013
Employee severance and benefit arrangements
 
$
137

 
$

Asset impairments
 

 

Total restructuring and asset impairment charges
 
$
137

 
$


The restructuring and asset impairment activity for first three months of 2014 was as follows:
(In Millions)
 
Employee Severance and Benefits
 
Asset Impairments
 
Total
Accrued restructuring balance as of December 28, 2013
 
$
183

 
$

 
$
183

Additional accruals
 
139

 

 
139

Adjustments
 
(2
)
 

 
(2
)
Cash payments
 
(57
)
 

 
(57
)
Accrued restructuring balance as of March 29, 2014
 
$
263

 
$

 
$
263


We recorded the additional accruals and adjustments as restructuring and asset impairment charges in the consolidated condensed statements of income and within the “all other” operating segments category. The charges incurred during the first three months of 2014 included $137 million related to employee severance and benefit arrangements, which impacted approximately 2,200 employees. The accrued restructuring balance as of March 29, 2014 relates to employee severance and benefits which are expected to be paid within the next 12 months and was recorded as a current liability within accrued compensation and benefits in the consolidated condensed balance sheets.
Since the third quarter of 2013, we have incurred a total of $377 million in restructuring and asset impairment charges. These charges included a total of $338 million related to employee severance and benefit arrangements for approximately 6,100 employees, and $39 million in asset impairment charges.
We may incur additional charges in the future for employee severance and benefit arrangements, as well as facility-related or other exit activities, as we continue to align our resources to meet the needs of the business.