Annual report pursuant to Section 13 and 15(d)

Restructuring and Other Charges

v3.22.4
Restructuring and Other Charges
 12 Months Ended
Dec. 31, 2022
Restructuring Costs and Asset Impairment Charges [Abstract]  
Restructuring and Other Charges [Text Block]
Note 7 : Restructuring and Other Charges
Years Ended (In Millions) Dec 31, 2022 Dec 25, 2021 Dec 26, 2020
Employee severance and benefit arrangements $ 1,038  $ 48  $ 124 
Litigation charges and other (1,187) 2,291  67 
Asset impairment charges 151  287  7 
Total restructuring and other charges $ 2  $ 2,626  $ 198 
The 2022 Restructuring Program was approved to rebalance our workforce and operations to create efficiencies and improve our product execution in alignment with our strategy. Restructuring charges are primarily comprised of employee severance and benefit arrangements and are recorded as corporate charges in the "all other" category presented in "Note 3: Operating Segments" within the Notes to Consolidated Financial Statements. As of December 31, 2022, we have accrued $873 million as a current liability within Accrued compensation and benefits on our Consolidated Balance Sheets; $165 million in payments or other adjustments were made during the period. We expect these actions to be substantially completed by the end of 2023, but this is subject to change. Any changes to the estimates or timing of executing the 2022 Restructuring Program will be reflected in our future results of operations.
Litigation charges and other includes a $1.2 billion benefit in 2022 from the annulled penalty related to an EC fine that was recorded and paid in 2009, and a charge of $2.2 billion in 2021 related to the VLSI litigation. These were recorded as a corporate benefit and charge in the "all other" category presented in "Note 3: Operating Segments" within the Notes to Consolidated Financial Statements. Refer to "Note 19: Commitments and Contingencies" within the Notes to Consolidated Financial Statements for further information on legal proceedings related to the EC fine and the VLSI litigation.
Asset impairment charges includes $238 million of goodwill and other impairments related to the shutdown in 2021 of two of our non-strategic businesses, the results of which are included in the “all other” category presented in “Note 3: Operating Segments” within the Notes to Consolidated Financial Statements.