Intel Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Restructuring and Asset Impairment Charges

Restructuring and Asset Impairment Charges

9 Months Ended

Sep. 26, 2015

Restructuring Costs and Asset Impairment Charges [Abstract]

Restructuring and Asset Impairment Charges [Text Block]

Note 11: Restructuring and Asset Impairment Charges

Restructuring and asset impairment charges by program for each period were as follows:



	Three Months Ended					Nine Months Ended
(In Millions)	Sep 26, 2015			Sep 27, 2014		Sep 26, 2015		Sep 27, 2014
2015 restructuring program	$	22		$	—	$	272	$	—
2013 restructuring program	(8		)	20		95		238
Total restructuring and asset impairment charges	$	14		$	20	$	367	$	238

2015 Restructuring Program

Beginning in the second quarter of 2015, management approved and commenced implementation of restructuring actions, primarily targeted workforce reductions, as we adjusted resources from areas of disinvestment to areas of investment. We expect these actions to be substantially complete by the end of 2015.

Restructuring and asset impairment charges for the 2015 restructuring program for each period were as follows:



	Three Months Ended				Nine Months Ended
(In Millions)	Sep 26, 2015		Sep 27, 2014		Sep 26, 2015		Sep 27, 2014
Employee severance and benefit arrangements	$	20	$	—	$	270	$	—
Asset impairments and other restructuring charges	2		—		2		—
Total restructuring and asset impairment charges	$	22	$	—	$	272	$	—

Restructuring and asset impairment activity for the 2015 restructuring program for the first nine months of 2015 was as follows:



(In Millions)	Employee Severance and Benefits			Asset Impairments and Other			Total
Accrued restructuring balance as of December 27, 2014	$	—		$	—		$	—
Additional accruals	283			2			285
Adjustments	(13		)	—			(13		)
Cash payments	(178		)	—			(178		)
Non-cash settlements	—			(1		)	(1		)
Accrued restructuring balance as of September 26, 2015	$	92		$	1		$	93

We recorded the additional accruals as restructuring and asset impairment charges in the consolidated condensed statements of income and within the “all other” operating segments category. Substantially all of the accrued restructuring balance as of September 26, 2015 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.

Restructuring actions related to this program that were approved in 2015 impacted approximately 3,800 employees.

2013 Restructuring Program

Beginning in the third quarter of 2013, management approved and commenced implementation of several restructuring actions, including targeted workforce reductions and the exit of certain businesses and facilities. These actions include the wind down of our 200 millimeter wafer fabrication facility in Massachusetts, which ceased production in the first quarter of 2015, and the closure of our assembly and test facility in Costa Rica, which ceased production in the fourth quarter of 2014. These targeted reductions will enable us to better align our resources in areas providing the greatest benefit in the current business environment. We expect these actions to be substantially complete by the end of 2015.

Restructuring and asset impairment charges for the 2013 restructuring program for each period were as follows:



	Three Months Ended					Nine Months Ended
(In Millions)	Sep 26, 2015			Sep 27, 2014		Sep 26, 2015		Sep 27, 2014
Employee severance and benefit arrangements	$	(9	)	$	9	$	87	$	218
Asset impairments and other restructuring charges	1			11		8		20
Total restructuring and asset impairment charges	$	(8	)	$	20	$	95	$	238

Restructuring and asset impairment activity for the 2013 restructuring program for the first nine months of 2015 was as follows:



(In Millions)	Employee Severance and Benefits			Asset Impairments and Other			Total
Accrued restructuring balance as of December 27, 2014	$	121		$	11		$	132
Additional accruals	100			9			109
Adjustments	(13		)	(1		)	(14		)
Cash payments	(156		)	(14		)	(170		)
Non-cash settlements	—			(3		)	(3		)
Accrued restructuring balance as of September 26, 2015	$	52		$	2		$	54

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. Substantially all of the accrued restructuring balance as of September 26, 2015 is expected to be paid by the end of 2015 and was recorded as a current liability within accrued compensation and benefits on the consolidated condensed balance sheets.

Restructuring actions related to this program that were approved in 2015 impacted approximately 1,100 employees. Since the third quarter of 2013, we have incurred a total of $630 million in restructuring and asset impairment charges related to this program. These charges included a total of $553 million related to employee severance and benefit arrangements for approximately 8,700 employees, and $77 million in asset impairment charges and other restructuring charges.