Annual report pursuant to Section 13 and 15(d)

Restructuring and Other Charges

v3.6.0.2
Restructuring and Other Charges
12 Months Ended
Dec. 31, 2016
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,
2016
 
Dec 26,
2015
 
Dec 27,
2014
2016 Restructuring Program
 
$
1,823

 
$

 
$

2015 Restructuring Program
 

 
264

 

2013 Restructuring Program
 

 
90

 
295

Other charges
 
63

 

 

Total restructuring and other charges
 
$
1,886

 
$
354

 
$
295


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 were as follows:
Years Ended
(In Millions)
 
Dec 31,
2016
Employee severance and benefit arrangements
 
$
1,737

Pension settlement charges
 
57

Asset impairment and other charges
 
29

Total restructuring and other charges
 
$
1,823


Restructuring and other activity for the 2016 Restructuring Program in 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
 
1,556

 
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


We recorded the additional accruals as restructuring and other charges in the consolidated statements of income and within the “all other” operating segments category. Substantially all of the accrued restructuring balance as of December 31, 2016 is expected to be paid within the next 12 months, and was recorded within accrued compensation and benefits on the consolidated balance sheets. The other charges associated with the program 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 are expected to impact approximately 15,000 employees.
2015 Restructuring Program
During 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. This program was completed in 2015.
2013 Restructuring Program
During 2013, management approved and commenced implementation of several restructuring actions, including targeted workforce reductions and the exit of certain businesses and facilities. These actions included the wind down of our 200mm wafer fabrication facility in Massachusetts and the closure of our assembly and test facility in Costa Rica. This program was completed in 2015.
Other Charges
Other charges consist primarily of expenses associated with the planned divestiture of ISecG that was announced in the third quarter of 2016.