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

Quarterly report pursuant to Section 13 or 15(d)

Restructuring and Other Charges

Restructuring and Other Charges

6 Months Ended

Jul. 02, 2016

Restructuring Costs and Asset Impairment Charges [Abstract]

Restructuring and Asset Impairment Charges [Text Block]

Note 12: Restructuring and Other Charges

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



	Three Months Ended				Six Months Ended
(In Millions)	Jul 2, 2016		Jun 27, 2015		Jul 2, 2016		Jun 27, 2015
2016 Restructuring Program	$	1,414	$	—	$	1,414	$	—
2013 and 2015 Restructuring Programs	—		248		—		353
Total restructuring and other charges	$	1,414	$	248	$	1,414	$	353

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 and improve 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 for the period were as follows:



	Three Months Ended		Six Months Ended
(In Millions)	Jul 2, 2016		Jul 2, 2016
Employee severance and benefit arrangements	$	1,414	$	1,414
Asset impairments and other restructuring charges	—		—
Total restructuring and other charges	$	1,414	$	1,414

Restructuring and other activity for the 2016 Restructuring Program for the first six months of 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	1,336			—		1,336
Adjustments	—			—		—
Cash payments	(604		)	—		(604		)
Non-cash settlements	—			—		—
Accrued restructuring balance as of July 2, 2016	$	732		$	—	$	732

We recorded the accruals as restructuring and other charges in the consolidated condensed statement of income and within the "all other" operating segments category. Substantially all of the accrued restructuring balance as of July 2, 2016 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. The remaining accruals were recorded as an increase to our pension liability and are not included in our accrued restructuring balance.

The program is on track to meet our previously announced goal of a net reduction of approximately 12,000 positions globally.

2013 and 2015 Restructuring Programs

We had no restructuring and other charges associated with our 2013 and 2015 Restructuring Programs in the first six months of 2016 due to the completion of these programs in 2015. As of July 2, 2016, the remaining liability associated with both programs is $28 million ($70 million as of December 26, 2015). A majority of this liability is expected to be paid within the next 12 months and was recorded as a current liability. For more information about these programs, see "Restructuring and Asset Impairment Charges" note in Part II, Item 8 of our Annual Report on Form 10-K for the year ended December 26, 2015.