Quarterly report pursuant to Section 13 or 15(d)

Restructuring and Other Charges

v3.7.0.1
Restructuring and Other Charges
 6 Months Ended
Jul. 01, 2017
Restructuring Costs and Asset Impairment Charges [Abstract]  
Restructuring and Other Charges [Text Block]
Note 6: Restructuring and Other Charges
 
 
Three Months Ended
 
Six Months Ended
(In Millions)
 
Jul 1,
2017
 
Jul 2,
2016
 
Jul 1,
2017
 
Jul 2,
2016
2016 Restructuring Program
 
$
(42
)
 
$
1,414

 
$
(53
)
 
$
1,414

Other charges
 
147

 
—

 
238

 
—

Total restructuring and other charges
 
$
105

 
$
1,414

 
$
185

 
$
1,414


2016 Restructuring Program
In the second quarter of 2016, our management approved and commenced the 2016 Restructuring Program. This program was substantially completed in the second quarter of 2017.
For further information, see "Note 7: Restructuring and Other Charges" in Part II, Item 8 of our 2016 Form 10-K.
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 1,
2017
 
Jul 2,
2016
 
Jul 1,
2017
 
Jul 2,
2016
Employee severance and benefit arrangements
 
$
(49
)
 
$
1,414

 
$
(70
)
 
$
1,414

Asset impairment and other charges
 
7

 
—

 
17

 
—

Total restructuring and other charges
 
$
(42
)
 
$
1,414

 
$
(53
)
 
$
1,414


Restructuring and other activity for the 2016 Restructuring Program for the first six months of 2017 was as follows:
(In Millions)
 
Employee Severance and Benefits
 
Asset Impairments and Other
 
Total
Accrued restructuring balance as of December 31, 2016
 
$
585

 
$
10

 
$
595

Additional accruals
 
—

 
17

 
17

Adjustments
 
(70
)
 
—

 
(70
)
Cash payments
 
(217
)
 
(16
)
 
(233
)
Non-cash settlements
 
—

 
(1
)
 
(1
)
Accrued restructuring balance as of July 1, 2017
 
$
298

 
$
10

 
$
308


We recorded the additional accruals as restructuring and other charges and within the "all other" operating segments category. A substantial majority of the accrued restructuring balance as of July 1, 2017 is expected to be paid within the next 12 months and was recorded within accrued compensation and benefits. Restructuring actions related to this program that were approved in 2016 impacted approximately 15,000 employees.
Other charges
 
 
Three Months Ended
 
Six Months Ended
(In Millions)
 
Jul 1,
2017
 
Jul 1,
2017
ISecG separation costs
 
$
70

 
$
143

Other
 
77

 
95

Total other charges
 
$
147

 
$
238