Restructuring and Asset Impairment Charges
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Jun. 28, 2014
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Restructuring Costs and Asset Impairment Charges [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring And Asset Impairment Charges [Text Block] |
Note 12: Restructuring and Asset Impairment Charges
In response to the current business environment, beginning in the third quarter of 2013, management has approved 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 and the closure of our assembly and test facility in Costa Rica, which we expect to cease production in the first quarter of 2015 and the end of 2014, respectively. These targeted reductions will enable the company to better align our resources in areas providing the greatest benefit in the changing market.
Restructuring and asset impairment charges for each period were as follows:
The restructuring and asset impairment activity for first six months of 2014 was as follows:
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. The charges incurred during the first six months of 2014 included $209 million related to employee severance and benefit arrangements, which impacted approximately 3,500 employees. Substantially all of the accrued restructuring balance as of June 28, 2014 relates to employee severance and benefits, which are expected to be paid within the next 12 months, and was recorded as a current liability within accrued compensation and benefits in the consolidated condensed balance sheets.
Since the third quarter of 2013, we have incurred a total of $458 million in restructuring and asset impairment charges. These charges included a total of $410 million related to employee severance and benefit arrangements for approximately 7,400 employees, and $48 million in asset impairment charges and other restructuring charges.
We may incur additional charges in the future for employee severance and benefit arrangements, as well as facility-related or other exit activities, as we continue to align our resources to meet the needs of the business.
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