Quarterly report pursuant to Section 13 or 15(d)

Restructuring and Asset Impairment Charges

v2.4.1.9
Restructuring and Asset Impairment Charges
 3 Months Ended
Mar. 28, 2015
Restructuring Costs and Asset Impairment Charges [Abstract]  
Restructuring and Asset Impairment Charges [Text Block]
Note 11: Restructuring and Asset Impairment Charges
Beginning in the third quarter of 2013, management 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, 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 each period were as follows:
 
 
Three Months Ended
(In Millions)
 
Mar 28,
2015
 
Mar 29,
2014
Employee severance and benefit arrangements
 
$
99

 
$
137

Asset impairments and other restructuring charges
 
6

 
—

Total restructuring and asset impairment charges
 
$
105

 
$
137


Restructuring and asset impairment activity for the first three 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
 
99

 
7

 
106

Adjustments
 
—

 
(1
)
 
(1
)
Cash payments
 
(82
)
 
(4
)
 
(86
)
Non-cash settlements
 
—

 
(2
)
 
(2
)
Accrued restructuring balance as of March 28, 2015
 
$
138

 
$
11

 
$
149


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. Most of the accrued restructuring balance as of March 28, 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 that were approved in 2015 impacted approximately 1,400 employees. Since the third quarter of 2013, we have incurred a total of $640 million in restructuring and asset impairment charges. These charges included a total of $565 million related to employee severance and benefit arrangements for approximately 9,000 employees, and $75 million in asset impairment charges and other restructuring charges.