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a non-cash charge. In accordance with the restructuring plan, we expect to record a restructuring charge of
approximately $13 million in 2015, primarily related to real estate actions. We made cash payments of $19
million in the fourth quarter of 2014 and expect to make cash payments of $34 million and $8 million in 2015
and 2016, respectively.
2012 Restructuring Plan
In the fourth quarter of 2012, we implemented a restructuring plan designed to improve our cost structure
and to strengthen our competitiveness in core growth areas. The plan primarily involved a workforce reduction of
approximately 14% as well as asset impairments and facility consolidations. We recorded restructuring expense
in the fourth quarter of 2012 of approximately $90 million, which was primarily comprised of employee
severance. The non-cash portion of the restructuring expense included approximately $4 million of asset
impairments. In 2014 and 2013, we incurred costs of $3 million and $11 million, respectively, related to facility
consolidation and site closures, which were partially offset by the release of estimated employee-related
severance costs of $5 million and $2 million, respectively. The 2012 restructuring plan was largely completed as
of the end of the third quarter of 2013.
2011 Restructuring Plan
In 2012, we recorded an approximately $8 million for severance and costs related to certain employee
benefits. The 2011 restructuring plan was completed as of the end of the first quarter of 2012.
The following table provides a summary of the restructuring activities during 2014 and 2013 and the
remaining related liabilities recorded in “Accrued and other current liabilities” and “Other long-term liabilities”
on our consolidated balance sheet as of December 27, 2014:
Severance
and related
benefits
Other exit
Related
Costs Total
(In millions)
Balance at December 29, 2012 .......................................... $ 41 $17 $58
Charges (reversals), net ........................................... (5) 11 6
Cash payments .................................................. (33) (21) (54)
Balance at December 28, 2013 .......................................... 3 7 10
Charges (reversals), net ........................................... 42 16 58
Cash payments .................................................. (19) (4) (23)
Non-cash charges ................................................ — (6) (6)
Balance at December 27, 2014 .......................................... $ 26 $13 $39
The following table provides a summary of each major type of cost associated with the 2014, 2012 and 2011
restructuring plans for the periods presented:
2014 2013 2012
(In millions)
Severance and benefits charges (reversals), net .................................... $42 $ (5) $ 95
Contract or program termination charges ......................................... 6 — —
Asset impairments ........................................................... 6 — 4
Facility consolidation and closure charges ........................................ 4 11 1
Total ..................................................................... $58 $ 6 $100
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