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Table of Contents
INTEL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Note 19: Restructuring and Asset Impairment Charges
The following table summarizes restructuring and asset impairment charges by plan for the three years ended December 26,
2009:
2009 Restructuring Program
In the first quarter of 2009, management approved plans to restructure some of our manufacturing and assembly and test
operations. These plans included closing two assembly and test facilities in Malaysia, one facility in the Philippines, and one
facility in China; stopping production at a 200mm wafer fabrication facility in Oregon; and ending production at our 200mm
wafer fabrication facility in California. We do not expect significant future charges related to the 2009 plan. The following
table summarizes charges for the 2009 restructuring plan during 2009:
The following table summarizes the restructuring and asset impairment activity for the 2009 restructuring plan during 2009:
We recorded the additional accruals, net of adjustments, as restructuring and asset impairment charges. The remaining accrual
as of December 26, 2009 was related to severance benefits that are recorded within accrued compensation and benefits.
The charges above include $208 million related to employee severance and benefit arrangements for 6,500 employees.
2008 NAND Plan
In the fourth quarter of 2008, management approved a plan with Micron to discontinue the supply of NAND flash memory
from the 200mm facility within the IMFT manufacturing network. The agreement resulted in a $215 million restructuring
charge, primarily related to the IMFT 200mm supply agreement. The restructuring charge resulted in a reduction of our
investment in IMFT/IMFS of $184 million, a cash payment to Micron of $24 million, and other cash payments of $7 million.
The 2008 NAND plan was completed at the end of 2008.
82
(In Millions)
2009
2008
2007
2009 restructuring program
$
215
$
—
$
—
2008 NAND plan
—
215
—
2006 efficiency program
495
516
Total restructuring and asset impairment charges
$
231
$
710
$
516
(In Millions)
2009
Employee severance and benefit arrangements
$
208
Asset impairments
7
Total restructuring and asset impairment charges
$
215
Employee Severance
Asset
(In Millions)
and Benefits
Impairments
Total
Accrued restructuring balance as of December 27, 2008
$
—
$
—
$
—
Additional accruals
223
7
230
Adjustments
(15
)
—
(
15
)
Cash payments
(182
)
—
(
182
)
Non
-
cash settlements
—
(
7
)
(7
)
Accrued restructuring balance as of December 26, 2009
$
26
$
—
$
26