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Table of Contents
INTEL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
2006 Efficiency Program
In the third quarter of 2006, management approved several actions as part of a restructuring plan designed to improve
operational efficiency and financial results. The following table summarizes charges for the 2006 efficiency program for the
three years ended December 26, 2009:
During 2006, as part of our assessment of our worldwide manufacturing capacity operations, we placed for sale our fabrication
facility in Colorado Springs, Colorado. As a result of placing the facility for sale, in 2006 we recorded a $214 million
impairment charge to write down to fair value the land, building, and equipment. We incurred $54 million in additional asset
impairment charges as a result of market conditions related to the Colorado Springs facility during 2007 and additional
charges in 2008. We sold the Colorado Springs facility in 2009.
In addition, during 2007 we recorded land and building write-downs related to certain facilities in Santa Clara, California. We
also incurred $85 million in asset impairment charges related to assets that we sold in conjunction with the divestiture of our
NOR flash memory business in 2007 and an additional $275 million in 2008. We determined the impairment charges based on
the fair value, less selling costs, that we expected to receive upon completion of the divestiture in 2007 and determined the
impairment charges based on the revised fair value of the equity and note receivable that we received upon completion of the
divestiture, less selling costs, in 2008. For further information on this divestiture, see “Note 16: Divestitures.”
The following table summarizes the restructuring and asset impairment activity for the 2006 efficiency program during 2008
and 2009:
We recorded the additional accruals, net of adjustments, as restructuring and asset impairment charges. The 2006 efficiency
plan is complete.
From the third quarter of 2006 through 2009, we incurred a total of $1.6 billion in restructuring and asset impairment charges
related to this program. These charges included a total of $686 million related to employee severance and benefit arrangements
for 11,300 employees, and $896 million in asset impairment charges.
83
(In Millions)
2009
2008
2007
Employee severance and benefit arrangements
$
8
$
151
$
289
Asset impairments
8
344
227
Total
$
$
495
$
516
Employee
Severance
Asset
(In Millions)
and Benefits
Impairments
Total
Accrued restructuring balance as of December 29, 2007
$
127
$
—
$
127
Additional accruals
167
344
511
Adjustments
(16
)
—
(
16
)
Cash payments
(221
)
—
(
221
)
Non
-
cash settlements
—
(
344
)
(344
)
Accrued restructuring balance as of December 27, 2008
$
$
—
$
57
Additional accruals
8
26
Adjustments
(10
)
—
(
10
)
Cash payments
(65
)
—
(
65
)
Non
-
cash settlements
—
(
8
)
(8
)
Accrued restructuring balance as of December 26, 2009
$
—
$
—
$
—