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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 2013, we incurred costs of $11 million related to facility consolidation and site closures, which
were partially offset by the release of estimated employee-related severance costs of $5 million. The 2012
restructuring plan was completed as of the end of the third quarter of 2013.
2011 Restructuring Plan
In the fourth quarter of 2011, we initiated a restructuring plan to strengthen our competitive positioning,
implement a more competitive cost structure and conduct a workforce rebalancing to better address faster
growing market segments. The plan included a reduction of workforce of approximately 13% and contract and
program terminations. We recorded a $100 million restructuring charge in the fourth quarter of 2011, which
consisted of $54 million for severance and costs related to the continuation of certain employee benefits, $45
million for contract or program termination costs and $1 million for asset impairments. In 2012, we recorded an
additional $8 million for severance and costs related to the continuation of 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 2013 and 2012 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 28, 2013:
Severance
and related
benefits
Other exit
Related
Costs Total
(In millions)
Balance at December 31, 2011 ......................................... $ 22 $45 $ 67
Charges ....................................................... 95 5 100
Cash payments ................................................. (76) (29) (105)
Non-cash charges (reversals), net ................................... — (4) (4)
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
2008 Restructuring Plan
In 2011, we reversed approximately $2 million related to costs associated with the 2008 restructuring plan
because the actual restoration costs for vacated facilities were lower than previously estimated.
The following table provides a summary of each major type of cost associated with the 2012, 2011 and 2008
restructuring plans for the periods presented:
2013 2012 2011
(In millions)
Severance and benefits charges (reversals), net .................................... $ (5) $ 95 $54
Contract or program termination charges ......................................... — — 45
Asset impairments ........................................................... — 4 1
Facility consolidation and closure charges (reversals), net ........................... 11 1 (2)
Total ..................................................................... $ 6 $100 $98
51