Texas Instruments 2009 Annual Report Download - page 13

TEXAS INSTRUMENTS 2009 ANNUAL REPORT PAGE 11
Restructuring activities have also resulted in asset impairments, which are included in restructuring expense and are recorded as an
adjustment to the basis of the asset, not as a liability relating to a restructuring charge. When we commit to a plan to abandon a long-lived
asset before the end of its previously estimated useful life, we accelerate the recognition of depreciation to reflect the use of the asset
over its shortened useful life. When an asset is held to be sold, we write down the carrying value to its net realizable value and cease
depreciation.
2008 and 2009 actions
In October 2008, we announced actions to reduce expenses in our Wireless segment, especially our baseband operation. In
January 2009, we announced actions that included broad-based employment reductions to align our spending with weakened
demand. Combined, these actions eliminated about 3,900 jobs; they were completed in 2009.
2007 actions
In January 2007, we announced plans to change how we develop advanced digital manufacturing process technology. Instead of
separately creating our own core process technology, we now work collaboratively with our foundry partners to specify and drive the
next generations of digital process technology. Additionally, we stopped production at an older digital factory. These actions eliminated
about 300 jobs and were completed in 2007.
The table below reflects the changes in accrued restructuring balances associated with these actions:
2008 and 2009 Actions 2007 Action
Severance
and Benefits
Impairments
and Other
Charges
Impairments
and Other
Charges Total
Accrual at December 31, 2007. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ — $ — $ 17 $17
Restructuring expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 218 12 24 254
Non-cash charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (30)* (7)(28)(65)
Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) — (8)(10)
Remaining accrual at December 31, 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . 186 5 5 196
Restructuring expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201 11 —212
Non-cash (charges) credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (26)* 1(4)(29)
Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (277)(7) — (284)
Remaining accrual at December 31, 2009. . . . . . . . . . . . . . . . . . . . . . . . . . $84 $10 $ 1 $ 95
* Reflects charges and credits for postretirement benefit plan settlement, curtailment and special termination benefits.
The accrual balances above are a component of Accrued expenses and other liabilities or Deferred credits and other liabilities on our
balance sheets, depending on the expected timing of payment.
Restructuring expense recognized by segment from the actions above are as follows:
2009 2008 2007
Analog . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $87 $60 $18
Embedded Processing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 24 4
Wireless . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 130 20
Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 40 10
Total restructuring expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $212 $254 $ 52