Texas Instruments 2014 Annual Report Download - page 43

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 37
FORM 10-K
Restructuring charges/other
Restructuring charges/other is comprised of the following components:
For Years Ended December 31,
2014 2013 2012
Restructuring charges by action:
2013 actions
Severance and benefits cost (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 16 $ 49 $ —
Other exit costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 — —
26 49 —
Prior actions
Severance and benefits cost (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6) 36 251
Accelerated depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111 21
Other exit costs (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1) 30 128
(6) 77 400
Total restructuring charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 126 400
Other:
Gains on sales of assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (75) — —
Gain on technology transfer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —(315) —
Gain on transfer of Japan substitutional pension . . . . . . . . . . . . . . . . . . . . . . . . . . . —— (144)
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4— 8
Restructuring charges/other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (51) $ (189) $ 264
(a) Includes changes in estimates.
Restructuring charges/other are recognized in Other for segment reporting purposes. Restructuring actions related to the acquisition of
National are discussed in Note 3 and the associated costs are reflected in the Acquisition charges line of our Consolidated Statements
of Income.
2013 actions
We announced in January 2014 cost-saving actions in Embedded Processing and in Japan to reduce expenses and focus our
investments on markets with greater potential for sustainable growth and strong long-term returns. We expect the actions to be
completed by mid-2015. Cost reductions include the elimination of about 1,100 jobs worldwide. Through December 31, 2014, we have
recognized $75 million in cumulative restructuring charges, with no further material charges expected. As of December 31, 2014,
$43 million has been paid to terminated employees for severance and benefits.
Prior actions
In 2012, we announced a restructuring of our Wireless business to reduce expenses and focus our investments on markets with greater
potential for sustainable growth and strong long-term returns. This action was completed in 2013. We recognized $383 million in
cumulative restructuring charges, including a $90 million impairment of goodwill. As of December 31, 2014, $247 million has been paid
to terminated employees for severance and benefits.
Also in 2012, we announced closure of two older semiconductor manufacturing facilities in Houston, Texas, and Hiji, Japan. We
recognized $200 million in cumulative restructuring charges related to these closures, completing both by the end of 2013. As of
December 31, 2014, $103 million has been paid to terminated employees for severance and benefits.
As of December 31, 2014 and 2013, we carried immaterial liabilities related to actions commenced in 2008 and 2009. The related
expense was recognized in periods prior to 2011.
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