Annual report pursuant to Section 13 and 15(d)

Restructuring

v2.4.0.8
Restructuring
 12 Months Ended
Dec. 28, 2013
Restructuring and Related Activities [Abstract]  
Restructuring
Restructuring
2012 Restructuring Plan
In the fourth quarter of 2012, the Company implemented a restructuring plan designed to improve the Company’s cost structure and to strengthen its competitiveness in core growth areas. The plan primarily involves a workforce reduction of approximately 14% as well as asset impairments and facility consolidations. The Company 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, the Company incurred costs of $11 million related to facility consolidation and site closures, which were partially offset by the release of employee 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, the Company initiated a restructuring plan to strengthen its 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 the Company's global workforce by approximately 13% and contract and program terminations. The Company 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, the Company recorded an additional $8 million for severance and costs related to the continuation of certain employee benefits. The 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 related liabilities recorded in “Accrued and other current liabilities” on the Company’s consolidated balance sheets remaining 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, the Company reversed approximately $2 million of 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 through December 28, 2013:
 
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