Restructuring and Other Charges

3 Months Ended

Mar. 31, 2014

The following table presents restructuring and other charges included in cost of revenues and restructuring and other charges in the Condensed Consolidated Statements of Operations under the Company's restructuring plans (in millions):



	Three Months Ended March 31,
	2014		2013
Severance	$	28.3	$	4.4
Facilities	0.2		2.6
Contract terminations	0.8		0.7
Asset impairment and write-downs	93.1		—
Total	$	122.4	$	7.7

Reported as:
Cost of revenues	$	8.4	$	0.7
Restructuring and other charges	114.0		7.0
Total	$	122.4	$	7.7

Restructuring charges are based on the Company's restructuring plans that were committed to by management. Any changes in the estimates of executing the approved plans are reflected in the Company's results of operations.

2014 Restructuring Plan

In connection with IOP announced in the first quarter of 2014, the Company initiated a restructuring plan (the “2014 Restructuring Plan”) to refocus the Company's strategy, optimize its structure, and improve operational efficiencies. The 2014 Restructuring Plan consists of workforce reductions, facility consolidations or closures, asset write-downs, contract terminations and other charges.

During the three months ended March 31, 2014, the Company recorded $28.0 million of severance costs, $84.7 million of impairment charges related to licensed software, and contract terminations of $0.8 million that were recorded to restructuring and other charges in the Condensed Consolidated Statement of Operations. The Company also recorded inventory write-downs related to the acceleration of the end-of-service life of certain products totaling $8.4 million to cost of revenues in the Condensed Consolidated Statement of Operations during the three months ended March 31, 2014. In connection with the 2014 Restructuring Plan, the Company expects to record aggregate future charges of approximately $60.0 million to $90.0 million allocated to the following restructuring activities: $9.0 million to $11.0 million for severance, $45.0 million to $55.0 million for facility consolidations or closures, $6.0 million to $12.0 million for asset write-downs, and up to $12.0 million for contract terminations and other charges.

Other Plans

Restructuring plans initiated by the Company in fiscal 2013, 2012, and 2011 have been substantially completed as of March 31, 2014 with minor adjustments recorded during the three months ended March 31, 2014 in connection with these plans. The Company expects to record aggregate future charges of approximately $2.5 million related to severance under these restructuring plans. The remaining restructuring liability under these plans related to facility charges are expected to be completed by March 2018.

Restructuring liabilities are reported within other accrued liabilities and other long-term liabilities on the Condensed Consolidated Balance Sheets. The following table provides a summary of changes in the restructuring liability related to the Company's plans during the three months ended March 31, 2014 (in millions):



	December 31, 2013		Charges		Cash Payments			Non-cash Settlements and Other			March 31, 2014
Severance	$	5.6	$	28.3	$	(3.7	)	$	(0.6	)	$	29.6
Facilities	5.1		0.2		(0.9		)	—			4.4
Contract terminations and other	7.1		0.8		(7.0		)	(0.8		)	0.1
Total	$	17.8	$	29.3	$	(11.6	)	$	(1.4	)	$	34.1

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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