Restructuring and Other Charges

6 Months Ended

Jul. 26, 2015

Restructuring and Other Charges [Abstract]

Restructuring and Related Activities Disclosure [Text Block]

Restructuring and Other Charges

In May 2015, we announced our intent to wind-down our Icera modem operations and that we were open to a sale of the technology or operations. During the three months ended July 26, 2015, we pursued the sale of Icera’s technology and operations but were unable to identify a viable buyer with genuine interest. As a result, we began the wind-down of Icera modem operations.

The results of any remaining ongoing Icera modem operations are reported in the Tegra Processor reporting segment, however, restructuring and other charges associated with the wind-down of the Icera modem operations are separately reported with other non-recurring charges and benefits that our CODM deems to be enterprise in nature. Please refer to Note 13 of these Notes to Condensed Consolidated Financial Statements for a discussion regarding our reporting segments.

Our operating expenses for the three months ended July 26, 2015 included $89 million of restructuring and other charges. Please refer to Note 4 of these Notes to Condensed Consolidated Financial Statements for a discussion regarding the income tax charges associated with the wind-down of Icera modem operations.

	Three Months Ended
	July 26,
	2015
	(In millions)
Employee severance and related costs	$	56
Tax subsidy impairment	17
Fixed assets impairment	11
Facilities and related costs	2
Other exit costs	3
Balance at July 26, 2015	$	89

We expect to incur additional restructuring charges to operating expense of $15 million to $25 million for the remainder of fiscal year 2016.  These restructuring activities will impact approximately 5% of our global workforce, and we expect them to be substantially completed by the end of fiscal year 2016.  The following table provides a summary of the restructuring activities and related liabilities recorded in accrued liabilities in our Consolidated Balance Sheets as of July 26, 2015:

	(In millions)
Balance at April 26, 2015	$	—
Restructuring and other charges	89
Cash payments	(39		)
Non-cash charges	(32		)
Balance at July 26, 2015	$	18

The remaining balance of $18 million as of July 26, 2015 is expected to be paid during the third and fourth quarters of fiscal year 2016.