Restructuring and Other Charges

9 Months Ended

Oct. 25, 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. 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 in the second quarter of fiscal year 2016.

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 14 of these Notes to Condensed Consolidated Financial Statements for a discussion regarding our reporting segments.

Our operating expenses for the three and nine months ended October 25, 2015 included $8 million and $97 million, respectively, 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		Nine Months Ended
	October 25,		October 25,
	2015		2015
	(In millions)
Employee severance and related costs	$	2	$	58
Tax subsidy impairment	—		17
Fixed assets impairment	3		14
Facilities and related costs	2		4
Other exit costs	1		4
Restructuring and other charges	$	8	$	97

We expect to incur additional restructuring charges to operating expense of $25 million to $35 million in the fourth quarter 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 on our Consolidated Balance Sheets as of October 25, 2015:

	Three Months Ended			Nine Months Ended
	October 25,			October 25,
	2015			2015
	(In millions)
Balance at beginning of period	$	18		$	—
Restructuring and other charges	8			97
Cash payments	(7		)	(46		)
Non-cash adjustments	(4		)	(36		)
Balance at end of period	$	15		$	15

The remaining balance of $15 million as of October 25, 2015 is expected to be paid during the fourth quarter of fiscal year 2016.