11. RESTRUCTURING

In the second quarter of 2013, in response to slow revenue growth due to macroeconomic conditions, we accrued for a targeted restructuring program that is expected to reduce Agilent's total headcount by approximately 450 regular employees, representing approximately 2 percent of our global workforce. The timing and scope of workforce reductions will vary based on local legal requirements. When completed, the restructuring program is expected to result in a reduction in annual cost of sales and operating expenses.

As previously announced, we are streamlining our manufacturing operations. As part of this action, we announced a reduction of approximately 170 positions to reduce our annual cost of sales.

Total headcount reductions from targeted restructuring and manufacturing streamlining will be approximately 600 positions. We expect to complete a majority of these actions by the end of fiscal year 2013.

A summary of total restructuring activity is shown in the table below:



	Workforce
	Reduction
	(in millions)
Balance as of October 31, 2012	$	—
Income statement expense	55
Cash payments	(1		)
Balance as of April 30, 2013	$	54

The restructuring accruals which totaled $54 million at April 30, 2013, are recorded in other accrued liabilities on the consolidated balance sheet. These balances reflect estimated future cash outlays.

A summary of the charges in the consolidated statement of operations resulting from all restructuring activities is shown below:



	Three Months Ended				Six Months Ended
	April 30,				April 30,
	2013		2012		2013		2012
	(in millions)
Cost of products and services	$	18	$	—	$	18	$	—
Research and development	8		—		8		—
Selling, general and administrative	29		—		29		—
Total restructuring and other related costs	$	55	$	—	$	55	$	—