Restructuring charges

12 Months Ended

Dec. 31, 2012

Note 9. Restructuring charges

Subsequent to our acquisition of Motorola in May 2012, we initiated a restructuring plan primarily in our Mobile segment to reduce workforce, reorganize management structure, close, consolidate and dispose certain facilities, as well as simplify our mobile product portfolio. These changes are designed to return Motorola’s Mobile segment to profitability. For the year ended December 31, 2012, activities related to restructuring charges were summarized as below (in millions):


	Severance and Related			Other Charges			Total
Balance as of December 31, 2011	$	0		$	0		$	0
Charges⁽¹⁾		572			59			631
Cash payments		(189	)		(8	)		(197	)
Non-cash items⁽²⁾		(145	)		(36	)		(181	)

Balance as of December 31, 2012	$	238		$	15		$	253

⁽¹⁾	Includes restructuring charges related to Home of $55 million.

⁽²⁾	Non-cash items were primarily related to RSUs, stock options and asset impairments.

For the year ended December 31, 2012, restructuring charges were included in costs and expenses as follows (in millions):


	Year Ended December 31, 2012
	Severance and Related		Other Charges		Total
Cost of revenues—Motorola Mobile	$	88	$	41	$	129
Research and development		195		5		200
Sales and marketing		123		8		131
General and administrative		114		2		116

Total charges	$	520	$	56	$	576

Restructuring charges related to Home of $55 million were included in net loss from discontinued operations in the Consolidated Statements of Income.

We continue to evaluate our plans and further restructuring actions may occur which may cause us to incur additional restructuring charges, some of which may be significant.

- 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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