Reorganization Of Businesses

3 Months Ended

Mar. 29, 2014

Reorganization Of Businesses [Abstract]

Reorganization of Businesses

2014 Charges

During the three months ended March 29, 2014, the Company recorded net reorganization of business charges of $22 million including $21 million of charges in Other charges, and $1 million of charges in Cost of sales in the Company's condensed consolidated statements of operations. Included in the $22 million were charges of $12 million for employee separation costs, a $6 million impairment charge, and $6 million for exit costs, partially offset by $2 million of reversals for accruals no longer needed.

The following table displays the net charges incurred by segment:



March 29, 2014	Three Months Ended
Government	$	15
Enterprise	7
	$	22

The following table displays a rollforward of the reorganization of businesses accruals established for lease exit costs and employee separation costs from January 1, 2014 to March 29, 2014:



	January 1, 2014		Additional Charges		Adjustments			Amount Used			March 29, 2014
Exit costs	$	6	$	6	$	—		$	(1	)	$	11
Employee separation costs	103		12		(2		)	(39		)	74
	$	109	$	18	$	(2	)	$	(40	)	$	85

Exit Costs

At January 1, 2014, the Company had an accrual of $6 million for exit costs attributable to lease terminations. During the three months ended March 29, 2014, there were $6 million of additional charges and $1 million of cash payments related to the exit of leased facilities. The remaining accrual of $11 million, which is included in Accrued liabilities in the Company’s condensed consolidated balance sheets at March 29, 2014, primarily represents future cash payments for lease termination obligations that are expected to be paid over a number of years.

Employee Separation Costs

At January 1, 2014, the Company had an accrual of $103 million for employee separation costs. The 2014 additional charges of $12 million represent severance costs for approximately 200 employees, all of which were indirect employees. The adjustment of $2 million reflects reversals of accruals no longer needed. The $39 million used reflects cash payments. The remaining accrual of $74 million, which is included in Accrued liabilities in the Company’s condensed consolidated balance sheets at March 29, 2014, is expected to be paid, primarily within one year, to approximately 600 employees, who have either been severed or have been notified of their severance and have begun or will begin receiving payments.

2013 Charges

During the three months ended March 30, 2013, the Company recorded net reorganization of business charges of $11 million, all of which was included in Other charges in the Company's condensed consolidated statements of operations. Included in the aggregate $11 million were charges of $16 million related to employee separation costs, partially offset by $5 million of reversals for accruals no longer needed.

The following table displays the net charges incurred by segment:



March 30, 2013	Three Months Ended
Government	$	7
Enterprise	4
	$	11

- 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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