Reorganization of Business

3 Months Ended

Apr. 04, 2015

Restructuring and Related Activities [Abstract]

Reorganization of Business

2015 Charges

During the three months ended April 4, 2015, the Company recorded net reorganization of business charges of $14 million including $12 million of charges in Other charges and $2 million of charges in Cost of sales in the Company's condensed consolidated statements of operations. Included in the $14 million were charges of $10 million for employee separation costs and $4 million for exit costs.

The following table displays the net charges incurred by segment:



April 4, 2015	Three Months Ended
Products	$	10
Services	4
	$	14

The following table displays a rollforward of the reorganization of business accruals established for lease exit costs and employee separation costs from January 1, 2015 to April 4, 2015, including those related to discontinued operations which were maintained by the Company after the sale of the Enterprise business:



	January 1, 2015		Additional Charges		Adjustments		Amount Used			April 4, 2015
Exit costs	$	—	$	4	$	1	$	—		$	5
Employee separation costs	57		10		—		(28		)	39
	$	57	$	14	$	1	$	(28	)	$	44

Exit Costs

At January 1, 2015, the Company had no accruals for exit costs. During the three months ended April 4, 2015, there were $4 million of additional charges related to the exit of leased facilities. The remaining accrual of $5 million, which is included in Accrued liabilities in the Company’s condensed consolidated balance sheets at April 4, 2015, primarily represents future cash payments for lease obligations that are expected to be paid over a number of years.

Employee Separation Costs

At January 1, 2015, the Company had an accrual of $57 million for employee separation costs. The 2015 additional charges of $10 million represent severance costs for approximately 100 employees. The $28 million used reflects cash payments to severed employees. The remaining accrual of $39 million, which is included in Accrued liabilities in the Company’s condensed consolidated balance sheets at April 4, 2015, is expected to be paid, primarily within one year, to approximately 450 employees, who have either been severed or have been notified of their severance and have begun or will begin receiving payments.

2014 Charges

During the three months ended March 29, 2014, the Company recorded net reorganization of business charges of $10 million, including $9 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 aggregate $10 million were charges of $8 million related to employee separation costs and $3 million related to exit costs, partially offset by $1 million of reversals for accruals no longer needed.

The following table displays the net charges incurred by segment:



March 29, 2014	Three Months Ended
Products	$	6
Services	4
	$	10

- 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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