Reorganization Of Businesses

3 Months Ended

Mar. 30, 2013

Reorganization Of Businesses [Abstract]

Reorganization of Businesses

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 $11 million were charges of $16 million for 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

The following table displays a rollforward of the reorganization of businesses accruals established for lease exit costs and employee separation costs from January 1, 2013 to March 30, 2013:



	Accruals at January 1, 2013		Additional Charges		Adjustments			Amount Used			Accruals at March 30, 2013
Exit costs	$	4	$	—	$	—		$	—		$	4
Employee separation costs	31		16		(5		)	(15		)	27
	$	35	$	16	$	(5	)	$	(15	)	$	31

Exit Costs

At January 1, 2013, the Company had an accrual of $4 million for exit costs attributable to lease terminations. During the three months ended March 30, 2013, there were no additional charges or cash payments related to the exit of leased facilities. The remaining accrual of $4 million, which is included in Accrued liabilities in the Company’s condensed consolidated balance sheets at March 30, 2013, 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, 2013, the Company had an accrual of $31 million for employee separation costs, representing the severance costs for: (i) severed employees who began receiving payments in 2012, and (ii) approximately 200 employees who began receiving payments in 2013. The 2013 additional charges of $16 million represent severance costs for approximately 200 additional employees, of which 100 were indirect employees and 100 were direct employees. The adjustment of $5 million reflects reversals of accruals no longer needed. The $15 million used reflects cash payments. The remaining accrual of $27 million, which is included in Accrued liabilities in the Company’s condensed consolidated balance sheets at March 30, 2013, is expected to be paid, generally, 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.

2012 Charges

During the three months ended March 31, 2012, the Company recorded net reorganization of business charges of $9 million, within Other charges in the Company’s condensed consolidated statements of operations. Included in the $9 million were charges of $12 million related to the separation of approximately 200 indirect employees, and $1 million for building impairment charges, partially offset by $4 million of reversals for accruals no longer needed.

The following table displays the net charges incurred by segment:



March 31, 2012	Three Months Ended
Government	$	7
Enterprise	2
	$	9

- 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.

+ References+ Details