3. RESTRUCTURING PLAN

In July 2014, we announced a restructuring plan to strategically reallocate resources so that we can focus on higher-growth, higher-margin opportunities in the software-driven omni-channel industry. The program is centered on ensuring that our people and processes are aligned with our continued transformation and includes: rationalizing our product portfolio to eliminate overlap and redundancy; taking steps to end-of-life older commodity product lines that are costly to maintain and provide low margins; moving lower productivity services positions to our new centers of excellence due to the positive impact of services innovation; and reducing layers of management and organizing around divisions to improve decision-making, accountability and strategic execution.

As a result of the restructuring plan, the Company recorded total charges of $74 million and $161 million in the years ended December 31, 2015 and 2014, respectively. The Company expects to achieve annualized run-rate savings of approximately $105 million beginning in 2016. Our estimate of restructuring-related opportunities in connection with this restructuring plan for 2016 is approximately $20 million to $25 million.

Charges related to the restructuring plan for the years ended December 31, 2015 and 2014 were:



	For the twelve months ended December 31
In millions	2015		2014
Severance and other employee-related costs
ASC 712 charges included in restructuring-related charges	$	1	$	73
ASC 420 charges included in restructuring-related charges	19		13
Inventory-related charges
Charges included in cost of products	5		9
Charges included in cost of services	7		47
Asset-related charges
External and internal use software impairment charges included in restructuring-related charges	16		7
Impairment of long-lived assets included in restructuring-related charges	13		6
Other than temporary impairment of an investment included in other (expense), net	—		3
Other exit costs
Other exit costs included in restructuring-related charges	13		5
Net income attributable to noncontrolling interests
Charges included in net income attributable to noncontrolling interests	—		(2		)
Total restructuring-related charges	$	74	$	161

In the year ended December 31, 2015, asset-related charges include the write-off of certain capitalized software for projects that have been abandoned as well as an impairment of long-lived assets that are no longer considered strategic and were sold. In the year ended December 31, 2014, asset-related charges include the write-off of certain internal and external use capitalized software for projects where the Company has redirected resources to higher growth opportunities and abandoned certain projects. Additionally, the charges include an other than temporary impairment for an investment that was no longer considered strategic. See Note 13, “Fair Value of Assets and Liabilities,” for additional information.

The results by segment, as disclosed in Note 14, "Segment Information and Concentrations," exclude the impact of these costs, which is consistent with the manner by which management assesses the performance and evaluates the results of each segment.

The following table summarizes the costs recorded in accordance with ASC 420, Exit or Disposal Cost Obligations, and ASC 712, Employers’ Accounting for Postemployment Benefits, and the remaining liabilities as of December 31, 2015 and 2014, which are included in the Consolidated Balance Sheet in other current liabilities.



In millions	2015	2014
Employee Severance and Other Exit Costs
Beginning balance as of January 1	$60	$—
Cost recognized during the period	38	91
Change in estimated payments under ASC 712	(5)	—
Utilization	(71)	(29)
Foreign currency translation adjustments	(2)	(2)
Ending balance as of December 31	$20	$60