Restructuring charges

6 Months Ended

Jun. 30, 2012

Restructuring and Related Activities [Abstract]

Restructuring actions related to the acquisition of National are discussed in Note 2 and are reflected on the Acquisition charges line of our Consolidated statements of income.

2011 actions

Beginning in the fourth quarter of 2011, we recognized restructuring charges associated with the announced plans to close two older semiconductor manufacturing facilities in Houston, Texas, and Hiji, Japan, by mid-2013. The total charge for these closures is estimated at $215 million, of which $135 million has been recognized and reported in Other for segment reporting purposes through June 30, 2012. The Restructuring charges of $23 million recognized in the first half of 2012 consist of $9 million of accelerated depreciation and $14 million of other exit-related costs; $13 million of restructuring charges was recognized in the second quarter of 2012 consisting of $4 million of accelerated depreciation and $9 million of other exit-related costs. Of the estimated $215 million total cost, about $135 million will be for severance and related benefits, about $30 million will be for accelerated depreciation of facility assets and about $50 million will be for other exit-related costs.

Previous actions

In 2008 and 2009, we announced actions that eliminated about 3,900 jobs. These actions were completed in 2009.

The table below reflects the changes in accrued restructuring balances associated with these actions:



	2011 Actions						Previous Actions
	Severance and Benefits			Other Charges			Severance and Benefits			Other Charges			Total
Remaining accrual at December 31, 2011	$	96		$	—		$	13		$	7		$	116
Restructuring charges	2			21			—			—			23
Non-cash items (a)	3			(10		)	—			—			(7		)
Payments	(4		)	(8		)	(5		)	(1		)	(18		)
Remaining accrual at June 30, 2012	$	97		$	3		$	8		$	6		$	114

(a) Reflects charges for curtailment and special termination benefits relating to the postretirement benefit plans and accelerated depreciation.

The accrual balances above are primarily a component of Accrued expenses and other liabilities on our Consolidated balance sheets.

- 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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