Restructuring and Exit Costs

During fiscal year 2014, the Company recorded restructuring charges of $24 million comprised primarily of charges related to employee termination costs associated with a reduction in force during fiscal year 2014. During fiscal years 2013 and 2012, the Company recorded restructuring and other charges of $2 million and $4 million, respectively, mainly comprised of post-employment costs associated with a number of small restructuring plans. The Company's significant restructuring plans are described below. All restructuring charges are reported in Restructuring and other, net on the Consolidated Statements of Operations.

Ang Mo Kio (AMK) Plan. In August 2009, the Company announced that it will close its AMK manufacturing operations in Singapore. Operations at this facility had ceased as of the third quarter of fiscal year 2011. The hard drive manufacturing operations have been relocated to other existing Seagate facilities and the Company's Asia International Headquarters remains in Singapore. This closure and relocation is part of the Company's ongoing focus on cost efficiencies in all areas of its business and is intended to facilitate leveraging manufacturing investments across fewer sites. The Company currently estimates total restructuring charges of approximately $50 million, all in cash, including approximately $42 million for post-employment benefits, approximately $6 million for the relocation of manufacturing equipment, and approximately $2 million for other plant closure and relocation costs. From the inception of the plan the Company has recorded $48 million in restructuring charges. During fiscal year 2014, there were no cash payments or other settlements under the AMK Plan and no restructuring charges related to the plan during fiscal year 2014. Payments under the AMK plan are expected to continue through fiscal year 2016.

2014 Plan. During fiscal year 2014, the Company recorded employee termination costs of $16 million and made cash payments of $16 million associated with a reduction in the work force. The 2014 Plan was substantially completed during the fiscal year ended June 27, 2014.

Other Restructuring and Exit Costs. Through June 27, 2014, the Company has recorded other restructuring charges of approximately $124 million, net of adjustments, related to the previously announced closures of its Pittsburgh, Pennsylvania and Milpitas, California facilities, and also has recorded certain exit costs aggregating to $269 million related to its acquisition of Maxtor. These plans are currently expected to result in total charges of approximately $400 million. During fiscal year 2014, the Company incurred restructuring charges of $4 million in post-employment benefits, $2 million in facility lease obligations and $2 million in other exit costs primarily related to the closures of its Pittsburgh, Pennsylvania and Milpitas, California facilities and to other smaller restructuring plans. In addition, recorded cash payments and other settlements of $11 million related to these plans during fiscal year 2014. Restructuring activity relating to the Milpitas, California facility was completed during the fiscal year ended June 28, 2013. Payment of these exit costs relating to the Pittsburgh, Pennsylvania facility and other smaller restructuring plans are expected to continue through the end of fiscal year 2023.

The following table summarizes the Company's restructuring activities under all the Company’s active restructuring plans for fiscal years 2014, 2013 and 2012:



(Dollars in millions)	Post- Employment Benefits			Operating Leases			Other Exit Costs			Total
All Restructuring Activities
Accrual balances at July 1, 2011	$	8		$	31		$	—		$	39
Restructuring charges	3			—			2			5
Cash payments	(8		)	(8		)	(2		)	(18		)
Adjustments	—			(1		)	—			(1		)
Accrual balances at June 29, 2012	3			22			—			25
Restructuring charges	1			1			1			3
Cash payments	(2		)	(7		)	(1		)	(10		)
Adjustments	—			(1		)	—			(1		)
Accrual balances at June 28, 2013	2			15			—			17
Restructuring charges	18			3			2			23
Cash payments	(20		)	(5		)	(2		)	(27		)
Adjustments	2			(1		)	—			1
Accrual balances at June 27, 2014	$	2		$	12		$	—		$	14

Of the accrued restructuring balance of approximately $14 million at June 27, 2014, $7 million is included in Accrued expenses and $7 million is included in Other non-current liabilities in the Company's Consolidated Balance Sheet. Of the accrued restructuring balance of approximately $17 million at June 28, 2013, $6 million is included in Accrued expenses and $11 million is included in Other non-current liabilities in the Company's Consolidated Balance Sheet.