Restructuring Charges

9 Months Ended

Jan. 25, 2013

During the three and nine months ended January 25, 2013 and January 27, 2012, the Company did not incur any restructuring charges.

Fiscal Year 2012 Initiative

In the fourth quarter of fiscal year 2012, the Company recorded a $118 million restructuring charge, which consisted of employee termination costs of $66 million, asset write-downs of $9 million, contract termination costs of $30 million, and other related costs of $13 million. The fiscal year 2012 initiative was designed to reduce general, administrative, and indirect distribution costs in certain organizations within the Company while prioritizing investment in research and development, and sales and marketing in those organizations within the Company where faster growth is anticipated, such as emerging markets and new therapies.

In connection with the fiscal year 2012 initiative, as of the end of the fourth quarter of fiscal year 2012, the Company had identified approximately 1,000 positions for elimination to be achieved through involuntary and voluntary separation. Of the 1,000 positions identified in April 2012, approximately 600 positions have been eliminated as of January 25, 2013. The fiscal year 2012 initiative is scheduled to be substantially complete by the end of the fourth quarter of fiscal year 2013.

A summary of the activity related to the fiscal year 2012 initiative is presented below:



	Fiscal Year 2012 Initiative
(in millions)	Employee Termination Costs			Asset Write- downs			Other Costs			Total
Balance as of April 29, 2011	$	—		$	—		$	—		$	—
Restructuring charges	66			9			43			118
Payments/write-downs	(2		)	(9		)	(16		)	(27		)
Balance as of April 27, 2012	$	64		$	—		$	27		$	91
Payments/write-downs	(26		)	—			(17		)	(43		)
Balance as of July 27, 2012	$	38		$	—		$	10		$	48
Payments/write-downs	(17		)	—			(4		)	(21		)
Balance as of October 26, 2012	$	21		$	—		$	6		$	27
Payments/write-downs	(5		)	—			(1		)	(6		)
Balance as of January 25, 2013	$	16		$	—		$	5		$	21

- 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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