Reorganization of Business |
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Jul. 04, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reorganization of Businesses | Reorganization of Business 2015 Charges During the three months ended July 4, 2015, the Company recorded net reorganization of business charges of $16 million including $13 million of charges in Other charges, and $3 million of charges in Cost of sales in the Company's condensed consolidated statements of operations. The $16 million of charges were all related to employee separation costs. During the six months ended July 4, 2015, the Company recorded net reorganization of business charges of $30 million including $26 million of charges in Other charges and $4 million of charges in Cost of sales in the Company's condensed consolidated statements of operations. Included in the $30 million were charges of $26 million for employee separation costs and $4 million for exit costs. The following table displays the net charges incurred by segment:
The following table displays a rollforward of the reorganization of business accruals established for lease exit costs and employee separation costs from January 1, 2015 to July 4, 2015, including those related to discontinued operations which were maintained by the Company after the sale of the Enterprise business:
Exit Costs At January 1, 2015, the Company had no accruals for exit costs. During the six months ended July 4, 2015, there were $4 million of additional charges 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 July 4, 2015, primarily represents future cash payments for lease obligations that are expected to be paid over a number of years. Employee Separation Costs At January 1, 2015, the Company had an accrual of $57 million for employee separation costs. The 2015 additional charges of $26 million represent severance costs for approximately 300 employees. The $40 million used reflects cash payments to severed employees. The remaining accrual of $43 million, which is included in Accrued liabilities in the Company’s condensed consolidated balance sheets at July 4, 2015, is expected to be paid, primarily within one year, to approximately 400 employees, who have either been severed or have been notified of their severance and have begun or will begin receiving payments. 2014 Charges During the three months ended June 28, 2014, the Company recorded net reorganization of business charges of $28 million, including $25 million of charges in Other charges and $3 million of charges in Cost of sales in the Company's condensed consolidated statements of operations. The $28 million of charges were all related to employee separation costs. During the six months ended June 28, 2014, the Company recorded net reorganization of business charges of $38 million, including $34 million of charges in Other charges and $4 million of charges in Cost of sales in the Company's condensed consolidated statements of operations. Included in the aggregate $38 million were charges of $34 million related to employee separation costs and $4 million related to exit costs. The following table displays the net charges incurred by segment:
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