Restructuring Charges and Asset Impairments

6 Months Ended

Jun. 30, 2013

Restructuring and Related Activities [Abstract]

Restructuring Charges and Asset Impairments

Restructuring Charges and Asset Impairments

In order to enhance our responsiveness to changing market conditions, further streamline our business operations, reduce our cost structure and create long-term flexibility to invest in growth, we have identified certain actions that we believe will provide both process and operational improvements. We anticipate that these actions will result in restructuring charges in the range of $75 to $125 million and will be recognized as specific initiatives are approved and implemented.

During the quarter, we began implementing certain actions, consisting primarily of workforce reductions, and recorded restructuring charges of $23 million in connection with the above actions. Restructuring charges for the period also include the reversal of $3 million for changes in reserves under prior restructuring programs.

Activity in our restructuring reserves for the six months ended June 30, 2013 was as follows:

	Severance and benefits costs			Pension and Retiree Medical			Other exit costs			Total
Balance at January 1, 2013	$	62,540		$	—		$	5,218		$	67,758
Expenses, net	17,672			1,964			319			19,955
Cash payments	(25,155		)	—			(2,100		)	(27,255		)
Non-cash charges	—			(1,964		)	—			(1,964		)
Balance at June 30, 2013	$	55,057		$	—		$	3,437		$	58,494

The majority of the remaining restructuring payments are expected to be paid through 2014; however, due to certain international labor laws and long-term lease agreements, some payments will extend beyond 2014. We expect that cash flows from operations will be sufficient to fund these payments.