Restructuring Charges and Asset Impairments

9 Months Ended

Sep. 30, 2014

Restructuring and Related Activities [Abstract]

Restructuring Charges and Asset Impairments

Activity in our restructuring reserves for the nine months ended September 30, 2014 and 2013 was as follows:



	Severance and benefits costs			Pension and retiree medical			Other exit costs			Asset impairments			Total
Balance at January 1, 2014	$	58,558		$	—		8,014			$	—		$	66,572
Expenses, net ⁽¹⁾	14,083			2,180			4,435			874			21,572
Cash payments	(35,984		)	—			(6,167		)	—			(42,151		)
Non-cash charges	—			(2,180		)	—			(874		)	(3,054		)
Balance at September 30, 2014	$	36,657		$	—		$	6,282		$	—		$	42,939

	Severance and benefits costs			Pension and retiree medical			Other exit costs			Asset impairments			Total
Balance at January 1, 2013	$	62,540		$	—		5,218			$	—		$	67,758
Expenses, net ⁽¹⁾	25,705			1,964			1,528			26,574			55,771
Cash payments	(38,125		)	—			(3,228		)	—			(41,353		)
Non-cash charges	—			(1,964		)	—			(26,574		)	(28,538		)
Balance at September 30, 2013	$	50,120		$	—		$	3,518		$	—		$	53,638

(1) Includes net restructuring charges for both continuing and discontinued operations.

The majority of the remaining restructuring reserves are expected to be paid over the next 12 to 24 months. Due to certain international labor laws and long-term lease agreements, some payments will extend beyond 24 months. We expect to fund these payments from cash flows from operations.

Restructuring charges and asset impairments for the three and nine months ended September 30, 2013 included a non-cash impairment charge of $26 million to write-down the carrying value of our corporate headquarters building and certain surrounding parcels of land to their estimated fair value. During the third quarter of 2013, we entered into an agreement to sell the building and land and the estimated fair value was determined based on the selling price less the costs to sell. These inputs were classified as Level 3.

- 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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