Intel 2014 Annual Report Download - page 43

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)
Restructuring and asset impairment charges for each period were as follows:
(In Millions) 2014 2013 2012
Employee severance and benefit arrangements .................................. $ 265 $ 201 $ —
Asset impairments and other restructuring charges ............................... 30 39 —
Total restructuring and asset impairment charges $ 295 $ 240 $ —
Restructuring and asset impairment activity for each period was as follows:
(In Millions)
Employee
Severance and
Benefits
Asset
Impairments
and Other Total
Accrued restructuring balance as of December 29, 2012 ............... $—$—$—
Additional accruals ................................................ 195 39 234
Adjustments ..................................................... 6 — 6
Cash payments .................................................. (18) — (18)
Non-cash settlements ............................................. — (39) (39)
Accrued restructuring balance as of December 28, 2013 ............... 183 — 183
Additional accruals ................................................ 252 31 283
Adjustments ..................................................... 13 (1) 12
Cash payments .................................................. (327) (6) (333)
Non-cash settlements ............................................. — (13) (13)
Accrued restructuring balance as of December 27, 2014 ............... $ 121 $ 11 $ 132
We recorded the additional accruals and adjustments as restructuring and asset impairment charges in the consolidated
statements of income and within the “all other” operating segments category. A majority of the accrued restructuring balance as of
December 27, 2014 is expected to be paid within the next 12 months and was recorded as a current liability within accrued
compensation and benefits on the consolidated balance sheets.
Restructuring actions that were approved in 2014 impacted approximately 3,700 employees. Since Q3 2013, we have incurred a
total of $535 million in restructuring and asset impairment charges. These charges included a total of $466 million related to
employee severance and benefit arrangements for approximately 7,600 employees, and $69 million in asset impairment charges
and other restructuring charges.
We estimate that employee severance and benefit charges to date will result in gross annual savings of approximately
$600 million, which will be realized within R&D, cost of sales, and MG&A. We began to realize these savings in Q4 2013 and
expect to fully realize these savings beginning in Q2 2015.
Share-Based Compensation
Share-based compensation totaled $1.1 billion in 2014 ($1.1 billion in 2013 and $1.1 billion in 2012). Share-based compensation
was included in cost of sales and operating expenses.
As of December 27, 2014, unrecognized share-based compensation costs and the weighted average periods over which the
costs are expected to be recognized were as follows:
(Dollars in Millions)
Unrecognized
Share-Based
Compensation
Costs
Weighted
Average
Period
Restricted stock units ........................................................... $ 1,795 1.3 years
Stock options ................................................................. $ 34 11 months
As of December 27, 2014, there was $13 million in unrecognized share-based compensation costs related to rights to acquire
shares of common stock under our stock purchase plan. We expect to recognize those costs over a period of approximately one
and a half months.
38