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Table of Contents
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS (Continued)
The following table summarizes the restructuring and asset impairment activity for the 2006 efficiency program during 2009:
The 2006 efficiency program is complete. From the third quarter of 2006 through 2009, we incurred a total of $1.6 billion in
restructuring and asset impairment charges related to this program. These charges included a total of $686 million related to
employee severance and benefit arrangements for 11,300 employees. A substantial majority of these employee actions affected
employees within manufacturing, information technology, and marketing. The restructuring and asset impairment charges also
included $896 million in asset impairment charges.
Share
-Based Compensation
Share-based compensation totaled $917 million in 2010 ($889 million in 2009 and $851 million in 2008). Share-based
compensation was included in cost of sales and operating expenses.
As of December 25, 2010, unrecognized share-based compensation costs and the weighted average periods over which the
costs are expected to be recognized were as follows:
Gains (Losses) on Equity Method Investments, Net
Gains (losses) on equity method investments, net were as follows:
We recognized higher gains on sales, lower impairment charges, and lower equity method losses in 2010 compared to 2009.
During 2010, we recognized a gain of $33 million on the initial public offering of SMART Technologies, Inc., included within
“Equity method losses, net,” and a gain of $148 million on the subsequent sale of our shares in the secondary offering,
included in “Other, net,” resulting in a total gain of $181 million. We also recognized a gain of $91 million on the sale of our
ownership interest in Numonyx B.V., included in “Other, net.” Equity method losses, net also includes Clearwire LLC ($116
million loss in 2010 and $27 million loss in 2009), Numonyx ($42 million gain in 2010, $31 million loss in 2009, and $87
million loss in 2008), and Clearwire Corporation ($184 million loss in 2008). For further information, see “Note 11: Equity
Method and Cost Method Investments” in Part II, Item 8 of this Form 10-K.
36
Employee
Severance and
Asset
(In Millions)
Benefits
Impairments
Total
Accrued restructuring balance as of December 27, 2008
$
$
—
$
57
Additional accruals
8
26
Adjustments
(10
)
—
(
10
)
Cash payments
(65
)
—
(
65
)
Non
-
cash settlements
—
(
8
)
(8
)
Accrued restructuring balance as of December 26, 2009
$
—
$
—
$
—
Unrecognized
Share
-
Based
Weighted
Compensation
Average
(Dollars in Millions)
Costs
Period
Stock options
$
220
1.2 years
Restricted stock units
$
1,210
1.3 years
Stock purchase plan
$
13
1 month
(In Millions)
2010
2009
2008
Equity method losses, net
$
(113
)
$
(131
)
$
(316
)
Impairment charges
(16
)
(42
)
(1,077
)
Other, net
246
26
Total gains (losses) on equity method investments, net
$
117
$
(147
)
$
(1,380
)