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Restructuring and Other Charges | 12 Months Ended
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Jul. 28, 2012
Restructuring and Other Charges | 5. Restructuring and Other Charges In fiscal 2011, the Company initiated a number of key targeted actions to address several areas in its business model. These actions were intended to simplify and focus the Company’s organization and operating model, align the Company’s cost structure given transitions in the marketplace, divest or exit underperforming operations, and deliver value to the Company’s shareholders. The Company is taking these actions to align its business based on its five foundational priorities: leadership in its core business (routing, switching, and associated services), which includes comprehensive security and mobility solutions; collaboration; data center virtualization and cloud; video; and architectures for business transformation. Pursuant to the restructuring that the Company announced in July 2011, the Company has incurred cumulative charges of approximately $1.0 billion (included as part of the charges discussed below). The Company expects that the total pretax charges pursuant to these restructuring actions will be approximately $1.1 billion, and it expects the remaining charges to be incurred primarily in the first quarter of fiscal 2013. The following table summarizes the activities related to the restructuring and other charges pursuant to the Company’s July 2011 announcement related to the realignment and restructuring of the Company’s business as well as certain consumer product lines as announced during April 2011 (in millions):
|  | Voluntary Early Retirement Program |  |  | Employee Severance |  |  | Goodwill and Intangible Assets |  |  | Other |  |  | Total |
Gross charges in fiscal 2011 |  | $ | 453 |  |  | $ | 247 |  |  | $ | 71 |  |  | $ | 28 |  |  | $ | 799 |
Cash payments |  |  | (436 | ) |  |  | (13 | ) |  |  | — |  |  |  | — |  |  |  | (449 | )
Non-cash items |  |  | — |  |  |  | — |  |  |  | (71 | ) |  |  | (17 | ) |  |  | (88 | )
Balance as of July 30, 2011 |  |  | 17 |  |  |  | 234 |  |  |  | — |  |  |  | 11 |  |  |  | 262 |
Gross charges in fiscal 2012 |  |  | — |  |  |  | 299 |  |  |  | — |  |  |  | 54 |  |  |  | 353 |
Change in estimate related to fiscal 2011 charges |  |  | — |  |  |  | (49 | ) |  |  | — |  |  |  | — |  |  |  | (49 | )
Cash payments |  |  | (17 | ) |  |  | (401 | ) |  |  | — |  |  |  | (18 | ) |  |  | (436 | )
Non-cash items |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (20 | ) |  |  | (20 | )
Balance as of July 28, 2012 |  | $ | — |  |  | $ | 83 |  |  | $ | — |  |  | $ | 27 |  |  | $ | 110 |
During fiscal 2012, the Company incurred net restructuring charges within operating expenses of $304 million, consisting of $250 million of employee severance charges and $54 million of other restructuring charges. Other charges incurred during fiscal 2012 were primarily for the consolidation of excess facilities, as well as an incremental charge related to the sale of the Company’s Juarez, Mexico manufacturing operations, which sale was completed in the first quarter of fiscal 2012. During fiscal 2011, the Company incurred a charge of approximately $63 million related to a reduction to goodwill as a result of the sale of its Juarez manufacturing operations and also recorded an intangible asset impairment of $8 million in connection with the restructuring of the Company’s consumer business related to the exit of the Flip Video camera product line. See Note 4. Other charges incurred during fiscal 2011 were primarily related to the consolidation of excess facilities and other charges associated with the realignment and restructuring of the Company’s consumer business. During fiscal 2011, the Company also recorded charges of approximately $124 million, primarily related to inventory and supply chain charges in connection with restructuring related to the Company’s consumer product lines, most notably exiting the Flip Video camera product line, which were recorded in cost of sales and not included in the preceding table.

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- 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. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB TOPIC 5.P.4) -URI http://asc.fasb.org/extlink&oid=6394695&loc=d3e140904-122747 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 146 -Paragraph 20 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 5 -Section P -Subsection 3, 4 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 5.P.3) -URI http://asc.fasb.org/extlink&oid=6394695&loc=d3e140864-122747 + Details
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