Restructuring Charges (Tables)

12 Months Ended

Dec. 31, 2012

Summary of Changes in Position of Restructuring Liabilities by Segment

The following table presents the changes in the position of restructuring liabilities in 2012 by segment:


	Balance January 1, 2012		Additions		Utilized			Released			Other changes⁽¹⁾			Balance December 31, 2012

HPMS		59		27		(4	)		(2	)		—			80
SP		4		17		(3	)		(1	)		1			18
Manufacturing Operations		20		4		(6	)		—			(9	)		9
Corporate and Other		16		55		(16	)		(1	)		9			63

		99		103		(29	)		(4	)		1			170

(1)	Other changes primarily related to translation differences and internal transfers

The following table presents the changes in the position of restructuring liabilities in 2011 by segment:


	Balance January 1, 2011		Additions		Utilized			Released			Other changes⁽¹⁾			Balance December 31, 2011

HPMS		24		43		(3	)		(2	)		(3	)		59
SP		1		4		(1	)		—			—			4
Manufacturing Operations		44		11		(30	)		(3	)		(2	)		20
Corporate and Other		28		8		(20	)		(3	)		3			16

		97		66		(54	)		(8	)		(2	)		99

(1)	Other changes primarily related to translation differences.

Components of Restructuring Charges Less Releases Recorded in Liabilities

The components of restructuring charges less releases recorded in the liabilities in 2012, 2011 and 2010 are as follows:


	2012			2011			2010
Personnel lay-off costs		101			66			5
Impairment of assets		—			—			2
Lease and Contract Terminations		2			—			—
Release of provisions/accruals		(4	)		(8	)		(40	)

Net restructuring charges		99			58			(33	)

Summary of Significant Activity and Components of Restructuring Obligations

The following table summarizes the significant activity within, and components of, the Company’s restructuring obligations:


	Personnel lay-off costs			Lease and Contract Terminations			Total
Balance at December 31, 2010		87			10			97
Expense		58			—			58
Utilized ¹⁾		(45	)		(9	)		(54	)
Other changes ²⁾		(2	)		—			(2	)

Balance at December 31, 2011		98			1			99
Expense		97			2			99
Utilized ¹⁾		(29	)		—			(29	)
Other changes ²⁾		1						1

Balance at December 31, 2012		167			3			170

¹⁾	Represents cash payments.

²⁾	Other changes primarily related to translation differences.

Restructuring Charges Less Releases Recorded in Liabilities Per Line Item in Statement of Operations

The restructuring charges less releases recorded in operating income are included in the following line items in the statement of operations:


	2012		2011		2010
Cost of revenue		18		24		(14	)
Selling, general and administrative		59		15		(10	)
Research & development		22		19		(9	)

Net restructuring charges		99		58		(33	)

Restructuring Related Costs Excluding Product Transfers

In addition, restructuring related costs (excluding product transfers) of $12 million were directly charged to operating income in 2012 (2011: $32 million; 2010: $53 million), and included in the following line items:


	2012			2011		2010
Cost of revenue		5			13		26
Selling, general and administrative		8			16		30
Research & development		—			3		2
Other income and expenses		(1	)		—		(5	)

		12			32		53

Restructuring Cost by Segment

The details by segment were as follows:


	2012			2011		2010
HPMS		(1	)		2		—
SP		3			2		4
Manufacturing Operations		3			4		23
Corporate and Other		7			24		27
Divested Home activities		—			—		(1	)

		12			32		53