v2.4.1.9
Restructuring charges/other
 12 Months Ended
Dec. 31, 2014
Restructuring and Related Activities [Abstract]  
Restructuring charges/other
Restructuring charges/other

Restructuring charges/other is comprised of the following components:
 
For Years Ended December 31,
 
2014
 
2013
 
2012
Restructuring charges by action:
 
 
 
 
 
2013 actions
 
 
 
 
 
Severance and benefits cost (a)
$
16

 
$
49

 
$
—

Other exit costs
10

 
—

 
—

 
26

 
49

 
—

Prior actions
 
 
 
 
 
Severance and benefits cost (a)
(6
)
 
36

 
251

Accelerated depreciation
1

 
11

 
21

Other exit costs (a)
(1
)
 
30

 
128

 
(6
)
 
77

 
400

Total restructuring charges
20

 
126

 
400

 
 
 
 
 
 
Other:
 
 
 
 
 
Gains on sales of assets
(75
)
 
—

 
—

Gain on technology transfer
—

 
(315
)
 
—

Gain on transfer of Japan substitutional pension
—

 
—

 
(144
)
Other
4

 
—

 
8

Restructuring charges/other
$
(51
)
 
$
(189
)
 
$
264



(a) Includes changes in estimates.
Restructuring charges/other are recognized in Other for segment reporting purposes. Restructuring actions related to the acquisition of National are discussed in Note 3 and the associated costs are reflected in the Acquisition charges line of our Consolidated Statements of Income.

2013 actions

We announced in January 2014 cost-saving actions in Embedded Processing and in Japan to reduce expenses and focus our investments on markets with greater potential for sustainable growth and strong long-term returns. We expect the actions to be completed by mid-2015. Cost reductions include the elimination of about 1,100 jobs worldwide. Through December 31, 2014, we have recognized $75 million in cumulative restructuring charges, with no further material charges expected. As of December 31, 2014, $43 million has been paid to terminated employees for severance and benefits.

Prior actions

In 2012, we announced a restructuring of our Wireless business to reduce expenses and focus our investments on markets with greater potential for sustainable growth and strong long-term returns. This action was completed in 2013. We recognized $383 million in cumulative restructuring charges, including a $90 million impairment of goodwill. As of December 31, 2014, $247 million has been paid to terminated employees for severance and benefits.

Also in 2012, we announced closure of two older semiconductor manufacturing facilities in Houston, Texas, and Hiji, Japan. We recognized $200 million in cumulative restructuring charges related to these closures, completing both by the end of 2013. As of December 31, 2014, $103 million has been paid to terminated employees for severance and benefits.

As of December 31, 2014 and 2013, we carried immaterial liabilities related to actions commenced in 2008 and 2009. The related expense was recognized in periods prior to 2011.

The table below reflects the changes in accrued restructuring balances associated with these actions:
 
 
2013 Actions
 
Prior Actions
 
 
 
 
Severance
and Benefits
 
Other
Charges
 
Severance
and Benefits
 
Other
Charges
 
Total
Accrual at December 31, 2011
 
$
—

 
$
—

 
$
109

 
$
7

 
$
116

Restructuring charges (a)
 
—

 
—

 
251

 
149

 
400

Non-cash items (b)
 
—

 
—

 
3

 
(124
)
 
(121
)
Payments
 
—

 
—

 
(23
)
 
(23
)
 
(46
)
Remaining accrual at December 31, 2012
 
—

 
—

 
340

 
9

 
349

 
 
 
 
 
 
 
 
 
 
 
Restructuring charges (a)
 
49

 
—

 
36

 
41

 
126

Non-cash items (b)
 
—

 
—

 
(5
)
 
(17
)
 
(22
)
Payments
 
—

 
—

 
(266
)
 
(26
)
 
(292
)
Remaining accrual at December 31, 2013
 
49

 
—

 
105

 
7

 
161

 
 
 
 
 
 
 
 
 
 
 
Restructuring charges (a)
 
16

 
10

 
(6
)
 
—

 
20

Payments
 
(43
)
 
(1
)
 
(73
)
 
(7
)
 
(124
)
Remaining accrual at December 31, 2014
 
$
22

 
$
9

 
$
26

 
$
—

 
$
57



(a) Includes changes in estimates.
(b) Reflects charges for goodwill impairment, stock-based compensation, impacts of postretirement benefit plans and accelerated depreciation.

The accrual balances above are primarily reported as a component of either Accrued expenses and other liabilities or Deferred credits and other liabilities on our Consolidated Balance Sheets, depending on the expected timing of payment.

Other

Gains on sales of assets

We recognized $75 million of gains on sales of assets in 2014. This consisted of $30 million associated with the sale of our site in Nice, France; $28 million associated with the sales of real estate in Santa Clara, California; and $17 million of asset sales associated primarily with the closure of our Houston, Texas, and Hiji, Japan, manufacturing facilities.

Gain on technology transfer

During 2013, we recognized a gain of $315 million on the transfer of wireless connectivity technology to a customer. This technology was associated with the former Wireless business.

Gain on transfer of Japan substitutional pension

During 2012, we transferred the obligations and assets of the substitutional portion of our Japan pension plan to the government of Japan, resulting in a net gain of $144 million. See Note 11 for additional details.