Item 2.05 Costs Associated with Exit or Disposal Activities
On October 30, 2008, the Company announced certain cost-reduction initiatives, including planned workforce reductions. In the Company's Form 10-Q filed on October 30, 2008, the Company disclosed the first set of specific plans related to these initiatives. This included the termination of approximately 1,500 employees, primarily in the Mobile Devices segment, and will result in pre-tax charges of $104 million in the fourth quarter of 2008. The Company also indicated that additional plans would be approved in the fourth quarter of 2008 in connection with the cost-reduction initiatives.
On December 23, 2008, the Company approved certain additional plans relating to these cost-reduction initiatives. These additional actions, plus other actions approved since October 30, 2008, relate to the termination of approximately 400 employees, resulting in additional pre-tax severance charges of approximately $25 million in the fourth quarter of 2008. These additional actions also include other exit-related activities, including the termination of leases and other contractual commitments and asset impairments, resulting in additional pre-tax charges of approximately $60 million in the fourth quarter of 2008. Together with the actions announced in the Company's Form 10-Q filed on October 30, 2008, these additional actions bring the total pre-tax charges in the fourth quarter of 2008 related to previously announced cost-reduction initiatives to approximately $189 million. Cash payments associated with these actions have occurred in the fourth quarter of 2008 and will occur in 2009. All of the Company's business segments, as well as various corporate functions, are impacted by these plans.

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