Item 2.05 Costs Associated with Exit or Disposal Activities.

On April 4, 2012, the Company filed a Form 8-K to disclose that it had begun notifying approximately 2,000 employees whose employment would be terminated as part of an overall plan to reshape the Company for the future. At that time, the Company estimated that it would incur pre-tax cash charges of $125 million to $145 million for severance pay and related cash expenditures and that it also may incur facilities, lease, and other charges. The Company was then unable to estimate the total charges it expected to incur in connection with this action.

The Company now estimates that it will incur total pre-tax charges of approximately $170 million to $200 million in connection with this action. That range includes the updated estimate of $120 million to $140 million of pre-tax cash charges for severance pay and related cash expenditures. In addition, total pre-tax charges include $50 million to $60 million of facilities, lease, and other charges, net of credits related to stock-based compensation expense.

The Company recognized $127 million of these total charges during the quarter ended June 30, 2012 and expects to recognize the remaining charges through June 30, 2013. Approximately $40 million to $70 million of the remaining charges are expected to result in future cash expenditures.

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