Reformulating Balance Sheet and Income Statement Items for Restructuring Intel Corporation reported the following information pertaining to its recent restructuring program.

Use this information to answer the requirements.

$ millions Dec. 27, 2014 Dec 26, 2015 Dec 31, 2016 Employee severance and pension settlement . . . . . . . . . $265 $332 $1,794 Asset impairment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 30 $ 22 $ 92 Total restructuring expense . . . . . . . . . . . . . . . . . . . . . . . $295 $354 $1,886 Required We are analyzing the past five years of Intel’s performance. After a review of Intel’s financial statements, we decide to reformulate the company’s income statement and balance sheet for its restructuring results. Intel’s tax rate is 35%. To do this, we allocate employee severance and pension settlements over the prior three years (including 2016) and allocate any asset impairment over the prior five years

(including 2016)—see Analyst Adjustments 6.3 for guidance.

a. For the income statement effects related to employee severance and pension settlement, identify with numbers the adjustments for each of the three years 2014-2016 for:

i. Employee termination costs ii. Wages expense iii. Tax expense iv. Net income

b. For the balance sheet effects related to employee severance and pension settlement, identify with numbers the adjustments for each of the three years 2014-2016 for:

i. Wages payable ii. Deferred tax iii. Retained earnings

c. For the income statement effects related to asset impairment, identify with numbers the adjustments for each of the five years 2012-2016 for:

i. Asset impairment ii. Depreciation iii. Tax expense iv. Net income

d. For the balance sheet effects related to asset impairment, identify with numbers the adjustments for each of the five years 2012-2016 for:

i. Accumulated depreciation ii. Deferred tax iii. Retained earnings