Penny Corp. manufactures telecommunication equipment and has been profitable each year for the past ten years. During 2014 the company saw its core market decline sharply when a competitor introduced a significant new product technology. In response to the decline in business Penny Corp. announced a major restructuring of its operations. The restructuring plan which would be implemented in 2010 would involve the following changes (all of the charges are material):

a.	Severance payments to reduce work force	$ 9 million
b.	Write-down of inventory	$13 million
c.	Penalty payment for termination of lease on manufacturing facility	$ 6 million
d.	Write-down of equipment associated with manufacturing facility	$12 million
	Total 2010 restructuring charge	$40 million

Penny Corp. has never previously restructured its operations and believes that it can return to profitability within two years based on its current research and development activity.

Required:

Penny Corp.'s restructuring charges cover a wide range of different cost categories; identify those that entail a cash payment and those that do not require a cash payment. For those charges not requiring a cash payment how would they be treated in the Statement of Cash Flows?