diff --git a/sdk_container/src/third_party/coreos-overlay/sys-kernel/README b/sdk_container/src/third_party/coreos-overlay/sys-kernel/README
new file mode 100644
index 0000000000..db59690bb5
--- /dev/null
+++ b/sdk_container/src/third_party/coreos-overlay/sys-kernel/README
@@ -0,0 +1,24 @@
+The kernel is provided in two parts: coreos-sources and coreos-kernel.
+
+coreos-sources is a traditional Gentoo kernel source ebuild, which
+installs to ${ROOT}/usr/src/linux-${PV}. No extra revision or name is
+added since, like the upstream vanilla-sources, we don't ship patches.
+
+coreos-kernel uses the installed sources to build a kernel image and all
+modules. The kernel config is searched for in the files directory based
+on the ebuild version and revision. For example version 3.12.4-r2:
+ - amd64_defconfig-3.12.4-r2
+ - amd64_defconfig-3.12.4
+ - amd64_defconfig-3.12
+ - amd64_defconfig
+
+Currently our dracut based initrd (bootengine) gets built directly into
+the kernel image, including all kernel modules. (go go modular kernels!)
+This reason for this screwy scheme never came to pass and should be
+fixed eventually. The current grub bootloader already includes logic for
+initrds but the old configure_bootloaders and coreos-postinst scripts
+need to be updated in order to support existing installs.
+
+The coreos-firmware package is a magic version of the upstream
+linux-firmware ebuild which scans the modules installed by coreos-kernel
+and only installs files modules declare as required.
diff --git a/sdk_container/src/third_party/coreos-overlay/sys-kernel/coreos-kernel/README b/sdk_container/src/third_party/coreos-overlay/sys-kernel/coreos-kernel/README
deleted file mode 100644
index 6f5dba5e36..0000000000
--- a/sdk_container/src/third_party/coreos-overlay/sys-kernel/coreos-kernel/README
+++ /dev/null
@@ -1,42 +0,0 @@
-The kernel tree is managed in git and is just the latest stable kernel.
-
-To bump to a new version do the following:
-
-1) Setup a checkout of github.com/coreos/linux
-
-2) Edit the .git/config to look like this:
-
-```
-[core]
-	repositoryformatversion = 0
-	filemode = true
-	bare = false
-	logallrefupdates = true
-[remote "github"]
-	url = git@github.com:coreos/linux.git
-	fetch = +refs/heads/*:refs/remotes/github/*
-[branch "master"]
-	remote = github
-	merge = refs/heads/master
-[remote "linus"]
-	url = git://git.kernel.org/pub/scm/linux/kernel/git/torvalds/linux-2.6.git
-	fetch = +refs/heads/*:refs/remotes/linus/*
-[remote "stable"]
-	url = https://kernel.googlesource.com/pub/scm/linux/kernel/git/stable/linux-stable
-	fetch = +refs/heads/*:refs/remotes/stable/*
-```
-
-3) git fetch --all
-
-3) git checkout -b 'coreos/v3.10.10'
-
-4) git reset --hard v3.10.10
-
-5a) apply any coreos-specific patches that are not yet upstream (i.e. 9p patch)
-    that happened to be in a previous kernel branch.
-
-6) git push github coreos/v3.10.10
-
-7) git checkout coreos/master && git reset --hard coreos/v3.10.10 && git push -f github coreos/master
-
-Then you can bump the hash in the ebuild and move it to the new version here.