XML 23 R11.htm IDEA: XBRL DOCUMENT
v3.19.2

Restructuring Actions and Exit Activities | 6 Months Ended
--- | ---
Jun. 30, 2019
Restructuring Actions and Exit Activities | NOTE 5. Restructuring Actions and Exit Activities 2019 Restructuring Actions: ​ During the second quarter of 2019, in light of a slower than expected 2019, management approved and committed to undertake certain restructuring actions. These actions impacted approximately 2,000 positions worldwide, including attrition. The Company recorded a second quarter 2019 pre-tax charge of $148 million. The restructuring charges were recorded in the income statement as follows: ​
​ | ​ | ​ | ​ | ​
(Millions) |  | Second Quarter 2019 |
Cost of sales | ​ | $ | 18 | ​
Selling, general and administrative expenses | ​ |  | 89 | ​
Research, development and related expenses | ​ |  | 5 | ​
Total operating income impact | ​ | ​ | 112 | ​
Other expense (income), net | ​ | ​ | 36 | ​
Total income before taxes impact | ​ | $ | 148 | ​
​ The operating income impact of these restructuring charges are summarized by business segment as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Second Quarter 2019 |
(Millions) |  | Employee-Related |  | Asset-Related |  | Total |
Safety and Industrial | ​ | $ | 11 | ​ | $ | — | ​ | $ | 11 | ​
Transportation and Electronics | ​ | ​ | 8 | ​ | ​ | — | ​ | ​ | 8 | ​
Health Care | ​ | ​ | 6 | ​ | ​ | — | ​ | ​ | 6 | ​
Consumer | ​ | ​ | 5 | ​ | ​ | — | ​ | ​ | 5 | ​
Corporate and Unallocated | ​ |  | 42 | ​ |  | 40 | ​ |  | 82 | ​
Total Operating Expense | ​ | $ | 72 | ​ | $ | 40 | ​ | $ | 112 | ​
​ The 2019 actions included a voluntary early retirement incentive (further discussed in Note 11), the charge for which is included in other expense (income) net above. ​ Restructuring actions, including cash and non-cash impacts, follow: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
(Millions) |  | Employee-Related |  | Asset-Related |  | Total |
Expense incurred in the second quarter of 2019 | ​ | $ | 108 | ​ | $ | 40 | ​ | $ | 148 | ​
Non-cash changes | ​ | ​ | (36) | ​ | ​ | (40) | ​ | ​ | (76) | ​
Cash payments | ​ |  | (6) | ​ |  | — | ​ |  | (6) | ​
Accrued restructuring action balances as of June 30, 2019 | ​ | $ | 66 | ​ | $ | — | ​ | $ | 66 | ​
​ Remaining activities related to this restructuring are expected to be completed largely through the first quarter of 2020. ​ 2018 Restructuring Actions: ​ During the second quarter and fourth quarter of 2018, management approved and committed to undertake certain restructuring actions related to addressing corporate functional costs following the Communication Markets Division divestiture. These actions affected approximately 1,200 positions worldwide and resulted in a second quarter 2018 pre-tax charge of $105 million and a fourth quarter pre-tax charge of $22 million, net of adjustments for reductions in cost estimates of $10 million, essentially all within Corporate and Unallocated. The restructuring charges were recorded in the income statement as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
(Millions) |  | Second Quarter 2018 | ​ | Fourth Quarter 2018 | ​
Cost of sales | ​ | $ | 12 | ​ | $ | 15 | ​
Selling, general and administrative expenses | ​ |  | 89 | ​ | ​ | 16 | ​
Research, development and related expenses | ​ |  | 4 | ​ | ​ | 1 | ​
Total | ​ | $ | 105 | ​ | $ | 32 | ​
​ Restructuring actions, including cash and non-cash impacts, follow: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
(Millions) |  | Employee-Related |  | Asset-Related |  | Total |
Expense incurred in the second quarter and fourth quarter of 2018 | ​ | $ | 125 | ​ | $ | 12 | ​ | $ | 137 | ​
Non-cash changes | ​ | ​ | — | ​ | ​ | (12) | ​ | ​ | (12) | ​
Cash payments | ​ | ​ | (24) | ​ | ​ | — | ​ | ​ | (24) | ​
Adjustments | ​ |  | (17) | ​ |  | — | ​ |  | (17) | ​
Accrued restructuring action balances as of December 31, 2018 | ​ | $ | 84 | ​ | $ | — | ​ | $ | 84 | ​
Cash payments | ​ |  | (57) | ​ |  | — | ​ |  | (57) | ​
Adjustments | ​ | ​ | (2) | ​ | ​ | — | ​ | ​ | (2) | ​
Accrued restructuring action balances as of June 30, 2019 | ​ | $ | 25 | ​ | $ | — | ​ | $ | 25 | ​
​ Remaining activities related to this restructuring are expected to be largely completed through 2019.

X
- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI http://asc.fasb.org/topic&trid=2175745 + Details
Name: | us-gaap_RestructuringAndRelatedActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration