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2024 Transformation Initiative | 9 Months Ended
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Sep. 30, 2024
Restructuring and Related Activities [Abstract] |
2024 Transformation Initiative | 2024 Transformation Initiative On March 27, 2024, we announced the 2024 Transformation Initiative intended to improve our focus on growth and reduce our structural cost base by reorganizing into three new business segments, making the corporate and regional overhead cost structures more efficient and optimizing our global supply chain. The transformation is expected to impact our organization in all major geographies, and workforce reductions are expected to be in the range of 4% to 5%. Certain actions under the transformation initiative are being finalized for implementation, and accounting for such actions will commence when the actions are authorized for execution. We expect to complete the transition to the new organizational structure by the end of 2024, and the transformation initiative is expected to be completed by the end of 2026, with total costs anticipated to be approximately $1.5 billion pre-tax. Cash costs are expected to be approximately half of that amount, primarily related to workforce reductions. Expected non-cash charges are primarily related to incremental depreciation and asset write-offs, including losses associated with the expected exit of certain markets. The following charges were incurred in connection with the 2024 Transformation Initiative:
|  | Three Months Ended September 30, 2024 |  | Nine Months Ended September 30, 2024 |  |
Cost of products sold: |  |  |  |  |  |  |  |
Charges for workforce reductions |  | $ | 12 |  |  | $ | 46 |  |  |  |  |
Asset write-offs |  | 8 |  |  | 13 |  |  |  |  |
Incremental depreciation |  | 10 |  |  | 13 |  |  |  |  |
Other exit costs |  | 1 |  |  | 4 |  |  |  |  |
Total |  | 31 |  |  | 76 |  |  |  |  |
Marketing, research and general expenses: |  |  |  |  |  |  |  |
Charges for workforce reductions |  | 48 |  |  | 117 |  |  |  |  |
Other exit costs |  | 45 |  |  | 91 |  |  |  |  |
Total |  | 93 |  |  | 208 |  |  |  |  |
Other (income) and expense, net(a) |  | — |  |  | 75 |  |  |  |  |
Total charges |  | 124 |  |  | 359 |  |  |  |  |
Provision for income taxes |  | (18) |  |  | (102) |  |  |  |  |
Net charges |  | $ | 106 |  |  | $ | 257 |  |  |  |  |
(a)Other (Income) and expense, net includes losses recognized for the exit of certain businesses and markets as part of the transformation initiative. See Note 9 for charges by segment. The following summarizes the transformation initiative liabilities activity:
|  | 2024
Transformation initiative liabilities at January 1 |  | $ | — |
Charges for workforce reductions and other cash exit costs |  | 244 |
Cash payments |  | (79) |
Currency and other |  | 3 |
Transformation initiative liabilities at September 30 |  | $ | 168 |
Transformation initiative liabilities of $168 are recorded in Accrued expenses and other current liabilities as of September 30, 2024. The charges related to the transformation initiatives are reflected within Operating Activities of our condensed consolidated statements of cash flows.

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- 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://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4.e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479823/420-10-S99-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482017/420-10-50-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482017/420-10-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/420/tableOfContent Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482017/420-10-50-1 + Details
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