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2024 Transformation Initiative
 3 Months Ended
Mar. 31, 2025
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 realigning our internal operating and management structure to streamline our global supply chain and improve the efficiency of our corporate and regional overhead cost structures. 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 2024 Transformation Initiative are being finalized for implementation, and accounting for such actions will commence when the actions are authorized for execution.
The 2024 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. Through March 31, 2025, cumulative pre-tax charges for the 2024 Transformation Initiative were $534 ($416 after-tax).
The following charges were incurred in connection with the 2024 Transformation Initiative:
Three Months Ended March 31
20252024
Cost of products sold:
Charges for workforce reductions$14 $— 
Incremental depreciation32 — 
Other exit costs7 — 
Total53 — 
Marketing, research and general expenses:
Charges for workforce reductions2 23 
Other exit costs20 22 
Total22 45 
Nonoperating expense2 — 
Total charges(a)
77 45 
Provision for income taxes— (11)
Net charges$77 $34 
(a)We do not include 2024 Transformation Initiative charges within our segment operating results. Total impact of these charges to the NA, IPC and IFP segments were $27, $20 and $14, respectively, for the three months ended March 31, 2025, and $38, $3 and $4, respectively, for the three months ended March 31, 2024, with the residual relating to Corporate & Other. See further discussion around our segment operating results in Note 7.
The following summarizes the 2024 Transformation Initiative liabilities activity:
2025
2024 Transformation Initiative liabilities as of January 1$130 
Charges for workforce reductions and other cash exit costs43 
Cash payments(60)
Currency and other(5)
2024 Transformation Initiative liabilities as of March 31$108 
2024 Transformation Initiative liabilities as of March 31, 2025 of $108 are recorded in Accrued expenses and other current liabilities. The charges related to the 2024 Transformation Initiative are reflected within Operating Activities of our condensed consolidated statements of cash flows.