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Restructuring | 3 Months Ended
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Mar. 31, 2019
Restructuring and Related Activities [Abstract] |
Restructuring | RESTRUCTURING On April 17, 2018, the Company announced plans to implement a series of actions across its Global Supply Chain that are intended to focus resources and increase investments in the critical capabilities, technologies and solutions necessary to manufacture and supply its product portfolio, enhance agility and drive growth. The Global Supply Chain actions will include expanding the use of strategic collaborations and bolstering initiatives to reduce complexity, improve cost-competitiveness, enhance capabilities and optimize the Supply Chain network. For additional details on the global supply chain restructuring strategic collaborations see Note 10 to the Consolidated Financial Statements. In the fiscal first quarter of 2019, the Company recorded a pre-tax charge of $90 million, of which $23 million was included in cost of products sold and $31 million was included in other (income) expense. Total project costs of $0.3 billion have been recorded since the restructuring was announced. See the following table for additional details on the restructuring program. In total, the Company expects these actions to generate approximately $0.6 billion to $0.8 billion in annual pre-tax cost savings that will be substantially delivered by 2022. The Company expects to record pre-tax restructuring charges of approximately $1.9 billion to $2.3 billion, over the 4 to 5 year period of this activity. These costs are associated with network optimizations, exit costs and accelerated depreciation and amortization. The following table summarizes the severance related reserves and the associated spending through the fiscal first quarter of 2019:
(Dollars in Millions) | Severance | Asset Write-offs | Other** | Total
Reserve balance, December 30, 2018 | $ | 194 |  | — |  | 48 |  | 242 |
Current year activity: |  |  |  |
Charges | — |  | 23 |  | 67 |  | 90 |
Cash payments | (1 | ) | — |  | (108 | ) | (109 | )
Settled non cash | — |  | (23 | ) | — |  | (23 | )
Reserve balance, March 31, 2019* | $ | 193 |  | — |  | 7 |  | 200 |
*Cash outlays for severance are expected to be substantially paid out over the next 2 years in accordance with the Company's plans and local laws. **Other includes project expense such as salaries for employees supporting the initiative and consulting expenses.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI http://asc.fasb.org/topic&trid=2175745 + Details
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