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2014-2018 Restructuring Program | 3 Months Ended
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Mar. 31, 2017
2014-2018 Restructuring Program | Note 6. 2014-2018 Restructuring Program On May 6, 2014, our Board of Directors approved a $3.5 billion restructuring program, comprised of approximately $2.5 billion in cash costs and $1 billion in non-cash costs (the “2014-2018 Restructuring Program”) and up to $2.2 billion of capital expenditures. On August 31, 2016, our Board of Directors approved a reallocation within the $5.7 billion total cost of the programs of $600 million of previously approved capital expenditures to be spent on restructuring program cash costs. There was no change to the total $5.7 billion cost of the program and no change to the total $4.7 billion of cash outlays. The $5.7 billion total cost of the program is now comprised of approximately $4.1 billion of restructuring program costs ($3.1 billion cash costs and $1 billion non-cash costs) and up to $1.6 billion of capital expenditures. The primary objective of the 2014-2018 Restructuring Program is to reduce our operating cost structure in both our supply chain and overhead costs. The program is intended primarily to cover severance as well as asset disposals and other manufacturing-related one-time costs. Since inception, we have incurred total restructuring and related implementation charges of $2.7 billion related to the 2014-2018 Restructuring Program. We have incurred the majority of the program’s charges through the first quarter of 2017 and we expect to complete the program by year-end 2018. Restructuring Costs: We recorded restructuring charges of $157 million in the three months ended March 31, 2017 and $139 million in the three months ended March 31, 2016 within asset impairment and exit costs. The 2014-2018 Restructuring Program liability activity for the three months ended March 31, 2017 was:
|  | Severance and |  |  | Asset |  |  |  |
|  | related costs |  |  | Write-downs |  |  | Total |
|  | (in millions) |
Liability balance, January 1, 2017 |  | $ | 464 |  |  | $ | – |  |  | $ | 464 |
Charges |  |  | 86 |  |  |  | 71 |  |  |  | 157 |
Cash spent |  |  | (84 | ) |  |  | – |  |  |  | (84 | )
Non-cash settlements/adjustments |  |  | (1 | ) |  |  | (71 | ) |  |  | (72 | )
Currency |  |  | 8 |  |  |  | – |  |  |  | 8 |
Liability balance, March 31, 2017 |  | $ | 473 |  |  | $ | – |  |  | $ | 473 |
We spent $84 million in the three months ended March 31, 2017 and $74 million in the three months ended March 31, 2016 in cash severance and related costs. We also recognized non-cash asset write-downs (including accelerated depreciation and asset impairments) and other non-cash adjustments totaling $72 million in the three months ended March 31, 2017 and $52 million in the three months ended March 31, 2016. At March 31, 2017, $398 million of our net restructuring liability was recorded within other current liabilities and $75 million was recorded within other long-term liabilities. Implementation Costs: Implementation costs are directly attributable to restructuring activities; however, they do not qualify for special accounting treatment as exit or disposal activities. We believe the disclosure of implementation costs provides readers of our financial statements with more information on the total costs of our 2014-2018 Restructuring Program. Implementation costs primarily relate to reorganizing our operations and facilities in connection with our supply chain reinvention program and other identified productivity and cost saving initiatives. The costs include incremental expenses related to the closure of facilities, costs to terminate certain contracts and the simplification of our information systems. Within our continuing results of operations, we recorded implementation costs of $54 million in the three months ended March 31, 2017 and $98 million in the three months ended March 31, 2016. We recorded these costs within cost of sales and general corporate expense within selling, general and administrative expenses. Restructuring and Implementation Costs in Operating Income: During the three months ended March 31, 2017 and 2016 and since inception of the 2014-2018 Restructuring Program, we recorded restructuring and implementation costs within operating income by segment (as revised to reflect our current segment structure) as follows:
|  | Latin |  |  |  |  |  |  |  |  | North |  |  |  |  |  |  |
|  | America |  |  | AMEA |  |  | Europe |  |  | America (1) |  |  | Corporate (2) |  |  | Total |
|  | (in millions) |
For the Three Months Ended March 31, 2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Restructuring Costs |  | $ | 24 |  |  | $ | 27 |  |  | $ | 69 |  |  | $ | 38 |  |  | $ | (1 | ) |  | $ | 157 |
Implementation Costs |  |  | 9 |  |  |  | 8 |  |  |  | 12 |  |  |  | 13 |  |  |  | 12 |  |  |  | 54 |
Total |  | $ | 33 |  |  | $ | 35 |  |  | $ | 81 |  |  | $ | 51 |  |  | $ | 11 |  |  | $ | 211 |
For the Three Months Ended March 31, 2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Restructuring Costs |  | $ | 12 |  |  | $ | 29 |  |  | $ | 67 |  |  | $ | 31 |  |  | $ | – |  |  | $ | 139 |
Implementation Costs |  |  | 7 |  |  |  | 8 |  |  |  | 30 |  |  |  | 38 |  |  |  | 15 |  |  |  | 98 |
Total |  | $ | 19 |  |  | $ | 37 |  |  | $ | 97 |  |  | $ | 69 |  |  | $ | 15 |  |  | $ | 237 |
Total Project 2014-2017 (3) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Restructuring Costs |  | $ | 361 |  |  | $ | 334 |  |  | $ | 718 |  |  | $ | 392 |  |  | $ | 51 |  |  | $ | 1,856 |
Implementation Costs |  |  | 118 |  |  |  | 94 |  |  |  | 216 |  |  |  | 208 |  |  |  | 188 |  |  |  | 824 |
Total |  | $ | 479 |  |  | $ | 428 |  |  | $ | 934 |  |  | $ | 600 |  |  | $ | 239 |  |  | $ | 2,680 |
| (1) | During 2017 and 2016, our North America region implementation costs included incremental costs that we incurred related to re-negotiating collective bargaining agreements that expired at the end of February 2016 for eight U.S. facilities and related to executing business continuity plans for the North America business.
| (2) | Includes adjustment for rounding.
| (3) | Includes all charges recorded since program inception on May 6, 2014 through March 31, 2017.

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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/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4) -URI http://asc.fasb.org/extlink&oid=27011515&loc=d3e140904-122747 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 5.P.3) -URI http://asc.fasb.org/extlink&oid=27011515&loc=d3e140864-122747 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 + Details
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