XML 35 R15.htm IDEA: XBRL DOCUMENT
v3.10.0.1

2014-2018 Restructuring Program | 6 Months Ended
--- | ---
Jun. 30, 2018
Restructuring and Related Activities [Abstract] |
2014-2018 Restructuring Program | Note 7. 2014-2018 Restructuring Program On May 6, 2014, our Board of Directors approved a $3.5 billion restructuring program and up to $2.2 billion of capital expenditures. On August 31, 2016, our Board of Directors approved a $600 million reallocation between restructuring program cash costs and capital expenditures so that now the $5.7 billion program consists 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 $3.6 billion related to the 2014-2018 Restructuring Program. We expect to incur the full $4.1 billion of program charges by year-end 2018. Restructuring Costs: We recorded restructuring charges of $112 million in the second quarter of 2018 and $148 million in the second quarter of 2017 and $164 million in the first six months of 2018 and $305 million in the first six months of 2017 within asset impairment and exit costs or benefit plan non-service income. The 2014-2018 Restructuring Program liability activity for the six months ended June 30, 2018 was:
| Severance and related costs |  | Asset Write-downs |  | Total
| (in millions)
Liability balance, January 1, 2018 | $ | 464 |  |  | $ | — |  |  | $ | 464 |
Charges | 125 |  |  | 39 |  |  | 164 |
Cash spent | (161 | ) |  | — |  |  | (161 | )
Non-cash settlements/adjustments | — |  |  | (39 | ) |  | (39 | )
Currency | (24 | ) |  | — |  |  | (24 | )
Liability balance, June 30, 2018 | $ | 404 |  |  | $ | — |  |  | $ | 404 |
We spent $82 million in the second quarter of 2018 and $78 million in the second quarter of 2017 and $161 million in the first six months of 2018 and $162 million in the first six months of 2017 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 $14 million in the second quarter of 2018 and $54 million in the second quarter of 2017 and $39 million in the first six months of 2018 and $126 million in the first six months of 2017. At June 30, 2018, $323 million of our net restructuring liability was recorded within other current liabilities and $81 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 $70 million in the second quarter of 2018 and $63 million in the second quarter of 2017 and $132 million in the first six months of 2018 and $117 million in the first six months of 2017. We recorded these costs within cost of sales and general corporate expense within selling, general and administrative expenses. Restructuring and Implementation Costs: During the three and six months ended June 30, 2018 and June 30, 2017, and since inception of the 2014-2018 Restructuring Program, we recorded the following restructuring and implementation costs within segment operating income and earnings before income taxes:
| Latin America |  | AMEA |  | Europe |  | North America (1) |  | Corporate (2) |  | Total
| (in millions)
For the Three Months Ended June 30, 2018 |  |  |  |  |  |  |  |  |  |  |
Restructuring Costs | $ | 12 |  |  | $ | 17 |  |  | $ | 63 |  |  | $ | 14 |  |  | $ | 6 |  |  | $ | 112 |
Implementation Costs | 15 |  |  | 8 |  |  | 13 |  |  | 21 |  |  | 13 |  |  | 70 |
Total | $ | 27 |  |  | $ | 25 |  |  | $ | 76 |  |  | $ | 35 |  |  | $ | 19 |  |  | $ | 182 |
For the Three Months Ended June 30, 2017 |  |  |  |  |  |  |  |  |  |  |
Restructuring Costs | $ | 8 |  |  | $ | 48 |  |  | $ | 50 |  |  | $ | 26 |  |  | $ | 16 |  |  | $ | 148 |
Implementation Costs | 10 |  |  | 10 |  |  | 19 |  |  | 13 |  |  | 11 |  |  | 63 |
Total | $ | 18 |  |  | $ | 58 |  |  | $ | 69 |  |  | $ | 39 |  |  | $ | 27 |  |  | $ | 211 |
For the Six Months Ended June 30, 2018 |  |  |  |  |  |  |  |  |  |  |
Restructuring Costs | $ | 36 |  |  | $ | 23 |  |  | $ | 70 |  |  | $ | 26 |  |  | $ | 9 |  |  | $ | 164 |
Implementation Costs | 30 |  |  | 20 |  |  | 29 |  |  | 38 |  |  | 15 |  |  | 132 |
Total | $ | 66 |  |  | $ | 43 |  |  | $ | 99 |  |  | $ | 64 |  |  | $ | 24 |  |  | $ | 296 |
For the Six Months Ended June 30, 2017 |  |  |  |  |  |  |  |  |  |  |
Restructuring Costs | $ | 31 |  |  | $ | 73 |  |  | $ | 119 |  |  | $ | 65 |  |  | $ | 17 |  |  | $ | 305 |
Implementation Costs | 20 |  |  | 20 |  |  | 31 |  |  | 25 |  |  | 21 |  |  | 117 |
Total | $ | 51 |  |  | $ | 93 |  |  | $ | 150 |  |  | $ | 90 |  |  | $ | 38 |  |  | $ | 422 |
Total Project 2014-2018 (3) |  |  |  |  |  |  |  |  |  |  |
Restructuring Costs | $ | 466 |  |  | $ | 471 |  |  | $ | 909 |  |  | $ | 445 |  |  | $ | 107 |  |  | $ | 2,398 |
Implementation Costs | 182 |  |  | 149 |  |  | 301 |  |  | 291 |  |  | 236 |  |  | 1,159 |
Total | $ | 648 |  |  | $ | 620 |  |  | $ | 1,210 |  |  | $ | 736 |  |  | $ | 343 |  |  | $ | 3,557 |
(1) | During 2018 and 2017, our North America region implementation costs included incremental costs that we incurred related to renegotiating collective bargaining agreements that expired in February 2016 for eight U.S. facilities and related to executing business continuity plans for the North America business.
(2) | During the first quarter of 2018, in connection with adopting a new pension cost classification accounting standard, we reclassified certain of our benefit plan component costs other than service costs out of operating income into a new line, benefit plan non-service income, on our condensed consolidated statements of earnings. As such, we have recast our historical operating income, segment operating income and restructuring and implementation costs by segment to reflect this reclassification, which had no impact to earnings before income taxes or net earnings. The benefit plan non-service income amounts no longer recorded in segment operating income are included within the Corporate column in the table above. The Corporate column also includes minor adjustments for rounding.
(3) | Includes all charges recorded since program inception on May 6, 2014 through June 30, 2018.

X
- References No definition available. + Details
Name: | us-gaap_RestructuringAndRelatedActivitiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

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://www.xbrl.org/2003/role/presentationRef -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