Restructuring Program

12 Months Ended

Dec. 31, 2023

Restructuring and Related Activities [Abstract]

Note 8. Restructuring Program

On May 6, 2014, our Board of Directors approved a $3.5 billion 2014-2018 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 the $5.7 billion program consisted of approximately $4.1 billion of restructuring program costs ($3.1 billion cash costs and $1.0 billion non-cash costs) and up to $1.6 billion of capital expenditures. On September 6, 2018, our Board of Directors approved an extension of the restructuring program through 2022, an increase of $1.3 billion in the program charges and an increase of $700 million in capital expenditures. On October 21, 2021, our Board of Directors approved an extension of the restructuring program through 2023, and on July 25, 2023, our Board of Directors approved a further extension of the restructuring program through December 31, 2024. The total $7.7 billion program now consists of $5.4 billion of program charges ($4.1 billion of cash costs and $1.3 billion of non-cash costs) and total capital expenditures of $2.3 billion to be incurred over the life of the program. The current restructuring program, as increased and extended by these actions, is now called the Simplify to Grow Program.

The primary objective of the Simplify to Grow Program is to reduce our operating cost structure in both our supply chain and overhead costs. The program covers severance as well as asset disposals and other manufacturing and procurement-related one-time costs. Since inception, we have incurred total restructuring and related implementation charges of $5.3 billion related to the Simplify to Grow Program. We expect to incur the remainder of the program charges by year-end 2024.

Restructuring Costs

The Simplify to Grow Program liability activity for the years ended December 31, 2023 and 2022 was:


	Severance and related costs		Asset Write-downs and Other (1)		Total
	(in millions)
Liability Balance, January 1, 2022	$	211	$	—	$	211
Charges (2)	31		5		36
Cash spent (3)	(69)		—		(69)
Non-cash settlements/adjustments (4)	(3)		(5)		(8)
Currency	(6)		—		(6)
Liability Balance, December 31, 2022	$	164	$	—	$	164
Charges (2)	89		17		106
Cash spent (3)	(67)		—		(67)
Non-cash settlements/adjustments (4)	—		(17)		(17)
Currency	5		—		5
Liability balance, December 31, 2023 (5)	$	191	$	—	$	191

(1)Includes gains as a result of assets sold which are included in the restructuring program.

(2)We recorded restructuring charges of $106 million in 2023, $36 million in 2022 and $154 million in 2021 within asset impairment and exit costs and benefit plan non-service income.

(3)We spent $67 million in 2023 and $69 million in 2022 in cash severance and related costs.

(4)We recognized non-cash asset write-downs (including accelerated depreciation and asset impairments) and other non-cash adjustments, including any gains on sale of restructuring program assets, which totaled a charge of $17 million in 2023 and $8 million in 2022.

(5)At December 31, 2023, $102 million of our net restructuring liability was recorded within other current liabilities and $89 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 Simplify to Grow 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 $25 million in

2023, $87 million in 2022 and $167 million in 2021. 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 2023, 2022 and 2021, and since inception of the Simplify to Grow Program, we recorded the following restructuring and implementation costs within segment operating income and earnings before income taxes:


	Latin America		AMEA		Europe		North America		Corporate		Total
	(in millions)
For the Year Ended December 31, 2023
Restructuring Costs	$	(3)	$	7	$	79	$	19	$	4	$	106
Implementation Costs	1		—		12		8		4		25
Total	$	(2)	$	7	$	91	$	27	$	8	$	131
For the Year Ended December 31, 2022
Restructuring Costs	$	(6)	$	13	$	16	$	12	$	1	$	36
Implementation Costs	7		6		25		37		12		87
Total	$	1	$	19	$	41	$	49	$	13	$	123
For the Year Ended December 31, 2021
Restructuring Costs	$	7	$	(17)	$	4	$	153	$	7	$	154
Implementation Costs	9		10		33		97		18		167
Total	$	16	$	(7)	$	37	$	250	$	25	$	321
Total Project (Inception to Date)
Restructuring Costs	$	545	$	561	$	1,242	$	676	$	154	$	3,178
Implementation Costs	304		245		581		598		372		2,100
Total	$	849	$	806	$	1,823	$	1,274	$	526	$	5,278