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Restructuring and Related Implementation Charges | 12 Months Ended
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Dec. 31, 2019
Restructuring and Related Activities [Abstract] |
Restructuring and Related Implementation Charges | Restructuring and Related Implementation Charges In the fourth quarter of 2012, the Company commenced a restructuring program (the “Global Growth and Efficiency Program”), which was expanded in 2014, expanded and extended in each of 2015 and 2017, and expanded again in 2019 to take advantage of additional savings opportunities near the end of the program. The program concluded on December 31, 2019. Initiatives under the Global Growth and Efficiency Program fit within the program’s three focus areas of expanding commercial hubs, extending shared business services and streamlining global functions and optimizing the global supply chain and facilities. At the conclusion of the Global Growth and Efficiency Program, total pretax charges were $1,854 ($1,380 aftertax). The Company incurred pretax charges for 2019 of $132 ($102 aftertax). Total pretax charges resulting from the Global Growth and Efficiency Program were comprised of the following categories: Employee-Related Costs, including severance, pension and other termination benefits (40%); asset-related costs, primarily Incremental Depreciation and Asset Impairments (10%); and Other charges, which include contract termination costs, consisting primarily of related implementation charges resulting directly from exit activities (30%) and the implementation of new strategies (20%). Over the course of the Global Growth and Efficiency Program, approximately 80% of the charges resulted in cash expenditures. Total pretax charges related to initiatives undertaken in North America (15%), Europe (20%), Latin America (5%), Asia Pacific (5%), Africa/Eurasia (5%), Hill’s Pet Nutrition (10%) and Corporate (40%) included substantially all of the costs related to the implementation of new strategies, noted above, on a global basis. The Global Growth and Efficiency Program contributed a net reduction of approximately 4,400 positions from the Company’s global employee workforce. For the years ended December 31, 2019, 2018 and 2017, restructuring and related implementation charges are reflected in the Consolidated Statements of Income as follows:
| 2019 |  | 2018 |  | 2017
Cost of sales | $ | 8 |  |  | $ | 31 |  |  | $ | 75 |
Selling, general and administrative expenses | 60 |  |  | 33 |  |  | 86 |
Other (income) expense, net | 57 |  |  | 88 |  |  | 152 |
Non-service related postretirement costs | 7 |  |  | 9 |  |  | 20 |
Total Global Growth and Efficiency Program charges, pretax | $ | 132 |  |  | $ | 161 |  |  | $ | 333 |
Total Global Growth and Efficiency Program charges, aftertax | $ | 102 |  |  | $ | 125 |  |  | $ | 246 |
Restructuring and related implementation charges in the preceding table are recorded in the Corporate segment as these initiatives are predominantly centrally directed and controlled and are not included in internal measures of segment operating performance. Total charges incurred for the Global Growth and Efficiency Program related to initiatives undertaken by the following reportable operating segments:
|  |  |  |  |  |  | Total Program
| 2019 |  | 2018 |  | 2017 |  | Charges
North America | 4 | % |  | 18 | % |  | 23 | % |  | 17 | %
Latin America | 12 | % |  | 10 | % |  | 2 | % |  | 5 | %
Europe | 4 | % |  | (2 | )% |  | 21 | % |  | 19 | %
Asia Pacific | 6 | % |  | 13 | % |  | 5 | % |  | 4 | %
Africa/Eurasia | (1 | )% |  | 5 | % |  | 3 | % |  | 5 | %
Hill’s Pet Nutrition | 2 | % |  | 19 | % |  | 6 | % |  | 8 | %
Corporate | 73 | % |  | 37 | % |  | 40 | % |  | 42 | %
Total | 100 | % |  | 100 | % |  | 100 | % |  | 100 | %
Over the course of the Global Growth and Efficiency Program, the Company incurred total pretax charges of $1,854 ($1,380 aftertax) in connection with the implementation of various projects as follows:
| Total Program Charges
| as of December 31, 2019
Employee-Related Costs | $ | 706 |
Incremental Depreciation | 128 |
Asset Impairments | 58 |
Other | 962 |
Total | $ | 1,854 |
Over the course of the Global Growth and Efficiency Program, the majority of the costs incurred related to the following projects: the implementation of the Company’s overall hubbing strategy; the consolidation of facilities; the extension of shared business services and streamlining of global functions; the closing of the Morristown, New Jersey personal care facility; the simplification and streamlining of the Company’s research and development capabilities and oral care supply chain, both in Europe; redesigning the European commercial organization; restructuring how the Company will provide future retirement benefits to substantially all of the U.S.-based employees participating in the Company’s defined benefit retirement plan by shifting them to the Company’s defined contribution plan; and the implementation of a Corporate efficiencies program. The following table summarizes the activity for the restructuring and related implementation charges, in the respective periods, discussed above and the related accruals:
|  | Employee-Related Costs |  | Incremental Depreciation |  | Asset Impairments |  | Other |  | Total
Balance at January 1, 2017 |  | $ | 56 |  |  | $ | — |  |  | $ | — |  |  | $ | 125 |  |  | $ | 181 |
Charges |  | 163 |  |  | 10 |  |  | 9 |  |  | 151 |  |  | 333 |
Cash payments |  | (74 | ) |  | — |  |  | — |  |  | (170 | ) |  | (244 | )
Charges against assets |  | (21 | ) |  | (10 | ) |  | (9 | ) |  | — |  |  | (40 | )
Foreign exchange |  | 3 |  |  | — |  |  | — |  |  | 1 |  |  | 4 |
Other |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Balance at December 31, 2017 |  | $ | 127 |  |  | $ | — |  |  | $ | — |  |  | $ | 107 |  |  | $ | 234 |
Charges |  | 53 |  |  | 2 |  |  | 16 |  |  | 90 |  |  | 161 |
Cash payments |  | (107 | ) |  | — |  |  | — |  |  | (60 | ) |  | (167 | )
Charges against assets |  | (9 | ) |  | (2 | ) |  | (16 | ) |  | — |  |  | (27 | )
Foreign exchange |  | (4 | ) |  | — |  |  | — |  |  | — |  |  | (4 | )
Other |  | — |  |  | — |  |  | — |  |  | 5 |  |  | 5 |
Balance at December 31, 2018 |  | $ | 60 |  |  | $ | — |  |  | $ | — |  |  | $ | 142 |  |  | $ | 202 |
Charges |  | 25 |  |  | 36 |  |  | 6 |  |  | 65 |  |  | 132 |
Cash payments |  | (55 | ) |  | — |  |  | — |  |  | (58 | ) |  | (113 | )
Charges against assets |  | (7 | ) |  | (36 | ) |  | (6 | ) |  | (27 | ) |  | (76 | )
Foreign exchange |  | 3 |  |  | — |  |  | — |  |  | — |  |  | 3 |
Other |  | — |  |  | — |  |  | — |  |  | (48 | ) |  | (48 | )
Balance at December 31, 2019 |  | $ | 26 |  |  | $ | — |  |  | $ | — |  |  | $ | 74 |  |  | $ | 100 |
Employee-Related Costs primarily included severance and other termination benefits and were calculated based on long-standing benefit practices, local statutory requirements and, in certain cases, voluntary termination arrangements. Employee-Related Costs also included pension and other retiree benefit enhancements amounting to $7, $9 and $21 for the years ended December 31, 2019, 2018 and 2017, respectively, which are reflected as Charges against assets within Employee-Related Costs in the preceding table as the corresponding balance sheet amounts are reflected as a reduction of pension assets or an increase in pension and other retiree benefit liabilities. See Note 10, Retirement Plans and Other Retiree Benefits for additional information. Incremental Depreciation was recorded to reflect changes in useful lives and estimated residual values for long-lived assets that will be taken out of service prior to the end of their normal service period. Asset Impairments were recorded to write down inventories and assets held for sale or disposal to their fair value based on amounts expected to be realized. Charges against assets within Asset Impairments are net of cash proceeds pertaining to the sale of certain assets. Other charges consisted primarily of charges resulting directly from exit activities and the implementation of new strategies as a result of the Global Growth and Efficiency Program. These charges for the years ended December 31, 2019, 2018 and 2017 included third-party incremental costs related to the development and implementation of new business and strategic initiatives of $32, $42 and $145, respectively, and contract termination costs and charges resulting directly from exit activities of $5, $48 and $6, respectively. These charges were expensed as incurred. Also included in Other charges for the year ended December 31, 2019 were other exit costs of $28 related to the consolidation of facilities. Other decreases to the restructuring accruals reflect the reclassification of restructuring accruals to lease assets as a result of the Company's adoption of ASU No. 2018-10, "Codification Improvement to Topic 842, Leases," on January 1, 2019. See Note 2, Summary of Significant Accounting Policies and Note 15 Leases for additional information.

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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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