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BUSINESS OPTIMIZATION CHARGES | 3 Months Ended
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Mar. 31, 2022
Restructuring and Related Activities [Abstract] |
BUSINESS OPTIMIZATION CHARGES | BUSINESS OPTIMIZATION CHARGES In recent years, we have undertaken actions to transform our cost structure and enhance operational efficiency. These efforts include restructuring the organization, optimizing the manufacturing footprint, R&D operations and supply chain network, employing disciplined cost management, and centralizing and streamlining certain support functions. In the current period, restructuring charges include actions taken in connection with our integration of Hillrom. From the commencement of our business optimization activities in the second half of 2015 through March 31, 2022, we have incurred cumulative pre-tax costs of $1.3 billion related to these actions. The costs consisted primarily of employee termination costs, implementation costs, contract termination costs, asset impairments and accelerated depreciation. We currently expect to incur additional pre-tax costs of approximately $25 million through the completion of the initiatives that are currently underway, primarily related to implementation costs. We continue to pursue cost savings initiatives and, to the extent further cost savings opportunities are identified, we may incur additional restructuring charges and costs to implement business optimization programs in future periods. During the three months ended March 31, 2022 and 2021, we recorded the following charges related to business optimization programs.
| Three Months Ended March 31, |  |
(in millions) | 2022 | 2021 |  |  |
Restructuring charges | $ | 67 |  | $ | 25 |  |  |  |
Costs to implement business optimization programs | 14 |  | 2 |  |  |  |
Total business optimization charges | $ | 81 |  | $ | 27 |  |  |  |
For segment reporting purposes, business optimization charges are unallocated expenses. Costs to implement business optimization programs for the three months ended March 31, 2022 and 2021, respectively, consisted primarily of external consulting and transition costs, including employee compensation and related costs. These costs were primarily included within cost of sales and SG&A expense. During the three months ended March 31, 2022 and 2021, we recorded the following restructuring charges.
| Three months ended March 31, 2022
(in millions) | COGS | SG&A | R&D | Total
Employee termination costs | $ | 2 |  | $ | 47 |  | $ | — |  | $ | 49 |
Contract termination and other costs | — |  | 12 |  | — |  | 12 |
Asset impairments | — |  | 6 |  | — |  | 6 |
Total restructuring charges | $ | 2 |  | $ | 65 |  | $ | — |  | $ | 67 |
| Three months ended March 31, 2021
(in millions) | COGS | SG&A | R&D | Total
Employee termination costs | $ | 16 |  | $ | 5 |  | $ | — |  | $ | 21 |
Asset impairments | 4 |  | — |  | — |  | 4 |
Total restructuring charges | $ | 20 |  | $ | 5 |  | $ | — |  | $ | 25 |
The following table summarizes activity in the liability related to our restructuring initiatives.
(in millions) |
Liability balance as of December 31, 2021 | $ | 109 |
Charges | 61 |
Payments | (31) |
Currency translation | (2) |
Liability balance as of March 31, 2022 | $ | 137 |
Substantially all of our restructuring liabilities as of March 31, 2022 relate to employee termination costs, with the remaining liabilities attributable to contract termination costs. Substantially all of the cash payments for those liabilities are expected to be disbursed by the end of 2023.

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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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4(e)) -URI http://asc.fasb.org/extlink&oid=115931487&loc=d3e140904-122747 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI http://asc.fasb.org/topic&trid=2175745 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (b)(2) -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 + Details
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