Restructuring Charges and Asset Impairments

12 Months Ended

Dec. 31, 2021

Restructuring and Related Activities [Abstract]

Restructuring Charges and Asset Impairments

During 2020, our management initiated and approved a broad restructuring plan in response to the dislocation of the global energy market resulting from the decline in oil prices and the COVID-19 pandemic. As part of the plan, management approved strategic business restructuring activities and decided to discontinue pursuing certain projects, principally lump-sum EPC and commoditized construction services. The restructuring plan was designed to refine our market focus, optimize costs and improve operational efficiencies. The restructuring charges were substantially completed in the year ended December 31, 2020.

We recorded restructuring charges and asset impairments of $2 million for the year ended December 31, 2021. For the year ended December 31, 2020, we recorded restructuring charges and asset impairments as follows:


Dollars in millions	Severance		Lease Abandonment		Other		Total Restructuring Charges		Asset Impairments		Total Restructuring Charges & Asset Impairments
Government Solutions	$	2	$	—	$	—	$	2	$	2	$	4
Sustainable Technology Solutions	29		4		6		39		47		86
Other	1		54		20		75		49		124
Total	$	32	$	58	$	26	$	116	$	98	$	214

The restructuring liability at December 31, 2021 was $66 million, of which $17 million is included in other current liabilities and $49 million is included in other liabilities. A reconciliation of the beginning and ending restructuring liability balances is provided in the following table.


Dollars in millions	Severance		Lease Abandonment		Other		Total
Balance at January 1, 2021	$	15	$	52	$	24	$	91

Lease restructuring charges related to operating lease liabilities	—		2		—		2
Cash payments / settlements during the period	(9)		(7)		(5)		(21)
Currency translation and other adjustments	(3)		—		(3)		(6)
Balance at December 31, 2021	$	3	$	47	$	16	$	66

The restructuring liability at December 31, 2020 was $91 million, of which $32 million is included in other current liabilities and $59 million is included in other liabilities. A reconciliation of the beginning and ending restructuring liability balances is provided in the following table.


Dollars in millions	Severance		Lease Abandonment		Other		Total
Balance at January 1, 2020	$	—	$	—	$	—	$	—
Restructuring charges accrued during the period	32		58		26		$	116
Lease restructuring charges related to operating lease liabilities	—		(4)		—		$	(4)
Cash payments / settlements during the period	(16)		(2)		(3)		$	(21)
Currency translation and other adjustments	$	(1)	$	—	$	1	$	—
Balance at December 31, 2020	$	15	$	52	$	24	$	91