XML 67 R21.htm IDEA: XBRL DOCUMENT
v3.20.4

Restructuring Charges | 12 Months Ended
--- | ---
Dec. 31, 2020
Restructuring Charges [Abstract] |
Restructuring Charges | RESTRUCTURING CHARGES We periodically take action to improve operating efficiencies, typically in connection with business acquisitions or changes in the economic environment. Our footprint and headcount reductions and organizational integration actions relate to discrete, unique restructuring events, primarily reflected in the following plans: On June 26, 2020, the Company committed to a workforce reduction plan in the United States, as part of the Company's continued cost reduction efforts. The workforce reduction plan included a voluntary retirement program and involuntary severance actions which were effective as of the end of the second quarter of 2020. These actions were substantially completed in 2020 and the Company incurred $102 million in employee termination costs related to these actions. The remaining cash settlement of $39 million will occur throughout 2021, 2022 and 2023. During the third quarter, the Company committed to additional workforce reductions outside of the United States, as part of the Company's previously announced continued cost reduction efforts. The company incurred $74 million of the approximately $148 million total costs in 2020 and the remaining expense will occur in 2021. Cash settlement of $50 million was paid in 2020 with the remaining cash settlement expected to be paid in 2021. On May 31, 2019, we announced our intention to reconvert our Naples, Italy manufacturing plant and potentially sell the plant to a third party. On September 16, 2019, we entered into a preliminary agreement to sell the plant to a third-party purchaser and to support costs associated with the transition. In October 2019, we announced that, based on further discussions with unions and the Italian government, we would continue production at the Naples manufacturing plant in the near-term and resume negotiations with unions and the Italian government related to our exit of the plant. Our preliminary agreement to sell the plant to a third-party purchaser terminated in accordance with its terms in March 2020. We ceased production in the plant and exited the facility in 2020 as previously disclosed. In connection with this action, we have incurred approximately $131 million total costs comprised of $43 million in asset impairment costs, $22 million in other associated costs and $66 million in employee-related costs through December 31, 2020. The Company expects all of the remaining $71 million cash settlement to occur in 2021. In 2018, we announced actions in EMEA to reduce fixed costs by $50 million. The initiatives primarily included headcount reductions throughout the EMEA region. Additionally, we exited domestic sales operations in Turkey in 2019. These combined actions from 2018-2020 totaled $83 million and were complete as of June 30, 2020. The following tables summarize the changes to our restructuring liability for the years ended December 31, 2020 and 2019:
Millions of dollars | 12/31/2019 | Charges to Earnings | Cash Paid | Non-Cash and Other | 12/31/2020
Employee termination costs | $ | 57 |  | $ | 253 |  | $ | (165) |  | $ | — |  | $ | 145 |
Asset impairment costs | 8 |  | 1 |  | — |  | (1) |  | 8 |
Facility exit costs | — |  | 4 |  | (4) |  | — |  | — |
Other exit costs | 12 |  | 30 |  | (27) |  | 5 |  | 20 |
Total | $ | 77 |  | $ | 288 |  | $ | (196) |  | $ | 4 |  | $ | 173 |
Millions of dollars | 12/31/2018 | Charge to Earnings | Cash Paid | Non-cash and Other | 12/31/2019
Employee termination costs | $ | 84 |  | $ | 84 |  | $ | (111) |  | $ | — |  | $ | 57 |
Asset impairment costs | — |  | 74 |  | (7) |  | (59) |  | 8 |
Facility exit costs | (9) |  | 22 |  | (23) |  | — |  | — |
Other exit costs | 21 |  | 8 |  | (5) |  | (2) |  | 12 |
Total | $ | 96 |  | $ | 188 |  | $ | (146) |  | $ | (61) |  | $ | 77 |
The following table summarizes 2020 restructuring charges by operating segment:
Millions of dollars | 2020 Charges
North America | $ | 81 |
EMEA | 154 |
Latin America | 20 |
Asia | 10 |
Corporate / Other | 23 |
Total | $ | 288 |

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://fasb.org/us-gaap/role/ref/legacyRef -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

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