RESTRUCTURING CHARGES

12 Months Ended

Dec. 31, 2021

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 $13 million will occur throughout 2022 and 2023.

During the third quarter of 2020, 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 has incurred $97 million of the approximate $148 million total costs through 2021 and the remaining expense will primarily occur in 2022. Cash settlement of $84 million has been paid to date with the remaining cash settlement expected to be paid over the duration of 2022 and 2023.

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 will 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 and commenced the collective dismissal procedure in 2021.

In the fourth quarter of 2021, the Company obtained a favorable court decision in litigation commenced by the unions which confirmed the validity of the collective dismissal procedure. The Company subsequently reached an agreement with the unions for the withdrawal of the litigation, completed the collective dismissal process, and reached individual settlements with all impacted personnel. In connection with this action, we have incurred approximately $143 million total costs comprised of $43 million in asset impairment costs, $27 million in other associated costs and $73 million in employee-related costs through December 31, 2021. Cash settlement of $69 million has been paid in 2021 with a nominal amount still to be paid in 2022.

The following tables summarize the changes to our restructuring liability for the years ended December 31, 2021 and 2020:


Millions of dollars	12/31/2020		Charges to Earnings		Cash Paid		Non-Cash and Other		12/31/2021
Employee termination costs	$	145	$	30	$	(122)	$	—	$	53
Asset impairment costs	8		1		—		(1)		8
Facility exit costs	—		2		(2)		—		—
Other exit costs	20		5		(22)		(7)		(4)
Total	$	173	$	38	$	(146)	$	(8)	$	57


Millions of dollars	12/31/2019		Charge 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

The following table summarizes 2021 and 2020 restructuring charges by operating segment:


Millions of dollars	2021 Charges		2020 Charges
North America	$	—	$	81
EMEA	38		154
Latin America	—		20
Asia	—		10
Corporate / Other	—		23
Total	$	38	$	288