XML 46 R34.htm IDEA: XBRL DOCUMENT v3.8.0.1
Business Restructuring Charges Business Restructuring Charges (Tables)
12 Months Ended
Sep. 30, 2017
Restructuring and Related Activities [Abstract]  
Summary of Restructuring Accrual Activity
Restructuring liability activity in 2017, 2016 and 2015 was as follows:
(Millions of dollars)
 
Employee Termination (A)
 
Other (B)
 
Total
Balance at September 30, 2014
 
$

 
$

 
$

Assumed liability
 
19

 

 
19

Charged to expense
 
126

 
146

 
271

Cash payments
 
(74
)
 
(20
)
 
(94
)
Non-cash settlements
 

 
(44
)
 
(44
)
Other adjustments
 
(9
)
 
(81
)
 
(91
)
Balance at September 30, 2015
 
$
62

 
$

 
$
62

Charged to expense
 
81

 
445

 
526

Cash payments
 
(76
)
 
(72
)
 
(148
)
Non-cash settlements
 

 
(39
)
 
(39
)
Other adjustments
 

 
(332
)
 
(332
)
Balance at September 30, 2016
 
$
67

 
$
2

 
$
69

Charged to expense
 
27

 
58

 
85

Cash payments
 
(45
)
 
(12
)
 
(57
)
Non-cash settlements
 

 
(9
)
 
(9
)
Other adjustments
 

 
(33
)
 
(33
)
Balance at September 30, 2017
 
$
49

 
$
6

 
$
55

(A)
Expenses in fiscal year 2016 included $40 million relating to the CareFusion acquisition as well as $13 million for employee termination costs resulting from the Company's transition of certain elements of its information technology function to an outsourced model as further disclosed below. Expenses in fiscal year 2015 were primarily related to the CareFusion acquisition.
(B)
In the fourth quarter of fiscal year 2015, the Company initiated a plan to transition certain elements of its global information technology function from Company-owned assets to an outsourced, cloud-based model. Restructuring expenses recorded in 2015 included non-cash asset impairment charges relating to assets held for sale as a result of this plan. In the fourth quarter of fiscal year 2016, the Company expanded the scope of this plan to include the transition of certain business information systems assets to a third-party and as a result, the Company recorded a $214 million non-cash charge to recognize the impairment of capitalized internal-use software assets held for sale. Expenses in 2016 also included non-cash impairment charges of $81 million, after-tax, relating to the Company's disposition of certain non-core businesses, including the Company's sale of a majority interest in its Respiratory Solutions business during the first quarter of fiscal year 2017, which is further discussed in Note 10.