Restructuring and Asset Impairment Charges

In 2016, in conjunction with our announcement of the planned Separation of the Company, we initiated a three-year Strategic Transformation program to accelerate our cost productivity initiatives. The program is expected to deliver productivity gains and cost savings in areas such as delivery, remote connectivity, sales productivity, pricing, design efficiency and supply chain optimization.

The program is expected to include restructuring charges related to downsizing our employee base, exiting certain activities, outsourcing certain internal functions and engaging in other actions designed to reduce our cost structure and improve productivity. In addition, we expect to incur asset impairment charges in connection with these restructuring actions for those assets that are sold, abandoned or made obsolete as a result of initiatives under the program. Beginning in 2016, all restructuring costs incurred were the result of actions and initiatives associated with the Strategic Transformation program.

Costs associated with restructuring, including employee severance and lease termination costs, are generally recognized when it has been determined that a liability has been incurred, which is generally upon communication to the affected employees or exit from the leased facility, respectively. In those geographies where we have either a formal severance plan or a history of consistently providing severance benefits representing a substantive plan, we recognize employee severance costs when they are both probable and reasonably estimable.

A summary of our restructuring program activity during the three years ended December 31, 2016 is as follows:



	Severance and Related Costs			Lease Cancellation and Other Costs			Asset Impairments⁽²⁾			Total
Balance at December 31, 2013	$	96		$	3		$	—		$	99
Restructuring provision	115			3			5			123
Reversals of prior accruals	(16		)	—			(1		)	(17		)
Net Current Period Charges⁽¹⁾	99			3			4			106
Charges against reserve and currency	(112		)	(5		)	(4		)	(121		)
Balance at December 31, 2014	$	83		$	1		$	—		$	84
Restructuring provision	35			2			7			44
Reversals of prior accruals	(16		)	(1		)	—			(17		)
Net Current Period Charges⁽¹⁾	19			1			7			27
Charges against reserve and currency	(84		)	(1		)	(7		)	(92		)
Balance at December 31, 2015	$	18		$	1		$	—		$	19
Restructuring provision	224			28			—			252
Reversals of prior accruals	(16		)	(1		)	(5		)	(22		)
Net Current Period Charges⁽¹⁾	208			27			(5		)	230
Charges against reserve and currency	(122		)	(5		)	5			(122		)
Balance at December 31, 2016	$	104		$	23		$	—		$	127

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(1)	Represents net amount recognized within the Consolidated Statements of (Loss) Income for the years shown for restructuring and asset impairments charges.


(2)	Charges associated with asset impairments represent the write-down of the related assets to their new cost basis and are recorded concurrently with the recognition of the provision.

The following table summarizes the reconciliation to the Consolidated Statements of Cash Flows:



	Year Ended December 31,
	2016			2015			2014
Charges against reserve	$	(122	)	$	(92	)	$	(121	)
Asset impairments	—			7			5
Effects of foreign currency and other non-cash items	4			6			6
Restructuring Cash Payments	$	(118	)	$	(79	)	$	(110	)

The following table summarizes the total amount of costs incurred in connection with these restructuring programs by segment:



	Year Ended December 31,
	2016			2015		2014
Document Technology	$	208		$	15	$	76
Services	25			4		16
Other	(3		)	8		14
Total Net Restructuring Charges	$	230		$	27	$	106