Restructuring and Asset Impairment Charges

We engage in restructuring actions, including Project Own It, as well as other transformation efforts in order to reduce our cost structure, realign it to the changing nature of our business and to achieve operating efficiencies. In addition, these actions are expected to simplify our organizational structure, upgrade our IT infrastructure and redesign business processes. As part of our efforts to streamline operations and reduce costs, our restructuring actions may also include the off-shoring or outsourcing of certain operations, services and other functions.

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 for the three years ended December 31, 2018 is as follows:



	Severance and Related Costs			Lease Cancellation and Other Costs			Asset Impairments⁽²⁾			Total
Balance at December 31, 2015	$	18		$	1		$	—		$	19
Restructuring provision	219			28			—			247
Reversals of prior accruals	(16		)	(1		)	(5		)	(22		)
Net Current Period Charges⁽¹⁾	203			27			(5		)	225
Charges against reserve and currency	(117		)	(5		)	5			(117		)
Balance at December 31, 2016	$	104		$	23		$	—		$	127
Restructuring provision	221			4			7			232
Reversals of prior accruals	(29		)	(6		)	—			(35		)
Net Current Period Charges⁽¹⁾	192			(2		)	7			197
Charges against reserve and currency	(188		)	(20		)	(7		)	(215		)
Balance at December 31, 2017	$	108		$	1		$	—		$	109
Restructuring provision	176			14			—			190
Reversals of prior accruals	(33		)	—			—			(33		)
Net Current Period Charges⁽¹⁾	143			14			—			157
Charges against reserve and currency	(157		)	(14		)	—			(171		)
Balance at December 31, 2018	$	94		$	1		$	—		$	95

_____________


(1)	Represents net amount recognized within the Consolidated Statements of Income (Loss) for the years shown for restructuring and asset impairment 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,
	2018			2017			2016
Charges against reserve and currency	$	(171	)	$	(215	)	$	(117	)
Asset impairments	—			7			—
Effects of foreign currency and other non-cash items	1			(12		)	4
Restructuring Cash Payments	$	(170	)	$	(220	)	$	(113	)