RESTRUCTURING

In October 2016, the Company announced a restructuring plan to evolve and streamline its operating model and expects to incur charges in connection with employee workforce reductions and early site exits. The majority of charges are expected to be incurred through 2020, range between $1.5 billion to $2.0 billion, and consist of employee termination benefit costs, contract termination costs, accelerated depreciation, impairment charges and other site exit costs. Cash outlays in connection with these actions are expected to be approximately 40% to 50% of the total charges. Charges of approximately $800 million have been recognized for these actions since the announcement including an impairment charge for a small molecule manufacturing operation in Swords, Ireland. Restructuring charges are recognized upon meeting certain criteria, including finalization of committed plans, reliable estimates and discussions with local works councils in certain markets.

Other restructuring charges in addition to the above actions recognized prior were primarily related to specialty care transformation initiatives designed to create a more simplified organization across all functions and geographic markets. In addition, accelerated depreciation and other charges were incurred in connection with the expected early exits of a small molecule manufacturing site in Cruiserath, Ireland and a R&D facility in Wallingford, Connecticut. Refer to "—Note 4. Acquisitions, Divestitures and Licensing Arrangements" for further information.

Employee workforce reductions were approximately 1,900 in 2017, 1,100 in 2016 and 1,200 in 2015.

The following tables summarize the charges and activity related to the restructuring actions:



	Year Ended December 31,
Dollars in Millions	2017		2016		2015
Employee termination costs	$	267	$	97	$	110
Other termination costs	26		12		8
Provision for restructuring	293		109		118
Accelerated depreciation	289		72		104
Asset impairments	241		13		1
Other shutdown costs	3		19		10
Total charges	$	826	$	213	$	233



	Year Ended December 31,
Dollars in Millions	2017		2016		2015
Cost of products sold	$	149	$	21	$	84
Marketing, selling and administrative	1		—		—
Research and development	383		83		31
Other income (net)	293		109		118
Total charges	$	826	$	213	$	233



	Year Ended December 31,
Dollars in Millions	2017			2016			2015
Liability at January 1	$	114		$	125		$	156
Charges	319			116			133
Change in estimates	(26		)	(7		)	(15		)
Provision for restructuring	293			109			118
Foreign currency translation	18			—			(15		)
Spending	(239		)	(120		)	(134		)
Liability at December 31	$	186		$	114		$	125