RESTRUCTURING

In October 2016, the Company announced a restructuring plan to evolve and streamline its operating model. The majority of the 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, plant and equipment accelerated depreciation and impairment charges and other shutdown costs associated with early manufacturing and R&D site exits. Cash outlays in connection with these actions are expected to be approximately 40% to 50% of the total charges. Charges of approximately $1.1 billion have been recognized for these actions since the announcement. Restructuring charges are recognized upon meeting certain criteria, including finalization of committed plans, reliable estimates and discussions with local works councils in certain markets.

Employee workforce reductions were approximately 50 and 100 for the three months ended March 31, 2019 and 2018, respectively.

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



	Three Months Ended March 31,
Dollars in Millions	2019		2018
Employee termination costs	$	4	$	9
Other termination costs	8		11
Provision for restructuring	12		20
Accelerated depreciation	31		21
Asset impairments	1		10
Other shutdown costs	—		3
Total charges	$	44	$	54



	Three Months Ended March 31,
Dollars in Millions	2019		2018
Cost of products sold	$	12	$	13
Marketing, selling and administrative	1		1
Research and development	19		20
Other income (net)	12		20
Total charges	$	44	$	54



	Three Months Ended March 31,
Dollars in Millions	2019			2018
Liability at December 31	$	99		$	186
Cease-use lease liability reclassification	(3		)	—
Liability at January 1	96			186

Charges	15			20
Change in estimates	(3		)	—
Provision for restructuring	12			20
Foreign currency translation	—			5
Payments	(45		)	(75		)
Liability at March 31	$	63		$	136