Restructuring and Transformation Costs

12 Months Ended

Dec. 31, 2023

Restructuring and Related Activities [Abstract]

Restructuring and Transformation Costs

Restructuring and Transformation Costs

We initiate restructuring actions to keep our cost structure competitive. Charges generally arise from severance related to workforce reductions, and to a lesser degree, facility exit and lease termination costs associated with the consolidation of office and manufacturing operations.

During the years ended December 31, 2023, 2022 and 2021, we recorded restructuring costs for new and ongoing restructuring actions, including UpLift actions beginning in 2023, as follows:

(dollars in millions)	2023						2022		2021
	UpLift		Other		Total		Total		Total
New Equipment	$	7	$	16	$	23	$	23	$	23
Service	16		26		42		37		33
General Corporate Expenses and Other	2		—		2		—		—
Total	$	25	$	42	$	67	$	60	$	56

(dollars in millions)	2023						2022		2021
	UpLift		Other		Total		Total		Total
Cost of products and services sold	$	—	$	6	$	6	$	22	$	22
Selling, general and administrative	25		36		61		38		34
Total	$	25	$	42	$	67	$	60	$	56

UpLift Restructuring Actions and Transformation Costs. During 2023, we announced UpLift to transform our operating model. UpLift will include, among other aspects, the standardization of our processes and improvement of our supply chain procurement, as well as restructuring actions.

UpLift restructuring actions of up to $55 million were approved in 2023, which are primarily severance related costs. We expect these actions to be mostly completed and cash to be paid by the end of 2024, with certain payments to be completed in 2025. Expected total costs to incur for the approved actions identified to-date are approximately $50 million, including $13 million to New Equipment and $35 million to Service operating segments, as well as $2 million to General corporate expenses and other. Remaining costs to incur for the restructuring actions identified to-date are expected to be $25 million, including $6 million to New Equipment and $19 million to Service operating segments.

In 2023, we incurred $16 million of incremental, non-restructuring costs associated with transforming our operating model as a part of UpLift ("UpLift transformation costs"), including consulting and personnel costs, which are recorded in Other income (expense), net in the Consolidated Statements of Operations.

Other Restructuring Actions. The other restructuring action expenses incurred during the years ended December 31, 2023, 2022 and 2021, were primarily the result of restructuring programs initiated during 2023, 2022 and 2021. We are targeting to complete in 2024 the majority of the remaining restructuring actions initiated in 2023 and 2022. Expected total costs to incur for the restructuring actions initiated are $128 million, including $51 million to New Equipment and $77 million to Service operating segments. Remaining costs to incur for the restructuring actions initiated are expected to be $30 million, including $13 million to New Equipment and $17 million to Service operating segments.

Restructuring Accruals. The following table summarizes the accrual balance and utilization for the restructuring actions, which are primarily for severance costs:

(dollars in millions)	UpLift Actions		Other Actions		Total Restructuring Actions
Restructuring accruals as of December 31, 2021	$	—	$	47	$	47
Net restructuring costs	—		60		60
Utilization, foreign exchange and other costs	—		(66)		(66)
Restructuring accruals as of December 31, 2022	—		41		41
Net restructuring costs	25		42		67
Utilization, foreign exchange and other costs	(12)		(48)		(60)
Restructuring accrual as of December 31, 2023	$	13	$	35	$	48