As of September 30, 2020, restructuring related liabilities of $3 million pertaining to employee separation charges are included in “Other current liabilities” in our consolidated balance sheet.

During the three-month period ended September 30, 2020, we incurred $3 million in expenses consisting of severance and employee costs resulting from workforce reductions.

During the nine-month period ended September 30, 2020, we incurred $87 million in expenses consisting of $8 million directly associated with transformation initiatives, $7 million of severance and employee costs resulting from workforce reductions, and $72 million of consulting and advisory costs related to our balance sheet restructuring activities through the Petition Date.

Effective with the Petition date, these other charges consisting of consulting and advisory costs incurred are recorded in Reorganization items, net in the consolidated statement of operations.

During the three and nine months ended September 30, 2019, we incurred $27 million and $86 million, respectively, in expenses consisting of $9 million and $38 million, respectively, directly associated with transformation initiatives and $18 million and $48 million, respectively, of severance and employee costs resulting from workforce reductions.

The following is a summary of the changes in the liabilities established for restructuring and other related programs:



($ in millions)

Balance at January 1, 2020	$	15
Severance expense		7
Transformation costs		8
Other costs		72
Cash payments during the period		(99)
Balance at September 30, 2020	$	3