2014 Organization Restructuring

3 Months Ended

Mar. 31, 2016

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities Disclosure

2014 Organization Restructuring

In 2014, we initiated a restructuring plan in order to improve organization efficiency and offset the impact of stranded overhead costs resulting from the spin-off of our health care business. The restructuring is intended to improve our underlying profitability and increase our flexibility to invest in targeted growth initiatives, brand building and other capabilities critical to delivering future growth. The plan is expected to be completed by the end of 2016, with total costs, primarily severance, anticipated to be toward the high end of the range of $130 to $160 after tax ($190 to $230 pretax). Cash costs are projected to be approximately 80 percent of the total charges. The restructuring is expected to impact all of our business segments and our organizations in all major geographies.

Total pretax charges were $14 ($10 after tax) and $13 ($5 after tax) for the three months endedMarch 31, 2016 and 2015, respectively. Through March 31, 2016, cumulative pretax charges for the restructuring were $210 ($147 after tax). Cash payments during the three months endedMarch 31, 2016 and 2015 related to the restructuring were $24 and $31, respectively.