Restructuring Actions and Exit Activities

3 Months Ended

Mar. 31, 2019

Restructuring Actions and Exit Activities

Restructuring Actions and Exit Activities

NOTE 5.  Restructuring Actions and Exit Activities

2018 Restructuring Actions:

During the second quarter and fourth quarter of 2018, management approved and committed to undertake certain restructuring actions related to addressing corporate functional costs following the Communication Markets Division divestiture. These actions affected approximately 1,200 positions worldwide and resulted in a second quarter 2018 pre-tax charge of $105 million and a fourth quarter pre-tax charge of $22 million, net of adjustments for reductions in cost estimates of $10 million, essentially all within Corporate and Unallocated. The restructuring charges were recorded in the income statement as follows:

(Millions)	Second Quarter 2018		Fourth Quarter 2018
Cost of sales	$	12	$	15
Selling, general and administrative expenses		89		16
Research, development and related expenses		4		1
Total	$	105	$	32

Restructuring actions, including cash and non-cash impacts, follow:

(Millions)	Employee-Related		Asset-Related		Total
Expense incurred in the second quarter and fourth quarter of 2018	$	125	$	12	$	137
Non-cash changes		—		(12)		(12)
Cash payments		(24)		—		(24)
Adjustments		(17)		—		(17)
Accrued restructuring action balances as of December 31, 2018	$	84	$	—	$	84
Cash payments		(13)		—		(13)
Adjustments		(1)		—		(1)
Accrued restructuring action balances as of March 31, 2019	$	70	$	—	$	70

Remaining activities related to this restructuring are expected to be largely completed through 2019.