RESTRUCTURING AND INTEGRATION COSTS

9 Months Ended

Sep. 30, 2018

Restructuring And Related Activities [Abstract]

RESTRUCTURING AND INTEGRATION COSTS

NOTE 11—RESTRUCTURING AND INTEGRATION COSTS

Restructuring and integration costs primarily relate to costs to achieve our CPI program. We launched the CPI program in the second quarter of 2018, with the goal of realizing transformative cost savings across our business. The program incorporates the activities of our Fit 2 Grow program previously announced in the fourth quarter of 2017 and targets a significant improvement in cost controls across five main opportunity areas: (i) procurement and supply chain; (ii) systems, applications and support; (iii) assets and facilities; (iv) perquisites, travel and other; and (v) workforce efficiency. The program also includes other costs associated with the Combination, including change-in-control, severance, incremental incentive plan costs and professional fees. These costs are recorded within our Corporate operating results and were $31 million and $106 million for the three and nine-months ended September 30, 2018, respectively. Our accrued liability for this program was $27 million at September 30, 2018, which is primarily anticipated to be paid in the fourth quarter of 2018. We anticipate incurring an additional $84 million, prior to the completion of the CPI program, which is anticipated in the fourth quarter of 2019.