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RESTRUCTURING AND INTEGRATION COSTS
12 Months Ended
Dec. 31, 2018
Restructuring And Related Activities [Abstract]  
RESTRUCTURING AND INTEGRATION COSTS

NOTE 12—RESTRUCTURING AND INTEGRATION COSTS

2018Restructuring 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: (1) procurement and supply chain; (2) systems, applications and support; (3) assets and facilities; (4) perquisites, travel and other; and (5) 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 $134 million in 2018. Our accrued liability for this program was not material as of December 31, 2018. We anticipate incurring an additional $56 million prior to the completion of the CPI program, which is anticipated to take place in 2020.

2017No restructuring or integration costs were incurred.

2016Restructuring and integration costs were primarily related to our McDermott Profitability Initiative (“MPI”) and Additional Overhead Reduction (“AOR”) programs. Our MPI program, which commenced in 2014 and was completed in 2016, focused on increasing our profitability and flexibility through reduced fixed and variable costs. The program included personnel reduction, centralization of operational activities, other cost reductions and certain asset impairments.  Our AOR program, which commenced in 2015 and was completed in 2016, focused on improving our cost structure. The program included personnel reductions affecting direct operating and selling, general and administrative expenses. These costs were recorded within our Corporate operating results and were $11 million in 2016.