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Restructuring Charges and Asset Impairments
 12 Months Ended
Dec. 31, 2012
Restructuring and Related Activities [Abstract]  
Restructuring Charges and Asset Impairments
Restructuring Charges and Asset Impairments
Activity in our restructuring reserves for the years ended December 31, 2012, 2011 and 2010 was as follows:
 
Severance and benefits costs
 
Pension and
Retiree
Medical
 
Asset
impairments
 
Other exit
costs
 
Total
Balance at December 31, 2009
$
73,792

 
$
—

 
$
—

 
$
14,834

 
$
88,626

Expenses, net
114,873

 
23,620

 
9,799

 
38,163

 
186,455

Gain on sale of facility
—

 
—

 
(8,897
)
 
—

 
(8,897
)
Cash payments
(87,026
)
 
—

 
8,897

 
(41,436
)
 
(119,565
)
Non-cash charges
—

 
(23,620
)
 
(9,799
)
 
—

 
(33,419
)
Balance at December 31, 2010
101,639

 
—

 
—

 
11,561

 
113,200

Expenses, net
101,043

 
8,178

 
13,528

 
12,471

 
135,220

Gain on sale of facility
—

 
—

 
(601
)
 
—

 
(601
)
Cash payments
(97,646
)
 
—

 
601

 
(9,957
)
 
(107,002
)
Non-cash charges
—

 
(8,178
)
 
(13,528
)
 
—

 
(21,706
)
Balance at December 31, 2011
105,036

 
—

 
—

 
14,075

 
119,111

Expenses, net
24,992

 
—

 
—

 
(1,627
)
 
23,365

Cash payments
(67,488
)
 
—

 
—

 
(7,230
)
 
(74,718
)
Non-cash charges
—

 
—

 
—

 
—

 
—

Balance at December 31, 2012
$
62,540

 
$
—

 
$
—

 
$
5,218

 
$
67,758



During 2012, we took actions to further streamline our business operations and reduce our cost structure. These actions consisted primarily of workforce reductions and resulted in a pre-tax restructuring charge of $38 million. We anticipate that these actions will result in annualized benefits of $45 million to $55 million. Restructuring charges are net of reversals of $15 million for changes in estimated reserves for prior period programs. Total restructuring reserves at December 31, 2012 are expected to be paid over the next 12-24 months. We expect to fund these payments from cash flows from operations.

Restructuring charges in 2011 and 2010 represent charges taken in connection with a series of strategic transformation initiatives announced in 2009. These initiatives were designed to transform and enhance the way we operate as a global company, enhance our responsiveness to changing market conditions and create improved processes and systems and were implemented over a three year period through 2011.

Restructuring charges and asset impairments on the Consolidated Statements of Income also includes asset impairment charges unrelated to restructuring programs, which are not included in the table above and excludes restructuring charges related to discontinued operations, which are included in the table above. Asset impairment charges unrelated to restructuring programs were $5 million in both 2011 and 2010.