RESTRUCTURING AND INTEGRATION COSTS

In connection with the Salix Acquisition, as well as other acquisitions, the Company has implemented cost-rationalization and integration initiatives to capture operating synergies and generate cost savings across the Company. These measures included:


•	workforce reductions across the Company and other organizational changes;


•	closing of duplicative facilities and other site rationalization actions company-wide, including research and development facilities, sales offices and corporate facilities;


•	leveraging research and development spend; and/or


•	procurement savings.

Salix Acquisition-Related Cost-Rationalization and Integration Initiatives

The Company had estimated that it would incur total costs of approximately $300 million in connection with the cost-rationalization and integration initiatives relating to the Salix Acquisition, which were substantially completed by mid-2016. Since the acquisition date, total costs of $267 million have been incurred through December 31, 2016, including (i) $153 million of integration expenses, (ii) $99 million of restructuring expenses and (iii) $15 million of acquisition-related costs. The estimate of total costs to be incurred primarily includes: employee termination costs payable to approximately 475 employees of the Company and Salix who have been terminated as a result of the Salix Acquisition; potential IPR&D termination costs related to the transfer to other parties of product-development programs that do not align with the Company's research and development model; costs to consolidate or close facilities and relocate employees; and contract termination and lease cancellation costs.

Salix Restructuring Costs

The following table summarizes the major components of the restructuring costs incurred in connection with the Salix Acquisition since the acquisition date through December 31, 2016:



(in millions)	Severance and Related Benefits			Contract Termination, Facility Closures and Other			Total
Balance, January 1, 2015	$	—		$	—		$	—
Costs incurred and/or charged to expense	91			1			92
Cash payments	(58		)	—			(58		)
Non-cash adjustments	2			—			2
Balance, December 31, 2015	35			1			36
Costs incurred and/or charged to expense	(3		)	10			7
Cash payments	(30		)	(4		)	(34		)
Balance, December 31, 2016	$	2		$	7		$	9

Salix Integration Costs

The Company incurred $43 million and $110 million of integration costs related to the Salix Acquisition for 2016 and 2015, respectively, and includes the costs of consulting, duplicate labor, transition services, and other. The Company made payments of $25 million and $100 million related to Salix integration costs in 2016 and 2015, respectively.

Other Restructuring and Integration-Related Costs (Excluding Salix)

In the year ended December 31, 2016, in addition to the restructuring and integration costs associated with the Salix Acquisition described above, the Company incurred an additional $82 million of other restructuring and integration costs. These costs included (i) $48 million of integration consulting, duplicate labor, transition service, and other costs, (ii) $24 million of severance costs, (iii) $9 million of facility closure costs and (iv) $1 million of other costs. These costs primarily related to integration and restructuring costs for other smaller acquisitions. The Company made payments of $62 million during the year ended December 31, 2016 (in addition to the payments related to the Salix Acquisition described above).

In the year ended December 31, 2015, in addition to the restructuring and integration costs associated with the Salix Acquisition described above, the Company incurred an additional $160 million of other restructuring and integration costs. These costs included (i) $103 million of integration consulting, duplicate labor, transition service, and other costs, (ii) $47 million of severance costs, (iii) $9 million of facility closure costs and (iv) $1 million of other costs. These costs primarily related to integration and restructuring costs for the acquisition of certain assets of Dendreon Corporation and other smaller acquisitions. The Company made payments of $179 million during the year ended December 31, 2015 (in addition to the payments related to the Salix Acquisition described above).

In the year ended December 31, 2014, the Company incurred an additional $382 million of other restructuring and integration costs. These costs included (i) $212 million of integration consulting, duplicate labor, transition service, and other costs, (ii) $127 million of severance costs, (iii) $36 million of facility closure costs and (iv) $7 million of other costs. These costs primarily related to integration and restructuring costs for the acquisition of Bausch & Lomb Holdings Incorporated ("B&L"), the Solta Medical Acquisition and other smaller acquisitions. The Company made payments of $421 million during the year ended December 31, 2014.

As described in Note 22, restructuring costs are not recorded in the Company’s reportable segments.