Restructuring Related Activities (Tables)

9 Months Ended

Sep. 30, 2014

Restructuring and Related Cost [Line Items]

Restructuring and related costs

The following presents these costs (credits) by major type and line item within our accompanying unaudited condensed consolidated statements of operations, as well as by program:

Three Months Ended September 30, 2014
(in millions)	Termination Benefits			Accelerated Depreciation		Transfer Costs		Fixed Asset Write-offs		Other		Total
Restructuring charges	$	—		$	—	$	—	$	—	$	2	$	2
Restructuring-related expenses:
Cost of products sold	—			—		9		—		—		9
Selling, general and administrative expenses	—			1		—		—		5		6
	—			1		9		—		5		15
	$	—		$	1	$	9	$	—	$	7	$	17
(in millions)	Termination Benefits			Accelerated Depreciation		Transfer Costs		Fixed Asset Write-offs		Other		Total
2014 Restructuring plan	$	(1	)	$	1	$	9	$	—	$	7	$	16
2011 Restructuring plan (including the Expansion)	1			—		—		—		—		1
	$	—		$	1	$	9	$	—	$	7	$	17
Three Months Ended September 30, 2013
(in millions)	Termination Benefits			Accelerated Depreciation		Transfer Costs		Net Gain on Fixed Asset Disposals		Other		Total
Restructuring charges	$	5		$	—	$	—	$	—	$	14	$	19
Restructuring-related expenses:
Selling, general and administrative expenses	—			1		—		—		6		7
	—			1		—		—		6		7
	$	5		$	1	$	—	$	—	$	20	$	26
(in millions)	Termination Benefits			Accelerated Depreciation		Transfer Costs		Net Gain on Fixed Asset Disposals		Other		Total
2011 Restructuring plan (including the Expansion)	$	5		$	1	$	—	$	—	$	20	$	26
	$	5		$	1	$	—	$	—	$	20	$	26

Nine Months Ended September 30, 2014
(in millions)	Termination Benefits			Accelerated Depreciation		Transfer Costs		Fixed Asset Write-offs			Other		Total
Restructuring charges	$	19		$	—	$	—	$	—		$	18	$	37
Restructuring-related expenses:
Cost of products sold	—			—		15		—			—		15
Selling, general and administrative expenses	—			3		—		—			15		18
	—			3		15		—			15		33
	$	19		$	3	$	15	$	—		$	33	$	70
(in millions)	Termination Benefits			Accelerated Depreciation		Transfer Costs		Fixed Asset Write-offs			Other		Total
2014 Restructuring plan	$	18		$	3	$	15	$	—		$	30	$	66
2011 Restructuring plan (including the Expansion)	1			—		—		—			3		4
	$	19		$	3	$	15	$	—		$	33	$	70
Nine Months Ended September 30, 2013
(in millions)	Termination Benefits			Accelerated Depreciation		Transfer Costs		Net Gain on Fixed Asset Disposals			Other		Total
Restructuring charges	$	26		$	—	$	—	$	(16	)	$	45	$	55
Restructuring-related expenses:
Selling, general and administrative expenses	—			2		—		—			14		16
	—			2		—		—			14		16
	$	26		$	2	$	—	$	(16	)	$	59	$	71
(in millions)	Termination Benefits			Accelerated Depreciation		Transfer Costs		Net Gain on Fixed Asset Disposals			Other		Total
2011 Restructuring plan (including the Expansion)	$	30		$	2	$	—	$	(16	)	$	59	$	75
Plant Network Optimization program	(4		)	—		—		—			—		(4		)
	$	26		$	2	$	—	$	(16	)	$	59	$	71

Cumulative restructuring charges

(in millions)	2014 Restructuring plan		2011 Restructuring plan (including the Expansion)			Plant Network Optimization program		Total
Termination benefits	$	47	$	137		$	30	$	214
Fixed asset write-offs	—		(1		)	—		(1		)
Other	15		113			—		128
Total restructuring charges	62		249			30		341
Accelerated depreciation	3		5			22		30
Transfer costs	15		—			74		89
Other	15		34			—		49
Restructuring-related expenses	33		39			96		168
	$	95	$	288		$	126	$	509

Cash payments associated with restructuring initiatives

We made cash payments of $27 million in the third quarter of 2014 and $80 million in the first nine months of 2014 associated with restructuring initiatives pursuant to these plans, and as of September 30, 2014, we had made total cash payments of $451 million related to our 2014 Restructuring plan, 2011 Restructuring plan (including the Expansion), and PNO program since committing to each plan. These payments were made using cash generated from operations, and are comprised of the following:

(in millions)	2014 Restructuring plan		2011 Restructuring plan (including the Expansion)		Plant Network Optimization program		Total
Three Months Ended September 30, 2014
Termination benefits	$	7	$	2	$	—	$	9
Transfer costs	9		—		—		9
Other	7		2		—		9
	$	23	$	4	$	—	$	27
Nine Months Ended September 30, 2014
Termination benefits	$	19	$	9	$	—	$	28
Transfer costs	15		—		—		15
Other	27		10		—		37
	$	61	$	19	$	—	$	80
Program to Date
Termination benefits	$	19	$	133	$	30	$	182
Transfer costs	15		—		73		88
Other	27		154		—		181
	$	61	$	287	$	103	$	451

Summary of accrued expenses within accompanying unaudited condensed consolidated balance sheets

The following is a rollforward of the termination benefit liability associated with our 2014 Restructuring plan and 2011 Restructuring plan (including the Expansion), which is reported as a component of accrued expenses included in our accompanying unaudited condensed balance sheets:

(in millions)	2014 Restructuring plan			2011 Restructuring plan (including the Expansion)			Total
Accrued as of December 31, 2013	$	29		$	12		$	41
Charges (credits)	18			1			19
Cash payments	(19		)	(9		)	(28		)
Accrued as of September 30, 2014	$	28		$	4		$	32

2014 Restructuring plan [Member]

Restructuring and Related Cost [Line Items]

Restructuring and related costs

The following table provides a summary of our estimates of costs associated with the 2014 Restructuring plan by major type of cost:

Type of cost	Total estimated amount expected to be incurred
Restructuring charges:
Termination benefits	$100 million to $120 million
Other (1)	$10 million to $20 million
Restructuring-related expenses:
Other (2)	$65 million to $85 million
	$175 million to $225 million

(1) Consists primarily of consultant fees and costs associated with contractual cancellations.

(2) Comprised of other costs directly related to the 2014 Restructuring plan, including program management, accelerated depreciation, and costs to transfer product lines among facilities.

2011 Restructuring Plan [Member]

Restructuring and Related Cost [Line Items]

Restructuring and related costs

The following provides a summary of our expected total costs associated with the 2011 Restructuring plan, including the Expansion, by major type of cost:

Type of cost	Total estimated amount expected to be incurred
Restructuring charges:
Termination benefits	$138 million to $141 million
Other (1)	$112 million
Restructuring-related expenses:
Other (2)	$39 million
	$289 million to $292 million

(1) Includes primarily consulting fees, gains and losses on disposals of fixed assets and costs associated with contractual cancellations.

(2) Comprised of other costs directly related to the 2011 Restructuring plan, including the Expansion, such as program management, accelerated depreciation, retention and infrastructure-related costs.

Plant Network Optimization [Member]

Restructuring and Related Cost [Line Items]

Restructuring and related costs

The following provides a summary of our costs associated with the PNO program by major type of cost:

Type of cost	Total amount incurred
Restructuring charges:
Termination benefits	$30 million
Restructuring-related expenses:
Accelerated depreciation	$22 million
Transfer costs (1)	$74 million
	$126 million

(1) Consists primarily of costs to transfer product lines among facilities, including costs of transfer teams, freight, idle facility and product line validations.