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Restructuring and impairment charges (Tables)
 12 Months Ended
Dec. 31, 2022
Restructuring and Related Activities [Abstract]  
Summary of Current Cost Estimates by Major Type of Cost
The following table provides a summary of the cost estimates by major type of expense associated with the 2022 restructuring plan:
Total estimated amount expected to be incurred
Plan expense estimates:(Dollars in millions)
Termination benefits
$18 million to $22 million
Other costs (1)
$1 million to $1 million
Restructuring Charges
$19 million to $23 million
Restructuring related charges (2)
$20 million to $25 million
Total restructuring and restructuring related charges
$39 million to $48 million
(1)Includes facility closure and outplacement costs.
(2)Restructuring related charges represent costs that are directly related to the program and principally comprise costs to transfer manufacturing operations to the existing lower-cost locations, project management costs and accelerated depreciation. The plan also includes an $8.1 million non cash tax related charge arising from establishing a valuation allowance against a local deferred tax asset, which is no longer expected to be utilized as a result of the transfer. Excluding this tax charge, the majority of the restructuring related charges are expected to be recognized within cost of goods sold.
The following table provides a summary of our cost estimates by major type of expense associated with the Respiratory divestiture plan:
Total estimated amount expected to be incurred
Plan expense estimates:(Dollars in millions)
Restructuring charges (1)
$5 million to $8 million
Restructuring related charges (2)
$19 million to $22 million
Total restructuring and restructuring related charges
$24 million to $30 million
(1) Substantially all of the charges consist of employee termination benefit costs.
(2)Consist of charges that are directly related to the Respiratory divestiture plan and principally constitute costs to transfer manufacturing operations to other locations and project management costs. Substantially all of the charges are expected to be recognized within costs of goods sold.
Schedule of Restructuring Reserve
The following table summarizes the restructuring reserve activity related to our 2022 restructuring plan, Respiratory divestiture plan as well as the 2019 and 2018 Footprint realignment plans:
2022 restructuring planRespiratory divestiture plan2019 Footprint realignment plan2018 Footprint realignment plan
Balance at December 31, 2020 (1)
$— $— $8,054 $50,081 
Subsequent accruals— 2,694 253 2,476 
Cash payments— (7)(4,982)(4,813)
Foreign currency translation and other— (86)(19)(3,679)
Balance at December 31, 2021 (1)
— 2,601 3,306 44,065 
Subsequent accruals15,523 578 (987)2,076 
Cash payments(978)(149)(874)(24,310)
Foreign currency translation and other315 19 — (3,292)
Balance at December 31, 2022 (1)
$14,860 $3,049 $1,445 $18,539 
(1)The restructuring reserves as of December 31, 2022, 2021 and 2020 consisted mainly of accruals related to termination benefits. Other costs (facility closure, employee relocation, equipment relocation and outplacement costs) were expensed and paid in the same period.
Restructuring and Other Impairment Charges
The restructuring and impairment charges recognized for the years ended December 31, 2022, 2021, and 2020 consisted of the following:
2022
Termination benefits
Other Costs (1)
Total
2022 Restructuring plan$15,465 $58 $15,523 
Respiratory divestiture plan504 74 578 
2019 Footprint realignment plan(1,120)133 (987)
2018 Footprint realignment plan1,230 846 2,076 
Other restructuring programs (2)
1,306 306 1,612 
Total restructuring charges17,385 1,417 18,802 
Asset impairment charges— 1,497 1,497 
Total restructuring and impairment charges$17,385 $2,914 $20,299 
2021
Termination benefits
Other Costs (1)
Total
Respiratory divestiture plan$2,687 $7 $2,694 
2021 Restructuring plan7,280 77 7,357 
2019 Footprint realignment plan(111)364 253 
2018 Footprint realignment plan2,335 141 2,476 
Other restructuring programs (3)
(429)2,648 2,219 
Total restructuring charges11,762 3,237 14,999 
Asset impairment charges— 6,739 6,739 
Total restructuring and impairment charges$11,762 $9,976 $21,738 
2020
Termination benefits
Other Costs (1)
Total
2020 Workforce reduction plan$8,494 $353 $8,847 
2019 Footprint realignment plan647 895 1,542 
2018 Footprint realignment plan5,565 383 5,948 
Other restructuring programs (4)
(72)838 766 
Total restructuring charges14,634 2,469 17,103 
Asset impairment charges— 21,388 21,388 
Total restructuring and impairment charges$14,634 $23,857 $38,491 
(1)Includes facility closure, contract termination and other exit costs.
(2)Includes activity primarily related to a restructuring plan initiated in the first quarter of 2022 that is designed to relocate manufacturing operations at certain of our facilities, the 2014 Footprint realignment plan and the 2020 Workforce reduction plan, a program initiated in the second quarter of 2020.
(3)Includes the 2020 Workforce reduction plan and the 2014 Footprint realignment plan.
(4)Includes activity primarily related to the 2016 and 2014 Footprint realignment plans.