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Restructuring
6 Months Ended
Jun. 30, 2022
Restructuring and Related Activities [Abstract]  
Restructuring

6. RESTRUCTURING

As of June 30, 2022, approximately $11 million out of the $45 million in total reserve balance can be attributed to the structural efficiency program initiated in the second quarter of 2020 and mainly relates to Europe. This program is expected to be concluded in 2022. Approximately $21 million of the total reserve balance can be attributed to footprint optimization activities in Europe initiated in the third quarter of 2020. These activities are expected to be concluded in 2023. The cash payments for the three months period ended June 30, 2022 relate to restructuring activities in Europe and Asia. The majority of the cash payments for the six months period ended June 30, 2022 relate to footprint optimization activities in Asia.

The table below summarizes the change in the balance sheet position of the employee-related restructuring reserves (dollars in millions). The restructuring reserve balances are included within Accrued expenses in the Condensed Consolidated Balance Sheets. The changes in the employee-related reserves have been charged against Other income (expense), net in the Consolidated Statements of Income. Restructuring costs other than employee related costs are immaterial for all periods presented.

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Reserve at beginning of the period

 

$

58

 

 

$

113

 

 

$

88

 

 

$

126

 

Provision - charge

 

 

0

 

 

 

1

 

 

 

12

 

 

 

2

 

Provision - reversal

 

 

(0

)

 

 

(0

)

 

 

(0

)

 

 

(0

)

Cash payments

 

 

(9

)

 

 

(8

)

 

 

(50

)

 

 

(17

)

Translation difference

 

 

(4

)

 

 

1

 

 

 

(5

)

 

 

(4

)

Reserve at end of the period

 

$

45

 

 

$

107

 

 

$

45

 

 

$

107