INFUSION PUMP AND BUSINESS OPTIMIZATION CHARGES (Tables)

3 Months Ended

Mar. 31, 2016

Business Optimization Charges

During the first quarters of 2016 and 2015, the company recorded the following charges related to business optimization programs.

	Three months ended
	March 31,
(in millions)	2016		2015
Restructuring charges, net		$  4		$ (1	)
Costs to implement business optimization programs		11		18
Total business optimization charges		$15		$17

Summary of Restructuring Charges

During the first quarters of 2016 and 2015, the company recorded the following restructuring charges.

	Three months ended
	March 31, 2016
(in millions)	COGS		SGA			R&D			Total
Employee termination costs		$13		$ 1			$ 1			$15
Reserve adjustments		(1)		(8	)		(2	)		(11	)
Total restructuring charges		$12		$(7	)		$(1	)		$  4

	Three months ended
	March 31, 2015
(in millions)	COGS			SGA			Total
Employee termination costs		$   1			$11			$12
Asset related costs		3			1			4
Asset impairment		2			—			2
Reserve adjustments		(13	)		(6	)		(19	)
Total restructuring charges		$  (7	)		$  6			$ (1	)

Summary of Cash Activity in Reserves related to Business Optimization Initiatives

The following table summarizes cash activity in the reserves related to the company’s business optimization initiatives.

(in millions)
Reserves as of December 31, 2015	$	116
Charges		15
Reserve adjustments		(11	)
Utilization		(22	)
CTA		13
Reserves as of March 31, 2016	$	111