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INFUSION PUMP AND BUSINESS OPTIMIZATION CHARGES (Tables)
 12 Months Ended
Dec. 31, 2016
Restructuring And Related Activities [Abstract]  
Infusion Pump Charges

The following table summarizes cash activity and reserve adjustments related to the company’s COLLEAGUE and SYNDEO infusion pump reserves through December 31, 2016.

(in millions)

 

 

 

 

Charges and adjustments in 2005 through 2014

 

$

700

 

Utilization in 2005 through 2014

 

 

(678

)

Reserves at December 31, 2014

 

 

22

 

Reserve adjustments

 

 

(7

)

Utilization

 

 

(8

)

Reserves at December 31, 2015

 

 

7

 

Reserve adjustments

 

 

(4

)

Utilization

 

 

(3

)

Reserves at December 31, 2016

 

$

—

 

 
Business Optimization Charges

The company recorded the following charges related to business optimization programs in 2016, 2015, and 2014:

 

years ended December 31 (in millions)

 

2016

 

 

2015

 

 

2014

 

Restructuring charges, net

 

$

285

 

 

$

130

 

 

$

(6

)

Costs to implement business optimization programs

 

 

65

 

 

 

—

 

 

 

—

 

Gambro integration costs

 

 

26

 

 

 

73

 

 

 

144

 

Accelerated depreciation

 

 

33

 

 

 

—

 

 

 

—

 

Total business optimization charges

 

$

409

 

 

$

203

 

 

$

138

 

 
Components of Restructuring Costs

The company recorded the following components of restructuring costs in 2016, 2015 and 2014:

 

 

2016

 

(in millions)

 

COGS

 

 

SGA

 

 

R&D

 

 

Total

 

Employee termination costs

 

$

72

 

 

$

109

 

 

$

13

 

 

$

194

 

Contract termination costs

 

 

9

 

 

 

5

 

 

 

13

 

 

 

27

 

Asset impairments

 

 

38

 

 

 

—

 

 

 

40

 

 

 

78

 

Reserve adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee termination costs

 

 

(1

)

 

 

(11

)

 

 

(2

)

 

 

(14

)

Total restructuring charges

 

$

118

 

 

$

103

 

 

$

64

 

 

$

285

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2015

 

(in millions)

 

COGS

 

 

SGA

 

 

R&D

 

 

Total

 

Employee termination costs

 

$

14

 

 

$

86

 

 

$

15

 

 

$

115

 

Contract termination costs

 

$

3

 

 

$

2

 

 

$

—

 

 

$

5

 

Asset impairment

 

 

40

 

 

 

—

 

 

 

2

 

 

 

42

 

Reserve adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee termination costs

 

 

(19

)

 

 

(10

)

 

 

(3

)

 

 

(32

)

Total restructuring charges

 

$

38

 

 

$

78

 

 

$

14

 

 

$

130

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2014

 

(in millions)

 

COGS

 

 

SGA

 

 

R&D

 

 

Total

 

Employee termination costs

 

$

10

 

 

$

24

 

 

$

—

 

 

$

34

 

Contract termination costs

 

 

2

 

 

 

6

 

 

 

2

 

 

 

10

 

Asset impairment

 

 

2

 

 

 

2

 

 

 

—

 

 

 

4

 

Reserve adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee termination costs

 

 

(19

)

 

 

(31

)

 

 

1

 

 

 

(49

)

Contract termination costs

 

 

(3

)

 

 

—

 

 

 

—

 

 

 

(3

)

Asset impairment

 

 

(2

)

 

 

—

 

 

 

—

 

 

 

(2

)

Total restructuring charges

 

$

(10

)

 

$

1

 

 

$

3

 

 

$

(6

)

 
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)

 

 

 

 

Reserve at December 31, 2013

 

$

244

 

2014 charges

 

 

44

 

Reserve adjustments

 

 

(54

)

Utilization in 2014

 

 

(88

)

CTA

 

 

(19

)

Reserve at December 31, 2014

 

 

127

 

2015 charges

 

 

120

 

Reserve adjustments

 

 

(32

)

Utilization in 2015

 

 

(89

)

CTA

 

 

(10

)

Reserve at December 31, 2015

 

 

116

 

2016 charges

 

 

221

 

Reserve adjustments

 

 

(14

)

Utilization in 2016

 

 

(164

)

CTA

 

 

5

 

Reserve at December 31, 2016

 

$

164