INFUSION PUMP AND BUSINESS OPTIMIZATION CHARGES (Tables)

9 Months Ended

Sep. 30, 2017

Restructuring And Related Activities [Abstract]

Business Optimization Charges

During the three and nine months ended September 30, 2017 and 2016, the company recorded the following charges related to business optimization programs.

	Three months ended				Nine months ended
	September 30,				September 30,
(in millions)	2017		2016		2017		2016
Restructuring charges, net	$	31	$	130	$	50	$	237
Costs to implement business optimization programs		21		25		58		44
Gambro integration costs		—		5		—		19
Accelerated depreciation		—		11		8		25
Total business optimization charges	$	52	$	171	$	116	$	325

Components of Restructuring Charges

During the three and nine months ended September 30, 2017 and 2016, the company recorded the following restructuring charges.

	Three months ended
	September 30, 2017
(in millions)	COGS		SGA		R&D		Total
Employee termination costs	$	7	$	24	$	—	$	31
Total restructuring charges	$	7	$	24	$	—	$	31

	Three months ended
	September 30, 2016
(in millions)	COGS			SGA			R&D			Total
Employee termination costs	$	21		$	84		$	1		$	106
Asset impairments		6		—				27			33
Reserve adjustments
Employee termination costs	—				(3	)		(2	)		(5	)
Contract termination costs		(3	)	—				(1	)		(4	)
Total restructuring charges	$	24		$	81		$	25		$	130

	Nine months ended
	September 30, 2017
(in millions)	COGS			SGA			R&D			Total
Employee termination costs	$	21		$	33		$	—		$	54
Contract termination costs		—			5			—			5
Asset impairments		5			—			—			5
Reserve adjustments
Employee termination costs		(7	)		(5	)		(2	)		(14	)
Total restructuring charges	$	19		$	33		$	(2	)	$	50

	Nine months ended
	September 30, 2016
(in millions)	COGS			SGA			R&D			Total
Employee termination costs	$	52		$	94		$	13		$	159
Contract termination costs		9			2			13			24
Asset impairments		28			—			40			68
Reserve adjustments
Employee termination costs		(1	)		(11	)		(2	)		(14	)
Total restructuring charges	$	88		$	85		$	64		$	237

Summary of Activity in Reserves related to Business Optimization Initiatives

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

(in millions)
Reserves as of December 31, 2016	$	164
Charges		59
Reserve adjustments		(14	)
Utilization		(114	)
CTA		24
Reserves as of September 30, 2017	$	119