XML 29 R14.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Restructuring Charges
12 Months Ended
Dec. 31, 2019
Restructuring and Related Activities [Abstract]  
Restructuring Charges Restructuring Charges
We engage in restructuring actions as part of our ongoing efforts to best use our resources and infrastructure. These actions may include severance and facility-related costs and are intended to improve our efficiency and profitability. Additionally, a portion of the restructuring charge recorded in 2019 is related to our largest customer downsizing its business with us.
Restructuring charges were recorded on our Consolidated Statements of Income as follows:
 
 
Years Ended December 31,
(In millions)
 
2019
 
2018
Cost of transportation and services
 
$
2

 
$

Direct operating expense
 
1

 
1

SG&A
 
46

 
20

Total
 
$
49

 
$
21


We recognized $21 million and $19 million of restructuring charges in the fourth quarter of 2019 and 2018, respectively. Restructuring charges for the year ended December 31, 2017 were $34 million, the majority of which was included in Sales, general and administrative expense (“SG&A”).
Our restructuring-related activity was as follows:
 
 
 
 
Year Ended December 31, 2019
 
 
(In millions)
 
Reserve Balance as of December 31, 2018
 
Charges Incurred
 
Payments
 
Foreign Exchange and Other
 
Reserve Balance as of December 31, 2019
Severance:
 
 
 
 
 
 
 
 
 
 
Transportation
 
$
9

 
$
30

 
$
(26
)
 
$
(1
)
 
$
12

Logistics
 
5

 
14

 
(8
)
 

 
11

Corporate
 
2

 
3

 
(3
)
 

 
2

Total Severance
 
16

 
47

 
(37
)
 
(1
)
 
25

Facilities:
 
 
 
 
 
 
 
 
 
 
Transportation
 

 
2

 
(2
)
 

 

Total
 
$
16

 
$
49

 
$
(39
)
 
$
(1
)
 
$
25


We expect the majority of the cash outlays under the 2019 approved plans will be substantially complete by the end of 2020.
 
 
Year Ended December 31, 2018
 
 
(In millions)
 
Charges Incurred
 
Payments
 
Reserve Balance as of December 31, 2018
Severance:
 
 
 
 
 
 
Transportation
 
$
12

 
$
(3
)
 
$
9

Logistics
 
6

 
(1
)
 
5

Corporate
 
3

 
(1
)
 
2

Total
 
$
21

 
$
(5
)
 
$
16


The majority of the cash outlays under the 2018 approved plan were substantially complete by the end of 2019.