Restructuring and Related Reorganization Charges

9 Months Ended

Sep. 30, 2020

Restructuring and Related Activities [Abstract]

Restructuring and Related Reorganization Charges

In February 2020, we committed to restructuring actions intended to simplify our businesses and improve operational efficiencies, which have resulted in headcount reductions, and, during the second and third quarter of 2020, the Company has accelerated further actions to adapt our business to the current environment. As a result, we recognized $78 million and $206 million in restructuring and related reorganization charges during the three and nine months ended September 30, 2020. Based on current plans, which are subject to change, we expect total reorganization charges in the remainder of 2020 and into 2021 of approximately $75 million. However, we continue to actively evaluate additional cost reduction efforts and should we make decisions in future periods to take further actions we will incur additional reorganization charges.

We also engaged in certain smaller scale restructure actions in 2019 to centralize and migrate certain operational functions and systems, for which we recognized $2 million and $16 million in restructuring and related reorganization charges during the three and nine months ended September 30, 2019, which were primarily related to severance and benefits.

The following table summarizes the restructuring and related reorganization activity for the nine months ended September 30, 2020:


	Employee Severance and Benefits		Other		Total
	(In millions)
Accrued liability as of January 1, 2020	$	11	$	6	$	17
Charges	195		11		206
Payments	(89)		(14)		(103)
Non-cash items	3		(3)		—
Accrued liability as of September 30, 2020	$	120	$	—	$	120