Restructuring Charges

12 Months Ended

Dec. 31, 2023

Restructuring and Related Activities [Abstract]

Restructuring Charges

Restructuring Charges

At each reporting date, we evaluate our restructuring liabilities, which consist primarily of termination benefits, to ensure that our accruals are still appropriate. The restructuring charges for 2023 consist of $106 million for personnel related costs for specific targeted actions under new global restructuring programs, offset by an $8 million release for an earlier program. During 2022 and 2021, there were no new significant restructuring programs.

The following table presents the changes in the position of restructuring liabilities in 2023:

	Balance January 1, 2023	Additions	Utilized	Released	Other changes(1)	Balance December 31, 2023
Restructuring liabilities	20	106	(16)	(8)	(1)	101

(1)    Other changes primarily related to translation differences.

The total restructuring liability as of December 31, 2023 of $101 million is classified in the Consolidated Balance Sheets under current liabilities ($92 million) and non-current liabilities ($9 million).

The utilization of the restructuring liabilities mainly reflects the execution of ongoing restructuring programs the Company initiated in earlier years.

The following table presents the changes in the position of restructuring liabilities in 2022:

	Balance January 1, 2022	Additions	Utilized	Released	Other changes(1)	Balance December 31, 2022
Restructuring liabilities	37	1	(11)	(7)	—	20

(1)    Other changes primarily related to translation differences.

The total restructuring liability as of December 31, 2022 of $20 million is classified in the Consolidated Balance Sheets under current liabilities ($19 million) and non-current liabilities ($1 million).

The utilization of the restructuring liabilities mainly reflects the execution of ongoing restructuring programs the Company initiated in earlier years.

The components of restructuring charges recorded in 2023, 2022 and 2021 are as follows:

	2023	2022	2021
Personnel lay-off costs	104	(1)	1
Other exit costs	2	1	—
Release of provisions/accruals	(8)	(7)	—
Net restructuring charges	98	(7)	1

The restructuring charges recorded in operating income are included in the following line items in the statement of operations:

	2023	2022	2021
Cost of revenue	11	(3)	—
Research & development	59	(2)	1
Selling, general and administrative	28	(2)	—
Net restructuring charges	98	(7)	1