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Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives (Tables)
 6 Months Ended
Jul. 02, 2017
Restructuring and Related Activities [Abstract]  
Restructuring and Related Costs
The components of costs incurred in connection with restructuring initiatives, acquisitions and cost-reduction/productivity initiatives are as follows:
 
 
Three Months Ended
 
Six Months Ended
 
 
July 2,

 
July 3,

 
July 2,

 
July 3,

(MILLIONS OF DOLLARS)
 
2017

 
2016

 
2017

 
2016

Restructuring charges/(reversals) and certain acquisition-related costs:
 
 
 
 
 
 
 
 
Integration costs(a)
 
$
2

 
$
2

 
$
2

 
$
2

Restructuring charges/(reversals)(b):
 
 
 
 
 
 
 
 
Employee termination costs
 
(3
)
 
(24
)
 
(4
)
 
(23
)
Exit costs
 
1

 
1

 
1

 
2

Total Restructuring charges/(reversals) and certain acquisition-related costs
 
$
—

 
$
(21
)
 
$
(1
)
 
$
(19
)
(a) 
Integration costs represent external, incremental costs directly related to integrating acquired businesses and primarily include expenditures for consulting and the integration of systems and processes, as well as product transfer costs.
(b) 
The restructuring charges/(reversals) for the three months ended July 2, 2017, are associated with the following: U.S. ($1 million reversal), International ($1 million) and Manufacturing/research/corporate ($2 million reversal).
The restructuring charges/(reversals) for the six months ended July 2, 2017, are associated with the following: International ($1 million reversal) and Manufacturing/research/corporate ($2 million reversal).
The restructuring charges/(reversals) for the three months ended July 3, 2016, are associated with the following: U.S. ($1 million reversal), International ($14 million reversal) and Manufacturing/research/corporate ($8 million reversal).
The restructuring charges/(reversals) for the six months ended July 3, 2016, are associated with the following: U.S. ($2 million reversal), International ($15 million reversal) and Manufacturing/research/corporate ($4 million reversal).
Charges related to the operational efficiency initiative and supply network strategy are as follows:
 
 
Three Months Ended
 
Six Months Ended
 
 
July 2,

 
July 3,

 
July 2,

 
July 3,

(MILLIONS OF DOLLARS)
 
2017

 
2016

 
2017

 
2016

Restructuring charges/(reversals) and certain acquisition-related costs:
 
 
 
 
 
 
 
 
Operational efficiency initiative
 
 
 
 
 
 
 
 
Employee termination costs(a)
 
$
2

 
$
(30
)
 
$
1

 
$
(29
)
Exit costs
 
1

 
2

 
1

 
3

 
 
3

 
(28
)
 
2

 
(26
)
Supply network strategy:
 
 
 
 
 
 
 
 
Employee termination costs
 
(5
)
 
6

 
(5
)
 
6

 
 
(5
)
 
6

 
(5
)
 
6

 
 
 
 
 
 
 
 
 
Total restructuring charges/(reversals) related to the operational efficiency initiative and supply network strategy
 
(2
)
 
(22
)
 
(3
)
 
(20
)
 
 
 
 
 
 
 
 
 
Other operational efficiency initiative charges
 
 
 
 
 
 
 
 
    Selling, general and administrative expenses:
 
 
 
 
 
 
 
 
        Accelerated depreciation
 
—

 
1

 
—

 
1

        Consulting fees
 
1

 
4

 
1

 
7

    Other (income)/deductions—net:
 
 
 
 
 
 
 
 
        Net loss/(gain) on sale of assets(b)
 
2

 
6

 
2

 
(27
)
Total other operational efficiency initiative charges
 
3

 
11

 
3

 
(19
)
 
 
 
 
 
 
 
 
 
Other supply network strategy charges
 
 
 
 
 
 
 
 
    Cost of sales:
 
 
 
 
 
 
 
 
        Accelerated depreciation
 
1

 
1

 
2

 
2

        Consulting fees
 
—

 
1

 
2

 
3

Total other supply network strategy charges
 
1

 
2

 
4

 
5

 
 
 
 
 
 
 
 
 
Total charges associated with the operational efficiency initiative and supply network strategy
 
$
2

 
$
(9
)
 
$
4

 
$
(34
)

(a) 
For the three and six months ended July 3, 2016, includes a reduction in employee termination accruals primarily as a result of higher than expected voluntary attrition rates experienced in the first half of 2016.
(b) 
For the three months ended July 3, 2016, primarily represents the net loss on the sale of our share of our Taiwan joint venture as part of our operational efficiency initiative. For the six months ended July 3, 2016, represents the net gain on the sale of certain manufacturing sites and products, partially offset by the loss on the sale of our share of our Taiwan joint venture, as part of our operational efficiency initiative.
The components of, and changes in, our restructuring accruals are as follows:
 
 
Employee

 
 
 
 
 
 
Termination

 
Exit

 
 
(MILLIONS OF DOLLARS)
 
Costs

 
Costs

 
Accrual(a)

Balance, December 31, 2016(a)
 
$
90

 
$
—

 
$
90

Provision
 
(4
)
 
1

 
(3
)
Utilization and other(b)
 
(36
)
 
(1
)
 
(37
)
Balance, July 2, 2017(a)
 
$
50

 
$
—

 
$
50

(a) 
At July 2, 2017, and December 31, 2016, included in Accrued expenses ($29 million and $61 million, respectively) and Other noncurrent liabilities ($21 million and $29 million, respectively).
(b) 
Includes adjustments for foreign currency translation.