Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives (Tables)

12 Months Ended

Dec. 31, 2019

Restructuring and Related Activities [Abstract]

Schedule of Restructuring and Related Costs

The components of, and changes in, our restructuring accruals are as follows:

	Employee
	Termination			Exit
(MILLIONS OF DOLLARS)	Costs			Costs			Accrual
Balance, December 31, 2016	$	90		$	—		$	90
Provision	10			3			13
Utilization and other(a)	(59		)	(3		)	(62		)
Balance, December 31, 2017	$	41		$	—		$	41
Provision	25			1			26
Utilization and other(a)	(21		)	(1		)	(22		)
Balance, December 31, 2018(b)	$	45		$	—		$	45
Provision	33			—			33
Utilization and other(a)	(33		)	—			(33		)
Balance, December 31, 2019(b)	$	45		$	—		$	45

^(a)  Includes adjustments for foreign currency translation.

^(b) 

At December 31, 2019 and 2018, included in Accrued Expenses ($23 million and $27 million, respectively) and Other noncurrent liabilities ($22 million and $18 million, respectively).

The components of costs incurred in connection with restructuring initiatives, acquisitions and cost-reduction/productivity initiatives are as follows:

	Year Ended December 31,
(MILLIONS OF DOLLARS)	2019		2018		2017
Restructuring charges and certain acquisition-related costs:
Integration costs(a)	$	18	$	21	$	6
Transaction costs(b)	—		21		—
Restructuring charges(c)(d):
Employee termination costs/(reversals)	33		25		10
Exit costs	—		1		3
Total Restructuring charges and certain acquisition-related costs	$	51	$	68	$	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)  Transaction costs represent external costs directly related to acquiring businesses and primarily include expenditures for banking, legal, accounting and other similar services.

^(c)  The restructuring charges for the year ended December 31, 2019, are primarily related to the acquisition of Abaxis and CEO transition-related costs.

The restructuring charges for the year ended December 31, 2018, are primarily related to:

• employee termination costs of $7 million in Europe as a result of initiatives to better align our organizational structure;

• employee termination costs of $21 million related to the acquisition of Abaxis; and

• a net reversal of employee termination costs of $3 million, and exit costs of $1 million as a result of our operational efficiency initiative and supply network strategy initiative launched in 2015.

The restructuring charges for the year ended December 31, 2017, are primarily related to:

• a net increase in employee termination costs of $2 million related to the operational efficiency initiative and supply network strategy initiative launched in 2015;

• employee termination costs of $4 million related to the acquisition of an Irish biologic therapeutics company in the third quarter of 2017, and

• employee termination costs of $4 million in Europe, as a result of initiatives to better align our organizational structure.     

^(d)  The restructuring charges are associated with the following:

• For the year ended December 31, 2019, International of $2 million and Manufacturing/research/corporate of $31 million.

• For the year ended December 31, 2018, International of $7 million, and Manufacturing/research/corporate of a $19 million.

•

For the year ended December 31, 2017 International of $2 million, and Manufacturing/research/corporate of a $11 million.