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

6 Months Ended

Jun. 30, 2021

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
	June 30,				June 30,
(MILLIONS OF DOLLARS)	2021		2020		2021		2020
Restructuring charges and certain acquisition-related costs:

Integration costs(a)	$	2	$	6	$	5	$	12
Restructuring charges(b):
Employee termination costs	6		2		10		5

Asset impairment charges	13		—		13		—
Exit costs	—		—		2		—
Total Restructuring charges and certain acquisition-related costs	$	21	$	8	$	30	$	17

(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 for the three and six months ended June 30, 2021 primarily represents asset impairment charges related to the consolidation of manufacturing sites in China and employee termination costs associated with cost-reduction and productivity initiatives.

The restructuring charges for the three and six months ended June 30, 2020 primarily relate to CEO transition-related costs which are associated with Manufacturing/research/corporate.



(MILLIONS OF DOLLARS)	Accrual(a)
Balance, December 31, 2020(b)	$	21
Provision	25
Non-cash activity	(13)
Utilization and other(c)	(8)

Balance, June 30, 2021(b)	$	25

(a) Changes in our restructuring accrual represents employee termination and exit costs.

(b) At June 30, 2021 and December 31, 2020, included in Accrued expenses ($10 million and $6 million, respectively) and Other noncurrent liabilities ($15 million).