Restructuring Charges and Other Costs Associated with Acquisitions and Divestitures

6 Months Ended

Jun. 30, 2025

Restructuring and Related Activities [Abstract]

Restructuring Charges and Other Costs Associated with Acquisitions and Divestitures

6. Restructuring Charges and Other Costs Associated with Acquisitions and Divestitures

In connection with our cost-reduction/productivity initiatives, we typically incur restructuring charges associated with workforce reductions and site closings. In connection with our acquisition and divestiture activities, we typically incur costs associated with executing the transactions. Acquisition activity may also include integrating the acquired operations, which may include expenditures for consulting and the integration of systems and processes, product transfers and restructuring the company, which may include charges related to employees, assets and activities that will not continue in the company. Divestiture activity may also include costs to separate the divested operations, which may include expenditures for consulting and the disintegration of systems and processes, transfer costs, and restructuring charges which may include charges related to employees, assets and activities that will not continue in the company's ongoing operations. All operating functions can be impacted by these actions, including sales and marketing, manufacturing and R&D, as well as functions such as business technology, shared services and corporate operations.

The components of costs incurred in connection with restructuring initiatives, acquisitions and divestitures are as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(MILLIONS OF DOLLARS)	2025		2024		2025		2024
Restructuring charges and certain acquisition and divestiture-related costs:
Acquisition-related costs	$	1	$	1	$	1	$	1
Divestiture-related costs	—		4		—		4
Restructuring charges, net(a):
Employee termination costs, net	5		37		$	5	$	41
Asset impairment charges	22		—		22		—
Exit costs	2		—		2		—
Total Restructuring charges and certain acquisition and divestiture-related costs	$	30	$	42	$	30	$	46

(a) Restructuring charges for the three and six months ended June 30, 2025 primarily consisted of asset impairment charges and employee termination costs related to a transition from internal to external innovation and manufacturing of certain products and the closure of a related site.

Restructuring charges for the three and six months ended June 30, 2024 primarily consisted of employee termination costs related to organizational structure refinements. Restructuring charges for the six months ended June 30, 2024 were partially offset by a reversal of certain employee termination costs as a result of a change in strategy from our 2015 operational efficiency initiative.

The change in our restructuring accrual is as follows:

(MILLIONS OF DOLLARS)	Accrual
Balance, December 31, 2024(a)	$	28
Provision	29
Non-cash activity	(22)
Utilization and other(b)	(15)
Balance, June 30, 2025(a)	$	20

(a)    At June 30, 2025 and December 31, 2024, included in Accrued expenses ($18 million and $26 million, respectively) and Other noncurrent liabilities ($2 million).

(b)     Includes adjustments for foreign currency translation.