Restructuring income/costs

12 Months Ended

Dec. 31, 2024

Our accounting for employee separations is dependent upon how the particular program is designed. For voluntary programs, we recognize eligible separation costs at the time of employee acceptance unless the acceptance requires explicit approval by the company. For involuntary programs, we recognize eligible costs when management has approved the program, the affected employees have been properly notified and the costs are estimable.

Restructuring costs for 2024, 2023 and 2022 were as follows:













(Millions of dollars)	2024		2023		2022
Employee separations 1	$	64	$	74	$	77
Divestitures 1	164		586		—
Contract terminations 1	7		7		1
Long-lived asset impairments 1	6		3		6

Other 2	118		110		215
Total restructuring (income) costs	$	359	$	780	$	299

1 Recognized in Other operating (income) expenses.

2 Represents costs related to our restructuring programs, primarily for inventory write-downs, project management, equipment relocation and accelerated depreciation, all of which are primarily included in Cost of goods sold.

The restructuring costs in 2024 were related to restructuring actions across the company including the divestitures of certain non-U.S. entities. The restructuring costs in 2023 were primarily related to the divestiture of the company's Longwall business within Resource Industries. The divestiture closed on February 1, 2023 and resulted in a pre-tax loss of approximately $586 million, primarily a non-cash item driven by the release of $494 million of accumulated foreign currency translation. The restructuring costs in 2022 were primarily related to actions across the company, including $193 million related to the Rail division that was primarily inventory write-downs, and other strategic actions to address a small number of products. The inventory write-downs were included in "Other" in the table above.

In 2024, 2023 and 2022, all restructuring costs were excluded from segment profit.