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Restructuring
 9 Months Ended
Sep. 29, 2019
Restructuring and Related Activities [Abstract]  
Restructuring RESTRUCTURING

On April 17, 2018, the Company announced plans to implement a series of actions across its Global Supply Chain that are intended to focus resources and increase investments in the critical capabilities, technologies and solutions necessary to manufacture and supply its product portfolio, enhance agility and drive growth. The Global Supply Chain actions will include expanding the use of strategic collaborations and bolstering initiatives to reduce complexity, improve cost-competitiveness, enhance capabilities and optimize the Supply Chain network. For additional details on the global supply chain restructuring strategic collaborations see Note 10 to the Consolidated Financial Statements. In the fiscal third quarter of 2019, the Company recorded a pre-tax charge of $128 million, of which $20 million was included in cost of products sold and $39 million was included in other (income) expense. In the fiscal nine months of 2019, the Company recorded a pre-tax charge of $360 million, of which $81 million was included in cost of products sold and $117 million was included in other (income) expense. Total project costs of approximately $598 million have been recorded since the restructuring was announced. See the following table for additional details on the restructuring program.

In total, the Company expects these actions to generate approximately $0.6 billion to $0.8 billion in annual pre-tax cost savings that will be substantially delivered by 2022. The Company expects to record pre-tax restructuring charges of approximately $1.9 billion to $2.3 billion, over the 4 to 5 year period of this activity. These costs are associated with network optimizations, exit costs and accelerated depreciation and amortization.   

The following table summarizes the severance related reserves and the associated spending through the fiscal nine months of 2019:
(Dollars in Millions)
Severance
Asset Write-offs
Other**
Total
Reserve balance, December 30, 2018
$
194

—

48

242

 
 
 
 
 
Current year activity:




   Charges
—

81

279

360

   Cash payments
(14
)
—

(302
)
(316
)
   Settled non cash
—

(81
)
—

(81
)
 
 
 
 
 
Reserve balance, September 29, 2019*
$
180

—

25

205

 
 
 
 
 
*Cash outlays for severance are expected to be substantially paid out over the next 2 years in accordance with the Company's plans and local laws.
**Other includes project expense such as salaries for employees supporting the initiative and consulting expenses.