Restructuring and Related Implementation Charges

9 Months Ended

Sep. 30, 2020

Restructuring and Related Activities [Abstract]

Restructuring and Related Implementation Charges

The Company’s restructuring program (the “Global Growth and Efficiency Program”), which commenced in the fourth quarter of 2012, concluded on December 31, 2019. Initiatives under the Global Growth and Efficiency Program fit within the program’s three focus areas of expanding commercial hubs, extending shared business services and streamlining global functions and optimizing the global supply chain and facilities.

During the three months ended September 30, 2020, the Company adjusted the accrual balances related to certain projects approved prior to the conclusion of the Global Growth and Efficiency Program to reflect its revised estimate of remaining liabilities. This adjustment resulted in a reduction of $16 ($13 after-tax), of which $3 was recorded in Selling, general and administrative expenses and $13 was recorded in Other (income) expense, net. No new restructuring projects were approved for implementation during the nine months ended September 30, 2020.

For the three and nine months ended September 30, 2019 restructuring and implementation-related charges are reflected in the income statement as follows:


	Three Months Ended		Nine Months Ended
	September 30, 2019		September 30, 2019
Cost of sales	$	1	$	9
Selling, general and administrative expenses	28		42
Other (income) expense, net	(3)		43
Non-service related postretirement costs	1		4
Total Global Growth and Efficiency Program charges, pretax	$	27	$	98

Total Global Growth and Efficiency Program charges, aftertax	$	22	$	75

Restructuring and implementation-related charges in the preceding table and the adjustment recorded in the third quarter of 2020 were recorded in the Corporate segment as these decisions were predominantly centrally directed and controlled and were not included in internal measures of segment operating performance.

The following tables summarize the activity for restructuring accrual:


	Three Months Ended September 30, 2020

Balance at June 30, 2020	$	64
Charges (Benefits)	(16)
Cash payments	(15)
Charges against assets	—
Foreign exchange	1
Other	—

Balance at September 30, 2020	$	34


	Nine Months Ended September 30, 2020

Balance at December 31, 2019	$	100
Charges (Benefits)	(16)
Cash payments	(50)
Charges against assets	—
Foreign exchange	—
Other	—

Balance at September 30, 2020	$	34