Restructuring (Tables)

9 Months Ended

Sep. 30, 2012

The following tables summarize the charges related to Merger Restructuring Program and 2008 Restructuring Program activities by type of cost:


	Three Months Ended September 30, 2012										Nine Months Ended September 30, 2012
($ in millions)	Separation Costs			Accelerated Depreciation			Other		Total		Separation Costs			Accelerated Depreciation		Other		Total


Merger Restructuring Program

Materials and production	$	-		$	42		$	13	$	55	$	-		$	75	$	50	$	125
Marketing and administrative		-			16			3		19		-			59		5		64
Research and development		-			(33	) ⁽¹⁾		1		(32)		-			49		5		54
Restructuring costs		59			-			49		108		363			-		112		475

		59			25			66		150		363			183		172		718


2008 Restructuring Program

Materials and production		-			1			4		5		-			4		15		19
Marketing and administrative		-			6			-		6		-			6		-		6
Restructuring costs		(1	)		-			3		2		(12	)		-		10		(2)

		(1	)		7			7		13		(12	)		10		25		23

	$	58		$	32		$	73	$	163	$	351		$	193	$	197	$	741


	Three Months Ended September 30, 2011									Nine Months Ended September 30, 2011
($ in millions)	Separation Costs		Accelerated Depreciation		Other			Total		Separation Costs			Accelerated Depreciation		Other			Total


Merger Restructuring Program

Materials and production	$	-	$	81	$	7		$	88	$	-		$	233	$	12		$	245
Marketing and administrative		-		22		9			31		-			67		10			77
Research and development		-		27		1			28		-			107		(18	)		89
Restructuring costs		63		-		45			108		670			-		95			765

		63		130		62			255		670			407		99			1,176


2008 Restructuring Program

Materials and production		-		10		(1	)		9		-			16		1			17
Restructuring costs		5		-		6			11		(3	)		-		11			8

		5		10		5			20		(3	)		16		12			25

	$	68	$	140	$	67		$	275	$	667		$	423	$	111		$	1,201

⁽¹⁾

In the third quarter of 2012, the Company recorded an adjustment to accelerated depreciation costs included in research and development expenses revising previously recorded amounts for certain facilities.

Charges and Spending Relating to Merger Restructuring Program and 2008 Restructuring Program Activities

The following table summarizes the charges and spending relating to Merger Restructuring Program and 2008 Restructuring Program activities for the nine months ended September 30, 2012:


($ in millions)	Separation Costs		Accelerated Depreciation		Other		Total


Merger Restructuring Program


Restructuring reserves January 1, 2012	$	1,144	$	-	$	51	$	1,195
Expense		363		183		172		718
(Payments) receipts, net		(742)		-		(131)		(873)
Non-cash activity		-		(183)		(74)		(257)

Restructuring reserves September 30, 2012 ⁽¹⁾	$	765	$	-	$	18	$	783


2008 Restructuring Program


Restructuring reserves January 1, 2012	$	126	$	-	$	-	$	126
Expense		(12)		10		25		23
(Payments) receipts, net		(19)		-		(8)		(27)
Non-cash activity		-		(10)		(17)		(27)

Restructuring reserves September 30, 2012 ⁽¹⁾	$	95	$	-	$	-	$	95

⁽¹⁾

The cash outlays associated with the Merger Restructuring Program are expected to be substantially completed by the end of 2013 with the exception of certain actions, principally manufacturing-related, which are expected to be substantially completed by 2016. The cash outlays associated with the remaining restructuring reserves for the 2008 Restructuring Program are primarily manufacturing-related and are expected to be completed by the end of 2015.

- Definition

Tabular disclosure of restructuring and related costs by type of restructuring including the description of the restructuring costs, such as the expected cost; the costs incurred during the period; the cumulative costs incurred as of the balance sheet date; the income statement caption within which the restructuring charges recognized for the period are included; and changes to an entity's restructuring reserve that occurred during the period associated with the exit from or disposal of business activities or restructurings for each major type of cost.

+ References+ Details

- Definition

Tabular disclosure of an entity's restructuring reserve that occurred during the period associated with the exit from or disposal of business activities or restructurings for each major type of cost. This element may also include a description of any reversal and other adjustment made during the period to the amount of an accrued liability for restructuring activities. This element may be used to encapsulate the roll forward presentations of an entity's restructuring reserve by type of cost and in total, and explanation of changes that occurred in the period.

+ References+ Details