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Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives (Detail) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jul. 01, 2018
Jul. 02, 2017
Jul. 01, 2018
Jul. 02, 2017
Restructuring charges:        
Employee terminations $ (21) $ (27) $ (29) $ (57)
Asset impairments (6) 0 (4) 24
Exit costs 3 4 0 6
Restructuring credits [1] (24) (23) (33) (27)
Transaction costs [2] 0 6 0 18
Integration costs [3] 68 86 120 163
Restructuring charges and certain acquisition-related costs [4] 44 70 87 153
Additional depreciation––asset restructuring recorded in Cost of sales: [5] 13 21 31 35
Implementation costs recorded in our condensed consolidated statements of income as follows:        
Implementation costs [6] 44 62 82 93
Total costs associated with acquisitions and cost-reduction/productivity initiatives 131 153 262 356
Other (Income)/Deductions, Net [Member]        
Restructuring charges:        
Net periodic pension and postretirement benefit costs recorded in Other (income)/deductions––net [7] 29 1 61 74
Cost of Sales [Member]        
Implementation costs recorded in our condensed consolidated statements of income as follows:        
Implementation costs [6] 20 36 36 51
Selling, Informational and Administrative Expenses [Member]        
Implementation costs recorded in our condensed consolidated statements of income as follows:        
Implementation costs [6] 16 15 34 24
Research and Development Expense [Member]        
Implementation costs recorded in our condensed consolidated statements of income as follows:        
Implementation costs [6] $ 7 $ 11 $ 13 $ 17
[1] In the three and six months ended July 1, 2018, restructuring credits are associated with cost-reduction and productivity initiatives not associated with acquisitions, as well as acquisition-related costs, primarily associated with Hospira. In the three and six months ended July 2, 2017, restructuring credits are largely associated with cost-reduction and productivity initiatives not associated with acquisitions, partially offset by charges related to our acquisition of mainly Anacor in the second quarter of 2017, and mainly Anacor and Medivation in the first six months of 2017. In the three and six months ended July 1, 2018, Employee terminations primarily include revisions of our estimates of severance benefits. Employee termination costs are generally recorded when the actions are probable and estimable and include accrued severance benefits, many of which may be paid out during periods after termination.The restructuring activities for 2018 are associated with the following:•For the second quarter of 2018, IH ($12 million income); EH ($2 million); manufacturing operations ($13 million); and Corporate ($26 million income).•For the first six months of 2018, IH ($12 million income); EH ($12 million income); WRD/GPD ($2 million income); manufacturing operations ($15 million); and Corporate ($22 million income).The restructuring activities for 2017 are associated with the following:•For the second quarter of 2017, IH ($8 million income); EH ($7 million); WRD/GPD ($14 million income); manufacturing operations ($8 million income); and Corporate ($1 million).•For the first six months of 2017, IH ($1 million income); EH ($11 million income); WRD/GPD ($26 million income); manufacturing operations ($9 million); and Corporate ($3 million).
[2] Transaction costs represent external costs for banking, legal, accounting and other similar services, virtually all of which for the second quarter and first six months of 2017 were directly related to our acquisition of Medivation.
[3] Integration costs represent external, incremental costs directly related to integrating acquired businesses, and primarily include expenditures for consulting and the integration of systems and processes. In the second quarter and first six months of 2018, integration costs were primarily related to our acquisition of Hospira. In the second quarter and first six months of 2017, integration costs were primarily related to our acquisitions of Hospira and Medivation, including a net gain of $12 million related to the settlement of the Hospira U.S. qualified defined benefit pension plan (see Note 10).
[4] Amounts may not add due to rounding.
[5] Additional depreciation––asset restructuring represents the impact of changes in the estimated useful lives of assets involved in restructuring actions.
[6] Implementation costs represent external, incremental costs directly related to implementing our non-acquisition-related cost-reduction/productivity initiatives.
[7] In the three and six months ended July 1, 2018, primarily represents the net pension curtailments and settlements included in Other (income)/deductions––net upon the adoption of a new accounting standard in the first quarter of 2018. In the three and six months ended July 2, 2017, primarily represents the net pension curtailments and settlements, partially offset by net periodic benefit credits, excluding service costs, related to our acquisition of Hospira, both of which were reclassified to Other (income)/deductions––net as a result of the retrospective adoption of a new accounting standard in the first quarter of 2018. These credits included a net settlement gain, partially offset by accelerated amortization of actuarial losses and prior service costs upon the settlement of the remaining obligation associated with the Hospira U.S. qualified defined benefit pension plan. For additional information, see Note 1B and Note 10.