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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
Jun. 30, 2019
Jul. 01, 2018
Jun. 30, 2019
Jul. 01, 2018
Restructuring charges:        
Employee terminations $ (166) $ (21) $ (167) $ (29)
Asset impairments (9) (6) 0 (4)
Exit costs 31 3 34 0
Restructuring charges/(credits) [1] (144) (24) (134) [2] (33)
Integration costs [3] 29 68 64 120
Restructuring charges and certain acquisition-related costs [4] (115) 44 (69) 87
Additional depreciation––asset restructuring recorded in our condensed consolidated statements of income [5] 10 13 23 31
Implementation costs recorded in our condensed consolidated statements of income as follows:        
Implementation costs [6] 42 44 69 82
Total costs associated with acquisitions and cost-reduction/productivity initiatives (59) 131 32 262
OID [Member]        
Restructuring charges:        
Net periodic pension and postretirement benefit costs recorded in Other (income)/deductions––net 4 29 10 61
Cost of Sales [Member]        
Restructuring charges:        
Additional depreciation––asset restructuring recorded in our condensed consolidated statements of income [5] 7 13 15 30
Implementation costs recorded in our condensed consolidated statements of income as follows:        
Implementation costs [6] 17 20 31 36
Selling, Informational and Administrative Expenses [Member]        
Restructuring charges:        
Additional depreciation––asset restructuring recorded in our condensed consolidated statements of income [5] 1 0 2 0
Implementation costs recorded in our condensed consolidated statements of income as follows:        
Implementation costs [6] 16 16 25 34
Research and Development Expense [Member]        
Restructuring charges:        
Additional depreciation––asset restructuring recorded in our condensed consolidated statements of income [5] 2 0 5 0
Implementation costs recorded in our condensed consolidated statements of income as follows:        
Implementation costs [6] $ 9 $ 7 $ 13 $ 13
[1]
In the second quarter and first six months of 2019, restructuring credits mostly represent the reversal of certain accruals related to our acquisition of Wyeth upon the effective favorable settlement of a U.S. IRS audit for multiple tax years (see Note 5B). In the three and six months ended July 1, 2018, restructuring credits were associated with cost-reduction and productivity initiatives not associated with acquisitions, as well as acquisition-related costs, primarily associated with Hospira.
The restructuring activities for 2019 are associated with the following:
For the second quarter of 2019, Biopharma ($62 million credit); Upjohn ($9 million credit); and Other ($74 million credit).
For the first six months of 2019, Biopharma ($48 million credit); Upjohn ($22 million credit); and Other ($63 million credit).
The restructuring activities for 2018 are associated with the following:
For the second quarter of 2018, total reportable segments ($10 million credit); and Other ($13 million credit).
For the first six months of 2018, total reportable segments ($24 million credit); and Other ($9 million credit). At the beginning of fiscal 2019, we revised our operating segments and are unable to directly associate these prior-period restructuring charges with the new individual segments.
[2]
Includes the reversal of certain accruals related to our acquisition of Wyeth upon the effective favorable settlement of a U.S. IRS audit for multiple tax years. See Note 5B for additional information.
[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 2019 and 2018, integration costs were primarily related to our acquisition of Hospira.
[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.