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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. 28, 2020
Jun. 30, 2019
Jun. 28, 2020
Jun. 30, 2019
Restructuring charges:        
Employee terminations $ 346 $ (166) $ 371 $ (167)
Asset impairments (8) (9) 23 0
Exit costs 1 31 1 34
Restructuring charges/(credits) [1] 340 (144) 396 (134)
Transaction costs [2] 11 0 14 0
Integration costs and other [3] 11 29 21 64
Restructuring charges and certain acquisition-related costs [4] 362 (115) 431 (69)
Additional depreciation––asset restructuring recorded in our condensed consolidated statements of income [5] 6 10 6 23
Implementation costs recorded in our condensed consolidated statements of income as follows:        
Implementation costs [6] 75 42 99 69
Total costs associated with acquisitions and cost-reduction/productivity initiatives 449 (59) 566 32
Other (income)/deductions––net [Member]        
Restructuring charges:        
Net periodic benefit costs recorded in Other (income)/deductions––net 5 4 29 10
Cost of sales [Member]        
Restructuring charges:        
Additional depreciation––asset restructuring recorded in our condensed consolidated statements of income [5] 4 7 10 15
Implementation costs recorded in our condensed consolidated statements of income as follows:        
Implementation costs [6] 11 17 21 31
Selling, informational and administrative expenses [Member]        
Restructuring charges:        
Additional depreciation––asset restructuring recorded in our condensed consolidated statements of income [5] 0 1 0 2
Implementation costs recorded in our condensed consolidated statements of income as follows:        
Implementation costs [6] 63 16 78 25
Research and development expenses [Member]        
Restructuring charges:        
Additional depreciation––asset restructuring recorded in our condensed consolidated statements of income [5] 2 2 (3) 5
Implementation costs recorded in our condensed consolidated statements of income as follows:        
Implementation costs [6] $ 1 $ 9 $ 1 $ 13
[1]
In the second quarter and first six months of 2020, restructuring charges mainly represent employee termination costs associated with our Transforming to a More Focused Company cost reduction program. 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 an IRS audit for multiple tax years. See Notes to Consolidated Financial Statements––Note 5D. Tax Matters: Tax Contingencies in our 2019 Financial Report.
The restructuring activities for 2020 are associated with the following:
For the second quarter of 2020, Biopharma ($12 million credit); Upjohn ($1 million credit); and Other ($352 million charge).
For the first six months of 2020, Biopharma ($9 million credit); Upjohn ($12 million charge); and Other ($393 million charge).
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).
Restructuring costs identified as Other are for restructuring activities associated with corporate enabling functions, WRDM, GPD and other manufacturing and commercial operations, as applicable. For the second quarter and first six months of 2020, restructuring costs identified as Other primarily relate to corporate enabling functions.
[2]
Transaction costs represent external costs for banking, legal, accounting and other similar services.
[3]
Integration costs and other represent external, incremental costs directly related to integrating acquired businesses, such as expenditures for consulting and the integration of systems and processes, and certain other qualifying costs. In the second quarter and first six months of 2020, integration costs and other were mostly related to our acquisition of Array. In the second quarter and first six months of 2019, integration costs and other 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.