Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives (Tables)

9 Months Ended

Oct. 03, 2021

Restructuring and Related Activities [Abstract]

Schedule of Acquisitions and Cost-Reduction/Productivity Initiatives

The following summarizes acquisitions and cost-reduction/productivity initiatives costs and credits, which are composed primarily of the Transforming to a More Focused Company program:
	Three Months Ended				Nine Months Ended
(MILLIONS)	October 3, 2021		September 27, 2020		October 3, 2021		September 27, 2020
Restructuring charges/(credits):
Employee terminations	$	630	$	(15)	$	649	$	340
Asset impairments	10		20		9		43
Exit costs/(credits)	3		(11)		—		(10)
Restructuring charges/(credits)(a)	643		(5)		657		374
Transaction costs(b)	—		—		—		14
Integration costs and other(c)	3		7		11		29
Restructuring charges and certain acquisition-related costs	646		2		668		417
Net periodic benefit costs/(credits) recorded in Other (income)/deductions––net(d)	(63)		—		(51)		2
Additional depreciation––asset restructuring recorded in our condensed consolidated statements of income as follows(e):
Cost of sales	23		4		64		14
Selling, informational and administrative expenses	8		—		23		—
Research and development expenses	—		—		—		(3)
Total additional depreciation––asset restructuring	31		4		87		10
Implementation costs recorded in our condensed consolidated statements of income as follows(f):
Cost of sales	8		9		29		27
Selling, informational and administrative expenses	142		36		287		114
Research and development expenses	—		1		1		2
Total implementation costs	151		47		316		142
Total costs associated with acquisitions and cost-reduction/productivity initiatives	$	764	$	52	$	1,020	$	571

(a)Primarily represents cost reduction initiatives.

(b)Represents external costs for banking, legal, accounting and other similar services.

(c)Represents 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.

(d)Amounts for the three and nine months ended September 27, 2020 include the impact of a change in accounting principle. See Note 1C.

(e)Represents the impact of changes in the estimated useful lives of assets involved in restructuring actions.

(f)Represents external, incremental costs directly related to implementing our non-acquisition-related cost-reduction/productivity initiatives.

Schedule of Components and Changes in Restructuring Accruals

The following summarizes the components and changes in restructuring accruals:
(MILLIONS)	Employee Termination Costs		Asset Impairment Charges		Exit Costs		Accrual
Balance, December 31, 2020(a)	$	782	$	—	$	15	$	798
Provision	649		9		—		657
Utilization and other(b)	(306)		(9)		(5)		(319)
Balance, October 3, 2021(c)	$	1,125	$	—	$	10	$	1,135

(a)Included in Other current liabilities ($628 million) and Other noncurrent liabilities ($169 million).

(b)Includes adjustments for foreign currency translation.

(c)Included in Other current liabilities ($860 million) and Other noncurrent liabilities ($275 million).