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

12 Months Ended

Dec. 31, 2022

Restructuring and Related Activities [Abstract]

Schedule Providing Components of Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives

The following summarizes acquisitions and cost-reduction/productivity initiatives costs and credits:
	Year Ended December 31,
(MILLIONS)	2022		2021		2020
Restructuring charges/(credits):
Employee terminations	$	776	$	680	$	474
Asset impairments	52		53		66
Exit costs/(credits)	54		8		(6)
Restructuring charges/(credits)(a)	882		741		535
Transaction costs(b)	144		20		10
Integration costs and other(c)	348		41		34
Restructuring charges and certain acquisition-related costs	1,375		802		579
Net periodic benefit costs/(credits) recorded in Other (income)/deductions––net	(9)		(63)		3
Additional depreciation––asset restructuring recorded in our consolidated statements of income as follows(d):
Cost of sales	34		63		21
Selling, informational and administrative expenses	2		23		—
Research and development expenses	—		—		(3)
Total additional depreciation––asset restructuring	36		87		17
Implementation costs recorded in our consolidated statements of income as follows(e):
Cost of sales	54		45		40
Selling, informational and administrative expenses	560		426		197
Research and development expenses	2		1		1
Total implementation costs	616		472		238
Total costs associated with acquisitions and cost-reduction/productivity initiatives	$	2,018	$	1,298	$	838

(a)Primarily represents cost reduction initiatives. Restructuring charges/(credits) associated with Biopharma: ($354 million charge in 2022, $610 million charge in 2021, and $71 million charge in 2020).

(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. 2022 costs mostly related to our acquisitions of Arena and GBT, including $138 million in payments to Arena employees in the first quarter of 2022 and $136 million in payments to GBT employees in the fourth quarter of 2022 for the fair value of previously unvested long-term incentive awards that was recognized as post-closing compensation expense. See Note 2A. 2021 costs primarily related to our acquisition of Trillium. 2020 costs primarily related to our acquisition of Array.

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

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

Schedule of Restructuring Reserve by Type of Cost

The following summarizes the components and changes in restructuring accruals:
(MILLIONS)	Employee Termination Costs		Asset Impairment Charges		Exit Costs		Accrual
Balance, January 1, 2021	$	782	$	—	$	15	$	798
Provision	680		53		8		741
Utilization and other(a)	(449)		(53)		34		(468)
Balance, December 31, 2021(b)	1,014		—		57		1,071
Provision	776		52		54		882
Utilization and other(a)	(594)		(52)		(103)		(750)
Balance, December 31, 2022(c)	$	1,196	$	—	$	8	$	1,204

(a)Includes adjustments for foreign currency translation.

(b)Included in Other current liabilities ($816 million) and Other noncurrent liabilities ($255 million).

(c)Included in Other current liabilities ($991 million) and Other noncurrent liabilities ($213 million).