XML 91 R24.htm IDEA: XBRL DOCUMENT v3.20.1
Restructuring, Impairment and Other
 3 Months Ended
Mar. 31, 2020
Restructuring and Related Activities [Abstract]  
Restructuring, Impairment and Other RESTRUCTURING, IMPAIRMENT AND OTHER
During the three months ended March 31, 2020, in response to the impact on our business from the COVID-19 pandemic and the significant decline in oil and gas prices, we approved a plan of $1.8 billion (the 2020 Plan) primarily associated with rationalizing certain product lines and restructuring our business, which is designed to, among other things, right-size our operations for anticipated activity levels and market conditions. As a result, during the three months ended March 31, 2020, we recorded restructuring, impairment and other charges of $1,325 million and inventory impairments of $160 million. See "Note 4. Inventories" for further discussion. Almost all of the remaining charges associated with the 2020 Plan are expected to be recorded in the second or third quarter of 2020. These initiatives could generate additional charges in future periods as the 2020 Plan comes to completion.
RESTRUCTURING AND IMPAIRMENT
The following table presents restructuring and impairment charges by the impacted segment, however, these charges are not included in the reported segment results:
Three Months Ended March 31,
20202019
Oilfield Services$296  $17  
Oilfield Equipment98  18  
Turbomachinery & Process Solutions8  19  
Digital Solutions24  3  
Corporate9  5  
Total$435  $62  
Restructuring and impairment charges were primarily related to employee termination expenses from reducing our headcount in certain geographical locations, and product line rationalization, including plant closures and related expenses such as property, plant & equipment impairments and contract termination fees. Details of these charges are as follows:
Three Months Ended March 31,
20202019
Impairments of property, plant & equipment$141  $9  
Employee-related termination expenses272  44  
Contract termination fees21  7  
Other incremental costs1  2  
Total$435  $62  
OTHER
During the three months ended March 31, 2020, we recorded other charges totaling $890 million. These charges are comprised of intangible asset impairments of $601 million driven by our decision to exit certain businesses primarily in our OFS segment, other long-lived asset impairments of $216 million ($124 million of intangible assets, $77 million of property, plant and equipment and $15 million of other assets) in our OFE segment and other charges of $73 million driven by certain litigation matters and impairment of an equity method investment primarily in corporate and the OFE segment.