Restructuring, Impairment and Other

9 Months Ended

Sep. 30, 2020

Restructuring and Related Activities [Abstract]

Restructuring, Impairment and Other

RESTRUCTURING, IMPAIRMENT AND OTHER

During the first quarter of 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, we recorded restructuring, impairment and other charges of $209 million and $1,637 million for the three and nine months ended September 30, 2020, respectively. Also included in the 2020 Plan are inventory impairments of $42 million and $218 million for the three and nine months ended September 30, 2020, respectively. See "Note 4. Inventories" for further discussion.

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 September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Oilfield Services	$	144	$	27	$	453	$	63
Oilfield Equipment	21		1		121		19
Turbomachinery & Process Solutions	7		10		27		39
Digital Solutions	18		—		52		12
Corporate	1		—		15		12
Total	$	191	$	38	$	668	$	145

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 September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Impairments of property, plant & equipment	$	65	$	6	$	214	$	22
Employee-related termination expenses	108		28		406		106
Contract termination fees	1		2		23		11
Other incremental costs	17		2		25		6
Total	$	191	$	38	$	668	$	145

OTHER

Other charges included in "Restructuring, impairment and other" of the condensed consolidated statements of income (loss) were $18 million and $33 million for the three months ended September 30, 2020 and 2019, respectively, and $969 million and $38 million for the nine months ended September 30, 2020 and 2019, respectively. For the nine months ended September 30, 2020, such charges consisted primarily of intangible asset impairments of $605 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, other charges of $73 million driven by certain litigation matters and impairment of an equity method investment primarily in corporate and the OFE segment, and charges of $61 million primarily related to corporate facility rationalization.