Restructuring Related Activities (Tables)

9 Months Ended

Sep. 30, 2017

Restructuring and Related Cost [Line Items]

Restructuring and related costs

The following presents these costs (credits) by major type and line item within our accompanying unaudited condensed consolidated statements of operations:

Three Months Ended September 30, 2017
(in millions)	Termination Benefits		Accelerated Depreciation		Transfer Costs		Other		Total
Restructuring charges	$	11	$	—	$	—	$	1	$	12
Restructuring-related expenses:
Cost of products sold	—		—		11		—		11
Selling, general and administrative expenses	—		2		—		1		3
	—		2		11		1		14
	$	11	$	2	$	11	$	2	$	26

All charges incurred in the third quarter of 2017 were related to the 2016 Restructuring Plan.

Three Months Ended September 30, 2016
(in millions)	Termination Benefits		Transfer Costs		Fixed Asset Write-offs		Other		Total
Restructuring charges	$	1	$	—	$	2	$	2	$	5
Restructuring-related expenses:
Cost of products sold	—		8		—		—		8
Selling, general and administrative expenses	—		—		—		4		4
	—		8		—		4		12
	$	1	$	8	$	2	$	6	$	17
(in millions)	Termination Benefits		Transfer Costs		Fixed Asset Write-offs		Other		Total
2016 Restructuring Plan	$	1	$	3	$	—	$	3	$	7
2014 Restructuring Plan	—		5		2		3		10
	$	1	$	8	$	2	$	6	$	17

Nine Months Ended September 30, 2017
(in millions)	Termination Benefits		Accelerated Depreciation		Transfer Costs		Other		Total
Restructuring charges	$	14	$	—	$	—	$	3	$	17
Restructuring-related expenses:
Cost of products sold	—		—		35		—		35
Selling, general and administrative expenses	—		5		—		4		9
	—		5		35		4		44
	$	14	$	5	$	35	$	7	$	61

All charges incurred in the first nine months of2017 were related to the 2016 Restructuring Plan.

Nine Months Ended September 30, 2016
(in millions)	Termination Benefits			Accelerated Depreciation		Transfer Costs		Fixed Asset Write-offs		Other		Total
Restructuring charges	$	16		$	—	$	—	$	2	$	4	$	22
Restructuring-related expenses:
Cost of products sold	—			—		20		—		—		20
Selling, general and administrative expenses	—			4		—		—		9		13
	—			4		20		—		9		33
	$	16		$	4	$	20	$	2	$	13	$	55
(in millions)	Termination Benefits			Accelerated Depreciation		Transfer Costs		Fixed Asset Write-offs		Other		Total
2016 Restructuring Plan	$	19		$	—	$	4	$	—	$	2	$	25
2014 Restructuring Plan	(3		)	4		16		2		11		30
	$	16		$	4	$	20	$	2	$	13	$	55

Cumulative restructuring charges

(in millions)	2016 Restructuring Plan
Termination benefits	$	38
Other	7
Total restructuring charges	45
Accelerated depreciation	7
Transfer costs	50
Other	6
Restructuring-related expenses	63
	$	108

Cash payments associated with restructuring initiatives

These payments were made using cash generated from operations and are comprised of the following:

(in millions)	2016 Restructuring Plan
Nine Months Ended September 30, 2017
Termination benefits	$	12
Transfer costs	35
Other	4
	$	51
Program to Date
Termination benefits	$	20
Transfer costs	50
Other	8
	$	78

Summary of accrued expenses within accompanying unaudited condensed consolidated balance sheets

The following is a rollforward of the termination benefit liability associated with our 2016 Restructuring Plan, which is reported as a component of accrued expenses included in our accompanying unaudited condensed consolidated balance sheets:

(in millions)	2016 Restructuring Plan
Accrued as of December 31, 2016	$	16
Charges (credits)	14
Cash payments	(12		)
Accrued as of September 30, 2017	$	18

2016 Restructuring Plan [Member]

Restructuring and Related Cost [Line Items]

Restructuring and related costs

The following table provides a summary of our estimates of costs associated with the 2016 Restructuring Plan through the end of 2018 by major type of cost:

Type of cost	Total Estimated Amount Expected to be Incurred
Restructuring charges:
Termination benefits	$65 million to $75 million
Other (1)	$5 million to $15 million
Restructuring-related expenses:
Other (2)	$105 million to $135 million
	$175 million to $225 million

(1) Consists primarily of consulting fees and costs associated with contract cancellations.

(2) Comprised of other costs directly related to the 2016 Restructuring Plan, including program management, accelerated depreciation and costs to transfer product lines among facilities.