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Note 11 – Restructuring and Asset Impairment Charges
We continue to engage in a series of restructuring programs related to downsizing our employee base, exiting
certain activities, outsourcing certain internal functions and engaging in other actions designed to reduce our cost
structure and improve productivity. These initiatives primarily consist of severance actions and impact all major
geographies and segments. Management continues to evaluate our business, therefore, in future years, there may
be additional provisions for new plan initiatives as well as changes in previously recorded estimates, as payments
are made or actions are completed. Asset impairment charges were also incurred in connection with these
restructuring actions for those assets sold, abandoned or made obsolete as a result of these programs.
Costs associated with restructuring, including employee severance and lease termination costs are generally
recognized when it has been determined that a liability has been incurred, which is generally upon communication
to the affected employees or exit from the leased facility, respectively. In those geographies where we have either a
formal severance plan or a history of consistently providing severance benefits representing a substantive plan, we
recognize employee severance costs when they are both probable and reasonably estimable.
A summary of our restructuring program activity during the three years ended December 31, 2015 is as follows:
Severance and
Related Costs
Lease Cancellation
and Other Costs
Asset
Impairments(1) Total
Balance at December 31, 2012 $ 123 $7$—$ 130
Restructuring provision 141 2 1 144
Reversals of prior accruals (29)——(29)
Net current period charges - continuing operations(2) 112 2 1 115
Discontinued operations(3) 7——7
Total Net Current Period Charges 119 2 1 122
Charges against reserve and currency (133) (2) (1) (136)
Balance at December 31, 2013 109 7 —116
Restructuring provision 143 5 7 155
Reversals of prior accruals (25)(2)—
(27)
Net current period charges - continuing operations(2) 118 3 7 128
Discontinued operations(3) 2——2
Total Net Current Period Charges 120 3 7 130
Charges against reserve and currency (136) (6) (7) (149)
Balance at December 31, 2014 93 4—97
Restructuring provision 54 4 153 211
Reversals of prior accruals (22)(3)—
(25)
Net current period charges - continuing operations(2) 32 1 153 186
Charges against reserve and currency (103)(3)
(153)(259)
Balance at December 31, 2015 $22$ 2$—$ 24
________________
(1) Charges associated with asset impairments represent the write-down of the related assets to their new cost basis and are recorded
concurrently with the recognition of the provision.
(2) Represents amount recognized within the Consolidated Statements of Income for the years shown.
(3) Refer to Note 4 - Divestitures for additional information regarding discontinued operations.
The following table summarizes the reconciliation to the Consolidated Statements of Cash Flows:
Year Ended December 31,
2015 2014 2013
Charges against reserve $(259)$ (149)$ (136)
Asset impairments 153 7 1
Effects of foreign currency and other non-cash items 89
(1)
Restructuring Cash Payments $(98)$ (133)$ (136)
The following table summarizes the total amount of costs incurred in connection with these restructuring programs
by segment:
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