v3.10.0.1
Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives - Costs (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Restructuring charges:      
Employee terminations $ 459 $ (181) $ 839
Asset impairments [1] 290 190 142
Exit costs 33 21 74
Total restructuring charges/(credits) [2] 782 30 1,055
Transaction costs [3] 1 4 127
Integration costs [4] 260 317 383
Restructuring charges and certain acquisition-related costs [5] 1,044 351 1,565
Additional depreciation - asset restructuring, virtually all of which is recorded in Cost of sales [6] 50 91 207
Implementation costs recorded in our consolidated statements of income as follows:      
Implementation costs [7] 194 227 340
Total costs associated with acquisitions and cost-reduction/productivity initiatives 1,434 805 2,271
Other Nonoperating Income (Expense) [Member]      
Restructuring charges:      
Net periodic benefit costs recorded in Other (income)/deductions––net [8] 146 136 159
Cost of Sales [Member]      
Implementation costs recorded in our consolidated statements of income as follows:      
Implementation costs [7] 83 118 230
Selling, Informational and Administrative Expenses [Member]      
Implementation costs recorded in our consolidated statements of income as follows:      
Implementation costs [7] 72 71 81
Research and Development Expense [Member]      
Implementation costs recorded in our consolidated statements of income as follows:      
Implementation costs [7] 39 38 25
Other (income)/deductions - net [Member]      
Implementation costs recorded in our consolidated statements of income as follows:      
Implementation costs [7] $ 0 $ 0 $ 3
[1] The asset impairment charges for 2018 are largely associated with cost reduction initiatives not associated with acquisitions. The asset impairment charges for 2017 are largely associated with our acquisitions of Hospira and Medivation. The asset impairment charges included in restructuring charges for 2017 and 2016 are primarily associated with abandoned assets. See (b) below for additional information.
[2] In 2018, restructuring charges were primarily related to employee termination costs and asset write downs. The employee termination costs are associated with our improvements to operational effectiveness as part of the realignment of our organizational structure effective at the beginning of 2019. In 2017, restructuring charges are primarily associated with our acquisitions of Hospira and Medivation, partially offset by credits associated with cost-reduction and productivity initiatives not associated with acquisitions that mostly related to the reversal of previously recorded accruals for employee termination costs resulting from revisions of our severance benefit estimates. In 2016, restructuring charges are largely associated with cost-reduction and productivity initiatives not associated with acquisitions, as well as our acquisitions of Hospira and Medivation. Employee termination costs are generally recorded when the actions are probable and estimable and include accrued severance benefits, pension and postretirement benefits, many of which may be paid out during periods after termination.The restructuring activities in 2018 are associated with the following:•IH ($176 million charge); EH ($31 million charge); WRD/GPD ($135 million charge); manufacturing operations ($403 million charge); and Corporate ($38 million charge).The restructuring activities in 2017 are associated with the following:•IH ($83 million credit); EH ($6 million credit); WRD/GPD ($19 million charge); manufacturing operations ($89 million charge); and Corporate ($12 million charge), The restructuring activities in 2016 are associated with the following:•IH ($255 million charge); EH ($155 million charge); WRD/GPD ($145 million charge); manufacturing operations ($328 million charge); and Corporate ($172 million charge).
[3] Transaction costs represent external costs for banking, legal, accounting and other similar services, which in 2017 were directly related to our acquisitions of Hospira, Anacor and Medivation.Transaction costs in 2016 were mostly related to our acquisitions of Medivation and Anacor, and the terminated transaction with Allergan.
[4] Integration costs represent external, incremental costs directly related to integrating acquired businesses, and primarily include expenditures for consulting and the integration of systems and processes. In 2018, integration costs were primarily related to our acquisition of Hospira. In 2017, integration costs primarily related to our acquisitions of Hospira and Medivation, as well as a net gain of $12 million related to the settlement of the Hospira U.S. qualified defined benefit pension plan (see Note 11). In 2016, integration costs primarily related to our acquisition of Hospira and the terminated transaction with Allergan.
[5] Amounts may not add due to rounding.
[6] Additional depreciation––asset restructuring represents the impact of changes in the estimated useful lives of assets involved in restructuring actions.
[7] Implementation costs represent external, incremental costs directly related to implementing our non-acquisition-related cost-reduction/productivity initiatives.
[8] In 2018, primarily represents the net pension curtailments and settlements included in Other (income)/deductions––net upon the adoption of a new accounting standard in the first quarter of 2018. In 2017, primarily represents the net pension curtailments and settlements, partially offset by net periodic benefit credits, excluding service costs, related to our acquisition of Hospira, both of which were reclassified to Other (income)/deductions––net as a result of the retrospective adoption of a new accounting standard in the first quarter of 2018. These credits included a net settlement gain, partially offset by accelerated amortization of actuarial losses and prior service costs upon the settlement of the remaining obligation associated with the Hospira U.S. qualified defined benefit pension plan. In 2016, primarily represents the net pension curtailments and settlements as well as the accelerated amortization of unrecognized loss and prior service costs related to our acquisition of Hospira, which were reclassified to Other (income)/deductions––net as a result of the retrospective adoption of a new accounting standard in the first quarter of 2018. For additional information, see Note 1B and Note 11.