v3.20.4
Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives - Costs (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Restructuring charges:      
Employee terminations $ 474 $ 108 $ 473
Asset impairments [1] 88 69 290
Exit costs/(credits) (6) 50 33
Total restructuring charges [2] 556 227 [3] 796
Transaction costs [4] 10 63 1
Integration costs [5] 34 311 260
Restructuring charges and certain acquisition-related costs 600 601 1,058
Additional depreciation - asset restructuring, virtually all of which is recorded in Cost of sales [6] 19 40 38
Implementation costs recorded in our consolidated statements of income as follows:      
Implementation costs [7] 238 156 186
Total costs associated with acquisitions and cost-reduction/productivity initiatives 896 820 1,426
Other Nonoperating Income (Expense) [Member]      
Restructuring charges:      
Net periodic benefit costs recorded in Other (income)/deductions––net 39 23 144
Cost of Sales [Member]      
Restructuring charges:      
Additional depreciation - asset restructuring, virtually all of which is recorded in Cost of sales [6] 23 29 36
Implementation costs recorded in our consolidated statements of income as follows:      
Implementation costs [7] 40 61 75
Selling, Informational and Administrative Expenses [Member]      
Restructuring charges:      
Additional depreciation - asset restructuring, virtually all of which is recorded in Cost of sales [6] 0 3 2
Implementation costs recorded in our consolidated statements of income as follows:      
Implementation costs [7] 197 73 71
Research and Development Expense [Member]      
Restructuring charges:      
Additional depreciation - asset restructuring, virtually all of which is recorded in Cost of sales [6] (3) 8 0
Implementation costs recorded in our consolidated statements of income as follows:      
Implementation costs [7] $ 1 $ 22 $ 39
[1] 2018 charges are largely for cost-reduction initiatives not associated with acquisitions.
[2] Represents acquisition-related costs ($192 million credit in 2019, and $37 million charge in 2018) and cost reduction initiatives ($556 million charge in 2020, $418 million charge in 2019, and $759 million charge in 2018). 2020 charges mainly represent employee termination costs for our Transforming to a More Focused Company cost-reduction program. 2019 restructuring charges mainly represent employee termination costs for cost-reduction and productivity initiatives, partially offset by the reversal of certain accruals related to our acquisition of Wyeth upon the effective favorable settlement of an IRS audit for multiple tax years (see Note 5B). 2018 charges were primarily related to employee termination costs and asset write downs. The employee termination costs for 2019 and 2018 were primarily for our improvements to operational effectiveness as part of the realignment of our business structure, and for 2019, also includes employee termination costs for the Transforming to a More Focused Company cost-reduction program.
[3] Includes the reversal of certain accruals related to our acquisition of Wyeth upon the favorable settlement of an IRS audit for multiple tax years. See Note 5D.
[4] Represents external costs for banking, legal, accounting and other similar services.
[5] Represents external, incremental costs directly related to integrating acquired businesses, such as expenditures for consulting and the integration of systems and processes, and certain other qualifying costs. 2020 costs primarily related to our acquisition of Array. 2019 costs mainly related to our acquisitions of Array, including $157 million in payments to Array employees for the fair value of previously unvested stock options that was recognized as post-closing compensation expense (see Note 2A), and Hospira. 2018 costs mostly related to our acquisition of Hospira.
[6] Represents the impact of changes in the estimated useful lives of assets involved in restructuring actions.
[7] Represents external, incremental costs directly related to implementing our non-acquisition-related cost-reduction/productivity initiatives.