Annual report pursuant to Section 13 and 15(d)

RESTRUCTURING AND OTHER CHARGES

v3.20.4
RESTRUCTURING AND OTHER CHARGES
 12 Months Ended
Dec. 31, 2020
Restructuring and Related Activities [Abstract]  
Restructuring and Related Activities Disclosure
NOTE 21. RESTRUCTURING ACTIONS
In November 2019, we announced our intentions to reduce our global workforce in response to the continued deterioration in our global markets in the second half of 2019, as well as expected reductions in orders in most U.S. and international markets in 2020. In the fourth quarter of 2019, we began executing restructuring actions, primarily in the form of voluntary and involuntary employee separation programs. To the extent these programs involved voluntary separations, a liability was recorded at the time offers to employees were accepted. To the extent these programs provided separation benefits in accordance with pre-existing agreements or policies, a liability was recorded once the amount was probable and reasonably estimable. We incurred a charge of $119 million ($90 million after-tax) in the fourth quarter of 2019 for these actions which impacted approximately 2,300 employees. The voluntary actions were completed by December 31, 2019 and the involuntary actions were completed by June 28, 2020.
Restructuring actions were included in our segment and non-segment operating results as follows:
In millions Year ended December 31, 2019
Engine $ 18 
Distribution 37 
Components 20 
Power Systems 12 
New Power 1 
Non-segment 31 
Restructuring actions $ 119 
The table below summarizes the activity and balance of accrued restructuring, which is included in "Other accrued expenses" in our Consolidated Balance Sheets:
In millions Restructuring Accrual
Workforce reductions $ 119 
Cash payments (4)
Foreign currency loss 1 
Balance at December 31, 2019 116 
Cash payments (110)
Change in estimate (4)
Foreign currency gain (1)
Balance at December 31, 2020 $ 1