Quarterly report pursuant to Section 13 or 15(d)

TRANSFORMATION STRATEGY (Notes)

v3.19.3
TRANSFORMATION STRATEGY (Notes)
 9 Months Ended
Sep. 30, 2019
Restructuring and Related Activities [Abstract]  
TRANSFORMATION STRATEGY TRANSFORMATION STRATEGY COSTS
In the first quarter of 2018, we launched the first phase of a multi-year, enterprise-wide transformation strategy that is expected to impact our organization. Over the next few years additional phases will be implemented. The program includes investments, as well as changes in processes and technology, that impact global direct and indirect operating costs.
The table below presents the transformation strategy costs for the three and nine months ended September 30, 2019 and 2018 (in millions):
 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
 
2019
 
2018
 
2019
 
2018
Transformation Strategy Costs:
 
 
 
 
 
 
 
 
Compensation and benefits
 
$
41

 
$
70

 
$
149

 
$
262

Total other expenses
 
22

 
27

 
58

 
98

Total Transformation Strategy Costs
 
$
63

 
$
97

 
$
207

 
$
360

 
 
 
 
 
 
 
 
 
Income Tax Benefit from Transformation Strategy Costs
 
(16
)
 
(24
)
 
(50
)
 
(87
)
After Tax Transformation Strategy Costs
 
$
47

 
$
73

 
$
157

 
$
273


The income tax effects of the transformation strategy costs are calculated by multiplying the amount of the adjustments by the statutory tax rates applicable in each tax jurisdiction.