Quarterly report pursuant to Section 13 or 15(d)

TRANSFORMATION COSTS

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TRANSFORMATION COSTS
 3 Months Ended
Mar. 31, 2024
Restructuring and Related Activities [Abstract]  
TRANSFORMATION COSTS TRANSFORMATION COSTS
We are undertaking an enterprise-wide transformation of our organization that includes initiatives, as well as changes in processes and technology, that impact global direct and indirect operating costs. In 2023, we announced our "fit to serve" initiative, which is intended to right-size our business for the future through a workforce reduction of approximately 12,000 positions and create a more efficient operating model to enhance responsiveness to changing market dynamics. As of March 31, 2024 and December 31, 2023, an accrual for separation costs of $87 and $205 million, respectively, was included in our consolidated balance sheets, all of which we expect to pay during 2024.
The table below presents transformation costs for the three months ended March 31, 2024 and 2023 (in millions):
Three Months Ended
 March 31,
2024 2023
Transformation Costs:
Compensation and benefits $ 31  $ (12)
Other expenses
 15  15 
Total Transformation Costs
 $ 46  $ 3 
Income Tax Benefit from Transformation Costs
 (11) — 
After-Tax Transformation Costs
 $ 35  $ 3 
The income tax effects of transformation costs are calculated by multiplying the amount of the adjustments by the statutory tax rates applicable in each tax jurisdiction.