Quarterly report pursuant to Section 13 or 15(d)

TRANSFORMATION COSTS

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TRANSFORMATION COSTS
 6 Months Ended
Jun. 30, 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, with the aim of right-sizing our business for the future through a workforce reduction. An accrual for separation costs of $31 and $205 million was included in our consolidated balance sheets as of June 30, 2024 and December 31, 2023, respectively, all of which we expect to pay during 2024.
The table below presents transformation costs for the three and six months ended June 30, 2024 and 2023 (in millions):
Three Months Ended
 June 30,		 Six Months Ended
 June 30,
2024 2023 2024 2023
Transformation Costs:
Compensation and benefits $ 20  $ 109  $ 51  $ 97 
Other expenses
 7  30  22  45 
Total Transformation Costs
 $ 27  $ 139  $ 73  $ 142 
Income Tax Benefit from Transformation Costs
 (6) (33) (17) (33)
After-Tax Transformation Costs
 $ 21  $ 106  $ 56  $ 109 
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.