Annual report pursuant to Section 13 and 15(d)

TRANSFORMATION STRATEGY COSTS

v3.24.0.1
TRANSFORMATION STRATEGY COSTS
 12 Months Ended
Dec. 31, 2023
Restructuring and Related Activities [Abstract]  
TRANSFORMATION STRATEGY COSTS TRANSFORMATION STRATEGY 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. During the fourth quarter of 2023, we implemented 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 December 31, 2023, we recorded an accrual for separation costs, primarily related to U.S. separations, of $205 million in our consolidated balance sheet, all of which we expect to pay in 2024. We expect to incur additional expense for U.S. and international separations during 2024.
The table below presents Transformation strategy costs for the years ended December 31, 2023, 2022 and 2021 (in millions):
2023 2022 2021
Compensation and benefits $ 337  $ 46  $ 206 
Total other expenses 98  132  174 
Total Transformation Strategy Costs $ 435  $ 178  $ 380 
Income Tax Benefit from Transformation Strategy Costs (102) (36) (95)
After-Tax Transformation Strategy Costs $ 333  $ 142  $ 285 
The income tax effects of Transformation strategy costs are calculated by multiplying the amount of the adjustments by the statutory tax rates applicable in each tax jurisdiction.