Quarterly report pursuant to Section 13 or 15(d)

TRANSFORMATION STRATEGY (Notes)

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TRANSFORMATION STRATEGY (Notes)
 6 Months Ended
Jun. 30, 2019
Restructuring and Related Activities [Abstract]  
TRANSFORMATION STRATEGY TRANSFORMATION STRATEGY
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.
During the three months ended June 30, 2019 and 2018, we recorded pre-tax charges of $21 and $263 million ($144 and $263 million year-to-date). These charges reflect other employee benefits costs of $2 and $192 million in the second quarter of 2019 and 2018 respectively ($108 and $192 million year-to-date respectively), included within "Compensation and benefits" on the statements of consolidated income, and other costs of $19 and $71 million in the second quarter of 2019 and 2018, respectively ($36 and $71 million year-to-date respectively), included within "Other expenses" in the statements of consolidated income. The after-tax transformation strategy costs totaled $17 and $200 million in the second quarter of 2019 and 2018, respectively ($110 and $200 million year-to-date, respectively). 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.