Quarterly report pursuant to Section 13 or 15(d)

TRANSFORMATION STRATEGY COSTS

v3.23.2
TRANSFORMATION STRATEGY COSTS
 6 Months Ended
Jun. 30, 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 quarter, we began implementing staffing adjustment initiatives to reduce our overhead cost and better align direct labor headcount with volumes. As of June 30, 2023, we recorded an accrual for separation costs of $85 million on the consolidated balance sheet. We expect substantially all of these costs will be paid by December 31, 2023.
The table below presents transformation strategy costs for the three and six months ended June 30, 2023 and 2022 (in millions):
Three Months Ended
 June 30,		 Six Months Ended
 June 30,
2023 2022 2023 2022
Transformation Strategy Costs:
Compensation and benefits $ 109  $ 23  $ 97  $ 56 
Total other expenses 30  18  45  40 
Total Transformation Strategy Costs $ 139  $ 41  $ 142  $ 96 
Income Tax Benefit from Transformation Strategy Costs (33) (10) (33) (22)
After-Tax Transformation Strategy Costs $ 106  $ 31  $ 109  $ 74 
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.