Quarterly report pursuant to Section 13 or 15(d)

TRANSFORMATION STRATEGY COSTS

v3.23.3
TRANSFORMATION STRATEGY COSTS
 9 Months Ended
Sep. 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 third quarter of 2023, we reduced staff to better align direct headcount with volumes. As of September 30, 2023, we recorded an accrual for separation costs of $90 million on the consolidated balance sheet. We currently expect approximately $26 million to be paid by December 31, 2023 and the remainder to be paid during the first quarter of 2024.
The table below presents transformation strategy costs for the three and nine months ended September 30, 2023 and 2022 (in millions):
Three Months Ended
 September 30,		 Nine Months Ended
 September 30,
2023 2022 2023 2022
Transformation Strategy Costs:
Compensation and benefits $ 80  $ 15  $ 178  $ 71 
Total other expenses 14  21  58  61 
Total Transformation Strategy Costs $ 94  $ 36  $ 236  $ 132 
Income Tax Benefit from Transformation Strategy Costs (24) (9) (57) (31)
After-Tax Transformation Strategy Costs $ 70  $ 27  $ 179  $ 101 
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.