v3.25.2
Asset Impairment, Restructuring and Other Special Charges
 6 Months Ended
Jun. 30, 2025
Restructuring and Related Activities [Abstract]  
Asset Impairment, Restructuring and Other Special Charges
Note 5. Asset Impairment, Restructuring and Other Special Charges
In recent years, we have incurred substantial costs associated with restructuring programs and cost-reduction initiatives designed to achieve a flexible and competitive cost structure. Restructuring activities have primarily included charges associated with business and facility rationalizations and workforce reductions. We have also incurred costs associated with executing acquisitions, divestitures and other significant transactions and related integration and/or separation activities. Components of asset impairment, restructuring and other special charges were as follows:
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Restructuring charges (1)
$— $4 $1 $43 
Acquisition and divestiture-related charges (2)
1 10 1 17 
Non-cash and other items
Asset impairments (3)
— 61 — 61 
Other (4)
— 5 8 5 
Total expense$1 $80 $10 $126 
(1)Restructuring charges primarily related to cash-based severance costs associated with a restructuring program approved and announced in February 2024 intended to reallocate resources by shifting international resources from farm animal to pet health. This restructuring program also resulted in changes in how we operate in and sell into the Argentina market, among others.
(2)Acquisition and divestiture-related charges in 2024 consisted of transaction costs related to the divestiture of our aqua business. (see Note 4. Acquisitions, Divestitures and Other Arrangements for further information).
(3)Asset impairments in 2024 principally reflected the write-off of our IL-4R IPR&D asset ($53 million), which was acquired from Kindred Biosciences, Inc. in 2021.
(4)Other items in 2025 primarily related to upfront payments made in relation to new licensing arrangements.
The following table summarizes the activity in our reserves established in connection with restructuring activities:
Balance at December 31, 2024$16 
Charges1 
Cash paid(7)
Balance at June 30, 2025$10 
Our restructuring reserves were predominantly included within other current liabilities on our condensed consolidated balance sheet at June 30, 2025, although timing of when the restructuring reserve obligations are expected to be paid can vary due to certain country-specific negotiations and regulations.