P6-40. Analyzing and Interpreting Restructuring Costs and Effects General Electric (GE) reports the following footnote disclosure (excerpted) in its 2018 10-K relating to its restructuring program. RESTRUCTURING Restructuring actions are an essential component of our cost improvement efforts to both existing operations and those recently acquired. Restructuring and other charges relate primarily to workforce reductions, facility exit costs associated with the consolidation of sales, service and manufacturing facilities, the integration of recent acquisitions, and other asset write- downs. We continue to closely monitor the economic environment and may undertake further restructuring actions to more closely align our cost structure with earnings and cost reduction goals. Restructuring and Other Charges (In billions) 2018 2017 2016 Workforce reductions . . $0.9 $1.2 $1.3 Plant closures & associated costs and other asset write-downs . . . 1.8 1.9 1.3 Acquisition/disposition net charges 0.8 0.8 0.6 Other. . . . . 0.1 0.2 0.3 Total . $3.6 $4.1 $3.5 For 2018, restructuring and other charges were $3.6 billion of which approximately $1.4 billion was reported in cost of products/services and $2.1 billion was reported in selling, general and administrative expenses (SG&A). These activities were primarily at Power, Corporate and Oil & Gas. Cash expenditures for restructuring and other charges were approximately $2.0 billion for the twelve months ended December 31, 2018. Required a. Briefly describe the company's 2018 restructuring program. Provide two examples of common noncash charges associated with corporate restructuring activities. b. Using the financial statement effects template, show the effects on financial statements of the (1) 2018 restructuring charge of $3.6 billion, and (2) 2018 cash payment of $2.0 billion. c. Assume that instead of accurately estimating the anticipated restructuring charge in 2018, the com- pany overestimated them by $30 million. How would this overestimation affect financial statements in (1) 2018, and (2) 2019 when severance costs are paid in cash