"So what we're talking about is structural cost or base cost, so fixed cost, it excludes variable cost. We talked about $2 billion of cost out, $1billion each in '17 and '18. So the goal this year is to take $1 billion of that base cost out. If you go to the supplement, we do a walk for you in the first quarter. So in the first quarter, those costs year-over-year were down about $75 million.
Now beneath that, we took out over $375 million of those costs. And that was partly offset by a couple hundred million more as we expected a higher Digital spend year-over-year and just wage
inflation of about $80 million. So good underlying performance there. It's going to accelerate over the year because we've taken an enormous number of actions here in the first quarter across all of the businesses and Corporate. We talked about the effort around horizontal IT, which, we think, is worth $250 million in the year, what we just announced around the tax -- corporate tax team and that transition to PWC. We've kind of taken a number of headcount actions, both at corporate and across the businesses here in the first quarter. So we expect that to grow over the course of the year. The other reference points I'd give you is when we talk at the outlook meeting, we talked about 500 -- a goal of $500 million with which we had $1.7 billion kind of pipelined against.
Against that original plan, the first quarter we were $200 million better than that original plan, so that gives us confidence that we're on track for the higher plan of $1 billion for the year. So I think you'll continue to see a better performance here in the second quarter. And then I think you'll see a real acceleration in the second half of the year.
To answer your question on restructuring from prior year, so within this bucket of cost, I said we took out $375 million before digital and the effect of EOP -- effect on wages. About $174 million of that $375 million was from prior-year restructuring actions."
175M cost-reduction from last year (Q4?) layoff, 200M from Q1 action that can be booked against Q1 (the March layoff in Power should not show up in Q1), then JRI spent 220M to buy Digital companies or what not and 80M on EOP, only 75M cost-out actually achieved in Q1 against the goal of 1B.
Only 925M cost-out to go for the next 3 quarter -- fortunately 250M of that is going to come from IT. They are helpless anyway so 250M less can't make it worse.