Restructuring Costs

During the six months ended June 30, 2014, we recorded net pre-tax restructuring costs totaling $180 million for new and ongoing restructuring actions. We recorded charges in the segments as follows:



(Dollars in millions)
Otis	$	38
UTC Climate, Controls & Security	68
Pratt & Whitney	47
UTC Aerospace Systems	10
Sikorsky	17
Total	$	180

Restructuring charges incurred during the six months ended June 30, 2014 primarily relate to actions initiated during 2014 and 2013, and were recorded as follows:



(Dollars in millions)
Cost of sales	$	111
Selling, general and administrative	69
Total	$	180

2014 Actions. During the six months ended June 30, 2014, we initiated restructuring actions relating to ongoing cost reduction efforts, including workforce reductions and the consolidation of field operations. We recorded net pre-tax restructuring costs totaling $151 million, including $83 million in cost of sales and $68 million in selling, general and administrative expenses.

We are targeting the majority of the remaining workforce and all facility related cost reduction actions for completion during 2014. No specific plans for significant other actions have been finalized at this time. The following table summarizes the accrual balances and utilization by cost type for the 2014 restructuring actions:



(Dollars in millions)	Severance			Asset Write-Downs		Facility Exit, Lease Termination and Other Costs			Total
Restructuring accruals at April 1, 2014	$	80		$	—	$	—		$	80
Net pre-tax restructuring costs	58			—		3			61
Utilization and foreign exchange	(26		)	—		(2		)	(28		)
Balance at June 30, 2014	$	112		$	—	$	1		$	113

The following table summarizes expected, incurred and remaining costs for the 2014 restructuring actions by segment:



(Dollars in millions)	Expected Costs		Costs Incurred Quarter Ended March 31, 2014			Costs Incurred Quarter Ended June 30, 2014			Remaining Costs at June 30, 2014
Otis	$	71	$	(18	)	$	(28	)	$	25
UTC Climate, Controls & Security	77		(16		)	(21		)	40
Pratt & Whitney	70		(37		)	(10		)	23
UTC Aerospace Systems	5		(3		)	(2		)	—
Sikorsky	16		(16		)	—			—
Total	$	239	$	(90	)	$	(61	)	$	88

2013 Actions. During the six months ended June 30, 2014, we recorded net pre-tax restructuring costs totaling $33 million for restructuring actions initiated in 2013, including $30 million in cost of sales and $3 million in selling, general and administrative expenses. The 2013 actions relate to ongoing cost reduction efforts, including workforce reductions and the consolidation of field operations. The following table summarizes the accrual balances and utilization by cost type for the 2013 restructuring actions:



(Dollars in millions)	Severance			Asset Write-Downs		Facility Exit, Lease Termination and Other Costs			Total
Restructuring accruals at April 1, 2014	$	172		$	—	$	22		$	194
Net pre-tax restructuring costs	(5		)	—		6			1
Utilization and foreign exchange	(35		)	—		(5		)	(40		)
Balance at June 30, 2014	$	132		$	—	$	23		$	155

The following table summarizes expected, incurred and remaining costs for the 2013 restructuring actions by segment:



(Dollars in millions)	Expected Costs		Costs Incurred in 2013			Costs Incurred Quarter Ended March 31, 2014			Costs Incurred Quarter Ended June 30, 2014			Remaining Costs at June 30, 2014
Otis	$	69	$	(69	)	$	(1	)	$	2		$	1
UTC Climate, Controls & Security	119		(89		)	(24		)	(2		)	4
Pratt & Whitney	163		(154		)	(6		)	1			4
UTC Aerospace Systems	91		(71		)	(1		)	(3		)	16
Sikorsky	37		(38		)	—			1			—
Total	$	479	$	(421	)	$	(32	)	$	(1	)	$	25

2012 Actions. As of June 30, 2014, we have approximately $67 million of accrual balances remaining related to 2012 actions.