Restructuring Costs

During the six months ended June 30, 2016, we recorded net pre-tax restructuring costs totaling $178 million for new and ongoing restructuring actions. We recorded charges in the segments as follows:



(Dollars in millions)
Otis	$	31
UTC Climate, Controls & Security	53
Pratt & Whitney	71
UTC Aerospace Systems	21
Eliminations and other	2
Total	$	178

Restructuring charges incurred during the six months ended June 30, 2016 primarily relate to actions initiated during 2016 and 2015, and were recorded as follows:



(Dollars in millions)
Cost of sales	$	90
Selling, general and administrative	62
Other expense	26
Total	$	178

2016 Actions. During the six months ended June 30, 2016, we recorded net pre-tax restructuring costs totaling $113 million, including $57 million in cost of sales, $30 million in selling, general and administrative expenses, and $26 million in other expenses. The 2016 actions relate to ongoing cost reduction efforts, including workforce reductions, consolidation of field operations, and costs to exit legacy programs.

We are targeting the majority of the remaining workforce and all facility related cost reduction actions for completion during 2016 and 2017. No specific plans for significant other actions have been finalized at this time. The following table summarizes the accrual balance and utilization for the 2016 restructuring actions:



(Dollars in millions)	Severance			Facility Exit, Lease Termination and Other Costs			Total
Restructuring accruals at April 1, 2016	$	25		$	—		$	25
Net pre-tax restructuring costs	21			64			85
Utilization and foreign exchange	(19		)	(4		)	(23		)
Balance at June 30, 2016	$	27		$	60		$	87

The following table summarizes expected, incurred and remaining costs for the 2016 restructuring actions by segment:



(Dollars in millions)	Expected Costs		Costs Incurred Quarter Ended March 31, 2016			Costs Incurred Quarter Ended June 30, 2016			Remaining Costs at June 30, 2016
Otis	$	34	$	(10	)	$	(13	)	$	11
UTC Climate, Controls & Security	45		(13		)	(8		)	24
Pratt & Whitney	61		—			(61		)	—
UTC Aerospace Systems	73		(5		)	(3		)	65
Total	$	213	$	(28	)	$	(85	)	$	100

2015 Actions. During the six months ended June 30, 2016, we recorded net pre-tax restructuring costs totaling $53 million for restructuring actions initiated in 2015, including $29 million in cost of sales and $24 million in selling, general and administrative expenses. The 2015 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 for the 2015 restructuring actions:



(Dollars in millions)	Severance			Facility Exit, Lease Termination and Other Costs			Total
Restructuring accruals at April 1, 2016	$	141		$	23		$	164
Net pre-tax restructuring costs	16			8			24
Utilization and foreign exchange	(44		)	(6		)	(50		)
Balance at June 30, 2016	$	113		$	25		$	138

The following table summarizes expected, incurred and remaining costs for the 2015 restructuring actions by segment:



(Dollars in millions)	Expected Costs		Costs Incurred in 2015			Costs Incurred Quarter Ended March 31, 2016			Costs Incurred Quarter Ended June 30, 2016			Remaining Costs at June 30, 2016
Otis	$	51	$	(35	)	$	(5	)	$	(5	)	$	6
UTC Climate, Controls & Security	191		(83		)	(14		)	(14		)	80
Pratt & Whitney	83		(82		)	(1		)	—			—
UTC Aerospace Systems	142		(105		)	(8		)	(4		)	25
Eliminations and other	23		(21		)	(1		)	(1		)	—
Total	$	490	$	(326	)	$	(29	)	$	(24	)	$	111

2014 and Prior Actions. As of June 30, 2016, we have approximately $61 million of accrual balances remaining related to 2014 actions.