Restructuring Costs

During the nine months ended September 30, 2016, we recorded net pre-tax restructuring costs totaling $201 million for new and ongoing restructuring actions. We recorded charges in the segments as follows:



(Dollars in millions)
Otis	$	41
UTC Climate, Controls & Security	71
Pratt & Whitney	50
UTC Aerospace Systems	32
Eliminations and other	7
Total	$	201

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



(Dollars in millions)
Cost of sales	$	110
Selling, general and administrative	65
Other expense	26
Total	$	201

2016 Actions. During the nine months ended September 30, 2016, we recorded net pre-tax restructuring costs totaling $143 million, including $71 million in cost of sales, $46 million in selling, general and administrative expenses and $26 million in other expense. 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 for the quarter and nine months ended September 30, 2016:



(Dollars in millions)	Severance			Facility Exit, Lease Termination and Other Costs			Total
Quarter Ended September 30, 2016
Restructuring accruals at June 30, 2016	$	27		$	60		$	87
Net pre-tax restructuring costs	22			8			30
Utilization and foreign exchange	(12		)	(6		)	(18		)
Balance at September 30, 2016	$	37		$	62		$	99

Nine Months Ended September 30, 2016
Net pre-tax restructuring costs	$	71		$	72		$	143
Utilization and foreign exchange	(34		)	(10		)	(44		)
Balance at September 30, 2016	$	37		$	62		$	99

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			Costs Incurred Quarter Ended September 30, 2016			Remaining Costs at September 30, 2016
Otis	$	38	$	(10	)	$	(13	)	$	(9	)	$	6
UTC Climate, Controls & Security	53		(13		)	(8		)	(13		)	19
Pratt & Whitney	61		—			(61		)	—			—
UTC Aerospace Systems	90		(5		)	(3		)	(8		)	74
Total	$	242	$	(28	)	$	(85	)	$	(30	)	$	99

2015 Actions. During the nine months ended September 30, 2016, we recorded net pre-tax restructuring costs totaling $44 million for restructuring actions initiated in 2015, including $35 million in cost of sales and $9 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 for the quarter and nine months ended September 30, 2016:



(Dollars in millions)	Severance			Facility Exit, Lease Termination and Other Costs			Total
Quarter Ended September 30, 2016
Restructuring accruals at June 30, 2016	$	113		$	25		$	138
Net pre-tax restructuring costs	(14		)	5			(9		)
Utilization and foreign exchange	(36		)	(2		)	(38		)
Balance at September 30, 2016	$	63		$	28		$	91

Nine Months Ended September 30, 2016
Restructuring accruals at December 31, 2015	$	183		$	23		$	206
Net pre-tax restructuring costs	23			21			44
Utilization and foreign exchange	(143		)	(16		)	(159		)
Balance at September 30, 2016	$	63		$	28		$	91

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			(Costs Incurred) Reversals Quarter Ended September 30, 2016			Remaining Costs at September 30, 2016
Otis	$	51	$	(35	)	$	(5	)	$	(5	)	$	(2	)	$	4
UTC Climate, Controls & Security	195		(83		)	(14		)	(14		)	(5		)	79
Pratt & Whitney	59		(82		)	(1		)	—			24			—
UTC Aerospace Systems	140		(105		)	(8		)	(4		)	(3		)	20
Eliminations and other	28		(21		)	(1		)	(1		)	(5		)	—
Total	$	473	$	(326	)	$	(29	)	$	(24	)	$	9		$	103

During the quarter ended September 30, 2016, we had reversals of previously accrued restructuring reserves of approximately $32 million, the majority of which related to a Pratt & Whitney business that was sold in the third quarter of 2016 after originally being scheduled for closure.

2014 and Prior Actions. As of September 30, 2016, we have approximately $42 million of accrual balances remaining related to 2014 and prior actions.