Restructuring Costs

During the nine months ended September 30, 2017, we recorded net pre-tax restructuring costs totaling $177 million for new and ongoing restructuring actions. We recorded charges in the segments as follows:



(Dollars in millions)
Otis	$	23
UTC Climate, Controls & Security	84
Pratt & Whitney	4
UTC Aerospace Systems	64
Eliminations and other	2
Total	$	177

Restructuring charges incurred during the nine months ended September 30, 2017 primarily relate to actions initiated during 2017 and 2016, and were recorded as follows:



(Dollars in millions)
Cost of sales	$	81
Selling, general and administrative	96
Total	$	177

2017 Actions. During the nine months ended September 30, 2017, we recorded net pre-tax restructuring costs of $114 million, comprised of $40 million in cost of sales and $74 million in selling, general and administrative expenses. The 2017 actions relate to ongoing cost reduction efforts, including workforce reductions and the consolidation of field operations.

We are targeting to complete the majority of the remaining workforce and facility related cost reduction actions during 2017 and 2018. No specific plans for significant other actions have been finalized at this time. The following table summarizes the accrual balance and utilization for the 2017 restructuring actions for the quarter and nine months ended September 30, 2017:



(Dollars in millions)	Severance			Facility Exit, Lease Termination and Other Costs			Total
Quarter Ended September 30, 2017
Restructuring accruals at June 30, 2017	$	43		$	—		$	43
Net pre-tax restructuring costs	49			2			51
Utilization and foreign exchange	(20		)	(2		)	(22		)
Balance at September 30, 2017	$	72		$	—		$	72

Nine Months Ended September 30, 2017
Net pre-tax restructuring costs	$	106		$	8		$	114
Utilization and foreign exchange	(34		)	(8		)	(42		)
Balance at September 30, 2017	$	72		$	—		$	72

The following table summarizes expected, incurred and remaining costs for the 2017 restructuring actions by segment:



(Dollars in millions)	Expected Costs		Costs Incurred Quarter Ended March 31, 2017			Costs Incurred Quarter Ended June 30, 2017			Costs Incurred Quarter Ended September 30, 2017			Remaining Costs at September 30, 2017
Otis	$	71	$	(2	)	$	(12	)	$	(5	)	$	52
UTC Climate, Controls & Security	83		(12		)	(11		)	(35		)	25
Pratt & Whitney	8		—			(6		)	—			2
UTC Aerospace Systems	54		(9		)	(10		)	(10		)	25
Eliminations and other	2		(1		)	—			(1		)	—
Total	$	218	$	(24	)	$	(39	)	$	(51	)	$	104

2016 Actions. During the nine months ended September 30, 2017, we recorded net pre-tax restructuring costs totaling $48 million for restructuring actions initiated in 2016, including $20 million in cost of sales and $28 million in selling, general and administrative expenses. The 2016 actions relate to ongoing cost reduction efforts, including workforce reductions, consolidation of field operations, and costs to exit legacy programs. The following table summarizes the accrual balances and utilization for the 2016 restructuring actions for the quarter and nine months ended September 30, 2017:



(Dollars in millions)	Severance			Facility Exit, Lease Termination and Other Costs			Total
Quarter Ended September 30, 2017
Restructuring accruals at June 30, 2017	$	49		$	48		$	97
Net pre-tax restructuring costs	3			5			8
Utilization and foreign exchange	(12		)	(1		)	(13		)
Balance at September 30, 2017	$	40		$	52		$	92

Nine Months Ended September 30, 2017
Restructuring accruals at December 31, 2016	$	63		$	46		$	109
Net pre-tax restructuring costs	29			19			48
Utilization and foreign exchange	(52		)	(13		)	(65		)
Balance at September 30, 2017	$	40		$	52		$	92

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



(Dollars in millions)	Expected Costs		Costs Incurred in 2016			Costs Incurred Quarter Ended March 31, 2017			Costs Incurred Quarter Ended June 30, 2017			Costs Incurred Quarter Ended September 30, 2017			Remaining Costs at September 30, 2017
Otis	$	55	$	(48	)	$	(3	)	$	1		$	—		$	5
UTC Climate, Controls & Security	80		(45		)	(6		)	(7		)	(3		)	19
Pratt & Whitney	118		(118		)	—			—			—			—
UTC Aerospace Systems	87		(31		)	(13		)	(12		)	(5		)	26
Total	$	340	$	(242	)	$	(22	)	$	(18	)	$	(8	)	$	50

2015 and Prior Actions. During the nine months ended September 30, 2017, we recorded net pre-tax restructuring costs totaling $15 million for restructuring actions initiated in 2015 and prior. As of September 30, 2017, we have approximately $52 million of accrual balances remaining related to 2015 and prior actions.