Restructuring Costs

During the quarter ended March 31, 2018, we recorded net pre-tax restructuring costs totaling $69 million for new and ongoing restructuring actions. We recorded charges in the segments as follows:



(dollars in millions)
Otis	$	26
UTC Climate, Controls & Security	14
Pratt & Whitney	—
UTC Aerospace Systems	27
Eliminations and other	2
Total	$	69

Restructuring charges incurred during the quarter ended March 31, 2018 primarily relate to actions initiated during 2018 and 2017, and were recorded as follows:



(dollars in millions)
Cost of sales	$	39
Selling, general and administrative	30
Total	$	69

2018 Actions. During the quarter ended March 31, 2018, we recorded net pre-tax restructuring costs of $12 million, comprised of $4 million in cost of sales and $8 million in selling, general and administrative expenses. The 2018 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 2018 and 2019. No specific plans for other significant actions have been finalized at this time. The following table summarizes the accrual balance and utilization for the 2018 restructuring actions for the quarter ended March 31, 2018:



(dollars in millions)	Severance			Facility Exit, Lease Termination and Other Costs			Total
Net pre-tax restructuring costs	11			1			12
Utilization and foreign exchange	(3		)	(1		)	(4		)
Balance at March 31, 2018	$	8		$	—		$	8

The following table summarizes expected, incurred and remaining costs for the 2018 restructuring actions by segment:



(dollars in millions)	Expected Costs		Costs Incurred Quarter Ended March 31, 2018			Remaining Costs at March 31, 2018
Otis	$	13	$	(9	)	$	4
UTC Climate, Controls & Security	22		(1		)	21
Pratt & Whitney	—		—			—
UTC Aerospace Systems	15		—			15
Eliminations and other	2		(2		)	—
Total	$	52	$	(12	)	$	40

2017 Actions. During the quarter ended March 31, 2018, we recorded net pre-tax restructuring costs totaling $51 million for restructuring actions initiated in 2017, including $30 million in cost of sales and $21 million in selling, general and administrative expenses. The 2017 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 2017 restructuring actions for the quarter ended March 31, 2018:



(dollars in millions)	Severance			Facility Exit, Lease Termination and Other Costs			Total
Restructuring accruals at December 31, 2017	$	84		$	1		$	85
Net pre-tax restructuring costs	39			12			51
Utilization and foreign exchange	(35		)	(15		)	(50		)
Balance at March 31, 2018	$	88		$	(2	)	$	86

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



(dollars in millions)	Expected Costs		Costs Incurred in 2017			Costs Incurred Quarter Ended March 31, 2018			Remaining Costs at March 31, 2018
Otis	$	74	$	(43	)	$	(15	)	$	16
UTC Climate, Controls & Security	90		(76		)	(7		)	7
Pratt & Whitney	7		(7		)	—			—
UTC Aerospace Systems	152		(43		)	(29		)	80
Eliminations and other	7		(7		)	—			—
Total	$	330	$	(176	)	$	(51	)	$	103

2016 and Prior Actions. During the quarter ended March 31, 2018, we recorded net pre-tax restructuring costs totaling $6 million for restructuring actions initiated in 2016 and prior. As of March 31, 2018, we have approximately $108 million of accrual balances remaining related to 2016 and prior actions.