Restructuring Costs

During the six months ended June 30, 2018, we recorded net pre-tax restructuring costs totaling $149 million for new and ongoing restructuring actions. We recorded charges in the segments as follows:



(dollars in millions)
Otis	$	47
UTC Climate, Controls & Security	35
Pratt & Whitney	3
UTC Aerospace Systems	60
Eliminations and other	4
Total	$	149

Restructuring charges incurred during the six months ended June 30, 2018 primarily relate to actions initiated during 2018 and 2017, and were recorded as follows:



(dollars in millions)
Cost of sales	$	86
Selling, general and administrative	65
Non-service pension (benefit)	(2		)
Total	$	149

2018 Actions. During the six months ended June 30, 2018, we recorded net pre-tax restructuring costs of $73 million, comprised of $38 million in cost of sales, $37 million in selling, general and administrative expenses, and $2 million in non-service pension benefit. The 2018 actions relate to ongoing cost reduction efforts, including workforce reductions and the consolidation of field and manufacturing 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 and six months ended June 30, 2018:



(dollars in millions)	Severance			Facility Exit, Lease Termination and Other Costs			Total
Quarter Ended June 30, 2018
Restructuring accruals at March 31, 2018	$	8		$	—		$	8
Net pre-tax restructuring costs	60			1			61
Utilization and foreign exchange	(20		)	(1		)	(21		)
Balance at June 30, 2018	$	48		$	—		$	48

Six Months Ended June 30, 2018
Net pre-tax restructuring costs	$	71		$	2		$	73
Utilization and foreign exchange	(23		)	(2		)	(25		)
Balance at June 30, 2018	$	48		$	—		$	48

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			Costs Incurred Quarter Ended June 30, 2018			Remaining Costs at June 30, 2018
Otis	$	31	$	(9	)	$	(18	)	$	4
UTC Climate, Controls & Security	77		(1		)	(23		)	53
Pratt & Whitney	3		—			(3		)	—
UTC Aerospace Systems	20		—			(15		)	5
Eliminations and other	4		(2		)	(2		)	—
Total	$	135	$	(12	)	$	(61	)	$	62

2017 Actions. During the six months ended June 30, 2018, we recorded net pre-tax restructuring costs totaling $67 million for restructuring actions initiated in 2017, including $42 million in cost of sales and $25 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 and six months ended June 30, 2018:



(dollars in millions)	Severance			Facility Exit, Lease Termination and Other Costs			Total
Quarter Ended June 30, 2018
Restructuring accruals at March 31, 2018	$	88		$	(2	)	$	86
Net pre-tax restructuring costs	8			8			16
Utilization and foreign exchange	(23		)	(9		)	(32		)
Balance at June 30, 2018	$	73		$	(3	)	$	70

Six Months Ended June 30, 2018
Restructuring accruals at December 31, 2017	$	84		$	1		$	85
Net pre-tax restructuring costs	47			20			67
Utilization and foreign exchange	(58		)	(24		)	(82		)
Balance at June 30, 2018	$	73		$	(3	)	$	70

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			Costs Incurred Quarter Ended June 30, 2018			Remaining Costs at June 30, 2018
Otis	$	73	$	(43	)	$	(15	)	$	(4	)	$	11
UTC Climate, Controls & Security	81		(76		)	(7		)	5			3
Pratt & Whitney	7		(7		)	—			—			—
UTC Aerospace Systems	157		(43		)	(29		)	(17		)	68
Eliminations and other	7		(7		)	—			—			—
Total	$	325	$	(176	)	$	(51	)	$	(16	)	$	82

2016 and Prior Actions. During the six months ended June 30, 2018, we recorded net pre-tax restructuring costs totaling $9 million for restructuring actions initiated in 2016 and prior. As of June 30, 2018, we have approximately $91 million of accrual balances remaining related to 2016 and prior actions.