Restructuring Costs

During the nine months ended September 30, 2018, we recorded net pre-tax restructuring costs totaling $186 million for new and ongoing restructuring actions. We recorded charges in the segments as follows:



(dollars in millions)
Otis	$	50
UTC Climate, Controls & Security	52
Pratt & Whitney	3
UTC Aerospace Systems	77
Eliminations and other	4
Total	$	186

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



(dollars in millions)
Cost of sales	$	112
Selling, general and administrative	76
Non-service pension (benefit)	(2		)
Total	$	186

2018 Actions. During the nine months ended September 30, 2018, we recorded net pre-tax restructuring costs of $97 million, comprised of $47 million in cost of sales, $52 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 nine months ended September 30, 2018:



(dollars in millions)	Severance			Facility Exit, Lease Termination and Other Costs			Total
Quarter Ended September 30, 2018
Restructuring accruals at June 30, 2018	$	48		$	—		$	48
Net pre-tax restructuring costs	19			5			24
Utilization and foreign exchange	(19		)	(2		)	(21		)
Balance at September 30, 2018	$	48		$	3		$	51

Nine Months Ended September 30, 2018
Net pre-tax restructuring costs	$	90		$	7		$	97
Utilization and foreign exchange	(42		)	(4		)	(46		)
Balance at September 30, 2018	$	48		$	3		$	51

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			Costs Incurred Quarter Ended September 30, 2018			Remaining Costs at September 30, 2018
Otis	$	40	$	(9	)	$	(18	)	$	(2	)	$	11
UTC Climate, Controls & Security	97		(1		)	(23		)	(14		)	59
Pratt & Whitney	3		—			(3		)	—			—
UTC Aerospace Systems	36		—			(15		)	(8		)	13
Eliminations and other	4		(2		)	(2		)	—			—
Total	$	180	$	(12	)	$	(61	)	$	(24	)	$	83

2017 Actions. During the nine months ended September 30, 2018, we recorded net pre-tax restructuring costs totaling $76 million for restructuring actions initiated in 2017, including $56 million in cost of sales and $20 million in selling, general and administrative expenses. The 2017 actions relate to ongoing cost reduction efforts, including workforce reductions, consolidation of field and manufacturing 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 nine months ended September 30, 2018:



(dollars in millions)	Severance			Facility Exit, Lease Termination and Other Costs			Total
Quarter Ended September 30, 2018
Restructuring accruals at June 30, 2018	$	73		$	(3	)	$	70
Net pre-tax restructuring costs	3			6			9
Utilization and foreign exchange	(19		)	(8		)	(27		)
Balance at September 30, 2018	$	57		$	(5	)	$	52

Nine Months Ended September 30, 2018
Restructuring accruals at December 31, 2017	$	84		$	1		$	85
Net pre-tax restructuring costs	50			26			76
Utilization and foreign exchange	(77		)	(32		)	(109		)
Balance at September 30, 2018	$	57		$	(5	)	$	52

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			Costs Incurred Quarter Ended September 30, 2018			Remaining Costs at September 30, 2018
Otis	$	69	$	(43	)	$	(15	)	$	(4	)	$	(1	)	$	6
UTC Climate, Controls & Security	78		(76		)	(7		)	5			1			1
Pratt & Whitney	7		(7		)	—			—			—			—
UTC Aerospace Systems	207		(43		)	(29		)	(17		)	(9		)	109
Eliminations and other	7		(7		)	—			—			—			—
Total	$	368	$	(176	)	$	(51	)	$	(16	)	$	(9	)	$	116

2016 and Prior Actions. During the nine months ended September 30, 2018, we recorded net pre-tax restructuring costs totaling $13 million for restructuring actions initiated in 2016 and prior. As of September 30, 2018, we have approximately $83 million of accrual balances remaining related to 2016 and prior actions.