Restructuring Actions and Exit Activities

9 Months Ended

Sep. 30, 2017

Restructuring Actions and Exit Activities.

Restructuring Actions and Exit Activities

NOTE 4.  Restructuring Actions and Exit Activities

2017 Restructuring Actions:

During the second quarter of 2017, management approved and committed to undertake certain restructuring actions primarily focused on portfolio and footprint optimization. These actions affected approximately 1,300 positions worldwide and resulted in a second quarter 2017 pre-tax charges of $99 million. Remaining activities related to restructuring are expected to be completed by the end of 2018.

Components of these restructuring charges are summarized by business segment as follows:

	Second Quarter 2017
(Millions)	Employee-Related
Industrial	$	39
Safety and Graphics		9
Health Care		2
Electronics and Energy		7
Consumer		36
Corporate and Unallocated		6
Total Expense	$	99

The preceding restructuring charges were recorded in the income statement as follows:

(Millions)	Second Quarter 2017
Cost of sales	$	86
Selling, general and administrative expenses		5
Research, development and related expenses		8
Total	$	99

Components of these restructuring actions, follow:

(Millions)	Employee-Related
Expense incurred in the second quarter of 2017	$	99
Accrued restructuring action balances as of June 30, 2017	$	99
Cash payments		(3)
Accrued restructuring action balances as of September 30, 2017	$	96

2017 Exit Activities:

In the first quarter of 2017, the Company recorded net pre-tax charges of $24 million related to exit activities. These charges related to employee reductions, primarily in Western Europe.