NOTE 5. Restructuring Actions and Exit Activities

2018 Restructuring Actions:

During the second quarter of 2018, management approved and committed to undertake certain restructuring actions related to addressing corporate functional costs following the Communication Markets Division divestiture. These actions affected approximately 900 positions worldwide and resulted in a second quarter 2018 pre-tax charge of $105 million, essentially all within Corporate and Unallocated.

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


(Millions)	Second Quarter 2018
Cost of sales	$	12
Selling, general and administrative expenses		89
Research, development and related expenses		4
Total	$	105

Components of these restructuring actions, follow:


(Millions)	Employee-Related
Expense incurred in the second quarter of 2018	$	105
Cash payments		(12)
Adjustments		(7)
Accrued restructuring action balances as of September 30, 2018	$	86

Remaining activities related to this restructuring are expected to be largely completed through the first half of 2019.

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 charge of $99 million.

Components of these restructuring actions, including cash and non-cash impacts, follow:


(Millions)	Employee-Related
Expense incurred in the second quarter of 2017	$	99
Cash payments		(8)
Adjustments		(3)
Accrued restructuring action balances as of December 31, 2017	$	88
Cash payments		(17)
Adjustments		(27)
Accrued restructuring action balances as of September 30, 2018	$	44

Remaining activities related to this restructuring are expected to be largely completed by the end of 2018. A portion of the adjustments detailed above include certain severance accruals taken in 2017, the obligation for which was relieved and reflected as part of the gain on divestiture when that business was sold in 2018.

2017 Exit Activities:

During 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.