
	A summary of repositioning and other charges follows:

			Three Months Ended				Six Months Ended
			June 30,				June 30,
			2013		2012		2013		2012
Severance		$	60	$	37	$	98	$	52
Asset impairments			1		2		1		11
Exit costs			-		8		2		16
Adjustments			-		(23)		(7)		(30)
Total net repositioning charge			61		24		94		49

Asbestos related litigation charges,
net of insurance			50		43		91		79
Probable and reasonably estimable
environmental liabilities			56		67		110		128
Other			4		-		4		-

Total net repositioning and other charges		$	171	$	134	$	299	$	256

The following table summarizes the pretax distribution of total net repositioning and other charges by income statement classification:

		Three Months Ended				Six Months Ended
		June 30,				June 30,
		2013		2012		2013		2012
Cost of products and services sold	$	147	$	132	$	255	$	251
Selling, general and administrative expenses		24		2		44		5
	$	171	$	134	$	299	$	256

The following table summarizes the pretax impact of total net repositioning and other charges by segment:

		Three Months Ended				Six Months Ended
		June 30,				June 30,
		2013		2012		2013		2012
Aerospace	$	-	$	-	$	22	$	1
Automation and Control Solutions		46		10		55		9
Performance Materials and Technologies		1		-		-		14
Transportation Systems		63		60		103		112
Corporate		61		64		119		120
	$	171	$	134	$	299	$	256

In the quarter ended June 30, 2013, we recognized repositioning charges totaling $61 million primarily for severance costs related to workforce reductions of 577 manufacturing and administrative positions primarily in our Automation and Control Solutions and Transportation Systems segments. The workforce reductions were primarily related to cost savings actions taken in connection with our productivity and ongoing functional transformation initiatives, achieving acquisition-related synergies in our Automation and Control Solutions segment, outsourcing of certain non-core components in our Transportation Systems segment and a factory transition in our Automation and Control Solutions segment to a more cost-effective location.

In the quarter ended June 30, 2012, we recognized repositioning charges totaling $47 million including severance costs of $37 million related to workforce reductions of 559 manufacturing and administrative positions in our Automation and Control Solutions, Transportation Systems and Aerospace segments. The workforce reductions were primarily related to cost savings actions taken in connection with our productivity and ongoing functional transformation initiatives. The repositioning charge also included exit costs of $8 million mainly related to closure obligations associated with the planned shutdown of a Transportation Systems manufacturing facility. Also, $23 million of previously established accruals for severance in our Automation and Control Solutions and Aerospace segments were returned to income in the second quarter of 2012 due primarily to fewer employee severance actions caused by higher attrition than originally planned associated with prior severance programs.

In the six months ended June 30, 2013, we recognized repositioning charges totaling $101 million primarily for severance costs related to workforce reductions of 1,224 manufacturing and administrative positions mainly in our Automation and Control Solutions, Aerospace and Transportation Systems segments. The workforce reductions were primarily related to cost savings actions taken in connection with our productivity and ongoing functional transformation initiatives, achieving acquisition-related synergies in our Automation and Control Solutions segment and outsourcing of non-core components in our Transportation Systems segment. Also, $7 million of previously established accruals for severance in our Performance Materials and Technologies and Automation and Control Solutions segments were returned to income in the first six months of 2013 due primarily to lower than expected costs in completing the exit of a product line.

In the six months ended June 30, 2012, we recognized repositioning charges totaling $79 million including severance costs of $52 million related to workforce reductions of 1,177 manufacturing and administrative positions across all of our segments. The workforce reductions were primarily related to the planned shutdown of a manufacturing facility in our Transportation Systems segment, the exit from a product line in our Performance Materials and Technologies segment, and cost savings actions taken in connection with our productivity and ongoing functional transformation initiatives. The repositioning charge also included asset impairments of $11 million principally related to manufacturing plant and equipment associated with the exit of a product line in our Performance Materials and Technologies segment. The repositioning charge also included exit costs of $16 million principally related to closure obligations associated with the planned shutdown of manufacturing facilities and exit of a product line. Also, $30 million of previously established accruals for severance at our Automation and Control Solutions and Aerospace segments were returned to income in the first six months of 2012 due primarily to fewer employee severance actions caused by higher attrition than originally planned associated with prior severance programs.

The following table summarizes the status of our total repositioning reserves:

		Severance		Asset		Exit
		Costs		Impairments		Costs		Total

December 31, 2012	$	276	$	-	$	47	$	323
Charges		98		1		2		101
Usage - cash		(50)		-		(10)		(60)
Usage - noncash		-		(1)		-		(1)
Foreign currency translation		(3)		-		-		(3)
Adjustments		(4)		-		(3)		(7)

June 30, 2013	$	317	$	-	$	36	$	353

Certain repositioning projects in our Aerospace, Automation and Control Solutions and Transportation Systems segments included exit or disposal activities, the costs related to which will be recognized in future periods when the actual liability is incurred. The nature of these exit or disposal costs includes asset set-up and moving, product recertification and requalification, and employee retention, training and travel. The following table summarizes by segment, expected, incurred and remaining exit and disposal costs related to 2011 repositioning actions which we were not able to recognize at the time the actions were initiated. The exit and disposal costs related to the repositioning actions in 2013 and 2012 which we were not able to recognize at the time the actions were initiated were not significant.

					Automation
					and Control		Transportation
	2011 Repositioning Actions		Aerospace		Solutions		Systems		Total

Expected exit and disposal costs		$	15	$	12	$	7	$	34
Costs incurred during:
	Year ended December 31, 2011		(1)		-		-		(1)
	Year ended December 31, 2012		(2)		(3)		(1)		(6)
	Current year-to-date		-		(2)		(2)		(4)
Remaining exit and disposal
	costs at June 30, 2013	$	12	$	7	$	4	$	23

In the quarter ended June 30, 2013, we recognized a charge of $56 million for environmental liabilities deemed probable and reasonably estimable in the quarter. We also recognized a charge of $50 million primarily representing an update to our estimated liability for the resolution of Bendix related asbestos claims as of June 30, 2013, net of probable insurance recoveries. Environmental and Asbestos matters are discussed in detail in Note 17, Commitments and Contingencies. We also recognized other charges of $4 million in connection with the evaluation of potential resolution of a legal matter.

In the quarter ended June 30, 2012, we recognized a charge of $67 million for environmental liabilities deemed probable and reasonably estimable in the quarter. We also recognized a charge of $43 million primarily representing an update to our estimated liability for the resolution of Bendix related asbestos claims as of June 30, 2012, net of probable insurance recoveries.

In the six months ended June 30, 2013, we recognized a charge of $110 million for environmental liabilities deemed probable and reasonably estimable in the period. We also recognized a charge of $91 million primarily representing an update to our estimated liability for the resolution of Bendix related asbestos claims as of June 30, 2013, net of probable insurance recoveries.

In the six months ended June 30, 2012, we recognized a charge of $128 million for environmental liabilities deemed probable and reasonably estimable in the period. We also recognized a charge of $79 million primarily representing an update to our estimated liability for the resolution of Bendix related asbestos claims as of June 30, 2012, net of probable insurance recoveries.