REPOSITIONING AND OTHER CHARGES

12 Months Ended

Dec. 31, 2014

Repositioning And Other Charges [Abstract]

Note 3. Repositioning and Other Charges

	A summary of repositioning and other charges follows:

			Years Ended December 31,
			2014		2013		2012
Severance		$	156	$	186	$	91
Asset impairments			12		23		12
Exit costs			16		22		16
Reserve adjustments			(38)		(30)		(66)
	Total net repositioning charge		146		201		53


Asbestos related litigation charges, net of insurance			182		181		156
Probable and reasonably estimable environmental liabilities			268		272		234
Other			2		9		-

	Total net repositioning and other charges	$	598	$	663	$	443

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

		Years Ended December 31,
		2014		2013		2012
Cost of products and services sold	$	525	$	566	$	428
Selling, general and administrative expenses		73		97		15
	$	598	$	663	$	443

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

		Years Ended December 31,
		2014		2013		2012
Aerospace	$	193	$	235	$	192
Automation and Control Solutions		80		68		13
Performance Materials and Technologies		33		56		17
Corporate		292		304		221
	$	598	$	663	$	443

In 2014, we recognized repositioning charges totaling $184 million including severance costs of $156 million related to workforce reductions of 2,975 manufacturing and administrative positions across all of our segments. The workforce reductions were primarily related to cost savings actions taken in connection with our productivity and ongoing functional transformation initiatives, factory transitions in our ACS and Aerospace segments to more cost-effective locations, and site consolidations and organizational realignments of businesses in our ACS and PMT segments. Also, $38 million of previously established accruals, primarily for severance, mainly in our Aerospace and ACS segment were returned to income in 2014 due principally to the change in scope of a previously announced repositioning action and to fewer employee severance actions caused by higher attrition than originally planned associated with prior severance programs.

In 2013, we recognized repositioning charges totaling $231 million including severance costs of $186 million related to workforce reductions of 3,081 manufacturing and administrative positions across all of our 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 ACS segment, outsourcing of non-core components in our Aerospace segment, the shutdown of a manufacturing facility in our PMT segment, and factory transitions in our ACS segment to more cost-effective locations. Also, $30 million of previously established accruals, primarily for severance, in our ACS and PMT segments were returned to income in 2013 due to changes in the scope of previously announced repositioning actions, lower than expected costs in completing the exit of a product line and fewer employee severance actions caused by higher attrition than originally planned associated with prior severance programs.

In 2012, we recognized repositioning charges totaling $119 million including severance costs of $91 million related to workforce reductions of 2,204 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 Aerospace segment, the exit from a product line in our PMT segment, and cost savings actions taken in connection with our productivity and ongoing functional transformation initiatives. Also, $66 million of previously established accruals, primarily for severance, in our ACS, Aerospace and PMT segments were returned to income in 2012 due primarily to fewer employee severance actions caused by higher attrition than originally planned associated with prior severance programs and changes in the scope of previously announced repositioning actions.

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

			Severance		Asset		Exit
			Costs		Impairments		Costs		Total
Balance at December 31, 2011		$	353	$	-	$	59	$	412
	2012 charges		91		12		16		119
	2012 usage - cash		(113)		-		(23)		(136)
	2012 usage - noncash		-		(12)		-		(12)
	Adjustments		(61)		-		(5)		(66)
	Foreign currency translation		6		-		-		6
Balance at December 31, 2012			276		-		47		323
	2013 charges		186		23		22		231
	2013 usage - cash		(139)		-		(21)		(160)
	2013 usage - noncash		-		(23)		-		(23)
	Adjustments		(27)		-		(3)		(30)
	Foreign currency translation		6		-		-		6
Balance at December 31, 2013			302		-		45		347
	2014 charges		156		12		16		184
	2014 usage - cash		(135)		-		(26)		(161)
	2014 usage - noncash		-		(12)		-		(12)
	Adjustments		(33)		-		(5)		(38)
	Foreign currency translation		(5)		-		-		(5)
Balance at December 31, 2014		$	285	$	-	$	30	$	315

Certain repositioning projects in our Aerospace, ACS and PMT segments in 2014, 2013 and 2012 included exit or disposal activities, the costs related to which will be recognized in future periods when the actual liability is incurred. Such exit and disposal costs were not significant.

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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