REPOSITIONING AND OTHER CHARGES

3 Months Ended

Mar. 31, 2015

Repositioning And Other Charges [Abstract]

Repositioning and Other Charges

Note 3. Repositioning and Other Charges

	A summary of repositioning and other charges follows:
			Three Months Ended
			March 31,
			2015		2014
Severance		$	37	$	71
Asset impairments			8		9
Exit costs			1		8
Adjustments			(7)		(6)
Total net repositioning charge			39		82
Asbestos related litigation charges,
net of insurance			46		48
Probable and reasonably estimable
environmental liabilities			46		82
Other			-		2
Total net repositioning and other charges		$	131	$	214

The following table summarizes the pretax distribution of total net repositioning and other charges by income statement classification:
		Three Months Ended
		March 31,
		2015		2014
Cost of products and services sold	$	122	$	191
Selling, general and administrative expenses		9		23
	$	131	$	214

The following table summarizes the pretax impact of total net repositioning and other charges by segment:
		Three Months Ended
		March 31,
		2015		2014
Aerospace	$	48	$	76
Automation and Control Solutions		24		46
Performance Materials and Technologies		7		14
Corporate		52		78
	$	131	$	214

In the quarter ended March 31, 2015, we recognized repositioning charges totaling $46 million including severance costs of $37 million related to workforce reductions of 3,040 manufacturing and administrative positions across our segments. The workforce reductions were primarily related to cost savings actions taken in connection with our productivity and ongoing functional transformation initiatives and outsourcing of certain component manufacturing in our Automation and Control Solutions (ACS) segment.

In the quarter ended March 31, 2014, we recognized repositioning charges totaling $88 million including severance costs of $71 million related to workforce reductions of 1,520 manufacturing and administrative positions across 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 ACS to more cost-effective locations, site consolidations and organizational realignments of businesses in ACS.

The following table summarizes the status of our total repositioning reserves:
		Severance		Asset		Exit
		Costs		Impairments		Costs		Total
December 31, 2014	$	285	$	-	$	30	$	315
Charges		37		8		1		46
Usage - cash		(24)		-		(3)		(27)
Usage - noncash		-		(8)		-		(8)
Foreign currency translation		(9)		-		(2)		(11)
Adjustments		(3)		-		(4)		(7)
March 31, 2015	$	286	$	-	$	22	$	308

Certain repositioning projects in our segments in 2015 and 2014 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.