REPOSITIONING AND OTHER CHARGES

6 Months Ended

Jun. 30, 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				Six Months Ended
			June 30,				June 30,
			2015		2014		2015		2014
Severance		$	38	$	11	$	75	$	82
Asset impairments			-		2		8		11
Exit costs			1		4		2		12
Reserve adjustments			(5)		(3)		(12)		(9)
Total net repositioning charge			34		14		73		96
Asbestos related litigation charges,
net of insurance			46		51		92		99
Probable and reasonably estimable
environmental liabilities			49		52		95		134
Other			-		-		-		2
Total net repositioning and other charges		$	129	$	117	$	260	$	331

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,
		2015		2014		2015		2014
Cost of products and services sold	$	112	$	110	$	234	$	301
Selling, general and administrative expenses		17		7		26		30
	$	129	$	117	$	260	$	331

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,
		2015		2014		2015		2014
Aerospace	$	48	$	50	$	96	$	126
Automation and Control Solutions		15		5		39		51
Performance Materials and Technologies		14		6		21		20
Corporate		52		56		104		134
	$	129	$	117	$	260	$	331

In the quarter ended June 30, 2015, we recognized repositioning charges totaling $39 million primarily for severance costs related to workforce reductions of940 manufacturing and administrative positions mainly in Automation and Control Solutions (ACS) and Performance Materials and Technologies (PMT). The workforce reductions were primarily related to cost savings actions taken in connection with our productivity and ongoing functional transformation initiatives.

In the quarter ended June 30, 2014, we recognized repositioning charges totaling $17 million including severance costs of $11 million related to workforce reductions of213manufacturing and administrative positions primarily in ACS. The workforce reductions were primarily related to cost savings actions taken in connection with our productivity and ongoing functional transformation initiatives.

In the six months endedJune 30, 2015, we recognized repositioning charges totaling $85 million including severance costs of $75 million related to workforce reductions of3,980 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 ACS. The previously established accruals of $12 million, primarily for severance, were mainly in ACSandwere returned to income due principally to fewer employee severance actions caused by higher attrition than originally associated with prior severance programs.

In the six months endedJune 30, 2014, we recognized repositioning charges totaling$105 million including severance costs of $82 million related to workforce reductions of1,733manufacturing 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 and PMT. The repositioning charge includes asset impairments of $11 million primarily related to manufacturing plant and equipment associated with site consolidations and factory transitions. The repositioning charge also includes exit costs of $12 million primarily related to closure obligations and costs for early termination of lease contracts associated with site consolidations and factory transitions.

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		75		8		2		85
Usage - cash		(44)		-		(6)		(50)
Usage - noncash		-		(8)		-		(8)
Foreign currency translation		(7)		-		(2)		(9)
Adjustments		(8)		-		(4)		(12)
June 30, 2015	$	301	$	-	$	20	$	321

Certain repositioning projects 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 are not expected to be significant.