REPOSITIONING AND OTHER CHARGES

6 Months Ended

Jun. 30, 2017

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,
			2017		2016		2017		2016
Severance		$	82	$	70	$	102	$	98
Asset impairments			33		24		35		31
Exit costs			8		3		9		5
Reserve adjustments			(6)		(44)		-		(61)
Total net repositioning charge			117		53		146		73
Asbestos related litigation charges,
net of insurance			52		56		102		109
Probable and reasonably estimable
environmental liabilities			55		31		105		83
Total net repositioning and other charges		$	224	$	140	$	353	$	265

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,
		2017		2016		2017		2016
Cost of products and services sold	$	174	$	79	$	310	$	184
Selling, general and administrative expenses		24		37		17		57
Other		26		24		26		24
	$	224	$	140	$	353	$	265

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,
		2017		2016		2017		2016
Aerospace	$	84	$	72	$	157	$	121
Home and Building Technologies		43		(5)		42		12
Performance Materials and Technologies		(1)		27		2		36
Safety and Productivity Solutions		4		4		-		(6)
Corporate		94		42		152		102
	$	224	$	140	$	353	$	265

In the quarter ended June 30, 2017, we recognized repositioning charges totaling$123million including severance costs of $82 million related to workforce reductions of1,902 manufacturing and administrative positions mainly in Home and Building Technologies and Aerospace. The workforce reductions were primarily related to cost savings actions taken in connection with our productivity and ongoing functional transformation initiatives and with site transitions, mainly in Aerospace, to more cost-effective locations. The repositioning charges included asset impairments of $33 million primarily related to the write-down of property in our Corporate segment in connection with a planned sale of such property.

In the quarter ended June 30, 2016, we recognizedrepositioning charges totaling $97million including severance costs of $70 million related to workforce reductions of2,578manufacturing 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. The repositioning charge included asset impairments of $24 million primarily related to the write-off of certain intangible assets in connection with the now completed sale of a Performance Materials and Technologies business. Also, $44 million of previously established accruals for severance mainly in Home and Building Technologies, Safety and Productivity Solutions and Aerospace were returned to income as a result of higher attrition than anticipated in prior severance programs resulting in lower required severance payments, lower than expected severance costs in certain repositioning actions, and changes in the scope of previously announced repositioning actions.

Inthe six months endedJune 30, 2017, we recognized repositioning charges totaling $146million including severance costs of $102 million related to workforce reductions of2,524 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 with site transitions, mainly in Aerospace, to more cost-effective locations. The repositioning charges included asset impairments of $35 million primarily related to the write-down of property in our Corporate segment in connection with a planned sale of such property.

In the six months endedJune 30, 2016, we recognizedrepositioning charges totaling$134million including severance costs of $98 million related to workforce reductions of2,871manufacturing 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, achieving acquisition-related synergies and outsourcing of certain packaging operations. The repositioning charge included asset impairments of $31 million primarily related to the write-off of certain intangible assets in connection with the now completed sale of a Performance Materials and Technologies business. Also, $61 million of previously established accruals, primarily for severance, in Home and Building Technologies, Safety and Productivity Solutions, Aerospace and Performance Materials and Technologies were returned to income as a result of higher attrition than anticipated in prior severance programs resulting in lower required severance payments, lower than expected severance costs in certain repositioning actions, 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
December 31, 2016	$	298	$	-	$	33	$	331
Charges		102		35		9		146
Usage - cash		(88)		-		(6)		(94)
Usage - noncash		-		(35)		-		(35)
Foreign currency translation		10		-		1		11
Adjustments and reclassifications		1		-		(9)		(8)
June 30, 2017	$	323	$	-	$	28	$	351

Certain repositioning projects in 2017 and 2016 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.