REPOSITIONING AND OTHER CHARGES

9 Months Ended

Sep. 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				Nine Months Ended
			September 30,				September 30,
			2017		2016		2017		2016
Severance		$	75	$	155	$	177	$	253
Asset impairments			22		11		57		42
Exit costs			11		36		20		41
Reserve adjustments			(7)		(31)		(7)		(92)
Total net repositioning charge			101		171		247		244
Asbestos related litigation charges,
net of insurance			50		64		152		173
Probable and reasonably estimable
environmental liabilities			62		49		167		132
Other			17		18		17		18
Total net repositioning and other charges		$	230	$	302	$	583	$	567

The following table summarizes the pretax distribution of total net repositioning and other charges by income statement classification:
		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2017		2016		2017		2016
Cost of products and services sold	$	193	$	226	$	503	$	410
Selling, general and administrative expenses		37		53		54		110
Other		-		23		26		47
	$	230	$	302	$	583	$	567

The following table summarizes the pretax impact of total net repositioning and other charges by
segment:
		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2017		2016		2017		2016
Aerospace	$	59	$	144	$	216	$	265
Home and Building Technologies		15		24		57		36
Performance Materials and Technologies		28		35		30		71
Safety and Productivity Solutions		34		10		34		4
Corporate		94		89		246		191
	$	230	$	302	$	583	$	567

In the quarter ended September 30, 2017, we recognized repositioning charges totaling$108million including severance costs of $75 million related to workforce reductions of1,700 manufacturing and administrative positions across our segments. The workforce reductions were primarily related to site transitions, mainly in Safety and Productivity Solutions and Aerospace, to more cost-effective locations and cost savings actions taken in connection with our productivity and ongoing functional transformation initiatives.The repositioning charges included asset impairments of $22 million primarily related to the write-down of a research and development facility in our Corporate segment in connection with a planned exit from such facility.

In the quarter ended September 30, 2016, we recognizedrepositioning charges totaling $202million including severance costs of $155 million related to workforce reductions of3,017manufacturing and administrative positions across our segments. The workforce reductions were primarily related to the separation of the former Automation and Control Solutions reporting segment into two new reporting segments (Home and Building Technologies and Safety and Productivity Solutions); factory transitions in Aerospace, Home and Building Technologies, Safety and Productivity Solutions and Performance Materials and Technologies to more cost-effective locations; and cost savings actions taken in connection with our productivity and ongoing functional transformation initiatives. The repositioning charge included exit costs of $36 million principally for expenses related to the spin-off of our AdvanSix business and closure obligations associated with factory transitions. Also, $31 million of previously established accruals for severance were returned to income as a result of higher attrition than anticipated in prior severance programs resulting in lower required severance payments, and changes in the scope of previously announced repositioning actions.

Inthe nine months endedSeptember 30, 2017, we recognized repositioning charges totaling $254million including severance costs of $177 million related to workforce reductions of4,224 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 and Safety and Productivity Solutions, to more cost-effective locations. The repositioning charges included asset impairments of $57 million primarily in our Corporate segment related to the write-down of a research and development facility in connection with a planned exit from such facility and legacy properties in connection with their planned sale.

In the nine months endedSeptember 30, 2016, we recognizedrepositioning charges totaling$336million including severance costs of $253 million related to workforce reductions of5,888manufacturing 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 separation of the former Automation and Control Solutions reporting segment into two new reporting segments; factory transitions in Aerospace, Home and Building Technologies, Safety and Productivity Solutions and Performance Materials and Technologies to more cost-effective locations; and achieving acquisition-related synergies. The repositioning charge included asset impairments of $42 million principally related to the write-off of certain intangible assets in connection with the sale of a Performance Materials and Technologies business. The repositioning charge included exit costs of $41 million principally for expenses related to the spin-off of our AdvanSix business and closure obligations associated with factory transitions. Also, $92 million of previously established accruals, primarily for severance, 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		177		57		20		254
Usage - cash		(115)		-		(8)		(123)
Usage - noncash		-		(57)		-		(57)
Foreign currency translation		16		-		2		18
Adjustments and reclassifications		(4)		-		(10)		(14)
September 30, 2017	$	372	$	-	$	37	$	409

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.