REPOSITIONING AND OTHER CHARGES

3 Months Ended

Mar. 31, 2018

Repositioning And Other Charges [Abstract]

Note 3. Repositioning and Other Charges


	A summary of repositioning and other charges follows:

			Three Months Ended
			March 31,
			2018		2017
Severance		$	31	$	20
Asset impairments			47		2
Exit costs			8		1
Reserve adjustments			(1)		6
Total net repositioning charge			85		29

Asbestos related litigation charges,
net of insurance			51		50
Probable and reasonably estimable
environmental liabilities			57		50

Total net repositioning and other charges		$	193	$	129

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

		Three Months Ended
		March 31,
		2018		2017
Cost of products and services sold	$	130	$	136
Selling, general and administrative expenses		22		(7)
Other (income) expense		41		-
	$	193	$	129

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

		Three Months Ended
		March 31,
		2018		2017
Aerospace	$	70	$	73
Home and Building Technologies		4		(1)
Performance Materials and Technologies		4		3
Safety and Productivity Solutions		7		(4)
Corporate		108		58
	$	193	$	129

In the quarter ended March 31, 2018, we recognized repositioning charges totaling $86 million including severance costs of $31 million related to workforce reductions of 1,153 manufacturing and administrative positions mainly in Aerospace and Safety and Productivity Solutions. The workforce reductions were primarily related to site transitions to more cost-effective locations. The repositioning charge included asset impairments of $47 million primarily in our Corporate segment related to the write-down of a legacy property in connection with its planned disposition.

In the quarter ended March 31, 2017, we recognized repositioning charges totaling $23 million including severance costs of $20 million related to workforce reductions of 622 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. Also, $6 million of net reserve adjustments increased the previously established accruals, primarily for severance in Aerospace, due mainly to lower attrition than anticipated and higher expected severance payments.

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

		Severance		Asset		Exit
		Costs		Impairments		Costs		Total
December 31, 2017	$	442	$	-	$	71	$	513
Charges		31		47		8		86
Usage - cash		(62)		-		(17)		(79)
Usage - noncash		-		(47)		-		(47)
Foreign currency translation		7		-		-		7
Adjustments		(2)		-		1		(1)
March 31, 2018	$	416	$	-	$	63	$	479

Certain repositioning projects in 2018 and 2017 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.