Restructuring Costs

During the nine months ended September 30, 2014, we recorded net pre-tax restructuring costs totaling $243 million for new and ongoing restructuring actions. We recorded charges in the segments as follows:



(Dollars in millions)
Otis	$	53
UTC Climate, Controls & Security	82
Pratt & Whitney	55
UTC Aerospace Systems	36
Sikorsky	17
Total	$	243

Restructuring charges incurred during the nine months ended September 30, 2014 primarily relate to actions initiated during 2014 and 2013, and were recorded as follows:



(Dollars in millions)
Cost of sales	$	136
Selling, general and administrative	107
Total	$	243

2014 Actions. During the nine months ended September 30, 2014, we initiated restructuring actions relating to ongoing cost reduction efforts, including workforce reductions and the consolidation of field operations. We recorded net pre-tax restructuring costs totaling $215 million, including $109 million in cost of sales and $106 million in selling, general and administrative expenses.

We are targeting the majority of the remaining workforce and all facility related cost reduction actions for completion during 2014 and 2015. No specific plans for significant other actions have been finalized at this time. The following table summarizes the accrual balances and utilization by cost type for the 2014 restructuring actions:



(Dollars in millions)	Severance			Asset Write-Downs			Facility Exit, Lease Termination and Other Costs			Total
Restructuring accruals at July 1, 2014	$	112		$	—		$	1		$	113
Net pre-tax restructuring costs	43			4			17			64
Utilization and foreign exchange	(45		)	(4		)	(7		)	(56		)
Balance at September 30, 2014	$	110		$	—		$	11		$	121

The following table summarizes expected, incurred and remaining costs for the 2014 restructuring actions by segment:



(Dollars in millions)	Expected Costs		Costs Incurred Quarter Ended March 31, 2014			Costs Incurred Quarter Ended June 30, 2014			Costs Incurred Quarter Ended September 30, 2014			Remaining Costs at September 30, 2014
Otis	$	85	$	(18	)	$	(28	)	$	(17	)	$	22
UTC Climate, Controls & Security	97		(16		)	(21		)	(16		)	44
Pratt & Whitney	78		(37		)	(10		)	(8		)	23
UTC Aerospace Systems	37		(3		)	(2		)	(22		)	10
Sikorsky	17		(16		)	—			(1		)	—
Total	$	314	$	(90	)	$	(61	)	$	(64	)	$	99

2013 Actions. During the nine months ended September 30, 2014, we recorded net pre-tax restructuring costs totaling $33 million for restructuring actions initiated in 2013, including $29 million in cost of sales and $4 million in selling, general and administrative expenses. The 2013 actions relate to ongoing cost reduction efforts, including workforce reductions and the consolidation of field operations. The following table summarizes the accrual balances and utilization by cost type for the 2013 restructuring actions:



(Dollars in millions)	Severance			Asset Write-Downs		Facility Exit, Lease Termination and Other Costs			Total
Restructuring accruals at July 1, 2014	$	132		$	—	$	23		$	155
Net pre-tax restructuring costs	(4		)	—		4			—
Utilization and foreign exchange	(26		)	—		(6		)	(32		)
Balance at September 30, 2014	$	102		$	—	$	21		$	123

The following table summarizes expected, incurred and remaining costs for the 2013 restructuring actions by segment:



(Dollars in millions)	Expected Costs		Costs Incurred in 2013			Costs Incurred Quarter Ended March 31, 2014			Costs Incurred Quarter Ended June 30, 2014			Costs Incurred Quarter Ended September 30, 2014			Remaining Costs at September 30, 2014
Otis	$	69	$	(69	)	$	(1	)	$	2		$	—		$	1
UTC Climate, Controls & Security	124		(89		)	(24		)	(2		)	2			11
Pratt & Whitney	163		(154		)	(6		)	1			—			4
UTC Aerospace Systems	88		(71		)	(1		)	(3		)	(3		)	10
Sikorsky	36		(38		)	—			1			1			—
Total	$	480	$	(421	)	$	(32	)	$	(1	)	$	—		$	26

2012 Actions. As of September 30, 2014, we have approximately $55 million of accrual balances remaining related to 2012 actions.