Asset Impairment And Exit Costs

6 Months Ended

Jun. 30, 2012

Restructuring and Related Activities [Abstract]

Asset Impairment and Exit Costs

Asset Impairment and Exit Costs:

Pre-tax asset impairment and exit costs consisted of the following:

(in millions)	For the Six Months Ended June 30,				For the Three Months Ended June 30,
	2012		2011		2012		2011
Separation programs:
European Union	$	—	$	12	$	—	$	1
Eastern Europe, Middle East & Africa	—		2		—		—
Asia	—		2		—		—
Latin America & Canada	16		1		8		—
Total separation programs	16		17		8		1
Asset impairment and exit costs	$	16	$	17	$	8	$	1

Exit Costs

Separation Programs

The 2012 pre-tax separation program charges primarily related to severance costs associated with the ongoing optimization of our manufacturing footprint. The 2011 pre-tax separation program charges primarily related to severance costs for factory and R&D restructurings in the European Union.

Movement in Exit Cost Liabilities

The movement in exit cost liabilities for the six months ended June 30,2012 was as follows:

(in millions)
Liability balance, January 1, 2012	$	28
Charges	16
Cash spent	(20		)
Currency/other	(2		)
Liability balance, June 30, 2012	$	22

Cash payments related to exit costs at PMI were $20 million and $7 million for the six months and three months ended June 30,2012, respectively, and $25 million and $20 million for the six months and three months ended June 30,2011, respectively. Future cash payments for exit costs incurred to date are expected to be approximately $22 million, and will be substantially paid by 2013.