Restructuring Programs and Related Costs

During the six months ended June 30, 2017, we recorded net restructuring and asset impairment charges of $46 million, which included approximately $31 million of severance costs related to headcount reductions of approximately 2,500 employees worldwide, $16 million of lease cancellation costs and $2 million of asset impairments. These costs were offset by $3 million of net reversals, primarily resulting from changes in estimated reserves from prior period initiatives. The restructuring reserve balance as of June 30, 2017, for all programs was $42 million, of which approximately $38 million is expected to be spent over the next twelve months.

We also recorded $8 million of costs during the six months ended June 30, 2017, primarily related to professional support services associated with the implementation of the strategic transformation program.

Information related to restructuring program activity during the six months ended June 30, 2017 is outlined below:



(in millions)	Severance and Related Costs			Lease Cancellation and Other Costs			Asset Impairments⁽²⁾			Total
Accrued Balance at December 31, 2016	$	15		$	5		$	1		$	21
Restructuring provision	31			16			2			49
Reversals of prior accruals	(2		)	(1		)	—			(3		)
Net Current Period Charges⁽¹⁾	29			15			2			46
Charges against reserve and currency	(19		)	(3		)	(3		)	(25		)
Accrued Balance at June 30, 2017	$	25		$	17		$	—		$	42

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(1)	Represents net amount recognized within the Condensed Consolidated Statements of Income (Loss) for the period shown.


(2)	Charges associated with asset impairments represent the write-down of the related assets to their new cost basis and are recorded concurrently with the recognition of the provision.

Reconciliation to the Condensed Consolidated Statements of Cash Flows:



	Three Months Ended June 30,						Six Months Ended June 30,
(in millions)	2017			2016			2017			2016
Charges against reserve	$	16		$	15		$	25		$	22
Asset impairments	(3		)	(2		)	(3		)	(2		)
Restructuring Cash Payments	$	13		$	13		$	22		$	20

The following table summarizes the total amount of costs incurred in connection with these restructuring programs by segment:



	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	2017		2016		2017		2016
Commercial Industries	$	22	$	15	$	31	$	36
Public Sector	11		4		14		5
Other	1		1		1		4
Total Net Restructuring and Asset Impairment Charges	$	34	$	20	$	46	$	45