RESTRUCTURING COSTS

6 Months Ended

Jun. 30, 2020

Restructuring and Related Activities [Abstract]

During the three and six months ended June 30, 2020 and 2019, we recorded net pre-tax restructuring costs for new and ongoing restructuring actions as follows:


	For the Three Months Ended June 30,						For the Six Months Ended June 30,
(dollars in millions)	2020		2019		2020		2019
HVAC	$	1	$	18	$	3	$	35
Refrigeration	3		4		3		7
Fire & Security	6		8		9		21
Eliminations and other	1		—		1		—
Total restructuring costs	$	11	$	30	$	16	$	63

Restructuring charges incurred during the six months ended June 30, 2020 and 2019 primarily relate to actions initiated during 2020 and 2019, and were recorded as follows:


	For the Three Months Ended June 30,						For the Six Months Ended June 30,
(dollars in millions)	2020		2019		2020		2019
Cost of sales	$	5	$	8	$	6	$	13
Selling, general and administrative	6		22		10		50

Total restructuring costs	$	11	$	30	$	16	$	63

2020 Actions. During the six months ended June 30, 2020, we recorded net pre-tax restructuring costs of $13 million for restructuring actions initiated in 2020, consisting of $5 million in Cost of products sold and Cost of services sold and $8 million in Selling, general and administrative. The 2020 actions relate to ongoing cost reduction efforts, including workforce reductions and the consolidation of field operations. We are targeting to complete the majority of the remaining actions in 2021.

The following table summarizes the accrual balance and utilization for the 2020 restructuring actions:


(dollars in millions)	Severance		Facility Exit, Lease Termination and Other Costs		Total
For the Three Months Ended June 30, 2020
Restructuring accrual as of March 31, 2020	$	2	$	—	$	2
Net pre-tax restructuring costs	10		1		11
Utilization, foreign exchange and other costs	(4)		—		(4)
Balance as of June 30, 2020	$	8	$	1	$	9

For the Six Months Ended June 30, 2020
Restructuring accrual as of January 1, 2020	$	—	$	—	$	—
Net pre-tax restructuring costs	12		1		13
Utilization, foreign exchange and other costs	(4)		—		(4)
Balance as of June 30, 2020	$	8	$	1	$	9

The following table summarizes expected, incurred and remaining costs for the 2020 restructuring actions by segment:


(dollars in millions)	Expected Costs		Costs Incurred - Three Months Ended March 31, 2020		Costs Incurred - Three Months Ended June 30, 2020		Remaining Costs at June 30, 2020
HVAC	$	5	$	(1)	$	(2)	$	2
Refrigeration	5		—		(3)		2
Fire & Security	8		(1)		(5)		2
Eliminations and other	2		—		(1)		1
Total	$	20	$	(2)	$	(11)	$	7

2019 Actions. During the six months ended June 30, 2020 and 2019, we recorded net pre-tax restructuring costs totaling $3 million and $49 million, respectively, for restructuring actions initiated in 2019, consisting of $1 million and $8 million in Cost of products sold and Cost of services sold and $2 million and $41 million in Selling, general and administrative, respectively. The 2019 actions relate to ongoing cost reduction efforts, including workforce reductions and consolidation of field operations. The following table summarizes the accrual balances and utilization for the 2019 restructuring actions:


(dollars in millions)	Severance		Facility Exit, Lease Termination and Other Costs		Total
For the Three Months Ended June 30, 2020
Restructuring accrual as of March 31, 2020	$	32	$	—	$	32
Net pre-tax restructuring costs	—		—		—
Utilization, foreign exchange and other costs	(5)		—		(5)
Balance as of June 30, 2020	$	27	$	—	$	27

For the Six Months Ended June 30, 2020
Restructuring accrual as of January 1, 2020	$	43	$	1	$	44
Net pre-tax restructuring costs	3		—		3
Utilization, foreign exchange and other costs	(19)		(1)		(20)
Balance as of June 30, 2020	$	27	$	—	$	27

The following table summarizes expected, incurred and remaining costs for the 2019 restructuring actions by segment:


(dollars in millions)	Expected Costs		Costs Incurred in 2019		Costs Incurred - Three Months Ended March 31, 2020		Costs Incurred - Three Months Ended June 30, 2020		Remaining Costs at June 30, 2020
HVAC	$	53	$	(51)	$	(1)	$	2	$	3
Refrigeration	16		(14)		—		(1)		1
Fire & Security	49		(43)		(2)		(1)		3
Eliminations and other	2		(2)		—		—		—
Total	$	120	$	(110)	$	(3)	$	—	$	7

2018 and Prior Actions. During the six months ended June 30, 2020 and 2019, we recorded net pre-tax restructuring costs totaling $0 million and $14 million, respectively, for restructuring actions initiated in 2018 and prior, consisting of $0 million and $5 million in Cost of products sold and Cost of services sold and $0 million and $9 million in Selling, general and administrative, respectively. As of June 30, 2020 and 2019, we had approximately $11 million and $37 million, respectively, of accrual balances remaining related to 2018 and prior actions.