RESTRUCTURING COSTS (Tables)

9 Months Ended

Sep. 30, 2020

Restructuring and Related Activities [Abstract]

Schedule of Restructuring Reserve by Type of Cost

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

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
(dollars in millions)	2020		2019		2020		2019
HVAC	$	—	$	12	$	3	$	47
Refrigeration	(1)		7		2		14
Fire & Security	4		14		13		35
Eliminations and other	—		1		1		1
Total restructuring costs	$	3	$	34	$	19	$	97

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

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
(dollars in millions)	2020		2019		2020		2019
Cost of sales	$	(1)	$	14	$	5	$	27
Selling, general and administrative	4		20		14		70
Total restructuring costs	$	3	$	34	$	19	$	97

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 September 30, 2020
Restructuring accrual as of June 30, 2020	$	8	$	1	$	9
Net pre-tax restructuring costs	5		—		5
Utilization, foreign exchange and other costs	(4)		—		(4)
Balance as of September 30, 2020	$	9	$	1	$	10
For the Nine Months Ended September 30, 2020
Restructuring accrual as of January 1, 2020	$	—	$	—	$	—
Net pre-tax restructuring costs	17		1		18
Utilization, foreign exchange and other costs	(8)		—		(8)
Balance as of September 30, 2020	$	9	$	1	$	10

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		Costs Incurred - Three Months Ended September 30, 2020		Remaining Costs at September 30, 2020
HVAC	$	5	$	(1)	$	(2)	$	(1)	$	1
Refrigeration	3		—		(3)		—		—
Fire & Security	13		(1)		(5)		(4)		3
Eliminations and other	1		—		(1)		—		—
Total	$	22	$	(2)	$	(11)	$	(5)	$	4

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

Schedule of Restructuring and Related Costs

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 September 30, 2020
Restructuring accrual as of June 30, 2020	$	27	$	—	$	27
Net pre-tax restructuring costs	—		—		—
Utilization, foreign exchange and other costs	(5)		—		(5)
Balance as of September 30, 2020	$	22	$	—	$	22
For the Nine Months Ended September 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	(24)		(1)		(25)
Balance as of September 30, 2020	$	22	$	—	$	22