Rationalization Of Operations

9 Months Ended

Jun. 30, 2012

Restructuring Charges [Abstract]

Rationalization Of Operations

Rationalization of operations expense reflects costs associated with the Company’s efforts to continually improve operational efficiency and deploy assets globally in order to remain competitive on a worldwide basis. Details of the change in the liability for rationalization during the nine months ended June 30, 2012 follow (in millions):

	Sept 30, 2011		Expense	Paid/Utilized	June 30, 2012
Severance and benefits	$	24	47	47	24
Lease and other contract terminations	3		9	7	5
Fixed asset write-downs	—		2	2	—
Vacant facility and other shutdown costs	2		9	9	2
Start-up and moving costs	1		22	23	—
Total	$	30	89	88	31

Rationalization of operations expense by segment is summarized as follows (in millions):

	Three Months Ended June 30,			Nine Months Ended June 30,
	2011		2012	2011	2012
Process Management	$	4	4	8	13
Industrial Automation	8		13	18	21
Network Power	6		14	16	40
Climate Technologies	2		2	8	8
Commercial & Residential Solutions	1		2	4	7
Total	$	21	35	54	89

The Company expects to incur full year 2012 rationalization expense of approximately $125 million, which includes $89 million incurred to date, as well as costs to complete actions initiated before the end of the third quarter and actions anticipated to be approved and initiated during the remainder of the year. Costs incurred during the nine months of 2012 included severance and other benefits associated with forcecount reduction, mainly for Network Power in Asia, Europe and North America. Start-up and moving costs incurred to redeploy assets to best cost locations and expand geographically to directly serve local markets were spread across all segments. Vacant facilities and other shutdown costs increased, primarily in Network Power and Industrial Automation.