Rationalization Of Operations

6 Months Ended

Mar. 31, 2013

Restructuring and Related Activities [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 six months ended March 31, 2013 follow (in millions):

	Sept 30, 2012		Expense	Paid/Utilized	Mar 31, 2013
Severance and benefits	$	23	13	17	19
Lease and other contract terminations	5		2	2	5
Vacant facility and other shutdown costs	3		4	5	2
Start-up and moving costs	1		13	13	1
Total	$	32	32	37	27

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

	Three Months Ended March 31,			Six Months Ended March 31,
	2012		2013	2012	2013
Process Management	$	4	4	9	7
Industrial Automation	4		5	8	10
Network Power	16		5	26	9
Climate Technologies	4		1	6	2
Commercial & Residential Solutions	3		1	5	4
Total	$	31	16	54	32

The Company expects to incur full year 2013 rationalization expense of approximately $75 million to $85 million. This includes the $32 million incurred to date, as well as costs to complete actions initiated before the end of the second quarter and actions anticipated to be approved and initiated during the remainder of the year. Severance and benefits costs are associated with forcecount reduction, mainly for Industrial Automation in Asia and North America and Network Power in Asia. Start-up and moving costs to redeploy assets to best cost locations and expand geographically to directly serve local markets were incurred in all segments.