Rationalization Of Operations

9 Months Ended

Jun. 30, 2014

Restructuring and Related Activities [Abstract]

Rationalization of operations expense reflects costs associated with the Company’s ongoing efforts to 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, 2014 follow (in millions):



	Sept 30, 2013		Expense	Paid/Utilized	June 30, 2014
Severance and benefits	$	27	23	24	26
Lease and other contract terminations	3		2	3	2
Fixed assets write-downs	—		1	1	—
Vacant facility and other shutdown costs	1		5	5	1
Start-up and moving costs	1		14	14	1
Total	$	32	45	47	30

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



	Three Months Ended June 30,			Nine Months Ended June 30,
	2013		2014	2013	2014
Process Management	$	4	4	11	12
Industrial Automation	14		2	24	7
Network Power	12		3	21	13
Climate Technologies	—		1	2	11
Commercial & Residential Solutions	3		1	7	2
Total	$	33	11	65	45

The Company expects to incur full year 2014 rationalization expense of approximately $70 million. This includes the $45 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 for the three and nine months ended June 30, 2014 largely relate to deployment of resources to higher growth regions and to directly serve local markets.

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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