Rationalization Of Operations

6 Months Ended

Mar. 31, 2015

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. The Company expects full year 2015 rationalization expense to exceed $140 million. This includes the $53 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. Costs for the three and six months ended March 31, 2015 largely relate to selective repositioning of the global cost structure to match the current level of economic activity, as well as the redeployment of resources for future growth.

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



	Three Months Ended March 31,			Six Months Ended March 31,
	2014		2015	2014	2015
Process Management	$	5	22	8	25
Industrial Automation	3		2	5	4
Network Power	6		13	10	14
Climate Technologies	7		4	10	6
Commercial & Residential Solutions	—		3	1	4
Total	$	21	44	34	53

Details of the change in the liability for rationalization during the six months ended March 31, 2015 follow (in millions):



	Sept 30, 2014		Expense	Paid/Utilized	Mar 31, 2015
Severance and benefits	$	20	42	15	47
Lease and other contract terminations	1		1	2	—
Fixed assets write-downs	—		2	2	—
Vacant facility and other shutdown costs	—		2	1	1
Start-up and moving costs	1		6	6	1
Total	$	22	53	26	49

- 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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