Rationalization Of Operations

9 Months Ended

Jun. 30, 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 be in the range of $160 million to $180 million. This includes the $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 for the three and nine months ended June 30, 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 June 30,			Nine Months Ended June 30,
	2014		2015	2014	2015
Process Management	$	4	12	12	37
Industrial Automation	2		4	7	8
Network Power	3		17	13	31
Climate Technologies	1		2	11	8
Commercial & Residential Solutions	1		1	2	5
Total	$	11	36	45	89

Details of the change in the liability for rationalization during the nine months ended June 30, 2015 follow (in millions):



	Sept 30, 2014		Expense	Paid/Utilized	June 30, 2015
Severance and benefits	$	20	72	47	45
Lease and other contract terminations	1		1	2	—
Fixed assets write-downs	—		2	2	—
Vacant facility and other shutdown costs	—		4	2	2
Start-up and moving costs	1		10	10	1
Total	$	22	89	63	48

The severance and benefits expenses incurred year-to-date are associated with closing 8 facilities and reducing forcecount by approximately 2,300, mainly for Process Management in Europe and North America and Network Power in Asia, Europe and North America. Start-up and moving costs were incurred across all segments to redeploy assets to best cost locations and expand geographically to directly serve local markets.