Rationalization Of Operations

3 Months Ended

Dec. 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 2016 rationalization expense to be in the range of $60 to $70 million. This includes $13 million incurred to date, as well as costs to complete actions initiated before the end of the first quarter and actions anticipated to be approved and initiated during the remainder of the year. Costs for the three months ended December 31, 2015 largely relate to restructuring of the global cost structure consistent with 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 December 31,
	2014		2015
Process Management	$	3	4
Industrial Automation	2		3
Network Power	1		4
Climate Technologies	2		1
Commercial & Residential Solutions	1		1
Total	$	9	13

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



	Sept 30, 2015		Expense	Paid/Utilized	Dec 31, 2015
Severance and benefits	$	105	6	46	65
Lease and other contract terminations	1		1	1	1
Vacant facility and other shutdown costs	3		2	2	3
Start-up and moving costs	3		4	4	3
Total	$	112	13	53	72