Rationalization Of Operations

9 Months Ended

Jun. 30, 2016

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 $90 to $100 million. This includes $43 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, 2016 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 June 30,				Nine Months Ended June 30,
	2015		2016		2015	2016
Process Management	$	12	7		37	20
Industrial Automation	4		5		8	9
Network Power	17		(1	)	31	5
Climate Technologies	2		1		8	4
Commercial & Residential Solutions	1		—		5	2
Corporate	—		3		—	3
Total	$	36	15		89	43

Details of the change in the liability for rationalization during the nine months ended June 30, 2016 follow (in millions):



	Sept. 30, 2015		Expense	Paid/Utilized	June 30, 2016
Severance and benefits	$	105	23	88	40
Lease and other contract terminations	1		2	2	1
Vacant facility and other shutdown costs	3		6	8	1
Start-up and moving costs	3		12	13	2
Total	$	112	43	111	44