Rationalization Of Operations

9 Months Ended

Jun. 30, 2011

Rationalization of operations expense reflects costs associated with the Company's efforts to continually 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, 2011 follow (in millions):


	Sept 30,				Paid/		June 30,
	2010		Expense		Utilized		2011
Severance and benefits	$	57		15		41		31
Lease and other contract terminations		8		2		7		3
Fixed asset write-downs		-		1		1		-
Vacant facility and other shutdown costs		4		10		11		3
Start-up and moving costs		-		26		25		1
Total	$	69		54		85		38

Rationalization of operations expense by segment is summarized as follows (in millions):


	Three Months Ended				Nine Months Ended
	June 30,				June 30,
	2010		2011		2010		2011
Process Management	$	6		4		22		8
Industrial Automation		11		8		44		18
Network Power		5		6		21		16
Climate Technologies		4		2		9		8
Tools and Storage		1		1		5		4
Total	$	27		21		101		54

The Company expects to incur full year 2011 rationalization expense of approximately $80 million to $90 million, which includes the $54 million shown above, 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 incurred during the nine months of 2011 included shutdown costs and start-up and moving costs due to workforce reductions and/or the consolidation of facilities. Vacant facilities and other shutdown costs were not material for any segment. Actions during the nine months of 2011 included Process Management reducing forcecount and consolidating facilities in North America and Europe; Industrial Automation consolidating production facilities within North America and Europe; Network Power reducing forcecount in North America, Europe and Asia and consolidating facilities in Asia and North America; and Climate Technologies consolidating production facilities in North America.

- 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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