Rationalization Of Operations

3 Months Ended

Dec. 31, 2011

Rationalization Of Operations [Abstract]

Rationalization Of Operations

6.     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 three months ended December 31, 2011 follow (in millions):

	Sept 30, 2011		Expense		Paid/ Utilized		Dec 31, 2011
Severance and benefits	$	24		12		12		24
Lease and other contract terminations		3		3		3		3
Fixed asset write-downs		-		-		-		-
Vacant facility and other shutdown costs		2		2		2		2
Start-up and moving costs		1		6		7		-
Total	$	30		23		24		29

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

	Three Months Ended December 31,
	2010		2011
Process Management	$	2		5
Industrial Automation		5		4
Network Power		5		10
Climate Technologies		4		2
Tools and Storage		1		2
Total	$	17		23

The Company expects to incur full year 2012 rationalization expense of approximately $125 million, which includes the $23 million shown above, as well as costs to complete actions initiated before the first quarter and actions anticipated to be approved and initiated during the remainder of the year. Costs incurred during the three months of 2012 included severance and benefits associated with forcecount reduction, mainly for Network Power in Asia, Europe and North America. Start-up and moving costs, incurred to relocate assets to best cost locations and to expand geographically to directly serve local markets, were spread across all segments. Vacant facilities and other shutdown costs were not significant for any segment.