
	A summary of repositioning and other charges follows:

			Three Months Ended				Six Months Ended
			June 30,				June 30,
			2012		2011		2012		2011
Severance		$	37	$	16	$	52	$	43
Asset impairments			2		-		11		10
Exit costs			8		1		16		12
Adjustments			(23)		(10)		(30)		(14)
Total net repositioning charge			24		7		49		51

Asbestos related litigation charges,
net of insurance			43		40		79		78
Probable and reasonably estimable
environmental liabilities			67		50		128		101
Other			0		(3)		0		(3)

Total net repositioning and other charges		$	134	$	94	$	256	$	227

The following table summarizes the pretax distribution of total net repositioning and other charges by income statement classification:

		Three Months Ended				Six Months Ended
		June 30,				June 30,
		2012		2011		2012		2011
Cost of products and services sold	$	132	$	84	$	251	$	202
Selling, general and administrative expenses		2		10		5		25
	$	134	$	94	$	256	$	227

The following table summarizes the pretax impact of total net repositioning and other charges by segment:

		Three Months Ended				Six Months Ended
		June 30,				June 30,
		2012		2011		2012		2011
Aerospace	$	-	$	(6)	$	1	$	(6)
Automation and Control Solutions		10		12		9		45
Performance Materials and Technologies		-		-		14		13
Transportation Systems		60		40		112		76
Corporate		64		48		120		99
	$	134	$	94	$	256	$	227

In the quarter ended June 30, 2012, we recognized repositioning charges totaling $47 million including severance costs of $37 million (related to workforce reductions of 559 manufacturing and administrative positions) in our Automation and Control Solutions, Transportation Systems and Aerospace segments. The workforce reductions were primarily related to cost savings actions taken in connection with our ongoing functional transformation and productivity initiatives. The repositioning charge also included exit costs of $8 million mainly related to closure obligations associated with the planned shutdown of a Transportation Systems manufacturing facility. Also, $23 million of previously established accruals for severance in our Automation and Control Solutions and Aerospace segments were returned to income in the second quarter of 2012 due primarily to fewer employee severance actions caused by higher attrition than originally planned associated with prior severance programs.

In the quarter ended June 30, 2011, we recognized repositioning charges totaling $17 million primarily for severance costs related to workforce reductions of 360 manufacturing and administrative positions in our Automation and Control Solutions and Aerospace segments. The workforce reductions were related to cost savings actions taken in connection with our ongoing functional transformation and productivity initiatives and the consolidation of U.S. repair facilities in our Aerospace segment. Also, $10 million of previously established accruals for severance at our Aerospace segment were returned to income in the second quarter of 2011 due to fewer employee separations than originally planned associated with prior severance programs.

In the six months ended June 30, 2012, we recognized repositioning charges totaling $79 million including severance costs of $52 million related to workforce reductions of 1,177 manufacturing and administrative positions across all of our segments. The workforce reductions were primarily related to the planned shutdown of a manufacturing facility in our Transportation Systems segment, the exit from a product line in our Performance Materials and Technologies segment, and cost savings actions taken in connection with our ongoing functional transformation and productivity initiatives. The repositioning charge also included asset impairments of $11 million principally related to manufacturing plant and equipment associated with the exit of a product line in our Performance Materials and Technologies segment. The repositioning charge also included exit costs of $16 million principally related to closure obligations associated with the planned shutdown of manufacturing facilities and exit of a product line. Also, $30 million of previously established accruals for severance at our Automation and Control Solutions and Aerospace segments were returned to income in the first six months of 2012 due primarily to fewer employee severance actions caused by higher attrition than originally planned associated with prior severance programs.

In the six months ended June 30, 2011, we recognized repositioning charges totaling $65 million including severance costs of $43 million related to workforce reductions of 946 manufacturing and administrative positions in our Automation and Control Solutions, Aerospace and Performance Materials and Technologies segments. The workforce reductions were primarily related to cost savings actions taken in connection with our ongoing functional transformation and productivity initiatives, factory transitions in connection with acquisition-related synergies in our Automation and Control Solutions segment, the exit from and/or rationalization of certain product lines and markets in our Performance Materials and Technologies and Automation and Control Solutions segments, the consolidation of U.S. repair facilities in our Aerospace segment, and an organizational realignment of a business in our Automation and Control Solutions segment. The repositioning charge also included asset impairments of $10 million principally related to manufacturing plant and equipment associated with the exit of a product line and a factory transition as discussed above. The repositioning charge also included exit costs of $12 million principally for costs to terminate contracts, including an operating lease, related to the exit of a market and a factory transition as discussed above. Also, $14 million of previously established accruals, primarily for severance at our Aerospace and Automation and Control Solutions segments, were returned to income in the first six months of 2011 due principally to fewer employee separations than originally planned associated with prior severance programs.

The following table summarizes the status of our total repositioning reserves:

		Severance		Asset		Exit
		Costs		Impairments		Costs		Total

December 31, 2011	$	353	$	-	$	59	$	412
Charges		52		11		16		79
Usage - cash		(58)		-		(15)		(73)
Usage - noncash		-		(11)		-		(11)
Foreign currency translation		(13)		-		-		(13)
Adjustments		(30)		-		-		(30)

June 30, 2012	$	304	$	-	$	60	$	364

Certain repositioning projects in our Aerospace, Automation and Control Solutions and Transportation Systems segments included exit or disposal activities, the costs related to which will be recognized in future periods when the actual liability is incurred. The nature of these exit or disposal costs includes asset set-up and moving, product recertification and requalification, and employee retention, training and travel. The following tables summarize by segment, expected, incurred and remaining exit and disposal costs related to 2011 and 2010 repositioning actions which we were not able to recognize at the time the actions were initiated. The exit and disposal costs related to the repositioning actions in 2012 which we were not able to recognize at the time the actions were initiated were not significant.

					Automation
					and Control		Transportation
2011 Repositioning Actions			Aerospace		Solutions		Systems		Total

Expected exit and disposal costs		$	15	$	15	$	7	$	37
Costs incurred during:
	Year ended December 31, 2011		(1)		-		-		(1)
	Current year-to-date		-		(3)		-		(3)
Remaining exit and disposal costs at
	June 30, 2012	$	14	$	12	$	7	$	33

					Automation
					and Control		Transportation
2010 Repositioning Actions			Aerospace		Solutions		Systems		Total

Expected exit and disposal costs		$	11	$	10	$	2	$	23
Costs incurred during:
	Year ended December 31, 2010		-		-		-		-
	Year ended December 31, 2011		(2)		(3)		(1)		(6)
	Current year-to-date		-		-		(1)		(1)

Remaining exit and disposal costs at
	June 30, 2012	$	9	$	7	$	-	$	16

In the quarter ended June 30, 2012, we recognized a charge of $67 million for environmental liabilities deemed probable and reasonably estimable in the quarter. We also recognized a charge of $43 million primarily representing an update to our estimated liability for the resolution of Bendix related asbestos claims as of June 30, 2012, net of probable insurance recoveries. Environmental and Asbestos matters are discussed in detail in Note 15, Commitments and Contingencies.

In the quarter ended June 30, 2011, we recognized a charge of $50 million for environmental liabilities deemed probable and reasonably estimable in the quarter. We also recognized a charge of $40 million primarily representing an update to our estimated liability for the resolution of Bendix related asbestos claims as of June 30, 2011, net of probable insurance recoveries.

In the six months ended June 30, 2012, we recognized a charge of $128 million for environmental liabilities deemed probable and reasonably estimable in the period. We also recognized a charge of $79 million primarily representing an update to our estimated liability for the resolution of Bendix related asbestos claims as of June 30, 2012, net of probable insurance recoveries.

In the six months ended June 30, 2011, we recognized a charge of $101 million for environmental liabilities deemed probable and reasonably estimable in the period. We also recognized a charge of $78 million primarily representing an update to our estimated liability for the resolution of Bendix related asbestos claims as of June 30, 2011, net of probable insurance recoveries.