
	A summary of repositioning and other charges follows:

			Three Months Ended
			March 31,
			2014		2013
Severance		$	71	$	38
Asset impairments			9		-
Exit costs			8		2
Adjustments			(6)		(7)
Total net repositioning charge			82		33

Asbestos related litigation charges,
net of insurance			48		41
Probable and reasonably estimable
environmental liabilities			82		54
Other			2		-

Total net repositioning and other charges		$	214	$	128

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

		Three Months Ended
		March 31,
		2014		2013
Cost of products and services sold	$	191	$	108
Selling, general and administrative expenses		23		20
	$	214	$	128

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

		Three Months Ended
		March 31,
		2014		2013
Aerospace	$	1	$	22
Automation and Control Solutions		52		9
Performance Materials and Technologies		8		(1)
Transportation Systems		75		40
Corporate		78		58
	$	214	$	128

In the quarter ended March 31, 2014, we recognized repositioning charges totaling $88 million including severance costs of $71 million related to workforce reductions of 1,520 manufacturing and administrative positions across all of our segments. The workforce reductions were primarily related to cost savings actions taken in connection with our productivity and ongoing functional transformation initiatives, factory transitions in our Automation and Control Solutions segment to more cost-effective locations, site consolidations and organizational realignments of businesses in our Automation and Control Solutions segment. The repositioning charge includes asset impairments of $9 million primarily related to manufacturing plant and equipment associated with site consolidations and factory transitions. The repositioning charge also includes exit costs of $8 million primarily related to closure obligations and costs for early termination of lease contracts associated with site consolidations and factory transitions. Also, $6 million of previously established accruals for severance in our Automation and Control Solutions segment were returned to income in the quarter ended March 31, 2014 due mainly to fewer employee severance actions caused by higher attrition than originally associated with prior severance programs.

In the quarter ended March 31, 2013, we recognized repositioning charges totaling $40 million primarily for severance costs related to workforce reductions of 647 manufacturing and administrative positions mainly in our Aerospace and Automation and Control Solutions segments. The workforce reductions were primarily related to cost savings actions taken in connection with our productivity and ongoing functional transformation initiatives. Also, $7 million of previously established accruals in our Performance Materials and Technologies and Automation and Control Solutions segments were returned to income in the quarter ended March 31, 2013 due primarily to lower than expected costs in completing the exit of a product line.

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

		Severance		Asset		Exit
		Costs		Impairments		Costs		Total

December 31, 2013	$	302	$	-	$	45	$	347
Charges		71		9		8		88
Usage - cash		(29)		-		(8)		(37)
Usage - noncash		-		(9)		-		(9)
Foreign currency translation		(1)		-		2		1
Adjustments		(6)		-		-		(6)

March 31, 2014	$	337	$	-	$	47	$	384

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 table summarizes by segment, expected, incurred and remaining exit and disposal costs related to 2011 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 2014, 2013 and 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	$	12	$	7	$	34
Costs incurred during:
	Year ended December 31, 2011		(1)		-		-		(1)
	Year ended December 31, 2012		(2)		(3)		(1)		(6)
	Year ended December 31, 2013		(2)		(4)		(2)		(8)
	Current year-to-date		-		-		(1)		(1)
Remaining exit and disposal
	costs at March 31, 2014	$	10	$	5	$	3	$	18

In the quarter ended March 31, 2014, we recognized a charge of $82 million for environmental liabilities deemed probable and reasonably estimable in the quarter. We also recognized a charge of $48 million primarily representing an update to our estimated liability for the resolution of Bendix-related asbestos claims as of March 31, 2014, net of probable insurance recoveries. We also recognized other charges of $2 million in connection with the potential resolution of a legal matter. Environmental and Asbestos matters are discussed in detail in Note 17, Commitments and Contingencies.

In the quarter ended March 31, 2013, we recognized a charge of $54 million for environmental liabilities deemed probable and reasonably estimable in the quarter. We also recognized a charge of $41 million primarily representing an update to our estimated liability for the resolution of Bendix-related asbestos claims as of March 31, 2013, net of probable insurance recoveries.