
	A summary of repositioning and other charges follows:

			Three Months Ended				Six Months Ended
			June 30,				June 30,
			2014		2013		2014		2013
Severance		$	11	$	60	$	82	$	98
Asset impairments			2		1		11		1
Exit costs			4		-		12		2
Adjustments			(3)		0		(9)		(7)
Total net repositioning charge			14		61		96		94

Asbestos related litigation charges,
net of insurance			51		50		99		91
Probable and reasonably estimable
environmental liabilities			52		56		134		110
Other			-		4		2		4

Total net repositioning and other charges		$	117	$	171	$	331	$	299

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,
		2014		2013		2014		2013
Cost of products and services sold	$	110	$	147	$	301	$	255
Selling, general and administrative expenses		7		24		30		44
	$	117	$	171	$	331	$	299

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,
		2014		2013		2014		2013
Aerospace	$	-	$	-	$	1	$	22
Automation and Control Solutions		5		28		51		39
Performance Materials and Technologies		6		19		20		16
Transportation Systems		50		63		125		103
Corporate		56		61		134		119
	$	117	$	171	$	331	$	299

In the quarter ended June 30, 2014, we recognized repositioning charges totaling $17 million including severance costs of $11 million related to workforce reductions of 213 manufacturing and administrative positions primarily in our Automation and Control Solutions segment. The workforce reductions were primarily related to cost savings actions taken in connection with our productivity and ongoing functional transformation initiatives. The repositioning charge also includes exit costs of $4 million primarily related to closure obligations associated with site consolidations in our Performance Materials and Technologies segment.

In the quarter ended June 30, 2013, we recognized repositioning charges totaling $61 million primarily for severance costs related to workforce reductions of 577 manufacturing and administrative positions in our Automation and Control Solutions, Performance Materials and Technologies and Transportation Systems segments. The workforce reductions were primarily related to cost savings actions taken in connection with our productivity and ongoing functional transformation initiatives, achieving acquisition-related synergies in our Automation and Control Solutions segment, outsourcing of certain non-core components in our Transportation Systems segment and a factory transition in our Automation and Control Solutions segment to a more cost-effective location.

In the six months ended June 30, 2014, we recognized repositioning charges totaling $105 million including severance costs of $82 million related to workforce reductions of 1,733 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 and Performance Materials and Technologies segments. The repositioning charge includes asset impairments of $11 million primarily related to manufacturing plant and equipment associated with site consolidations and factory transitions. The repositioning charge also includes exit costs of $12 million primarily related to closure obligations and costs for early termination of lease contracts associated with site consolidations and factory transitions. Also, $9 million of previously established accruals for severance mainly in our Automation and Control Solutions segment were returned to income in the six months ended June 30, 2014 due principally to fewer employee severance actions caused by higher attrition than originally associated with prior severance programs.

In the six months ended June 30, 2013, we recognized repositioning charges totaling $101 million including severance costs of $98 million related to workforce reductions of 1,224 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, achieving acquisition-related synergies in our Automation and Control Solutions segment and outsourcing of non-core components in our Transportation Systems segment. Also, $7 million of previously established accruals for severance in our Performance Materials and Technologies segment were returned to income in the six months ended June 30, 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		82		11		12		105
Usage - cash		(62)		-		(15)		(77)
Usage - noncash		-		(11)		-		(11)
Foreign currency translation		(4)		-		2		(2)
Adjustments		(9)		-		-		(9)

June 30, 2014	$	309	$	-	$	44	$	353

Certain repositioning projects in our Aerospace, Automation and Control Solutions, Performance Materials and Technologies 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		Performance
					and Control		Materials and		Transportation
	2011 Repositioning Actions		Aerospace		Solutions		Technologies		Systems		Total

Expected exit and
	disposal costs	$	15	$	5	$	7	$	7	$	34
Costs incurred during:
	Year ended
	December 31, 2011		(1)		-		-		-		(1)
	Year ended
	December 31, 2012		(2)		(2)		(1)		(1)		(6)
	Year ended
	December 31, 2013		(2)		(1)		(3)		(2)		(8)
	Current year-to-date		(1)		-		-		(1)		(2)
Remaining exit and disposal
	costs at June 30, 2014	$	9	$	2	$	3	$	3	$	17

In the quarter ended June 30, 2014, we recognized a charge of $52 million for environmental liabilities deemed probable and reasonably estimable in the quarter. We also recognized a charge of $51 million primarily representing an update to our estimated liability for the resolution of Bendix-related asbestos claims as of June 30, 2014, net of probable insurance recoveries. Environmental and Asbestos matters are discussed in detail in Note 17, Commitments and Contingencies.

In the quarter ended June 30, 2013, we recognized a charge of $56 million for environmental liabilities deemed probable and reasonably estimable in the quarter. We also recognized a charge of $50 million primarily representing an update to our estimated liability for the resolution of Bendix-related asbestos claims as of June 30, 2013, net of probable insurance recoveries. We also recognized other charges of $4 million in connection with the evaluation of potential resolution of a legal matter.

In the six months ended June 30, 2014, we recognized a charge of $134 million for environmental liabilities deemed probable and reasonably estimable in the period. We also recognized a charge of $99 million primarily representing an update to our estimated liability for the resolution of Bendix-related asbestos claims as of June 30, 2014, net of probable insurance recoveries.

In the six months ended June 30, 2013, we recognized a charge of $110 million for environmental liabilities deemed probable and reasonably estimable in the period. We also recognized a charge of $91 million primarily representing an update to our estimated liability for the resolution of Bendix-related asbestos claims as of June 30, 2013, net of probable insurance recoveries.