REPOSITIONING AND OTHER CHARGES

12 Months Ended

Dec. 31, 2015

Repositioning And Other Charges [Abstract]

Note 3. Repositioning and Other Charges

	A summary of repositioning and other charges follows:

			Years Ended December 31,
			2015		2014		2013
Severance		$	197	$	156	$	186
Asset impairments			13		12		23
Exit costs			6		16		22
Reserve adjustments			(53)		(38)		(30)
	Total net repositioning charge		163		146		201

Asbestos related litigation charges, net of insurance			189		182		181
Probable and reasonably estimable environmental liabilities			194		268		272
Other			-		2		9
	Total net repositioning and other charges	$	546	$	598	$	663

The following table summarizes the pretax distribution of total net repositioning and other charges by income statement classification:
		Years Ended December 31,
		2015		2014		2013
Cost of products and services sold	$	483	$	525	$	566
Selling, general and administrative expenses		63		73		97
	$	546	$	598	$	663

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

		Years Ended December 31,
		2015		2014		2013
Aerospace	$	211	$	193	$	235
Automation and Control Solutions		77		80		68
Performance Materials and Technologies		40		33		56
Corporate		218		292		304
	$	546	$	598	$	663

In 2015, we recognized repositioning charges totaling $216 million including severance costs of $197 million related to workforce reductions of 6,405 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. Also, $53 million of previously established accruals, primarily for severance, mainly in Aerospace and ACS, were returned to income in 2015 due principally to higher attrition than anticipated in prior severance programs resulting in lower required severance payments, and changes in scope of previously announced repositioning actions.

In 2014, we recognized repositioning charges totaling $184 million including severance costs of $156 million related to workforce reductions of 2,975 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 ACS and Aerospace to more cost-effective locations, and site consolidations and organizational realignments of businesses in ACS and PMT. Also, $38 million of previously established accruals, primarily for severance, mainly in Aerospace and ACS, were returned to income in 2014 due principally to the change in scope of a previously announced repositioning action and higher attrition than anticipated in prior severance programs resulting in lower required severance payments.

In 2013, we recognized repositioning charges totaling $231 million including severance costs of $186 million related to workforce reductions of 3,081 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 ACS, outsourcing of non-core components in Aerospace, the shutdown of a manufacturing facility in PMT, and factory transitions in ACS to more cost-effective locations. Also, $30 million of previously established accruals, primarily for severance, in ACS and PMT, were returned to income in 2013 due to changes in the scope of previously announced repositioning actions, lower than expected costs in completing the exit of a product line and higher attrition than anticipated in prior severance programs resulting in lower required severance payments.

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

			Severance		Asset		Exit
			Costs		Impairments		Costs		Total
Balance at December 31, 2012		$	276	$	-	$	47	$	323
	2013 charges		186		23		22		231
	2013 usage - cash		(139)		-		(21)		(160)
	2013 usage - noncash		-		(23)		-		(23)
	Adjustments		(27)		-		(3)		(30)
	Foreign currency translation		6		-		-		6
Balance at December 31, 2013			302		-		45		347
	2014 charges		156		12		16		184
	2014 usage - cash		(135)		-		(26)		(161)
	2014 usage - noncash		-		(12)		-		(12)
	Adjustments		(33)		-		(5)		(38)
	Foreign currency translation		(5)		-		-		(5)
Balance at December 31, 2014			285		-		30		315
	2015 charges		197		13		6		216
	2015 usage - cash		(109)		-		(9)		(118)
	2015 usage - noncash		-		(13)		-		(13)
	Acquisitions		16		-		-		16
	Adjustments		(49)		-		(4)		(53)
	Foreign currency translation		(11)		-		(2)		(13)
Balance at December 31, 2015		$	329	$	-	$	21	$	350

Certain repositioning projects in Aerospace, ACS and PMT in 2015, 2014 and 2013 included exit or disposal activities, the costs related to which will be recognized in future periods when the actual liability is incurred. Such exit and disposal costs were not significant.