REPOSITIONING AND OTHER CHARGES

6 Months Ended

Jun. 30, 2016

Repositioning And Other Charges [Abstract]

Repositioning and Other Charges

Note 4. Repositioning and Other Charges

	A summary of repositioning and other charges follows:
			Three Months Ended				Six Months Ended
			June 30,				June 30,
			2016		2015		2016		2015
Severance		$	70	$	38	$	98	$	75
Asset impairments			24		-		31		8
Exit costs			3		1		5		2
Reserve adjustments			(44)		(5)		(61)		(12)
Total net repositioning charge			53		34		73		73
Asbestos related litigation charges,
net of insurance			56		46		109		92
Probable and reasonably estimable
environmental liabilities			31		49		83		95
Total net repositioning and other charges		$	140	$	129	$	265	$	260

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,
		2016		2015		2016		2015
Cost of products and services sold	$	79	$	112	$	184	$	234
Selling, general and administrative expenses		37		17		57		26
Other (income) expense		24		-		24		-
	$	140	$	129	$	265	$	260

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,
		2016		2015		2016		2015
Aerospace	$	72	$	48	$	121	$	96
Automation and Control Solutions		(1)		15		6		39
Performance Materials and Technologies		27		14		36		21
Corporate		42		52		102		104
	$	140	$	129	$	265	$	260

In the quarter ended June 30, 2016, we recognized a repositioning charge totaling$97 million including severance costs of $70 million related to workforce reductions of2,578 manufacturing and administrative positions in ACS, Aerospace and PMT. The workforce reductions were primarily related to cost savings actions taken in connection with our productivity and ongoing functional transformation initiatives. The repositioning charge included asset impairments of $24 million principally related to the write-off of certain intangible assets in connection with the planned sale of a PMT business. Also, $44 million of previously established accruals for severance in ACS, Aerospace and PMT were returned to income as a result of higher attrition than anticipated in prior severance programs resulting in lower required severance payments, lower than expected severance costs in certain repositioning actions, and changes in the scope of previously announced repositioning actions.

In the quarter ended June 30, 2015, we recognized a repositioning charge totaling $39 million primarily for severance costs related to workforce reductions of940manufacturing and administrative positions primarily in ACS and PMT. The workforce reductions were primarily related to cost savings actions taken in connection with our productivity and ongoing functional transformation initiatives.

Inthe six months endedJune 30, 2016, we recognized a repositioning charge totaling $134 million including severance costs of $98 million related to workforce reductions of2,871 manufacturing and administrative positions in ACS, Aerospace and PMT. 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 and outsourcing of certain packaging operations. The repositioning charge included asset impairments of $31 million principally related to the write-off of certain intangible assets in connection with the planned sale of a PMT business. Also, $61 million of previously established accruals, primarily for severance, in ACS, Aerospace and PMT, were returned to income as a result of higher attrition than anticipated in prior severance programsresulting in lower required severance payments, lower than expected severance costs in certain repositioning actions, and changes in the scope of previously announced repositioning actions.

In the six months endedJune 30, 2015, we recognized a repositioning charge totaling$85 million including severance costs of $75 million related to workforce reductions of3,980manufacturing and administrative positions across our segments. The workforce reductions were primarily related to cost savings actions taken in connection with our productivity and ongoing functional transformation initiatives and outsourcing of certain component manufacturing in ACS. Also, $12 million of previously established accruals, primarily for severance, mainly in ACS, were returned to income as a result of 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
December 31, 2015	$	329	$	-	$	21	$	350
Charges		98		31		5		134
Usage - cash		(96)		-		(3)		(99)
Usage - noncash		-		(31)		-		(31)
Foreign currency translation		5		-		-		5
Adjustments		(60)		-		(1)		(61)
June 30, 2016	$	276	$	-	$	22	$	298

Certain repositioning projects in 2016 and 2015 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 are not expected to be significant.