REPOSITIONING AND OTHER CHARGES

3 Months Ended

Mar. 31, 2017

Repositioning And Other Charges [Abstract]

Note 3. Repositioning and Other Charges


	A summary of repositioning and other charges follows:

			Three Months Ended
			March 31,
			2017		2016
Severance		$	20	$	28
Asset impairments			2		7
Exit costs			1		2
Reserve adjustments			6		(17)
Total net repositioning charge			29		20

Asbestos related litigation charges,
net of insurance			50		53
Probable and reasonably estimable
environmental liabilities			50		52

Total net repositioning and other charges		$	129	$	125

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

		Three Months Ended
		March 31,
		2017		2016
Cost of products and services sold	$	136	$	105
Selling, general and administrative expenses		(7)		20
	$	129	$	125

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

		Three Months Ended
		March 31,
		2017		2016
Aerospace	$	73	$	49
Home and Building Technologies		(1)		17
Performance Materials and Technologies		3		9
Safety and Productivity Solutions		(4)		(10)
Corporate		58		60
	$	129	$	125

In the quarter ended March 31, 2017, we recognized repositioning charges totaling $23 million including severance costs of $20 million related to workforce reductions of 622 manufacturing 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 with factory transitions, mainly in Aerospace, to more cost-effective locations. Also, $6 million, net, of reserve adjustments increased the previously established accruals, primarily for severance in Aerospace, due mainly to lower attrition than anticipated and higher expected severance payments.

In the quarter ended March 31, 2016, we recognized repositioning charges totaling $37 million including severance costs of $28 million related to workforce reductions of 293 manufacturing and administrative positions mainly in Home and Building Technologies and Performance Materials and Technologies. The workforce reductions were primarily related to achieving acquisition-related synergies and outsourcing of certain packaging operations. Also, $17 million of previously established accruals, primarily for severance, in Home and Building Technologies, Safety and Productivity Solutions, and Performance Materials and Technologies, were returned to income primarily 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, 2016	$	298	$	-	$	33	$	331
Charges		20		2		1		23
Usage - cash		(50)		-		(4)		(54)
Usage - noncash		-		(2)		-		(2)
Foreign currency translation		5		-		-		5
Adjustments and reclassifications		6		-		(8)		(2)
March 31, 2017	$	279	$	-	$	22	$	301

Certain repositioning projects in 2017 and 2016 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.