REPOSITIONING AND OTHER CHARGES

6 Months Ended

Jun. 30, 2018

Repositioning And Other Charges [Abstract]

Repositioning and Other Charges

Note 3. Repositioning and Other Charges

	A summary of repositioning and other charges follows:
			Three Months Ended				Six Months Ended
			June 30,				June 30,
			2018		2017		2018		2017
Severance		$	30	$	82	$	61	$	102
Asset impairments			1		33		48		35
Exit costs			32		8		40		9
Reserve adjustments			(2)		(6)		(3)		-
Total net repositioning charge			61		117		146		146
Asbestos related litigation charges,
net of insurance			48		52		99		102
Probable and reasonably estimable
environmental liabilities			127		55		184		105
Other			29		-		29		-
Total net repositioning and other charges		$	265	$	224	$	458	$	353

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,
		2018		2017		2018		2017
Cost of products and services sold	$	215	$	174	$	345	$	310
Selling, general and administrative expenses		50		24		72		17
Other (income) expense		-		26		41		26
	$	265	$	224	$	458	$	353

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,
		2018		2017		2018		2017
Aerospace	$	34	$	84	$	104	$	157
Home and Building Technologies		9		43		13		42
Performance Materials and Technologies		69		(1)		73		2
Safety and Productivity Solutions		6		4		13		-
Corporate		147		94		255		152
	$	265	$	224	$	458	$	353

In the quarter ended June 30, 2018, we recognized gross repositioning charges totaling$63million including severance costs of $30 million related to workforce reductions of731 manufacturing and administrative positions across our segments, except Aerospace. The workforce reductions were primarily related to cost savings actions taken in connection with our productivity and ongoing functional transformation initiatives. The repositioning charges included exit costs of $32 million primarily related to a termination fee associated with the early cancellation of a supply agreement for certain raw materials in Performance Materials and Technologies.

In the quarter ended June 30, 2017, we recognized gross repositioning charges totaling $123million including severance costs of $82 million related to workforce reductions of1,902manufacturing and administrative positions mainly in Home and Building Technologies and Aerospace. The workforce reductions were primarily related to cost savings actions taken in connection with our productivity and ongoing functional transformation initiatives and with site transitions, mainly in Aerospace, to more cost-effective locations. The repositioning charges included asset impairments of $33 million primarily related to the write-down of a legacy property in our Corporate segment in connection with its planned disposition.

Inthe six months endedJune 30, 2018, we recognized gross repositioning charges totaling $149million including severance costs of $61 million related to workforce reductions of1,884 manufacturing and administrative positions across our segments. The workforce reductions were primarily related to site transitions, mainly in Aerospace and Safety and Productivity Solutions, to more cost-effective locations and to cost savings actions taken in connection with our productivity and ongoing functional transformation initiatives. The repositioning charges included asset impairments of $48 million primarily related to the write-down of a legacy property in our Corporate segment in connection with its planned disposition. The repositioning charges included exit costs of $40 million primarily related to a termination fee associated with the early cancellation of a supply agreement for certain raw materials inPerformance Materials and Technologies.

In the six months endedJune 30, 2017, we recognized gross repositioning charges totaling$146million including severance costs of $102 million related to workforce reductions of2,524manufacturing 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 site transitions, mainly in Aerospace, to more cost-effective locations. The repositioning charges included asset impairments of $35 million primarily related to the write-down of a legacy property in our Corporate segment in connection with its planned disposition.

The following table summarizes the status of our total repositioning reserves:
		Severance		Asset		Exit
		Costs		Impairments		Costs		Total
December 31, 2017	$	442	$	-	$	71	$	513
Charges		61		48		40		149
Usage - cash		(123)		-		(43)		(166)
Usage - noncash		-		(49)		-		(49)
Foreign currency translation		(4)		-		-		(4)
Adjustments		(4)		1		-		(3)
June 30, 2018	$	372	$	-	$	68	$	440

Certain repositioning projects in 2018 and 2017 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.

In both the quarter and six months ended June 30, 2018, the other charge of $29 million relates to reserves taken due to the required wind-down of our activities in Iran