XML 47 R22.htm IDEA: XBRL DOCUMENT
v3.6.0.2

Restructuring and Other Costs | 12 Months Ended
--- | ---
Dec. 31, 2016
Restructuring and Related Activities [Abstract] |
Restructuring and Related Activities Disclosure [Text Block] | RESTRUCTURING COSTS During 2016, we recorded net pre-tax restructuring costs totaling $290 million for new and ongoing restructuring actions. We recorded charges in the segments as follows:
(dollars in millions) |
Otis | $ | 59 |
UTC Climate, Controls & Security | 65 |
Pratt & Whitney | 111 |
UTC Aerospace Systems | 49 |
Eliminations and other | 6 |
Total | $ | 290 |
Restructuring charges incurred in 2016 primarily relate to actions initiated during 2016 and 2015, and were recorded as follows:
(dollars in millions) |
Cost of sales | $ | 187 |
Selling, general & administrative | 78 |
Other expense | 25 |
Total | 290 |
2016 Actions. During 2016, we recorded net pre-tax restructuring costs totaling $242 million for restructuring actions initiated in 2016, consisting of $149 million in cost of sales, $67 million in selling, general and administrative expenses, and $26 million in other expense. The 2016 actions relate to ongoing cost reduction efforts, including workforce reductions, consolidation of field operations, and costs to exit legacy programs. We are targeting to complete in 2017 and 2018 the majority of the remaining workforce and all facility related cost reduction actions initiated in 2016. No specific plans for significant other actions have been finalized at this time. The following table summarizes the accrual balances and utilization by cost type for the 2016 restructuring actions:
(dollars in millions) | Severance |  | Facility Exit, Lease Termination & Other Costs |  | Total
Net pre-tax restructuring costs | $ | 166 |  |  | $ | 76 |  |  | $ | 242 |
Utilization and foreign exchange | (103 | ) |  | (30 | ) |  | (133 | )
Balance at December 31, 2016 | $ | 63 |  |  | $ | 46 |  |  | $ | 109 |
The following table summarizes expected, incurred and remaining costs for the 2016 restructuring actions by segment:
(dollars in millions) | Expected Costs |  | Cost Incurred During 2016 |  | Remaining Costs at December 31, 2016
Otis | $ | 57 |  |  | $ | (48 | ) |  | $ | 9 |
UTC Climate, Controls & Security | 87 |  |  | (45 | ) |  | 42 |
Pratt & Whitney | 118 |  |  | (118 | ) |  | — |
UTC Aerospace Systems | 92 |  |  | (31 | ) |  | 61 |
Total | $ | 354 |  |  | $ | (242 | ) |  | $ | 112 |
2015 Actions. During 2016, we recorded net pre-tax restructuring costs totaling $40 million for restructuring actions initiated in 2015, consisting of $36 million in cost of sales and $4 million in selling, general and administrative expenses. The 2015 actions relate to ongoing cost reduction efforts, including workforce reductions and the consolidation of field operations. The following table summarizes the accrual balances and utilization by cost type for the 2015 restructuring actions:
(dollars in millions) | Severance |  | Facility Exit, Lease Termination and Other Costs |  | Total
Restructuring accruals at January 1, 2016 | $ | 183 |  |  | $ | 23 |  |  | $ | 206 |
Net pre-tax restructuring costs | 17 |  |  | 23 |  |  | 40 |
Utilization and foreign exchange | (158 | ) |  | (22 | ) |  | (180 | )
Balance at December 31, 2016 | $ | 42 |  |  | $ | 24 |  |  | $ | 66 |
The following table summarizes expected, incurred and remaining costs for the 2015 programs by segment:
(dollars in millions) | Expected Costs |  | Costs Incurred During 2015 |  | (Costs Incurred) Reversals During 2016 |  | Remaining Costs at December 31, 2016
Otis | $ | 51 |  |  | $ | (35 | ) |  | $ | (14 | ) |  | $ | 2 |
UTC Climate, Controls & Security | 139 |  |  | (83 | ) |  | (24 | ) |  | 32 |
Pratt & Whitney | 62 |  |  | (82 | ) |  | 20 |  |  | — |
UTC Aerospace Systems | 129 |  |  | (105 | ) |  | (16 | ) |  | 8 |
Eliminations and other | 27 |  |  | (21 | ) |  | (6 | ) |  | — |
Total | $ | 408 |  |  | $ | (326 | ) |  | $ | (40 | ) |  | $ | 42 |
During 2016, we had reversals of previously accrued restructuring reserves for 2015 programs of approximately $65 million, which includes a Pratt & Whitney business that was sold in the third quarter of 2016 after originally being scheduled for closure, and a UTC Climate, Controls & Security facility that will remain operational after originally being scheduled for closure.

X
- References No definition available. + Details
Name: | us-gaap_RestructuringAndRelatedActivitiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4) -URI http://asc.fasb.org/extlink&oid=27011515&loc=d3e140904-122747 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 5.P.3) -URI http://asc.fasb.org/extlink&oid=27011515&loc=d3e140864-122747 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 + Details
Name: | us-gaap_RestructuringAndRelatedActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration