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Restructuring and Other Costs | 9 Months Ended
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Sep. 30, 2019
Restructuring and Related Activities [Abstract] |
Restructuring and Other Costs [Text Block] | Restructuring Costs During the nine months ended September 30, 2019, we recorded net pre-tax restructuring costs totaling $244 million for new and ongoing restructuring actions. We recorded charges in the segments as follows:
(dollars in millions) |
Otis | $ | 44 |
Carrier | 97 |
Pratt & Whitney | 17 |
Collins Aerospace Systems | 83 |
Eliminations and other | 3 |
Total | $ | 244 |
Restructuring charges incurred during the nine months ended September 30, 2019 primarily relate to actions initiated during 2019 and 2018, and were recorded as follows:
(dollars in millions) |
Cost of sales | $ | 119 |
Selling, general and administrative | 125 |
Total | $ | 244 |
2019 Actions. During the nine months ended September 30, 2019, we recorded net pre-tax restructuring costs of $158 million, comprised of $62 million in cost of sales and $96 million in selling, general and administrative expenses. The 2019 actions relate to ongoing cost reduction efforts, including workforce reductions and the consolidation of field and manufacturing operations. The following table summarizes the accrual balance and utilization for the 2019 restructuring actions for the quarter and nine months ended September 30, 2019:
(dollars in millions) | Severance |  | Facility Exit and Other Costs |  | Total
Quarter Ended September 30, 2019 |  |  |  |  |
Restructuring accruals at June 30, 2019 | $ | 57 |  |  | $ | 11 |  |  | $ | 68 |
Net pre-tax restructuring costs | 35 |  |  | 8 |  |  | 43 |
Utilization, foreign exchange and other costs | (33 | ) |  | (7 | ) |  | (40 | )
Balance at September 30, 2019 | $ | 59 |  |  | $ | 12 |  |  | $ | 71 |
Nine Months Ended September 30, 2019 |  |  |  |  |
Net pre-tax restructuring costs | $ | 145 |  |  | $ | 13 |  |  | $ | 158 |
Utilization, foreign exchange and other costs | (86 | ) |  | (1 | ) |  | (87 | )
Balance at September 30, 2019 | $ | 59 |  |  | $ | 12 |  |  | $ | 71 |
The following table summarizes expected, incurred and remaining costs for the 2019 restructuring actions by segment:
(dollars in millions) | Expected Costs |  | Costs Incurred Quarter Ended March 31, 2019 |  | Costs Incurred Quarter Ended June 30, 2019 |  | Costs Incurred Quarter Ended September 30, 2019 |  | Remaining Costs at September 30, 2019
Otis | $ | 43 |  |  | $ | (19 | ) |  | $ | (14 | ) |  | $ | (3 | ) |  | $ | 7 |
Carrier | 113 |  |  | (25 | ) |  | (24 | ) |  | (32 | ) |  | 32 |
Pratt & Whitney | 158 |  |  | (14 | ) |  | (3 | ) |  | — |  |  | 141 |
Collins Aerospace Systems | 107 |  |  | (14 | ) |  | — |  |  | (7 | ) |  | 86 |
Eliminations and other | 3 |  |  | (1 | ) |  | (1 | ) |  | (1 | ) |  | — |
Total | $ | 424 |  |  | $ | (73 | ) |  | $ | (42 | ) |  | $ | (43 | ) |  | $ | 266 |
We are targeting to complete the majority of the remaining workforce and facility related cost reduction actions during 2019 and 2020. No specific plans for other significant actions have been finalized at this time. 2018 Actions. During the nine months ended September 30, 2019, we recorded net pre-tax restructuring costs totaling $44 million for restructuring actions initiated in 2018, including $21 million in cost of sales and $23 million in selling, general and administrative expenses. The 2018 actions relate to ongoing cost reduction efforts, including workforce reductions, consolidation of field and manufacturing operations, and costs to exit legacy programs. The following table summarizes the accrual balances and utilization for the 2018 restructuring actions for the quarter and nine months ended September 30, 2019:
(dollars in millions) | Severance |  | Facility Exit, and Other Costs |  | Total
Quarter Ended September 30, 2019 |  |  |  |  |
Restructuring accruals at June 30, 2019 | $ | 48 |  |  | $ | 9 |  |  | $ | 57 |
Net pre-tax restructuring costs | 1 |  |  | 4 |  |  | 5 |
Utilization, foreign exchange and other costs | (19 | ) |  | (5 | ) |  | (24 | )
Balance at September 30, 2019 | $ | 30 |  |  | $ | 8 |  |  | $ | 38 |
Nine Months Ended September 30, 2019 |  |  |  |  |
Restructuring accruals at December 31, 2018 | $ | 115 |  |  | $ | 23 |  |  | $ | 138 |
Net pre-tax restructuring costs | 36 |  |  | 8 |  |  | 44 |
Utilization, foreign exchange and other costs | (121 | ) |  | (23 | ) |  | (144 | )
Balance at September 30, 2019 | $ | 30 |  |  | $ | 8 |  |  | $ | 38 |
The following table summarizes expected, incurred and remaining costs for the 2018 restructuring actions by segment:
(dollars in millions) | Expected Costs |  | Costs Incurred in 2018 |  | Costs Incurred Quarter Ended March 31, 2019 |  | Costs Incurred Quarter Ended June 30, 2019 |  | Costs Incurred Quarter Ended September 30, 2019 |  | Remaining Costs at September 30, 2019
Otis | $ | 55 |  |  | $ | (48 | ) |  | $ | (5 | ) |  | $ | (1 | ) |  | $ | — |  |  | $ | 1 |
Carrier | 82 |  |  | (64 | ) |  | (7 | ) |  | (6 | ) |  | (2 | ) |  | 3 |
Pratt & Whitney | 3 |  |  | (3 | ) |  | — |  |  | — |  |  | — |  |  | — |
Collins Aerospace Systems | 113 |  |  | (87 | ) |  | (11 | ) |  | (9 | ) |  | (3 | ) |  | 3 |
Eliminations and other | 6 |  |  | (5 | ) |  | — |  |  | — |  |  | — |  |  | 1 |
Total | $ | 259 |  |  | $ | (207 | ) |  | $ | (23 | ) |  | $ | (16 | ) |  | $ | (5 | ) |  | $ | 8 |
2017 and Prior Actions. During the nine months ended September 30, 2019, we recorded net pre-tax restructuring costs totaling $42 million for restructuring actions initiated in 2017 and prior. As of September 30, 2019, we have approximately $73 million of accrual balances remaining related to 2017 and prior actions.

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- 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI http://asc.fasb.org/topic&trid=2175745 + Details
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