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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The following table summarizes the accrual balances and
utilization by cost type for the 2011 restructuring actions:
(Dollars in millions) Severance
Asset
Write-
Downs
Facility Exit,
Lease
Termination
and Other
Costs Total
Net pre-tax restructuring charges $259 $ 4 $ 23 $286
Utilization and foreign exchange (115) (4) (13) (132)
BALANCE AT DECEMBER 31, 2011 $144 $ — $ 10 $ 154
The following table summarizes expected, incurred and
remaining costs for the 2011 restructuring actions by type:
(Dollars in millions) Severance
Asset
Write-
Downs
Facility Exit,
Lease
Termination
and Other
Costs Total
Expected costs $ 290 $ 4 $ 74 $ 368
Costs incurred during 2011 (259) (4) (23) (286)
REMAINING COSTS AT
DECEMBER 31, 2011 $ 31 $ — $ 51 $ 82
The following table summarizes expected, incurred and
remaining costs for the 2011 restructuring actions by
segment:
(Dollars in millions)
Expected
Costs
Costs
Incurred
During
2011
Remaining
Costs at
December 31,
2011
Otis $100 $ (76) $24
Carrier 47 (31) 16
UTC Fire & Security 68 (62) 6
Pratt & Whitney 65 (52) 13
Hamilton Sundstrand 14 (13) 1
Sikorsky 73 (51) 22
Eliminations and other 1 (1) —
Total $368 $(286) $82
2010 Actions. During 2011, we recorded net pre-tax
restructuring costs totaling $55 million for restructuring
actions initiated in 2010, consisting of $36 million in cost of
sales and $19 million in selling, general and administrative
expenses. The 2010 actions relate to ongoing cost reduction
efforts, including workforce reductions and the consolidation
of field operations.
As of December 31, 2011, we have completed net workforce
reductions of approximately 4,000 employees of an
expected 5,000, and have exited 2.5 million net square feet of
facilities of an expected 3.9 million net square feet. The
remaining workforce and facility reduction actions are
targeted for completion during 2012.
The following table summarizes the restructuring accrual
balances and utilization by cost type for the 2010 programs:
(Dollars in millions) Severance
Asset
Write-
Downs
Facility Exit,
Lease
Termination
and Other
Costs Total
Restructuring accruals at January 1,
2011 $203 $ — $ 24 $227
Net pre-tax restructuring charges 9 11 35 55
Utilization and foreign exchange (156) (11) (44) (211)
BALANCE AT DECEMBER 31, 2011 $ 56 $ — $ 15 $ 71
The following table summarizes expected, incurred and
remaining costs for the 2010 programs by type:
(Dollars in millions) Severance
Asset
Write-
Downs
Facility Exit,
Lease
Termination
and Other
Costs Total
Expected costs $ 319 $30 $ 98 $447
Costs incurred during 2010 (301) (19) (51) (371)
Costs incurred during 2011 (9) (11) (35) (55)
REMAINING COSTS AT
DECEMBER 31, 2011 $ 9 $ — $ 12 $ 21
The following table summarizes expected, incurred and
remaining costs for the 2010 programs by segment:
(Dollars in millions)
Expected
Costs
Costs
Incurred
During
2010
Costs
Incurred
During
2011
Remaining
Costs at
December 31,
2011
Otis $ 87 $ (87) $— $—
Carrier 98 (74) (19) 5
UTC Fire & Security 94 (64) (23) 7
Pratt & Whitney 93 (84) (8) 1
Hamilton Sundstrand 40 (29) (3) 8
Sikorsky 17 (15) (2) —
Eliminations and other 18 (18) ——
Total $447 $(371) $(55) $21
2011 ANNUAL REPORT 79