Annual report pursuant to Section 13 and 15(d)

RESTRUCTURING AND OTHER CHARGES (Tables)

v2.4.0.8
RESTRUCTURING AND OTHER CHARGES (Tables)
 12 Months Ended
Dec. 31, 2013
Restructuring and Related Activities [Abstract]  
Restructuring actions
These restructuring actions included:
In millions
Year ended
December 31, 2012
Workforce reductions
$
49

Exit activities
1

Other
2

Restructuring and other charges
$
52

Restructuring and other charges by segment
Restructuring and other charges were included in each segment in our operating results as follows:
In millions
Year ended
December 31, 2012
Engine
$
20

Distribution
14

Power Generation
12

Components
6

Restructuring and other charges
$
52

Restructuring and other charges included in Consolidated Statements of Income
The table below summarizes where the restructuring and other charges are located in our Consolidated Statements of Income for the year ended December 31, 2012.
In millions
Year ended
December 31, 2012
Cost of sales
$
29

Selling, general and administrative expenses
20

Research, development and engineering expenses
3

Restructuring and other charges
$
52

Schedule of activity and balance of accrued restructuring charges
The table below summarizes the activity and balance of accrued restructuring charges, which is included in "Other accrued expenses" in our Consolidated Balance Sheets for the years ended December 31, 2012 and 2013.
In millions
 
 
2012 Restructuring charges(1)
 
$
50

Cash payments for 2012 actions
 
(25
)
Balance at December 31, 2012
 
25

Cash payments for 2012 actions
 
(22
)
Change in estimate(2)
 
(3
)
Balance at December 31, 2013
 
$
—

__________________________________________________
(1) 
Restructuring charges include severance pay and benefits and related charges and lease termination costs.
(2) 
Due to the inherent uncertainty involved in calculating the initial estimates, the actual amounts paid for such activities differed slightly from the amounts initially recorded. We have adjusted the previous estimates accordingly.