Q3 total revenue decreased 17% to $591 million.
Segment operating income decreased 22% to $84 million.
Regarding EPS, we took our net asbestos liability to a full-horizon estimate, resulting in a noncash expense equivalent to $1.20, the main driver of the $0.55 earnings per share loss.
Free cash flow increased 77% to $271 million.
We delivered record ITT operating income margin of 15.4%.
We grew 92% sequentially in Friction OE sales.
We delivered 19% segment decremental margin and 40% segment incremental margins sequential to Q2.
Lastly, we generated record free cash flow of $271 million.
Year-to-date, we reduced the number of incidents by 30%.
Our injury frequency rate is 0.8%, and 50% of our sites have been incident-free for more than a year.
We delivered solid earnings per share of $0.82, up 44% sequentially, strong segment operating income margin of 16.2%, up 360 basis points sequentially; record operating income margin of 15.4%; and record free cash flow of $271 million, representing a growth of 77% or $118 million versus prior year.
I also experienced the progress made firsthand, progress that helped us to deliver 14.1% operating margin at IP.
This is the highest Industrial Process Q3 margin ever, and we continue to confidently progress toward our long-term 15% plus margin target.
This 14.1% margin performance represented 120 basis point expansion versus prior year, and 40 basis points higher than Q2 this year.
Motion Technologies delivered a strong operating margin at 18.5%, up 630 basis points versus Q2 and only 30 basis points below prior year.
These operational excellence, combined with our speed and execution, enabled us to accelerate working capital reduction and post a year-over-year 180 basis points improvement.
Our Friction OE sales grew 92% sequentially, and the momentum in shared gains continued with each one of our main regions outperforming global production year-to-date, including over 1,000 basis points of outperformance in North America and China.
IP grew organic short-cycle pump orders by 14% sequentially on the back of strong part, which improved gradually during the quarter and showed year-over-year growth in September.
IP delivered a book-to-bill of 1.
And as a result, our backlog at the end of Q3 was up 6%, excluding foreign exchange compared to the beginning of 2020.
We've been talking a lot about Seneca Falls' 95% plus baseline pumps delivery performance for the last 12 months.
As a result, we are raising our free cash flow margin target to a range of 13% to 15% for the full year.
Today, we have $1.5 billion of available liquidity, and we have ample capital to fund all of our operational needs and investment, and position us to take advantage of other strategic opportunities.
We produced 16.2% segment operating income margin.
We delivered these margins through productivity and aggressive cost actions that produced segment incremental margin of 19%.
We continued to drive down corporate costs and delivered an approximately 20% structural run rate reduction versus prior year.
EPS of $0.82 per share declined 15% and was ahead of our expectations.
And on cash, we generated $271 million of free cash flow year-to-date, up 77% versus prior year.
Our trailing 12-month free cash flow margin now stands at a record 15.4%, a sequential improvement of 80 basis points.
Our segment operating income jumped 48%, an impressive growth compared to an organic revenue increase of 12%.
Our revenue growth was driven by a 92% increase in friction sales OE, mainly coming from outperformance in China and North America.
Similarly, earnings per share grew 44% sequentially despite a onetime environmental benefit realized last quarter.
Organic revenue declined 13% on lower order production rates and slower activity in the rail segment due to reduced passenger traffic.
This is a strong showing with China and North America growing 11% and 14%, respectively, which was offset by Europe, where we experienced destocking with some Tier one customers.
Sequentially, Friction OE sales skyrocketed 92%, gradually accelerating during the quarter to show mid-single-digit year-over-year growth in September.
Segment operating income declined 12% to $50 million.
MT successfully improved decremental margins to 21%.
And sequentially, operating income increased 107% with 36% incremental margin performance.
Motion Technologies delivered outstanding Q3 margins of 18.5%, 30 basis points lower than the prior year, but increased 630 basis points sequentially.
And lastly, from an award perspective, both Friction and Wolverine continued to gain share with Conquer wins and new platform wins like the 15 new electric vehicle platform awards in the quarter.
With 14.1% operating margin, IP expanded 120 basis points compared to the prior year despite an organic revenue decline of 19%.
Sequentially, the growth was 40 basis points on flat revenue.
Organic orders for the quarter declined 17% coming from 33% lower project bookings and 12% short-cycle decline versus prior year.
IP's book-to-bill of one in Q3 and year-to-date backlog growth of 6%, excluding foreign exchange, provides solid revenue visibility into next quarter.
Operating income declined only 12% to $27 million despite significant revenue declines.
Our proactive cost actions, shop floor and sourcing productivity resulted in best-in-class decremental margin of 8%.
Industrial Process segment operating margin of 14.1% was driven by productivity and cost control, sourcing and restructuring actions amid a decline in revenue.
This design has generated so much interest from our customers that we booked 43% higher orders year-to-date than for the entire 2019.
Finally, IP improved working capital by 800 basis points as we reduced AR past dues by more than 20% and inventory by 14%.
IP finished the quarter with 19% working capital as a percent of sales.
IP's outstanding performance reflects the multiyear strategy that we outlined back in 2017 and that we are faithfully executing as we advance toward our long-term margin target of 15% plus.
CCT organic revenue declined 26% on weakness across our major end markets.
We are also impacted by the specific challenges related to the 737 MAX requalification process.
Our CCT industrial business experienced only a 2% decline as our distribution partners reduced excess inventory and adjust to lower levels of activity.
However, we were able to gain share in that region on the back of better quality and delivery performance, and our year-to-date orders are up 30% year-over-year.
Operating income declined 40% on the volume drop, and margin of 14% showed an improvement of 300 basis points over Q2.
CCT decremental margins of 28% improved sequentially from Q2 and reflect the aggressive restructuring actions executed by the business.
As you know, last quarter, we raised our cost action target to $160 million.
We are hard at work on the remaining $125 million of cost reduction, a large portion of which is structural.
To date, we have completed more than 90% of the full year headcount reduction plan.
Overall, we expect these actions will generate more than $90 million savings of benefits -- $90 million of benefits in 2020 and additional carryover benefits in 2021, partially offset by temporary compensation actions that have been rolled back in Q1 -- in Q4.
As a result, we are improving our decremental margin target, and we now expect total segment decremental margin for 2020 to range from 21% to 24%.
These events, coupled with stability in our underlying claim data, enabled us to extend the period for which we provide an estimate through 2052 from our previous rolling 10-year estimate.
Since then, excluding the full horizon transition, our net liability declined 44%, and when accounting for these quarters, noncash $136 million full horizon impact, the net liability dropped 25%.
Importantly, we now expect that our projected annual average net after-tax defense and indemnity outflows for the next 10 years will decrease to $20 million to $30 million, a reduction of 24% from the midpoint.
We expect auto production rates to improve sequentially, reflecting a market decline of approximately 20% for the full year.
From a segment margin standpoint, we expect to produce strong Q4 margins, well over the 15.4% generated last year driven by benefits from productivity and cost actions.
We expect corporate expenses for the full year to be down approximately 40%.
We also expect Q4 earnings per share to show low double-digit sequential improvement, and we are now targeting segment decremental margins of 21% to 24% for the full year.
On free cash flow, we are raising our margin target to 13% to 15% for the full year as we rebuild some working capital to support our business and customers.

Summary:
Q3 total revenue decreased 17% to $591 million.
Regarding EPS, we took our net asbestos liability to a full-horizon estimate, resulting in a noncash expense equivalent to $1.20, the main driver of the $0.55 earnings per share loss.
We delivered solid earnings per share of $0.82, up 44% sequentially, strong segment operating income margin of 16.2%, up 360 basis points sequentially; record operating income margin of 15.4%; and record free cash flow of $271 million, representing a growth of 77% or $118 million versus prior year.
We've been talking a lot about Seneca Falls' 95% plus baseline pumps delivery performance for the last 12 months.
EPS of $0.82 per share declined 15% and was ahead of our expectations.
Our segment operating income jumped 48%, an impressive growth compared to an organic revenue increase of 12%.
This is a strong showing with China and North America growing 11% and 14%, respectively, which was offset by Europe, where we experienced destocking with some Tier one customers.
Segment operating income declined 12% to $50 million.
Organic orders for the quarter declined 17% coming from 33% lower project bookings and 12% short-cycle decline versus prior year.
Operating income declined only 12% to $27 million despite significant revenue declines.