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REPOSITIONING AND OTHER CHARGES
9 Months Ended
Sep. 30, 2019
Restructuring and Related Activities [Abstract]  
Repositioning and Other Charges
Note 3. Repositioning and Other Charges
 
A summary of repositioning and other charges follows:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
Severance
$
41

 
$
39

 
$
147

 
$
100

Asset impairments
15

 
26

 
26

 
74

Exit costs
33

 
8

 
62

 
48

Reserve adjustments
(3
)
 
1

 
(7
)
 
(2
)
Total net repositioning charge
86

 
74

 
228

 
220

Asbestos related litigation charges, net of insurance and indemnities
9

 
59

 
26

 
157

Probable and reasonably estimable environmental liabilities, net of indemnities
6

 
150

 
59

 
334

Other
(5
)
 
16

 
(7
)
 
45

Total net repositioning and other charges
$
96

 
$
299

 
$
306

 
$
756



The following table summarizes the pretax distribution of total net repositioning and other charges by classification:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
Cost of products and services sold
$
75

 
$
261

 
$
204

 
$
605

Selling, general and administrative expenses
21

 
38

 
102

 
110

Other (income) expense

 

 

 
41

 
$
96

 
$
299

 
$
306

 
$
756



The following table summarizes the pretax impact of total net repositioning and other charges by segment:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
Aerospace
$
12

 
$
54

 
$
32

 
$
157

Honeywell Building Technologies
28

 
4

 
36

 
17

Performance Materials and Technologies
28

 
12

 
61

 
85

Safety and Productivity Solutions
6

 
39

 
54

 
52

Corporate
22

 
190

 
123

 
445

 
$
96

 
$
299

 
$
306

 
$
756


 
In the quarter ended September 30, 2019, we recognized gross repositioning charges totaling $89 million including severance costs of $41 million related to workforce reductions of 1,123 manufacturing and administrative positions across our segments. The workforce reductions were primarily related to cost savings actions taken in connection with our productivity and ongoing functional transformation initiatives. The repositioning charges included exit costs of $33 million primarily related to termination fees associated with the early cancellation of supply agreements for certain raw materials in Performance Materials and Technologies and Honeywell Building Technologies and current period exit costs incurred for previously approved repositioning projects.
    
In the quarter ended September 30, 2018, we recognized gross repositioning charges totaling $73 million including severance costs of $39 million related to workforce reductions of 816 manufacturing and administrative positions across our segments. The workforce reductions were primarily related to site transitions, mainly in Safety and Productivity Solutions and Performance Materials and Technologies, to more cost-effective locations. The repositioning charges included asset impairments of $26 million primarily due to the write-off of certain capitalized assets in Corporate and manufacturing equipment associated with a site transition in Performance Materials and Technologies.

In the nine months ended September 30, 2019, we recognized gross repositioning charges totaling $235 million including severance costs of $147 million related to workforce reductions of 3,436 manufacturing and administrative positions across our segments. The workforce reductions were primarily related to cost savings actions taken in connection with our productivity and ongoing functional transformation initiatives and to site transitions in Aerospace to more cost-effective locations. The repositioning charges included exit costs of $62 million primarily related to current period exit costs incurred for previously approved repositioning projects, termination fees associated with the early cancellation of supply agreements for certain raw materials in Performance Materials and Technologies and Honeywell Building Technologies and closure obligations associated with site transitions.

In the nine months ended September 30, 2018, we recognized gross repositioning charges totaling $222 million including severance costs of $100 million related to workforce reductions of 2,700 manufacturing and administrative positions across our segments. The workforce reductions were primarily related to site transitions, mainly in Safety and Productivity Solutions, Performance Materials and Technologies and Aerospace, to more cost-effective locations and to cost savings actions taken in connection with our productivity and ongoing functional transformation initiatives. The repositioning charges included asset impairments of $74 million primarily related to the write-down of a legacy property in Corporate in connection with its planned disposition, and the write-off of certain capitalized assets in Corporate and manufacturing equipment associated with a site transition in Performance Materials and Technologies. The repositioning charges included exit costs of $48 million primarily related to a termination fee associated with the early cancellation of a supply agreement for certain raw materials in Performance Materials and Technologies.

The following table summarizes the status of our total repositioning reserves:
 
Severance
Costs
 
Asset
Impairments
 
Exit
Costs
 
Total
December 31, 2018
$
489

 
$

 
$
77

 
$
566

Charges
147

 
26

 
62

 
235

Usage - cash
(122
)
 

 
(27
)
 
(149
)
Usage - noncash

 
(26
)
 

 
(26
)
Foreign currency translation
(3
)
 

 

 
(3
)
Adjustments
(7
)
 

 

 
(7
)
September 30, 2019
$
504

 
$

 
$
112

 
$
616



 Certain repositioning projects will recognize exit costs in future periods when the actual liability is incurred. Such exit costs incurred in the quarter and nine months ended September 30, 2019 and 2018 were not significant.