REPOSITIONING AND OTHER CHARGES

3 Months Ended

Mar. 31, 2020

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 March 31,
	2020			2019
Severance	$	66		$	31
Asset impairments	2			11
Exit costs	15			18
Reserve adjustments	(13		)	(2		)
Total net repositioning charge	70			58
Asbestos related litigation charges, net of insurance and reimbursements	11			11
Probable and reasonably estimable environmental liabilities, net of reimbursements	8			14
Other	(27		)	1
Total net repositioning and other charges	$	62		$	84

The following table summarizes the pretax distribution of total net repositioning and other charges by classification:

	Three Months Ended March 31,
	2020		2019
Cost of products and services sold	$	20	$	55
Selling, general and administrative expenses	42		29
Other (income) expense	—		—
	$	62	$	84

The following table summarizes the pretax impact of total net repositioning and other charges by segment:

	Three Months Ended March 31,
	2020			2019
Aerospace	$	11		$	16
Honeywell Building Technologies	25			8
Performance Materials and Technologies	21			(1		)
Safety and Productivity Solutions	6			5
Corporate	(1		)	56
	$	62		$	84

In the quarter ended March 31, 2020, we recognized gross repositioning charges totaling $83 million including severance costs of $66 million related to workforce reductions of 2,124 manufacturing and administrative positions across our segments. The workforce reductions were primarily related to our productivity and ongoing functional transformation initiatives. 

In the quarter ended March 31, 2019, we recognized gross repositioning charges totaling $60 million including severance costs of $31 million related to workforce reductions of 1,047 manufacturing and administrative positions mainly in Corporate, Aerospace and Honeywell Building Technologies. The workforce reductions were primarily related to our productivity and ongoing functional transformation initiatives and to site transitions in Aerospace to more cost-effective locations. 

The following table summarizes the status of our total repositioning reserves:

	Severance Costs			Asset Impairments			Exit Costs			Total
December 31, 2019	$	555		$	—		$	96		$	651
Charges	66			2			15			83
Usage - cash	(70		)	—			(18		)	(88		)
Usage - noncash	—			(2		)	—			(2		)
Foreign currency translation	(6		)	—			—			(6		)
Adjustments	(12		)	—			(1		)	(13		)
March 31, 2020	$	533		$	—		$	92		$	625

 Certain repositioning projects will recognize exit costs in future periods when the actual liability is incurred. Such exit costs incurred in the quarters ended March 31, 2020 and 2019 were $11 million and $3 million, respectively.