REPOSITIONING AND OTHER CHARGES

6 Months Ended

Jun. 30, 2020

Restructuring and Related Activities [Abstract]

Note 3. Repositioning and Other Charges

A summary of repositioning and other charges follows:


	Three Months Ended June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
Severance	$	254	$	75	$	320	$	106
Asset impairments	4		—		6		11
Exit costs	15		11		30		29
Reserve adjustments	(18)		(2)		(31)		(4)
Total net repositioning charge	255		84		325		142
Asbestos related litigation charges, net of insurance and reimbursements	9		6		20		17
Probable and reasonably estimable environmental liabilities, net of reimbursements	6		39		14		53
Other	10		(3)		(17)		(2)
Total net repositioning and other charges	$	280	$	126	$	342	$	210

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


	Three Months Ended June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
Cost of products and services sold	$	175	$	74	$	195	$	129
Selling, general and administrative expenses	105		52		147		81

	$	280	$	126	$	342	$	210

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


	Three Months Ended June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
Aerospace	$	107	$	4	$	118	$	20
Honeywell Building Technologies	33		—		58		8
Performance Materials and Technologies	84		34		105		33
Safety and Productivity Solutions	11		43		17		48
Corporate	45		45		44		101
	$	280	$	126	$	342	$	210

In the three months ended June 30, 2020, we recognized gross repositioning charges totaling $273 million including severance costs of $254 million related to workforce reductions of 7,805 manufacturing and administrative positions across all of our segments, with a majority of the workforce reductions in Aerospace and Performance Materials and Technologies. The workforce reductions primarily related to the Company aligning its cost structure with the current and anticipated slowdown in demand for many of our products and services due to the global recession, and our ongoing productivity and functional transformation initiatives.

In the three months ended June 30, 2019, we recognized gross repositioning charges totaling $86 million including severance costs of $75 million related to workforce reductions of 1,266 manufacturing and administrative positions mainly in Performance Materials and Technologies and Safety and Productivity Solutions. The workforce reductions related to our productivity and ongoing functional transformation initiatives.

In the six months ended June 30, 2020, we recognized gross repositioning charges totaling $356 million including severance costs of $320 million related to workforce reductions of 9,929 manufacturing and administrative positions across our segments, with a majority of the reductions in Aerospace and Performance Materials and Technologies. The workforce reductions primarily related to the Company aligning its cost structure with the current and anticipated slowdown in demand for many of our products and services due to the global recession, and our ongoing productivity and functional transformation initiatives. Also, $31 million of previously established reserves, primarily for severance, were returned to income mainly as a result of higher attrition than anticipated in prior severance programs resulting in lower severance payments.

In the six months ended June 30, 2019, we recognized gross repositioning charges totaling $146 million including severance costs of $106 million related to workforce reductions of 2,313 manufacturing and administrative positions across all segments. The workforce reductions 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	320		6		30		356
Usage - cash	(135)		—		(37)		(172)
Usage - noncash	—		(6)		—		(6)
Foreign currency translation	4		—		—		4
Adjustments	(30)		—		(1)		(31)
June 30, 2020	$	714	$	—	$	88	$	802

Certain repositioning projects will recognize exit costs in future periods when the actual liability is incurred. Such exit costs incurred in the six months ended June 30, 2020 and 2019 were $19 million and $11 million, respectively.