REPOSITIONING AND OTHER CHARGES

9 Months Ended

Sep. 30, 2021

Restructuring and Related Activities [Abstract]

A summary of repositioning and other charges follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Severance	$	3	$	113	$	63	$	433
Asset impairments	20		5		107		11
Exit costs	46		17		110		47
Reserve adjustments	3		(11)		(18)		(42)
Total net repositioning charge	72		124		262		449
Asbestos related litigation charges, net of insurance and reimbursements	24		13		68		33
Probable and reasonably estimable environmental liabilities, net of reimbursements	3		6		14		20
Other	(3)		1		(6)		(16)
Total net repositioning and other charges	$	96	$	144	$	338	$	486

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,
	2021		2020		2021		2020
Cost of products and services sold	$	63	$	91	$	248	$	286
Selling, general and administrative expenses	33		53		90		200

	$	96	$	144	$	338	$	486

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,
	2021		2020		2021		2020
Aerospace	$	(2)	$	33	$	55	$	151
Honeywell Building Technologies	5		29		9		87
Performance Materials and Technologies	5		34		12		139
Safety and Productivity Solutions	40		15		136		32
Corporate	48		33		126		77
	$	96	$	144	$	338	$	486

In the three months ended September 30, 2021, we recognized gross repositioning charges totaling $69 million including severance costs of $3 million related to workforce reductions of 603 manufacturing and administrative positions mainly in our Safety and Productivity Solutions segment. The workforce reductions were primarily related to the re-alignment of a product line in our Safety and Productivity Solutions segment and to our productivity and ongoing functional transformation initiatives. The repositioning charge included asset impairments of $20 million primarily related to the write-down of certain manufacturing equipment. The repositioning charge also included exit costs of $46 million primarily for current period exit costs incurred for previously approved repositioning projects, closure obligations associated with site transitions, and lease obligations for equipment.

In the three months ended September 30, 2020, we recognized gross repositioning charges totaling $135 million including severance costs of $113 million related to workforce reductions of 3,113 manufacturing and administrative positions across all of the Company's 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 slowdown in demand for many of the Company's products and services due to the global recession.

In the nine months ended September 30, 2021, we recognized gross repositioning charges totaling $280 million including severance costs of $63 million related to workforce reductions of 5,252 manufacturing and administrative positions mainly in our Safety and Productivity Solutions and Aerospace segments. The workforce reductions were primarily related to the re-alignment of a product line in our Safety and Productivity Solutions segment, site transitions, mainly in Aerospace, to more cost-effective locations, and our productivity and ongoing functional transformation initiatives. The repositioning charge included asset impairments of $107 million primarily related to the write-down of certain manufacturing and other equipment. The repositioning charge included exit costs of $110 million primarily for current period exit costs incurred for previously approved repositioning projects, closure obligations associated with site transitions, and lease obligations for equipment. Also, $18 million of previously established reserves, primarily for severance, were returned to income due to adjustments to the scope of previously announced repositioning actions.

In the nine months ended September 30, 2020, we recognized gross repositioning charges totaling $491 million including severance costs of $433 million related to workforce reductions of 13,042 manufacturing and administrative positions across the Company's 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 slowdown in demand for many of the Company's products and services due to the global recession, and the Company's productivity and ongoing functional transformation initiatives. The repositioning charges included exit costs of $47 million primarily related to current period exit costs incurred for previously approved repositioning projects. Also, $42 million of previously established reserves, primarily for severance, were returned to income mainly as a result of higher attrition than anticipated in prior severance actions resulting in lower severance payments.

The following table summarizes the status of the Company's total repositioning reserves:


	Severance Costs		Asset Impairments		Exit Costs		Total
Balance at December 31, 2020	$	527	$	—	$	74	$	601
Charges	63		107		110		280
Usage - cash	(229)		—		(57)		(286)
Usage - noncash	—		(109)		—		(109)
Foreign currency translation	(2)		—		(2)		(4)
Adjustments	(19)		2		(1)		(18)
Balance at September 30, 2021	$	340	$	—	$	124	$	464

Certain repositioning projects will recognize exit costs in future periods when the actual liability is incurred. Such exit costs incurred in the nine months ended September 30, 2021 and 2020, were $30 million and $32 million, respectively.