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REPOSITIONING AND OTHER CHARGES
12 Months Ended
Dec. 31, 2021
Restructuring and Related Activities [Abstract]  
Repositioning and Other Charges
A summary of repositioning and other charges follows:
 Years Ended December 31,
202120202019
Severance$80 $475 $260 
Asset impairments117 21 95 
Exit costs134 69 83 
Reserve adjustments(13)(47)(5)
Total net repositioning charge318 518 433 
Asbestos related litigation charges, net of insurance and reimbursements129 50 42 
Probable and reasonably estimable environmental liabilities, net of reimbursements22 27 59 
Other charges100 (20)12 
Total net repositioning and other charges$569 $575 $546 
The following table summarizes the pre-tax distribution of total net repositioning and other charges by classification in the Consolidated Statement of Operations:
 Years Ended December 31,
202120202019
Cost of products and services sold$457 $308 $276 
Selling, general and administrative expenses112 267 270 
Other (income) expense— — — 
 $569 $575 $546 
The following table summarizes the pre-tax amount of total net repositioning and other charges by segment. These amounts are excluded from segment profit as described in Note 22 Segment Financial Data.
 Years Ended December 31,
202120202019
Aerospace$62 $157 $33 
Honeywell Building Technologies13 100 108 
Performance Materials and Technologies24 167 93 
Safety and Productivity Solutions268 41 71 
Corporate and All Other202 110 241 
 $569 $575 $546 
In 2021, the Company recognized repositioning charges totaling $331 million, including severance costs of $80 million related to workforce reductions of 6,432 manufacturing and administrative positions mainly in the Company's Safety and Productivity Solutions and Aerospace segments. The workforce reductions were primarily related to the re-alignment of a product line in the Company's Safety and Productivity Solutions segment, site transitions, mainly in Aerospace, to more cost-effective locations, and the Company's productivity and ongoing functional transformation initiatives. The repositioning charge included asset impairments of $117 million primarily related to the write-down of certain manufacturing and other equipment. The repositioning charge included exit costs of $134 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, $13 million of previously established reserves, primarily for severance, were returned to income due to adjustments to the scope of previously announced repositioning actions.
In 2021, Other charges include $105 million of incremental long-term contract labor cost inefficiencies due to severe supply chain disruptions (attributable to the COVID-19 pandemic) relating to the warehouse automation business within the Safety and Productivity Solutions segment. Certain of these costs incurred include amounts and provisions for anticipated losses recognized during the fourth quarter when total estimated costs at completion for certain of the business’ long-term contracts exceeded total estimated revenue. These costs represent unproductive labor costs due to unexpected supply delays and the resulting downstream installation issues, demobilization and remobilization of contract workers, and resolution of contractor disputes. These costs do not include normal operational inefficiencies experienced during a challenging operating environment in 2021.
In 2020, the Company recognized repositioning charges totaling $565 million, including severance costs of $475 million related to workforce reductions of 14,159 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 slowdown in demand for many of its products and services due to the global recession, the Company's productivity and ongoing functional transformation initiatives, and to site consolidations and hub strategies. The repositioning charge included exit costs of $69 million primarily related to current period exit costs incurred for previously approved repositioning projects. Also, $47 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 payments.
In 2019, the Company recognized repositioning charges totaling $438 million, including severance costs of $260 million related to workforce reductions of 5,336 manufacturing and administrative positions across the Company's segments. The workforce reductions related to the Company's productivity and ongoing functional transformation initiatives and to site transitions, mainly in Honeywell Building Technologies, as the Company transitions manufacturing to more cost-effective locations. The repositioning charge included asset impairments of $95 million largely related to a write down in connection with assets held for sale. The repositioning charge included exit costs of $83 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 for closure obligations associated with site transitions.
The following table summarizes the status of the Company's total repositioning reserves:
Severance
Costs
Asset
Impairments
Exit
Costs
Total
Balance at December 31, 2018$489 $ $77 $566 
Charges260 95 83 438 
Usage—cash(186)— (63)(249)
Usage—noncash— (100)— (100)
Divestitures— — — — 
Adjustments(8)(2)(5)
Foreign currency translation— — 
Balance at December 31, 2019555  96 651 
Charges475 21 69 565 
Usage—cash(474)— (90)(564)
Usage—noncash— (21)— (21)
Divestitures— — — — 
Adjustments(44)— (3)(47)
Foreign currency translation15 — 17 
Balance at December 31, 2020527  74 601 
Charges80 117 134 331 
Usage—cash(299)— (83)(382)
Usage—noncash— (119)— (119)
Divestitures— — — — 
Adjustments(14)(1)(13)
Foreign currency translation(5)— (2)(7)
Balance at December 31, 2021$289 $ $122 $411 
Certain repositioning projects will recognize exit costs in future periods when the actual liability is incurred. Such exit costs incurred in 2021, 2020, and 2019 were not significant.