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REPOSITIONING AND OTHER CHARGES
 6 Months Ended
Jun. 30, 2023
Restructuring and Related Activities [Abstract]  
REPOSITIONING AND OTHER CHARGES REPOSITIONING AND OTHER CHARGES
A summary of net repositioning and other charges follows:
Three Months Ended June 30,Six Months Ended June 30,
 2023202220232022
Severance$19 $25 $86 $32 
Asset impairments9 25 21 148 
Exit costs38 41 62 58 
Reserve adjustments(12)(37)(17)(52)
Total net repositioning charges54 54 152 186 
Asbestos-related charges, net of insurance and reimbursements34 40 55 86 
Probable and reasonably estimable environmental liabilities, net of reimbursements12 2 34 16 
Other charges2 131 2 326 
Total net repositioning and other charges$102 $227 $243 $614 
The following table summarizes the pre-tax distribution of total net repositioning and other charges by classification in the Consolidated Statement of Operations:
 Three Months Ended June 30,Six Months Ended June 30,
 2023202220232022
Cost of products and services sold$63 $145 $143 $344 
Selling, general and administrative expenses26 25 91 213 
Other (income) expense13 57 9 57 
Total net repositioning and other charges$102 $227 $243 $614 
The following table summarizes the pre-tax amount of total net repositioning and other charges by reportable business segment. These amounts are excluded from segment profit as described in Note 17 Segment Financial Data:
Three Months Ended June 30,Six Months Ended June 30,
 2023202220232022
Aerospace$8 $15 $11 $36 
Honeywell Building Technologies4 23 31 37 
Performance Materials and Technologies4 88 23 247 
Safety and Productivity Solutions31 15 71 142 
Corporate and All Other55 86 107 152 
Total net repositioning and other charges$102 $227 $243 $614 
In the three months ended June 30, 2023, the Company recognized gross repositioning charges totaling $66 million, including severance costs of $19 million related to workforce reductions of 764 manufacturing and administrative positions primarily in the Company's Safety and Productivity Solutions reportable business segment. The workforce reductions were related to productivity and ongoing functional transformation initiatives. The repositioning charges included asset impairments of $9 million primarily related to the write-down of certain assets within the Company's Safety and Productivity Solutions reportable business segment. The repositioning charges also included exit costs of $38 million related to current period costs incurred for closure obligations associated with site transitions across all of the Company's reportable business segments and corporate function. Also, $12 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 three months ended June 30, 2022, the Company recognized gross repositioning charges totaling $91 million, including severance costs of $25 million related to workforce reductions of 468 manufacturing and administrative positions primarily in the Company's Safety and Productivity Solutions reportable business segment. The workforce reductions were primarily related to productivity and ongoing functional transformation initiatives. The repositioning charges included asset impairments of $25 million related to the write-down of certain manufacturing equipment. The repositioning charges also included exit costs of $41 million primarily related to current period exit costs incurred for new and previously approved repositioning projects and closure obligations associated with site transitions in the Company's Performance Materials and Technologies and Aerospace reportable business segments. Also, $37 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 six months ended June 30, 2023, the Company recognized gross repositioning charges totaling $169 million, including severance costs of $86 million related to workforce reductions of 2,561 manufacturing and administrative positions primarily in the Company's Safety and Productivity Solutions and Honeywell Building Technologies reportable business segments. The workforce reductions were primarily related to productivity and ongoing functional transformation initiatives. The repositioning charges included asset impairments of $21 million related to the write-down of certain assets within the Company's Safety and Productivity Solutions reportable business segment. The repositioning charges also included exit costs of $62 million related to current period costs incurred for closure obligations associated with site transitions across all of the Company's reportable business segments and corporate function. Also, $17 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 six months ended June 30, 2022, the Company recognized gross repositioning charges totaling $238 million, primarily related to closing and relocating the production of certain respiratory manufacturing from a U.S.-based facility to a non-U.S. facility in the Company's Safety and Productivity Solutions reportable business segment, productivity and ongoing functional transformation initiatives, and other site transactions. The repositioning charges included asset impairments of $148 million related to the write-down of certain manufacturing equipment. The repositioning charges included exit costs of $58 million primarily related to current period exit costs incurred for new and previously approved repositioning projects and closure obligations associated with site transitions in the Company's Performance Materials and Technologies and Aerospace reportable business segments. The repositioning charges included severance costs of $32 million related to workforce reductions of 1,664 manufacturing and administrative positions across the Company's reportable business segments. The workforce reductions were primarily related to cost savings actions taken in connection with productivity and ongoing functional transformation initiatives and to site transitions to more cost-effective locations. Also, $52 million of previously established reserves, primarily for severance, were returned to income due to adjustments to the scope of previously announced repositioning actions.
The following table summarizes the status of the Company's total repositioning reserves:
Severance
Costs		Asset
Impairments		Exit
Costs		Total
Balance at December 31, 2022
$235 $— $74 $309 
Charges86 21 62 169 
Usage—cash(104)— (46)(150)
Usage—noncash— (19)— (19)
Foreign currency translation6 — 16 22 
Adjustments(12)(2)(5)(19)
Balance at June 30, 2023
$211 $— $101 $312 
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, 2023, and 2022, were $25 million and $31 million, respectively.
During the three and six months ended June 30, 2023, the Company recorded a fair value adjustment, within Asbestos-related charges, net of insurance and reimbursements in the table above and Other (income) expense on the Consolidated Statement of Operations, related to HWI Net Sale Proceeds (as defined in Note 11 Fair Value Measurements) and reduced the estimate by $11 million. See Note 11 Fair Value Measurements and Note 14 Commitments and Contingencies for further discussion.
During the three and six months ended June 30, 2022, the Company recognized Other charges of $124 million and $307 million, respectively. The Other charges included costs related to the initial suspension of substantially all of the Company's sales, distribution, and service activities in Russian and Belarus (the Suspension) and the Company’s plan to wind down existing businesses and operations in Russia due to the ongoing Russia-Ukraine conflict (the Wind down). Through the Wind down of businesses and operations, the Company will seek to collect outstanding accounts receivables, liquidate our inventory and fixed assets, negotiate and settle existing contractual obligations, trade payables and guarantees, and terminate and payout severance to impacted employees.
Other charges included costs recorded by all reportable business segments, with the most significant impact within the Performance Materials and Technologies reportable business segment. The Other charges included costs recorded in Cost of products sold, Selling, general and administrative expenses, or Other (income) expense on the Consolidated Statement of Operations, based on the nature of each specific charge or accrual of reserve. For the three months ended June 30, 2022, Cost of products and services sold included $60 million primarily related to inventory reserves and the write-down of other assets, Selling, general and administrative included $7 million primarily related to employee severance, and Other (income) expense included $57 million related to foreign exchange revaluation on an intercompany loan with a Russian affiliate and impairment of property, plant and equipment. For the six months ended June 30, 2022, Cost of products and services sold included $60 million primarily related to inventory reserves and the write-down of other assets, Selling, general and administrative included $190 million primarily related to reserves against outstanding accounts receivable and contract assets, impairment of intangible assets, the write-down of other assets, and employee severance, and Other (income) expense included $57 million related to foreign exchange revaluation on an intercompany loan with a Russian affiliate and impairment of property, plant and equipment. For the three and six months ended June 30, 2022, the Other charges did not include a $2 million tax valuation allowance recorded to Tax expense on the Consolidated Statement of Operations, directly attributable to the Wind down of businesses and operations in Russia.
Given the uncertainty inherent in the Company's remaining obligations related to contracts with Russian counterparties, the Company does not believe it is possible to develop estimates of reasonably possible loss in excess of current accruals for these matters (other than as specifically set forth above). Based on available information to date, the Company’s estimate of potential future losses or other contingencies related to the wind down of activities, including any guarantee payments or any litigation costs or as otherwise related to the Company's wind down in Russia, could adversely affect the Company's consolidated results of operations in the periods recognized but would not be material with respect to the Company's consolidated financial position. See Note 14 Commitments and Contingencies for a discussion of the recognition and measurement of estimate for contingencies.