REPOSITIONING AND OTHER CHARGES

12 Months Ended

Dec. 31, 2018

Repositioning And Other Charges [Abstract]

Note 3. Repositioning and Other Charges

	A summary of repositioning and other charges follows:

			Years Ended December 31,
			2018		2017		2016
Severance		$	289	$	305	$	283
Asset impairments			162		142		43
Exit costs			79		60		43
Reserve adjustments			(10)		(16)		(109)
	Total net repositioning charge		520		491		260

Asbestos related litigation charges, net of insurance and indemnities			163		159		217
Probable and reasonably estimable environmental liabilities, net of indemnities			345		287		195
Other			63		36		18
	Total net repositioning and other charges	$	1,091	$	973	$	690

The following table summarizes the pre-tax distribution of total net repositioning and other charges by classification:
		Years Ended December 31,
		2018		2017		2016
Cost of products and services sold	$	811	$	736	$	517
Selling, general and administrative expenses		239		187		126
Other (income) expense		41		50		47
	$	1,091	$	973	$	690

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

		Years Ended December 31,
		2018		2017		2016
Aerospace	$	154	$	248	$	293
Honeywell Building Technologies		111		78		28
Performance Materials and Technologies		191		102		101
Safety and Productivity Solutions		133		51		1
Corporate		502		494		267
	$	1,091	$	973	$	690

In 2018, we recognized repositioning charges totaling $530 million including severance costs of $289 million related to workforce reductions of 6,486 manufacturing and administrative positions across our segments. The workforce reductions were primarily related to planned site closures, mainly in Safety and Productivity Solutions, Performance Materials and Technologies and Honeywell Building Technologies, as we transition manufacturing sites to more cost-effective locations. The workforce reductions were also related to our productivity and ongoing functional transformation initiatives. The repositioning charge included asset impairments of $162 million mainly related to manufacturing plant and equipment associated with planned site closures. Asset impairments also included the write-down of a legacy property in Corporate in connection with its planned disposition and the write-off of certain capitalized assets in Corporate. The repositioning charge included exit costs of $79 million primarily related to a termination fee associated with the early cancellation of a supply agreement for certain raw materials in Performance Materials and Technologies and for closure obligations associated with planned site closures.

In 2017, we recognized repositioning charges totaling $507 million including severance costs of $305 million related to workforce reductions of 7,096 manufacturing and administrative positions across our segments. The workforce reductions were primarily related to cost savings actions taken in connection with our productivity and ongoing functional transformation initiatives and with site transitions, in each of our segments, to more cost-effective locations. The repositioning charge included asset impairments of $142 million principally in our Corporate segment related to the write-down of legacy properties and certain equipment in connection with their planned disposition and the write-down of a research and development facility in connection with a planned exit from such facility. The repositioning charge included exit costs of $60 million principally for closure obligations associated with site transitions in each of our segments and for lease exit obligations in our Corporate segment.

In 2016, we recognized repositioning charges totaling $369 million including severance costs of $283 million related to workforce reductions of 6,585 manufacturing and administrative positions across our segments. The workforce reductions were primarily related to cost savings actions taken in connection with our productivity and ongoing functional transformation initiatives; the separation of the former Automation and Control Solutions reporting segment into two new reporting segments; site transitions in each of our segments to more cost-effective locations; and achieving acquisition-related synergies. The repositioning charge included asset impairments of $43 million principally related to the write-off of certain intangible assets in connection with the sale of a Performance Materials and Technologies business. The repositioning charge included exit costs of $43 million principally for expenses related to the spin-off of our AdvanSix business and closure obligations associated with site transitions. Also, $109 million of previously established accruals, primarily for severance, were returned to income as a result of higher attrition than anticipated in prior severance programs resulting in lower required severance payments, lower than expected severance costs in certain repositioning actions, and changes in scope of previously announced repositioning actions.

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

			Severance		Asset		Exit
			Costs		Impairments		Costs		Total
Balance at December 31, 2015		$	329	$	-	$	21	$	350
	2016 charges		283		43		43		369
	2016 usage - cash		(203)		-		(25)		(228)
	2016 usage - noncash		(6)		(43)		-		(49)
	Adjustments		(106)		-		(3)		(109)
	Foreign currency translation		1		-		(3)		(2)
Balance at December 31, 2016			298		-		33		331
	2017 charges		305		142		60		507
	2017 usage - cash		(163)		-		(14)		(177)
	2017 usage - noncash		-		(142)		-		(142)
	Adjustments and reclassifications		(13)		-		(10)		(23)
	Foreign currency translation		15		-		2		17
Balance at December 31, 2017			442		-		71		513
	2018 charges		289		162		79		530
	2018 usage - cash		(218)		-		(67)		(285)
	2018 usage - noncash		-		(163)		-		(163)
	Divestitures		(11)		-		(3)		(14)
	Adjustments		(8)		1		(3)		(10)
	Foreign currency translation		(5)		-		-		(5)
Balance at December 31, 2018		$	489	$	-	$	77	$	566

Certain repositioning projects will recognize exit costs in future periods when the actual liability is incurred. Such exit costs incurred in 2018, 2017 and 2016 were not significant.

In 2018, the other charge of $63 million mainly relates to reserves taken due to the required wind-down of our activities in Iran and the evaluation of potential resolution of a certain legal matter.