XML 22 R9.htm IDEA: XBRL DOCUMENT v3.19.1
REPOSITIONING AND OTHER CHARGES
3 Months Ended
Mar. 31, 2019
Restructuring and Related Activities [Abstract]  
Repositioning and Other Charges
Note 3. Repositioning and Other Charges
 
A summary of repositioning and other charges follows:
 
Three Months Ended March 31,
 
2019
 
2018
Severance
$
31

 
$
31

Asset impairments
11

 
47

Exit costs
18

 
8

Reserve adjustments
(2
)
 
(1
)
Total net repositioning charge
58

 
85

Asbestos related litigation charges, net of insurance and indemnities
11

 
49

Probable and reasonably estimable environmental liabilities, net of indemnities
14

 
57

Other
1

 

Total net repositioning and other charges
$
84

 
$
191



The following table summarizes the pretax distribution of total net repositioning and other charges by classification:
 
Three Months Ended March 31,
 
2019
 
2018
Cost of products and services sold
$
55

 
$
128

Selling, general and administrative expenses
29

 
22

Other (income) expense

 
41

 
$
84

 
$
191



The following table summarizes the pretax impact of total net repositioning and other charges by segment:
 
Three Months Ended March 31,
 
2019
 
2018
Aerospace
$
16

 
$
68

Honeywell Building Technologies
8

 
4

Performance Materials and Technologies
(1
)
 
4

Safety and Productivity Solutions
5

 
7

Corporate
56

 
108

 
$
84

 
$
191


 
In the quarter ended March 31, 2019, we recognized gross repositioning charges totaling $60 million including severance costs of $31 million related to workforce reductions of 1,047 manufacturing and administrative positions mainly in Corporate, Aerospace and Honeywell Building Technologies. The workforce reductions were primarily related to our productivity and ongoing functional initiatives and to site transitions in Aerospace to more cost-effective locations.     
In the quarter ended March 31, 2018, we recognized gross repositioning charges totaling $86 million including severance costs of $31 million related to workforce reductions of 1,153 manufacturing and administrative positions mainly in Aerospace and Safety and Productivity Solutions. The workforce reductions were primarily related to site transitions to more cost-effective locations. The repositioning charges included asset impairments of $47 million primarily in our Corporate segment related to the write-down of a legacy property in connection with its planned disposition.
 
The following table summarizes the status of our total repositioning reserves:
 
Severance
Costs
 
Asset
Impairments
 
Exit
Costs
 
Total
December 31, 2018
$
489

 
$

 
$
77

 
$
566

Charges
31

 
11

 
18

 
60

Usage - cash
(35
)
 

 
(9
)
 
(44
)
Usage - noncash

 
(11
)
 

 
(11
)
Foreign currency translation
1

 

 

 
1

Adjustments
(1
)
 

 
(1
)
 
(2
)
March 31, 2019
$
485

 
$

 
$
85

 
$
570



 Certain repositioning projects will recognize exit costs in future periods when the actual liability is incurred. Such exit costs incurred in the quarters ended March 31, 2019 and 2018 were not significant.