REPOSITIONING AND OTHER CHARGES

9 Months Ended

Sep. 30, 2020

Restructuring and Related Activities [Abstract]

Note 3. Repositioning and Other Charges

A summary of repositioning and other charges follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Severance	$	113	$	41	$	433	$	147
Asset impairments	5		15		11		26
Exit costs	17		33		47		62
Reserve adjustments	(11)		(3)		(42)		(7)
Total net repositioning charge	124		86		449		228
Asbestos related litigation charges, net of insurance and reimbursements	13		9		33		26
Probable and reasonably estimable environmental liabilities, net of reimbursements	6		6		20		59
Other	1		(5)		(16)		(7)
Total net repositioning and other charges	$	144	$	96	$	486	$	306

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,
	2020		2019		2020		2019
Cost of products and services sold	$	91	$	75	$	286	$	204
Selling, general and administrative expenses	53		21		200		102

	$	144	$	96	$	486	$	306

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,
	2020		2019		2020		2019
Aerospace	$	33	$	12	$	151	$	32
Honeywell Building Technologies	29		28		87		36
Performance Materials and Technologies	34		28		139		61
Safety and Productivity Solutions	15		6		32		54
Corporate	33		22		77		123
	$	144	$	96	$	486	$	306

In the three months ended September 30, 2020, the Company 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 three months ended September 30, 2019, the Company recognized gross repositioning charges totaling $89 million including severance costs of $41 million related to workforce reductions of 1,123 manufacturing and administrative positions across the Company's segments. The workforce reductions primarily related to cost savings actions taken in connection with our productivity and ongoing functional transformation initiatives. The repositioning charges included exit costs of $33 million primarily related to termination fees associated with the early cancellation of supply agreements for certain raw materials in Performance Materials and Technologies and Honeywell Building Technologies and current period exit costs incurred for previously approved repositioning projects.

In the nine months ended September 30, 2020, the Company 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.

In the nine months ended September 30, 2019, the Company recognized gross repositioning charges totaling $235 million including severance costs of $147 million related to workforce reductions of 3,436 manufacturing and administrative positions across the Company's segments. The workforce reductions primarily related to cost savings actions taken in connection with the Company's productivity and functional transformation initiatives and to site transitions in Aerospace to more cost-effective locations. The repositioning charges included exit costs of $62 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 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
December 31, 2019	$	555	$	—	$	96	$	651
Charges	433		11		47		491
Usage - cash	(343)		—		(56)		(399)
Usage - noncash	—		(11)		—		(11)
Foreign currency translation	9		—		—		9
Adjustments	(40)		—		(2)		(42)
September 30, 2020	$	614	$	—	$	85	$	699

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, 2020 and 2019 were $32 million and $21 million, respectively.