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REPOSITIONING AND OTHER CHARGES
 9 Months Ended
Sep. 30, 2024
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 September 30,Nine Months Ended September 30,
 2024202320242023
Severance$38 $35 $91 $121 
Asset impairments3 16 5 37 
Exit costs15 36 48 98 
Reserve adjustments(28)(23)(55)(40)
Total net repositioning charges28 64 89 216 
Asbestos-related charges, net of insurance and reimbursements18 24 54 79 
Probable and reasonably estimable environmental liabilities, net of reimbursements6 6 29 40 
Other charges— (6)17 (4)
Total net repositioning and other charges$52 $88 $189 $331 
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 September 30,Nine Months Ended September 30,
 2024202320242023
Cost of products and services sold$23 $57 $109 $200 
Selling, general and administrative expenses29 31 63 122 
Other (income) expense— — 17 9 
Total net repositioning and other charges$52 $88 $189 $331 
The following table summarizes the pre-tax amount of total net repositioning and other charges by reportable business segment. These amounts are excluded from segment profit as described in Note 18 Segment Financial Data:
Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
Aerospace Technologies$(7)$10 $1 $21 
Industrial Automation21 26 49 115 
Building Automation1 9 1 40 
Energy and Sustainability Solutions1 19 20 24 
Corporate and All Other36 24 118 131 
Total net repositioning and other charges$52 $88 $189 $331 
NET REPOSITIONING CHARGES
In the three months ended September 30, 2024, the Company recognized gross repositioning charges totaling $56 million, including severance costs of $38 million related to workforce reductions of 727 manufacturing and administrative positions primarily in the Company's Industrial Automation and Aerospace Technologies reportable business segments. The workforce reductions related to productivity and ongoing functional transformation initiatives. The repositioning charges included asset impairments of $3 million related to the write-down of certain assets within the Company's Industrial Automation reportable business segment. The repositioning charges also included exit costs of $15 million related to current period costs incurred for closure obligations associated with site transitions primarily in the Company's Industrial Automation reportable business segment and corporate function. Also, $28 million of previously established reserves, primarily for severance, were returned to income due to higher-than-expected voluntary exits and adjustments to the scope of previously announced repositioning actions.
In the three months ended September 30, 2023, the Company recognized gross repositioning charges totaling $87 million, including severance costs of $35 million related to workforce reductions of 1,567 manufacturing and administrative positions primarily in the Company's Building Automation and Industrial Automation reportable business segments. The workforce reductions related to productivity and ongoing functional transformation initiatives. The repositioning charges included asset impairments of $16 million primarily related to the write-down of certain assets within the Company's Industrial Automation reportable business segment. The repositioning charges also included exit costs of $36 million related to current period costs incurred for closure obligations associated with site transitions primarily in the Company's Industrial Automation and Energy and Sustainability Solutions reportable business segments. Also, $23 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 nine months ended September 30, 2024, the Company recognized gross repositioning charges totaling $144 million, including severance costs of $91 million related to workforce reductions of 2,734 manufacturing and administrative positions primarily in the Company's Industrial Automation and Aerospace Technologies reportable business segments and corporate function. The workforce reductions related to productivity and ongoing functional transformation initiatives. The repositioning charges included asset impairments of $5 million related to the write-down of certain assets within the Company's Industrial Automation reportable business segment. The repositioning charges also included exit costs of $48 million related to current period costs incurred for closure obligations associated with site transitions primarily in the Company's Industrial Automation reportable business segment and corporate function. Also, $55 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 nine months ended September 30, 2023, the Company recognized gross repositioning charges totaling $256 million, including severance costs of $121 million related to workforce reductions of 4,128 manufacturing and administrative positions primarily in the Company's Industrial Automation and Building Automation reportable business segments. The workforce reductions primarily related to productivity and ongoing functional transformation initiatives. The repositioning charges included asset impairments of $37 million related to the write-down of certain assets within the Company's Industrial Automation reportable business segment. The repositioning charges also included exit costs of $98 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, $40 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, 2023
$188 $— $91 $279 
Charges91 5 48 144 
Usage—cash(72)— (73)(145)
Usage—noncash— 10 — 10 
Foreign currency translation(9)— — (9)
Adjustments(26)(15)(14)(55)
Reclassifications to Liabilities held for sale(14)— (8)(22)
Balance at September 30, 2024
$158 $— $44 $202 
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, 2024, and 2023, were $41 million and $40 million, respectively.
OTHER CHARGES
In 2022, the Company recognized $295 million of Other charges related to the initial suspension and the wind down of the Company's business and operations in Russia. These costs impacted all reportable business segments, with the most significant impact within the historical Performance Materials and Technologies reportable business segment. The Other charges include costs recorded in Cost of products sold, Selling, general and administrative expenses, or Other (income) expense in the Consolidated Statement of Operations. During the nine months ended September 30, 2024, the Company recognized Other charges of $17 million related to the settlement of a contractual dispute with a Russian entity associated with the Company's suspension and wind down activities in Russia. The charges were recorded in Other (income) expense in the Consolidated Statement of Operations.
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 15 Commitments and Contingencies for a discussion of the recognition and measurement of estimate for contingencies.
During the nine months ended September 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 15 Commitments and Contingencies) and reduced the estimate by $11 million. See Note 12 Fair Value Measurements and Note 15 Commitments and Contingencies for further discussion.