REPOSITIONING AND OTHER CHARGES

12 Months Ended

Dec. 31, 2020

Restructuring and Related Activities [Abstract]

A summary of repositioning and other charges follows:


	Years Ended December 31,
	2020		2019		2018
Severance	$	475	$	260	$	289
Asset impairments	21		95		162
Exit costs	69		83		79
Reserve adjustments	(47)		(5)		(10)
Total net repositioning charge	518		433		520
Asbestos related litigation charges, net of insurance and reimbursements	50		42		163
Probable and reasonably estimable environmental liabilities, net of reimbursements	27		59		345
Other	(20)		12		63
Total net repositioning and other charges	$	575	$	546	$	1,091

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


	Years Ended December 31,
	2020		2019		2018
Cost of products and services sold	$	308	$	276	$	811
Selling, general and administrative expenses	267		270		239
Other (income) expense	—		—		41
	$	575	$	546	$	1,091

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


	Years Ended December 31,
	2020		2019		2018
Aerospace	$	157	$	33	$	154
Honeywell Building Technologies	100		108		111
Performance Materials and Technologies	167		93		191
Safety and Productivity Solutions	41		71		133
Corporate	110		241		502
	$	575	$	546	$	1,091

In 2020, the Company recognized repositioning charges totaling $565 million, including severance costs of $475 million related to workforce reductions of 14,159 manufacturing and administrative positions across our 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 slowdown in demand for many of its products and services due to the global recession, and with our productivity and ongoing functional transformation initiatives and to site consolidations and hub strategies. The repositioning charge included exit costs of $69 million primarily related to current period exit costs incurred for previously approved repositioning projects. Also, $47 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 payments.

In 2019, the Company recognized repositioning charges totaling $438 million, including severance costs of $260 million related to workforce reductions of 5,336 manufacturing and administrative positions across our segments. The workforce reductions related to our productivity and ongoing functional transformation initiatives and to site transitions, mainly in Honeywell Building Technologies, as we transition manufacturing to more cost-effective

locations. The repositioning charge included asset impairments of $95 million largely related to a write down in connection with assets held for sale. The repositioning charge included exit costs of $83 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 for closure obligations associated with site transitions.

In 2018, the Company 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.

The following table summarizes the status of the Company's total repositioning reserves:


	Severance Costs		Asset Impairments		Exit Costs		Total
Balance at December 31, 2017	$	442	$	—	$	71	$	513
Charges	289		162		79		530
Usage—cash	(218)		—		(67)		(285)
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
Charges	260		95		83		438
Usage—cash	(186)		—		(63)		(249)
Usage—noncash	—		(100)		—		(100)
Divestitures	—		—		—		—
Adjustments	(8)		5		(2)		(5)
Foreign currency translation	—		—		1		1
Balance at December 31, 2019	555		—		96		651
Charges	475		21		69		565
Usage—cash	(474)		—		(90)		(564)
Usage—noncash	—		(21)		—		(21)
Divestitures	—		—		—		—
Adjustments	(44)		—		(3)		(47)
Foreign currency translation	15		—		2		17
Balance at December 31, 2020	$	527	$	—	$	74	$	601

Certain repositioning projects will recognize exit costs in future periods when the actual liability is incurred. Such exit costs incurred in 2020, 2019 and 2018 were not significant.

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