REPOSITIONING AND OTHER CHARGES

6 Months Ended

Jun. 30, 2021

Restructuring and Related Activities [Abstract]

A summary of repositioning and other charges follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Severance	$	32	$	254	$	60	$	320
Asset impairments	45		4		87		6
Exit costs	15		15		64		30
Reserve adjustments	(22)		(18)		(21)		(31)
Total net repositioning charge	70		255		190		325
Asbestos related litigation charges, net of insurance and reimbursements	23		9		44		20
Probable and reasonably estimable environmental liabilities, net of reimbursements	6		6		11		14
Other	2		10		(3)		(17)
Total net repositioning and other charges	$	101	$	280	$	242	$	342

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


	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Cost of products and services sold	$	87	$	175	$	185	$	195
Selling, general and administrative expenses	14		105		57		147

	$	101	$	280	$	242	$	342

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


	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Aerospace	$	9	$	107	$	57	$	118
Honeywell Building Technologies	(1)		33		4		58
Performance Materials and Technologies	2		84		7		105
Safety and Productivity Solutions	59		11		96		17
Corporate	32		45		78		44
	$	101	$	280	$	242	$	342

In the three months ended June 30, 2021, we recognized gross repositioning charges totaling $92 million including severance costs of $32 million related to workforce reductions of 3,628 manufacturing and administrative positions mainly in our Safety and Productivity Solutions segment. The workforce reductions were primarily related to the re-alignment of a product line in our Safety and Productivity Solutions segment and to our productivity and ongoing functional transformation initiatives. The repositioning charge included asset impairments of $45 million primarily related to the write-down of certain manufacturing equipment. The repositioning charge also included exit costs of $15 million primarily for current period exit costs incurred for previously approved repositioning projects. Also, $22 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 three months ended June 30, 2020, we recognized gross repositioning charges totaling $273 million including severance costs of $254 million related to workforce reductions of 7,805 manufacturing and administrative positions across all of 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 current and anticipated slowdown in demand for many of our products and services due to the global recession, and our productivity and ongoing functional transformation initiatives.

In the six months ended June 30, 2021, we recognized gross repositioning charges totaling $211 million including severance costs of $60 million related to workforce reductions of 4,649 manufacturing and administrative positions mainly in our Safety and Productivity Solutions and Aerospace segments. The workforce reductions were primarily related to the re-alignment of a product line in our Safety and Productivity Solutions segment, site transitions, mainly in Aerospace, to more cost-effective locations, and our productivity and ongoing functional transformation initiatives. The repositioning charge included asset impairments of $87 million primarily related to the write-down of certain manufacturing and other equipment. The repositioning charge included exit costs of $64 million primarily for current period exit costs incurred for previously approved repositioning projects, closure obligations associated with site transitions, and lease obligations for equipment. Also, $21 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 six months ended June 30, 2020, we recognized gross repositioning charges totaling $356 million including severance costs of $320 million related to workforce reductions of 9,929 manufacturing and administrative positions across our segments, with a majority of the reductions in Aerospace and Performance Materials and Technologies. The workforce reductions primarily related to the Company aligning its cost structure with the current and anticipated slowdown in demand for many of our products and services due to the global recession, and our productivity and ongoing functional transformation initiatives. Also, $31 million of previously established reserves, primarily for severance, were returned to income mainly as a result of higher attrition than anticipated in prior severance programs resulting in lower severance payments.

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


	Severance Costs		Asset Impairments		Exit Costs		Total
Balance at December 31, 2020	$	527	$	—	$	74	$	601
Charges	60		87		64		211
Usage - cash	(162)		—		(40)		(202)
Usage - noncash	—		(89)		—		(89)
Foreign currency translation	(1)		—		(2)		(3)
Adjustments	(19)		2		(4)		(21)
Balance at June 30, 2021	$	405	$	—	$	92	$	497

Certain repositioning projects will recognize exit costs in future periods when the actual liability is incurred. Such exit costs incurred in the six months ended June 30, 2021 and 2020, were $20 million and $19 million, respectively.