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REPOSITIONING AND OTHER CHARGES | 3 Months Ended
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Mar. 31, 2023
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 March 31,
|  |  |  | 2023 | 2022
Severance |  |  |  |  |  |  | $ | 67 |  |  | $ | 7 |
Asset impairments |  |  |  |  |  |  | 12 |  |  | 123 |
Exit costs |  |  |  |  |  |  | 24 |  |  | 17 |
Reserve adjustments |  |  |  |  |  |  | (5) |  |  | (15) |
Total net repositioning charge |  |  |  |  |  |  | 98 |  |  | 132 |
Asbestos-related charges, net of insurance and reimbursements |  |  |  |  |  |  | 21 |  |  | 46 |
Probable and reasonably estimable environmental liabilities, net of reimbursements |  |  |  |  |  |  | 22 |  |  | 14 |
Other charges |  |  |  |  |  |  | — |  |  | 195 |
Total net repositioning and other charges |  |  |  |  |  |  | $ | 141 |  |  | $ | 387 |
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 March 31,
|  |  |  | 2023 | 2022
Cost of products and services sold |  |  |  |  |  |  | $ | 80 |  |  | $ | 199 |
Selling, general and administrative expenses |  |  |  |  |  |  | 65 |  |  | 188 |
Other (income) expense |  |  |  |  |  |  | (4) |  |  | — |
Total net repositioning and other charges |  |  |  |  |  |  | $ | 141 |  |  | $ | 387 |
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 17 Segment Financial Data:
|  |  | Three Months Ended March 31,
|  |  |  | 2023 | 2022
Aerospace |  |  |  |  |  |  | $ | 3 |  |  | $ | 21 |
Honeywell Building Technologies |  |  |  |  |  |  | 27 |  |  | 14 |
Performance Materials and Technologies |  |  |  |  |  |  | 19 |  |  | 159 |
Safety and Productivity Solutions |  |  |  |  |  |  | 40 |  |  | 127 |
Corporate and All Other |  |  |  |  |  |  | 52 |  |  | 66 |
Total net repositioning and other charges |  |  |  |  |  |  | $ | 141 |  |  | $ | 387 |
In the three months ended March 31, 2023, the Company recognized repositioning charges totaling $103 million, including severance costs of $67 million related to workforce reductions of 1,797 manufacturing and administrative positions mainly in the Company's Honeywell Building Technologies, Safety and Productivity Solutions, and Performance Materials and Technologies reportable business segments. The workforce reductions were related to our productivity and ongoing functional transformation initiatives. The repositioning charges included asset impairments of $12 million related to the write-down of certain assets within our Safety and Productivity Solutions reportable business segment. The repositioning charges also included exit costs of $24 million related to current period costs incurred for closure obligations associated with site transitions across all of the Company's reportable business segments. In the three months ended March 31, 2022, the Company recognized repositioning charges totaling $147 million, primarily related to closing and relocating the production of certain respiratory manufacturing from a US.-based facility to a non-U.S. facility. The repositioning charges included asset impairments of $123 million primarily related to the write-down of certain manufacturing equipment, and exit costs of $17 million primarily for current period costs incurred for previously approved repositioning projects, closure obligations associated with site transitions, and lease obligations for equipment. These charges also included severance costs of $7 million related to workforce reductions of 1,196 manufacturing and administrative positions across all of the Company's reportable business segments. The following table summarizes the status of the Company's total repositioning reserves:
| Severance Costs | Asset Impairments | Exit Costs | Total
Balance at December 31, 2022 |  | $ | 235 |  |  | $ | — |  |  | $ | 74 |  |  | $ | 309 |
Charges |  | 67 |  |  | 12 |  |  | 24 |  |  | 103 |
Usage—cash |  | (54) |  |  | — |  |  | (19) |  |  | (73) |
Usage—noncash |  | — |  |  | (12) |  |  | — |  |  | (12) |
Foreign currency translation |  | 3 |  |  | — |  |  | 16 |  |  | 19 |
Adjustments |  | (1) |  |  | — |  |  | (4) |  |  | (5) |
Balance at March 31, 2023 |  | $ | 250 |  |  | $ | — |  |  | $ | 91 |  |  | $ | 341 |
Certain repositioning projects will recognize exit costs in future periods when the actual liability is incurred. Such exit costs incurred in the three months ended March 31, 2023, and 2022, were $10 million and $11 million, respectively. During the three months ended March 31, 2022, Selling, general and administrative expenses on the Consolidated Statement of Operations and within Other charges on the table above included $183 million of reserves against outstanding accounts receivable, contract assets, and impairments of other assets due to the suspension of substantially all of the Company's sales, distribution and service activities in Russia and Belarus, sanctions, and deteriorating trade relations in Russia due to the Russia-Ukraine conflict. Based on available information to date, the Company’s estimate of potential future impairments on the Company's businesses in Russia would not be material with respect to the Company's consolidated financial position. 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 our 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 14 Commitments and Contingencies for a discussion of the recognition and measurement of estimate for contingencies.

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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4(e)) -URI https://asc.fasb.org/extlink&oid=115931487&loc=d3e140904-122747 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI https://asc.fasb.org/topic&trid=2175745 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (b)(2) -URI https://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 + Details
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