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REPOSITIONING AND OTHER CHARGES | 6 Months Ended
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Jun. 30, 2025
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 June 30, |  | Six Months Ended June 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Severance | $ | 3 |  |  | $ | 20 |  |  | $ | 27 |  |  | $ | 53 |
Asset impairments | 1 |  |  | 1 |  |  | 2 |  |  | 2 |
Exit costs | 17 |  |  | 18 |  |  | 28 |  |  | 33 |
Reserve adjustments | (11) |  |  | (12) |  |  | (38) |  |  | (27) |
Total net repositioning charges | 10 |  |  | 27 |  |  | 19 |  |  | 61 |
Asbestos-related charges, net of insurance and reimbursements | 21 |  |  | 18 |  |  | 41 |  |  | 36 |
Probable and reasonably estimable environmental liabilities, net of reimbursements | 8 |  |  | (1) |  |  | 24 |  |  | 23 |
Other charges | — |  |  | — |  |  | — |  |  | 17 |
Total net repositioning and other charges | $ | 39 |  |  | $ | 44 |  |  | $ | 84 |  |  | $ | 137 |
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 June 30, |  | Six Months Ended June 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Cost of products and services sold | $ | 30 |  |  | $ | 28 |  |  | $ | 67 |  |  | $ | 86 |
Selling, general and administrative expenses | 9 |  |  | 16 |  |  | 17 |  |  | 34 |
Other (income) expense | — |  |  | — |  |  | — |  |  | 17 |
Total net repositioning and other charges | $ | 39 |  |  | $ | 44 |  |  | $ | 84 |  |  | $ | 137 |
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 June 30, |  | Six Months Ended June 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Aerospace Technologies | $ | 1 |  |  | $ | 3 |  |  | $ | (6) |  |  | $ | 8 |
Industrial Automation | 3 |  |  | 11 |  |  | 10 |  |  | 28 |
Building Automation | 1 |  |  | (4) |  |  | 12 |  |  | — |
Energy and Sustainability Solutions | 1 |  |  | 1 |  |  | 1 |  |  | 19 |
Corporate and All Other | 33 |  |  | 33 |  |  | 67 |  |  | 82 |
Total net repositioning and other charges | $ | 39 |  |  | $ | 44 |  |  | $ | 84 |  |  | $ | 137 |
NET REPOSITIONING CHARGES In the three months ended June 30, 2025, the Company recognized gross repositioning charges totaling $21 million, including severance costs of $3 million related to workforce reductions of 149 manufacturing and administrative positions primarily in the Company's Industrial Automation reportable business segment. The workforce reductions related to productivity and ongoing functional transformation initiatives. The repositioning charges included asset impairments of $1 million related to the write-down of certain assets within the corporate function. The repositioning charges also included exit costs of $17 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, $11 million of pr eviously 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 June 30, 2024, the Company recognized gross repositioning charges totaling $39 million, including severance costs of $20 million related to workforce reductions of 645 manufacturing and administrative positions primarily in the Company's Industrial Automation reportable business segments and corporate function. The workforce reductions related to productivity and ongoing functional transformation initiatives. The repositioning charges included asset impairments of $1 million related to the write-down of certain assets within the Company's corporate function. The repositioning charges also included exit costs of $18 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, $12 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 six months ended June 30, 2025, the Company recognized gross repositioning charges totaling $57 million, including severance costs of $27 million related to workforce reductions of 862 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 also included asset impairments of $2 million for the write-down of certain assets within the Company's Industrial Automation reportable business segment and corporate function. The repositioning charges also included exit costs of $28 million primarily related to current period costs incurred for closure obligations associated with site transitions primarily in the Company's Industrial Automation and Building Automation reportable business segments and corporate function. Also, $38 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 six months ended June 30, 2024, the Company recognized gross repositioning charges totaling $88 million, including severance costs of $53 million related to workforce reductions of 2,007 manufacturing and administrative positions primarily in the Company's Industrial Automation reportable business segments and corporate function. The workforce reductions related to productivity and ongoing functional transformation initiatives. The repositioning charges included asset impairments of $2 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 $33 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, $27 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 repositioning reserves, excluding amounts that are included in Liabilities held for sale in the Consolidated Balance Sheet:
| Severance Costs |  | Asset Impairments |  | Exit Costs |  | Total
Balance at December 31, 2024 | $ | 178 |  |  | $ | — |  |  | $ | 7 |  |  | $ | 185 |
Charges | 27 |  |  | 2 |  |  | 28 |  |  | 57 |
Usage—cash | (48) |  |  | — |  |  | (33) |  |  | (81) |
Usage—noncash | — |  |  | (2) |  |  | — |  |  | (2) |
Foreign currency translation | 1 |  |  | — |  |  | 1 |  |  | 2 |
Adjustments | (31) |  |  | — |  |  | — |  |  | (31) |
Balance at June 30, 2025 | $ | 127 |  |  | $ | — |  |  | $ | 3 |  |  | $ | 130 |
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, 2025, and 2024, wer e $29 million and $26 million, respectively. OTHER CHARGES During the six months ended June 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 suspension and wind down 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.

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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 -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4.e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479823/420-10-S99-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482017/420-10-50-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482017/420-10-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/420/tableOfContent Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482017/420-10-50-1 + Details
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