Honeywell 2005 Annual Report Download - page 77

HONEYWELL INTERNATIONAL INC.
NOTES TO FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)
The following table summarizes the pretax impact of total net repositioning and other charges by reportable segment.
Years Ended December 31,
2005 2004 2003
Aerospace $ 96 $ (5) $ 10
Automation and Control Solutions 85 28 (22)
Specialty Materials (34) 90 20
Transportation Systems 82 147 16
Corporate 183 515 254
$412 $775 $278
In 2005, we recognized repositioning charges totaling $267 million primarily for severance costs related to workforce reductions
of 5,269 maufacturing and administrative positions across all of our reportable segments including the implementation of a new
organizational structure in our Aerospace reportable segment which reorganized our Aerospace businesses to better align with
customer segments. The implementation of the new Aerospace organizational structure was substantially completed in the third
quarter of 2005. Also, $25 million of previously established accruals, primarily for severance at our Corporate, Specialty Materials
and Automation and Control Solutions reportable segments were returned to income in 2005. The reversal of severance liabilities
relates to changes in the scope of previously announced severance programs, excise taxes relating to an executive severance amount
previously paid which were determined to no longer be payable, and severance amounts previously paid to an outside service provider
as part of an outsourcing arrangement which were refunded to Honeywell.
In 2004, we recognized repositioning charges totaling $116 million primarily for severance costs related to workforce reductions
of 2,272 manufacturing and administrative positions across all of our reportable segments. Also, $28 million of previously established
accruals, primarily for severance, were returned to income in 2004, due to fewer employee separations than originally planned
associated with certain prior repositioning actions, resulting in reduced severance liabilities principally in our Automation and Control
Solutions reportable segment.
In 2003, we recognized repositioning charges totaling $82 million primarily for severance costs related to workforce reductions of
1,501 manufacturing and administrative positions across all of our reportable segments. Also, $69 million of previously established
accruals, primarily for severance, were returned to income in 2003, due to fewer employee separations than originally planned
associated with certain prior repositioning actions, resulting in reduced severance liabilities in our Automation and Control Solutions,
Aerospace and Specialty Materials reportable segments.
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