Honeywell 2012 Annual Report Download - page 81

In 2012, we recognized repositioning charges totaling $119 million including severance costs of
$91 million related to workforce reductions of 2,204 manufacturing and administrative positions across
all of our segments. The workforce reductions were primarily related to the planned shutdown of a
manufacturing facility in our Transportation Systems segment, the exit from a product line in our
Performance Materials and Technologies segment, and cost savings actions taken in connection with
our productivity and ongoing functional transformation initiatives. The repositioning charge also
included asset impairments of $12 million principally related to manufacturing plant and equipment
associated with the exit of a product line in our Performance Materials and Technologies segment. The
repositioning charge also included exit costs of $16 million principally related to closure obligations
associated with the planned shutdown of a manufacturing facility in our Transportation Systems
segment and exit from a product line in our Performance Materials and Technologies segment. Also,
$66 million of previously established accruals primarily for severance at our Automation and Control
Solutions, Aerospace and Performance Materials and Technologies segments were returned to income
in 2012 due primarily to fewer employee severance actions caused by higher attrition than originally
planned associated with prior severance programs and changes in the scope of previously announced
repositioning actions.
In 2011, we recognized repositioning charges totaling $380 million including severance costs of
$246 million related to workforce reductions of 3,188 manufacturing and administrative positions across
all of our segments. The workforce reductions were primarily related to the planned shutdown of a
manufacturing facility in our Transportation Systems segment, cost savings actions taken in connection
with our ongoing functional transformation and productivity initiatives, factory transitions in connection
with acquisition-related synergies in our Automation and Control Solutions and Aerospace segments,
the exit from and/or rationalization of certain product lines and markets in our Performance Materials
and Technologies and Automation and Control Solutions segments, the consolidation of repair facilities
in our Aerospace segment, and factory consolidations and/or rationalizations and organizational
realignments of businesses in our Automation and Control Solutions segment. The repositioning
charges included asset impairments of $86 million principally related to the write-off of certain
intangible assets in our Automation and Control Solutions segment due to a change in branding
strategy and manufacturing plant and equipment associated with the planned shutdown of a
manufacturing facility and the exit of a product line and a factory transition as discussed above. The
repositioning charges also included exit costs of $48 million principally for costs to terminate contracts
related to the exit of a market and product line and a factory transition as discussed above. Exit costs
also included closure obligations associated with the planned shutdown of a manufacturing facility and
exit of a product line also as discussed above. Also, $26 million of previously established accruals,
primarily for severance at our Aerospace and Automation and Control Solutions segments, were
returned to income in 2011 due principally to fewer employee separations than originally planned
associated with prior severance programs.
In 2010, we recognized repositioning charges totaling $179 million including severance costs of
$144 million related to workforce reductions of 2,781 manufacturing and administrative positions
primarily in our Automation and Control Solutions, Aerospace and Transportation Systems segments.
The workforce reductions were primarily related to the planned shutdown of certain manufacturing
facilities in our Automation and Control Solutions and Transportation Systems segments, cost savings
actions taken in connection with our ongoing functional transformation and productivity initiatives,
factory transitions in our Aerospace, Automation and Control Solutions and Performance Materials and
Technologies segments to more cost-effective locations, achieving acquisition-related synergies in our
Automation and Control Solutions segment, and the exit and/or rationalization of certain product lines
in our Performance Materials and Technologies segment. The repositioning charge also included asset
impairments of $21 million principally related to manufacturing plant and equipment associated with the
exit and/or rationalization of certain product lines and in facilities scheduled to close. Also, $30 million
of previously established accruals, primarily for severance at our Automation and Control Solutions,
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HONEYWELL INTERNATIONAL INC.
NOTES TO FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)