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Note 3. Repositioning and Other Charges
A summary of repositioning and other charges follows:
2013 2012 2011
Years Ended December 31,
Severance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $186 $ 91 $246
Asset impairments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 12 86
Exit costs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 16 48
Reserve adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (30) (66) (26)
Total net repositioning charge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201 53 354
Asbestos related litigation charges, net of insurance . . . . . . . . . . . . . . . . . . . . 181 156 149
Probable and reasonably estimable environmental liabilities . . . . . . . . . . . . . 272 234 240
Other................................................................. 9 — —
Total net repositioning and other charges . . . . . . . . . . . . . . . . . . . . . . . . . . $663 $443 $743
The following table summarizes the pretax distribution of total net repositioning and other charges
by income statement classification:
2013 2012 2011
Years Ended December 31,
Cost of products and services sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $566 $428 $646
Selling, general and administrative expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . 97 15 97
$663 $443 $743
The following table summarizes the pretax impact of total net repositioning and other charges by
segment:
2013 2012 2011
Years Ended December 31,
Aerospace . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 45 $ (5) $ 29
Automation and Control Solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93 18 191
Performance Materials and Technologies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 12 41
Transportation Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 190 197 228
Corporate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 304 221 254
$663 $443 $743
In 2013, we recognized repositioning charges totaling $231 million including severance costs of
$186 million related to workforce reductions of 3,081 manufacturing and administrative positions across
all of our segments. The workforce reductions were primarily related to cost savings actions taken in
connection with our productivity and ongoing functional transformation initiatives, achieving acquisition-
related synergies in our Automation and Control Solutions segment, outsourcing of non-core
components in our Aerospace and Transportation Systems segments, the shutdown of a
manufacturing facility in our Performance Materials and Technologies segment, and factory transitions
in our Automation and Control Solutions segment to more cost-effective locations. The repositioning
charges include asset impairments of $23 million primarily related to manufacturing plant and
equipment associated with the shutdown of a manufacturing facility in our Performance Materials and
Technologies segment. The repositioning charges also includes exit costs of $22 million primarily
related to closure obligations associated with the shutdown of manufacturing facilities and costs for
early termination of lease contracts. Also, $30 million of previously established accruals, primarily for
severance, in our Automation and Control Solutions and Performance Materials and Technologies
segments were returned to income in 2013 due to changes in the scope of previously announced
74
HONEYWELL INTERNATIONAL INC.
NOTES TO FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)