Honeywell 2014 Annual Report Download - page 50

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recognized in 2014). The sale of Friction Materials, which was part of the Transportation Systems
business, is consistent with the Company’s strategic focus on its portfolio of differentiated global
technologies.
Following the closing of the sale, the Company announced the realignment of its Transportation
Systems business segment with its Aerospace business segment. Under the realigned segment
reporting structure, the Company has three business segments: Aerospace, Automation and Control
Solutions and Performance Materials and Technologies. This realignment has no impact on the
Company’s historical consolidated financial position, results of operations or cash flows. The Company
has reported its financial performance based on the inclusion of Transportation Systems in Aerospace
for all periods presented.
Note 3. Repositioning and Other Charges
A summary of repositioning and other charges follows:
2014 2013 2012
Years Ended December 31,
Severance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $156 $186 $ 91
Asset impairments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 23 12
Exit costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 22 16
Reserve adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (38) (30) (66)
Total net repositioning charge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146 201 53
Asbestos related litigation charges, net of insurance . . . . . . . . . . . . . . . . . . . . 182 181 156
Probable and reasonably estimable environmental liabilities . . . . . . . . . . . . . 268 272 234
Other................................................................. 2 9 —
Total net repositioning and other charges . . . . . . . . . . . . . . . . . . . . . . . . . . $598 $663 $443
The following table summarizes the pretax distribution of total net repositioning and other charges
by income statement classification:
2014 2013 2012
Years Ended December 31,
Cost of products and services sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $525 $566 $428
Selling, general and administrative expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . 73 97 15
$598 $663 $443
The following table summarizes the pretax impact of total net repositioning and other charges by
segment:
2014 2013 2012
Years Ended December 31,
Aerospace . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $193 $235 $192
Automation and Control Solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 68 13
Performance Materials and Technologies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 56 17
Corporate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 292 304 221
$598 $663 $443
In 2014, we recognized repositioning charges totaling $184 million including severance costs of
$156 million related to workforce reductions of 2,975 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, factory transitions in
our ACS and Aerospace segments to more cost-effective locations, and site consolidations and
41
HONEYWELL INTERNATIONAL INC.
NOTES TO FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)