Net reduction of other charges previously recognized

[TABLE OF CONTENTS](#i72efc1fa764e42bfa26060268f6277f4_7)HONEYWELL INTERNATIONAL INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Unaudited)(Dollars in tables in millions, except per share amounts)In the three months ended September 30, 2022, the Company recognized gross repositioning charges totaling $68 million, including severance costs of $43 million related to workforce reductions of 1,276 manufacturing and administrative positions primarily in the Company's Safety and Productivity Solutions reportable business segment. The workforce reductions were related to our productivity and ongoing functional transformation initiatives. The repositioning charge included asset impairments of $5 million related to the write-down of certain manufacturing equipment. The repositioning charge also included exit costs of $20 million related to current period costs incurred for closure obligations associated with site transitions in the Company's Safety and Productivity Solutions and Aerospace reportable business segments. In the three months ended September 30, 2021, the Company recognized gross repositioning charges totaling $69 million, including severance costs of $3 million related to workforce reductions of 603 manufacturing and administrative positions mainly in the Company's Safety and Productivity Solutions reportable business segment. The workforce reductions were primarily related to the re-alignment of a product line in the Company's Safety and Productivity Solutions reportable business segment and to our productivity and ongoing functional transformation initiatives. The repositioning charge included asset impairments of $20 million related to the write-down of certain manufacturing equipment. The repositioning charge also included exit costs of $46 million for current period costs incurred for, closure obligations associated with site transitions, and lease obligations for equipment. In the nine months ended September 30, 2022, the Company recognized gross repositioning charges totaling $306 million including asset impairments of $153 million for the write-down of certain manufacturing equipment, primarily related to closing and relocating the production of certain respiratory manufacturing from a U.S.-based facility to a non-U.S. facility in the Company's Safety Productivity and Solutions reportable business segment. The repositioning charge included exit costs of $78 million primarily related to current period exit costs incurred for new and previously approved repositioning projects and closure obligations associated with site transitions in the Company's Performance Materials and Technologies and Aerospace reportable business segments. The repositioning charge also included severance costs of $75 million related to workforce reductions of 2,940 manufacturing and administrative positions across our segments. The workforce reductions related to cost savings actions taken in connection with our productivity and ongoing functional transformation initiatives and to site transitions to more cost-effective locations. Also, $54 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 nine months ended September 30, 2021, the Company recognized gross repositioning charges totaling $280 million including severance costs of $63 million related to workforce reductions of 5,252 manufacturing and administrative positions mainly in the Company's Safety and Productivity Solutions and Aerospace reportable business segments. The workforce reductions were primarily related to the re-alignment of a product line in the Company's Safety and Productivity Solutions reportable business segment, site transitions, mainly in the Company's Aerospace reportable business segment, to more cost-effective locations, and our productivity and ongoing functional transformation initiatives. The repositioning charge included asset impairments of $107 million related to the write-down of certain manufacturing and other equipment. The repositioning charge included exit costs of $110 million for current period costs incurred for closure obligations associated with site transitions, and lease obligations for equipment. Also, $18 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 total repositioning reserves: 

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | SeveranceCosts | AssetImpairments | ExitCosts | Total |
| Balance at December 31, 2021 |  | $ | 289  |  |  | $ | —  |  |  | $ | 122  |  |  | $ | 411  |  |
| Charges |  | 75  |  |  | 153  |  |  | 78  |  |  | 306  |  |
| Usage - cash |  | (120) |  |  | —  |  |  | (86) |  |  | (206) |  |
| Usage - noncash |  | —  |  |  | (145) |  |  | (14) |  |  | (159) |  |
| Foreign currency translation |  | (18) |  |  | —  |  |  | (2) |  |  | (20) |  |
| Adjustments |  | (40) |  |  | (8) |  |  | (6) |  |  | (54) |  |
| Balance at September 30, 2022 |  | $ | 186  |  |  | $ | —  |  |  | $ | 92  |  |  | $ | 278  |  |

Certain repositioning projects will recognize exit costs in future periods when the actual liability is incurred. Such exit costs incurred in the nine months ended September 30, 2022 and 2021, were $46 million and $30 million, respectively.During the three months ended September 30, 2022, the Company recognized a net reduction of Other charges previously recognized of $16 million. The Other charges include costs incurred related to the Wind down of our operations in Russia. The reduction of Other charges primarily relates to a favorable foreign exchange revaluation on an intercompany loan with a Russian affiliate, in addition to the recovery of outstanding accounts receivable previously reserved against, recorded to Other (income) expense and Selling, general and administrative expense on the Consolidated Statement of Operations, respectively. This was partially offset by the recognition of an additional expense for called guarantees recorded to Other (income) expense on the Consolidated Statement of Operations.12 Honeywell International Inc. 
