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REPOSITIONING AND OTHER (GAINS) CHARGES
 9 Months Ended
Sep. 30, 2025
Restructuring and Related Activities [Abstract]  
REPOSITIONING AND OTHER (GAINS) CHARGES REPOSITIONING AND OTHER (GAINS) CHARGES
A summary of net repositioning and other (gains) charges follows:
Three Months Ended September 30,Nine Months Ended September 30,
 2025202420252024
Severance$40 $38 $67 $91 
Asset impairments2 3 4 5 
Exit costs16 15 44 48 
Reserve adjustments(11)(28)(49)(55)
Total net repositioning charges47 28 66 89 
Asbestos-related charges, net of insurance and reimbursements169 18 210 54 
Probable and reasonably estimable environmental liabilities, net of reimbursements219 6 243 29 
Gain on Resideo indemnification and reimbursement agreement termination1
(802)— (802)— 
Other charges— — — 17 
Total net repositioning and other (gains) charges$(367)$52 $(283)$189 
1
Refer to Note 15 Commitments and Contingencies for further discussion of the gain related to the Resideo indemnification and reimbursement agreement termination.
The following table summarizes the pre-tax distribution of total net repositioning and other (gains) charges by classification in the Consolidated Statement of Operations:
 Three Months Ended September 30,Nine Months Ended September 30,
 2025202420252024
Cost of products and services sold$395 $23 $462 $109 
Selling, general and administrative expenses40 29 57 63 
Other (income) expense(802)— (802)17 
Total net repositioning and other (gains) charges$(367)$52 $(283)$189 
The following table summarizes the pre-tax amount of total net repositioning and other (gains) charges by reportable business segment. These amounts are excluded from segment profit as described in Note 18 Segment Financial Data:
Three Months Ended September 30,Nine Months Ended September 30,
 2025202420252024
Aerospace Technologies$1 $(7)$(5)$1 
Industrial Automation21 21 31 49 
Building Automation5 1 17 1 
Energy and Sustainability Solutions5 1 6 20 
Corporate and All Other(399)36 (332)118 
Total net repositioning and other (gains) charges$(367)$52 $(283)$189 
NET REPOSITIONING CHARGES
In the three months ended September 30, 2025, the Company recognized gross repositioning charges totaling $58 million, including severance costs of $40 million related to workforce reductions of 1,055 manufacturing and administrative positions primarily in the Company's Industrial Automation and Building Automation reportable business segments and Corporate function. The workforce reductions related to productivity and ongoing functional transformation initiatives. The repositioning charges included asset impairments of $2 million related to the write-down of certain assets within the Company's Industrial Automation reportable business segment. The repositioning charges also included exit costs of $16 million related to current period costs incurred for closure obligations associated with site transitions primarily in the Company's Industrial Automation reportable business segment and Corporate function. Also, $11 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 three months ended September 30, 2024, the Company recognized gross repositioning charges totaling $56 million, including severance costs of $38 million related to workforce reductions of 727 manufacturing and administrative positions primarily in the Company's Industrial Automation and Aerospace Technologies reportable business segments. The workforce reductions related to productivity and ongoing functional transformation initiatives. The repositioning charges included asset impairments of $3 million related to the write-down of certain assets within the Company's Industrial Automation reportable business segment. The repositioning charges also included exit costs of $15 million related to current period costs incurred for closure obligations associated with site transitions primarily in the Company's Industrial Automation reportable business segment and corporate function. Also, $28 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, 2025, the Company recognized gross repositioning charges totaling $115 million, including severance costs of $67 million related to workforce reductions of 1,917 manufacturing and administrative positions primarily in the Company's Industrial Automation and Building Automation reportable business segments and corporate function. The workforce reductions related to productivity and ongoing functional transformation initiatives. The repositioning charges also included asset impairments of $4 million for the write-down of certain assets within the Company's Industrial Automation reportable business segment and corporate function. The repositioning charges also included exit costs of $44 million primarily related to current period costs incurred for closure obligations associated with site transitions primarily in the Company's Industrial Automation and Building Automation reportable business segments and corporate function. Also, $49 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, 2024, the Company recognized gross repositioning charges totaling $144 million, including severance costs of $91 million related to workforce reductions of 2,734 manufacturing and administrative positions primarily in the Company's Industrial Automation and Aerospace Technologies reportable business segments and corporate function. The workforce reductions related to productivity and ongoing functional transformation initiatives. The repositioning charges included asset impairments of $5 million related to the write-down of certain assets within the Company's Industrial Automation reportable business segment. The repositioning charges also included exit costs of $48 million related to current period costs incurred for closure obligations associated with site transitions primarily in the Company's Industrial Automation reportable business segment and corporate function. Also, $55 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 repositioning reserves, excluding amounts included in Liabilities held for sale in the Consolidated Balance Sheet:
Severance
Costs		Asset
Impairments		Exit
Costs		Total
Balance at December 31, 2024
$178 $— $7 $185 
Charges67 4 44 115 
Usage—cash(68)— (49)(117)
Usage—noncash— (4)— (4)
Foreign currency translation2 — — 2 
Adjustments(41)— — (41)
Balance at September 30, 2025
$138 $— $2 $140 
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, 2025, and 2024, were $44 million and $41 million, respectively.
OTHER CHARGES
During the nine months ended September 30, 2024, the Company recognized Other charges of $17 million related to the settlement of a contractual dispute with a Russian entity associated with the Company's suspension and wind down activities in Russia. The charges were recorded in Other (income) expense in the Consolidated Statement of Operations.
Given the uncertainty inherent in the Company's remaining obligations related to contracts with Russian counterparties, the Company does not believe it is possible to develop estimates of reasonably possible loss in excess of current accruals for these matters (other than as specifically set forth above). Based on available information to date, the Company’s estimate of potential future losses or other contingencies related to suspension and wind down activities, including any guarantee payments or any litigation costs or as otherwise related to the Company's wind down in Russia, could adversely affect the Company's consolidated results of operations in the periods recognized but would not be material with respect to the Company's consolidated financial position. See Note 15 Commitments and Contingencies for a discussion of the recognition and measurement of estimate for contingencies.