v3.26.1
REPOSITIONING AND OTHER CHARGES
 6 Months Ended
Jun. 30, 2026
Restructuring and Related Activities [Abstract]  
REPOSITIONING AND OTHER CHARGES REPOSITIONING AND OTHER CHARGES
A summary of net repositioning and other charges follows:
Three Months Ended June 30,Six Months Ended June 30,
 2026202520262025
Severance$7 $3 $43 $27 
Asset impairments49 1 52 2 
Exit costs15 17 26 28 
Reserve adjustments(7)(11)(15)(40)
Total net repositioning charges64 10 106 17 
Asbestos-related charges, net of insurance and reimbursements1 21 2 41 
Probable and reasonably estimable environmental liabilities, net of reimbursements26 8 51 24 
Total net repositioning and other charges
$91 $39 $159 $82 
The following table summarizes the pre-tax distribution of total net repositioning and other charges by classification in the Consolidated Statement of Operations:
 Three Months Ended June 30,Six Months Ended June 30,
 2026202520262025
Cost of products and services sold$80 $30 $128 $65 
Selling, general and administrative expenses11 9 31 17 
Total net repositioning and other charges
$91 $39 $159 $82 
The following table summarizes the pre-tax amount of total net repositioning and other charges by reportable business segment. These amounts are excluded from segment profit as described in Note 18 Segment Financial Data:
Three Months Ended June 30,Six Months Ended June 30,
 2026202520262025
Aerospace Technologies$— $1 $1 $(6)
Building Automation5 1 10 12 
Process Automation and Technology49 (5)65 (10)
Industrial Automation7 9 10 20 
Corporate and All Other30 33 73 66 
Total net repositioning and other charges
$91 $39 $159 $82 
NET REPOSITIONING CHARGES
In the three months ended June 30, 2026, the Company recognized gross repositioning charges totaling $71 million, including severance costs of $7 million related to workforce reductions of 387 manufacturing and administrative positions primarily in the Company’s Process Automation and Technology reportable business segment. These workforce reductions related to productivity and ongoing functional transformation initiatives. The repositioning charges included asset impairments of $50 million related to the write-down of certain assets within the Company’s Process Automation and Technology 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, $9 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 June 30, 2025, the Company recognized gross repositioning charges totaling $21 million, including severance costs of $3 million related to workforce reductions of 149 manufacturing and administrative positions primarily in the Company’s Industrial Automation reportable business segment. These workforce reductions related to productivity and ongoing functional transformation initiatives. The repositioning charges included asset impairments of $1 million related to the write-down of certain assets within the corporate function. The repositioning charges also included exit costs of $17 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 six months ended June 30, 2026, the Company recognized gross repositioning charges totaling $121 million, including severance costs of $43 million related to workforce reductions of 949 manufacturing and administrative positions primarily in the Company’s Process Automation and Technology reportable business segment and corporate function. The workforce reductions related to productivity and ongoing functional transformation initiatives. The repositioning charges also included asset impairments of $52 million for the write-down of certain assets within the Company’s Process Automation and Technology and Industrial Automation reportable business segments. The repositioning charges also included exit costs of $26 million primarily 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, $17 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 six months ended June 30, 2025, the Company recognized gross repositioning charges totaling $57 million, including severance costs of $27 million related to workforce reductions of 862 manufacturing and administrative positions primarily in the Company’s Building Automation and Industrial Automation reportable business segments. 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 and corporate function. The repositioning charges also included exit costs of $28 million 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, $40 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, 2025
$170 $— $2 $172 
Charges43 52 26 121 
Usage—cash(64)— (27)(91)
Usage—noncash— (52)— (52)
Foreign currency translation1 — — 1 
Adjustments(7)— — (7)
Balance at June 30, 2026
$143 $— $1 $144 
Certain repositioning projects will recognize exit costs in future periods when the actual liability is incurred. Such exit costs incurred in the six months ended June 30, 2026 and 2025, were $26 million and $29 million, respectively.