v3.26.3
Repositioning and Other Charges
 9 Months Ended
Sep. 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 September 30,Nine Months Ended September 30,
2026202520262025
Severance$8 $40 $50 $67 
Asset impairments2 2 53 4 
Exit costs6 16 29 42 
Reserve adjustments(5)(11)(15)(42)
Total net repositioning charges11 47 117 71 
Asbestos-related charges, net of insurance and reimbursements— 169 2 210 
Probable and reasonably estimable environmental liabilities, net of reimbursements6 5 14 5 
Gain on Resideo indemnification and reimbursement agreement termination1
— (802)— (802)
Total net repositioning and other charges
$17 $(581)$133 $(516)
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 charges by classification in the Consolidated Statement of Operations:
Three Months Ended September 30,Nine Months Ended September 30,
2026202520262025
Cost of products and services sold$15 $181 $100 $228 
Selling, general and administrative expenses2 40 33 58 
Other (income) expense— (802)— (802)
Total net repositioning and other charges
$17 $(581)$133 $(516)
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 September 30,Nine Months Ended September 30,
2026202520262025
Building Automation$2 $5 $12 $17 
Process Automation and Technology1 9 66 (1)
Industrial Automation9 17 19 38 
Corporate and All Other5 (612)36 (570)
Total net repositioning and other charges
$17 $(581)$133 $(516)
Net Repositioning Charges
In the three months ended September 30, 2026, the Company recognized gross repositioning charges totaling $16 million, including severance costs of $8 million related to workforce reductions of 38 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 $2 million related to 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 $6 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, $5 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, 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. These 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 nine months ended September 30, 2026, the Company recognized gross repositioning charges totaling $132 million, including severance costs of $50 million related to workforce reductions of 961 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 $53 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 $29 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, $15 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 $113 million, including severance costs of $67 million related to workforce reductions of 1,896 manufacturing and administrative positions primarily in the Company’s Industrial Automation and Building Automation reportable business segments. The workforce reductions related to productivity and ongoing functional transformation initiatives. The repositioning charges included asset impairments of $4 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 $42 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, $42 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
$152 $— $3 $155 
Charges50 53 29 132 
Usage—cash(84)— (31)(115)
Usage—noncash— (53)— (53)
Foreign currency translation1 — — 1 
Adjustments15 — 2 17 
Balance at September 30, 2026
$134 $— $3 $137 
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, 2026 and 2025, were $30 million and $39 million, respectively.