v3.26.1
REPOSITIONING AND OTHER CHARGES
 3 Months Ended
Mar. 31, 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 March 31,
 20262025
Severance$36 $24 
Asset impairments3 1 
Exit costs11 11 
Reserve adjustments(8)(29)
Total net repositioning charges42 7 
Asbestos-related charges, net of insurance and reimbursements1 20 
Probable and reasonably estimable environmental liabilities, net of reimbursements25 16 
Total net repositioning and other charges
$68 $43 
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 March 31,
 20262025
Cost of products and services sold$48 $35 
Selling, general and administrative expenses20 8 
Total net repositioning and other charges
$68 $43 
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 March 31,
 20262025
Aerospace Technologies$1 $(7)
Building Automation5 11 
Process Automation and Technology16 (5)
Industrial Automation3 11 
Corporate and All Other43 33 
Total net repositioning and other charges
$68 $43 
NET REPOSITIONING CHARGES
In the three months ended March 31, 2026, the Company recognized gross repositioning charges totaling $50 million, including severance costs of $36 million related to workforce reductions of 562 manufacturing and administrative positions primarily in the Company's Process Automation and Technology reportable business segment and Corporate function. These 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 $11 million related to current period costs incurred for closure obligations associated with site transitions primarily in the Company's Industrial Automation and Aerospace Technologies reportable business segments and Corporate function. Also, $8 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 March 31, 2025, the Company recognized gross repositioning charges totaling $36 million, including severance costs of $24 million related to workforce reductions of 713 manufacturing and administrative positions primarily in the Company's Building Automation and Industrial Automation reportable business segments. 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 Company's Industrial Automation reportable business segment. The repositioning charges also included exit costs of $11 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, $29 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.
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 
Charges36 3 11 50 
Usage—cash(25)— (12)(37)
Usage—noncash— (3)— (3)
Foreign currency translation1 — — 1 
Adjustments(8)— — (8)
Balance at March 31, 2026
$174 $— $1 $175 
Certain repositioning projects will recognize exit costs in future periods when the actual liability is incurred. Such exit costs incurred in the three months ended March 31, 2026 and 2025, were $11 million and $11 million, respectively.