DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 27, 2023 | Jun. 30, 2022 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 1-8974 | ||
Entity Registrant Name | Honeywell International Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 22-2640650 | ||
Entity Address, Address Line One | 855 South Mint Street | ||
Entity Address, City or Town | Charlotte, | ||
Entity Address, State or Province | NC | ||
Entity Address, Postal Zip Code | 28202 | ||
City Area Code | 704 | ||
Local Phone Number | 627-6200 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Icfr Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 118 | ||
Entity Common Stock, Shares Outstanding | 668,140,252 | ||
Documents Incorporated by Reference | Part III: Proxy Statement for Annual Meeting of Shareowners to be held May 19, 2023 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Central Index Key | 0000773840 | ||
Common stock, par value | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Common Stock, par value $1 per share* | ||
Trading Symbol | HON | ||
Security Exchange Name | NASDAQ | ||
1.30% Euro notes due 2023 | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 1.300% Senior Notes due 2023 | ||
Trading Symbol | HON 23A | ||
Security Exchange Name | NASDAQ | ||
0.00% Euro notes due 2024 | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 0.000% Senior Notes due 2024 | ||
Trading Symbol | HON 24A | ||
Security Exchange Name | NASDAQ | ||
2.25% Euro notes due 2028 | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 2.250% Senior Notes due 2028 | ||
Trading Symbol | HON 28A | ||
Security Exchange Name | NASDAQ | ||
0.75% Euro notes due 2032 | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 0.750% Senior Notes due 2032 | ||
Trading Symbol | HON 32 | ||
Security Exchange Name | NASDAQ | ||
4.125% Euro notes due 2034 | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 4.125% Senior Notes due 2034 | ||
Trading Symbol | HON 34 | ||
Security Exchange Name | NASDAQ |
AUDIT INFORMATION
AUDIT INFORMATION | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Name | DELOITTE & TOUCHE LLP |
Auditor Firm ID | 34 |
Auditor Location | Charlotte, North Carolina |
CONSOLIDATED STATEMENT OF OPERA
CONSOLIDATED STATEMENT OF OPERATIONS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | |||
Net sales | $ 35,466 | $ 34,392 | $ 32,637 |
Costs, expenses and other | |||
Cost of products and services sold | 23,825 | 23,394 | 22,169 |
Selling, general and administrative expenses | 5,214 | 4,798 | 4,772 |
Other (income) expense | (366) | (1,378) | (675) |
Interest and other financial charges | 414 | 343 | 359 |
Cost, operating and non-operating expenses | 29,087 | 27,157 | 26,625 |
Income before taxes | 6,379 | 7,235 | 6,012 |
Tax expense | 1,412 | 1,625 | 1,147 |
Net income | 4,967 | 5,610 | 4,865 |
Less: Net income attributable to the noncontrolling interest | 1 | 68 | 86 |
Net income attributable to Honeywell | $ 4,966 | $ 5,542 | $ 4,779 |
Earnings per share of common stock - basic (in dollars per share) | $ 7.33 | $ 8.01 | $ 6.79 |
Earnings per share of common stock - assuming dilution (in dollars per share) | $ 7.27 | $ 7.91 | $ 6.72 |
Product | |||
Income Statement [Abstract] | |||
Net sales | $ 25,960 | $ 25,643 | $ 24,737 |
Costs, expenses and other | |||
Cost of products and services sold | 18,263 | 18,344 | 17,638 |
Service | |||
Income Statement [Abstract] | |||
Net sales | 9,506 | 8,749 | 7,900 |
Costs, expenses and other | |||
Cost of products and services sold | $ 5,562 | $ 5,050 | $ 4,531 |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 4,967 | $ 5,610 | $ 4,865 |
Other comprehensive income (loss), net of tax | |||
Foreign exchange translation adjustment | (372) | 302 | (211) |
Actuarial gains (losses) recognized | (452) | 256 | 91 |
Prior service credit recognized | 0 | 7 | 47 |
Prior service credit recognized during year | (64) | (87) | (82) |
Actuarial losses recognized during year | 454 | 5 | 41 |
Foreign exchange translation and other | (171) | 5 | (23) |
Pension and other postretirement benefit adjustments | (233) | 186 | 74 |
Changes in fair value of available for sale investments | (8) | (3) | 4 |
Cash flow hedges recognized in other comprehensive income | 71 | 17 | 10 |
Less: Reclassification adjustment for gains included in net income | 56 | 20 | 54 |
Changes in fair value of cash flow hedges | 15 | (3) | (44) |
Components of other comprehensive income (loss), net of tax | (598) | 482 | (177) |
Comprehensive income | 4,369 | 6,092 | 4,688 |
Less: Comprehensive income (loss) attributable to the noncontrolling interest | (17) | 64 | 89 |
Comprehensive income attributable to Honeywell | $ 4,386 | $ 6,028 | $ 4,599 |
CONSOLIDATED BALANCE SHEET
CONSOLIDATED BALANCE SHEET - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 9,627 | $ 10,959 |
Short-term investments | 483 | 564 |
Accounts receivable, less allowances of $326 and $177, respectively | 7,440 | 6,830 |
Inventories | 5,538 | 5,138 |
Other current assets | 1,894 | 1,881 |
Total current assets | 24,982 | 25,372 |
Investments and long-term receivables | 945 | 1,222 |
Property, plant and equipment—net | 5,471 | 5,562 |
Goodwill | 17,497 | 17,756 |
Other intangible assets—net | 3,222 | 3,613 |
Insurance recoveries for asbestos-related liabilities | 224 | 322 |
Deferred income taxes | 421 | 489 |
Other assets | 9,513 | 10,134 |
Total assets | 62,275 | 64,470 |
Current liabilities: | ||
Accounts payable | 6,329 | 6,484 |
Commercial paper and other short-term borrowings | 2,717 | 3,542 |
Current maturities of long-term debt | 1,730 | 1,803 |
Accrued liabilities | 9,162 | 7,679 |
Total current liabilities | 19,938 | 19,508 |
Long-term debt | 15,123 | 14,254 |
Deferred income taxes | 2,093 | 2,364 |
Postretirement benefit obligations other than pensions | 146 | 208 |
Asbestos-related liabilities | 1,180 | 1,800 |
Other liabilities | 6,469 | 7,087 |
Redeemable noncontrolling interest | 7 | 7 |
SHAREOWNERS’ EQUITY | ||
Capital—common stock issued | 958 | 958 |
Capital - additional paid in capital | 8,564 | 8,141 |
Common stock held in treasury, at cost | (34,443) | (30,462) |
Accumulated other comprehensive income (loss) | (3,475) | (2,895) |
Retained earnings | 45,093 | 42,827 |
Total Honeywell shareowners’ equity | 16,697 | 18,569 |
Noncontrolling interest | 622 | 673 |
Total shareowners’ equity | 17,319 | 19,242 |
Total liabilities, redeemable noncontrolling interest and shareowners’ equity | $ 62,275 | $ 64,470 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | |||
Net income | $ 4,967 | $ 5,610 | $ 4,865 |
Less: Net income attributable to the noncontrolling interest | 1 | 68 | 86 |
Net income attributable to Honeywell | 4,966 | 5,542 | 4,779 |
Adjustments to reconcile net income attributable to Honeywell to net cash provided by operating activities: | |||
Depreciation | 657 | 674 | 644 |
Amortization | 547 | 549 | 358 |
(Gain) loss on sale of non-strategic businesses and assets | (22) | (102) | 3 |
Repositioning and other charges | 1,266 | 569 | 575 |
Net payments for repositioning and other charges | (512) | (692) | (833) |
Pension and other postretirement income | (510) | (1,114) | (798) |
Pension and other postretirement benefit payments | (23) | (43) | (47) |
Stock compensation expense | 188 | 217 | 168 |
Deferred income taxes | (180) | 178 | (175) |
Reimbursement receivables charge | 0 | 0 | 509 |
Other | (358) | (28) | (338) |
Changes in assets and liabilities, net of the effects of acquisitions and divestitures: | |||
Accounts receivable | (739) | (8) | 669 |
Inventories | (440) | (685) | (67) |
Other current assets | 232 | (276) | 191 |
Accounts payable | (155) | 744 | 15 |
Accrued liabilities | 357 | 513 | 555 |
Net cash provided by operating activities | 5,274 | 6,038 | 6,208 |
Cash flows from investing activities: | |||
Expenditures for property, plant and equipment | (766) | (895) | (906) |
Proceeds from disposals of property, plant and equipment | 29 | 27 | 57 |
Increase in investments | (1,211) | (2,373) | (3,236) |
Decrease in investments | 1,255 | 2,525 | 3,508 |
Receipts from Garrett Motion Inc. | 409 | 586 | 0 |
Receipts (payments) from settlements of derivative contracts | 369 | 192 | (149) |
Cash paid for acquisitions, net of cash acquired | (178) | (1,326) | (261) |
Proceeds from sales of businesses, net of fees paid | 0 | 203 | 0 |
Net cash used for investing activities | (93) | (1,061) | (987) |
Cash flows from financing activities: | |||
Proceeds from issuance of commercial paper and other short-term borrowings | 7,661 | 5,194 | 10,474 |
Payments of commercial paper and other short-term borrowings | (8,447) | (5,190) | (10,400) |
Proceeds from issuance of common stock | 320 | 229 | 393 |
Proceeds from issuance of long-term debt | 2,953 | 2,517 | 10,125 |
Payments of long-term debt | (1,850) | (4,917) | (4,308) |
Repurchases of common stock | (4,200) | (3,380) | (3,714) |
Cash dividends paid | (2,719) | (2,626) | (2,592) |
Other | (48) | (81) | (59) |
Net cash used for financing activities | (6,330) | (8,254) | (81) |
Effect of foreign exchange rate changes on cash and cash equivalents | (183) | (39) | 68 |
Net increase (decrease) in cash and cash equivalents | (1,332) | (3,316) | 5,208 |
Cash and cash equivalents at beginning of period | 10,959 | 14,275 | 9,067 |
Cash and cash equivalents at end of period | $ 9,627 | $ 10,959 | $ 14,275 |
CONSOLIDATED STATEMENT OF SHARE
CONSOLIDATED STATEMENT OF SHAREOWNERS EQUITY - USD ($) shares in Millions | Total | Common stock, par value | Additional paid-in capital | Retained earnings | Accumulated other comprehensive income (loss) | Noncontrolling interest | Treasury Stock, Common |
Beginning balance at Dec. 31, 2019 | $ 6,876,000,000 | $ 37,693,000,000 | $ (3,197,000,000) | $ 212,000,000 | $ (23,836,000,000) | ||
Treasury stock, beginning balance (in shares) at Dec. 31, 2019 | (246.5) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Reacquired stock or repurchases of common stock (in shares) | (20.7) | ||||||
Reacquired stock or repurchases of common stock | $ (3,714,000,000) | ||||||
Issued for employee savings and option plans | 6.4 | ||||||
Issued for employee savings and option plans | 248,000,000 | $ 321,000,000 | |||||
Stock-based compensation expense | 168,000,000 | ||||||
Impact of Quantinuum contribution | $ 0 | 0 | |||||
Net income attributable to Honeywell | 4,779,000,000 | 4,779,000,000 | |||||
Dividends on common stock | (2,567,000,000) | ||||||
Acquisitions, divestitures, and other | (6,000,000) | ||||||
Net income attributable to noncontrolling interest | (86,000,000) | 86,000,000 | |||||
Foreign exchange translation adjustment | (211,000,000) | (214,000,000) | 3,000,000 | ||||
Pension and other postretirement benefit adjustments | 74,000,000 | 74,000,000 | |||||
Changes in fair value of available for sale investments | 4,000,000 | ||||||
Changes in fair value of cash flow hedges | (44,000,000) | (44,000,000) | |||||
Dividends paid | (54,000,000) | ||||||
Contributions from noncontrolling interest holders | 0 | ||||||
Treasury stock, ending balance (in shares) at Dec. 31, 2020 | (260.8) | ||||||
Ending balance at Dec. 31, 2020 | $ 17,790,000,000 | $ 958,000,000 | 7,292,000,000 | 39,905,000,000 | (3,377,000,000) | 241,000,000 | $ (27,229,000,000) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cash dividends per share of common stock | $ 3.630 | ||||||
Common stock, par value (in shares) | 957.6 | ||||||
Total shareowners' equity (in shares) | 696.8 | ||||||
Reacquired stock or repurchases of common stock (in shares) | (15.8) | ||||||
Reacquired stock or repurchases of common stock | $ (3,380,000,000) | ||||||
Issued for employee savings and option plans | 3.8 | ||||||
Issued for employee savings and option plans | 184,000,000 | $ 147,000,000 | |||||
Stock-based compensation expense | 217,000,000 | ||||||
Impact of Quantinuum contribution | $ 460,000,000 | 448,000,000 | |||||
Net income attributable to Honeywell | 5,542,000,000 | 5,542,000,000 | |||||
Dividends on common stock | (2,620,000,000) | ||||||
Acquisitions, divestitures, and other | 397,000,000 | ||||||
Net income attributable to noncontrolling interest | (68,000,000) | 68,000,000 | |||||
Foreign exchange translation adjustment | 302,000,000 | 302,000,000 | (4,000,000) | ||||
Pension and other postretirement benefit adjustments | 186,000,000 | 186,000,000 | |||||
Changes in fair value of available for sale investments | (3,000,000) | ||||||
Changes in fair value of cash flow hedges | (3,000,000) | (3,000,000) | |||||
Dividends paid | (33,000,000) | ||||||
Contributions from noncontrolling interest holders | 4,000,000 | ||||||
Treasury stock, ending balance (in shares) at Dec. 31, 2021 | (272.8) | ||||||
Ending balance at Dec. 31, 2021 | $ 19,242,000,000 | $ 958,000,000 | 8,141,000,000 | 42,827,000,000 | (2,895,000,000) | 673,000,000 | $ (30,462,000,000) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cash dividends per share of common stock | $ 3.770 | ||||||
Common stock, par value (in shares) | 957.6 | 957.6 | |||||
Total shareowners' equity (in shares) | 684.8 | ||||||
Reacquired stock or repurchases of common stock (in shares) | (21.9) | ||||||
Reacquired stock or repurchases of common stock | $ (4,200,000,000) | ||||||
Issued for employee savings and option plans | 4.7 | ||||||
Issued for employee savings and option plans | 235,000,000 | $ 219,000,000 | |||||
Stock-based compensation expense | 188,000,000 | ||||||
Impact of Quantinuum contribution | $ 0 | 0 | |||||
Net income attributable to Honeywell | 4,966,000,000 | 4,966,000,000 | |||||
Dividends on common stock | (2,700,000,000) | ||||||
Acquisitions, divestitures, and other | 0 | ||||||
Net income attributable to noncontrolling interest | (1,000,000) | 1,000,000 | |||||
Foreign exchange translation adjustment | (372,000,000) | (354,000,000) | (18,000,000) | ||||
Pension and other postretirement benefit adjustments | (233,000,000) | (233,000,000) | |||||
Changes in fair value of available for sale investments | (8,000,000) | ||||||
Changes in fair value of cash flow hedges | 15,000,000 | 15,000,000 | |||||
Dividends paid | (48,000,000) | ||||||
Contributions from noncontrolling interest holders | 14,000,000 | ||||||
Treasury stock, ending balance (in shares) at Dec. 31, 2022 | (290) | ||||||
Ending balance at Dec. 31, 2022 | $ 17,319,000,000 | $ 958,000,000 | $ 8,564,000,000 | $ 45,093,000,000 | $ (3,475,000,000) | $ 622,000,000 | $ (34,443,000,000) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cash dividends per share of common stock | $ 3.970 | ||||||
Common stock, par value (in shares) | 957.6 | 957.6 | |||||
Total shareowners' equity (in shares) | 667.6 |
Statement of Financial Position
Statement of Financial Position, Classified (Parentheticals) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Allowance for credit loss | $ 326 | $ 177 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ACCOUNTING PRINCIPLES The financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America. The following is a description of Honeywell’s significant accounting policies. PRINCIPLES OF CONSOLIDATION The Consolidated Financial Statements include the accounts of Honeywell International Inc. and all of its subsidiaries and entities in which a controlling interest is maintained. The Company's consolidation policy requires equity investments that the Company exercises significant influence over, but does not control the investee and are not the primary beneficiary of the investee’s activities, to be accounted for using the equity method. Investments through which the Company is not able to exercise significant influence over the investee and which the Company does not have readily determinable fair values are accounted for under the cost method. All intercompany transactions and balances are eliminated in consolidation. RECLASSIFICATIONS Certain prior year amounts have been reclassified to conform to the current year presentation. RECENT ACCOUNTING PRONOUNCEMENTS The Company considers the applicability and impact of all Accounting Standards Updates (ASUs) issued by the Financial Accounting Standards Board (FASB). ASUs not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on the Company's Consolidated Statement of Operations, Balance Sheet and Cash Flows (Consolidated Financial Statements). In September 2022, the FASB issued ASU 2022-04, Liabilities—Supplier Finance Programs (Topic 405): Disclosure of Supplier Finance Program Obligations , to enhance the transparency of supplier finance programs. The new standard requires annual disclosure of the key terms of the program, a description of where in the financial statements amounts outstanding under the program are presented, a rollforward of such amounts, and interim disclosure of amounts outstanding as of the end of each period. The guidance does not affect recognition, measurement, or financial statement presentation of supplier finance programs. The ASU is effective on January 1, 2023, except for the rollforward, which is effective on January 1, 2024. The Company is currently evaluating the impacts of this guidance on the Company’s Consolidated Financial Statements . In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805) : Accounting for Contract Assets and Contract Liabilities from Contracts with Customers , which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers. This ASU should be applied prospectively to acquisitions occurring on or after the effective date of December 15, 2022, and early adoption is permitted. The Company adopted this guidance on January 1, 2022. The adoption of this standard does not have a material impact on the Company’s Consolidated Financial Statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by the transition away from reference rates expected to be discontinued to alternative reference rates. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope , to expand the scope of this guidance to include derivatives. The guidance was effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into on or before December 31, 2022. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 , which extends the period of time entities can utilize the reference rate reform relief guidance under ASU 2020-04 from December 31, 2022, to December 31, 2024. The Company will apply the guidance to impacted transactions during the transition period. The adoption of this standard does not have a material impact on the Company’s Consolidated Financial Statements. RESEARCH AND DEVELOPMENT Research and development costs for projects are expensed as incurred, unless these costs relate to contracts with customers where the Company receives reimbursements. Amounts expensed as incurred for Company-sponsored research and development projects are included in Cost of products and services sold and were $1,478 million, $1,333 million, and $1,334 million for the years ended December 31, 2022, 2021, and 2020, respectively. Costs related to contracts with customers for customer-sponsored research and development projects are included as a contract cost and included in Cost of products and services sold when revenue from such contracts is recognized, consistent with the Company's sales recognition policies. This revenue was $1,336 million, $1,284 million, and $1,200 million for the years ended December 31, 2022, 2021, and 2020, respectively. CASH AND CASH EQUIVALENTS Cash and cash equivalents include cash on hand and highly liquid investments having an original maturity of three months or less. INVENTORIES Inventories are stated at the lower of cost or net realizable value, with cost determined on a first-in, first-out (FIFO) basis. Carrying value adjustments for inventory obsolescence is equal to the difference between the cost and net realizable value. Net realizable value is the estimate selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment are recorded at cost, including any asset retirement obligations, less accumulated depreciation. For financial reporting, the straight-line method of depreciation is used over the estimated useful lives of 10 to 50 years for buildings and improvements an d 3 to 16 years for machinery and equipment. Recognition of the fair value of obligations associated with the retirement of tangible long-lived assets is required when there is a legal obligation to incur such costs. Upon initial recognition of a liability, the cost is capitalized as part of the related long-lived asset and depreciated over the corresponding asset’s useful life. GOODWILL AND INDEFINITE-LIVED INTANGIBLE ASSETS Goodwill and indefinite-lived intangible assets are subject to impairment testing annually as of the first day of the fourth quarter, or if a triggering event occurs or changes in circumstances indicate that the carrying amount may not be fully recoverable. This testing compares carrying values to fair values and, when appropriate, the carrying value of these assets is reduced to fair value, not to exceed the carrying value of goodwill. The Company completed its annual goodwill impairment test as of the first day of the fourth quarter, and determined that there was no impairment as of that date. The Company is not aware of any additional triggering events. Prior to 2022, the Company performed its annual goodwill and intangible asset impairment test as of the last day of the first quarter. In 2022, the Company changed the date of its annual goodwill and intangible asset impairment assessment to the first day of the fourth quarter. The Company believes this change does not represent a material change in method of applying an accounting principle. This change has been applied prospectively as of the date of the change, as retrospective application is deemed impracticable due to the inability to objectively determine the assumptions used in earlier periods without the benefit of hindsight. This voluntary change is preferable under the circumstances as it results in better alignment with the timing of the Company’s forecasting process and reduces the time period between the assessment date and annual financial statements. This change in accounting principle does not delay, accelerate, or avoid an impairment of goodwill. In 2022, due to this change the Company performed annual goodwill and intangible asset impairment tests as of the last day of the first quarter and the first day of the fourth quarter. FINITE-LIVED INTANGIBLE ASSETS Other intangible assets with determinable lives consist of customer lists, technology, patents and trademarks, and other intangibles and are amortized over their estimated useful lives, ranging from 2 to 20 years. CAPITALIZED SOFTWARE The Company capitalizes costs of software developed or obtained for internal use during the application development stage of a project and amortizes those costs using the straight-line method over the expected useful life of the software, not to exceed 7 years. Costs incurred during the preliminary and post-implementation stages are expensed as incurred. Development costs for software held for sale are capitalized once a project has reached the point of technological feasibility. Completed projects are amortized after reaching the point of general availability using the straight-line method based on estimated useful life, not to exceed 7 years. At each balance sheet date, or earlier if an indicator of an impairment exists, we evaluate the recoverability of unamortized capitalized software costs based on estimated future undiscounted revenues net of estimated related costs over the remaining amortization period. Capitalized software held for internal use and held for sale is included in Other assets in the Consolidated Balance Sheet. FOREIGN CURRENCY TRANSLATION Assets and liabilities of subsidiaries operating outside the United States with a functional currency other than U.S. Dollars are translated into U.S. Dollars using year-end exchange rates. Sales, costs, and expenses are translated at the average exchange rates in effect during the year. Foreign currency translation gains and losses are included as a component of Accumulated other comprehensive income (loss). For subsidiaries operating in highly inflationary environments, inventories and property, plant and equipment, including related expenses, are remeasured at the exchange rate in effect on the date the assets were acquired, while monetary assets and liabilities are remeasured at year-end exchange rates. Remeasurement adjustments for these subsidiaries are included in earnings. DERIVATIVE FINANCIAL INSTRUMENTS All derivative financial instruments are recorded on the balance sheet as assets or liabilities and measured at fair value. For derivatives designated as hedges of the fair value of assets or liabilities, the changes in fair values of both the derivatives and the hedged items are recorded in current earnings. For derivatives designated as cash flow hedges, the changes in fair value of the derivatives are recorded in Accumulated other comprehensive income (loss) and subsequently recognized in earnings when the hedged items impact earnings. Derivative financial instruments designated as hedges must be designated and effective as a hedge of the identified risk exposure at the inception of the contract. Changes in fair value of the derivative contract must be highly correlated with changes in fair value of the underlying hedged item at inception and over the life of the hedge contract. Cash flows of such derivative financial instruments are classified consistent with the underlying hedged item. The Company elected to exclude the time value of the derivatives (i.e., the forward points) from the assessment of hedge effectiveness and recognize the initial value of the excluded component in earnings using the amortization approach. For derivative instruments that are designated and qualify as a net investment hedge, the gain or loss is reported as a component of Other comprehensive income (loss) and recorded in Accumulated other comprehensive income (loss). The gain or loss will be subsequently reclassified into net earnings when the hedged net investment is either sold or substantially liquidated. LEASES At the inception of a contract, the Company assesses whether the contract is, or contains, a lease. The assessment is based on (i) whether the contract involves the use of a distinct identified asset, (ii) whether the Company obtains the right to substantially all the economic benefit from the use of the asset throughout the period, and (iii) whether the Company has the right to direct the use of the asset. All significant lease arrangements are generally recognized at lease commencement. Operating lease right-of-use (ROU) assets and lease liabilities are recognized at commencement. An ROU asset and corresponding lease liability are not recorded for leases with an initial term of 12 months or less (short-term leases), and we recognize lease expense for these leases as incurred over the lease term. ROU assets represent the Company's right to use an underlying asset during the reasonably certain lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. The Company's lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Lease payments may be fixed or variable, however, only fixed payments or in-substance fixed payments are included in determining the lease liability. Variable lease payments are recognized in operating expenses in the period in which the obligation for those payments are incurred. The operating lease ROU asset also includes any lease payments related to initial direct cost and prepayments and excludes lease incentives. Lease expense is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, which are generally accounted for separately. The Company primarily uses its incremental borrowing rate, which is based on the information available at the lease commencement date, in determining the present value of the lease payments. In determining the borrowing rate, the Company considers the lease term, secured incremental borrowing rate, and for leases denominated in a currency different than U.S. dollar, the collateralized borrowing rate in the foreign currency using the U.S. dollar and foreign currency swap spread, when available. PENSION BENEFITS The Company presents net periodic pension costs by disaggregating the service cost component of such costs and reports those costs in the same line item or items in the Consolidated Statement of Operations as other compensation costs arising from services rendered by the pertinent employees during the period. The other non-service components of such costs are required to be presented separately from the service cost component. The Company records the service cost component of Pension ongoing (income) expense in Cost of products and services sold and Selling, general and administrative expenses. The remaining components of costs within Pension ongoing (income) expense, primarily interest costs and assumed return on plan assets, are recorded in Other (income) expense. The Company recognizes net actuarial gains or losses in excess of 10% of the greater of the fair value of plan assets or the plan's projected benefit obligation (the corridor) annually in the fourth quarter each year (MTM Adjustment). The MTM Adjustment is also reported in Other (income) expense. SALES RECOGNITION Product and service sales are recognized when or as the Company transfers control of the promised products or services to its customers. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring goods or providing services. Service sales, principally representing repair, maintenance, and engineering activities, are recognized over the contractual period or as services are rendered. Sales under long-term contracts with performance obligations satisfied over time are recognized using either an input or output method. The Company recognizes revenue over time as the Company performs on these contracts because of the continuous transfer of control to the customer. With control transferring over time, revenue is recognized based on the extent of progress towards completion of the performance obligation. The Company generally uses the cost-to-cost input method of progress for contracts because it best depicts the transfer of control to the customer that occurs as the Company incurs costs. Under the cost-to-cost input method, the extent of progress towards completion is measured based on the proportion of costs incurred to date to the total estimated costs at completion of the performance obligation. The Company reviews its cost estimates on significant contracts on a periodic basis, or when circumstances change and warrant a modification to a previous estimate. Cost estimates are largely based on negotiated or estimated purchase contract terms, historical performance trends, and other economic projections. Significant factors that influence these estimates include inflationary trends, technical and schedule risk, internal and subcontractor performance trends, business volume assumptions, asset utilization, and anticipated labor agreements. Provisions for anticipated losses on long-term contracts are recorded in full when such losses become evident, to the extent required. The customer funding for costs incurred for nonrecurring engineering and development activities of the Company's products under agreements with commercial customers is deferred and subsequently recognized as revenue as products are delivered to the customers. Additionally, expenses incurred, up to the customer agreed funded amount, are deferred as an asset and recognized as cost of sales when products are delivered to the customer. The deferred customer funding and costs result in recognition of deferred costs (asset) and deferred revenue (liability) within Other assets and Accrued liabilities, respectively, in the Consolidated Balance Sheet. Deferred contract fulfillment costs were approximately $1.3 billion as of December 31, 2022, and 2021. The amounts recognized as Cost of products and services sold were approximately $0.2 billion for the year ended December 31, 2022, and $0.1 billion for 2021 and 2020. Revenues for the Company's mechanical service programs are recognized as performance obligations that are satisfied over time, with recognition reflecting a series of distinct services using the output method. The terms of a contract or the historical business practice can give rise to variable consideration due to, but not limited to, cash-based incentives, rebates, performance awards, or credits. The Company estimates variable consideration at the most likely amount the Company will receive from customers. The Company includes estimated amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized for such transaction will not occur, or when the uncertainty associated with the variable consideration is resolved. The Company's estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of the Company's anticipated performance and all information (historical, current and forecasted) that is reasonably available to the Company. STOCK-BASED COMPENSATION PLANS The principal awards issued under the Company's stock-based compensation plans, which are described in Note 15 Stock-Based Compensation Plans, are non-qualified stock options and restricted stock units. The cost for such awards is measured at the grant date based on the fair value of the award. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods (generally the vesting period of the equity award) and is included in Selling, general and administrative expenses. Forfeitures are estimated at the time of grant to recognize expense for those awards that are expected to vest and are based on the Company's historical forfeiture rates. INCOME TAXES Significant judgment is required in evaluating tax positions. The Company establishes reserves for income taxes when, despite the belief that tax positions are fully supportable, there remain certain positions that do not meet the minimum recognition threshold. The approach for evaluating certain and uncertain tax positions is defined by the authoritative guidance which determines when a tax position is more likely than not to be sustained upon examination by the applicable taxing authority. In the normal course of business, the Company and its subsidiaries are examined by various federal, state, and foreign tax authorities. The Company regularly assesses the potential outcomes of these examinations and any future examinations for the current or prior years in determining the adequacy of the Company's provision for income taxes. The Company continually assesses the likelihood and amount of potential adjustments and adjust the income tax provision, the current tax liability, and deferred taxes in the period in which the facts that give rise to a change in estimate become known. For additional information, see Note 5 Income Taxes. EARNINGS PER SHARE Basic earnings per share is based on the weighted average number of common shares outstanding. Diluted earnings per share is based on the weighted average number of common shares outstanding and all dilutive potential common shares outstanding. ENVIRONMENTAL The Company accrues costs related to environmental matters when it is probable that it has incurred a liability related to a contaminated site and the amount can be reasonably estimated. For additional information, see Note 19 Commitments and Contingencies. ASBESTOS-RELATED LIABILITIES AND INSURANCE RECOVERIES The Company recognizes a liability for any asbestos-related contingency that is probable of occurrence and reasonably estimable. In connection with the recognition of liabilities for asbestos-related matters, the Company records asbestos-related insurance recoveries that are deemed probable. For additional information, see Note 19 Commitments and Contingencies. REIMBURSEMENT RECEIVABLES In conjunction with the Resideo Technologies, Inc. (Resideo) spin-off, the Company entered into a reimbursement agreement under which Honeywell receives cash payments as reimbursement primarily related to net spending for environmental matters at certain sites as defined in the reimbursement agreement. Accordingly, the Company recorded receivables based on estimates of the underlying reimbursable Honeywell environmental spend, and the Company monitors the recoverability of such receivables, which are subject to the terms of applicable credit agreements and general ability to pay. |
ACQUISITIONS AND DIVESTITURES
ACQUISITIONS AND DIVESTITURES | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITIONS AND DIVESTITURES | ACQUISITIONS AND DIVESTITURES ACQUISITIONS On January 18, 2022, the Company acquired 100% of the issued and outstanding shares of US Digital Designs, Inc., a leading provider of technologies for first responders, for total consideration of $186 million. The business is included within the Honeywell Building Technologies reportable business segment. The Company completed a preliminary evaluation of the fair value of all the assets and liabilities acquired with US Digital Designs, Inc., which will be finalized during the first quarter of 2023. Management recorded intangible assets of $53 million and allocated $130 million to goodwill, which is deductible for tax purposes. On November 29, 2021, Honeywell Quantum Solutions, a wholly-owned subsidiary of Honeywell, and Cambridge Quantum Computing, a leading developer of quantum computing and quantum software, combined to form Quantinuum. Prior to closing the transaction, Honeywell held a 4.2% ownership interest in Cambridge Quantum Computing. At closing of the business combination, Honeywell contributed an additional $270 million of cash and is the controlling majority-owner of Quantinuum, with an overall 54% ownership in the business. Quantinuum is well positioned to lead the quantum computing industry by offering advanced, fully integrated hardware and software solutions at an unprecedented pace, scale, and level of performance to large high-growth markets worldwide. Quantinuum supports customer needs for improved computation in cyber security, drug discovery and delivery, material science, finance, and optimization across all major industrial markets. The business is included within Corporate and All Other, which is not a reportable business segment. The combination was accounted for under the acquisition method of accounting; as such, assets and liabilities of Quantinuum are consolidated by Honeywell and included in the Consolidated Balance Sheet. Upon close of the transaction, Honeywell recorded a non-cash adjustment of $460 million in Additional paid-in capital in the Consolidated Balance Sheet as the contribution of ownership interest in Honeywell Quantum Solutions and Cambridge Quantum Computing for the formation of Quantinuum. In addition, Honeywell recognized a gain of $22 million related to the fair value remeasurement of Honeywell's existing 4.2% ownership interest in Cambridge Quantum Computing, which was recorded in Other (income) expense in the Consolidated Statement of Operations. At close of the transaction, the fair value of Cambridge Quantum Computing's noncontrolling interest in Quantinuum was $419 million. In December 2021, Cambridge Quantum Computing contributed cash of $12 million to Quantinuum, increasing their noncontrolling interest and decreasing Honeywell's additional paid-in capital. In the fourth quarter of 2022, the Company completed its evaluation of the fair value of all the assets and liabilities acquired. Management recorded intangible assets of $90 million and allocated $945 million to goodwill, which is non-deductible for tax purposes. On February 12, 2021, the Company acquired 100% of the shares outstanding of Sparta Systems, a leading provider of enterprise quality management software for the life sciences industry, for $1,303 million. Sparta Systems is expected to further strengthen the Company's leadership in industrial automation, digital transformation solutions, and enterprise performance management software. The business is included within the Performance Materials and Technologies reportable business segment. The assets and liabilities acquired with Sparta Systems are included in the Consolidated Balance Sheet as of December 31, 2021, including $383 million of intangible assets and $1,011 million allocated to goodwill, which is non-deductible for tax purposes. During 2020, the Company acquired businesses for an aggregate cost (net of cash and debt assumed) of $261 million, which included the October 2020 acquisition of Rocky Research and the December 2020 acquisition of Sine Group. Rocky Research is a technology leader specializing in thermal, energy, and power management solutions and is included within the Aerospace reportable business segment. Sine Group offers a Software-as-a-Service (SaaS) that handles visitor management, workplace, and supply chain solutions and is included in the Honeywell Building Technologies reportable business segment. The acquisitions of Rocky Research and Sine Group included approximately $167 million allocated to goodwill, which is non-deductible for tax purposes. DIVESTITURES In conjunction with the wind down of our businesses and operations in Russia (the Wind down), during 2022 the Company completed the sale of three entities domiciled in Russia in exchange for gross cash consideration of less than $1 million. The Company recognized a pre-tax gain of $22 million, which was recorded in Other (income) expense in the Consolidated Statement of Operations, driven by favorable foreign currency cumulative translation adjustment positions in the entities at the time of sale. The financial results of the entities were previously included in the Performance Materials and Technologies, Honeywell Building Technologies, and Safety and Productivity Solutions reportable business segments. On March 15, 2021, the Company completed the sale of its retail footwear business in exchange for gross cash consideration of $230 million. The Company recognized a pre-tax gain of $95 million for the twelve months ended December 31, 2021, which was recorded in Other (income) expense. The retail footwear business was previously included in the Safety and Productivity Solutions reportable business segment. During 2020, there were no significant divestitures that closed individually or in the aggregate. |
REVENUE RECOGNITION AND CONTRAC
REVENUE RECOGNITION AND CONTRACTS WITH CUSTOMERS | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE RECOGNITION AND CONTRACTS WITH CUSTOMERS | REVENUE RECOGNITION AND CONTRACTS WITH CUSTOMERS The Company has a comprehensive offering of products and services, including software and technologies, that are sold to a variety of customers in multiple end markets. See the following disaggregated revenue table and related discussions by reportable business segment for details. Years Ended December 31, 2022 2021 2020 Aerospace Commercial Aviation Original Equipment $ 2,089 $ 1,720 $ 1,940 Commercial Aviation Aftermarket 5,108 4,155 3,812 Defense and Space 4,630 5,151 5,792 11,827 11,026 11,544 Honeywell Building Technologies Products 3,638 3,173 2,967 Building Solutions 2,362 2,366 2,222 6,000 5,539 5,189 Performance Materials and Technologies UOP 2,404 2,348 2,177 Process Solutions 4,731 4,611 4,590 Advanced Materials 3,592 3,054 2,656 10,727 10,013 9,423 Safety and Productivity Solutions Sensing and Safety Technologies 2,952 3,260 3,246 Productivity Solutions and Services 1,619 1,614 1,273 Warehouse and Workflow Solutions 2,336 2,940 1,962 6,907 7,814 6,481 Corporate and All Other 5 — — Net sales $ 35,466 $ 34,392 $ 32,637 In July 2022, the Company realigned certain business units within the Safety and Productivity Solutions reportable business segment. The Safety and Retail business unit, which included our gas detection and safety business, combined with the Advanced Sensing Technologies business unit to form the Sensing and Safety Technologies business unit. The Company recast historical periods to reflect this realignment. Aerospace – A global supplier of products, software, and services for aircrafts that it sells to original equipment manufacturers (OEM) and other customers in a variety of end markets including: air transport, regional, business and general aviation aircraft, airlines, aircraft operators, and defense and space contractors. Aerospace products and services include auxiliary power units, propulsion engines, environmental control systems, integrated avionics, wireless connectivity services, electric power systems, engine controls, flight safety, communications, navigation hardware, data and software applications, radar and surveillance systems, aircraft lighting, management and technical services, advanced systems and instruments, satellite and space components, aircraft wheels and brakes, repair and overhaul services, and thermal systems. Aerospace also provides spare parts, repair, overhaul, and maintenance services (principally to aircraft operators) for the aftermarket. Honeywell Forge solutions are leveraged by the Company's customers as tools to turn data into predictive maintenance and predictive analytics to enable better fleet management and make flight operations more efficient. Honeywell Building Technologies – A global provider of products, software, solutions, and technologies that enable building owners and occupants to ensure their facilities are safe, energy efficient, sustainable, and productive. Honeywell Building Technologies products and services include advanced software applications for building control and optimization; sensors, switches, control systems, and instruments for energy management; access control; video surveillance; fire products; and installation, maintenance, and upgrades of systems. Honeywell Forge solutions enable the Company's customers to digitally manage buildings, connecting data from different assets to enable smart maintenance, improve building performance, and even protect from incoming security threats. Performance Materials and Technologies – A global provider in developing and manufacturing high-quality performance chemicals and materials, process technologies, and automation solutions. The reportable business segment is comprised of Process Solutions, UOP, and Advanced Materials. Process Solutions provides automation control, instrumentation, advanced software, and related services for the oil and gas, refining, pulp and paper, industrial power generation, chemicals and petrochemicals, biofuels, life sciences, and metals, minerals, and mining industries. Through its smart energy products, Process Solutions enables utilities and distribution companies to deploy advanced capabilities to improve operations, reliability, and environmental sustainability. UOP provides process technology, products, including catalysts and adsorbents, equipment, and consulting services that enable customers to efficiently produce gasoline, diesel, jet fuel, petrochemicals, and renewable fuels for the petroleum refining, gas processing, petrochemical, and other industries. Advanced Materials manufactures a wide variety of high-performance products, including materials used to manufacture end products such as bullet-resistant armor, nylon, computer chips, and pharmaceutical packaging, and provides reduced and low global warming potential materials based on hydrofluoro-olefin technology. In the industrial environment, Honeywell Forge solutions enable integration and connectivity to provide a holistic view of operations and turn data into clear actions to maximize productivity and efficiency. Honeywell Forge's cybersecurity capabilities help identify risks and act on cyber-related incidents, together enabling improved operations and protecting processes, people, and assets. Safety and Productivity Solutions – A global provider of products and software that improve productivity, workplace safety, and asset performance to customers around the globe. Sensing and Safety Technologies products include personal protective equipment (PPE), apparel, gear, and footwear; gas detection technology; custom-engineered sensors, switches, and controls for sensing and productivity solutions; and cloud-based notification and emergency messaging. Productivity Solutions and Services products and services include mobile devices and software for computing, data collection, and thermal printing; and software-based data and asset management productivity solutions. Warehouse and Workflow Solutions products and services include system design and simulation, automation solutions, performance optimization software, and lifecycle services to enable accuracy, productivity, and predictability of warehouse operations. Honeywell Forge solutions digitally automate processes to improve efficiency while reducing downtime and safety costs. Corporate and All Other – Corporate and All Other includes revenue from Honeywell's majority-owned investment in Quantinuum. Through Quantinuum, Honeywell provides a wide range of service offerings of fully integrated quantum computing hardware and software solutions. For a summary by disaggregated product and services sales for each reportable business segment, refer to Note 22 Segment Financial Data. The Company recognizes revenue arising from performance obligations outlined in contracts with its customers that are satisfied at a point in time and over time. The disaggregation of the Company's revenue based off timing of recognition is as follows: Years Ended December 31, 2022 2021 2020 Products, transferred point in time 59 % 58 % 61 % Products, transferred over time 14 17 15 Net product sales 73 75 76 Services, transferred point in time 8 8 8 Services, transferred over time 19 17 16 Net service sales 27 25 24 Net sales 100 % 100 % 100 % CONTRACT BALANCES The Company records progress on satisfying performance obligations under contracts with customers and the related billings and cash collections are recorded in the Consolidated Balance Sheet in Accounts receivable—net and Other assets (unbilled receivables (contract assets) and billed receivables) and Accrued liabilities and Other liabilities (customer advances and deposits (contract liabilities)). Unbilled receivables (contract assets) arise when the timing of cash collected from customers differs from the timing of revenue recognition, such as when contract provisions require specific milestones to be met before a customer can be billed. Contract assets are recognized when the revenue associated with the contract is recognized prior to billing and derecognized when billed in accordance with the terms of the contract. Contract liabilities are recorded when customers remit contractual cash payments in advance of us satisfying performance obligations under contractual arrangements, including those with performance obligations to be satisfied over a period of time. Contract liabilities are derecognized when revenue is recorded, either when a milestone is met triggering the contractual right to bill or when the performance obligation is satisfied. Contract balances are classified as assets or liabilities on a contract-by-contract basis at the end of each reporting period. The following table summarizes the Company's contract assets and liabilities balances: 2022 2021 Contract assets—January 1 $ 2,060 $ 1,618 Contract assets—December 31 2,294 2,060 Change in contract assets—increase (decrease) $ 234 $ 442 Contract liabilities—January 1 $ (4,290) $ (4,033) Contract liabilities—December 31 (4,583) (4,290) Change in contract liabilities—(increase) decrease $ (293) $ (257) Net change $ (59) $ 185 The net change in 2022 and 2021 was primarily driven by the receipt of advance payments from customers exceeding recognition of revenue as performance obligations were satisfied prior to billing. For the years ended December 31, 2022, and 2021, the Company recognized revenue of $1,838 million and $1,925 million, respectively, that was previously included in the beginning balance of contract liabilities. Contract assets include $2,265 million and $2,035 million of unbilled balances under long-term contracts as of December 31, 2022, and 2021, respectively. These amounts are billed in accordance with the terms of customer contracts to which they relate. When contracts are modified to account for changes in contract specifications and requirements, the Company considers whether the modification either creates new or changes the existing enforceable rights and obligations. Contract modifications for goods or services and not distinct from the existing contract, due to the significant integration with the original good or service provided, are accounted for as if they were part of that existing contract. The effect of a contract modification on the transaction price and the Company's measure of progress for the performance obligation to which it relates, is recognized as an adjustment to revenue (either as an increase in or a reduction of revenue) on a cumulative catch-up basis. When the modifications include additional performance obligations that are distinct and at relative stand-alone selling price, they are accounted for as a new contract and performance obligation, which are recognized prospectively. PERFORMANCE OBLIGATIONS A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is defined as the unit of account. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. When the Company's contracts with customers require highly complex integration or manufacturing services that are not separately identifiable from other promises in the contracts and, therefore, not distinct, then the entire contract is accounted for as a single performance obligation. In situations when the Company's contracts includes distinct goods or services that are substantially the same and have the same pattern of transfer to the customer over time, they are recognized as a series of distinct goods or services. For any contracts with multiple performance obligations, the Company allocates the contract’s transaction price to each performance obligation based on the estimated relative stand-alone selling price of each distinct good or service in the contract. For product sales, each product sold to a customer typically represents a distinct performance obligation. In such cases, the observable stand-alone sales are used to determine the stand-alone selling price. Performance obligations are satisfied as of a point in time or over time. Performance obligations are supported by contracts with customers, providing a framework for the nature of the distinct goods, services or bundle of goods and services. The timing of satisfying the performance obligation is typically indicated by the terms of the contract. The following table outlines the Company's remaining performance obligations disaggregated by reportable business segment: December 31, 2022 Aerospace $ 11,607 Honeywell Building Technologies 6,991 Performance Materials and Technologies 8,111 Safety and Productivity Solutions 2,844 Corporate and All Other (1) 5 Total performance obligations (2) $ 29,558 (1) The remaining performance obligations within Corporate and All Other relate to the Quantinuum business. (2) Effective March 31, 2022, performance obligations excludes contracts with customers related to Russia as collectability is not reasonably assured. Performance obligations recognized as of December 31, 2022, will be satisfied over the course of future periods. The Company's disclosure of the timing for satisfying the performance obligation is based on the requirements of contracts with customers. However, from time to time, these contracts may be subject to modifications, impacting the timing of satisfying the performance obligations. Performance obligations expected to be satisfied within one year and greater than one year are 62% and 38%, respectively. The timing of satisfaction of the Company's performance obligations does not significantly vary from the typical timing of payment. Typical payment terms of the Company's fixed-price over time contracts include progress payments based on specified events or milestones, or based on project progress. For some contracts the Company may be entitled to receive an advance payment. The Company applied the practical expedient for certain revenue streams to exclude the value of remaining performance obligations for (i) contracts with an original expected term of one year or less or (ii) contracts for which the Company recognizes revenue in proportion to the amount the Company has the right to invoice for services performed. |
REPOSITIONING AND OTHER CHARGES
REPOSITIONING AND OTHER CHARGES | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
REPOSITIONING AND OTHER CHARGES | REPOSITIONING AND OTHER CHARGES A summary of net repositioning and other charges follows: Years Ended December 31, 2022 2021 2020 Severance $ 122 $ 80 $ 475 Asset impairments 176 117 21 Exit costs 122 134 69 Reserve adjustments (56) (13) (47) Total net repositioning charges 364 318 518 Asbestos-related charges, net of insurance and reimbursements 532 129 50 Probable and reasonably estimable environmental liabilities, net of reimbursements 28 22 27 Other charges 342 100 (20) Total net repositioning and other charges $ 1,266 $ 569 $ 575 The following table summarizes the pre-tax distribution of total net repositioning and other charges by classification in the Consolidated Statement of Operations: Years Ended December 31, 2022 2021 2020 Cost of products and services sold $ 572 $ 457 $ 308 Selling, general and administrative expenses 309 112 267 Other (income) expense 385 — — $ 1,266 $ 569 $ 575 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 22 Segment Financial Data: Years Ended December 31, 2022 2021 2020 Aerospace $ 41 $ 62 $ 157 Honeywell Building Technologies 63 13 100 Performance Materials and Technologies 332 24 167 Safety and Productivity Solutions 188 268 41 Corporate and All Other 642 202 110 $ 1,266 $ 569 $ 575 In 2022, the Company recognized repositioning charges totaling $420 million, including severance costs of $122 million related to workforce reductions of 4,345 manufacturing and administrative positions mainly in the Company's Safety and Productivity Solutions reportable business segment. The workforce reductions related to our productivity and ongoing functional transformation initiatives. The repositioning charges included asset impairments of $176 million related to the write-down of certain manufacturing and other 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 and Productivity Solutions reportable business segment. The repositioning charges included exit costs of $122 million related to current period costs incurred for closure obligations associated with site transitions in the Company's Performance Materials and Technologies and Aerospace reportable business segments. Also, $56 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 2021, the Company recognized repositioning charges totaling $331 million, including severance costs of $80 million related to workforce reductions of 6,432 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 realignment of a product line in the Company's Safety and Productivity Solutions reportable business segment, site transitions, mainly in the Aerospace reportable business segment, to more cost-effective locations, and the Company's productivity and ongoing functional transformation initiatives. The repositioning charges included asset impairments of $117 million primarily related to the write-down of certain manufacturing and other equipment. The repositioning charges included exit costs of $134 million primarily for current period exit costs incurred for previously approved repositioning projects, closure obligations associated with site transitions, and lease obligations for equipment. Also, $13 million of previously established reserves, primarily for severance, were returned to income due to adjustments to the scope of previously announced repositioning actions. In 2020, the Company recognized repositioning charges totaling $565 million, including severance costs of $475 million related to workforce reductions of 14,159 manufacturing and administrative positions across the Company's reportable business segments, with a majority of the workforce reductions in the Aerospace and Performance Materials and Technologies reportable business segments. The workforce reductions primarily related to the Company aligning its cost structure with the slowdown in demand for many of its products and services due to the global recession, the Company's productivity and ongoing functional transformation initiatives, and site consolidations and hub strategies. The repositioning charges included exit costs of $69 million primarily related to current period exit costs incurred for previously approved repositioning projects. Also, $47 million of previously established reserves, primarily for severance, were returned to income mainly as a result of higher attrition than anticipated in prior severance actions resulting in lower payments. The following table summarizes the status of the Company's total repositioning reserves: Severance Asset Exit Total Balance at December 31, 2019 $ 555 $ — $ 96 $ 651 Charges 475 21 69 565 Usage—cash (474) — (90) (564) Usage—noncash — (21) — (21) Divestitures — — — — Adjustments (44) — (3) (47) Foreign currency translation 15 — 2 17 Balance at December 31, 2020 527 — 74 601 Charges 80 117 134 331 Usage—cash (299) — (83) (382) Usage—noncash — (119) — (119) Divestitures — — — — Adjustments (14) 2 (1) (13) Foreign currency translation (5) — (2) (7) Balance at December 31, 2021 289 — 122 411 Charges 122 176 122 420 Usage—cash (135) — (140) (275) Usage—noncash — (168) (15) (183) Divestitures — — — — Adjustments (42) (8) (6) (56) Foreign currency translation 1 — (9) (8) Balance at December 31, 2022 $ 235 $ — $ 74 $ 309 Certain repositioning projects will recognize exit costs in future periods when the actual liability is incurred. Such exit costs incurred in 2022, 2021, and 2020 were not significant. During 2022, the Company recognized $342 million of Asbestos-related charges, net of insurance and reimbursements related to the North American Refractories Company (NARCO) Buyout and HarbisonWalker International Holdings, Inc. (HWI) Sale. See Note 19 Commitments and Contingencies for further discussion NARCO asbestos-related liabilities. The Company recognized $295 million of Other charges related to the initial suspension (the Suspension) and the Wind down of our business and operations in Russia. These costs impacted all reportable business segments, with the most significant impact within the Performance Materials and Technologies reportable business segment. The Other charges include costs recorded in Cost of products sold, Selling, general and administrative expenses, or Other (income) expense in the Consolidated Statement of Operations. Cost of products and services sold includes $65 million primarily related to inventory reserves and the write-down of other assets, Selling, general and administrative includes $185 million primarily related to reserves against outstanding accounts receivable and contract assets, impairment of intangible assets, the write-down of other assets, and employee severance, and Other (income) expense includes $45 million related to foreign exchange revaluation on an intercompany loan with a Russian affiliate, impairment of property, plant and equipment, and expenses for called guarantees. Directly attributable to our Wind down of businesses and operations in Russia, but excluded from Other charges, is a $2 million tax valuation allowance recorded to Tax 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 19 Commitments and Contingencies for a discussion of the recognition and measurement of estimate for contingencies. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES INCOME BEFORE TAXES Years Ended December 31, 2022 2021 2020 U.S. $ 3,305 $ 3,955 $ 3,318 Non-U.S. 3,074 3,280 2,694 $ 6,379 $ 7,235 $ 6,012 TAX EXPENSE (BENEFIT) Years Ended December 31, 2022 2021 2020 Tax expense (benefit) consists of Current: U.S. Federal $ 653 $ 415 $ 475 U.S. State 124 146 79 Non-U.S. 815 886 768 $ 1,592 $ 1,447 $ 1,322 Deferred: U.S. Federal $ (175) $ 173 $ 234 U.S. State (36) 37 39 Non-U.S. 32 (32) (448) (180) 178 (175) $ 1,412 $ 1,625 $ 1,147 Years Ended December 31, 2022 2021 2020 The U.S. federal statutory income tax rate is reconciled to the effective income tax rate as follows: U.S. federal statutory income tax rate 21.0 % 21.0 % 21.0 % Taxes on non-U.S. earnings (1)(2) (0.4) (1.4) (0.8) U.S. state income taxes (1) 1.4 1.5 1.3 Reserves for tax contingencies 1.1 2.2 (2.6) Employee share-based payments (0.9) (0.7) (1.2) Reduction of certain receivables — — 2.0 Restructuring 0.7 (1.4) — U.S. Valuation Allowance (0.2) 2.0 0.1 All other items—net (0.6) (0.7) (0.7) 22.1 % 22.5 % 19.1 % (1) Net of changes in valuation allowance. (2) Includes U.S. taxes on non-U.S. earnings. The effective tax rate decreased by 0.4 percentage points in 2022 compared to 2021. The decrease was primarily a result of additional tax expense reported in 2021 arising from a valuation allowance established against a capital loss, partially offset by a tax benefit related to restructuring transactions. In 2022, the valuation allowance was partially released as losses were utilized against a capital gain. Additionally, in 2022, there was lower tax expense reported for contingencies as a result of the release of certain state income tax reserves The Company’s non-U.S. effective tax rate was 27.5%, an increase of approximately 1.5 percentage points compared to 2021. The increase in the non-U.S. effective tax rate was primarily attributable to a 2021 tax benefit recorded for the release of a valuation allowance on net operating losses due to restructuring in Canada, which resulted in more tax expense in 2022 compared to 2021. This increase was partially offset by lower tax expense recorded in 2022 related to tax reserves when compared to 2021. The effective tax rate increased by 3.4 percentage points in 2021 compared to 2020. The increase was primarily due to the establishment of a valuation allowance for deferred tax assets not expected to be realized, incremental tax reserves, a lower tax benefit from restructuring, and the absence of prior year items including tax benefits realized as a result of the favorable resolution of a foreign tax matter related to the spin-off transactions, tax law changes in India, and the resolution of certain U.S. tax matters offset by a non-cash charge related to the reduction of the aggregate carrying value of certain receivables with no corresponding tax benefit. The Company’s non-U.S. effective tax rate was 26.0%, an increase of approximately 14.1 percentage points compared to 2020. The increase in the non-U.S. effective tax rate was primarily attributable to incremental tax reserves, the tax impact of restructuring and the absence of prior year items including the favorable resolution of a foreign tax matter related to the previously completed spin-off transactions, and tax law changes in India. DEFERRED TAX ASSETS (LIABILITIES) The tax effects of temporary differences and tax carryforwards which give rise to future income tax benefits and payables are as follows: Deferred tax assets: December 31, 2022 2021 Postretirement benefits other than pensions $ 59 $ 77 Asbestos and environmental 545 468 Employee compensation and benefits 142 174 Lease liabilities 233 242 Other accruals and reserves 363 260 Net operating losses 695 734 Capital loss limitation and carryover 126 151 Tax credit carryforwards 163 164 Gross deferred tax assets 2,326 2,270 Valuation allowance (812) (857) Total deferred tax assets $ 1,514 $ 1,413 Deferred tax liabilities: Pension $ (1,088) $ (948) Property, plant and equipment (233) (464) Right-of-use asset (212) (230) Intangibles (818) (883) Unremitted earnings of foreign subsidiaries (517) (426) Other asset basis differences (317) (334) Other (1) (2) Total deferred tax liabilities (3,186) (3,287) Net deferred tax liability $ (1,672) $ (1,874) The Company's gross deferred tax assets include $869 million related to non-U.S. operations comprised principally of net operating losses, capital loss and tax credit carryforwards, primarily in Canada, France, Germany, Luxembourg, and the United Kingdom, and deductible temporary differences. The Company maintains a valuation allowance of $683 million against a portion of the non-U.S. gross deferred tax assets. Additionally, a valuation allowance of $129 million is maintained against the U.S. gross deferred tax asset primarily related to capital loss carryovers. The change in the valuation allowance resulted in a decrease of $8 million, an increase of $124 million, and an increase of $105 million to income tax expense in 2022, 2021, and 2020, respectively. In the event the Company determines that it will not be able to realize its net deferred tax assets in the future, the Company will reduce such amounts through an increase to income tax expense in the period such determination is made. Conversely, if the Company determines that it will be able to realize net deferred tax assets in excess of the carrying amounts, the Company will decrease the recorded valuation allowance through a reduction to income tax expense in the period that such determination is made. As of December 31, 2022, the Company recorded a $517 million deferred tax liability on all unremitted foreign earnings based on estimated earnings and profits of approximately $17 billion as of the balance sheet date. As of December 31, 2022, the Company's net operating loss, capital loss and tax credit carryforwards were as follows: Jurisdiction Expiration Net Operating Tax Credit U.S. Federal 2042 $ 584 $ 94 U.S. State 2042 449 21 Non-U.S. 2042 450 53 Non-U.S. Indefinite 2,062 — $ 3,545 $ 168 Many jurisdictions impose limitations on the timing and utilization of net operating loss and tax credit carryforwards. In those instances, whereby there is an expected permanent limitation on the utilization of the net operating loss or tax credit carryforward, the deferred tax asset and amount of the carryforward have been reduced. Years Ended December 31, 2022 2021 2020 Change in unrecognized tax benefits: Balance at beginning of year $ 1,061 $ 991 $ 1,164 Gross increases related to current period tax positions 64 93 94 Gross increases related to prior periods tax positions 31 39 68 Gross decreases related to prior periods tax positions (19) (27) (256) Decrease related to resolutions of audits with tax authorities (3) (1) (35) Expiration of the statute of limitations for the assessment of taxes (8) (12) (76) Foreign currency translation (40) (22) 32 Balance at end of year $ 1,086 $ 1,061 $ 991 As of December 31, 2022, 2021, and 2020, there were $1,086 million, $1,061 million, and $991 million, respectively, of unrecognized tax benefits that if recognized would be recorded as a component of Tax expense. The following table summarizes tax years that remain subject to examination by major tax jurisdictions as of December 31, 2022: Jurisdiction Open Tax Years Examination in progress Examination not yet initiated U.S. Federal 2017-2018 2019-2022 U.S. State 2013-2020 2017-2022 Australia n/a 2019-2022 Belgium 2019-2020 2021-2022 Canada (1) 2017-2019 2020-2022 China 2012-2021 2022 France 2019-2021 2022 Germany (1) 2009-2020 2021-2022 India 1999-2021 2022 Italy 2015-2020 2021-2022 Netherlands 2018-2020 2021-2022 Switzerland (1) 2017-2020 2021-2022 United Kingdom 2013-2020 2021-2022 (1) Includes provincial or similar local jurisdictions, as applicable. Based on the outcome of these examinations, or as a result of the expiration of statute of limitations for specific jurisdictions, it is reasonably possible that certain unrecognized tax benefits for tax positions taken on previously filed tax returns will materially change from those recorded as liabilities in the Company's financial statements. In addition, the outcome of these examinations may impact the valuation of certain deferred tax assets (such as net operating losses) in future periods. Unrecognized tax benefits for examinations in progress were $640 million, $592 million, and $556 million, as of December 31, 2022, 2021, and 2020, respectively. Estimated interest and penalties related to the underpayment of income taxes are classified as a component of Tax expense in the Consolidated Statement of Operations and totaled $5 million, $79 million, and $80 million for the years ended December 31, 2022, 2021, and 2020, respectively. Accrued interest and penalties were $557 million, $580 million, and $507 million, as of December 31, 2022, 2021, and 2020, respectively. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES December 31, 2022 2021 Raw materials $ 1,407 $ 1,352 Work in process 1,049 861 Finished products 3,082 2,925 $ 5,538 $ 5,138 |
PROPERTY, PLANT AND EQUIPMENT-N
PROPERTY, PLANT AND EQUIPMENT-NET | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT-NET | PROPERTY, PLANT AND EQUIPMENT—NET December 31, 2022 2021 Land and improvements $ 216 $ 226 Machinery and equipment 10,383 10,143 Buildings and improvements 3,394 3,225 Construction in progress 769 856 14,762 14,450 Less—Accumulated depreciation (9,291) (8,888) $ 5,471 $ 5,562 Depreciation expense was $657 million, $674 million, and $644 million for the years ended December 31, 2022, 2021, and 2020, respectively. |
GOODWILL AND OTHER INTANGIBLES-
GOODWILL AND OTHER INTANGIBLES-NET | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS-NET | GOODWILL AND OTHER INTANGIBLE ASSETS—NET The following table summarizes the change in the carrying amount of goodwill for the years ended December 31, 2022, and 2021, by reportable business segment: December 31, 2021 Acquisitions/ Currency December 31, 2022 Aerospace $ 2,399 $ — $ (23) $ 2,376 Honeywell Building Technologies 3,317 123 (102) 3,338 Performance Materials and Technologies 6,138 — (125) 6,013 Safety and Productivity Solutions 4,961 — (65) 4,896 Corporate and All Other 941 2 (69) 874 $ 17,756 $ 125 $ (384) $ 17,497 Other intangible assets are comprised of: December 31, 2022 December 31, 2021 Gross Accumulated Net Gross Accumulated Net Determinable life intangibles: Patents and technology $ 2,313 $ (1,759) $ 554 $ 2,345 $ (1,678) $ 667 Customer relationships 3,989 (2,397) 1,592 4,045 (2,235) 1,810 Trademarks 371 (273) 98 356 (261) 95 Other 299 (274) 25 298 (271) 27 6,972 (4,703) 2,269 7,044 (4,445) 2,599 Indefinite life intangibles: Trademarks 953 — 953 1,014 — 1,014 $ 7,925 $ (4,703) $ 3,222 $ 8,058 $ (4,445) $ 3,613 Intangible assets amortization expense was $333 million, $465 million, and $358 million for the years ended December 31, 2022, 2021, and 2020, respectively. Estimated intangible asset amortization expense for each of the next five years approximates $298 million in 2023, $268 million in 2024, $259 million in 2025, $234 million in 2026, and $211 million in 2027. |
LONG-TERM DEBT AND CREDIT AGREE
LONG-TERM DEBT AND CREDIT AGREEMENTS | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT AND CREDIT AGREEMENTS | LONG-TERM DEBT AND CREDIT AGREEMENTS December 31, 2022 2021 0.483% notes due 2022 $ — $ 500 2.15% notes due 2022 — 600 Floating rate notes due 2022 — 600 1.30% Euro notes due 2023 1,334 1,416 3.35% notes due 2023 300 300 0.00% Euro notes due 2024 534 566 2.30% notes due 2024 750 750 4.85% notes due 2024 400 — 1.35% notes due 2025 1,250 1,250 2.50% notes due 2026 1,500 1,500 1.10% notes due 2027 1,000 1,000 4.95% notes due 2028 500 — 2.25% Euro notes due 2028 800 849 2.70% notes due 2029 750 750 1.95% notes due 2030 1,000 1,000 1.75% notes due 2031 1,500 1,500 0.75% Euro notes due 2032 534 566 5.00% notes due 2033 1,100 — 4.125% Euro notes due 2034 1,067 — 5.70% notes due 2036 441 441 5.70% notes due 2037 462 462 5.375% notes due 2041 417 417 3.812% notes due 2047 445 445 2.80% notes due 2050 750 750 Industrial development bond obligations, floating rate maturing at various dates through 2037 22 22 6.625% debentures due 2028 201 201 9.065% debentures due 2033 51 51 Other (including capitalized leases), 8.0% weighted average interest rate maturing at various dates through 2029 265 272 Fair value of hedging instruments (287) 60 Debt issuance costs (233) (211) 16,853 16,057 Less—Current maturities of long-term debt (1,730) (1,803) $ 15,123 $ 14,254 The schedule of principal payments on long-term debt is as follows: December 31, 2022 2023 $ 1,730 2024 1,787 2025 1,272 2026 1,515 2027 1,008 Thereafter 9,541 16,853 Less—Current maturities of long-term debt (1,730) $ 15,123 On November 2, 2022, the Company issued $400 million 4.85% Senior Notes due 2024, $500 million 4.95% Senior Notes due 2028, and $1.1 billion 5.00% Senior Notes due 2033 (collectively, the 2022 USD Notes). The Company may redeem the 2022 USD Notes at any time, and from time to time, in whole or in part, at the Company's option at the applicable redemption price. The offering provided gross proceeds of $2.0 billion, offset by $22 million in discount and closing costs related to the offering. On November 2, 2022, the Company issued €1.0 billion 4.125% Senior Notes due 2034 (the 2022 Euro Notes). The Company may redeem the 2022 Euro Notes at any time, and from time to time, in whole or in part, at the Company's option at the applicable redemption price. The offering provided gross proceeds of $990 million, offset by $17 million in discount and closing costs related to the offering. The 2022 USD Notes and 2022 Euro Notes are senior unsecured and unsubordinated obligations of the Company and rank equally with each other and with all of the Company's existing and future senior unsecured debt and senior to all of the Company's subordinated debt. The Company intends to use the proceeds from the issuance for general corporate purposes. On August 8, 2022, the Company repaid its 2.15% and its Floating rate notes due 2022. On August 19, 2022, the Company repaid its 0.483% notes due 2022. On March 24, 2022, the Company entered into a $4.0 billion Amended and Restated Five-Year Credit Agreement (the 5-Year Credit Agreement) and a $1.5 billion 364-Day Credit Agreement (the 364-Day Credit Agreement). The 5-Year Credit Agreement amended and restated the previously reported $4.0 billion amended and restated five-year credit agreement dated as of March 31, 2021. Commitments under the 5-Year Credit Agreement can be increased pursuant to the terms of the 5-Year Credit Agreement to an aggregate amount not to exceed $4.5 billion. The 364-Day Credit Agreement replaced the $1.5 billion 364-day credit agreement dated as of March 31, 2021, which was terminated in accordance with its terms effective March 24, 2022. Amounts borrowed under the 364-Day Credit Agreement are required to be repaid no later than March 23, 2023, unless (i) Honeywell elects to convert all then outstanding amounts into a term loan, upon which such amounts shall be repaid in full on March 23, 2024, or (ii) the 364-Day Credit Agreement is terminated earlier pursuant to its terms. The 5-Year Credit Agreement and the 364-Day Credit Agreement are maintained for general corporate purposes. As of December 31, 2022, there were no outstanding borrowings under the 364-Day Credit Agreement or 5-Year Credit Agreement. On November 1, 2021, the Company repaid its 1.85% notes due 2021. On August 16, 2021, the Company issued $1.0 billion 1.10% Senior Notes due 2027 and $1.5 billion 1.75% Senior Notes due 2031 (collectively, the Notes). The Company may redeem the Notes at any time, and from time to time, in whole or in part, at the Company's option at the applicable make-whole redemption price. The Notes are senior unsecured and unsubordinated obligations of the Company and rank equally with each other and with all of the Company's existing and future senior unsecured debt and senior to all of the Company's subordinated debt. The offering provided gross proceeds of $2.5 billion, offset by $18 million in discount and closing costs related to the offering. The Company used the proceeds of the offering to redeem at par $2 billion of the $2.5 billion in outstanding principal amount of the callable 0.483% Senior Notes due 2022 and to redeem in full and at par $500 million callable Floating rate Senior Notes due 2022 that the Company issued in August 2020. On March 1, 2021, the Company repaid its 4.25% notes due 2021. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
LEASES | LEASES A significant portion of the Company's operating and finance lease portfolio includes corporate offices, research and development facilities, manufacturing sites, information technology equipment, and automobiles. The majority of the Company's leases have remaining lease terms of 1 year to 20 years, some of which include options to extend the leases for 5 years or more. Operating lease ROU assets are included in Other assets. The current portion of operating lease liabilities are included in Accrued liabilities, and the non-current portion of operating lease liabilities are included in Other liabilities in the Consolidated Balance Sheet. Finance lease ROU assets are included in Property, plant and equipment—net. The current portion of finance lease liabilities are included in Current maturities of long-term debt, and the non-current portion of finance lease liabilities are included in Long-term debt in the Consolidated Balance Sheet. A portion of the Company's real estate leases is generally subject to annual changes in the Consumer Price Index (CPI). The changes to the CPI are treated as variable lease payments and recognized in the period in which the obligation for those payments was incurred. In addition, a subset of the Company's automobile leases are considered variable. The variable lease payments for such automobiles leases are based on actual mileage incurred at the stated contractual rate and recognized in the period in which the obligation for those payments was incurred. Years Ended December 31, 2022 2021 Operating lease cost $ 224 $ 228 Variable lease cost 8 14 Short-term lease cost 18 15 Finance lease cost: Amortization of right-of-use assets 72 65 Interest on lease liability 21 24 Total finance lease cost 93 89 Total lease cost $ 343 $ 346 Supplemental cash flow information related to leases was as follows: Years Ended December 31, 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 225 $ 215 Operating cash flows for finance leases 21 24 Financing cash flows for finance leases 79 67 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 251 $ 350 Finance leases 61 32 Supplemental balance sheet information related to leases was as follows: December 31, 2022 2021 Operating leases: Other assets $ 881 $ 947 Accrued liabilities 192 185 Other liabilities 775 847 Total operating lease liabilities $ 967 $ 1,032 Finance leases: Property, plant and equipment $ 383 $ 325 Accumulated depreciation (161) (177) Property, plant and equipment—net $ 222 $ 148 Current maturities of long-term debt $ 77 $ 57 Long-term debt 145 99 Total finance lease liabilities $ 222 $ 156 Weighted average remaining lease term: Operating leases 8 years 9 years Finance leases 4 years 3 years Weighted average discount rate: Operating leases 2.1 % 2.3 % Finance leases 7.8 % 11.0 % As of December 31, 2022, maturities of lease liabilities were as follows: Operating Finance Leases 2023 $ 208 $ 94 2024 176 81 2025 139 37 2026 115 15 2027 88 12 Thereafter 354 18 Total lease payments 1,080 257 Less—interest (113) (35) Total $ 967 $ 222 |
DERIVATIVE INSTRUMENTS AND HEDG
DERIVATIVE INSTRUMENTS AND HEDGING TRANSACTIONS | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS AND HEDGING TRANSACTIONS | DERIVATIVE INSTRUMENTS AND HEDGING TRANSACTIONS DERIVATIVES AND HEDGING ACTIVITIES The Company uses derivative financial instruments to manage its risks related to interest rates, foreign currency exchange rates, and commodity prices. Derivative financial instruments are not used for trading or other speculative purposes. To qualify as a hedge, derivative financial instruments must be evaluated for hedge effectiveness at the inception of the contract and designated as a hedge. Changes in fair value of the derivative contract must be highly correlated with changes in fair value of the underlying hedged item at inception and over the life of the hedge contract. FOREIGN CURRENCY RISK MANAGEMENT The Company operates a global business in a wide variety of foreign currencies. The Company's exposure to market risk for changes in foreign currency exchange rates arises from international financing activities between subsidiaries, foreign currency denominated monetary assets and liabilities, and transactions arising from international trade. The Company's objective is to preserve the U.S. Dollar value of foreign currency denominated cash flows and earnings. The Company monitors its collective foreign currency exposure and enters into foreign currency exchange forward and option contracts (foreign currency exchange contracts) with third parties, when necessary, to minimize the impact of changes in foreign currency exchange rates. The Company has monetary assets and liabilities denominated in non-functional currencies. Prior to conversion into U.S. Dollars, these assets and liabilities are remeasured at spot exchange rates in effect on the balance sheet date. The effects of changes in spot rates are recognized in earnings and included in Other (income) expense. The Company uses foreign currency exchange contracts to hedge its foreign currency exposure. These contracts are marked-to-market with the resulting gains and losses recognized in earnings offsetting the gains and losses on the non-functional currency denominated monetary assets and liabilities being hedged. The Company uses foreign currency contracts to hedge forecasted sales and purchases, which are denominated in non-functional currencies. Changes in the forecasted non-functional currency cash flows due to movements in exchange rates are substantially offset by changes in the fair value of these foreign currency exchange contracts designated as hedges. Market value gains and losses on these contracts are recognized in earnings when the hedged transaction is recognized. As of December 31, 2022, and 2021, the Company held contracts with notional amounts of $10,545 million and $12,671 million, respectively, to exchange foreign currencies, principally the U.S. Dollar, Euro, Canadian Dollar, British Pound, Mexican Peso, Chinese Renminbi, and Indian Rupee. The Company also designates certain foreign currency debt and derivative contracts as hedges against portions of its net investment in foreign operations. Gains or losses of the foreign currency debt and derivative contracts designated as net investment hedges are recorded in the same manner as foreign currency translation adjustments. INTEREST RATE RISK MANAGEMENT Financial instruments, including derivatives, expose the Company to market risk related to changes in interest rates. The Company uses a combination of financial instruments, including long-term, medium-term, and short-term financing, variable-rate commercial paper, and interest rate swaps to convert the interest rate mix of the Company's total debt portfolio and related overall cost of borrowing. CREDIT RISK MANAGEMENT The Company continues to monitor the creditworthiness of its counterparties to mitigate the risk of nonperformance. Financial instruments, including derivatives, expose the Company to counterparty credit risk. In addition, the Company grants credit terms to its customers in the normal course of business. The terms and conditions of the Company's credit sales are designed to mitigate or eliminate concentrations of credit risk with any single customer. The Company's sales are not materially dependent on a single customer or a small group of customers. COMMODITY PRICE RISK MANAGEMENT The Company's operations subject us to risk related to the price volatility of certain commodities. To mitigate the commodity price risk associated with the Company's operations, the Company may enter into commodity derivative instruments. In March 2022, the Company entered into various contracts to mitigate commodity price volatility. The Company elected to apply hedge accounting to these contracts. DERIVATIVE AND HEDGING INSTRUMENTS The following table summarizes the notional amounts and fair values of the Company’s outstanding derivatives by risk category and instrument type within the Consolidated Balance Sheet: Notional Fair Value Asset Fair Value (Liability) December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Derivatives in fair value hedging relationships: Interest rate swap agreements $ 4,984 $ 3,150 $ 16 $ 60 $ (303) $ — Derivatives in cash flow hedging relationships: Foreign currency exchange contracts 866 647 19 4 (5) — Commodity contracts 9 — — — (1) — Derivatives in net investment hedging relationships: Foreign currency exchange contracts — 746 — 92 — — Cross currency swap agreements 3,189 1,200 90 39 — — Total derivatives designated as hedging instruments 9,048 5,743 125 195 (309) — Derivatives not designated as hedging instruments: Foreign currency exchange contracts 9,679 11,278 74 278 (3) (282) Total derivatives at fair value $ 18,727 $ 17,021 $ 199 $ 473 $ (312) $ (282) All derivative assets are presented in Other current assets or Other assets. All derivative liabilities are presented in Accrued liabilities or Other liabilities. In addition to the foreign currency derivative contracts designated as net investment hedges, certain of the Company's foreign currency denominated debt instruments are designated as net investment hedges. The carrying value of those debt instruments designated as net investment hedges, which includes the adjustment for the foreign currency transaction gain or loss on those instruments, was $3,836 million and $4,074 million as of December 31, 2022, and 2021, respectively. Interest rate swap agreements are designated as hedge relationships with gains or losses on the derivative recognized in Interest and other financial charges offsetting the gains and losses on the underlying debt being hedged. Gains and losses on interest rate swap agreements recognized in earnings were $347 million of expense, $135 million of expense, and $169 million of income for the years ended December 31, 2022, 2021, and 2020, respectively. Gains and losses are fully offset by losses and gains on the underlying debt being hedged. The following table sets forth the amounts recorded in the Consolidated Balance Sheet related to cumulative basis adjustments for fair value hedges: Line in the Consolidated Balance Sheet of Hedged Item Carrying Amount Cumulative Amount of December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Long-term debt $ 4,696 $ 3,210 $ (287) $ 60 The following tables summarize the location and impact to the Consolidated Statement of Operations related to derivative instruments: Year Ended December 31, 2022 Net Sales Cost of Cost of Selling, General and Administrative Expenses Other Interest and Other $ 35,466 $ 18,263 $ 5,562 $ 5,214 $ (366) $ 414 Gain or (loss) on cash flow hedges: Foreign currency exchange contracts: Amount reclassified from accumulated other comprehensive income into income 13 50 14 (3) — — Commodity contracts: Amount reclassified from accumulated other comprehensive income into income — (2) — — — — Gain or (loss) on fair value hedges: Interest rate swap agreements: Hedged items — — — — — 347 Derivatives designated as hedges — — — — — (347) Gain or (loss) on net investment hedges: Foreign currency exchange contracts: Amount excluded from effectiveness testing recognized in earnings using an amortization approach — — — — — 13 Gain or (loss) on derivatives not designated as hedging instruments: Foreign currency exchange contracts — — — — 351 — Year Ended December 31, 2021 Net Sales Cost of Cost of Services Sold Selling, General and Administrative Expenses Other Interest and Other $ 34,392 $ 18,344 $ 5,050 $ 4,798 $ (1,378) $ 343 Gain or (loss) on cash flow hedges: Foreign currency exchange contracts: Amount reclassified from accumulated other comprehensive income into income 5 8 2 9 — — Gain or (loss) on fair value hedges: Interest rate swap agreements: Hedged items — — — — — 135 Derivatives designated as hedges — — — — — (135) Gain or (loss) on net investment hedges: Foreign currency exchange contracts: Amount excluded from effectiveness testing recognized in earnings using an amortization approach — — — — — 16 Gain or (loss) on derivatives not designated as hedging instruments: Foreign currency exchange contracts — — — — 195 — Year Ended December 31, 2020 Net Sales Cost of Cost of Services Sold Selling, General and Administrative Expenses Other Interest and Other $ 32,637 $ 17,638 $ 4,531 $ 4,772 $ (675) $ 359 Gain or (loss) on cash flow hedges: Foreign currency exchange contracts: Amount reclassified from accumulated other comprehensive income into income (3) 43 11 (4) 28 — Amount excluded from effectiveness testing recognized in earnings using an amortization approach — 10 3 — 29 — Gain or (loss) on fair value hedges: Interest rate swap agreements: Hedged items — — — — — (169) Derivatives designated as hedges — — — — — 169 Gain or (loss) on net investment hedges: Foreign currency exchange contracts: Amount excluded from effectiveness testing recognized in earnings using an amortization approach — — — — — 18 Gain or (loss) on derivatives not designated as hedging instruments: Foreign currency exchange contracts — — — — (166) — As of December 31, 2022, the Company estimates that approximately $13 million of net derivative gains related to its cash flow hedges included in Accumulated other comprehensive income (loss) will be reclassified into earnings within the next 12 months. The following table summarizes the amounts of gain or (loss) on net investment hedges recognized in Accumulated other comprehensive income (loss): Derivatives Net Investment Hedging Relationships Years Ended December 31, 2022 2021 Euro-denominated long-term debt $ 196 $ 284 Euro-denominated commercial paper 39 57 Cross currency swap agreements (65) 88 Foreign currency exchange contracts 34 40 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The accounting guidance for fair value measurements and disclosures establishes a three-level fair value hierarchy. • Level 1 - Inputs are based on quoted prices in active markets for identical assets and liabilities. • Level 2 - Inputs are based on observable inputs other than quoted prices in active markets for identical or similar assets and liabilities. • Level 3 - One or more inputs are unobservable and significant. Financial and nonfinancial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The following table sets forth the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis: December 31, 2022 December 31, 2021 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Foreign currency exchange contracts $ — $ 93 $ — $ 93 $ — $ 374 $ — $ 374 Available for sale investments 87 559 — 646 176 566 — 742 Interest rate swap agreements — 16 — 16 — 60 — 60 Cross currency swap agreements — 90 — 90 — 39 — 39 Investments in equity securities 22 32 — 54 34 23 — 57 Right to HWI Sale proceeds — — 295 295 — — — — Total assets $ 109 $ 790 $ 295 $ 1,194 $ 210 $ 1,062 $ — $ 1,272 Liabilities: Foreign currency exchange contracts $ — $ 8 — $ 8 $ — $ 282 — $ 282 Interest rate swap agreements — 303 — 303 — — — — Commodity contracts — 1 — 1 — — — — Total liabilities $ — $ 312 $ — $ 312 $ — $ 282 $ — $ 282 The foreign currency exchange contracts, interest rate swap agreements, cross currency swap agreements, and commodity contracts are valued using broker quotations, or market transactions in either the listed or over-the-counter markets. As such, these derivative instruments are classified within level 2. The Company also holds investments in commercial paper, certificates of deposits, and time deposits that are designated as available for sale, as well as investments in equity securities, which are valued using published prices based on observable market data. As such, these investments are classified within level 2. The Company holds certain available for sale investments in U.S. government and corporate debt securities, as well as investments in equity securities, which are valued utilizing published prices based on quoted market pricing, which are classified within level 1. The carrying value of cash and cash equivalents, trade accounts and notes receivables, payables, commercial paper and other short-term borrowings contained in the Consolidated Balance Sheet approximates fair value. As part of the NARCO Buyout, Honeywell holds a right to future proceeds from the HWI Sale. The right to these proceeds is considered a financial instrument and is included in Other current assets in the Consolidated Balance Sheet as of December 31, 2022. The right to these proceeds is valued using the estimated purchase price of HWI. The significant input for the valuation of this right is unobservable, and as such, is classified within level 3. The following table sets forth a reconciliation of beginning and ending balances of assets and liabilities that were accounted for at fair value using level 3 measurements: Years Ended December 31, 2022 2021 Balance at beginning of period $ — $ — Activity during period: Recognition of right to HWI Sale proceeds 295 — Balance at end of period $ 295 $ — The following table sets forth the Company’s financial assets and liabilities that were not carried at fair value: December 31, 2022 December 31, 2021 Carrying Fair Carrying Fair Assets: Short-term investments $ — $ — $ 34 $ 34 Long-term receivables 229 183 170 152 Long-term investments — — 366 366 Liabilities: Long-term debt and related current maturities $ 16,853 $ 15,856 $ 16,057 $ 17,022 The Company determined the fair value of the long-term receivables by utilizing transactions in the listed markets for identical or similar assets. As such, the fair value of these receivables is considered level 2. On April 30, 2021, the Company received shares of Garrett Motion Inc. (Garrett) Series B Preferred Stock in full and final satisfaction of the Garrett Indemnity and Tax Matters Agreement. As of December 31, 2021, the fair value of the short-term and long-term investments were based on the present value of the mandatory redemptions as reflected within Garrett's Second and Amended and Restated Series B Preferred Stock (Series B Preferred Stock) Certificate of Designation. The present value reflected amortized cost determined by the present value of the mandatory redemptions discounted at 7.25%, which was the rate reflected in the Second Amended and Restated Series B Preferred Stock Certificate of Designation. The discount accreted to interest income over the mandatory redemption period. The investment was designated as held to maturity and was initially recognized at fair value. The fair value of Garrett's Series B Preferred Stock was determined using observable market data and is considered level 2. Fair Value of the Series B Preferred Stock was not impacted by early redemptions until receipt of payment. As of December 31, 2022, Garrett had fully redeemed all outstanding shares of the Garrett Series B Preferred Stock. See Note 19 Commitments and Contingencies for additional information on the Garrett Series B Preferred Stock. |
ACCRUED LIABILITIES
ACCRUED LIABILITIES | 12 Months Ended |
Dec. 31, 2022 | |
Accrued Liabilities, Current [Abstract] | |
ACCRUED LIABILITIES | ACCRUED LIABILITIES December 31, 2022 2021 Customer advances and deferred income $ 3,555 $ 3,163 Compensation, benefit and other employee related 1,218 1,273 Repositioning 309 411 Asbestos-related liabilities 110 261 Income taxes 549 393 Other taxes 174 269 Environmental costs 222 225 Operating lease liabilities 192 185 Product warranties and performance guarantees 175 180 Insurance 68 101 Accrued interest 122 100 NARCO Buyout accrual 1,325 — Other (primarily operating expenses) 1,143 1,118 $ 9,162 $ 7,679 |
OTHER LIABILITIES
OTHER LIABILITIES | 12 Months Ended |
Dec. 31, 2022 | |
Other Liabilities Disclosure [Abstract] | |
OTHER LIABILITIES | OTHER LIABILITIES December 31, 2022 2021 Income taxes $ 1,939 $ 2,152 Pension and other employee related 1,306 1,672 Deferred income 1,334 1,324 Operating lease liabilities 775 847 Environmental costs 393 393 Insurance 289 299 Product warranties and performance guarantees 38 43 Asset retirement obligations 24 26 Other 371 331 $ 6,469 $ 7,087 |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION PLANS | STOCK-BASED COMPENSATION PLANS The 2016 Stock Incentive Plan of Honeywell International Inc. and its Affiliates (2016 Plan) and 2016 Stock Plan for Non-Employee Directors of Honeywell International Inc. (2016 Directors Plan) were both approved by the shareowners at the Annual Meeting of Shareowners effective on April 25, 2016. At December 31, 2022, there were 30,635,612, and 797,252 shares of Honeywell common stock available for future grants under terms of the 2016 Plan and 2016 Directors Plan, respectively. STOCK OPTIONS The exercise price, term, and other conditions applicable to each option granted under the Company's stock plans are generally determined by the Management Development and Compensation Committee of the Board of Directors. The exercise price of stock options is set on the grant date and may not be less than the fair market value per share of the Company's stock on that date. The fair value is recognized as an expense over the employee’s requisite service period (generally the vesting period of the award). Options generally vest over a four The fair value of each option award is estimated on the date of grant using the Black-Scholes option-pricing model. Expected volatility is based on implied volatilities from traded options on our common stock and historical volatility of the Company's common stock. The Company used a Monte Carlo simulation model to derive an expected term which represents an estimate of the time options are expected to remain outstanding. Such model uses historical data to estimate option exercise activity and post-vest termination behavior. The risk-free rate for periods within the contractual life of the option is based on the U.S. treasury yield curve in effect at the time of grant. The following table summarizes the impact to the Consolidated Statement of Operations from stock options: Years Ended December 31, 2022 2021 2020 Compensation expense $ 45 $ 55 $ 50 Future income tax benefit recognized 10 11 10 The following table sets forth fair value per share information, including related weighted average assumptions, used to determine compensation cost: Years Ended December 31, 2022 2021 2020 Weighted average fair value per share of options granted during the year (1) $ 31.22 $ 32.42 $ 21.30 Assumptions: Expected annual dividend yield 2.58 % 2.31 % 2.59 % Expected volatility 23.05 % 24.69 % 18.76 % Risk-free rate of return 1.97 % 0.48 % 1.32 % Expected option term (years) 4.74 4.54 4.62 (1) Estimated on date of grant using Black-Scholes option-pricing model. The following table summarizes information about stock option activity for the three years ended December 31, 2022: Number of Weighted Average Outstanding at December 31, 2019 18,731,562 $ 109.87 Granted 3,192,693 176.93 Exercised (4,424,754) 88.96 Lapsed or canceled (930,972) 156.62 Outstanding at December 31, 2020 16,568,529 125.75 Granted 2,065,574 204.99 Exercised (2,016,489) 113.01 Lapsed or canceled (764,675) 175.42 Outstanding at December 31, 2021 15,852,939 135.31 Granted 2,150,910 189.53 Exercised (3,046,107) 103.89 Lapsed or canceled (905,454) 186.35 Outstanding at December 31, 2022 14,052,288 $ 147.14 Vested and expected to vest at December 31, 2022 (1) 13,056,367 $ 143.72 Exercisable at December 31, 2022 9,509,606 $ 127.99 (1) Represents the sum of vested options of 9.5 million and expected to vest options of 3.5 million. Expected to vest options are derived by applying the pre-vesting forfeiture rate assumption to total outstanding unvested options of 4.5 million. The following table summarizes information about stock options outstanding and exercisable at December 31, 2022: Range of Exercise Prices Options Outstanding Options Exercisable Number Weighted Average Life (1) Weighted Aggregate Number Weighted Aggregate $27.00–$64.99 700 0.20 $ 57.00 $ — 700 $ 57.00 $ — $65.00–$89.99 949,592 1.12 88.69 119 949,592 88.69 119 $90.00–$99.99 2,837,199 2.52 98.79 328 2,837,199 98.79 328 $100.00–$134.99 2,092,549 4.05 119.49 198 2,026,049 119.16 197 $135.00–$189.99 6,459,775 6.87 170.71 282 3,270,515 160.19 248 $190.00–$232.60 1,712,473 8.08 204.52 18 425,551 204.99 14 14,052,288 5.33 $ 147.14 $ 945 9,509,606 $ 127.99 $ 906 (1) Average remaining contractual life in years. There were 10,664,625 and 10,120,793 options exercisable at weighted average exercise prices of $113.30 and $103.89 at December 31, 2021, and 2020, respectively. The following table summarizes the financial statement impact from stock options exercised: Options Exercised Years Ended December 31, 2022 2021 2020 Intrinsic value (1) $ 310 $ 219 $ 379 Tax benefit realized 71 48 84 (1) Represents the amount by which the stock price exceeded the exercise price of the options on the date of exercise. At December 31, 2022, there was $99 million of total unrecognized compensation cost related to non-vested stock option awards which is expected to be recognized over a weighted average period of 2.46 years. The total fair value of options vested for the years ended December 31, 2022, 2021, and 2020 was $49 million, $52 million, and $55 million, respectively. RESTRICTED STOCK UNITS Restricted stock unit (RSU) awards entitle the holder to receive one share of common stock for each unit when the units vest. RSUs are issued to certain key employees and directors as compensation at fair market value at the date of grant. RSUs generally become fully vested over periods ranging from three The following table summarizes information about RSU activity for the three years ended December 31, 2022: Number of Weighted Non-vested at December 31, 2019 3,240,065 $ 143.07 Granted 1,551,675 158.52 Vested (1,001,101) 117.84 Forfeited (394,116) 145.42 Non-vested at December 31, 2020 3,396,523 148.23 Granted 992,854 214.61 Vested (1,123,547) 144.34 Forfeited (308,293) 156.74 Non-vested at December 31, 2021 2,957,536 171.73 Granted 1,056,869 186.48 Vested (864,944) 157.21 Forfeited (441,453) 177.38 Non-vested at December 31, 2022 2,708,008 $ 181.10 As of December 31, 2022, there was approximately $255 million of total unrecognized compensation cost related to non-vested RSUs granted under the Company's stock plans which is expected to be recognized over a weighted average period of 2.04 years. The following table summarizes the impact to the Consolidated Statement of Operations from RSUs: Years Ended December 31, 2022 2021 2020 Compensation expense $ 143 $ 162 $ 118 Future income tax benefit recognized 29 23 24 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The details of the earnings per share calculations for the years ended December 31, 2022, 2021, and 2020 are as follows (shares in millions): Basic Years Ended December 31, 2022 2021 2020 Net income attributable to Honeywell $ 4,966 $ 5,542 $ 4,779 Weighted average shares outstanding 677.1 692.3 704.1 Earnings per share of common stock—basic $ 7.33 $ 8.01 $ 6.79 Assuming dilution Years Ended December 31, 2022 2021 2020 Net income attributable to Honeywell $ 4,966 $ 5,542 $ 4,779 Average shares Weighted average shares outstanding 677.1 692.3 704.1 Dilutive securities issuable—stock plans 6.0 8.1 7.1 Total weighted average diluted shares outstanding 683.1 700.4 711.2 Earnings per share of common stock—assuming dilution $ 7.27 $ 7.91 $ 6.72 The diluted earnings per share calculations exclude the effect of stock options when the cost to exercise an option exceeds the average market price of the common shares during the period. In 2022, 2021, and 2020 the weighted number of stock options excluded from the computations were 3.5 million, 1.7 million, and 5.5 million, respectively. These stock options were outstanding at the end of each of the respective periods. As of December 31, 2022, and 2021, the total shares outstanding were 667.6 million and 684.8 million, respectively, and as of December 31, 2022, and 2021, total shares issued were 957.6 million. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Dec. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The changes in Accumulated other comprehensive income (loss) are provided in the tables below. Comprehensive income (loss) attributable to noncontrolling interest consists predominantly of net income. Pre-tax Tax After-Tax Year Ended December 31, 2022 Foreign exchange translation adjustment $ (354) $ — $ (354) Pension and other postretirement benefit adjustments (280) 47 (233) Changes in fair value of available for sale investments (8) — (8) Changes in fair value of designated cash flow hedges 9 6 15 $ (633) $ 53 $ (580) Year Ended December 31, 2021 Foreign exchange translation adjustment $ 302 $ — $ 302 Pension and other postretirement benefit adjustments 245 (59) 186 Changes in fair value of available for sale investments (3) — (3) Changes in fair value of designated cash flow hedges (4) 1 (3) $ 540 $ (58) $ 482 Year Ended December 31, 2020 Foreign exchange translation adjustment $ (214) $ — $ (214) Pension and other postretirement benefit adjustments 76 (2) 74 Changes in fair value of available for sale investments 4 — 4 Changes in fair value of designated cash flow hedges (61) 17 (44) $ (195) $ 15 $ (180) COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) December 31, 2022 2021 Cumulative foreign exchange translation adjustment $ (2,832) $ (2,478) Pension and other postretirement benefit adjustments (648) (415) Fair value adjustments of available for sale investments (7) 1 Fair value adjustments of designated cash flow hedges 12 (3) $ (3,475) $ (2,895) CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BY COMPONENT Foreign Pension Changes in Changes in Total Balance at December 31, 2019 $ (2,566) $ (675) $ — $ 44 $ (3,197) Other comprehensive income (loss) before reclassifications (201) 115 4 10 (72) Amounts reclassified from accumulated other comprehensive income (13) (41) — (54) (108) Net current period other comprehensive income (loss) (214) 74 4 (44) (180) Balance at December 31, 2020 $ (2,780) $ (601) $ 4 $ — $ (3,377) Other comprehensive income (loss) before reclassifications 314 268 (3) 17 596 Amounts reclassified from accumulated other comprehensive income (12) (82) — (20) (114) Net current period other comprehensive income (loss) 302 186 (3) (3) 482 Balance at December 31, 2021 $ (2,478) $ (415) $ 1 $ (3) $ (2,895) Other comprehensive income (loss) before reclassifications (344) (623) (8) 71 (904) Amounts reclassified from accumulated other comprehensive income (10) 390 — (56) 324 Net current period other comprehensive income (loss) (354) (233) (8) 15 (580) Balance at December 31, 2022 $ (2,832) $ (648) $ (7) $ 12 $ (3,475) RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Year Ended December 31, 2022 Affected Line in the Consolidated Statement of Operations Net Sales Cost of Cost of Selling, Other Interest and Total Amortization of pension and other postretirement benefit items: Actuarial losses recognized $ — $ — $ — $ — $ 516 $ — $ 516 Prior service (credit) recognized — — — — (84) — (84) Losses (gains) on cash flow hedges (13) (48) (14) 3 — — (72) Losses (gains) on excluded component of net investment hedges — — — — — (13) (13) Total before tax $ (13) $ (48) $ (14) $ 3 $ 432 $ (13) $ 347 Tax expense (benefit) (23) Total reclassifications for the period, net of tax $ 324 Year Ended December 31, 2021 Affected Line in the Consolidated Statement of Operations Net Sales Cost of Cost of Selling, Other Interest Total Amortization of pension and other postretirement benefit items: Actuarial losses recognized $ — $ — $ — $ — $ 7 $ — $ 7 Prior service (credit) recognized — — — — (116) — (116) Losses (gains) on cash flow hedges (5) (8) (2) (9) — — (24) Losses (gains) on excluded component of net investment hedges — — — — — (16) (16) Total before tax $ (5) $ (8) $ (2) $ (9) $ (109) $ (16) $ (149) Tax expense (benefit) 35 Total reclassifications for the period, net of tax $ (114) Year Ended December 31, 2020 Affected Line in the Consolidated Statement of Operations Net Sales Cost of Cost of Selling, Other Interest Total Amortization of pension and other postretirement benefit items: Actuarial losses recognized $ — $ — $ — $ — $ 57 $ — $ 57 Prior service (credit) recognized — — — — (108) — (108) Losses (gains) on cash flow hedges 3 (43) (11) 4 (28) — (75) Losses (gains) on excluded component of net investment hedges — — — — — (18) (18) Total before tax $ 3 $ (43) $ (11) $ 4 $ (79) $ (18) $ (144) Tax expense (benefit) 36 Total reclassifications for the period, net of tax $ (108) |
CAPITAL STOCK
CAPITAL STOCK | 12 Months Ended |
Dec. 31, 2022 | |
Class of Stock Disclosures [Abstract] | |
CAPITAL STOCK | CAPITAL STOCK The Company is authorized to issue up to 2,000,000,000 shares of common stock, with a par value of $1. Common shareowners are entitled to receive such dividends as may be declared by the Board of Directors, are entitled to one vote per share, and are entitled, in the event of liquidation, to share ratably in all the assets of the Company which are available for distribution to the common shareowners. Common shareowners do not have preemptive or conversion rights. Shares of common stock issued and outstanding or held in the treasury are not liable to further calls or assessments. There are no restrictions on the Company relative to dividends or the repurchase or redemption of common stock. On February 12, 2021, the Board of Directors authorized the repurchase of up to a total of $10 billion of Honeywell common stock, which included $2.8 billion remaining under, and replaced, the previously approved share repurchase program. Approximately $2.9 billion and $7.1 billion remained available as of December 31, 2022, and 2021, respectively, for additional share repurchases. Honeywell repurchased approximately 21.9 million and 15.8 million shares of its common stock during the years ended December 31, 2022, and 2021, for $4.2 billion and $3.4 billion, respectively. The Company is authorized to issue up to 40,000,000 shares of preferred stock, without par value, and can determine the number of shares of each series, and the rights, preferences, and limitations of each series. At December 31, 2022, there was no preferred stock outstanding. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES ENVIRONMENTAL MATTERS The Company is subject to various federal, state, local, and foreign government requirements relating to the protection of the environment. The Company believes that, as a general matter, the Company's policies, practices, and procedures are properly designed to prevent unreasonable risk of environmental damage and personal injury and that the handling, manufacture, use, and disposal of hazardous substances are in accordance with environmental and safety laws and regulations. However, mainly because of past operations and operations of predecessor companies, the Company, like other companies engaged in similar businesses, incurred remedial response and voluntary cleanup costs for site contamination and is a party to lawsuits and claims associated with environmental and safety matters, including past production of products containing hazardous substances. Additional lawsuits, claims, and costs involving environmental matters are likely to continue to arise in the future. With respect to environmental matters involving site contamination, the Company continually conducts studies, individually or jointly with other potentially responsible parties, to determine the feasibility of various remedial techniques. It is the Company's policy to record appropriate liabilities for environmental matters when remedial efforts or damage claim payments are probable and the costs can be reasonably estimated. Such liabilities are based on our best estimate of the undiscounted future costs required to complete the remedial work. The recorded liabilities are adjusted periodically as remediation efforts progress or as additional technical, regulatory, or legal information becomes available. Given the uncertainties regarding the status of laws, regulations, enforcement policies, the impact of other potentially responsible parties, technology, and information related to individual sites, the Company does not believe it is possible to develop an estimate of the range of reasonably possible environmental loss in excess of the Company's recorded liabilities. The Company expects to fund expenditures for these matters from operating cash flow. The timing of cash expenditures depends on a number of factors, including the timing of remedial investigations and feasibility studies, the timing of litigation and settlements of remediation liability, personal injury and property damage claims, regulatory approval of cleanup projects, remedial techniques to be utilized, and agreements with other parties. The following table summarizes information concerning the Company's recorded liabilities for environmental costs: Years Ended December 31, 2022 2021 2020 Beginning of year $ 618 $ 660 $ 709 Accruals for environmental matters deemed probable and reasonably estimable 186 168 173 Environmental liability payments (211) (210) (216) Other 22 — (6) End of year $ 615 $ 618 $ 660 Environmental liabilities are included in the following balance sheet accounts: December 31, 2022 2021 Accrued liabilities $ 222 $ 225 Other liabilities 393 393 $ 615 $ 618 The Company does not currently possess sufficient information to reasonably estimate the amounts of environmental liabilities to be recorded upon future completion of studies, litigation, or settlements, and neither the timing nor the amount of the ultimate costs associated with environmental matters can be determined, although they could be material to the Company's consolidated results of operations and operating cash flows in the periods recognized or paid. However, considering the Company's past experience and existing reserves, the Company does not expect that environmental matters will have a material adverse effect on its consolidated financial position. In conjunction with the Resideo spin-off, the Company entered into an indemnification and reimbursement agreement with a Resideo subsidiary, pursuant to which Resideo’s subsidiary has an ongoing obligation to make cash payments to Honeywell in amounts equal to 90% of Honeywell’s annual net spending for environmental matters at certain sites as defined in the agreement. The amount payable to Honeywell in any given year is subject to a cap of $140 million, and the obligation will continue until the earlier of December 31, 2043, or December 31 of the third consecutive year during which the annual payment obligation is less than $25 million. Reimbursements associated with this agreement are collected from Resideo quarterly and were $140 million in both 2022 and 2021 and offset operating cash outflows incurred by the Company. As the Company incurs costs for environmental matters deemed probable and reasonably estimable related to the sites covered by the indemnification and reimbursement agreement, a corresponding receivable from Resideo for 90% of such costs is also recorded. This receivable amount recorded in 2022 and 2021 was $157 million and $146 million, respectively. As of December 31, 2022, Other current assets and Other assets included $140 million and $474 million, respectively, for the short-term and long-term portion of the receivable amount due from Resideo under the indemnification and reimbursement agreement. As of December 31, 2021, Other current assets and Other assets included $140 million and $457 million, respectively, for the short-term and long-term portion of the receivable amount due from Resideo under the indemnification and reimbursement agreement. ASBESTOS MATTERS Honeywell is named in asbestos-related personal injury claims related to NARCO, which was sold in 1986, and the Bendix Friction Materials (Bendix) business, which was sold in 2014. The following tables summarize information concerning NARCO and Bendix asbestos-related balances: ASBESTOS-RELATED LIABILITIES Year Ended December 31, 2022 Year Ended December 31, 2021 Year Ended December 31, 2020 Bendix NARCO Total Bendix NARCO Total Bendix NARCO Total Beginning of year $ 1,372 $ 689 $ 2,061 $ 1,441 $ 779 $ 2,220 $ 1,499 $ 858 $ 2,357 Accrual for update to estimated liability 93 (634) (541) 64 31 95 80 18 98 Change in estimated cost of future claims 41 — 41 29 — 29 42 — 42 Update of expected resolution values for pending claims 1 — 1 3 — 3 10 — 10 Asbestos-related liability payments (216) (55) (271) (165) (121) (286) (190) (97) (287) NARCO Buyout — 1,325 1,325 — — — — — — End of year $ 1,291 $ 1,325 $ 2,616 $ 1,372 $ 689 $ 2,061 $ 1,441 $ 779 $ 2,220 INSURANCE RECOVERIES FOR ASBESTOS-RELATED LIABILITIES Year Ended December 31, 2022 Year Ended December 31, 2021 Year Ended December 31, 2020 Bendix NARCO Total Bendix NARCO Total Bendix NARCO Total Beginning of year $ 142 $ 221 $ 363 $ 148 $ 254 $ 402 $ 153 $ 281 $ 434 Probable insurance recoveries related to estimated liability 5 2 7 7 — 7 10 — 10 Insurance receipts for asbestos-related liabilities (17) (20) (37) (13) (33) (46) (33) (25) (58) Insurance receivables settlements and write-offs — (68) (68) — — — 18 (2) 16 End of year $ 130 $ 135 $ 265 $ 142 $ 221 $ 363 $ 148 $ 254 $ 402 NARCO and Bendix asbestos-related balances are included in the following balance sheet accounts: December 31, 2022 2021 Other current assets $ 41 $ 41 Insurance recoveries for asbestos-related liabilities 224 322 $ 265 $ 363 Accrued liabilities $ 1,436 $ 261 Asbestos-related liabilities 1,180 1,800 $ 2,616 $ 2,061 NARCO Products – NARCO manufactured high-grade, heat-resistant, refractory products for various industries. Honeywell’s predecessor, Allied Corporation, owned NARCO from 1979 to 1986. Allied Corporation sold the NARCO business in 1986 and entered into a cross-indemnity agreement which included an obligation to indemnify the purchaser for asbestos claims, arising primarily from alleged occupational exposure to asbestos-containing refractory brick and mortar for high-temperature applications. NARCO ceased manufacturing these products in 1980 and filed for bankruptcy in January 2002, at which point in time all then current and future NARCO asbestos claims were stayed against both NARCO and Honeywell pending the reorganization of NARCO. The Company established its initial liability for NARCO asbestos claims in 2002. NARCO emerged from bankruptcy in April 2013, at which time a federally authorized 524(g) trust was established to evaluate and resolve all existing NARCO asbestos claims (the Trust). Both Honeywell and NARCO are protected by a permanent channeling injunction barring all present and future individual actions in state or federal courts and requiring all asbestos-related claims based on exposure to NARCO asbestos-containing products to be made against the Trust (Channeling Injunction). The NARCO Trust Agreement (TA) and the NARCO Trust Distribution Procedures (TDP) set forth the structure and operating rules of the Trust, and established Honeywell’s evergreen funding obligations. The operating rules per the TDP define criteria claimants must meet for a claim to be considered valid and paid. Once operational in 2014, the Trust began to receive, process, and pay claims. In September 2021, Honeywell filed suit against the Trust in the United States Bankruptcy Court for the Western District of Pennsylvania (Bankruptcy Court) alleging that the Trust breached its duties in managing the Trust, including breaches of certain provisions of the TA and TDP. Honeywell's lawsuit sought appropriate relief preventing the Trust from continuing these practices. The Trust also filed suit against Honeywell, alleging Honeywell breached its obligations under the Trust's governing documents. Honeywell moved to dismiss the Trust’s suit, and on December 15, 2021, the Bankruptcy Court granted Honeywell’s motion to dismiss subject to granting the Trust leave to file an amended complaint. On December 28, 2021, the Trust filed an answer with counterclaims in response to Honeywell’s complaint and in lieu of filing an amended complaint. The Bankruptcy Court conducted a trial on these matters during May 2022; following the trial, the Company and the Trust began discussing a potential settlement of Honeywell’s remaining obligations to the Trust. On November 18, 2022, Honeywell entered into a definitive agreement (Buyout Agreement) with the Trust, and on November 20, 2022, in exchange for the NARCO Trust Advisory Committee (TAC) and Lawrence Fitzpatrick, in his capacity as the NARCO Asbestos Future Claimants Representative (FCR), becoming parties to the Buyout Agreement, Honeywell, the Trust, the TAC, and the FCR entered into an Amended and Restated Buyout Agreement (Amended Buyout Agreement). Pursuant to the terms of the Amended Buyout Agreement, Honeywell agreed to make a one-time, lump sum payment in the amount of $1.325 billion to the Trust (Buyout Amount), subject to certain deductions as described in the Amended Buyout Agreement and in exchange for the release by the Trust of Honeywell from all further and future obligations of any kind related to the Trust and/or any claimants who were exposed to asbestos-containing products manufactured, sold, or distributed by NARCO or its predecessors, including Honeywell’s ongoing evergreen obligation to fund (i) claims against the Trust, which comprise Honeywell’s NARCO asbestos-related claims liability, and (ii) the Trust’s annual operating expenses, which are expensed as incurred, including its legal fees (which operating expenses, for reference, were approximately $30 million in 2022) (such evergreen obligations referred to in (i) and (ii), Honeywell Obligations) (the NARCO Buyout). On December 8, 2022, the Bankruptcy Court issued an order that (A) approved the Amended Buyout Agreement, and (B) declared that the NARCO Channeling Injunction (which bars all past, present, and future individual actions in state or federal courts based on exposure to NARCO asbestos-containing products and requires all such claims to be made against the Trust) will remain in full force and effect without modification, dissolution, or termination (Order). On December 14, 2022, HWI, the reorganized and renamed entity that emerged from the NARCO bankruptcy, entered into a definitive agreement (Sale Agreement) pursuant to which an affiliate of Platinum Equity, LLC will acquire HWI (HWI Sale) subject to the terms set forth in the Sale Agreement, including customary conditions to closing set forth therein. In accordance with the Amended Buyout Agreement, the economic rights of the Trust in respect of the net proceeds from the HWI Sale inure to the benefit of Honeywell. On January 30, 2023, the Company paid the Buyout Amount to the Trust, the parties closed the transactions contemplated in the Amended Buyout Agreement (Closing), and Honeywell was released from the Honeywell Obligations. Honeywell continues to have the right to collect proceeds in connection with its NARCO asbestos-related insurance policies. With the issuance of the Order, the Company derecognized the NARCO asbestos-related liability of $688 million from the Consolidated Balance Sheet and recognized a charge of $1.325 billion in the Consolidated Statement of Operations and accrued a corresponding liability in the Consolidated Balance Sheet for the Buyout Amount. In addition, the Company recognized a benefit of $295 million in the Consolidated Statement of Operations and corresponding asset in Other current assets in the Consolidated Balance Sheet for Honeywell's rights to the proceeds from the HWI Sale. The benefit of $295 million offset the charge for the Buyout Amount. Bendix Products – Bendix manufactured automotive brake linings that contained chrysotile asbestos in an encapsulated form. Claimants consist largely of individuals who allege exposure to asbestos from brakes from either performing or being in the vicinity of individuals who performed brake replacements. The following tables present information regarding Bendix related asbestos claims activity: Claims activity Years Ended December 31, 2022 2021 Claims unresolved at the beginning of year 6,401 6,242 Claims filed 2,014 2,611 Claims resolved (2,807) (2,452) Claims unresolved at the end of year 5,608 6,401 Disease distribution of unresolved claims Years Ended December 31, 2022 2021 Mesothelioma and other cancer claims 3,283 3,760 Nonmalignant claims 2,325 2,641 Total claims 5,608 6,401 Honeywell has experienced average resolution values per claim excluding legal costs as follows: Years Ended December 31, 2022 2021 2020 2019 2018 (in whole dollars) Malignant claims $ 59,200 $ 56,000 $ 61,500 $ 50,200 $ 55,300 Nonmalignant claims $ 520 $ 400 $ 550 $ 3,900 $ 4,700 It is not possible to predict whether resolution values for Bendix-related asbestos claims will increase, decrease, or stabilize in the future. The Consolidated Financial Statements reflect an estimated liability for resolution of asserted (claims filed as of the financial statement date) and unasserted Bendix-related asbestos claims, which exclude the Company’s ongoing legal fees to defend such asbestos claims which will continue to be expensed as they are incurred. The Company reflects the inclusion of all years of epidemiological disease projection through 2059 when estimating the liability for unasserted Bendix-related asbestos claims. Such liability for unasserted Bendix-related asbestos claims is based on historic and anticipated claims filing experience and dismissal rates, disease classifications, and resolution values in the tort system for the previous five years. The Company valued Bendix asserted and unasserted claims using average resolution values for the previous five years. The Company updates the resolution values used to estimate the cost of Bendix asserted and unasserted claims during the fourth quarter each year. The Company's insurance receivable corresponding to the liability for settlement of asserted and unasserted Bendix asbestos claims reflects coverage which is provided by a large number of insurance policies written by dozens of insurance companies in both the domestic insurance market and the London excess market. Based on the Company's ongoing analysis of the probable insurance recovery, insurance receivables are recorded in the financial statements simultaneous with the recording of the estimated liability for the underlying asbestos claims. This determination is based on the Company's analysis of the underlying insurance policies, historical experience with insurers, ongoing review of the solvency of insurers, judicial determinations relevant to insurance programs, and consideration of the impacts of any settlements reached with the Company's insurers. On October 31, 2018, David Kanefsky (Plaintiff), a Honeywell shareholder, filed a putative class action complaint in the U.S. District Court for the District of New Jersey (the Court) alleging violations of the Securities Exchange Act of 1934 and Rule 10b-5 related to the prior accounting for Bendix asbestos claims. An Amended Complaint was filed on December 30, 2019, and on February 7, 2020, the Company filed a Motion to Dismiss. On May 18, 2020, the Court denied the Motion to Dismiss. On December 7, 2021, the parties filed a Stipulation of Settlement (Settlement Agreement) and Plaintiff filed a motion for preliminary approval of the Settlement Agreement, which included payment by Honeywell of $10 million to settle the claims in dispute. On January 18, 2022, the Court approved the motion for preliminary approval of the Settlement Agreement. On May 3, 2022, the Court entered a final judgment and order approving the Settlement Agreement and dismissed the action. Honeywell continues to believe the claims lacked merit and has denied wrongdoing as well as any liability for the claims made against Honeywell in the action. GARRETT LITIGATION AND BANKRUPTCY PROCEEDINGS In conjunction with the Garrett spin-off, the Company entered into a binding indemnification and reimbursement agreement (Garrett Indemnity) and a binding tax matters agreement (Tax Matters Agreement) with Garrett and a Garrett subsidiary. On December 2, 2019, Garrett and Garrett ASASCO Inc. filed a Summons with Notice and commenced a lawsuit in the Commercial Division of the Supreme Court of the State of New York, County of New York (the State Court), seeking to invalidate the Garrett Indemnity. Garrett sought damages and a declaratory judgment based on various claims set forth in the Summons with Notice. On July 17, 2020, the Company received a notice from Garrett asserting that the Company had caused material breaches of the Tax Matters Agreement and that the Tax Matters Agreement was unenforceable. On September 20, 2020, Garrett and 36 of its affiliates filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York (the Bankruptcy Court). On September 24, 2020, Garrett moved the existing State Court litigation against Honeywell to the Bankruptcy Court. For the year ended December 31, 2020, the Company reviewed the aggregate carrying value of the receivable amounts due in connection with the Garrett Indemnity and Tax Matters Agreement and reduced the aggregate carrying value of the receivable by $509 million to reflect the present value of the amounts owed to the Company over the full term of these agreements. On April 26, 2021, the Bankruptcy Court confirmed Garrett’s amended Chapter 11 plan of reorganization (the Confirmed Plan), and on April 30, 2021 (the Effective Date), Garrett emerged from bankruptcy. On the Effective Date, and in accordance with the Confirmed Plan, (i) the Company received from Garrett an initial payment of $375 million and 834.8 million shares of Garrett's Series B Preferred Stock in full and final satisfaction of the Garrett Indemnity and Tax Matters Agreement, (ii) the Garrett Indemnity and Tax Matters Agreement were terminated, (iii) the Company and Garrett mutually released each other from the claims asserted in all pending legal actions related to the Garrett Indemnity and Tax Matters Agreement, and (iv) all pending litigation between the Company and Garrett in connection with those agreements was resolved. The original Series B Preferred Stock Certificate of Designation provided for mandatory redemptions by Garrett of $35 million in 2022 and $100 million per year from 2023 to 2030 (inclusive) at the anniversary of the Effective Date, unless (i) Garrett’s consolidated EBITDA as of the end of the most recently completed fiscal year was less than $425 million, or (ii) Garrett did not have sufficient funds available to pay the redemption, at which point the redemption amounts past due would accrue interest. The Series B Preferred Stock Certificate of Designation also included rights which allowed (a) the Company to put the Series B Preferred Stock to Garrett if certain EBITDA conditions were met, and (b) Garrett to call the Series B Preferred Stock in whole or in part if certain EBITDA conditions were met. On September 30, 2021, Garrett filed an Amended and Restated Series B Preferred Stock Certificate of Designation (Amendment) with the Secretary of State of Delaware. The Amendment required Garrett to partially redeem a portion of the Series B Preferred Stock on or before March 31, 2022, such that the present value of remaining outstanding shares of the Series B Preferred Stock would be $400 million (First Partial Redemption), subject to applicable law, including that Garrett had funds legally available for the partial redemption. The First Partial Redemption would be applied to the latest scheduled redemption dates, beginning with the shares to be redeemed in 2030. The Amendment also provided that the Company could not exercise its right to put the Series B Preferred Stock to Garrett until after December 31, 2022, subject to the EBITDA conditions described in the above section, unless the partial redemption did not occur on or before March 31, 2022. All other material terms and conditions in the Amendment were unchanged from the original Series B Preferred Stock Certificate of Designation. On December 16, 2021, Garrett filed a Second Amended and Restated Series B Preferred Stock Certificate of Designation (Second Amendment) with the Secretary of State of Delaware. The Second Amendment accelerated the First Partial Redemption from March 31, 2022, to December 30, 2021, and allowed Garrett to partially redeem an additional portion of the Series B Preferred Stock on or before March 31, 2022, such that the present value of remaining outstanding shares of the Series B Preferred Stock would be $207 million (Second Partial Redemption). The Second Partial Redemption is subject to similar terms as the First Partial Redemption, including that Garrett had funds legally available for the partial redemption. However, the Second Partial Redemption was also contingent upon Garrett completing the First Partial Redemption and either (i) increasing their revolving credit facility, or (ii) the Garrett Board of Directors determining that Garrett otherwise had sufficient liquidity to effect the Second Partial Redemption. The Second Partial Redemption would be applied to the earliest scheduled redemptions beginning with the shares to be redeemed on April 30, 2022. On December 17, 2021, Garrett announced their intention to effect the First Partial Redemption on December 28, 2021, in the amount of $211 million. On December 28, 2021, Garrett paid $211 million for the amount due as the First Partial Redemption. On February 18, 2022, Garrett early redeemed $197 million of the Series B Preferred Stock, pursuant to the terms and conditions of the Second Amended and Restated Series B Preferred Stock Certificate of Designation. Immediately following the early redemption, the fair value of the Series B Preferred Stock was $207 million. On June 28, 2022, Garrett early redeemed all remaining shares of the Series B Preferred Stock in the amount of $212 million, pursuant to the terms and conditions of the Second Amended and Restated Series B Preferred Stock Certificate of Designation. Following the redemption, the Series B Preferred Stock were no longer outstanding. The Company recorded the Series B Preferred Stock at fair value at the Effective Date. See Note 12 Fair Value Measurements for additional information on the fair value leveling of the Series B Preferred Stock. PETROBRAS AND UNAOIL MATTERS On December 19, 2022, the Company reached a comprehensive resolution to the investigations by the U.S. Department of Justice (DOJ), the Securities and Exchange Commission (SEC), and certain Brazilian authorities (Brazilian Authorities) relating to the Company's use of third parties who previously worked for the Company's UOP business in Brazil in relation to a project awarded in 2010 for Petróleo Brasileiro S.A. (Petrobras). The investigations focused on the Company’s compliance with the U.S. Foreign Corrupt Practices Act and similar Brazilian laws (UOP Matters). The comprehensive resolution also resolves DOJ and SEC investigations relating to a matter involving a foreign subsidiary’s prior contract with Unaoil S.A.M. in Algeria executed in 2011 (the Unaoil Matter). In connection with the comprehensive resolution, (i) the Company agreed to pay a total equivalent of $202.7 million, which payment occurred in January 2023, to the DOJ, the SEC, and the Brazilian Authorities, collectively, in penalties, disgorgement, and prejudgment interest, (ii) the Company’s subsidiary, UOP, LLC (UOP), entered into a three-year Deferred Prosecution Agreement (DPA) with the DOJ for charges related to the UOP Matters, (iii) UOP entered into leniency agreements with the Brazilian authorities related to the UOP Matter in Brazil, and (iv) the Company entered into an agreement with the SEC that resolves allegations relating to the UOP Matters and the Unaoil Matter. Pursuant to these agreements, the Company agreed to undertake certain compliance measures and compliance reporting obligations. These agreements entirely resolve the Petrobras and Unaoil investigations. The Company previously recorded a total of $210 million of charges related to these matters in the Consolidated Statement of Operations, and accrued a corresponding reserve on its Consolidated Balance Sheet. Following the resolution, in December 2022, the Company reduced its previously recorded reserve to $205 million, based on expected payment amounts at that time. OTHER MATTERS The Company is subject to a number of other lawsuits, investigations, and disputes (some of which involve substantial amounts claimed) arising out of the conduct of the Company's business, including matters relating to commercial transactions, government contracts, product liability, prior acquisitions and divestitures, employee benefit plans, intellectual property, and environmental, health, and safety matters. The Company recognizes liabilities for any contingency that is probable of occurrence and reasonably estimable. The Company continually assesses the likelihood of adverse judgments or outcomes in such matters, as well as potential ranges of probable losses (taking into consideration any insurance recoveries), based on a careful analysis of each matter with the assistance of outside legal counsel and, if applicable, other experts. Given the uncertainty inherent in litigation and investigations, the Company does not believe it is possible to develop estimates of reasonably possible loss (or a range of possible loss) in excess of current accruals for commitment and contingency matters, including those discussed in this Note 19. Considering the Company's past experience and existing accruals, the Company does not expect the outcome of such matters, either individually or in the aggregate, to have a material adverse effect on the Company's consolidated financial position. Because most contingencies are resolved over long periods of time, potential liabilities are subject to change due to new developments, changes in settlement strategy or the impact of evidentiary requirements, which could cause the Company to pay damage awards or settlements (or become subject to equitable remedies) that could have a material adverse effect on the Company's consolidated results of operations or operating cash flows in the periods recognized or paid. WARRANTIES AND GUARANTEES In the normal course of business, the Company issues product warranties and product performance guarantees. The Company accrues for the estimated cost of product warranties and performance guarantees based on contract terms and historical experience at the time of sale. Adjustments to initial obligations for warranties and guarantees are made as changes to the obligations become reasonably estimable. The following table summarizes information concerning the Company's recorded obligations for product warranties and product performance guarantees: Years Ended December 31, 2022 2021 2020 Beginning of year $ 223 $ 243 $ 269 Accruals for warranties/guarantees issued during the year 117 146 164 Adjustment of pre-existing warranties/guarantees (12) (7) (18) Settlement of warranty/guarantee claims (115) (159) (172) End of year $ 213 $ 223 $ 243 Product warranties and product performance guarantees are included in the following balance sheet accounts: December 31, 2022 2021 Accrued liabilities $ 175 $ 180 Other liabilities 38 43 $ 213 $ 223 |
PENSION AND OTHER POSTRETIREMEN
PENSION AND OTHER POSTRETIREMENT BENEFITS | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
PENSION AND OTHER POSTRETIREMENT BENEFITS | PENSION AND OTHER POSTRETIREMENT BENEFITS The Company sponsors a number of both funded and unfunded U.S. and non-U.S. defined benefit pension plans. Pension benefits for many of the Company's U.S. employees are provided through non-contributory, qualified, and non-qualified defined benefit plans. All non-union hourly and salaried employees joining Honeywell for the first time after December 31, 2012, are not eligible to participate in Honeywell’s U.S. defined benefit pension plans. The Company also sponsors defined benefit pension plans which cover non-U.S. employees who are not U.S. citizens, in certain jurisdictions, principally the UK, Netherlands, Germany, and Canada. Other pension plans outside of the U.S. are not material to the Company either individually or in the aggregate. The Company also sponsors postretirement benefit plans that provide health care benefits and life insurance coverage mainly to U.S. eligible retirees. None of Honeywell’s U.S. employees are eligible for a retiree medical subsidy from the Company. In addition, the vast majority of Honeywell’s U.S. retirees either have no Company subsidy or have a fixed-dollar subsidy amount. This significantly limits the Company's exposure to the impact of future health care cost increases. The retiree medical and life insurance plans are not funded. Claims and expenses are paid from the Company's cash flows from operations. The following tables summarize the balance sheet impact, including the benefit obligations, assets, and funded status associated with the Company's significant pension and other postretirement benefit plans: Pension Benefits U.S. Plans Non-U.S. Plans 2022 2021 2022 2021 Change in benefit obligation: Benefit obligation at beginning of year $ 17,391 $ 18,054 $ 6,999 $ 7,670 Service cost 86 105 19 26 Interest cost 380 306 103 77 Plan amendments — — — (3) Actuarial (gains) losses (1) (3,135) 141 (1,929) (403) Benefits paid (1,421) (1,221) (261) (249) Settlements and curtailments (13) — — — Foreign currency translation — — (533) (121) Other 2 6 2 2 Benefit obligation at end of year 13,290 17,391 4,400 6,999 Change in plan assets: Fair value of plan assets at beginning of year 20,560 20,396 8,396 8,450 Actual return on plan assets (2,161) 1,344 (2,187) 166 Company contributions 37 35 17 101 Benefits paid (1,421) (1,221) (261) (249) Settlements and curtailments (13) — — — Foreign currency translation — — (664) (74) Other 3 6 3 2 Fair value of plan assets at end of year 17,005 20,560 5,304 8,396 Funded status of plans $ 3,715 $ 3,169 $ 904 $ 1,397 Amounts recognized in the Consolidated Balance Sheet consist of: Prepaid pension benefit cost (2) $ 3,970 $ 3,528 $ 1,356 $ 2,105 Accrued pension liabilities—current (3) (28) (33) (14) (14) Accrued pension liabilities—noncurrent (4) (227) (326) (438) (694) Net amount recognized $ 3,715 $ 3,169 $ 904 $ 1,397 (1) The actuarial gains incurred in 2022 related to the Company's U.S. plans are primarily the result of an increase in the discount rate assumption, partially offset by actuarial losses primarily as a result of changes in demographic experience and demographic assumptions used to estimate the benefit obligations as of December 31, 2022, compared to December 31, 2021. Actuarial gains incurred in 2022 related to the Company's non-U.S. plans are primarily the result of an increase in the discount rate assumption, partially offset by inflation related assumptions used to estimate the benefit obligations as of December 31, 2022, compared to December 31, 2021. Actuarial losses incurred in 2021 related to the Company's U.S. plans are primarily the result of changes in demographic experience and demographic assumptions, partially offset by actuarial gains due to an increase in the discount rate assumption used to estimate the benefit obligations as of December 31, 2021, compared to December 31, 2020. Actuarial gains incurred in 2021 related to the Company's non-U.S. plans are primarily the result of an increase in the discount rate assumption used to estimate the benefit obligations as of December 31, 2021, compared to December 31, 2020. (2) Included in Other assets in the Consolidated Balance Sheet. (3) Included in Accrued liabilities in the Consolidated Balance Sheet. (4) Included in Other liabilities in the Consolidated Balance Sheet. Other 2022 2021 Change in benefit obligation: Benefit obligation at beginning of year $ 196 $ 229 Service cost — — Interest cost 5 5 Plan amendments — — Actuarial (gains) losses (54) (8) Benefits paid (14) (30) Benefit obligation at end of year 133 196 Change in plan assets: Fair value of plan assets at beginning of year — — Actual return on plan assets — — Company contributions — — Benefits paid — — Fair value of plan assets at end of year — — Funded status of plans $ (133) $ (196) Amounts recognized in the Consolidated Balance Sheet consist of: Accrued liabilities $ (21) $ (25) Postretirement benefit obligations other than pensions (1) (112) (171) Net amount recognized $ (133) $ (196) (1) Excludes non-U.S. plan of $34 million and $37 million as of December 31, 2022, and 2021, respectively. Amounts recognized in Accumulated other comprehensive (income) loss associated with the Company's significant pension and other postretirement benefit plans at December 31, 2022, and 2021, are as follows: Pension Benefits U.S. Plans Non-U.S. Plans 2022 2021 2022 2021 Prior service (credit) cost $ (50) $ (92) $ 18 $ 20 Net actuarial (gain) loss 814 492 360 397 Net amount recognized $ 764 $ 400 $ 378 $ 417 Other 2022 2021 Prior service (credit) cost $ (50) $ (92) Net actuarial (gain) loss (84) (34) Net amount recognized $ (134) $ (126) The components of net periodic benefit (income) cost and other amounts recognized in Other comprehensive (income) loss for the Company's significant pension and other postretirement benefit plans include the following components: Net periodic benefit (income) cost Pension Benefits U.S. Plans Non-U.S. Plans 2022 2021 2020 2022 2021 2020 Service cost $ 86 $ 105 $ 99 $ 19 $ 26 $ 23 Interest cost 380 306 461 103 77 106 Expected return on plan assets (1,281) (1,220) (1,135) (278) (348) (336) Amortization of prior service (credit) cost (42) (42) (42) — — — Recognition of actuarial (gains) losses (14) 31 26 537 9 18 Settlements and curtailments (2) — 4 — — — Net periodic benefit (income) cost $ (873) $ (820) $ (587) $ 381 $ (236) $ (189) Other changes in plan assets and benefit obligations recognized in Other comprehensive (income) loss U.S. Plans Non-U.S. Plans 2022 2021 2020 2022 2021 2020 Actuarial (gains) losses $ 307 $ (14) $ (9) $ 294 $ (221) $ (73) Prior service (credit) cost — — — — (3) 2 Prior service credit recognized during year 43 43 42 (1) (1) — Actuarial (gains) losses recognized during year 15 — (30) (537) (9) (18) Foreign currency translation — — — 204 (1) 19 Total recognized in Other comprehensive (income) loss $ 365 $ 29 $ 3 $ (40) $ (235) $ (70) Total recognized in net periodic benefit (income) cost and Other comprehensive (income) loss $ (508) $ (791) $ (584) $ 341 $ (471) $ (259) Net periodic benefit (income) cost Other Postretirement Benefits Years Ended December 31, 2022 2021 2020 Service cost $ — $ — $ — Interest cost 5 5 8 Amortization of prior service (credit) cost (42) (74) (66) Recognition of actuarial (gains) losses (4) (2) — Net periodic benefit (income) cost $ (41) $ (71) $ (58) Other changes in plan assets and benefit obligations Years Ended December 31, 2022 2021 2020 Actuarial (gains) losses $ (54) $ (8) $ (8) Prior service (credit) cost — — (65) Prior service credit recognized during year 42 74 66 Actuarial (gains) losses recognized during year 4 2 — Total recognized in other comprehensive (income) loss $ (8) $ 68 $ (7) Total recognized in net periodic benefit (income) cost and Other comprehensive (income) loss $ (49) $ (3) $ (65) Major actuarial assumptions used in determining the benefit obligations and net periodic benefit (income) cost for the Company's significant benefit plans are presented in the following table as weighted averages: Pension Benefits U.S. Plans Non-U.S. Plans 2022 2021 2020 2022 2021 2020 Actuarial assumptions used to determine benefit obligations as of December 31: Discount rate 5.17 % 2.87 % 2.50 % 4.50 % 1.79 % 1.23 % Expected annual rate of compensation increase 3.25 % 3.25 % 3.25 % 2.69 % 2.56 % 2.43 % Actuarial assumptions used to determine net periodic benefit (income) cost for years ended December 31: Discount rate—benefit obligation 2.87 % 2.50 % 3.22 % 1.77 % 1.24 % 1.81 % Discount rate—service cost 2.98 % 2.68 % 3.33 % 1.48 % 1.00 % 1.48 % Discount rate—interest cost 2.26 % 1.76 % 2.76 % 1.59 % 1.00 % 1.56 % Expected rate of return on plan assets 6.40 % 6.15 % 6.15 % 3.61 % 4.03 % 4.66 % Expected annual rate of compensation increase 3.25 % 3.25 % 3.25 % 2.56 % 2.43 % 2.47 % Other Postretirement Benefits 2022 2021 2020 Actuarial assumptions used to determine benefit obligations as of December 31: Discount rate 5.32 % 2.66 % 2.20 % Actuarial assumptions used to determine net periodic benefit cost for years ended December 31: Discount rate (1) 2.66 % 2.20 % 2.36 % (1) Discount rate was 3.03% for January 1, 2020, through September 30, 2020. The rate was changed to 2.36% for the remainder of 2020 due to a Plan remeasurement as of October 1, 2020. The discount rate for the Company's U.S. pension and other postretirement benefits plans reflects the current rate at which the associated liabilities could be settled at the measurement date of December 31. To determine discount rates for the Company's U.S. pension and other postretirement benefit plans, the Company uses a modeling process that involves matching the expected cash outflows of the Company's benefit plans to a yield curve constructed from a portfolio of high-quality, fixed income debt instruments. The Company uses the single weighted average yield of this hypothetical portfolio as a discount rate benchmark. The Company utilizes a full yield curve approach in the estimation of the service and interest cost components of net periodic pension benefit (income) for the Company's significant pension plans. This approach applies the specific spot rates along the yield curve used in the determination of the pension benefit obligation to their underlying projected cash flows and provides a more precise measurement of service and interest costs by improving the correlation between projected cash flows and their corresponding spot rates. For the Company's U.S. pension plans, the single weighted average spot rates used to determine service and interest costs for 2023 are 5.26% and 5.07%, respectively. The discount rate used to determine the other postretirement benefit obligation is higher principally due to a shorter expected duration of other postretirement plan obligations as compared to pension plan obligations. The Company plans to use an expected rate of return on U.S. plan assets of 6.75% for 2023, which represents an increase from the 6.40% assumption used for 2022. The Company's asset return assumption is based on historical plan asset returns over varying long-term periods combined with current market conditions and broad asset mix considerations with a focus on long-term trends rather than short-term market conditions. The Company reviews the expected rate of return on an annual basis and revise it as appropriate. For non-U.S. benefit plans, actuarial assumptions reflect economic and market factors relevant to each country. PENSION BENEFITS The following amounts relate to the Company's significant pension plans with accumulated benefit obligations exceeding the fair value of plan assets: December 31, U.S. Plans Non-U.S. Plans 2022 2021 2022 2021 Projected benefit obligation $ 255 $ 359 $ 682 $ 964 Accumulated benefit obligation $ 253 $ 346 $ 664 $ 932 Fair value of plan assets $ — $ — $ 230 $ 256 The accumulated benefit obligation for the Company's U.S. defined benefit pension plans was $13.3 billion and $17.3 billion and for the Company's non-U.S. defined benefit pension plans was $4.4 billion and $6.9 billion at December 31, 2022, and 2021, respectively. The Company's asset investment strategy for its U.S. pension plans focuses on maintaining a diversified portfolio using various asset classes in order to achieve the Company's long-term investment objectives on a risk adjusted basis. The Company's long-term target allocations are as follows: 45%-65% fixed income securities and cash, 25%-40% equity securities, 5%-10% real estate investments, and 10%-20% other types of investments. Equity securities include publicly-traded stock of companies located inside the United States. Fixed income securities include corporate bonds of companies from diversified industries, mortgage-backed securities, and U.S. Treasuries. Real estate investments include direct investments in commercial properties and investments in real estate funds. Other types of investments include investments in private equity that follow several different strategies. The Company reviews its assets on a regular basis to ensure that the Company is within the targeted asset allocation ranges and, if necessary, asset balances are adjusted back within target allocations. The Company's non-U.S. pension assets are typically managed by decentralized fiduciary committees with the Honeywell Corporate Investments group providing funding and investment guidance. The Company's non-U.S. investment policies are different for each country as local regulations, funding requirements, and financial and tax considerations are part of the funding and investment allocation process in each country. In accordance with Accounting Standards Codification “Fair Value Measurement (Topic 820)”, certain investments that are measured at fair value using the net asset value (NAV) per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in the following tables are intended to permit reconciliation of the fair value hierarchy to the amounts presented for the total pension benefits plan assets. The fair values of both the Company's U.S. and non-U.S. pension plans assets by asset category are as follows: U.S. Plans December 31, 2022 Total Level 1 Level 2 Level 3 Equities: Honeywell common stock $ 3,336 $ 3,336 $ — $ — U.S. equities 6 6 — — Fixed income: Short-term investments 855 855 — — Government securities 1,492 — 1,492 — Corporate bonds 6,632 — 6,632 — Mortgage/Asset-backed securities 1,119 — 1,119 — Insurance contracts 8 — 8 — Direct investments: Direct private investments 1,284 — — 1,284 Real estate properties 1,005 — — 1,005 Total $ 15,737 $ 4,197 $ 9,251 $ 2,289 Investments measured at NAV: Private funds 1,258 Real estate funds 10 Commingled funds — Total assets at fair value $ 17,005 U.S. Plans December 31, 2021 Total Level 1 Level 2 Level 3 Equities: Honeywell common stock $ 3,251 $ 3,251 $ — $ — U.S. equities — — — — Fixed income: Short-term investments 1,767 1,767 — — Government securities 1,373 — 1,373 — Corporate bonds 9,588 — 9,588 — Mortgage/Asset-backed securities 1,072 — 1,072 — Insurance contracts 8 — 8 — Direct investments: Direct private investments 1,336 — — 1,336 Real estate properties 843 — — 843 Total $ 19,238 $ 5,018 $ 12,041 $ 2,179 Investments measured at NAV: Private funds 1,244 Real estate funds 14 Commingled funds 64 Total assets at fair value $ 20,560 Non-U.S. Plans December 31, 2022 Total Level 1 Level 2 Level 3 Equities: U.S. equities $ 144 $ 2 $ 142 $ — Non-U.S. equities 374 — 374 — Fixed income: Short-term investments 341 341 — — Government securities 2,045 — 2,045 — Corporate bonds 1,031 — 1,031 — Mortgage/Asset-backed securities 31 — 31 — Insurance contracts 115 — 115 — Insurance buy-in contracts 950 — — 950 Investments in private funds: Private funds 90 — 54 36 Real estate funds 130 — — 130 Total $ 5,251 $ 343 $ 3,792 $ 1,116 Investments measured at NAV: Private funds 10 Real estate funds 43 Total assets at fair value $ 5,304 Non-U.S. Plans December 31, 2021 Total Level 1 Level 2 Level 3 Equities: U.S. equities $ 229 $ 1 $ 228 $ — Non-U.S. equities 824 — 824 — Fixed income: Short-term investments 571 571 — — Government securities 3,893 — 3,893 — Corporate bonds 1,681 — 1,681 — Mortgage/Asset-backed securities 79 — 79 — Insurance contracts 123 — 123 — Insurance buy-in contracts 691 — — 691 Investments in private funds: Private funds 74 — 41 33 Real estate funds 163 — — 163 Total $ 8,328 $ 572 $ 6,869 $ 887 Investments measured at NAV: Private funds 17 Real estate funds 51 Total assets at fair value $ 8,396 The following table summarizes changes in the fair value of level 3 assets for both U.S. and non-U.S. plans: U.S. Plans Non-U.S. Plans Direct Real Estate Private Real Estate Insurance Buy-in Contracts Balance at December 31, 2020 $ 1,220 $ 651 $ 29 $ 147 $ 767 Actual return on plan assets: Relating to assets still held at year-end 11 96 4 23 (76) Relating to assets sold during the year 174 — — 4 — Purchases 194 99 — — — Sales and settlements (263) (3) — (11) — Balance at December 31, 2021 1,336 843 33 163 691 Actual return on plan assets: Relating to assets still held at year-end (66) 88 11 (33) (477) Relating to assets sold during the year 98 (24) — 1 — Purchases 75 148 — — 736 Sales and settlements (159) (50) (8) (1) — Balance at December 31, 2022 $ 1,284 $ 1,005 $ 36 $ 130 $ 950 The Company enters into futures contracts to gain exposure to certain markets. Sufficient cash or cash equivalents are held by the Company's pension plans to cover the notional value of the futures contracts. At December 31, 2022, and 2021, the Company's U.S. plans had contracts with notional amounts of $2,567 million and $4,415 million, respectively. At December 31, 2022, and 2021, the Company's non-U.S. plans had contracts with notional amounts of $120 million and $311 million, respectively. In both the Company's U.S. and non-U.S. pension plans, the notional derivative exposure is related to outstanding equity and fixed income futures contracts. Common stocks, preferred stocks, real estate investment trusts, and short-term investments are valued at the closing price reported in the active market in which the individual securities are traded. Corporate bonds, mortgage/asset-backed securities, and government securities are valued either by using pricing models, bids provided by brokers or dealers, quoted prices of securities with similar characteristics, or discounted cash flows, and as such, include adjustments for certain risks that may not be observable such as credit and liquidity risks. Certain securities are held in collective trust funds which are valued using net asset values provided by the administrators of the funds. Investments in private equity, debt, real estate and hedge funds, and direct private investments are valued at estimated fair value based on quarterly financial information received from the investment advisor and/or general partner. Investments in real estate properties are valued on a quarterly basis using the income approach. Valuation estimates are periodically supplemented by third party appraisals. The insurance buy-in contracts represent policies held by the Honeywell UK Pension Scheme, whereby the cost of providing pension benefits to plan participants is funded by the policies. The cash flows from the policies are intended to match the pension benefits. The fair value of these policies is based on an estimate of the policies' exit price. The Company's funding policy for qualified defined benefit pension plans is to contribute amounts at least sufficient to satisfy regulatory funding standards. In 2022, 2021, and 2020, the Company was not required to make contributions to the U.S. pension plans and no contributions were made. The Company is not required to make any contributions to the U.S. pension plans in 2023. In 2022, contributions of $10 million were made to the non-U.S. pension plans to satisfy regulatory funding requirements. In 2023, the Company expects to make contributions of cash and/or marketable securities of approximately $10 million to the non-U.S. pension plans to satisfy regulatory funding standards. Contributions for both the U.S. and non-U.S. pension plans do not reflect benefits paid directly from Company assets. Benefit payments, including amounts to be paid from Company assets, and reflecting expected future service, as appropriate, are expected to be paid as follows: U.S. Plans Non-U.S. Plans 2023 $ 1,139 $ 247 2024 1,121 249 2025 1,104 256 2026 1,087 264 2027 1,067 269 2028-2032 4,943 1,271 OTHER POSTRETIREMENT BENEFITS December 31, 2022 2021 Assumed health care cost trend rate: Health care cost trend rate assumed for next year 7.50 % 6.50 % Rate that the cost trend rate gradually declines to 5.00 % 5.00 % Year that the rate reaches the rate it is assumed to remain at 2031 2029 Benefit payments reflecting expected future service, as appropriate, are expected to be paid as follows: Without Impact of Net of 2023 $ 24 $ 22 2024 13 13 2025 13 12 2026 12 12 2027 12 11 2028-2032 51 48 |
OTHER (INCOME) EXPENSE
OTHER (INCOME) EXPENSE | 12 Months Ended |
Dec. 31, 2022 | |
Other Income and Expenses [Abstract] | |
OTHER (INCOME) EXPENSE | OTHER (INCOME) EXPENSE Years Ended December 31, 2022 2021 2020 Interest income $ (138) $ (102) $ (107) Pension ongoing income—non-service (602) (1,202) (901) Other postretirement income—non-service (41) (71) (57) Equity income of affiliated companies (61) (67) (66) Loss (gain) on sale of non-strategic businesses and assets (22) (102) 3 Foreign exchange 48 25 (68) Expense related to UOP Matters 45 160 — Expense related to Russia-Ukraine conflict 45 — — Reimbursement receivables charge — — 509 Net expense related to the NARCO Buyout and HWI Sale 342 — — Other (net) 18 (19) 12 $ (366) $ (1,378) $ (675) For more information on the UOP Matters, NARCO Buyout, and HWI Sale, see Note 19 Commitments and Contingencies. See Note 4 Repositioning and Other Charges for further discussion of the expense related to the Russia-Ukraine conflict. See Note 2 for further discussion on the gain on sale of non-strategic businesses and assets. |
SEGMENT FINANCIAL DATA
SEGMENT FINANCIAL DATA | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
SEGMENT FINANCIAL DATA | SEGMENT FINANCIAL DATA Honeywell globally manages its business operations through four reportable business segments. Segment information is consistent with how management reviews the businesses, makes investing and resource allocation decisions, and assesses operating performance. Honeywell’s senior management evaluates segment performance based on segment profit. Each segment’s profit is measured as segment income (loss) before taxes excluding general corporate unallocated expense, interest and other financial charges, stock compensation expense, pension and other postretirement income (expense), repositioning and other charges, and other items within Other (income) expense. Years Ended December 31, 2022 2021 2020 Net sales Aerospace Products $ 6,330 $ 6,158 $ 7,194 Services 5,497 4,868 4,350 Total 11,827 11,026 11,544 Honeywell Building Technologies Products 4,591 4,098 3,868 Services 1,409 1,441 1,321 Total 6,000 5,539 5,189 Performance Materials and Technologies Products 8,593 8,008 7,548 Services 2,134 2,005 1,875 Total 10,727 10,013 9,423 Safety and Productivity Solutions Products 6,446 7,379 6,127 Services 461 435 354 Total 6,907 7,814 6,481 Corporate and All Other Services 5 — — Total 5 — — $ 35,466 $ 34,392 $ 32,637 Depreciation and amortization Aerospace $ 285 $ 278 $ 241 Honeywell Building Technologies 92 67 55 Performance Materials and Technologies 478 454 440 Safety and Productivity Solutions 191 237 223 Corporate and All Other 158 102 44 $ 1,204 $ 1,138 $ 1,003 Segment profit Aerospace $ 3,228 $ 3,051 $ 2,904 Honeywell Building Technologies 1,439 1,238 1,099 Performance Materials and Technologies 2,354 2,120 1,851 Safety and Productivity Solutions 1,080 1,029 907 Corporate and All Other (412) (226) (96) $ 7,689 $ 7,212 $ 6,665 Years Ended December 31, 2022 2021 2020 Capital expenditures Aerospace $ 246 $ 284 $ 248 Honeywell Building Technologies 74 62 66 Performance Materials and Technologies 318 265 252 Safety and Productivity Solutions 50 190 288 Corporate and All Other 78 94 52 $ 766 $ 895 $ 906 Total assets Aerospace $ 12,189 $ 11,490 $ 11,035 Honeywell Building Technologies 6,599 6,543 6,351 Performance Materials and Technologies 17,887 18,021 16,772 Safety and Productivity Solutions 10,892 11,242 10,640 Corporate and All Other 14,708 17,174 19,788 $ 62,275 $ 64,470 $ 64,586 A reconciliation of segment profit to consolidated income before taxes are as follows: Years Ended December 31, 2022 2021 2020 Segment profit $ 7,689 $ 7,212 $ 6,665 Interest and other financial charges (414) (343) (359) Stock compensation expense (1) (188) (217) (168) Pension ongoing income (expense) (2) 993 1,083 785 Pension mark-to-market expense (523) (40) (44) Other postretirement income (2) 41 71 57 Repositioning and other charges (3) (1,266) (569) (575) Other (4) 47 38 (349) Income before taxes $ 6,379 $ 7,235 $ 6,012 (1) Amounts included in Selling, general and administrative expenses. (2) Amounts included in Cost of products and services sold, Selling, general and administrative expenses (service cost component) and Other (income) expense (non-service cost component). (3) Amounts included in Cost of products and services sold, Selling, general and administrative expenses, and Other (income) expense. (4) Amounts include the other components of Other (income) expense not included within other categories in this reconciliation. Equity income of affiliated companies is included in segment profit. |
GEOGRAPHIC AREAS - FINANCIAL DA
GEOGRAPHIC AREAS - FINANCIAL DATA | 12 Months Ended |
Dec. 31, 2022 | |
Geographic Areas Financial Data [Abstract] | |
Geographic Areas - Financial Data | GEOGRAPHIC AREAS—FINANCIAL DATA Net Sales (1) Long-lived Assets (2) Years Ended December 31, Years Ended December 31, 2022 2021 2020 2022 2021 2020 United States $ 21,262 $ 20,662 $ 19,665 $ 3,949 $ 3,964 $ 3,823 Europe 6,840 6,800 6,356 537 566 628 Other international 7,364 6,930 6,616 985 1,032 1,119 $ 35,466 $ 34,392 $ 32,637 $ 5,471 $ 5,562 $ 5,570 (1) Sales between geographic areas approximate market value and are not significant. Net sales are classified according to their country of origin. Included in United States Net sales are export sales of $4,187 million, $4,037 million, and $4,000 million for the years ended December 31, 2022, 2021, and 2020, respectively. (2) Long-lived assets are comprised of Property, plant and equipment - net. |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 12 Months Ended |
Dec. 31, 2022 | |
Supplemental Cash Flow Information [Abstract] | |
SUPPLEMENTAL CASH FLOW INFORMATION | SUPPLEMENTAL CASH FLOW INFORMATION Years Ended December 31, 2022 2021 2020 Net payments for repositioning and other charges: Severance and exit cost payments $ (275) $ (382) $ (564) Environmental payments (211) (210) (216) Reimbursement receipts 140 140 176 Insurance receipts for asbestos-related liabilities 37 46 58 Insurance receivables settlements and write-offs 68 — — Asbestos-related liability payments (271) (286) (287) $ (512) $ (692) $ (833) Interest paid, net of amounts capitalized $ 375 $ 339 $ 329 Income taxes paid, net of refunds 1,324 1,202 1,173 Non-cash investing and financing activities: Common stock contributed to savings plans 196 191 211 Marketable securities contributed to non-U.S. pension plans — 81 93 Impact of Quantinuum contribution (1) — 460 — Noncontrolling interest non-cash contribution (1) — 419 — Loan in exchange for prepaid assets — 25 — Receipt of Garrett Series B Preferred Stock (2) — 577 — (1) See Note 2 Acquisitions and Divestitures for additional information for non-cash amounts recognized related to the combination of Honeywell Quantum Solutions and Cambridge Quantum Computing to form Quantinuum, a newly formed entity, Honeywell consolidates as the controlling majority-owner. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Accounting Principles | ACCOUNTING PRINCIPLES The financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America. The following is a description of Honeywell’s significant accounting policies. |
Principles of Consolidation | PRINCIPLES OF CONSOLIDATION The Consolidated Financial Statements include the accounts of Honeywell International Inc. and all of its subsidiaries and entities in which a controlling interest is maintained. The Company's consolidation policy requires equity investments that the Company exercises significant influence over, but does not control the investee and are not the primary beneficiary of the investee’s activities, to be accounted for using the equity method. Investments through which the Company is not able to exercise significant influence over the investee and which the Company does not have readily determinable fair values are accounted for under the cost method. All intercompany transactions and balances are eliminated in consolidation. |
Reclassifications | RECLASSIFICATIONS Certain prior year amounts have been reclassified to conform to the current year presentation. |
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS The Company considers the applicability and impact of all Accounting Standards Updates (ASUs) issued by the Financial Accounting Standards Board (FASB). ASUs not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on the Company's Consolidated Statement of Operations, Balance Sheet and Cash Flows (Consolidated Financial Statements). In September 2022, the FASB issued ASU 2022-04, Liabilities—Supplier Finance Programs (Topic 405): Disclosure of Supplier Finance Program Obligations , to enhance the transparency of supplier finance programs. The new standard requires annual disclosure of the key terms of the program, a description of where in the financial statements amounts outstanding under the program are presented, a rollforward of such amounts, and interim disclosure of amounts outstanding as of the end of each period. The guidance does not affect recognition, measurement, or financial statement presentation of supplier finance programs. The ASU is effective on January 1, 2023, except for the rollforward, which is effective on January 1, 2024. The Company is currently evaluating the impacts of this guidance on the Company’s Consolidated Financial Statements . In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805) : Accounting for Contract Assets and Contract Liabilities from Contracts with Customers , which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers. This ASU should be applied prospectively to acquisitions occurring on or after the effective date of December 15, 2022, and early adoption is permitted. The Company adopted this guidance on January 1, 2022. The adoption of this standard does not have a material impact on the Company’s Consolidated Financial Statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by the transition away from reference rates expected to be discontinued to alternative reference rates. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope , to expand the scope of this guidance to include derivatives. The guidance was effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into on or before December 31, 2022. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 , which extends the period of time entities can utilize the reference rate reform relief guidance under ASU 2020-04 from December 31, 2022, to December 31, 2024. The Company will apply the guidance to impacted transactions during the transition period. The adoption of this standard does not have a material impact on the Company’s Consolidated Financial Statements. |
Research and Development | RESEARCH AND DEVELOPMENT Research and development costs for projects are expensed as incurred, unless these costs relate to contracts with customers where the Company receives reimbursements. Amounts expensed as incurred for Company-sponsored research and development projects are included in Cost of products and services sold and were $1,478 million, $1,333 million, and $1,334 million for the years ended December 31, 2022, 2021, and 2020, respectively. Costs related to contracts with customers for customer-sponsored research and development projects are included as a contract cost and included in Cost of products and services sold when revenue from such contracts is recognized, consistent with the Company's sales recognition policies. This revenue was $1,336 million, $1,284 million, and $1,200 million for the years ended December 31, 2022, 2021, and 2020, respectively. |
Cash And Cash Equivalents | CASH AND CASH EQUIVALENTS Cash and cash equivalents include cash on hand and highly liquid investments having an original maturity of three months or less. |
Inventories | INVENTORIES Inventories are stated at the lower of cost or net realizable value, with cost determined on a first-in, first-out (FIFO) basis. Carrying value adjustments for inventory obsolescence is equal to the difference between the cost and net realizable value. Net realizable value is the estimate selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. |
Property, Plant and Equipment | PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment are recorded at cost, including any asset retirement obligations, less accumulated depreciation. For financial reporting, the straight-line method of depreciation is used over the estimated useful lives of 10 to 50 years for buildings and improvements an d 3 to 16 years for machinery and equipment. Recognition of the fair value of obligations associated with the retirement of tangible long-lived assets is required when there is a legal obligation to incur such costs. Upon initial recognition of a liability, the cost is capitalized as part of the related long-lived asset and depreciated over the corresponding asset’s useful life. |
Goodwill and Indefinite-Lived Intangible Assets | GOODWILL AND INDEFINITE-LIVED INTANGIBLE ASSETS Goodwill and indefinite-lived intangible assets are subject to impairment testing annually as of the first day of the fourth quarter, or if a triggering event occurs or changes in circumstances indicate that the carrying amount may not be fully recoverable. This testing compares carrying values to fair values and, when appropriate, the carrying value of these assets is reduced to fair value, not to exceed the carrying value of goodwill. The Company completed its annual goodwill impairment test as of the first day of the fourth quarter, and determined that there was no impairment as of that date. The Company is not aware of any additional triggering events. Prior to 2022, the Company performed its annual goodwill and intangible asset impairment test as of the last day of the first quarter. In 2022, the Company changed the date of its annual goodwill and intangible asset impairment assessment to the first day of the fourth quarter. The Company believes this change does not represent a material change in method of applying an accounting principle. This change has been applied prospectively as of the date of the change, as retrospective application is deemed impracticable due to the inability to objectively determine the assumptions used in earlier periods without the benefit of hindsight. This voluntary change is preferable under the circumstances as it results in better alignment with the timing of the Company’s forecasting process and reduces the time period between the assessment date and annual financial statements. This change in accounting principle does not delay, accelerate, or avoid an impairment of goodwill. In 2022, due to this change the Company performed annual goodwill and intangible asset impairment tests as of the last day of the first quarter and the first day of the fourth quarter. |
Finite-Lived Intangible Assets | FINITE-LIVED INTANGIBLE ASSETS Other intangible assets with determinable lives consist of customer lists, technology, patents and trademarks, and other intangibles and are amortized over their estimated useful lives, ranging from 2 to 20 years. |
Capitalized Software | CAPITALIZED SOFTWARE The Company capitalizes costs of software developed or obtained for internal use during the application development stage of a project and amortizes those costs using the straight-line method over the expected useful life of the software, not to exceed 7 years. Costs incurred during the preliminary and post-implementation stages are expensed as incurred. Development costs for software held for sale are capitalized once a project has reached the point of technological feasibility. Completed projects are amortized after reaching the point of general availability using the straight-line method based on estimated useful life, not to exceed 7 years. At each balance sheet date, or earlier if an indicator of an impairment exists, we evaluate the recoverability of unamortized capitalized software costs based on estimated future undiscounted revenues net of estimated related costs over the remaining amortization period. Capitalized software held for internal use and held for sale is included in Other assets in the Consolidated Balance Sheet. |
Foreign Currency Translation | FOREIGN CURRENCY TRANSLATION Assets and liabilities of subsidiaries operating outside the United States with a functional currency other than U.S. Dollars are translated into U.S. Dollars using year-end exchange rates. Sales, costs, and expenses are translated at the average exchange rates in effect during the year. Foreign currency translation gains and losses are included as a component of Accumulated other comprehensive income (loss). For subsidiaries operating in highly inflationary environments, inventories and property, plant and equipment, including related expenses, are remeasured at the exchange rate in effect on the date the assets were acquired, while monetary assets and liabilities are remeasured at year-end exchange rates. Remeasurement adjustments for these subsidiaries are included in earnings. |
Derivative Financial Instruments | DERIVATIVE FINANCIAL INSTRUMENTS All derivative financial instruments are recorded on the balance sheet as assets or liabilities and measured at fair value. For derivatives designated as hedges of the fair value of assets or liabilities, the changes in fair values of both the derivatives and the hedged items are recorded in current earnings. For derivatives designated as cash flow hedges, the changes in fair value of the derivatives are recorded in Accumulated other comprehensive income (loss) and subsequently recognized in earnings when the hedged items impact earnings. Derivative financial instruments designated as hedges must be designated and effective as a hedge of the identified risk exposure at the inception of the contract. Changes in fair value of the derivative contract must be highly correlated with changes in fair value of the underlying hedged item at inception and over the life of the hedge contract. Cash flows of such derivative financial instruments are classified consistent with the underlying hedged item. The Company elected to exclude the time value of the derivatives (i.e., the forward points) from the assessment of hedge effectiveness and recognize the initial value of the excluded component in earnings using the amortization approach. For derivative instruments that are designated and qualify as a net investment hedge, the gain or loss is reported as a component of Other comprehensive income (loss) and recorded in Accumulated other comprehensive income (loss). The gain or loss will be subsequently reclassified into net earnings when the hedged net investment is either sold or substantially liquidated. |
Leases | LEASES At the inception of a contract, the Company assesses whether the contract is, or contains, a lease. The assessment is based on (i) whether the contract involves the use of a distinct identified asset, (ii) whether the Company obtains the right to substantially all the economic benefit from the use of the asset throughout the period, and (iii) whether the Company has the right to direct the use of the asset. All significant lease arrangements are generally recognized at lease commencement. Operating lease right-of-use (ROU) assets and lease liabilities are recognized at commencement. An ROU asset and corresponding lease liability are not recorded for leases with an initial term of 12 months or less (short-term leases), and we recognize lease expense for these leases as incurred over the lease term. ROU assets represent the Company's right to use an underlying asset during the reasonably certain lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. The Company's lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Lease payments may be fixed or variable, however, only fixed payments or in-substance fixed payments are included in determining the lease liability. Variable lease payments are recognized in operating expenses in the period in which the obligation for those payments are incurred. The operating lease ROU asset also includes any lease payments related to initial direct cost and prepayments and excludes lease incentives. Lease expense is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, which are generally accounted for separately. The Company primarily uses its incremental borrowing rate, which is based on the information available at the lease commencement date, in determining the present value of the lease payments. In determining the borrowing rate, the Company considers the lease term, secured incremental borrowing rate, and for leases denominated in a currency different than U.S. dollar, the collateralized borrowing rate in the foreign currency using the U.S. dollar and foreign currency swap spread, when available. |
Pension Benefits | PENSION BENEFITS The Company presents net periodic pension costs by disaggregating the service cost component of such costs and reports those costs in the same line item or items in the Consolidated Statement of Operations as other compensation costs arising from services rendered by the pertinent employees during the period. The other non-service components of such costs are required to be presented separately from the service cost component. The Company records the service cost component of Pension ongoing (income) expense in Cost of products and services sold and Selling, general and administrative expenses. The remaining components of costs within Pension ongoing (income) expense, primarily interest costs and assumed return on plan assets, are recorded in Other (income) expense. The Company recognizes net actuarial gains or losses in excess of 10% of the greater of the fair value of plan assets or the plan's projected benefit obligation (the corridor) annually in the fourth quarter each year (MTM Adjustment). The MTM Adjustment is also reported in Other (income) expense. |
Sales Recognition | SALES RECOGNITION Product and service sales are recognized when or as the Company transfers control of the promised products or services to its customers. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring goods or providing services. Service sales, principally representing repair, maintenance, and engineering activities, are recognized over the contractual period or as services are rendered. Sales under long-term contracts with performance obligations satisfied over time are recognized using either an input or output method. The Company recognizes revenue over time as the Company performs on these contracts because of the continuous transfer of control to the customer. With control transferring over time, revenue is recognized based on the extent of progress towards completion of the performance obligation. The Company generally uses the cost-to-cost input method of progress for contracts because it best depicts the transfer of control to the customer that occurs as the Company incurs costs. Under the cost-to-cost input method, the extent of progress towards completion is measured based on the proportion of costs incurred to date to the total estimated costs at completion of the performance obligation. The Company reviews its cost estimates on significant contracts on a periodic basis, or when circumstances change and warrant a modification to a previous estimate. Cost estimates are largely based on negotiated or estimated purchase contract terms, historical performance trends, and other economic projections. Significant factors that influence these estimates include inflationary trends, technical and schedule risk, internal and subcontractor performance trends, business volume assumptions, asset utilization, and anticipated labor agreements. Provisions for anticipated losses on long-term contracts are recorded in full when such losses become evident, to the extent required. The customer funding for costs incurred for nonrecurring engineering and development activities of the Company's products under agreements with commercial customers is deferred and subsequently recognized as revenue as products are delivered to the customers. Additionally, expenses incurred, up to the customer agreed funded amount, are deferred as an asset and recognized as cost of sales when products are delivered to the customer. The deferred customer funding and costs result in recognition of deferred costs (asset) and deferred revenue (liability) within Other assets and Accrued liabilities, respectively, in the Consolidated Balance Sheet. Deferred contract fulfillment costs were approximately $1.3 billion as of December 31, 2022, and 2021. The amounts recognized as Cost of products and services sold were approximately $0.2 billion for the year ended December 31, 2022, and $0.1 billion for 2021 and 2020. Revenues for the Company's mechanical service programs are recognized as performance obligations that are satisfied over time, with recognition reflecting a series of distinct services using the output method. |
Stock-Based Compensation Plans | STOCK-BASED COMPENSATION PLANS The principal awards issued under the Company's stock-based compensation plans, which are described in Note 15 Stock-Based Compensation Plans, are non-qualified stock options and restricted stock units. The cost for such awards is measured at the grant date based on the fair value of the award. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods (generally the vesting period of the equity award) and is included in Selling, general and administrative expenses. Forfeitures are estimated at the time of grant to recognize expense for those awards that are expected to vest and are based on the Company's historical forfeiture rates. |
Income Taxes | INCOME TAXES Significant judgment is required in evaluating tax positions. The Company establishes reserves for income taxes when, despite the belief that tax positions are fully supportable, there remain certain positions that do not meet the minimum recognition threshold. The approach for evaluating certain and uncertain tax positions is defined by the authoritative guidance which determines when a tax position is more likely than not to be sustained upon examination by the applicable taxing authority. In the normal course of business, the Company and its subsidiaries are examined by various federal, state, and foreign tax authorities. The Company regularly assesses the potential outcomes of these examinations and any future examinations for the current or prior years in determining the adequacy of the Company's provision for income taxes. The Company continually assesses the likelihood and amount of potential adjustments and adjust the income tax provision, the current tax liability, and deferred taxes in the period in which the facts that give rise to a change in estimate become known. For additional information, see Note 5 Income Taxes. |
Earnings Per Share | EARNINGS PER SHARE Basic earnings per share is based on the weighted average number of common shares outstanding. Diluted earnings per share is based on the weighted average number of common shares outstanding and all dilutive potential common shares outstanding. |
Environmental | ENVIRONMENTAL The Company accrues costs related to environmental matters when it is probable that it has incurred a liability related to a contaminated site and the amount can be reasonably estimated. For additional information, see Note 19 Commitments and Contingencies. |
Asbestos Related Liabilities and Insurance Recoveries | ASBESTOS-RELATED LIABILITIES AND INSURANCE RECOVERIES The Company recognizes a liability for any asbestos-related contingency that is probable of occurrence and reasonably estimable. In connection with the recognition of liabilities for asbestos-related matters, the Company records asbestos-related insurance recoveries that are deemed probable. For additional information, see Note 19 Commitments and Contingencies. |
Reimbursement Receivables | REIMBURSEMENT RECEIVABLES In conjunction with the Resideo Technologies, Inc. (Resideo) spin-off, the Company entered into a reimbursement agreement under which Honeywell receives cash payments as reimbursement primarily related to net spending for environmental matters at certain sites as defined in the reimbursement agreement. Accordingly, the Company recorded receivables based on estimates of the underlying reimbursable Honeywell environmental spend, and the Company monitors the recoverability of such receivables, which are subject to the terms of applicable credit agreements and general ability to pay. |
REVENUE RECOGNITION AND CONTR_2
REVENUE RECOGNITION AND CONTRACTS WITH CUSTOMERS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation Of Revenue | See the following disaggregated revenue table and related discussions by reportable business segment for details. Years Ended December 31, 2022 2021 2020 Aerospace Commercial Aviation Original Equipment $ 2,089 $ 1,720 $ 1,940 Commercial Aviation Aftermarket 5,108 4,155 3,812 Defense and Space 4,630 5,151 5,792 11,827 11,026 11,544 Honeywell Building Technologies Products 3,638 3,173 2,967 Building Solutions 2,362 2,366 2,222 6,000 5,539 5,189 Performance Materials and Technologies UOP 2,404 2,348 2,177 Process Solutions 4,731 4,611 4,590 Advanced Materials 3,592 3,054 2,656 10,727 10,013 9,423 Safety and Productivity Solutions Sensing and Safety Technologies 2,952 3,260 3,246 Productivity Solutions and Services 1,619 1,614 1,273 Warehouse and Workflow Solutions 2,336 2,940 1,962 6,907 7,814 6,481 Corporate and All Other 5 — — Net sales $ 35,466 $ 34,392 $ 32,637 Years Ended December 31, 2022 2021 2020 Products, transferred point in time 59 % 58 % 61 % Products, transferred over time 14 17 15 Net product sales 73 75 76 Services, transferred point in time 8 8 8 Services, transferred over time 19 17 16 Net service sales 27 25 24 Net sales 100 % 100 % 100 % |
Contract with Customer, Asset and Liability | The following table summarizes the Company's contract assets and liabilities balances: 2022 2021 Contract assets—January 1 $ 2,060 $ 1,618 Contract assets—December 31 2,294 2,060 Change in contract assets—increase (decrease) $ 234 $ 442 Contract liabilities—January 1 $ (4,290) $ (4,033) Contract liabilities—December 31 (4,583) (4,290) Change in contract liabilities—(increase) decrease $ (293) $ (257) Net change $ (59) $ 185 |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction | The following table outlines the Company's remaining performance obligations disaggregated by reportable business segment: December 31, 2022 Aerospace $ 11,607 Honeywell Building Technologies 6,991 Performance Materials and Technologies 8,111 Safety and Productivity Solutions 2,844 Corporate and All Other (1) 5 Total performance obligations (2) $ 29,558 (1) The remaining performance obligations within Corporate and All Other relate to the Quantinuum business. (2) Effective March 31, 2022, performance obligations excludes contracts with customers related to Russia as collectability is not reasonably assured. |
REPOSITIONING AND OTHER CHARG_2
REPOSITIONING AND OTHER CHARGES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Repositioning And Other Charges | A summary of net repositioning and other charges follows: Years Ended December 31, 2022 2021 2020 Severance $ 122 $ 80 $ 475 Asset impairments 176 117 21 Exit costs 122 134 69 Reserve adjustments (56) (13) (47) Total net repositioning charges 364 318 518 Asbestos-related charges, net of insurance and reimbursements 532 129 50 Probable and reasonably estimable environmental liabilities, net of reimbursements 28 22 27 Other charges 342 100 (20) Total net repositioning and other charges $ 1,266 $ 569 $ 575 |
Pretax Distribution Of Total Net Repositioning And Other Charges | The following table summarizes the pre-tax distribution of total net repositioning and other charges by classification in the Consolidated Statement of Operations: Years Ended December 31, 2022 2021 2020 Cost of products and services sold $ 572 $ 457 $ 308 Selling, general and administrative expenses 309 112 267 Other (income) expense 385 — — $ 1,266 $ 569 $ 575 |
Pretax Impact of Total Net Repositioning and Other Charges by Segment | 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 22 Segment Financial Data: Years Ended December 31, 2022 2021 2020 Aerospace $ 41 $ 62 $ 157 Honeywell Building Technologies 63 13 100 Performance Materials and Technologies 332 24 167 Safety and Productivity Solutions 188 268 41 Corporate and All Other 642 202 110 $ 1,266 $ 569 $ 575 |
Total Repositioning Reserves | The following table summarizes the status of the Company's total repositioning reserves: Severance Asset Exit Total Balance at December 31, 2019 $ 555 $ — $ 96 $ 651 Charges 475 21 69 565 Usage—cash (474) — (90) (564) Usage—noncash — (21) — (21) Divestitures — — — — Adjustments (44) — (3) (47) Foreign currency translation 15 — 2 17 Balance at December 31, 2020 527 — 74 601 Charges 80 117 134 331 Usage—cash (299) — (83) (382) Usage—noncash — (119) — (119) Divestitures — — — — Adjustments (14) 2 (1) (13) Foreign currency translation (5) — (2) (7) Balance at December 31, 2021 289 — 122 411 Charges 122 176 122 420 Usage—cash (135) — (140) (275) Usage—noncash — (168) (15) (183) Divestitures — — — — Adjustments (42) (8) (6) (56) Foreign currency translation 1 — (9) (8) Balance at December 31, 2022 $ 235 $ — $ 74 $ 309 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Before Taxes | Years Ended December 31, 2022 2021 2020 U.S. $ 3,305 $ 3,955 $ 3,318 Non-U.S. 3,074 3,280 2,694 $ 6,379 $ 7,235 $ 6,012 |
Tax Expense (Benefit) | Years Ended December 31, 2022 2021 2020 Tax expense (benefit) consists of Current: U.S. Federal $ 653 $ 415 $ 475 U.S. State 124 146 79 Non-U.S. 815 886 768 $ 1,592 $ 1,447 $ 1,322 Deferred: U.S. Federal $ (175) $ 173 $ 234 U.S. State (36) 37 39 Non-U.S. 32 (32) (448) (180) 178 (175) $ 1,412 $ 1,625 $ 1,147 Years Ended December 31, 2022 2021 2020 The U.S. federal statutory income tax rate is reconciled to the effective income tax rate as follows: U.S. federal statutory income tax rate 21.0 % 21.0 % 21.0 % Taxes on non-U.S. earnings (1)(2) (0.4) (1.4) (0.8) U.S. state income taxes (1) 1.4 1.5 1.3 Reserves for tax contingencies 1.1 2.2 (2.6) Employee share-based payments (0.9) (0.7) (1.2) Reduction of certain receivables — — 2.0 Restructuring 0.7 (1.4) — U.S. Valuation Allowance (0.2) 2.0 0.1 All other items—net (0.6) (0.7) (0.7) 22.1 % 22.5 % 19.1 % (1) Net of changes in valuation allowance. (2) Includes U.S. taxes on non-U.S. earnings. |
Deferred Tax Assets (Liabilities) | The tax effects of temporary differences and tax carryforwards which give rise to future income tax benefits and payables are as follows: Deferred tax assets: December 31, 2022 2021 Postretirement benefits other than pensions $ 59 $ 77 Asbestos and environmental 545 468 Employee compensation and benefits 142 174 Lease liabilities 233 242 Other accruals and reserves 363 260 Net operating losses 695 734 Capital loss limitation and carryover 126 151 Tax credit carryforwards 163 164 Gross deferred tax assets 2,326 2,270 Valuation allowance (812) (857) Total deferred tax assets $ 1,514 $ 1,413 Deferred tax liabilities: Pension $ (1,088) $ (948) Property, plant and equipment (233) (464) Right-of-use asset (212) (230) Intangibles (818) (883) Unremitted earnings of foreign subsidiaries (517) (426) Other asset basis differences (317) (334) Other (1) (2) Total deferred tax liabilities (3,186) (3,287) Net deferred tax liability $ (1,672) $ (1,874) |
Summary of Operating Loss Carryforwards | As of December 31, 2022, the Company's net operating loss, capital loss and tax credit carryforwards were as follows: Jurisdiction Expiration Net Operating Tax Credit U.S. Federal 2042 $ 584 $ 94 U.S. State 2042 449 21 Non-U.S. 2042 450 53 Non-U.S. Indefinite 2,062 — $ 3,545 $ 168 |
Change in Unrecognized Tax Benefits | Years Ended December 31, 2022 2021 2020 Change in unrecognized tax benefits: Balance at beginning of year $ 1,061 $ 991 $ 1,164 Gross increases related to current period tax positions 64 93 94 Gross increases related to prior periods tax positions 31 39 68 Gross decreases related to prior periods tax positions (19) (27) (256) Decrease related to resolutions of audits with tax authorities (3) (1) (35) Expiration of the statute of limitations for the assessment of taxes (8) (12) (76) Foreign currency translation (40) (22) 32 Balance at end of year $ 1,086 $ 1,061 $ 991 |
Summary of Income Tax Examinations | The following table summarizes tax years that remain subject to examination by major tax jurisdictions as of December 31, 2022: Jurisdiction Open Tax Years Examination in progress Examination not yet initiated U.S. Federal 2017-2018 2019-2022 U.S. State 2013-2020 2017-2022 Australia n/a 2019-2022 Belgium 2019-2020 2021-2022 Canada (1) 2017-2019 2020-2022 China 2012-2021 2022 France 2019-2021 2022 Germany (1) 2009-2020 2021-2022 India 1999-2021 2022 Italy 2015-2020 2021-2022 Netherlands 2018-2020 2021-2022 Switzerland (1) 2017-2020 2021-2022 United Kingdom 2013-2020 2021-2022 (1) Includes provincial or similar local jurisdictions, as applicable. |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | December 31, 2022 2021 Raw materials $ 1,407 $ 1,352 Work in process 1,049 861 Finished products 3,082 2,925 $ 5,538 $ 5,138 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT-NET (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment - Net | December 31, 2022 2021 Land and improvements $ 216 $ 226 Machinery and equipment 10,383 10,143 Buildings and improvements 3,394 3,225 Construction in progress 769 856 14,762 14,450 Less—Accumulated depreciation (9,291) (8,888) $ 5,471 $ 5,562 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLES-NET (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table summarizes the change in the carrying amount of goodwill for the years ended December 31, 2022, and 2021, by reportable business segment: December 31, 2021 Acquisitions/ Currency December 31, 2022 Aerospace $ 2,399 $ — $ (23) $ 2,376 Honeywell Building Technologies 3,317 123 (102) 3,338 Performance Materials and Technologies 6,138 — (125) 6,013 Safety and Productivity Solutions 4,961 — (65) 4,896 Corporate and All Other 941 2 (69) 874 $ 17,756 $ 125 $ (384) $ 17,497 |
Other Intangible Assets | Other intangible assets are comprised of: December 31, 2022 December 31, 2021 Gross Accumulated Net Gross Accumulated Net Determinable life intangibles: Patents and technology $ 2,313 $ (1,759) $ 554 $ 2,345 $ (1,678) $ 667 Customer relationships 3,989 (2,397) 1,592 4,045 (2,235) 1,810 Trademarks 371 (273) 98 356 (261) 95 Other 299 (274) 25 298 (271) 27 6,972 (4,703) 2,269 7,044 (4,445) 2,599 Indefinite life intangibles: Trademarks 953 — 953 1,014 — 1,014 $ 7,925 $ (4,703) $ 3,222 $ 8,058 $ (4,445) $ 3,613 |
LONG-TERM DEBT AND CREDIT AGR_2
LONG-TERM DEBT AND CREDIT AGREEMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Debt and Credit Agreements | December 31, 2022 2021 0.483% notes due 2022 $ — $ 500 2.15% notes due 2022 — 600 Floating rate notes due 2022 — 600 1.30% Euro notes due 2023 1,334 1,416 3.35% notes due 2023 300 300 0.00% Euro notes due 2024 534 566 2.30% notes due 2024 750 750 4.85% notes due 2024 400 — 1.35% notes due 2025 1,250 1,250 2.50% notes due 2026 1,500 1,500 1.10% notes due 2027 1,000 1,000 4.95% notes due 2028 500 — 2.25% Euro notes due 2028 800 849 2.70% notes due 2029 750 750 1.95% notes due 2030 1,000 1,000 1.75% notes due 2031 1,500 1,500 0.75% Euro notes due 2032 534 566 5.00% notes due 2033 1,100 — 4.125% Euro notes due 2034 1,067 — 5.70% notes due 2036 441 441 5.70% notes due 2037 462 462 5.375% notes due 2041 417 417 3.812% notes due 2047 445 445 2.80% notes due 2050 750 750 Industrial development bond obligations, floating rate maturing at various dates through 2037 22 22 6.625% debentures due 2028 201 201 9.065% debentures due 2033 51 51 Other (including capitalized leases), 8.0% weighted average interest rate maturing at various dates through 2029 265 272 Fair value of hedging instruments (287) 60 Debt issuance costs (233) (211) 16,853 16,057 Less—Current maturities of long-term debt (1,730) (1,803) $ 15,123 $ 14,254 |
Principal Payments on Long-Term Debt | The schedule of principal payments on long-term debt is as follows: December 31, 2022 2023 $ 1,730 2024 1,787 2025 1,272 2026 1,515 2027 1,008 Thereafter 9,541 16,853 Less—Current maturities of long-term debt (1,730) $ 15,123 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of Leases | Years Ended December 31, 2022 2021 Operating lease cost $ 224 $ 228 Variable lease cost 8 14 Short-term lease cost 18 15 Finance lease cost: Amortization of right-of-use assets 72 65 Interest on lease liability 21 24 Total finance lease cost 93 89 Total lease cost $ 343 $ 346 |
Supplemental Cash Flow Information | Supplemental cash flow information related to leases was as follows: Years Ended December 31, 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 225 $ 215 Operating cash flows for finance leases 21 24 Financing cash flows for finance leases 79 67 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 251 $ 350 Finance leases 61 32 |
Supplemental Balance Sheet Information | Supplemental balance sheet information related to leases was as follows: December 31, 2022 2021 Operating leases: Other assets $ 881 $ 947 Accrued liabilities 192 185 Other liabilities 775 847 Total operating lease liabilities $ 967 $ 1,032 Finance leases: Property, plant and equipment $ 383 $ 325 Accumulated depreciation (161) (177) Property, plant and equipment—net $ 222 $ 148 Current maturities of long-term debt $ 77 $ 57 Long-term debt 145 99 Total finance lease liabilities $ 222 $ 156 Weighted average remaining lease term: Operating leases 8 years 9 years Finance leases 4 years 3 years Weighted average discount rate: Operating leases 2.1 % 2.3 % Finance leases 7.8 % 11.0 % |
Maturities of Lease Liabilities | As of December 31, 2022, maturities of lease liabilities were as follows: Operating Finance Leases 2023 $ 208 $ 94 2024 176 81 2025 139 37 2026 115 15 2027 88 12 Thereafter 354 18 Total lease payments 1,080 257 Less—interest (113) (35) Total $ 967 $ 222 |
DERIVATIVE INSTRUMENTS AND HE_2
DERIVATIVE INSTRUMENTS AND HEDGING TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table summarizes the notional amounts and fair values of the Company’s outstanding derivatives by risk category and instrument type within the Consolidated Balance Sheet: Notional Fair Value Asset Fair Value (Liability) December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Derivatives in fair value hedging relationships: Interest rate swap agreements $ 4,984 $ 3,150 $ 16 $ 60 $ (303) $ — Derivatives in cash flow hedging relationships: Foreign currency exchange contracts 866 647 19 4 (5) — Commodity contracts 9 — — — (1) — Derivatives in net investment hedging relationships: Foreign currency exchange contracts — 746 — 92 — — Cross currency swap agreements 3,189 1,200 90 39 — — Total derivatives designated as hedging instruments 9,048 5,743 125 195 (309) — Derivatives not designated as hedging instruments: Foreign currency exchange contracts 9,679 11,278 74 278 (3) (282) Total derivatives at fair value $ 18,727 $ 17,021 $ 199 $ 473 $ (312) $ (282) |
Schedule of Derivative Instruments | The following table sets forth the amounts recorded in the Consolidated Balance Sheet related to cumulative basis adjustments for fair value hedges: Line in the Consolidated Balance Sheet of Hedged Item Carrying Amount Cumulative Amount of December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Long-term debt $ 4,696 $ 3,210 $ (287) $ 60 |
Derivative Instruments, Gain (Loss) | The following tables summarize the location and impact to the Consolidated Statement of Operations related to derivative instruments: Year Ended December 31, 2022 Net Sales Cost of Cost of Selling, General and Administrative Expenses Other Interest and Other $ 35,466 $ 18,263 $ 5,562 $ 5,214 $ (366) $ 414 Gain or (loss) on cash flow hedges: Foreign currency exchange contracts: Amount reclassified from accumulated other comprehensive income into income 13 50 14 (3) — — Commodity contracts: Amount reclassified from accumulated other comprehensive income into income — (2) — — — — Gain or (loss) on fair value hedges: Interest rate swap agreements: Hedged items — — — — — 347 Derivatives designated as hedges — — — — — (347) Gain or (loss) on net investment hedges: Foreign currency exchange contracts: Amount excluded from effectiveness testing recognized in earnings using an amortization approach — — — — — 13 Gain or (loss) on derivatives not designated as hedging instruments: Foreign currency exchange contracts — — — — 351 — Year Ended December 31, 2021 Net Sales Cost of Cost of Services Sold Selling, General and Administrative Expenses Other Interest and Other $ 34,392 $ 18,344 $ 5,050 $ 4,798 $ (1,378) $ 343 Gain or (loss) on cash flow hedges: Foreign currency exchange contracts: Amount reclassified from accumulated other comprehensive income into income 5 8 2 9 — — Gain or (loss) on fair value hedges: Interest rate swap agreements: Hedged items — — — — — 135 Derivatives designated as hedges — — — — — (135) Gain or (loss) on net investment hedges: Foreign currency exchange contracts: Amount excluded from effectiveness testing recognized in earnings using an amortization approach — — — — — 16 Gain or (loss) on derivatives not designated as hedging instruments: Foreign currency exchange contracts — — — — 195 — Year Ended December 31, 2020 Net Sales Cost of Cost of Services Sold Selling, General and Administrative Expenses Other Interest and Other $ 32,637 $ 17,638 $ 4,531 $ 4,772 $ (675) $ 359 Gain or (loss) on cash flow hedges: Foreign currency exchange contracts: Amount reclassified from accumulated other comprehensive income into income (3) 43 11 (4) 28 — Amount excluded from effectiveness testing recognized in earnings using an amortization approach — 10 3 — 29 — Gain or (loss) on fair value hedges: Interest rate swap agreements: Hedged items — — — — — (169) Derivatives designated as hedges — — — — — 169 Gain or (loss) on net investment hedges: Foreign currency exchange contracts: Amount excluded from effectiveness testing recognized in earnings using an amortization approach — — — — — 18 Gain or (loss) on derivatives not designated as hedging instruments: Foreign currency exchange contracts — — — — (166) — |
Schedule of Net Investment Hedges in Accumulated Other Comprehensive Income (Loss) | The following table summarizes the amounts of gain or (loss) on net investment hedges recognized in Accumulated other comprehensive income (loss): Derivatives Net Investment Hedging Relationships Years Ended December 31, 2022 2021 Euro-denominated long-term debt $ 196 $ 284 Euro-denominated commercial paper 39 57 Cross currency swap agreements (65) 88 Foreign currency exchange contracts 34 40 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis | The following table sets forth the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis: December 31, 2022 December 31, 2021 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Foreign currency exchange contracts $ — $ 93 $ — $ 93 $ — $ 374 $ — $ 374 Available for sale investments 87 559 — 646 176 566 — 742 Interest rate swap agreements — 16 — 16 — 60 — 60 Cross currency swap agreements — 90 — 90 — 39 — 39 Investments in equity securities 22 32 — 54 34 23 — 57 Right to HWI Sale proceeds — — 295 295 — — — — Total assets $ 109 $ 790 $ 295 $ 1,194 $ 210 $ 1,062 $ — $ 1,272 Liabilities: Foreign currency exchange contracts $ — $ 8 — $ 8 $ — $ 282 — $ 282 Interest rate swap agreements — 303 — 303 — — — — Commodity contracts — 1 — 1 — — — — Total liabilities $ — $ 312 $ — $ 312 $ — $ 282 $ — $ 282 |
Schedule of Fair Value Using Level 3 Measurements | The following table sets forth a reconciliation of beginning and ending balances of assets and liabilities that were accounted for at fair value using level 3 measurements: Years Ended December 31, 2022 2021 Balance at beginning of period $ — $ — Activity during period: Recognition of right to HWI Sale proceeds 295 — Balance at end of period $ 295 $ — |
Financial Assets and Liabilities That Were Not Carried at Fair Value | The following table sets forth the Company’s financial assets and liabilities that were not carried at fair value: December 31, 2022 December 31, 2021 Carrying Fair Carrying Fair Assets: Short-term investments $ — $ — $ 34 $ 34 Long-term receivables 229 183 170 152 Long-term investments — — 366 366 Liabilities: Long-term debt and related current maturities $ 16,853 $ 15,856 $ 16,057 $ 17,022 |
ACCRUED LIABILITIES (Tables)
ACCRUED LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accrued Liabilities, Current [Abstract] | |
Schedule of Accrued Liabilities | December 31, 2022 2021 Customer advances and deferred income $ 3,555 $ 3,163 Compensation, benefit and other employee related 1,218 1,273 Repositioning 309 411 Asbestos-related liabilities 110 261 Income taxes 549 393 Other taxes 174 269 Environmental costs 222 225 Operating lease liabilities 192 185 Product warranties and performance guarantees 175 180 Insurance 68 101 Accrued interest 122 100 NARCO Buyout accrual 1,325 — Other (primarily operating expenses) 1,143 1,118 $ 9,162 $ 7,679 |
OTHER LIABILITIES (Tables)
OTHER LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities | December 31, 2022 2021 Income taxes $ 1,939 $ 2,152 Pension and other employee related 1,306 1,672 Deferred income 1,334 1,324 Operating lease liabilities 775 847 Environmental costs 393 393 Insurance 289 299 Product warranties and performance guarantees 38 43 Asset retirement obligations 24 26 Other 371 331 $ 6,469 $ 7,087 |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Income Statement Impact from Stock Options | The following table summarizes the impact to the Consolidated Statement of Operations from stock options: Years Ended December 31, 2022 2021 2020 Compensation expense $ 45 $ 55 $ 50 Future income tax benefit recognized 10 11 10 |
Share-based Compensation Fair Value Assumptions | The following table sets forth fair value per share information, including related weighted average assumptions, used to determine compensation cost: Years Ended December 31, 2022 2021 2020 Weighted average fair value per share of options granted during the year (1) $ 31.22 $ 32.42 $ 21.30 Assumptions: Expected annual dividend yield 2.58 % 2.31 % 2.59 % Expected volatility 23.05 % 24.69 % 18.76 % Risk-free rate of return 1.97 % 0.48 % 1.32 % Expected option term (years) 4.74 4.54 4.62 (1) Estimated on date of grant using Black-Scholes option-pricing model. |
Stock Options Activity | The following table summarizes information about stock option activity for the three years ended December 31, 2022: Number of Weighted Average Outstanding at December 31, 2019 18,731,562 $ 109.87 Granted 3,192,693 176.93 Exercised (4,424,754) 88.96 Lapsed or canceled (930,972) 156.62 Outstanding at December 31, 2020 16,568,529 125.75 Granted 2,065,574 204.99 Exercised (2,016,489) 113.01 Lapsed or canceled (764,675) 175.42 Outstanding at December 31, 2021 15,852,939 135.31 Granted 2,150,910 189.53 Exercised (3,046,107) 103.89 Lapsed or canceled (905,454) 186.35 Outstanding at December 31, 2022 14,052,288 $ 147.14 Vested and expected to vest at December 31, 2022 (1) 13,056,367 $ 143.72 Exercisable at December 31, 2022 9,509,606 $ 127.99 (1) Represents the sum of vested options of 9.5 million and expected to vest options of 3.5 million. Expected to vest options are derived by applying the pre-vesting forfeiture rate assumption to total outstanding unvested options of 4.5 million. |
Schedule of Share Based Compensation by Price Ranges | The following table summarizes information about stock options outstanding and exercisable at December 31, 2022: Range of Exercise Prices Options Outstanding Options Exercisable Number Weighted Average Life (1) Weighted Aggregate Number Weighted Aggregate $27.00–$64.99 700 0.20 $ 57.00 $ — 700 $ 57.00 $ — $65.00–$89.99 949,592 1.12 88.69 119 949,592 88.69 119 $90.00–$99.99 2,837,199 2.52 98.79 328 2,837,199 98.79 328 $100.00–$134.99 2,092,549 4.05 119.49 198 2,026,049 119.16 197 $135.00–$189.99 6,459,775 6.87 170.71 282 3,270,515 160.19 248 $190.00–$232.60 1,712,473 8.08 204.52 18 425,551 204.99 14 14,052,288 5.33 $ 147.14 $ 945 9,509,606 $ 127.99 $ 906 (1) Average remaining contractual life in years. |
Financial Statement Impact From Stock Options Exercised | The following table summarizes the financial statement impact from stock options exercised: Options Exercised Years Ended December 31, 2022 2021 2020 Intrinsic value (1) $ 310 $ 219 $ 379 Tax benefit realized 71 48 84 (1) Represents the amount by which the stock price exceeded the exercise price of the options on the date of exercise. |
Restricted Stock Units Activity | The following table summarizes information about RSU activity for the three years ended December 31, 2022: Number of Weighted Non-vested at December 31, 2019 3,240,065 $ 143.07 Granted 1,551,675 158.52 Vested (1,001,101) 117.84 Forfeited (394,116) 145.42 Non-vested at December 31, 2020 3,396,523 148.23 Granted 992,854 214.61 Vested (1,123,547) 144.34 Forfeited (308,293) 156.74 Non-vested at December 31, 2021 2,957,536 171.73 Granted 1,056,869 186.48 Vested (864,944) 157.21 Forfeited (441,453) 177.38 Non-vested at December 31, 2022 2,708,008 $ 181.10 |
Income Statement Impact from RSUs | The following table summarizes the impact to the Consolidated Statement of Operations from RSUs: Years Ended December 31, 2022 2021 2020 Compensation expense $ 143 $ 162 $ 118 Future income tax benefit recognized 29 23 24 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share Basic | The details of the earnings per share calculations for the years ended December 31, 2022, 2021, and 2020 are as follows (shares in millions): Basic Years Ended December 31, 2022 2021 2020 Net income attributable to Honeywell $ 4,966 $ 5,542 $ 4,779 Weighted average shares outstanding 677.1 692.3 704.1 Earnings per share of common stock—basic $ 7.33 $ 8.01 $ 6.79 |
Earnings Per Share Diluted | Assuming dilution Years Ended December 31, 2022 2021 2020 Net income attributable to Honeywell $ 4,966 $ 5,542 $ 4,779 Average shares Weighted average shares outstanding 677.1 692.3 704.1 Dilutive securities issuable—stock plans 6.0 8.1 7.1 Total weighted average diluted shares outstanding 683.1 700.4 711.2 Earnings per share of common stock—assuming dilution $ 7.27 $ 7.91 $ 6.72 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Pre-tax Tax After-Tax Year Ended December 31, 2022 Foreign exchange translation adjustment $ (354) $ — $ (354) Pension and other postretirement benefit adjustments (280) 47 (233) Changes in fair value of available for sale investments (8) — (8) Changes in fair value of designated cash flow hedges 9 6 15 $ (633) $ 53 $ (580) Year Ended December 31, 2021 Foreign exchange translation adjustment $ 302 $ — $ 302 Pension and other postretirement benefit adjustments 245 (59) 186 Changes in fair value of available for sale investments (3) — (3) Changes in fair value of designated cash flow hedges (4) 1 (3) $ 540 $ (58) $ 482 Year Ended December 31, 2020 Foreign exchange translation adjustment $ (214) $ — $ (214) Pension and other postretirement benefit adjustments 76 (2) 74 Changes in fair value of available for sale investments 4 — 4 Changes in fair value of designated cash flow hedges (61) 17 (44) $ (195) $ 15 $ (180) COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) December 31, 2022 2021 Cumulative foreign exchange translation adjustment $ (2,832) $ (2,478) Pension and other postretirement benefit adjustments (648) (415) Fair value adjustments of available for sale investments (7) 1 Fair value adjustments of designated cash flow hedges 12 (3) $ (3,475) $ (2,895) CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BY COMPONENT Foreign Pension Changes in Changes in Total Balance at December 31, 2019 $ (2,566) $ (675) $ — $ 44 $ (3,197) Other comprehensive income (loss) before reclassifications (201) 115 4 10 (72) Amounts reclassified from accumulated other comprehensive income (13) (41) — (54) (108) Net current period other comprehensive income (loss) (214) 74 4 (44) (180) Balance at December 31, 2020 $ (2,780) $ (601) $ 4 $ — $ (3,377) Other comprehensive income (loss) before reclassifications 314 268 (3) 17 596 Amounts reclassified from accumulated other comprehensive income (12) (82) — (20) (114) Net current period other comprehensive income (loss) 302 186 (3) (3) 482 Balance at December 31, 2021 $ (2,478) $ (415) $ 1 $ (3) $ (2,895) Other comprehensive income (loss) before reclassifications (344) (623) (8) 71 (904) Amounts reclassified from accumulated other comprehensive income (10) 390 — (56) 324 Net current period other comprehensive income (loss) (354) (233) (8) 15 (580) Balance at December 31, 2022 $ (2,832) $ (648) $ (7) $ 12 $ (3,475) |
Components Of Accumulated Other Comprehensive Income (Loss) | COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) December 31, 2022 2021 Cumulative foreign exchange translation adjustment $ (2,832) $ (2,478) Pension and other postretirement benefit adjustments (648) (415) Fair value adjustments of available for sale investments (7) 1 Fair value adjustments of designated cash flow hedges 12 (3) $ (3,475) $ (2,895) |
Change In Accumulated Other Comprehensive Income (Loss) By Component | CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BY COMPONENT Foreign Pension Changes in Changes in Total Balance at December 31, 2019 $ (2,566) $ (675) $ — $ 44 $ (3,197) Other comprehensive income (loss) before reclassifications (201) 115 4 10 (72) Amounts reclassified from accumulated other comprehensive income (13) (41) — (54) (108) Net current period other comprehensive income (loss) (214) 74 4 (44) (180) Balance at December 31, 2020 $ (2,780) $ (601) $ 4 $ — $ (3,377) Other comprehensive income (loss) before reclassifications 314 268 (3) 17 596 Amounts reclassified from accumulated other comprehensive income (12) (82) — (20) (114) Net current period other comprehensive income (loss) 302 186 (3) (3) 482 Balance at December 31, 2021 $ (2,478) $ (415) $ 1 $ (3) $ (2,895) Other comprehensive income (loss) before reclassifications (344) (623) (8) 71 (904) Amounts reclassified from accumulated other comprehensive income (10) 390 — (56) 324 Net current period other comprehensive income (loss) (354) (233) (8) 15 (580) Balance at December 31, 2022 $ (2,832) $ (648) $ (7) $ 12 $ (3,475) |
Reclassifications Out Of Accumulated Other Comprehensive Income (Loss) | RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Year Ended December 31, 2022 Affected Line in the Consolidated Statement of Operations Net Sales Cost of Cost of Selling, Other Interest and Total Amortization of pension and other postretirement benefit items: Actuarial losses recognized $ — $ — $ — $ — $ 516 $ — $ 516 Prior service (credit) recognized — — — — (84) — (84) Losses (gains) on cash flow hedges (13) (48) (14) 3 — — (72) Losses (gains) on excluded component of net investment hedges — — — — — (13) (13) Total before tax $ (13) $ (48) $ (14) $ 3 $ 432 $ (13) $ 347 Tax expense (benefit) (23) Total reclassifications for the period, net of tax $ 324 Year Ended December 31, 2021 Affected Line in the Consolidated Statement of Operations Net Sales Cost of Cost of Selling, Other Interest Total Amortization of pension and other postretirement benefit items: Actuarial losses recognized $ — $ — $ — $ — $ 7 $ — $ 7 Prior service (credit) recognized — — — — (116) — (116) Losses (gains) on cash flow hedges (5) (8) (2) (9) — — (24) Losses (gains) on excluded component of net investment hedges — — — — — (16) (16) Total before tax $ (5) $ (8) $ (2) $ (9) $ (109) $ (16) $ (149) Tax expense (benefit) 35 Total reclassifications for the period, net of tax $ (114) Year Ended December 31, 2020 Affected Line in the Consolidated Statement of Operations Net Sales Cost of Cost of Selling, Other Interest Total Amortization of pension and other postretirement benefit items: Actuarial losses recognized $ — $ — $ — $ — $ 57 $ — $ 57 Prior service (credit) recognized — — — — (108) — (108) Losses (gains) on cash flow hedges 3 (43) (11) 4 (28) — (75) Losses (gains) on excluded component of net investment hedges — — — — — (18) (18) Total before tax $ 3 $ (43) $ (11) $ 4 $ (79) $ (18) $ (144) Tax expense (benefit) 36 Total reclassifications for the period, net of tax $ (108) |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Loss Contingency | The following table summarizes information concerning the Company's recorded liabilities for environmental costs: Years Ended December 31, 2022 2021 2020 Beginning of year $ 618 $ 660 $ 709 Accruals for environmental matters deemed probable and reasonably estimable 186 168 173 Environmental liability payments (211) (210) (216) Other 22 — (6) End of year $ 615 $ 618 $ 660 |
Environmental Liabilities | Environmental liabilities are included in the following balance sheet accounts: December 31, 2022 2021 Accrued liabilities $ 222 $ 225 Other liabilities 393 393 $ 615 $ 618 |
Asbestos Related Liabilities | Year Ended December 31, 2022 Year Ended December 31, 2021 Year Ended December 31, 2020 Bendix NARCO Total Bendix NARCO Total Bendix NARCO Total Beginning of year $ 1,372 $ 689 $ 2,061 $ 1,441 $ 779 $ 2,220 $ 1,499 $ 858 $ 2,357 Accrual for update to estimated liability 93 (634) (541) 64 31 95 80 18 98 Change in estimated cost of future claims 41 — 41 29 — 29 42 — 42 Update of expected resolution values for pending claims 1 — 1 3 — 3 10 — 10 Asbestos-related liability payments (216) (55) (271) (165) (121) (286) (190) (97) (287) NARCO Buyout — 1,325 1,325 — — — — — — End of year $ 1,291 $ 1,325 $ 2,616 $ 1,372 $ 689 $ 2,061 $ 1,441 $ 779 $ 2,220 |
Insurance Recoveries for Asbestos Related Liabilities | Year Ended December 31, 2022 Year Ended December 31, 2021 Year Ended December 31, 2020 Bendix NARCO Total Bendix NARCO Total Bendix NARCO Total Beginning of year $ 142 $ 221 $ 363 $ 148 $ 254 $ 402 $ 153 $ 281 $ 434 Probable insurance recoveries related to estimated liability 5 2 7 7 — 7 10 — 10 Insurance receipts for asbestos-related liabilities (17) (20) (37) (13) (33) (46) (33) (25) (58) Insurance receivables settlements and write-offs — (68) (68) — — — 18 (2) 16 End of year $ 130 $ 135 $ 265 $ 142 $ 221 $ 363 $ 148 $ 254 $ 402 |
NARCO and Bendix Asbestos Related Balances | NARCO and Bendix asbestos-related balances are included in the following balance sheet accounts: December 31, 2022 2021 Other current assets $ 41 $ 41 Insurance recoveries for asbestos-related liabilities 224 322 $ 265 $ 363 Accrued liabilities $ 1,436 $ 261 Asbestos-related liabilities 1,180 1,800 $ 2,616 $ 2,061 |
Schedule Of Bendix Loss Contingencies Litigation Claims Activity | The following tables present information regarding Bendix related asbestos claims activity: Claims activity Years Ended December 31, 2022 2021 Claims unresolved at the beginning of year 6,401 6,242 Claims filed 2,014 2,611 Claims resolved (2,807) (2,452) Claims unresolved at the end of year 5,608 6,401 |
Schedule of Bendix Loss Contingencies Disease Distribution | Disease distribution of unresolved claims Years Ended December 31, 2022 2021 Mesothelioma and other cancer claims 3,283 3,760 Nonmalignant claims 2,325 2,641 Total claims 5,608 6,401 |
Average Resolution Values Per Claim Excluding Legal Costs | Honeywell has experienced average resolution values per claim excluding legal costs as follows: Years Ended December 31, 2022 2021 2020 2019 2018 (in whole dollars) Malignant claims $ 59,200 $ 56,000 $ 61,500 $ 50,200 $ 55,300 Nonmalignant claims $ 520 $ 400 $ 550 $ 3,900 $ 4,700 |
Movement In Standard Product Warranty Rollforward And Balances | The following table summarizes information concerning the Company's recorded obligations for product warranties and product performance guarantees: Years Ended December 31, 2022 2021 2020 Beginning of year $ 223 $ 243 $ 269 Accruals for warranties/guarantees issued during the year 117 146 164 Adjustment of pre-existing warranties/guarantees (12) (7) (18) Settlement of warranty/guarantee claims (115) (159) (172) End of year $ 213 $ 223 $ 243 Product warranties and product performance guarantees are included in the following balance sheet accounts: December 31, 2022 2021 Accrued liabilities $ 175 $ 180 Other liabilities 38 43 $ 213 $ 223 |
PENSION AND OTHER POSTRETIREM_2
PENSION AND OTHER POSTRETIREMENT BENEFITS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Defined Benefit Plans Disclosure | The following tables summarize the balance sheet impact, including the benefit obligations, assets, and funded status associated with the Company's significant pension and other postretirement benefit plans: Pension Benefits U.S. Plans Non-U.S. Plans 2022 2021 2022 2021 Change in benefit obligation: Benefit obligation at beginning of year $ 17,391 $ 18,054 $ 6,999 $ 7,670 Service cost 86 105 19 26 Interest cost 380 306 103 77 Plan amendments — — — (3) Actuarial (gains) losses (1) (3,135) 141 (1,929) (403) Benefits paid (1,421) (1,221) (261) (249) Settlements and curtailments (13) — — — Foreign currency translation — — (533) (121) Other 2 6 2 2 Benefit obligation at end of year 13,290 17,391 4,400 6,999 Change in plan assets: Fair value of plan assets at beginning of year 20,560 20,396 8,396 8,450 Actual return on plan assets (2,161) 1,344 (2,187) 166 Company contributions 37 35 17 101 Benefits paid (1,421) (1,221) (261) (249) Settlements and curtailments (13) — — — Foreign currency translation — — (664) (74) Other 3 6 3 2 Fair value of plan assets at end of year 17,005 20,560 5,304 8,396 Funded status of plans $ 3,715 $ 3,169 $ 904 $ 1,397 Amounts recognized in the Consolidated Balance Sheet consist of: Prepaid pension benefit cost (2) $ 3,970 $ 3,528 $ 1,356 $ 2,105 Accrued pension liabilities—current (3) (28) (33) (14) (14) Accrued pension liabilities—noncurrent (4) (227) (326) (438) (694) Net amount recognized $ 3,715 $ 3,169 $ 904 $ 1,397 (1) The actuarial gains incurred in 2022 related to the Company's U.S. plans are primarily the result of an increase in the discount rate assumption, partially offset by actuarial losses primarily as a result of changes in demographic experience and demographic assumptions used to estimate the benefit obligations as of December 31, 2022, compared to December 31, 2021. Actuarial gains incurred in 2022 related to the Company's non-U.S. plans are primarily the result of an increase in the discount rate assumption, partially offset by inflation related assumptions used to estimate the benefit obligations as of December 31, 2022, compared to December 31, 2021. Actuarial losses incurred in 2021 related to the Company's U.S. plans are primarily the result of changes in demographic experience and demographic assumptions, partially offset by actuarial gains due to an increase in the discount rate assumption used to estimate the benefit obligations as of December 31, 2021, compared to December 31, 2020. Actuarial gains incurred in 2021 related to the Company's non-U.S. plans are primarily the result of an increase in the discount rate assumption used to estimate the benefit obligations as of December 31, 2021, compared to December 31, 2020. (2) Included in Other assets in the Consolidated Balance Sheet. (3) Included in Accrued liabilities in the Consolidated Balance Sheet. (4) Included in Other liabilities in the Consolidated Balance Sheet. Other 2022 2021 Change in benefit obligation: Benefit obligation at beginning of year $ 196 $ 229 Service cost — — Interest cost 5 5 Plan amendments — — Actuarial (gains) losses (54) (8) Benefits paid (14) (30) Benefit obligation at end of year 133 196 Change in plan assets: Fair value of plan assets at beginning of year — — Actual return on plan assets — — Company contributions — — Benefits paid — — Fair value of plan assets at end of year — — Funded status of plans $ (133) $ (196) Amounts recognized in the Consolidated Balance Sheet consist of: Accrued liabilities $ (21) $ (25) Postretirement benefit obligations other than pensions (1) (112) (171) Net amount recognized $ (133) $ (196) (1) Excludes non-U.S. plan of $34 million and $37 million as of December 31, 2022, and 2021, respectively. |
Other Changes in Plan Assets Recognized in Other Comprehensive Income | Amounts recognized in Accumulated other comprehensive (income) loss associated with the Company's significant pension and other postretirement benefit plans at December 31, 2022, and 2021, are as follows: Pension Benefits U.S. Plans Non-U.S. Plans 2022 2021 2022 2021 Prior service (credit) cost $ (50) $ (92) $ 18 $ 20 Net actuarial (gain) loss 814 492 360 397 Net amount recognized $ 764 $ 400 $ 378 $ 417 Other 2022 2021 Prior service (credit) cost $ (50) $ (92) Net actuarial (gain) loss (84) (34) Net amount recognized $ (134) $ (126) |
Net Periodic Benefit Cost | The components of net periodic benefit (income) cost and other amounts recognized in Other comprehensive (income) loss for the Company's significant pension and other postretirement benefit plans include the following components: Net periodic benefit (income) cost Pension Benefits U.S. Plans Non-U.S. Plans 2022 2021 2020 2022 2021 2020 Service cost $ 86 $ 105 $ 99 $ 19 $ 26 $ 23 Interest cost 380 306 461 103 77 106 Expected return on plan assets (1,281) (1,220) (1,135) (278) (348) (336) Amortization of prior service (credit) cost (42) (42) (42) — — — Recognition of actuarial (gains) losses (14) 31 26 537 9 18 Settlements and curtailments (2) — 4 — — — Net periodic benefit (income) cost $ (873) $ (820) $ (587) $ 381 $ (236) $ (189) Other changes in plan assets and benefit obligations recognized in Other comprehensive (income) loss U.S. Plans Non-U.S. Plans 2022 2021 2020 2022 2021 2020 Actuarial (gains) losses $ 307 $ (14) $ (9) $ 294 $ (221) $ (73) Prior service (credit) cost — — — — (3) 2 Prior service credit recognized during year 43 43 42 (1) (1) — Actuarial (gains) losses recognized during year 15 — (30) (537) (9) (18) Foreign currency translation — — — 204 (1) 19 Total recognized in Other comprehensive (income) loss $ 365 $ 29 $ 3 $ (40) $ (235) $ (70) Total recognized in net periodic benefit (income) cost and Other comprehensive (income) loss $ (508) $ (791) $ (584) $ 341 $ (471) $ (259) Net periodic benefit (income) cost Other Postretirement Benefits Years Ended December 31, 2022 2021 2020 Service cost $ — $ — $ — Interest cost 5 5 8 Amortization of prior service (credit) cost (42) (74) (66) Recognition of actuarial (gains) losses (4) (2) — Net periodic benefit (income) cost $ (41) $ (71) $ (58) Other changes in plan assets and benefit obligations Years Ended December 31, 2022 2021 2020 Actuarial (gains) losses $ (54) $ (8) $ (8) Prior service (credit) cost — — (65) Prior service credit recognized during year 42 74 66 Actuarial (gains) losses recognized during year 4 2 — Total recognized in other comprehensive (income) loss $ (8) $ 68 $ (7) Total recognized in net periodic benefit (income) cost and Other comprehensive (income) loss $ (49) $ (3) $ (65) |
Assumptions Used in Calculations | Major actuarial assumptions used in determining the benefit obligations and net periodic benefit (income) cost for the Company's significant benefit plans are presented in the following table as weighted averages: Pension Benefits U.S. Plans Non-U.S. Plans 2022 2021 2020 2022 2021 2020 Actuarial assumptions used to determine benefit obligations as of December 31: Discount rate 5.17 % 2.87 % 2.50 % 4.50 % 1.79 % 1.23 % Expected annual rate of compensation increase 3.25 % 3.25 % 3.25 % 2.69 % 2.56 % 2.43 % Actuarial assumptions used to determine net periodic benefit (income) cost for years ended December 31: Discount rate—benefit obligation 2.87 % 2.50 % 3.22 % 1.77 % 1.24 % 1.81 % Discount rate—service cost 2.98 % 2.68 % 3.33 % 1.48 % 1.00 % 1.48 % Discount rate—interest cost 2.26 % 1.76 % 2.76 % 1.59 % 1.00 % 1.56 % Expected rate of return on plan assets 6.40 % 6.15 % 6.15 % 3.61 % 4.03 % 4.66 % Expected annual rate of compensation increase 3.25 % 3.25 % 3.25 % 2.56 % 2.43 % 2.47 % Other Postretirement Benefits 2022 2021 2020 Actuarial assumptions used to determine benefit obligations as of December 31: Discount rate 5.32 % 2.66 % 2.20 % Actuarial assumptions used to determine net periodic benefit cost for years ended December 31: Discount rate (1) 2.66 % 2.20 % 2.36 % (1) Discount rate was 3.03% for January 1, 2020, through September 30, 2020. The rate was changed to 2.36% for the remainder of 2020 due to a Plan remeasurement as of October 1, 2020. |
Accumulated Benefit Obligations in Excess of Plan Assets | The following amounts relate to the Company's significant pension plans with accumulated benefit obligations exceeding the fair value of plan assets: December 31, U.S. Plans Non-U.S. Plans 2022 2021 2022 2021 Projected benefit obligation $ 255 $ 359 $ 682 $ 964 Accumulated benefit obligation $ 253 $ 346 $ 664 $ 932 Fair value of plan assets $ — $ — $ 230 $ 256 |
Fair Value of Plan Assets | The fair values of both the Company's U.S. and non-U.S. pension plans assets by asset category are as follows: U.S. Plans December 31, 2022 Total Level 1 Level 2 Level 3 Equities: Honeywell common stock $ 3,336 $ 3,336 $ — $ — U.S. equities 6 6 — — Fixed income: Short-term investments 855 855 — — Government securities 1,492 — 1,492 — Corporate bonds 6,632 — 6,632 — Mortgage/Asset-backed securities 1,119 — 1,119 — Insurance contracts 8 — 8 — Direct investments: Direct private investments 1,284 — — 1,284 Real estate properties 1,005 — — 1,005 Total $ 15,737 $ 4,197 $ 9,251 $ 2,289 Investments measured at NAV: Private funds 1,258 Real estate funds 10 Commingled funds — Total assets at fair value $ 17,005 U.S. Plans December 31, 2021 Total Level 1 Level 2 Level 3 Equities: Honeywell common stock $ 3,251 $ 3,251 $ — $ — U.S. equities — — — — Fixed income: Short-term investments 1,767 1,767 — — Government securities 1,373 — 1,373 — Corporate bonds 9,588 — 9,588 — Mortgage/Asset-backed securities 1,072 — 1,072 — Insurance contracts 8 — 8 — Direct investments: Direct private investments 1,336 — — 1,336 Real estate properties 843 — — 843 Total $ 19,238 $ 5,018 $ 12,041 $ 2,179 Investments measured at NAV: Private funds 1,244 Real estate funds 14 Commingled funds 64 Total assets at fair value $ 20,560 Non-U.S. Plans December 31, 2022 Total Level 1 Level 2 Level 3 Equities: U.S. equities $ 144 $ 2 $ 142 $ — Non-U.S. equities 374 — 374 — Fixed income: Short-term investments 341 341 — — Government securities 2,045 — 2,045 — Corporate bonds 1,031 — 1,031 — Mortgage/Asset-backed securities 31 — 31 — Insurance contracts 115 — 115 — Insurance buy-in contracts 950 — — 950 Investments in private funds: Private funds 90 — 54 36 Real estate funds 130 — — 130 Total $ 5,251 $ 343 $ 3,792 $ 1,116 Investments measured at NAV: Private funds 10 Real estate funds 43 Total assets at fair value $ 5,304 Non-U.S. Plans December 31, 2021 Total Level 1 Level 2 Level 3 Equities: U.S. equities $ 229 $ 1 $ 228 $ — Non-U.S. equities 824 — 824 — Fixed income: Short-term investments 571 571 — — Government securities 3,893 — 3,893 — Corporate bonds 1,681 — 1,681 — Mortgage/Asset-backed securities 79 — 79 — Insurance contracts 123 — 123 — Insurance buy-in contracts 691 — — 691 Investments in private funds: Private funds 74 — 41 33 Real estate funds 163 — — 163 Total $ 8,328 $ 572 $ 6,869 $ 887 Investments measured at NAV: Private funds 17 Real estate funds 51 Total assets at fair value $ 8,396 |
Changes in Fair Value of Level 3 Plan Assets | The following table summarizes changes in the fair value of level 3 assets for both U.S. and non-U.S. plans: U.S. Plans Non-U.S. Plans Direct Real Estate Private Real Estate Insurance Buy-in Contracts Balance at December 31, 2020 $ 1,220 $ 651 $ 29 $ 147 $ 767 Actual return on plan assets: Relating to assets still held at year-end 11 96 4 23 (76) Relating to assets sold during the year 174 — — 4 — Purchases 194 99 — — — Sales and settlements (263) (3) — (11) — Balance at December 31, 2021 1,336 843 33 163 691 Actual return on plan assets: Relating to assets still held at year-end (66) 88 11 (33) (477) Relating to assets sold during the year 98 (24) — 1 — Purchases 75 148 — — 736 Sales and settlements (159) (50) (8) (1) — Balance at December 31, 2022 $ 1,284 $ 1,005 $ 36 $ 130 $ 950 |
Estimated Future Benefit Payments | Benefit payments, including amounts to be paid from Company assets, and reflecting expected future service, as appropriate, are expected to be paid as follows: U.S. Plans Non-U.S. Plans 2023 $ 1,139 $ 247 2024 1,121 249 2025 1,104 256 2026 1,087 264 2027 1,067 269 2028-2032 4,943 1,271 |
Assumed Health Care Cost Trend Rates | December 31, 2022 2021 Assumed health care cost trend rate: Health care cost trend rate assumed for next year 7.50 % 6.50 % Rate that the cost trend rate gradually declines to 5.00 % 5.00 % Year that the rate reaches the rate it is assumed to remain at 2031 2029 |
Schedule Of Benefit Payments Reflecting Expected Future Service | Benefit payments reflecting expected future service, as appropriate, are expected to be paid as follows: Without Impact of Net of 2023 $ 24 $ 22 2024 13 13 2025 13 12 2026 12 12 2027 12 11 2028-2032 51 48 |
OTHER (INCOME) EXPENSE (Tables)
OTHER (INCOME) EXPENSE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Other (Income) Expense | Years Ended December 31, 2022 2021 2020 Interest income $ (138) $ (102) $ (107) Pension ongoing income—non-service (602) (1,202) (901) Other postretirement income—non-service (41) (71) (57) Equity income of affiliated companies (61) (67) (66) Loss (gain) on sale of non-strategic businesses and assets (22) (102) 3 Foreign exchange 48 25 (68) Expense related to UOP Matters 45 160 — Expense related to Russia-Ukraine conflict 45 — — Reimbursement receivables charge — — 509 Net expense related to the NARCO Buyout and HWI Sale 342 — — Other (net) 18 (19) 12 $ (366) $ (1,378) $ (675) |
SEGMENT FINANCIAL DATA (Tables)
SEGMENT FINANCIAL DATA (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Financial Data | Years Ended December 31, 2022 2021 2020 Net sales Aerospace Products $ 6,330 $ 6,158 $ 7,194 Services 5,497 4,868 4,350 Total 11,827 11,026 11,544 Honeywell Building Technologies Products 4,591 4,098 3,868 Services 1,409 1,441 1,321 Total 6,000 5,539 5,189 Performance Materials and Technologies Products 8,593 8,008 7,548 Services 2,134 2,005 1,875 Total 10,727 10,013 9,423 Safety and Productivity Solutions Products 6,446 7,379 6,127 Services 461 435 354 Total 6,907 7,814 6,481 Corporate and All Other Services 5 — — Total 5 — — $ 35,466 $ 34,392 $ 32,637 Depreciation and amortization Aerospace $ 285 $ 278 $ 241 Honeywell Building Technologies 92 67 55 Performance Materials and Technologies 478 454 440 Safety and Productivity Solutions 191 237 223 Corporate and All Other 158 102 44 $ 1,204 $ 1,138 $ 1,003 Segment profit Aerospace $ 3,228 $ 3,051 $ 2,904 Honeywell Building Technologies 1,439 1,238 1,099 Performance Materials and Technologies 2,354 2,120 1,851 Safety and Productivity Solutions 1,080 1,029 907 Corporate and All Other (412) (226) (96) $ 7,689 $ 7,212 $ 6,665 Years Ended December 31, 2022 2021 2020 Capital expenditures Aerospace $ 246 $ 284 $ 248 Honeywell Building Technologies 74 62 66 Performance Materials and Technologies 318 265 252 Safety and Productivity Solutions 50 190 288 Corporate and All Other 78 94 52 $ 766 $ 895 $ 906 Total assets Aerospace $ 12,189 $ 11,490 $ 11,035 Honeywell Building Technologies 6,599 6,543 6,351 Performance Materials and Technologies 17,887 18,021 16,772 Safety and Productivity Solutions 10,892 11,242 10,640 Corporate and All Other 14,708 17,174 19,788 $ 62,275 $ 64,470 $ 64,586 |
Reconciliation of Operating Profit Loss From Segments to Consolidated | A reconciliation of segment profit to consolidated income before taxes are as follows: Years Ended December 31, 2022 2021 2020 Segment profit $ 7,689 $ 7,212 $ 6,665 Interest and other financial charges (414) (343) (359) Stock compensation expense (1) (188) (217) (168) Pension ongoing income (expense) (2) 993 1,083 785 Pension mark-to-market expense (523) (40) (44) Other postretirement income (2) 41 71 57 Repositioning and other charges (3) (1,266) (569) (575) Other (4) 47 38 (349) Income before taxes $ 6,379 $ 7,235 $ 6,012 (1) Amounts included in Selling, general and administrative expenses. (2) Amounts included in Cost of products and services sold, Selling, general and administrative expenses (service cost component) and Other (income) expense (non-service cost component). (3) Amounts included in Cost of products and services sold, Selling, general and administrative expenses, and Other (income) expense. (4) Amounts include the other components of Other (income) expense not included within other categories in this reconciliation. Equity income of affiliated companies is included in segment profit. |
GEOGRAPHIC AREAS - FINANCIAL _2
GEOGRAPHIC AREAS - FINANCIAL DATA (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Geographic Areas Financial Data [Abstract] | |
Geographic Areas - Financial Data | Net Sales (1) Long-lived Assets (2) Years Ended December 31, Years Ended December 31, 2022 2021 2020 2022 2021 2020 United States $ 21,262 $ 20,662 $ 19,665 $ 3,949 $ 3,964 $ 3,823 Europe 6,840 6,800 6,356 537 566 628 Other international 7,364 6,930 6,616 985 1,032 1,119 $ 35,466 $ 34,392 $ 32,637 $ 5,471 $ 5,562 $ 5,570 (1) Sales between geographic areas approximate market value and are not significant. Net sales are classified according to their country of origin. Included in United States Net sales are export sales of $4,187 million, $4,037 million, and $4,000 million for the years ended December 31, 2022, 2021, and 2020, respectively. (2) Long-lived assets are comprised of Property, plant and equipment - net. |
SUPPLEMENTAL CASH FLOW INFORM_2
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | Years Ended December 31, 2022 2021 2020 Net payments for repositioning and other charges: Severance and exit cost payments $ (275) $ (382) $ (564) Environmental payments (211) (210) (216) Reimbursement receipts 140 140 176 Insurance receipts for asbestos-related liabilities 37 46 58 Insurance receivables settlements and write-offs 68 — — Asbestos-related liability payments (271) (286) (287) $ (512) $ (692) $ (833) Interest paid, net of amounts capitalized $ 375 $ 339 $ 329 Income taxes paid, net of refunds 1,324 1,202 1,173 Non-cash investing and financing activities: Common stock contributed to savings plans 196 191 211 Marketable securities contributed to non-U.S. pension plans — 81 93 Impact of Quantinuum contribution (1) — 460 — Noncontrolling interest non-cash contribution (1) — 419 — Loan in exchange for prepaid assets — 25 — Receipt of Garrett Series B Preferred Stock (2) — 577 — (1) See Note 2 Acquisitions and Divestitures for additional information for non-cash amounts recognized related to the combination of Honeywell Quantum Solutions and Cambridge Quantum Computing to form Quantinuum, a newly formed entity, Honeywell consolidates as the controlling majority-owner. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other Assets With Determinable Lives [Line Items] | |||
Research and development expense | $ 1,478 | $ 1,333 | $ 1,334 |
Customer-sponsored research and development | 1,336 | 1,284 | 1,200 |
Capitalized contract fulfillment costs | 1,300 | 1,300 | |
Capitalized contract amounts recognized as cost of products and services sold | $ 200 | $ 100 | $ 100 |
Minimum | |||
Other Assets With Determinable Lives [Line Items] | |||
Finite lived intangible assets estimated useful lives | 2 years | ||
Maximum | |||
Other Assets With Determinable Lives [Line Items] | |||
Finite lived intangible assets estimated useful lives | 20 years | ||
Software and Software Development Costs | Maximum | |||
Other Assets With Determinable Lives [Line Items] | |||
Finite lived intangible assets estimated useful lives | 7 years | ||
Building and Building Improvements | Minimum | |||
Property Plant And Equipment Details [Line Items] | |||
Property, plant and equipment, useful life | 10 years | ||
Building and Building Improvements | Maximum | |||
Property Plant And Equipment Details [Line Items] | |||
Property, plant and equipment, useful life | 50 years | ||
Machinery and equipment | Minimum | |||
Property Plant And Equipment Details [Line Items] | |||
Property, plant and equipment, useful life | 3 years | ||
Machinery and equipment | Maximum | |||
Property Plant And Equipment Details [Line Items] | |||
Property, plant and equipment, useful life | 16 years |
ACQUISITIONS AND DIVESTITURES -
ACQUISITIONS AND DIVESTITURES - Narrative (Details) | 12 Months Ended | ||||
Jan. 18, 2022 USD ($) | Mar. 15, 2021 USD ($) | Dec. 31, 2022 USD ($) entity | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Business Acquisition [Line Items] | |||||
Goodwill | $ 17,497,000,000 | $ 17,756,000,000 | |||
Impact of Quantinuum contribution | 0 | 460,000,000 | $ 0 | ||
Noncontrolling interest non-cash contribution | 0 | 419,000,000 | 0 | ||
Divestiture [Abstract] | |||||
Proceeds from sales of businesses, net of fees paid | 0 | 203,000,000 | 0 | ||
Gain on sale of non-strategic businesses and assets | 22,000,000 | 102,000,000 | (3,000,000) | ||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Russian Domiciled Entities | |||||
Divestiture [Abstract] | |||||
Proceeds from sales of businesses, net of fees paid | $ 1,000,000 | ||||
Divestiture, number of business entities sold | entity | 3 | ||||
Pretax gain on disposition of business | $ 22,000,000 | ||||
Honeywell International | |||||
Business Acquisition [Line Items] | |||||
Noncontrolling interest, ownership percentage | 4.20% | ||||
Retail Footwear | |||||
Divestiture [Abstract] | |||||
Proceeds from sales of businesses, net of fees paid | $ 230,000,000 | ||||
Gain on sale of non-strategic businesses and assets | 95,000,000 | ||||
Total Acquisitions | |||||
Business Acquisition [Line Items] | |||||
Purchase price | 261,000,000 | ||||
Sparta Systems | |||||
Business Acquisition [Line Items] | |||||
Goodwill | $ 1,011,000,000 | ||||
Name of acquired entity | Sparta Systems | ||||
Controlling Interest Ownership Percentage By Parent | 100% | ||||
Intangible Assets | $ 383,000,000 | ||||
Purchase price | $ 1,303,000,000 | ||||
Quantinuum | |||||
Business Acquisition [Line Items] | |||||
Goodwill | $ 945,000,000 | ||||
Name of acquired entity | Quantinuum | ||||
Payments to acquire interest in joint venture | $ 270,000,000 | ||||
Impact of Quantinuum contribution | 460,000,000 | ||||
Fair value adjustment of initial ownership interest in acquired entity | 22,000,000 | ||||
Intangible Assets | $ 90,000,000 | ||||
Quantinuum | Honeywell International | |||||
Business Acquisition [Line Items] | |||||
Noncontrolling interest, ownership percentage | 4.20% | ||||
Controlling Interest Ownership Percentage By Parent | 54% | ||||
Quantinuum | Cambridge Quantum Computing | |||||
Business Acquisition [Line Items] | |||||
Payments to acquire interest in joint venture | $ 12,000,000 | ||||
Noncontrolling interest non-cash contribution | 419,000,000 | ||||
Rocky Research And Sine Group | |||||
Business Acquisition [Line Items] | |||||
Goodwill | $ 167,000,000 | ||||
Name of acquired entity | Rocky Research and Sine Group | ||||
US Digital Design, Inc. | |||||
Business Acquisition [Line Items] | |||||
Percent acquired | 100% | ||||
Consideration amount | $ 186,000,000 | ||||
Intangible assets acquired | 53,000,000 | ||||
Goodwill | $ 130,000,000 |
REVENUE RECOGNITION AND CONTR_3
REVENUE RECOGNITION AND CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Net Sales | $ 35,466 | $ 34,392 | $ 32,637 |
Disaggregation of revenue, timing of recognition - percentage | 100% | 100% | 100% |
Product | |||
Disaggregation of Revenue [Line Items] | |||
Net Sales | $ 25,960 | $ 25,643 | $ 24,737 |
Disaggregation of revenue, timing of recognition - percentage | 73% | 75% | 76% |
Product | Transferred at Point in Time | |||
Disaggregation of Revenue [Line Items] | |||
Disaggregation of revenue, timing of recognition - percentage | 59% | 58% | 61% |
Product | Transferred over Time | |||
Disaggregation of Revenue [Line Items] | |||
Disaggregation of revenue, timing of recognition - percentage | 14% | 17% | 15% |
Service | |||
Disaggregation of Revenue [Line Items] | |||
Net Sales | $ 9,506 | $ 8,749 | $ 7,900 |
Disaggregation of revenue, timing of recognition - percentage | 27% | 25% | 24% |
Service | Transferred at Point in Time | |||
Disaggregation of Revenue [Line Items] | |||
Disaggregation of revenue, timing of recognition - percentage | 8% | 8% | 8% |
Service | Transferred over Time | |||
Disaggregation of Revenue [Line Items] | |||
Disaggregation of revenue, timing of recognition - percentage | 19% | 17% | 16% |
Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Net Sales | $ 35,466 | $ 34,392 | $ 32,637 |
Corporate and All Other | |||
Disaggregation of Revenue [Line Items] | |||
Net Sales | 5 | 0 | 0 |
Aerospace | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Net Sales | 11,827 | 11,026 | 11,544 |
Aerospace | Operating Segments | Commercial Aviation Original Equipment | |||
Disaggregation of Revenue [Line Items] | |||
Net Sales | 2,089 | 1,720 | 1,940 |
Aerospace | Operating Segments | Commercial Aviation Aftermarket | |||
Disaggregation of Revenue [Line Items] | |||
Net Sales | 5,108 | 4,155 | 3,812 |
Aerospace | Operating Segments | Defense and Space | |||
Disaggregation of Revenue [Line Items] | |||
Net Sales | 4,630 | 5,151 | 5,792 |
Honeywell Building Technologies | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Net Sales | 6,000 | 5,539 | 5,189 |
Honeywell Building Technologies | Operating Segments | Products | |||
Disaggregation of Revenue [Line Items] | |||
Net Sales | 3,638 | 3,173 | 2,967 |
Honeywell Building Technologies | Operating Segments | Building Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Net Sales | 2,362 | 2,366 | 2,222 |
Performance Materials and Technologies | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Net Sales | 10,727 | 10,013 | 9,423 |
Performance Materials and Technologies | Operating Segments | UOP | |||
Disaggregation of Revenue [Line Items] | |||
Net Sales | 2,404 | 2,348 | 2,177 |
Performance Materials and Technologies | Operating Segments | Process Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Net Sales | 4,731 | 4,611 | 4,590 |
Performance Materials and Technologies | Operating Segments | Advanced Materials | |||
Disaggregation of Revenue [Line Items] | |||
Net Sales | 3,592 | 3,054 | 2,656 |
Safety and Productivity Solutions | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Net Sales | 6,907 | 7,814 | 6,481 |
Safety and Productivity Solutions | Operating Segments | Sensing and Safety Technologies | |||
Disaggregation of Revenue [Line Items] | |||
Net Sales | 2,952 | 3,260 | 3,246 |
Safety and Productivity Solutions | Operating Segments | Productivity Solutions and Services | |||
Disaggregation of Revenue [Line Items] | |||
Net Sales | 1,619 | 1,614 | 1,273 |
Safety and Productivity Solutions | Operating Segments | Warehouse and Workflow Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Net Sales | $ 2,336 | $ 2,940 | $ 1,962 |
REVENUE RECOGNITION AND CONTR_4
REVENUE RECOGNITION AND CONTRACTS WITH CUSTOMERS - Contract Balances (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Change in Contract Balances [Roll Forward] | |||
Contract assets | $ 2,294 | $ 2,060 | $ 1,618 |
Change in contract assets—increase (decrease) | 234 | 442 | |
Contract liability | (4,583) | (4,290) | $ (4,033) |
Change in contract liabilities—(increase) decrease | (293) | (257) | |
Net change | (59) | 185 | |
Contract with customer liability revenue recognized | 1,838 | 1,925 | |
Unbilled contracts receivable | $ 2,265 | $ 2,035 |
REVENUE RECOGNITION AND CONTR_5
REVENUE RECOGNITION AND CONTRACTS WITH CUSTOMERS - Performance Obligations (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation - amount | $ 29,558 |
Within One Year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percentage | 62% |
Greater Than One Year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percentage | 38% |
Corporate and All Other | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation - amount | $ 5 |
Aerospace | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation - amount | 11,607 |
Honeywell Building Technologies | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation - amount | 6,991 |
Performance Materials and Technologies | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation - amount | 8,111 |
Safety and Productivity Solutions | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation - amount | $ 2,844 |
REPOSITIONING AND OTHER CHARG_3
REPOSITIONING AND OTHER CHARGES - Repositioning and Other Charges (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Component of Operating Other Cost and Expense [Abstract] | |||
Total net repositioning charges | $ 364,000,000 | $ 318,000,000 | $ 518,000,000 |
Asbestos-related charges, net of insurance and reimbursements | 532,000,000 | 129,000,000 | 50,000,000 |
Probable and reasonably estimable environmental liabilities, net of reimbursements | 28,000,000 | 22,000,000 | 27,000,000 |
Other charges | 342,000,000 | 100,000,000 | (20,000,000) |
Total net repositioning and other charges | 1,266,000,000 | 569,000,000 | 575,000,000 |
Severance | |||
Component of Operating Other Cost and Expense [Abstract] | |||
Total net repositioning charges | 122,000,000 | 80,000,000 | 475,000,000 |
Asset impairments | |||
Component of Operating Other Cost and Expense [Abstract] | |||
Total net repositioning charges | 176,000,000 | 117,000,000 | 21,000,000 |
Exit costs | |||
Component of Operating Other Cost and Expense [Abstract] | |||
Total net repositioning charges | 122,000,000 | 134,000,000 | 69,000,000 |
Reserve adjustments | |||
Component of Operating Other Cost and Expense [Abstract] | |||
Total net repositioning charges | $ (56,000,000) | $ (13,000,000) | $ (47,000,000) |
REPOSITIONING AND OTHER CHARG_4
REPOSITIONING AND OTHER CHARGES - Pretax Distribution of Total Net Repositioning (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Net Repositioning And Other Charges By Income Statement Classification [Line Items] | |||
Total net repositioning charges | $ 1,266 | $ 569 | $ 575 |
Cost of products and services sold | |||
Net Repositioning And Other Charges By Income Statement Classification [Line Items] | |||
Total net repositioning charges | 572 | 457 | 308 |
Selling, general and administrative expenses | |||
Net Repositioning And Other Charges By Income Statement Classification [Line Items] | |||
Total net repositioning charges | 309 | 112 | 267 |
Other (income) expense | |||
Net Repositioning And Other Charges By Income Statement Classification [Line Items] | |||
Total net repositioning charges | $ 385 | $ 0 | $ 0 |
REPOSITIONING AND OTHER CHARG_5
REPOSITIONING AND OTHER CHARGES - Pretax Impact of Total Net Repositioning and Other Charges by Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Pretax Impact Of Total Net Repositioning And Other Charges By Segment [Line Items] | |||
Total net repositioning charges | $ 1,266 | $ 569 | $ 575 |
Corporate and All Other | |||
Pretax Impact Of Total Net Repositioning And Other Charges By Segment [Line Items] | |||
Total net repositioning charges | 642 | 202 | 110 |
Aerospace | |||
Pretax Impact Of Total Net Repositioning And Other Charges By Segment [Line Items] | |||
Total net repositioning charges | 41 | 62 | 157 |
Honeywell Building Technologies | |||
Pretax Impact Of Total Net Repositioning And Other Charges By Segment [Line Items] | |||
Total net repositioning charges | 63 | 13 | 100 |
Performance Materials and Technologies | |||
Pretax Impact Of Total Net Repositioning And Other Charges By Segment [Line Items] | |||
Total net repositioning charges | 332 | 24 | 167 |
Safety and Productivity Solutions | |||
Pretax Impact Of Total Net Repositioning And Other Charges By Segment [Line Items] | |||
Total net repositioning charges | $ 188 | $ 268 | $ 41 |
REPOSITIONING AND OTHER CHARG_6
REPOSITIONING AND OTHER CHARGES - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2022 USD ($) employee | Dec. 31, 2021 USD ($) employee | Dec. 31, 2020 USD ($) employee | |
Net Repositioning And Other Charges [Line Items] | |||
Restructuring and related cost, incurred cost | $ 364,000,000 | $ 318,000,000 | $ 518,000,000 |
Number of employees severed | employee | 4,345 | 6,432 | 14,159 |
Charges | $ 420,000,000 | $ 331,000,000 | $ 565,000,000 |
Net expense related to the NARCO Buyout and HWI Sale | 342,000,000 | 0 | 0 |
Other (Income) Expense | (366,000,000) | (1,378,000,000) | (675,000,000) |
Other charges | (342,000,000) | (100,000,000) | 20,000,000 |
NARCO | |||
Net Repositioning And Other Charges [Line Items] | |||
Net expense related to the NARCO Buyout and HWI Sale | 342,000,000 | ||
Russia And Ukraine Conflict | |||
Net Repositioning And Other Charges [Line Items] | |||
Other (Income) Expense | 295,000,000 | ||
Russia And Ukraine Conflict | Cost of products and services sold | |||
Net Repositioning And Other Charges [Line Items] | |||
Other (Income) Expense | 65,000,000 | ||
Russia And Ukraine Conflict | Other (income) expense | |||
Net Repositioning And Other Charges [Line Items] | |||
Other (Income) Expense | 45,000,000 | ||
Tax valuation allowance adjustment | (2,000,000) | ||
Severance | |||
Net Repositioning And Other Charges [Line Items] | |||
Restructuring and related cost, incurred cost | 122,000,000 | 80,000,000 | 475,000,000 |
Charges | 122,000,000 | 80,000,000 | 475,000,000 |
Asset impairments | |||
Net Repositioning And Other Charges [Line Items] | |||
Restructuring and related cost, incurred cost | 176,000,000 | 117,000,000 | 21,000,000 |
Charges | 176,000,000 | 117,000,000 | 21,000,000 |
Exit costs | |||
Net Repositioning And Other Charges [Line Items] | |||
Restructuring and related cost, incurred cost | 122,000,000 | 134,000,000 | 69,000,000 |
Charges | 122,000,000 | 134,000,000 | 69,000,000 |
Reserve adjustments | |||
Net Repositioning And Other Charges [Line Items] | |||
Restructuring and related cost, incurred cost | (56,000,000) | (13,000,000) | $ (47,000,000) |
COVID-19 Related | |||
Net Repositioning And Other Charges [Line Items] | |||
Other charges | 41,000,000 | $ 105,000,000 | |
Contract Adjustments, Impairment Of Other Assets And Employee Severance | Russia And Ukraine Conflict | Selling, general and administrative expenses | |||
Net Repositioning And Other Charges [Line Items] | |||
Other (Income) Expense | $ 185,000,000 |
REPOSITIONING AND OTHER CHARG_7
REPOSITIONING AND OTHER CHARGES - Repositioning Reserves (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring Reserve [Roll Forward] | |||
Beginning balance | $ 411 | $ 601 | $ 651 |
Charges | 420 | 331 | 565 |
Usage—cash | (275) | (382) | (564) |
Usage—noncash | (183) | (119) | (21) |
Divestitures | 0 | 0 | 0 |
Adjustments | (56) | (13) | (47) |
Foreign currency translation | (8) | (7) | 17 |
Ending balance | 309 | 411 | 601 |
Severance | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 289 | 527 | 555 |
Charges | 122 | 80 | 475 |
Usage—cash | (135) | (299) | (474) |
Usage—noncash | 0 | 0 | 0 |
Divestitures | 0 | 0 | 0 |
Adjustments | (42) | (14) | (44) |
Foreign currency translation | 1 | (5) | 15 |
Ending balance | 235 | 289 | 527 |
Asset impairments | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 0 | 0 | 0 |
Charges | 176 | 117 | 21 |
Usage—cash | 0 | 0 | 0 |
Usage—noncash | (168) | (119) | (21) |
Divestitures | 0 | 0 | 0 |
Adjustments | (8) | 2 | 0 |
Foreign currency translation | 0 | 0 | 0 |
Ending balance | 0 | 0 | 0 |
Exit costs | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 122 | 74 | 96 |
Charges | 122 | 134 | 69 |
Usage—cash | (140) | (83) | (90) |
Usage—noncash | (15) | 0 | 0 |
Divestitures | 0 | 0 | 0 |
Adjustments | (6) | (1) | (3) |
Foreign currency translation | (9) | (2) | 2 |
Ending balance | $ 74 | $ 122 | $ 74 |
INCOME TAXES - Income Before Ta
INCOME TAXES - Income Before Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Tax expense (benefit) consists of | |||
U.S. Federal | $ 653 | $ 415 | $ 475 |
U.S. State | 124 | 146 | 79 |
Non-U.S. | 815 | 886 | 768 |
Current tax expense | 1,592 | 1,447 | 1,322 |
Deferred: | |||
U.S. Federal | (175) | 173 | 234 |
U.S. State | (36) | 37 | 39 |
Non-U.S. | 32 | (32) | (448) |
Deferred tax expense | (180) | 178 | (175) |
Tax expense | 1,412 | 1,625 | 1,147 |
Income before taxes | |||
U.S. | 3,305 | 3,955 | 3,318 |
Non-U.S. | 3,074 | 3,280 | 2,694 |
Income before taxes | $ 6,379 | $ 7,235 | $ 6,012 |
INCOME TAXES - Tax Expense (Ben
INCOME TAXES - Tax Expense (Benefit) (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
The U.S. federal statutory income tax rate is reconciled to the effective income tax rate as follows: | |||
U.S. federal statutory income tax rate | 21% | 21% | 21% |
Taxes on non-U.S. earnings | (0.40%) | (1.40%) | (0.80%) |
U.S. state income taxes | 1.40% | 1.50% | 1.30% |
Reserves for tax contingencies | 1.10% | 2.20% | (2.60%) |
Employee share-based payments | (0.90%) | (0.70%) | (1.20%) |
Reduction of certain receivables | 0% | 0% | 2% |
Restructuring | 0.70% | (1.40%) | 0% |
U.S. Valuation Allowance | (0.20%) | 2% | 0.10% |
All other items—net | (0.60%) | (0.70%) | (0.70%) |
Effective income tax rate reconciliation, percent | 22.10% | 22.50% | 19.10% |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Examination [Line Items] | ||||
Net (decrease) increase in the effective tax rate from prior period | 0.40% | (3.40%) | ||
Non-U.S. effective income tax rate | 27.50% | 26% | ||
Net (decrease) increase in non-U.S. income tax rate | 1.50% | 14.10% | ||
Gross deferred tax assets | $ 2,326 | $ 2,270 | ||
Valuation allowance | 812 | 857 | ||
Valuation allowance impact to tax expense | (8) | 124 | $ 105 | |
Tax charge on earnings of foreign subsidiaries | 517 | 426 | ||
Undistributed earnings and profits of foreign affiliates | 17,000 | |||
Unrecognized tax benefits | 1,086 | 1,061 | 991 | $ 1,164 |
Income tax examination unrecognized tax benefits from examination | 640 | 592 | 556 | |
Income tax examination estimated interest and penalties from examination | 5 | 79 | 80 | |
Income tax examination accrued interest and penalties from examination | 557 | $ 580 | $ 507 | |
Non-U.S. | ||||
Income Tax Examination [Line Items] | ||||
Gross deferred tax assets | 869 | |||
Valuation allowance | 683 | |||
Domestic Tax Authority | ||||
Income Tax Examination [Line Items] | ||||
Valuation allowance | $ 129 |
INCOME TAXES - Deferred Tax Ass
INCOME TAXES - Deferred Tax Assets (Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Postretirement benefits other than pensions | $ 59 | $ 77 |
Asbestos and environmental | 545 | 468 |
Employee compensation and benefits | 142 | 174 |
Lease liabilities | 233 | 242 |
Other accruals and reserves | 363 | 260 |
Net operating losses | 695 | 734 |
Capital loss limitation and carryover | 126 | 151 |
Tax credit carryforwards | 163 | 164 |
Gross deferred tax assets | 2,326 | 2,270 |
Valuation allowance | (812) | (857) |
Total deferred tax assets | 1,514 | 1,413 |
Deferred tax liabilities: | ||
Pension | (1,088) | (948) |
Property, plant and equipment | (233) | (464) |
Right-of-use asset | (212) | (230) |
Intangibles | (818) | (883) |
Unremitted earnings of foreign subsidiaries | (517) | (426) |
Other asset basis differences | (317) | (334) |
Other | (1) | (2) |
Total deferred tax liabilities | (3,186) | (3,287) |
Net deferred tax liability | $ (1,672) | $ (1,874) |
INCOME TAXES - Operating Loss C
INCOME TAXES - Operating Loss Carryforwards (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Operating Loss Carryforwards [Line Items] | |
Net Operating and Capital Loss Carryforwards | $ 3,545 |
Tax Credit Carryforwards | 168 |
U.S. Federal | 2042 | |
Operating Loss Carryforwards [Line Items] | |
Net Operating and Capital Loss Carryforwards | 584 |
Tax Credit Carryforwards | 94 |
U.S. State | 2042 | |
Operating Loss Carryforwards [Line Items] | |
Net Operating and Capital Loss Carryforwards | 449 |
Tax Credit Carryforwards | 21 |
Non-U.S. | 2042 | |
Operating Loss Carryforwards [Line Items] | |
Net Operating and Capital Loss Carryforwards | 450 |
Tax Credit Carryforwards | 53 |
Non-U.S. | Indefinite | |
Operating Loss Carryforwards [Line Items] | |
Net Operating and Capital Loss Carryforwards | 2,062 |
Tax Credit Carryforwards | $ 0 |
INCOME TAXES - Change in Unreco
INCOME TAXES - Change in Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Change in unrecognized tax benefits: | |||
Beginning balance | $ 1,061 | $ 991 | $ 1,164 |
Gross increases related to current period tax positions | 64 | 93 | 94 |
Gross increases related to prior periods tax positions | 31 | 39 | 68 |
Gross decreases related to prior periods tax positions | (19) | (27) | (256) |
Decrease related to resolutions of audits with tax authorities | (3) | (1) | (35) |
Expiration of the statute of limitations for the assessment of taxes | (8) | (12) | (76) |
Foreign currency translation | (40) | (22) | 32 |
Ending balance | $ 1,086 | $ 1,061 | $ 991 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Inventory, Combining Work in Process and Raw Materials Alternative, Gross [Abstract] | ||
Raw materials | $ 1,407 | $ 1,352 |
Work in process | 1,049 | 861 |
Finished products | 3,082 | 2,925 |
Inventories | $ 5,538 | $ 5,138 |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT-NET (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 14,762 | $ 14,450 | |
Less—Accumulated depreciation | (9,291) | (8,888) | |
Property, plant and equipment - net | 5,471 | 5,562 | |
Depreciation | 657 | 674 | $ 644 |
Land and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 216 | 226 | |
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 10,383 | 10,143 | |
Buildings and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 3,394 | 3,225 | |
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 769 | $ 856 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLES-NET - Schedule of Goodwill (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 17,756 |
Acquisitions/ Divestitures | 125 |
Currency Translation Adjustment | (384) |
Ending balance | 17,497 |
Corporate and All Other | |
Goodwill [Roll Forward] | |
Beginning balance | 941 |
Acquisitions/ Divestitures | 2 |
Currency Translation Adjustment | (69) |
Ending balance | 874 |
Aerospace | |
Goodwill [Roll Forward] | |
Beginning balance | 2,399 |
Acquisitions/ Divestitures | 0 |
Currency Translation Adjustment | (23) |
Ending balance | 2,376 |
Honeywell Building Technologies | |
Goodwill [Roll Forward] | |
Beginning balance | 3,317 |
Acquisitions/ Divestitures | 123 |
Currency Translation Adjustment | (102) |
Ending balance | 3,338 |
Performance Materials and Technologies | |
Goodwill [Roll Forward] | |
Beginning balance | 6,138 |
Acquisitions/ Divestitures | 0 |
Currency Translation Adjustment | (125) |
Ending balance | 6,013 |
Safety and Productivity Solutions | |
Goodwill [Roll Forward] | |
Beginning balance | 4,961 |
Acquisitions/ Divestitures | 0 |
Currency Translation Adjustment | (65) |
Ending balance | $ 4,896 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLES-NET - Other Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | $ 6,972 | $ 7,044 |
Finite-lived intangible assets, accumulated amortization | (4,703) | (4,445) |
Net Carrying Amount | 2,269 | 2,599 |
Indefinite life intangibles: | ||
Trademarks with indefinite lives | 953 | 1,014 |
Gross carrying amount | 7,925 | 8,058 |
Net carrying amount | 3,222 | 3,613 |
Patents and technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 2,313 | 2,345 |
Finite-lived intangible assets, accumulated amortization | (1,759) | (1,678) |
Net Carrying Amount | 554 | 667 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 3,989 | 4,045 |
Finite-lived intangible assets, accumulated amortization | (2,397) | (2,235) |
Net Carrying Amount | 1,592 | 1,810 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 371 | 356 |
Finite-lived intangible assets, accumulated amortization | (273) | (261) |
Net Carrying Amount | 98 | 95 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 299 | 298 |
Finite-lived intangible assets, accumulated amortization | (274) | (271) |
Net Carrying Amount | $ 25 | $ 27 |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS-NET - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of Intangible Assets | $ 333 | $ 465 | $ 358 |
Future Amortization Expense - 2023 | 298 | ||
Future Amortization Expense - 2024 | 268 | ||
Future Amortization Expense - 2025 | 259 | ||
Future Amortization Expense - 2026 | 234 | ||
Future Amortization Expense - 2027 | $ 211 |
LONG-TERM DEBT AND CREDIT AGR_3
LONG-TERM DEBT AND CREDIT AGREEMENTS - Schedule of Long-Term Debt and Credit Agreements (Details) $ in Millions, € in Billions | Dec. 31, 2022 USD ($) | Nov. 02, 2022 USD ($) | Nov. 02, 2022 EUR (€) | Aug. 19, 2022 | Aug. 08, 2022 | Dec. 31, 2021 USD ($) | Aug. 16, 2021 USD ($) |
Debt Instrument [Line Items] | |||||||
Debt issuance costs | $ (233) | $ (211) | |||||
Total long-term debt, including current portion | 16,853 | 16,057 | |||||
Less—Current maturities of long-term debt | (1,730) | (1,803) | |||||
Total long-term debt | 15,123 | 14,254 | |||||
Fair value of hedging instruments | Derivatives Net Investment Hedging Relationships | |||||||
Debt Instrument [Line Items] | |||||||
Fair value of hedging instruments | (287) | 60 | |||||
0.483% notes due 2022 | |||||||
Debt Instrument [Line Items] | |||||||
Senior notes | $ 0 | 500 | $ 2,500 | ||||
Various interest rates | 0.483% | 0.483% | |||||
2.15% notes due 2022 | |||||||
Debt Instrument [Line Items] | |||||||
Senior notes | $ 0 | 600 | |||||
Various interest rates | 2.15% | 2.15% | |||||
Floating rate notes due 2022 | |||||||
Debt Instrument [Line Items] | |||||||
Senior notes | $ 0 | 600 | |||||
1.30% Euro notes due 2023 | |||||||
Debt Instrument [Line Items] | |||||||
Senior notes | $ 1,334 | 1,416 | |||||
Various interest rates | 1.30% | ||||||
3.35% notes due 2023 | |||||||
Debt Instrument [Line Items] | |||||||
Senior notes | $ 300 | 300 | |||||
Various interest rates | 3.35% | ||||||
0.00% Euro notes due 2024 | |||||||
Debt Instrument [Line Items] | |||||||
Senior notes | $ 534 | 566 | |||||
Various interest rates | 0% | ||||||
2.30% notes due 2024 | |||||||
Debt Instrument [Line Items] | |||||||
Senior notes | $ 750 | 750 | |||||
Various interest rates | 2.30% | ||||||
4.85% notes due 2024 | |||||||
Debt Instrument [Line Items] | |||||||
Senior notes | $ 400 | $ 400 | 0 | ||||
Various interest rates | 4.85% | 4.85% | 4.85% | ||||
1.35% notes due 2025 | |||||||
Debt Instrument [Line Items] | |||||||
Senior notes | $ 1,250 | 1,250 | |||||
Various interest rates | 1.35% | ||||||
2.50% notes due 2026 | |||||||
Debt Instrument [Line Items] | |||||||
Senior notes | $ 1,500 | 1,500 | |||||
Various interest rates | 2.50% | ||||||
1.10% notes due 2027 | |||||||
Debt Instrument [Line Items] | |||||||
Senior notes | $ 1,000 | 1,000 | $ 1,000 | ||||
Various interest rates | 1.10% | 1.10% | |||||
4.95% notes due 2028 | |||||||
Debt Instrument [Line Items] | |||||||
Senior notes | $ 500 | $ 500 | 0 | ||||
Various interest rates | 4.95% | 4.95% | 4.95% | ||||
2.25% Euro notes due 2028 | |||||||
Debt Instrument [Line Items] | |||||||
Senior notes | $ 800 | 849 | |||||
Various interest rates | 2.25% | ||||||
2.70% notes due 2029 | |||||||
Debt Instrument [Line Items] | |||||||
Senior notes | $ 750 | 750 | |||||
Various interest rates | 2.70% | ||||||
1.95% notes due 2030 | |||||||
Debt Instrument [Line Items] | |||||||
Senior notes | $ 1,000 | 1,000 | |||||
Various interest rates | 1.95% | ||||||
1.75% notes due 2031 | |||||||
Debt Instrument [Line Items] | |||||||
Senior notes | $ 1,500 | 1,500 | $ 1,500 | ||||
Various interest rates | 1.75% | 1.75% | |||||
0.75% Euro notes due 2032 | |||||||
Debt Instrument [Line Items] | |||||||
Senior notes | $ 534 | 566 | |||||
Various interest rates | 0.75% | ||||||
5.00% notes due 2033 | |||||||
Debt Instrument [Line Items] | |||||||
Senior notes | $ 1,100 | $ 1,100 | 0 | ||||
Various interest rates | 5% | 5% | 5% | ||||
4.125% Euro notes due 2034 | |||||||
Debt Instrument [Line Items] | |||||||
Senior notes | $ 1,067 | € 1 | 0 | ||||
Various interest rates | 4.125% | 4.125% | 4.125% | ||||
5.70% notes due 2036 | |||||||
Debt Instrument [Line Items] | |||||||
Senior notes | $ 441 | 441 | |||||
Various interest rates | 5.70% | ||||||
5.70% notes due 2037 | |||||||
Debt Instrument [Line Items] | |||||||
Senior notes | $ 462 | 462 | |||||
Various interest rates | 5.70% | ||||||
5.375% notes due 2041 | |||||||
Debt Instrument [Line Items] | |||||||
Senior notes | $ 417 | 417 | |||||
Various interest rates | 5.375% | ||||||
3.812% notes due 2047 | |||||||
Debt Instrument [Line Items] | |||||||
Senior notes | $ 445 | 445 | |||||
Various interest rates | 3.812% | ||||||
2.80% notes due 2050 | |||||||
Debt Instrument [Line Items] | |||||||
Senior notes | $ 750 | 750 | |||||
Various interest rates | 2.80% | ||||||
Industrial development bond obligations, floating rate maturing at various dates through 2037 | |||||||
Debt Instrument [Line Items] | |||||||
Industrial development bond obligations, floating rate maturing at various dates through 2037 | $ 22 | 22 | |||||
6.625% debentures due 2028 | |||||||
Debt Instrument [Line Items] | |||||||
Various interest rates | 6.625% | ||||||
Debentures | $ 201 | 201 | |||||
9.065% debentures due 2033 | |||||||
Debt Instrument [Line Items] | |||||||
Various interest rates | 9.065% | ||||||
Debentures | $ 51 | 51 | |||||
Other (including capitalized leases), 8.0% weighted average interest rate maturing at various dates through 2029 | |||||||
Debt Instrument [Line Items] | |||||||
Debt, weighted average interest rate | 8% | ||||||
Other (including capitalized leases), 8.0% weighted average interest rate maturing at various dates through 2029 | $ 265 | $ 272 |
LONG-TERM DEBT AND CREDIT AGR_4
LONG-TERM DEBT AND CREDIT AGREEMENTS - Principal Payments on Long-Term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Disclosure [Abstract] | ||
2023 | $ 1,730 | |
2024 | 1,787 | |
2025 | 1,272 | |
2026 | 1,515 | |
2027 | 1,008 | |
Thereafter | 9,541 | |
Long-term debt | 16,853 | $ 16,057 |
Less—Current maturities of long-term debt | (1,730) | (1,803) |
Total long-term debt | $ 15,123 | $ 14,254 |
LONG-TERM DEBT AND CREDIT AGR_5
LONG-TERM DEBT AND CREDIT AGREEMENTS - Narrative (Details) $ in Millions, € in Billions | Nov. 02, 2022 USD ($) | Mar. 24, 2022 USD ($) | Aug. 16, 2021 USD ($) | Mar. 31, 2021 USD ($) | Dec. 31, 2022 USD ($) | Nov. 02, 2022 EUR (€) | Aug. 19, 2022 | Aug. 08, 2022 | Dec. 31, 2021 USD ($) | Nov. 01, 2021 | Mar. 01, 2021 |
The $1.5 Billion 364 Day Credit Agreement | Line of Credit | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Short term debt, maximum borrowing capacity | $ 1,500 | ||||||||||
Three Hundred Sixty Four Day Credit Agreement | Line of Credit | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, term | 364 days | ||||||||||
Short term debt, maximum borrowing capacity | $ 1,500 | ||||||||||
4.85% notes due 2024 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Senior notes | $ 400 | $ 400 | $ 0 | ||||||||
Various interest rates | 4.85% | 4.85% | 4.85% | ||||||||
4.95% notes due 2028 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Senior notes | $ 500 | $ 500 | 0 | ||||||||
Various interest rates | 4.95% | 4.95% | 4.95% | ||||||||
5.00% notes due 2033 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Senior notes | $ 1,100 | $ 1,100 | 0 | ||||||||
Various interest rates | 5% | 5% | 5% | ||||||||
Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Proceeds from issuance of long-term debt | $ 2,000 | $ 2,500 | |||||||||
Payments of debt issuance costs | $ 22 | 18 | |||||||||
4.125% Euro notes due 2034 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Senior notes | $ 1,067 | € 1 | 0 | ||||||||
Various interest rates | 4.125% | 4.125% | 4.125% | ||||||||
Proceeds from issuance of long-term debt | $ 990 | ||||||||||
Payments of debt issuance costs | $ 17 | ||||||||||
2.15% notes due 2022 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Senior notes | $ 0 | 600 | |||||||||
Various interest rates | 2.15% | 2.15% | |||||||||
0.483% notes due 2022 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Senior notes | 2,500 | $ 0 | 500 | ||||||||
Various interest rates | 0.483% | 0.483% | |||||||||
Repayments of debt | 2,000 | ||||||||||
Line of Credit | Five Year Credit Agreement | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility, maximum borrowing capacity | $ 4,000 | $ 4,000 | |||||||||
Debt instrument, term | 5 years | 5 years | |||||||||
Line of credit facility, maximum borrowing capacity upon terms | $ 4,500 | ||||||||||
1.85% notes due 2021 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Various interest rates | 1.85% | ||||||||||
1.10% notes due 2027 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Senior notes | $ 1,000 | $ 1,000 | 1,000 | ||||||||
Various interest rates | 1.10% | 1.10% | |||||||||
1.75% notes due 2031 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Senior notes | $ 1,500 | $ 1,500 | 1,500 | ||||||||
Various interest rates | 1.75% | 1.75% | |||||||||
Floating rate notes due 2022 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Senior notes | $ 0 | $ 600 | |||||||||
Repayments of debt | $ 500 | ||||||||||
4.25% notes due 2021 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Various interest rates | 4.25% |
LEASES - Narrative (Details)
LEASES - Narrative (Details) | Dec. 31, 2022 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Operating lease, term of contract | 1 year |
Operating lease, renewal term | 5 years |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Operating lease, term of contract | 20 years |
LEASES - Schedule of Lease Cost
LEASES - Schedule of Lease Cost (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | ||
Operating lease cost | $ 224 | $ 228 |
Variable lease cost | 8 | 14 |
Short-term lease cost | 18 | 15 |
Lease, Cost [Abstract] | ||
Amortization of right-of-use assets | 72 | 65 |
Interest on lease liability | 21 | 24 |
Total finance lease cost | 93 | 89 |
Total lease cost | $ 343 | $ 346 |
LEASES - Supplemental Cash Flow
LEASES - Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows for operating leases | $ 225 | $ 215 |
Operating cash flows for finance leases | 21 | 24 |
Financing cash flows for finance leases | 79 | 67 |
Right-of-use assets obtained in exchange for lease obligations: | ||
Operating leases | 251 | 350 |
Finance leases | $ 61 | $ 32 |
LEASES - Supplemental Balance S
LEASES - Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Operating leases: | ||
Other assets | $ 881 | $ 947 |
Accrued liabilities | 192 | 185 |
Other liabilities | 775 | 847 |
Total operating lease liabilities | 967 | 1,032 |
Finance leases: | ||
Property, plant and equipment | 383 | 325 |
Accumulated depreciation | (161) | (177) |
Property, plant and equipment—net | 222 | 148 |
Current maturities of long-term debt | 77 | 57 |
Long-term debt | 145 | 99 |
Total finance lease liabilities | $ 222 | $ 156 |
Weighted average discount rate: | ||
Operating leases | 2.10% | 2.30% |
Finance leases | 7.80% | 11% |
Operating lease, right-of-use asset, statement of financial position | Other assets | Other assets |
Operating lease, liability, current, statement of financial position | Accrued Liabilities, Current | Accrued Liabilities, Current |
Operating lease, liability, noncurrent, statement of financial position | Other liabilities | Other liabilities |
Finance lease, right-of-use asset, statement of financial position | Other assets | Other assets |
Finance lease, liability, current, statement of financial position | Long-Term Debt and Lease Obligation, Current | Long-Term Debt and Lease Obligation, Current |
Finance lease, liability, noncurrent, statement of financial position | Total long-term debt | Total long-term debt |
LEASES - Maturities of Lease Li
LEASES - Maturities of Lease Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Operating Leases | ||
2023 | $ 208 | |
2024 | 176 | |
2025 | 139 | |
2026 | 115 | |
2027 | 88 | |
Thereafter | 354 | |
Total lease payments | 1,080 | |
Less—interest | (113) | |
Total | 967 | $ 1,032 |
Finance Leases | ||
2023 | 94 | |
2024 | 81 | |
2025 | 37 | |
2026 | 15 | |
2027 | 12 | |
Thereafter | 18 | |
Total lease payments | 257 | |
Less—interest | (35) | |
Total | $ 222 | $ 156 |
LEASES - Phantom (Details)
LEASES - Phantom (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
Weighted average remaining lease term: | ||
Operating leases | 9 years | 8 years |
Finance leases | 3 years | 4 years |
DERIVATIVE INSTRUMENTS AND HE_3
DERIVATIVE INSTRUMENTS AND HEDGING TRANSACTIONS - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative, notional amount | $ 18,727 | $ 17,021 | ||
Gain (loss) on interest rate swap agreements | (347) | (135) | $ 169 | |
Amounts reclassified from accumulated other comprehensive income | (324) | 114 | $ 108 | |
Foreign Exchange Forward | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative, notional amount | 10,545 | 12,671 | ||
Amount of hedged item | $ 3,836 | $ 4,074 | ||
Foreign Exchange Forward | Forecast | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amounts reclassified from accumulated other comprehensive income | $ 13 |
DERIVATIVE INSTRUMENTS AND HE_4
DERIVATIVE INSTRUMENTS AND HEDGING TRANSACTIONS - Schedule of Derivative Instruments in Statement of Financial Position (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Derivative [Line Items] | ||
Notional | $ 18,727 | $ 17,021 |
Fair Value Asset | 199 | 473 |
Fair Value (Liability) | (312) | (282) |
Derivatives Net Investment Hedging Relationships | ||
Derivative [Line Items] | ||
Notional | 9,048 | 5,743 |
Fair Value Asset | 125 | 195 |
Fair Value (Liability) | (309) | 0 |
Derivatives Net Investment Hedging Relationships | Derivatives in fair value hedging relationships: | Interest rate swap agreements | ||
Derivative [Line Items] | ||
Notional | 4,984 | 3,150 |
Fair Value Asset | 16 | 60 |
Fair Value (Liability) | (303) | 0 |
Derivatives Net Investment Hedging Relationships | Derivatives in cash flow hedging relationships: | Foreign currency exchange contracts | ||
Derivative [Line Items] | ||
Notional | 866 | 647 |
Fair Value Asset | 19 | 4 |
Fair Value (Liability) | (5) | 0 |
Derivatives Net Investment Hedging Relationships | Derivatives in cash flow hedging relationships: | Commodity contracts | ||
Derivative [Line Items] | ||
Notional | 9 | 0 |
Fair Value Asset | 0 | 0 |
Fair Value (Liability) | (1) | 0 |
Derivatives Net Investment Hedging Relationships | Derivatives in net investment hedging relationships: | Foreign currency exchange contracts | ||
Derivative [Line Items] | ||
Notional | 0 | 746 |
Fair Value Asset | 0 | 92 |
Fair Value (Liability) | 0 | 0 |
Derivatives Net Investment Hedging Relationships | Derivatives in net investment hedging relationships: | Cross currency swap agreements | ||
Derivative [Line Items] | ||
Notional | 3,189 | 1,200 |
Fair Value Asset | 90 | 39 |
Fair Value (Liability) | 0 | 0 |
Derivatives not designated as hedging instruments: | Foreign currency exchange contracts | ||
Derivative [Line Items] | ||
Notional | 9,679 | 11,278 |
Fair Value Asset | 74 | 278 |
Fair Value (Liability) | $ (3) | $ (282) |
DERIVATIVE INSTRUMENTS AND HE_5
DERIVATIVE INSTRUMENTS AND HEDGING TRANSACTIONS - Schedule of Derivative Instruments (Details) - Derivatives Net Investment Hedging Relationships - Long-term debt - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Summary Of Derivative Instruments By Hedge Designation [Line Items] | ||
Carrying Amount of Hedged Item | $ 4,696 | $ 3,210 |
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of Hedged Item | $ (287) | $ 60 |
DERIVATIVE INSTRUMENTS AND HE_6
DERIVATIVE INSTRUMENTS AND HEDGING TRANSACTIONS - Derivative Instruments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Sales | $ 35,466 | $ 34,392 | $ 32,637 |
Cost of products and services sold | 23,825 | 23,394 | 22,169 |
Selling, general and administrative expenses | 5,214 | 4,798 | 4,772 |
Other (income) expense | (366) | (1,378) | (675) |
Interest and other financial charges | 414 | 343 | 359 |
Foreign currency exchange contracts | Net Sales | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Foreign currency exchange contracts | 0 | 0 | 0 |
Foreign currency exchange contracts | Cost of products and services sold | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Foreign currency exchange contracts | 0 | ||
Foreign currency exchange contracts | Selling, General and Administrative Expenses | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Foreign currency exchange contracts | 0 | 0 | 0 |
Foreign currency exchange contracts | Other (Income) Expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Foreign currency exchange contracts | 351 | 195 | (166) |
Foreign currency exchange contracts | Interest and Other Financial Charges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Foreign currency exchange contracts | 0 | 0 | 0 |
Derivatives Net Investment Hedging Relationships | Gain or (loss) on cash flow hedges: | Foreign currency exchange contracts | Net Sales | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount excluded from effectiveness testing recognized in earnings using an amortization approach | 0 | ||
Derivatives Net Investment Hedging Relationships | Gain or (loss) on cash flow hedges: | Foreign currency exchange contracts | Selling, General and Administrative Expenses | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount excluded from effectiveness testing recognized in earnings using an amortization approach | 0 | ||
Derivatives Net Investment Hedging Relationships | Gain or (loss) on cash flow hedges: | Foreign currency exchange contracts | Other (Income) Expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount excluded from effectiveness testing recognized in earnings using an amortization approach | 29 | ||
Derivatives Net Investment Hedging Relationships | Gain or (loss) on cash flow hedges: | Foreign currency exchange contracts | Interest and Other Financial Charges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount excluded from effectiveness testing recognized in earnings using an amortization approach | 0 | ||
Derivatives Net Investment Hedging Relationships | Gain or (loss) on cash flow hedges: | Foreign currency exchange contracts | Losses (gains) on cash flow hedges | Net Sales | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount reclassified from accumulated other comprehensive income into income | 13 | 5 | (3) |
Derivatives Net Investment Hedging Relationships | Gain or (loss) on cash flow hedges: | Foreign currency exchange contracts | Losses (gains) on cash flow hedges | Cost of products and services sold | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount reclassified from accumulated other comprehensive income into income | 8 | ||
Derivatives Net Investment Hedging Relationships | Gain or (loss) on cash flow hedges: | Foreign currency exchange contracts | Losses (gains) on cash flow hedges | Selling, General and Administrative Expenses | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount reclassified from accumulated other comprehensive income into income | (3) | 9 | (4) |
Derivatives Net Investment Hedging Relationships | Gain or (loss) on cash flow hedges: | Foreign currency exchange contracts | Losses (gains) on cash flow hedges | Other (Income) Expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount reclassified from accumulated other comprehensive income into income | 0 | 0 | 28 |
Derivatives Net Investment Hedging Relationships | Gain or (loss) on cash flow hedges: | Foreign currency exchange contracts | Losses (gains) on cash flow hedges | Interest and Other Financial Charges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount reclassified from accumulated other comprehensive income into income | 0 | 0 | 0 |
Derivatives Net Investment Hedging Relationships | Gain or (loss) on cash flow hedges: | Commodity contracts | Net Sales | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount reclassified from accumulated other comprehensive income into income | 0 | ||
Derivatives Net Investment Hedging Relationships | Gain or (loss) on cash flow hedges: | Commodity contracts | Selling, General and Administrative Expenses | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount reclassified from accumulated other comprehensive income into income | 0 | ||
Derivatives Net Investment Hedging Relationships | Gain or (loss) on cash flow hedges: | Commodity contracts | Other (Income) Expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount reclassified from accumulated other comprehensive income into income | 0 | ||
Derivatives Net Investment Hedging Relationships | Gain or (loss) on cash flow hedges: | Commodity contracts | Interest and Other Financial Charges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount reclassified from accumulated other comprehensive income into income | 0 | ||
Derivatives Net Investment Hedging Relationships | Gain or (loss) on fair value hedges: | Interest rate swap agreements | Net Sales | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Hedged items | 0 | ||
Derivatives designated as hedges | 0 | ||
Derivatives Net Investment Hedging Relationships | Gain or (loss) on fair value hedges: | Interest rate swap agreements | Selling, General and Administrative Expenses | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Hedged items | 0 | ||
Derivatives designated as hedges | 0 | ||
Derivatives Net Investment Hedging Relationships | Gain or (loss) on fair value hedges: | Interest rate swap agreements | Other (Income) Expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Hedged items | 0 | ||
Derivatives designated as hedges | 0 | ||
Derivatives Net Investment Hedging Relationships | Gain or (loss) on fair value hedges: | Interest rate swap agreements | Interest and Other Financial Charges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Hedged items | (169) | ||
Derivatives designated as hedges | 169 | ||
Derivatives Net Investment Hedging Relationships | Gain or (loss) on fair value hedges: | Interest rate swap agreements | Losses (gains) on cash flow hedges | Net Sales | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Hedged items | 0 | 0 | |
Derivatives designated as hedges | 0 | 0 | |
Derivatives Net Investment Hedging Relationships | Gain or (loss) on fair value hedges: | Interest rate swap agreements | Losses (gains) on cash flow hedges | Cost of products and services sold | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Hedged items | 0 | ||
Derivatives designated as hedges | 0 | ||
Derivatives Net Investment Hedging Relationships | Gain or (loss) on fair value hedges: | Interest rate swap agreements | Losses (gains) on cash flow hedges | Selling, General and Administrative Expenses | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Hedged items | 0 | 0 | |
Derivatives designated as hedges | 0 | 0 | |
Derivatives Net Investment Hedging Relationships | Gain or (loss) on fair value hedges: | Interest rate swap agreements | Losses (gains) on cash flow hedges | Other (Income) Expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Hedged items | 0 | 0 | |
Derivatives designated as hedges | 0 | 0 | |
Derivatives Net Investment Hedging Relationships | Gain or (loss) on fair value hedges: | Interest rate swap agreements | Losses (gains) on cash flow hedges | Interest and Other Financial Charges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Hedged items | 347 | 135 | |
Derivatives designated as hedges | (347) | (135) | |
Derivatives Net Investment Hedging Relationships | Gain or (loss) on net investment hedges: | Foreign currency exchange contracts | Net Sales | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount excluded from effectiveness testing recognized in earnings using an amortization approach | 0 | ||
Amount excluded from effectiveness testing recognized in earnings using an amortization approach | 0 | 0 | |
Derivatives Net Investment Hedging Relationships | Gain or (loss) on net investment hedges: | Foreign currency exchange contracts | Cost of products and services sold | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount excluded from effectiveness testing recognized in earnings using an amortization approach | 0 | ||
Derivatives Net Investment Hedging Relationships | Gain or (loss) on net investment hedges: | Foreign currency exchange contracts | Selling, General and Administrative Expenses | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount excluded from effectiveness testing recognized in earnings using an amortization approach | 0 | ||
Amount excluded from effectiveness testing recognized in earnings using an amortization approach | 0 | 0 | |
Derivatives Net Investment Hedging Relationships | Gain or (loss) on net investment hedges: | Foreign currency exchange contracts | Other (Income) Expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount excluded from effectiveness testing recognized in earnings using an amortization approach | 0 | ||
Amount excluded from effectiveness testing recognized in earnings using an amortization approach | 0 | 0 | |
Derivatives Net Investment Hedging Relationships | Gain or (loss) on net investment hedges: | Foreign currency exchange contracts | Interest and Other Financial Charges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount excluded from effectiveness testing recognized in earnings using an amortization approach | 16 | ||
Amount excluded from effectiveness testing recognized in earnings using an amortization approach | 13 | 18 | |
Product | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Sales | 25,960 | 25,643 | 24,737 |
Cost of products and services sold | 18,263 | 18,344 | 17,638 |
Product | Foreign currency exchange contracts | Cost of products and services sold | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Foreign currency exchange contracts | 0 | 0 | |
Product | Derivatives Net Investment Hedging Relationships | Gain or (loss) on cash flow hedges: | Foreign currency exchange contracts | Cost of products and services sold | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount excluded from effectiveness testing recognized in earnings using an amortization approach | 10 | ||
Product | Derivatives Net Investment Hedging Relationships | Gain or (loss) on cash flow hedges: | Foreign currency exchange contracts | Losses (gains) on cash flow hedges | Cost of products and services sold | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount reclassified from accumulated other comprehensive income into income | 50 | 43 | |
Product | Derivatives Net Investment Hedging Relationships | Gain or (loss) on cash flow hedges: | Commodity contracts | Cost of products and services sold | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount reclassified from accumulated other comprehensive income into income | (2) | ||
Product | Derivatives Net Investment Hedging Relationships | Gain or (loss) on fair value hedges: | Interest rate swap agreements | Cost of products and services sold | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Hedged items | 0 | ||
Derivatives designated as hedges | 0 | ||
Product | Derivatives Net Investment Hedging Relationships | Gain or (loss) on fair value hedges: | Interest rate swap agreements | Losses (gains) on cash flow hedges | Cost of products and services sold | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Hedged items | 0 | ||
Derivatives designated as hedges | 0 | ||
Product | Derivatives Net Investment Hedging Relationships | Gain or (loss) on net investment hedges: | Foreign currency exchange contracts | Cost of products and services sold | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount excluded from effectiveness testing recognized in earnings using an amortization approach | 0 | 0 | |
Service | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Sales | 9,506 | 8,749 | 7,900 |
Cost of products and services sold | 5,562 | 5,050 | 4,531 |
Service | Foreign currency exchange contracts | Cost of products and services sold | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Foreign currency exchange contracts | 0 | 0 | 0 |
Service | Derivatives Net Investment Hedging Relationships | Gain or (loss) on cash flow hedges: | Foreign currency exchange contracts | Cost of products and services sold | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount excluded from effectiveness testing recognized in earnings using an amortization approach | 3 | ||
Service | Derivatives Net Investment Hedging Relationships | Gain or (loss) on cash flow hedges: | Foreign currency exchange contracts | Losses (gains) on cash flow hedges | Cost of products and services sold | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount reclassified from accumulated other comprehensive income into income | 14 | 2 | 11 |
Service | Derivatives Net Investment Hedging Relationships | Gain or (loss) on cash flow hedges: | Commodity contracts | Cost of products and services sold | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount reclassified from accumulated other comprehensive income into income | 0 | ||
Service | Derivatives Net Investment Hedging Relationships | Gain or (loss) on fair value hedges: | Interest rate swap agreements | Cost of products and services sold | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Hedged items | 0 | ||
Derivatives designated as hedges | 0 | ||
Service | Derivatives Net Investment Hedging Relationships | Gain or (loss) on fair value hedges: | Interest rate swap agreements | Losses (gains) on cash flow hedges | Cost of products and services sold | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Hedged items | 0 | 0 | |
Derivatives designated as hedges | 0 | 0 | |
Service | Derivatives Net Investment Hedging Relationships | Gain or (loss) on net investment hedges: | Foreign currency exchange contracts | Cost of products and services sold | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount excluded from effectiveness testing recognized in earnings using an amortization approach | $ 0 | ||
Amount excluded from effectiveness testing recognized in earnings using an amortization approach | $ 0 | $ 0 |
DERIVATIVE INSTRUMENTS AND HE_7
DERIVATIVE INSTRUMENTS AND HEDGING TRANSACTIONS - Schedule of Net Investment Hedges in Accumulated Other Comprehensive Income (Loss) (Details) - Derivatives Net Investment Hedging Relationships - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Foreign currency exchange contracts | ||
Derivative [Line Items] | ||
Gain (loss) on net investment hedges recognized in accumulated other comprehensive income | $ 34 | $ 40 |
Euro-denominated long-term debt | ||
Derivative [Line Items] | ||
Gain (loss) on net investment hedges recognized in accumulated other comprehensive income | 196 | 284 |
Euro-denominated commercial paper | ||
Derivative [Line Items] | ||
Gain (loss) on net investment hedges recognized in accumulated other comprehensive income | 39 | 57 |
Cross currency swap agreements | ||
Derivative [Line Items] | ||
Gain (loss) on net investment hedges recognized in accumulated other comprehensive income | $ (65) | $ 88 |
FAIR VALUE MEASUREMENTS - Asset
FAIR VALUE MEASUREMENTS - Assets and Liabilities Accounted for at Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Assets: | ||
Fair value asset | $ 199 | $ 473 |
Liabilities: | ||
Fair value liability | 312 | 282 |
Fair Value Measurements Recurring | ||
Assets: | ||
Available for sale investments | 646 | 742 |
Right to HWI Sale proceeds | 295 | 0 |
Total assets | 1,194 | 1,272 |
Liabilities: | ||
Total liabilities | 312 | 282 |
Fair Value Measurements Recurring | Foreign currency exchange contracts | ||
Assets: | ||
Fair value asset | 93 | 374 |
Liabilities: | ||
Fair value liability | 8 | 282 |
Fair Value Measurements Recurring | Interest rate swap agreements | ||
Assets: | ||
Fair value asset | 16 | 60 |
Liabilities: | ||
Fair value liability | 303 | 0 |
Fair Value Measurements Recurring | Cross currency swap agreements | ||
Assets: | ||
Fair value asset | 90 | 39 |
Fair Value Measurements Recurring | Commodity contracts | ||
Liabilities: | ||
Fair value liability | 1 | 0 |
Fair Value Measurements Recurring | Investments in equity securities | ||
Assets: | ||
Investments in equity securities | 54 | 57 |
Level 1 | Fair Value Measurements Recurring | ||
Assets: | ||
Available for sale investments | 87 | 176 |
Right to HWI Sale proceeds | 0 | 0 |
Total assets | 109 | 210 |
Liabilities: | ||
Total liabilities | 0 | 0 |
Level 1 | Fair Value Measurements Recurring | Foreign currency exchange contracts | ||
Assets: | ||
Fair value asset | 0 | 0 |
Liabilities: | ||
Fair value liability | 0 | 0 |
Level 1 | Fair Value Measurements Recurring | Interest rate swap agreements | ||
Assets: | ||
Fair value asset | 0 | 0 |
Liabilities: | ||
Fair value liability | 0 | 0 |
Level 1 | Fair Value Measurements Recurring | Cross currency swap agreements | ||
Assets: | ||
Fair value asset | 0 | 0 |
Level 1 | Fair Value Measurements Recurring | Commodity contracts | ||
Liabilities: | ||
Fair value liability | 0 | 0 |
Level 1 | Fair Value Measurements Recurring | Investments in equity securities | ||
Assets: | ||
Investments in equity securities | 22 | 34 |
Level 2 | Fair Value Measurements Recurring | ||
Assets: | ||
Available for sale investments | 559 | 566 |
Right to HWI Sale proceeds | 0 | 0 |
Total assets | 790 | 1,062 |
Liabilities: | ||
Total liabilities | 312 | 282 |
Level 2 | Fair Value Measurements Recurring | Foreign currency exchange contracts | ||
Assets: | ||
Fair value asset | 93 | 374 |
Liabilities: | ||
Fair value liability | 8 | 282 |
Level 2 | Fair Value Measurements Recurring | Interest rate swap agreements | ||
Assets: | ||
Fair value asset | 16 | 60 |
Liabilities: | ||
Fair value liability | 303 | 0 |
Level 2 | Fair Value Measurements Recurring | Cross currency swap agreements | ||
Assets: | ||
Fair value asset | 90 | 39 |
Level 2 | Fair Value Measurements Recurring | Commodity contracts | ||
Liabilities: | ||
Fair value liability | 1 | 0 |
Level 2 | Fair Value Measurements Recurring | Investments in equity securities | ||
Assets: | ||
Investments in equity securities | 32 | 23 |
Level 3 | Fair Value Measurements Recurring | ||
Assets: | ||
Available for sale investments | 0 | 0 |
Right to HWI Sale proceeds | 295 | 0 |
Total assets | 295 | 0 |
Liabilities: | ||
Total liabilities | 0 | 0 |
Level 3 | Fair Value Measurements Recurring | Foreign currency exchange contracts | ||
Assets: | ||
Fair value asset | 0 | 0 |
Liabilities: | ||
Fair value liability | 0 | 0 |
Level 3 | Fair Value Measurements Recurring | Interest rate swap agreements | ||
Assets: | ||
Fair value asset | 0 | 0 |
Liabilities: | ||
Fair value liability | 0 | 0 |
Level 3 | Fair Value Measurements Recurring | Cross currency swap agreements | ||
Assets: | ||
Fair value asset | 0 | 0 |
Level 3 | Fair Value Measurements Recurring | Commodity contracts | ||
Liabilities: | ||
Fair value liability | 0 | 0 |
Level 3 | Fair Value Measurements Recurring | Investments in equity securities | ||
Assets: | ||
Investments in equity securities | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Sched
FAIR VALUE MEASUREMENTS - Schedule of Level 3 Fair Value Assets and Liabilities (Details) - Contingent Consideration Assets - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Balance at beginning of period | $ 0 | $ 0 |
Activity during period: | ||
Recognition of right to HWI Sale proceeds | 295 | 0 |
Balance at end of period | $ 295 | $ 0 |
FAIR VALUE MEASUREMENTS - Finan
FAIR VALUE MEASUREMENTS - Financial Assets and Liabilities not Carried at Fair Value (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Assets: | |||
Long-term investments | $ 0 | $ 577,000,000 | $ 0 |
Carrying Value | Level 2 | |||
Assets: | |||
Short-term investments | 0 | 34,000,000 | |
Long-term receivables | 229,000,000 | 170,000,000 | |
Long-term investments | 0 | 366,000,000 | |
Liabilities: | |||
Long-term debt and related current maturities | 16,853,000,000 | 16,057,000,000 | |
Fair Value | Level 2 | |||
Assets: | |||
Short-term investments | 0 | 34,000,000 | |
Long-term receivables | 183,000,000 | 152,000,000 | |
Long-term investments | 0 | 366,000,000 | |
Liabilities: | |||
Long-term debt and related current maturities | $ 15,856,000,000 | $ 17,022,000,000 |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) | Apr. 30, 2021 |
Series B Preferred Stock | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Mandatory redemption discount rate | 0.0725 |
ACCRUED LIABILITIES (Details)
ACCRUED LIABILITIES (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Accrued Liabilities, Current [Abstract] | ||
Customer advances and deferred income | $ 3,555 | $ 3,163 |
Compensation, benefit and other employee related | 1,218 | 1,273 |
Repositioning | 309 | 411 |
Asbestos-related liabilities | 110 | 261 |
Income taxes | 549 | 393 |
Other taxes | 174 | 269 |
Environmental costs | 222 | 225 |
Operating lease liabilities | 192 | 185 |
Product warranties and performance guarantees | 175 | 180 |
Insurance | 68 | 101 |
Accrued interest | 122 | 100 |
NARCO Buyout | 1,325 | 0 |
Other (primarily operating expenses) | 1,143 | 1,118 |
Total accrued liabilities | $ 9,162 | $ 7,679 |
OTHER LIABILITIES (Details)
OTHER LIABILITIES (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Other Liabilities Disclosure [Abstract] | ||
Operating lease, liability, noncurrent, statement of financial position | Total other liabilities | Total other liabilities |
Other Liabilities, Noncurrent [Abstract] | ||
Income taxes | $ 1,939 | $ 2,152 |
Pension and other employee related | 1,306 | 1,672 |
Deferred income | 1,334 | 1,324 |
Operating lease liabilities | 775 | 847 |
Environmental costs | 393 | 393 |
Insurance | 289 | 299 |
Product warranties and performance guarantees | 38 | 43 |
Asset retirement obligations | 24 | 26 |
Other | 371 | 331 |
Total other liabilities | $ 6,469 | $ 7,087 |
STOCK-BASED COMPENSATION PLAN_2
STOCK-BASED COMPENSATION PLANS - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
2016 Plan | Share-based Payment Arrangement, Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of Honeywell common stock available for future grants (in shares) | 30,635,612 | ||
Vesting periods | 4 years | ||
Expiration period | 10 years | ||
Options exercisable (in shares) | 9,509,606 | 10,664,625 | 10,120,793 |
Weighted average exercise price per share (in dollars per share) | $ 127.99 | $ 113.30 | $ 103.89 |
Unrecognized compensation on nonvested stock options | $ 99 | ||
Fair value of options vested | $ 49 | $ 52 | $ 55 |
Nonvested options recognized over weighted average period, years | 2 years 5 months 15 days | ||
Weighted average period | 5 years 3 months 29 days | ||
2016 Plan | Share-based Payment Arrangement, Option | $135.00–$189.99 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average exercise price per share (in dollars per share) | $ 160.19 | ||
Weighted average period | 6 years 10 months 13 days | ||
2016 Plan | Share-based Payment Arrangement, Option | $190.00–$232.60 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average exercise price per share (in dollars per share) | $ 204.99 | ||
Weighted average period | 8 years 29 days | ||
2016 Plan | Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation on nonvested stock options | $ 255 | ||
Nonvested options recognized over weighted average period, years | 2 years 14 days | ||
2016 Plan | Restricted Stock Units (RSUs) | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting periods | 3 years | ||
2016 Plan | Restricted Stock Units (RSUs) | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting periods | 6 years | ||
2016 Directors Plan | Share-based Payment Arrangement, Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of Honeywell common stock available for future grants (in shares) | 797,252 |
STOCK-BASED COMPENSATION PLAN_3
STOCK-BASED COMPENSATION PLANS - Income Statement Impact from Stock Options (Details) - 2016 Plan - Share-based Payment Arrangement, Option - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | $ 45 | $ 55 | $ 50 |
Future income tax benefit recognized | $ 10 | $ 11 | $ 10 |
STOCK BASED COMPENSATION PLANS
STOCK BASED COMPENSATION PLANS - Share-based Compensation Fair Value Assumptions (Details) - 2016 Plan - Share-based Payment Arrangement, Option - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average fair value per share of options granted during the year | $ 31.22 | $ 32.42 | $ 21.30 |
Assumptions: | |||
Expected annual dividend yield | 2.58% | 2.31% | 2.59% |
Expected volatility | 23.05% | 24.69% | 18.76% |
Risk-free rate of return | 1.97% | 0.48% | 1.32% |
Expected option term (years) | 4 years 8 months 26 days | 4 years 6 months 14 days | 4 years 7 months 13 days |
Nonvested options recognized over weighted average period, years | 2 years 5 months 15 days |
STOCK-BASED COMPENSATION PLAN_4
STOCK-BASED COMPENSATION PLANS - Stock Options Activity (Details) - 2016 Plan - Share-based Payment Arrangement, Option - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Number of Options | |||
Outstanding at beginning of period (in shares) | 15,852,939 | 16,568,529 | 18,731,562 |
Granted (in shares) | 2,150,910 | 2,065,574 | 3,192,693 |
Exercised (in shares) | (3,046,107) | (2,016,489) | (4,424,754) |
Lapsed or canceled (in shares) | (905,454) | (764,675) | (930,972) |
Outstanding at end of period (in shares) | 14,052,288 | 15,852,939 | 16,568,529 |
Vested and Expected to Vest at December 31 (in shares) | 13,056,367 | ||
Options exercisable (in shares) | 9,509,606 | 10,664,625 | 10,120,793 |
Weighted Average Exercise Price | |||
Outstanding at beginning of period (in dollars per share) | $ 135.31 | $ 125.75 | $ 109.87 |
Granted (in dollars per share) | 189.53 | 204.99 | 176.93 |
Exercised (in dollars per share) | 103.89 | 113.01 | 88.96 |
Lapsed or canceled (in dollars per share) | 186.35 | 175.42 | 156.62 |
Outstanding at end of period (in dollars per share) | 147.14 | $ 135.31 | $ 125.75 |
Vested and Expected to Vest at December 31 (in dollars per share) | $ 143.72 | ||
Options Activity Footnote [Abstract] | |||
Vested options (in shares) | 9,500,000 | ||
Options expected to vest (in shares) | 3,500,000 | ||
Outstanding unvested options (in shares) | 4,500,000 |
STOCK-BASED COMPENSATION PLAN_5
STOCK-BASED COMPENSATION PLANS - Schedule of Share Based Compensation by Price Ranges (Details) - 2016 Plan - Share-based Payment Arrangement, Option $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 $ / shares | Dec. 31, 2020 $ / shares | |
Options Outstanding | |||
Number outstanding (in shares) | shares | 14,052,288 | ||
Weighted average exercise price per share (in dollars per share) | $ / shares | 147.14 | ||
Aggregate Intrinsic Value | $ | $ 945 | ||
Options Exercisable | |||
Number exercisable (in shares) | shares | 9,509,606 | ||
Weighted average exercise price per share (in dollars per share) | $ / shares | $ 127.99 | $ 113.30 | $ 103.89 |
Aggregate Intrinsic Value | $ | $ 906 | ||
Weighted average period | 5 years 3 months 29 days | ||
$27.00–$64.99 | |||
Options Outstanding | |||
Number outstanding (in shares) | shares | 700 | ||
Weighted average exercise price per share (in dollars per share) | $ / shares | 57 | ||
Aggregate Intrinsic Value | $ | $ 0 | ||
Options Exercisable | |||
Number exercisable (in shares) | shares | 700 | ||
Weighted average exercise price per share (in dollars per share) | $ / shares | $ 57 | ||
Aggregate Intrinsic Value | $ | $ 0 | ||
Weighted average period | 2 months 12 days | ||
$65.00–$89.99 | |||
Options Outstanding | |||
Number outstanding (in shares) | shares | 949,592 | ||
Weighted average exercise price per share (in dollars per share) | $ / shares | 88.69 | ||
Aggregate Intrinsic Value | $ | $ 119 | ||
Options Exercisable | |||
Number exercisable (in shares) | shares | 949,592 | ||
Weighted average exercise price per share (in dollars per share) | $ / shares | $ 88.69 | ||
Aggregate Intrinsic Value | $ | $ 119 | ||
Weighted average period | 1 year 1 month 13 days | ||
$90.00–$99.99 | |||
Options Outstanding | |||
Number outstanding (in shares) | shares | 2,837,199 | ||
Weighted average exercise price per share (in dollars per share) | $ / shares | 98.79 | ||
Aggregate Intrinsic Value | $ | $ 328 | ||
Options Exercisable | |||
Number exercisable (in shares) | shares | 2,837,199 | ||
Weighted average exercise price per share (in dollars per share) | $ / shares | $ 98.79 | ||
Aggregate Intrinsic Value | $ | $ 328 | ||
Weighted average period | 2 years 6 months 7 days | ||
$100.00–$134.99 | |||
Options Outstanding | |||
Number outstanding (in shares) | shares | 2,092,549 | ||
Weighted average exercise price per share (in dollars per share) | $ / shares | 119.49 | ||
Aggregate Intrinsic Value | $ | $ 198 | ||
Options Exercisable | |||
Number exercisable (in shares) | shares | 2,026,049 | ||
Weighted average exercise price per share (in dollars per share) | $ / shares | $ 119.16 | ||
Aggregate Intrinsic Value | $ | $ 197 | ||
Weighted average period | 4 years 18 days | ||
$135.00–$189.99 | |||
Options Outstanding | |||
Number outstanding (in shares) | shares | 6,459,775 | ||
Weighted average exercise price per share (in dollars per share) | $ / shares | 170.71 | ||
Aggregate Intrinsic Value | $ | $ 282 | ||
Options Exercisable | |||
Number exercisable (in shares) | shares | 3,270,515 | ||
Weighted average exercise price per share (in dollars per share) | $ / shares | $ 160.19 | ||
Aggregate Intrinsic Value | $ | $ 248 | ||
Weighted average period | 6 years 10 months 13 days | ||
$190.00–$232.60 | |||
Options Outstanding | |||
Number outstanding (in shares) | shares | 1,712,473 | ||
Weighted average exercise price per share (in dollars per share) | $ / shares | 204.52 | ||
Aggregate Intrinsic Value | $ | $ 18 | ||
Options Exercisable | |||
Number exercisable (in shares) | shares | 425,551 | ||
Weighted average exercise price per share (in dollars per share) | $ / shares | $ 204.99 | ||
Aggregate Intrinsic Value | $ | $ 14 | ||
Weighted average period | 8 years 29 days |
STOCK-BASED COMPENSATION PLAN_6
STOCK-BASED COMPENSATION PLANS - Financial Statement Impact From Stock Options Exercised (Details) - 2016 Plan - Share-based Payment Arrangement, Option - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Intrinsic value | $ 310 | $ 219 | $ 379 |
Tax benefit realized | $ 71 | $ 48 | $ 84 |
STOCK-BASED COMPENSATION PLAN_7
STOCK-BASED COMPENSATION PLANS - Restricted Stock Units Activity (Details) - 2016 Plan - Restricted Stock Units (RSUs) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Number of Restricted Stock Units | |||
Non-vested at beginning of period (in shares) | 2,957,536 | 3,396,523 | 3,240,065 |
Granted (in shares) | 1,056,869 | 992,854 | 1,551,675 |
Vested (in shares) | (864,944) | (1,123,547) | (1,001,101) |
Forfeited (in shares) | (441,453) | (308,293) | (394,116) |
Non-vested at end of period (in shares) | 2,708,008 | 2,957,536 | 3,396,523 |
Weighted Average Grant Date Fair Value Per Share | |||
Non-vested at beginning of period (in dollars per share) | $ 171.73 | $ 148.23 | $ 143.07 |
Granted (in dollars per share) | 186.48 | 214.61 | 158.52 |
Vested (in dollars per share) | 157.21 | 144.34 | 117.84 |
Forfeited (in dollars per share) | 177.38 | 156.74 | 145.42 |
Non-vested at end of period (in dollars per share) | $ 181.10 | $ 171.73 | $ 148.23 |
STOCK-BASED COMPENSATION PLAN_8
STOCK-BASED COMPENSATION PLANS - Income Statement Impact from RSUs (Details) - 2016 Plan - Restricted Stock Units (RSUs) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | $ 143 | $ 162 | $ 118 |
Future income tax benefit recognized | $ 29 | $ 23 | $ 24 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Basic | |||
Net income attributable to Honeywell | $ 4,966 | $ 5,542 | $ 4,779 |
Weighted average shares outstanding (in shares) | 677.1 | 692.3 | 704.1 |
Earnings per share of common stock - basic (in dollars per share) | $ 7.33 | $ 8.01 | $ 6.79 |
Assuming dilution | |||
Net income attributable to Honeywell | $ 4,966 | $ 5,542 | $ 4,779 |
Average shares | |||
Weighted average shares outstanding (in shares) | 677.1 | 692.3 | 704.1 |
Dilutive securities issuable - stock plans (in shares) | 6 | 8.1 | 7.1 |
Total weighted average diluted shares outstanding (in shares) | 683.1 | 700.4 | 711.2 |
Earnings per share of common stock - assuming dilution (in dollars per share) | $ 7.27 | $ 7.91 | $ 6.72 |
Stock options excluded from diluted computations (in shares) | 3.5 | 1.7 | 5.5 |
Total shareowners' equity (in shares) | 667.6 | 684.8 | 696.8 |
Other (Income) Expense | $ 366 | $ 1,378 | $ 675 |
Common stock, par value (in shares) | 957.6 | 957.6 | |
Russia And Ukraine Conflict | |||
Average shares | |||
Other (Income) Expense | $ (295) | ||
Other (income) expense | Russia And Ukraine Conflict | |||
Average shares | |||
Other (Income) Expense | $ (45) |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
After-Tax | |||
Foreign exchange translation adjustment | $ (372) | $ 302 | $ (211) |
Pension and other postretirement benefit adjustments | (233) | 186 | 74 |
Changes in fair value of available for sale investments | (8) | (3) | 4 |
Changes in fair value of designated cash flow hedges | 15 | (3) | (44) |
Components of other comprehensive income (loss), net of tax | (598) | 482 | (177) |
Accumulated other comprehensive income (loss) | |||
Pre-tax | |||
Foreign exchange translation adjustment | (354) | 302 | (214) |
Pension and other postretirement benefit adjustments | (280) | 245 | 76 |
Changes in fair value of available for sale investments | (8) | (3) | 4 |
Changes in fair value of designated cash flow hedges | 9 | (4) | (61) |
Changes in accumulated other comprehensive income, pretax | (633) | 540 | (195) |
Tax | |||
Foreign exchange translation adjustment | 0 | 0 | 0 |
Pension and other postretirement benefit adjustments | 47 | (59) | (2) |
Changes in fair value of available for sale investments | 0 | 0 | 0 |
Changes in fair value of designated cash flow hedges | 6 | 1 | 17 |
Other comprehensive income (loss), tax | 53 | (58) | 15 |
After-Tax | |||
Foreign exchange translation adjustment | (354) | 302 | (214) |
Pension and other postretirement benefit adjustments | (233) | 186 | 74 |
Changes in fair value of available for sale investments | (8) | (3) | 4 |
Changes in fair value of designated cash flow hedges | 15 | (3) | (44) |
Components of other comprehensive income (loss), net of tax | $ (580) | $ 482 | $ (180) |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Components of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Cumulative foreign exchange translation adjustment | $ (2,832) | $ (2,478) |
Pension and other postretirement benefit adjustments | (648) | (415) |
Fair value adjustments of available for sale investments | (7) | 1 |
Fair value adjustments of designated cash flow hedges | 12 | (3) |
Accumulated other comprehensive income (loss) | $ (3,475) | $ (2,895) |
ACCUMULATED OTHER COMPREHENSI_5
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Change in Other Comprehensive Income (Loss) By Component - (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ 19,242 | $ 17,790 | |
Other comprehensive income (loss) before reclassifications | (904) | 596 | $ (72) |
Amounts reclassified from accumulated other comprehensive income | 324 | (114) | (108) |
Net current period other comprehensive income (loss) | (580) | 482 | (180) |
Ending balance | 17,319 | 19,242 | 17,790 |
Foreign Exchange Translation Adjustment | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (2,478) | (2,780) | (2,566) |
Other comprehensive income (loss) before reclassifications | (344) | 314 | (201) |
Amounts reclassified from accumulated other comprehensive income | (10) | (12) | (13) |
Net current period other comprehensive income (loss) | (354) | 302 | (214) |
Ending balance | (2,832) | (2,478) | (2,780) |
Pension and Other Postretirement Benefit Adjustments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (415) | (601) | (675) |
Other comprehensive income (loss) before reclassifications | (623) | 268 | 115 |
Amounts reclassified from accumulated other comprehensive income | 390 | (82) | (41) |
Net current period other comprehensive income (loss) | (233) | 186 | 74 |
Ending balance | (648) | (415) | (601) |
Changes in Fair Value of Available for Sale Investments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 1 | 4 | 0 |
Other comprehensive income (loss) before reclassifications | (8) | (3) | 4 |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | 0 |
Net current period other comprehensive income (loss) | (8) | (3) | 4 |
Ending balance | (7) | 1 | 4 |
Changes in Fair Value of Designated Cash Flow Hedges | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (3) | 0 | 44 |
Other comprehensive income (loss) before reclassifications | 71 | 17 | 10 |
Amounts reclassified from accumulated other comprehensive income | (56) | (20) | (54) |
Net current period other comprehensive income (loss) | 15 | (3) | (44) |
Ending balance | 12 | (3) | 0 |
Total | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (2,895) | (3,377) | (3,197) |
Ending balance | $ (3,475) | $ (2,895) | $ (3,377) |
ACCUMULATED OTHER COMPREHENSI_6
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net Sales | $ (35,466,000,000) | $ (34,392,000,000) | $ (32,637,000,000) |
Cost of products and services sold | 23,825,000,000 | 23,394,000,000 | 22,169,000,000 |
Selling, General and Administrative Expenses | 5,214,000,000 | 4,798,000,000 | 4,772,000,000 |
Other (Income) Expense | (366,000,000) | (1,378,000,000) | (675,000,000) |
Interest and other financial charges | 414,000,000 | 343,000,000 | 359,000,000 |
Tax expense (benefit) | 1,412,000,000 | 1,625,000,000 | 1,147,000,000 |
Product | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net Sales | (25,960,000,000) | (25,643,000,000) | (24,737,000,000) |
Cost of products and services sold | 18,263,000,000 | 18,344,000,000 | 17,638,000,000 |
Service | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net Sales | (9,506,000,000) | (8,749,000,000) | (7,900,000,000) |
Cost of products and services sold | 5,562,000,000 | 5,050,000,000 | 4,531,000,000 |
Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net Sales | (13,000,000) | (5,000,000) | 3,000,000 |
Selling, General and Administrative Expenses | 3,000,000 | (9,000,000) | 4,000,000 |
Other (Income) Expense | 432,000,000 | (109,000,000) | (79,000,000) |
Interest and other financial charges | (13,000,000) | (16,000,000) | (18,000,000) |
Total | 347,000,000 | (149,000,000) | (144,000,000) |
Tax expense (benefit) | (23,000,000) | 35,000,000 | 36,000,000 |
Total reclassifications for the period, net of tax | 324,000,000 | (114,000,000) | (108,000,000) |
Reclassification out of Accumulated Other Comprehensive Income | Product | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Cost of products and services sold | (48,000,000) | (8,000,000) | (43,000,000) |
Reclassification out of Accumulated Other Comprehensive Income | Service | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Cost of products and services sold | (14,000,000) | (2,000,000) | (11,000,000) |
Reclassification out of Accumulated Other Comprehensive Income | Actuarial Losses Recognized | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net Sales | 0 | 0 | 0 |
Selling, General and Administrative Expenses | 0 | 0 | 0 |
Other (Income) Expense | 516,000,000 | 7,000,000 | 57,000,000 |
Interest and other financial charges | 0 | 0 | 0 |
Total | 516,000,000 | 7,000,000 | 57,000,000 |
Reclassification out of Accumulated Other Comprehensive Income | Actuarial Losses Recognized | Product | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Cost of products and services sold | 0 | 0 | 0 |
Reclassification out of Accumulated Other Comprehensive Income | Actuarial Losses Recognized | Service | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Cost of products and services sold | 0 | 0 | 0 |
Reclassification out of Accumulated Other Comprehensive Income | Prior Service (Credit) Recognized | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net Sales | 0 | 0 | 0 |
Selling, General and Administrative Expenses | 0 | 0 | 0 |
Other (Income) Expense | (84,000,000) | (116,000,000) | (108,000,000) |
Interest and other financial charges | 0 | 0 | 0 |
Total | (84,000,000) | (116,000,000) | (108,000,000) |
Reclassification out of Accumulated Other Comprehensive Income | Prior Service (Credit) Recognized | Product | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Cost of products and services sold | 0 | 0 | 0 |
Reclassification out of Accumulated Other Comprehensive Income | Prior Service (Credit) Recognized | Service | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Cost of products and services sold | 0 | 0 | 0 |
Reclassification out of Accumulated Other Comprehensive Income | Losses (gains) on cash flow hedges | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net Sales | (13,000,000) | (5,000,000) | 3,000,000 |
Selling, General and Administrative Expenses | 3,000,000 | (9,000,000) | 4,000,000 |
Other (Income) Expense | 0 | 0 | (28,000,000) |
Interest and other financial charges | 0 | 0 | 0 |
Total | (72,000,000) | (24,000,000) | (75,000,000) |
Reclassification out of Accumulated Other Comprehensive Income | Losses (gains) on cash flow hedges | Product | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Cost of products and services sold | (48,000,000) | (8,000,000) | (43,000,000) |
Reclassification out of Accumulated Other Comprehensive Income | Losses (gains) on cash flow hedges | Service | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Cost of products and services sold | (14,000,000) | (2,000,000) | (11,000,000) |
Reclassification out of Accumulated Other Comprehensive Income | Losses (gains) on excluded component of net investment hedges | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net Sales | 0 | 0 | 0 |
Selling, General and Administrative Expenses | 0 | 0 | 0 |
Other (Income) Expense | 0 | 0 | 0 |
Interest and other financial charges | (13,000,000) | (16,000,000) | (18,000,000) |
Total | (13,000,000) | (16,000,000) | (18,000,000) |
Reclassification out of Accumulated Other Comprehensive Income | Losses (gains) on excluded component of net investment hedges | Product | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Cost of products and services sold | 0 | 0 | 0 |
Reclassification out of Accumulated Other Comprehensive Income | Losses (gains) on excluded component of net investment hedges | Service | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Cost of products and services sold | $ 0 | $ 0 | $ 0 |
CAPITAL STOCK - Narrative (Deta
CAPITAL STOCK - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Feb. 12, 2021 | |
Treasury Stock, Common | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Stock repurchased during period shares (in shares) | (21,900,000) | (15,800,000) | (20,700,000) | |
Reacquired stock or repurchases of common stock | $ 4,200 | $ 3,380 | $ 3,714 | |
Common stock, par value | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Common stock, shares authorized (in shares) | 2,000,000,000 | |||
Common shares par value (in dollars per share) | $ 1 | |||
Treasury stock | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Stock repurchase program remaining authorized repurchase amount | $ 2,900 | $ 7,100 | ||
Treasury stock | February 12 2021 | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Authorized amount of common stock value of share repurchase program | $ 10,000 | |||
Stock repurchase program remaining authorized repurchase amount | $ 2,800 | |||
Preferred Stock | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Preferred stock, shares authorized (in shares) | 40,000,000 | |||
Preferred stock, shares outstanding (in shares) | 0 | |||
Treasury Stock, Common | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Stock repurchased during period shares (in shares) | (15,800,000) | |||
Reacquired stock or repurchases of common stock | $ 3,400 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Environmental Matters (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accrual for Environmental Loss Contingencies [Roll Forward] | |||
Beginning of year | $ 618 | $ 660 | $ 709 |
Accruals for environmental matters deemed probable and reasonably estimable | 186 | 168 | 173 |
Environmental liability payments | (211) | (210) | (216) |
Other | 22 | 0 | (6) |
End of year | $ 615 | $ 618 | $ 660 |
Environmental Loss Contingency, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities | Other liabilities |
Loss Contingency, Classification of Accrual [Abstract] | |||
Accrued liabilities | $ 222 | $ 225 | |
Other liabilities | 393 | 393 | |
Total environmental liabilities | $ 615 | $ 618 | $ 660 |
Environmental Loss Contingency, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities | |
Environmental Loss Contingency, Current, Statement of Financial Position [Extensible Enumeration] | Accrued Liabilities, Current | Accrued Liabilities, Current | |
Environmental Liabilities | Resideo | |||
Loss Contingency, Classification of Accrual [Abstract] | |||
Indemnification and reimbursement agreement, cash payment of environmental annual spending, percent | 90% | ||
Indemnification and reimbursement agreement annual cap | $ 140 | ||
Indemnification and reimbursement agreement minimum amount | 25 | ||
Reimbursements from indemnification and reimbursement agreement | $ 140 | $ 140 | |
Reimbursements from indemnification, receivable as a percentage of environmental costs incurred | 90% | ||
Reimbursement receivable indemnification and reimbursement agreement | $ 157 | 146 | |
Indemnity and reimbursement receivable recorded in other current assets | 140 | 140 | |
Indemnity and reimbursement receivable recorded in other assets | $ 474 | $ 457 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Asbestos-Related Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Nov. 18, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Loss Contingency Accrual [Roll Forward] | ||||
NARCO Buyout | $ 1,325 | $ 0 | ||
Asbestos Related Liabilities Insurance Recoveries [Roll Forward] | ||||
Insurance receivables settlements and write-offs | 68 | 0 | $ 0 | |
Insurance recoveries for asbestos-related liabilities | 224 | 322 | ||
Accrued liabilities | 110 | 261 | ||
Asbestos-related liabilities | 1,180 | 1,800 | ||
Total | ||||
Loss Contingency Accrual [Roll Forward] | ||||
Asbestos related liabilities, beginning of period | 2,061 | 2,220 | 2,357 | |
Accrual for update to estimated liability | (541) | 95 | 98 | |
Change in estimated cost of future claims | 41 | 29 | 42 | |
Update of expected resolution values for pending claims | 1 | 3 | 10 | |
Asbestos-related liability payments | (271) | (286) | (287) | |
NARCO Buyout | 1,325 | 0 | 0 | |
Asbestos related liabilities, end of period | 2,616 | 2,061 | 2,220 | |
Asbestos Related Liabilities Insurance Recoveries [Roll Forward] | ||||
Insurance recoveries, beginning of period | 363 | 402 | 434 | |
Probable insurance recoveries related to estimated liability | 7 | 7 | 10 | |
Insurance receipts for asbestos-related liabilities | (37) | (46) | (58) | |
Insurance receivables settlements and write-offs | (68) | 0 | 16 | |
Insurance recoveries, end of period | 265 | 363 | 402 | |
Total assets | 265 | 363 | 402 | |
Total liabilities | 2,616 | 2,061 | 2,220 | |
Bendix | ||||
Loss Contingency Accrual [Roll Forward] | ||||
Asbestos related liabilities, beginning of period | 1,372 | 1,441 | 1,499 | |
Accrual for update to estimated liability | 93 | 64 | 80 | |
Change in estimated cost of future claims | 41 | 29 | 42 | |
Update of expected resolution values for pending claims | 1 | 3 | 10 | |
Asbestos-related liability payments | (216) | (165) | (190) | |
NARCO Buyout | 0 | 0 | 0 | |
Asbestos related liabilities, end of period | 1,291 | 1,372 | 1,441 | |
Asbestos Related Liabilities Insurance Recoveries [Roll Forward] | ||||
Insurance recoveries, beginning of period | 142 | 148 | 153 | |
Probable insurance recoveries related to estimated liability | 5 | 7 | 10 | |
Insurance receipts for asbestos-related liabilities | (17) | (13) | (33) | |
Insurance receivables settlements and write-offs | 0 | 0 | 18 | |
Insurance recoveries, end of period | 130 | 142 | 148 | |
Total assets | 130 | 142 | 148 | |
Total liabilities | 1,291 | 1,372 | 1,441 | |
Bendix | Settlement Agreement | ||||
Asbestos Related Liabilities Insurance Recoveries [Roll Forward] | ||||
Accrued liabilities | 10 | |||
NARCO | ||||
Loss Contingency Accrual [Roll Forward] | ||||
Asbestos related liabilities, beginning of period | 689 | 779 | 858 | |
Accrual for update to estimated liability | (634) | 31 | 18 | |
Change in estimated cost of future claims | 0 | 0 | 0 | |
Update of expected resolution values for pending claims | 0 | 0 | 0 | |
Asbestos-related liability payments | (55) | (121) | (97) | |
NARCO Buyout | 1,325 | 0 | 0 | |
Asbestos related liabilities, end of period | 1,325 | 689 | 779 | |
Asbestos Related Liabilities Insurance Recoveries [Roll Forward] | ||||
Insurance recoveries, beginning of period | 221 | 254 | 281 | |
Probable insurance recoveries related to estimated liability | 2 | 0 | 0 | |
Insurance receipts for asbestos-related liabilities | (20) | (33) | (25) | |
Insurance receivables settlements and write-offs | (68) | 0 | (2) | |
Insurance recoveries, end of period | 135 | 221 | 254 | |
Total assets | 135 | 221 | 254 | |
Total liabilities | 1,325 | 689 | $ 779 | |
NARCO Buyout | $ 1,325 | |||
Loss contingency, annual cap | 30 | |||
Loss contingency accrual, period increase (decrease) | 688 | |||
Loss contingency, buyout agreement, proceeds from sale | 295 | |||
NARCO And Bendix Asbestos Related Loss Contingency Liability | ||||
Loss Contingency Accrual [Roll Forward] | ||||
Asbestos related liabilities, beginning of period | 2,061 | |||
Asbestos related liabilities, end of period | 2,616 | 2,061 | ||
Asbestos Related Liabilities Insurance Recoveries [Roll Forward] | ||||
Insurance recoveries, beginning of period | 363 | |||
Insurance recoveries, end of period | 265 | 363 | ||
Other current assets | 41 | 41 | ||
Insurance recoveries for asbestos-related liabilities | 224 | 322 | ||
Total assets | 265 | 363 | ||
Accrued liabilities | 1,436 | 261 | ||
Asbestos-related liabilities | 1,180 | 1,800 | ||
Total liabilities | $ 2,616 | $ 2,061 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES - Bendix-Related Asbestos Claims Activity (Details) - Bendix | 12 Months Ended | ||
Dec. 31, 2022 claims | Dec. 31, 2022 claim | Dec. 31, 2021 claims | |
Claims activity | |||
Claims unresolved at the beginning of period | 6,401 | 6,401 | 6,242 |
Claims filed | 2,014 | 2,611 | |
Claims resolved | (2,807) | (2,452) | |
Claims unresolved at the end of year | 5,608 | 5,608 | 6,401 |
COMMITMENTS AND CONTINGENCIES_4
COMMITMENTS AND CONTINGENCIES - Disease Distribution of Unresolved Claims (Details) - Bendix | Dec. 31, 2022 claims | Dec. 31, 2022 claim | Dec. 31, 2021 claims | Dec. 31, 2021 claim | Dec. 31, 2020 claims |
Loss Contingency Disease Distribution Of Unresolved Claims [Line Items] | |||||
Mesothelioma and other cancer claims | 3,283 | 3,760 | |||
Nonmalignant claims | 2,325 | 2,641 | |||
Total claims | 5,608 | 5,608 | 6,401 | 6,401 | 6,242 |
COMMITMENTS ND CONTINGENCIES -
COMMITMENTS ND CONTINGENCIES - Garrett Litigation and Bankruptcy Proceedings (Details) shares in Millions | 12 Months Ended | |||||||||
Apr. 30, 2021 USD ($) shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Jun. 28, 2022 USD ($) | Feb. 19, 2022 USD ($) | Feb. 18, 2022 USD ($) | Dec. 28, 2021 USD ($) | Dec. 16, 2021 USD ($) | Sep. 30, 2021 USD ($) | |
Garrett Litigation And Bankruptcy Proceedings [Line Items] | ||||||||||
Reimbursement receivables charge | $ 0 | $ 0 | $ 509,000,000 | |||||||
Receipts from Garrett Motion Inc. | $ 409,000,000 | 586,000,000 | 0 | |||||||
Non-cash amounts related to shares of Garrett Series B Preferred Stock | shares | 834.8 | |||||||||
Long-term investments | $ 0 | $ 577,000,000 | 0 | |||||||
Series B Preferred Stock | ||||||||||
Garrett Litigation And Bankruptcy Proceedings [Line Items] | ||||||||||
Mandatory redemption discount rate | 0.0725 | |||||||||
Series B Preferred Stock | Level 2 | ||||||||||
Garrett Litigation And Bankruptcy Proceedings [Line Items] | ||||||||||
Investments in equity securities | $ 212,000,000 | $ 207,000,000 | $ 197,000,000 | |||||||
Garrett Indemnity And Tax Matters Agreement | ||||||||||
Garrett Litigation And Bankruptcy Proceedings [Line Items] | ||||||||||
Reimbursement receivables charge | $ 509,000,000 | |||||||||
The Confirmed Plan | ||||||||||
Garrett Litigation And Bankruptcy Proceedings [Line Items] | ||||||||||
Garrett minimum EBITDA | 425,000,000 | |||||||||
The Confirmed Plan | Series B Preferred Stock | First Partial Redemption | ||||||||||
Garrett Litigation And Bankruptcy Proceedings [Line Items] | ||||||||||
Preferred stock, redemption amount | $ 211,000,000 | |||||||||
Long-term investments | $ 400,000,000 | |||||||||
The Confirmed Plan | Series B Preferred Stock | Second Partial Redemption | ||||||||||
Garrett Litigation And Bankruptcy Proceedings [Line Items] | ||||||||||
Long-term investments | $ 207,000,000 | |||||||||
The Confirmed Plan | Year One After Effective Date of Plan | Series B Preferred Stock | ||||||||||
Garrett Litigation And Bankruptcy Proceedings [Line Items] | ||||||||||
Preferred stock, redemption amount | 35,000,000 | |||||||||
The Confirmed Plan | Payment Over Time | Series B Preferred Stock | ||||||||||
Garrett Litigation And Bankruptcy Proceedings [Line Items] | ||||||||||
Preferred stock, redemption amount | $ 100,000,000 | |||||||||
The Confirmed Plan | Garrett Indemnity And Tax Matters Agreement | Initial Payment | ||||||||||
Garrett Litigation And Bankruptcy Proceedings [Line Items] | ||||||||||
Receipts from Garrett Motion Inc. | $ 375,000,000 | |||||||||
Non-cash amounts related to shares of Garrett Series B Preferred Stock | shares | 834.8 |
COMMITMENTS AND CONTINGENCIES_5
COMMITMENTS AND CONTINGENCIES - Resolution Values Per Claim Excluding Legal Costs (Details) - Bendix | 12 Months Ended | ||||
Dec. 31, 2022 $ / claims | Dec. 31, 2021 $ / claims | Dec. 31, 2020 $ / claims | Dec. 31, 2019 $ / claims | Dec. 31, 2018 $ / claims $ / claim | |
Loss Contingency Indemnification Agreements Disclosure [Line Items] | |||||
Malignant claims (in dollars per claim) | 59,200 | 56,000 | 61,500 | 50,200 | 55,300 |
Nonmalignant claims (in dollars per claim) | 520 | 400 | 550 | 3,900 | 4,700 |
COMMITMENTS AND CONTINGENCIES_6
COMMITMENTS AND CONTINGENCIES - Other Matters (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |||
Jan. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 30, 2022 | |
Other Matters [Line Items] | |||||
Accrual for environmental loss contingencies, payments | $ 211 | $ 210 | $ 216 | ||
Petrobras | |||||
Other Matters [Line Items] | |||||
Loss contingency, estimate of possible loss | $ 205 | $ 210 | |||
Petrobras | Subsequent Event | |||||
Other Matters [Line Items] | |||||
Accrual for environmental loss contingencies, payments | $ 202.7 |
COMMITMENTS AND CONTINGENCIES_7
COMMITMENTS AND CONTINGENCIES - Warranties and Guarantees (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |||
Beginning of year | $ 223 | $ 243 | $ 269 |
Accruals for warranties/guarantees issued during the year | 117 | 146 | 164 |
Adjustment of pre-existing warranties/guarantees | (12) | (7) | (18) |
Settlement of warranty/guarantee claims | (115) | (159) | (172) |
End of year | 213 | 223 | 243 |
Standard Product Warranty Accrual, Balance Sheet Classification [Abstract] | |||
Accrued liabilities | 175 | 180 | |
Other liabilities | 38 | 43 | |
Total product warranties and guarantees liabilities | $ 213 | $ 223 | $ 243 |
PENSION AND OTHER POSTRETIREM_3
PENSION AND OTHER POSTRETIREMENT BENEFITS - Balance Sheet Impact (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Change in plan assets: | |||
Postretirement benefit obligations other than pensions | $ (146) | $ (208) | |
Pension ongoing income—non-service | U.S. Plans | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of year | 17,391 | 18,054 | |
Service cost | 86 | 105 | $ 99 |
Interest cost | 380 | 306 | 461 |
Plan amendments | 0 | 0 | |
Actuarial (gains) losses | (3,135) | 141 | |
Benefits paid | (1,421) | (1,221) | |
Settlements and curtailments | (13) | 0 | |
Foreign currency translation | 0 | 0 | |
Other | 2 | 6 | |
Benefit obligation at end of year | 13,290 | 17,391 | 18,054 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 20,560 | 20,396 | |
Actual return on plan assets | (2,161) | 1,344 | |
Company contributions | 37 | 35 | |
Benefits paid | 1,421 | 1,221 | |
Settlements and curtailments | (13) | 0 | |
Foreign currency translation | 0 | 0 | |
Other | 3 | 6 | |
Fair value of plan assets at end of year | 17,005 | 20,560 | 20,396 |
Funded status of plans | 3,715 | 3,169 | |
Prepaid pension benefit cost | 3,970 | 3,528 | |
Accrued pension liabilities - current | (28) | (33) | |
Accrued pension liabilities - noncurrent | (227) | (326) | |
Net amount recognized | 3,715 | 3,169 | |
Pension ongoing income—non-service | Non-U.S. Plans | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of year | 6,999 | 7,670 | |
Service cost | 19 | 26 | 23 |
Interest cost | 103 | 77 | 106 |
Plan amendments | 0 | (3) | |
Actuarial (gains) losses | (1,929) | (403) | |
Benefits paid | (261) | (249) | |
Settlements and curtailments | 0 | 0 | |
Foreign currency translation | (533) | (121) | |
Other | 2 | 2 | |
Benefit obligation at end of year | 4,400 | 6,999 | 7,670 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 8,396 | 8,450 | |
Actual return on plan assets | (2,187) | 166 | |
Company contributions | 17 | 101 | |
Benefits paid | 261 | 249 | |
Settlements and curtailments | 0 | 0 | |
Foreign currency translation | (664) | (74) | |
Other | 3 | 2 | |
Fair value of plan assets at end of year | 5,304 | 8,396 | 8,450 |
Funded status of plans | 904 | 1,397 | |
Prepaid pension benefit cost | 1,356 | 2,105 | |
Accrued pension liabilities - current | (14) | (14) | |
Accrued pension liabilities - noncurrent | (438) | (694) | |
Net amount recognized | 904 | 1,397 | |
Other Postretirement Benefits | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of year | 196 | 229 | |
Service cost | 0 | 0 | 0 |
Interest cost | 5 | 5 | 8 |
Plan amendments | 0 | 0 | |
Actuarial (gains) losses | (54) | (8) | |
Benefits paid | (14) | (30) | |
Benefit obligation at end of year | 133 | 196 | 229 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Company contributions | 0 | 0 | |
Benefits paid | 0 | 0 | |
Fair value of plan assets at end of year | 0 | 0 | $ 0 |
Funded status of plans | (133) | (196) | |
Accrued pension liabilities - current | (21) | (25) | |
Postretirement benefit obligations other than pensions | (112) | (171) | |
Net amount recognized | (133) | (196) | |
Foreign plans excluded from postretirement benefits other than pensions | $ 34 | $ 37 |
PENSION AND OTHER POSTRETIREM_4
PENSION AND OTHER POSTRETIREMENT BENEFITS - Accumulated Other Comprehensive (Income) Loss Associated With Other Postretirement Benefit Plans (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Pension ongoing income—non-service | U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Prior service (credit) cost | $ (50) | $ (92) |
Net actuarial (gain) loss | 814 | 492 |
Net amount recognized | 764 | 400 |
Pension ongoing income—non-service | Non-U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Prior service (credit) cost | 18 | 20 |
Net actuarial (gain) loss | 360 | 397 |
Net amount recognized | 378 | 417 |
Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Prior service (credit) cost | (50) | (92) |
Net actuarial (gain) loss | (84) | (34) |
Net amount recognized | $ (134) | $ (126) |
PENSION AND OTHER POSTRETIREM_5
PENSION AND OTHER POSTRETIREMENT BENEFITS - Net Periodic Benefit (Income) Cost Recognized in Other Comprehensive (Income) Loss (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 0 | $ 0 | $ 0 |
Interest cost | 5 | 5 | 8 |
Amortization of prior service (credit) cost | (42) | (74) | (66) |
Recognition of actuarial (gains) losses | (4) | (2) | 0 |
Net periodic benefit (income) cost | (41) | (71) | (58) |
Actuarial (gains) losses | (54) | (8) | (8) |
Prior service (credit) cost | 0 | 0 | (65) |
Prior service credit recognized during year | (42) | (74) | (66) |
Actuarial (gains) losses recognized during year | (4) | (2) | 0 |
Total recognized in Other comprehensive (income) loss | (8) | 68 | (7) |
Total recognized in net periodic benefit (income) cost and Other comprehensive (income) loss | (49) | (3) | (65) |
Pension ongoing income—non-service | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 86 | 105 | 99 |
Interest cost | 380 | 306 | 461 |
Expected return on plan assets | (1,281) | (1,220) | (1,135) |
Amortization of prior service (credit) cost | (42) | (42) | (42) |
Recognition of actuarial (gains) losses | (14) | 31 | 26 |
Settlements and curtailments | (2) | 0 | 4 |
Net periodic benefit (income) cost | (873) | (820) | (587) |
Actuarial (gains) losses | 307 | (14) | (9) |
Prior service (credit) cost | 0 | 0 | 0 |
Prior service credit recognized during year | 43 | 43 | 42 |
Actuarial (gains) losses recognized during year | 15 | 0 | (30) |
Foreign currency translation | 0 | 0 | 0 |
Total recognized in Other comprehensive (income) loss | 365 | 29 | 3 |
Total recognized in net periodic benefit (income) cost and Other comprehensive (income) loss | (508) | (791) | (584) |
Pension ongoing income—non-service | Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 19 | 26 | 23 |
Interest cost | 103 | 77 | 106 |
Expected return on plan assets | (278) | (348) | (336) |
Amortization of prior service (credit) cost | 0 | 0 | 0 |
Recognition of actuarial (gains) losses | 537 | 9 | 18 |
Settlements and curtailments | 0 | 0 | 0 |
Net periodic benefit (income) cost | 381 | (236) | (189) |
Actuarial (gains) losses | 294 | (221) | (73) |
Prior service (credit) cost | 0 | (3) | 2 |
Prior service credit recognized during year | (1) | (1) | 0 |
Actuarial (gains) losses recognized during year | (537) | (9) | (18) |
Foreign currency translation | 204 | (1) | 19 |
Total recognized in Other comprehensive (income) loss | (40) | (235) | (70) |
Total recognized in net periodic benefit (income) cost and Other comprehensive (income) loss | $ 341 | $ (471) | $ (259) |
PENSION AND OTHER POSTRETIREM_6
PENSION AND OTHER POSTRETIREMENT BENEFITS - Actuarial Assumptions (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Pension ongoing income—non-service | U.S. Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Discount rate | 2.87% | 5.17% | 2.87% | 2.50% | |
Expected annual rate of compensation increase | 3.25% | 3.25% | 3.25% | 3.25% | |
Discount rate—benefit obligation | 2.87% | 2.50% | 3.22% | ||
Discount rate—service cost | 2.98% | 2.68% | 3.33% | ||
Discount rate—interest cost | 2.26% | 1.76% | 2.76% | ||
Expected rate of return on plan assets | 6.40% | 6.15% | 6.15% | ||
Expected annual rate of compensation increase | 3.25% | 3.25% | 3.25% | ||
Pension ongoing income—non-service | Non-U.S. Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Discount rate | 1.79% | 4.50% | 1.79% | 1.23% | |
Expected annual rate of compensation increase | 2.56% | 2.69% | 2.56% | 2.43% | |
Discount rate—benefit obligation | 1.77% | 1.24% | 1.81% | ||
Discount rate—service cost | 1.48% | 1% | 1.48% | ||
Discount rate—interest cost | 1.59% | 1% | 1.56% | ||
Expected rate of return on plan assets | 3.61% | 4.03% | 4.66% | ||
Expected annual rate of compensation increase | 2.56% | 2.43% | 2.47% | ||
Other Postretirement Benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Discount rate | 2.66% | 5.32% | 2.66% | 2.20% | |
Discount rate | 2.36% | 3.03% | 2.66% | 2.20% | 2.36% |
PENSION AND OTHER POSTRETIREM_7
PENSION AND OTHER POSTRETIREMENT BENEFITS - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
U.S. Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Pension notional amount | $ 2,567 | $ 4,415 | ||
Non-U.S. Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Pension notional amount | 120 | $ 311 | ||
Cash pension contributions | $ 10 | |||
Minimum | Fixed Income Securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target allocations percentage | 45% | |||
Minimum | Equity Securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target allocations percentage | 25% | |||
Minimum | Real Estate | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target allocations percentage | 5% | |||
Minimum | Other than Securities Investment | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target allocations percentage | 10% | |||
Maximum | Fixed Income Securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target allocations percentage | 65% | |||
Maximum | Equity Securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target allocations percentage | 40% | |||
Maximum | Real Estate | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target allocations percentage | 10% | |||
Maximum | Other than Securities Investment | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target allocations percentage | 20% | |||
Pension ongoing income—non-service | U.S. Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Expected rate of return on plan assets | 6.40% | 6.15% | 6.15% | |
Accumulated benefit obligation | $ 13,300 | $ 17,300 | ||
Pension ongoing income—non-service | Non-U.S. Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Expected rate of return on plan assets | 3.61% | 4.03% | 4.66% | |
Accumulated benefit obligation | $ 4,400 | $ 6,900 | ||
Forecast | Non-U.S. Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Contributions to pension plans | $ 10 | |||
Forecast | Pension ongoing income—non-service | U.S. Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Discount rate, service costs | 5.26% | |||
Discount rate, interest costs | 5.07% | |||
Expected rate of return on plan assets | 6.75% |
PENSION AND OTHER POSTRETIREM_8
PENSION AND OTHER POSTRETIREMENT BENEFITS - Pension Benefits (Details) - Pension ongoing income—non-service - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $ 255 | $ 359 |
Accumulated benefit obligation | 253 | 346 |
Fair value of plan assets | 0 | 0 |
Non-U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | 682 | 964 |
Accumulated benefit obligation | 664 | 932 |
Fair value of plan assets | $ 230 | $ 256 |
PENSION AND OTHER POSTRETIREM_9
PENSION AND OTHER POSTRETIREMENT BENEFITS - Fair Value of Pension Plan Assets (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Pension ongoing income—non-service | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | $ 17,005 | $ 20,560 | $ 20,396 |
Pension ongoing income—non-service | Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 5,304 | 8,396 | 8,450 |
Honeywell common stock | Pension ongoing income—non-service | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 3,336 | 3,251 | |
Honeywell common stock | Pension ongoing income—non-service | Level 1 | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 3,336 | 3,251 | |
Honeywell common stock | Pension ongoing income—non-service | Level 2 | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Honeywell common stock | Pension ongoing income—non-service | Level 3 | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
U.S. equities | Pension ongoing income—non-service | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 6 | 0 | |
U.S. equities | Pension ongoing income—non-service | Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 144 | 229 | |
U.S. equities | Pension ongoing income—non-service | Level 1 | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 6 | 0 | |
U.S. equities | Pension ongoing income—non-service | Level 1 | Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 2 | 1 | |
U.S. equities | Pension ongoing income—non-service | Level 2 | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
U.S. equities | Pension ongoing income—non-service | Level 2 | Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 142 | 228 | |
U.S. equities | Pension ongoing income—non-service | Level 3 | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
U.S. equities | Pension ongoing income—non-service | Level 3 | Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Short-term investments | Pension ongoing income—non-service | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 855 | 1,767 | |
Short-term investments | Pension ongoing income—non-service | Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 341 | 571 | |
Short-term investments | Pension ongoing income—non-service | Level 1 | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 855 | 1,767 | |
Short-term investments | Pension ongoing income—non-service | Level 1 | Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 341 | 571 | |
Short-term investments | Pension ongoing income—non-service | Level 2 | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Short-term investments | Pension ongoing income—non-service | Level 2 | Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Short-term investments | Pension ongoing income—non-service | Level 3 | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Short-term investments | Pension ongoing income—non-service | Level 3 | Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Government securities | Pension ongoing income—non-service | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 1,492 | 1,373 | |
Government securities | Pension ongoing income—non-service | Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 2,045 | 3,893 | |
Government securities | Pension ongoing income—non-service | Level 1 | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Government securities | Pension ongoing income—non-service | Level 1 | Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Government securities | Pension ongoing income—non-service | Level 2 | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 1,492 | 1,373 | |
Government securities | Pension ongoing income—non-service | Level 2 | Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 2,045 | 3,893 | |
Government securities | Pension ongoing income—non-service | Level 3 | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Government securities | Pension ongoing income—non-service | Level 3 | Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Corporate bonds | Pension ongoing income—non-service | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 6,632 | 9,588 | |
Corporate bonds | Pension ongoing income—non-service | Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 1,031 | 1,681 | |
Corporate bonds | Pension ongoing income—non-service | Level 1 | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Corporate bonds | Pension ongoing income—non-service | Level 1 | Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Corporate bonds | Pension ongoing income—non-service | Level 2 | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 6,632 | 9,588 | |
Corporate bonds | Pension ongoing income—non-service | Level 2 | Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 1,031 | 1,681 | |
Corporate bonds | Pension ongoing income—non-service | Level 3 | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Corporate bonds | Pension ongoing income—non-service | Level 3 | Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Mortgage/Asset-backed securities | Pension ongoing income—non-service | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 1,119 | 1,072 | |
Mortgage/Asset-backed securities | Pension ongoing income—non-service | Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 31 | 79 | |
Mortgage/Asset-backed securities | Pension ongoing income—non-service | Level 1 | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Mortgage/Asset-backed securities | Pension ongoing income—non-service | Level 1 | Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Mortgage/Asset-backed securities | Pension ongoing income—non-service | Level 2 | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 1,119 | 1,072 | |
Mortgage/Asset-backed securities | Pension ongoing income—non-service | Level 2 | Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 31 | 79 | |
Mortgage/Asset-backed securities | Pension ongoing income—non-service | Level 3 | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Mortgage/Asset-backed securities | Pension ongoing income—non-service | Level 3 | Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Insurance contracts | Pension ongoing income—non-service | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 8 | 8 | |
Insurance contracts | Pension ongoing income—non-service | Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 115 | 123 | |
Insurance contracts | Pension ongoing income—non-service | Level 1 | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Insurance contracts | Pension ongoing income—non-service | Level 1 | Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Insurance contracts | Pension ongoing income—non-service | Level 2 | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 8 | 8 | |
Insurance contracts | Pension ongoing income—non-service | Level 2 | Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 115 | 123 | |
Insurance contracts | Pension ongoing income—non-service | Level 3 | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Insurance contracts | Pension ongoing income—non-service | Level 3 | Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Direct private investments | Level 3 | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 1,284 | 1,336 | 1,220 |
Direct private investments | Pension ongoing income—non-service | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 1,284 | 1,336 | |
Direct private investments | Pension ongoing income—non-service | Level 1 | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Direct private investments | Pension ongoing income—non-service | Level 2 | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Direct private investments | Pension ongoing income—non-service | Level 3 | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 1,284 | 1,336 | |
Real estate properties | Level 3 | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 1,005 | 843 | 651 |
Real estate properties | Pension ongoing income—non-service | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 1,005 | 843 | |
Real estate properties | Pension ongoing income—non-service | Level 1 | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Real estate properties | Pension ongoing income—non-service | Level 2 | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Real estate properties | Pension ongoing income—non-service | Level 3 | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 1,005 | 843 | |
Total | Pension ongoing income—non-service | Level 1 | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 4,197 | 5,018 | |
Total | Pension ongoing income—non-service | Level 1 | Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 343 | 572 | |
Total | Pension ongoing income—non-service | Level 2 | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 9,251 | 12,041 | |
Total | Pension ongoing income—non-service | Level 2 | Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 3,792 | 6,869 | |
Total | Pension ongoing income—non-service | Level 3 | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 2,289 | 2,179 | |
Total | Pension ongoing income—non-service | Level 3 | Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 1,116 | 887 | |
Total | Pension ongoing income—non-service | Fair Value, Inputs, Level 1, Level 2, and Level 3 | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 15,737 | 19,238 | |
Total | Pension ongoing income—non-service | Fair Value, Inputs, Level 1, Level 2, and Level 3 | Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 5,251 | 8,328 | |
Private funds | Pension ongoing income—non-service | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 1,258 | 1,244 | |
Private funds | Pension ongoing income—non-service | Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 10 | 17 | |
Real estate funds | Pension ongoing income—non-service | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 10 | 14 | |
Real estate funds | Pension ongoing income—non-service | Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 43 | 51 | |
Commingled funds | Pension ongoing income—non-service | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 64 | |
Non-U.S. equities | Pension ongoing income—non-service | Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 374 | 824 | |
Non-U.S. equities | Pension ongoing income—non-service | Level 1 | Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Non-U.S. equities | Pension ongoing income—non-service | Level 2 | Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 374 | 824 | |
Non-U.S. equities | Pension ongoing income—non-service | Level 3 | Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Insurance buy-in contracts | Level 3 | Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 950 | 691 | 767 |
Insurance buy-in contracts | Pension ongoing income—non-service | Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 950 | 691 | |
Insurance buy-in contracts | Pension ongoing income—non-service | Level 1 | Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Insurance buy-in contracts | Pension ongoing income—non-service | Level 2 | Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Insurance buy-in contracts | Pension ongoing income—non-service | Level 3 | Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 950 | 691 | |
Private funds | Level 3 | Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 36 | 33 | 29 |
Private funds | Pension ongoing income—non-service | Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 90 | 74 | |
Private funds | Pension ongoing income—non-service | Level 1 | Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Private funds | Pension ongoing income—non-service | Level 2 | Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 54 | 41 | |
Private funds | Pension ongoing income—non-service | Level 3 | Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 36 | 33 | |
Real estate funds | Level 3 | Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 130 | 163 | $ 147 |
Real estate funds | Pension ongoing income—non-service | Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 130 | 163 | |
Real estate funds | Pension ongoing income—non-service | Level 1 | Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Real estate funds | Pension ongoing income—non-service | Level 2 | Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Real estate funds | Pension ongoing income—non-service | Level 3 | Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | $ 130 | $ 163 |
PENSION AND OTHER POSTRETIRE_10
PENSION AND OTHER POSTRETIREMENT BENEFITS - Changes in Level 3 Fair Value (Details) - Level 3 - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Direct private investments | U.S. Plans | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | $ 1,336 | $ 1,220 |
Relating to assets still held at year-end | (66) | 11 |
Relating to assets sold during the year | 98 | 174 |
Purchases | 75 | 194 |
Sales and settlements | (159) | (263) |
Fair value of plan assets at end of year | 1,284 | 1,336 |
Real estate properties | U.S. Plans | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 843 | 651 |
Relating to assets still held at year-end | 88 | 96 |
Relating to assets sold during the year | (24) | 0 |
Purchases | 148 | 99 |
Sales and settlements | (50) | (3) |
Fair value of plan assets at end of year | 1,005 | 843 |
Private funds | Non-U.S. Plans | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 33 | 29 |
Relating to assets still held at year-end | 11 | 4 |
Relating to assets sold during the year | 0 | 0 |
Purchases | 0 | 0 |
Sales and settlements | (8) | 0 |
Fair value of plan assets at end of year | 36 | 33 |
Real estate funds | Non-U.S. Plans | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 163 | 147 |
Relating to assets still held at year-end | (33) | 23 |
Relating to assets sold during the year | 1 | 4 |
Purchases | 0 | 0 |
Sales and settlements | (1) | (11) |
Fair value of plan assets at end of year | 130 | 163 |
Insurance buy-in contracts | Non-U.S. Plans | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 691 | 767 |
Relating to assets still held at year-end | (477) | (76) |
Relating to assets sold during the year | 0 | 0 |
Purchases | 736 | 0 |
Sales and settlements | 0 | 0 |
Fair value of plan assets at end of year | $ 950 | $ 691 |
PENSION AND OTHER POSTRETIRE_11
PENSION AND OTHER POSTRETIREMENT BENEFITS - Benefit Payments (Details) - Pension ongoing income—non-service $ in Millions | Dec. 31, 2022 USD ($) |
U.S. Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2023 | $ 1,139 |
2024 | 1,121 |
2025 | 1,104 |
2026 | 1,087 |
2027 | 1,067 |
2028-2032 | 4,943 |
Non-U.S. Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2023 | 247 |
2024 | 249 |
2025 | 256 |
2026 | 264 |
2027 | 269 |
2028-2032 | $ 1,271 |
PENSION AND OTHER POSTRETIRE_12
PENSION AND OTHER POSTRETIREMENT BENEFITS - Other Postretirement Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Other Postretirement Benefits | ||
Assumed health care cost trend rate: | ||
Health care cost trend rate assumed for next year | 7.50% | 6.50% |
Rate that the cost trend rate gradually declines to | 5% | 5% |
Year that the rate reaches the rate it is assumed to remain at | 2031 | 2029 |
Without Impact of Medicare Subsidy | ||
Assumed health care cost trend rate: | ||
2023 | $ 24 | |
2024 | 13 | |
2025 | 13 | |
2026 | 12 | |
2027 | 12 | |
2028-2032 | 51 | |
Net of Medicare Subsidy | ||
Assumed health care cost trend rate: | ||
2023 | 22 | |
2024 | 13 | |
2025 | 12 | |
2026 | 12 | |
2027 | 11 | |
2028-2032 | $ 48 |
OTHER (INCOME) EXPENSE (Details
OTHER (INCOME) EXPENSE (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other Income and Expenses [Line Items] | |||
Interest income | $ (138) | $ (102) | $ (107) |
Equity income of affiliated companies | (61) | (67) | (66) |
Loss (gain) on sale of non-strategic businesses and assets | (22) | (102) | 3 |
Foreign exchange | 48 | 25 | (68) |
Expense related to UOP Matters | 45 | 160 | 0 |
Expense related to Russia-Ukraine conflict | 45 | 0 | 0 |
Reimbursement receivables charge | 0 | 0 | 509 |
Net expense related to the NARCO Buyout and HWI Sale | 342 | 0 | 0 |
Other expense | (19) | ||
Other income | 18 | (12) | |
Other (income) expense, total | (366) | (1,378) | (675) |
Pension ongoing income—non-service | |||
Other Income and Expenses [Line Items] | |||
Ongoing income - non-service | (602) | (1,202) | (901) |
Other postretirement income—non-service | |||
Other Income and Expenses [Line Items] | |||
Ongoing income - non-service | $ (41) | $ (71) | $ (57) |
SEGMENT FINANCIAL DATA (Details
SEGMENT FINANCIAL DATA (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) segment | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of operating segments | segment | 4 | ||
Net Sales | $ 35,466 | $ 34,392 | $ 32,637 |
Depreciation and amortization | 1,204 | 1,138 | 1,003 |
Segment profit | 7,689 | 7,212 | 6,665 |
Capital expenditures | 766 | 895 | 906 |
Total assets | 62,275 | 64,470 | 64,586 |
Aerospace | Cost of Products Sold | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 6,330 | 6,158 | 7,194 |
Aerospace | Cost of Services Sold | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 5,497 | 4,868 | 4,350 |
Honeywell Building Technologies | Cost of Products Sold | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 4,591 | 4,098 | 3,868 |
Honeywell Building Technologies | Cost of Services Sold | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 1,409 | 1,441 | 1,321 |
Performance Materials and Technologies | Cost of Products Sold | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 8,593 | 8,008 | 7,548 |
Performance Materials and Technologies | Cost of Services Sold | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 2,134 | 2,005 | 1,875 |
Safety and Productivity Solutions | Cost of Products Sold | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 6,446 | 7,379 | 6,127 |
Safety and Productivity Solutions | Cost of Services Sold | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 461 | 435 | 354 |
Corporate and All Other | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 5 | 0 | 0 |
Depreciation and amortization | 158 | 102 | 44 |
Segment profit | (412) | (226) | (96) |
Capital expenditures | 78 | 94 | 52 |
Total assets | 14,708 | 17,174 | 19,788 |
Corporate and All Other | Cost of Services Sold | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 5 | 0 | 0 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 35,466 | 34,392 | 32,637 |
Operating Segments | Aerospace | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 11,827 | 11,026 | 11,544 |
Depreciation and amortization | 285 | 278 | 241 |
Segment profit | 3,228 | 3,051 | 2,904 |
Capital expenditures | 246 | 284 | 248 |
Total assets | 12,189 | 11,490 | 11,035 |
Operating Segments | Honeywell Building Technologies | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 6,000 | 5,539 | 5,189 |
Depreciation and amortization | 92 | 67 | 55 |
Segment profit | 1,439 | 1,238 | 1,099 |
Capital expenditures | 74 | 62 | 66 |
Total assets | 6,599 | 6,543 | 6,351 |
Operating Segments | Performance Materials and Technologies | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 10,727 | 10,013 | 9,423 |
Depreciation and amortization | 478 | 454 | 440 |
Segment profit | 2,354 | 2,120 | 1,851 |
Capital expenditures | 318 | 265 | 252 |
Total assets | 17,887 | 18,021 | 16,772 |
Operating Segments | Safety and Productivity Solutions | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 6,907 | 7,814 | 6,481 |
Depreciation and amortization | 191 | 237 | 223 |
Segment profit | 1,080 | 1,029 | 907 |
Capital expenditures | 50 | 190 | 288 |
Total assets | $ 10,892 | $ 11,242 | $ 10,640 |
SEGMENT FINANCIAL DATA- Reconci
SEGMENT FINANCIAL DATA- Reconciliation of Operating Profit Loss From Segments to Consolidated (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Segment profit | $ 7,689 | $ 7,212 | $ 6,665 |
Interest and other financial charges | (414) | (343) | (359) |
Repositioning and other charges | (1,266) | (569) | (575) |
Income before taxes | 6,379 | 7,235 | 6,012 |
Other Postretirement Benefits | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Pension ongoing income (expense) and postretirement income | 41 | 71 | 58 |
Segment Reconciling Items | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Interest and other financial charges | (414) | (343) | (359) |
Stock compensation expense | (188) | (217) | (168) |
Pension mark-to-market expense | (523) | (40) | (44) |
Repositioning and other charges | (1,266) | (569) | (575) |
Other | 47 | 38 | (349) |
Income before taxes | 6,379 | 7,235 | 6,012 |
Segment Reconciling Items | Pension ongoing income—non-service | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Pension ongoing income (expense) and postretirement income | 993 | 1,083 | 785 |
Segment Reconciling Items | Other Postretirement Benefits | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Pension ongoing income (expense) and postretirement income | $ 41 | $ 71 | $ 57 |
GEOGRAPHIC AREAS - FINANCIAL _3
GEOGRAPHIC AREAS - FINANCIAL DATA (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Geographic Areas [Line Items] | |||
Net Sales | $ 35,466 | $ 34,392 | $ 32,637 |
Long-Lived Assets | 5,471 | 5,562 | 5,570 |
U.S. Plans | |||
Geographic Areas [Line Items] | |||
Net Sales | 21,262 | 20,662 | 19,665 |
Long-Lived Assets | 3,949 | 3,964 | 3,823 |
Export sales included in United States net sales | 4,187 | 4,037 | 4,000 |
Europe | |||
Geographic Areas [Line Items] | |||
Net Sales | 6,840 | 6,800 | 6,356 |
Long-Lived Assets | 537 | 566 | 628 |
Other international | |||
Geographic Areas [Line Items] | |||
Net Sales | 7,364 | 6,930 | 6,616 |
Long-Lived Assets | $ 985 | $ 1,032 | $ 1,119 |
SUPPLEMENTAL CASH FLOW INFORM_3
SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) shares in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Net payments for repositioning and other charges: | |||
Severance and exit cost payments | $ (275,000,000) | $ (382,000,000) | $ (564,000,000) |
Environmental payments | (211,000,000) | (210,000,000) | (216,000,000) |
Reimbursement receipts | 140,000,000 | 140,000,000 | 176,000,000 |
Insurance receipts for asbestos-related liabilities | 37,000,000 | 46,000,000 | 58,000,000 |
Insurance receivables settlements and write-offs | 68,000,000 | 0 | 0 |
Net payments for repositioning and other charges | (512,000,000) | (692,000,000) | (833,000,000) |
Interest paid, net of amounts capitalized | 375,000,000 | 339,000,000 | 329,000,000 |
Income taxes paid, net of refunds | 1,324,000,000 | 1,202,000,000 | 1,173,000,000 |
Non-cash investing and financing activities: | |||
Common stock contributed to savings plans | 196,000,000 | 191,000,000 | 211,000,000 |
Marketable securities contributed to non-U.S. pension plans | 0 | 81,000,000 | 93,000,000 |
Impact of Quantinuum contribution | 0 | 460,000,000 | 0 |
Noncontrolling interest non-cash contribution | 0 | 419,000,000 | 0 |
Loan in exchange for prepaid assets | 0 | 25,000,000 | 0 |
Receipt of Garrett Series B Preferred Stock | $ 0 | 577,000,000 | 0 |
Non-cash amounts related to shares of Garrett Series B Preferred Stock | 834.8 | ||
Asbestos Related Liabilities | |||
Net payments for repositioning and other charges: | |||
Insurance receivables settlements and write-offs | $ (68,000,000) | 0 | 16,000,000 |
Asbestos-related liability payments | $ (271,000,000) | $ (286,000,000) | $ (287,000,000) |