Cover Page
Cover Page | 9 Months Ended |
Sep. 30, 2023 shares | |
Entity Listings [Line Items] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document period end date | Sep. 30, 2023 |
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 current reporting status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 659,250,644 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | Q3 |
Amendment Flag | false |
Entity Central Index Key | 0000773840 |
Current Fiscal Year End Date | --12-31 |
Common stock, par value | |
Entity Listings [Line Items] | |
Title of 12(b) Security | Common Stock, par value $1 per share |
Trading Symbol | HON |
Security Exchange Name | NASDAQ |
0.000% Senior Notes due 2024 | |
Entity Listings [Line Items] | |
Title of 12(b) Security | 0.000% Senior Notes due 2024 |
Trading Symbol | HON 24A |
Security Exchange Name | NASDAQ |
3.500% Senior Notes due 2027 | |
Entity Listings [Line Items] | |
Title of 12(b) Security | 3.500% Senior Notes due 2027 |
Trading Symbol | HON 27 |
Security Exchange Name | NASDAQ |
2.250% Senior Notes due 2028 | |
Entity Listings [Line Items] | |
Title of 12(b) Security | 2.250% Senior Notes due 2028 |
Trading Symbol | HON 28A |
Security Exchange Name | NASDAQ |
0.750% Senior Notes due 2032 | |
Entity Listings [Line Items] | |
Title of 12(b) Security | 0.750% Senior Notes due 2032 |
Trading Symbol | HON 32 |
Security Exchange Name | NASDAQ |
3.750% Senior Notes due 2032 | |
Entity Listings [Line Items] | |
Title of 12(b) Security | 3.750% Senior Notes due 2032 |
Trading Symbol | HON 32A |
Security Exchange Name | NASDAQ |
4.125% Senior Notes due 2034 | |
Entity Listings [Line Items] | |
Title of 12(b) Security | 4.125% Senior Notes due 2034 |
Trading Symbol | HON 34 |
Security Exchange Name | NASDAQ |
CONSOLIDATED STATEMENT OF OPERA
CONSOLIDATED STATEMENT OF OPERATIONS (unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Net sales | $ 9,212 | $ 8,951 | $ 27,222 | $ 26,280 |
Costs, expenses and other | ||||
Costs of products and services sold | 5,670 | 5,594 | 16,794 | 16,578 |
Research and development expenses | 364 | 387 | 1,096 | 1,123 |
Selling, general and administrative expenses | 1,252 | 1,228 | 3,831 | 3,965 |
Other (income) expense | (247) | (337) | (715) | (846) |
Interest and other financial charges | 206 | 98 | 563 | 270 |
Total costs, expenses and other | 7,245 | 6,970 | 21,569 | 21,090 |
Income before taxes | 1,967 | 1,981 | 5,653 | 5,190 |
Tax expense | 452 | 432 | 1,229 | 1,244 |
Net income | 1,515 | 1,549 | 4,424 | 3,946 |
Less: Net income (loss) attributable to noncontrolling interest | 1 | (3) | 29 | (1) |
Net income attributable to Honeywell | $ 1,514 | $ 1,552 | $ 4,395 | $ 3,947 |
Earnings per share of common stock - basic (in dollars per share) | $ 2.29 | $ 2.30 | $ 6.61 | $ 5.81 |
Earnings per share of common stock - assuming dilution (in dollars per share) | $ 2.27 | $ 2.28 | $ 6.56 | $ 5.76 |
Product | ||||
Net sales | $ 6,294 | $ 6,588 | $ 19,045 | $ 19,404 |
Costs, expenses and other | ||||
Costs of products and services sold | 4,090 | 4,286 | 12,291 | 12,674 |
Service | ||||
Net sales | 2,918 | 2,363 | 8,177 | 6,876 |
Costs, expenses and other | ||||
Costs of products and services sold | $ 1,580 | $ 1,308 | $ 4,503 | $ 3,904 |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 1,515 | $ 1,549 | $ 4,424 | $ 3,946 |
Other comprehensive income (loss), net of tax | ||||
Foreign exchange translation adjustment | 59 | (423) | (76) | (399) |
Pension and other postretirement benefit adjustments | (14) | (10) | (38) | (44) |
Changes in fair value of available for sale investments | 0 | 2 | 3 | (7) |
Cash flow hedges recognized in other comprehensive income (loss) | 29 | 27 | 59 | 66 |
Less: Reclassification adjustment for gains included in net income | 17 | 23 | 30 | 38 |
Changes in fair value of cash flow hedges | 12 | 4 | 29 | 28 |
Other comprehensive income (loss), net of tax | 57 | (427) | (82) | (422) |
Comprehensive income | 1,572 | 1,122 | 4,342 | 3,524 |
Less: Comprehensive income (loss) attributable to the noncontrolling interest | (2) | (17) | 23 | (22) |
Comprehensive income attributable to Honeywell | $ 1,574 | $ 1,139 | $ 4,319 | $ 3,546 |
CONSOLIDATED BALANCE SHEET (una
CONSOLIDATED BALANCE SHEET (unaudited) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 7,770 | $ 9,627 |
Short-term investments | 164 | 483 |
Accounts receivable, less allowances of $342 and $326, respectively | 7,833 | 7,440 |
Inventories | 6,000 | 5,538 |
Other current assets | 1,553 | 1,894 |
Total current assets | 23,320 | 24,982 |
Investments and long-term receivables | 895 | 945 |
Property, plant and equipment—net | 5,486 | 5,471 |
Goodwill | 17,793 | 17,497 |
Other intangible assets—net | 3,310 | 3,222 |
Insurance recoveries for asbestos-related liabilities | 200 | 224 |
Deferred income taxes | 377 | 421 |
Other assets | 9,915 | 9,513 |
Total assets | 61,296 | 62,275 |
Current liabilities | ||
Accounts payable | 6,428 | 6,329 |
Commercial paper and other short-term borrowings | 1,933 | 2,717 |
Current maturities of long-term debt | 1,670 | 1,730 |
Accrued liabilities | 7,196 | 9,162 |
Total current liabilities | 17,227 | 19,938 |
Long-term debt | 16,683 | 15,123 |
Deferred income taxes | 2,225 | 2,093 |
Postretirement benefit obligations other than pensions | 131 | 146 |
Asbestos-related liabilities | 1,102 | 1,180 |
Other liabilities | 6,146 | 6,469 |
Redeemable noncontrolling interest | 7 | 7 |
SHAREOWNERS’ EQUITY | ||
Capital—common stock issued | 958 | 958 |
Capital - additional paid in capital | 8,905 | 8,564 |
Common stock held in treasury, at cost | (36,507) | (34,443) |
Accumulated other comprehensive loss | (3,551) | (3,475) |
Retained earnings | 47,426 | 45,093 |
Total Honeywell shareowners’ equity | 17,231 | 16,697 |
Noncontrolling interest | 544 | 622 |
Total shareowners’ equity | 17,775 | 17,319 |
Total liabilities, redeemable noncontrolling interest and shareowners’ equity | $ 61,296 | $ 62,275 |
CONSOLIDATED BALANCE SHEET (u_2
CONSOLIDATED BALANCE SHEET (unaudited) (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 342 | $ 326 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS (unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash flows from operating activities | ||
Net income | $ 4,424 | $ 3,946 |
Less: Net income (loss) attributable to noncontrolling interest | 29 | (1) |
Net income attributable to Honeywell | 4,395 | 3,947 |
Adjustments to reconcile net income attributable to Honeywell to net cash provided by (used for) operating activities | ||
Depreciation | 493 | 494 |
Amortization | 382 | 411 |
Gain on sale of non-strategic businesses and assets | 0 | (10) |
Repositioning and other charges | 331 | 714 |
Net payments for repositioning and other charges | (323) | (316) |
NARCO Buyout payment | (1,325) | 0 |
Pension and other postretirement income | (410) | (778) |
Pension and other postretirement benefit payments | (25) | (14) |
Stock compensation expense | 148 | 163 |
Deferred income taxes | 168 | 208 |
Other | (554) | 200 |
Changes in assets and liabilities, net of the effects of acquisitions and divestitures | ||
Accounts receivable | (344) | (660) |
Inventories | (448) | (390) |
Other current assets | 141 | 125 |
Accounts payable | 96 | (365) |
Accrued liabilities | (340) | (821) |
Net cash provided by operating activities | 2,385 | 2,908 |
Cash flows from investing activities | ||
Capital expenditures | (675) | (525) |
Proceeds from disposals of property, plant and equipment | 21 | 11 |
Increase in investments | (404) | (834) |
Decrease in investments | 808 | 884 |
Receipts from Garrett Motion Inc. | 0 | 409 |
Receipts (payments) from settlements of derivative contracts | 212 | 773 |
Cash paid for acquisitions, net of cash acquired | (716) | (178) |
Net cash provided by (used for) investing activities | (754) | 540 |
Cash flows from financing activities | ||
Proceeds from issuance of commercial paper and other short-term borrowings | 10,727 | 5,310 |
Payments of commercial paper and other short-term borrowings | (11,484) | (5,324) |
Proceeds from issuance of common stock | 151 | 121 |
Proceeds from issuance of long-term debt | 2,985 | 2 |
Payments of long-term debt | (1,410) | (1,818) |
Repurchases of common stock | (2,187) | (2,827) |
Cash dividends paid | (2,144) | (2,028) |
Other | (65) | (45) |
Net cash used for financing activities | (3,427) | (6,609) |
Effect of foreign exchange rate changes on cash and cash equivalents | (61) | (349) |
Net decrease in cash and cash equivalents | (1,857) | (3,510) |
Cash and cash equivalents at beginning of period | 9,627 | 10,959 |
Cash and cash equivalents at end of period | $ 7,770 | $ 7,449 |
CONSOLIDATED STATEMENT OF SHARE
CONSOLIDATED STATEMENT OF SHAREOWNERS' EQUITY (unaudited) - USD ($) shares in Millions | Total | Common stock, par value | Additional paid-in capital | Treasury stock | Retained earnings | Accumulated other comprehensive income (loss) | Noncontrolling interest |
Beginning balance at Dec. 31, 2021 | $ 8,141,000,000 | $ (30,462,000,000) | $ 42,827,000,000 | $ (2,895,000,000) | $ 673,000,000 | ||
Treasury stock, beginning balance (in shares) at Dec. 31, 2021 | (272.8) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Reacquired stock or repurchases of common stock (in shares) | (15.1) | ||||||
Reacquired stock or repurchases of common stock | $ (2,827,000,000) | ||||||
Issued for employee savings and option plans (in shares) | 2.6 | ||||||
Issued for employee savings and option plans | 146,000,000 | $ 107,000,000 | |||||
Stock-based compensation expense | 173,000,000 | ||||||
Net income attributable to Honeywell | $ 3,947,000,000 | 3,947,000,000 | |||||
Dividends on common stock | (2,007,000,000) | ||||||
Net income (loss) attributable to noncontrolling interest | 1,000,000 | (1,000,000) | |||||
Foreign exchange translation adjustment | (399,000,000) | (378,000,000) | (21,000,000) | ||||
Pension and other postretirement benefit adjustments | (44,000,000) | (44,000,000) | |||||
Changes in fair value of available for sale investments | (7,000,000) | ||||||
Changes in fair value of cash flow hedges | 28,000,000 | 28,000,000 | |||||
Dividends paid | (42,000,000) | ||||||
Contributions from noncontrolling interest holders | 14,000,000 | ||||||
Treasury stock, ending balance (in shares) at Sep. 30, 2022 | (285.3) | ||||||
Ending balance at Sep. 30, 2022 | $ 18,330,000,000 | $ 958,000,000 | 8,460,000,000 | $ (33,182,000,000) | 44,767,000,000 | (3,296,000,000) | 623,000,000 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cash dividends per share of common stock (in dollars per share) | $ 2.94 | ||||||
Beginning balance at Dec. 31, 2021 | 8,141,000,000 | $ (30,462,000,000) | 42,827,000,000 | (2,895,000,000) | 673,000,000 | ||
Treasury stock, beginning balance (in shares) at Dec. 31, 2021 | (272.8) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Reacquired stock or repurchases of common stock | $ 0 | ||||||
Treasury stock, ending balance (in shares) at Dec. 31, 2022 | (290) | ||||||
Ending balance at Dec. 31, 2022 | 17,319,000,000 | 8,564,000,000 | $ (34,443,000,000) | 45,093,000,000 | (3,475,000,000) | 622,000,000 | |
Beginning balance at Jun. 30, 2022 | 8,397,000,000 | $ (32,814,000,000) | 43,883,000,000 | (2,883,000,000) | 649,000,000 | ||
Treasury stock, beginning balance (in shares) at Jun. 30, 2022 | (283.9) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Reacquired stock or repurchases of common stock (in shares) | (2.1) | ||||||
Reacquired stock or repurchases of common stock | $ (390,000,000) | ||||||
Issued for employee savings and option plans (in shares) | 0.7 | ||||||
Issued for employee savings and option plans | 12,000,000 | $ 22,000,000 | |||||
Stock-based compensation expense | 51,000,000 | ||||||
Net income attributable to Honeywell | 1,552,000,000 | 1,552,000,000 | |||||
Dividends on common stock | (668,000,000) | ||||||
Net income (loss) attributable to noncontrolling interest | 3,000,000 | (3,000,000) | |||||
Foreign exchange translation adjustment | (423,000,000) | (409,000,000) | (14,000,000) | ||||
Pension and other postretirement benefit adjustments | (10,000,000) | (10,000,000) | |||||
Changes in fair value of available for sale investments | 2,000,000 | ||||||
Changes in fair value of cash flow hedges | 4,000,000 | 4,000,000 | |||||
Dividends paid | (9,000,000) | ||||||
Contributions from noncontrolling interest holders | 0 | ||||||
Treasury stock, ending balance (in shares) at Sep. 30, 2022 | (285.3) | ||||||
Ending balance at Sep. 30, 2022 | $ 18,330,000,000 | $ 958,000,000 | 8,460,000,000 | $ (33,182,000,000) | 44,767,000,000 | (3,296,000,000) | 623,000,000 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cash dividends per share of common stock (in dollars per share) | $ 0.98 | ||||||
Common stock, par value (in shares) | 672.3 | 957.6 | |||||
Total shareowners' equity (in shares) | 672.3 | 957.6 | |||||
Beginning balance at Dec. 31, 2022 | $ 17,319,000,000 | 8,564,000,000 | $ (34,443,000,000) | 45,093,000,000 | (3,475,000,000) | 622,000,000 | |
Treasury stock, beginning balance (in shares) at Dec. 31, 2022 | (290) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Reacquired stock or repurchases of common stock (in shares) | (11.3) | ||||||
Reacquired stock or repurchases of common stock | (100,000,000) | $ (2,187,000,000) | |||||
Issued for employee savings and option plans (in shares) | 3 | ||||||
Issued for employee savings and option plans | 193,000,000 | $ 123,000,000 | |||||
Stock-based compensation expense | 148,000,000 | ||||||
Net income attributable to Honeywell | 4,395,000,000 | 4,395,000,000 | |||||
Dividends on common stock | (2,062,000,000) | ||||||
Net income (loss) attributable to noncontrolling interest | (29,000,000) | 29,000,000 | |||||
Foreign exchange translation adjustment | (76,000,000) | (70,000,000) | (6,000,000) | ||||
Pension and other postretirement benefit adjustments | (38,000,000) | (38,000,000) | |||||
Changes in fair value of available for sale investments | 3,000,000 | ||||||
Changes in fair value of cash flow hedges | 29,000,000 | 29,000,000 | |||||
Dividends paid | (101,000,000) | ||||||
Contributions from noncontrolling interest holders | 0 | ||||||
Treasury stock, ending balance (in shares) at Sep. 30, 2023 | (298.3) | ||||||
Ending balance at Sep. 30, 2023 | $ 17,775,000,000 | $ 958,000,000 | 8,905,000,000 | $ (36,507,000,000) | 47,426,000,000 | (3,551,000,000) | 544,000,000 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cash dividends per share of common stock (in dollars per share) | $ 3.09 | ||||||
Beginning balance at Jun. 30, 2023 | 8,866,000,000 | $ (35,510,000,000) | 46,596,000,000 | (3,611,000,000) | 595,000,000 | ||
Treasury stock, beginning balance (in shares) at Jun. 30, 2023 | (293.6) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Reacquired stock or repurchases of common stock (in shares) | (5.3) | ||||||
Reacquired stock or repurchases of common stock | $ (100,000,000) | $ (1,011,000,000) | |||||
Issued for employee savings and option plans (in shares) | 0.6 | ||||||
Issued for employee savings and option plans | 0 | $ 14,000,000 | |||||
Stock-based compensation expense | 39,000,000 | ||||||
Net income attributable to Honeywell | 1,514,000,000 | 1,514,000,000 | |||||
Dividends on common stock | (684,000,000) | ||||||
Net income (loss) attributable to noncontrolling interest | (1,000,000) | 1,000,000 | |||||
Foreign exchange translation adjustment | 59,000,000 | 62,000,000 | (3,000,000) | ||||
Pension and other postretirement benefit adjustments | (14,000,000) | (14,000,000) | |||||
Changes in fair value of available for sale investments | 0 | ||||||
Changes in fair value of cash flow hedges | 12,000,000 | 12,000,000 | |||||
Dividends paid | (49,000,000) | ||||||
Contributions from noncontrolling interest holders | 0 | ||||||
Treasury stock, ending balance (in shares) at Sep. 30, 2023 | (298.3) | ||||||
Ending balance at Sep. 30, 2023 | $ 17,775,000,000 | $ 958,000,000 | $ 8,905,000,000 | $ (36,507,000,000) | $ 47,426,000,000 | $ (3,551,000,000) | $ 544,000,000 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cash dividends per share of common stock (in dollars per share) | $ 1.03 | ||||||
Common stock, par value (in shares) | 659.3 | 957.6 | |||||
Total shareowners' equity (in shares) | 659.3 | 957.6 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION In the opinion of management, the accompanying unaudited Consolidated Financial Statements reflect all adjustments necessary to present fairly the financial position, results of operations, cash flows, and shareowners' equity of Honeywell International Inc. and its consolidated subsidiaries (Honeywell or the Company) for the periods presented. The interim results of operations and cash flows should not necessarily be taken as indicative of the entire year. Honeywell reports its quarterly financial information using a calendar convention; the first, second, and third quarters are consistently reported as ending on March 31, June 30, and September 30, respectively. It is Honeywell's practice to establish actual quarterly closing dates using a predetermined fiscal calendar, which requires Honeywell's businesses to close their books on a Saturday in order to minimize the potentially disruptive effects of quarterly closing on the Company's business processes. The effects of this practice are generally not significant to reported results for any quarter and only exist within a reporting year. In the event differences in actual closing dates are material to year-over-year comparisons of quarterly or year-to-date results, Honeywell will provide appropriate disclosures. Honeywell's actual closing dates for the three and nine months ended September 30, 2023, and 2022, were September 30, 2023, and October 1, 2022, respectively. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies of the Company are set forth in Note 1 Summary of Significant Accounting Policies of Notes to Consolidated Financial Statements in the Company’s 2022 Annual Report on Form 10-K. The Company includes herein certain updates to those policies. RECLASSIFICATIONS Certain prior year amounts are reclassified to conform to the current year presentation. Historically, the Company included Company-sponsored costs and costs that relate to contracts with customers for research and development projects as a component of Cost of products and services sold on the Consolidated Statement of Operations. Effective January 1, 2023, the Company began classifying Company-sponsored costs for research and development projects as a separate financial statement line item, titled Research and development expenses, on the Consolidated Statement of Operations and recast prior period results for this reclassification. This reclassification had no impact on the Company's net income, earnings per share, cash flows, segment reporting, or financial position. The Company revised historical periods to reflect this change in presentation. SUPPLY CHAIN FINANCING The Company maintains agreements with third-party financial institutions that offer voluntary supply chain financing (SCF) programs to suppliers. The SCF programs enable suppliers, at their sole discretion, to sell their receivables to third-party financial institutions in order to receive payment on receivables earlier than the negotiated commercial terms between suppliers and the Company. Supplier sale of receivables to third-party financial institutions is on terms negotiated between the supplier and the respective third-party financial institution. The Company agrees on commercial terms for the goods and services procured from suppliers, including prices, quantities, and payment terms, which normally range between 60 and 120 days, regardless of whether the supplier elects to participate in the SCF programs. A suppliers’ voluntary participation in the SCF programs has no bearing on the Company's payment terms and the Company has no economic interest in a supplier’s decision to participate in the SCF programs. The Company agrees to pay participating third-party financial institutions the stated amount of confirmed invoices from suppliers on the original maturity dates of the invoices. Amounts outstanding related to SCF programs are included in Accounts payable in the Consolidated Balance Sheet. Accounts payable included approximately $1,076 million and $992 million as of September 30, 2023, and December 31, 2022, respectively. The impact of these programs is not material to the Company's overall liquidity. 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 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 adopted this guidance on January 1, 2023, with the exception of the rollforward that will be effective beginning January 1, 2024. The adoption of this standard does not have a material impact 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. |
ACQUISITIONS AND DIVESTITURES
ACQUISITIONS AND DIVESTITURES | 9 Months Ended |
Sep. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITIONS AND DIVESTITURES | ACQUISITIONS AND DIVESTITURES ACQUISITIONS On August 25, 2023, the Company acquired 100% of the outstanding equity interests of SCADAfence, a provider of operational technology and Internet of Things cybersecurity solutions for monitoring large scale networks, for total consideration of $52 million, net of cash acquired. The business is included in the Performance Materials and Technologies reportable business segment. The assets and liabilities acquired with SCADAfence are included in the Consolidated Balance Sheet as of September 30, 2023, including $17 million of intangible assets and $42 million of goodwill, which is not deductible for tax purposes. The purchase accounting is subject to final adjustment, primarily for the value of intangible assets, amounts allocated to goodwill, and tax balances. On June 30, 2023, the Company acquired 100% of the outstanding equity interests of Compressor Controls Corporation, a turbomachinery services and controls company based in the United States, for total cash consideration of $671 million, net of cash acquired. The business is included in the Performance Materials and Technologies reportable business segment. The assets and liabilities acquired with Compressor Controls Corporation are included in the Consolidated Balance Sheet as of September 30, 2023, including $314 million of intangible assets and $311 million allocated to goodwill, which is deductible for tax purposes. The identifiable intangible assets primarily include customer relationships amortized over an estimated life of 15 years using an excess earnings amortization method. The purchase accounting is subject to final adjustment, primarily for the valuation of intangible assets, amounts allocated to goodwill, and tax balances. 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 finalized the evaluation for the fair value of all the assets and liabilities acquired with US Digital Designs, Inc. during the first quarter of 2023. Management recorded intangible assets of $53 million and allocated $129 million to goodwill, which is deductible for tax purposes. DIVESTITURES For the nine months ended September 30, 2023, the Company completed no divestitures. |
REVENUE RECOGNITION AND CONTRAC
REVENUE RECOGNITION AND CONTRACTS WITH CUSTOMERS | 9 Months Ended |
Sep. 30, 2023 | |
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: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Aerospace Commercial Aviation Original Equipment $ 563 $ 538 $ 1,711 $ 1,543 Commercial Aviation Aftermarket 1,634 1,339 4,590 3,715 Defense and Space 1,302 1,099 3,650 3,365 Net Aerospace sales 3,499 2,976 9,951 8,623 Honeywell Building Technologies Products 894 915 2,720 2,730 Building Solutions 636 611 1,807 1,756 Net Honeywell Building Technologies sales 1,530 1,526 4,527 4,486 Performance Materials and Technologies UOP 668 633 1,856 1,677 Process Solutions 1,316 1,141 3,898 3,472 Advanced Materials 883 946 2,723 2,718 Net Performance Materials and Technologies sales 2,867 2,720 8,477 7,867 Safety and Productivity Solutions Sensing and Safety Technologies 675 709 2,071 2,165 Productivity Solutions and Services 304 435 994 1,328 Warehouse and Workflow Solutions 335 583 1,197 1,807 Net Safety and Productivity Solutions sales 1,314 1,727 4,262 5,300 Corporate and All Other 2 2 5 4 Net sales $ 9,212 $ 8,951 $ 27,222 $ 26,280 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, maintenance services (principally to aircraft operators), and sells licenses or intellectual property to other parties. 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 17 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: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Products, transferred point in time 57 % 61 % 58 % 60 % Products, transferred over time 11 13 12 14 Net product sales 68 74 70 74 Services, transferred point in time 12 7 10 8 Services, transferred over time 20 19 20 18 Net service sales 32 26 30 26 Net sales 100 % 100 % 100 % 100 % CONTRACT BALANCES The Company tracks progress on satisfying performance obligations under contracts with customers. 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 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 the Company 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: 2023 2022 Contract assets—January 1 $ 2,294 $ 2,060 Contract assets—September 30 2,418 2,239 Change in contract assets—increase (decrease) $ 124 $ 179 Contract liabilities—January 1 $ (4,583) $ (4,290) Contract liabilities—September 30 (4,081) (4,177) Change in contract liabilities—decrease (increase) $ 502 $ 113 Net change $ 626 $ 292 For the three and nine months ended September 30, 2023, the Company recognized revenue of $333 million and $1,814 million, respectively, that was previously included in the beginning balance of contract liabilities. For the three and nine months ended September 30, 2022, the Company recognized revenue of $362 million and $1,633 million, respectively, that was previously included in the beginning balance of contract liabilities. Contract assets included $2,377 million and $2,265 million of unbilled balances under long-term contracts as of September 30, 2023, and December 31, 2022, 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 include 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: September 30, 2023 Aerospace $ 13,749 Honeywell Building Technologies 7,105 Performance Materials and Technologies 8,331 Safety and Productivity Solutions 2,164 Corporate and All Other 1 3 Total performance obligations $ 31,352 1 The remaining performance obligations within Corporate and All Other relate to the Quantinuum business. Performance obligations recognized as of September 30, 2023, 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 59% and 41%, 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 | 9 Months Ended |
Sep. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
REPOSITIONING AND OTHER CHARGES | REPOSITIONING AND OTHER CHARGES A summary of net repositioning and other charges follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Severance $ 35 $ 43 $ 121 $ 75 Asset impairments 16 5 37 153 Exit costs 36 20 98 78 Reserve adjustments (23) (2) (40) (54) Total net repositioning charges 64 66 216 252 Asbestos-related charges, net of insurance and reimbursements 24 29 79 115 Probable and reasonably estimable environmental liabilities, net of reimbursements 6 3 40 19 Other charges (6) 2 (4) 328 Total net repositioning and other charges $ 88 $ 100 $ 331 $ 714 The following table summarizes the pre-tax distribution of total net repositioning and other charges by classification in the Consolidated Statement of Operations: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Cost of products and services sold $ 57 $ 85 $ 200 $ 429 Selling, general and administrative expenses 31 24 122 237 Other (income) expense — (9) 9 48 Total net repositioning and other charges $ 88 $ 100 $ 331 $ 714 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 17 Segment Financial Data: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Aerospace $ 10 $ (2) $ 21 $ 34 Honeywell Building Technologies 9 10 40 47 Performance Materials and Technologies 22 15 45 262 Safety and Productivity Solutions 23 55 94 197 Corporate and All Other 24 22 131 174 Total net repositioning and other charges $ 88 $ 100 $ 331 $ 714 NET REPOSITIONING CHARGES In the three months ended September 30, 2023, the Company recognized gross repositioning charges totaling $87 million, including severance costs of $35 million related to workforce reductions of 1,567 manufacturing and administrative positions primarily in the Company's Honeywell Building Technologies and Safety and Productivity Solutions reportable business segments. The workforce reductions were related to productivity and ongoing functional transformation initiatives. The repositioning charges included asset impairments of $16 million primarily related to the write-down of certain assets within the Company's Safety and Productivity Solutions reportable business segment and corporate function. The repositioning charges also included exit costs of $36 million related to current period costs incurred for closure obligations associated with site transitions primarily in the Company's Performance Materials and Technologies and Safety and Productivity Solutions reportable business segments. Also, $23 million of previously established reserves, primarily for severance, were returned to income due to higher than expected voluntary exits and adjustments to the scope of previously announced repositioning actions. In the three months ended September 30, 2022, the Company recognized gross repositioning charges totaling $68 million, including severance costs of $43 million related to workforce reductions of 1,276 manufacturing and administrative positions primarily in the Company's Safety and Productivity Solutions reportable business segment. The workforce reductions were related to the Company's productivity and ongoing functional transformation initiatives. The repositioning charges included asset impairments of $5 million related to the write-down of certain manufacturing equipment. The repositioning charges also included exit costs of $20 million related to current period costs incurred for closure obligations associated with site transitions in the Company's Safety and Productivity Solutions and Aerospace reportable business segments. In the nine months ended September 30, 2023, the Company recognized gross repositioning charges totaling $256 million, including severance costs of $121 million related to workforce reductions of 4,128 manufacturing and administrative positions primarily in the Company's Safety and Productivity Solutions and Honeywell Building Technologies reportable business segments. The workforce reductions were primarily related to productivity and ongoing functional transformation initiatives. The repositioning charges included asset impairments of $37 million related to the write-down of certain assets within the Company's Safety and Productivity Solutions reportable business segment. The repositioning charges also included exit costs of $98 million related to current period costs incurred for closure obligations associated with site transitions across all of the Company's reportable business segments and corporate function. Also, $40 million of previously established reserves, primarily for severance, were returned to income due to higher than expected voluntary exits and adjustments to the scope of previously announced repositioning actions. In the nine months ended September 30, 2022, the Company recognized gross repositioning charges totaling $306 million, including asset impairments of $153 million for the write-down of certain manufacturing 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 $78 million primarily related to current period exit costs incurred for new and previously approved repositioning projects and closure obligations associated with site transitions in the Company's Performance Materials and Technologies and Aerospace reportable business segments. The repositioning charges also included severance costs of $75 million related to workforce reductions of 2,940 manufacturing and administrative positions across the Company's reportable business segments. The workforce reductions related to cost savings actions taken in connection with the Company's productivity and ongoing functional transformation initiatives and to site transitions to more cost-effective locations. Also, $54 million of previously established reserves, primarily for severance, were returned to income due to higher than expected voluntary exits and adjustments to the scope of previously announced repositioning actions. The following table summarizes the status of the Company's total repositioning reserves: Severance Asset Exit Total Balance at December 31, 2022 $ 235 $ — $ 74 $ 309 Charges 121 37 98 256 Usage—cash (138) — (80) (218) Usage—noncash — (35) — (35) Foreign currency translation 5 — 16 21 Adjustments (31) (2) (7) (40) Balance at September 30, 2023 $ 192 $ — $ 101 $ 293 Certain repositioning projects will recognize exit costs in future periods when the actual liability is incurred. Such exit costs incurred in the nine months ended September 30, 2023, and 2022, were $40 million and $46 million, respectively. OTHER CHARGES During the nine months ended September 30, 2023, the Company recorded a fair value adjustment, within Asbestos-related charges, net of insurance and reimbursements in the table above and Other (income) expense on the Consolidated Statement of Operations, related to HWI Net Sale Proceeds (as defined in Note 11 Fair Value Measurements) and reduced the estimate by $11 million. See Note 11 Fair Value Measurements and Note 14 Commitments and Contingencies for further discussion. During the three months ended September 30, 2022, the Company recognized a net reduction of Other charges previously recognized of $16 million. The Other charges included costs incurred related to the Wind down of operations in Russia. The reduction of Other charges primarily related to a favorable foreign exchange revaluation on an intercompany loan with a Russian affiliate, in addition to the recovery of outstanding accounts receivable previously reserved against, recorded to Other (income) expense and Selling, general and administrative expense on the Consolidated Statement of Operations, respectively. This was partially offset by the recognition of an additional expense for called guarantees recorded to Other (income) expense on the Consolidated Statement of Operations. During the nine months ended September 30, 2022, the Company recognized $291 million of Other charges. The Other charges included costs incurred related to the initial suspension (the Suspension) and Wind down of businesses 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 included costs recorded in Cost of products sold, Selling, general and administrative expenses, or Other (income) expense on the Consolidated Statement of Operations. For the nine months ended September 30, 2022, Cost of products and services sold included $60 million primarily related to inventory reserves and the write-down of other assets, Selling, general and administrative included $183 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 included $48 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. For the nine months ended September 30, 2022, the Other charges did not include a $2 million tax valuation allowance recorded to Tax expense on the Consolidated Statement of Operations, directly attributable to the Company's Wind down of businesses and operations in Russia. 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 the wind down of 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 14 Commitments and Contingencies for a discussion of the recognition and measurement of estimate for contingencies. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXESThe effective tax rate was higher than the U.S. federal statutory rate of 21% but decreased during 2023 compared to 2022 resulting from increased benefits of taxes on non-U.S. earnings and lower repositioning related expenses, partially offset by other accrued taxes. |
INVENTORIES
INVENTORIES | 9 Months Ended |
Sep. 30, 2023 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES September 30, 2023 December 31, 2022 Raw materials $ 1,485 $ 1,407 Work in process 1,248 1,049 Finished products 3,267 3,082 Total Inventories $ 6,000 $ 5,538 |
LONG-TERM DEBT AND CREDIT AGREE
LONG-TERM DEBT AND CREDIT AGREEMENTS | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT AND CREDIT AGREEMENTS | LONG-TERM DEBT AND CREDIT AGREEMENTS September 30, 2023 December 31, 2022 1.30% Euro notes due 2023 $ — $ 1,334 3.35% notes due 2023 300 300 0.00% Euro notes due 2024 527 534 2.30% notes due 2024 750 750 4.85% notes due 2024 400 400 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 3.50% Euro notes due 2027 685 — 4.95% notes due 2028 500 500 2.25% Euro notes due 2028 790 800 4.25% notes due 2029 750 — 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 527 534 3.75% Euro notes due 2032 527 — 5.00% notes due 2033 1,100 1,100 4.50% notes due 2034 1,000 — 4.125% Euro notes due 2034 1,054 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), 7.4% weighted average interest rate maturing at various dates through 2029 228 265 Fair value of hedging instruments (323) (287) Debt issuance costs (251) (233) Total Long-term debt and current related maturities 18,353 16,853 Less: Current maturities of long-term debt 1,670 1,730 Total Long-term debt $ 16,683 $ 15,123 On May 17, 2023, the Company issued $750 million 4.25% Senior Notes due 2029 and $1.0 billion 4.50% Senior Notes due 2034 (collectively, the 2023 USD Notes). The Company may redeem the 2023 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 $1.8 billion, offset by $20 million in discount and closing costs related to the offering. On May 17, 2023, the Company issued €650 million 3.50% Senior Notes due 2027 and €500 million 3.75% Senior Notes due 2032 (collectively, the 2023 Euro Notes). The Company may redeem the 2023 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 $1.2 billion, offset by $12 million in discount and closing costs related to the offering. The 2023 USD Notes and 2023 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 issuances for the repayment of commercial paper and general corporate purposes. On February 22, 2023, the Company repaid its 1.30% Euro notes due 2023. On March 20, 2023, the Company entered into a $1.5 billion 364-day credit agreement (the 364-Day Credit Agreement) and a $4.0 billion amended and restated five-year credit agreement (the 5-Year Credit Agreement). The 364-Day Credit Agreement replaced the $1.5 billion 364-day credit agreement dated as of March 24, 2022, which was terminated in accordance with its terms effective March 20, 2023. Amounts borrowed under the 364-Day Credit Agreement are required to be repaid no later than March 18, 2024, 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 18, 2025, or (ii) the 364-Day Credit Agreement is terminated earlier pursuant to its terms. 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 24, 2022. 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 and 5-Year Credit Agreement are maintained for general corporate purposes. As of September 30, 2023, there were no outstanding borrowings under the 364-Day Credit Agreement or the 5-Year Credit Agreement. |
LEASES
LEASES | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
LEASES | LEASES The Company's operating and finance lease portfolio is described in Note 10 Leases of Notes to Consolidated Financial Statements in the Company's 2022 Annual Report on Form 10-K. Supplemental cash flow information related to leases was as follows: Nine Months Ended September 30, 2023 2022 Right-of-use assets obtained in exchange for lease obligations Operating leases $ 176 $ 86 Finance leases 31 43 Supplemental balance sheet information related to leases was as follows: September 30, 2023 December 31, 2022 Operating leases Other assets $ 917 $ 881 Accrued liabilities 193 192 Other liabilities 822 775 Total operating lease liabilities 1,015 967 Financing leases Property, plant and equipment 393 383 Accumulated depreciation (187) (161) Property, plant and equipment—net 206 222 Current maturities of long-term debt 84 77 Long-term debt 112 145 Total financing lease liabilities $ 196 $ 222 |
LEASES | LEASES The Company's operating and finance lease portfolio is described in Note 10 Leases of Notes to Consolidated Financial Statements in the Company's 2022 Annual Report on Form 10-K. Supplemental cash flow information related to leases was as follows: Nine Months Ended September 30, 2023 2022 Right-of-use assets obtained in exchange for lease obligations Operating leases $ 176 $ 86 Finance leases 31 43 Supplemental balance sheet information related to leases was as follows: September 30, 2023 December 31, 2022 Operating leases Other assets $ 917 $ 881 Accrued liabilities 193 192 Other liabilities 822 775 Total operating lease liabilities 1,015 967 Financing leases Property, plant and equipment 393 383 Accumulated depreciation (187) (161) Property, plant and equipment—net 206 222 Current maturities of long-term debt 84 77 Long-term debt 112 145 Total financing lease liabilities $ 196 $ 222 |
DERIVATIVE INSTRUMENTS AND HEDG
DERIVATIVE INSTRUMENTS AND HEDGING TRANSACTIONS | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS AND HEDGING TRANSACTIONS | DERIVATIVE INSTRUMENTS AND HEDGING TRANSACTIONS Honeywell's foreign currency, interest rate, credit, and commodity price risk management policies are described in Note 11 Derivative Instruments and Hedging Transactions of Notes to Consolidated Financial Statements in the Company's 2022 Annual Report on Form 10-K. 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 as of September 30, 2023, and December 31, 2022: Notional Fair Value Asset Fair Value (Liability) September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022 Derivatives in fair value hedging relationships Interest rate swap agreements $ 4,967 $ 4,984 $ — $ 16 $ (323) $ (303) Derivatives in cash flow hedging relationships Foreign currency exchange contracts 705 866 47 19 — (5) Commodity contracts 7 9 — — — (1) Derivatives in net investment hedging relationships Cross currency swap agreements 4,189 3,189 44 90 — — Total derivatives designated as hedging instruments 9,868 9,048 91 125 (323) (309) Derivatives not designated as hedging instruments Foreign currency exchange contracts 9,256 9,679 7 74 (22) (3) Total derivatives at fair value $ 19,124 $ 18,727 $ 98 $ 199 $ (345) $ (312) 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 $5,880 million and $3,836 million as of September 30, 2023, and December 31, 2022, respectively. The following table sets forth the amounts recorded in the Consolidated Balance Sheet related to cumulative basis adjustments for fair value hedges: Carrying Amount of Hedged Item Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of Hedged Item September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022 Long-term debt $ 4,644 $ 4,696 $ (323) $ (287) The following tables summarize the location and impact to the Consolidated Statement of Operations related to derivative instruments: Three Months Ended September 30, 2023 Net Sales Cost of Cost of Selling, Other Interest and Other $ 9,212 $ 4,090 $ 1,580 $ 1,252 $ (247) $ 206 Gain or (loss) on cash flow hedges Foreign currency exchange contracts Amount reclassified from accumulated other comprehensive income (loss) into income 5 10 4 2 — — Gain or (loss) on fair value hedges Interest rate swap agreements Hedged items — — — — — 38 Derivatives designated as hedges — — — — — (38) Gain or (loss) on derivatives not designated as hedging instruments Foreign currency exchange contracts — — — — 212 — Three Months Ended September 30, 2022 Net Sales Cost of Cost of Selling, Other Interest and Other $ 8,951 $ 4,286 $ 1,308 $ 1,228 $ (337) $ 98 Gain or (loss) on cash flow hedges Foreign currency exchange contracts Amount reclassified from accumulated other comprehensive income (loss) into income 4 20 6 (2) — — Gain or (loss) on fair value hedges Interest rate swap agreements Hedged items — — — — — 186 Derivatives designated as hedges — — — — — (186) Gain or (loss) on net investment hedges Foreign currency exchange contracts Amount excluded from effectiveness testing recognized in earnings using an amortization approach — — — — — 4 Gain or (loss) on derivatives not designated as hedging instruments Foreign currency exchange contracts — — — — 402 — Nine Months Ended September 30, 2023 Net Sales Cost of Cost of Selling, Other Interest and Other $ 27,222 $ 12,291 $ 4,503 $ 3,831 $ (715) $ 563 Gain or (loss) on cash flow hedges Foreign currency exchange contracts Amount reclassified from accumulated other comprehensive income (loss) into income 8 19 7 6 — — Gain or (loss) on fair value hedges Interest rate swap agreements Hedged items — — — — — 36 Derivatives designated as hedges — — — — — (36) Gain or (loss) on derivatives not designated as hedging instruments Foreign currency exchange contracts — — — — 63 — Nine Months Ended September 30, 2022 Net Sales Cost of Cost of Selling, Other Interest and Other $ 26,280 $ 12,674 $ 3,904 $ 3,965 $ (846) $ 270 Gain or (loss) on cash flow hedges Foreign currency exchange contracts Amount reclassified from accumulated other comprehensive income (loss) into income 7 32 9 (2) — — Gain or (loss) on fair value hedges Interest rate swap agreements Hedged items — — — — — 354 Derivatives designated as hedges — — — — — (354) Gain or (loss) on net investment hedges Foreign currency exchange contracts Amount excluded from effectiveness testing recognized in earnings using an amortization approach — — — — — 11 Gain or (loss) on derivatives not designated as hedging instruments Foreign currency exchange contracts — — — — 749 — The following table summarizes the amounts of gain or (loss) on net investment hedges recognized in Accumulated other comprehensive income (loss): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Euro-denominated long-term debt $ 157 $ 207 $ 71 $ 474 Euro-denominated commercial paper 68 41 25 94 Cross currency swap agreements 69 97 (6) 177 Foreign currency exchange contracts — 31 — 62 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 2023 | |
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: September 30, 2023 December 31, 2022 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Foreign currency exchange contracts $ — $ 54 $ — $ 54 $ — $ 93 $ — $ 93 Available for sale investments 60 213 — 273 87 559 — 646 Interest rate swap agreements — — — — — 16 — 16 Cross currency swap agreements — 44 — 44 — 90 — 90 Investments in equity securities 33 — — 33 22 32 — 54 Right to HWI Net Sale Proceeds — — 9 9 — — 295 295 Total assets $ 93 $ 311 $ 9 $ 413 $ 109 $ 790 $ 295 $ 1,194 Liabilities Foreign currency exchange contracts $ — $ 22 $ — $ 22 $ — $ 8 $ — $ 8 Interest rate swap agreements — 323 — 323 — 303 — 303 Commodity contracts — — — — — 1 — 1 Total liabilities $ — $ 345 $ — $ 345 $ — $ 312 $ — $ 312 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, time deposits, and corporate debt securities that are designated as available for sale. These investments 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 securities and investments in equity securities. These investments 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 approximates fair value. As part of the NARCO Buyout (see Note 14 Commitments and Contingencies for definition), Honeywell holds a right to proceeds from the definitive sale agreement pursuant to which HarbisonWalker International Holdings, Inc. (HWI), the reorganized and renamed entity that emerged from the NARCO Bankruptcy, was acquired by an affiliate of Platinum Equity, LLC (HWI Sale). The right to these proceeds is considered a financial instrument. The significant input for the valuation of this right is unobservable, and as such, is classified within level 3. The HWI Sale closed on February 16, 2023. During the nine months ended September 30, 2023, Honeywell received $275 million of proceeds from the HWI Sale (HWI Net Sale Proceeds), of which $256 million was received during the first quarter of 2023 and $19 million during the second quarter of 2023. Additionally, during the second quarter of 2023, the Company recorded a fair value adjustment for the HWI Net Sale Proceeds and reduced the estimate by $11 million. The fair value of the remaining HWI Net Sale Proceeds as of September 30, 2023, represents contingent consideration to be paid in future periods if certain conditions under the definitive sale agreement for the HWI Sale are met. 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: Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 Balance at beginning of period $ 9 $ 295 Receipt of HWI Net Sale Proceeds — (275) Fair value adjustment of HWI Net Sale Proceeds — (11) Balance at end of period $ 9 $ 9 The following table sets forth the Company’s financial assets and liabilities that were not carried at fair value: September 30, 2023 December 31, 2022 Carrying Fair Carrying Fair Assets Long-term receivables $ 231 $ 176 $ 229 $ 183 Liabilities Long-term debt and related current maturities $ 18,353 $ 16,755 $ 16,853 $ 15,856 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. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The details of the earnings per share calculations for the three and nine months ended September 30, 2023, and 2022, are as follows (shares in millions): Three Months Ended September 30, Nine Months Ended September 30, Basic 2023 2022 2023 2022 Net income attributable to Honeywell $ 1,514 $ 1,552 $ 4,395 $ 3,947 Weighted average shares outstanding 662.4 674.1 665.2 679.3 Earnings per share of common stock—basic $ 2.29 $ 2.30 $ 6.61 $ 5.81 Three Months Ended September 30, Nine Months Ended September 30, Assuming Dilution 2023 2022 2023 2022 Net income attributable to Honeywell $ 1,514 $ 1,552 $ 4,395 $ 3,947 Average shares Weighted average shares outstanding 662.4 674.1 665.2 679.3 Dilutive securities issuable—stock plans 4.6 5.5 5.2 6.0 Total weighted average diluted shares outstanding 667.0 679.6 670.4 685.3 Earnings per share of common stock—assuming dilution $ 2.27 $ 2.28 $ 6.56 $ 5.76 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. For the three and nine months ended September 30, 2023, the weighted average number of stock options excluded from the computations were 4.6 million and 4.4 million, respectively. For the three and nine months ended September 30, 2022, the weighted average number of stock options excluded from the computations were 5.5 million and 3.6 million, respectively. As of September 30, 2023, and 2022, the total shares outstanding were 659.3 million and 672.3 million, respectively, and as of September 30, 2023, and 2022, total shares issued were 957.6 million. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 9 Months Ended |
Sep. 30, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BY COMPONENT Foreign Pension Changes in Fair Changes in Total Balance at December 31, 2022 $ (2,832) $ (648) $ (7) $ 12 $ (3,475) Other comprehensive income (loss) before reclassifications (70) — 3 59 (8) Amounts reclassified from accumulated other comprehensive income (loss) — (38) — (30) (68) Net current period other comprehensive income (loss) (70) (38) 3 29 (76) Balance at September 30, 2023 $ (2,902) $ (686) $ (4) $ 41 $ (3,551) Foreign Pension Changes in Fair Changes in Total Balance at December 31, 2021 $ (2,478) $ (415) $ 1 $ (3) $ (2,895) Other comprehensive income (loss) before reclassifications (375) — (7) 66 (316) Amounts reclassified from accumulated other comprehensive income (loss) (3) (44) — (38) (85) Net current period other comprehensive income (loss) (378) (44) (7) 28 (401) Balance at September 30, 2022 $ (2,856) $ (459) $ (6) $ 25 $ (3,296) |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES ENVIRONMENTAL MATTERS Honeywell's environmental matters are described in Note 19 Commitments and Contingencies of Notes to Consolidated Financial Statements in the Company's 2022 Annual Report on Form 10-K. The following table summarizes information concerning the Company's recorded liabilities for environmental costs: Balance at December 31, 2022 $ 615 Accruals for environmental matters deemed probable and reasonably estimable 176 Environmental liability payments (109) Balance at September 30, 2023 $ 682 Environmental liabilities are included in the following balance sheet accounts: September 30, 2023 December 31, 2022 Accrued liabilities $ 222 $ 222 Other liabilities 460 393 Total environmental liabilities $ 682 $ 615 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 Technologies, Inc. (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 $105 million in the nine months ended September 30, 2023, 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 the nine months ended September 30, 2023, was $136 million. As of September 30, 2023, Other current assets and Other assets included $140 million and $505 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 North American Refractories Company (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 Bendix NARCO Total December 31, 2022 $ 1,291 $ 1,325 $ 2,616 Accrual for update to estimated liability 33 4 37 Change in estimated cost of future claims 26 — 26 Asbestos-related liability payments (128) (4) (132) NARCO Buyout — (1,325) (1,325) September 30, 2023 $ 1,222 $ — $ 1,222 INSURANCE RECOVERIES FOR ASBESTOS-RELATED LIABILITIES Bendix NARCO Total December 31, 2022 $ 130 $ 135 $ 265 Probable insurance recoveries related to estimated liability 7 — 7 Insurance receipts for asbestos-related liabilities (10) (21) (31) September 30, 2023 $ 127 $ 114 $ 241 NARCO and Bendix asbestos-related balances are included in the following balance sheet accounts: September 30, 2023 December 31, 2022 Other current assets $ 41 $ 41 Insurance recoveries for asbestos-related liabilities 200 224 Total insurance recoveries for asbestos-related liabilities $ 241 $ 265 Accrued liabilities $ 120 $ 1,436 Asbestos-related liabilities 1,102 1,180 Total asbestos-related liabilities 1 $ 1,222 $ 2,616 1 As of December 31, 2022, Accrued liabilities included the Buyout Amount, as described and defined below, agreed upon between Honeywell and the Trust. The Buyout Amount does not represent an asbestos-related liability. 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. NARCO ceased manufacturing asbestos containing 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 and the NARCO Trust Distribution Procedures set forth the structure and operating rules of the Trust, and established Honeywell’s evergreen funding obligations. On November 18, 2022, Honeywell entered into a definitive agreement with the Trust and certain other parties, which was subsequently amended on November 20, 2022 (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 (the Honeywell Obligations) (the NARCO Buyout). In accordance with the Amended Buyout Agreement, the economic rights of the Trust in respect of the net proceeds from the HWI Sale (as defined in Note 11 Fair Value Measurements) inured to the benefit of Honeywell. On December 8, 2022, the Bankruptcy Court issued an order that (A) approved the Amended Buyout Agreement, and (B) declared that the Channeling Injunction will remain in full force and effect without modification, dissolution, or termination. On December 14, 2022, HWI (as defined in Note 11 Fair Value Measurements) entered into a definitive sale agreement for the sale of HWI to an affiliate of Platinum Equity, LLC subject to the terms set forth in the agreement. On January 30, 2023, the Company paid the Buyout Amount to the Trust, the parties closed the transactions contemplated in the Amended Buyout Agreement, 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. On February 16, 2023, the HWI Sale closed. Pursuant to the Amended Buyout Agreement, during the nine months ended September 30, 2023, Honeywell received $275 million of proceeds from the HWI sale. See Note 11 Fair Value Measurements for further information on the related proceeds and remaining amount under the Amended Buyout Agreement. For additional information, see the Company's Annual Report on Form 10-K, filed with the SEC on February 10, 2023, under Note 19 Commitments and Contingencies. 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: Nine Months Ended Years Ended 2023 2022 2021 Claims unresolved at the beginning of period 5,608 6,401 6,242 Claims filed 1,335 2,014 2,611 Claims resolved (1,297) (2,807) (2,452) Claims unresolved at the end of period 5,646 5,608 6,401 September 30, December 31, Disease Distribution of Unresolved Claims 2023 2022 2021 Mesothelioma and other cancer claims 3,396 3,283 3,760 Nonmalignant claims 2,250 2,325 2,641 Total claims 5,646 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) Mesothelioma and other cancer claims $ 59,200 $ 56,000 $ 61,500 $ 50,200 $ 55,300 Nonmalignant claims $ 520 $ 400 $ 550 $ 3,900 $ 4,700 While resolution values moved higher and lower over the years for Bendix-related asbestos claims, such resolution values may continue to increase over the near term in light of recent asbestos litigation trends. 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. 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 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. 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 14. 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. |
PENSION BENEFITS
PENSION BENEFITS | 9 Months Ended |
Sep. 30, 2023 | |
Retirement Benefits [Abstract] | |
PENSION BENEFITS | PENSION BENEFITS Net periodic pension benefit (income) cost for the Company's significant pension plans included the following components: U.S. Plans Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Service cost $ 8 $ 21 $ 22 $ 64 Interest cost 162 95 484 285 Expected return on plan assets (277) (320) (833) (961) Amortization of prior service (credit) cost (12) (11) (32) (32) Net periodic benefit income $ (119) $ (215) $ (359) $ (644) Non-U.S. Plans Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Service cost $ 2 $ 5 $ 8 $ 15 Interest cost 51 25 150 79 Expected return on plan assets (70) (67) (206) (213) Net periodic benefit income $ (17) $ (37) $ (48) $ (119) During the three and nine months ended September 30, 2023, the Company repurchased $100 million of outstanding Honeywell shares of common stock from the Honeywell U.S. Pension Plan Master Trust. The Company completed no repurchases of outstanding Honeywell shares of common stock from the Honeywell U.S. Pension Plan Master Trust during 2022. |
OTHER (INCOME) EXPENSE
OTHER (INCOME) EXPENSE | 9 Months Ended |
Sep. 30, 2023 | |
Other Income and Expenses [Abstract] | |
OTHER (INCOME) EXPENSE | OTHER (INCOME) EXPENSE Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Interest income $ (89) $ (37) $ (241) $ (77) Pension ongoing income—non-service (148) (279) (440) (847) Other postretirement income—non-service (6) (10) (19) (30) Equity income of affiliated companies (12) (19) (61) (43) Gain on sale of non-strategic businesses and assets — (10) — (10) Foreign exchange — 12 20 32 Expense related to UOP Matters — — — 50 Expense (benefit) related to Russia-Ukraine Conflict — (9) (2) 48 Net expense related to the NARCO Buyout and HWI — — 11 — Other, net 8 15 17 31 Total Other (income) expense $ (247) $ (337) $ (715) $ (846) For more information on the Net expense related to the NARCO Buyout and HWI Sale, see Notes 5 Repositioning and Other Charges, 11 Fair Value Measurements, and 14 Commitments and Contingencies. |
SEGMENT FINANCIAL DATA
SEGMENT FINANCIAL DATA | 9 Months Ended |
Sep. 30, 2023 | |
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. In October 2023, the Company announced a realignment, expected to be effective in the first quarter of 2024, of its business units comprising its Performance Materials and Technologies and Safety and Productivity Solutions reportable business segments by forming two new reportable business segments: Industrial Automation and Energy and Sustainability Solutions. Industrial Automation will include Sensing and Safety Technologies, Productivity Solutions and Services, and Warehouse and Workflow Solutions, which are currently included in Safety and Productivity Solutions, in addition to Process Solutions, which is currently included in Performance Materials and Technologies. Energy and Sustainability Solutions will include UOP and Advanced Materials, which are currently included in Performance Materials and Technologies. Further, as part of the realignment, the Company will rename its Aerospace and Honeywell Building Technologies reportable business segments to Aerospace Technologies and Building Automation, respectively. Following the realignment, the Company’s reportable business segments will be Aerospace Technologies, Industrial Automation, Building Automation, and Energy and Sustainability Solutions. The realignment will not impact the Company’s historical consolidated financial position, results of operations, or cash flows. The Company expects to report its financial performance based on this realignment effective with the first quarter of 2024. Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Net sales Aerospace Products $ 1,824 $ 1,586 $ 5,294 $ 4,621 Services 1,675 1,390 4,657 4,002 Net Aerospace sales 3,499 2,976 9,951 8,623 Honeywell Building Technologies Products 1,172 1,169 3,463 3,430 Services 358 357 1,064 1,056 Net Honeywell Building Technologies sales 1,530 1,526 4,527 4,486 Performance Materials and Technologies Products 2,183 2,228 6,609 6,394 Services 684 492 1,868 1,473 Net Performance Materials and Technologies sales 2,867 2,720 8,477 7,867 Safety and Productivity Solutions Products 1,115 1,605 3,679 4,959 Services 199 122 583 341 Net Safety and Productivity Solutions sales 1,314 1,727 4,262 5,300 Corporate and All Other Services 2 2 5 4 Net Corporate and All Other sales 2 2 5 4 Net sales $ 9,212 $ 8,951 $ 27,222 $ 26,280 Segment profit Aerospace $ 963 $ 818 $ 2,714 $ 2,338 Honeywell Building Technologies 386 368 1,146 1,064 Performance Materials and Technologies 633 615 1,821 1,726 Safety and Productivity Solutions 190 271 689 755 Corporate and All Other (90) (120) (289) (298) Total segment profit 2,082 1,952 6,081 5,585 Interest and other financial charges (206) (98) (563) (270) Stock compensation expense 1 (39) (50) (148) (163) Pension ongoing income 2 131 247 391 748 Other postretirement income 2 6 10 19 30 Repositioning and other charges 3 (88) (100) (331) (714) Other 4 81 20 204 (26) Income before taxes $ 1,967 $ 1,981 $ 5,653 $ 5,190 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. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTSSee Note 17 Segment Financial Data for information related to the Company’s planned realignment of its reportable business segments announced on October 10, 2023, and expected to be effective in the first quarter of 2024. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) Attributable to Parent | $ 1,514 | $ 1,552 | $ 4,395 | $ 3,947 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Reclassifications | Certain prior year amounts are reclassified to conform to the current year presentation. Historically, the Company included Company-sponsored costs and costs that relate to contracts with customers for research and development projects as a component of Cost of products and services sold on the Consolidated Statement of Operations. Effective January 1, 2023, the Company began classifying Company-sponsored costs for research and development projects as a separate financial statement line item, titled Research and development expenses, on the Consolidated Statement of Operations and recast prior period results for this reclassification. This reclassification had no impact on the Company's net income, earnings per share, cash flows, segment reporting, or financial position. The Company revised historical periods to reflect this change in presentation. |
Supply Chain Financing | The Company maintains agreements with third-party financial institutions that offer voluntary supply chain financing (SCF) programs to suppliers. The SCF programs enable suppliers, at their sole discretion, to sell their receivables to third-party financial institutions in order to receive payment on receivables earlier than the negotiated commercial terms between suppliers and the Company. Supplier sale of receivables to third-party financial institutions is on terms negotiated between the supplier and the respective third-party financial institution. The Company agrees on commercial terms for the goods and services procured from suppliers, including prices, quantities, and payment terms, which normally range between 60 and 120 days, regardless of whether the supplier elects to participate in the SCF programs. A suppliers’ voluntary participation in the SCF programs has no bearing on the Company's payment terms and the Company has no economic interest in a supplier’s decision to participate in the SCF programs. The Company agrees to pay participating third-party financial institutions the stated amount of confirmed invoices from suppliers on the original maturity dates of the invoices. |
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 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 adopted this guidance on January 1, 2023, with the exception of the rollforward that will be effective beginning January 1, 2024. The adoption of this standard does not have a material impact 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. |
Revenue Recognition and Contracts with Customers | 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, maintenance services (principally to aircraft operators), and sells licenses or intellectual property to other parties. 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 17 Segment Financial Data. 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 include 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. Performance obligations recognized as of September 30, 2023, 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 59% and 41%, 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. |
REVENUE RECOGNITION AND CONTR_2
REVENUE RECOGNITION AND CONTRACTS WITH CUSTOMERS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | See the following disaggregated revenue table and related discussions by reportable business segment for details: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Aerospace Commercial Aviation Original Equipment $ 563 $ 538 $ 1,711 $ 1,543 Commercial Aviation Aftermarket 1,634 1,339 4,590 3,715 Defense and Space 1,302 1,099 3,650 3,365 Net Aerospace sales 3,499 2,976 9,951 8,623 Honeywell Building Technologies Products 894 915 2,720 2,730 Building Solutions 636 611 1,807 1,756 Net Honeywell Building Technologies sales 1,530 1,526 4,527 4,486 Performance Materials and Technologies UOP 668 633 1,856 1,677 Process Solutions 1,316 1,141 3,898 3,472 Advanced Materials 883 946 2,723 2,718 Net Performance Materials and Technologies sales 2,867 2,720 8,477 7,867 Safety and Productivity Solutions Sensing and Safety Technologies 675 709 2,071 2,165 Productivity Solutions and Services 304 435 994 1,328 Warehouse and Workflow Solutions 335 583 1,197 1,807 Net Safety and Productivity Solutions sales 1,314 1,727 4,262 5,300 Corporate and All Other 2 2 5 4 Net sales $ 9,212 $ 8,951 $ 27,222 $ 26,280 Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Products, transferred point in time 57 % 61 % 58 % 60 % Products, transferred over time 11 13 12 14 Net product sales 68 74 70 74 Services, transferred point in time 12 7 10 8 Services, transferred over time 20 19 20 18 Net service sales 32 26 30 26 Net sales 100 % 100 % 100 % 100 % |
Contract with Customer Asset and Liability | The following table summarizes the Company's contract assets and liabilities balances: 2023 2022 Contract assets—January 1 $ 2,294 $ 2,060 Contract assets—September 30 2,418 2,239 Change in contract assets—increase (decrease) $ 124 $ 179 Contract liabilities—January 1 $ (4,583) $ (4,290) Contract liabilities—September 30 (4,081) (4,177) Change in contract liabilities—decrease (increase) $ 502 $ 113 Net change $ 626 $ 292 |
Revenue Remaining Performance Obligation Expected Timing of Satisfaction | The following table outlines the Company's remaining performance obligations disaggregated by reportable business segment: September 30, 2023 Aerospace $ 13,749 Honeywell Building Technologies 7,105 Performance Materials and Technologies 8,331 Safety and Productivity Solutions 2,164 Corporate and All Other 1 3 Total performance obligations $ 31,352 1 The remaining performance obligations within Corporate and All Other relate to the Quantinuum business. |
REPOSITIONING AND OTHER CHARG_2
REPOSITIONING AND OTHER CHARGES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Repositioning and Other Charges | A summary of net repositioning and other charges follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Severance $ 35 $ 43 $ 121 $ 75 Asset impairments 16 5 37 153 Exit costs 36 20 98 78 Reserve adjustments (23) (2) (40) (54) Total net repositioning charges 64 66 216 252 Asbestos-related charges, net of insurance and reimbursements 24 29 79 115 Probable and reasonably estimable environmental liabilities, net of reimbursements 6 3 40 19 Other charges (6) 2 (4) 328 Total net repositioning and other charges $ 88 $ 100 $ 331 $ 714 |
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: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Cost of products and services sold $ 57 $ 85 $ 200 $ 429 Selling, general and administrative expenses 31 24 122 237 Other (income) expense — (9) 9 48 Total net repositioning and other charges $ 88 $ 100 $ 331 $ 714 |
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 17 Segment Financial Data: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Aerospace $ 10 $ (2) $ 21 $ 34 Honeywell Building Technologies 9 10 40 47 Performance Materials and Technologies 22 15 45 262 Safety and Productivity Solutions 23 55 94 197 Corporate and All Other 24 22 131 174 Total net repositioning and other charges $ 88 $ 100 $ 331 $ 714 |
Total Repositioning Reserves | The following table summarizes the status of the Company's total repositioning reserves: Severance Asset Exit Total Balance at December 31, 2022 $ 235 $ — $ 74 $ 309 Charges 121 37 98 256 Usage—cash (138) — (80) (218) Usage—noncash — (35) — (35) Foreign currency translation 5 — 16 21 Adjustments (31) (2) (7) (40) Balance at September 30, 2023 $ 192 $ — $ 101 $ 293 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | September 30, 2023 December 31, 2022 Raw materials $ 1,485 $ 1,407 Work in process 1,248 1,049 Finished products 3,267 3,082 Total Inventories $ 6,000 $ 5,538 |
LONG-TERM DEBT AND CREDIT AGR_2
LONG-TERM DEBT AND CREDIT AGREEMENTS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | September 30, 2023 December 31, 2022 1.30% Euro notes due 2023 $ — $ 1,334 3.35% notes due 2023 300 300 0.00% Euro notes due 2024 527 534 2.30% notes due 2024 750 750 4.85% notes due 2024 400 400 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 3.50% Euro notes due 2027 685 — 4.95% notes due 2028 500 500 2.25% Euro notes due 2028 790 800 4.25% notes due 2029 750 — 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 527 534 3.75% Euro notes due 2032 527 — 5.00% notes due 2033 1,100 1,100 4.50% notes due 2034 1,000 — 4.125% Euro notes due 2034 1,054 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), 7.4% weighted average interest rate maturing at various dates through 2029 228 265 Fair value of hedging instruments (323) (287) Debt issuance costs (251) (233) Total Long-term debt and current related maturities 18,353 16,853 Less: Current maturities of long-term debt 1,670 1,730 Total Long-term debt $ 16,683 $ 15,123 |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Lease Cost Information | Supplemental cash flow information related to leases was as follows: Nine Months Ended September 30, 2023 2022 Right-of-use assets obtained in exchange for lease obligations Operating leases $ 176 $ 86 Finance leases 31 43 |
Supplemental Balance Sheet Information | Supplemental balance sheet information related to leases was as follows: September 30, 2023 December 31, 2022 Operating leases Other assets $ 917 $ 881 Accrued liabilities 193 192 Other liabilities 822 775 Total operating lease liabilities 1,015 967 Financing leases Property, plant and equipment 393 383 Accumulated depreciation (187) (161) Property, plant and equipment—net 206 222 Current maturities of long-term debt 84 77 Long-term debt 112 145 Total financing lease liabilities $ 196 $ 222 |
DERIVATIVE INSTRUMENTS AND HE_2
DERIVATIVE INSTRUMENTS AND HEDGING TRANSACTIONS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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 as of September 30, 2023, and December 31, 2022: Notional Fair Value Asset Fair Value (Liability) September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022 Derivatives in fair value hedging relationships Interest rate swap agreements $ 4,967 $ 4,984 $ — $ 16 $ (323) $ (303) Derivatives in cash flow hedging relationships Foreign currency exchange contracts 705 866 47 19 — (5) Commodity contracts 7 9 — — — (1) Derivatives in net investment hedging relationships Cross currency swap agreements 4,189 3,189 44 90 — — Total derivatives designated as hedging instruments 9,868 9,048 91 125 (323) (309) Derivatives not designated as hedging instruments Foreign currency exchange contracts 9,256 9,679 7 74 (22) (3) Total derivatives at fair value $ 19,124 $ 18,727 $ 98 $ 199 $ (345) $ (312) |
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: Carrying Amount of Hedged Item Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of Hedged Item September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022 Long-term debt $ 4,644 $ 4,696 $ (323) $ (287) |
Derivative Instruments, Gain (Loss) | The following tables summarize the location and impact to the Consolidated Statement of Operations related to derivative instruments: Three Months Ended September 30, 2023 Net Sales Cost of Cost of Selling, Other Interest and Other $ 9,212 $ 4,090 $ 1,580 $ 1,252 $ (247) $ 206 Gain or (loss) on cash flow hedges Foreign currency exchange contracts Amount reclassified from accumulated other comprehensive income (loss) into income 5 10 4 2 — — Gain or (loss) on fair value hedges Interest rate swap agreements Hedged items — — — — — 38 Derivatives designated as hedges — — — — — (38) Gain or (loss) on derivatives not designated as hedging instruments Foreign currency exchange contracts — — — — 212 — Three Months Ended September 30, 2022 Net Sales Cost of Cost of Selling, Other Interest and Other $ 8,951 $ 4,286 $ 1,308 $ 1,228 $ (337) $ 98 Gain or (loss) on cash flow hedges Foreign currency exchange contracts Amount reclassified from accumulated other comprehensive income (loss) into income 4 20 6 (2) — — Gain or (loss) on fair value hedges Interest rate swap agreements Hedged items — — — — — 186 Derivatives designated as hedges — — — — — (186) Gain or (loss) on net investment hedges Foreign currency exchange contracts Amount excluded from effectiveness testing recognized in earnings using an amortization approach — — — — — 4 Gain or (loss) on derivatives not designated as hedging instruments Foreign currency exchange contracts — — — — 402 — Nine Months Ended September 30, 2023 Net Sales Cost of Cost of Selling, Other Interest and Other $ 27,222 $ 12,291 $ 4,503 $ 3,831 $ (715) $ 563 Gain or (loss) on cash flow hedges Foreign currency exchange contracts Amount reclassified from accumulated other comprehensive income (loss) into income 8 19 7 6 — — Gain or (loss) on fair value hedges Interest rate swap agreements Hedged items — — — — — 36 Derivatives designated as hedges — — — — — (36) Gain or (loss) on derivatives not designated as hedging instruments Foreign currency exchange contracts — — — — 63 — Nine Months Ended September 30, 2022 Net Sales Cost of Cost of Selling, Other Interest and Other $ 26,280 $ 12,674 $ 3,904 $ 3,965 $ (846) $ 270 Gain or (loss) on cash flow hedges Foreign currency exchange contracts Amount reclassified from accumulated other comprehensive income (loss) into income 7 32 9 (2) — — Gain or (loss) on fair value hedges Interest rate swap agreements Hedged items — — — — — 354 Derivatives designated as hedges — — — — — (354) Gain or (loss) on net investment hedges Foreign currency exchange contracts Amount excluded from effectiveness testing recognized in earnings using an amortization approach — — — — — 11 Gain or (loss) on derivatives not designated as hedging instruments Foreign currency exchange contracts — — — — 749 — |
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): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Euro-denominated long-term debt $ 157 $ 207 $ 71 $ 474 Euro-denominated commercial paper 68 41 25 94 Cross currency swap agreements 69 97 (6) 177 Foreign currency exchange contracts — 31 — 62 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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: September 30, 2023 December 31, 2022 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Foreign currency exchange contracts $ — $ 54 $ — $ 54 $ — $ 93 $ — $ 93 Available for sale investments 60 213 — 273 87 559 — 646 Interest rate swap agreements — — — — — 16 — 16 Cross currency swap agreements — 44 — 44 — 90 — 90 Investments in equity securities 33 — — 33 22 32 — 54 Right to HWI Net Sale Proceeds — — 9 9 — — 295 295 Total assets $ 93 $ 311 $ 9 $ 413 $ 109 $ 790 $ 295 $ 1,194 Liabilities Foreign currency exchange contracts $ — $ 22 $ — $ 22 $ — $ 8 $ — $ 8 Interest rate swap agreements — 323 — 323 — 303 — 303 Commodity contracts — — — — — 1 — 1 Total liabilities $ — $ 345 $ — $ 345 $ — $ 312 $ — $ 312 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: Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 Balance at beginning of period $ 9 $ 295 Receipt of HWI Net Sale Proceeds — (275) Fair value adjustment of HWI Net Sale Proceeds — (11) Balance at end of period $ 9 $ 9 |
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: September 30, 2023 December 31, 2022 Carrying Fair Carrying Fair Assets Long-term receivables $ 231 $ 176 $ 229 $ 183 Liabilities Long-term debt and related current maturities $ 18,353 $ 16,755 $ 16,853 $ 15,856 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share Basic | The details of the earnings per share calculations for the three and nine months ended September 30, 2023, and 2022, are as follows (shares in millions): Three Months Ended September 30, Nine Months Ended September 30, Basic 2023 2022 2023 2022 Net income attributable to Honeywell $ 1,514 $ 1,552 $ 4,395 $ 3,947 Weighted average shares outstanding 662.4 674.1 665.2 679.3 Earnings per share of common stock—basic $ 2.29 $ 2.30 $ 6.61 $ 5.81 |
Earnings Per Share Diluted | Three Months Ended September 30, Nine Months Ended September 30, Assuming Dilution 2023 2022 2023 2022 Net income attributable to Honeywell $ 1,514 $ 1,552 $ 4,395 $ 3,947 Average shares Weighted average shares outstanding 662.4 674.1 665.2 679.3 Dilutive securities issuable—stock plans 4.6 5.5 5.2 6.0 Total weighted average diluted shares outstanding 667.0 679.6 670.4 685.3 Earnings per share of common stock—assuming dilution $ 2.27 $ 2.28 $ 6.56 $ 5.76 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Changes in Accumulated Other Comprehensive Income by Component | Foreign Pension Changes in Fair Changes in Total Balance at December 31, 2022 $ (2,832) $ (648) $ (7) $ 12 $ (3,475) Other comprehensive income (loss) before reclassifications (70) — 3 59 (8) Amounts reclassified from accumulated other comprehensive income (loss) — (38) — (30) (68) Net current period other comprehensive income (loss) (70) (38) 3 29 (76) Balance at September 30, 2023 $ (2,902) $ (686) $ (4) $ 41 $ (3,551) Foreign Pension Changes in Fair Changes in Total Balance at December 31, 2021 $ (2,478) $ (415) $ 1 $ (3) $ (2,895) Other comprehensive income (loss) before reclassifications (375) — (7) 66 (316) Amounts reclassified from accumulated other comprehensive income (loss) (3) (44) — (38) (85) Net current period other comprehensive income (loss) (378) (44) (7) 28 (401) Balance at September 30, 2022 $ (2,856) $ (459) $ (6) $ 25 $ (3,296) |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Loss Contingency | The following table summarizes information concerning the Company's recorded liabilities for environmental costs: Balance at December 31, 2022 $ 615 Accruals for environmental matters deemed probable and reasonably estimable 176 Environmental liability payments (109) Balance at September 30, 2023 $ 682 |
Environmental Liabilities are Included in the Following Balance Sheet Accounts | Environmental liabilities are included in the following balance sheet accounts: September 30, 2023 December 31, 2022 Accrued liabilities $ 222 $ 222 Other liabilities 460 393 Total environmental liabilities $ 682 $ 615 |
Asbestos Related Liabilities | Bendix NARCO Total December 31, 2022 $ 1,291 $ 1,325 $ 2,616 Accrual for update to estimated liability 33 4 37 Change in estimated cost of future claims 26 — 26 Asbestos-related liability payments (128) (4) (132) NARCO Buyout — (1,325) (1,325) September 30, 2023 $ 1,222 $ — $ 1,222 |
Insurance Recoveries for Asbestos Related Liabilities | Bendix NARCO Total December 31, 2022 $ 130 $ 135 $ 265 Probable insurance recoveries related to estimated liability 7 — 7 Insurance receipts for asbestos-related liabilities (10) (21) (31) September 30, 2023 $ 127 $ 114 $ 241 |
NARCO and Bendix Asbestos Related Balances are Included in the Following Balance Sheet Accounts | NARCO and Bendix asbestos-related balances are included in the following balance sheet accounts: September 30, 2023 December 31, 2022 Other current assets $ 41 $ 41 Insurance recoveries for asbestos-related liabilities 200 224 Total insurance recoveries for asbestos-related liabilities $ 241 $ 265 Accrued liabilities $ 120 $ 1,436 Asbestos-related liabilities 1,102 1,180 Total asbestos-related liabilities 1 $ 1,222 $ 2,616 1 As of December 31, 2022, Accrued liabilities included the Buyout Amount, as described and defined below, agreed upon between Honeywell and the Trust. The Buyout Amount does not represent an asbestos-related liability. |
Bendix Related Asbestos Claims Activity | The following tables present information regarding Bendix-related asbestos claims activity: Nine Months Ended Years Ended 2023 2022 2021 Claims unresolved at the beginning of period 5,608 6,401 6,242 Claims filed 1,335 2,014 2,611 Claims resolved (1,297) (2,807) (2,452) Claims unresolved at the end of period 5,646 5,608 6,401 |
Disease Distribution of Claims | September 30, December 31, Disease Distribution of Unresolved Claims 2023 2022 2021 Mesothelioma and other cancer claims 3,396 3,283 3,760 Nonmalignant claims 2,250 2,325 2,641 Total claims 5,646 5,608 6,401 |
Average Resolution Values per Asbestos Claim | 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) Mesothelioma and other cancer claims $ 59,200 $ 56,000 $ 61,500 $ 50,200 $ 55,300 Nonmalignant claims $ 520 $ 400 $ 550 $ 3,900 $ 4,700 |
PENSION BENEFITS (Tables)
PENSION BENEFITS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Retirement Benefits [Abstract] | |
Defined Benefit Plans Disclosure | Net periodic pension benefit (income) cost for the Company's significant pension plans included the following components: U.S. Plans Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Service cost $ 8 $ 21 $ 22 $ 64 Interest cost 162 95 484 285 Expected return on plan assets (277) (320) (833) (961) Amortization of prior service (credit) cost (12) (11) (32) (32) Net periodic benefit income $ (119) $ (215) $ (359) $ (644) Non-U.S. Plans Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Service cost $ 2 $ 5 $ 8 $ 15 Interest cost 51 25 150 79 Expected return on plan assets (70) (67) (206) (213) Net periodic benefit income $ (17) $ (37) $ (48) $ (119) |
OTHER (INCOME) EXPENSE (Tables)
OTHER (INCOME) EXPENSE (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Other Income and Expenses [Abstract] | |
Other (income) expense | Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Interest income $ (89) $ (37) $ (241) $ (77) Pension ongoing income—non-service (148) (279) (440) (847) Other postretirement income—non-service (6) (10) (19) (30) Equity income of affiliated companies (12) (19) (61) (43) Gain on sale of non-strategic businesses and assets — (10) — (10) Foreign exchange — 12 20 32 Expense related to UOP Matters — — — 50 Expense (benefit) related to Russia-Ukraine Conflict — (9) (2) 48 Net expense related to the NARCO Buyout and HWI — — 11 — Other, net 8 15 17 31 Total Other (income) expense $ (247) $ (337) $ (715) $ (846) |
SEGMENT FINANCIAL DATA (Tables)
SEGMENT FINANCIAL DATA (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Financial Data | Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Net sales Aerospace Products $ 1,824 $ 1,586 $ 5,294 $ 4,621 Services 1,675 1,390 4,657 4,002 Net Aerospace sales 3,499 2,976 9,951 8,623 Honeywell Building Technologies Products 1,172 1,169 3,463 3,430 Services 358 357 1,064 1,056 Net Honeywell Building Technologies sales 1,530 1,526 4,527 4,486 Performance Materials and Technologies Products 2,183 2,228 6,609 6,394 Services 684 492 1,868 1,473 Net Performance Materials and Technologies sales 2,867 2,720 8,477 7,867 Safety and Productivity Solutions Products 1,115 1,605 3,679 4,959 Services 199 122 583 341 Net Safety and Productivity Solutions sales 1,314 1,727 4,262 5,300 Corporate and All Other Services 2 2 5 4 Net Corporate and All Other sales 2 2 5 4 Net sales $ 9,212 $ 8,951 $ 27,222 $ 26,280 Segment profit Aerospace $ 963 $ 818 $ 2,714 $ 2,338 Honeywell Building Technologies 386 368 1,146 1,064 Performance Materials and Technologies 633 615 1,821 1,726 Safety and Productivity Solutions 190 271 689 755 Corporate and All Other (90) (120) (289) (298) Total segment profit 2,082 1,952 6,081 5,585 Interest and other financial charges (206) (98) (563) (270) Stock compensation expense 1 (39) (50) (148) (163) Pension ongoing income 2 131 247 391 748 Other postretirement income 2 6 10 19 30 Repositioning and other charges 3 (88) (100) (331) (714) Other 4 81 20 204 (26) Income before taxes $ 1,967 $ 1,981 $ 5,653 $ 5,190 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. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Past Due [Line Items] | ||
Accounts payable | $ 6,428 | $ 6,329 |
Suppliers Utilizing Third Party Services Sold Through To Financial Institutions | ||
Financing Receivable, Past Due [Line Items] | ||
Accounts payable | $ 1,076 | $ 992 |
ACQUISITIONS AND DIVESTITURES (
ACQUISITIONS AND DIVESTITURES (Details) - USD ($) | 9 Months Ended | ||||||
Aug. 25, 2023 | Jun. 30, 2023 | Sep. 02, 2022 | Jan. 18, 2022 | Sep. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | |
Business Acquisition [Line Items] | |||||||
Goodwill | $ 17,793,000,000 | $ 17,497,000,000 | |||||
Pre-tax gain on sale of business | $ 0 | ||||||
Disposed of by sale | Russian Domiciled Entities | |||||||
Business Acquisition [Line Items] | |||||||
Pre-tax gain on sale of business | $ 10,000,000 | ||||||
Proceeds from divestiture of businesses | $ 1,000,000 | ||||||
Customer Relationships | |||||||
Business Acquisition [Line Items] | |||||||
Intangible asset, useful life | 15 years | ||||||
SCADAfence | |||||||
Business Acquisition [Line Items] | |||||||
Percentage acquired | 100% | ||||||
Consideration amount | $ 52,000,000 | ||||||
Intangible assets acquired | $ 17,000,000 | ||||||
Goodwill | 42,000,000 | ||||||
Compressor Controls Corporation | |||||||
Business Acquisition [Line Items] | |||||||
Percentage acquired | 100% | ||||||
Consideration amount | $ 671,000,000 | ||||||
Intangible assets acquired | 314,000,000 | ||||||
Goodwill | $ 311,000,000 | ||||||
US Digital Design, Inc. | |||||||
Business Acquisition [Line Items] | |||||||
Percentage acquired | 100% | ||||||
Consideration amount | $ 186,000,000 | ||||||
Intangible assets acquired | $ 53,000,000 | ||||||
Goodwill | $ 129,000,000 |
REVENUE RECOGNITION AND CONTR_3
REVENUE RECOGNITION AND CONTRACTS WITH CUSTOMERS - Disaggregation (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 9,212 | $ 8,951 | $ 27,222 | $ 26,280 |
Net sales - percentage | 100% | 100% | 100% | 100% |
Corporate and All Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 2 | $ 2 | $ 5 | $ 4 |
Product | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 6,294 | $ 6,588 | $ 19,045 | $ 19,404 |
Net sales - percentage | 68% | 74% | 70% | 74% |
Product | Transferred point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales - percentage | 57% | 61% | 58% | 60% |
Product | Transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales - percentage | 11% | 13% | 12% | 14% |
Service | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 2,918 | $ 2,363 | $ 8,177 | $ 6,876 |
Net sales - percentage | 32% | 26% | 30% | 26% |
Service | Corporate and All Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 2 | $ 2 | $ 5 | $ 4 |
Service | Transferred point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales - percentage | 12% | 7% | 10% | 8% |
Service | Transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales - percentage | 20% | 19% | 20% | 18% |
Aerospace | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 3,499 | $ 2,976 | $ 9,951 | $ 8,623 |
Aerospace | Commercial Aviation Original Equipment | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 563 | 538 | 1,711 | 1,543 |
Aerospace | Commercial Aviation Aftermarket | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,634 | 1,339 | 4,590 | 3,715 |
Aerospace | Defense and Space | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,302 | 1,099 | 3,650 | 3,365 |
Aerospace | Product | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,824 | 1,586 | 5,294 | 4,621 |
Aerospace | Service | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,675 | 1,390 | 4,657 | 4,002 |
Honeywell Building Technologies | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,530 | 1,526 | 4,527 | 4,486 |
Honeywell Building Technologies | Products | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 894 | 915 | 2,720 | 2,730 |
Honeywell Building Technologies | Building Solutions | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 636 | 611 | 1,807 | 1,756 |
Honeywell Building Technologies | Product | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,172 | 1,169 | 3,463 | 3,430 |
Honeywell Building Technologies | Service | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 358 | 357 | 1,064 | 1,056 |
Performance Materials and Technologies | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 2,867 | 2,720 | 8,477 | 7,867 |
Performance Materials and Technologies | UOP | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 668 | 633 | 1,856 | 1,677 |
Performance Materials and Technologies | Process Solutions | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,316 | 1,141 | 3,898 | 3,472 |
Performance Materials and Technologies | Advanced Materials | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 883 | 946 | 2,723 | 2,718 |
Performance Materials and Technologies | Product | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 2,183 | 2,228 | 6,609 | 6,394 |
Performance Materials and Technologies | Service | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 684 | 492 | 1,868 | 1,473 |
Safety and Productivity Solutions | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,314 | 1,727 | 4,262 | 5,300 |
Safety and Productivity Solutions | Sensing and Safety Technologies | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 675 | 709 | 2,071 | 2,165 |
Safety and Productivity Solutions | Productivity Solutions and Services | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 304 | 435 | 994 | 1,328 |
Safety and Productivity Solutions | Warehouse and Workflow Solutions | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 335 | 583 | 1,197 | 1,807 |
Safety and Productivity Solutions | Product | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,115 | 1,605 | 3,679 | 4,959 |
Safety and Productivity Solutions | Service | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 199 | $ 122 | $ 583 | $ 341 |
REVENUE RECOGNITION AND CONTR_4
REVENUE RECOGNITION AND CONTRACTS WITH CUSTOMERS - Contract Assets and Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Contract With Customer, Asset And Liability [Roll Forward] | |||||
Contract assets - beginning balance | $ 2,294 | $ 2,060 | |||
Contract assets - ending balance | $ 2,418 | $ 2,239 | 2,418 | 2,239 | |
Change in contract assets—increase (decrease) | 124 | 179 | |||
Contract liabilities - beginning balance | (4,583) | (4,290) | |||
Contract liabilities - ending balance | (4,081) | (4,177) | (4,081) | (4,177) | |
Change in contract liabilities—decrease (increase) | 502 | 113 | |||
Net change | 626 | 292 | |||
Contract liability, revenue recognized | 333 | $ 362 | 1,814 | $ 1,633 | |
Unbilled balances | $ 2,377 | $ 2,377 | $ 2,265 |
REVENUE RECOGNITION AND CONTR_5
REVENUE RECOGNITION AND CONTRACTS WITH CUSTOMERS - Performance Obligation (Details) $ in Millions | Sep. 30, 2023 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation, amount | $ 31,352 |
Within One Year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation, percentage | 59% |
Greater Than One Year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation, percentage | 41% |
Corporate and All Other | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation, amount | $ 3 |
Aerospace | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation, amount | 13,749 |
Honeywell Building Technologies | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation, amount | 7,105 |
Performance Materials and Technologies | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation, amount | 8,331 |
Safety and Productivity Solutions | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation, amount | $ 2,164 |
REPOSITIONING AND OTHER CHARG_3
REPOSITIONING AND OTHER CHARGES - Repositioning and Other Charges (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||||
Total net repositioning charges | $ 64 | $ 66 | $ 216 | $ 252 |
Asbestos-related charges, net of insurance and reimbursements | 24 | 29 | 79 | 115 |
Probable and reasonably estimable environmental liabilities, net of reimbursements | 6 | 3 | 40 | 19 |
Other charges | (6) | 2 | (4) | 328 |
Total net repositioning and other charges | 88 | 100 | 331 | 714 |
Severance | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total net repositioning charges | 35 | 43 | 121 | 75 |
Asset impairments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total net repositioning charges | 16 | 5 | 37 | 153 |
Exit costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total net repositioning charges | 36 | 20 | 98 | 78 |
Reserve adjustments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total net repositioning charges | $ (23) | $ (2) | $ (40) | $ (54) |
REPOSITIONING AND OTHER CHARG_4
REPOSITIONING AND OTHER CHARGES - Pretax Distribution of Total Net Repositioning (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pretax Distribution Of Total Net Repositioning And Other Charges By Income Statement Classification [Line Items] | ||||
Total net repositioning and other charges | $ 88 | $ 100 | $ 331 | $ 714 |
Cost of products and services sold | ||||
Pretax Distribution Of Total Net Repositioning And Other Charges By Income Statement Classification [Line Items] | ||||
Total net repositioning and other charges | 57 | 85 | 200 | 429 |
Selling, general and administrative expenses | ||||
Pretax Distribution Of Total Net Repositioning And Other Charges By Income Statement Classification [Line Items] | ||||
Total net repositioning and other charges | 31 | 24 | 122 | 237 |
Other (income) expense | ||||
Pretax Distribution Of Total Net Repositioning And Other Charges By Income Statement Classification [Line Items] | ||||
Total net repositioning and other charges | $ 0 | $ (9) | $ 9 | $ 48 |
REPOSITIONING AND OTHER CHARG_5
REPOSITIONING AND OTHER CHARGES - Pretax Impact of Total net Repositioning and Other Charges by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pretax Impact Of Total Net Repositioning And Other Charges By Segment [Line Items] | ||||
Total net repositioning and other charges | $ 88 | $ 100 | $ 331 | $ 714 |
Corporate and All Other | ||||
Pretax Impact Of Total Net Repositioning And Other Charges By Segment [Line Items] | ||||
Total net repositioning and other charges | 24 | 22 | 131 | 174 |
Aerospace | Operating Segments | ||||
Pretax Impact Of Total Net Repositioning And Other Charges By Segment [Line Items] | ||||
Total net repositioning and other charges | 10 | (2) | 21 | 34 |
Honeywell Building Technologies | Operating Segments | ||||
Pretax Impact Of Total Net Repositioning And Other Charges By Segment [Line Items] | ||||
Total net repositioning and other charges | 9 | 10 | 40 | 47 |
Performance Materials and Technologies | Operating Segments | ||||
Pretax Impact Of Total Net Repositioning And Other Charges By Segment [Line Items] | ||||
Total net repositioning and other charges | 22 | 15 | 45 | 262 |
Safety and Productivity Solutions | Operating Segments | ||||
Pretax Impact Of Total Net Repositioning And Other Charges By Segment [Line Items] | ||||
Total net repositioning and other charges | $ 23 | $ 55 | $ 94 | $ 197 |
REPOSITIONING AND OTHER CHARG_6
REPOSITIONING AND OTHER CHARGES - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 USD ($) position | Jun. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) position | Sep. 30, 2023 USD ($) position | Sep. 30, 2022 USD ($) position | |
Restructuring Cost and Reserve [Line Items] | |||||
Charges | $ 87 | $ 68 | $ 256 | $ 306 | |
Restructuring costs (returned to income) | $ 64 | $ 66 | $ 216 | $ 252 | |
Number of employees severed (in employees) | position | 1,567 | 1,276 | 4,128,000,000 | 2,940 | |
Decrease in fair value of cash proceeds from sale | $ 11 | $ 11 | |||
Other charges | $ (247) | $ (337) | (715) | $ (846) | |
Russia and Ukraine Conflict | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Other charges | 16 | 291 | |||
Cost of products and services sold | Russia and Ukraine Conflict | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Other charges | 60 | ||||
Other (income) expense | Russia and Ukraine Conflict | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Other charges | 48 | ||||
Tax valuation allowance adjustment | 2 | ||||
Severance | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Charges | 121 | ||||
Restructuring costs (returned to income) | 35 | 43 | 121 | 75 | |
Asset impairments | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Charges | 37 | ||||
Restructuring costs (returned to income) | 16 | 5 | 37 | 153 | |
Exit costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Charges | 98 | ||||
Restructuring costs (returned to income) | 36 | 20 | 98 | 78 | |
Restructuring costs incurred to date | $ 40 | $ 46 | $ 40 | 46 | |
Contract adjustments, impairment of other assets and employee severance | Selling, general and administrative expenses | Russia and Ukraine Conflict | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Other charges | $ 183 |
REPOSITIONING AND OTHER CHARG_7
REPOSITIONING AND OTHER CHARGES - Repositioning Reserves (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Restructuring Reserve [Roll Forward] | ||||
Balance at beginning of period | $ 309 | |||
Charges | $ 87 | $ 68 | 256 | $ 306 |
Usage—cash | (218) | |||
Usage—noncash | (35) | |||
Foreign currency translation | 21 | |||
Adjustments | (40) | |||
Balance at end of period | 293 | 293 | ||
Severance Costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance at beginning of period | 235 | |||
Charges | 121 | |||
Usage—cash | (138) | |||
Usage—noncash | 0 | |||
Foreign currency translation | 5 | |||
Adjustments | (31) | |||
Balance at end of period | 192 | 192 | ||
Asset impairments | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance at beginning of period | 0 | |||
Charges | 37 | |||
Usage—cash | 0 | |||
Usage—noncash | (35) | |||
Foreign currency translation | 0 | |||
Adjustments | (2) | |||
Balance at end of period | 0 | 0 | ||
Exit costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance at beginning of period | 74 | |||
Charges | 98 | |||
Usage—cash | (80) | |||
Usage—noncash | 0 | |||
Foreign currency translation | 16 | |||
Adjustments | (7) | |||
Balance at end of period | $ 101 | $ 101 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 1,485 | $ 1,407 |
Work in process | 1,248 | 1,049 |
Finished products | 3,267 | 3,082 |
Total Inventories | $ 6,000 | $ 5,538 |
LONG-TERM DEBT AND CREDIT AGR_3
LONG-TERM DEBT AND CREDIT AGREEMENTS - Schedule (Details) € in Millions, $ in Millions | Sep. 30, 2023 USD ($) | May 17, 2023 USD ($) | May 17, 2023 EUR (€) | Feb. 22, 2023 | Dec. 31, 2022 USD ($) |
Debt Instrument [Line Items] | |||||
Debt issuance costs | $ (251) | $ (233) | |||
Total Long-term debt and current related maturities | 18,353 | 16,853 | |||
Less: Current maturities of long-term debt | 1,670 | 1,730 | |||
Total Long-term debt | 16,683 | 15,123 | |||
Fair Value Hedging | Derivatives in fair value hedging relationships | |||||
Debt Instrument [Line Items] | |||||
Fair value of hedging instruments | (323) | (287) | |||
1.30% Euro notes due 2023 | |||||
Debt Instrument [Line Items] | |||||
Senior notes | $ 0 | 1,334 | |||
Interest rate | 1.30% | 1.30% | |||
3.35% notes due 2023 | |||||
Debt Instrument [Line Items] | |||||
Senior notes | $ 300 | 300 | |||
Interest rate | 3.35% | ||||
0.00% Euro notes due 2024 | |||||
Debt Instrument [Line Items] | |||||
Senior notes | $ 527 | 534 | |||
Interest rate | 0% | ||||
2.30% notes due 2024 | |||||
Debt Instrument [Line Items] | |||||
Senior notes | $ 750 | 750 | |||
Interest rate | 2.30% | ||||
4.85% notes due 2024 | |||||
Debt Instrument [Line Items] | |||||
Senior notes | $ 400 | 400 | |||
Interest rate | 4.85% | ||||
1.35% notes due 2025 | |||||
Debt Instrument [Line Items] | |||||
Senior notes | $ 1,250 | 1,250 | |||
Interest rate | 1.35% | ||||
2.50% notes due 2026 | |||||
Debt Instrument [Line Items] | |||||
Senior notes | $ 1,500 | 1,500 | |||
Interest rate | 2.50% | ||||
1.10% notes due 2027 | |||||
Debt Instrument [Line Items] | |||||
Senior notes | $ 1,000 | 1,000 | |||
Interest rate | 1.10% | ||||
3.50% Euro notes due 2027 | |||||
Debt Instrument [Line Items] | |||||
Senior notes | $ 685 | € 650 | 0 | ||
Interest rate | 3.50% | 3.50% | 3.50% | ||
4.95% notes due 2028 | |||||
Debt Instrument [Line Items] | |||||
Senior notes | $ 500 | 500 | |||
Interest rate | 4.95% | ||||
2.25% Euro notes due 2028 | |||||
Debt Instrument [Line Items] | |||||
Senior notes | $ 790 | 800 | |||
Interest rate | 2.25% | ||||
4.25% notes due 2029 | |||||
Debt Instrument [Line Items] | |||||
Senior notes | $ 750 | $ 750 | 0 | ||
Interest rate | 4.25% | 4.25% | 4.25% | ||
2.70% notes due 2029 | |||||
Debt Instrument [Line Items] | |||||
Senior notes | $ 750 | 750 | |||
Interest rate | 2.70% | ||||
1.95% notes due 2030 | |||||
Debt Instrument [Line Items] | |||||
Senior notes | $ 1,000 | 1,000 | |||
Interest rate | 1.95% | ||||
1.75% notes due 2031 | |||||
Debt Instrument [Line Items] | |||||
Senior notes | $ 1,500 | 1,500 | |||
Interest rate | 1.75% | ||||
0.75% Euro notes due 2032 | |||||
Debt Instrument [Line Items] | |||||
Senior notes | $ 527 | 534 | |||
Interest rate | 0.75% | ||||
3.75% Euro notes due 2032 | |||||
Debt Instrument [Line Items] | |||||
Senior notes | $ 527 | € 500 | 0 | ||
Interest rate | 3.75% | 3.75% | 3.75% | ||
5.00% notes due 2033 | |||||
Debt Instrument [Line Items] | |||||
Senior notes | $ 1,100 | 1,100 | |||
Interest rate | 5% | ||||
4.50% notes due 2034 | |||||
Debt Instrument [Line Items] | |||||
Senior notes | $ 1,000 | $ 1,000 | 0 | ||
Interest rate | 4.50% | 4.50% | 4.50% | ||
4.125% Senior Notes due 2034 | |||||
Debt Instrument [Line Items] | |||||
Senior notes | $ 1,054 | 1,067 | |||
Interest rate | 4.125% | ||||
5.70% notes due 2036 | |||||
Debt Instrument [Line Items] | |||||
Senior notes | $ 441 | 441 | |||
Interest rate | 5.70% | ||||
5.70% notes due 2037 | |||||
Debt Instrument [Line Items] | |||||
Senior notes | $ 462 | 462 | |||
Interest rate | 5.70% | ||||
5.375% notes due 2041 | |||||
Debt Instrument [Line Items] | |||||
Senior notes | $ 417 | 417 | |||
Interest rate | 5.375% | ||||
3.812% notes due 2047 | |||||
Debt Instrument [Line Items] | |||||
Senior notes | $ 445 | 445 | |||
Interest rate | 3.812% | ||||
2.80% notes due 2050 | |||||
Debt Instrument [Line Items] | |||||
Senior notes | $ 750 | 750 | |||
Interest rate | 2.80% | ||||
Industrial development bond obligations, floating rate maturing at various dates through 2037 | |||||
Debt Instrument [Line Items] | |||||
Industrial development bond | $ 22 | 22 | |||
6.625% debentures due 2028 | |||||
Debt Instrument [Line Items] | |||||
Debentures | $ 201 | 201 | |||
Interest rate | 6.625% | ||||
9.065% debentures due 2033 | |||||
Debt Instrument [Line Items] | |||||
Debentures | $ 51 | 51 | |||
Interest rate | 9.065% | ||||
Other (including capitalized leases), 7.4% weighted average interest rate maturing at various dates through 2029 | |||||
Debt Instrument [Line Items] | |||||
Other (including capitalized leases), 7.4% weighted average interest rate maturing at various dates through 2029 | $ 228 | $ 265 | |||
Weighted average interest rate | 7.40% |
LONG-TERM DEBT AND CREDIT AGR_4
LONG-TERM DEBT AND CREDIT AGREEMENTS - Narrative (Details) € in Millions | May 17, 2023 USD ($) | Mar. 20, 2023 USD ($) | Mar. 24, 2022 USD ($) | Sep. 30, 2023 USD ($) | May 17, 2023 EUR (€) | Dec. 31, 2022 USD ($) |
364-Day Credit Agreement | Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Short-term debt, borrowing capacity | $ 1,500,000,000 | $ 1,500,000,000 | ||||
Debt term | 364 days | 364 days | ||||
Short-term outstanding borrowings | $ 0 | |||||
Line of Credit | 5-Year Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Debt term | 5 years | 5 years | ||||
Line of credit facility, maximum borrowing capacity | $ 4,000,000,000 | $ 4,000,000,000 | ||||
Borrowing capacity upon certain terms | $ 4,500,000,000 | |||||
Long-term outstanding borrowings | 0 | |||||
4.25% notes due 2029 | ||||||
Debt Instrument [Line Items] | ||||||
Senior notes | $ 750,000,000 | $ 750,000,000 | $ 0 | |||
Interest rate | 4.25% | 4.25% | 4.25% | |||
4.50% notes due 2034 | ||||||
Debt Instrument [Line Items] | ||||||
Senior notes | $ 1,000,000,000 | $ 1,000,000,000 | 0 | |||
Interest rate | 4.50% | 4.50% | 4.50% | |||
3.50% Euro notes due 2027 | ||||||
Debt Instrument [Line Items] | ||||||
Senior notes | $ 685,000,000 | € 650 | 0 | |||
Interest rate | 3.50% | 3.50% | 3.50% | |||
3.75% Euro notes due 2032 | ||||||
Debt Instrument [Line Items] | ||||||
Senior notes | $ 527,000,000 | € 500 | $ 0 | |||
Interest rate | 3.75% | 3.75% | 3.75% | |||
Notes | ||||||
Debt Instrument [Line Items] | ||||||
Gross proceeds | $ 1,800,000,000 | |||||
Discount and closing costs related to the offering | 20,000,000 | |||||
Euro Notes | ||||||
Debt Instrument [Line Items] | ||||||
Gross proceeds | 1,200,000,000 | |||||
Discount and closing costs related to the offering | $ 12,000,000 |
LEASES - Supplemental Cash Flow
LEASES - Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Right-of-use assets obtained in exchange for lease obligations | ||
Operating leases | $ 176 | $ 86 |
Finance leases | $ 31 | $ 43 |
LEASES - Supplemental Balance S
LEASES - Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Operating leases | ||
Other assets | $ 917 | $ 881 |
Accrued liabilities | 193 | 192 |
Other liabilities | 822 | 775 |
Total operating lease liabilities | 1,015 | 967 |
Financing leases | ||
Property, plant and equipment | 393 | 383 |
Accumulated depreciation | (187) | (161) |
Property, plant and equipment—net | 206 | 222 |
Current maturities of long-term debt | 84 | 77 |
Long-term debt | 112 | 145 |
Total financing lease liabilities | $ 196 | $ 222 |
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, liability, current, statement of financial position | Less: Current maturities of long-term debt | Less: Current maturities of long-term debt |
Finance lease, liability, noncurrent, statement of financial position | Total Long-term debt | Total Long-term debt |
DERIVATIVE INSTRUMENTS AND HE_3
DERIVATIVE INSTRUMENTS AND HEDGING TRANSACTIONS - Notional and Fair Value of Outstanding Derivatives (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Derivative [Line Items] | ||
Notional | $ 19,124 | $ 18,727 |
Fair Value Asset | 98 | 199 |
Fair Value (Liability) | (345) | (312) |
Derivatives in fair value hedging relationships | ||
Derivative [Line Items] | ||
Notional | 9,868 | 9,048 |
Fair Value Asset | 91 | 125 |
Fair Value (Liability) | (323) | (309) |
Derivatives in fair value hedging relationships | Fair Value Hedging | Interest rate swap agreements | ||
Derivative [Line Items] | ||
Notional | 4,967 | 4,984 |
Fair Value Asset | 0 | 16 |
Fair Value (Liability) | (323) | (303) |
Derivatives in fair value hedging relationships | Cash Flow Hedging | Foreign currency exchange contracts | ||
Derivative [Line Items] | ||
Notional | 705 | 866 |
Fair Value Asset | 47 | 19 |
Fair Value (Liability) | 0 | (5) |
Derivatives in fair value hedging relationships | Cash Flow Hedging | Commodity contracts | ||
Derivative [Line Items] | ||
Notional | 7 | 9 |
Fair Value Asset | 0 | 0 |
Fair Value (Liability) | 0 | (1) |
Derivatives in fair value hedging relationships | Net Investment Hedging | Cross currency swap agreements | ||
Derivative [Line Items] | ||
Notional | 4,189 | 3,189 |
Fair Value Asset | 44 | 90 |
Fair Value (Liability) | 0 | 0 |
Derivatives not designated as hedging instruments | Foreign currency exchange contracts | ||
Derivative [Line Items] | ||
Notional | 9,256 | 9,679 |
Fair Value Asset | 7 | 74 |
Fair Value (Liability) | $ (22) | $ (3) |
DERIVATIVE INSTURMENTS AND HEDG
DERIVATIVE INSTURMENTS AND HEDGING TRANSACTIONS - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Foreign currency exchange contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of hedged item | $ 5,880 | $ 3,836 |
DERIVATIVE INSTRUMENTS AND HE_4
DERIVATIVE INSTRUMENTS AND HEDGING TRANSACTIONS - Cumulative Basis Adjustments for Fair Value Hedges (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Hedged Liability, Statement of Financial Position [Extensible Enumeration] | Total Long-term debt | Total Long-term debt |
Derivatives in fair value hedging relationships | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Carrying Amount of Hedged Item | $ 4,644 | $ 4,696 |
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of Hedged Item | $ (323) | $ (287) |
DERIVATIVE INSTRUMENTS AND HE_5
DERIVATIVE INSTRUMENTS AND HEDGING TRANSACTIONS - Location and Impact to Consolidated Statement of Operations Related to Derivative Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Net Sales | $ 9,212 | $ 8,951 | $ 27,222 | $ 26,280 |
Costs of products and services sold | 5,670 | 5,594 | 16,794 | 16,578 |
Selling, General and Administrative Expenses | 1,252 | 1,228 | 3,831 | 3,965 |
Other (income) expense | (247) | (337) | (715) | (846) |
Interest and Other Financial Charges | 206 | 98 | 563 | 270 |
Foreign currency exchange contracts | Net Sales | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Foreign currency exchange contracts | 0 | 0 | 0 | 0 |
Foreign currency exchange contracts | Selling, general and administrative expenses | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Foreign currency exchange contracts | 0 | 0 | 0 | 0 |
Foreign currency exchange contracts | Other (Income) Expense | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Foreign currency exchange contracts | 212 | 402 | 63 | 749 |
Foreign currency exchange contracts | Interest and Other Financial Charges | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Foreign currency exchange contracts | 0 | 0 | 0 | 0 |
Derivatives in fair value hedging relationships | Cash Flow Hedging | Gain (loss) on cash flow hedges | Foreign currency exchange contracts | Net Sales | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount reclassified from accumulated other comprehensive income (loss) into income | 5 | 4 | 8 | 7 |
Derivatives in fair value hedging relationships | Cash Flow Hedging | Gain (loss) on cash flow hedges | Foreign currency exchange contracts | Selling, general and administrative expenses | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount reclassified from accumulated other comprehensive income (loss) into income | 2 | (2) | 6 | (2) |
Derivatives in fair value hedging relationships | Cash Flow Hedging | Gain (loss) on cash flow hedges | Foreign currency exchange contracts | Other (Income) Expense | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount reclassified from accumulated other comprehensive income (loss) into income | 0 | 0 | 0 | 0 |
Derivatives in fair value hedging relationships | Cash Flow Hedging | Gain (loss) on cash flow hedges | Foreign currency exchange contracts | Interest and Other Financial Charges | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount reclassified from accumulated other comprehensive income (loss) into income | 0 | 0 | 0 | 0 |
Derivatives in fair value hedging relationships | Fair Value Hedging | Gain (loss) on cash flow hedges | Interest rate swap agreements | Net Sales | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Hedged items | 0 | 0 | 0 | 0 |
Derivatives designated as hedges | 0 | 0 | 0 | 0 |
Derivatives in fair value hedging relationships | Fair Value Hedging | Gain (loss) on cash flow hedges | Interest rate swap agreements | Selling, general and administrative expenses | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Hedged items | 0 | 0 | 0 | 0 |
Derivatives designated as hedges | 0 | 0 | 0 | 0 |
Derivatives in fair value hedging relationships | Fair Value Hedging | Gain (loss) on cash flow hedges | Interest rate swap agreements | Other (Income) Expense | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Hedged items | 0 | 0 | 0 | 0 |
Derivatives designated as hedges | 0 | 0 | 0 | 0 |
Derivatives in fair value hedging relationships | Fair Value Hedging | Gain (loss) on cash flow hedges | Interest rate swap agreements | Interest and Other Financial Charges | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Hedged items | 38 | 186 | 36 | 354 |
Derivatives designated as hedges | (38) | (186) | (36) | (354) |
Derivatives in fair value hedging relationships | Net Investment Hedging | Foreign currency exchange contracts | Net Sales | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount excluded from effectiveness testing recognized in earnings using an amortization approach | 0 | 0 | ||
Derivatives in fair value hedging relationships | Net Investment Hedging | Foreign currency exchange contracts | Selling, general and administrative expenses | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount excluded from effectiveness testing recognized in earnings using an amortization approach | 0 | 0 | ||
Derivatives in fair value hedging relationships | Net Investment Hedging | Foreign currency exchange contracts | Other (Income) Expense | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount excluded from effectiveness testing recognized in earnings using an amortization approach | 0 | 0 | ||
Derivatives in fair value hedging relationships | Net Investment Hedging | Foreign currency exchange contracts | Interest and Other Financial Charges | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount excluded from effectiveness testing recognized in earnings using an amortization approach | 4 | 11 | ||
Product | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Net Sales | 6,294 | 6,588 | 19,045 | 19,404 |
Costs of products and services sold | 4,090 | 4,286 | 12,291 | 12,674 |
Product | Foreign currency exchange contracts | Cost of products and services sold | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Foreign currency exchange contracts | 0 | 0 | 0 | 0 |
Product | Derivatives in fair value hedging relationships | Cash Flow Hedging | Gain (loss) on cash flow hedges | Foreign currency exchange contracts | Cost of products and services sold | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount reclassified from accumulated other comprehensive income (loss) into income | 10 | 20 | 19 | 32 |
Product | Derivatives in fair value hedging relationships | Fair Value Hedging | Gain (loss) on cash flow hedges | Interest rate swap agreements | Cost of products and services sold | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Hedged items | 0 | 0 | 0 | 0 |
Derivatives designated as hedges | 0 | 0 | 0 | 0 |
Product | Derivatives in fair value hedging relationships | Net Investment Hedging | Foreign currency exchange contracts | Cost of products and services sold | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount excluded from effectiveness testing recognized in earnings using an amortization approach | 0 | 0 | ||
Service | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Net Sales | 2,918 | 2,363 | 8,177 | 6,876 |
Costs of products and services sold | 1,580 | 1,308 | 4,503 | 3,904 |
Service | Foreign currency exchange contracts | Cost of products and services sold | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Foreign currency exchange contracts | 0 | 0 | 0 | 0 |
Service | Derivatives in fair value hedging relationships | Cash Flow Hedging | Gain (loss) on cash flow hedges | Foreign currency exchange contracts | Cost of products and services sold | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount reclassified from accumulated other comprehensive income (loss) into income | 4 | 6 | 7 | 9 |
Service | Derivatives in fair value hedging relationships | Fair Value Hedging | Gain (loss) on cash flow hedges | Interest rate swap agreements | Cost of products and services sold | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Hedged items | 0 | 0 | 0 | 0 |
Derivatives designated as hedges | $ 0 | 0 | $ 0 | 0 |
Service | Derivatives in fair value hedging relationships | Net Investment Hedging | Foreign currency exchange contracts | Cost of products and services sold | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount excluded from effectiveness testing recognized in earnings using an amortization approach | $ 0 | $ 0 |
DERIVATIVE INSTURMENTS AND HE_2
DERIVATIVE INSTURMENTS AND HEDGING TRANSACTIONS - Schedule of Net Investment Hedges in Accumulated Other Comprehensive Income (Loss) (Details) - Derivatives in fair value hedging relationships - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Foreign currency exchange contracts | ||||
Derivative [Line Items] | ||||
Gain or (loss) on net investment hedges recognized in accumulated other comprehensive income (loss) | $ 0 | $ 31 | $ 0 | $ 62 |
Euro-denominated long-term debt | ||||
Derivative [Line Items] | ||||
Gain or (loss) on net investment hedges recognized in accumulated other comprehensive income (loss) | 157 | 207 | 71 | 474 |
Euro-denominated commercial paper | ||||
Derivative [Line Items] | ||||
Gain or (loss) on net investment hedges recognized in accumulated other comprehensive income (loss) | 68 | 41 | 25 | 94 |
Cross currency swap agreements | ||||
Derivative [Line Items] | ||||
Gain or (loss) on net investment hedges recognized in accumulated other comprehensive income (loss) | $ 69 | $ 97 | $ (6) | $ 177 |
FAIR VALUE MEASUREMENTS - Asset
FAIR VALUE MEASUREMENTS - Assets and Liabilities Accounted for at Fair Value (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Fair value asset | $ 98 | $ 199 |
Liabilities | ||
Fair value liability | 345 | 312 |
Fair Value Measurements Recurring | ||
Assets | ||
Available for sale investments | 273 | 646 |
Right to HWI Net Sale Proceeds | 9 | 295 |
Total assets | 413 | 1,194 |
Liabilities | ||
Total liabilities | 345 | 312 |
Fair Value Measurements Recurring | Level 1 | ||
Assets | ||
Available for sale investments | 60 | 87 |
Right to HWI Net Sale Proceeds | 0 | 0 |
Total assets | 93 | 109 |
Liabilities | ||
Total liabilities | 0 | 0 |
Fair Value Measurements Recurring | Level 2 | ||
Assets | ||
Available for sale investments | 213 | 559 |
Right to HWI Net Sale Proceeds | 0 | 0 |
Total assets | 311 | 790 |
Liabilities | ||
Total liabilities | 345 | 312 |
Fair Value Measurements Recurring | Level 3 | ||
Assets | ||
Available for sale investments | 0 | 0 |
Right to HWI Net Sale Proceeds | 9 | 295 |
Total assets | 9 | 295 |
Liabilities | ||
Total liabilities | 0 | 0 |
Fair Value Measurements Recurring | Investments in equity securities | ||
Assets | ||
Investments in equity securities | 33 | 54 |
Fair Value Measurements Recurring | Investments in equity securities | Level 1 | ||
Assets | ||
Investments in equity securities | 33 | 22 |
Fair Value Measurements Recurring | Investments in equity securities | Level 2 | ||
Assets | ||
Investments in equity securities | 0 | 32 |
Fair Value Measurements Recurring | Investments in equity securities | Level 3 | ||
Assets | ||
Investments in equity securities | 0 | 0 |
Foreign currency exchange contracts | Fair Value Measurements Recurring | ||
Assets | ||
Fair value asset | 54 | 93 |
Liabilities | ||
Fair value liability | 22 | 8 |
Foreign currency exchange contracts | Fair Value Measurements Recurring | Level 1 | ||
Assets | ||
Fair value asset | 0 | 0 |
Liabilities | ||
Fair value liability | 0 | 0 |
Foreign currency exchange contracts | Fair Value Measurements Recurring | Level 2 | ||
Assets | ||
Fair value asset | 54 | 93 |
Liabilities | ||
Fair value liability | 22 | 8 |
Foreign currency exchange contracts | Fair Value Measurements Recurring | Level 3 | ||
Assets | ||
Fair value asset | 0 | 0 |
Liabilities | ||
Fair value liability | 0 | 0 |
Interest rate swap agreements | Fair Value Measurements Recurring | ||
Assets | ||
Fair value asset | 0 | 16 |
Liabilities | ||
Fair value liability | 323 | 303 |
Interest rate swap agreements | Fair Value Measurements Recurring | Level 1 | ||
Assets | ||
Fair value asset | 0 | 0 |
Liabilities | ||
Fair value liability | 0 | 0 |
Interest rate swap agreements | Fair Value Measurements Recurring | Level 2 | ||
Assets | ||
Fair value asset | 0 | 16 |
Liabilities | ||
Fair value liability | 323 | 303 |
Interest rate swap agreements | Fair Value Measurements Recurring | Level 3 | ||
Assets | ||
Fair value asset | 0 | 0 |
Liabilities | ||
Fair value liability | 0 | 0 |
Cross currency swap agreements | Fair Value Measurements Recurring | ||
Assets | ||
Fair value asset | 44 | 90 |
Cross currency swap agreements | Fair Value Measurements Recurring | Level 1 | ||
Assets | ||
Fair value asset | 0 | 0 |
Cross currency swap agreements | Fair Value Measurements Recurring | Level 2 | ||
Assets | ||
Fair value asset | 44 | 90 |
Cross currency swap agreements | Fair Value Measurements Recurring | Level 3 | ||
Assets | ||
Fair value asset | 0 | 0 |
Commodity contracts | Fair Value Measurements Recurring | ||
Liabilities | ||
Fair value liability | 0 | 1 |
Commodity contracts | Fair Value Measurements Recurring | Level 1 | ||
Liabilities | ||
Fair value liability | 0 | 0 |
Commodity contracts | Fair Value Measurements Recurring | Level 2 | ||
Liabilities | ||
Fair value liability | 0 | 1 |
Commodity contracts | Fair Value Measurements Recurring | Level 3 | ||
Liabilities | ||
Fair value liability | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | ||||
Fair value of cash proceeds from sale | $ 0 | $ 19 | $ 256 | $ 275 |
Decrease in fair value of cash proceeds from sale | $ 11 | $ 11 |
FAIR VALUE MEASUREMENTS - Sched
FAIR VALUE MEASUREMENTS - Schedule of Level 3 Fair Value Assets and Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2023 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at beginning of period | $ 9 | $ 295 | $ 295 | |
Receipt of HWI net sale proceeds | 0 | $ (19) | $ (256) | (275) |
Fair value adjustment of HWI Net Sale Proceeds | 0 | (11) | ||
Balance at end of period | $ 9 | $ 9 | $ 9 |
FAIR VALUE MEASUREMENTS - Finan
FAIR VALUE MEASUREMENTS - Financial Assets and Liabilities Not Carried at Fair Value (Details) - Level 2 - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Carrying Value | ||
Assets | ||
Long-term receivables | $ 231 | $ 229 |
Liabilities | ||
Long-term debt and related current maturities | 18,353 | 16,853 |
Fair Value | ||
Assets | ||
Long-term receivables | 176 | 183 |
Liabilities | ||
Long-term debt and related current maturities | $ 16,755 | $ 15,856 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Basic | ||||
Net income attributable to Honeywell | $ 1,514 | $ 1,552 | $ 4,395 | $ 3,947 |
Weighted average shares outstanding (in shares) | 662.4 | 674.1 | 665.2 | 679.3 |
Earnings per share of common stock - basic (in dollars per share) | $ 2.29 | $ 2.30 | $ 6.61 | $ 5.81 |
Assuming Dilution | ||||
Net income attributable to Honeywell | $ 1,514 | $ 1,552 | $ 4,395 | $ 3,947 |
Average shares | ||||
Weighted average shares outstanding (in shares) | 662.4 | 674.1 | 665.2 | 679.3 |
Dilutive securities issuable - stock plans (in shares) | 4.6 | 5.5 | 5.2 | 6 |
Total weighted average shares outstanding (in shares) | 667 | 679.6 | 670.4 | 685.3 |
Earnings per share of common stock - assuming dilution (in dollars per share) | $ 2.27 | $ 2.28 | $ 6.56 | $ 5.76 |
Stock options excluded from diluted computations (in shares) | 4.6 | 5.5 | 4.4 | 3.6 |
Total shareowners' equity (in shares) | 659.3 | 672.3 | 659.3 | 672.3 |
Shares issued (in shares) | 957.6 | 957.6 | 957.6 | 957.6 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | $ 17,319 | |||
Other comprehensive income (loss), net of tax | $ 57 | $ (427) | (82) | $ (422) |
Ending balance | 17,775 | 18,330 | 17,775 | 18,330 |
Total | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | (3,611) | (2,883) | (3,475) | (2,895) |
Other comprehensive income (loss) before reclassifications | (8) | (316) | ||
Amounts reclassified from accumulated other comprehensive income (loss) | (68) | (85) | ||
Other comprehensive income (loss), net of tax | (76) | (401) | ||
Ending balance | (3,551) | (3,296) | (3,551) | (3,296) |
Foreign Exchange Translation Adjustment | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | (2,832) | (2,478) | ||
Other comprehensive income (loss) before reclassifications | (70) | (375) | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | (3) | ||
Other comprehensive income (loss), net of tax | (70) | (378) | ||
Ending balance | (2,902) | (2,856) | (2,902) | (2,856) |
Pension and Other Postretirement Benefit Adjustments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | (648) | (415) | ||
Other comprehensive income (loss) before reclassifications | 0 | 0 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | (38) | (44) | ||
Other comprehensive income (loss), net of tax | (38) | (44) | ||
Ending balance | (686) | (459) | (686) | (459) |
Changes in Fair Value of Available for Sale Investments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | (7) | 1 | ||
Other comprehensive income (loss) before reclassifications | 3 | (7) | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | ||
Other comprehensive income (loss), net of tax | 3 | (7) | ||
Ending balance | (4) | (6) | (4) | (6) |
Changes in Fair Value of Cash Flow Hedges | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | 12 | (3) | ||
Other comprehensive income (loss) before reclassifications | 59 | 66 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | (30) | (38) | ||
Other comprehensive income (loss), net of tax | 29 | 28 | ||
Ending balance | $ 41 | $ 25 | $ 41 | $ 25 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Environmental Matters (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Accrual for Environmental Loss Contingencies [Roll Forward] | ||
Beginning of period | $ 615 | |
Accruals for environmental matters deemed probable and reasonably estimable | 176 | |
Environmental liability payments | (109) | |
End of period | 682 | |
Loss Contingency, Classification of Accrual [Abstract] | ||
Accrued liabilities | 222 | $ 222 |
Other liabilities | 460 | 393 |
Total environmental liabilities | $ 682 | $ 615 |
Environmental Loss Contingency, Statement of Financial Position [Extensible Enumeration] | Other liabilities | |
Environmental Loss Contingency, Current, Statement of Financial Position [Extensible Enumeration] | Accrued Liabilities, Current | Accrued Liabilities, Current |
Environmental Loss Contingency, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities |
Environmental Liabilities | Resideo | ||
Loss Contingency, Classification of Accrual [Abstract] | ||
Cash payments of annual environmental spending percentage | 90% | |
Indemnification and reimbursement agreement annual cap | $ 140 | |
Indemnification and reimbursement agreement minimum amount (less than) | 25 | |
Reimbursements from indemnification and reimbursement agreement | $ 105 | |
Receivable as a percentage of environmental costs incurred | 90% | |
Reimbursement receivable indemnification and reimbursement agreement | $ 136 | |
Other current assets, reimbursement agreement | 140 | |
Other assets, reimbursement agreement | $ 505 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Asbestos-Related Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Nov. 20, 2022 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Loss Contingency Accrual [Roll Forward] | |||||||
Asbestos-related liability payments | $ (1,325) | $ 0 | |||||
Asbestos Related Liabilities Insurance Recoveries [Roll Forward] | |||||||
Insurance recoveries for asbestos-related liabilities | $ 200 | 200 | $ 224 | ||||
Asbestos-related liabilities | 1,102 | 1,102 | 1,180 | ||||
Fair value of cash proceeds from sale | 0 | $ 19 | $ 256 | 275 | |||
Total | |||||||
Loss Contingency Accrual [Roll Forward] | |||||||
Asbestos related liabilities, beginning of period | 2,616 | 2,616 | |||||
Accrual for update to estimated liability | 37 | ||||||
Change in estimated cost of future claims | 26 | ||||||
Asbestos-related liability payments | (132) | ||||||
NARCO Buyout | (1,325) | (1,325) | |||||
Asbestos related liabilities, end of period | 1,222 | 1,222 | |||||
Asbestos Related Liabilities Insurance Recoveries [Roll Forward] | |||||||
Insurance recoveries, beginning of period | 265 | 265 | |||||
Probable insurance recoveries related to estimated liability | 7 | ||||||
Insurance receipts for asbestos-related liabilities | (31) | ||||||
Insurance recoveries, end of period | 241 | 241 | |||||
Other current assets | 41 | 41 | 41 | ||||
Insurance recoveries for asbestos-related liabilities | 200 | 200 | 224 | ||||
Total assets | 241 | 241 | 265 | ||||
Accrued liabilities | 120 | 120 | 1,436 | ||||
Asbestos-related liabilities | 1,102 | 1,102 | 1,180 | ||||
Total asbestos-related liabilities | 1,222 | 1,222 | 2,616 | ||||
Bendix | |||||||
Loss Contingency Accrual [Roll Forward] | |||||||
Asbestos related liabilities, beginning of period | 1,291 | 1,291 | |||||
Accrual for update to estimated liability | 33 | ||||||
Change in estimated cost of future claims | 26 | ||||||
Asbestos-related liability payments | (128) | ||||||
NARCO Buyout | 0 | 0 | |||||
Asbestos related liabilities, end of period | 1,222 | 1,222 | |||||
Asbestos Related Liabilities Insurance Recoveries [Roll Forward] | |||||||
Insurance recoveries, beginning of period | 130 | 130 | |||||
Probable insurance recoveries related to estimated liability | 7 | ||||||
Insurance receipts for asbestos-related liabilities | (10) | ||||||
Insurance recoveries, end of period | 127 | 127 | |||||
Total assets | 127 | 127 | 130 | ||||
Total asbestos-related liabilities | 1,222 | 1,222 | 1,291 | ||||
NARCO | |||||||
Loss Contingency Accrual [Roll Forward] | |||||||
Asbestos related liabilities, beginning of period | 1,325 | 1,325 | |||||
Accrual for update to estimated liability | 4 | ||||||
Change in estimated cost of future claims | 0 | ||||||
Asbestos-related liability payments | (4) | ||||||
NARCO Buyout | (1,325) | (1,325) | |||||
Asbestos related liabilities, end of period | 0 | 0 | |||||
Asbestos Related Liabilities Insurance Recoveries [Roll Forward] | |||||||
Insurance recoveries, beginning of period | $ 135 | 135 | |||||
Probable insurance recoveries related to estimated liability | 0 | ||||||
Insurance receipts for asbestos-related liabilities | (21) | ||||||
Insurance recoveries, end of period | 114 | 114 | |||||
Total assets | 114 | 114 | 135 | ||||
Total asbestos-related liabilities | $ 0 | $ 0 | $ 1,325 | ||||
Annual trust cap | $ 1,325 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES - Bendix-Related Asbestos Claims Activity (Details) - Bendix - claim | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Loss Contingency Claims [Roll Forward] | |||
Claims unresolved at the beginning of period | 5,608 | 6,401 | 6,242 |
Claims filed | 1,335 | 2,014 | 2,611 |
Claims resolved | (1,297) | (2,807) | (2,452) |
Claims unresolved at the end of period | 5,646 | 5,608 | 6,401 |
COMMITMENTS AND CONTINGENCIES_4
COMMITMENTS AND CONTINGENCIES - Disease Distribution of Unresolved Claims (Details) - Bendix - claim | Sep. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Loss Contingency Disease Distribution Of Unresolved Claims [Line Items] | ||||
Mesothelioma and other cancer claims | 3,396 | 3,283 | 3,760 | |
Nonmalignant claims | 2,250 | 2,325 | 2,641 | |
Total claims | 5,646 | 5,608 | 6,401 | 6,242 |
COMMITMENTS AND CONTINGENCIES_5
COMMITMENTS AND CONTINGENCIES - Resolution Values Per Claim Excluding Legal Costs (Details) - Bendix - $ / claim | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Resolution Values Per Claim [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 - Petrobras and Unaoil Matters (Details) - USD ($) $ in Millions | 1 Months Ended | 9 Months Ended |
Jan. 31, 2023 | Sep. 30, 2023 | |
Loss Contingency, Narco and Bendix Asbestos Related Balances by Balance Sheet Caption [Line Items] | ||
Environmental liability payments | $ 109 | |
Petrobras | ||
Loss Contingency, Narco and Bendix Asbestos Related Balances by Balance Sheet Caption [Line Items] | ||
Environmental liability payments | $ 202.7 |
PENSION BENEFITS (Details)
PENSION BENEFITS (Details) - Pension Plan - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
U.S. Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 8 | $ 21 | $ 22 | $ 64 |
Interest cost | 162 | 95 | 484 | 285 |
Expected return on plan assets | (277) | (320) | (833) | (961) |
Amortization of prior service (credit) cost | (12) | (11) | (32) | (32) |
Net periodic benefit income | (119) | (215) | (359) | (644) |
Non-U.S. Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 2 | 5 | 8 | 15 |
Interest cost | 51 | 25 | 150 | 79 |
Expected return on plan assets | (70) | (67) | (206) | (213) |
Net periodic benefit income | $ (17) | $ (37) | $ (48) | $ (119) |
PENSION BENEFITS - Additional I
PENSION BENEFITS - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |||
Common stock repurchased | $ 100,000,000 | $ 100,000,000 | $ 0 |
OTHER (INCOME) EXPENSE (Details
OTHER (INCOME) EXPENSE (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Other Income and Expenses [Line Items] | ||||
Interest income | $ (89) | $ (37) | $ (241) | $ (77) |
Equity income of affiliated companies | (12) | (19) | (61) | (43) |
Gain on sale of non-strategic businesses and assets | 0 | (10) | 0 | (10) |
Foreign exchange | 0 | 12 | 20 | 32 |
Expense related to UOP Matters | 0 | 0 | 0 | 50 |
Expense (benefit) related to Russia-Ukraine Conflict | 0 | (9) | (2) | 48 |
Net expense related to the NARCO Buyout and HWI | 0 | 0 | 11 | 0 |
Other, net | 8 | 15 | 17 | 31 |
Total | (247) | (337) | (715) | (846) |
Pension Plan | ||||
Other Income and Expenses [Line Items] | ||||
Ongoing income - non-service | (148) | (279) | (440) | (847) |
Other Postretirement Benefits Plan | ||||
Other Income and Expenses [Line Items] | ||||
Ongoing income - non-service | $ (6) | $ (10) | $ (19) | $ (30) |
SEGMENT FINANCIAL DATA - Additi
SEGMENT FINANCIAL DATA - Additional Information (Details) - segment | 1 Months Ended | |
Sep. 30, 2023 | Oct. 26, 2023 | |
Segment Reporting Information [Line Items] | ||
Number of reportable segments | 2 | |
Subsequent event | ||
Segment Reporting Information [Line Items] | ||
Number of reportable segments | 4 | |
Number of operating segments | 4 |
SEGMENT FINANCIAL DATA (Details
SEGMENT FINANCIAL DATA (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 9,212 | $ 8,951 | $ 27,222 | $ 26,280 |
Total segment profit | 2,082 | 1,952 | 6,081 | 5,585 |
Interest and other financial charges | (206) | (98) | (563) | (270) |
Repositioning and other charges | (88) | (100) | (331) | (714) |
Income before taxes | 1,967 | 1,981 | 5,653 | 5,190 |
Product | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 6,294 | 6,588 | 19,045 | 19,404 |
Service | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 2,918 | 2,363 | 8,177 | 6,876 |
Corporate and All Other | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 2 | 2 | 5 | 4 |
Total segment profit | (90) | (120) | (289) | (298) |
Corporate and All Other | Service | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 2 | 2 | 5 | 4 |
Segment Reconciling Items | ||||
Segment Reporting Information [Line Items] | ||||
Interest and other financial charges | (206) | (98) | (563) | (270) |
Stock compensation expense | (39) | (50) | (148) | (163) |
Repositioning and other charges | (88) | (100) | (331) | (714) |
Other | 81 | 20 | 204 | (26) |
Income before taxes | 1,967 | 1,981 | 5,653 | 5,190 |
Segment Reconciling Items | Pension Plan | ||||
Segment Reporting Information [Line Items] | ||||
Pension ongoing income | 131 | 247 | 391 | 748 |
Segment Reconciling Items | Other Postretirement Benefits Plan | ||||
Segment Reporting Information [Line Items] | ||||
Pension ongoing income | 6 | 10 | 19 | 30 |
Aerospace | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 3,499 | 2,976 | 9,951 | 8,623 |
Total segment profit | 963 | 818 | 2,714 | 2,338 |
Repositioning and other charges | (10) | 2 | (21) | (34) |
Aerospace | Operating Segments | Product | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,824 | 1,586 | 5,294 | 4,621 |
Aerospace | Operating Segments | Service | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,675 | 1,390 | 4,657 | 4,002 |
Honeywell Building Technologies | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,530 | 1,526 | 4,527 | 4,486 |
Total segment profit | 386 | 368 | 1,146 | 1,064 |
Repositioning and other charges | (9) | (10) | (40) | (47) |
Honeywell Building Technologies | Operating Segments | Product | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,172 | 1,169 | 3,463 | 3,430 |
Honeywell Building Technologies | Operating Segments | Service | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 358 | 357 | 1,064 | 1,056 |
Performance Materials and Technologies | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 2,867 | 2,720 | 8,477 | 7,867 |
Total segment profit | 633 | 615 | 1,821 | 1,726 |
Repositioning and other charges | (22) | (15) | (45) | (262) |
Performance Materials and Technologies | Operating Segments | Product | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 2,183 | 2,228 | 6,609 | 6,394 |
Performance Materials and Technologies | Operating Segments | Service | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 684 | 492 | 1,868 | 1,473 |
Safety and Productivity Solutions | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,314 | 1,727 | 4,262 | 5,300 |
Total segment profit | 190 | 271 | 689 | 755 |
Repositioning and other charges | (23) | (55) | (94) | (197) |
Safety and Productivity Solutions | Operating Segments | Product | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,115 | 1,605 | 3,679 | 4,959 |
Safety and Productivity Solutions | Operating Segments | Service | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 199 | $ 122 | $ 583 | $ 341 |