|
Delaware
|
|
22-2640650
|
|
(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer
Identification No.)
|
|
|
|
|
|
300 South Tryon Street
|
|
28202
|
|
Charlotte,
|
NC
|
|
|
(Address of principal executive offices)
|
|
(Zip Code)
|
Title of Each Class
|
|
Trading Symbols
|
|
Name of each exchange on which registered
|
Common Stock, par value $1 per share*
|
|
HON
|
|
New York Stock Exchange
|
0.650% Senior Notes due 2020
|
|
HON 20
|
|
New York Stock Exchange
|
1.300% Senior Notes due 2023
|
|
HON 23A
|
|
New York Stock Exchange
|
2.250% Senior Notes due 2028
|
|
HON 28A
|
|
New York Stock Exchange
|
* The common stock is also listed on the London Stock Exchange.
|
|
|
|
Item
|
|
|
|
Page
|
|
Part I
|
|
1
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||
|
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||
|
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1A.
|
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||
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1B.
|
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||
|
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2
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||
|
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3
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||
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4
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Part II.
|
|
5
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||
|
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6
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|
||
|
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7
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7A.
|
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||
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8
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||
|
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9
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||
|
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9A.
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||
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9B.
|
|
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|
||
Part III.
|
|
10
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|
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|
||
|
|
11
|
|
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||
|
|
12
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|
||
|
|
13
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|
|
|
||
|
|
14
|
|
|
|
||
Part IV.
|
|
15
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||
|
|
16
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|
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|
||
|
•
|
Aerospace: Garmin, Safran, Thales, and United Technologies
|
•
|
Honeywell Building Technologies: Johnson Controls, Schneider Electric, Siemens and United Technologies
|
•
|
Performance Materials and Technologies: Albemarle, BASF, Dupont, Emerson Electric, Schneider Electric, Siemens, Sinopec and Yokogawa
|
•
|
Safety and Productivity Solutions: 3M, Kion Group, Mine Safety Appliances (MSA), TE Connectivity, and Zebra Technologies
|
Manufactured Products and Systems and
Performance of Services
|
|
Year Ended December 31, 2019
|
||||||||||
Aerospace
|
|
Honeywell
Building
Technologies
|
|
Performance
Materials and
Technologies
|
|
Safety and
Productivity
Solutions
|
||||||
|
|
(% of Segment Sales)
|
||||||||||
U.S. Exports
|
|
25
|
%
|
|
2
|
%
|
|
16
|
%
|
|
2
|
%
|
Non-U.S. manufactured/services
|
|
19
|
%
|
|
64
|
%
|
|
56
|
%
|
|
41
|
%
|
Name, Age,
Date First
Elected an
Executive Officer
|
|
Business Experience
|
Darius Adamczyk, 54
2017(a)
|
|
Chairman of the Board and Chief Executive Officer since April 2018. President and Chief Executive Officer from April 2017 to April 2018. Chief Operating Officer from April 2016 to March 2017. President and Chief Executive Officer Performance Materials and Technologies from April 2014 to April 2016. President of Honeywell Process Solutions from April 2012 to April 2014.
|
Que Thanh Dallara, 46
2018
|
|
President and Chief Executive Officer Connected Enterprise since October 2018. Vice President and Chief Commercial Officer from January 2017 to October 2018. From 2007 to 2016, Ms. Dallara served in multiple leadership positions at TE Connectivity Ltd., most recently as Senior Vice President, Corporate Strategy and Analytics.
|
Rajeev Gautam, 67
2016
|
|
President and Chief Executive Officer Performance Materials and Technologies since April 2016. President of Honeywell UOP from January 2009 to April 2016.
|
Mark R. James, 58
2007
|
|
Senior Vice President Human Resources, Security and Communications since November 2007.
|
Vimal Kapur, 54
2018
|
|
President and Chief Executive Officer Honeywell Building Technologies since May 2018. President of Honeywell Process Solutions from 2014 to May 2018.
|
Gregory P. Lewis, 52
2018
|
|
Senior Vice President and Chief Financial Officer since August 2018. Vice President of Enterprise Information Management from October 2016 to April 2018, prior to being named Vice President, Corporate Finance in May 2018. Chief Financial Officer of Automation and Control Solutions from April 2013 to September 2016.
|
Anne T. Madden, 55
2017
|
|
Senior Vice President and General Counsel since October 2017. Corporate Secretary from February 2018 to September 2019. Vice President of Corporate Development and Global Head of M&A from January 2002 to October 2017.
|
Michael R. Madsen, 56
2019
|
|
President and Chief Executive Officer Aerospace since October 2019. Vice President, Integrated Supply Chain of Aerospace from May 2015 to October 2019. President, Aerospace Defense and Space from October 2010 to May 2015
|
John F. Waldron, 44
2016
|
|
President and Chief Executive Officer, Safety and Productivity Solutions since July 2016. President of Sensing and Productivity Solutions from July 2015 to July 2016. President of Scanning and Mobility from April 2012 to July 2015.
|
(a)
|
Also a Director.
|
•
|
Aerospace—Our Aerospace business is impacted by customer buying patterns of aftermarket parts, supplier stability, factory transitions and global supply chain capacity constraints that may lead to shortages of crucial components. Operating results may be adversely affected by downturns in the global demand for air travel which impacts new aircraft production or the delay or cancellation of new aircraft orders, delays in launch schedules for new aircraft, the retirement of aircraft and global flying hours, which impact air transport, regional, business and general aviation aircraft utilization rates. Operating results may be adversely affected by the decrease in air travel demand due to regional restrictions or suspension of service for public health, safety, or environmental events. Operating results could also be impacted by changes in overall trends related to end market demand for the product portfolio, as well as, new entrants and non-traditional players entering the market. Operating results in our Defense and Space business unit may be affected by the mix of U.S. and foreign government appropriations for defense and space programs and by compliance risks. Results may also be impacted by the potential introduction of counterfeit parts into our global supply chain.
|
•
|
Honeywell Building Technologies—Operating results may be adversely impacted by downturns in the level of global commercial construction activity (including retrofits and upgrades), lower capital spending and operating expenditures on building projects, less industrial plant expansion, changes in the competitive landscape including new market entrants and new technologies, and fluctuations in inventory levels in distribution channels.
|
•
|
Performance Materials and Technologies—Operating results may be adversely impacted by downturns in capacity utilization for chemical, industrial, refining, petrochemical and semiconductor plants, our customers’ availability of capital for refinery construction and expansion, raw material demand and supply volatility, product commoditization, continued illegal imports of hydrofluorocarbons into Europe and our ability to maximize our facilities’ production capacity and minimize downtime. In particular, the volatility in oil and natural gas prices have and will continue to impact our customers’ operating levels and capital spending and thus demand for our products and services.
|
•
|
Safety and Productivity Solutions—Operating results may be adversely impacted by reduced investments in process automation, safety monitoring, and plant capacity utilization initiatives, fluctuations in retail markets, lower customer demand due to the failure to anticipate and respond to overall trends related to end market demand, changes in the competitive landscape including new market entrants and technology that may lead to product commoditization, and adverse industry economic conditions, all of which could result in lower market share, reduced selling prices and lower margins.
|
Issuer Purchases of Equity Securities
|
||||||||||||||
Period
|
|
Total
Number of
Shares
Purchased
|
|
Average
Price Paid
per Share
|
|
Total Number
of Shares
Purchased as
Part of Publicly
Announced
Plans
or Programs
|
|
Approximate Dollar
Value of Shares that
May Yet be Purchased
Under Plans or
Programs
(Dollars in millions)
|
||||||
October 2019
|
|
1,326,831
|
|
|
$
|
163.68
|
|
|
1,326,831
|
|
|
$
|
7,522
|
|
November 2019
|
|
1,573,877
|
|
|
$
|
179.03
|
|
|
1,573,877
|
|
|
$
|
7,240
|
|
December 2019
|
|
1,424,810
|
|
|
$
|
176.15
|
|
|
1,424,810
|
|
|
$
|
6,989
|
|
|
|
Dec 2014
|
|
Dec 2015
|
|
Dec 2016
|
|
Dec 2017
|
|
Dec 2018
|
|
Dec 2019
|
Honeywell
|
|
100
|
|
105.80
|
|
121.65
|
|
164.35
|
|
150.84
|
|
206.19
|
S&P Index
|
|
100
|
|
101.38
|
|
113.51
|
|
138.29
|
|
132.23
|
|
173.86
|
Composite Index
|
|
100
|
|
111.71
|
|
126.60
|
|
144.27
|
|
117.70
|
|
150.03
|
|
Years Ended December 31,
|
||||||||||||||||||
2019
|
|
2018(1)(2)
|
|
2017(1)
|
|
2016
|
|
2015
|
|||||||||||
|
(Dollars in millions, except per share amounts)
|
||||||||||||||||||
Results of Operations
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Net sales
|
$
|
36,709
|
|
|
$
|
41,802
|
|
|
$
|
40,534
|
|
|
$
|
39,302
|
|
|
$
|
38,581
|
|
Net income attributable to Honeywell
|
6,143
|
|
|
6,765
|
|
|
1,545
|
|
|
4,812
|
|
|
4,771
|
|
|||||
Earnings Per Common Share
|
|
|
|
|
|
|
|
|
|
||||||||||
Earnings from continuing operations:
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
8.52
|
|
|
9.10
|
|
|
2.03
|
|
|
6.30
|
|
|
6.12
|
|
|||||
Assuming dilution
|
8.41
|
|
|
8.98
|
|
|
2.00
|
|
|
6.21
|
|
|
6.04
|
|
|||||
Dividends per share
|
3.36
|
|
|
3.06
|
|
|
2.74
|
|
|
2.45
|
|
|
2.15
|
|
|||||
Balance Sheet Data
|
|
|
|
|
|
|
|
|
|
||||||||||
Property, plant and equipment-net
|
5,325
|
|
|
5,296
|
|
|
5,926
|
|
|
5,793
|
|
|
5,789
|
|
|||||
Total assets
|
58,679
|
|
|
57,773
|
|
|
59,470
|
|
|
54,566
|
|
|
49,711
|
|
|||||
Short-term debt
|
4,892
|
|
|
6,458
|
|
|
5,309
|
|
|
3,593
|
|
|
6,514
|
|
|||||
Long-term debt
|
11,110
|
|
|
9,756
|
|
|
12,573
|
|
|
12,182
|
|
|
5,554
|
|
|||||
Total debt
|
16,002
|
|
|
16,214
|
|
|
17,882
|
|
|
15,775
|
|
|
12,068
|
|
|||||
Redeemable noncontrolling interest
|
7
|
|
|
7
|
|
|
5
|
|
|
3
|
|
|
290
|
|
|||||
Shareowners’ equity
|
18,706
|
|
|
18,358
|
|
|
16,665
|
|
|
18,883
|
|
|
17,751
|
|
(1)
|
2018 and 2017 Net Income attributable to Honeywell and Earnings Per Common Share were impacted by U.S. Tax Reform; see Note 5 Income Taxes of Notes to Consolidated Financial Statements for further details.
|
(2)
|
The results of operations for Transportation Systems business and Homes and Global Distribution business are included in the Consolidated Statement of Operations through the effective dates of the respective spin-offs, which occurred in 2018.
|
•
|
Driving profitable growth through delivering innovative products through research and development and technological excellence, and through continued enhancement of our footprint in high growth regions;
|
•
|
Continuing to execute on our strategy to become the premier software-industrial, including the ongoing expansion of Honeywell Forge connected solutions for aircraft, buildings, cybersecurity, plants, and workers and driving a recurring revenue model across the Company;
|
•
|
Expanding margins by optimizing the Company’s cost structure through Supply Chain and Honeywell Digital transformation initiatives, commercial excellence, repositioning, and other manufacturing and operational process improvements;
|
•
|
Executing disciplined, rigorous M&A and integration processes to deliver growth through acquisitions;
|
•
|
Controlling corporate costs, including costs incurred for asbestos and environmental matters, pension and other post-retirement benefits; and
|
•
|
Increasing availability of capital through strong cash flow generation and conversion from effective working capital management and proactively managing debt to enable the Company to smartly deploy capital for strategic acquisitions, dividends, share repurchases and capital expenditures.
|
|
2019
|
|
2018
|
|
2017
|
||||||
Net sales
|
$
|
36,709
|
|
|
$
|
41,802
|
|
|
$
|
40,534
|
|
% change compared with prior period
|
(12
|
)%
|
|
3
|
%
|
|
|
|
2019
Versus
2018
|
|
2018
Versus
2017
|
||
Volume
|
3
|
%
|
|
4
|
%
|
Price
|
2
|
%
|
|
2
|
%
|
Foreign Currency Translation
|
(1
|
)%
|
|
1
|
%
|
Acquisitions/Divestitures
|
(16
|
)%
|
|
(4
|
)%
|
|
(12
|
)%
|
|
3
|
%
|
|
2019
|
|
2018
|
|
2017
|
||||||
Cost of products and services sold
|
$
|
24,339
|
|
|
$
|
29,046
|
|
|
$
|
28,144
|
|
% change compared with prior period
|
(16
|
)%
|
|
3
|
%
|
|
|
||||
Gross Margin percentage
|
33.7
|
%
|
|
30.5
|
%
|
|
30.6
|
%
|
|
2019
|
|
2018
|
|
2017
|
||||||
Selling, general and administrative expenses
|
$
|
5,519
|
|
|
$
|
6,051
|
|
|
$
|
6,087
|
|
% of sales
|
15.0
|
%
|
|
14.5
|
%
|
|
15.0
|
%
|
|
2019
|
|
2018
|
|
2017
|
||||||
Other (income) expense
|
$
|
(1,065
|
)
|
|
$
|
(1,149
|
)
|
|
$
|
(963
|
)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Tax expense
|
$
|
1,329
|
|
|
$
|
659
|
|
|
$
|
5,362
|
|
Effective tax rate
|
17.6
|
%
|
|
8.8
|
%
|
|
77.2
|
%
|
|
2019
|
|
2018
|
|
2017
|
||||||
Net income attributable to Honeywell
|
$
|
6,143
|
|
|
$
|
6,765
|
|
|
$
|
1,545
|
|
Earnings per share of common stock–assuming dilution
|
$
|
8.41
|
|
|
$
|
8.98
|
|
|
$
|
2.00
|
|
|
Years Ended December 31,
|
|
% Change
|
||||||||||||||
2019
Versus
2018
|
|
2018
Versus
2017
|
|||||||||||||||
2019
|
|
2018
|
|
2017
|
|
||||||||||||
Aerospace Sales
|
|
|
|
|
|
|
|
|
|
||||||||
Commercial Aviation Original Equipment
|
$
|
2,997
|
|
|
$
|
2,833
|
|
|
$
|
2,475
|
|
|
6
|
%
|
|
14
|
%
|
Commercial Aviation Aftermarket
|
5,731
|
|
|
5,373
|
|
|
5,103
|
|
|
7
|
%
|
|
5
|
%
|
|||
Defense and Space
|
5,326
|
|
|
4,665
|
|
|
4,053
|
|
|
14
|
%
|
|
15
|
%
|
|||
Transportation Systems
|
—
|
|
|
2,622
|
|
|
3,148
|
|
|
(100
|
)%
|
|
(17
|
)%
|
|||
Total Aerospace Sales
|
14,054
|
|
|
15,493
|
|
|
14,779
|
|
|
|
|
|
|||||
Honeywell Building Technologies Sales
|
|
|
|
|
|
|
|
|
|
||||||||
Homes
|
—
|
|
|
3,928
|
|
|
4,482
|
|
|
(100
|
)%
|
|
(12
|
)%
|
|||
Buildings
|
5,717
|
|
|
5,370
|
|
|
5,295
|
|
|
6
|
%
|
|
1
|
%
|
|||
Total Honeywell Building Technologies Sales
|
5,717
|
|
|
9,298
|
|
|
9,777
|
|
|
|
|
|
|||||
Performance Materials and Technologies Sales
|
|
|
|
|
|
|
|
|
|
||||||||
UOP
|
2,890
|
|
|
2,845
|
|
|
2,753
|
|
|
2
|
%
|
|
3
|
%
|
|||
Process Solutions
|
5,146
|
|
|
4,981
|
|
|
4,795
|
|
|
3
|
%
|
|
4
|
%
|
|||
Advanced Materials
|
2,798
|
|
|
2,848
|
|
|
2,791
|
|
|
(2
|
)%
|
|
2
|
%
|
|||
Total Performance Materials and Technologies Sales
|
10,834
|
|
|
10,674
|
|
|
10,339
|
|
|
|
|
|
|||||
Safety and Productivity Solutions Sales
|
|
|
|
|
|
|
|
|
|
||||||||
Safety
|
2,215
|
|
|
2,278
|
|
|
2,169
|
|
|
(3
|
)%
|
|
5
|
%
|
|||
Productivity Solutions
|
3,889
|
|
|
4,059
|
|
|
3,470
|
|
|
(4
|
)%
|
|
17
|
%
|
|||
Total Safety and Productivity Solutions Sales
|
6,104
|
|
|
6,337
|
|
|
5,639
|
|
|
|
|
|
|||||
Net Sales
|
$
|
36,709
|
|
|
$
|
41,802
|
|
|
$
|
40,534
|
|
|
|
|
|
|
2019
|
|
2018
|
|
Change
|
|
2017
|
|
Change
|
||||||||
Net sales
|
$
|
14,054
|
|
|
$
|
15,493
|
|
|
(9
|
)%
|
|
$
|
14,779
|
|
|
5
|
%
|
Cost of products and services sold
|
9,398
|
|
|
10,837
|
|
|
|
|
10,320
|
|
|
|
|||||
Selling, general and administrative and other expenses
|
1,049
|
|
|
1,153
|
|
|
|
|
1,171
|
|
|
|
|||||
Segment profit
|
$
|
3,607
|
|
|
$
|
3,503
|
|
|
3
|
%
|
|
$
|
3,288
|
|
|
7
|
%
|
Factors Contributing to Year-Over-Year Change
|
2019 vs. 2018
|
|
2018 vs. 2017
|
||||||||
Sales
|
|
Segment
Profit
|
|
Sales
|
|
Segment
Profit
|
|||||
Organic
|
9
|
%
|
|
21
|
%
|
|
9
|
%
|
|
9
|
%
|
Foreign currency translation
|
—
|
%
|
|
—
|
%
|
|
1
|
%
|
|
1
|
%
|
Acquisitions, divestitures and other, net
|
(18
|
)%
|
|
(18
|
)%
|
|
(5
|
)%
|
|
(3
|
)%
|
Total % Change
|
(9
|
)%
|
|
3
|
%
|
|
5
|
%
|
|
7
|
%
|
•
|
Commercial Aviation Original Equipment sales increased 6% (increased 6% organic) primarily due to increased demand from business aviation original equipment manufacturers (OEM).
|
•
|
Commercial Aviation Aftermarket sales increased 7% (increased 7% organic) primarily due to growth in air transport and regional and business aviation.
|
•
|
Defense and Space sales increased 14% (increased 14% organic) primarily driven by growth in U.S. and international defense.
|
|
2019
|
|
2018
|
|
Change
|
|
2017
|
|
Change
|
||||||||
Net sales
|
$
|
5,717
|
|
|
$
|
9,298
|
|
|
(39
|
)%
|
|
$
|
9,777
|
|
|
(5
|
)%
|
Cost of products and services sold
|
3,444
|
|
|
6,066
|
|
|
|
|
6,430
|
|
|
|
|||||
Selling, general and administrative and other expenses
|
1,108
|
|
|
1,624
|
|
|
|
|
1,697
|
|
|
|
|||||
Segment profit
|
$
|
1,165
|
|
|
$
|
1,608
|
|
|
(28
|
)%
|
|
$
|
1,650
|
|
|
(3
|
)%
|
Factors Contributing to Year-Over-Year Change
|
2019 vs. 2018
|
|
2018 vs. 2017
|
||||||||
Sales
|
|
Segment
Profit
|
|
Sales
|
|
Segment
Profit
|
|||||
Organic
|
5
|
%
|
|
8
|
%
|
|
3
|
%
|
|
5
|
%
|
Foreign currency translation
|
(2
|
)%
|
|
(2
|
)%
|
|
1
|
%
|
|
1
|
%
|
Acquisitions, divestitures and other, net
|
(42
|
)%
|
|
(34
|
)%
|
|
(9
|
)%
|
|
(9
|
)%
|
Total % Change
|
(39
|
)%
|
|
(28
|
)%
|
|
(5
|
)%
|
|
(3
|
)%
|
•
|
Sales in Building Technologies increased 6% (increased 5% organic) due to the organic growth in both Products and Building Solutions, partially offset by the unfavorable impact of foreign currency translation.
|
|
2019
|
|
2018
|
|
Change
|
|
2017
|
|
Change
|
||||||||
Net sales
|
$
|
10,834
|
|
|
$
|
10,674
|
|
|
1
|
%
|
|
$
|
10,339
|
|
|
3
|
%
|
Cost of products and services sold
|
6,989
|
|
|
6,948
|
|
|
|
|
6,764
|
|
|
|
|||||
Selling, general and administrative and other expenses
|
1,412
|
|
|
1,398
|
|
|
|
|
1,369
|
|
|
|
|||||
Segment profit
|
$
|
2,433
|
|
|
$
|
2,328
|
|
|
5
|
%
|
|
$
|
2,206
|
|
|
6
|
%
|
Factors Contributing to Year-Over-Year Change
|
2019 vs. 2018
|
|
2018 vs. 2017
|
||||||||
Sales
|
|
Segment
Profit
|
|
Sales
|
|
Segment
Profit
|
|||||
Organic
|
4
|
%
|
|
6
|
%
|
|
2
|
%
|
|
5
|
%
|
Foreign currency translation
|
(3
|
)%
|
|
(1
|
)%
|
|
1
|
%
|
|
1
|
%
|
Acquisitions, divestitures and other, net
|
—
|
|
|
—
|
|
|
—
|
%
|
|
—
|
%
|
Total % Change
|
1
|
%
|
|
5
|
%
|
|
3
|
%
|
|
6
|
%
|
•
|
UOP sales increased 2% (increased 3% organic) driven primarily by increases in catalyst sales, project volumes, and licensing, partially offset by lower gas processing volumes and the unfavorable impact of foreign currency translation.
|
•
|
Process Solutions sales increased 3% (increased 6% organic) driven primarily by increases in maintenance and migration services, project volumes, field products, and software sales, partially offset by the unfavorable impact of foreign currency translation.
|
•
|
Advanced Materials sales decreased 2% (flat organic) driven primarily by the unfavorable impact of foreign currency translation and decreased volumes in specialty products, partially offset by growth in fluorine products sales.
|
|
2019
|
|
2018
|
|
Change
|
|
2017
|
|
Change
|
||||||||
Net sales
|
$
|
6,104
|
|
|
$
|
6,337
|
|
|
(4
|
)%
|
|
$
|
5,639
|
|
|
12
|
%
|
Cost of products and services sold
|
4,158
|
|
|
4,205
|
|
|
|
|
3,714
|
|
|
|
|||||
Selling, general and administrative and other expenses
|
1,156
|
|
|
1,100
|
|
|
|
|
1,073
|
|
|
|
|||||
Segment profit
|
$
|
790
|
|
|
$
|
1,032
|
|
|
(23
|
)%
|
|
$
|
852
|
|
|
21
|
%
|
Factors Contributing to Year-Over-Year Change
|
2019 vs. 2018
|
|
2018 vs. 2017
|
||||||||
Sales
|
|
Segment
Profit
|
|
Sales
|
|
Segment
Profit
|
|||||
Organic
|
(4
|
)%
|
|
(23
|
)%
|
|
11
|
%
|
|
20
|
%
|
Foreign currency translation
|
(2
|
)%
|
|
(2
|
)%
|
|
1
|
%
|
|
1
|
%
|
Acquisitions, divestitures and other, net
|
2
|
%
|
|
2
|
%
|
|
—
|
%
|
|
—
|
%
|
Total % Change
|
(4
|
)%
|
|
(23
|
)%
|
|
12
|
%
|
|
21
|
%
|
•
|
Sales in Safety decreased 3% (decreased 1% organic) primarily due to the unfavorable impact of foreign currency translation and lower organic sales in Industrial Safety.
|
•
|
Sales in Productivity Solutions decreased 4% (decreased 6% organic) primarily due to lower organic sales in Productivity Products and the unfavorable impact of foreign currency translation, partially offset by acquisitions.
|
|
Years Ended December 31,
|
||||||||||
2019
|
|
2018
|
|
2017
|
|||||||
Cash provided by (used for):
|
|
|
|
|
|
||||||
Operating activities
|
$
|
6,897
|
|
|
$
|
6,434
|
|
|
$
|
5,966
|
|
Investing activities
|
(533
|
)
|
|
1,027
|
|
|
(3,574
|
)
|
|||
Financing activities
|
(6,600
|
)
|
|
(5,032
|
)
|
|
(3,516
|
)
|
|||
Effect of exchange rate changes on cash
|
16
|
|
|
(201
|
)
|
|
340
|
|
|||
Net (decrease) increase in cash and cash equivalents
|
$
|
(220
|
)
|
|
$
|
2,228
|
|
|
$
|
(784
|
)
|
•
|
Capital expenditures—we expect to spend approximately $900 million for capital expenditures in 2020 primarily for growth, production and capacity expansion, cost reduction, maintenance, and replacement.
|
•
|
Share repurchases—under our share repurchase program, $7.0 billion is available as of December 31, 2019 for additional share repurchases. We expect to repurchase outstanding shares from time to time to offset the dilutive impact of employee stock-based compensation plans, including option exercises, restricted unit vesting and matching contributions under our savings plans. Additionally, we will seek to reduce share count via share repurchases as and when attractive opportunities arise. The amount and timing of future repurchases may vary depending on market conditions and our level of operating, financing and other investing activities.
|
•
|
Dividends—we increased our quarterly dividend rate by 10% to $0.90 per share of common stock effective with the fourth quarter 2019 dividend. We intend to continue to pay quarterly dividends in 2020.
|
|
Total(6)(7)
|
|
Payments by Period
|
|
Thereafter
|
||||||||||||||
2020
|
|
2021-
2022 |
|
2023-
2024 |
|
||||||||||||||
Long-term debt, including finance leases(1)
|
$
|
12,486
|
|
|
$
|
1,376
|
|
|
$
|
3,617
|
|
|
$
|
2,513
|
|
|
$
|
4,980
|
|
Interest payments on long-term debt, including finance leases
|
3,100
|
|
|
327
|
|
|
577
|
|
|
434
|
|
|
1,762
|
|
|||||
Operating lease liabilities
|
790
|
|
|
195
|
|
|
290
|
|
|
160
|
|
|
145
|
|
|||||
Purchase obligations(2)
|
1,606
|
|
|
782
|
|
|
586
|
|
|
238
|
|
|
—
|
|
|||||
Estimated environmental liability payments(3)
|
709
|
|
|
222
|
|
|
257
|
|
|
177
|
|
|
53
|
|
|||||
Asbestos related liability payments(4)
|
2,357
|
|
|
361
|
|
|
612
|
|
|
438
|
|
|
946
|
|
|||||
Asbestos insurance recoveries(5)
|
(434
|
)
|
|
(42
|
)
|
|
(108
|
)
|
|
(64
|
)
|
|
(220
|
)
|
|||||
|
$
|
20,614
|
|
|
$
|
3,221
|
|
|
$
|
5,831
|
|
|
$
|
3,896
|
|
|
$
|
7,666
|
|
(1)
|
Assumes all long-term debt is outstanding until scheduled maturity.
|
(2)
|
Purchase obligations are entered into with various vendors in the normal course of business and are consistent with our expected requirements.
|
(3)
|
The payment amounts in the table only reflect the environmental liabilities which are probable and reasonably estimable as of December 31, 2019.
|
(4)
|
These amounts are estimates of asbestos related cash payments for NARCO and Bendix based on our asbestos related liabilities which are probable and reasonably estimable as of December 31, 2019. See Asbestos Matters in Note 20 Commitments and Contingencies of Notes to Consolidated Financial Statements for additional information.
|
(5)
|
These amounts represent our insurance recoveries that are deemed probable for asbestos related liabilities as of December 31, 2019. See Asbestos Matters in Note 20 Commitments and Contingencies of Notes to Consolidated Financial Statements for additional information.
|
(6)
|
The table excludes tax liability payments, including those for unrecognized tax benefits. See Note 5 Income Taxes of Notes to Consolidated Financial Statements for additional information.
|
(7)
|
The table excludes expected proceeds from the indemnification and reimbursement agreements entered into with Garrett and Resideo. See Note 20 Commitments and Contingencies of Notes to Consolidated Financial Statements for additional information.
|
|
Face or
Notional
Amount
|
|
Carrying
Value(1)
|
|
Fair
Value(1)
|
|
Estimated
Increase
(Decrease)
in Fair
Value(2)
|
||||||||
December 31, 2019
|
|
|
|
|
|
|
|
||||||||
Interest Rate Sensitive Instruments
|
|
|
|
|
|
|
|
||||||||
Long-term debt (including current maturities)
|
$
|
12,486
|
|
|
$
|
(12,486
|
)
|
|
$
|
(13,578
|
)
|
|
$
|
(677
|
)
|
Interest rate swap agreements
|
3,950
|
|
|
25
|
|
|
25
|
|
|
(72
|
)
|
||||
Foreign Exchange Rate Sensitive Instruments
|
|
|
|
|
|
|
|
||||||||
Foreign currency exchange contracts(3)
|
12,746
|
|
|
270
|
|
|
270
|
|
|
(676
|
)
|
||||
Cross currency swap agreements
|
1,200
|
|
|
51
|
|
|
51
|
|
|
(115
|
)
|
||||
December 31, 2018
|
|
|
|
|
|
|
|
||||||||
Interest Rate Sensitive Instruments
|
|
|
|
|
|
|
|
||||||||
Long-term debt (including current maturities)
|
$
|
12,628
|
|
|
$
|
(12,628
|
)
|
|
$
|
(13,133
|
)
|
|
$
|
(654
|
)
|
Interest rate swap agreements
|
2,600
|
|
|
(45
|
)
|
|
(45
|
)
|
|
(83
|
)
|
||||
Foreign Exchange Rate Sensitive Instruments
|
|
|
|
|
|
|
|
||||||||
Foreign currency exchange contracts(3)
|
14,995
|
|
|
115
|
|
|
115
|
|
|
(742
|
)
|
||||
Cross currency swap agreements
|
1,200
|
|
|
32
|
|
|
32
|
|
|
(117
|
)
|
(1)
|
Asset or (liability)
|
(2)
|
A hypothetical immediate one percentage point decrease in interest rates across all maturities and a potential change in fair value of foreign exchange rate sensitive instruments based on a 10% strengthening of the U.S. dollar versus local currency exchange rates across all maturities will result in a change in fair value approximately equal to the inverse of the amount disclosed in the table.
|
(3)
|
Changes in the fair value of foreign currency exchange contracts are offset by changes in the fair value, cash flows, or net investments of underlying hedged foreign currency transactions or foreign operations.
|
Change in Assumption
|
Impact on 2020
Pension Ongoing
Expense
|
|
Impact on PBO
|
0.25 percentage point decrease in discount rate
|
Decrease $26 million
|
|
Increase $480 million
|
0.25 percentage point increase in discount rate
|
Increase $25 million
|
|
Decrease $470 million
|
0.25 percentage point decrease in expected rate of return on assets
|
Increase $46 million
|
|
—
|
0.25 percentage point increase in expected rate of return on assets
|
Decrease $46 million
|
|
—
|
•
|
Significant under-performance (i.e., declines in sales, earnings or cash flows) of a business or product line in relation to expectations;
|
•
|
Annual operating plans or strategic plan outlook that indicate an unfavorable trend in operating performance of a business or product line;
|
•
|
Significant negative industry or economic trends; or
|
•
|
Significant changes or planned changes in our use of the assets.
|
|
Years Ended December 31,
|
||||||||||
2019
|
|
2018
|
|
2017
|
|||||||
|
(Dollars in millions,
except per share amounts)
|
||||||||||
Product sales
|
$
|
27,629
|
|
|
$
|
32,848
|
|
|
$
|
32,317
|
|
Service sales
|
9,080
|
|
|
8,954
|
|
|
8,217
|
|
|||
Net sales
|
36,709
|
|
|
41,802
|
|
|
40,534
|
|
|||
Costs, expenses and other
|
|
|
|
|
|
||||||
Cost of products sold
|
19,269
|
|
|
23,634
|
|
|
23,176
|
|
|||
Cost of services sold
|
5,070
|
|
|
5,412
|
|
|
4,968
|
|
|||
|
24,339
|
|
|
29,046
|
|
|
28,144
|
|
|||
Selling, general and administrative expenses
|
5,519
|
|
|
6,051
|
|
|
6,087
|
|
|||
Other (income) expense
|
(1,065
|
)
|
|
(1,149
|
)
|
|
(963
|
)
|
|||
Interest and other financial charges
|
357
|
|
|
367
|
|
|
316
|
|
|||
|
29,150
|
|
|
34,315
|
|
|
33,584
|
|
|||
Income before taxes
|
7,559
|
|
|
7,487
|
|
|
6,950
|
|
|||
Tax expense
|
1,329
|
|
|
659
|
|
|
5,362
|
|
|||
Net income
|
6,230
|
|
|
6,828
|
|
|
1,588
|
|
|||
Less: Net income attributable to the noncontrolling interest
|
87
|
|
|
63
|
|
|
43
|
|
|||
Net income attributable to Honeywell
|
$
|
6,143
|
|
|
$
|
6,765
|
|
|
$
|
1,545
|
|
Earnings per share of common stock—basic
|
$
|
8.52
|
|
|
$
|
9.10
|
|
|
$
|
2.03
|
|
Earnings per share of common stock—assuming dilution
|
$
|
8.41
|
|
|
$
|
8.98
|
|
|
$
|
2.00
|
|
|
Years Ended December 31,
|
||||||||||
2019
|
|
2018
|
|
2017
|
|||||||
|
(Dollars in millions)
|
||||||||||
Net income
|
$
|
6,230
|
|
|
$
|
6,828
|
|
|
$
|
1,588
|
|
Other comprehensive income (loss), net of tax
|
|
|
|
|
|
||||||
Foreign exchange translation adjustment
|
143
|
|
|
(685
|
)
|
|
(37
|
)
|
|||
Actuarial gains (losses) recognized
|
162
|
|
|
(602
|
)
|
|
753
|
|
|||
Prior service credit (cost) recognized
|
1
|
|
|
2
|
|
|
(59
|
)
|
|||
Prior service credit recognized during year
|
(79
|
)
|
|
(74
|
)
|
|
(70
|
)
|
|||
Actuarial (gains) losses recognized during year
|
16
|
|
|
35
|
|
|
83
|
|
|||
Settlements and curtailments
|
—
|
|
|
2
|
|
|
19
|
|
|||
Foreign exchange translation and other
|
(14
|
)
|
|
31
|
|
|
(49
|
)
|
|||
Pensions and other postretirement benefit adjustments
|
86
|
|
|
(606
|
)
|
|
677
|
|
|||
Cash flow hedges recognized in other comprehensive income
|
103
|
|
|
89
|
|
|
(101
|
)
|
|||
Less: Reclassification adjustment for gains (losses) included in net income
|
92
|
|
|
4
|
|
|
60
|
|
|||
Changes in fair value of cash flow hedges
|
11
|
|
|
85
|
|
|
(161
|
)
|
|||
Other comprehensive income (loss), net of tax
|
240
|
|
|
(1,206
|
)
|
|
479
|
|
|||
Comprehensive income
|
6,470
|
|
|
5,622
|
|
|
2,067
|
|
|||
Less: Comprehensive income attributable to the noncontrolling interest
|
82
|
|
|
53
|
|
|
51
|
|
|||
Comprehensive income attributable to Honeywell
|
$
|
6,388
|
|
|
$
|
5,569
|
|
|
$
|
2,016
|
|
|
December 31,
|
||||||
2019
|
|
2018
|
|||||
|
(Dollars in millions)
|
||||||
ASSETS
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
9,067
|
|
|
$
|
9,287
|
|
Short-term investments
|
1,349
|
|
|
1,623
|
|
||
Accounts receivable—net
|
7,493
|
|
|
7,508
|
|
||
Inventories
|
4,421
|
|
|
4,326
|
|
||
Other current assets
|
1,973
|
|
|
1,618
|
|
||
Total current assets
|
24,303
|
|
|
24,362
|
|
||
Investments and long-term receivables
|
588
|
|
|
742
|
|
||
Property, plant and equipment—net
|
5,325
|
|
|
5,296
|
|
||
Goodwill
|
15,563
|
|
|
15,546
|
|
||
Other intangible assets—net
|
3,734
|
|
|
4,139
|
|
||
Insurance recoveries for asbestos related liabilities
|
392
|
|
|
437
|
|
||
Deferred income taxes
|
86
|
|
|
382
|
|
||
Other assets
|
8,688
|
|
|
6,869
|
|
||
Total assets
|
$
|
58,679
|
|
|
$
|
57,773
|
|
LIABILITIES
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
5,730
|
|
|
$
|
5,607
|
|
Commercial paper and other short-term borrowings
|
3,516
|
|
|
3,586
|
|
||
Current maturities of long-term debt
|
1,376
|
|
|
2,872
|
|
||
Accrued liabilities
|
7,476
|
|
|
6,859
|
|
||
Total current liabilities
|
18,098
|
|
|
18,924
|
|
||
Long-term debt
|
11,110
|
|
|
9,756
|
|
||
Deferred income taxes
|
1,670
|
|
|
1,713
|
|
||
Postretirement benefit obligations other than pensions
|
326
|
|
|
344
|
|
||
Asbestos related liabilities
|
1,996
|
|
|
2,269
|
|
||
Other liabilities
|
6,766
|
|
|
6,402
|
|
||
Redeemable noncontrolling interest
|
7
|
|
|
7
|
|
||
SHAREOWNERS’ EQUITY
|
|
|
|
||||
Capital—common stock issued
|
958
|
|
|
958
|
|
||
—additional paid-in capital
|
6,876
|
|
|
6,452
|
|
||
Common stock held in treasury, at cost
|
(23,836
|
)
|
|
(19,771
|
)
|
||
Accumulated other comprehensive income (loss)
|
(3,197
|
)
|
|
(3,437
|
)
|
||
Retained earnings
|
37,693
|
|
|
33,978
|
|
||
Total Honeywell shareowners’ equity
|
18,494
|
|
|
18,180
|
|
||
Noncontrolling interest
|
212
|
|
|
178
|
|
||
Total shareowners’ equity
|
18,706
|
|
|
18,358
|
|
||
Total liabilities, redeemable noncontrolling interest and shareowners’ equity
|
$
|
58,679
|
|
|
$
|
57,773
|
|
|
Years Ended December 31,
|
||||||||||
2019
|
|
2018
|
|
2017
|
|||||||
|
(Dollars in millions)
|
||||||||||
Cash flows from operating activities:
|
|
|
|
|
|
||||||
Net income
|
$
|
6,230
|
|
|
$
|
6,828
|
|
|
$
|
1,588
|
|
Less: Net income attributable to the noncontrolling interest
|
87
|
|
|
63
|
|
|
43
|
|
|||
Net income attributable to Honeywell
|
6,143
|
|
|
6,765
|
|
|
1,545
|
|
|||
Adjustments to reconcile net income attributable to Honeywell to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Depreciation
|
673
|
|
|
721
|
|
|
717
|
|
|||
Amortization
|
415
|
|
|
395
|
|
|
398
|
|
|||
(Gain) loss on sale of non-strategic businesses and assets
|
1
|
|
|
—
|
|
|
7
|
|
|||
Repositioning and other charges
|
546
|
|
|
1,091
|
|
|
973
|
|
|||
Net payments for repositioning and other charges
|
(376
|
)
|
|
(652
|
)
|
|
(628
|
)
|
|||
Pension and other postretirement income
|
(516
|
)
|
|
(987
|
)
|
|
(647
|
)
|
|||
Pension and other postretirement benefit payments
|
(78
|
)
|
|
(80
|
)
|
|
(106
|
)
|
|||
Stock compensation expense
|
153
|
|
|
175
|
|
|
176
|
|
|||
Deferred income taxes
|
179
|
|
|
(586
|
)
|
|
2,452
|
|
|||
Other
|
(287
|
)
|
|
(694
|
)
|
|
1,642
|
|
|||
Changes in assets and liabilities, net of the effects of acquisitions and divestitures:
|
|
|
|
|
|
||||||
Accounts receivable
|
11
|
|
|
(236
|
)
|
|
(682
|
)
|
|||
Inventories
|
(100
|
)
|
|
(503
|
)
|
|
(259
|
)
|
|||
Other current assets
|
(430
|
)
|
|
218
|
|
|
(568
|
)
|
|||
Accounts payable
|
118
|
|
|
733
|
|
|
924
|
|
|||
Accrued liabilities
|
445
|
|
|
74
|
|
|
22
|
|
|||
Net cash provided by (used for) operating activities
|
6,897
|
|
|
6,434
|
|
|
5,966
|
|
|||
Cash flows from investing activities:
|
|
|
|
|
|
||||||
Expenditures for property, plant and equipment
|
(839
|
)
|
|
(828
|
)
|
|
(1,031
|
)
|
|||
Proceeds from disposals of property, plant and equipment
|
43
|
|
|
15
|
|
|
86
|
|
|||
Increase in investments
|
(4,253
|
)
|
|
(4,059
|
)
|
|
(6,743
|
)
|
|||
Decrease in investments
|
4,464
|
|
|
6,032
|
|
|
4,414
|
|
|||
Cash paid for acquisitions, net of cash acquired
|
(50
|
)
|
|
(535
|
)
|
|
(82
|
)
|
|||
Other
|
102
|
|
|
402
|
|
|
(218
|
)
|
|||
Net cash provided by (used for) investing activities
|
(533
|
)
|
|
1,027
|
|
|
(3,574
|
)
|
|||
Cash flows from financing activities:
|
|
|
|
|
|
||||||
Proceeds from issuance of commercial paper and other short-term borrowings
|
14,199
|
|
|
23,891
|
|
|
13,701
|
|
|||
Payments of commercial paper and other short-term borrowings
|
(14,199
|
)
|
|
(24,095
|
)
|
|
(13,532
|
)
|
|||
Proceeds from issuance of common stock
|
498
|
|
|
267
|
|
|
520
|
|
|||
Proceeds from issuance of long-term debt
|
2,726
|
|
|
27
|
|
|
1,238
|
|
|||
Payments of long-term debt
|
(2,903
|
)
|
|
(1,330
|
)
|
|
(292
|
)
|
|||
Repurchases of common stock
|
(4,400
|
)
|
|
(4,000
|
)
|
|
(2,889
|
)
|
|||
Cash dividends paid
|
(2,442
|
)
|
|
(2,272
|
)
|
|
(2,119
|
)
|
|||
Pre-separation funding
|
—
|
|
|
2,801
|
|
|
—
|
|
|||
Spin-off cash
|
—
|
|
|
(179
|
)
|
|
—
|
|
|||
Other
|
(79
|
)
|
|
(142
|
)
|
|
(143
|
)
|
|||
Net cash provided by (used for) financing activities
|
(6,600
|
)
|
|
(5,032
|
)
|
|
(3,516
|
)
|
|||
Effect of foreign exchange rate changes on cash and cash equivalents
|
16
|
|
|
(201
|
)
|
|
340
|
|
|||
Net increase (decrease) in cash and cash equivalents
|
(220
|
)
|
|
2,228
|
|
|
(784
|
)
|
|||
Cash and cash equivalents at beginning of period
|
9,287
|
|
|
7,059
|
|
|
7,843
|
|
|||
Cash and cash equivalents at end of period
|
$
|
9,067
|
|
|
$
|
9,287
|
|
|
$
|
7,059
|
|
|
Years Ended December 31,
|
|||||||||||||||||||
2019
|
|
2018
|
|
2017
|
||||||||||||||||
Shares
|
|
$
|
|
Shares
|
|
$
|
|
Shares
|
|
$
|
||||||||||
|
(in millions)
|
|||||||||||||||||||
Common stock, par value
|
957.6
|
|
|
958
|
|
|
957.6
|
|
|
958
|
|
|
957.6
|
|
|
958
|
|
|||
Additional paid-in capital
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Beginning balance
|
|
|
6,452
|
|
|
|
|
6,212
|
|
|
|
|
5,781
|
|
||||||
Issued for employee savings and option plans
|
|
|
271
|
|
|
|
|
65
|
|
|
|
|
255
|
|
||||||
Stock-based compensation expense
|
|
|
153
|
|
|
|
|
175
|
|
|
|
|
176
|
|
||||||
Ending balance
|
|
|
6,876
|
|
|
|
|
6,452
|
|
|
|
|
6,212
|
|
||||||
Treasury stock
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Beginning balance
|
(228.0
|
)
|
|
(19,771
|
)
|
|
(206.7
|
)
|
|
(15,914
|
)
|
|
(196.8
|
)
|
|
(13,366
|
)
|
|||
Reacquired stock or repurchases of common stock
|
(26.5
|
)
|
|
(4,400
|
)
|
|
(26.5
|
)
|
|
(4,000
|
)
|
|
(20.5
|
)
|
|
(2,889
|
)
|
|||
Issued for employee savings and option plans
|
8.0
|
|
|
335
|
|
|
5.2
|
|
|
143
|
|
|
10.6
|
|
|
341
|
|
|||
Ending balance
|
(246.5
|
)
|
|
(23,836
|
)
|
|
(228.0
|
)
|
|
(19,771
|
)
|
|
(206.7
|
)
|
|
(15,914
|
)
|
|||
Retained earnings
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Beginning balance
|
|
|
33,978
|
|
|
|
|
27,481
|
|
|
|
|
28,046
|
|
||||||
Adoption of new accounting standards
|
|
|
—
|
|
|
|
|
264
|
|
|
|
|
—
|
|
||||||
Net income attributable to Honeywell
|
|
|
6,143
|
|
|
|
|
6,765
|
|
|
|
|
1,545
|
|
||||||
Dividends on common stock
|
|
|
(2,428
|
)
|
|
|
|
(2,279
|
)
|
|
|
|
(2,101
|
)
|
||||||
Spin-offs
|
|
|
—
|
|
|
|
|
1,749
|
|
|
|
|
(9
|
)
|
||||||
Redemption value adjustment
|
|
|
—
|
|
|
|
|
(2
|
)
|
|
|
|
—
|
|
||||||
Ending balance
|
|
|
37,693
|
|
|
|
|
33,978
|
|
|
|
|
27,481
|
|
||||||
Accumulated other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Beginning balance
|
|
|
(3,437
|
)
|
|
|
|
(2,235
|
)
|
|
|
|
(2,714
|
)
|
||||||
Foreign exchange translation adjustment
|
|
|
143
|
|
|
|
|
(728
|
)
|
|
|
|
(37
|
)
|
||||||
Pensions and other postretirement benefit adjustments
|
|
|
86
|
|
|
|
|
(559
|
)
|
|
|
|
677
|
|
||||||
Changes in fair value of cash flow hedges
|
|
|
11
|
|
|
|
|
85
|
|
|
|
|
(161
|
)
|
||||||
Ending balance
|
|
|
(3,197
|
)
|
|
|
|
(3,437
|
)
|
|
|
|
(2,235
|
)
|
||||||
Noncontrolling interest
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Beginning balance
|
|
|
178
|
|
|
|
|
163
|
|
|
|
|
178
|
|
||||||
Acquisitions, divestitures, and other
|
|
|
(3
|
)
|
|
|
|
(12
|
)
|
|
|
|
(11
|
)
|
||||||
Net income attributable to noncontrolling interest
|
|
|
87
|
|
|
|
|
63
|
|
|
|
|
43
|
|
||||||
Foreign exchange translation adjustment
|
|
|
(5
|
)
|
|
|
|
(10
|
)
|
|
|
|
8
|
|
||||||
Dividends paid
|
|
|
(45
|
)
|
|
|
|
(26
|
)
|
|
|
|
(55
|
)
|
||||||
Ending balance
|
|
|
212
|
|
|
|
|
178
|
|
|
|
|
163
|
|
||||||
Total shareowners’ equity
|
711.1
|
|
|
18,706
|
|
|
729.6
|
|
|
18,358
|
|
|
750.9
|
|
|
16,665
|
|
|||
Cash dividends per share of common stock
|
|
|
$
|
3.360
|
|
|
|
|
$
|
3.055
|
|
|
|
|
$
|
2.740
|
|
|
Years Ended December 31,
|
||||||||||
2019
|
|
2018
|
|
2017
|
|||||||
Severance
|
$
|
260
|
|
|
$
|
289
|
|
|
$
|
305
|
|
Asset impairments
|
95
|
|
|
162
|
|
|
142
|
|
|||
Exit costs
|
83
|
|
|
79
|
|
|
60
|
|
|||
Reserve adjustments
|
(5
|
)
|
|
(10
|
)
|
|
(16
|
)
|
|||
Total net repositioning charge
|
433
|
|
|
520
|
|
|
491
|
|
|||
Asbestos related litigation charges, net of insurance and reimbursements
|
42
|
|
|
163
|
|
|
159
|
|
|||
Probable and reasonably estimable environmental liabilities, net of reimbursements
|
59
|
|
|
345
|
|
|
287
|
|
|||
Other
|
12
|
|
|
63
|
|
|
36
|
|
|||
Total net repositioning and other charges
|
$
|
546
|
|
|
$
|
1,091
|
|
|
$
|
973
|
|
|
Years Ended December 31,
|
||||||||||
2019
|
|
2018
|
|
2017
|
|||||||
Cost of products and services sold
|
$
|
276
|
|
|
$
|
811
|
|
|
$
|
736
|
|
Selling, general and administrative expenses
|
270
|
|
|
239
|
|
|
187
|
|
|||
Other (income) expense
|
—
|
|
|
41
|
|
|
50
|
|
|||
|
$
|
546
|
|
|
$
|
1,091
|
|
|
$
|
973
|
|
|
Years Ended December 31,
|
||||||||||
2019
|
|
2018
|
|
2017
|
|||||||
Aerospace
|
$
|
33
|
|
|
$
|
154
|
|
|
$
|
248
|
|
Honeywell Building Technologies
|
108
|
|
|
111
|
|
|
78
|
|
|||
Performance Materials and Technologies
|
93
|
|
|
191
|
|
|
102
|
|
|||
Safety and Productivity Solutions
|
71
|
|
|
133
|
|
|
51
|
|
|||
Corporate
|
241
|
|
|
502
|
|
|
494
|
|
|||
|
$
|
546
|
|
|
$
|
1,091
|
|
|
$
|
973
|
|
|
Severance
Costs
|
|
Asset
Impairments
|
|
Exit
Costs
|
|
Total
|
||||||||
Balance at December 31, 2016
|
$
|
298
|
|
|
$
|
—
|
|
|
$
|
33
|
|
|
$
|
331
|
|
Charges
|
305
|
|
|
142
|
|
|
60
|
|
|
507
|
|
||||
Usage—cash
|
(163
|
)
|
|
—
|
|
|
(14
|
)
|
|
(177
|
)
|
||||
Usage—noncash
|
—
|
|
|
(142
|
)
|
|
—
|
|
|
(142
|
)
|
||||
Adjustments and reclassifications
|
(13
|
)
|
|
—
|
|
|
(10
|
)
|
|
(23
|
)
|
||||
Foreign currency translation
|
15
|
|
|
—
|
|
|
2
|
|
|
17
|
|
||||
Balance at December 31, 2017
|
442
|
|
|
—
|
|
|
71
|
|
|
513
|
|
||||
Charges
|
289
|
|
|
162
|
|
|
79
|
|
|
530
|
|
||||
Usage—cash
|
(218
|
)
|
|
—
|
|
|
(67
|
)
|
|
(285
|
)
|
||||
Usage—noncash
|
—
|
|
|
(163
|
)
|
|
—
|
|
|
(163
|
)
|
||||
Divestitures
|
(11
|
)
|
|
—
|
|
|
(3
|
)
|
|
(14
|
)
|
||||
Adjustments
|
(8
|
)
|
|
1
|
|
|
(3
|
)
|
|
(10
|
)
|
||||
Foreign currency translation
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
||||
Balance at December 31, 2018
|
489
|
|
|
—
|
|
|
77
|
|
|
566
|
|
||||
Charges
|
260
|
|
|
95
|
|
|
83
|
|
|
438
|
|
||||
Usage—cash
|
(186
|
)
|
|
—
|
|
|
(63
|
)
|
|
(249
|
)
|
||||
Usage—noncash
|
—
|
|
|
(100
|
)
|
|
—
|
|
|
(100
|
)
|
||||
Divestitures
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Adjustments
|
(8
|
)
|
|
5
|
|
|
(2
|
)
|
|
(5
|
)
|
||||
Foreign currency translation
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
||||
Balance at December 31, 2019
|
$
|
555
|
|
|
$
|
—
|
|
|
$
|
96
|
|
|
$
|
651
|
|
|
Years Ended December 31,
|
||||||||||
2019
|
|
2018
|
|
2017
|
|||||||
Interest income
|
$
|
(255
|
)
|
|
$
|
(217
|
)
|
|
$
|
(151
|
)
|
Pension ongoing income—non-service
|
(606
|
)
|
|
(1,165
|
)
|
|
(875
|
)
|
|||
Other postretirement income—non-service
|
(47
|
)
|
|
(32
|
)
|
|
(21
|
)
|
|||
Equity income of affiliated companies
|
(52
|
)
|
|
(50
|
)
|
|
(39
|
)
|
|||
Loss (gain) on sale of non-strategic business and assets
|
1
|
|
|
—
|
|
|
7
|
|
|||
Foreign exchange
|
(120
|
)
|
|
(63
|
)
|
|
18
|
|
|||
Separation costs
|
—
|
|
|
321
|
|
|
16
|
|
|||
Other (net)
|
14
|
|
|
57
|
|
|
82
|
|
|||
|
$
|
(1,065
|
)
|
|
$
|
(1,149
|
)
|
|
$
|
(963
|
)
|
|
Years Ended December 31,
|
||||||||||
2019
|
|
2018
|
|
2017
|
|||||||
U.S.
|
$
|
4,178
|
|
|
$
|
2,919
|
|
|
$
|
2,873
|
|
Non-U.S.
|
3,381
|
|
|
4,568
|
|
|
4,077
|
|
|||
|
$
|
7,559
|
|
|
$
|
7,487
|
|
|
$
|
6,950
|
|
|
Years Ended December 31,
|
||||||||||
2019
|
|
2018
|
|
2017
|
|||||||
Tax expense (benefit) consists of
|
|
|
|
|
|
||||||
Current:
|
|
|
|
|
|
||||||
U.S. Federal
|
$
|
8
|
|
|
$
|
(21
|
)
|
|
$
|
2,061
|
|
U.S. State
|
43
|
|
|
89
|
|
|
62
|
|
|||
Non-U.S.
|
1,099
|
|
|
1,177
|
|
|
787
|
|
|||
|
$
|
1,150
|
|
|
$
|
1,245
|
|
|
$
|
2,910
|
|
Deferred:
|
|
|
|
|
|
||||||
U.S. Federal
|
$
|
332
|
|
|
$
|
396
|
|
|
$
|
190
|
|
U.S. State
|
63
|
|
|
8
|
|
|
139
|
|
|||
Non-U.S.
|
(216
|
)
|
|
(990
|
)
|
|
2,123
|
|
|||
|
179
|
|
|
(586
|
)
|
|
2,452
|
|
|||
|
$
|
1,329
|
|
|
$
|
659
|
|
|
$
|
5,362
|
|
|
Years Ended December 31,
|
|||||||
2019
|
|
2018
|
|
2017
|
||||
The U.S. federal statutory income tax rate is reconciled to our effective income tax rate as follows:
|
|
|
|
|
|
|||
U.S. federal statutory income tax rate
|
21.0
|
%
|
|
21.0
|
%
|
|
35.0
|
%
|
Taxes on non-U.S. earnings(1)(2)
|
(0.5
|
)
|
|
0.2
|
|
|
(12.8
|
)
|
U.S. state income taxes(1)
|
1.1
|
|
|
1.6
|
|
|
1.4
|
|
Reserves for tax contingencies
|
2.0
|
|
|
0.3
|
|
|
1.6
|
|
Employee share-based payments
|
(1.2
|
)
|
|
(0.7
|
)
|
|
(2.9
|
)
|
U.S. Tax Reform
|
(3.6
|
)
|
|
(5.8
|
)
|
|
56.0
|
|
Reduction of taxes on unremitted earnings
|
—
|
|
|
(14.2
|
)
|
|
—
|
|
Separation tax costs
|
—
|
|
|
5.5
|
|
|
—
|
|
All other items—net
|
(1.2
|
)
|
|
0.9
|
|
|
(1.1
|
)
|
|
17.6
|
%
|
|
8.8
|
%
|
|
77.2
|
%
|
(1)
|
Net of changes in valuation allowance
|
(2)
|
Includes U.S. taxes on non-U.S. earnings
|
Deferred tax assets:
|
December 31,
|
||||||
2019
|
|
2018
|
|||||
Postretirement benefits other than pensions
|
$
|
111
|
|
|
$
|
120
|
|
Asbestos and environmental
|
531
|
|
|
589
|
|
||
Employee compensation and benefits
|
205
|
|
|
262
|
|
||
Other accruals and reserves
|
279
|
|
|
336
|
|
||
Net operating and capital losses
|
652
|
|
|
688
|
|
||
Tax credit carryforwards
|
246
|
|
|
154
|
|
||
Gross deferred tax assets
|
2,024
|
|
|
2,149
|
|
||
Valuation allowance
|
(656
|
)
|
|
(689
|
)
|
||
Total deferred tax assets
|
$
|
1,368
|
|
|
$
|
1,460
|
|
Deferred tax liabilities:
|
|
|
|
||||
Pension
|
$
|
(469
|
)
|
|
$
|
(40
|
)
|
Property, plant and equipment
|
(469
|
)
|
|
(422
|
)
|
||
Intangibles
|
(1,296
|
)
|
|
(1,553
|
)
|
||
Unremitted earnings of foreign subsidiaries
|
(419
|
)
|
|
(616
|
)
|
||
Other asset basis differences
|
(136
|
)
|
|
(110
|
)
|
||
Other
|
(163
|
)
|
|
(50
|
)
|
||
Total deferred tax liabilities
|
(2,952
|
)
|
|
(2,791
|
)
|
||
Net deferred tax liability
|
$
|
(1,584
|
)
|
|
$
|
(1,331
|
)
|
Jurisdiction
|
Expiration
Period
|
|
Net Operating
and Capital Loss
Carryforwards
|
|
Tax Credit
Carryforwards
|
||||
U.S. Federal
|
2039
|
|
$
|
16
|
|
|
$
|
89
|
|
U.S. State
|
2039
|
|
389
|
|
|
20
|
|
||
Non-U.S.
|
2039
|
|
277
|
|
|
142
|
|
||
Non-U.S.
|
Indefinite
|
|
2,324
|
|
|
—
|
|
||
|
|
|
$
|
3,006
|
|
|
$
|
251
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
Change in unrecognized tax benefits:
|
|
|
|
|
|
||||||
Balance at beginning of year
|
$
|
1,089
|
|
|
$
|
947
|
|
|
$
|
877
|
|
Gross increases related to current period tax positions
|
51
|
|
|
370
|
|
|
94
|
|
|||
Gross increases related to prior periods tax positions
|
83
|
|
|
82
|
|
|
153
|
|
|||
Gross decreases related to prior periods tax positions
|
(34
|
)
|
|
(201
|
)
|
|
(91
|
)
|
|||
Decrease related to resolutions of audits with tax authorities
|
(3
|
)
|
|
(40
|
)
|
|
(76
|
)
|
|||
Expiration of the statute of limitations for the assessment of taxes
|
(13
|
)
|
|
(50
|
)
|
|
(54
|
)
|
|||
Foreign currency translation
|
(9
|
)
|
|
(19
|
)
|
|
44
|
|
|||
Balance at end of year
|
$
|
1,164
|
|
|
$
|
1,089
|
|
|
$
|
947
|
|
(1)
|
Includes provincial or similar local jurisdictions, as applicable.
|
Basic
|
Years Ended December 31,
|
||||||||||
2019
|
|
2018
|
|
2017
|
|||||||
Net income attributable to Honeywell
|
$
|
6,143
|
|
|
$
|
6,765
|
|
|
$
|
1,545
|
|
Weighted average shares outstanding
|
721.0
|
|
|
743.0
|
|
|
762.1
|
|
|||
Earnings per share of common stock
|
$
|
8.52
|
|
|
$
|
9.10
|
|
|
$
|
2.03
|
|
Assuming Dilution
|
Years Ended December 31,
|
||||||||||
2019
|
|
2018
|
|
2017
|
|||||||
Net income attributable to Honeywell
|
$
|
6,143
|
|
|
$
|
6,765
|
|
|
$
|
1,545
|
|
Average Shares
|
|
|
|
|
|
||||||
Weighted average shares outstanding
|
721.0
|
|
|
743.0
|
|
|
762.1
|
|
|||
Dilutive securities issuable—stock plans
|
9.3
|
|
|
10.0
|
|
|
10.0
|
|
|||
Total weighted average diluted shares outstanding
|
730.3
|
|
|
753.0
|
|
|
772.1
|
|
|||
Earnings per share of common stock—assuming dilution
|
$
|
8.41
|
|
|
$
|
8.98
|
|
|
$
|
2.00
|
|
|
Year Ended December 31,
|
||||||
|
2019
|
|
2018
|
||||
Aerospace
|
|
|
|
||||
Commercial Aviation Original Equipment
|
$
|
2,997
|
|
|
$
|
2,833
|
|
Commercial Aviation Aftermarket
|
5,731
|
|
|
5,373
|
|
||
Defense and Space
|
5,326
|
|
|
4,665
|
|
||
Transportation Systems
|
—
|
|
|
2,622
|
|
||
|
14,054
|
|
|
15,493
|
|
||
Honeywell Building Technologies
|
|
|
|
||||
Homes Products and Software
|
—
|
|
|
1,732
|
|
||
Distribution (ADI)
|
—
|
|
|
2,196
|
|
||
Products
|
3,314
|
|
|
2,953
|
|
||
Building Solutions
|
2,403
|
|
|
2,417
|
|
||
|
5,717
|
|
|
9,298
|
|
||
Performance Materials and Technologies
|
|
|
|
||||
UOP
|
2,890
|
|
|
2,845
|
|
||
Process Solutions
|
5,146
|
|
|
4,981
|
|
||
Specialty Products
|
1,062
|
|
|
1,134
|
|
||
Fluorine Products
|
1,736
|
|
|
1,714
|
|
||
|
10,834
|
|
|
10,674
|
|
||
Safety and Productivity Solutions
|
|
|
|
||||
Safety and Retail
|
2,215
|
|
|
2,278
|
|
||
Productivity Products
|
1,110
|
|
|
1,373
|
|
||
Warehouse and Workflow Solutions
|
1,931
|
|
|
1,829
|
|
||
Sensing & Internet-of-Things (IoT)
|
848
|
|
|
857
|
|
||
|
6,104
|
|
|
6,337
|
|
||
Net sales
|
$
|
36,709
|
|
|
$
|
41,802
|
|
|
Year Ended December 31,
|
||||
|
2019
|
|
2018
|
||
Products, transferred point in time
|
61
|
%
|
|
67
|
%
|
Products, transferred over time
|
14
|
|
|
12
|
|
Net product sales
|
75
|
|
|
79
|
|
Services, transferred point in time
|
9
|
|
|
7
|
|
Services, transferred over time
|
16
|
|
|
14
|
|
Net service sales
|
25
|
|
|
21
|
|
Net sales
|
100
|
%
|
|
100
|
%
|
|
2019
|
|
2018
|
||||
Contract assets—January 1
|
$
|
1,548
|
|
|
$
|
1,721
|
|
Contract assets—December 31
|
1,602
|
|
|
1,548
|
|
||
Change in contract assets—increase (decrease)
|
$
|
54
|
|
|
$
|
(173
|
)
|
Contract liabilities—January 1
|
$
|
(3,378
|
)
|
|
$
|
(2,973
|
)
|
Contract liabilities—December 31
|
(3,501
|
)
|
|
(3,378
|
)
|
||
Change in contract liabilities—(increase) decrease
|
$
|
(123
|
)
|
|
$
|
(405
|
)
|
Net change
|
$
|
(69
|
)
|
|
$
|
(578
|
)
|
|
December 31, 2019
|
||
Aerospace
|
$
|
11,315
|
|
Honeywell Building Technologies
|
5,515
|
|
|
Performance Materials and Technologies
|
6,527
|
|
|
Safety and Productivity Solutions
|
2,255
|
|
|
|
$
|
25,612
|
|
|
December 31,
|
||||||
2019
|
|
2018
|
|||||
Trade
|
$
|
7,639
|
|
|
$
|
7,705
|
|
Less—Allowance for doubtful accounts
|
(146
|
)
|
|
(197
|
)
|
||
|
$
|
7,493
|
|
|
$
|
7,508
|
|
|
December 31,
|
||||||
2019
|
|
2018
|
|||||
Raw materials
|
$
|
1,056
|
|
|
$
|
1,109
|
|
Work in process
|
817
|
|
|
811
|
|
||
Finished products
|
2,593
|
|
|
2,445
|
|
||
|
4,466
|
|
|
4,365
|
|
||
Reduction to LIFO cost basis
|
(45
|
)
|
|
(39
|
)
|
||
|
$
|
4,421
|
|
|
$
|
4,326
|
|
|
December 31,
|
||||||
2019
|
|
2018
|
|||||
Land and improvements
|
$
|
251
|
|
|
$
|
262
|
|
Machinery and equipment
|
9,586
|
|
|
9,435
|
|
||
Buildings and improvements
|
3,152
|
|
|
3,125
|
|
||
Construction in progress
|
724
|
|
|
588
|
|
||
|
13,713
|
|
|
13,410
|
|
||
Less—Accumulated depreciation
|
(8,388
|
)
|
|
(8,114
|
)
|
||
|
$
|
5,325
|
|
|
$
|
5,296
|
|
|
December 31, 2018
|
|
Acquisitions/
Divestitures
|
|
Currency
Translation
Adjustment
|
|
December 31, 2019
|
||||||||
Aerospace
|
$
|
2,258
|
|
|
$
|
—
|
|
|
$
|
8
|
|
|
$
|
2,266
|
|
Honeywell Building Technologies
|
3,238
|
|
|
(1
|
)
|
|
(22
|
)
|
|
3,215
|
|
||||
Performance Materials and Technologies
|
5,147
|
|
|
—
|
|
|
(42
|
)
|
|
5,105
|
|
||||
Safety and Productivity Solutions
|
4,903
|
|
|
75
|
|
|
(1
|
)
|
|
4,977
|
|
||||
|
$
|
15,546
|
|
|
$
|
74
|
|
|
$
|
(57
|
)
|
|
$
|
15,563
|
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
Gross
Carrying
Amount
|
|
Accumulated
Amortization
|
|
Net
Carrying
Amount
|
|
Gross
Carrying
Amount
|
|
Accumulated
Amortization
|
|
Net
Carrying
Amount
|
|||||||||||||
Determinable life intangibles:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Patents and technology
|
$
|
2,060
|
|
|
$
|
(1,481
|
)
|
|
$
|
579
|
|
|
$
|
1,996
|
|
|
$
|
(1,332
|
)
|
|
$
|
664
|
|
Customer relationships
|
3,769
|
|
|
(1,766
|
)
|
|
2,003
|
|
|
3,785
|
|
|
(1,510
|
)
|
|
2,275
|
|
||||||
Trademarks
|
317
|
|
|
(228
|
)
|
|
89
|
|
|
326
|
|
|
(206
|
)
|
|
120
|
|
||||||
Other
|
297
|
|
|
(262
|
)
|
|
35
|
|
|
349
|
|
|
(299
|
)
|
|
50
|
|
||||||
|
6,443
|
|
|
(3,737
|
)
|
|
2,706
|
|
|
6,456
|
|
|
(3,347
|
)
|
|
3,109
|
|
||||||
Indefinite life intangibles:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Trademarks
|
1,028
|
|
|
—
|
|
|
1,028
|
|
|
1,030
|
|
|
—
|
|
|
1,030
|
|
||||||
|
$
|
7,471
|
|
|
$
|
(3,737
|
)
|
|
$
|
3,734
|
|
|
$
|
7,486
|
|
|
$
|
(3,347
|
)
|
|
$
|
4,139
|
|
|
December 31,
|
||||||
2019
|
|
2018
|
|||||
Customer advances and deferred income
|
$
|
2,490
|
|
|
$
|
2,403
|
|
Compensation, benefit and other employee related
|
1,551
|
|
|
1,469
|
|
||
Repositioning
|
640
|
|
|
566
|
|
||
Asbestos related liabilities
|
361
|
|
|
245
|
|
||
Income taxes
|
253
|
|
|
166
|
|
||
Other taxes
|
239
|
|
|
234
|
|
||
Environmental costs
|
222
|
|
|
175
|
|
||
Product warranties and performance guarantees
|
213
|
|
|
243
|
|
||
Operating lease liabilities
|
171
|
|
|
—
|
|
||
Insurance
|
143
|
|
|
170
|
|
||
Accrued interest
|
91
|
|
|
94
|
|
||
Other (primarily operating expenses)
|
1,102
|
|
|
1,094
|
|
||
|
$
|
7,476
|
|
|
$
|
6,859
|
|
|
December 31,
|
||||||
2019
|
|
2018
|
|||||
1.40% notes due 2019
|
$
|
—
|
|
|
$
|
1,250
|
|
Three year floating rate notes due 2019
|
—
|
|
|
250
|
|
||
Two year floating rate notes due 2019
|
—
|
|
|
450
|
|
||
1.80% notes due 2019
|
—
|
|
|
750
|
|
||
0.65% Euro notes due 2020
|
1,123
|
|
|
1,145
|
|
||
4.25% notes due 2021
|
800
|
|
|
800
|
|
||
1.85% notes due 2021
|
1,500
|
|
|
1,500
|
|
||
2.15% notes due 2022
|
600
|
|
|
—
|
|
||
Floating rate notes due 2022
|
600
|
|
|
—
|
|
||
1.30% Euro notes due 2023
|
1,404
|
|
|
1,432
|
|
||
3.35% notes due 2023
|
300
|
|
|
300
|
|
||
2.30% notes due 2024
|
750
|
|
|
—
|
|
||
2.50% notes due 2026
|
1,500
|
|
|
1,500
|
|
||
2.25% Euro notes due 2028
|
842
|
|
|
859
|
|
||
2.70% notes due 2029
|
750
|
|
|
—
|
|
||
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
|
|
||
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 finance leases and debt issuance costs), 6.6% weighted average maturing at various dates through 2025
|
278
|
|
|
353
|
|
||
|
12,486
|
|
|
12,628
|
|
||
Less: current portion
|
(1,376
|
)
|
|
(2,872
|
)
|
||
|
$
|
11,110
|
|
|
$
|
9,756
|
|
|
December 31, 2019
|
||
2020
|
$
|
1,376
|
|
2021
|
2,375
|
|
|
2022
|
1,242
|
|
|
2023
|
1,733
|
|
|
2024
|
780
|
|
|
Thereafter
|
4,980
|
|
|
|
12,486
|
|
|
Less-current portion
|
(1,376
|
)
|
|
|
$
|
11,110
|
|
|
Year Ended December 31, 2019
|
||
Operating lease cost
|
$
|
222
|
|
Variable lease cost
|
27
|
|
|
Short-term lease cost
|
12
|
|
|
Finance lease cost:
|
|
||
Amortization of right-of-use assets
|
65
|
|
|
Interest on lease liability
|
30
|
|
|
Total finance lease cost
|
95
|
|
|
Total lease cost
|
$
|
356
|
|
|
December 31, 2019
|
||
Operating leases
|
|
||
Other assets
|
$
|
673
|
|
Accrued liabilities
|
171
|
|
|
Other liabilities
|
534
|
|
|
Total operating lease liabilities
|
$
|
705
|
|
Finance leases
|
|
||
Property, plant and equipment
|
$
|
361
|
|
Accumulated depreciation
|
(152
|
)
|
|
Property, plant and equipment - net
|
$
|
209
|
|
Current maturities of long-term debt
|
59
|
|
|
Long-term debt
|
156
|
|
|
Total finance lease liabilities
|
$
|
215
|
|
Weighted-average remaining lease term
|
|
||
Operating leases
|
6 years
|
|
|
Finance leases
|
4 years
|
|
|
Weighted-average discount rate
|
|
||
Operating leases
|
3.3
|
%
|
|
Finance leases
|
16.2
|
%
|
|
Operating Leases
|
Finance Leases
|
||||
2020
|
$
|
195
|
|
$
|
86
|
|
2021
|
162
|
|
73
|
|
||
2022
|
128
|
|
53
|
|
||
2023
|
97
|
|
41
|
|
||
2024
|
63
|
|
37
|
|
||
Thereafter
|
145
|
|
12
|
|
||
Total lease payments
|
790
|
|
302
|
|
||
Less: interest
|
(85
|
)
|
(87
|
)
|
||
Total
|
$
|
705
|
|
$
|
215
|
|
|
At December 31, 2018
|
||
2019
|
$
|
210
|
|
2020
|
168
|
|
|
2021
|
142
|
|
|
2022
|
109
|
|
|
2023
|
80
|
|
|
Thereafter
|
147
|
|
|
|
$
|
856
|
|
•
|
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.
|
|
December 31,
|
||||||
2019
|
|
2018
|
|||||
Assets:
|
|
|
|
||||
Foreign currency exchange contracts
|
$
|
291
|
|
|
$
|
119
|
|
Available for sale investments
|
1,523
|
|
|
1,784
|
|
||
Interest rate swap agreements
|
38
|
|
|
20
|
|
||
Cross currency swap agreements
|
51
|
|
|
32
|
|
||
Liabilities:
|
|
|
|
||||
Foreign currency exchange contracts
|
$
|
21
|
|
|
$
|
4
|
|
Interest rate swap agreements
|
13
|
|
|
65
|
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||||
Carrying
Value
|
|
Fair
Value
|
|
Carrying
Value
|
|
Fair
Value
|
|||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Long-term receivables
|
$
|
129
|
|
|
$
|
127
|
|
|
$
|
333
|
|
|
$
|
329
|
|
Liabilities
|
|
|
|
|
|
|
|
||||||||
Long-term debt and related current maturities
|
$
|
12,486
|
|
|
$
|
13,578
|
|
|
$
|
12,628
|
|
|
$
|
13,133
|
|
Line in the Consolidated Balance
Sheet of Hedged Item
|
Carrying Amount of the Hedged Item
|
|
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Item
|
||||||||||||
December 31,
2019 |
|
December 31,
2018 |
|
December 31,
2019 |
|
December 31,
2018 |
|||||||||
Long-term debt
|
$
|
3,975
|
|
|
$
|
2,555
|
|
|
$
|
25
|
|
|
$
|
(45
|
)
|
|
Year Ended December 31, 2019
|
||||||||||||||||||
Revenue
|
|
Cost of
Products
Sold
|
|
SG&A
|
|
Other
(Income)
Expense
|
|
Interest
and Other
Financial
Charges
|
|||||||||||
|
$
|
36,709
|
|
|
$
|
19,269
|
|
|
$
|
5,519
|
|
|
$
|
(1,065
|
)
|
|
$
|
357
|
|
Gain or (loss) on cash flow hedges:
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign Currency Exchange Contracts:
|
|
|
|
|
|
|
|
|
|
||||||||||
Amount reclassified from accumulated other comprehensive income into income
|
3
|
|
|
44
|
|
|
1
|
|
|
73
|
|
|
—
|
|
|||||
Amount excluded from effectiveness testing recognized in earnings using an amortization approach
|
—
|
|
|
22
|
|
|
—
|
|
|
35
|
|
|
—
|
|
|||||
Gain or (loss) on fair value hedges:
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest Rate Swap Agreements:
|
|
|
|
|
|
|
|
|
|
||||||||||
Hedged Items
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(70
|
)
|
|||||
Derivatives designated as hedges
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
70
|
|
|
Year Ended December 31, 2018
|
||||||||||||||||||
Revenue
|
|
Cost of
Products
Sold
|
|
SG&A
|
|
Other (Income) Expense
|
|
Interest
and Other
Financial
Charges
|
|||||||||||
|
$
|
41,802
|
|
|
$
|
23,634
|
|
|
$
|
6,051
|
|
|
$
|
(1,149
|
)
|
|
$
|
367
|
|
Gain or (loss) on cash flow hedges:
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign Currency Exchange Contracts:
|
|
|
|
|
|
|
|
|
|
||||||||||
Amount reclassified from accumulated other comprehensive income into income
|
(9
|
)
|
|
(35
|
)
|
|
(2
|
)
|
|
47
|
|
|
—
|
|
|||||
Amount excluded from effectiveness testing recognized in earnings using an amortization approach
|
—
|
|
|
6
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|||||
Gain or (loss) on fair value hedges:
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest Rate Swap Agreements:
|
|
|
|
|
|
|
|
|
|
||||||||||
Hedged Items
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
37
|
|
|||||
Derivatives designated as hedges
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(37
|
)
|
Derivatives Net Investment Hedging Relationships
|
Years Ended December 31,
|
||||||
2019
|
|
2018
|
|||||
Euro-denominated long-term debt
|
$
|
68
|
|
|
$
|
177
|
|
Euro-denominated commercial paper
|
71
|
|
|
168
|
|
||
Cross currency swap
|
32
|
|
|
44
|
|
||
Foreign currency exchange contracts
|
23
|
|
|
—
|
|
|
December 31,
|
||||||
2019
|
|
2018
|
|||||
Income taxes
|
$
|
2,115
|
|
|
$
|
2,236
|
|
Pension and other employee related
|
1,873
|
|
|
1,795
|
|
||
Deferred income
|
1,310
|
|
|
1,264
|
|
||
Operating lease liabilities
|
534
|
|
|
—
|
|
||
Environmental
|
487
|
|
|
580
|
|
||
Insurance
|
247
|
|
|
236
|
|
||
Asset retirement obligations
|
61
|
|
|
74
|
|
||
Product warranties and performance guarantees
|
56
|
|
|
67
|
|
||
Other
|
83
|
|
|
150
|
|
||
|
$
|
6,766
|
|
|
$
|
6,402
|
|
|
Pre-tax
|
|
Tax
|
|
After-Tax
|
||||||
Year Ended December 31, 2019
|
|
|
|
|
|
||||||
Foreign exchange translation adjustment
|
$
|
143
|
|
|
$
|
—
|
|
|
$
|
143
|
|
Pensions and other postretirement benefit adjustments
|
115
|
|
|
(29
|
)
|
|
86
|
|
|||
Changes in fair value of designated cash flow hedges
|
20
|
|
|
(9
|
)
|
|
11
|
|
|||
|
$
|
278
|
|
|
$
|
(38
|
)
|
|
$
|
240
|
|
Year Ended December 31, 2018
|
|
|
|
|
|
||||||
Foreign exchange translation adjustment
|
$
|
(728
|
)
|
|
$
|
—
|
|
|
$
|
(728
|
)
|
Pensions and other postretirement benefit adjustments
|
(727
|
)
|
|
168
|
|
|
(559
|
)
|
|||
Changes in fair value of designated cash flow hedges
|
102
|
|
|
(17
|
)
|
|
85
|
|
|||
|
$
|
(1,353
|
)
|
|
$
|
151
|
|
|
$
|
(1,202
|
)
|
Year Ended December 31, 2017
|
|
|
|
|
|
||||||
Foreign exchange translation adjustment
|
$
|
(37
|
)
|
|
$
|
—
|
|
|
$
|
(37
|
)
|
Pensions and other postretirement benefit adjustments
|
847
|
|
|
(170
|
)
|
|
677
|
|
|||
Changes in fair value of designated cash flow hedges
|
(194
|
)
|
|
33
|
|
|
(161
|
)
|
|||
|
$
|
616
|
|
|
$
|
(137
|
)
|
|
$
|
479
|
|
|
December 31,
|
||||||
2019
|
|
2018
|
|||||
Cumulative foreign exchange translation adjustment
|
$
|
(2,566
|
)
|
|
$
|
(2,709
|
)
|
Pensions and other postretirement benefit adjustments
|
(675
|
)
|
|
(761
|
)
|
||
Fair value of designated cash flow hedges
|
44
|
|
|
33
|
|
||
|
$
|
(3,197
|
)
|
|
$
|
(3,437
|
)
|
|
Foreign
Exchange
Translation
Adjustment
|
|
Pension
and Other
Postretirement
Adjustments
|
|
Changes in
Fair Value of
Cash Flow
Hedges
|
|
Total
|
||||||||
Balance at December 31, 2017
|
$
|
(1,981
|
)
|
|
$
|
(202
|
)
|
|
$
|
(52
|
)
|
|
$
|
(2,235
|
)
|
Other comprehensive income (loss) before reclassifications
|
(685
|
)
|
|
(569
|
)
|
|
89
|
|
|
(1,165
|
)
|
||||
Amounts reclassified from accumulated other comprehensive income
|
—
|
|
|
(37
|
)
|
|
(4
|
)
|
|
(41
|
)
|
||||
Spin-off
|
(43
|
)
|
|
47
|
|
|
—
|
|
|
4
|
|
||||
Net current period other comprehensive income (loss)
|
(728
|
)
|
|
(559
|
)
|
|
85
|
|
|
(1,202
|
)
|
||||
Balance at December 31, 2018
|
$
|
(2,709
|
)
|
|
$
|
(761
|
)
|
|
$
|
33
|
|
|
$
|
(3,437
|
)
|
Other comprehensive income (loss) before reclassifications
|
156
|
|
|
149
|
|
|
103
|
|
|
408
|
|
||||
Amounts reclassified from accumulated other comprehensive income
|
(13
|
)
|
|
(63
|
)
|
|
(92
|
)
|
|
(168
|
)
|
||||
Net current period other comprehensive income (loss)
|
143
|
|
|
86
|
|
|
11
|
|
|
240
|
|
||||
Balance at December 31, 2019
|
$
|
(2,566
|
)
|
|
$
|
(675
|
)
|
|
$
|
44
|
|
|
$
|
(3,197
|
)
|
|
Year Ended December 31, 2018
Affected Line in the Consolidated Statement of Operations |
||||||||||||||||||||||
Product
Sales
|
|
Cost of
Products
Sold
|
|
Cost of
Services
Sold
|
|
Selling,
General and
Admin.
Expenses
|
|
Other
(Income)
Expense
|
|
Total
|
|||||||||||||
Amortization of Pension and Other Postretirement Items:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Actuarial losses recognized
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
45
|
|
|
$
|
45
|
|
Prior service (credit) recognized
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(99
|
)
|
|
(99
|
)
|
||||||
Settlements and curtailments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
||||||
Losses (gains) on cash flow hedges
|
10
|
|
|
30
|
|
|
6
|
|
|
2
|
|
|
(47
|
)
|
|
1
|
|
||||||
Total before tax
|
$
|
10
|
|
|
$
|
30
|
|
|
$
|
6
|
|
|
$
|
2
|
|
|
$
|
(99
|
)
|
|
$
|
(51
|
)
|
Tax expense (benefit)
|
|
10
|
|
||||||||||||||||||||
Total reclassifications for the period, net of tax
|
|
$
|
(41
|
)
|
|
Years Ended December 31,
|
||||||||||
2019
|
|
2018
|
|
2017
|
|||||||
Compensation expense
|
$
|
47
|
|
|
$
|
64
|
|
|
$
|
79
|
|
Future income tax benefit recognized
|
10
|
|
|
13
|
|
|
17
|
|
|
Years Ended December 31,
|
||||||||||
2019
|
|
2018
|
|
2017
|
|||||||
Weighted average fair value per share of options granted during the year(1)
|
$
|
21.57
|
|
|
$
|
23.63
|
|
|
$
|
16.68
|
|
Assumptions:
|
|
|
|
|
|
||||||
Expected annual dividend yield
|
2.65
|
%
|
|
2.49
|
%
|
|
2.81
|
%
|
|||
Expected volatility
|
18.40
|
%
|
|
18.93
|
%
|
|
18.96
|
%
|
|||
Risk-free rate of return
|
2.46
|
%
|
|
2.71
|
%
|
|
2.02
|
%
|
|||
Expected option term (years)
|
4.87
|
|
|
4.95
|
|
|
5.04
|
|
(1)
|
Estimated on date of grant using Black-Scholes option-pricing model.
|
(1)
|
Additional options granted to offset the dilutive impact of the spin-offs on outstanding options.
|
(2)
|
Represents the sum of vested options of 11.6 million and expected to vest options of 6.0 million. Expected to vest options are derived by applying the pre-vesting forfeiture rate assumption to total outstanding unvested options of 7.1 million.
|
Range of Exercise Prices
|
Options Outstanding
|
|
Options Exercisable
|
||||||||||||||||||||
Number
Outstanding
|
|
Weighted
Average Life(1)
|
|
Weighted
Average
Exercise
Price
|
|
Aggregate
Intrinsic
Value
|
|
Number
Exercisable
|
|
Weighted
Average
Exercise
Price
|
|
Aggregate
Intrinsic
Value
|
|||||||||||
$27.00–$64.99
|
1,621,042
|
|
|
1.87
|
|
$
|
55.38
|
|
|
$
|
197
|
|
|
1,621,042
|
|
|
$
|
55.38
|
|
|
$
|
197
|
|
$65.00–$89.99
|
3,388,800
|
|
|
3.74
|
|
79.79
|
|
|
329
|
|
|
3,388,800
|
|
|
79.79
|
|
|
329
|
|
||||
$90.00–$99.99
|
5,266,409
|
|
|
5.70
|
|
98.80
|
|
|
412
|
|
|
4,461,659
|
|
|
98.81
|
|
|
349
|
|
||||
$100.00–$134.99
|
3,344,472
|
|
|
7.11
|
|
119.07
|
|
|
194
|
|
|
1,636,518
|
|
|
118.65
|
|
|
95
|
|
||||
$135.00–$180.99
|
5,110,839
|
|
|
8.76
|
|
152.49
|
|
|
125
|
|
|
512,973
|
|
|
148.52
|
|
|
15
|
|
||||
|
18,731,562
|
|
|
6.10
|
|
$
|
109.87
|
|
|
$
|
1,257
|
|
|
11,620,992
|
|
|
$
|
92.19
|
|
|
$
|
985
|
|
(1)
|
Average remaining contractual life in years.
|
Options Exercised
|
Years Ended December 31,
|
||||||||||
2019
|
|
2018
|
|
2017
|
|||||||
Intrinsic value(1)
|
$
|
483
|
|
|
$
|
238
|
|
|
$
|
620
|
|
Tax benefit realized
|
117
|
|
|
47
|
|
|
221
|
|
(1)
|
Represents the amount by which the stock price exceeded the exercise price of the options on the date of exercise.
|
|
Number of
Restricted
Stock Units
|
|
Weighted
Average
Grant Date
Fair Value
Per Share
|
|||
Non-vested at December 31, 2016
|
4,467,343
|
|
|
$
|
94.17
|
|
Granted
|
1,274,791
|
|
|
129.71
|
|
|
Vested
|
(1,289,892
|
)
|
|
81.37
|
|
|
Forfeited
|
(505,415
|
)
|
|
103.06
|
|
|
Non-vested at December 31, 2017
|
3,946,827
|
|
|
108.60
|
|
|
Spin related adjustment(1)
|
154,346
|
|
|
|
||
Granted
|
1,360,338
|
|
|
153.46
|
|
|
Vested
|
(988,787
|
)
|
|
91.68
|
|
|
Forfeited
|
(814,851
|
)
|
|
117.40
|
|
|
Non-vested at December 31, 2018
|
3,657,873
|
|
|
125.35
|
|
|
Granted
|
1,200,202
|
|
|
162.43
|
|
|
Vested
|
(1,160,333
|
)
|
|
104.32
|
|
|
Forfeited
|
(457,677
|
)
|
|
134.50
|
|
|
Non-vested at December 31, 2019
|
3,240,065
|
|
|
$
|
143.07
|
|
(1)
|
Additional RSU grants to offset the dilutive impact of the spin-offs on non-vested RSUs.
|
|
Years Ended December 31,
|
||||||||||
2019
|
|
2018
|
|
2017
|
|||||||
Compensation expense
|
$
|
106
|
|
|
$
|
111
|
|
|
$
|
97
|
|
Future income tax benefit recognized
|
21
|
|
|
21
|
|
|
19
|
|
|
Years Ended December 31,
|
||||||||||
2019
|
|
2018
|
|
2017
|
|||||||
Beginning of year
|
$
|
755
|
|
|
$
|
595
|
|
|
$
|
511
|
|
Accruals for environmental matters deemed probable and reasonably estimable
|
213
|
|
|
395
|
|
|
287
|
|
|||
Environmental liability payments
|
(256
|
)
|
|
(218
|
)
|
|
(212
|
)
|
|||
Other
|
(3
|
)
|
|
(17
|
)
|
|
9
|
|
|||
End of year
|
$
|
709
|
|
|
$
|
755
|
|
|
$
|
595
|
|
|
Year Ended December 31, 2019
|
|
Year Ended December 31, 2018
|
|
Year Ended December 31, 2017
|
||||||||||||||||||||||||||||||
|
Bendix
|
|
NARCO
|
|
Total
|
|
Bendix
|
|
NARCO
|
|
Total
|
|
Bendix
|
|
NARCO
|
|
Total
|
||||||||||||||||||
Beginning of year
|
$
|
1,623
|
|
|
$
|
891
|
|
|
$
|
2,514
|
|
|
$
|
1,703
|
|
|
$
|
907
|
|
|
$
|
2,610
|
|
|
$
|
1,789
|
|
|
$
|
919
|
|
|
$
|
2,708
|
|
Accrual for update to estimated liability
|
78
|
|
|
22
|
|
|
100
|
|
|
197
|
|
|
32
|
|
|
229
|
|
|
199
|
|
|
31
|
|
|
230
|
|
|||||||||
Change in estimated cost of future claims
|
(22
|
)
|
|
—
|
|
|
(22
|
)
|
|
(72
|
)
|
|
—
|
|
|
(72
|
)
|
|
(65
|
)
|
|
—
|
|
|
(65
|
)
|
|||||||||
Update of expected resolution values for pending claims
|
(4
|
)
|
|
—
|
|
|
(4
|
)
|
|
1
|
|
|
—
|
|
|
1
|
|
|
3
|
|
|
—
|
|
|
3
|
|
|||||||||
Asbestos related liability payments
|
(176
|
)
|
|
(55
|
)
|
|
(231
|
)
|
|
(206
|
)
|
|
(48
|
)
|
|
(254
|
)
|
|
(223
|
)
|
|
(43
|
)
|
|
(266
|
)
|
|||||||||
End of year
|
$
|
1,499
|
|
|
$
|
858
|
|
|
$
|
2,357
|
|
|
$
|
1,623
|
|
|
$
|
891
|
|
|
$
|
2,514
|
|
|
$
|
1,703
|
|
|
$
|
907
|
|
|
$
|
2,610
|
|
|
Year Ended December 31, 2019
|
|
Year Ended December 31, 2018
|
|
Year Ended December 31, 2017
|
||||||||||||||||||||||||||||||
|
Bendix
|
|
NARCO
|
|
Total
|
|
Bendix
|
|
NARCO
|
|
Total
|
|
Bendix
|
|
NARCO
|
|
Total
|
||||||||||||||||||
Beginning of year
|
$
|
170
|
|
|
$
|
307
|
|
|
$
|
477
|
|
|
$
|
191
|
|
|
$
|
312
|
|
|
$
|
503
|
|
|
$
|
201
|
|
|
$
|
319
|
|
|
$
|
520
|
|
Probable insurance recoveries related to estimated liability
|
3
|
|
|
—
|
|
|
3
|
|
|
11
|
|
|
—
|
|
|
11
|
|
|
10
|
|
|
—
|
|
|
10
|
|
|||||||||
Insurance receipts for asbestos related liabilities
|
(39
|
)
|
|
(29
|
)
|
|
(68
|
)
|
|
(33
|
)
|
|
(5
|
)
|
|
(38
|
)
|
|
(20
|
)
|
|
(7
|
)
|
|
(27
|
)
|
|||||||||
Insurance receivables settlements and write offs
|
19
|
|
|
3
|
|
|
22
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
End of year
|
$
|
153
|
|
|
$
|
281
|
|
|
$
|
434
|
|
|
$
|
170
|
|
|
$
|
307
|
|
|
$
|
477
|
|
|
$
|
191
|
|
|
$
|
312
|
|
|
$
|
503
|
|
|
December 31,
|
||||||
2019
|
|
2018
|
|||||
Other current assets
|
$
|
42
|
|
|
$
|
40
|
|
Insurance recoveries for asbestos related liabilities
|
392
|
|
|
437
|
|
||
|
$
|
434
|
|
|
$
|
477
|
|
Accrued liabilities
|
$
|
361
|
|
|
$
|
245
|
|
Asbestos related liabilities
|
1,996
|
|
|
2,269
|
|
||
|
$
|
2,357
|
|
|
$
|
2,514
|
|
Claims Activity
|
Years Ended December 31,
|
||||
2019
|
|
2018
|
|||
Claims Unresolved at the beginning of year
|
6,209
|
|
|
6,280
|
|
Claims Filed
|
2,659
|
|
|
2,430
|
|
Claims Resolved
|
(2,388
|
)
|
|
(2,501
|
)
|
Claims Unresolved at the end of year
|
6,480
|
|
|
6,209
|
|
Disease Distribution of Unresolved Claims
|
December 31,
|
||||
2019
|
|
2018
|
|||
Mesothelioma and Other Cancer Claims
|
3,399
|
|
|
2,949
|
|
Nonmalignant Claims
|
3,081
|
|
|
3,260
|
|
Total Claims
|
6,480
|
|
|
6,209
|
|
|
Years Ended December 31,
|
||||||||||||||||||
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|||||||||||
|
(in whole dollars)
|
||||||||||||||||||
Malignant claims
|
$
|
50,200
|
|
|
$
|
55,300
|
|
|
$
|
56,000
|
|
|
$
|
44,000
|
|
|
$
|
44,000
|
|
Nonmalignant claims
|
$
|
3,900
|
|
|
$
|
4,700
|
|
|
$
|
2,800
|
|
|
$
|
4,485
|
|
|
$
|
100
|
|
|
Years Ended December 31,
|
||||||||||
2019
|
|
2018
|
|
2017
|
|||||||
Beginning of year
|
$
|
310
|
|
|
$
|
408
|
|
|
$
|
487
|
|
Accruals for warranties/guarantees issued during the year
|
173
|
|
|
208
|
|
|
215
|
|
|||
Adjustment of pre-existing warranties/guarantees
|
(34
|
)
|
|
(78
|
)
|
|
(27
|
)
|
|||
Settlement of warranty/guarantee claims
|
(180
|
)
|
|
(228
|
)
|
|
(267
|
)
|
|||
End of year
|
$
|
269
|
|
|
$
|
310
|
|
|
$
|
408
|
|
|
Pension Benefits
|
||||||||||||||
U.S. Plans
|
|
Non-U.S. Plans
|
|||||||||||||
2019
|
|
2018
|
|
2019
|
|
2018
|
|||||||||
Change in benefit obligation:
|
|
|
|
|
|
|
|
||||||||
Benefit obligation at beginning of year
|
$
|
16,141
|
|
|
$
|
18,151
|
|
|
$
|
6,182
|
|
|
$
|
7,019
|
|
Service cost
|
82
|
|
|
140
|
|
|
22
|
|
|
26
|
|
||||
Interest cost
|
613
|
|
|
573
|
|
|
142
|
|
|
143
|
|
||||
Plan amendments
|
—
|
|
|
—
|
|
|
—
|
|
|
30
|
|
||||
Actuarial (gains) losses
|
2,064
|
|
|
(1,111
|
)
|
|
708
|
|
|
(356
|
)
|
||||
Benefits paid
|
(1,111
|
)
|
|
(1,137
|
)
|
|
(269
|
)
|
|
(264
|
)
|
||||
Settlements and curtailments
|
(507
|
)
|
|
—
|
|
|
—
|
|
|
(9
|
)
|
||||
Foreign currency translation
|
—
|
|
|
—
|
|
|
107
|
|
|
(342
|
)
|
||||
Other
|
1
|
|
|
(475
|
)
|
|
5
|
|
|
(65
|
)
|
||||
Benefit obligation at end of year
|
17,283
|
|
|
16,141
|
|
|
6,897
|
|
|
6,182
|
|
||||
Change in plan assets:
|
|
|
|
|
|
|
|
||||||||
Fair value of plan assets at beginning of year
|
17,109
|
|
|
18,985
|
|
|
6,481
|
|
|
7,151
|
|
||||
Actual return on plan assets
|
3,458
|
|
|
(303
|
)
|
|
863
|
|
|
(173
|
)
|
||||
Company contributions
|
45
|
|
|
34
|
|
|
62
|
|
|
137
|
|
||||
Benefits paid
|
(1,111
|
)
|
|
(1,137
|
)
|
|
(269
|
)
|
|
(264
|
)
|
||||
Settlements and curtailments
|
(507
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Foreign currency translation
|
—
|
|
|
—
|
|
|
165
|
|
|
(378
|
)
|
||||
Other
|
1
|
|
|
(470
|
)
|
|
5
|
|
|
8
|
|
||||
Fair value of plan assets at end of year
|
18,995
|
|
|
17,109
|
|
|
7,307
|
|
|
6,481
|
|
||||
Funded status of plans
|
$
|
1,712
|
|
|
$
|
968
|
|
|
$
|
410
|
|
|
$
|
299
|
|
Amounts recognized in Consolidated Balance Sheet consist of:
|
|
|
|
|
|
|
|
||||||||
Prepaid pension benefit cost(1)
|
$
|
2,069
|
|
|
$
|
1,295
|
|
|
$
|
1,196
|
|
|
$
|
1,094
|
|
Accrued pension liabilities—current(2)
|
(32
|
)
|
|
(27
|
)
|
|
(13
|
)
|
|
(12
|
)
|
||||
Accrued pension liabilities—noncurrent(3)
|
(325
|
)
|
|
(300
|
)
|
|
(773
|
)
|
|
(783
|
)
|
||||
Net amount recognized
|
$
|
1,712
|
|
|
$
|
968
|
|
|
$
|
410
|
|
|
$
|
299
|
|
(1)
|
Included in Other assets on Consolidated Balance Sheet
|
(2)
|
Included in Accrued liabilities on Consolidated Balance Sheet
|
(3)
|
Included in Other liabilities on Consolidated Balance Sheet
|
|
Other
Postretirement
Benefits
|
||||||
2019
|
|
2018
|
|||||
Change in benefit obligation:
|
|
|
|
||||
Benefit obligation at beginning of year
|
$
|
364
|
|
|
$
|
530
|
|
Service cost
|
—
|
|
|
—
|
|
||
Interest cost
|
14
|
|
|
15
|
|
||
Plan amendments
|
(2
|
)
|
|
(34
|
)
|
||
Actuarial (gains) losses
|
(16
|
)
|
|
(110
|
)
|
||
Benefits paid
|
(35
|
)
|
|
(37
|
)
|
||
Benefit obligation at end of year
|
325
|
|
|
364
|
|
||
Change in plan assets:
|
|
|
|
||||
Fair value of plan assets at beginning of year
|
—
|
|
|
—
|
|
||
Actual return on plan assets
|
—
|
|
|
—
|
|
||
Company contributions
|
—
|
|
|
—
|
|
||
Benefits paid
|
—
|
|
|
—
|
|
||
Fair value of plan assets at end of year
|
—
|
|
|
—
|
|
||
Funded status of plans
|
$
|
(325
|
)
|
|
$
|
(364
|
)
|
Amounts recognized in Consolidated Balance Sheet consist of:
|
|
|
|
||||
Accrued liabilities
|
$
|
(40
|
)
|
|
$
|
(62
|
)
|
Postretirement benefit obligations other than pensions(1)
|
(285
|
)
|
|
(302
|
)
|
||
Net amount recognized
|
$
|
(325
|
)
|
|
$
|
(364
|
)
|
(1)
|
Excludes non-U.S. plans of $41 million and $42 million in 2019 and 2018.
|
|
Pension Benefits
|
||||||||||||||
U.S. Plans
|
|
Non-U.S. Plans
|
|||||||||||||
2019
|
|
2018
|
|
2019
|
|
2018
|
|||||||||
Prior service (credit) cost
|
$
|
(176
|
)
|
|
$
|
(218
|
)
|
|
$
|
21
|
|
|
$
|
20
|
|
Net actuarial loss
|
544
|
|
|
860
|
|
|
701
|
|
|
600
|
|
||||
Net amount recognized
|
$
|
368
|
|
|
$
|
642
|
|
|
$
|
722
|
|
|
$
|
620
|
|
|
Other
Postretirement
Benefits
|
||||||
2019
|
|
2018
|
|||||
Prior service (credit)
|
$
|
(166
|
)
|
|
$
|
(226
|
)
|
Net actuarial (gain) loss
|
(20
|
)
|
|
(4
|
)
|
||
Net amount recognized
|
$
|
(186
|
)
|
|
$
|
(230
|
)
|
Net Periodic Benefit Cost
|
Pension Benefits
|
||||||||||||||||||||||
U.S. Plans
|
|
Non-U.S. Plans
|
|||||||||||||||||||||
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
|||||||||||||
Service cost
|
$
|
82
|
|
|
$
|
140
|
|
|
$
|
172
|
|
|
$
|
22
|
|
|
$
|
26
|
|
|
$
|
40
|
|
Interest cost
|
613
|
|
|
573
|
|
|
586
|
|
|
142
|
|
|
143
|
|
|
147
|
|
||||||
Expected return on plan assets
|
(1,117
|
)
|
|
(1,426
|
)
|
|
(1,262
|
)
|
|
(331
|
)
|
|
(443
|
)
|
|
(411
|
)
|
||||||
Amortization of prior service (credit) cost
|
(42
|
)
|
|
(43
|
)
|
|
(43
|
)
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
||||||
Recognition of actuarial losses
|
35
|
|
|
—
|
|
|
41
|
|
|
88
|
|
|
37
|
|
|
46
|
|
||||||
Settlements and curtailments
|
4
|
|
|
—
|
|
|
18
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
||||||
Net periodic benefit (income) cost
|
$
|
(425
|
)
|
|
$
|
(756
|
)
|
|
$
|
(488
|
)
|
|
$
|
(79
|
)
|
|
$
|
(241
|
)
|
|
$
|
(179
|
)
|
Other Changes in Plan Assets and
Benefits Obligations Recognized in Other Comprehensive (Income) Loss
|
U.S. Plans
|
|
Non-U.S. Plans
|
||||||||||||||||||||
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
|||||||||||||
Actuarial (gains) losses
|
$
|
(277
|
)
|
|
$
|
619
|
|
|
$
|
(792
|
)
|
|
$
|
176
|
|
|
$
|
250
|
|
|
$
|
(153
|
)
|
Prior service cost (credit)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
30
|
|
|
(1
|
)
|
||||||
Prior service credit recognized during year
|
42
|
|
|
43
|
|
|
43
|
|
|
—
|
|
|
4
|
|
|
1
|
|
||||||
Actuarial losses recognized during year
|
(39
|
)
|
|
—
|
|
|
(59
|
)
|
|
(88
|
)
|
|
(37
|
)
|
|
(46
|
)
|
||||||
Foreign currency translation
|
—
|
|
|
—
|
|
|
—
|
|
|
14
|
|
|
(34
|
)
|
|
43
|
|
||||||
Total recognized in other comprehensive (income) loss
|
$
|
(274
|
)
|
|
$
|
662
|
|
|
$
|
(808
|
)
|
|
$
|
102
|
|
|
$
|
213
|
|
|
$
|
(156
|
)
|
Total recognized in net periodic benefit (income) cost and other comprehensive (income) loss
|
$
|
(699
|
)
|
|
$
|
(94
|
)
|
|
$
|
(1,296
|
)
|
|
$
|
23
|
|
|
$
|
(28
|
)
|
|
$
|
(335
|
)
|
Net Periodic Benefit Cost
|
Other Postretirement Benefits
|
||||||||||
Years Ended December 31,
|
|||||||||||
2019
|
|
2018
|
|
2017
|
|||||||
Service cost
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest cost
|
14
|
|
|
15
|
|
|
19
|
|
|||
Amortization of prior service (credit)
|
(62
|
)
|
|
(52
|
)
|
|
(58
|
)
|
|||
Recognition of actuarial losses
|
—
|
|
|
3
|
|
|
13
|
|
|||
Net periodic benefit (income) cost
|
$
|
(48
|
)
|
|
$
|
(34
|
)
|
|
$
|
(26
|
)
|
Other Changes in Plan Assets and Benefits Obligations
Recognized in Other Comprehensive (Income) Loss
|
Years Ended December 31,
|
||||||||||
2019
|
|
2018
|
|
2017
|
|||||||
Actuarial (gains) losses
|
$
|
(16
|
)
|
|
$
|
(110
|
)
|
|
$
|
(14
|
)
|
Prior service cost (credit)
|
(2
|
)
|
|
(34
|
)
|
|
91
|
|
|||
Prior service credit recognized during year
|
62
|
|
|
52
|
|
|
58
|
|
|||
Actuarial losses recognized during year
|
—
|
|
|
(3
|
)
|
|
(13
|
)
|
|||
Total recognized in other comprehensive (income) loss
|
$
|
44
|
|
|
$
|
(95
|
)
|
|
$
|
122
|
|
Total recognized in net periodic benefit (income) cost and other comprehensive (income) loss
|
$
|
(4
|
)
|
|
$
|
(129
|
)
|
|
$
|
96
|
|
|
Pension Benefits
|
||||||||||||||||
U.S. Plans
|
|
Non-U.S. Plans
|
|||||||||||||||
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
|||||||
Actuarial assumptions used to determine benefit obligations as of December 31:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Discount rate
|
3.22
|
%
|
|
4.35
|
%
|
|
3.68
|
%
|
|
1.81
|
%
|
|
2.63
|
%
|
|
2.36
|
%
|
Expected annual rate of compensation increase
|
3.25
|
%
|
|
3.25
|
%
|
|
4.50
|
%
|
|
2.47
|
%
|
|
2.46
|
%
|
|
0.73
|
%
|
Actuarial assumptions used to determine net periodic benefit (income) cost for years ended December 31:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Discount rate—benefit obligation
|
4.35
|
%
|
|
3.68
|
%
|
|
4.20
|
%
|
|
2.63
|
%
|
|
2.36
|
%
|
|
2.51
|
%
|
Discount rate—service cost
|
4.47
|
%
|
|
3.77
|
%
|
|
4.42
|
%
|
|
2.26
|
%
|
|
2.20
|
%
|
|
2.14
|
%
|
Discount rate—interest cost
|
3.94
|
%
|
|
3.27
|
%
|
|
3.49
|
%
|
|
2.34
|
%
|
|
2.08
|
%
|
|
2.19
|
%
|
Expected rate of return on plan assets
|
6.75
|
%
|
|
7.75
|
%
|
|
7.75
|
%
|
|
5.14
|
%
|
|
6.23
|
%
|
|
6.43
|
%
|
Expected annual rate of compensation increase
|
3.25
|
%
|
|
4.50
|
%
|
|
4.50
|
%
|
|
2.46
|
%
|
|
2.49
|
%
|
|
2.17
|
%
|
|
Other
Postretirement
Benefits
|
|||||||
2019
|
|
2018
|
|
2017
|
||||
Actuarial assumptions used to determine benefit obligations as of December 31:
|
|
|
|
|
|
|||
Discount rate
|
3.03
|
%
|
|
4.07
|
%
|
|
3.39
|
%
|
Actuarial assumptions used to determine net periodic benefit cost for years ended December 31:
|
|
|
|
|
|
|||
Discount rate(1)
|
4.07
|
%
|
|
3.39
|
%
|
|
3.60
|
%
|
(1)
|
Discount rate was 3.65% for 1/1/2017 through 2/28/2017. Rate was changed to 3.60% for the remainder of 2017 due to a Plan remeasurement as of 3/1/2017.
|
|
December 31,
|
||||||||||||||
U.S. Plans
|
|
Non-U.S. Plans
|
|||||||||||||
2019
|
|
2018
|
|
2019
|
|
2018
|
|||||||||
Projected benefit obligation
|
$
|
357
|
|
|
$
|
327
|
|
|
$
|
1,018
|
|
|
$
|
1,668
|
|
Accumulated benefit obligation
|
$
|
347
|
|
|
$
|
321
|
|
|
$
|
973
|
|
|
$
|
1,604
|
|
Fair value of plan assets
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
233
|
|
|
$
|
873
|
|
|
U.S. Plans
|
||||||||||||||
December 31, 2019
|
|||||||||||||||
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|||||||||
Equities:
|
|
|
|
|
|
|
|
||||||||
Honeywell common stock
|
$
|
2,857
|
|
|
$
|
2,857
|
|
|
$
|
—
|
|
|
$
|
—
|
|
U.S. equities
|
1,227
|
|
|
1,227
|
|
|
—
|
|
|
—
|
|
||||
Non-U.S. equities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Real estate investment trusts
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Fixed income:
|
|
|
|
|
|
|
|
||||||||
Short term investments
|
1,395
|
|
|
1,395
|
|
|
—
|
|
|
—
|
|
||||
Government securities
|
1,146
|
|
|
—
|
|
|
1,146
|
|
|
—
|
|
||||
Corporate bonds
|
8,603
|
|
|
—
|
|
|
8,603
|
|
|
—
|
|
||||
Mortgage/Asset-backed securities
|
1,023
|
|
|
—
|
|
|
1,023
|
|
|
—
|
|
||||
Insurance contracts
|
8
|
|
|
—
|
|
|
8
|
|
|
—
|
|
||||
Direct investments:
|
|
|
|
|
|
|
|
||||||||
Direct private investments
|
950
|
|
|
—
|
|
|
—
|
|
|
950
|
|
||||
Real estate properties
|
619
|
|
|
—
|
|
|
—
|
|
|
619
|
|
||||
Total
|
$
|
17,828
|
|
|
$
|
5,479
|
|
|
$
|
10,780
|
|
|
$
|
1,569
|
|
Investments measured at NAV:
|
|
|
|
|
|
|
|
||||||||
Private funds
|
1,019
|
|
|
|
|
|
|
|
|||||||
Real estate funds
|
42
|
|
|
|
|
|
|
|
|||||||
Hedge funds
|
—
|
|
|
|
|
|
|
|
|||||||
Commingled Funds
|
106
|
|
|
|
|
|
|
|
|||||||
Total assets at fair value
|
$
|
18,995
|
|
|
|
|
|
|
|
|
U.S. Plans
|
||||||||||||||
December 31, 2018
|
|||||||||||||||
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|||||||||
Equities:
|
|
|
|
|
|
|
|
||||||||
Honeywell common stock
|
$
|
2,438
|
|
|
$
|
2,438
|
|
|
$
|
—
|
|
|
$
|
—
|
|
U.S. equities
|
1,365
|
|
|
1,365
|
|
|
—
|
|
|
—
|
|
||||
Non-U.S. equities
|
753
|
|
|
753
|
|
|
—
|
|
|
—
|
|
||||
Real estate investment trusts
|
244
|
|
|
244
|
|
|
—
|
|
|
—
|
|
||||
Fixed income:
|
|
|
|
|
|
|
|
||||||||
Short term investments
|
877
|
|
|
877
|
|
|
—
|
|
|
—
|
|
||||
Government securities
|
993
|
|
|
—
|
|
|
993
|
|
|
—
|
|
||||
Corporate bonds
|
6,824
|
|
|
—
|
|
|
6,824
|
|
|
—
|
|
||||
Mortgage/Asset-backed securities
|
1,032
|
|
|
—
|
|
|
1,032
|
|
|
—
|
|
||||
Insurance contracts
|
8
|
|
|
—
|
|
|
8
|
|
|
—
|
|
||||
Direct investments:
|
|
|
|
|
|
|
|
||||||||
Direct private investments
|
829
|
|
|
—
|
|
|
—
|
|
|
829
|
|
||||
Real estate properties
|
657
|
|
|
—
|
|
|
—
|
|
|
657
|
|
||||
Total
|
$
|
16,020
|
|
|
$
|
5,677
|
|
|
$
|
8,857
|
|
|
$
|
1,486
|
|
Investments measured at NAV:
|
|
|
|
|
|
|
|
||||||||
Private funds
|
931
|
|
|
|
|
|
|
|
|||||||
Real estate funds
|
56
|
|
|
|
|
|
|
|
|||||||
Hedge funds
|
1
|
|
|
|
|
|
|
|
|||||||
Commingled funds
|
101
|
|
|
|
|
|
|
|
|||||||
Total assets at fair value
|
$
|
17,109
|
|
|
|
|
|
|
|
|
Non-U.S. Plans
|
||||||||||||||
December 31, 2019
|
|||||||||||||||
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|||||||||
Equities:
|
|
|
|
|
|
|
|
||||||||
U.S. equities
|
$
|
149
|
|
|
$
|
—
|
|
|
$
|
149
|
|
|
$
|
—
|
|
Non-U.S. equities
|
1,384
|
|
|
54
|
|
|
1,330
|
|
|
—
|
|
||||
Fixed income:
|
|
|
|
|
|
|
|
||||||||
Short-term investments
|
522
|
|
|
522
|
|
|
—
|
|
|
—
|
|
||||
Government securities
|
3,006
|
|
|
—
|
|
|
3,006
|
|
|
—
|
|
||||
Corporate bonds
|
1,746
|
|
|
—
|
|
|
1,746
|
|
|
—
|
|
||||
Mortgage/Asset-backed securities
|
84
|
|
|
—
|
|
|
84
|
|
|
—
|
|
||||
Insurance contracts
|
120
|
|
|
—
|
|
|
120
|
|
|
—
|
|
||||
Investments in private funds:
|
|
|
|
|
|
|
|
||||||||
Private funds
|
69
|
|
|
—
|
|
|
35
|
|
|
34
|
|
||||
Real estate funds
|
150
|
|
|
—
|
|
|
—
|
|
|
150
|
|
||||
Total
|
$
|
7,230
|
|
|
$
|
576
|
|
|
$
|
6,470
|
|
|
$
|
184
|
|
Investments measured at NAV:
|
|
|
|
|
|
|
|
||||||||
Private funds
|
21
|
|
|
|
|
|
|
|
|||||||
Real estate funds
|
56
|
|
|
|
|
|
|
|
|||||||
Total assets at fair value
|
$
|
7,307
|
|
|
|
|
|
|
|
|
Non-U.S. Plans
|
||||||||||||||
December 31, 2018
|
|||||||||||||||
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|||||||||
Equities:
|
|
|
|
|
|
|
|
||||||||
U.S. equities
|
$
|
429
|
|
|
$
|
297
|
|
|
$
|
132
|
|
|
$
|
—
|
|
Non-U.S. equities
|
1,356
|
|
|
44
|
|
|
1,312
|
|
|
—
|
|
||||
Fixed income:
|
|
|
|
|
|
|
|
||||||||
Short-term investments
|
189
|
|
|
189
|
|
|
—
|
|
|
—
|
|
||||
Government securities
|
2,572
|
|
|
—
|
|
|
2,572
|
|
|
—
|
|
||||
Corporate bonds
|
1,468
|
|
|
—
|
|
|
1,468
|
|
|
—
|
|
||||
Mortgage/Asset-backed securities
|
60
|
|
|
—
|
|
|
60
|
|
|
—
|
|
||||
Insurance contracts
|
137
|
|
|
—
|
|
|
137
|
|
|
—
|
|
||||
Investments in private funds:
|
|
|
|
|
|
|
|
||||||||
Private funds
|
46
|
|
|
—
|
|
|
12
|
|
|
34
|
|
||||
Real estate funds
|
144
|
|
|
—
|
|
|
—
|
|
|
144
|
|
||||
Total
|
$
|
6,401
|
|
|
$
|
530
|
|
|
$
|
5,693
|
|
|
$
|
178
|
|
Investments measured at NAV:
|
|
|
|
|
|
|
|
||||||||
Private funds
|
26
|
|
|
|
|
|
|
|
|||||||
Real estate funds
|
54
|
|
|
|
|
|
|
|
|||||||
Total assets at fair value
|
$
|
6,481
|
|
|
|
|
|
|
|
|
U.S. Plans
|
|
Non-U.S. Plans
|
||||||||||||
Direct
Private
Investments
|
|
Real Estate
Properties
|
|
Private
Funds
|
|
Real Estate
Funds
|
|||||||||
Balance at December 31, 2017
|
$
|
752
|
|
|
$
|
597
|
|
|
$
|
31
|
|
|
$
|
149
|
|
Actual return on plan assets:
|
|
|
|
|
|
|
|
||||||||
Relating to assets still held at year-end
|
36
|
|
|
33
|
|
|
1
|
|
|
(4
|
)
|
||||
Relating to assets sold during the year
|
65
|
|
|
2
|
|
|
—
|
|
|
—
|
|
||||
Purchases
|
95
|
|
|
47
|
|
|
2
|
|
|
—
|
|
||||
Sales and settlements
|
(119
|
)
|
|
(22
|
)
|
|
—
|
|
|
(1
|
)
|
||||
Balance at December 31, 2018
|
$
|
829
|
|
|
$
|
657
|
|
|
$
|
34
|
|
|
$
|
144
|
|
Actual return on plan assets:
|
|
|
|
|
|
|
|
||||||||
Relating to assets still held at year-end
|
15
|
|
|
40
|
|
|
—
|
|
|
7
|
|
||||
Relating to assets sold during the year
|
89
|
|
|
(23
|
)
|
|
—
|
|
|
1
|
|
||||
Purchases
|
216
|
|
|
48
|
|
|
—
|
|
|
—
|
|
||||
Sales and settlements
|
(199
|
)
|
|
(103
|
)
|
|
—
|
|
|
(2
|
)
|
||||
Balance at December 31, 2019
|
$
|
950
|
|
|
$
|
619
|
|
|
$
|
34
|
|
|
$
|
150
|
|
|
U.S. Plans
|
|
Non-U.S. Plans
|
||||
2020
|
$
|
1,159
|
|
|
$
|
282
|
|
2021
|
1,151
|
|
|
288
|
|
||
2022
|
1,145
|
|
|
296
|
|
||
2023
|
1,138
|
|
|
303
|
|
||
2024
|
1,128
|
|
|
311
|
|
||
2025-2029
|
5,353
|
|
|
1,690
|
|
|
December 31,
|
||||
2019
|
|
2018
|
|||
Assumed health care cost trend rate:
|
|
|
|
||
Health care cost trend rate assumed for next year
|
7.00
|
%
|
|
7.00
|
%
|
Rate that the cost trend rate gradually declines to
|
5.00
|
%
|
|
5.00
|
%
|
Year that the rate reaches the rate it is assumed to remain at
|
2029
|
|
|
2029
|
|
|
1 percentage point
|
||||||
Increase
|
|
Decrease
|
|||||
Effect on total of service and interest cost components
|
$
|
1
|
|
|
$
|
(1
|
)
|
Effect on postretirement benefit obligation
|
$
|
14
|
|
|
$
|
(12
|
)
|
|
Without Impact of
Medicare Subsidy
|
|
Net of
Medicare Subsidy
|
||||
2020
|
$
|
46
|
|
|
$
|
41
|
|
2021
|
42
|
|
|
38
|
|
||
2022
|
39
|
|
|
35
|
|
||
2023
|
36
|
|
|
32
|
|
||
2024
|
22
|
|
|
20
|
|
||
2025-2029
|
95
|
|
|
84
|
|
|
Years Ended December 31,
|
||||||||||
2019
|
|
2018
|
|
2017
|
|||||||
Net Sales
|
|
|
|
|
|
||||||
Aerospace
|
|
|
|
|
|
||||||
Product
|
$
|
8,766
|
|
|
$
|
10,415
|
|
|
$
|
10,067
|
|
Service
|
5,288
|
|
|
5,078
|
|
|
4,712
|
|
|||
Total
|
14,054
|
|
|
15,493
|
|
|
14,779
|
|
|||
Honeywell Building Technologies
|
|
|
|
|
|
||||||
Product
|
4,395
|
|
|
7,868
|
|
|
8,396
|
|
|||
Service
|
1,322
|
|
|
1,430
|
|
|
1,381
|
|
|||
Total
|
5,717
|
|
|
9,298
|
|
|
9,777
|
|
|||
Performance Materials and Technologies
|
|
|
|
|
|
||||||
Product
|
8,732
|
|
|
8,589
|
|
|
8,521
|
|
|||
Service
|
2,102
|
|
|
2,085
|
|
|
1,818
|
|
|||
Total
|
10,834
|
|
|
10,674
|
|
|
10,339
|
|
|||
Safety and Productivity Solutions
|
|
|
|
|
|
||||||
Product
|
5,736
|
|
|
5,976
|
|
|
5,333
|
|
|||
Service
|
368
|
|
|
361
|
|
|
306
|
|
|||
Total
|
6,104
|
|
|
6,337
|
|
|
5,639
|
|
|||
|
$
|
36,709
|
|
|
$
|
41,802
|
|
|
$
|
40,534
|
|
Depreciation and amortization
|
|
|
|
|
|
||||||
Aerospace
|
$
|
234
|
|
|
$
|
281
|
|
|
$
|
279
|
|
Honeywell Building Technologies
|
63
|
|
|
112
|
|
|
118
|
|
|||
Performance Materials and Technologies
|
493
|
|
|
452
|
|
|
441
|
|
|||
Safety and Productivity Solutions
|
222
|
|
|
216
|
|
|
219
|
|
|||
Corporate
|
76
|
|
|
55
|
|
|
58
|
|
|||
|
$
|
1,088
|
|
|
$
|
1,116
|
|
|
$
|
1,115
|
|
Segment Profit
|
|
|
|
|
|
||||||
Aerospace
|
$
|
3,607
|
|
|
$
|
3,503
|
|
|
$
|
3,288
|
|
Honeywell Building Technologies
|
1,165
|
|
|
1,608
|
|
|
1,650
|
|
|||
Performance Materials and Technologies
|
2,433
|
|
|
2,328
|
|
|
2,206
|
|
|||
Safety and Productivity Solutions
|
790
|
|
|
1,032
|
|
|
852
|
|
|||
Corporate
|
(256
|
)
|
|
(281
|
)
|
|
(306
|
)
|
|||
|
$
|
7,739
|
|
|
$
|
8,190
|
|
|
$
|
7,690
|
|
|
December 31,
|
||||||||||
2019
|
|
2018
|
|
2017
|
|||||||
Capital expenditures
|
|
|
|
|
|
||||||
Aerospace
|
$
|
272
|
|
|
$
|
308
|
|
|
$
|
380
|
|
Honeywell Building Technologies
|
43
|
|
|
125
|
|
|
88
|
|
|||
Performance Materials and Technologies
|
314
|
|
|
254
|
|
|
303
|
|
|||
Safety and Productivity Solutions
|
82
|
|
|
78
|
|
|
79
|
|
|||
Corporate
|
128
|
|
|
63
|
|
|
181
|
|
|||
|
$
|
839
|
|
|
$
|
828
|
|
|
$
|
1,031
|
|
Total Assets
|
|
|
|
|
|
||||||
Aerospace
|
$
|
11,378
|
|
|
$
|
11,234
|
|
|
$
|
11,769
|
|
Honeywell Building Technologies
|
5,968
|
|
|
6,010
|
|
|
10,592
|
|
|||
Performance Materials and Technologies
|
16,888
|
|
|
17,827
|
|
|
17,203
|
|
|||
Safety and Productivity Solutions
|
9,888
|
|
|
9,886
|
|
|
9,456
|
|
|||
Corporate
|
14,557
|
|
|
12,816
|
|
|
10,450
|
|
|||
|
$
|
58,679
|
|
|
$
|
57,773
|
|
|
$
|
59,470
|
|
|
Years Ended December 31,
|
||||||||||
2019
|
|
2018
|
|
2017
|
|||||||
Segment Profit
|
$
|
7,739
|
|
|
$
|
8,190
|
|
|
$
|
7,690
|
|
Interest and other financial charges
|
(357
|
)
|
|
(367
|
)
|
|
(316
|
)
|
|||
Stock compensation expense(1)
|
(153
|
)
|
|
(175
|
)
|
|
(176
|
)
|
|||
Pension ongoing income (expense)(2)
|
592
|
|
|
992
|
|
|
713
|
|
|||
Pension mark-to-market expense(2)
|
(123
|
)
|
|
(37
|
)
|
|
(87
|
)
|
|||
Other postretirement income(2)
|
47
|
|
|
32
|
|
|
21
|
|
|||
Repositioning and other charges(3)
|
(546
|
)
|
|
(1,091
|
)
|
|
(973
|
)
|
|||
Other(4)
|
360
|
|
|
(57
|
)
|
|
78
|
|
|||
Income before taxes
|
$
|
7,559
|
|
|
$
|
7,487
|
|
|
$
|
6,950
|
|
(1)
|
Amounts included in Selling, general and administrative expenses.
|
(2)
|
Amounts included in Cost of products and services sold and Selling, general and administrative expenses (service costs) and Other income/expense (non-service cost components).
|
(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/loss of affiliated companies is included in segment profit.
|
|
Net Sales(1)
|
|
Long-lived Assets(2)
|
||||||||||||||||||||
Years Ended December 31,
|
|
December 31,
|
|||||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
||||||||||||
United States
|
$
|
21,910
|
|
|
$
|
23,841
|
|
|
$
|
22,722
|
|
|
$
|
3,649
|
|
|
$
|
3,601
|
|
|
$
|
3,604
|
|
Europe
|
7,424
|
|
|
10,066
|
|
|
10,400
|
|
|
579
|
|
|
571
|
|
|
927
|
|
||||||
Other International
|
7,375
|
|
|
7,895
|
|
|
7,412
|
|
|
1,097
|
|
|
1,124
|
|
|
1,395
|
|
||||||
|
$
|
36,709
|
|
|
$
|
41,802
|
|
|
$
|
40,534
|
|
|
$
|
5,325
|
|
|
$
|
5,296
|
|
|
$
|
5,926
|
|
(1)
|
Sales between geographic areas approximate market and are not significant. Net sales are classified according to their country of origin. Included in United States net sales are export sales of $5,415 million, $5,293 million and $4,974 million in 2019, 2018 and 2017.
|
(2)
|
Long-lived assets are comprised of property, plant and equipment - net.
|
|
Years Ended December 31,
|
||||||||||
2019
|
|
2018
|
|
2017
|
|||||||
Net payments for repositioning and other charges:
|
|
|
|
|
|
||||||
Severance and exit cost payments
|
$
|
(249
|
)
|
|
$
|
(285
|
)
|
|
$
|
(177
|
)
|
Environmental payments
|
(256
|
)
|
|
(218
|
)
|
|
(212
|
)
|
|||
Reimbursement receipts
|
292
|
|
|
67
|
|
|
—
|
|
|||
Insurance receipts for asbestos related liabilities
|
68
|
|
|
38
|
|
|
27
|
|
|||
Asbestos related liability payments
|
(231
|
)
|
|
(254
|
)
|
|
(266
|
)
|
|||
|
$
|
(376
|
)
|
|
$
|
(652
|
)
|
|
$
|
(628
|
)
|
Interest paid, net of amounts capitalized
|
$
|
344
|
|
|
$
|
353
|
|
|
$
|
306
|
|
Income taxes paid, net of refunds
|
1,564
|
|
|
1,566
|
|
|
1,751
|
|
|||
Non-cash investing and financing activities:
|
|
|
|
|
|
||||||
Common stock contributed to savings plans
|
159
|
|
|
52
|
|
|
172
|
|
|||
Marketable securities contributed to non-U.S. pension plans
|
—
|
|
|
99
|
|
|
89
|
|
|
2019
|
||||||||||||||||||
Mar. 31
|
|
June 30
|
|
Sept. 30
|
|
Dec. 31
|
|
Year
|
|||||||||||
Net sales
|
$
|
8,884
|
|
|
$
|
9,243
|
|
|
$
|
9,086
|
|
|
$
|
9,496
|
|
|
$
|
36,709
|
|
Gross profit
|
3,005
|
|
|
3,149
|
|
|
3,048
|
|
|
3,168
|
|
|
12,370
|
|
|||||
Net income attributable to Honeywell
|
1,416
|
|
|
1,541
|
|
|
1,624
|
|
|
1,562
|
|
|
6,143
|
|
|||||
Earnings per common share—basic(1)
|
1.94
|
|
|
2.13
|
|
|
2.26
|
|
|
2.19
|
|
|
8.52
|
|
|||||
Earnings per common share—assuming dilution(1)
|
1.92
|
|
|
2.10
|
|
|
2.23
|
|
|
2.16
|
|
|
8.41
|
|
|||||
Cash dividends per common share
|
0.820
|
|
|
0.820
|
|
|
0.820
|
|
|
0.900
|
|
|
3.360
|
|
|
2018(2)
|
||||||||||||||||||
Mar. 31
|
|
June 30
|
|
Sept. 30
|
|
Dec. 31
|
|
Year
|
|||||||||||
Net sales
|
$
|
10,392
|
|
|
$
|
10,919
|
|
|
$
|
10,762
|
|
|
$
|
9,729
|
|
|
$
|
41,802
|
|
Gross profit
|
3,201
|
|
|
3,305
|
|
|
3,206
|
|
|
3,044
|
|
|
12,756
|
|
|||||
Net income attributable to Honeywell
|
1,439
|
|
|
1,267
|
|
|
2,338
|
|
|
1,721
|
|
|
6,765
|
|
|||||
Earnings per common share—basic(1)
|
1.92
|
|
|
1.70
|
|
|
3.15
|
|
|
2.34
|
|
|
9.10
|
|
|||||
Earnings per common share—assuming dilution(1)
|
1.89
|
|
|
1.68
|
|
|
3.11
|
|
|
2.31
|
|
|
8.98
|
|
|||||
Cash dividends per common share
|
0.745
|
|
|
0.745
|
|
|
0.745
|
|
|
0.820
|
|
|
3.055
|
|
(1)
|
Total for the full year may differ from the sum of the individual quarters due to the requirement to use weighted average shares each quarter, which may fluctuate with share repurchases and share issuances, and due to the impact of losses in a quarter.
|
(2)
|
The results of operations for Transportation Systems business and Homes and Global Distribution business are included in the Consolidated Statement of Operations through the effective dates of the respective spin-offs.
|
•
|
We tested the effectiveness of internal controls over the annual third-party assessment of the sufficiency and reliability of the NARCO Trust claims data including controls over the review of management’s assumptions and claims data used to estimate the NARCO Trust Liability.
|
•
|
We made inquiries of internal and external legal counsel regarding the regulatory and litigation environments related to the NARCO Trust Liability.
|
•
|
With the assistance of our internal actuarial specialists, we evaluated NARCO Trust claims data to assess the reasonableness of management’s conclusion that such data is not sufficiently reliable to enable the Company to update the estimate of the recorded NARCO Trust Liability.
|
•
|
We tested the effectiveness of internal controls over the recognition of revenue and the determination of estimated contract costs including controls over the review of management’s assumptions and key inputs used to recognize revenue and costs on long-term fixed price contracts using the cost-to-cost input method.
|
•
|
We evaluated the appropriateness and consistency of management’s methods and assumptions used to recognize revenue and costs on long-term fixed price contracts using the cost-to-cost input method to recognize revenue over time.
|
•
|
We selected a sample of long-term fixed price contracts and evaluated the estimates of total cost for each of the long-term fixed price contracts by:
|
▪
|
Comparing costs incurred to date to the costs management estimated to be incurred to date.
|
▪
|
Evaluating management’s ability to achieve the estimates of total cost by performing corroborating inquiries with Company personnel, including project managers, and comparing the estimates to documentation such as management’s work plans, contract terms and requirements, and purchase orders with suppliers. Our evaluation of management’s assumptions included consideration of historical and current project performance such as consistency of gross margin, identified risks related to project timing including technical and schedule matters, and the status of internal and third-party activities such as hardware, software, and labor.
|
▪
|
Performing a substantive analytical procedure, in which we compared the estimated costs to complete to an independent estimate of costs to complete that factored in information obtained from the corroborating inquiries and documentation obtained such as management’s work plans, contract terms and requirements, and purchase orders with suppliers.
|
Plan category
|
Number of Shares
to be Issued Upon
Exercise of
Outstanding Options, Warrants
and Rights
|
|
Weighted-Average
Exercise Price of
Outstanding
Options, Warrants
and Rights
|
|
Number of Securities
Remaining Available for
Future Issuance Under
Equity Compensation
Plans (Excluding
Securities Reflected in
Column (a))
|
|||||||||
(a)
|
|
(b)
|
|
(c)
|
||||||||||
Equity compensation plans approved by security holders
|
22,496,879
|
|
(1)
|
|
109.87
|
|
(2)
|
|
40,001,939
|
|
(3)
|
|||
Equity compensation plans not approved by security holders
|
293,763
|
|
(4)
|
|
N/A
|
|
(5)
|
|
N/A
|
|
(6)
|
|||
Total
|
22,790,642
|
|
|
|
109.87
|
|
|
|
40,001,939
|
|
|
(1)
|
Equity compensation plans approved by shareowners which are included in column (a) of the table are the 2016 Stock Incentive Plan, the 2011 Stock Incentive Plan, and the 2006 Stock Incentive Plan (including 18,473,640
|
(2)
|
Column (b) relates to stock options and does not include any exercise price for RSUs because an RSU’s value is dependent upon attainment of certain performance goals or continued employment or service and they are settled for shares of Common Stock on a one-for-one basis.
|
(3)
|
The number of shares that may be issued under the 2016 Stock Incentive Plan as of December 31, 2019 is 37,364,854 which includes the following additional shares that may again be available for issuance: shares that are settled for cash, expire, are canceled, or under similar prior plans, are tendered as option exercise price or tax withholding obligations, are reacquired with cash option exercise price or with monies attributable to any tax deduction to Honeywell upon the exercise of an option, or are under any outstanding awards assumed under any equity compensation plan of an entity acquired by Honeywell. No securities are available for future issuance under the 2011 Stock Incentive Plan or the 2006 Stock Incentive Plan.
|
•
|
The UK Sharebuilder Plan allows an eligible UK employee to invest taxable earnings in Common Stock. The Company matches those shares and dividends paid are used to purchase additional shares of Common Stock. For the year ending December 31, 2019, 34,787 shares were credited to participants’ accounts under the UK Sharebuilder Plan.
|
•
|
The Honeywell Aerospace Ireland Share Participation Plan and the Honeywell Measurex (Ireland) Limited Group Employee Profit Sharing Plan allow eligible Irish employees to contribute a percentage of base pay and/or bonus that is invested in Common Stock. For the year ending December 31, 2019, 2,083 shares of Common Stock were credited to participants’ accounts under these plans.
|
(4)
|
Equity compensation plans not approved by shareowners included in the table refers to the Honeywell Excess Benefit Plan and Supplemental Savings Plan.
|
(5)
|
Column (b) does not include any exercise price for notional shares allocated to employees under Honeywell’s equity compensation plans not approved by shareowners because all of these shares are only settled for shares of Common Stock on a one-for-one basis.
|
(6)
|
The amount of securities available for future issuance under the Honeywell Excess Benefit Plan and Supplemental Savings Plan is not determinable because the number of securities that may be issued under this plan depends upon the amount deferred to the plan by participants in future years.
|
|
Page Number
in Form 10-K
|
(a)(1.) Consolidated Financial Statements:
|
|
Consolidated Statement of Operations for the years ended December 31, 2019, 2018 and 2017
|
|
Consolidated Statement of Comprehensive Income for the years ended December 31, 2019, 2018 and 2017
|
|
Consolidated Balance Sheet at December 31, 2019 and 2018
|
|
Consolidated Statement of Cash Flows for the years ended December 2019, 2018 and 2017
|
|
Consolidated Statement of Shareowners’ Equity for the years ended December 31, 2019, 2018 and 2017
|
|
Notes to Consolidated Financial Statements
|
|
Report of Independent Registered Public Accounting Firm
|
|
Page Number
in Form 10-K
|
(a)(2.) Exhibits
|
|
See the Exhibit Index of this Annual Report on Form 10-K
|
Exhibit No.
|
|
Description
|
|
3(i)
|
|
|
|
3(ii)
|
|
|
|
4.1
|
|
|
Honeywell International Inc. is a party to several long-term debt instruments under which, in each case, the total amount of securities authorized does not exceed 10% of the total assets of Honeywell and its subsidiaries on a consolidated basis. Pursuant to paragraph 4(iii)(A) of Item 601(b) of Regulation S-K, Honeywell agrees to furnish a copy of such instruments to the Securities and Exchange Commission upon request.
|
4.2
|
|
|
|
10.1*
|
|
|
|
10.2*
|
|
|
|
10.3*
|
|
|
|
10.4*
|
|
|
|
10.5*
|
|
|
|
10.6*
|
|
|
|
10.7*
|
|
|
|
10.8*
|
|
|
|
10.9*
|
|
|
|
10.10*
|
|
|
|
10.11*
|
|
|
|
10.12*
|
|
|
|
10.13*
|
|
|
|
10.14*
|
|
|
Exhibit No.
|
|
Description
|
10.15*
|
|
|
10.16*
|
|
|
10.17*
|
|
|
10.18*
|
|
|
10.19*
|
|
|
10.20*
|
|
|
10.21*
|
|
|
10.22*
|
|
|
10.23*
|
|
|
10.24*
|
|
|
10.25*
|
|
|
10.26*
|
|
|
10.27*
|
|
|
10.28*
|
|
|
10.29*
|
|
|
10.30*
|
|
|
10.31*
|
|
|
10.32*
|
|
Exhibit No.
|
|
Description
|
10.33*
|
|
|
10.34*
|
|
|
10.35*
|
|
|
10.36*
|
|
|
10.37*
|
|
|
10.38*
|
|
|
10.39*
|
|
|
10.40*
|
|
|
10.41*
|
|
|
10.42*
|
|
|
10.43*
|
|
|
10.44*
|
|
|
10.45*
|
|
|
10.46*
|
|
|
10.47*
|
|
|
10.48*
|
|
|
10.49*
|
|
|
10.50*
|
|
|
10.51*
|
|
Exhibit No.
|
|
Description
|
|
10.52*
|
|
|
|
10.53*
|
|
|
|
10.54*
|
|
|
|
10.55
|
|
|
|
10.56
|
|
|
|
10.57*
|
|
|
|
10.58
|
|
|
|
10.59
|
|
|
|
10.60*
|
|
|
|
10.61*
|
|
|
|
21
|
|
|
|
23.1
|
|
|
|
24
|
|
|
|
31.1
|
|
|
|
31.2
|
|
|
|
32.1
|
|
|
|
32.2
|
|
|
|
95
|
|
|
Exhibit No.
|
|
Description
|
101.INS
|
|
The following financial statements from the Company's Annual Report on Form 10-K for the year ended December 31, 2019, formatted in Inline XBRL: (i) Consolidated Statements of Cash Flows, (ii) Consolidated Statements of Operations, (iii) Consolidated Statements of Comprehensive Income, (iv) Consolidated Balance Sheets, and (v) Notes to Consolidated Financial Statements, tagged as blocks of text and including detailed tags.
|
101.SCH
|
|
XBRL Taxonomy Extension Schema (filed herewith)
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase (filed herewith)
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase (filed herewith)
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase (filed herewith)
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase (filed herewith)
|
** Certain schedules and similar attachments have been omitted pursuant to Item 601(b)(2) of Regulation S-K. The registrant hereby undertakes to furnish copies of any of the omitted schedules and similar attachments upon request by the U.S. Securities and Exchange Commission.
|
|
|
HONEYWELL INTERNATIONAL INC.
|
||
|
|
|
|
|
Date: February 14, 2020
|
|
By:
|
|
/s/ Robert D. Mailloux
|
|
|
|
||
|
|
|
|
Robert D. Mailloux
Vice President and Controller
(on behalf of the Registrant
and as the Registrant’s
Principal Accounting Officer)
|
*By:
|
|
/s/ Gregory P. Lewis
|
|
|
|
|
|
|
|
|
|
(Gregory P. Lewis
Attorney-in-fact)
|
|
|
•
|
that the board of directors may establish the number of seats on the board, subject to the right of preferred stockholders to elect directors in certain circumstances and shareowners’ rights to set the number of seats upon the vote of holders of a majority of the outstanding shares of common stock;
|
•
|
that vacancies on the board of directors other than at the annual meeting are filled by a vote of the remaining directors;
|
•
|
that special meetings of shareowners generally may be called only by the chief executive officer, by a majority of the authorized number of directors, or by the holders of not less than fifteen percent of the outstanding shares of Honeywell’s common stock (excluding derivatives);
|
•
|
that action may be taken by shareowners only at annual or special meetings and not by written consent;
|
•
|
that advance notice must be given to Honeywell for a shareowner to nominate directors for election at a shareowner meeting; and
|
•
|
that the board of directors may in limited circumstances, without stockholder approval, adopt a plan to provide for the distribution to stockholders of preferred stock or certain other securities upon the occurrence of certain triggering events (but any such plan adopted without stockholder approval must expire within one year of adoption unless ratified by the stockholders).
|
•
|
approval by our board of directors prior to the time the acquirer became a 15% shareowner of Honeywell;
|
•
|
acquisition of at least 85% of our voting stock in the transaction in which the acquirer became a 15% shareowner of Honeywell; or
|
•
|
approval of the business combination by our board of directors and two-thirds of our disinterested shareowners.
|
•
|
any property located in the United States which is in the opinion of our board of directors, a principal manufacturing property; or
|
•
|
any shares of capital stock or indebtedness of any subsidiary owning such property, without equally and ratably securing the debt securities, subject to exceptions specified in the indenture. These exceptions include:
|
◦
|
existing liens on our property or liens on property of corporations at the time those corporations become our subsidiaries or are merged with us;
|
◦
|
liens existing on property when acquired, or incurred to finance the purchase price of that property;
|
◦
|
certain liens on property to secure the cost of development of, or improvements on, that property;
|
◦
|
certain liens in favor of or required by contracts with governmental entities; and
|
◦
|
indebtedness secured by liens otherwise prohibited by the covenant not exceeding 10% of the consolidated net tangible assets of Honeywell and our consolidated subsidiaries.
|
•
|
we would be entitled under the provisions described under “-Limitation on Mortgages” to incur debt equal to the value of such sale and lease-back transaction, secured by liens on the property to be leased, without equally securing the outstanding debt securities; or
|
•
|
we, during the four months following the effective date of such sale and lease-back transaction, apply an amount equal to the value of such sale and lease-back transaction to the voluntary retirement of long-term indebtedness of Honeywell or our subsidiaries.
|
•
|
the person formed by such consolidation or into which we are merged or the person which acquires our assets is a person organized in the United States of America and expressly assumes the due and punctual payment of the principal of and interest on all the debt securities and the performance of every covenant of the indenture on our part;
|
•
|
immediately after giving effect to such transaction, no event of default, and no event which, after notice or lapse of time, or both, would become an event of default, shall have happened and be continuing; and
|
•
|
we have delivered to the trustee an officers’ certificate and an opinion of counsel each stating that such consolidation or transfer and a supplemental indenture, if applicable, comply with the indenture and that all conditions precedent herein provided for relating to such transaction have been complied with.
|
•
|
a consolidation, merger, sale of assets or other similar transaction that may adversely affect our creditworthiness or the successor or combined entity;
|
•
|
a change in control of us; or
|
•
|
a highly leveraged transaction involving us whether or not involving a change in control.
|
|
(1)
|
|
default for 30 days in payment when due of any interest due with respect to the debt securities of such series;
|
|
(2)
|
|
default in payment when due of principal of or of premium, if any, on the debt securities of such series;
|
|
(3)
|
|
default in the observance or performance of any other covenant or agreement contained in the indenture which default continues for a period of 90 days after we receive written notice specifying the default (and demanding that such default be remedied) from the trustee or the holders of at least 25% of the principal amount of securities of that series then outstanding (with a copy to the trustee if given by holders) (except in the case of a default with respect to certain consolidations, mergers, or sales of assets as set forth in Section 10.01 of the indenture, which will constitute an event of default with such notice requirement but without such passage of time requirement), provided, however, that the sole remedy of holders of the securities for an event of default relating to the failure to file any documents or reports that Honeywell is required to file with the SEC pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, and for any failure to comply with the requirements of Section 314(a)(1) of the Trust Indenture Act of 1939, as amended, which we refer to as the Trust Indenture Act, to provide such documents or reports, within 30 days after filing with the SEC, to the trustee pursuant to Section 14.04 of the indenture, will for the first 60 days after the occurrence of such an event of default, or such shorter period until such event of default has been cured or waived, consist exclusively of the right to receive additional interest on the securities at an annual rate equal to 0.25% of the outstanding principal amount of the securities, and that, on the 61st day after such event of default (if such event of default is not cured or waived prior to such 61st day), the securities will be subject to acceleration as provided in the indenture;
|
|
(4)
|
|
certain events of bankruptcy, insolvency and reorganization; and
|
|
(5)
|
|
any other event of default provided with respect to debt securities of that series.
|
•
|
such holder shall have previously given to the trustee written notice of a continuing event of default;
|
•
|
the holders of at least 25% in aggregate principal amount of the outstanding debt securities of such series have also made such a written request;
|
•
|
such holder or holders have provided indemnity satisfactory to the trustee to institute such proceeding as trustee;
|
•
|
the trustee has not received from the holders of a majority in outstanding principal amount of the debt securities of such series a direction inconsistent with such request; and
|
•
|
the trustee has failed to institute such proceeding within 90 calendar days of such notice.
|
•
|
cure any ambiguity, defect or inconsistency;
|
•
|
provide for uncertificated debt securities in addition to or in place of certificated debt securities;
|
•
|
evidence and provide for the acceptance of appointment by a successor trustee and to add to or change any of the provisions of the indenture as are necessary to provide for or facilitate the administration of the trusts by more than one trustee;
|
•
|
make any change that would provide any additional rights or benefits to the holders of all or any series of debt securities and that does not adversely affect any such holder; or
|
•
|
comply with SEC requirements in order to effect or maintain the qualification of the indenture under the Trust Indenture Act.
|
•
|
change the stated maturity of, or time for payment of interest on, any debt security;
|
•
|
reduce the principal amount of, or the rate of interest or the premium, payable upon the redemption of, if any, on any debt security;
|
•
|
change the place or currency of payment of principal of, or interest or premium, if any, on any debt security;
|
•
|
impair the right to institute suit for the enforcement of any payment on or with respect to such debt securities on or after the stated maturity or prepayment date thereof; or
|
•
|
reduce the percentage in principal amount of debt securities of any series where holders must consent to an amendment, supplement or waiver.
|
•
|
either (a) all debt securities of such series previously authenticated and delivered under the indenture have been delivered to the trustee for cancellation or (b) all debt securities of such series not theretofore delivered to the trustee for cancellation have become due and payable, will become due and payable at their stated maturity within one year, or are to be called for redemption within one year under arrangements satisfactory to the trustee for the giving of notice of redemption by the trustee, and we have deposited or caused to be deposited with the trustee as trust funds in trust for such purpose an amount sufficient to pay and discharge the entire indebtedness on debt securities of such series;
|
•
|
we have paid or caused to be paid all other sums payable under the indenture with respect to the debt securities of such series by us; and
|
•
|
we have delivered to the trustee an officers’ certificate and an opinion of counsel, each to the effect that all conditions precedent relating to the satisfaction and discharge of the indenture as to such series have been satisfied.
|
|
1.
|
|
to any tax, assessment or other governmental charge that would not have been imposed but for the holder, a fiduciary, settlor, beneficiary, member or shareholder of the holder, or a person holding a power over an estate or trust administered by a fiduciary holder, being treated as:
|
|
a.
|
|
being or having been present in, or engaged in a trade or business in, the United States, being treated as having been present in, or engaged in a trade or business in, the United States, or having or having had a permanent establishment in the United States;
|
|
b.
|
|
having a current or former connection with the United States (other than a connection arising solely as a result of the ownership of the debt securities, the receipt of any payment in respect of the debt securities or the enforcement of any rights under the indenture), including being or having been a citizen or resident of the United States or treated as being or having been a resident thereof;
|
|
c.
|
|
being or having been a personal holding company, a passive foreign investment company or a controlled foreign corporation for U.S. federal income tax purposes, a foreign tax exempt organization, or a corporation that has accumulated earnings to avoid United States federal income tax;
|
|
d.
|
|
being or having been a “10-percent shareholder,” as defined in section 871(h)(3) of the United States Internal Revenue Code of 1986, as amended (the “Code”), or any successor provision, of us; or
|
|
e.
|
|
being a bank receiving payments on an extension of credit made pursuant to a loan agreement entered into in the ordinary course of its trade or business, within the meaning of section 881(c)(3) of the Code or any successor provision;
|
|
2.
|
|
to any holder that is not the sole beneficial owner of the debt securities, or a portion of the debt securities, or that is a fiduciary, partnership or limited liability company, but only to the extent that a beneficiary or settlor with respect to the fiduciary, a beneficial owner or member of the partnership or limited liability company would not have been entitled to the payment of an additional amount had the beneficiary, settlor, beneficial owner or member received directly its beneficial or distributive share of the payment;
|
|
3.
|
|
to any tax, assessment or other governmental charge that would not have been imposed but for the failure of the holder or any other person to comply with certification, identification or information reporting requirements concerning the nationality, residence, identity or connection with the United States of the holder or beneficial owner of the debt securities, if compliance is required by statute, by regulation of the United States or any taxing authority therein or by an applicable income tax treaty to which the United States is a party as a precondition to exemption from such tax, assessment or other governmental charge;
|
|
4.
|
|
to any tax, assessment or other governmental charge that is imposed otherwise than by withholding by us or a paying agent from the payment;
|
|
5.
|
|
to any estate, inheritance, gift, sales, excise, transfer, wealth, capital gains or personal property tax or similar tax, assessment or other governmental charge;
|
|
6.
|
|
to any tax, assessment or other governmental charge that would not have been imposed but for the presentation by the holder of any debt securities, where presentation is required, for payment on a date more than 30 days after the date on which payment became due and payable or the date on which payment thereof is duly provided for, whichever occurs later;
|
|
7.
|
|
to any tax, assessment or other governmental charge required to be withheld or deducted that is imposed on a payment pursuant to Sections 1471 through 1474 of the Code (or any amended or successor version of such Sections that is substantively comparable and not materially more onerous to comply with), any Treasury regulations promulgated thereunder, or any other official interpretations thereof (collectively, “FATCA”), any agreement (including any intergovernmental agreement) entered into in connection therewith, or any law, regulation or other official guidance enacted in any jurisdiction implementing FATCA or an intergovernmental agreement in respect of FATCA;
|
|
8.
|
|
any tax, assessment or other governmental charge that is imposed or withheld solely by reason of a change in law, regulation, or administrative or judicial interpretation that becomes effective more than 15 days after the payment becomes due or is duly provided for, whichever occurs later;
|
|
9.
|
|
any tax, assessment or other governmental charge imposed by reason of the failure of the beneficial owner to fulfill the statement requirements of Section 871(h) or Section 881(c) of the Code;
|
|
10.
|
|
any tax imposed pursuant to Section 871(h)(6) or 881(c)(6) of the Code (or any amended or successor provisions); or
|
|
11.
|
|
in the case of any combination of items (1) through (10).
|
•
|
the ownership or acquisition of securities issued under any indenture or having a maturity of one year or more at the time of acquisition by the trustee;
|
•
|
certain advances authorized by a receivership or bankruptcy court of competent jurisdiction or by the indenture;
|
•
|
disbursements made in the ordinary course of business in its capacity as indenture trustee, transfer agent, registrar, custodian or paying agent or in any other similar capacity;
|
•
|
indebtedness created as a result of goods or securities sold in a cash transaction or services rendered or premises rented; or
|
•
|
the acquisition, ownership, acceptance or negotiation of certain drafts, bills of exchange, acceptances or other obligations.
|
1.
|
History. Honeywell International Inc. (the “Corporation”) initially established an excess benefit plan effective January 1, 2006 when the Supplemental Non-Qualified Savings Plan For Highly Compensated Employees Of Honeywell International Inc. And Its Subsidiaries (Career Band 5 and Below) was merged with and into the Supplemental Non-Qualified Savings Plan for Highly Compensated Employees of Honeywell International Inc. and its Subsidiaries (Career Band 6 and above) and the resulting plan from this merger became known as the Supplemental Non-Qualified Savings Plan for Highly Compensated Employees of Honeywell International Inc. and its Subsidiaries.
|
2.
|
Eligibility. Any employee of the Corporation and its participating affiliates who is (i) the Chief Executive Officer of the Corporation or designated by the Corporation as an “officer” of the Corporation (an “Officer”), during the designated election period (the “Open Enrollment Period”) that occurs before the beginning of the applicable Plan Year (as defined below), or (ii) (A) an Executive level employee but not an Officer at any time during the Open Enrollment Period that occurs before the beginning of the applicable Plan Year, and (B) whose year-to-date Base Annual Salary (as defined in Subparagraph 4(a)(i)) that is paid and posted to the Plan’s electronic recordkeeping system as of the last paydate in September of the Plan Year immediately preceding the applicable Plan Year exceeds the dollar limit for a highly compensated employee for the Plan Year under Section 414(q) of the Code, shall be eligible (an “Eligible Employee”) to participate in the Plan (subject to the limitations set forth in the following paragraph) and elect deferrals of Base Annual Salary for such Plan Year effective as of the first paydate of such Plan Year that follows the Open Enrollment Period.
|
3.
|
Definitions. Capitalized terms not otherwise defined in the Plan have the respective meanings set forth in the applicable Qualified Savings Plans.
|
4.
|
Participation.
|
5.
|
Contributions to Participants’ Accounts.
|
6.
|
The Participant’s Account.
|
7.
|
Distribution from Accounts.
|
8.
|
Distribution on Death.
|
9.
|
Payment in the Event of Hardship.
|
10.
|
Change in Control.
|
11.
|
Administration.
|
12.
|
Claims Procedures and Appeals.
|
13.
|
Miscellaneous.
|
1.
|
History. Honeywell International Inc. (the “Corporation”) previously established this supplemental non-qualified Honeywell Deferred Incentive Compensation Plan (formerly the Salary and Incentive Award Deferral Plan for Selected Employees of Honeywell International Inc. and its Affiliates) (the “Plan”) and has amended the Plan several times since its initial effective date, including an amendment and restatement effective January 1, 2009 to comply with the requirements of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) and corresponding rules and regulations under Section 409A of the Code. This Plan document covers any Participant (as defined below) who was entitled to receive a benefit from the Plan as of December 31, 2019, but who did not receive full payment of such benefit under the Plan as of such date, as well as any individual who becomes a Participant in the Plan on or after January 1, 2020. Plan benefit payments commencing before January 1, 2020 are governed by the terms of the Plan as they existed prior to this amendment and restatement and are either grandfathered from the requirements of Section 409A of the Code or payable pursuant to a fixed schedule as required by, and in compliance with, Section 409A of the Code.
|
2.
|
Eligibility. Any employee of the Corporation and its participating affiliates who is designated by the Corporation as an Executive level employee during the designated election period (the “Open Enrollment Period”) for the applicable Plan Year (as defined below) shall be eligible (an “Eligible Employee”) to participate in the Plan and elect deferrals of compensation (as described in Paragraph 4 below) for such Plan Year effective as of the January 1 of the Plan Year that follows the Open Enrollment Period. The Management Development and Compensation Committee (or its designee) (the “Committee”) shall designate the period prior to the applicable Plan Year that shall constitute the Open Enrollment Period, in its sole discretion; provided, however, in no event shall such Open Enrollment Period end later than the December 31 that precedes the Plan Year for which the election to participate in the Plan applies. For purposes of this Plan, the “Plan Year” shall mean the calendar year.
|
3.
|
Participation. Each Eligible Employee who wishes to participate in the Plan for a particular Plan Year (a “Participant”) must file a deferral election (the “Election”) with the Committee during the Open Enrollment Period in the form and manner determined by the Committee, which election shall designate the portion of the compensation elements (as described in Paragraph 4 below) to be deferred for such Plan Year and the form in which such deferral amounts, and interest thereon, shall be distributed (as described in Paragraph 8 below). The compensation elements deferred for a particular Plan Year shall be credited to an unfunded deferred compensation account maintained for the Participant under the Plan (the “Participant Account” or “Account”). Except as otherwise may be permitted by Section 409A of the Code and the Committee, a Participant may not modify his or her deferral election for a Plan Year at any time during the Plan Year.
|
4.
|
Contributions to Participant Accounts.
|
5.
|
Deferral Requirements.
|
6.
|
Interest Equivalents. Deferral Amounts shall accrue additional amounts equivalent to interest (“Interest Equivalents”), compounded daily, from the date the Deferral Amount is credited to the Account to the date of distribution as set forth in this Paragraph 6.
|
7.
|
Participant Accounts. All amounts credited to a Participant’s Account pursuant to Paragraphs 4 and 6 shall be unfunded general obligations of the Corporation, and no Participant shall have any claim to or security interest in any asset of the Corporation on account thereof.
|
8.
|
Distribution from Accounts.
|
9.
|
Distribution on Death. If a Participant dies after payments under this Plan have commenced but before all amounts credited to the Participant’s Account have been distributed, the balance in the Account shall be paid as soon as practicable thereafter to the beneficiary designated in writing by the Participant, but not later than 60 days after the date of the Participant’s death. Payment to a beneficiary pursuant to a designation by a Participant shall be made in one lump sum cash payment. Such beneficiary designations shall be effective when received by the Corporation, and shall remain in effect until rescinded or modified by the Participant by an appropriate written direction.
|
10.
|
Payment in the Event of Hardship. For Deferral Amounts and Interest Equivalents credited to a Participant’s Grandfathered Account, upon receipt of a request from a Participant, delivered in writing to the Corporation along with a hardship distribution form and supporting documentation of the hardship, the Senior Vice President - Human Resources and Communications (or his designee), may cause the Corporation to accelerate (or require the subsidiary of the Corporation which employs or employed the Participant to accelerate) payment of all or any part of the Deferral Amount and Interest Equivalents credited to the Participant’s Account, if it finds in its sole discretion that payment of such amounts in accordance with the Participant’s prior election under Paragraph 4 hereof would result in severe financial hardship to the Participant and such hardship is the result of an unforeseeable emergency caused by circumstances beyond the control of the Participant. An “unforeseeable emergency” means a severe financial hardship to the Participant resulting from (1) an illness or accident that occurs to the Participant, the Participant’s spouse or the Participant’s dependent (as
|
11.
|
Change in Control.
|
12.
|
Administration.
|
13.
|
Claims Procedures and Appeals.
|
14.
|
Miscellaneous.
|
Year Award Earned
|
Vested Rate
|
Contingent Rate
|
Total Rate
|
1975 - 1992
|
Treasury bills +
|
N/A
|
Treasury bills +
|
|
3%*
|
N/A
|
3%*
|
1993 - 1997
|
10%
|
N/A
|
10%
|
1998 - 2000
|
8%
|
3%
|
11%
|
2001- 2002
|
7%
|
3%
|
10%
|
2003
|
3%
|
5%
|
8%
|
2004 initial rate
|
3%
|
5%
|
8%
|
2005 initial rate **
|
8%**
|
N/A
|
8%**
|
2006 initial rate **
|
5.8%**
|
N/A
|
5.8%**
|
2007 initial rate **
|
5.8%**
|
N/A
|
5.8%**
|
2008 initial rate **
|
6.3%**
|
N/A
|
6.3%**
|
2009 initial rate **
|
7.2%**
|
N/A
|
7.2%**
|
2010 initial rate **
|
4.8%**
|
N/A
|
4.8%**
|
2011 initial rate **
|
3.84%**
|
N/A
|
3.84%**
|
2012 initial rate **
|
3.65%**
|
N/A
|
3.65%**
|
2013 initial rate **
|
2.90%**
|
N/A
|
2.90%**
|
2014 initial rate **
|
4.09%**
|
N/A
|
4.09%**
|
2015 initial rate **
|
3.66%**
|
N/A
|
3.66%**
|
2016 initial rate **
|
3.64%**
|
N/A
|
3.64%**
|
2017 initial rate **
|
2.69%**
|
N/A
|
2.69%**
|
2018 initial rate **
|
3.38%**
|
N/A
|
3.38%**
|
2019 initial rate **
|
4.06%
|
N/A
|
4.06%
|
2020 initial rate **
|
2.76%
|
N/A
|
2.76%
|
Year Award Earned
|
Vested Rate
|
Contingent Rate
|
Total Rate
|
1975 - 1997
|
Treasury bills +
|
N/A
|
Treasury bills +
|
|
3%*
|
N/A
|
3%*
|
1998 - 2002
|
6%
|
3%
|
9%
|
Year Salary Earned
|
Vested Rate
|
Contingent Rate
|
Total Rate
|
1994 - 1998
|
10%
|
N/A
|
10%
|
1999 - 2001
|
8%
|
3%
|
11%
|
2002 - 2002
|
7%
|
3%
|
10%
|
2003
|
3%
|
5%
|
8%
|
2004
|
3%
|
5%
|
8%
|
2005 initial rate**
|
3%
|
5%
|
8%
|
15.
|
History. Honeywell Inc., a predecessor of the Corporation, previously established a supplemental non-qualified plan named the Honeywell Executive Deferred Compensation Plan (the “Honeywell Plan”). The Honeywell Plan was created to establish rules for the deferral and payment of deferred compensation earned under the Honeywell Inc. bonus plans named the “Honeywell Corporate Executive Compensation Plan,” the “Honeywell Senior Management Performance Incentive Plan,” and the “Multi-Year Incentive Program.”
|
16.
|
Definitions. For purposes of this Schedule B, the following definitions shall apply:
|
17.
|
Interest Credits. An interest credit shall be made to the participant’s Account as of (a) each February 15, and (b) the date as of which any distribution is made from the participant’s Account, for the year or portion thereof then ended based on the average daily balance of the Account for such year or portion thereof. The rate of interest shall be 120% of the long-term Applicable Federal Rate published under section 1274(d) of the Code for the month in which the interest credit is made to the Account.
|
18.
|
Distributions. The following provisions shall apply to distributions under this Schedule B.
|
19.
|
Survivor Benefits.
|
Name
|
Country or State
of Incorporation
|
Percent
Ownership
|
|
AlliedSignal Aerospace Service LLC
|
Delaware
|
100
|
%
|
BW Technologies Partnership
|
Canada
|
100
|
%
|
COM DEV Ltd.
|
Canada
|
100
|
%
|
Elster American Meter Company, LLC
|
Delaware
|
100
|
%
|
Elster GmbH
|
Germany
|
100
|
%
|
Elster s.r.o.
|
Slovakia
|
100
|
%
|
EMS Technologies Canada, Ltd.
|
Canada
|
100
|
%
|
Grimes Aerospace Company
|
Delaware
|
100
|
%
|
Hand Held Products, Inc.
|
Delaware
|
100
|
%
|
Honeywell (China) Co., Ltd.
|
China
|
100
|
%
|
Honeywell Aerospace Avionics Malaysia Sdn Bhd
|
Malaysia
|
100
|
%
|
Honeywell Aerospace de México, S. de R.L. de C.V.
|
Mexico
|
100
|
%
|
Honeywell Aerospace De Puerto Rico, Inc.
|
Puerto Rico
|
100
|
%
|
Honeywell Aerospace UK
|
United Kingdom
|
100
|
%
|
Honeywell Automation India Limited
|
India
|
75
|
%
|
Honeywell Co., Ltd.
|
Korea
|
100
|
%
|
Honeywell Control Systems Limited
|
United Kingdom
|
100
|
%
|
Honeywell Deutschland Holding GmbH
|
Germany
|
100
|
%
|
Honeywell Electronic Materials (Thailand) Co., Ltd.
|
Thailand
|
100
|
%
|
Honeywell Electronic Materials Manufacturing, LLC
|
Washington
|
100
|
%
|
Honeywell Energy Services Inc.
|
Delaware
|
100
|
%
|
Honeywell Europe NV
|
Belgium
|
100
|
%
|
Honeywell Federal Manufacturing & Technologies, LLC
|
Delaware
|
100
|
%
|
Honeywell Finance LP
|
Delaware
|
100
|
%
|
Honeywell Fluorine Products Europe B.V.
|
Netherlands
|
100
|
%
|
Honeywell Holdings International Inc.
|
Delaware
|
100
|
%
|
Honeywell International (India) Private Limited
|
India
|
100
|
%
|
Honeywell International Sàrl
|
Switzerland
|
100
|
%
|
Honeywell International Sdn. Bhd.
|
Malaysia
|
100
|
%
|
Honeywell Limited / Honeywell Limitée
|
Canada
|
100
|
%
|
Honeywell Limited
|
Australia
|
100
|
%
|
Honeywell Performance Materials and Technologies (China) Co Ltd
|
China
|
100
|
%
|
Honeywell Safety Products USA, Inc.
|
Delaware
|
100
|
%
|
Honeywell Specialty Chemicals Seelze GmbH
|
Germany
|
100
|
%
|
Honeywell Technology Solutions Lab Pvt. Ltd.
|
India
|
100
|
%
|
Honeywell UK Limited
|
United Kingdom
|
100
|
%
|
Intelligrated Headquarters, LLC
|
Delaware
|
100
|
%
|
Intelligrated Systems, Inc.
|
Delaware
|
100
|
%
|
Intelligrated Systems, LLC
|
Delaware
|
100
|
%
|
Intermec Technologies (S) Pte Ltd
|
Singapore
|
100
|
%
|
International Turbine Engine Company LLC
|
Delaware
|
51
|
%
|
Life Safety Distribution GmbH
|
Switzerland
|
100
|
%
|
Morning Pride Manufacturing L.L.C.
|
Delaware
|
100
|
%
|
Novar ED&S Limited
|
United Kingdom
|
100
|
%
|
Novar GmbH
|
Germany
|
100
|
%
|
Salisbury Electrical Safety L.L.C.
|
Delaware
|
100
|
%
|
Transnorm System Inc.
|
Delaware
|
100
|
%
|
Tridium, Inc.
|
Delaware
|
100
|
%
|
UOP CH Sàrl
|
Switzerland
|
100
|
%
|
UOP Limited
|
United Kingdom
|
100
|
%
|
UOP LLC
|
Delaware
|
100
|
%
|
UOP Products LLC
|
Delaware
|
100
|
%
|
UOP Russell LLC
|
Delaware
|
100
|
%
|
Vocollect, Inc.
|
Pennsylvania
|
100
|
%
|
|
/s/ Duncan Angove
|
|
|
Duncan Angove
|
|
|
|
|
|
/s/ William Ayer
|
|
|
William Ayer
|
|
|
|
|
|
/s/ Kevin Burke
|
|
|
Kevin Burke
|
|
|
|
|
|
/s/ D. Scott Davis
|
|
|
D. Scott Davis
|
|
|
|
|
|
/s/ Linnet Deily
|
|
|
Linnet Deily
|
|
|
|
|
|
/s/ Deborah Flint
|
|
|
Deborah Flint
|
|
|
|
|
|
/s/ Judd Gregg
|
|
|
Judd Gregg
|
|
|
/s/ Clive Hollick
|
|
|
Clive Hollick
|
|
|
|
|
|
/s/ Grace Lieblein
|
|
|
Grace Lieblein
|
|
|
|
|
|
/s/ Jaime Chico Pardo
|
|
|
Jaime Chico Pardo
|
|
|
|
|
|
/s/ George Paz
|
|
|
George Paz
|
|
|
|
|
|
/s/ Robin Washington
|
|
|
Robin Washington
|
|
|
/s/ Duncan Angove
|
|
|
Duncan Angove
|
|
|
|
|
|
/s/ William Ayer
|
|
|
William Ayer
|
|
|
|
|
|
/s/ Kevin Burke
|
|
|
Kevin Burke
|
|
|
|
|
|
/s/ D. Scott Davis
|
|
|
D. Scott Davis
|
|
|
|
|
|
/s/ Linnet Deily
|
|
|
Linnet Deily
|
|
|
|
|
|
/s/ Deborah Flint
|
|
|
Deborah Flint
|
|
|
|
|
|
/s/ Judd Gregg
|
|
|
Judd Gregg
|
|
|
|
|
|
/s/ Clive Hollick
|
|
|
Clive Hollick
|
|
|
|
|
|
/s/ Grace Lieblein
|
|
|
Grace Lieblein
|
|
|
|
|
|
/s/ Jaime Chico Pardo
|
|
|
Jaime Chico Pardo
|
|
|
|
|
|
/s/ George Paz
|
|
|
George Paz
|
|
|
|
|
|
/s/ Robin Washington
|
|
|
Robin Washington
|
|
|
/s/ Duncan Angove
|
|
|
Duncan Angove
|
|
|
|
|
|
/s/ William Ayer
|
|
|
William Ayer
|
|
|
|
|
|
/s/ Kevin Burke
|
|
|
Kevin Burke
|
|
|
|
|
|
/s/ D. Scott Davis
|
|
|
D. Scott Davis
|
|
|
|
|
|
/s/ Linnet Deily
|
|
|
Linnet Deily
|
|
|
|
|
|
/s/ Deborah Flint
|
|
|
Deborah Flint
|
|
|
|
|
|
/s/ Judd Gregg
|
|
|
Judd Gregg
|
|
|
|
|
|
/s/ Clive Hollick
|
|
|
Clive Hollick
|
|
|
|
|
|
/s/ Grace Lieblein
|
|
|
Grace Lieblein
|
|
|
|
|
|
/s/ Jaime Chico Pardo
|
|
|
Jaime Chico Pardo
|
|
|
|
|
|
/s/ George Paz
|
|
|
George Paz
|
|
|
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/s/ Robin Washington
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Robin Washington
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(i)
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to sign the Company’s Annual Report on Form 10-K under the Securities Exchange Act of 1934 for the year ended December 31, 2019,
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/s/ Darius Adamczyk
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Darius Adamczyk
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/s/ Darius Adamczyk
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Darius Adamczyk
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/s/ Darius Adamczyk
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Darius Adamczyk
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1
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I have reviewed this Annual Report on Form 10-K of Honeywell International Inc.;
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2
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4
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The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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a)
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designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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b)
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designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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c)
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evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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d)
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disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting;
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5
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The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
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a)
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all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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b)
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any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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Date: February 14, 2020
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By:
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/s/ Darius Adamczyk
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Darius Adamczyk
Chairman and Chief Executive Officer
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1
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I have reviewed this Annual Report on Form 10-K of Honeywell International Inc.;
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2
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4
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The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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b)
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designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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c)
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evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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d)
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disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting;
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5
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The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
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a)
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all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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b)
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any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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Date: February 14, 2020
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By:
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/s/ Gregory P. Lewis
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Gregory P. Lewis
Senior Vice President and Chief Financial Officer
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(1)
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The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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(2)
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The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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Date: February 14, 2020
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By:
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/s/ Darius Adamczyk
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Darius Adamczyk
Chairman and Chief Executive Officer
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(1)
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The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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(2)
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The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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Date: February 14, 2020
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By:
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/s/ Gregory P. Lewis
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Gregory P. Lewis
Senior Vice President and Chief Financial Officer
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