SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Form 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT – October 19, 2018
(Date of earliest event reported)
honeywell international inc.
(Exact name of Registrant as specified in its Charter)
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DELAWARE
(State or other jurisdiction of incorporation) |
1-8974
(Commission File Number) |
22-2640650
(I.R.S. Employer Identification Number) |
| 115 TABOR ROAD, MORRIS PLAINS, NEW JERSEY | 07950-2546 |
| (Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code: (973) 455-2000
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
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ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION .
In the third quarter of 2018, Honeywell International Inc. (the “Company”) revised its accounting to correct the time period associated with the determination of appropriate accruals for the legacy Bendix asbestos-related liability for unasserted claims. The prior accounting treatment applied a five-year time horizon; the revised treatment reflects the full term of epidemiological projections through 2059. Previously issued financial statements have been revised for this correction.
On January 1, 2018, we retrospectively adopted the new accounting guidance on presentation of net periodic pension costs. Following the adoption of this standard, we continue to record the service cost component of Pension ongoing (income) expense in Cost of products and service sold and Selling, general and administrative expenses. The remaining components of net benefit costs within pension ongoing (income) expense, primarily interest costs and assumed return on plan assets, are now recorded in Other (income) expense. Prior year amounts have been reclassified to conform to the current year presentation.
The impact of the above revision and retrospective adoption on the Company’s previously reported consolidated balance sheets and consolidated statement of operations are presented in Exhibit 99 filed herewith.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS .
| (d) | Exhibit 99 Honeywell International Inc. – Historical financial statements |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Date: October 19, 2018 | HONEYWELL INTERNATIONAL INC. | ||
| By: /s/ Anne T. Madden | |||
| Anne T. Madden | |||
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Senior Vice President, General Counsel and
Corporate Secretary |
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Exhibit 99
Honeywell International Inc.
Consolidated Statement of Operations
(Unaudited)
| Year Ended December 31, 2017 | ||||||||||||
| (Dollars in millions, except per share amounts) | ||||||||||||
| As Reported | Adjustments | As Revised | ||||||||||
| Product sales | $ | 32,317 | $ | - | $ | 32,317 | ||||||
| Service sales | 8,217 | - | 8,217 | |||||||||
| Net sales | 40,534 | - | 40,534 | |||||||||
| Costs, expenses and other | ||||||||||||
| Costs of products sold | 22,659 | 517 | 23,176 | |||||||||
| Costs of services sold | 4,916 | 52 | 4,968 | |||||||||
| 27,575 | 569 | 28,144 | ||||||||||
| Selling, general and administrative expenses | 5,808 | 279 | 6,087 | |||||||||
| Other (income) expense | (67 | ) | (896 | ) | (963 | ) | ||||||
| Interest and other financial charges | 316 | - | 316 | |||||||||
| 33,632 | (48 | ) | 33,584 | |||||||||
| Income before taxes | 6,902 | 48 | 6,950 | |||||||||
| Tax expense | 5,204 | 158 | 5,362 | |||||||||
| Net income | 1,698 | (110 | ) | 1,588 | ||||||||
| Less: Net income attributable to noncontrolling interest | 43 | - | 43 | |||||||||
| Net income attributable to Honeywell | $ | 1,655 | $ | (110 | ) | $ | 1,545 | |||||
| Earnings per share of common stock-basic | $ | 2.17 | $ | (0.14 | ) | $ | 2.03 | |||||
| Earnings per share of common stock-assuming dilution | $ | 2.14 | $ | (0.14 | ) | $ | 2.00 | |||||
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Honeywell International Inc.
Consolidated Statement of Operations
(Unaudited)
| Year Ended December 31, 2016 | ||||||||||||
| (Dollars in millions, except per share amounts) | ||||||||||||
| As Reported | Adjustments | As Revised | ||||||||||
| Product sales | $ | 31,362 | $ | - | $ | 31,362 | ||||||
| Service sales | 7,940 | - | 7,940 | |||||||||
| Net sales | 39,302 | - | 39,302 | |||||||||
| Costs, expenses and other | ||||||||||||
| Costs of products sold | 22,170 | 442 | 22,612 | |||||||||
| Costs of services sold | 4,980 | 85 | 5,065 | |||||||||
| 27,150 | 527 | 27,677 | ||||||||||
| Selling, general and administrative expenses | 5,469 | 105 | 5,574 | |||||||||
| Other (income) expense | (102 | ) | (637 | ) | (739 | ) | ||||||
| Interest and other financial charges | 338 | - | 338 | |||||||||
| 32,855 | (5 | ) | 32,850 | |||||||||
| Income before taxes | 6,447 | 5 | 6,452 | |||||||||
| Tax expense | 1,601 | 2 | 1,603 | |||||||||
| Net income | 4,846 | 3 | 4,849 | |||||||||
| Less: Net income attributable to noncontrolling interest | 37 | - | 37 | |||||||||
| Net income attributable to Honeywell | $ | 4,809 | $ | 3 | $ | 4,812 | ||||||
| Earnings per share of common stock-basic | $ | 6.29 | $ | 0.01 | $ | 6.30 | ||||||
| Earnings per share of common stock-assuming dilution | $ | 6.20 | $ | 0.01 | $ | 6.21 | ||||||
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Honeywell International Inc.
Consolidated Statement of Operations
(Unaudited)
| Year Ended December 31, 2015 | ||||||||||||
| (Dollars in millions, except per share amounts) | ||||||||||||
| As Reported | Adjustments | As Revised | ||||||||||
| Product sales | $ | 30,695 | $ | - | $ | 30,695 | ||||||
| Service sales | 7,886 | - | 7,886 | |||||||||
| Net sales | 38,581 | - | 38,581 | |||||||||
| Costs, expenses and other | ||||||||||||
| Costs of products sold | 21,775 | 354 | 22,129 | |||||||||
| Costs of services sold | 4,972 | 68 | 5,040 | |||||||||
| 26,747 | 422 | 27,169 | ||||||||||
| Selling, general and administrative expenses | 5,006 | 205 | 5,211 | |||||||||
| Other (income) expense | (68 | ) | (634 | ) | (702 | ) | ||||||
| Interest and other financial charges | 310 | - | 310 | |||||||||
| 31,995 | (7 | ) | 31,988 | |||||||||
| Income before taxes | 6,586 | 7 | 6,593 | |||||||||
| Tax expense | 1,739 | 4 | 1,743 | |||||||||
| Net income | 4,847 | 3 | 4,850 | |||||||||
| Less: Net income attributable to noncontrolling interest | 79 | - | 79 | |||||||||
| Net income attributable to Honeywell | $ | 4,768 | $ | 3 | $ | 4,771 | ||||||
| Earnings per share of common stock-basic | $ | 6.11 | $ | 0.01 | $ | 6.12 | ||||||
| Earnings per share of common stock-assuming dilution | $ | 6.04 | $ | - | $ | 6.04 | ||||||
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Honeywell International Inc.
Consolidated Balance Sheet
(Unaudited)
| December 31, 2017 | December 31, 2016 | |||||||||||||||||||||||
| (Dollars in millions) | ||||||||||||||||||||||||
| As Reported | Adjustments | As Revised | As Reported | Adjustments | As Revised | |||||||||||||||||||
| ASSETS | ||||||||||||||||||||||||
| Current assets: | ||||||||||||||||||||||||
| Cash and cash equivalents | $ | 7,059 | $ | - | $ | 7,059 | $ | 7,843 | $ | - | $ | 7,843 | ||||||||||||
| Short-term investments | 3,758 | - | 3,758 | 1,520 | - | 1,520 | ||||||||||||||||||
| Accounts receivable - net | 8,866 | - | 8,866 | 8,177 | - | 8,177 | ||||||||||||||||||
| Inventories | 4,613 | - | 4,613 | 4,366 | - | 4,366 | ||||||||||||||||||
| Other current assets | 1,706 | - | 1,706 | 1,152 | - | 1,152 | ||||||||||||||||||
| Total current assets | 26,002 | - | 26,002 | 23,058 | - | 23,058 | ||||||||||||||||||
| Investments and long-term receivables | 667 | - | 667 | 587 | - | 587 | ||||||||||||||||||
| Property, plant and equipment - net | 5,926 | - | 5,926 | 5,793 | - | 5,793 | ||||||||||||||||||
| Goodwill | 18,277 | - | 18,277 | 17,707 | - | 17,707 | ||||||||||||||||||
| Other intangible assets - net | 4,496 | - | 4,496 | 4,634 | - | 4,634 | ||||||||||||||||||
| Insurance recoveries for asbestos related liabilities | 411 | 68 | 479 | 417 | 80 | 497 | ||||||||||||||||||
| Deferred income taxes | 236 | 15 | 251 | 347 | 340 | 687 | ||||||||||||||||||
| Other assets | 3,372 | - | 3,372 | 1,603 | - | 1,603 | ||||||||||||||||||
| Total assets | $ | 59,387 | $ | 83 | $ | 59,470 | $ | 54,146 | $ | 420 | $ | 54,566 | ||||||||||||
| LIABILITIES | ||||||||||||||||||||||||
| Current liabilities: | ||||||||||||||||||||||||
| Accounts payable | 6,584 | - | 6,584 | 5,690 | - | 5,690 | ||||||||||||||||||
| Commercial paper and other short-term borrowings | 3,958 | - | 3,958 | 3,366 | - | 3,366 | ||||||||||||||||||
| Current maturities of long-term debt | 1,351 | - | 1,351 | 227 | - | 227 | ||||||||||||||||||
| Accrued liabilities | 6,968 | - | 6,968 | 7,048 | - | 7,048 | ||||||||||||||||||
| Total current liabilities | 18,861 | - | 18,861 | 16,331 | - | 16,331 | ||||||||||||||||||
| Long-term debt | 12,573 | - | 12,573 | 12,182 | - | 12,182 | ||||||||||||||||||
| Deferred income taxes | 2,894 | (230 | ) | 2,664 | 486 | (64 | ) | 422 | ||||||||||||||||
| Postretirement benefit obligations other than pensions | 512 | - | 512 | 473 | - | 473 | ||||||||||||||||||
| Asbestos related liabilities | 1,173 | 1,087 | 2,260 | 1,014 | 1,148 | 2,162 | ||||||||||||||||||
| Other liabilties | 5,930 | - | 5,930 | 4,110 | - | 4,110 | ||||||||||||||||||
| Redeemable noncontrolling interest | 5 | - | 5 | 3 | - | 3 | ||||||||||||||||||
| SHAREOWNERS' EQUITY | ||||||||||||||||||||||||
| Capital – common stock issued | 958 | - | 958 | 958 | - | 958 | ||||||||||||||||||
| – additional paid–in capital | 6,212 | - | 6,212 | 5,781 | - | 5,781 | ||||||||||||||||||
| Common stock held in treasury, at cost | (15,914 | ) | - | (15,914 | ) | (13,366 | ) | - | (13,366 | ) | ||||||||||||||
| Accumulated other comprehensive loss | (2,235 | ) | - | (2,235 | ) | (2,714 | ) | - | (2,714 | ) | ||||||||||||||
| Retained earnings | 28,255 | (774 | ) | 27,481 | 28,710 | (664 | ) | 28,046 | ||||||||||||||||
| Total Honeywell shareowners’ equity | 17,276 | (774 | ) | 16,502 | 19,369 | (664 | ) | 18,705 | ||||||||||||||||
| Noncontrolling interest | 163 | - | 163 | 178 | - | 178 | ||||||||||||||||||
| Total shareowners’ equity | 17,439 | (774 | ) | 16,665 | 19,547 | (664 | ) | 18,883 | ||||||||||||||||
| Total liabilities, redeemable noncontrolling interest and shareowners' equity | $ | 59,387 | $ | 83 | $ | 59,470 | $ | 54,146 | $ | 420 | $ | 54,566 | ||||||||||||
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