Honeywell International Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Honeywell International Inc. filed its Q1 2024 10-Q report, detailing financial performance and operational status.</b>

AI Summary

HONEYWELL INTERNATIONAL INC (HON) filed a Quarterly Report (10-Q) with the SEC on April 25, 2024. Honeywell International Inc. filed a 10-Q report for the period ending March 31, 2024. The filing covers the first quarter of 2024. The company's fiscal year ends on December 31st. Honeywell International Inc. is incorporated in Delaware. The company's primary SIC code is 3724 for Aircraft Engines & Engine Parts.

Why It Matters

For investors and stakeholders tracking HONEYWELL INTERNATIONAL INC, this filing contains several important signals. This 10-Q filing provides investors with a quarterly update on Honeywell's financial health, operational segments, and any material changes since the last report. Understanding the details within this filing is crucial for assessing the company's performance, identifying potential risks, and making informed investment decisions regarding HON.

Risk Assessment

Risk Level: medium — HONEYWELL INTERNATIONAL INC shows moderate risk based on this filing. The filing is a standard quarterly report (10-Q), which typically contains routine financial information and does not usually signal significant unexpected events. However, the sheer volume of data and potential for detailed segment performance can introduce complexity.

Analyst Insight

Review the detailed segment revenues and growth rates within the 10-Q to identify which business units are driving performance and which may be facing headwinds.

Revenue Breakdown

Key Numbers

• 2024-03-31 — Period End Date (CONFORMED PERIOD OF REPORT)
• 2024-04-25 — Filing Date (FILED AS OF DATE)
• 3724 — SIC Code (STANDARD INDUSTRIAL CLASSIFICATION)
• 1231 — Fiscal Year End (FISCAL YEAR END)

Key Players & Entities

• HONEYWELL INTERNATIONAL INC (company) — FILER
• HON (company) — tk
• 2024-03-31 (date) — CONFORMED PERIOD OF REPORT
• 2024-04-25 (date) — FILED AS OF DATE
• ALLIEDSIGNAL INC (company) — FORMER COMPANY
• 1994-09-29 (date) — DATE OF NAME CHANGE
• 704-627-6200 (phone_number) — BUSINESS PHONE
• DE (state) — STATE OF INCORPORATION

FAQ

Key Dates

• 2024-03-31: Quarterly Period End — End of the first fiscal quarter of 2024.
• 2024-04-25: Filing Date — Date the 10-Q report was officially filed with the SEC.

Key Financial Figures

• $1 — ich registered Common Stock, par value $1 per share HON The Nasdaq Stock Market L

Filing Documents

• hon-20240331.htm (10-Q) — 1654KB
• exhibit10303312024.htm (EX-10.3) — 32KB
• exhibit31-103312024.htm (EX-31.1) — 19KB
• exhibit31-203312024.htm (EX-31.2) — 19KB
• exhibit32-103312024.htm (EX-32.1) — 6KB
• exhibit32-203312024.htm (EX-32.2) — 6KB
• exhibit9503312024.htm (EX-95) — 3KB
• hon-20240331_g1.jpg (GRAPHIC) — 21KB
• hon-20240331_g10.jpg (GRAPHIC) — 45KB
• hon-20240331_g11.jpg (GRAPHIC) — 54KB
• hon-20240331_g12.jpg (GRAPHIC) — 64KB
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• hon-20240331_g15.jpg (GRAPHIC) — 45KB
• hon-20240331_g2.jpg (GRAPHIC) — 91KB
• hon-20240331_g3.jpg (GRAPHIC) — 86KB
• hon-20240331_g4.jpg (GRAPHIC) — 77KB
• hon-20240331_g5.jpg (GRAPHIC) — 38KB
• hon-20240331_g6.jpg (GRAPHIC) — 42KB
• hon-20240331_g7.jpg (GRAPHIC) — 50KB
• hon-20240331_g8.jpg (GRAPHIC) — 35KB
• hon-20240331_g9.jpg (GRAPHIC) — 62KB
• 0000773840-24-000051.txt (&nbsp;) — 12579KB
• hon-20240331.xsd (EX-101.SCH) — 73KB
• hon-20240331_cal.xml (EX-101.CAL) — 101KB
• hon-20240331_def.xml (EX-101.DEF) — 376KB
• hon-20240331_lab.xml (EX-101.LAB) — 798KB
• hon-20240331_pre.xml (EX-101.PRE) — 598KB
• hon-20240331_htm.xml (XML) — 1997KB

Financial Information

PART I Financial Information

Financial Statements and Supplementary Data (unaudited)

ITEM 1 Financial Statements and Supplementary Data (unaudited): 3 Consolidated Statement of Operations (unaudited) – Three Months Ended March 31, 2024, and 2023 3 Consolidated Statement of Comprehensive Income (unaudited) – Three Months Ended March 31, 2024, and 2023 4 Consolidated Balance Sheet (unaudited) – March 31, 2024, and December 31, 2023 5 Consolidated Statement of Cash Flows (unaudited) – Three Months Ended March 31, 2024, and 2023 6 Consolidated Statement of Shareowners' Equity (unaudited) – Three Months Ended March 31, 2024, and 2023 7 Note 1 – Basis of Presentation 8 Note 2 – Summary of Significant Accounting Policies 8 Note 3 – Acquisitions and Divestitures 9 Note 4 – Revenue Recognition and Contracts with Customers 10 Note 5 – Repositioning and Other Charges 13 Note 6 – Income Taxes 15 Note 7 – Inventories 15 Note 8 – Goodwill and Other Intangible Assets—Net 15 Note 9 – Long-term Debt and Credit Agreements 17 Note 10 – Leases 18 Note 11 – Derivative Instruments and Hedging Transactions 19 Note 12 – Fair Value Measurements 21 Note 13 – Earnings Per Share 23 Note 14 – Accumulated Other Comprehensive Income (Loss) 24 Note 15 – Commitments and Contingencies 24 Note 16 – Pension Benefits 29 Note 17 – Other (Income) Expense 29 Note 18 – Segment Financial Data 30

Management's Discussion and Analysis of Financial Condition and Results of Operations

ITEM 2 Management's Discussion and Analysis of Financial Condition and Results of Operations 32

Quantitative and Qualitative Disclosures about Market Risks

ITEM 3 Quantitative and Qualitative Disclosures about Market Risks 47

Controls and Procedures

ITEM 4 Controls and Procedures 47

Other Information

PART II Other Information

Legal Proceedings

ITEM 1 Legal Proceedings 48

Risk Factors

ITEM 1A Risk Factors 48

Unregistered Sales of Equity Securities and Use of Proceeds

ITEM 2 Unregistered Sales of Equity Securities and Use of Proceeds 48

Mine Safety Disclosures

ITEM 4 Mine Safety Disclosures 49

Other Information

ITEM 5 Other Information 49

Signatures

Signatures 51 TABLE OF CONTENTS CAUTIONARY STATEMENT ABOUT FORWARD-LOOKING STATEMENTS We describe many of the trends and other factors that drive our business and future results in the section titled Management's Discussion and Analysis of Financial Condition and Results of Operations and in other parts of this report (including Part II, Item 1A Risk Factors). Such discussions contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act). Forward-looking statements are those that address activities, events, or developments that management intends, expects, projects, believes, or anticipates will or may occur in the future. They are based on management's assumptions and assessments in light of past experience and trends, current economic and industry conditions, expected future developments, and other relevant factors, many of which are difficult to predict and outside of our control. They are not guarantees of future performance, and actual results, developments, and business decisions may differ significantly from those envisaged by our forward-looking statements. We do not undertake to update or revise any of our forward-looking statements, except as required by applicable securities law. Our forward-looking statements are also subject to material risks and uncertainties, including ongoing macroeconomic and geopolitical risks, such as lower GDP growth or recession, capital markets volatility, inflation, and certain regional conflicts, that can affect our performance in both the near- and long-term. In addition, no assurance can be given that any plan, initiative, projection, goal, commitment, expectation, or prospect set forth in this Form 10-Q can or will be achieved. These forward-looking statements should be considered in light of the information included in this report and our other filings with the Securities and Exchange Commission (SEC), including, without limitation, the Ris

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION The financial statements and related notes as of March 31, 2024, should be read in conjunction with the financial statements for the year ended December 31, 2023, contained in the Company's 2023 Annual Report on Form 10-K.

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA HONEYWELL INTERNATIONAL INC. CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) Three Months Ended March 31, 2024 2023 (Dollars in millions, except per share amounts) Product sales $ 6,263 $ 6,310 Service sales 2,842 2,554 Net sales 9,105 8,864 Costs, expenses and other Cost of products sold 4,035 4,068 Cost of services sold 1,548 1,430 Total Cost of products and services sold 5,583 5,498 Research and development expenses 360 357 Selling, general and administrative expenses 1,302 1,317 Other (income) expense ( 231 ) ( 260 ) Interest and other financial charges 220 170 Total costs, expenses and other 7,234 7,082 Income before taxes 1,871 1,782 Tax expense 396 374 Net income 1,475 1,408 Less: Net income attributable to noncontrolling interest 12 14 Net income attributable to Honeywell $ 1,463 $ 1,394 Earnings per share of common stock—basic $ 2.24 $ 2.09 Earnings per share of common stock—assuming dilution $ 2.23 $ 2.07 The Notes to Consolidated Financial Statements are an integral part of this statement. 3 Honeywell International Inc. TABLE OF CONTENTS HONEYWELL INTERNATIONAL INC. CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Unaudited) Three Months Ended March 31, 2024 2023 (Dollars in millions) Net income $ 1,475 $ 1,408 Other comprehensive income (loss), net of tax Foreign exchange translation adjustment 54 ( 58 ) Pension and other postretirement benefit adjustments ( 5 ) ( 12 ) Changes in fair value of available for sale investments — ( 6 ) Cash flow hedges recognized in other comprehensive income (loss) 18 16 Less: Reclassification adjustment for gains (losses) included in net income 4 2 Changes in fair value of cash flow hedges 14 14 Other comprehensive income (loss), net of tax 63 ( 62 ) Comprehensive income 1,538 1,346 Less: Comprehensive income (loss) attributable to the noncontrolling interest ( 12 ) 15 Comprehensive income attributable to Honeywell $ 1,550 $ 1

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Dollars in tables in millions, except per share amounts) NOTE 1. BASIS OF PRESENTATION In the opinion of management, the accompanying unaudited Consolidated Financial Statements reflect all adjustments necessary to present fairly the financial position, results of operations, cash flows, and shareowners' equity of Honeywell International Inc. and its consolidated subsidiaries (Honeywell or the Company) for the periods presented. The interim results of operations and cash flows should not necessarily be taken as indicative of the entire year. Honeywell reports its quarterly financial information using a calendar convention; the first, second, and third quarters are consistently reported as ending on March 31, June 30, and September 30, respectively. It is Honeywell's practice to establish actual quarterly closing dates using a predetermined fiscal calendar, which requires Honeywell's businesses to close their books on a Saturday in order to minimize the potentially disruptive effects of quarterly closing on the Company's business processes. The effects of this practice are generally not significant to reported results for any quarter and only exist within a reporting year. In the event differences in actual closing dates are material to year-over-year comparisons of quarterly or year-to-date results, Honeywell will provide appropriate disclosures. Honeywell's actual closing dates for the three months ended March 31, 2024, and 2023, were March 30, 2024, and April 1, 2023, respectively. NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies of the Company are set forth in Note 1 Summary of Significant Accounting Policies of Notes to Consolidated Financial Statements in the Company's 2023 Annual Report on Form 10-K. The Company includes herein certain updates to those policies. RECLASSIFICATIONS Certain prior year amounts are reclassified to conform to the current year presentation.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Dollars in tables in millions, except per share amounts) In September 2022, the FASB issued ASU 2022-04, Liabilities—Supplier Finance Programs (Topic 405): Disclosure of Supplier Finance Program Obligations , to enhance the transparency of supplier finance programs. The new standard requires annual disclosure of the key terms of the program, a description of where in the financial statements amounts outstanding under the program are presented, a rollforward of such amounts, and interim disclosure of amounts outstanding as of the end of each period. The guidance does not affect recognition, measurement, or financial statement presentation of supplier finance programs. The ASU is effective on January 1, 2023, except for the rollforward, which is effective on January 1, 2024, for annual disclosures. The Company adopted this guidance on January 1, 2023, with the exception of the rollforward adopted on January 1, 2024. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by the transition away from reference rates expected to be discontinued to alternative reference rates. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope , to expand the scope of this guidance to include derivatives. The guidance was effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into on or before December 31, 2022. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 , which extend

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Dollars in tables in millions, except per share amounts) NOTE 4. REVENUE RECOGNITION AND CONTRACTS WITH CUSTOMERS The Company has a comprehensive offering of products and services, including software and technologies, that are sold to a variety of customers in multiple end markets. See the following disaggregated revenue table and related discussions by reportable business segment for details: Three Months Ended March 31, 2024 2023 Aerospace Technologies Commercial Aviation Original Equipment $ 674 $ 541 Commercial Aviation Aftermarket 1,659 1,423 Defense and Space 1,336 1,147 Net Aerospace Technologies sales 3,669 3,111 Industrial Automation Sensing and Safety Technologies 633 690 Productivity Solutions and Services 322 361 Process Solutions 1,313 1,288 Warehouse and Workflow Solutions 210 464 Net Industrial Automation sales 2,478 2,803 Building Automation Products 813 908 Building Solutions 613 579 Net Building Automation sales 1,426 1,487 Energy and Sustainability Solutions UOP 577 565 Advanced Materials 948 896 Net Energy and Sustainability Solutions sales 1,525 1,461 Corporate and All Other 7 2 Net sales $ 9,105 $ 8,864 Aerospace Technologies – A global supplier of products, software, and services for aircrafts that it sells to original equipment manufacturers (OEM) and other customers in a variety of end markets including air transport, regional, business and general aviation aircraft, airlines, aircraft operators, and defense and space contractors. Aerospace Technologies products and services include auxiliary power units, propulsion engines, environmental control systems, integrated avionics, wireless connectivity services, electric power systems, engine controls, flight safety, communications, navigation hardware, data and software applications, radar and surveillance systems, aircraft lighting, management and technical services, advanced systems and instruments, satelli

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View this 10-Q filing on SEC EDGAR