Honeywell Files 10-Q for Q2 2024

Ticker: HON · Form: 10-Q · Filed: Jul 25, 2024 · CIK: 773840

Honeywell International INC 10-Q Filing Summary
FieldDetail
CompanyHoneywell International INC (HON)
Form Type10-Q
Filed DateJul 25, 2024
Risk Levellow
Pages16
Reading Time19 min
Key Dollar Amounts$1
Sentimentneutral

Sentiment: neutral

Topics: 10-Q, quarterly-report, financials

TL;DR

Honeywell's Q2 2024 10-Q is in. Check financials.

AI Summary

Honeywell International Inc. filed its 10-Q for the period ending June 30, 2024. The filing details the company's financial performance and position, including its assets, liabilities, and equity. Specific financial figures and operational details are provided within the report, reflecting the company's ongoing business activities.

Why It Matters

This filing provides investors and analysts with a detailed look at Honeywell's financial health and operational performance during the second quarter of 2024, crucial for understanding the company's trajectory.

Risk Assessment

Risk Level: low — A 10-Q filing is a routine quarterly report and does not inherently indicate new or elevated risks.

Key Numbers

Key Players & Entities

FAQ

What is the primary purpose of this 10-Q filing?

The primary purpose of this 10-Q filing is to provide a comprehensive quarterly update on Honeywell International Inc.'s financial performance and position for the period ending June 30, 2024.

When was this 10-Q filing submitted to the SEC?

This 10-Q filing was submitted to the SEC on July 25, 2024.

What was Honeywell International Inc.'s previous company name?

Honeywell International Inc.'s former company name was ALLIEDSIGNAL INC.

What is the fiscal year end for Honeywell International Inc.?

The fiscal year end for Honeywell International Inc. is December 31.

What is the Standard Industrial Classification code for Honeywell International Inc.?

The Standard Industrial Classification code for Honeywell International Inc. is 3724, which corresponds to Aircraft Engines & Engine Parts.

Filing Stats: 4,654 words · 19 min read · ~16 pages · Grade level 15.4 · Accepted 2024-07-25 09:38:50

Key Financial Figures

Filing Documents

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 and Six Months Ended June 30, 2024, and 2023 3 Consolidated Statement of Comprehensive Income (unaudited) – Three and Six Months Ended June 30, 2024, and 2023 4 Consolidated Balance Sheet (unaudited) – June 30, 2024, and December 31, 2023 5 Consolidated Statement of Cash Flows (unaudited) – Six Months Ended June 30, 2024, and 2023 6 Consolidated Statement of Shareowners' Equity (unaudited) – Three and Six Months Ended June 30, 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 11 Note 5 – Repositioning and Other Charges 14 Note 6 – Income Taxes 16 Note 7 – Inventories 16 Note 8 – Goodwill and Other Intangible Assets—Net 17 Note 9 – Long-term Debt and Credit Agreements 18 Note 10 – Leases 19 Note 11 – Derivative Instruments and Hedging Transactions 20 Note 12 – Fair Value Measurements 23 Note 13 – Earnings Per Share 24 Note 14 – Accumulated Other Comprehensive Income (Loss) 25 Note 15 – Commitments and Contingencies 25 Note 16 – Pension Benefits 30 Note 17 – Other (Income) Expense 30 Note 18 – Segment Financial Data 31 Note 19 – Subsequent Events 33

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 34

Quantitative and Qualitative Disclosures about Market Risks

ITEM 3 Quantitative and Qualitative Disclosures about Market Risks 53

Controls and Procedures

ITEM 4 Controls and Procedures 53

Other Information

PART II Other Information

Legal Proceedings

ITEM 1 Legal Proceedings 54

Risk Factors

ITEM 1A Risk Factors 54

Unregistered Sales of Equity Securities and Use of Proceeds

ITEM 2 Unregistered Sales of Equity Securities and Use of Proceeds 54

Mine Safety Disclosures

ITEM 4 Mine Safety Disclosures 55

Other Information

ITEM 5 Other Information 55

Signatures

Signatures 57 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 June 30, 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 June 30, Six Months Ended June 30, 2024 2023 2024 2023 (Dollars in millions, except per share amounts) Product sales $ 6,477 $ 6,441 $ 12,740 $ 12,751 Service sales 3,100 2,705 5,942 5,259 Net sales 9,577 9,146 18,682 18,010 Costs, expenses and other Cost of products sold 4,247 4,133 8,282 8,201 Cost of services sold 1,609 1,493 3,157 2,923 Total Cost of products and services sold 5,856 5,626 11,439 11,124 Research and development expenses 382 375 742 732 Selling, general and administrative expenses 1,361 1,262 2,663 2,579 Other (income) expense ( 246 ) ( 208 ) ( 477 ) ( 468 ) Interest and other financial charges 250 187 470 357 Total costs, expenses and other 7,603 7,242 14,837 14,324 Income before taxes 1,974 1,904 3,845 3,686 Tax expense 414 403 810 777 Net income 1,560 1,501 3,035 2,909 Less: Net income attributable to noncontrolling interest 16 14 28 28 Net income attributable to Honeywell $ 1,544 $ 1,487 $ 3,007 $ 2,881 Earnings per share of common stock—basic $ 2.37 $ 2.24 $ 4.62 $ 4.32 Earnings per share of common stock—assuming dilution $ 2.36 $ 2.22 $ 4.59 $ 4.29 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 June 30, Six Months Ended June 30, 2024 2023 2024 2023 (Dollars in millions) Net income $ 1,560 $ 1,501 $ 3,035 $ 2,909 Other comprehensive income (loss), net of tax Foreign exchange translation adjustment 5 ( 77 ) 59 ( 135 ) Pension and other postretirement benefit adjustments ( 5 ) ( 12 ) ( 10 ) ( 24 ) Changes in fair value of available for sale investments ( 1 ) 9 ( 1 ) 3 Cash flow hedges recognized in other comprehensive income (loss) ( 14 ) 14 4 30 Less: Reclassificat

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 and six months ended June 30, 2024, and 2023, were June 29, 2024, and July 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 presenta

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 was effective on January 1, 2023, except for the rollforward, which became 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 e

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Dollars in tables in millions, except per share amounts) On March 27, 2024, the Company announced its intention to acquire Civitanavi Systems S.p.A. in an all-cash transaction for approximately 200 million. The transaction is not subject to any financing condition but is subject to regulatory review and approval, the tender into the offer of at least 95 % of Civitanavi Systems S.p.A.'s outstanding shares, and customary closing conditions. The transaction is expected to close by the end of the third quarter of 2024 and the business will be reported within the Aerospace Technologies reportable business segment. On August 25, 2023, the Company acquired 100 % of the outstanding equity interests of SCADAfence, a provider of operational technology and Internet of Things cybersecurity solutions for monitoring large scale networks, for total consideration of $ 52 million, net of cash acquired. The business is included in the Industrial Automation reportable business segment. The assets and liabilities acquired with SCADAfence are included in the Consolidated Balance Sheet as of June 30, 2024, including $ 17 million of intangible assets and $ 42 million of goodwill, which is not deductible for tax purposes. The purchase accounting is subject to final adjustment, primarily for the value of intangible assets, amounts allocated to goodwill, and tax balances. On June 30, 2023, the Company acquired 100 % of the outstanding equity interest

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