Honeywell Files Q3 2024 10-Q

Ticker: HON · Form: 10-Q · Filed: Oct 24, 2024 · CIK: 773840

Honeywell International INC 10-Q Filing Summary
FieldDetail
CompanyHoneywell International INC (HON)
Form Type10-Q
Filed DateOct 24, 2024
Risk Levellow
Pages15
Reading Time18 min
Key Dollar Amounts$1
Sentimentneutral

Sentiment: neutral

Topics: 10-Q, financials, quarterly-report

TL;DR

Honeywell's Q3 2024 10-Q is in. Check financials.

AI Summary

Honeywell International Inc. filed its 10-Q for the period ending September 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, which is a standard requirement for publicly traded companies.

Why It Matters

This filing provides investors and analysts with a detailed look at Honeywell's financial health and operational performance for the third quarter of 2024, enabling informed investment decisions.

Risk Assessment

Risk Level: low — This is a routine quarterly financial filing (10-Q) and does not inherently present new risks.

Key Numbers

Key Players & Entities

FAQ

What is the reporting period for this 10-Q filing?

The Conformed Period of Report is 20240930, indicating the filing covers the third quarter of 2024.

When was this 10-Q filed with the SEC?

The filing date (FILED AS OF DATE) is 20241024.

What was Honeywell International Inc. previously known as?

The company was formerly known as ALLIEDSIGNAL INC, with a date of name change on 19940929.

What is Honeywell International Inc.'s Standard Industrial Classification code?

The SIC code is 3724, categorized under AIRCRAFT ENGINES & ENGINE PARTS.

Where is Honeywell International Inc. headquartered?

The company's business address is 855 S. MINT STREET, CHARLOTTE, NC 28202.

Filing Stats: 4,620 words · 18 min read · ~15 pages · Grade level 16.1 · Accepted 2024-10-24 09:37:57

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 Nine Months Ended September 30, 2024, and 2023 3 Consolidated Statement of Comprehensive Income (unaudited) – Three and Nine Months Ended September 30, 2024, and 2023 4 Consolidated Balance Sheet (unaudited) – September 30, 2024, and December 31, 2023 5 Consolidated Statement of Cash Flows (unaudited) – Nine Months Ended September 30, 2024, and 2023 6 Consolidated Statement of Shareowners' Equity (unaudited) – Three and Nine Months Ended September 30, 2024, and 2023 7 Note 1 – Basis of Presentation 8 Note 2 – Summary of Significant Accounting Policies 8 Note 3 – Acquisitions, Divestitures and Assets and Liabilities Held for Sale 9 Note 4 – Revenue Recognition and Contracts with Customers 13 Note 5 – Repositioning and Other Charges 16 Note 6 – Income Taxes 18 Note 7 – Inventories 18 Note 8 – Goodwill and Other Intangible Assets—Net 19 Note 9 – Long-term Debt and Credit Agreements 20 Note 10 – Leases 22 Note 11 – Derivative Instruments and Hedging Transactions 23 Note 12 – Fair Value Measurements 26 Note 13 – Earnings Per Share 27 Note 14 – Accumulated Other Comprehensive Income (Loss) 28 Note 15 – Commitments and Contingencies 28 Note 16 – Pension Benefits 33 Note 17 – Other (Income) Expense 34 Note 18 – Segment Financial Data 34 Note 19 – Subsequent Events 36

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 37

Quantitative and Qualitative Disclosures about Market Risks

ITEM 3 Quantitative and Qualitative Disclosures about Market Risks 56

Controls and Procedures

ITEM 4 Controls and Procedures 56

Other Information

PART II Other Information

Legal Proceedings

ITEM 1 Legal Proceedings 57

Risk Factors

ITEM 1A Risk Factors 57

Unregistered Sales of Equity Securities and Use of Proceeds

ITEM 2 Unregistered Sales of Equity Securities and Use of Proceeds 57

Mine Safety Disclosures

ITEM 4 Mine Safety Disclosures 58

Other Information

ITEM 5 Other Information 58

Signatures

Signatures 60 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 and include statements related to the proposed spin-off of the Company's Advanced Materials business into a stand-alone, publicly traded company. 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, supply chain disruptions, 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 con

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION The financial statements and related notes as of September 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 September 30, Nine Months Ended September 30, 2024 2023 2024 2023 (Dollars in millions, except per share amounts) Product sales $ 6,590 $ 6,294 $ 19,330 $ 19,045 Service sales 3,138 2,918 9,080 8,177 Net sales 9,728 9,212 28,410 27,222 Costs, expenses and other Cost of products sold 4,166 4,090 12,448 12,291 Cost of services sold 1,813 1,580 4,970 4,503 Total Cost of products and services sold 5,979 5,670 17,418 16,794 Research and development expenses 368 364 1,110 1,096 Selling, general and administrative expenses 1,398 1,252 4,061 3,831 Impairment of assets held for sale 125 — 125 — Other (income) expense ( 263 ) ( 247 ) ( 740 ) ( 715 ) Interest and other financial charges 297 206 767 563 Total costs, expenses and other 7,904 7,245 22,741 21,569 Income before taxes 1,824 1,967 5,669 5,653 Tax expense 409 452 1,219 1,229 Net income 1,415 1,515 4,450 4,424 Less: Net income attributable to noncontrolling interest 2 1 30 29 Net income attributable to Honeywell $ 1,413 $ 1,514 $ 4,420 $ 4,395 Earnings per share of common stock—basic $ 2.17 $ 2.29 $ 6.79 $ 6.61 Earnings per share of common stock—assuming dilution $ 2.16 $ 2.27 $ 6.75 $ 6.56 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 September 30, Nine Months Ended September 30, 2024 2023 2024 2023 (Dollars in millions) Net income $ 1,415 $ 1,515 $ 4,450 $ 4,424 Other comprehensive income (loss), net of tax Foreign exchange translation adjustment ( 288 ) 59 ( 229 ) ( 76 ) Pension and other postretirement benefit adjustments ( 6 ) ( 14 ) ( 16 ) ( 38 ) Changes in fair value of available for sale investments — — ( 1 ) 3 Cash flow hedges rec

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 nine months ended September 30, 2024, and 2023, were September 28, 2024, and September 30, 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 curre

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) CAES Systems Holdings LLC On August 30, 2024, the Company acquired 100 % of the outstanding equity interests of CAES Systems Holdings LLC (CAES), enhancing the Company's defense and space portfolio with high-reliability radio frequency technologies, for total consideration of $ 1,930 million, net of cash acquired. The business is included within the Aerospace Technologies reportable business segment. The following table summarizes the preliminary determination of the fair value of identifiable assets acquired and liabilities assumed that are included in the Consolidated Balance Sheet as of September 30, 2024: Current assets $ 332 Intangible assets 1,205 Other noncurrent assets 185 Current liabilities ( 121 ) Noncurrent liabilities ( 167 ) Net assets acquired 1,434 Goodwill 539 Purchase price $ 1,973 The CAES identifiable intangible assets primarily include customer relationships and trademarks which will amortize over their estimated useful lives ranging from 2 to 15 years using straight line and accelerated amortization methods. The goodwill is not deductible for tax purposes. As of September 30, 2024, the purchase accounting for CAES is subject to final adjustment, primarily for the valuation of intangible assets, amounts allocated to goodwill, working capital adjustments, and tax balances. Civitanavi Systems S.p.A. On August 19, 2024, the Company completed the acquisition of Civitanav

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