Delaware | 22-2640650 | ||||||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||||||||
300 South Tryon Street | 28202 | ||||||||||
Charlotte, | |||||||||||
(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 | The New York Stock Exchange | ||||||||||||
1.300% Senior Notes due 2023 | HON 23A | The New York Stock Exchange | ||||||||||||
0.000% Senior Notes due 2024 | HON 24A | The New York Stock Exchange | ||||||||||||
2.250% Senior Notes due 2028 | HON 28A | The New York Stock Exchange | ||||||||||||
0.750% Senior Notes due 2032 | HON 32 | The New York Stock Exchange |
* The common stock is also listed on the London Stock Exchange. |
Page | ||||||||
Item | Page | ||||||
Part I | 1 | ||||||
1A. | |||||||
1B. | |||||||
2 | |||||||
3 | |||||||
4 | |||||||
Part II. | 5 | ||||||
6 | |||||||
7 | |||||||
7A. | |||||||
8 | |||||||
9 | |||||||
9A. | |||||||
9B. | |||||||
Part III. | 10 | ||||||
11 | |||||||
12 | |||||||
13 | |||||||
14 | |||||||
Part IV. | 15 | ||||||
16 | |||||||
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 | % |
U.S. Government Sales | Years Ended December 31, | |||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
Sales to the U.S. Department of Defense | $ | 3,661 | $ | 3,491 | $ | 2,832 | ||||||||||||||
Sales to other U.S. Government departments and agencies | 557 | 566 | 571 | |||||||||||||||||
Total Sales to the U.S. Government | $ | 4,218 | $ | 4,057 | $ | 3,403 |
Manufactured Products and Systems and Performance of Services | Year Ended December 31, 2020 | |||||||||||||||||||||||||
Aerospace | Honeywell Building Technologies | Performance Materials and Technologies | Safety and Productivity Solutions | |||||||||||||||||||||||
(% of Segment Sales) | ||||||||||||||||||||||||||
U.S. exports | 22 | % | 2 | % | 13 | % | 2 | % | ||||||||||||||||||
Non-U.S. manufactured products/services | 15 | % | 65 | % | 58 | % | 37 | % |
Years Ended December 31, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018(1)(2) | 2017(1) | 2016 | |||||||||||||||||||||||||
(Dollars in millions, except per share amounts) | |||||||||||||||||||||||||||||
Results of Operations | |||||||||||||||||||||||||||||
Net sales | $ | 32,637 | $ | 36,709 | $ | 41,802 | $ | 40,534 | $ | 39,302 | |||||||||||||||||||
Net income attributable to Honeywell | 4,779 | 6,143 | 6,765 | 1,545 | 4,812 | ||||||||||||||||||||||||
Earnings Per Common Share | |||||||||||||||||||||||||||||
Earnings from operations: | |||||||||||||||||||||||||||||
Basic | 6.79 | 8.52 | 9.10 | 2.03 | 6.30 | ||||||||||||||||||||||||
Assuming dilution | 6.72 | 8.41 | 8.98 | 2.00 | 6.21 | ||||||||||||||||||||||||
Dividends per share | 3.63 | 3.36 | 3.06 | 2.74 | 2.45 | ||||||||||||||||||||||||
Balance Sheet Data | |||||||||||||||||||||||||||||
Property, plant and equipment—net | 5,570 | 5,325 | 5,296 | 5,926 | 5,793 | ||||||||||||||||||||||||
Total assets | 64,586 | 58,679 | 57,773 | 59,470 | 54,566 | ||||||||||||||||||||||||
Short-term debt | 6,042 | 4,892 | 6,458 | 5,309 | 3,593 | ||||||||||||||||||||||||
Long-term debt | 16,342 | 11,110 | 9,756 | 12,573 | 12,182 | ||||||||||||||||||||||||
Total debt | 22,384 | 16,002 | 16,214 | 17,882 | 15,775 | ||||||||||||||||||||||||
Redeemable noncontrolling interest | 7 | 7 | 7 | 5 | 3 | ||||||||||||||||||||||||
Shareowners’ equity | 17,790 | 18,706 | 18,358 | 16,665 | 18,883 |
2020 Versus 2019 | 2019 Versus 2018 | ||||||||||
Volume | (12) | % | 3 | % | |||||||
Price | 1 | % | 2 | % | |||||||
Foreign Currency Translation | — | % | (1) | % | |||||||
Acquisitions/Divestitures | — | % | (16) | % | |||||||
(11) | % | (12) | % |
2020 | 2019 | 2018 | |||||||||||||||
Other (income) expense | $ | (675) | $ | (1,065) | $ | (1,149) |
2020 | 2019 | Change 2020 vs 2019 | 2018 | Change 2019 vs 2018 | |||||||||||||||||||||||||
Net sales | $ | 11,544 | $ | 14,054 | (18) | % | $ | 15,493 | (9) | % | |||||||||||||||||||
Cost of products and services sold | 7,813 | 9,398 | 10,837 | ||||||||||||||||||||||||||
Selling, general and administrative and other expenses | 827 | 1,049 | 1,153 | ||||||||||||||||||||||||||
Segment profit | $ | 2,904 | $ | 3,607 | (19) | % | $ | 3,503 | 3 | % |
Factors Contributing to Year-Over-Year Change | 2020 vs. 2019 | 2019 vs. 2018 | |||||||||||||||||||||
Net Sales | Segment Profit | Net Sales | Segment Profit | ||||||||||||||||||||
Organic | (18) | % | (20) | % | 9 | % | 21 | % | |||||||||||||||
Foreign currency translation | — | % | — | % | — | % | — | % | |||||||||||||||
Acquisitions, divestitures and other, net | — | % | 1 | % | (18) | % | (18) | % | |||||||||||||||
Total % Change | (18) | % | (19) | % | (9) | % | 3 | % |
2020 | 2019 | Change 2020 vs. 2019 | 2018 | Change 2019 vs. 2018 | |||||||||||||||||||||||||
Net sales | $ | 5,189 | $ | 5,717 | (9) | % | $ | 9,298 | (39) | % | |||||||||||||||||||
Cost of products and services sold | 3,067 | 3,444 | 6,066 | ||||||||||||||||||||||||||
Selling, general and administrative and other expenses | 1,023 | 1,108 | 1,624 | ||||||||||||||||||||||||||
Segment profit | $ | 1,099 | $ | 1,165 | (6) | % | $ | 1,608 | (28) | % |
Factors Contributing to Year-Over-Year Change | 2020 vs. 2019 | 2019 vs. 2018 | |||||||||||||||||||||
Net Sales | Segment Profit | Net Sales | Segment Profit | ||||||||||||||||||||
Organic | (9) | % | (5) | % | 5 | % | 8 | % | |||||||||||||||
Foreign currency translation | — | % | (1) | % | (2) | % | (2) | % | |||||||||||||||
Acquisitions, divestitures and other, net | — | % | — | % | (42) | % | (34) | % | |||||||||||||||
Total % Change | (9) | % | (6) | % | (39) | % | (28) | % |
2020 | 2019 | Change 2020 vs. 2019 | 2018 | Change 2019 vs. 2018 | |||||||||||||||||||||||||
Net sales | $ | 9,423 | $ | 10,834 | (13) | % | $ | 10,674 | 1 | % | |||||||||||||||||||
Cost of products and services sold | 6,331 | 6,989 | 6,948 | ||||||||||||||||||||||||||
Selling, general and administrative and other expenses | 1,241 | 1,412 | 1,398 | ||||||||||||||||||||||||||
Segment profit | $ | 1,851 | $ | 2,433 | (24) | % | $ | 2,328 | 5 | % |
Factors Contributing to Year-Over-Year Change | 2020 vs. 2019 | 2019 vs. 2018 | |||||||||||||||||||||
Net Sales | Segment Profit | Net Sales | Segment Profit | ||||||||||||||||||||
Organic | (13) | % | (24) | % | 4 | % | 6 | % | |||||||||||||||
Foreign currency translation | — | % | — | % | (3) | % | (1) | % | |||||||||||||||
Acquisitions, divestitures and other, net | — | — | — | % | — | % | |||||||||||||||||
Total % Change | (13) | % | (24) | % | 1 | % | 5 | % |
2020 | 2019 | Change 2020 vs. 2019 | 2018 | Change 2019 vs. 2018 | |||||||||||||||||||||||||
Net sales | $ | 6,481 | $ | 6,104 | 6 | % | $ | 6,337 | (4) | % | |||||||||||||||||||
Cost of products and services sold | 4,532 | 4,158 | 4,205 | ||||||||||||||||||||||||||
Selling, general and administrative and other expenses | 1,042 | 1,156 | 1,100 | ||||||||||||||||||||||||||
Segment profit | $ | 907 | $ | 790 | 15 | % | $ | 1,032 | (23) | % |
Factors Contributing to Year-Over-Year Change | 2020 vs. 2019 | 2019 vs. 2018 | |||||||||||||||||||||
Net Sales | Segment Profit | Net Sales | Segment Profit | ||||||||||||||||||||
Organic | 6 | % | 16 | % | (4) | % | (23) | % | |||||||||||||||
Foreign currency translation | — | % | (1) | % | (2) | % | (2) | % | |||||||||||||||
Acquisitions, divestitures and other, net | — | % | — | % | 2 | % | 2 | % | |||||||||||||||
Total % Change | 6 | % | 15 | % | (4) | % | (23) | % |
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 |
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 | % |
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 | )% |
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 | % |
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 | % |
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 | ) |
December 31, | |||||||||||
2020 | 2019 | ||||||||||
Commercial paper and other short-term borrowings | $ | 3,597 | $ | 3,516 | |||||||
Variable rate notes | 1,122 | 622 | |||||||||
Fixed rate notes | 17,399 | 11,586 | |||||||||
Other | 266 | 278 | |||||||||
Total borrowings | $ | 22,384 | $ | 16,002 |
S&P | Fitch | Moody's | |||||||||||||||
Outlook | Stable | Stable | Stable | ||||||||||||||
Short-term | A-1 | F1 | P1 | ||||||||||||||
Long-term | A | A | A2 |
Years Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Cash provided by (used for): | |||||||||||||||||
Operating activities | $ | 6,208 | $ | 6,897 | $ | 6,434 | |||||||||||
Investing activities | (987) | (533) | 1,027 | ||||||||||||||
Financing activities | (81) | (6,600) | (5,032) | ||||||||||||||
Effect of exchange rate changes on cash | 68 | 16 | (201) | ||||||||||||||
Net increase (decrease) in cash and cash equivalents | $ | 5,208 | $ | (220) | $ | 2,228 |
Total(6)(7) | Payments by Period | Thereafter | |||||||||||||||||||||||||||
2021 | 2022 - 2023 | 2024 - 2025 | |||||||||||||||||||||||||||
Long-term debt, including finance leases(1) | $ | 18,787 | $ | 2,445 | $ | 6,102 | $ | 2,647 | $ | 7,593 | |||||||||||||||||||
Interest payments on long-term debt, including finance leases | 3,674 | 372 | 624 | 507 | 2,171 | ||||||||||||||||||||||||
Operating lease liabilities | 913 | 204 | 306 | 172 | 231 | ||||||||||||||||||||||||
Purchase obligations(2) | 3,595 | 1,374 | 1,204 | 559 | 458 | ||||||||||||||||||||||||
Estimated environmental liability payments(3) | 660 | 225 | 213 | 181 | 41 | ||||||||||||||||||||||||
Asbestos related liability payments(4) | 2,220 | 300 | 495 | 397 | 1,028 | ||||||||||||||||||||||||
Asbestos insurance recoveries(5) | (402) | (36) | (89) | (70) | (207) | ||||||||||||||||||||||||
$ | 29,447 | $ | 4,884 | $ | 8,855 | $ | 4,393 | $ | 11,315 |
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 |
(3)The payment amounts in the table only reflect the environmental liabilities which are probable and reasonably estimable as of December 31, 2020. (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, 2020. See |
Face or Notional Amount | Carrying Value(1) | Fair Value(1) | Estimated Increase (Decrease) in Fair Value(2) | ||||||||||||||||||||
December 31, 2020 | |||||||||||||||||||||||
Interest Rate Sensitive Instruments | |||||||||||||||||||||||
Long-term debt (including current maturities) | $ | 18,787 | $ | (18,787) | $ | (20,176) | $ | (1,063) | |||||||||||||||
Interest rate swap agreements | 3,950 | 194 | 194 | (148) | |||||||||||||||||||
Foreign Exchange Rate Sensitive Instruments | |||||||||||||||||||||||
Foreign currency exchange contracts(3) | 16,123 | 52 | 52 | (334) | |||||||||||||||||||
Cross currency swap agreements | 1,200 | (50) | (50) | (125) | |||||||||||||||||||
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) |
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 | ) |
2019 | 2018 | 2017 | ||||||
Discount Rate: | ||||||||
Projected benefit obligation | 4.35 | % | 3.68 | % | 4.20 | % | ||
Service cost | 4.47 | % | 3.77 | % | 4.42 | % | ||
Interest cost | 3.94 | % | 3.27 | % | 3.49 | % | ||
Assets: | ||||||||
Expected rate of return | 6.75 | % | 7.75 | % | 7.75 | % | ||
Actual rate of return | 21.2 | % | (1.8 | )% | 20.5 | % | ||
Actual 10 year average annual compounded rate of return | 11.1 | % | 11.0 | % | 7.4 | % |
2020 | 2019 | 2018 | |||||||||||||||
Discount Rate: | |||||||||||||||||
Projected benefit obligation | 3.22 | % | 4.35 | % | 3.68 | % | |||||||||||
Service cost | 3.33 | % | 4.47 | % | 3.77 | % | |||||||||||
Interest cost | 2.76 | % | 3.94 | % | 3.27 | % | |||||||||||
Assets: | |||||||||||||||||
Expected rate of return | 6.15 | % | 6.75 | % | 7.75 | % | |||||||||||
Actual rate of return | 13.8 | % | 21.2 | % | (1.8) | % | |||||||||||
Actual 10 year average annual compounded rate of return | 10.6 | % | 11.1 | % | 11.0 | % |
Change in Assumption | Impact on 2021 Pension Ongoing Expense | Impact on PBO | |||||||||
0.25 percentage point decrease in discount rate | Decrease $32 million | Increase $520 million | |||||||||
0.25 percentage point increase in discount rate | Increase $30 million | Decrease $500 million | |||||||||
0.25 percentage point decrease in expected rate of return on assets | Increase $50 million | — | |||||||||
0.25 percentage point increase in expected rate of return on assets | Decrease $50 million | — |
Name, Age, Year First Elected an Executive Officer | Business Experience | |||||||
Darius Adamczyk, 55 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, 47 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, 68 2016 | President and Chief Executive Officer, Performance Materials and Technologies since April 2016. President of Honeywell UOP from January 2009 to April 2016. | |||||||
Vimal Kapur, 55 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, 53 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, 56 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, 57 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. | |||||||
Karen Mattimore, 54 2020 | Senior Vice President and Chief Human Resources Officer since June 2020.Vice President, Human Resources and Communications, Aerospace from February 2018 to June 2020.Vice President, Human Resources Services from April 2015 to February 2018. | |||||||
John F. Waldron, 45 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. |
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 1 - 31, 2020 | — | $ | — | — | $ | 4,841 | ||||||||||||||||||||
November 1 - 30, 2020 | 2,430,000 | $ | 198.09 | 2,430,000 | $ | 4,360 | ||||||||||||||||||||
December 1 - 31, 2020 | 5,189,919 | $ | 208.96 | 5,189,919 | $ | 3,275 |
Dec. 2015 | Dec. 2016 | Dec. 2017 | Dec. 2018 | Dec. 2019 | Dec. 2020 | |||||||||||||||||||||||||||||||||
Honeywell | 100 | 114.98 | 155.34 | 142.57 | 194.89 | 239.66 | ||||||||||||||||||||||||||||||||
S&P 500 Index | 100 | 111.96 | 136.40 | 130.42 | 171.49 | 203.04 | ||||||||||||||||||||||||||||||||
Composite Index | 100 | 113.33 | 129.15 | 105.37 | 134.31 | 132.19 |
Years Ended December 31, | Years Ended December 31, | |||||||||||||||||||||||||||
2019 | 2018 | 2017 | 2020 | 2019 | 2018 | |||||||||||||||||||||||
(Dollars in millions, except per share amounts) | (Dollars in millions, except per share amounts) | |||||||||||||||||||||||||||
Product sales | $ | 27,629 | $ | 32,848 | $ | 32,317 | Product sales | $ | 24,737 | $ | 27,629 | $ | 32,848 | |||||||||||||||
Service sales | 9,080 | 8,954 | 8,217 | Service sales | 7,900 | 9,080 | 8,954 | |||||||||||||||||||||
Net sales | 36,709 | 41,802 | 40,534 | Net sales | 32,637 | 36,709 | 41,802 | |||||||||||||||||||||
Costs, expenses and other | Costs, expenses and other | |||||||||||||||||||||||||||
Cost of products sold | 19,269 | 23,634 | 23,176 | Cost of products sold | 17,638 | 19,269 | 23,634 | |||||||||||||||||||||
Cost of services sold | 5,070 | 5,412 | 4,968 | Cost of services sold | 4,531 | 5,070 | 5,412 | |||||||||||||||||||||
24,339 | 29,046 | 28,144 | 22,169 | 24,339 | 29,046 | |||||||||||||||||||||||
Selling, general and administrative expenses | 5,519 | 6,051 | 6,087 | Selling, general and administrative expenses | 4,772 | 5,519 | 6,051 | |||||||||||||||||||||
Other (income) expense | (1,065 | ) | (1,149 | ) | (963 | ) | Other (income) expense | (675) | (1,065) | (1,149) | ||||||||||||||||||
Interest and other financial charges | 357 | 367 | 316 | Interest and other financial charges | 359 | 357 | 367 | |||||||||||||||||||||
29,150 | 34,315 | 33,584 | 26,625 | 29,150 | 34,315 | |||||||||||||||||||||||
Income before taxes | 7,559 | 7,487 | 6,950 | Income before taxes | 6,012 | 7,559 | 7,487 | |||||||||||||||||||||
Tax expense | 1,329 | 659 | 5,362 | Tax expense | 1,147 | 1,329 | 659 | |||||||||||||||||||||
Net income | 6,230 | 6,828 | 1,588 | Net income | 4,865 | 6,230 | 6,828 | |||||||||||||||||||||
Less: Net income attributable to the noncontrolling interest | 87 | 63 | 43 | Less: Net income attributable to the noncontrolling interest | 86 | 87 | 63 | |||||||||||||||||||||
Net income attributable to Honeywell | $ | 6,143 | $ | 6,765 | $ | 1,545 | Net income attributable to Honeywell | $ | 4,779 | $ | 6,143 | $ | 6,765 | |||||||||||||||
Earnings per share of common stock—basic | $ | 8.52 | $ | 9.10 | $ | 2.03 | Earnings per share of common stock—basic | $ | 6.79 | $ | 8.52 | $ | 9.10 | |||||||||||||||
Earnings per share of common stock—assuming dilution | $ | 8.41 | $ | 8.98 | $ | 2.00 | Earnings per share of common stock—assuming dilution | $ | 6.72 | $ | 8.41 | $ | 8.98 |
Years Ended December 31, | Years Ended December 31, | |||||||||||||||||||||||||||
2019 | 2018 | 2017 | 2020 | 2019 | 2018 | |||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | |||||||||||||||||||||||||||
Net income | $ | 6,230 | $ | 6,828 | $ | 1,588 | Net income | $ | 4,865 | $ | 6,230 | $ | 6,828 | |||||||||||||||
Other comprehensive income (loss), net of tax | Other comprehensive income (loss), net of tax | |||||||||||||||||||||||||||
Foreign exchange translation adjustment | 143 | (685 | ) | (37 | ) | Foreign exchange translation adjustment | (211) | 143 | (685) | |||||||||||||||||||
Actuarial gains (losses) recognized | 162 | (602 | ) | 753 | Actuarial gains (losses) recognized | 91 | 162 | (602) | ||||||||||||||||||||
Prior service credit (cost) recognized | 1 | 2 | (59 | ) | Prior service credit (cost) recognized | 47 | 1 | 2 | ||||||||||||||||||||
Prior service credit recognized during year | (79 | ) | (74 | ) | (70 | ) | Prior service credit recognized during year | (82) | (79) | (74) | ||||||||||||||||||
Actuarial (gains) losses recognized during year | 16 | 35 | 83 | Actuarial (gains) losses recognized during year | 41 | 16 | 35 | |||||||||||||||||||||
Settlements and curtailments | — | 2 | 19 | Settlements and curtailments | 0 | 0 | 2 | |||||||||||||||||||||
Foreign exchange translation and other | (14 | ) | 31 | (49 | ) | Foreign exchange translation and other | (23) | (14) | 31 | |||||||||||||||||||
Pensions and other postretirement benefit adjustments | 86 | (606 | ) | 677 | Pensions and other postretirement benefit adjustments | 74 | 86 | (606) | ||||||||||||||||||||
Changes in fair value of available for sale investments | Changes in fair value of available for sale investments | 4 | 0 | 0 | ||||||||||||||||||||||||
Cash flow hedges recognized in other comprehensive income | 103 | 89 | (101 | ) | Cash flow hedges recognized in other comprehensive income | 10 | 103 | 89 | ||||||||||||||||||||
Less: Reclassification adjustment for gains (losses) included in net income | 92 | 4 | 60 | Less: Reclassification adjustment for gains (losses) included in net income | 54 | 92 | 4 | |||||||||||||||||||||
Changes in fair value of cash flow hedges | 11 | 85 | (161 | ) | Changes in fair value of cash flow hedges | (44) | 11 | 85 | ||||||||||||||||||||
Other comprehensive income (loss), net of tax | 240 | (1,206 | ) | 479 | Other comprehensive income (loss), net of tax | (177) | 240 | (1,206) | ||||||||||||||||||||
Comprehensive income | 6,470 | 5,622 | 2,067 | Comprehensive income | 4,688 | 6,470 | 5,622 | |||||||||||||||||||||
Less: Comprehensive income attributable to the noncontrolling interest | 82 | 53 | 51 | Less: Comprehensive income attributable to the noncontrolling interest | 89 | 82 | 53 | |||||||||||||||||||||
Comprehensive income attributable to Honeywell | $ | 6,388 | $ | 5,569 | $ | 2,016 | Comprehensive income attributable to Honeywell | $ | 4,599 | $ | 6,388 | $ | 5,569 |
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 |
December 31, | |||||||||||
2020 | 2019 | ||||||||||
(Dollars in millions) | |||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 14,275 | $ | 9,067 | |||||||
Short-term investments | 945 | 1,349 | |||||||||
Accounts receivable—net | 6,827 | 7,493 | |||||||||
Inventories | 4,489 | 4,421 | |||||||||
Other current assets | 1,639 | 1,973 | |||||||||
Total current assets | 28,175 | 24,303 | |||||||||
Investments and long-term receivables | 685 | 588 | |||||||||
Property, plant and equipment—net | 5,570 | 5,325 | |||||||||
Goodwill | 16,058 | 15,563 | |||||||||
Other intangible assets—net | 3,560 | 3,734 | |||||||||
Insurance recoveries for asbestos related liabilities | 366 | 392 | |||||||||
Deferred income taxes | 760 | 86 | |||||||||
Other assets | 9,412 | 8,688 | |||||||||
Total assets | $ | 64,586 | $ | 58,679 | |||||||
LIABILITIES | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 5,750 | $ | 5,730 | |||||||
Commercial paper and other short-term borrowings | 3,597 | 3,516 | |||||||||
Current maturities of long-term debt | 2,445 | 1,376 | |||||||||
Accrued liabilities | 7,405 | 7,476 | |||||||||
Total current liabilities | 19,197 | 18,098 | |||||||||
Long-term debt | 16,342 | 11,110 | |||||||||
Deferred income taxes | 2,113 | 1,670 | |||||||||
Postretirement benefit obligations other than pensions | 242 | 326 | |||||||||
Asbestos related liabilities | 1,920 | 1,996 | |||||||||
Other liabilities | 6,975 | 6,766 | |||||||||
Redeemable noncontrolling interest | 7 | 7 | |||||||||
SHAREOWNERS’ EQUITY | |||||||||||
Capital—common stock issued | 958 | 958 | |||||||||
—additional paid-in capital | 7,292 | 6,876 | |||||||||
Common stock held in treasury, at cost | (27,229) | (23,836) | |||||||||
Accumulated other comprehensive income (loss) | (3,377) | (3,197) | |||||||||
Retained earnings | 39,905 | 37,693 | |||||||||
Total Honeywell shareowners’ equity | 17,549 | 18,494 | |||||||||
Noncontrolling interest | 241 | 212 | |||||||||
Total shareowners’ equity | 17,790 | 18,706 | |||||||||
Total liabilities, redeemable noncontrolling interest and shareowners’ equity | $ | 64,586 | $ | 58,679 |
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, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(Dollars in millions) | |||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||
Net income | $ | 4,865 | $ | 6,230 | $ | 6,828 | |||||||||||
Less: Net income attributable to the noncontrolling interest | 86 | 87 | 63 | ||||||||||||||
Net income attributable to Honeywell | 4,779 | 6,143 | 6,765 | ||||||||||||||
Adjustments to reconcile net income attributable to Honeywell to net cash provided by operating activities: | |||||||||||||||||
Depreciation | 644 | 673 | 721 | ||||||||||||||
Amortization | 358 | 415 | 395 | ||||||||||||||
Repositioning and other charges | 575 | 546 | 1,091 | ||||||||||||||
Net payments for repositioning and other charges | (833) | (376) | (652) | ||||||||||||||
Pension and other postretirement income | (798) | (516) | (987) | ||||||||||||||
Pension and other postretirement benefit payments | (47) | (78) | (80) | ||||||||||||||
Stock compensation expense | 168 | 153 | 175 | ||||||||||||||
Deferred income taxes | (175) | 179 | (586) | ||||||||||||||
Reimbursement receivables charge | 509 | 0 | 0 | ||||||||||||||
Other | (335) | (286) | (694) | ||||||||||||||
Changes in assets and liabilities, net of the effects of acquisitions and divestitures: | |||||||||||||||||
Accounts receivable | 669 | 11 | (236) | ||||||||||||||
Inventories | (67) | (100) | (503) | ||||||||||||||
Other current assets | 191 | (430) | 218 | ||||||||||||||
Accounts payable | 15 | 118 | 733 | ||||||||||||||
Accrued liabilities | 555 | 445 | 74 | ||||||||||||||
Net cash provided by (used for) operating activities | 6,208 | 6,897 | 6,434 | ||||||||||||||
Cash flows from investing activities: | |||||||||||||||||
Expenditures for property, plant and equipment | (906) | (839) | (828) | ||||||||||||||
Proceeds from disposals of property, plant and equipment | 57 | 43 | 15 | ||||||||||||||
Increase in investments | (3,236) | (4,253) | (4,059) | ||||||||||||||
Decrease in investments | 3,508 | 4,464 | 6,032 | ||||||||||||||
Receipts (payments) from settlements of derivative contracts | (149) | 102 | 402 | ||||||||||||||
Cash paid for acquisitions, net of cash acquired | (261) | (50) | (535) | ||||||||||||||
Net cash provided by (used for) investing activities | (987) | (533) | 1,027 | ||||||||||||||
Cash flows from financing activities: | |||||||||||||||||
Proceeds from issuance of commercial paper and other short-term borrowings | 10,474 | 14,199 | 23,891 | ||||||||||||||
Payments of commercial paper and other short-term borrowings | (10,400) | (14,199) | (24,095) | ||||||||||||||
Proceeds from issuance of common stock | 393 | 498 | 267 | ||||||||||||||
Proceeds from issuance of long-term debt | 10,125 | 2,726 | 27 | ||||||||||||||
Payments of long-term debt | (4,308) | (2,903) | (1,330) | ||||||||||||||
Repurchases of common stock | (3,714) | (4,400) | (4,000) | ||||||||||||||
Cash dividends paid | (2,592) | (2,442) | (2,272) | ||||||||||||||
Pre-separation funding | 0 | 0 | 2,801 | ||||||||||||||
Spin-off cash | 0 | 0 | (179) | ||||||||||||||
Other | (59) | (79) | (142) | ||||||||||||||
Net cash provided by (used for) financing activities | (81) | (6,600) | (5,032) | ||||||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | 68 | 16 | (201) | ||||||||||||||
Net increase (decrease) in cash and cash equivalents | 5,208 | (220) | 2,228 | ||||||||||||||
Cash and cash equivalents at beginning of period | 9,067 | 9,287 | 7,059 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 14,275 | $ | 9,067 | $ | 9,287 |
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, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||||||||
Shares | $ | Shares | $ | Shares | $ | ||||||||||||||||||||||||||||||
(in millions, except per share amounts) | |||||||||||||||||||||||||||||||||||
Common stock, par value | 957.6 | 958 | 957.6 | 958 | 957.6 | 958 | |||||||||||||||||||||||||||||
Additional paid-in capital | |||||||||||||||||||||||||||||||||||
Beginning balance | 6,876 | 6,452 | 6,212 | ||||||||||||||||||||||||||||||||
Issued for employee savings and option plans | 248 | 271 | 65 | ||||||||||||||||||||||||||||||||
Stock-based compensation expense | 168 | 153 | 175 | ||||||||||||||||||||||||||||||||
Ending balance | 7,292 | 6,876 | 6,452 | ||||||||||||||||||||||||||||||||
Treasury stock | |||||||||||||||||||||||||||||||||||
Beginning balance | (246.5) | (23,836) | (228.0) | (19,771) | (206.7) | (15,914) | |||||||||||||||||||||||||||||
Reacquired stock or repurchases of common stock | (20.7) | (3,714) | (26.5) | (4,400) | (26.5) | (4,000) | |||||||||||||||||||||||||||||
Issued for employee savings and option plans | 6.4 | 321 | 8.0 | 335 | 5.2 | 143 | |||||||||||||||||||||||||||||
Ending balance | (260.8) | (27,229) | (246.5) | (23,836) | (228.0) | (19,771) | |||||||||||||||||||||||||||||
Retained earnings | |||||||||||||||||||||||||||||||||||
Beginning balance | 37,693 | 33,978 | 27,481 | ||||||||||||||||||||||||||||||||
Adoption of new accounting standards | 0 | 0 | 264 | ||||||||||||||||||||||||||||||||
Net income attributable to Honeywell | 4,779 | 6,143 | 6,765 | ||||||||||||||||||||||||||||||||
Dividends on common stock | (2,567) | (2,428) | (2,279) | ||||||||||||||||||||||||||||||||
Spin-offs | 0 | 0 | 1,749 | ||||||||||||||||||||||||||||||||
Redemption value adjustment | 0 | 0 | (2) | ||||||||||||||||||||||||||||||||
Ending balance | 39,905 | 37,693 | 33,978 | ||||||||||||||||||||||||||||||||
Accumulated other comprehensive income (loss) | |||||||||||||||||||||||||||||||||||
Beginning balance | (3,197) | (3,437) | (2,235) | ||||||||||||||||||||||||||||||||
Foreign exchange translation adjustment | (214) | 143 | (728) | ||||||||||||||||||||||||||||||||
Pensions and other postretirement benefit adjustments | 74 | 86 | (559) | ||||||||||||||||||||||||||||||||
Changes in fair value of available for sale investments | 4 | 0 | 0 | ||||||||||||||||||||||||||||||||
Changes in fair value of cash flow hedges | (44) | 11 | 85 | ||||||||||||||||||||||||||||||||
Ending balance | (3,377) | (3,197) | (3,437) | ||||||||||||||||||||||||||||||||
Noncontrolling interest | |||||||||||||||||||||||||||||||||||
Beginning balance | 212 | 178 | 163 | ||||||||||||||||||||||||||||||||
Acquisitions, divestitures, and other | (6) | (3) | (12) | ||||||||||||||||||||||||||||||||
Net income attributable to noncontrolling interest | 86 | 87 | 63 | ||||||||||||||||||||||||||||||||
Foreign exchange translation adjustment | 3 | (5) | (10) | ||||||||||||||||||||||||||||||||
Dividends paid | (54) | (45) | (26) | ||||||||||||||||||||||||||||||||
Ending balance | 241 | 212 | 178 | ||||||||||||||||||||||||||||||||
Total shareowners’ equity | 696.8 | 17,790 | 711.1 | 18,706 | 729.6 | 18,358 | |||||||||||||||||||||||||||||
Cash dividends per share of common stock | $ | 3.630 | $ | 3.360 | $ | 3.055 |
Years Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Aerospace | |||||||||||||||||
Commercial Aviation Original Equipment | $ | 1,932 | $ | 2,997 | $ | 2,833 | |||||||||||
Commercial Aviation Aftermarket | 3,786 | 5,731 | 5,373 | ||||||||||||||
Defense and Space | 5,826 | 5,326 | 4,665 | ||||||||||||||
Transportation Systems | 0 | 0 | 2,622 | ||||||||||||||
11,544 | 14,054 | 15,493 | |||||||||||||||
Honeywell Building Technologies | |||||||||||||||||
Homes Products and Software | 0 | 0 | 1,732 | ||||||||||||||
Distribution (ADI) | 0 | 0 | 2,196 | ||||||||||||||
Products | 2,995 | 3,314 | 2,953 | ||||||||||||||
Building Solutions | 2,194 | 2,403 | 2,417 | ||||||||||||||
5,189 | 5,717 | 9,298 | |||||||||||||||
Performance Materials and Technologies | |||||||||||||||||
UOP | 2,177 | 2,890 | 2,845 | ||||||||||||||
Process Solutions | 4,590 | 5,146 | 4,981 | ||||||||||||||
Specialty Products | 1,075 | 1,062 | 1,134 | ||||||||||||||
Fluorine Products | 1,581 | 1,736 | 1,714 | ||||||||||||||
9,423 | 10,834 | 10,674 | |||||||||||||||
Safety and Productivity Solutions | |||||||||||||||||
Safety and Retail | 2,414 | 2,215 | 2,278 | ||||||||||||||
Productivity Solutions and Services | 1,256 | 1,270 | 1,540 | ||||||||||||||
Warehouse and Workflow Solutions | 2,018 | 1,771 | 1,662 | ||||||||||||||
Sensing & Internet-of-Things (IoT) | 793 | 848 | 857 | ||||||||||||||
6,481 | 6,104 | 6,337 | |||||||||||||||
Net sales | $ | 32,637 | $ | 36,709 | $ | 41,802 |
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, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Products, transferred point in time | 61 | % | 61 | % | 67 | % | |||||||||||
Products, transferred over time | 15 | 14 | 12 | ||||||||||||||
Net product sales | 76 | 75 | 79 | ||||||||||||||
Services, transferred point in time | 8 | 9 | 7 | ||||||||||||||
Services, transferred over time | 16 | 16 | 14 | ||||||||||||||
Net service sales | 24 | 25 | 21 | ||||||||||||||
Net sales | 100 | % | 100 | % | 100 | % |
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 | % |
2020 | 2019 | ||||||||||
Contract assets—January 1 | $ | 1,602 | $ | 1,548 | |||||||
Contract assets—December 31 | 1,618 | 1,602 | |||||||||
Change in contract assets—increase (decrease) | $ | 16 | $ | 54 | |||||||
Contract liabilities—January 1 | $ | (3,501) | $ | (3,378) | |||||||
Contract liabilities—December 31 | (4,033) | (3,501) | |||||||||
Change in contract liabilities—(increase) decrease | $ | (532) | $ | (123) | |||||||
Net change | $ | (516) | $ | (69) |
December 31, 2020 | |||||
Aerospace | $ | 9,493 | |||
Honeywell Building Technologies | 5,924 | ||||
Performance Materials and Technologies | 6,704 | ||||
Safety and Productivity Solutions | 4,255 | ||||
$ | 26,376 |
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 |
Years Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Severance | $ | 475 | $ | 260 | $ | 289 | |||||||||||
Asset impairments | 21 | 95 | 162 | ||||||||||||||
Exit costs | 69 | 83 | 79 | ||||||||||||||
Reserve adjustments | (47) | (5) | (10) | ||||||||||||||
Total net repositioning charge | 518 | 433 | 520 | ||||||||||||||
Asbestos related litigation charges, net of insurance and reimbursements | 50 | 42 | 163 | ||||||||||||||
Probable and reasonably estimable environmental liabilities, net of reimbursements | 27 | 59 | 345 | ||||||||||||||
Other | (20) | 12 | 63 | ||||||||||||||
Total net repositioning and other charges | $ | 575 | $ | 546 | $ | 1,091 |
Years Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Cost of products and services sold | $ | 308 | $ | 276 | $ | 811 | |||||||||||
Selling, general and administrative expenses | 267 | 270 | 239 | ||||||||||||||
Other (income) expense | 0 | 0 | 41 | ||||||||||||||
$ | 575 | $ | 546 | $ | 1,091 |
Years Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Aerospace | $ | 157 | $ | 33 | $ | 154 | |||||||||||
Honeywell Building Technologies | 100 | 108 | 111 | ||||||||||||||
Performance Materials and Technologies | 167 | 93 | 191 | ||||||||||||||
Safety and Productivity Solutions | 41 | 71 | 133 | ||||||||||||||
Corporate | 110 | 241 | 502 | ||||||||||||||
$ | 575 | $ | 546 | $ | 1,091 |
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 | % |
Severance Costs | Asset Impairments | Exit Costs | Total | ||||||||||||||||||||
Balance at December 31, 2017 | $ | 442 | $ | 0 | $ | 71 | $ | 513 | |||||||||||||||
Charges | 289 | 162 | 79 | 530 | |||||||||||||||||||
Usage—cash | (218) | 0 | (67) | (285) | |||||||||||||||||||
Usage—noncash | 0 | (163) | 0 | (163) | |||||||||||||||||||
Divestitures | (11) | 0 | (3) | (14) | |||||||||||||||||||
Adjustments | (8) | 1 | (3) | (10) | |||||||||||||||||||
Foreign currency translation | (5) | 0 | 0 | (5) | |||||||||||||||||||
Balance at December 31, 2018 | 489 | 0 | 77 | 566 | |||||||||||||||||||
Charges | 260 | 95 | 83 | 438 | |||||||||||||||||||
Usage—cash | (186) | 0 | (63) | (249) | |||||||||||||||||||
Usage—noncash | 0 | (100) | 0 | (100) | |||||||||||||||||||
Divestitures | 0 | 0 | 0 | 0 | |||||||||||||||||||
Adjustments | (8) | 5 | (2) | (5) | |||||||||||||||||||
Foreign currency translation | 0 | 0 | 1 | 1 | |||||||||||||||||||
Balance at December 31, 2019 | 555 | 0 | 96 | 651 | |||||||||||||||||||
Charges | 475 | 21 | 69 | 565 | |||||||||||||||||||
Usage—cash | (474) | 0 | (90) | (564) | |||||||||||||||||||
Usage—noncash | 0 | (21) | 0 | (21) | |||||||||||||||||||
Divestitures | 0 | 0 | 0 | 0 | |||||||||||||||||||
Adjustments | (44) | 0 | (3) | (47) | |||||||||||||||||||
Foreign currency translation | 15 | 0 | 2 | 17 | |||||||||||||||||||
Balance at December 31, 2020 | $ | 527 | $ | 0 | $ | 74 | $ | 601 |
Years Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
U.S. | $ | 3,318 | $ | 4,178 | $ | 2,919 | |||||||||||
Non-U.S. | 2,694 | 3,381 | 4,568 | ||||||||||||||
$ | 6,012 | $ | 7,559 | $ | 7,487 |
Years Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Tax expense (benefit) consists of | |||||||||||||||||
Current: | |||||||||||||||||
U.S. Federal | $ | 475 | $ | 8 | $ | (21) | |||||||||||
U.S. State | 79 | 43 | 89 | ||||||||||||||
Non-U.S. | 768 | 1,099 | 1,177 | ||||||||||||||
$ | 1,322 | $ | 1,150 | $ | 1,245 | ||||||||||||
Deferred: | |||||||||||||||||
U.S. Federal | $ | 234 | $ | 332 | $ | 396 | |||||||||||
U.S. State | 39 | 63 | 8 | ||||||||||||||
Non-U.S. | (448) | (216) | (990) | ||||||||||||||
(175) | 179 | (586) | |||||||||||||||
$ | 1,147 | $ | 1,329 | $ | 659 |
Years Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
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 | % | 21.0 | % | |||||||||||
Taxes on non-U.S. earnings(1)(2) | (0.8) | (0.5) | 0.2 | ||||||||||||||
U.S. state income taxes(1) | 1.3 | 1.1 | 1.6 | ||||||||||||||
Reserves for tax contingencies | (2.6) | 2.0 | 0.3 | ||||||||||||||
Employee share-based payments | (1.2) | (1.2) | (0.7) | ||||||||||||||
Reduction of certain receivables | 2.0 | 0 | 0 | ||||||||||||||
U.S. Tax Cuts and Jobs Act | 0 | (3.6) | (5.8) | ||||||||||||||
Reduction of taxes on unremitted earnings | 0 | 0 | (14.2) | ||||||||||||||
Separation tax costs | 0 | 0 | 5.5 | ||||||||||||||
All other items—net | (0.6) | (1.2) | 0.9 | ||||||||||||||
19.1 | % | 17.6 | % | 8.8 | % |
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 | ) |
Deferred tax assets: | December 31, | ||||||||||
2020 | 2019 | ||||||||||
Postretirement benefits other than pensions | $ | 85 | $ | 111 | |||||||
Asbestos and environmental | 508 | 531 | |||||||||
Employee compensation and benefits | 180 | 205 | |||||||||
Lease liabilities | 197 | 167 | |||||||||
Other accruals and reserves | 110 | 279 | |||||||||
Net operating and capital losses | 779 | 652 | |||||||||
Tax credit carryforwards | 219 | 246 | |||||||||
Gross deferred tax assets | 2,078 | 2,191 | |||||||||
Valuation allowance | (766) | (656) | |||||||||
Total deferred tax assets | $ | 1,312 | $ | 1,535 | |||||||
Deferred tax liabilities: | |||||||||||
Pension | $ | (548) | $ | (469) | |||||||
Property, plant and equipment | (437) | (477) | |||||||||
Right-of-use asset | (184) | (159) | |||||||||
Intangibles | (898) | (1,296) | |||||||||
Unremitted earnings of foreign subsidiaries | (398) | (419) | |||||||||
Other asset basis differences | (169) | (136) | |||||||||
Other | (31) | (163) | |||||||||
Total deferred tax liabilities | (2,665) | (3,119) | |||||||||
Net deferred tax liability | $ | (1,353) | $ | (1,584) |
Jurisdiction | Expiration Period | Net Operating and Capital Loss Carryforwards | Tax Credit Carryforwards | ||||||||||||||
U.S. Federal | 2040 | $ | 24 | $ | 92 | ||||||||||||
U.S. State | 2040 | 382 | 21 | ||||||||||||||
Non-U.S. | 2040 | 314 | 111 | ||||||||||||||
Non-U.S. | Indefinite | 2,532 | 0 | ||||||||||||||
$ | 3,252 | $ | 224 |
Years Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Change in unrecognized tax benefits: | |||||||||||||||||
Balance at beginning of year | $ | 1,164 | $ | 1,089 | $ | 947 | |||||||||||
Gross increases related to current period tax positions | 94 | 51 | 370 | ||||||||||||||
Gross increases related to prior periods tax positions | 68 | 83 | 82 | ||||||||||||||
Gross decreases related to prior periods tax positions | (256) | (34) | (201) | ||||||||||||||
Decrease related to resolutions of audits with tax authorities | (35) | (3) | (40) | ||||||||||||||
Expiration of the statute of limitations for the assessment of taxes | (76) | (13) | (50) | ||||||||||||||
Foreign currency translation | 32 | (9) | (19) | ||||||||||||||
Balance at end of year | $ | 991 | $ | 1,164 | $ | 1,089 |
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 |
Jurisdiction | Open Tax Years Based on Originally Filed Returns | ||||||||||
Examination in progress | Examination not yet initiated | ||||||||||
U.S. Federal | 2017 - 2018 | 2019 - 2020 | |||||||||
U.S. State | 2011 - 2019 | 2016 - 2019 | |||||||||
Australia | N/A | 2017 - 2020 | |||||||||
Canada(1) | 2015 - 2018 | 2019 - 2020 | |||||||||
China | 2010 - 2019 | 2020 | |||||||||
France | 2017 - 2019 | 2020 | |||||||||
Germany(1) | 2008 - 2018 | 2019 - 2020 | |||||||||
India | 1999 - 2018 | 2019 - 2020 | |||||||||
Italy | 2012 - 2017 | 2018 - 2020 | |||||||||
Netherlands | 2016 - 2017 | 2018 - 2020 | |||||||||
Switzerland(1) | 2015 - 2018 | 2019 - 2020 | |||||||||
United Kingdom | 2013 - 2018 | 2019 - 2020 |
December 31, | |||||||||||
2020 | 2019 | ||||||||||
Trade | $ | 7,029 | $ | 7,639 | |||||||
Less—Allowance for doubtful accounts | (202) | (146) | |||||||||
$ | 6,827 | $ | 7,493 |
December 31, | |||||||||||
2020 | 2019 | ||||||||||
Raw materials | $ | 1,079 | $ | 1,056 | |||||||
Work in process | 798 | 817 | |||||||||
Finished products | 2,612 | 2,593 | |||||||||
4,489 | 4,466 | ||||||||||
Reduction to LIFO cost basis | 0 | (45) | |||||||||
$ | 4,489 | $ | 4,421 |
December 31, | |||||||||||
2020 | 2019 | ||||||||||
Land and improvements | $ | 259 | $ | 251 | |||||||
Machinery and equipment | 10,008 | 9,586 | |||||||||
Buildings and improvements | 3,245 | 3,152 | |||||||||
Construction in progress | 825 | 724 | |||||||||
14,337 | 13,713 | ||||||||||
Less—Accumulated depreciation | (8,767) | (8,388) | |||||||||
$ | 5,570 | $ | 5,325 |
December 31, 2019 | Acquisitions/ Divestitures | Currency Translation Adjustment | December 31, 2020 | ||||||||||||||||||||
Aerospace | $ | 2,266 | $ | 105 | $ | 7 | $ | 2,378 | |||||||||||||||
Honeywell Building Technologies | 3,215 | 62 | 108 | 3,385 | |||||||||||||||||||
Performance Materials and Technologies | 5,105 | 0 | 150 | 5,255 | |||||||||||||||||||
Safety and Productivity Solutions | 4,977 | 0 | 63 | 5,040 | |||||||||||||||||||
$ | 15,563 | $ | 167 | $ | 328 | $ | 16,058 |
December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||||||||||||||
Determinable life intangibles: | |||||||||||||||||||||||||||||||||||
Patents and technology | $ | 2,159 | $ | (1,595) | $ | 564 | $ | 2,060 | $ | (1,481) | $ | 579 | |||||||||||||||||||||||
Customer relationships | 3,889 | (2,050) | 1,839 | 3,769 | (1,766) | 2,003 | |||||||||||||||||||||||||||||
Trademarks | 327 | (247) | 80 | 317 | (228) | 89 | |||||||||||||||||||||||||||||
Other | 298 | (267) | 31 | 297 | (262) | 35 | |||||||||||||||||||||||||||||
6,673 | (4,159) | 2,514 | 6,443 | (3,737) | 2,706 | ||||||||||||||||||||||||||||||
Indefinite life intangibles: | |||||||||||||||||||||||||||||||||||
Trademarks | 1,046 | — | 1,046 | 1,028 | — | 1,028 | |||||||||||||||||||||||||||||
$ | 7,719 | $ | (4,159) | $ | 3,560 | $ | 7,471 | $ | (3,737) | $ | 3,734 |
December 31, | |||||||||||
2020 | 2019 | ||||||||||
0.65% Euro notes due 2020 | $ | 0 | $ | 1,123 | |||||||
4.25% notes due 2021 | 800 | 800 | |||||||||
1.85% notes due 2021 | 1,500 | 1,500 | |||||||||
0.483% notes due 2022 | 2,500 | 0 | |||||||||
2.15% notes due 2022 | 600 | 600 | |||||||||
Floating rate notes due 2022 | 1,100 | 600 | |||||||||
1.30% Euro notes due 2023 | 1,534 | 1,404 | |||||||||
3.35% notes due 2023 | 300 | 300 | |||||||||
0.00% Euro notes due 2024 | 614 | 0 | |||||||||
2.30% notes due 2024 | 750 | 750 | |||||||||
1.35% notes due 2025 | 1,250 | 0 | |||||||||
2.50% notes due 2026 | 1,500 | 1,500 | |||||||||
2.25% Euro notes due 2028 | 920 | 842 | |||||||||
2.70% notes due 2029 | 750 | 750 | |||||||||
1.95% notes due 2030 | 1,000 | 0 | |||||||||
0.75% Euro notes due 2032 | 614 | 0 | |||||||||
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 | |||||||||
2.80% notes due 2050 | 750 | 0 | |||||||||
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 capitalized leases and debt issuance costs), 8.9% weighted average interest rate maturing at various dates through 2025 | 266 | 278 | |||||||||
18,787 | 12,486 | ||||||||||
Less-current portion | (2,445) | (1,376) | |||||||||
$ | 16,342 | $ | 11,110 |
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, 2020 | |||||
2021 | $ | 2,445 | |||
2022 | 4,240 | ||||
2023 | 1,862 | ||||
2024 | 1,392 | ||||
2025 | 1,255 | ||||
Thereafter | 7,593 | ||||
18,787 | |||||
Less-current portion | (2,445) | ||||
$ | 16,342 |
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 |
Years Ended December 31, | |||||||||||||||||
2020 | 2019 | ||||||||||||||||
Operating lease cost | $ | 214 | $ | 222 | |||||||||||||
Variable lease cost | 18 | 27 | |||||||||||||||
Short-term lease cost | 17 | 12 | |||||||||||||||
Finance lease cost: | |||||||||||||||||
Amortization of right-of-use assets | 69 | 65 | |||||||||||||||
Interest on lease liability | 27 | 30 | |||||||||||||||
Total finance lease cost | 96 | 95 | |||||||||||||||
Total lease cost | $ | 345 | $ | 356 |
Years Ended December 31, | |||||||||||||||||
2020 | 2019 | ||||||||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||||||||
Operating cash flows for operating leases | $ | 206 | $ | 224 | |||||||||||||
Operating cash flows for finance leases | 32 | 32 | |||||||||||||||
Financing cash flows for finance leases | 65 | 61 | |||||||||||||||
Right-of-use assets obtained in exchange for lease obligations: | |||||||||||||||||
Operating leases | $ | 245 | $ | 179 | |||||||||||||
Finance leases | 27 | 34 |
December 31, | |||||||||||
2020 | 2019 | ||||||||||
Operating leases | |||||||||||
Other assets | $ | 773 | $ | 673 | |||||||
Accrued liabilities | 187 | 171 | |||||||||
Other liabilities | 641 | 534 | |||||||||
Total operating lease liabilities | $ | 828 | $ | 705 | |||||||
Finance leases | |||||||||||
Property, plant and equipment | $ | 357 | $ | 361 | |||||||
Accumulated depreciation | (180) | (152) | |||||||||
Property, plant and equipment—net | $ | 177 | $ | 209 | |||||||
Current maturities of long-term debt | 60 | 59 | |||||||||
Long-term debt | 124 | 156 | |||||||||
Total finance lease liabilities | $ | 184 | $ | 215 | |||||||
Weighted-average remaining lease term | |||||||||||
Operating leases | 7 years | 6 years | |||||||||
Finance leases | 3 years | 4 years | |||||||||
Weighted-average discount rate | |||||||||||
Operating leases | 2.9 | % | 3.3 | % | |||||||
Finance leases | 16.3 | % | 16.2 | % |
Operating Leases | Finance Leases | ||||||||||
2021 | $ | 204 | $ | 83 | |||||||
2022 | 169 | 63 | |||||||||
2023 | 137 | 46 | |||||||||
2024 | 103 | 40 | |||||||||
2025 | 69 | 13 | |||||||||
Thereafter | 231 | 0 | |||||||||
Total lease payments | 913 | 245 | |||||||||
Less-interest | (85) | (61) | |||||||||
Total | $ | 828 | $ | 184 |
Notional | Fair Value Asset | Fair Value (Liability) | |||||||||||||||||||||||||||||||||
December 31, 2020 | December 31, 2019 | December 31, 2020 | December 31, 2019 | December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||
Derivatives in Fair Value Hedging Relationships: | |||||||||||||||||||||||||||||||||||
Interest rate swap agreements | $ | 3,950 | $ | 3,950 | $ | 194 | $ | 38 | $ | 0 | $ | (13) | |||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships: | |||||||||||||||||||||||||||||||||||
Foreign currency exchange contracts | 488 | 3,340 | 65 | 218 | (58) | (16) | |||||||||||||||||||||||||||||
Derivatives in Net Investment Hedging Relationships: | |||||||||||||||||||||||||||||||||||
Foreign currency exchange contracts | 806 | 866 | 45 | 71 | (1) | 0 | |||||||||||||||||||||||||||||
Cross currency swap agreements | 1,200 | 1,200 | 0 | 51 | (50) | 0 | |||||||||||||||||||||||||||||
Total Derivatives Designated as Hedging Instruments | 6,444 | 9,356 | 304 | 378 | (109) | (29) | |||||||||||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments: | |||||||||||||||||||||||||||||||||||
Foreign currency exchange contracts | 14,829 | 8,540 | 92 | 2 | (91) | (5) | |||||||||||||||||||||||||||||
Total Derivatives at Fair Value | $ | 21,273 | $ | 17,896 | $ | 396 | $ | 380 | $ | (200) | $ | (34) |
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, 2020 | December 31, 2019 | December 31, 2020 | December 31, 2019 | ||||||||||||||||||||
Long-term debt | $ | 4,144 | $ | 3,975 | $ | 194 | $ | 25 |
Year Ended December 31, 2020 | |||||||||||||||||||||||||||||
Revenue | Cost of Products and Services Sold | SG&A | Other (Income) Expense | Interest and Other Financial Charges | |||||||||||||||||||||||||
$ | 32,637 | $ | 22,169 | $ | 4,772 | $ | (675) | $ | 359 | ||||||||||||||||||||
Gain or (loss) on cash flow hedges: | |||||||||||||||||||||||||||||
Foreign Currency Exchange Contracts: | |||||||||||||||||||||||||||||
Amount reclassified from accumulated other comprehensive income into income | (3) | 54 | (4) | 28 | 0 | ||||||||||||||||||||||||
Amount excluded from effectiveness testing recognized in earnings using an amortization approach | 0 | 13 | 0 | 29 | 0 | ||||||||||||||||||||||||
Gain or (loss) on fair value hedges: | |||||||||||||||||||||||||||||
Interest Rate Swap Agreements: | |||||||||||||||||||||||||||||
Hedged items | 0 | 0 | 0 | 0 | (169) | ||||||||||||||||||||||||
Derivatives designated as hedges | 0 | 0 | 0 | 0 | 169 | ||||||||||||||||||||||||
Gain or (loss) on net investment hedges: | |||||||||||||||||||||||||||||
Foreign Currency Exchange Contracts: | |||||||||||||||||||||||||||||
Amount excluded from effectiveness testing recognized in earnings using an amortization approach | 0 | 0 | 0 | 0 | 18 | ||||||||||||||||||||||||
Gain or (loss) on derivatives not designated as hedging instruments: | |||||||||||||||||||||||||||||
Foreign currency exchange contracts | 0 | 0 | 0 | (166) | 0 |
Year Ended December 31, 2019 | |||||||||||||||||||||||||||||
Revenue | Cost of Products and Services Sold | SG&A | Other (Income) Expense | Interest and Other Financial Charges | |||||||||||||||||||||||||
$ | 36,709 | $ | 24,339 | $ | 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 | 0 | ||||||||||||||||||||||||
Amount excluded from effectiveness testing recognized in earnings using an amortization approach | 0 | 22 | 0 | 35 | 0 | ||||||||||||||||||||||||
Gain or (loss) on fair value hedges: | |||||||||||||||||||||||||||||
Interest Rate Swap Agreements: | |||||||||||||||||||||||||||||
Hedged items | 0 | 0 | 0 | 0 | (70) | ||||||||||||||||||||||||
Derivatives designated as hedges | 0 | 0 | 0 | 0 | 70 | ||||||||||||||||||||||||
Gain or (loss) on net investment hedges: | |||||||||||||||||||||||||||||
Foreign Currency Exchange Contracts: | |||||||||||||||||||||||||||||
Amount excluded from effectiveness testing recognized in earnings using an amortization approach | 0 | 0 | 0 | 0 | 19 | ||||||||||||||||||||||||
Gain or (loss) on derivatives not designated as hedging instruments: | |||||||||||||||||||||||||||||
Foreign currency exchange contracts | 0 | 0 | 0 | 106 | 0 |
Derivatives Net Investment Hedging Relationships | Years Ended December 31, | ||||||||||
2020 | 2019 | ||||||||||
Euro-denominated long-term debt | $ | (256) | $ | 68 | |||||||
Euro-denominated commercial paper | (8) | 71 | |||||||||
Cross currency swap | (109) | 32 | |||||||||
Foreign currency exchange contracts | (94) | 23 |
December 31, | |||||||||||
2020 | 2019 | ||||||||||
Assets: | |||||||||||
Foreign currency exchange contracts | $ | 202 | $ | 291 | |||||||
Available for sale investments | 1,118 | 1,523 | |||||||||
Interest rate swap agreements | 194 | 38 | |||||||||
Cross currency swap agreements | 0 | 51 | |||||||||
Liabilities: | |||||||||||
Foreign currency exchange contracts | $ | 150 | $ | 21 | |||||||
Interest rate swap agreements | 0 | 13 | |||||||||
Cross currency swap agreements | 50 | 0 |
December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Long-term receivables | $ | 137 | $ | 132 | $ | 129 | $ | 127 | |||||||||||||||
Liabilities: | |||||||||||||||||||||||
Long-term debt and related current maturities | $ | 18,787 | $ | 20,176 | $ | 12,486 | $ | 13,578 |
December 31, | |||||||||||
2020 | 2019 | ||||||||||
Customer advances and deferred income | $ | 2,932 | $ | 2,490 | |||||||
Compensation, benefit and other employee related | 1,244 | 1,551 | |||||||||
Repositioning | 601 | 640 | |||||||||
Asbestos related liabilities | 300 | 361 | |||||||||
Income taxes | 307 | 253 | |||||||||
Other taxes | 281 | 239 | |||||||||
Environmental costs | 225 | 222 | |||||||||
Operating lease liabilities | 187 | 171 | |||||||||
Product warranties and performance guarantees | 183 | 213 | |||||||||
Insurance | 140 | 143 | |||||||||
Accrued interest | 102 | 91 | |||||||||
Other (primarily operating expenses) | 903 | 1,102 | |||||||||
$ | 7,405 | $ | 7,476 |
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, | |||||||||||
2020 | 2019 | ||||||||||
Income taxes | $ | 2,009 | $ | 2,115 | |||||||
Pension and other employee related | 1,923 | 1,873 | |||||||||
Deferred income | 1,356 | 1,310 | |||||||||
Operating lease liabilities | 641 | 534 | |||||||||
Environmental | 435 | 487 | |||||||||
Insurance | 280 | 247 | |||||||||
Product warranties and performance guarantees | 60 | 56 | |||||||||
Asset retirement obligations | 31 | 61 | |||||||||
Other | 240 | 83 | |||||||||
$ | 6,975 | $ | 6,766 |
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 |
Year Ended December 31, 2019 | |||
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | $ | 224 | |
Operating cash flows from finance leases | 32 | ||
Financing cash flows from finance leases | 61 | ||
Right-of-use assets obtained in exchange for lease obligations: | |||
Operating leases | $ | 179 | |
Finance leases | 34 |
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 |
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, 2019 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 | $ | — | $ | — | $ | — | $ | — | $ | 135 | $ | 135 | |||||||||||
Prior service (credit) recognized | — | — | — | — | (104 | ) | (104 | ) | |||||||||||||||
Settlements and curtailments | — | — | — | — | — | — | |||||||||||||||||
Losses (gains) on cash flow hedges | (3 | ) | (35 | ) | (9 | ) | (1 | ) | (73 | ) | (121 | ) | |||||||||||
Losses (gains) on net investment hedges | — | — | — | — | (19 | ) | (19 | ) | |||||||||||||||
Total before tax | $ | (3 | ) | $ | (35 | ) | $ | (9 | ) | $ | (1 | ) | $ | (61 | ) | $ | (109 | ) | |||||
Tax expense (benefit) | (59 | ) | |||||||||||||||||||||
Total reclassifications for the period, net of tax | $ | (168 | ) |
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, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Compensation expense | $ | 50 | $ | 47 | $ | 64 | |||||||||||
Future income tax benefit recognized | 10 | 10 | 13 |
Years Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Weighted average fair value per share of options granted during the year(1) | $ | 21.30 | $ | 21.57 | $ | 23.63 | |||||||||||
Assumptions: | |||||||||||||||||
Expected annual dividend yield | 2.59 | % | 2.65 | % | 2.49 | % | |||||||||||
Expected volatility | 18.76 | % | 18.40 | % | 18.93 | % | |||||||||||
Risk-free rate of return | 1.32 | % | 2.46 | % | 2.71 | % | |||||||||||
Expected option term (years) | 4.62 | 4.87 | 4.95 |
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 |
Number of Options | Weighted Average Exercise Price | ||||||||||
Outstanding at December 31, 2017 | 23,409,293 | $ | 94.16 | ||||||||
Spin related adjustment(1) | 989,158 | ||||||||||
Granted | 3,303,722 | 148.48 | |||||||||
Exercised | (3,399,375) | 78.29 | |||||||||
Lapsed or canceled | (1,824,217) | 123.01 | |||||||||
Outstanding at December 31, 2018 | 22,478,581 | 97.83 | |||||||||
Granted | 3,136,058 | 155.43 | |||||||||
Exercised | (5,897,060) | 84.31 | |||||||||
Lapsed or canceled | (986,017) | 136.15 | |||||||||
Outstanding at December 31, 2019 | 18,731,562 | 109.87 | |||||||||
Granted | 3,192,693 | 176.93 | |||||||||
Exercised | (4,424,754) | 88.96 | |||||||||
Lapsed or canceled | (930,972) | 156.62 | |||||||||
Outstanding at December 31, 2020 | 16,568,529 | $ | 125.75 | ||||||||
Vested and expected to vest at December 31, 2020(2) | 15,442,367 | $ | 122.63 | ||||||||
Exercisable at December 31, 2020 | 10,120,793 | $ | 103.89 |
Number of Options | Weighted Average Exercise Price | |||||
Outstanding at December 31, 2016 | 28,667,300 | $ | 79.57 | |||
Granted | 5,098,569 | 125.16 | ||||
Exercised | (8,840,019 | ) | 62.34 | |||
Lapsed or canceled | (1,516,557 | ) | 109.04 | |||
Outstanding at December 31, 2017 | 23,409,293 | 94.16 | ||||
Spin related adjustment(1) | 989,158 | |||||
Granted | 3,303,722 | 148.48 | ||||
Exercised | (3,399,375 | ) | 78.29 | |||
Lapsed or canceled | (1,824,217 | ) | 123.01 | |||
Outstanding at December 31, 2018 | 22,478,581 | 97.83 | ||||
Granted | 3,136,058 | 155.43 | ||||
Exercised | (5,897,060 | ) | 84.31 | |||
Lapsed or canceled | (986,017 | ) | 136.15 | |||
Outstanding at December 31, 2019 | 18,731,562 | $ | 109.87 | |||
Vested and expected to vest at December 31, 2019(2) | 17,636,444 | $ | 107.39 | |||
Exercisable at December 31, 2019 | 11,620,992 | $ | 92.19 |
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 | 236,938 | 1 | $ | 56.58 | $ | 37 | 236,938 | $ | 56.58 | $ | 37 | ||||||||||||||||||||||||||||||
$65.00–$89.99 | 2,541,403 | 2.7 | 78.96 | 340 | 2,541,403 | 78.96 | 340 | ||||||||||||||||||||||||||||||||||
$90.00–$99.99 | 3,980,975 | 4.68 | 98.80 | 453 | 3,980,975 | 98.80 | 453 | ||||||||||||||||||||||||||||||||||
$100.00–$134.99 | 2,892,011 | 6.78 | 119.58 | 270 | 1,985,364 | 118.64 | 187 | ||||||||||||||||||||||||||||||||||
$135.00–$180.99 | 6,917,202 | 8.34 | 163.40 | 341 | 1,376,113 | 151.53 | 84 | ||||||||||||||||||||||||||||||||||
16,568,529 | 6.22 | $ | 125.75 | $ | 1,441 | 10,120,793 | $ | 103.89 | $ | 1,101 |
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 |
Options Exercised | Years Ended December 31, | ||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Intrinsic value(1) | $ | 379 | $ | 483 | $ | 238 | |||||||||||
Tax benefit realized | 84 | 117 | 47 |
Options Exercised | Years Ended December 31, | ||||||||||
2019 | 2018 | 2017 | |||||||||
Intrinsic value(1) | $ | 483 | $ | 238 | $ | 620 | |||||
Tax benefit realized | 117 | 47 | 221 |
Number of Restricted Stock Units | Weighted Average Grant Date Fair Value Per Share | ||||||||||
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 | |||||||||
Granted | 1,551,675 | 158.52 | |||||||||
Vested | (1,001,101) | 117.84 | |||||||||
Forfeited | (394,116) | 145.42 | |||||||||
Non-vested at December 31, 2020 | 3,396,523 | $ | 148.23 |
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 |
Years Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Compensation expense | $ | 118 | $ | 106 | $ | 111 | |||||||||||
Future income tax benefit recognized | 24 | 21 | 21 |
Years Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Compensation expense | $ | 106 | $ | 111 | $ | 97 | |||||
Future income tax benefit recognized | 21 | 21 | 19 |
Basic | Years Ended December 31, | ||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Net income attributable to Honeywell | $ | 4,779 | $ | 6,143 | $ | 6,765 | |||||||||||
Weighted average shares outstanding | 704.1 | 721.0 | 743.0 | ||||||||||||||
Earnings per share of common stock | $ | 6.79 | $ | 8.52 | $ | 9.10 |
Assuming Dilution | Years Ended December 31, | ||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Net income attributable to Honeywell | $ | 4,779 | $ | 6,143 | $ | 6,765 | |||||||||||
Average Shares | |||||||||||||||||
Weighted average shares outstanding | 704.1 | 721.0 | 743.0 | ||||||||||||||
Dilutive securities issuable—stock plans | 7.1 | 9.3 | 10.0 | ||||||||||||||
Total weighted average diluted shares outstanding | 711.2 | 730.3 | 753.0 | ||||||||||||||
Earnings per share of common stock—assuming dilution | $ | 6.72 | $ | 8.41 | $ | 8.98 |
Pre-tax | Tax | After-Tax | |||||||||||||||
Year Ended December 31, 2020 | |||||||||||||||||
Foreign exchange translation adjustment | $ | (214) | $ | 0 | $ | (214) | |||||||||||
Pensions and other postretirement benefit adjustments | 76 | (2) | 74 | ||||||||||||||
Changes in fair value of available for sale investments | 4 | 0 | 4 | ||||||||||||||
Changes in fair value of designated cash flow hedges | (61) | 17 | (44) | ||||||||||||||
$ | (195) | $ | 15 | $ | (180) | ||||||||||||
Year Ended December 31, 2019 | |||||||||||||||||
Foreign exchange translation adjustment | $ | 143 | $ | 0 | $ | 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) | $ | 0 | $ | (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) |
December 31, | |||||||||||
2020 | 2019 | ||||||||||
Cumulative foreign exchange translation adjustment | $ | (2,780) | $ | (2,566) | |||||||
Pensions and other postretirement benefit adjustments | (601) | (675) | |||||||||
Changes in fair value of available for sale investments | 4 | 0 | |||||||||
Changes in fair value of designated cash flow hedges | 0 | 44 | |||||||||
$ | (3,377) | $ | (3,197) |
Foreign Exchange Translation Adjustment | Pension and Other Postretirement Adjustments | Changes in Fair Value of Available for Sale Investments | Changes in Fair Value of Cash Flow Hedges | Total | |||||||||||||||||||||||||
Balance at December 31, 2018 | $ | (2,709) | $ | (761) | $ | 0 | $ | 33 | $ | (3,437) | |||||||||||||||||||
Other comprehensive income (loss) before reclassifications | 156 | 149 | 0 | 103 | 408 | ||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income | (13) | (63) | 0 | (92) | (168) | ||||||||||||||||||||||||
Net current period other comprehensive income (loss) | 143 | 86 | 0 | 11 | 240 | ||||||||||||||||||||||||
Balance at December 31, 2019 | $ | (2,566) | $ | (675) | $ | 0 | $ | 44 | $ | (3,197) | |||||||||||||||||||
Other comprehensive income (loss) before reclassifications | (201) | 115 | 4 | 10 | (72) | ||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income | (13) | (41) | 0 | (54) | (108) | ||||||||||||||||||||||||
Net current period other comprehensive income (loss) | (214) | 74 | 4 | (44) | (180) | ||||||||||||||||||||||||
Balance at December 31, 2020 | $ | (2,780) | $ | (601) | $ | 4 | $ | 0 | $ | (3,377) |
Year Ended December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||
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 | Interest and Other Financial Charges | Total | |||||||||||||||||||||||||||||||||||
Amortization of Pension and Other Postretirement Items: | |||||||||||||||||||||||||||||||||||||||||
Actuarial losses recognized | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 57 | $ | 0 | $ | 57 | |||||||||||||||||||||||||||
Prior service (credit) recognized | 0 | 0 | 0 | 0 | (108) | 0 | (108) | ||||||||||||||||||||||||||||||||||
Losses (gains) on cash flow hedges | 3 | (43) | (11) | 4 | (28) | 0 | (75) | ||||||||||||||||||||||||||||||||||
Losses (gains) on excluded component of net investment hedges | 0 | 0 | 0 | 0 | 0 | (18) | (18) | ||||||||||||||||||||||||||||||||||
Total before tax | $ | 3 | $ | (43) | $ | (11) | $ | 4 | $ | (79) | $ | (18) | $ | (144) | |||||||||||||||||||||||||||
Tax expense (benefit) | 36 | ||||||||||||||||||||||||||||||||||||||||
Total reclassifications for the period, net of tax | $ | (108) |
Year Ended December 31, 2019 | |||||||||||||||||||||||||||||||||||
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 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 135 | $ | 135 | |||||||||||||||||||||||
Prior service (credit) recognized | 0 | 0 | 0 | 0 | (104) | (104) | |||||||||||||||||||||||||||||
Losses (gains) on cash flow hedges | (3) | (35) | (9) | (1) | (73) | (121) | |||||||||||||||||||||||||||||
Losses (gains) on excluded component of net investment hedges | 0 | 0 | 0 | 0 | (19) | (19) | |||||||||||||||||||||||||||||
Total before tax | $ | (3) | $ | (35) | $ | (9) | $ | (1) | $ | (61) | $ | (109) | |||||||||||||||||||||||
Tax expense (benefit) | (59) | ||||||||||||||||||||||||||||||||||
Total reclassifications for the period, net of tax | $ | (168) |
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 |
Years Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Beginning of year | $ | 709 | $ | 755 | $ | 595 | |||||||||||
Accruals for environmental matters deemed probable and reasonably estimable | 173 | 213 | 395 | ||||||||||||||
Environmental liability payments | (216) | (256) | (218) | ||||||||||||||
Other | (6) | (3) | (17) | ||||||||||||||
End of year | $ | 660 | $ | 709 | $ | 755 |
December 31, | |||||||
2019 | 2018 | ||||||
Accrued liabilities | $ | 222 | $ | 175 | |||
Other liabilities | 487 | 580 | |||||
$ | 709 | $ | 755 |
December 31, | |||||||||||
2020 | 2019 | ||||||||||
Accrued liabilities | $ | 225 | $ | 222 | |||||||
Other liabilities | 435 | 487 | |||||||||
$ | 660 | $ | 709 |
Year Ended December 31, 2020 | Year Ended December 31, 2019 | Year Ended December 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Bendix | NARCO | Total | Bendix | NARCO | Total | Bendix | NARCO | Total | |||||||||||||||||||||||||||||||||||||||||||||
Beginning of year | $ | 1,499 | $ | 858 | $ | 2,357 | $ | 1,623 | $ | 891 | $ | 2,514 | $ | 1,703 | $ | 907 | $ | 2,610 | |||||||||||||||||||||||||||||||||||
Accrual for update to estimated liability | 80 | 18 | 98 | 78 | 22 | 100 | 197 | 32 | 229 | ||||||||||||||||||||||||||||||||||||||||||||
Change in estimated cost of future claims | 42 | 0 | 42 | (22) | 0 | (22) | (72) | 0 | (72) | ||||||||||||||||||||||||||||||||||||||||||||
Update of expected resolution values for pending claims | 10 | 0 | 10 | (4) | 0 | (4) | 1 | 0 | 1 | ||||||||||||||||||||||||||||||||||||||||||||
Asbestos related liability payments | (190) | (97) | (287) | (176) | (55) | (231) | (206) | (48) | (254) | ||||||||||||||||||||||||||||||||||||||||||||
End of year | $ | 1,441 | $ | 779 | $ | 2,220 | $ | 1,499 | $ | 858 | $ | 2,357 | $ | 1,623 | $ | 891 | $ | 2,514 |
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 |
Year Ended December 31, 2020 | Year Ended December 31, 2019 | Year Ended December 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Bendix | NARCO | Total | Bendix | NARCO | Total | Bendix | NARCO | Total | |||||||||||||||||||||||||||||||||||||||||||||
Beginning of year | $ | 153 | $ | 281 | $ | 434 | $ | 170 | $ | 307 | $ | 477 | $ | 191 | $ | 312 | $ | 503 | |||||||||||||||||||||||||||||||||||
Probable insurance recoveries related to estimated liability | 10 | 0 | 10 | 3 | 0 | 3 | 11 | 0 | 11 | ||||||||||||||||||||||||||||||||||||||||||||
Insurance receipts for asbestos related liabilities | (33) | (25) | (58) | (39) | (29) | (68) | (33) | (5) | (38) | ||||||||||||||||||||||||||||||||||||||||||||
Insurance receivables settlements and write offs | 18 | (2) | 16 | 19 | 3 | 22 | 1 | 0 | 1 | ||||||||||||||||||||||||||||||||||||||||||||
End of year | $ | 148 | $ | 254 | $ | 402 | $ | 153 | $ | 281 | $ | 434 | $ | 170 | $ | 307 | $ | 477 |
December 31, | |||||||||||
2020 | 2019 | ||||||||||
Other current assets | $ | 36 | $ | 42 | |||||||
Insurance recoveries for asbestos related liabilities | 366 | 392 | |||||||||
$ | 402 | $ | 434 | ||||||||
Accrued liabilities | $ | 300 | $ | 361 | |||||||
Asbestos related liabilities | 1,920 | 1,996 | |||||||||
$ | 2,220 | $ | 2,357 |
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, | ||||||||||
2020 | 2019 | ||||||||||
Claims Unresolved at the beginning of year | 6,480 | 6,209 | |||||||||
Claims Filed | 2,233 | 2,659 | |||||||||
Claims Resolved | (2,471) | (2,388) | |||||||||
Claims Unresolved at the end of year | 6,242 | 6,480 |
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 |
Disease Distribution of Unresolved Claims | December 31, | ||||||||||
2020 | 2019 | ||||||||||
Mesothelioma and Other Cancer Claims | 3,422 | 3,399 | |||||||||
Nonmalignant Claims | 2,820 | 3,081 | |||||||||
Total Claims | 6,242 | 6,480 |
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, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||
(in whole dollars) | |||||||||||||||||||||||||||||
Malignant claims | $ | 61,500 | $ | 50,200 | $ | 55,300 | $ | 56,000 | $ | 44,000 | |||||||||||||||||||
Nonmalignant claims | $ | 550 | $ | 3,900 | $ | 4,700 | $ | 2,800 | $ | 4,485 |
Years Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Beginning of year | $ | 269 | $ | 310 | $ | 408 | |||||||||||
Accruals for warranties/guarantees issued during the year | 164 | 173 | 208 | ||||||||||||||
Adjustment of pre-existing warranties/guarantees | (18) | (34) | (78) | ||||||||||||||
Settlement of warranty/guarantee claims | (172) | (180) | (228) | ||||||||||||||
End of year | $ | 243 | $ | 269 | $ | 310 |
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 |
December 31, | |||||||||||
2020 | 2019 | ||||||||||
Accrued liabilities | $ | 183 | $ | 213 | |||||||
Other liabilities | 60 | 56 | |||||||||
$ | 243 | $ | 269 |
December 31, | |||||||
2019 | 2018 | ||||||
Accrued liabilities | $ | 213 | $ | 243 | |||
Other liabilities | 56 | 67 | |||||
$ | 269 | $ | 310 |
Pension Benefits | |||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Change in benefit obligation: | |||||||||||||||||||||||
Benefit obligation at beginning of year | $ | 17,283 | $ | 16,141 | $ | 6,897 | $ | 6,182 | |||||||||||||||
Service cost | 99 | 82 | 23 | 22 | |||||||||||||||||||
Interest cost | 461 | 613 | 106 | 142 | |||||||||||||||||||
Plan amendments | 0 | 0 | 2 | 0 | |||||||||||||||||||
Actuarial (gains) losses(1) | 1,331 | 2,064 | 509 | 708 | |||||||||||||||||||
Benefits paid | (1,100) | (1,111) | (246) | (269) | |||||||||||||||||||
Settlements and curtailments | (21) | (507) | 0 | 0 | |||||||||||||||||||
Foreign currency translation | 0 | 0 | 291 | 107 | |||||||||||||||||||
Other | 1 | 1 | 88 | 5 | |||||||||||||||||||
Benefit obligation at end of year | 18,054 | 17,283 | 7,670 | 6,897 | |||||||||||||||||||
Change in plan assets: | |||||||||||||||||||||||
Fair value of plan assets at beginning of year | 18,995 | 17,109 | 7,307 | 6,481 | |||||||||||||||||||
Actual return on plan assets | 2,475 | 3,458 | 918 | 863 | |||||||||||||||||||
Company contributions | 46 | 45 | 116 | 62 | |||||||||||||||||||
Benefits paid | (1,100) | (1,111) | (246) | (269) | |||||||||||||||||||
Settlements and curtailments | (21) | (507) | 0 | 0 | |||||||||||||||||||
Foreign currency translation | 0 | 0 | 253 | 165 | |||||||||||||||||||
Other | 1 | 1 | 102 | 5 | |||||||||||||||||||
Fair value of plan assets at end of year | 20,396 | 18,995 | 8,450 | 7,307 | |||||||||||||||||||
Funded status of plans | $ | 2,342 | $ | 1,712 | $ | 780 | $ | 410 | |||||||||||||||
Amounts recognized in Consolidated Balance Sheet consist of: | |||||||||||||||||||||||
Prepaid pension benefit cost(2) | $ | 2,695 | $ | 2,069 | $ | 1,688 | $ | 1,196 | |||||||||||||||
Accrued pension liabilities—current(3) | (29) | (32) | (14) | (13) | |||||||||||||||||||
Accrued pension liabilities—noncurrent(4) | (324) | (325) | (894) | (773) | |||||||||||||||||||
Net amount recognized | $ | 2,342 | $ | 1,712 | $ | 780 | $ | 410 |
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 |
Other Postretirement Benefits | |||||||||||
2020 | 2019 | ||||||||||
Change in benefit obligation: | |||||||||||
Benefit obligation at beginning of year | $ | 325 | $ | 364 | |||||||
Service cost | 0 | 0 | |||||||||
Interest cost | 8 | 14 | |||||||||
Plan amendments | (65) | (2) | |||||||||
Actuarial (gains) losses | (8) | (16) | |||||||||
Benefits paid | (31) | (35) | |||||||||
Benefit obligation at end of year | 229 | 325 | |||||||||
Change in plan assets: | |||||||||||
Fair value of plan assets at beginning of year | 0 | 0 | |||||||||
Actual return on plan assets | 0 | 0 | |||||||||
Company contributions | 0 | 0 | |||||||||
Benefits paid | 0 | 0 | |||||||||
Fair value of plan assets at end of year | 0 | 0 | |||||||||
Funded status of plans | $ | (229) | $ | (325) | |||||||
Amounts recognized in Consolidated Balance Sheet consist of: | |||||||||||
Accrued liabilities | $ | (27) | $ | (40) | |||||||
Postretirement benefit obligations other than pensions(1) | (202) | (285) | |||||||||
Net amount recognized | $ | (229) | $ | (325) |
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 | ) |
Pension Benefits | |||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Prior service (credit) cost | $ | (134) | $ | (176) | $ | 23 | $ | 21 | |||||||||||||||
Net actuarial (gain) loss | 505 | 544 | 629 | 701 | |||||||||||||||||||
Net amount recognized | $ | 371 | $ | 368 | $ | 652 | $ | 722 |
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 | ) |
Other Postretirement Benefits | |||||||||||
2020 | 2019 | ||||||||||
Prior service (credit) cost | $ | (165) | $ | (166) | |||||||
Net actuarial (gain) loss | (28) | (20) | |||||||||
Net amount recognized | $ | (193) | $ | (186) |
Net Periodic Benefit Cost | Pension Benefits | ||||||||||||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | ||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||
Service cost | $ | 99 | $ | 82 | $ | 140 | $ | 23 | $ | 22 | $ | 26 | |||||||||||||||||||||||
Interest cost | 461 | 613 | 573 | 106 | 142 | 143 | |||||||||||||||||||||||||||||
Expected return on plan assets | (1,135) | (1,117) | (1,426) | (336) | (331) | (443) | |||||||||||||||||||||||||||||
Amortization of prior service (credit) cost | (42) | (42) | (43) | 0 | 0 | (1) | |||||||||||||||||||||||||||||
Recognition of actuarial losses | 26 | 35 | 0 | 18 | 88 | 37 | |||||||||||||||||||||||||||||
Settlements and curtailments | 4 | 4 | 0 | 0 | 0 | (3) | |||||||||||||||||||||||||||||
Net periodic benefit (income) cost | $ | (587) | $ | (425) | $ | (756) | $ | (189) | $ | (79) | $ | (241) |
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 | ) |
Other Changes in Plan Assets and Benefits Obligations Recognized in Other Comprehensive (Income) Loss | U.S. Plans | Non-U.S. Plans | |||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||
Actuarial (gains) losses | $ | (9) | $ | (277) | $ | 619 | $ | (73) | $ | 176 | $ | 250 | |||||||||||||||||||||||
Prior service (credit) cost | 0 | 0 | 0 | 2 | 0 | 30 | |||||||||||||||||||||||||||||
Prior service credit recognized during year | 42 | 42 | 43 | 0 | 0 | 4 | |||||||||||||||||||||||||||||
Actuarial losses recognized during year | (30) | (39) | 0 | (18) | (88) | (37) | |||||||||||||||||||||||||||||
Foreign currency translation | 0 | 0 | 0 | 19 | 14 | (34) | |||||||||||||||||||||||||||||
Total recognized in other comprehensive (income) loss | $ | 3 | $ | (274) | $ | 662 | $ | (70) | $ | 102 | $ | 213 | |||||||||||||||||||||||
Total recognized in net periodic benefit (income) cost and other comprehensive (income) loss | $ | (584) | $ | (699) | $ | (94) | $ | (259) | $ | 23 | $ | (28) |
Net Periodic Benefit Cost | Other Postretirement Benefits | ||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Service cost | $ | 0 | $ | 0 | $ | 0 | |||||||||||
Interest cost | 8 | 14 | 15 | ||||||||||||||
Amortization of prior service (credit) cost | (66) | (62) | (52) | ||||||||||||||
Recognition of actuarial losses | 0 | 0 | 3 | ||||||||||||||
Net periodic benefit (income) cost | $ | (58) | $ | (48) | $ | (34) |
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 |
Other Changes in Plan Assets and Benefits Obligations Recognized in Other Comprehensive (Income) Loss | Years Ended December 31, | ||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Actuarial (gains) losses | $ | (8) | $ | (16) | $ | (110) | |||||||||||
Prior service (credit) cost | (65) | (2) | (34) | ||||||||||||||
Prior service credit recognized during year | 66 | 62 | 52 | ||||||||||||||
Actuarial losses recognized during year | 0 | 0 | (3) | ||||||||||||||
Total recognized in other comprehensive (income) loss | $ | (7) | $ | 44 | $ | (95) | |||||||||||
Total recognized in net periodic benefit (income) cost and other comprehensive (income) loss | $ | (65) | $ | (4) | $ | (129) |
Pension Benefits | |||||||||||||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | ||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||
Actuarial assumptions used to determine benefit obligations as of December 31: | |||||||||||||||||||||||||||||||||||
Discount rate | 2.50 | % | 3.22 | % | 4.35 | % | 1.23 | % | 1.81 | % | 2.63 | % | |||||||||||||||||||||||
Expected annual rate of compensation increase | 3.25 | % | 3.25 | % | 3.25 | % | 2.43 | % | 2.47 | % | 2.46 | % | |||||||||||||||||||||||
Actuarial assumptions used to determine net periodic benefit (income) cost for years ended December 31: | |||||||||||||||||||||||||||||||||||
Discount rate—benefit obligation | 3.22 | % | 4.35 | % | 3.68 | % | 1.81 | % | 2.63 | % | 2.36 | % | |||||||||||||||||||||||
Discount rate—service cost | 3.33 | % | 4.47 | % | 3.77 | % | 1.48 | % | 2.26 | % | 2.20 | % | |||||||||||||||||||||||
Discount rate—interest cost | 2.76 | % | 3.94 | % | 3.27 | % | 1.56 | % | 2.34 | % | 2.08 | % | |||||||||||||||||||||||
Expected rate of return on plan assets | 6.15 | % | 6.75 | % | 7.75 | % | 4.66 | % | 5.14 | % | 6.23 | % | |||||||||||||||||||||||
Expected annual rate of compensation increase | 3.25 | % | 3.25 | % | 4.50 | % | 2.47 | % | 2.46 | % | 2.49 | % |
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 | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Actuarial assumptions used to determine benefit obligations as of December 31: | |||||||||||||||||
Discount rate | 2.20 | % | 3.03 | % | 4.07 | % | |||||||||||
Actuarial assumptions used to determine net periodic benefit cost for years ended December 31: | |||||||||||||||||
Discount rate(1) | 2.36 | % | 4.07 | % | 3.39 | % |
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 | % |
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 |
December 31, | |||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Projected benefit obligation | $ | 353 | $ | 357 | $ | 2,116 | $ | 1,018 | |||||||||||||||
Accumulated benefit obligation | $ | 341 | $ | 347 | $ | 2,042 | $ | 973 | |||||||||||||||
Fair value of plan assets | $ | 0 | $ | 0 | $ | 1,208 | $ | 233 |
U.S. Plans | |||||||||||||||||||||||
December 31, 2020 | |||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
Equities: | |||||||||||||||||||||||
Honeywell common stock | $ | 3,319 | $ | 3,319 | $ | 0 | $ | 0 | |||||||||||||||
U.S. equities | 0 | 0 | 0 | 0 | |||||||||||||||||||
Fixed income: | |||||||||||||||||||||||
Short term investments | 1,314 | 1,314 | 0 | 0 | |||||||||||||||||||
Government securities | 1,520 | 0 | 1,520 | 0 | |||||||||||||||||||
Corporate bonds | 10,190 | 0 | 10,190 | 0 | |||||||||||||||||||
Mortgage/Asset-backed securities | 982 | 0 | 982 | 0 | |||||||||||||||||||
Insurance contracts | 7 | 0 | 7 | 0 | |||||||||||||||||||
Direct investments: | |||||||||||||||||||||||
Direct private investments | 1,220 | 0 | 0 | 1,220 | |||||||||||||||||||
Real estate properties | 651 | 0 | 0 | 651 | |||||||||||||||||||
Total | 19,203 | $ | 4,633 | $ | 12,699 | $ | 1,871 | ||||||||||||||||
Investments measured at NAV: | |||||||||||||||||||||||
Private funds | 1,105 | ||||||||||||||||||||||
Real estate funds | 26 | ||||||||||||||||||||||
Commingled Funds | 62 | ||||||||||||||||||||||
Total assets at fair value | $ | 20,396 |
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, 2019 | |||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
Equities: | |||||||||||||||||||||||
Honeywell common stock | $ | 2,857 | $ | 2,857 | $ | 0 | $ | 0 | |||||||||||||||
U.S. equities | 1,227 | 1,227 | 0 | 0 | |||||||||||||||||||
Fixed income: | |||||||||||||||||||||||
Short term investments | 1,395 | 1,395 | 0 | 0 | |||||||||||||||||||
Government securities | 1,146 | 0 | 1,146 | 0 | |||||||||||||||||||
Corporate bonds | 8,603 | 0 | 8,603 | 0 | |||||||||||||||||||
Mortgage/Asset-backed securities | 1,023 | 0 | 1,023 | 0 | |||||||||||||||||||
Insurance contracts | 8 | 0 | 8 | 0 | |||||||||||||||||||
Direct investments: | |||||||||||||||||||||||
Direct private investments | 950 | 0 | 0 | 950 | |||||||||||||||||||
Real estate properties | 619 | 0 | 0 | 619 | |||||||||||||||||||
Total | 17,828 | $ | 5,479 | $ | 10,780 | $ | 1,569 | ||||||||||||||||
Investments measured at NAV: | |||||||||||||||||||||||
Private funds | 1,019 | ||||||||||||||||||||||
Real estate funds | 42 | ||||||||||||||||||||||
Commingled funds | 106 | ||||||||||||||||||||||
Total assets at fair value | $ | 18,995 |
Non-U.S. Plans | |||||||||||||||||||||||
December 31, 2020 | |||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
Equities: | |||||||||||||||||||||||
U.S. equities | $ | 207 | $ | 0 | $ | 207 | $ | 0 | |||||||||||||||
Non-U.S. equities | 1,614 | 66 | 1,548 | 0 | |||||||||||||||||||
Fixed income: | |||||||||||||||||||||||
Short-term investments | 596 | 596 | 0 | 0 | |||||||||||||||||||
Government securities | 3,105 | 0 | 3,105 | 0 | |||||||||||||||||||
Corporate bonds | 1,649 | 0 | 1,649 | 0 | |||||||||||||||||||
Mortgage/Asset-backed securities | 93 | 0 | 93 | 0 | |||||||||||||||||||
Insurance contracts | 142 | 0 | 142 | 0 | |||||||||||||||||||
Insurance buy-in contracts | 767 | 0 | 0 | 767 | |||||||||||||||||||
Investments in private funds: | |||||||||||||||||||||||
Private funds | 65 | 0 | 36 | 29 | |||||||||||||||||||
Real estate funds | 147 | 0 | 0 | 147 | |||||||||||||||||||
Total | 8,385 | $ | 662 | $ | 6,780 | $ | 943 | ||||||||||||||||
Investments measured at NAV: | |||||||||||||||||||||||
Private funds | 18 | ||||||||||||||||||||||
Real estate funds | 47 | ||||||||||||||||||||||
Total assets at fair value | $ | 8,450 |
Non-U.S. Plans | |||||||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
Equities: | |||||||||||||||||||||||
U.S. equities | $ | 149 | $ | 0 | $ | 149 | $ | 0 | |||||||||||||||
Non-U.S. equities | 1,384 | 54 | 1,330 | 0 | |||||||||||||||||||
Fixed income: | |||||||||||||||||||||||
Short-term investments | 522 | 522 | 0 | 0 | |||||||||||||||||||
Government securities | 3,006 | 0 | 3,006 | 0 | |||||||||||||||||||
Corporate bonds | 1,746 | 0 | 1,746 | 0 | |||||||||||||||||||
Mortgage/Asset-backed securities | 84 | 0 | 84 | 0 | |||||||||||||||||||
Insurance contracts | 120 | 0 | 120 | 0 | |||||||||||||||||||
Insurance buy-in contracts | 0 | 0 | 0 | 0 | |||||||||||||||||||
Investments in private funds: | |||||||||||||||||||||||
Private funds | 69 | 0 | 35 | 34 | |||||||||||||||||||
Real estate funds | 150 | 0 | 0 | 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 |
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 | ||||||||||||||||||||||||||||
Direct Private Investments | Real Estate Properties | Private Funds | Real Estate Funds | Insurance Buy-in Contracts | |||||||||||||||||||||||||
Balance at December 31, 2018 | $ | 829 | $ | 657 | $ | 34 | $ | 144 | $ | 0 | |||||||||||||||||||
Actual return on plan assets: | |||||||||||||||||||||||||||||
Relating to assets still held at year-end | 15 | 40 | 0 | 7 | 0 | ||||||||||||||||||||||||
Relating to assets sold during the year | 89 | (23) | 0 | 1 | 0 | ||||||||||||||||||||||||
Purchases | 216 | 48 | 0 | 0 | 0 | ||||||||||||||||||||||||
Sales and settlements | (199) | (103) | 0 | (2) | 0 | ||||||||||||||||||||||||
Balance at December 31, 2019 | 950 | 619 | 34 | 150 | 0 | ||||||||||||||||||||||||
Actual return on plan assets: | |||||||||||||||||||||||||||||
Relating to assets still held at year-end | 100 | (4) | (5) | (3) | 0 | ||||||||||||||||||||||||
Relating to assets sold during the year | 53 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Purchases | 221 | 59 | 0 | 0 | 767 | ||||||||||||||||||||||||
Sales and settlements | (104) | (23) | 0 | 0 | 0 | ||||||||||||||||||||||||
Balance at December 31, 2020 | $ | 1,220 | $ | 651 | $ | 29 | $ | 147 | $ | 767 |
U.S. Plans | Non-U.S. Plans | ||||||||||
2021 | $ | 1,147 | $ | 240 | |||||||
2022 | 1,143 | 242 | |||||||||
2023 | 1,139 | 247 | |||||||||
2024 | 1,130 | 252 | |||||||||
2025 | 1,116 | 257 | |||||||||
2026-2030 | 5,246 | 1,365 |
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, | |||||||||||
2020 | 2019 | ||||||||||
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 |
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 | ||||||||||
2021 | $ | 29 | $ | 27 | |||||||
2022 | 28 | 25 | |||||||||
2023 | 26 | 24 | |||||||||
2024 | 15 | 14 | |||||||||
2025 | 14 | 13 | |||||||||
2026-2030 | 61 | 57 |
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, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Interest income | $ | (107) | $ | (255) | $ | (217) | |||||||||||
Pension ongoing income—non-service | (901) | (606) | (1,165) | ||||||||||||||
Other postretirement income—non-service | (57) | (47) | (32) | ||||||||||||||
Equity income of affiliated companies | (66) | (52) | (50) | ||||||||||||||
Loss (gain) on sale of non-strategic business and assets | 3 | 1 | 0 | ||||||||||||||
Foreign exchange | (68) | (120) | (63) | ||||||||||||||
Separation costs | 0 | 0 | 321 | ||||||||||||||
Reimbursement receivables charge | 509 | 0 | 0 | ||||||||||||||
Other (net) | 12 | 14 | 57 | ||||||||||||||
$ | (675) | $ | (1,065) | $ | (1,149) |
Years Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Net Sales | |||||||||||||||||
Aerospace | |||||||||||||||||
Product | $ | 7,194 | $ | 8,766 | $ | 10,415 | |||||||||||
Service | 4,350 | 5,288 | 5,078 | ||||||||||||||
Total | 11,544 | 14,054 | 15,493 | ||||||||||||||
Honeywell Building Technologies | |||||||||||||||||
Product | 3,868 | 4,395 | 7,868 | ||||||||||||||
Service | 1,321 | 1,322 | 1,430 | ||||||||||||||
Total | 5,189 | 5,717 | 9,298 | ||||||||||||||
Performance Materials and Technologies | |||||||||||||||||
Product | 7,548 | 8,732 | 8,589 | ||||||||||||||
Service | 1,875 | 2,102 | 2,085 | ||||||||||||||
Total | 9,423 | 10,834 | 10,674 | ||||||||||||||
Safety and Productivity Solutions | |||||||||||||||||
Product | 6,127 | 5,736 | 5,976 | ||||||||||||||
Service | 354 | 368 | 361 | ||||||||||||||
Total | 6,481 | 6,104 | 6,337 | ||||||||||||||
$ | 32,637 | $ | 36,709 | $ | 41,802 | ||||||||||||
Depreciation and amortization | |||||||||||||||||
Aerospace | $ | 241 | $ | 234 | $ | 281 | |||||||||||
Honeywell Building Technologies | 55 | 63 | 112 | ||||||||||||||
Performance Materials and Technologies | 440 | 493 | 452 | ||||||||||||||
Safety and Productivity Solutions | 223 | 222 | 216 | ||||||||||||||
Corporate | 44 | 76 | 55 | ||||||||||||||
$ | 1,003 | $ | 1,088 | $ | 1,116 | ||||||||||||
Segment Profit | |||||||||||||||||
Aerospace | $ | 2,904 | $ | 3,607 | $ | 3,503 | |||||||||||
Honeywell Building Technologies | 1,099 | 1,165 | 1,608 | ||||||||||||||
Performance Materials and Technologies | 1,851 | 2,433 | 2,328 | ||||||||||||||
Safety and Productivity Solutions | 907 | 790 | 1,032 | ||||||||||||||
Corporate | (96) | (256) | (281) | ||||||||||||||
$ | 6,665 | $ | 7,739 | $ | 8,190 |
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, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Capital expenditures | |||||||||||||||||
Aerospace | $ | 248 | $ | 272 | $ | 308 | |||||||||||
Honeywell Building Technologies | 66 | 43 | 125 | ||||||||||||||
Performance Materials and Technologies | 252 | 314 | 254 | ||||||||||||||
Safety and Productivity Solutions | 288 | 82 | 78 | ||||||||||||||
Corporate | 52 | 128 | 63 | ||||||||||||||
$ | 906 | $ | 839 | $ | 828 | ||||||||||||
Total Assets | |||||||||||||||||
Aerospace | $ | 11,035 | $ | 11,378 | $ | 11,234 | |||||||||||
Honeywell Building Technologies | 6,351 | 5,968 | 6,010 | ||||||||||||||
Performance Materials and Technologies | 16,772 | 16,888 | 17,827 | ||||||||||||||
Safety and Productivity Solutions | 10,640 | 9,888 | 9,886 | ||||||||||||||
Corporate | 19,788 | 14,557 | 12,816 | ||||||||||||||
$ | 64,586 | $ | 58,679 | $ | 57,773 |
Years Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Segment Profit | $ | 6,665 | $ | 7,739 | $ | 8,190 | |||||||||||
Interest and other financial charges | (359) | (357) | (367) | ||||||||||||||
Stock compensation expense(1) | (168) | (153) | (175) | ||||||||||||||
Pension ongoing income (expense)(2) | 785 | 592 | 992 | ||||||||||||||
Pension mark-to-market expense(2) | (44) | (123) | (37) | ||||||||||||||
Other postretirement income(2) | 57 | 47 | 32 | ||||||||||||||
Repositioning and other charges(3) | (575) | (546) | (1,091) | ||||||||||||||
Other(4) | (349) | 360 | (57) | ||||||||||||||
Income before taxes | $ | 6,012 | $ | 7,559 | $ | 7,487 |
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 |
Net Sales(1) | Long-lived Assets(2) | ||||||||||||||||||||||||||||||||||
Years Ended December 31, | Years Ended December 31, | ||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||
United States | $ | 19,665 | $ | 21,910 | $ | 23,841 | $ | 3,823 | $ | 3,649 | $ | 3,601 | |||||||||||||||||||||||
Europe | 6,356 | 7,424 | 10,066 | 628 | 579 | 571 | |||||||||||||||||||||||||||||
Other International | 6,616 | 7,375 | 7,895 | 1,119 | 1,097 | 1,124 | |||||||||||||||||||||||||||||
$ | 32,637 | $ | 36,709 | $ | 41,802 | $ | 5,570 | $ | 5,325 | $ | 5,296 |
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 |
Years Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Net payments for repositioning and other charges: | |||||||||||||||||
Severance and exit cost payments | $ | (564) | $ | (249) | $ | (285) | |||||||||||
Environmental payments | (216) | (256) | (218) | ||||||||||||||
Reimbursement receipts | 176 | 292 | 67 | ||||||||||||||
Insurance receipts for asbestos related liabilities | 58 | 68 | 38 | ||||||||||||||
Asbestos related liability payments | (287) | (231) | (254) | ||||||||||||||
$ | (833) | $ | (376) | $ | (652) | ||||||||||||
Interest paid, net of amounts capitalized | $ | 329 | $ | 344 | $ | 353 | |||||||||||
Income taxes paid, net of refunds | 1,173 | 1,564 | 1,566 | ||||||||||||||
Non-cash investing and financing activities: | |||||||||||||||||
Common stock contributed to savings plans | 211 | 159 | 52 | ||||||||||||||
Marketable securities contributed to non-U.S. pension plans | 93 | 0 | 99 |
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 |
2020 | |||||||||||||||||||||||||||||
March 31 | June 30 | September 30 | December 31 | Year | |||||||||||||||||||||||||
Net sales | $ | 8,463 | $ | 7,477 | $ | 7,797 | $ | 8,900 | $ | 32,637 | |||||||||||||||||||
Gross profit | 2,929 | 2,201 | 2,414 | 2,924 | 10,468 | ||||||||||||||||||||||||
Net income attributable to Honeywell | 1,581 | 1,081 | 758 | 1,359 | 4,779 | ||||||||||||||||||||||||
Earnings per common share—basic(1) | 2.23 | 1.54 | 1.08 | 1.94 | 6.79 | ||||||||||||||||||||||||
Earnings per common share—assuming dilution(1) | 2.21 | 1.53 | 1.07 | 1.91 | 6.72 | ||||||||||||||||||||||||
Cash dividends per common share | 0.900 | 0.900 | 0.900 | 0.930 | 3.630 |
2019 | |||||||||||||||||||||||||||||
March 31 | June 30 | September 30 | December 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 |
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 |
Plan category | Number of Securities 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 | 20,223,330 | (1) | $ | 125.60 | (2) | 36,673,110 | (3) | ||||||||||||||||||||||||||||
Equity compensation plans not approved by security holders | 261,718 | (4) | N/A | (5) | N/A | (6) | |||||||||||||||||||||||||||||
Total | 20,485,048 | $ | 125.60 | 36,673,110 |
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 |
Page Number in Form 10-K | |||||
(a)(1.) Consolidated Financial Statements: | |||||
Consolidated Statement of Operations for the years ended December 31, 2020, 2019 | |||||
Consolidated Statement of Comprehensive Income for the years ended December 31, 2020, 2019 | |||||
Consolidated Balance Sheet at December 31, | |||||
Consolidated Statement of Cash Flows for the years ended December 31, 2020, 2019 | |||||
Consolidated Statement of Shareowners’ Equity for the years ended December 31, 2020, 2019 | |||||
Notes to Consolidated Financial Statements | |||||
Report of Independent Registered Public Accounting Firm |
Page Number in Form 10-K | |||||
(a) | |||||
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* | ||||||||
Exhibit No. | Description | ||||||||
10.68 | |||||||||
10.69* | |||||||||
10.70* | |||||||||
21 | |||||||||
23.1 | |||||||||
24 | |||||||||
31.1 | |||||||||
31.2 | |||||||||
32.1 | |||||||||
32.2 | |||||||||
95 |
101.INS | ||||||||
The following financial statements from the Company's Annual Report on Form 10-K for the year ended December 31, | ||||||||
101.SCH | ||||||||
101.CAL | ||||||||
101.DEF | ||||||||
101.LAB | ||||||||
101.PRE | ||||||||
104 | Cover page from the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, formatted in Inline XBRL (and contained in Exhibit 101) |
HONEYWELL INTERNATIONAL INC. | ||||||||||||||
Date: February | 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) |
Name | Name | |||||||
/s/ Darius E. Adamczyk | * | |||||||
Darius E. Adamczyk Chairman and Chief Executive Officer (Principal Executive Officer) | Deborah Flint Director | |||||||
* | * | |||||||
Duncan B. Angove Director | Judd A. Gregg Director | |||||||
Director | ||||||||
William S. Ayer Director | Clive R. Hollick Director | |||||||
* | * | |||||||
Kevin Burke Director | ||||||||
Director | Grace D. Lieblein Director | |||||||
* | * | |||||||
D. Scott Davis Director | Raymond T. Odierno Director | |||||||
* | * | |||||||
Linnet F. Deily Director | George Paz Director | |||||||
* | ||||||||
Robin L. Washington Director | ||||||||
/s/ Gregory P. Lewis | /s/ Robert D. Mailloux | |||||||
Gregory P. Lewis Senior Vice President and Chief Financial Officer (Principal Financial Officer) | Robert D. Mailloux Vice President and Controller (Principal Accounting Officer) |
*By: | /s/ Gregory P. Lewis | |||||||||||||
(Gregory P. Lewis Attorney-in-fact) |
Page(s) | ||||||||||||||
ITEM 1 | ||||||||||||||
ITEM 1A. | ||||||||||||||
ITEM 1B. | ||||||||||||||
ITEM 2 | ||||||||||||||
ITEM 3 | ||||||||||||||
ITEM 4 | ||||||||||||||
PART II. | ||||||||||||||
ITEM 5 | ||||||||||||||
ITEM 6 | ||||||||||||||
ITEM 7 | ||||||||||||||
ITEM 7A. | ||||||||||||||
ITEM 8 | ||||||||||||||
ITEM 9 | ||||||||||||||
ITEM 9A. | ||||||||||||||
ITEM 9B. | ||||||||||||||
Part III. | ||||||||||||||
ITEM 10 | Directors, Executive Officers and Corporate Governance | |||||||||||||
ITEM 11 | ||||||||||||||
ITEM 12 | ||||||||||||||
ITEM 13 | Certain Relationships and Related Transactions, and Director Independence | |||||||||||||
ITEM 14 | ||||||||||||||
Part IV. | ||||||||||||||
ITEM 15 | ||||||||||||||
ITEM 16 | ||||||||||||||