DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION | 6 Months Ended |
Jun. 30, 2020shares | |
Cover [Abstract] | |
Document type | 10-Q |
Document Quarterly Report | true |
Document period end date | Jun. 30, 2020 |
Document Transition Report | false |
Entity File Number | 1-8974 |
Entity registrant name | Honeywell International Inc |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 22-2640650 |
Entity Address, Address Line One | 300 South Tryon Street |
Entity Address, City or Town | Charlotte, |
Entity Address, State or Province | NC |
Entity Address, Postal Zip Code | 28202 |
City Area Code | 704 |
Local Phone Number | 627-6200 |
Entity Listings [Line Items] | |
Entity current reporting status | Yes |
Entity Interactive Data Current | Yes |
Entity filer category | Large Accelerated Filer |
Document Fiscal Year Focus | 2020 |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity common stock shares outstanding | 701,783,165 |
Document Fiscal Period Focus | Q2 |
Current fiscal year end date | --12-31 |
Amendment flag | false |
Entity central index key | 0000773840 |
Common Stock [Member] | |
Entity Listings [Line Items] | |
Title of 12(b) Security | Common Stock, par value $1 per share* |
Trading Symbol | HON |
NEW YORK STOCK EXCHANGE | NYSE |
1.300% Senior Notes due 2023 [Member] | |
Entity Listings [Line Items] | |
Title of 12(b) Security | 1.300% Senior Notes due 2023 |
Trading Symbol | HON 23A |
NEW YORK STOCK EXCHANGE | NYSE |
0.000% Senior Notes due 2024 [Member] | |
Entity Listings [Line Items] | |
Title of 12(b) Security | 0.000% Senior Notes due 2024 |
Trading Symbol | HON 24A |
NEW YORK STOCK EXCHANGE | NYSE |
2.250% Senior Notes due 2028 [Member] | |
Entity Listings [Line Items] | |
Title of 12(b) Security | 2.250% Senior Notes due 2028 |
Trading Symbol | HON 28A |
NEW YORK STOCK EXCHANGE | NYSE |
0.750% Senior Notes due 2032 [Member] | |
Entity Listings [Line Items] | |
Title of 12(b) Security | 0.750% Senior Notes due 2032 |
Trading Symbol | HON 32 |
NEW YORK STOCK EXCHANGE | NYSE |
CONSOLIDATED STATEMENT OF OPERA
CONSOLIDATED STATEMENT OF OPERATIONS - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Consolidated Statement of Operations | ||||
Net Sales | $ 7,477 | $ 9,243 | $ 15,940 | $ 18,127 |
Costs, expenses and other | ||||
Cost of products and services sold | 5,276 | 6,094 | 10,810 | 11,973 |
Selling, general and administrative expenses | 1,183 | 1,387 | 2,421 | 2,750 |
Other (income) expense | (291) | (305) | (608) | (590) |
Interest and other financial charges | 90 | 85 | 163 | 170 |
Cost, operating and non-operating expenses | 6,258 | 7,261 | 12,786 | 14,303 |
Income before taxes | 1,219 | 1,982 | 3,154 | 3,824 |
Tax expense (benefit) | 120 | 426 | 449 | 832 |
Net income | 1,099 | 1,556 | 2,705 | 2,992 |
Less: Net income attributable to the noncontrolling interest | 18 | 15 | 43 | 35 |
Net income attributable to Honeywell | $ 1,081 | $ 1,541 | $ 2,662 | $ 2,957 |
Earnings per share of common stock - basic (in dollars per share) | $ 1.54 | $ 2.13 | $ 3.77 | $ 4.07 |
Earnings per share of common stock - assuming dilution (in dollars per share) | $ 1.53 | $ 2.10 | $ 3.74 | $ 4.02 |
Products [Member] | ||||
Consolidated Statement of Operations | ||||
Net Sales | $ 5,743 | $ 6,990 | $ 12,048 | $ 13,703 |
Costs, expenses and other | ||||
Cost of products and services sold | 4,163 | 4,848 | 8,537 | 9,470 |
Services [Member] | ||||
Consolidated Statement of Operations | ||||
Net Sales | 1,734 | 2,253 | 3,892 | 4,424 |
Costs, expenses and other | ||||
Cost of products and services sold | $ 1,113 | $ 1,246 | $ 2,273 | $ 2,503 |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 1,099 | $ 1,556 | $ 2,705 | $ 2,992 |
Other comprehensive income (loss), net of tax | ||||
Foreign exchange translation adjustment | 121 | (191) | (155) | 14 |
Prior service (credit) cost recognized | (20) | (20) | (40) | (39) |
Pension and other postretirement benefits adjustments | (20) | (20) | (40) | (39) |
Cash flow hedges recognized in other comprehensive income (loss) | (91) | 10 | 104 | 48 |
Less: Reclassification adjustment for gains (losses) included in net income | (33) | 7 | 22 | 39 |
Changes in fair value of effective cash flow hedges | (58) | 3 | 82 | 9 |
Other comprehensive income (loss), net of tax | 43 | (208) | (113) | (16) |
Comprehensive income | 1,142 | 1,348 | 2,592 | 2,976 |
Less: Comprehensive income attributable to the noncontrolling interest | 21 | 13 | 39 | 37 |
Comprehensive income attributable to Honeywell | $ 1,121 | $ 1,335 | $ 2,553 | $ 2,939 |
CONSOLIDATED BALANCE SHEET
CONSOLIDATED BALANCE SHEET - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 13,778 | $ 9,067 |
Short-term Investments | 1,349 | 1,349 |
Accounts receivable - net | 6,717 | 7,493 |
Inventories | 4,753 | 4,421 |
Other current assets | 1,724 | 1,973 |
Total current assets | 28,321 | 24,303 |
Investments and long-term receivables | 626 | 588 |
Property, plant and equipment - net | 5,327 | 5,325 |
Goodwill | 15,518 | 15,563 |
Other intangible assets - net | 3,551 | 3,734 |
Insurance recoveries for asbestos related liabilities | 379 | 392 |
Deferred income taxes | 106 | 86 |
Other assets | 9,776 | 8,688 |
Total assets | 63,604 | 58,679 |
Current liabilities: | ||
Accounts payable | 5,366 | 5,730 |
Commercial paper and other short-term borrowings | 3,531 | 3,516 |
Current maturities of long-term debt | 967 | 1,376 |
Accrued liabilities | 7,477 | 7,476 |
Total current liabilities | 17,341 | 18,098 |
Long-term debt | 17,591 | 11,110 |
Deferred income taxes | 1,461 | 1,670 |
Postretirement benefit obligations other than pensions | 317 | 326 |
Asbestos related liabilities | 1,894 | 1,996 |
Other liabilities | 6,627 | 6,766 |
Redeemable noncontrolling interest | 7 | 7 |
SHAREOWNERS' EQUITY | ||
Capital - common stock issued | 958 | 958 |
Capital - additional paid in capital | 7,104 | 6,876 |
Common stock held in treasury, at cost | (25,685) | (23,836) |
Accumulated other comprehensive loss | (3,310) | (3,197) |
Retained earnings | 39,080 | 37,693 |
Total Honeywell shareowners' equity | 18,147 | 18,494 |
Noncontrolling interest | 219 | 212 |
Total shareowners' equity | 18,366 | 18,706 |
Total liabilities, redeemable noncontrolling interest, and shareowners' equity | $ 63,604 | $ 58,679 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 2,705 | $ 2,992 |
Less: Net income attributable to the noncontrolling interest | 43 | 35 |
Net income attributable to Honeywell | 2,662 | 2,957 |
Adjustments to reconcile net income attributable to Honeywell to net cash provided by operating activities: | ||
Depreciation | 314 | 335 |
Amortization | 179 | 221 |
Repositioning and other charges | 342 | 210 |
Net payments for repositioning and other charges | (309) | (85) |
Pension and other postretirement income | (423) | (322) |
Pension and other postretirement benefit payments | (23) | (45) |
Stock compensation expense | 78 | 75 |
Deferred income taxes | (277) | 44 |
Other | (285) | 5 |
Changes in assets and liabilities, net of the effects of acquisitions and divestitures: | ||
Accounts receivable | 776 | 98 |
Inventories | (331) | (273) |
Other current assets | 106 | (239) |
Accounts payable | (364) | (8) |
Accrued liabilities | (26) | (161) |
Net cash provided by (used for) operating activities | 2,419 | 2,812 |
Cash flows from investing activities: | ||
Expenditures for property, plant and equipment | (366) | (312) |
Proceeds from disposals of property, plant and equipment | 7 | 10 |
Increase in investments | (1,671) | (2,274) |
Decrease in investments | 1,589 | 2,163 |
Receipts (payments) from settlements of derivative contracts | 83 | 70 |
Net cash provided by (used for) investing activities | (358) | (343) |
Cash flows from financing activities: | ||
Proceeds from issuance of commercial paper and other short-term borrowings | 7,165 | 7,114 |
Payments of commercial paper and other short-term borrowings | (7,094) | (7,115) |
Proceeds from issuance of common stock | 97 | 378 |
Proceeds from issuance of long-term debt | 7,101 | 29 |
Payments of long-term debt | (1,218) | (84) |
Repurchases of common stock | (1,985) | (2,650) |
Cash dividends paid | (1,285) | (1,203) |
Other | (40) | (32) |
Net cash provided by (used for) financing activities | 2,741 | (3,563) |
Effect of foreign exchange rate changes on cash and cash equivalents | (91) | 32 |
Net increase (decrease) in cash and cash equivalents | 4,711 | (1,062) |
Cash and cash equivalents at beginning of period | 9,067 | 9,287 |
Cash and cash equivalents at end of period | $ 13,778 | $ 8,225 |
CONSOLIDATED STATEMENT OF SHARE
CONSOLIDATED STATEMENT OF SHAREOWNERS EQUITY - USD ($) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Noncontrolling Interest [Member] |
Balance at beginning of period at Dec. 31, 2018 | $ 6,452,000,000 | $ (19,771,000,000) | $ 33,978,000,000 | $ (3,437,000,000) | $ 178,000,000 | ||
Issued for employee savings and option plans | 253,000,000 | $ 265,000,000 | |||||
Stock Issued During Period Shares For Employee Savings And Option Plans | 6,100,000 | ||||||
Stock-based compensation expense | 75,000,000 | ||||||
Treasury Stock, Shares beginning balance at Dec. 31, 2018 | (228,000,000) | ||||||
Reacquired stock or repurchases of common stock | $ (2,650,000,000) | ||||||
Reacquired stock or repurchases of common stock, shares | (16,200,000) | ||||||
Treasury Stock, Shares ending balance at Jun. 30, 2019 | (238,100,000) | ||||||
Net income attributable to Honeywell | $ 2,957,000,000 | 2,957,000,000 | |||||
Acquisitions, divestitures, and other | 0 | ||||||
Dividends on common stock | (1,194,000,000) | ||||||
Foreign exchange translation adjustment | 14,000,000 | 14,000,000 | 2,000,000 | ||||
Pension and other postretirement benefits adjustments | (39,000,000) | (39,000,000) | |||||
Changes in fair value of cash flow hedges | 9,000,000 | 9,000,000 | |||||
Net Income attributable to noncontrolling interest | $ 35,000,000 | 35,000,000 | |||||
Dividends Paid | (25,000,000) | ||||||
Cash dividends per share of common stock | $ 1.640 | ||||||
Balance at end of period at Jun. 30, 2019 | $ 18,060,000,000 | $ 958,000,000 | 6,780,000,000 | $ (22,156,000,000) | 35,741,000,000 | (3,453,000,000) | 190,000,000 |
Common Stock, Shares, Issued, Ending Balance at Jun. 30, 2019 | 957,600,000 | 957,600,000 | |||||
Balance at beginning of period at Mar. 31, 2019 | 6,652,000,000 | (20,392,000,000) | 34,794,000,000 | (3,246,000,000) | 189,000,000 | ||
Issued for employee savings and option plans | 94,000,000 | $ 136,000,000 | |||||
Stock Issued During Period Shares For Employee Savings And Option Plans | 2,900,000 | ||||||
Stock-based compensation expense | 34,000,000 | ||||||
Treasury Stock, Shares beginning balance at Mar. 31, 2019 | (229,900,000) | ||||||
Reacquired stock or repurchases of common stock | $ (1,900,000,000) | ||||||
Reacquired stock or repurchases of common stock, shares | (11,100,000) | ||||||
Treasury Stock, Shares ending balance at Jun. 30, 2019 | (238,100,000) | ||||||
Net income attributable to Honeywell | $ 1,541,000,000 | 1,541,000,000 | |||||
Acquisitions, divestitures, and other | 0 | ||||||
Dividends on common stock | (594,000,000) | ||||||
Foreign exchange translation adjustment | (191,000,000) | (191,000,000) | (2,000,000) | ||||
Pension and other postretirement benefits adjustments | (20,000,000) | (19,000,000) | |||||
Changes in fair value of cash flow hedges | 3,000,000 | 3,000,000 | |||||
Net Income attributable to noncontrolling interest | $ 15,000,000 | 15,000,000 | |||||
Dividends Paid | (12,000,000) | ||||||
Cash dividends per share of common stock | $ 0.820 | ||||||
Balance at end of period at Jun. 30, 2019 | $ 18,060,000,000 | $ 958,000,000 | 6,780,000,000 | $ (22,156,000,000) | 35,741,000,000 | (3,453,000,000) | 190,000,000 |
Common Stock, Shares, Issued, Ending Balance at Jun. 30, 2019 | 957,600,000 | 957,600,000 | |||||
Shares outstanding | 719,500,000 | ||||||
Balance at beginning of period at Dec. 31, 2019 | $ 18,706,000,000 | 6,876,000,000 | (23,836,000,000) | 37,693,000,000 | (3,197,000,000) | 212,000,000 | |
Issued for employee savings and option plans | 150,000,000 | $ 136,000,000 | |||||
Stock Issued During Period Shares For Employee Savings And Option Plans | 2,800,000 | ||||||
Stock-based compensation expense | 78,000,000 | ||||||
Treasury Stock, Shares beginning balance at Dec. 31, 2019 | (246,500,000) | ||||||
Reacquired stock or repurchases of common stock | $ (1,985,000,000) | ||||||
Reacquired stock or repurchases of common stock, shares | (12,100,000) | ||||||
Treasury Stock, Shares ending balance at Jun. 30, 2020 | (255,800,000) | ||||||
Net income attributable to Honeywell | 2,662,000,000 | 2,662,000,000 | |||||
Acquisitions, divestitures, and other | (6,000,000) | ||||||
Dividends on common stock | (1,275,000,000) | ||||||
Foreign exchange translation adjustment | (155,000,000) | (155,000,000) | (4,000,000) | ||||
Pension and other postretirement benefits adjustments | (40,000,000) | (40,000,000) | |||||
Changes in fair value of cash flow hedges | 82,000,000 | 82,000,000 | |||||
Net Income attributable to noncontrolling interest | $ 43,000,000 | 43,000,000 | |||||
Dividends Paid | (26,000,000) | ||||||
Cash dividends per share of common stock | $ 1.800 | ||||||
Balance at end of period at Jun. 30, 2020 | $ 18,366,000,000 | $ 958,000,000 | 7,104,000,000 | $ (25,685,000,000) | 39,080,000,000 | (3,310,000,000) | 219,000,000 |
Common Stock, Shares, Issued, Ending Balance at Jun. 30, 2020 | 957,600,000 | 957,600,000 | |||||
Balance at beginning of period at Mar. 31, 2020 | 7,047,000,000 | (25,643,000,000) | 38,635,000,000 | (3,353,000,000) | 221,000,000 | ||
Issued for employee savings and option plans | 23,000,000 | $ 20,000,000 | |||||
Stock Issued During Period Shares For Employee Savings And Option Plans | 400,000 | ||||||
Stock-based compensation expense | 34,000,000 | ||||||
Treasury Stock, Shares beginning balance at Mar. 31, 2020 | (255,800,000) | ||||||
Reacquired stock or repurchases of common stock | $ (62,000,000) | ||||||
Reacquired stock or repurchases of common stock, shares | (400,000) | ||||||
Treasury Stock, Shares ending balance at Jun. 30, 2020 | (255,800,000) | ||||||
Net income attributable to Honeywell | $ 1,081,000,000 | 1,081,000,000 | |||||
Acquisitions, divestitures, and other | 0 | ||||||
Dividends on common stock | (636,000,000) | ||||||
Foreign exchange translation adjustment | 121,000,000 | 121,000,000 | 3,000,000 | ||||
Pension and other postretirement benefits adjustments | (20,000,000) | (20,000,000) | |||||
Changes in fair value of cash flow hedges | (58,000,000) | (58,000,000) | |||||
Net Income attributable to noncontrolling interest | $ 18,000,000 | 18,000,000 | |||||
Dividends Paid | (23,000,000) | ||||||
Cash dividends per share of common stock | $ 0.900 | ||||||
Balance at end of period at Jun. 30, 2020 | $ 18,366,000,000 | $ 958,000,000 | $ 7,104,000,000 | $ (25,685,000,000) | $ 39,080,000,000 | $ (3,310,000,000) | $ 219,000,000 |
Common Stock, Shares, Issued, Ending Balance at Jun. 30, 2020 | 957,600,000 | 957,600,000 | |||||
Shares outstanding | 701,800,000 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation [Text Block] | Note 1. Basis of Presentation In the opinion of management, the accompanying unaudited Consolidated Financial Statements reflect all adjustments, consisting only of normal recurring adjustments, necessary to present fairly the financial position of Honeywell International Inc. and its consolidated subsidiaries (“Honeywell” or “the Company”) at June 30, 2020 and December 31, 2019, the cash flows for the six months ended June 30, 2020 and June 30, 2019 and the results of operations for the three and six months ended June 30, 2020 and June 30, 2019. The results of operations for the three and six months ended June 30, 2020 and cash flows for the six months ended June 30, 2020 should not necessarily be taken as indicative of the entire year. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies [Text Block] | Note 2. Summary of Significant Accounting Policies The accounting policies of the Company are set forth in Note 1 to Consolidated Financial Statements contained in the Company’s 2019 Annual Report on Form 10-K. We include herein certain updates to those policies. Recent Accounting Pronouncements —The Company considers the applicability and impact of all Accounting Standards Updates (ASUs) issued by the Financial Accounting Standards Board (FASB). ASUs not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on our consolidated results of operations, financial position and cash flows (Consolidated Financial Statements). In December 2019, the FASB issued an accounting standard update to simplify the accounting for income taxes. The standard's amendments include changes in various subtopics of accounting for income taxes including, but not limited to, accounting for "hybrid" tax regimes, tax basis step-up in goodwill obtained in a transaction that is not a business combination, intraperiod tax allocation exception to incremental approach, ownership changes in investments, interim-period accounting for enacted changes in tax law, and year-to-date loss limitation in interim-period tax accounting. The guidance is effective for fiscal years beginning after December 15, 2020 with early adoption permitted, including the interim periods within those years. We are currently evaluating impacts of these amendments on our Consolidated Financial Statements, and related notes to the Financial Statements. We do not expect the adoption of this standard to have a material impact on our Consolidated Financial Statements. In June 2016, the FASB issued an accounting standard that requires companies to utilize an impairment model (current expected credit loss, or CECL) for most financial assets measured at amortized cost and certain other financial instruments, which include, but are not limited to, trade and other receivables. This accounting standard replaced the incurred loss model with a model that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to estimate those losses. Effective January 1, 2020, the Company adopted this standard. The adoption of this standard did not have a material impact on our Consolidated Financial Statements. |
REPOSITIONING AND OTHER CHARGES
REPOSITIONING AND OTHER CHARGES | 6 Months Ended |
Jun. 30, 2020 | |
Restructuring and Related Activities [Abstract] | |
Repositioning and Other Charges | Note 3. Repositioning and Other Charges A summary of repositioning and other charges follows: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Severance $ 254 $ 75 $ 320 $ 106 Asset impairments 4 — 6 11 Exit costs 15 11 30 29 Reserve adjustments (18) (2) (31) (4) Total net repositioning charge 255 84 325 142 Asbestos related litigation charges, net of insurance and reimbursements 9 6 20 17 Probable and reasonably estimable environmental liabilities, net of reimbursements 6 39 14 53 Other 10 (3) (17) (2) Total net repositioning and other charges $ 280 $ 126 $ 342 $ 210 The following table summarizes the pretax distribution of total net repositioning and other charges by classification: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Cost of products and services sold $ 175 $ 74 $ 195 $ 129 Selling, general and administrative expenses 105 52 147 81 $ 280 $ 126 $ 342 $ 210 The following table summarizes the pretax impact of total net repositioning and other charges by segment: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Aerospace $ 107 $ 4 $ 118 $ 20 Honeywell Building Technologies 33 — 58 8 Performance Materials and Technologies 84 34 105 33 Safety and Productivity Solutions 11 43 17 48 Corporate 45 45 44 101 $ 280 $ 126 $ 342 $ 210 In the three months ended June 30, 2020, we recognized gross repositioning charges totaling $273 million including severance costs of $254 million related to workforce reductions of 7,805 manufacturing and administrative positions across all of our segments, with a majority of the workforce reductions in Aerospace and Performance Materials and Technologies. The workforce reductions primarily related to the Company aligning its cost structure with the current and anticipated slowdown in demand for many of our products and services due to the global recession, and our ongoing productivity and functional transformation initiatives. In the three months ended June 30, 2019, we recognized gross repositioning charges totaling $86 million including severance costs of $75 million related to workforce reductions of 1,266 manufacturing and administrative positions mainly in Performance Materials and Technologies and Safety and Productivity Solutions. The workforce reductions related to our productivity and ongoing functional transformation initiatives. In the six months ended June 30, 2020, we recognized gross repositioning charges totaling $356 million including severance costs of $320 million related to workforce reductions of 9,929 manufacturing and administrative positions across our segments, with a majority of the reductions in Aerospace and Performance Materials and Technologies. The workforce reductions primarily related to the Company aligning its cost structure with the current and anticipated slowdown in demand for many of our products and services due to the global recession, and our ongoing productivity and functional transformation initiatives. Also, $31 million of previously established reserves, primarily for severance, were returned to income mainly as a result of higher attrition than anticipated in prior severance programs resulting in lower severance payments. In the six months ended June 30, 2019, we recognized gross repositioning charges totaling $146 million including severance costs of $106 million related to workforce reductions of 2,313 manufacturing and administrative positions across all segments. The workforce reductions related to our productivity and ongoing functional transformation initiatives and to site transitions in Aerospace to more cost-effective locations. The following table summarizes the status of our total repositioning reserves: Severance Asset Exit Total December 31, 2019 $ 555 $ — $ 96 $ 651 Charges 320 6 30 356 Usage - cash (135) — (37) (172) Usage - noncash — (6) — (6) Foreign currency translation 4 — — 4 Adjustments (30) — (1) (31) June 30, 2020 $ 714 $ — $ 88 $ 802 Certain repositioning projects will recognize exit costs in future periods when the actual liability is incurred. Such exit costs incurred in the six months ended June 30, 2020 and 2019 were $19 million and $11 million, respectively. |
OTHER (INCOME) EXPENSE
OTHER (INCOME) EXPENSE | 6 Months Ended |
Jun. 30, 2020 | |
Other Income and Expenses [Abstract] | |
Other (Income) expense [Text Block] | Note 4. Other (Income) Expense Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Interest income $ (22) $ (63) $ (66) $ (130) Pension ongoing income – non-service (236) (185) (473) (369) Other postretirement income – non-service (14) (11) (27) (23) Equity income of affiliated companies (15) (11) (27) (20) Loss (gain) on sale of non-strategic business and assets — (1) — (1) Foreign exchange (3) (43) (15) (54) Other (net) (1) 9 — 7 $ (291) $ (305) $ (608) $ (590) |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Note 5. Income Taxes The effective tax rate was lower than the U.S. federal statutory rate of 21% and decreased during 2020 compared to 2019 primarily due to the favorable resolution of a foreign tax matter related to the previously completed spin-off transactions, tax law changes in India, and the resolution of certain U.S. tax matters. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 6. Earnings Per Share Three Months Ended June 30, Six Months Ended June 30, Basic 2020 2019 2020 2019 Net income attributable to Honeywell $ 1,081 $ 1,541 $ 2,662 $ 2,957 Weighted average shares outstanding 702.3 723.2 705.9 726.4 Earnings per share of common stock $ 1.54 $ 2.13 $ 3.77 $ 4.07 Three Months Ended June 30, Six Months Ended June 30, Assuming Dilution 2020 2019 2020 2019 Net income attributable to Honeywell $ 1,081 $ 1,541 $ 2,662 $ 2,957 Average Shares Weighted average shares outstanding 702.3 723.2 705.9 726.4 Dilutive securities issuable - stock plans 5.8 9.8 6.7 9.5 Total weighted average shares outstanding 708.1 733.0 712.6 735.9 Earnings per share of common stock $ 1.53 $ 2.10 $ 3.74 $ 4.02 The diluted earnings per share calculations exclude the effect of stock options when the options’ assumed proceeds exceed the average market price of the common shares during the period. For the three and six months ended June 30, 2020, the weighted average number of stock options excluded from the computations were 7.8 million and 6.1 million. For the three and six months ended June 30, 2019, the weighted average number of stock options excluded from the computations were 3.0 million and 3.0 million. These stock options were outstanding at the end of each of the respective periods. As of June 30, 2020 and 2019, total shares outstanding were 701.8 million and 719.5 million and as of June 30, 2020 and 2019, total shares issued were 957.6 million. |
REVENUE RECOGNITION AND CONTRAC
REVENUE RECOGNITION AND CONTRACTS WITH CUSTOMERS | 6 Months Ended |
Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | Note 7. Revenue Recognition and Contracts with Customers Honeywell has a comprehensive offering of products and services, including software and technologies, that are sold to a variety of customers in multiple end markets. See the following table and related discussions by operating segment for details. Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Aerospace Commercial Aviation Original Equipment $ 449 $ 734 $ 1,121 $ 1,493 Commercial Aviation Aftermarket 653 1,421 2,033 2,782 Defense and Space 1,441 1,353 2,750 2,574 2,543 3,508 5,904 6,849 Honeywell Building Technologies Products 664 843 $ 1,412 $ 1,653 Building Solutions 513 607 1,046 1,186 1,177 1,450 2,458 2,839 Performance Materials and Technologies UOP 517 703 1,111 1,313 Process Solutions 1,093 1,289 2,244 2,535 Specialty Products 272 265 525 534 Fluorine Products 336 478 735 925 2,218 2,735 4,615 5,307 Safety and Productivity Solutions Safety and Retail 511 557 1,013 1,095 Productivity Products 227 267 478 538 Warehouse and Workflow Solutions 595 501 1,089 1,060 Sensing & Internet-of-Things (IoT) 206 225 383 439 1,539 1,550 2,963 3,132 Net sales $ 7,477 $ 9,243 $ 15,940 $ 18,127 Aerospace – A global supplier of products, software and services for aircrafts that it sells to original equipment manufacturers (OEM) and other customers in a variety of end markets including: air transport, regional, business and general aviation aircraft, airlines, aircraft operators and defense and space contractors. Aerospace products and services include auxiliary power units, propulsion engines, environmental control systems, integrated avionics, wireless connectivity services, electric power systems, engine controls, flight safety, communications, navigation hardware, data and software applications, radar and surveillance systems, aircraft lighting, management and technical services, advanced systems and instruments, satellite and space components, aircraft wheels and brakes, repair and overhaul services and thermal systems. Aerospace also provides spare parts, repair, overhaul and maintenance services (principally to aircraft operators) for the aftermarket. Honeywell Forge solutions are designed to identify and resolve problems faster, making fleet management and flight operations more efficient. Honeywell Building Technologies – A global provider of products, software, solutions and technologies that enable building owners and occupants to ensure their facilities are safe, energy efficient, sustainable and productive. Honeywell Building Technologies products and services include advanced software applications for building control and optimization; sensors, switches, control systems and instruments for energy management; access control; video surveillance; fire products; remote patient monitoring systems; and installation, maintenance and upgrades of systems. Honeywell Forge solutions are designed to digitally manage buildings to use space intelligently, cut operating expenses and reduce maintenance. Performance Materials and Technologies – A global provider in developing and manufacturing high-quality performance chemicals and materials, process technologies and automation solutions, including Honeywell Forge connected solutions. The segment comprises Process Solutions, UOP and Advanced Materials. Process Solutions provides automation control, instrumentation, advanced software and related services for the oil and gas, refining, pulp and paper, industrial power generation, chemicals and petrochemicals, biofuels, life sciences, and metals, minerals and mining industries. Through its smart energy products, Process Solutions enables utilities and distribution companies to deploy advanced capabilities to improve operations, reliability and environmental sustainability. UOP provides process technology, products, including catalysts and adsorbents, equipment, and consulting services that enable customers to efficiently produce gasoline, diesel, jet fuel, petrochemicals and renewable fuels for the petroleum refining, gas processing, petrochemical, and other industries. Advanced Materials manufactures a wide variety of high-performance products, including materials used to manufacture end products such as bullet-resistant armor, nylon, computer chips and pharmaceutical packaging, and provides reduced and low global-warming-potential (GWP) materials based on hydrofluoro-olefin technology. In the industrial environment, Honeywell Forge solutions enable integration and connectivity to provide a holistic view of operations and turn data into clear actions to maximize productivity and efficiency. Honeywell Forge's cybersecurity capabilities help identify risks and act on cyber-related incidents, together enabling improved operations and protecting processes, people and assets. Safety and Productivity Solutions – A global provider of products and software that improve productivity, workplace safety and asset performance to customers around the globe. Safety products include personal protection equipment, apparel, gear, and footwear designed for work, play and outdoor activities; gas detection technology; and cloud-based notification and emergency messaging. Productivity Solutions products and services include mobile devices and software for computing, data collection and thermal printing; supply chain and warehouse automation equipment, software and solutions; custom-engineered sensors, switches and controls for sensing and productivity solutions; and software-based data and asset management productivity solutions. Honeywell Forge solutions digitally automate processes to improve efficiency while reducing downtime and safety costs. For a summary by disaggregated product and services sales for each segment, refer to Note 14 Segment Financial Data of Notes to Consolidated Financial Statements. The Company recognizes revenue arising from performance obligations outlined in contracts with its customers that are satisfied at a point in time and over time. The disaggregation of our revenue based off timing of recognition is as follows: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Products, transferred point in time 61 % 61 % 61 % 61 % Products, transferred over time 16 14 15 15 Net product sales 77 75 76 76 Services, transferred point in time 7 8 8 8 Services, transferred over time 16 17 16 16 Net service sales 23 25 24 24 Net sales 100 % 100 % 100 % 100 % Contract Balances Progress on satisfying performance obligations under contracts with customers and the related billings and cash collections are recorded on the Consolidated Balance Sheet in Accounts receivable - net and Other assets (unbilled receivables (contract assets) and billed receivables) and Accrued liabilities and Other liabilities (customer advances and deposits (contract liabilities)). Unbilled receivables (contract assets) arise when the timing of cash collected from customers differs from the timing of revenue recognition, such as when contract provisions require specific milestones to be met before a customer can be billed. Those assets are recognized when the revenue associated with the contract is recognized prior to billing and derecognized when billed in accordance with the terms of the contract. Contract liabilities are recorded when customers remit contractual cash payments in advance of us satisfying performance obligations under contractual arrangements, including those with performance obligations to be satisfied over a period of time. Contract liabilities are derecognized when revenue is recorded, either when a milestone is met triggering the contractual right to bill or when the performance obligation is satisfied. Contract balances are classified as assets or liabilities on a contract-by-contract basis at the end of each reporting period. The following table summarizes the Company's contract assets and liabilities balances: 2020 2019 Contract assets - January 1 $ 1,602 $ 1,548 Contract assets - June 30 1,760 1,777 Change in contract assets - increase (decrease) $ 158 $ 229 Contract liabilities - January 1 $ (3,501) $ (3,378) Contract liabilities - June 30 (3,574) (3,237) Change in contract liabilities - decrease (increase) $ (73) $ 141 Net change $ 85 $ 370 The net change for the six months ended June 30, 2020 and June 30, 2019 was primarily driven by the recognition of revenue as performance obligations were satisfied prior to billing exceeding receipt of advance payments from customers. For the three and six months ended June 30, 2020, we recognized revenue of $315 million and $1,203 million that was previously included in the beginning balance of contract liabilities. For the three and six months ended June 30, 2019, we recognized revenue of $260 million and $980 million that was previously included in the beginning balance of contract liabilities. When contracts are modified to account for changes in contract specifications and requirements, we consider whether the modification either creates new or changes the existing enforceable rights and obligations. Contract modifications that are for goods or services that are not distinct from the existing contract, due to the significant integration with the original good or service provided, are accounted for as if they were part of that existing contract. The effect of a contract modification on the transaction price and our measure of progress for the performance obligation to which it relates, is recognized as an adjustment to revenue (either as an increase in or a reduction of revenue) on a cumulative catch-up basis. When the modifications include additional performance obligations that are distinct and at relative stand-alone selling price, they are accounted for as a new contract and performance obligation, which are recognized prospectively. Performance Obligations A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is defined as the unit of account. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. When our contracts with customers require highly complex integration or manufacturing services that are not separately identifiable from other promises in the contracts and, therefore, not distinct, then the entire contract is accounted for as a single performance obligation. In situations when our contract includes distinct goods or services that are substantially the same and have the same pattern of transfer to the customer over time, they are recognized as a series of distinct goods or services. For any contracts with multiple performance obligations, we allocate the contract’s transaction price to each performance obligation based on the estimated relative standalone selling price of each distinct good or service in the contract. For product sales, each product sold to a customer typically represents a distinct performance obligation. In such cases, the observable standalone sales are used to determine the standalone selling price. Performance obligations are satisfied as of a point in time or over time. Performance obligations are supported by contracts with customers, providing a framework for the nature of the distinct goods, services or bundle of goods and services. The timing of satisfying the performance obligation is typically indicated by the terms of the contract. The following table outlines the Company's remaining performance obligations disaggregated by segment: June 30, 2020 Aerospace $ 10,198 Honeywell Building Technologies 5,421 Performance Materials and Technologies 6,565 Safety and Productivity Solutions 3,535 $ 25,719 Performance obligations recognized as of June 30, 2020 will be satisfied over the course of future periods. Our disclosure of the timing for satisfying the performance obligation is based on the requirements of contracts with customers. However, from time to time, these contracts may be subject to modifications, impacting the timing of satisfying the performance obligations. Performance obligations expected to be satisfied within one year and greater than one year are 56% and 44%, respectively. The timing of satisfaction of the Company's performance obligations does not significantly vary from the typical timing of payment. Typical payment terms of our fixed-price over time contracts include progress payments based on specified events or milestones, or based on project progress. For some contracts we may be entitled to receive an advance payment. The Company has applied the practical expedient for certain revenue streams to exclude the value of remaining performance obligations for (i) contracts with an original expected term of one year or less or (ii) contracts for which we recognize revenue in proportion to the amount we have the right to invoice for services performed. |
ACCOUNTS RECEIVABLE - NET
ACCOUNTS RECEIVABLE - NET | 6 Months Ended |
Jun. 30, 2020 | |
Receivables [Abstract] | |
Accounts Receivable - Net | Note 8. Accounts Receivable - Net June 30, 2020 December 31, 2019 Trade $ 6,894 $ 7,639 Less - Allowance for doubtful accounts (177) (146) $ 6,717 $ 7,493 |
INVENTORIES
INVENTORIES | 6 Months Ended |
Jun. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 9. Inventories June 30, 2020 December 31, 2019 Raw materials $ 1,113 $ 1,056 Work in process 836 817 Finished products 2,839 2,593 4,788 4,466 Reduction to LIFO cost basis (35) (45) $ 4,753 $ 4,421 |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Lessee, Operating Leases [Text Block] | Note 10. Leases The Company's operating and finance lease portfolio is described in Note 14, Leases of the Notes to the Consolidated Financial Statements in our 2019 Annual Report on Form 10-K. Supplemental cash flow information related to leases was as follows: Six Months Ended June 30, 2020 2019 Net right-of-use assets obtained in exchange for lease obligations: Operating leases 100 26 Finance leases 17 8 Supplemental balance sheet information related to leases was as follows: June 30, 2020 December 31, 2019 Operating leases Other assets $ 714 $ 673 Accrued liabilities 168 171 Other liabilities 592 534 Total operating lease liabilities $ 760 $ 705 Financing leases Property, plant and equipment $ 358 $ 361 Accumulated depreciation (158) (152) Property, plant and equipment - net $ 200 $ 209 Current maturities of long-term debt 61 59 Long-term debt 144 156 Total financing lease liabilities $ 205 $ 215 |
LONG-TERM DEBT AND CREDIT AGREE
LONG-TERM DEBT AND CREDIT AGREEMENTS | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Note 11. Long-term Debt and Credit Agreements June 30, 2020 December 31, 2019 0.65% Euro notes due 2020 — 1,123 4.25% notes due 2021 800 800 1.85% notes due 2021 1,500 1,500 2.15% notes due 2022 600 600 Floating rate notes due 2022 600 600 Term Loan due 2022 3,000 — 1.30% Euro notes due 2023 1,401 1,404 3.35% notes due 2023 300 300 0.00% Euro notes due 2024 560 — 2.30% notes due 2024 750 750 1.35% notes due 2025 1,250 — 2.50% notes due 2026 1,500 1,500 2.25% Euro notes due 2028 841 842 2.70% notes due 2029 750 750 1.95% notes due 2030 1,000 — 0.75% Euro notes due 2032 560 — 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 — 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), 8.0% weighted average maturing at various dates through 2025 357 278 18,558 12,486 Less: current portion (967) (1,376) $ 17,591 $ 11,110 On May 18, 2020, the Company issued $1.25 billion 1.35% Senior Notes due 2025, $1.0 billion 1.95% Senior Notes due 2030, and $750 million 2.80% Senior Notes due 2050 (collectively, the "2020 Notes") to replace $3.0 billion of undrawn commitments under the $6.0 billion delayed draw term loan facility, referenced below. The 2020 Notes are senior unsecured and unsubordinated obligations of Honeywell and rank equally with all of Honeywell's existing and future senior unsecured debt and senior to all of Honeywell's subordinated debt. The offering resulted in gross proceeds of $3.0 billion, offset by $27 million in discount and closing costs related to the offering. On March 26, 2020, the Company entered into a Delayed Draw Term Loan Agreement (the “Term Loan Agreement”) with a syndicate of banks. The Term Loan Agreement provided for a two-year, delayed draw term loan facility in the aggregate principal amount of $6.0 billion. Effective May 22, 2020, the Company permanently reduced the undrawn commitments under the Term Loan Agreement by an aggregate amount of $3.0 billion. On June 24, 2020, the Company fully drew on the remaining $3.0 billion of commitments under the Term Loan Agreement at a variable interest rate equal to the one-month LIBOR plus the applicable margin of 1.25%. The draw resulted in gross proceeds of $3.0 billion offset by $7 million in closing costs related to the borrowing. The amount borrowed under the Term Loan Agreement may not be reborrowed and is required to be repaid no later than March 26, 2022, unless the Term Loan Agreement is terminated earlier pursuant to its terms. Commitments under the Term Loan Agreement can be increased pursuant to the terms of the Term Loan Agreement by an aggregate amount not to exceed $2.0 billion. As of June 30, 2020, there were $3.0 billion of borrowings outstanding under the Term Loan Agreement, and there were no undrawn commitments remaining under the Term Loan Agreement. On March 10, 2020, the Company issued €500 million 0.00% Senior Notes due 2024 and €500 million 0.75% Senior Notes due 2032 (collectively, the "2020 Euro Notes"). The 2020 Euro Notes are senior unsecured and unsubordinated obligations of Honeywell and rank equally with all of Honeywell's existing and future senior unsecured debt and senior to all of Honeywell's subordinated debt. The offering resulted in gross proceeds of $1,136 million, offset by $9 million in discount and closing costs related to the offering. For issuances described above, unless otherwise noted, all debt issuance costs are deferred and recognized as a direct deduction to the related debt liability and are amortized to interest expense over the debt term. On February 21, 2020, the Company paid its 0.65% Euro notes due 2020. On April 10, 2020, the Company entered into a $1.5 billion 364-Day Credit Agreement (the "364-Day Credit Agreement") with a syndicate of banks. This 364-Day Credit Agreement is maintained for general corporate purposes. The 364-Day Credit Agreement replaces the previously reported 364-day credit agreement dated as of April 26, 2019, which was terminated on April 10, 2020. As of June 30, 2020, there are no outstanding borrowings under the 364-Day Credit Agreement. |
FINANCIAL INSTRUMENTS AND FAIR
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASURES | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments and Fair Value Measures | Note 12. Financial Instruments and Fair Value Measures Our credit, market, foreign currency and interest rate risk management policies are described in Note 15, Financial Instruments and Fair Value Measures of Notes to Consolidated Financial Statements in our 2019 Annual Report on Form 10-K. The following table sets forth the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis: June 30, 2020 December 31, 2019 Assets: Foreign currency exchange contracts $ 457 $ 291 Available for sale investments 1,514 1,523 Interest rate swap agreements 244 38 Cross currency swap agreements 52 51 Liabilities: Foreign currency exchange contracts $ 50 $ 21 Interest rate swap agreements — 13 The foreign currency exchange contracts, interest rate swap agreements, and cross currency swap agreements are valued using broker quotations, or market transactions in either the listed or over-the-counter markets. As such, these derivative instruments are classified within level 2. The Company also holds investments in commercial paper, certificates of deposits, and time deposits that are designated as available for sale and are valued using published prices based off observable market data. As such, these investments are classified within level 2. The Company also holds available for sale investments in U.S. government and corporate debt securities valued utilizing published prices based on quoted market pricing, which are classified within level 1. The carrying value of cash and cash equivalents, trade accounts and notes receivables, payables, commercial paper (of which $669 million and $3,513 million was Euro denominated as of June 30, 2020 and December 31, 2019) and short-term borrowings contained in the Consolidated Balance Sheet approximates fair value. The following table sets forth the Company’s financial assets and liabilities that were not carried at fair value: June 30, 2020 December 31, 2019 Carrying Fair Carrying Fair Assets Long-term receivables $ 148 $ 145 $ 129 $ 127 Liabilities Long-term debt and related current maturities $ 18,558 $ 19,837 $ 12,486 $ 13,578 The following table sets forth the amounts on the Consolidated Balance Sheet related to cumulative basis adjustments for fair value hedges: 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 June 30, 2020 December 31, 2019 June 30, 2020 December 31, 2019 Long-term debt $ 4,194 $ 3,975 $ 244 $ 25 The Company determined the fair value of the long-term receivables by utilizing transactions in the listed markets for identical or similar assets. As such, the fair value of these receivables is considered level 2. The Company determined the fair value of the long-term debt and related current maturities utilizing transactions in the listed markets for identical or similar liabilities. As such, the fair value of the long-term debt and related current maturities is considered level 2. Interest rate swap agreements are designated as hedge relationships with gains or losses on the derivative recognized in Interest and other financial charges offsetting the gains and losses on the underlying debt being hedged. For the three and six months ended June 30, 2020, we recognized $14 million and $219 million of gains in earnings on interest rate swap agreements. For the three and six months ended June 30, 2019, we recognized $37 million and $63 million of gains in earnings on interest rate swap agreements. Gains and losses are fully offset by losses and gains on the underlying debt being hedged. The Company economically hedges its exposure to changes in foreign exchange rates principally with forward contracts. These contracts are marked-to-market with the resulting gains and losses recognized in earnings offsetting the gains and losses on the non-functional currency denominated monetary assets and liabilities being hedged. For the three and six months ended June 30, 2020, we recognized $217 million of expense and $67 million of income in Other (income) expense. For the three and six months ended June 30, 2019, we recognized $96 million and $49 million of income in Other (income) expense. As of June 30, 2020, cash collateral received that has not been offset against our derivatives of $420 million was recorded in Accrued liabilities and Other assets. The following tables summarize the location and impact to the Consolidated Statement of Operations related to fair value and cash flow hedging relationships: Three Months Ended June 30, 2020 Revenue Cost of Products Sold SG&A Other (Income) Expense Interest and Other Financial Charges $ 7,477 $ 4,163 $ 1,183 $ (291) $ 90 Gain or (loss) on cash flow hedges: Foreign Currency Exchange Contracts: Amount reclassified from accumulated other comprehensive income into income (1) 3 (3) (42) — Amount excluded from effectiveness testing recognized in earnings using an amortization approach — 4 — 9 — Gain or (loss) on fair value hedges: Interest Rate Swap Agreements: Hedged items — — — — (14) Derivatives designated as hedges — — — — 14 Three Months Ended June 30, 2019 Revenue Cost of Products Sold SG&A Other (Income) Expense Interest and Other Financial Charges $ 9,243 $ 4,848 $ 1,387 $ (305) $ 85 Gain or (loss) on cash flow hedges: Foreign Currency Exchange Contracts: Amount reclassified from accumulated other comprehensive income into income 1 8 1 — — 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 Six Months Ended June 30, 2020 Revenue Cost of Products Sold SG&A Other (Income) Expense Interest and Other Financial Charges $ 15,940 $ 8,537 $ 2,421 (608) $ 163 Gain or (loss) on cash flow hedges: Foreign currency exchange contracts: Amount reclassified from accumulated other comprehensive income into income (1) 30 (3) (2) — Amount excluded from effectiveness testing recognized in earnings using an amortization approach — 8 — 17 — Gain or (loss) on fair value hedges: Interest rate swap agreements: Hedged items — — — — (219) Derivatives designated as hedges — — — — 219 Six Months Ended June 30, 2019 Revenue Cost of Products Sold SG&A Other (Income) Expense Interest and Other Financial Charges $ 18,127 $ 9,470 $ 2,750 $ (590) $ 170 Gain or (loss) on cash flow hedges: Foreign currency exchange contracts: Amount reclassified from accumulated other comprehensive income into income 1 24 1 24 — Amount excluded from effectiveness testing recognized in earnings using an amortization approach — 11 — 18 — Gain or (loss) on fair value hedges: Interest rate swap agreements: Hedged items — — — — (63) Derivatives designated as hedges — — — — 63 The following table summarizes the amounts of gain or (loss) on net investment hedges recognized in Accumulated other comprehensive income (loss): Three Months Ended June 30, Six Months Ended June 30, Derivatives Net Investment Hedging Relationships 2020 2019 2020 2019 Euro-denominated long-term debt $ (62) $ (43) $ 62 $ 26 Euro-denominated commercial paper (15) (44) 55 27 Cross currency swap 7 (8) (19) 5 Foreign currency exchange contracts (102) (2) (18) 5 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 6 Months Ended |
Jun. 30, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Note 13. Accumulated Other Comprehensive Income (Loss) Changes in Accumulated Other Comprehensive Income (Loss) by Component Foreign Pension Changes in Total Balance at December 31, 2019 $ (2,566) $ (675) $ 44 $ (3,197) Other comprehensive income (loss) before reclassifications (148) — 104 (44) Amounts reclassified from accumulated other comprehensive income (7) (40) (22) (69) Net current period other comprehensive income (loss) (155) (40) 82 (113) Balance at June 30, 2020 $ (2,721) $ (715) $ 126 $ (3,310) Foreign Pension Changes in Total Balance at December 31, 2018 $ (2,709) $ (761) $ 33 $ (3,437) Other comprehensive income (loss) before reclassifications 21 — 48 69 Amounts reclassified from accumulated other comprehensive income (7) (39) (39) (85) Net current period other comprehensive income (loss) 14 (39) 9 (16) Balance at June 30, 2019 $ (2,695) $ (800) $ 42 $ (3,453) |
SEGMENT FINANCIAL DATA
SEGMENT FINANCIAL DATA | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Financial Data | Note 14. Segment Financial Data We globally manage our business operations through four reportable operating segments. Segment information is consistent with how management reviews the businesses, makes investing and resource allocation decisions and assesses operating performance. Honeywell’s senior management evaluates segment performance based on segment profit. Each segment’s profit is measured as segment income (loss) before taxes excluding general corporate unallocated expense, interest and other financial charges, stock compensation expense, pension and other postretirement income (expense), repositioning and other charges, and other items within Other (income) expense. Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Net sales Aerospace Products $ 1,633 $ 2,174 $ 3,712 $ 4,249 Services 910 1,334 2,192 2,600 Total 2,543 3,508 5,904 6,849 Honeywell Building Technologies Products 865 1,119 1,835 2,192 Services 312 331 623 647 Total 1,177 1,450 2,458 2,839 Performance Materials and Technologies Products 1,793 2,238 3,707 4,308 Services 425 497 908 999 Total 2,218 2,735 4,615 5,307 Safety and Productivity Solutions Products 1,452 1,459 2,794 2,954 Services 87 91 169 178 Total 1,539 1,550 2,963 3,132 $ 7,477 $ 9,243 $ 15,940 $ 18,127 Segment profit Aerospace $ 528 $ 907 $ 1,465 $ 1,745 Honeywell Building Technologies 250 300 512 571 Performance Materials and Technologies 419 644 931 1,208 Safety and Productivity Solutions 213 191 391 403 Corporate (25) (72) (66) (148) Total segment profit 1,385 1,970 3,233 3,779 Interest and other financial charges (90) (85) (163) (170) Stock compensation expense (a) (34) (34) (78) (75) Pension ongoing income (b) 198 148 396 299 Other postretirement income (b) 14 11 27 23 Repositioning and other charges (c) (280) (126) (342) (210) Other (d) 26 98 81 178 Income before taxes $ 1,219 $ 1,982 $ 3,154 $ 3,824 (a) Amounts included in Selling, general and administrative expenses. (b) Amounts included in Cost of products and services sold and Selling, general and administrative expenses (service costs) and Other income/expense (non-service cost components). |
PENSION BENEFITS
PENSION BENEFITS | 6 Months Ended |
Jun. 30, 2020 | |
Retirement Benefits, Description [Abstract] | |
Pension Benefits | Note 15. Pension Benefits Net periodic pension benefit costs for our significant defined benefit plans include the following components: U.S. Plans Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Service cost $ 24 $ 21 $ 49 $ 42 Interest cost 115 154 230 307 Expected return on plan assets (283) (279) (567) (558) Amortization of prior service (credit) (10) (11) (21) (22) $ (154) $ (115) $ (309) $ (231) Non-U.S. Plans Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Service cost $ 5 $ 6 $ 11 $ 12 Interest cost 26 36 52 72 Expected return on plan assets (81) (83) (165) (167) Amortization of prior service (credit) — — — — $ (50) $ (41) $ (102) $ (83) During the three months ended June 30, 2020, the Company did not purchase any Honeywell shares from the Honeywell U.S. Pension Plan Master Trust. During the six months ended June 30, 2020, the Company repurchased $100 million of outstanding Honeywell shares from the Honeywell U.S. Pension Plan Master Trust. During the three and six months ended June 30, 2019, the Company repurchased $100 million and $200 million of outstanding Honeywell shares from the Honeywell U.S. Pension Plan Master Trust. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 16. Commitments and Contingencies Environmental Matters Our environmental matters are described in Note 20 Commitments and Contingencies of Notes to Consolidated Financial Statements in our 2019 Annual Report on Form 10-K. The following table summarizes information concerning our recorded liabilities for environmental costs: December 31, 2019 $ 709 Accruals for environmental matters deemed probable and reasonably estimable 83 Environmental liability payments (79) Other (4) June 30, 2020 $ 709 Environmental liabilities are included in the following balance sheet accounts: June 30, 2020 December 31, 2019 Accrued liabilities $ 222 $ 222 Other liabilities 487 487 $ 709 $ 709 The Company does not currently possess sufficient information to reasonably estimate the amounts of environmental liabilities to be recorded upon future completion of studies, litigation or settlements, and neither the timing nor the amount of the ultimate costs associated with environmental matters can be determined although they could be material to our consolidated results of operations and operating cash flows in the periods recognized or paid. However, considering our past experience and existing reserves, we do not expect that environmental matters will have a material adverse effect on our consolidated financial position. In conjunction with the Resideo Technologies, Inc. ("Resideo") spin-off, the Company entered into an indemnification and reimbursement agreement with a Resideo subsidiary, pursuant to which Resideo’s subsidiary has an ongoing obligation to make cash payments to Honeywell in amounts equal to 90 percent of Honeywell’s annual net spending for environmental matters at certain sites as defined in the agreement. The amount payable to Honeywell in any given year is subject to a cap of $140 million, and the obligation will continue until the earlier of December 31, 2043, or December 31 of the third consecutive year during which the annual payment obligation is less than $25 million. Reimbursements associated with this agreement are collected from Resideo quarterly and were $35 million in the six months ended June 30, 2020. On April 21, 2020, the Company and Resideo agreed to amend certain agreements, including the indemnification and reimbursement agreement, to among other things extend the payment due dates to July 30, 2020 for both the reimbursement amount of $35 million (originally due on April 30, 2020) and the royalty payments of approximately $7 million (originally due on May 30, 2020 under the Trademark License Agreement). As the Company incurs costs for environmental matters deemed probable and reasonably estimable related to the sites covered by the indemnification and reimbursement agreement, a corresponding receivable from Resideo for 90 percent of such costs is also recorded. This receivable amount recorded in the six months ended June 30, 2020 was $69 million. As of June 30, 2020, Other Current Assets and Other Assets includes $140 million and $479 million representing the short-term and long-term portion of the receivable amount due from Resideo under the indemnification and reimbursement agreement. Asbestos Matters Honeywell is named in asbestos related personal injury claims related to North American Refractories Company (“NARCO”), which was sold in 1986, and Bendix Friction Materials (“Bendix”) business, which was sold in 2014. The following tables summarize information concerning NARCO and Bendix asbestos-related balances: Asbestos-Related Liabilities Bendix NARCO Total December 31, 2019 $ 1,499 $ 858 $ 2,357 Accrual for update to estimated liability 31 10 41 Asbestos related liability payments (100) (42) (142) June 30, 2020 $ 1,430 $ 826 $ 2,256 Insurance Recoveries for Asbestos-Related Liabilities Bendix NARCO Total December 31, 2019 $ 153 $ 281 $ 434 Insurance receipts for asbestos-related liabilities (6) (7) (13) Insurance receivables settlements — — — June 30, 2020 $ 147 $ 274 $ 421 NARCO and Bendix asbestos-related balances are included in the following balance sheet accounts: June 30, 2020 December 31, 2019 Other current assets $ 42 $ 42 Insurance recoveries for asbestos-related liabilities 379 392 $ 421 $ 434 Accrued liabilities $ 362 $ 361 Asbestos-related liabilities 1,894 1,996 $ 2,256 $ 2,357 NARCO Products – Honeywell’s predecessor, Allied Corporation owned NARCO from 1979 to 1986. When the NARCO business was sold, Honeywell’s predecessor entered into a cross-indemnity agreement with NARCO which included an obligation to indemnify the purchaser for asbestos claims. Such claims arise primarily from alleged occupational exposure to asbestos-containing refractory brick and mortar for high-temperature applications. NARCO ceased manufacturing these products in 1980, and the first asbestos claims were filed in the tort system against NARCO in 1983. Claims filings and related costs increased dramatically in the late 1990s through 2001, which led to NARCO filing for bankruptcy in January 2002. Once NARCO filed for bankruptcy, all then current and future NARCO asbestos claims were stayed against both NARCO and Honeywell pending the reorganization of NARCO. Following the bankruptcy filing, in December 2002 Honeywell recorded a total NARCO asbestos liability of $3.2 billion, which was comprised of three components: (i) the estimated liability to settle pre-bankruptcy petition NARCO claims and certain post-petition settlements ($2.2 billion, referred to as “Pre-bankruptcy NARCO Liability”), (ii) the estimated liability related to then unasserted NARCO claims for the period 2004 through 2018 ($950 million, referred to as “NARCO Trust Liability”), and (iii) other NARCO bankruptcy-related obligations totaling $73 million. When the NARCO Trust Liability of $950 million was established in 2002, the methodology for estimating the potential liability was based primarily on: (a) epidemiological projections of the future incidence of disease for the period 2004 through 2018, a fifteen-year period; (b) historical claims rates in the tort system for the five-year period prior to the bankruptcy filing date; and (c) anticipated NARCO Trust payment values set forth in the then current draft of the NARCO Trust Distribution Procedures. The methodology required estimating, by disease, three critical inputs: (i) likely number of claims to be asserted against the NARCO Trust in the future, (ii) percentage of those claims likely to receive payment, and (iii) payment values. The Company utilized outside asbestos liability valuation specialists to support its preparation of the NARCO Trust Liability estimate, which was based on a commonly accepted methodology used by numerous bankruptcy courts addressing 524(g) trusts. In 2002, when the Company first established its initial liability, NARCO asbestos claims resolution shifted from the tort system to an anticipated NARCO Trust framework, where claims would be processed in accordance with established NARCO Trust Distribution Procedures, including strict medical and exposure criteria for a plaintiff to receive compensation. We believed at the time that the NARCO Trust’s claims filing and resolution experience after the NARCO Trust became operational would be significantly different from pre-bankruptcy tort system experience in light of these more rigorous claims processing requirements in the NARCO Trust Distribution Procedures and Honeywell’s active oversight of claims processing and approval. Given these anticipated differences, we believed that a 15-year time period was the appropriate horizon for establishing a probable and reasonably estimable liability for then unasserted NARCO claims as it represented our best estimate of the time period it would take for the NARCO Trust to be approved by the Bankruptcy Court, become fully operational and generate sufficiently reliable claims data (i.e., a data set which is statistically representative) to enable us to update our NARCO Trust Liability. The NARCO Trust Distribution Procedures were finalized in 2006, and the Company updated its NARCO Trust Liability to reflect the final terms and payment values. The original 15-year period (from 2004 through 2018) for unasserted claims did not change as asbestos claims filings continued to be stayed against both Honeywell and NARCO. The 2006 update resulted in a range of the estimated liability for unasserted claims of $743 million to $961 million, and we believed that no amount within this range was a better estimate than any other amount. In accordance with ASC 450 – Contingencies (“ASC 450”), we recorded the low end of the range of $743 million (the "2006 NARCO Trust Liability Estimate") which resulted in a reduction of $207 million in our NARCO Trust Liability. NARCO emerged from bankruptcy on April 30, 2013, at which time a federally authorized 524(g) trust was established for the evaluation and resolution of all existing and future NARCO asbestos claims. Both Honeywell and NARCO are protected by a permanent channeling injunction barring all present and future individual actions in state or federal courts and requiring all asbestos-related claims based on exposure to NARCO asbestos-containing products to be made against the NARCO Trust. The NARCO Trust Agreement and the NARCO Trust Distribution Procedures are the principal documents setting forth the structure of the NARCO Trust. These documents establish Honeywell’s evergreen funding obligations. Honeywell is obligated to fund NARCO asbestos claims submitted to the NARCO Trust which qualify for payment under the Trust Distribution Procedures (Annual Contribution Claims), subject to an annual cap of $145 million. However, the initial $100 million of claims processed through the NARCO Trust (the "Initial Claims Amount") will not count against the annual cap and any unused portion of the Initial Claims Amount will roll over to subsequent years until fully utilized. These documents also establish the material operating rules for the NARCO Trust, including Honeywell audit rights and the criteria claimants must meet to have a valid claim paid. These claims payment criteria include providing the NARCO Trust with adequate medical evidence of the claimant’s asbestos-related condition and credible evidence of exposure to a specific NARCO asbestos-containing product. Further, the NARCO Trust is eligible to receive cash dividends from Harbison-Walker International Inc (“HWI”), the reorganized and renamed entity that emerged, fully operational, from the NARCO bankruptcy. The NARCO Trust is required to use any funding received from HWI to pay Annual Contribution Claims until those funds are exhausted. It is only at this point that Honeywell’s funding obligation to the Trust is triggered. Thus, there is an unrelated primary source for funding that affects Honeywell’s funding of the NARCO Trust Liability. Once operational, the NARCO Trust began to receive, process and pay claims that had been previously stayed pending the Trust becoming operational. As the NARCO Trust began to pay claims in 2014, we began to assert our on-going audit rights to review and monitor the claims processor’s adherence to the established requirements of the NARCO Trust Distribution Procedures. While doing so, we identified several issues with the way the Trust was implementing the NARCO Trust Distribution Procedures. In 2015, Honeywell filed suit against the NARCO Trust in Bankruptcy Court alleging breach of certain provisions of the NARCO Trust Agreement and NARCO Trust Distribution Procedures. The parties agreed to dismiss the proceeding without prejudice pursuant to an 18-month Standstill Agreement, which expired in October 2017. Notwithstanding its expiration, claims processing continues, and Honeywell continues to negotiate and attempt to resolve remaining disputed issues (that is, instances where Honeywell believes the NARCO Trust is not processing claims in accordance with established NARCO Trust Distribution Procedures). Honeywell reserves the right to seek judicial intervention should negotiations fail. After the NARCO Trust became effective in 2013, the $743 million NARCO Trust Liability was then comprised of: (i) liability for unasserted claims; and (ii) liability for claims asserted after the NARCO Trust became operational but not yet paid. Although we know the number of claims filed with the NARCO Trust each year, we are not able to determine at this time the portion of the NARCO Trust Liability which represents asserted versus unasserted claims due to the lack of sufficiently reliable claims data because of the claims processing issues described previously. Honeywell continues to maintain the 2006 NARCO Trust Liability Estimate (the $743 million accrual less payments made by Honeywell to the NARCO Trust for Annual Contribution Claims since the beginning of the fourth quarter of 2019), as there has not been sufficiently reliable claims data history to enable the Company to update that liability. As of December 31, 2019, all cash dividends paid to the NARCO Trust by HWI had been used to pay Annual Contribution Claims. In the six months ended June 30, 2020, Honeywell funded $35 million to the NARCO Trust for the payment of Annual Contribution Claims. As of June 30, 2020, the Company's total NARCO asbestos liability of $826 million reflects Pre-bankruptcy NARCO Liability of $147 million and NARCO Trust Liability of $679 million (the $743 million accrual for the 2006 NARCO Trust Liability Estimate was reduced by $64 million of payments by Honeywell to the NARCO Trust for Annual Contribution Claims since HWI cash dividend funding was fully exhausted in the fourth quarter of 2019 and there have been no further dividends from HWI). Through June 30, 2020, Pre-bankruptcy NARCO Liability has been reduced by approximately $2 billion since first established in 2002, largely related to settlement payments. The remaining Pre-bankruptcy NARCO Liability principally represents estimated amounts owed pursuant to settlement agreements reached during the pendency of the NARCO bankruptcy proceedings that provide for the right to submit claims to the NARCO Trust subject to qualification under the terms of the settlement agreements and Trust Distribution Procedures. The other NARCO bankruptcy related obligations were paid in 2013 and no further liability is recorded. Honeywell continues to evaluate the appropriateness of the 2006 NARCO Trust Liability Estimate. Despite becoming effective in 2013, the NARCO Trust has experienced delays in becoming fully operational. Violations of the Trust Distribution Procedures and the resulting disputes and challenges, a standstill pending dispute resolution, and limited claims payments, have all contributed to the lack of sufficient normalized data based on actual claims processing experience in the Trust since it became operational. As a result, we have not been able to further update the NARCO Trust Liability aside from deducting Honeywell payments to the NARCO Trust for Annual Contribution Claims. The 2006 NARCO Trust Liability Estimate continues to be appropriate because of the unresolved pending claims in the Trust, some portion of which will result in payouts in the future, and because new claims continue to be filed with the NARCO Trust. When sufficiently reliable claims data exists, we will update our estimate of the NARCO Trust Liability and it is possible that a material change may need to be recognized. Our insurance receivable of $274 million as of June 30, 2020, corresponding to the estimated liability for asserted and unasserted NARCO asbestos claims, reflects coverage which reimburses Honeywell for portions of NARCO-related indemnity and defense costs and is provided by a large number of insurance policies written by dozens of insurance companies in both the domestic insurance market and the London excess market. We conduct analyses to estimate the probable amount of insurance that is recoverable for asbestos claims. While the substantial majority of our insurance carriers are solvent, some of our individual carriers are insolvent, which has been considered in our analysis of probable recoveries. We made judgments concerning insurance coverage that we believe are reasonable and consistent with our historical dealings and our knowledge of any pertinent solvency issues surrounding insurers. Bendix Products —Bendix manufactured automotive brake linings that contained chrysotile asbestos in an encapsulated form. Claimants consist largely of individuals who allege exposure to asbestos from brakes from either performing or being in the vicinity of individuals who performed brake replacements. The following tables present information regarding Bendix-related asbestos claims activity: Six Months Ended Years Ended Claims Activity 2020 2019 2018 Claims unresolved at the beginning of period 6,480 6,209 6,280 Claims filed 1,013 2,659 2,430 Claims resolved (1,195) (2,388) (2,501) Claims unresolved at the end of period 6,298 6,480 6,209 Disease Distribution of Unresolved Claims June 30, December 31, 2020 2019 2018 Mesothelioma and other cancer claims 3,278 3,399 2,949 Nonmalignant claims 3,020 3,081 3,260 Total claims 6,298 6,480 6,209 Honeywell has experienced average resolution values per claim excluding legal costs as follows: 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 It is not possible to predict whether resolution values for Bendix-related asbestos claims will increase, decrease or stabilize in the future. The Company's Consolidated Financial Statements reflect an estimated liability for resolution of asserted (claims filed as of the financial statement date) and unasserted Bendix-related asbestos claims and excludes the Company’s legal fees to defend such asbestos claims which will continue to be expensed by the Company as they are incurred. We have valued Bendix asserted and unasserted claims using average resolution values for the previous five years. We update the resolution values used to estimate the cost of Bendix asserted and unasserted claims during the fourth quarter each year. Honeywell reflects the inclusion of all years of epidemiological disease projection through 2059 when estimating the liability for unasserted Bendix-related asbestos claims. Such liability for unasserted Bendix-related asbestos claims is based on historic and anticipated claims filing experience and dismissal rates, disease classifications, and resolution values in the tort system for the previous five years. Our insurance receivable corresponding to the liability for settlement of asserted and unasserted Bendix asbestos claims reflects coverage which is provided by a large number of insurance policies written by dozens of insurance companies in both the domestic insurance market and the London excess market. Based on our ongoing analysis of the probable insurance recovery, insurance receivables are recorded in the financial statements simultaneous with the recording of the estimated liability for the underlying asbestos claims. This determination is based on our analysis of the underlying insurance policies, our historical experience with our insurers, our ongoing review of the solvency of our insurers, judicial determinations relevant to our insurance programs, and our consideration of the impacts of any settlements reached with our insurers. In conjunction with the Garrett Motion, Inc. ("Garrett") spin-off, the Company entered into an indemnification and reimbursement agreement with a Garrett subsidiary, pursuant to which Garrett’s subsidiary will have an obligation to make cash payments to Honeywell in amounts equal to (i) 90% of Honeywell’s asbestos-related liability payments primarily related to the Bendix business in the United States, as well as certain environmental-related liability payments and accounts payable and non-United States asbestos-related liability payments, including the legal costs of defending and resolving such liabilities, less (ii) 90% of Honeywell’s net insurance receipts and, as may be applicable, certain other recoveries associated with such liabilities. The amount payable to Honeywell in respect of such liabilities arising in any given year is subject to a cap of approximately Euro 150 million (equivalent to $175 million at the time the indemnification and reimbursement agreement was entered into). The obligation will continue until the earlier of December 31, 2048, or December 31 of the third consecutive year during which the annual obligation is less than the Euro equivalent, at the fixed exchange rate at the time the indemnification and reimbursement agreement was entered into, of $25 million. As the Company incurs costs for matters covered by the indemnification and reimbursement agreement, a corresponding receivable from Garrett is recorded for 90 percent of those costs as determined by the terms of the agreement. In Garrett’s Quarterly Report on Form 10-Q, filed with the SEC on May 11, 2020, Garrett disclosed certain conditions and events which it indicated raise substantial doubt as to Garrett’s ability to continue as a going concern. On June 12, 2020, the Company and Garrett entered into an amendment of the indemnification and reimbursement agreement in connection with Garrett’s amendment of its 2018 credit agreement. These amendments provide Garrett with temporary financial covenant relief with respect to the total leverage and interest coverage ratios, for a period that could extend to as late as June 30, 2022. Garrett’s payments to the Company under the indemnification and reimbursement agreement are deferred to the extent Garrett is (or to the extent such payments would cause Garrett to be) out of compliance with the original financial covenants and resume to the extent Garrett is in compliance with such original financial covenants. Any deferred amounts will be paid to the extent Garrett is in compliance with such original financial covenants and has available capacity to make such payments pursuant to the terms of the indemnification and reimbursement agreement and its current credit agreement. The Company and Garrett also concurrently entered into the litigation status agreement discussed below. The receivable amount recorded in connection with the indemnification and reimbursement agreement in the six months ended June 30, 2020 was $26 million. Amounts associated with the indemnification and reimbursement agreement are collected from Garrett quarterly, and as a consequence of the extension referenced below, such amounts were $36 million in the six months ended June 30, 2020. As of June 30, 2020, Other Current Assets and Other Assets includes $2 million and $1,068 million representing the short-term and long-term portion of the receivable amount due from Garrett under the indemnification and reimbursement agreement. We continue to closely monitor changes in Garrett’s financial condition using available information, including the amendment to its 2018 credit agreement, to estimate future cash flows and assess collectability of outstanding receivables under the indemnification and reimbursement agreement. We believe the receivable due from Garrett as of June 30, 2020 is collectable. On December 2, 2019, Garrett Motion Inc. and Garrett ASASCO Inc. filed a Summons with Notice and commenced a lawsuit in the Commercial Division of the Supreme Court of the State of New York, County of New York, seeking to invalidate the indemnification and reimbursement agreement between Garrett and Honeywell. Garrett seeks damages and a declaratory judgment based on various claims set forth in the Summons with Notice. On January 15, 2020, Garrett filed its complaint in the action, which asserted the same claims, and on March 5, 2020, we filed a Motion to Dismiss. On June 12, 2020, Honeywell and Garrett entered into a litigation status agreement pursuant to which (i) the parties agreed to make good faith efforts to limit near-term litigation spend on this matter, and (ii) the Company agreed to extend both the $2 million payment owed by Garrett to the Company on May 1, 2020 under the indemnification and reimbursement agreement and the $18 million payment owed by Garrett to the Company on April 1, 2020 under the tax matters agreement that the parties executed in connection with the spin-off until December 31, 2020 (which amounts, as previously disclosed, had been deferred to May 31, 2020). On July 17, 2020, the Company received a notice from Garrett asserting that Honeywell has caused material breaches of the tax matters agreement and that the tax matters agreement is unenforceable. We strongly believe that Garrett's allegations have no merit, nor are they material to Honeywell. We believe we have fully complied with our obligations under the indemnification and reimbursement agreement and the tax matters agreement and that both agreements are enforceable. On October 31, 2018, David Kanefsky, a Honeywell shareholder, filed a putative class action complaint in the U.S. District Court for the District of New Jersey alleging violations of the Securities Exchange Act of 1934 and Rule 10b-5 related to the prior accounting for Bendix asbestos claims. An Amended Complaint was filed on December 30, 2019, and on February 7, 2020, we filed a Motion to Dismiss. On May 18, 2020, the court denied our Motion to Dismiss. We believe the claims have no merit. Other Matters The Company is subject to a number of other lawsuits, investigations and disputes (some of which involve substantial amounts claimed) arising out of the conduct of our business, including matters relating to commercial transactions, government contracts, product liability, prior acquisitions and divestitures, employee benefit plans, intellectual property, and environmental, health and safety matters. We recognize a liability for any contingency that is probable of occurrence and reasonably estimable. We continually assess the likelihood of adverse judgments of outcomes in these matters, as well as potential ranges of possible losses (taking into consideration any insurance recoveries), based on a careful analysis of each matter with the assistance of outside legal counsel and, if applicable, other experts. Included in these other matters are the following: Honeywell v. United Auto Workers (UAW) et. al —In September 2011, the UAW and certain Honeywell retirees (Plaintiffs) filed a suit in the Eastern District of Michigan (the District Court) alleging that a series of Master Collective Bargaining Agreements (MCBAs) between Honeywell and the UAW provided the retirees with rights to lifetime, vested healthcare benefits that could never be changed or reduced. Plaintiffs alleged that Honeywell had violated those vested rights by implementing express limitations (CAPS) on the amount Honeywell contributed toward healthcare coverage for the retirees. Honeywell subsequently answered the UAW’s complaint and asserted counterclaims, including for breach of implied warranty. Between 2014 and 2015, Honeywell began enforcing the CAPS against former employees. In response, the UAW and certain of the Plaintiffs filed a motion seeking a ruling that the MCBAs do not limit Honeywell’s obligation to contribute to healthcare coverage for those retirees. On March 29, 2018, the District Court issued its opinion resolving all pending summary judgment motions, except for Honeywell’s counterclaim for breach of implied warranty, which has since been dismissed without prejudice. In the opinion, the District Court held that the MCBAs do not promise retirees vested, lifetime benefits that survive expiration of the MCBAs. Based on this ruling, Honeywell terminated the retirees healthcare coverage benefits altogether as of July 31, 2018. In response, the UAW filed a motion to enjoin Honeywell from completely terminating coverage as of July 31, 2018, arguing that the CAPS themselves are vested and that Honeywell must continue to provide retiree medical benefits at the capped level. On July 28, 2018, the District Court denied the UAW’s motion and entered a final judgment consistent with its March 2018 ruling. The UAW appealed this decision to the Sixth Circuit Court of Appeals. In the March 2018 opinion, the District Court also held that Honeywell is obligated under the MCBAs to pay the “full premium” for retiree healthcare rather than the capped amount. Based on this ruling, Honeywell would be required to pay monetary damages to retirees for any past years in which Honeywell paid less than the “full premium” of their healthcare coverage. Such damages would be limited, depending on the retiree group, to a two to three-year period ending when the 2017 MCBA expired, and Honeywell would have no ongoing obligation to continue funding healthcare coverage for subsequent periods. Honeywell appealed the District Court’s ruling on this “full premium” damages issue. On April 3, 2020, the Sixth Circuit Court of Appeals issued an opinion ruling for Honeywell in all respects. The Court of Appeals affirmed the District Court's ruling that the MCBAs do not promise retirees vested, lifetime benefits that survive expiration of the MCBAs. In addition, the Court of Appeals reversed the District Court's ruling that Honeywell was obligated under the MCBAs to pay the "full premium" for retiree healthcare, rather than the capped amount. As a result of these rulings, Honeywell is not required to pay any monetary damages to the Plaintiffs. Plaintiffs sought rehearing en banc from the Sixth Circuit Court of Appeals, which petition was denied. Plaintiffs last avenue of appeal is a petition for certiorari with the Supreme Court of the United States, but it is unknown at this time whether they will do so. If plaintiffs choose to make that filing, Honeywell does not believe they will be successful. Petrobras and Unaoil —We are cooperating with certain investigations by the U.S. Department of Justice (DOJ), the SEC and Brazilian authorities relating to our use of third parties who previously worked for our UOP business in Brazil in relation to Petróleo Brasileiro S.A. (Petrobras). The investigations are focused on compliance with the U.S. Foreign Corrupt Practices Act and similar Brazilian laws, and involve, among other things, document production and interviews with former and current management and employees. The DOJ and the SEC are also examining a matter involving a foreign subsidiary’s prior engagement of Unaoil S.A.M. in Algeria. We are cooperating with the authorities in each of the above matters. While we cannot predict the outcome of these matters, based on the facts currently known to us, we do not anticipate that these matters will have a material adverse effect on our financial condition, results of operations, or cash flows. In re Resideo Technologies, Inc. Securities Litigation —On January 7, 2020, The Gabelli Asset Fund and certain related parties filed a putative class action complaint against Resideo and Honeywell in the U.S. District Court for the District of Minnesota alleging violations of the Securities Exchange Act of 1934 and Rule 10b-5 related to Resideo's spinoff from Honeywell in October 2018. On January 27, 2020, this putative class action was consolidated with certain previously-filed actions asserting claims relating to substantially the same matters into a single class action under the title In re Resideo Technologies, Inc. Securities Litigation. We believe the allegations against Honeywell regarding the Resideo spinoff have no merit. On April 10, 2020, the plaintiffs filed an Amended Consolidated Class Action Complaint and did not name Honeywell. Accordingly, Honeywell is no longer party to this matter. However, it is possible that Honeywell could be named as a defendant in the future. Given the uncertainty inherent in litigation and investigations (including the specific matters referenced above), we do not believe it is possible to develop estimates of reasonably possible loss in excess of current accruals for these matters (other than as specifically set forth above). Considering our past experience and existing accruals, we do not expect the outcome of these matters, either individually or in the aggregate, to have a material adverse effect on our consolidated financial position. Because most contingencies are resolved over long periods of time, potential liabilities are subject to change due to new developments, changes in settlement strategy or the impact of evidentiary requirements, which could cause us to pay damage awards or settlements (or become subject to equitable remedies) that could |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements —The Company considers the applicability and impact of all Accounting Standards Updates (ASUs) issued by the Financial Accounting Standards Board (FASB). ASUs not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on our consolidated results of operations, financial position and cash flows (Consolidated Financial Statements). In December 2019, the FASB issued an accounting standard update to simplify the accounting for income taxes. The standard's amendments include changes in various subtopics of accounting for income taxes including, but not limited to, accounting for "hybrid" tax regimes, tax basis step-up in goodwill obtained in a transaction that is not a business combination, intraperiod tax allocation exception to incremental approach, ownership changes in investments, interim-period accounting for enacted changes in tax law, and year-to-date loss limitation in interim-period tax accounting. The guidance is effective for fiscal years beginning after December 15, 2020 with early adoption permitted, including the interim periods within those years. We are currently evaluating impacts of these amendments on our Consolidated Financial Statements, and related notes to the Financial Statements. We do not expect the adoption of this standard to have a material impact on our Consolidated Financial Statements. In June 2016, the FASB issued an accounting standard that requires companies to utilize an impairment model (current expected credit loss, or CECL) for most financial assets measured at amortized cost and certain other financial instruments, which include, but are not limited to, trade and other receivables. This accounting standard replaced the incurred loss model with a model that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to estimate those losses. Effective January 1, 2020, the Company adopted this standard. The adoption of this standard did not have a material impact on our Consolidated Financial Statements. |
REPOSITIONING AND OTHER CHARG_2
REPOSITIONING AND OTHER CHARGES (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Restructuring and Related Activities [Abstract] | |
Repositioning and other charges | A summary of repositioning and other charges follows: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Severance $ 254 $ 75 $ 320 $ 106 Asset impairments 4 — 6 11 Exit costs 15 11 30 29 Reserve adjustments (18) (2) (31) (4) Total net repositioning charge 255 84 325 142 Asbestos related litigation charges, net of insurance and reimbursements 9 6 20 17 Probable and reasonably estimable environmental liabilities, net of reimbursements 6 39 14 53 Other 10 (3) (17) (2) Total net repositioning and other charges $ 280 $ 126 $ 342 $ 210 |
Pretax distribution of total net repositioning and other charges by income statement classification | The following table summarizes the pretax distribution of total net repositioning and other charges by classification: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Cost of products and services sold $ 175 $ 74 $ 195 $ 129 Selling, general and administrative expenses 105 52 147 81 $ 280 $ 126 $ 342 $ 210 |
Pretax Impact of Total Net Repositioning and Other Charges by Segment | The following table summarizes the pretax impact of total net repositioning and other charges by segment: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Aerospace $ 107 $ 4 $ 118 $ 20 Honeywell Building Technologies 33 — 58 8 Performance Materials and Technologies 84 34 105 33 Safety and Productivity Solutions 11 43 17 48 Corporate 45 45 44 101 $ 280 $ 126 $ 342 $ 210 |
Total Repositioning Reserves | The following table summarizes the status of our total repositioning reserves: Severance Asset Exit Total December 31, 2019 $ 555 $ — $ 96 $ 651 Charges 320 6 30 356 Usage - cash (135) — (37) (172) Usage - noncash — (6) — (6) Foreign currency translation 4 — — 4 Adjustments (30) — (1) (31) June 30, 2020 $ 714 $ — $ 88 $ 802 |
OTHER (INCOME) EXPENSE (Tables)
OTHER (INCOME) EXPENSE (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Other Income and Expenses [Abstract] | |
Other (income) expense [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Interest income $ (22) $ (63) $ (66) $ (130) Pension ongoing income – non-service (236) (185) (473) (369) Other postretirement income – non-service (14) (11) (27) (23) Equity income of affiliated companies (15) (11) (27) (20) Loss (gain) on sale of non-strategic business and assets — (1) — (1) Foreign exchange (3) (43) (15) (54) Other (net) (1) 9 — 7 $ (291) $ (305) $ (608) $ (590) |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings per share basic | Three Months Ended June 30, Six Months Ended June 30, Basic 2020 2019 2020 2019 Net income attributable to Honeywell $ 1,081 $ 1,541 $ 2,662 $ 2,957 Weighted average shares outstanding 702.3 723.2 705.9 726.4 Earnings per share of common stock $ 1.54 $ 2.13 $ 3.77 $ 4.07 |
Earnings per share diluted | Three Months Ended June 30, Six Months Ended June 30, Assuming Dilution 2020 2019 2020 2019 Net income attributable to Honeywell $ 1,081 $ 1,541 $ 2,662 $ 2,957 Average Shares Weighted average shares outstanding 702.3 723.2 705.9 726.4 Dilutive securities issuable - stock plans 5.8 9.8 6.7 9.5 Total weighted average shares outstanding 708.1 733.0 712.6 735.9 Earnings per share of common stock $ 1.53 $ 2.10 $ 3.74 $ 4.02 |
REVENUE RECOGNITION AND CONTR_2
REVENUE RECOGNITION AND CONTRACTS WITH CUSTOMERS (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue [Table Text Block] | See the following table and related discussions by operating segment for details. Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Aerospace Commercial Aviation Original Equipment $ 449 $ 734 $ 1,121 $ 1,493 Commercial Aviation Aftermarket 653 1,421 2,033 2,782 Defense and Space 1,441 1,353 2,750 2,574 2,543 3,508 5,904 6,849 Honeywell Building Technologies Products 664 843 $ 1,412 $ 1,653 Building Solutions 513 607 1,046 1,186 1,177 1,450 2,458 2,839 Performance Materials and Technologies UOP 517 703 1,111 1,313 Process Solutions 1,093 1,289 2,244 2,535 Specialty Products 272 265 525 534 Fluorine Products 336 478 735 925 2,218 2,735 4,615 5,307 Safety and Productivity Solutions Safety and Retail 511 557 1,013 1,095 Productivity Products 227 267 478 538 Warehouse and Workflow Solutions 595 501 1,089 1,060 Sensing & Internet-of-Things (IoT) 206 225 383 439 1,539 1,550 2,963 3,132 Net sales $ 7,477 $ 9,243 $ 15,940 $ 18,127 Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Products, transferred point in time 61 % 61 % 61 % 61 % Products, transferred over time 16 14 15 15 Net product sales 77 75 76 76 Services, transferred point in time 7 8 8 8 Services, transferred over time 16 17 16 16 Net service sales 23 25 24 24 Net sales 100 % 100 % 100 % 100 % |
Contract with Customer Asset and Liability [Table Text Block] | The following table summarizes the Company's contract assets and liabilities balances: 2020 2019 Contract assets - January 1 $ 1,602 $ 1,548 Contract assets - June 30 1,760 1,777 Change in contract assets - increase (decrease) $ 158 $ 229 Contract liabilities - January 1 $ (3,501) $ (3,378) Contract liabilities - June 30 (3,574) (3,237) Change in contract liabilities - decrease (increase) $ (73) $ 141 Net change $ 85 $ 370 |
Revenue Remaining Performance Obligation Expected Timing of Satisfaction [Table Text Block] | The following table outlines the Company's remaining performance obligations disaggregated by segment: June 30, 2020 Aerospace $ 10,198 Honeywell Building Technologies 5,421 Performance Materials and Technologies 6,565 Safety and Productivity Solutions 3,535 $ 25,719 |
ACCOUNTS RECEIVABLE - NET (Tabl
ACCOUNTS RECEIVABLE - NET (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Receivables [Abstract] | |
Schedule of Accounts Receivables | June 30, 2020 December 31, 2019 Trade $ 6,894 $ 7,639 Less - Allowance for doubtful accounts (177) (146) $ 6,717 $ 7,493 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | June 30, 2020 December 31, 2019 Raw materials $ 1,113 $ 1,056 Work in process 836 817 Finished products 2,839 2,593 4,788 4,466 Reduction to LIFO cost basis (35) (45) $ 4,753 $ 4,421 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | .Supplemental cash flow information related to leases was as follows: Six Months Ended June 30, 2020 2019 Net right-of-use assets obtained in exchange for lease obligations: Operating leases 100 26 Finance leases 17 8 Supplemental balance sheet information related to leases was as follows: June 30, 2020 December 31, 2019 Operating leases Other assets $ 714 $ 673 Accrued liabilities 168 171 Other liabilities 592 534 Total operating lease liabilities $ 760 $ 705 Financing leases Property, plant and equipment $ 358 $ 361 Accumulated depreciation (158) (152) Property, plant and equipment - net $ 200 $ 209 Current maturities of long-term debt 61 59 Long-term debt 144 156 Total financing lease liabilities $ 205 $ 215 |
LONG-TERM DEBT AND CREDIT AGR_2
LONG-TERM DEBT AND CREDIT AGREEMENTS (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | June 30, 2020 December 31, 2019 0.65% Euro notes due 2020 — 1,123 4.25% notes due 2021 800 800 1.85% notes due 2021 1,500 1,500 2.15% notes due 2022 600 600 Floating rate notes due 2022 600 600 Term Loan due 2022 3,000 — 1.30% Euro notes due 2023 1,401 1,404 3.35% notes due 2023 300 300 0.00% Euro notes due 2024 560 — 2.30% notes due 2024 750 750 1.35% notes due 2025 1,250 — 2.50% notes due 2026 1,500 1,500 2.25% Euro notes due 2028 841 842 2.70% notes due 2029 750 750 1.95% notes due 2030 1,000 — 0.75% Euro notes due 2032 560 — 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 — 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), 8.0% weighted average maturing at various dates through 2025 357 278 18,558 12,486 Less: current portion (967) (1,376) $ 17,591 $ 11,110 |
FINANCIAL INSTRUMENTS AND FAI_2
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASURES (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The following table sets forth the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis: June 30, 2020 December 31, 2019 Assets: Foreign currency exchange contracts $ 457 $ 291 Available for sale investments 1,514 1,523 Interest rate swap agreements 244 38 Cross currency swap agreements 52 51 Liabilities: Foreign currency exchange contracts $ 50 $ 21 Interest rate swap agreements — 13 |
Financial assets and liabilities that were not carried at fair value | The following table sets forth the Company’s financial assets and liabilities that were not carried at fair value: June 30, 2020 December 31, 2019 Carrying Fair Carrying Fair Assets Long-term receivables $ 148 $ 145 $ 129 $ 127 Liabilities Long-term debt and related current maturities $ 18,558 $ 19,837 $ 12,486 $ 13,578 |
Amounts recorded on the Consolidated Balance Sheet related to cumulative basis adjustments for fair value hedges [Table Text Block] | The following table sets forth the amounts on the Consolidated Balance Sheet related to cumulative basis adjustments for fair value hedges: 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 June 30, 2020 December 31, 2019 June 30, 2020 December 31, 2019 Long-term debt $ 4,194 $ 3,975 $ 244 $ 25 |
Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block] | The following tables summarize the location and impact to the Consolidated Statement of Operations related to fair value and cash flow hedging relationships: Three Months Ended June 30, 2020 Revenue Cost of Products Sold SG&A Other (Income) Expense Interest and Other Financial Charges $ 7,477 $ 4,163 $ 1,183 $ (291) $ 90 Gain or (loss) on cash flow hedges: Foreign Currency Exchange Contracts: Amount reclassified from accumulated other comprehensive income into income (1) 3 (3) (42) — Amount excluded from effectiveness testing recognized in earnings using an amortization approach — 4 — 9 — Gain or (loss) on fair value hedges: Interest Rate Swap Agreements: Hedged items — — — — (14) Derivatives designated as hedges — — — — 14 Three Months Ended June 30, 2019 Revenue Cost of Products Sold SG&A Other (Income) Expense Interest and Other Financial Charges $ 9,243 $ 4,848 $ 1,387 $ (305) $ 85 Gain or (loss) on cash flow hedges: Foreign Currency Exchange Contracts: Amount reclassified from accumulated other comprehensive income into income 1 8 1 — — 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 Six Months Ended June 30, 2020 Revenue Cost of Products Sold SG&A Other (Income) Expense Interest and Other Financial Charges $ 15,940 $ 8,537 $ 2,421 (608) $ 163 Gain or (loss) on cash flow hedges: Foreign currency exchange contracts: Amount reclassified from accumulated other comprehensive income into income (1) 30 (3) (2) — Amount excluded from effectiveness testing recognized in earnings using an amortization approach — 8 — 17 — Gain or (loss) on fair value hedges: Interest rate swap agreements: Hedged items — — — — (219) Derivatives designated as hedges — — — — 219 Six Months Ended June 30, 2019 Revenue Cost of Products Sold SG&A Other (Income) Expense Interest and Other Financial Charges $ 18,127 $ 9,470 $ 2,750 $ (590) $ 170 Gain or (loss) on cash flow hedges: Foreign currency exchange contracts: Amount reclassified from accumulated other comprehensive income into income 1 24 1 24 — Amount excluded from effectiveness testing recognized in earnings using an amortization approach — 11 — 18 — Gain or (loss) on fair value hedges: Interest rate swap agreements: Hedged items — — — — (63) Derivatives designated as hedges — — — — 63 |
Schedule of Net Investment Hedges in Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following table summarizes the amounts of gain or (loss) on net investment hedges recognized in Accumulated other comprehensive income (loss): Three Months Ended June 30, Six Months Ended June 30, Derivatives Net Investment Hedging Relationships 2020 2019 2020 2019 Euro-denominated long-term debt $ (62) $ (43) $ 62 $ 26 Euro-denominated commercial paper (15) (44) 55 27 Cross currency swap 7 (8) (19) 5 Foreign currency exchange contracts (102) (2) (18) 5 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Changes in Accumulated Other Comprehensive Income by Component | Changes in Accumulated Other Comprehensive Income (Loss) by Component Foreign Pension Changes in Total Balance at December 31, 2019 $ (2,566) $ (675) $ 44 $ (3,197) Other comprehensive income (loss) before reclassifications (148) — 104 (44) Amounts reclassified from accumulated other comprehensive income (7) (40) (22) (69) Net current period other comprehensive income (loss) (155) (40) 82 (113) Balance at June 30, 2020 $ (2,721) $ (715) $ 126 $ (3,310) Foreign Pension Changes in Total Balance at December 31, 2018 $ (2,709) $ (761) $ 33 $ (3,437) Other comprehensive income (loss) before reclassifications 21 — 48 69 Amounts reclassified from accumulated other comprehensive income (7) (39) (39) (85) Net current period other comprehensive income (loss) 14 (39) 9 (16) Balance at June 30, 2019 $ (2,695) $ (800) $ 42 $ (3,453) |
SEGMENT FINANCIAL DATA (Tables)
SEGMENT FINANCIAL DATA (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Financial Data | Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Net sales Aerospace Products $ 1,633 $ 2,174 $ 3,712 $ 4,249 Services 910 1,334 2,192 2,600 Total 2,543 3,508 5,904 6,849 Honeywell Building Technologies Products 865 1,119 1,835 2,192 Services 312 331 623 647 Total 1,177 1,450 2,458 2,839 Performance Materials and Technologies Products 1,793 2,238 3,707 4,308 Services 425 497 908 999 Total 2,218 2,735 4,615 5,307 Safety and Productivity Solutions Products 1,452 1,459 2,794 2,954 Services 87 91 169 178 Total 1,539 1,550 2,963 3,132 $ 7,477 $ 9,243 $ 15,940 $ 18,127 Segment profit Aerospace $ 528 $ 907 $ 1,465 $ 1,745 Honeywell Building Technologies 250 300 512 571 Performance Materials and Technologies 419 644 931 1,208 Safety and Productivity Solutions 213 191 391 403 Corporate (25) (72) (66) (148) Total segment profit 1,385 1,970 3,233 3,779 Interest and other financial charges (90) (85) (163) (170) Stock compensation expense (a) (34) (34) (78) (75) Pension ongoing income (b) 198 148 396 299 Other postretirement income (b) 14 11 27 23 Repositioning and other charges (c) (280) (126) (342) (210) Other (d) 26 98 81 178 Income before taxes $ 1,219 $ 1,982 $ 3,154 $ 3,824 (a) Amounts included in Selling, general and administrative expenses. (b) Amounts included in Cost of products and services sold and Selling, general and administrative expenses (service costs) and Other income/expense (non-service cost components). |
Reconciliation of Operating Profit Loss From Segments to Consolidated | Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Net sales Aerospace Products $ 1,633 $ 2,174 $ 3,712 $ 4,249 Services 910 1,334 2,192 2,600 Total 2,543 3,508 5,904 6,849 Honeywell Building Technologies Products 865 1,119 1,835 2,192 Services 312 331 623 647 Total 1,177 1,450 2,458 2,839 Performance Materials and Technologies Products 1,793 2,238 3,707 4,308 Services 425 497 908 999 Total 2,218 2,735 4,615 5,307 Safety and Productivity Solutions Products 1,452 1,459 2,794 2,954 Services 87 91 169 178 Total 1,539 1,550 2,963 3,132 $ 7,477 $ 9,243 $ 15,940 $ 18,127 Segment profit Aerospace $ 528 $ 907 $ 1,465 $ 1,745 Honeywell Building Technologies 250 300 512 571 Performance Materials and Technologies 419 644 931 1,208 Safety and Productivity Solutions 213 191 391 403 Corporate (25) (72) (66) (148) Total segment profit 1,385 1,970 3,233 3,779 Interest and other financial charges (90) (85) (163) (170) Stock compensation expense (a) (34) (34) (78) (75) Pension ongoing income (b) 198 148 396 299 Other postretirement income (b) 14 11 27 23 Repositioning and other charges (c) (280) (126) (342) (210) Other (d) 26 98 81 178 Income before taxes $ 1,219 $ 1,982 $ 3,154 $ 3,824 (a) Amounts included in Selling, general and administrative expenses. (b) Amounts included in Cost of products and services sold and Selling, general and administrative expenses (service costs) and Other income/expense (non-service cost components). |
PENSION BENEFITS (Tables)
PENSION BENEFITS (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Retirement Benefits [Abstract] | |
Defined Benefit Plans Disclosure | Net periodic pension benefit costs for our significant defined benefit plans include the following components: U.S. Plans Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Service cost $ 24 $ 21 $ 49 $ 42 Interest cost 115 154 230 307 Expected return on plan assets (283) (279) (567) (558) Amortization of prior service (credit) (10) (11) (21) (22) $ (154) $ (115) $ (309) $ (231) Non-U.S. Plans Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Service cost $ 5 $ 6 $ 11 $ 12 Interest cost 26 36 52 72 Expected return on plan assets (81) (83) (165) (167) Amortization of prior service (credit) — — — — $ (50) $ (41) $ (102) $ (83) |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Loss Contingency | The following table summarizes information concerning our recorded liabilities for environmental costs: December 31, 2019 $ 709 Accruals for environmental matters deemed probable and reasonably estimable 83 Environmental liability payments (79) Other (4) June 30, 2020 $ 709 |
Environmental liabilities are included in the following balance sheet accounts: | Environmental liabilities are included in the following balance sheet accounts: June 30, 2020 December 31, 2019 Accrued liabilities $ 222 $ 222 Other liabilities 487 487 $ 709 $ 709 |
Asbestos Related Liabilities | Asbestos-Related Liabilities Bendix NARCO Total December 31, 2019 $ 1,499 $ 858 $ 2,357 Accrual for update to estimated liability 31 10 41 Asbestos related liability payments (100) (42) (142) June 30, 2020 $ 1,430 $ 826 $ 2,256 |
Insurance Recoveries for Asbestos Related Liabilities | Insurance Recoveries for Asbestos-Related Liabilities Bendix NARCO Total December 31, 2019 $ 153 $ 281 $ 434 Insurance receipts for asbestos-related liabilities (6) (7) (13) Insurance receivables settlements — — — June 30, 2020 $ 147 $ 274 $ 421 |
NARCO and Bendix asbestos related balances are included in the following balance sheet accounts | NARCO and Bendix asbestos-related balances are included in the following balance sheet accounts: June 30, 2020 December 31, 2019 Other current assets $ 42 $ 42 Insurance recoveries for asbestos-related liabilities 379 392 $ 421 $ 434 Accrued liabilities $ 362 $ 361 Asbestos-related liabilities 1,894 1,996 $ 2,256 $ 2,357 |
The following tables present information regarding Bendix related asbestos claims activity | Six Months Ended Years Ended Claims Activity 2020 2019 2018 Claims unresolved at the beginning of period 6,480 6,209 6,280 Claims filed 1,013 2,659 2,430 Claims resolved (1,195) (2,388) (2,501) Claims unresolved at the end of period 6,298 6,480 6,209 |
Disease distribution of claims | Disease Distribution of Unresolved Claims June 30, December 31, 2020 2019 2018 Mesothelioma and other cancer claims 3,278 3,399 2,949 Nonmalignant claims 3,020 3,081 3,260 Total claims 6,298 6,480 6,209 |
Average resolution values per asbestos claim | Honeywell has experienced average resolution values per claim excluding legal costs as follows: 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 |
REPOSITIONING AND OTHER CHARG_3
REPOSITIONING AND OTHER CHARGES (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Component of Operating Other Cost and Expense [Abstract] | ||||
Total net repositioning charge | $ 255,000,000 | $ 84,000,000 | $ 325,000,000 | $ 142,000,000 |
Asbestos related litigation charges, net of insurance and reimbursements | 9,000,000 | 6,000,000 | 20,000,000 | 17,000,000 |
Probable and reasonably estimable environmental liabilities, net of reimbursements | 6,000,000 | 39,000,000 | 14,000,000 | 53,000,000 |
Other | 10,000,000 | (3,000,000) | (17,000,000) | (2,000,000) |
Total net repositioning and other charges | 280,000,000 | 126,000,000 | 342,000,000 | 210,000,000 |
Severance | ||||
Component of Operating Other Cost and Expense [Abstract] | ||||
Total net repositioning charge | 254,000,000 | 75,000,000 | 320,000,000 | 106,000,000 |
Asset impairments | ||||
Component of Operating Other Cost and Expense [Abstract] | ||||
Total net repositioning charge | 4,000,000 | 0 | 6,000,000 | 11,000,000 |
Exit costs | ||||
Component of Operating Other Cost and Expense [Abstract] | ||||
Total net repositioning charge | 15,000,000 | 11,000,000 | 30,000,000 | 29,000,000 |
Reserve adjustments | ||||
Component of Operating Other Cost and Expense [Abstract] | ||||
Total net repositioning charge | $ (18,000,000) | $ (2,000,000) | $ (31,000,000) | $ (4,000,000) |
REPOSITIONING AND OTHER CHARG_4
REPOSITIONING AND OTHER CHARGES 2 (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Pretax Distribution Of Total Net Repositioning And Other Charges By Income Statement Classification [Line Items] | ||||
Total net repositioning charges | $ 280 | $ 126 | $ 342 | $ 210 |
Cost of products and services sold [Member] | ||||
Pretax Distribution Of Total Net Repositioning And Other Charges By Income Statement Classification [Line Items] | ||||
Total net repositioning charges | 175 | 74 | 195 | 129 |
Selling, general and administrative expenses [Member] | ||||
Pretax Distribution Of Total Net Repositioning And Other Charges By Income Statement Classification [Line Items] | ||||
Total net repositioning charges | $ 105 | $ 52 | $ 147 | $ 81 |
REPOSITIONING AND OTHER CHARG_5
REPOSITIONING AND OTHER CHARGES 3 (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Pretax Impact Of Total Net Repositioning And Other Charges By Segment [Line Items] | ||||
Total net repositioning charges | $ 280,000,000 | $ 126,000,000 | $ 342,000,000 | $ 210,000,000 |
Corporate | ||||
Pretax Impact Of Total Net Repositioning And Other Charges By Segment [Line Items] | ||||
Total net repositioning charges | 45,000,000 | 45,000,000 | 44,000,000 | 101,000,000 |
Aerospace | ||||
Pretax Impact Of Total Net Repositioning And Other Charges By Segment [Line Items] | ||||
Total net repositioning charges | 107,000,000 | 4,000,000 | 118,000,000 | 20,000,000 |
Honeywell Building Technologies | ||||
Pretax Impact Of Total Net Repositioning And Other Charges By Segment [Line Items] | ||||
Total net repositioning charges | 33,000,000 | 0 | 58,000,000 | 8,000,000 |
Performance Materials and Technologies | ||||
Pretax Impact Of Total Net Repositioning And Other Charges By Segment [Line Items] | ||||
Total net repositioning charges | 84,000,000 | 34,000,000 | 105,000,000 | 33,000,000 |
Safety and Productivity Solutions | ||||
Pretax Impact Of Total Net Repositioning And Other Charges By Segment [Line Items] | ||||
Total net repositioning charges | $ 11,000,000 | $ 43,000,000 | $ 17,000,000 | $ 48,000,000 |
REPOSITIONING AND OTHER CHARG_6
REPOSITIONING AND OTHER CHARGES 4 (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020USD ($)Employees | Jun. 30, 2019USD ($)Employees | Jun. 30, 2020USD ($)Employees | Jun. 30, 2019USD ($)Employees | |
Net Repositioning And Other Charges [Line Items] | ||||
Restructuring and Related Cost, Incurred Cost | $ 255,000,000 | $ 84,000,000 | $ 325,000,000 | $ 142,000,000 |
Net repositioning and other charges Paragraph Details [Abstract] | ||||
Gross Repositioning Charge | $ 273,000,000 | $ 86,000,000 | $ 356,000,000 | $ 146,000,000 |
Number of employees severed | Employees | 7,805 | 1,266 | 9,929 | 2,313 |
Severance | ||||
Net Repositioning And Other Charges [Line Items] | ||||
Restructuring and Related Cost, Incurred Cost | $ 254,000,000 | $ 75,000,000 | $ 320,000,000 | $ 106,000,000 |
Asset impairments | ||||
Net Repositioning And Other Charges [Line Items] | ||||
Restructuring and Related Cost, Incurred Cost | 4,000,000 | 0 | 6,000,000 | 11,000,000 |
Exit costs | ||||
Net Repositioning And Other Charges [Line Items] | ||||
Restructuring and Related Cost, Cost Incurred to Date | 19,000,000 | 11,000,000 | 19,000,000 | 11,000,000 |
Restructuring and Related Cost, Incurred Cost | 15,000,000 | 11,000,000 | 30,000,000 | 29,000,000 |
Reserve adjustments | ||||
Net Repositioning And Other Charges [Line Items] | ||||
Restructuring and Related Cost, Incurred Cost | $ (18,000,000) | $ (2,000,000) | $ (31,000,000) | $ (4,000,000) |
REPOSITIONING AND OTHER CHARG_7
REPOSITIONING AND OTHER CHARGES 5 (Details) | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Restructuring Reserve [Line Items] | |
Balance at beginning of period, | $ 651,000,000 |
Charges | 356,000,000 |
Usage - cash | (172,000,000) |
Usage - noncash | (6,000,000) |
Foreign currency translation | 4,000,000 |
Adjustments | (31,000,000) |
Balance at end of period, | 802,000,000 |
Severance | |
Restructuring Reserve [Line Items] | |
Balance at beginning of period, | 555,000,000 |
Charges | 320,000,000 |
Usage - cash | (135,000,000) |
Usage - noncash | 0 |
Foreign currency translation | 4,000,000 |
Adjustments | (30,000,000) |
Balance at end of period, | 714,000,000 |
Asset impairments | |
Restructuring Reserve [Line Items] | |
Balance at beginning of period, | 0 |
Charges | 6,000,000 |
Usage - cash | 0 |
Usage - noncash | (6,000,000) |
Foreign currency translation | 0 |
Adjustments | 0 |
Balance at end of period, | 0 |
Exit costs | |
Restructuring Reserve [Line Items] | |
Balance at beginning of period, | 96,000,000 |
Charges | 30,000,000 |
Usage - cash | (37,000,000) |
Usage - noncash | 0 |
Foreign currency translation | 0 |
Adjustments | (1,000,000) |
Balance at end of period, | $ 88,000,000 |
OTHER (INCOME) EXPENSE (Details
OTHER (INCOME) EXPENSE (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Other Income and Expenses [Line Items] | ||||
Interest Income | $ (22,000,000) | $ (63,000,000) | $ (66,000,000) | $ (130,000,000) |
Equity income of affiliated companies | (15,000,000) | (11,000,000) | (27,000,000) | (20,000,000) |
Loss (gain) on sale of non-strategic business and assets | 0 | (1,000,000) | 0 | (1,000,000) |
Foreign exchange | (3,000,000) | (43,000,000) | (15,000,000) | (54,000,000) |
Other net | (1,000,000) | 9,000,000 | 0 | 7,000,000 |
Other (Income) Expense, Total | (291,000,000) | (305,000,000) | (608,000,000) | (590,000,000) |
Pension Plans, Defined Benefit [Member] | ||||
Other Income and Expenses [Line Items] | ||||
Ongoing income - non-service | (236,000,000) | (185,000,000) | (473,000,000) | (369,000,000) |
Other Postretirement Benefits Plans, Defined Benefit [Member] | ||||
Other Income and Expenses [Line Items] | ||||
Ongoing income - non-service | $ (14,000,000) | $ (11,000,000) | $ (27,000,000) | $ (23,000,000) |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Net income attributable to Honeywell | $ 1,081 | $ 1,541 | $ 2,662 | $ 2,957 |
Weighted average shares outstanding | 702,300,000 | 723,200,000 | 705,900,000 | 726,400,000 |
Earnings per share of common stock - basic (in dollars per share) | $ 1.54 | $ 2.13 | $ 3.77 | $ 4.07 |
Assuming dilution | ||||
Net income attributable to Honeywell | $ 1,081 | $ 1,541 | $ 2,662 | $ 2,957 |
Average shares | ||||
Weighted average shares outstanding | 702,300,000 | 723,200,000 | 705,900,000 | 726,400,000 |
Dilutive securities issuable - stock plans | 5,800,000 | 9,800,000 | 6,700,000 | 9,500,000 |
Total weighted average shares outstanding | 708,100,000 | 733,000,000 | 712,600,000 | 735,900,000 |
Earnings per share of common stock - assuming dilution (in dollars per share) | $ 1.53 | $ 2.10 | $ 3.74 | $ 4.02 |
Earnings Per Share Paragraph Details [Abstract] | ||||
Stock options excluded from diluted computations | 7,800,000 | 3,000,000 | 6,100,000 | 3,000,000 |
Shares outstanding | 701,800,000 | 719,500,000 | 701,800,000 | 719,500,000 |
Common Stock Shares Issued | 957,600,000 | 957,600,000 | 957,600,000 | 957,600,000 |
REVENUE RECOGNITION AND CONTR_3
REVENUE RECOGNITION AND CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Net Sales | $ 7,477 | $ 9,243 | $ 15,940 | $ 18,127 |
Disaggregation of revenue, timing of recognition - percentage | 100.00% | 100.00% | 100.00% | 100.00% |
Products [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | $ 5,743 | $ 6,990 | $ 12,048 | $ 13,703 |
Disaggregation of revenue, timing of recognition - percentage | 77.00% | 75.00% | 76.00% | 76.00% |
Products [Member] | Transferred At Point In Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregation of revenue, timing of recognition - percentage | 61.00% | 61.00% | 61.00% | 61.00% |
Products [Member] | Transferred Over Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregation of revenue, timing of recognition - percentage | 16.00% | 14.00% | 15.00% | 15.00% |
Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | $ 1,734 | $ 2,253 | $ 3,892 | $ 4,424 |
Disaggregation of revenue, timing of recognition - percentage | 23.00% | 25.00% | 24.00% | 24.00% |
Services [Member] | Transferred At Point In Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregation of revenue, timing of recognition - percentage | 7.00% | 8.00% | 8.00% | 8.00% |
Services [Member] | Transferred Over Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregation of revenue, timing of recognition - percentage | 16.00% | 17.00% | 16.00% | 16.00% |
Aerospace | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | $ 2,543 | $ 3,508 | $ 5,904 | $ 6,849 |
Aerospace | Commercial Aviation Original Equipment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 449 | 734 | 1,121 | 1,493 |
Aerospace | Commercial Aviation Aftermarket [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 653 | 1,421 | 2,033 | 2,782 |
Aerospace | Defense and Space [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 1,441 | 1,353 | 2,750 | 2,574 |
Honeywell Building Technologies | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 1,177 | 1,450 | 2,458 | 2,839 |
Honeywell Building Technologies | Products [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 664 | 843 | 1,412 | 1,653 |
Honeywell Building Technologies | Building Solutions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 513 | 607 | 1,046 | 1,186 |
Performance Materials and Technologies | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 2,218 | 2,735 | 4,615 | 5,307 |
Performance Materials and Technologies | UOP [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 517 | 703 | 1,111 | 1,313 |
Performance Materials and Technologies | Process Solutions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 1,093 | 1,289 | 2,244 | 2,535 |
Performance Materials and Technologies | Specialty Products [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 272 | 265 | 525 | 534 |
Performance Materials and Technologies | Fluorine Products [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 336 | 478 | 735 | 925 |
Safety and Productivity Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 1,539 | 1,550 | 2,963 | 3,132 |
Safety and Productivity Solutions | Safety and Retail [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 511 | 557 | 1,013 | 1,095 |
Safety and Productivity Solutions | Productivity Products [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 227 | 267 | 478 | 538 |
Safety and Productivity Solutions | Warehouse and Workflow Solutions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 595 | 501 | 1,089 | 1,060 |
Safety and Productivity Solutions | Sensing & Internet-of-Things (IoT) | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | $ 206 | $ 225 | $ 383 | $ 439 |
REVENUE RECOGNITION AND CONTR_4
REVENUE RECOGNITION AND CONTRACTS WITH CUSTOMERS 2 (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jan. 01, 2020 | Jan. 01, 2019 | |
Change in Contract with Customer, Asset and Liability [Abstract] | ||||||
Contract Assets | $ 1,760 | $ 1,777 | $ 1,760 | $ 1,777 | $ 1,602 | $ 1,548 |
Change in Contract Assets - Increase (Decrease) | 158 | 229 | ||||
Contract Liabilities | (3,574) | (3,237) | (3,574) | (3,237) | $ (3,501) | $ (3,378) |
Change in Contract Liabilities - (Increase) Decrease | (73) | 141 | ||||
Net Change | 85 | 370 | ||||
Contract liability, revenue recognized | $ 315 | $ 260 | $ 1,203 | $ 980 |
REVENUE RECOGNITION AND CONTR_5
REVENUE RECOGNITION AND CONTRACTS WITH CUSTOMERS 3 (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Revenue, Performance Obligation [Abstract] | |
Revenue Performance Obligation Description of Timing | Performance obligations recognized as of June 30, 2020 will be satisfied over the course of future periods. Our disclosure of the timing for satisfying the performance obligation is based on the requirements of contracts with customers. However, from time to time, these contracts may be subject to modifications, impacting the timing of satisfying the performance obligations. Performance obligations expected to be satisfied within one year and greater than one year are 56% and 44%, respectively. |
Revenue Performance Obligation Description of Payment Terms | The timing of satisfaction of the Company's performance obligations does not significantly vary from the typical timing of payment. Typical payment terms of our fixed-price over time contracts include progress payments based on specified events or milestones, or based on project progress. For some contracts we may be entitled to receive an advance payment. |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation, amount | $ 25,719 |
Within One Year [Member] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation, percentage | 56.00% |
Greater Than One Year [Member] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation, percentage | 44.00% |
Aerospace | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation, amount | $ 10,198 |
Honeywell Building Technologies | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation, amount | 5,421 |
Performance Materials and Technologies | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation, amount | 6,565 |
Safety and Productivity Solutions | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation, amount | $ 3,535 |
ACCOUNTS RECEIVABLE - NET (Deta
ACCOUNTS RECEIVABLE - NET (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Accounts Receivable, after Allowance for Credit Loss, Current [Abstract] | ||
Trade | $ 6,894 | $ 7,639 |
Less - Allowance for doubtful accounts | (177) | (146) |
Accounts receivable, Net | 6,717 | 7,493 |
Accounts Notes And Other Receivables Paragraph Details [Abstract] | ||
Unbilled contracts receivable | $ 1,721 | $ 1,586 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 1,113 | $ 1,056 |
Work in process | 836 | 817 |
Finished products | 2,839 | 2,593 |
Inventory, Gross | 4,788 | 4,466 |
Reduction to LIFO cost basis | (35) | (45) |
Inventories | $ 4,753 | $ 4,421 |
LEASES (Details)
LEASES (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Right Of Use Assets Obtained In Exchange For Lease [Abstract] | ||
Operating leases | $ 100 | $ 26 |
Finance leases | $ 17 | $ 8 |
LEASES 2 (Details)
LEASES 2 (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Assets and Liabilities, Lessee [Abstract] | ||
Other assets | $ 714 | $ 673 |
Accrued liabilities | 168 | 171 |
Other liabilities | 592 | 534 |
Total operating lease liabilities | 760 | 705 |
Property, plant and equipment | 358 | 361 |
Accumulated depreciation | (158) | (152) |
Property, plant and equipment - net | 200 | 209 |
Current maturities of long-term debt | 61 | 59 |
Long-term debt | 144 | 156 |
Total financing lease liability | $ 205 | $ 215 |
LONG-TERM DEBT AND CREDIT AGR_3
LONG-TERM DEBT AND CREDIT AGREEMENTS (Details) € in Millions | 6 Months Ended | ||
Jun. 30, 2020USD ($) | Jun. 30, 2020EUR (€) | Dec. 31, 2019USD ($) | |
Debt Instrument [Line Items] | |||
Total long-term debt, including current portion | $ 18,558,000,000 | $ 12,486,000,000 | |
Less current portion | (967,000,000) | (1,376,000,000) | |
Long-term Debt and Lease Obligation | 17,591,000,000 | 11,110,000,000 | |
0.65% Euro notes due 2020 [Member] | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 0 | 1,123,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 0.65% | 0.65% | |
4.25% notes due 2021 [Member] | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 800,000,000 | 800,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 4.25% | 4.25% | |
1.85% notes due 2021 [Member] | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 1,500,000,000 | 1,500,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 1.85% | 1.85% | |
2.15% notes due 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 600,000,000 | 600,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 2.15% | 2.15% | |
Floating rate notes due 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 600,000,000 | 600,000,000 | |
Term Loan Due 2022 | |||
Debt Instrument [Line Items] | |||
Senior Notes | 3,000,000,000 | 0 | |
Gross proceeds | 3,000,000,000 | ||
Discount and closing costs related to the offering | $ 7,000,000 | ||
Loans Receivable, Basis Spread on Variable Rate | 1.25% | 1.25% | |
1.30% Euro notes due 2023 [Member] | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 1,401,000,000 | 1,404,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 1.30% | 1.30% | |
3.35% notes due 2023 [Member] | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 300,000,000 | 300,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 3.35% | 3.35% | |
0.00% Euro notes due 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 560,000,000 | € 500 | 0 |
Debt Instrument, Interest Rate, Stated Percentage | 0.00% | 0.00% | |
2.30% notes due 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 750,000,000 | 750,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 2.30% | 2.30% | |
1.35% notes due 2025 [Member] | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 1,250,000,000 | 0 | |
Debt Instrument, Interest Rate, Stated Percentage | 1.35% | 1.35% | |
2.50% notes due 2026 [Member] | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 1,500,000,000 | 1,500,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 2.50% | 2.50% | |
2.25% Euro notes due 2028 [Member] | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 841,000,000 | 842,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 2.25% | 2.25% | |
2.70% notes due 2029 [Member] | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 750,000,000 | 750,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 2.70% | 2.70% | |
1.95% notes due 2030 [Member] | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 1,000,000,000 | 0 | |
Debt Instrument, Interest Rate, Stated Percentage | 1.95% | 1.95% | |
0.750% Euro notes due 2032 [Member] | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 560,000,000 | € 500 | 0 |
Debt Instrument, Interest Rate, Stated Percentage | 0.75% | 0.75% | |
5.70% notes due 2036 [Member] | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 441,000,000 | 441,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 5.70% | 5.70% | |
5.70% notes due 2037 [Member] | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 462,000,000 | 462,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 5.70% | 5.70% | |
5.375% notes due 2041 [Member] | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 417,000,000 | 417,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 5.375% | 5.375% | |
3.812% notes due 2047 [Member] | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 445,000,000 | 445,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 3.812% | 3.812% | |
2.8% notes due 2050 [Member] | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 750,000,000 | 0 | |
Debt Instrument, Interest Rate, Stated Percentage | 2.80% | 2.80% | |
Industrial development bond obligations, floating rate maturing at various dates through 2037 [Member] | |||
Debt Instrument [Line Items] | |||
Industrial development bond | $ 22,000,000 | 22,000,000 | |
6.625% debentures due 2028 [Member] | |||
Debt Instrument [Line Items] | |||
Junior Subordinated Notes | $ 201,000,000 | 201,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 6.625% | 6.625% | |
9.065% debentures due 2033 [Member] | |||
Debt Instrument [Line Items] | |||
Junior Subordinated Notes | $ 51,000,000 | 51,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 9.065% | 9.065% | |
Other Including Capitalized Leases And Debt Issuance Costs 8.0% Weighted Average Maturing At Various Dates Through 2025 | |||
Debt Instrument [Line Items] | |||
Other long term debt | $ 357,000,000 | $ 278,000,000 | |
Debt, Weighted Average Interest Rate | 8.00% | 8.00% | |
The 2020 Euro Notes [Member] | |||
Debt Instrument [Line Items] | |||
Gross proceeds | $ 1,136,000,000 | ||
Discount and closing costs related to the offering | 9,000,000 | ||
The 2020 Notes [Member] | |||
Debt Instrument [Line Items] | |||
Gross proceeds | 3,000,000,000 | ||
Discount and closing costs related to the offering | 27,000,000 | ||
Syndicate Of Banks [Member] | $1.5B 364-Day Credit Agreement [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of credit facility, current borrowing capacity | 1,500,000,000 | ||
Line of credit facility, remaining borrowing capacity | 1,500,000,000 | ||
Syndicate Of Banks [Member] | Term Loan Agreement [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of credit facility, borrowing capacity of prior agreement | 6,000,000,000 | ||
Term loan increase aggregate maximum amount | 2,000,000,000 | ||
Amount of permanent reduction of the Unused Commitments | $ 3,000,000,000 |
FINANCIAL INSTRUMENTS AND FAI_3
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASURES (Details) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Fair Value Measurements Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale investments | $ 1,514,000,000 | $ 1,523,000,000 |
Foreign currency exchange contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amount of hedged item | 669,000,000 | 3,513,000,000 |
Foreign currency exchange contracts [Member] | Fair Value Measurements Recurring [Member] | Significant Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Fair Value Of Derivative Asset | 457,000,000 | 291,000,000 |
Derivative Fair Value Of Derivative Liability | 50,000,000 | 21,000,000 |
Interest rate swap agreements [Member] | Fair Value Measurements Recurring [Member] | Significant Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Fair Value Of Derivative Asset | 244,000,000 | 38,000,000 |
Derivative Fair Value Of Derivative Liability | 0 | 13,000,000 |
Cross currency swap agreements [Member] | Fair Value Measurements Recurring [Member] | Significant Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Fair Value Of Derivative Asset | $ 52,000,000 | $ 51,000,000 |
FINANCIAL INSTRUMENTS AND FAI_4
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASURES 2 (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term Debt | $ 18,558 | $ 12,486 |
Carrying Value [Member] | Significant Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term receivables | 148 | 129 |
Long-term debt and related current maturities | 18,558 | 12,486 |
Estimated Fair Value [Member] | Significant Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term receivables | 145 | 127 |
Long-term debt and related current maturities | $ 19,837 | $ 13,578 |
FINANCIAL INSTRUMENTS AND FAI_5
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASURES 3 (Details) - Long-term Debt [Member] - Designated as Hedging Instrument [Member] - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Carrying Amount of the Hedged Item | $ 4,194 | $ 3,975 |
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Item | $ 244 | $ 25 |
FINANCIAL INSTRUMENTS AND FAI_6
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASURES 4 (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | ||||
Gain (loss) on interest rate swap agreements | $ 14 | $ 37 | $ 219 | $ 63 |
Foreign exchange mark-to-market (ncome) expense | 217 | $ (96) | (67) | $ (49) |
Cash collateral received | $ 420 | $ 420 |
FINANCIAL INSTRUMENTS AND FAI_7
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASURES 5 (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Revenue | $ 7,477,000,000 | $ 9,243,000,000 | $ 15,940,000,000 | $ 18,127,000,000 |
Cost of products and services sold | 5,276,000,000 | 6,094,000,000 | 10,810,000,000 | 11,973,000,000 |
SG&A | 1,183,000,000 | 1,387,000,000 | 2,421,000,000 | 2,750,000,000 |
Other (income) expense | (291,000,000) | (305,000,000) | (608,000,000) | (590,000,000) |
Interest and other financial charges | 90,000,000 | 85,000,000 | 163,000,000 | 170,000,000 |
Designated as Hedging Instrument [Member] | Foreign currency exchange contracts [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain or (loss) on net investment hedges recognized in Accumulated other comprehensive income (loss) | (102,000,000) | (2,000,000) | (18,000,000) | 5,000,000 |
Designated as Hedging Instrument [Member] | Gain or (loss) on cash flow hedges [Member] | Foreign currency exchange contracts [Member] | Revenue [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount reclassified from accumulated other comprehensive income into income | (1,000,000) | 1,000,000 | (1,000,000) | 1,000,000 |
Amount excluded from effectiveness testing recognized in earnings using an amortization approach | 0 | 0 | 0 | 0 |
Designated as Hedging Instrument [Member] | Gain or (loss) on cash flow hedges [Member] | Foreign currency exchange contracts [Member] | Cost of Products Sold [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount reclassified from accumulated other comprehensive income into income | 3,000,000 | 8,000,000 | 30,000,000 | 24,000,000 |
Amount excluded from effectiveness testing recognized in earnings using an amortization approach | 4,000,000 | 6,000,000 | 8,000,000 | 11,000,000 |
Designated as Hedging Instrument [Member] | Gain or (loss) on cash flow hedges [Member] | Foreign currency exchange contracts [Member] | SG&A [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount reclassified from accumulated other comprehensive income into income | (3,000,000) | 1,000,000 | (3,000,000) | 1,000,000 |
Amount excluded from effectiveness testing recognized in earnings using an amortization approach | 0 | 0 | 0 | 0 |
Designated as Hedging Instrument [Member] | Gain or (loss) on cash flow hedges [Member] | Foreign currency exchange contracts [Member] | Other (income) Expense [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount reclassified from accumulated other comprehensive income into income | (42,000,000) | 0 | (2,000,000) | 24,000,000 |
Amount excluded from effectiveness testing recognized in earnings using an amortization approach | 9,000,000 | 9,000,000 | 17,000,000 | 18,000,000 |
Designated as Hedging Instrument [Member] | Gain or (loss) on cash flow hedges [Member] | Foreign currency exchange contracts [Member] | Interest and Other Financial Charges [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount reclassified from accumulated other comprehensive income into income | 0 | 0 | 0 | 0 |
Amount excluded from effectiveness testing recognized in earnings using an amortization approach | 0 | 0 | 0 | 0 |
Designated as Hedging Instrument [Member] | Gain or (loss) on fair value hedges | Interest Rate Swap [Member] | Revenue [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Hedged items | 0 | 0 | 0 | 0 |
Derivatives designated as hedges | 0 | 0 | 0 | 0 |
Designated as Hedging Instrument [Member] | Gain or (loss) on fair value hedges | Interest Rate Swap [Member] | Cost of Products Sold [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Hedged items | 0 | 0 | 0 | 0 |
Derivatives designated as hedges | 0 | 0 | 0 | 0 |
Designated as Hedging Instrument [Member] | Gain or (loss) on fair value hedges | Interest Rate Swap [Member] | SG&A [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Hedged items | 0 | 0 | 0 | 0 |
Derivatives designated as hedges | 0 | 0 | 0 | 0 |
Designated as Hedging Instrument [Member] | Gain or (loss) on fair value hedges | Interest Rate Swap [Member] | Other (income) Expense [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Hedged items | 0 | 0 | 0 | 0 |
Derivatives designated as hedges | 0 | 0 | 0 | 0 |
Designated as Hedging Instrument [Member] | Gain or (loss) on fair value hedges | Interest Rate Swap [Member] | Interest and Other Financial Charges [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Hedged items | (14,000,000) | (37,000,000) | (219,000,000) | (63,000,000) |
Derivatives designated as hedges | 14,000,000 | 37,000,000 | 219,000,000 | 63,000,000 |
Designated as Hedging Instrument [Member] | Euro denominated long-term debt [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain or (loss) on net investment hedges recognized in Accumulated other comprehensive income (loss) | (62,000,000) | (43,000,000) | 62,000,000 | 26,000,000 |
Designated as Hedging Instrument [Member] | Net Investment Euro Denominated Commercial Paper [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain or (loss) on net investment hedges recognized in Accumulated other comprehensive income (loss) | (15,000,000) | (44,000,000) | 55,000,000 | 27,000,000 |
Designated as Hedging Instrument [Member] | Net Investment Cross Currency Swap [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain or (loss) on net investment hedges recognized in Accumulated other comprehensive income (loss) | 7,000,000 | (8,000,000) | (19,000,000) | 5,000,000 |
Products [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Revenue | 5,743,000,000 | 6,990,000,000 | 12,048,000,000 | 13,703,000,000 |
Cost of products and services sold | $ 4,163,000,000 | $ 4,848,000,000 | $ 8,537,000,000 | $ 9,470,000,000 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance at beginning of period | $ 18,706,000,000 | |
Balance at end of period | 18,366,000,000 | $ 18,060,000,000 |
Foreign Exchange Translation Adjustment [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance at beginning of period | (2,566,000,000) | (2,709,000,000) |
Other comprehensive income (loss) before reclassifications | (148,000,000) | 21,000,000 |
Amounts reclassified from accumulated other comprehensive income | (7,000,000) | (7,000,000) |
Net current period other comprehensive income (loss) | (155,000,000) | 14,000,000 |
Balance at end of period | (2,721,000,000) | (2,695,000,000) |
Pension and Other Postretirement Benefits Adjustments [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance at beginning of period | (675,000,000) | (761,000,000) |
Other comprehensive income (loss) before reclassifications | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income | (40,000,000) | (39,000,000) |
Net current period other comprehensive income (loss) | (40,000,000) | (39,000,000) |
Balance at end of period | (715,000,000) | (800,000,000) |
Changes in Fair Value of Cash Flow Hedges [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance at beginning of period | 44,000,000 | 33,000,000 |
Other comprehensive income (loss) before reclassifications | 104,000,000 | 48,000,000 |
Amounts reclassified from accumulated other comprehensive income | (22,000,000) | (39,000,000) |
Net current period other comprehensive income (loss) | 82,000,000 | 9,000,000 |
Balance at end of period | 126,000,000 | 42,000,000 |
AOCI Attributable to Parent [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance at beginning of period | (3,197,000,000) | (3,437,000,000) |
Other comprehensive income (loss) before reclassifications | (44,000,000) | 69,000,000 |
Amounts reclassified from accumulated other comprehensive income | (69,000,000) | (85,000,000) |
Net current period other comprehensive income (loss) | (113,000,000) | (16,000,000) |
Balance at end of period | $ (3,310,000,000) | $ (3,453,000,000) |
SEGMENT FINANCIAL DATA (Details
SEGMENT FINANCIAL DATA (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of Operating Segments | 4 | |||
Net Sales | $ 7,477 | $ 9,243 | $ 15,940 | $ 18,127 |
Total segment profit | 1,385 | 1,970 | 3,233 | 3,779 |
Products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 5,743 | 6,990 | 12,048 | 13,703 |
Services [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 1,734 | 2,253 | 3,892 | 4,424 |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Total segment profit | (25) | (72) | (66) | (148) |
Aerospace | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 2,543 | 3,508 | 5,904 | 6,849 |
Aerospace | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 2,543 | 3,508 | 5,904 | 6,849 |
Total segment profit | 528 | 907 | 1,465 | 1,745 |
Aerospace | Operating Segments [Member] | Products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 1,633 | 2,174 | 3,712 | 4,249 |
Aerospace | Operating Segments [Member] | Services [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 910 | 1,334 | 2,192 | 2,600 |
Performance Materials and Technologies | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 2,218 | 2,735 | 4,615 | 5,307 |
Performance Materials and Technologies | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 2,218 | 2,735 | 4,615 | 5,307 |
Total segment profit | 419 | 644 | 931 | 1,208 |
Performance Materials and Technologies | Operating Segments [Member] | Products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 1,793 | 2,238 | 3,707 | 4,308 |
Performance Materials and Technologies | Operating Segments [Member] | Services [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 425 | 497 | 908 | 999 |
Honeywell Building Technologies | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 1,177 | 1,450 | 2,458 | 2,839 |
Honeywell Building Technologies | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 1,177 | 1,450 | 2,458 | 2,839 |
Total segment profit | 250 | 300 | 512 | 571 |
Honeywell Building Technologies | Operating Segments [Member] | Products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 865 | 1,119 | 1,835 | 2,192 |
Honeywell Building Technologies | Operating Segments [Member] | Services [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 312 | 331 | 623 | 647 |
Safety and Productivity Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 1,539 | 1,550 | 2,963 | 3,132 |
Safety and Productivity Solutions | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 1,539 | 1,550 | 2,963 | 3,132 |
Total segment profit | 213 | 191 | 391 | 403 |
Safety and Productivity Solutions | Operating Segments [Member] | Products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 1,452 | 1,459 | 2,794 | 2,954 |
Safety and Productivity Solutions | Operating Segments [Member] | Services [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | $ 87 | $ 91 | $ 169 | $ 178 |
SEGMENT FINANCIAL DATA 2 (Detai
SEGMENT FINANCIAL DATA 2 (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract] | ||||
Total segment profit | $ 1,385 | $ 1,970 | $ 3,233 | $ 3,779 |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Interest and other financial charges | (90) | (85) | (163) | (170) |
Repositioning and other charges | (280) | (126) | (342) | (210) |
Income before taxes | 1,219 | 1,982 | 3,154 | 3,824 |
Segment Reconciling Items [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Interest and other financial charges | (90) | (85) | (163) | (170) |
Stock compensation expense | (34) | (34) | (78) | (75) |
Repositioning and other charges | (280) | (126) | (342) | (210) |
Other | 26 | 98 | 81 | 178 |
Income before taxes | 1,219 | 1,982 | 3,154 | 3,824 |
Segment Reconciling Items [Member] | Pension [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Pension ongoing income | 198 | 148 | 396 | 299 |
Segment Reconciling Items [Member] | Other Postretirement [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Pension ongoing income | 14 | 11 | 27 | 23 |
Corporate | ||||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract] | ||||
Total segment profit | (25) | (72) | (66) | (148) |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Repositioning and other charges | $ (45) | $ (45) | $ (44) | $ (101) |
PENSION BENEFITS (Details)
PENSION BENEFITS (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Payments for Repurchase of Common Stock | $ 1,985,000,000 | $ 2,650,000,000 | ||
United States, Defined Benefit [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Payments for Repurchase of Common Stock | $ 100,000,000 | 100,000,000 | 200,000,000 | |
Service cost | $ 24,000,000 | 21,000,000 | 49,000,000 | 42,000,000 |
Interest cost | 115,000,000 | 154,000,000 | 230,000,000 | 307,000,000 |
Expected return on plan assets | (283,000,000) | (279,000,000) | (567,000,000) | (558,000,000) |
Amortization of prior service (credit) | (10,000,000) | (11,000,000) | (21,000,000) | (22,000,000) |
Net periodic benefit (income) | (154,000,000) | (115,000,000) | (309,000,000) | (231,000,000) |
Non-US, Defined Benefit [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 5,000,000 | 6,000,000 | 11,000,000 | 12,000,000 |
Interest cost | 26,000,000 | 36,000,000 | 52,000,000 | 72,000,000 |
Expected return on plan assets | (81,000,000) | (83,000,000) | (165,000,000) | (167,000,000) |
Amortization of prior service (credit) | 0 | 0 | 0 | 0 |
Net periodic benefit (income) | $ (50,000,000) | $ (41,000,000) | $ (102,000,000) | $ (83,000,000) |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
Accrual for Environmental Loss Contingencies [Roll Forward] | |||
Beginning of period | $ 709 | ||
Accruals for environmental matters deemed probable and reasonably estimable | 83 | ||
Environmental liability payments | (79) | ||
Other | (4) | ||
End of period | 709 | ||
Loss Contingency, Classification of Accrual [Abstract] | |||
Accrued liabilities | $ 222 | $ 222 | |
Other liabilities | 487 | 487 | |
Total environmental liabilities | $ 709 | $ 709 | $ 709 |
COMMITMENTS AND CONTINGENCIES 2
COMMITMENTS AND CONTINGENCIES 2 (Details) | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Asbestos Related Liabilities [Member] | |
Loss Contingency Accrual [Roll Forward] | |
Asbestos Related Liabilities, Beginning of Period | $ 2,357,000,000 |
Accrual for update to estimated liability | 41,000,000 |
Asbestos related liability payments | (142,000,000) |
Asbestos Related Liabilities, End of Period | 2,256,000,000 |
Asbestos Related Liabilities Insurance Recoveries [Line Items] | |
Insurance Recoveries, beginning of period | 434,000,000 |
Insurance receipts for asbestos related liabilities | (13,000,000) |
Insurance receivables settlements | 0 |
Insurance recoveries, end of period | 421,000,000 |
Bendix Asbestos Loss Contingency Liability [Member] | |
Loss Contingency Accrual [Roll Forward] | |
Asbestos Related Liabilities, Beginning of Period | 1,499,000,000 |
Accrual for update to estimated liability | 31,000,000 |
Asbestos related liability payments | (100,000,000) |
Asbestos Related Liabilities, End of Period | 1,430,000,000 |
Asbestos Related Liabilities Insurance Recoveries [Line Items] | |
Insurance Recoveries, beginning of period | 153,000,000 |
Insurance receipts for asbestos related liabilities | (6,000,000) |
Insurance receivables settlements | 0 |
Insurance recoveries, end of period | 147,000,000 |
Narco Asbestos Loss Contingency Liability [Member] | |
Loss Contingency Accrual [Roll Forward] | |
Asbestos Related Liabilities, Beginning of Period | 858,000,000 |
Accrual for update to estimated liability | 10,000,000 |
Asbestos related liability payments | (42,000,000) |
Asbestos Related Liabilities, End of Period | 826,000,000 |
Asbestos Related Liabilities Insurance Recoveries [Line Items] | |
Insurance Recoveries, beginning of period | 281,000,000 |
Insurance receipts for asbestos related liabilities | (7,000,000) |
Insurance receivables settlements | 0 |
Insurance recoveries, end of period | $ 274,000,000 |
COMMITMENTS AND CONTINGENCIES 3
COMMITMENTS AND CONTINGENCIES 3 (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Loss Contingency, Narco and Bendix Asbestos Related Balances by Balance Sheet Caption [Line Items] | ||
Insurance recoveries for asbestos related liabilities | $ 379 | $ 392 |
Asbestos related liabilities | 1,894 | 1,996 |
Asbestos Related Liabilities [Member] | ||
Loss Contingency, Narco and Bendix Asbestos Related Balances by Balance Sheet Caption [Line Items] | ||
Other current assets | 42 | 42 |
Insurance recoveries for asbestos related liabilities | 379 | 392 |
Total assets | 421 | 434 |
Accrued liabilities | 362 | 361 |
Asbestos related liabilities | 1,894 | 1,996 |
Total liabilities | $ 2,256 | $ 2,357 |
COMMITMENTS AND CONTINGENCIES 4
COMMITMENTS AND CONTINGENCIES 4 (Details) - USD ($) $ in Millions | 6 Months Ended | ||||
Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2013 | Dec. 31, 2006 | Dec. 31, 2002 | |
Asbestos Related Liabilities [Member] | |||||
Loss Contingency By Nature Of Contingency [Line Items] | |||||
Loss Contingency Accrual | $ 2,256 | $ 2,357 | |||
Loss Contingency, Receivable | 421 | 434 | |||
Bendix Asbestos Loss Contingency Liability [Member] | |||||
Loss Contingency By Nature Of Contingency [Line Items] | |||||
Loss Contingency Accrual | 1,430 | 1,499 | |||
Loss Contingency, Receivable | 147 | 153 | |||
Narco Asbestos Loss Contingency Liability [Member] | |||||
Loss Contingency By Nature Of Contingency [Line Items] | |||||
Loss Contingency Accrual | 826 | 858 | |||
Loss Contingency, Receivable | 274 | $ 281 | |||
Estimated liability | $ 3,200 | ||||
Change in NARCO Trust liability. | $ (207) | ||||
Annual Trust Cap | 145 | ||||
Exceptions To Cap [Abstract] | |||||
Value Not Included In Cap | 100 | ||||
Narco Asbestos Loss Contingency Liability [Member] | Minimum [Member] | |||||
Loss Contingency By Nature Of Contingency [Line Items] | |||||
Estimated liability | 743 | ||||
Narco Asbestos Loss Contingency Liability [Member] | Maximum [Member] | |||||
Loss Contingency By Nature Of Contingency [Line Items] | |||||
Estimated liability | 961 | ||||
Pre-bankruptcy NARCO Liability [Member] | |||||
Loss Contingency By Nature Of Contingency [Line Items] | |||||
Loss Contingency Accrual | 147 | ||||
Estimated liability | 2,200 | ||||
Change in NARCO Trust liability. | (2,000) | ||||
NARCO Trust Liability [Member] | |||||
Loss Contingency By Nature Of Contingency [Line Items] | |||||
Loss Contingency Accrual | 679 | ||||
Estimated liability | $ 743 | $ 743 | 950 | ||
Other NARCO bankruptcy-related obligations [Member] | |||||
Loss Contingency By Nature Of Contingency [Line Items] | |||||
Estimated liability | $ 73 | ||||
Annual Contribution Claims [Member] | |||||
Loss Contingency By Nature Of Contingency [Line Items] | |||||
Change in NARCO Trust liability. | (64) | ||||
Exceptions To Cap [Abstract] | |||||
Settlement payments | $ 35 |
COMMITMENTS AND CONTINGENCIES 5
COMMITMENTS AND CONTINGENCIES 5 (Details) - Bendix Asbestos Loss Contingency Liability [Member] - claim | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Loss Contingency Claims [Abstract] | |||
Claims unresolved at the beginning of period | 6,480 | 6,209 | 6,280 |
Claims filed during the period | 1,013 | 2,659 | 2,430 |
Claims resolved during the period | (1,195) | (2,388) | (2,501) |
Claims unresolved at the end of period | 6,298 | 6,480 | 6,209 |
COMMITMENTS AND CONTINGENCIES 6
COMMITMENTS AND CONTINGENCIES 6 (Details) - Bendix Asbestos Loss Contingency Liability [Member] - claim | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Loss Contingency Disease Distribution Of Unresolved Claims [Line Items] | ||||
Mesothelioma and other cancer claims | 3,278 | 3,399 | 2,949 | |
Nonmalignant claims | 3,020 | 3,081 | 3,260 | |
Total claims | 6,298 | 6,480 | 6,209 | 6,280 |
COMMITMENTS AND CONTINGENCIES 7
COMMITMENTS AND CONTINGENCIES 7 (Details) - $ / claims | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Resolution Values Per Claim [Line Items] | |||||
Malignant claims | 50,200 | 55,300 | 56,000 | 44,000 | 44,000 |
Nonmalignant claims | 3,900 | 4,700 | 2,800 | 4,485 | 100 |
COMMITMENTS AND CONTINGENCIES 8
COMMITMENTS AND CONTINGENCIES 8 (Details) € in Millions, $ in Millions | 6 Months Ended | 7 Months Ended | 12 Months Ended | |
Jun. 30, 2020USD ($) | Jul. 30, 2020USD ($) | Dec. 31, 2020USD ($) | Jun. 30, 2020EUR (€) | |
Resideo [Member] | Environmental Liabilities [Member] | ||||
Loss Contingencies [Line Items] | ||||
Indemnification and reimbursement agreement annual cap | $ 140 | |||
Indemnification and reimbursement agreement minimum amount | 25 | |||
Reimbursements from indemnification and reimbursement agreement | 35 | |||
Reimbursement receivable indemnification and reimbursement agreement | 69 | |||
Indemnity and reimbursement receivable recorded In Other Current Assets | 140 | |||
Indemnity and reimbursement receivable recorded In Other Assets | 479 | |||
Resideo [Member] | Environmental Liabilities [Member] | Forecast [Member] | Original Due Date April 30, 2020 [Member] | ||||
Loss Contingencies [Line Items] | ||||
Reimbursements from indemnification and reimbursement agreement | $ 35 | |||
Resideo [Member] | Environmental Liabilities [Member] | Forecast [Member] | Original Due Date May 30, 2020 [Member] | ||||
Loss Contingencies [Line Items] | ||||
Indemnification And Reimbursement Agreement Royalty Income | $ 7 | |||
Garrett [Member] | Bendix Asbestos Loss Contingency Liability [Member] | ||||
Loss Contingencies [Line Items] | ||||
Indemnification and reimbursement agreement annual cap | 175 | € 150 | ||
Indemnification and reimbursement agreement minimum amount | 25 | |||
Reimbursements from indemnification and reimbursement agreement | 36 | |||
Reimbursement receivable indemnification and reimbursement agreement | 26 | |||
Indemnity and reimbursement receivable recorded In Other Current Assets | 2 | |||
Indemnity and reimbursement receivable recorded In Other Assets | $ 1,068 | |||
Garrett [Member] | Bendix Asbestos Loss Contingency Liability [Member] | Forecast [Member] | Original Due Date April 1, 2020 [Member] | ||||
Loss Contingencies [Line Items] | ||||
Reimbursements from indemnification and reimbursement agreement | $ 18 | |||
Garrett [Member] | Bendix Asbestos Loss Contingency Liability [Member] | Forecast [Member] | Original Due Date May 1, 2020 [Member] | ||||
Loss Contingencies [Line Items] | ||||
Reimbursements from indemnification and reimbursement agreement | $ 2 |