Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 26, 2018 | Jun. 30, 2017 | |
Document And Entity Information [Abstract] | |||
Document type | 10-K | ||
Document period end date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Amendment flag | false | ||
Entity registrant name | Honeywell International Inc | ||
Entity central index key | 773,840 | ||
Entity current reporting status | Yes | ||
Entity voluntary filers | No | ||
Current fiscal year end date | --12-31 | ||
Entity filer category | Large Accelerated Filer | ||
Entity well known seasoned issuer | Yes | ||
Entity common stock shares outstanding | 752,002,033 | ||
Entity public float | $ 101.4 | ||
Entity tax identification number | 222,640,650 |
CONSOLIDATED STATEMENT OF OPERA
CONSOLIDATED STATEMENT OF OPERATIONS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Consolidated Statement of Operations | |||
Product sales | $ 32,317 | $ 31,362 | $ 30,695 |
Service sales | 8,217 | 7,940 | 7,886 |
Net Sales | 40,534 | 39,302 | 38,581 |
Costs, expenses and other | |||
Cost of products sold | 22,659 | 22,170 | 21,775 |
Cost of services sold | 4,916 | 4,980 | 4,972 |
Cost of products and services sold | 27,575 | 27,150 | 26,747 |
Selling, general and administrative expenses | 5,808 | 5,469 | 5,006 |
Other (income) expense | (67) | (102) | (68) |
Interest and other financial charges | 316 | 338 | 310 |
Cost, operating and non-operating expenses | 33,632 | 32,855 | 31,995 |
Income before taxes | 6,902 | 6,447 | 6,586 |
Tax expense | 5,204 | 1,601 | 1,739 |
Net income | 1,698 | 4,846 | 4,847 |
Less: Net income attributable to the noncontrolling interest | 43 | 37 | 79 |
Net income attributable to Honeywell | $ 1,655 | $ 4,809 | $ 4,768 |
Earnings per share of common stock - basic | $ 2.17 | $ 6.29 | $ 6.11 |
Earnings per share of common stock - assuming dilution | 2.14 | 6.2 | 6.04 |
Cash dividends per share of common stock | $ 2.74 | $ 2.45 | $ 2.15 |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income | $ 1,698 | $ 4,846 | $ 4,847 |
Other Comprehensive Income (Loss), Net Of Tax [Abstract] | |||
Foreign exchange translation adjustment | (37) | (52) | (1,152) |
Actuarial gains (losses) | 753 | (443) | (464) |
Prior service (cost) credit | (59) | (18) | 446 |
Prior service credit recognized during year | (70) | (78) | (13) |
Actuarial losses recognized during year | 83 | 236 | 72 |
Settlements and curtailments | 19 | (5) | 2 |
Foreign exchange translation and other | (49) | 73 | 41 |
Pensions and other postretirement benefit adjustments | 677 | (235) | 84 |
Effective portion of cash flow hedges recognized in other comprehensive income | (101) | 103 | 91 |
Less: Reclassification adjustment for (losses) gains included in net income | 60 | (5) | 99 |
Changes in fair value of effective cash flow hedges | (161) | 108 | (8) |
Other comprehensive income (loss), net of tax | 479 | (179) | (1,076) |
Comprehensive income | 2,177 | 4,667 | 3,771 |
Less: Comprehensive income attributable to the noncontrolling interest | 51 | 29 | 73 |
Comprehensive income attributable to Honeywell | $ 2,126 | $ 4,638 | $ 3,698 |
CONSOLIDATED BALANCE SHEET
CONSOLIDATED BALANCE SHEET - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 7,059 | $ 7,843 |
Short-term investments | 3,758 | 1,520 |
Accounts receivable - net | 8,866 | 8,177 |
Inventories | 4,613 | 4,366 |
Other current assets | 1,706 | 1,152 |
Total current assets | 26,002 | 23,058 |
Investments and long-term receivables | 667 | 587 |
Property, plant and equipment - net | 5,926 | 5,793 |
Goodwill | 18,277 | 17,707 |
Other intangible assets - net | 4,496 | 4,634 |
Insurance recoveries for asbestos related liabilities | 411 | 417 |
Deferred income taxes | 236 | 347 |
Other assets | 3,372 | 1,603 |
Total assets | 59,387 | 54,146 |
Current liabilities: | ||
Accounts payable | 6,584 | 5,690 |
Commercial paper and other short-term borrowings | 3,958 | 3,366 |
Current maturities of long-term debt | 1,351 | 227 |
Accrued liabilities | 6,968 | 7,048 |
Total current liabilities | 18,861 | 16,331 |
Long-term debt | 12,573 | 12,182 |
Deferred income taxes | 2,894 | 486 |
Postretirement benefit obligations other than pensions | 512 | 473 |
Asbestos related liabilities | 1,173 | 1,014 |
Other liabilities | 5,930 | 4,110 |
Redeemable noncontrolling interest | 5 | 3 |
SHAREOWNERS' EQUITY | ||
Capital - common stock issued | 958 | 958 |
Capital - additional paid in capital | 6,212 | 5,781 |
Common stock held in treasury, at cost | (15,914) | (13,366) |
Accumulated other comprehensive income (loss) | (2,235) | (2,714) |
Retained earnings | 28,255 | 28,710 |
Total Honeywell shareowners' equity | 17,276 | 19,369 |
Noncontrolling interest | 163 | 178 |
Total shareowners' equity | 17,439 | 19,547 |
Total liabilities, redeemable noncontrolling interest, and shareowners' equity | $ 59,387 | $ 54,146 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | |||
Net income | $ 1,698,000,000 | $ 4,846,000,000 | $ 4,847,000,000 |
Less: Net income attributable to the noncontrolling interest | 43,000,000 | 37,000,000 | 79,000,000 |
Net income attributable to Honeywell | 1,655,000,000 | 4,809,000,000 | 4,768,000,000 |
Adjustments to reconcile net income attributable to Honeywell to net cash provided by operating activities: | |||
Depreciation | 717,000,000 | 726,000,000 | 672,000,000 |
Amortization | 398,000,000 | 304,000,000 | 211,000,000 |
(Gain) loss on sale of non-strategic businesses and assets | 7,000,000 | (178,000,000) | 1,000,000 |
Repositioning and other charges | 1,021,000,000 | 695,000,000 | 546,000,000 |
Net payments for repositioning and other charges | (628,000,000) | (625,000,000) | (537,000,000) |
Pension and other postretirement (income) expense | (647,000,000) | (360,000,000) | (323,000,000) |
Pension and other postretirement benefit payments | (106,000,000) | (143,000,000) | (122,000,000) |
Stock compensation expense | 176,000,000 | 184,000,000 | 175,000,000 |
Deferred income taxes | 2,294,000,000 | 76,000,000 | 315,000,000 |
Excess tax benefits from share based payment arrangements | 0 | 0 | (81,000,000) |
Other | 1,642,000,000 | 194,000,000 | 57,000,000 |
Changes in assets and liabilities, net of the effects of acquisitions and divestitures: | |||
Accounts receivable | (682,000,000) | (547,000,000) | 201,000,000 |
Inventories | (259,000,000) | (18,000,000) | 230,000,000 |
Other current assets | (568,000,000) | (106,000,000) | 90,000,000 |
Accounts payable | 924,000,000 | 254,000,000 | (17,000,000) |
Accrued liabilities | 22,000,000 | 233,000,000 | (667,000,000) |
Net cash provided by operating activities | 5,966,000,000 | 5,498,000,000 | 5,519,000,000 |
Cash flows from investing activities: | |||
Expenditures for property, plant and equipment | (1,031,000,000) | (1,095,000,000) | (1,073,000,000) |
Proceeds from disposals of property, plant and equipment | 86,000,000 | 21,000,000 | 15,000,000 |
Increase in investments | (6,743,000,000) | (3,954,000,000) | (6,714,000,000) |
Decrease in investments | 4,414,000,000 | 3,681,000,000 | 6,587,000,000 |
Cash paid for acquisitions, net of cash acquired | (82,000,000) | (2,573,000,000) | (5,228,000,000) |
Proceeds from sales of businesses, net of fees paid | 0 | 296,000,000 | 1,000,000 |
Other | (218,000,000) | 282,000,000 | (102,000,000) |
Net cash used for investing activities | (3,574,000,000) | (3,342,000,000) | (6,514,000,000) |
Cash flows from financing activities: | |||
Proceeds from issuance of commercial paper and other short-term borrowings | 13,701,000,000 | 18,997,000,000 | 12,992,000,000 |
Payments of commercial paper and other short-term borrowings | (13,532,000,000) | (21,461,000,000) | (8,727,000,000) |
Proceeds from issuance of common stock | 520,000,000 | 409,000,000 | 186,000,000 |
Proceeds from issuance of long-term debt | 1,238,000,000 | 9,245,000,000 | 60,000,000 |
Payments of long-term debt | (292,000,000) | (2,839,000,000) | (880,000,000) |
Excess tax benefits from share based payment arrangements | 0 | 0 | 81,000,000 |
Repurchases of common stock | (2,889,000,000) | (2,079,000,000) | (1,884,000,000) |
Cash dividends paid | (2,119,000,000) | (1,915,000,000) | (1,726,000,000) |
Payments to purchase the noncontrolling interest | 0 | (238,000,000) | 0 |
AdvanSix pre-separation funding | 0 | 269,000,000 | 0 |
AdvanSix pre-spin borrowing | 0 | 38,000,000 | 0 |
AdvanSix cash at spinoff | 0 | (38,000,000) | 0 |
Other | (143,000,000) | (42,000,000) | (65,000,000) |
Net cash (used for) provided by financing activities | (3,516,000,000) | 346,000,000 | 37,000,000 |
Effect of foreign exchange rate changes on cash and cash equivalents | 340,000,000 | (114,000,000) | (546,000,000) |
Net (decrease) increase in cash and cash equivalents | (784,000,000) | 2,388,000,000 | (1,504,000,000) |
Cash and cash equivalents at beginning of period | 7,843,000,000 | 5,455,000,000 | 6,959,000,000 |
Cash and cash equivalents at end of period | $ 7,059,000,000 | $ 7,843,000,000 | $ 5,455,000,000 |
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] | Accumulated Other Comprehensive Income (Loss) [Member] | Noncontrolling Interest [Member] |
Balance at, beginning of period at Dec. 31, 2014 | $ 5,038,000,000 | $ (9,995,000,000) | $ 23,115,000,000 | $ (1,459,000,000) | $ 127,000,000 | ||
Treasury Stock, Shares, Beginning Balance at Dec. 31, 2014 | (175,400,000) | ||||||
Reacquired stock or repurchases of common stock | $ (1,884,000,000) | ||||||
Reacquired stock or repurchases of common stock, shares | (18,800,000) | ||||||
Issued for employee savings and option plans | 164,000,000 | $ 215,000,000 | |||||
Issued for employee savings and option plans, shares | 6,700,000 | ||||||
Stock-based compensation expense | 175,000,000 | ||||||
Other owner changes | 0 | $ 0 | 2,000,000 | ||||
Other owner changes, shares | 300,000 | ||||||
Net income attributable to Honeywell | $ 4,768,000,000 | 4,768,000,000 | |||||
Dividends on common stock | (1,686,000,000) | ||||||
Redemption value adjustment | (50,000,000) | ||||||
Foreign exchange translation adjustment | (1,152,000,000) | (1,152,000,000) | (6,000,000) | ||||
Dividends paid | (26,000,000) | ||||||
Pensions and other postretirement benefit adjustments | 84,000,000 | 84,000,000 | |||||
Changes in fair value of effective cash flow hedges | (8,000,000) | (8,000,000) | |||||
Acquisitions | 3,000,000 | ||||||
AdvanSix spin-off | 0 | ||||||
Net income attributable to the noncontrolling interest | 79,000,000 | 35,000,000 | |||||
Balance at, end of period at Dec. 31, 2015 | $ 18,418,000,000 | $ 958,000,000 | 5,377,000,000 | $ (11,664,000,000) | 26,147,000,000 | (2,535,000,000) | 135,000,000 |
Treasury Stock, Shares, Ending Balance at Dec. 31, 2015 | (187,200,000) | ||||||
Common Stock Shares Issued | 957,600,000 | ||||||
Common stock, shares | 770,400,000 | ||||||
Reacquired stock or repurchases of common stock | $ (2,079,000,000) | $ (2,079,000,000) | |||||
Reacquired stock or repurchases of common stock, shares | (19,300,000) | (19,300,000) | |||||
Issued for employee savings and option plans | 183,000,000 | $ 377,000,000 | |||||
Issued for employee savings and option plans, shares | 9,700,000 | ||||||
Stock-based compensation expense | 171,000,000 | ||||||
Other owner changes | 50,000,000 | $ 0 | 30,000,000 | ||||
Other owner changes, shares | 0 | ||||||
Net income attributable to Honeywell | $ 4,809,000,000 | 4,809,000,000 | |||||
Dividends on common stock | (1,883,000,000) | ||||||
Redemption value adjustment | (1,000,000) | ||||||
Foreign exchange translation adjustment | (52,000,000) | (52,000,000) | (8,000,000) | ||||
Dividends paid | (17,000,000) | ||||||
Pensions and other postretirement benefit adjustments | (235,000,000) | (235,000,000) | |||||
Changes in fair value of effective cash flow hedges | 108,000,000 | 108,000,000 | |||||
Acquisitions | 1,000,000 | ||||||
AdvanSix spin-off | (362,000,000) | ||||||
Net income attributable to the noncontrolling interest | 37,000,000 | 37,000,000 | |||||
Balance at, end of period at Dec. 31, 2016 | $ 19,547,000,000 | $ 958,000,000 | 5,781,000,000 | $ (13,366,000,000) | 28,710,000,000 | (2,714,000,000) | 178,000,000 |
Treasury Stock, Shares, Ending Balance at Dec. 31, 2016 | (196,800,000) | ||||||
Common Stock Shares Issued | 957,600,000 | ||||||
Common stock, shares | 760,800,000 | ||||||
Reacquired stock or repurchases of common stock | $ (2,889,000,000) | $ (2,889,000,000) | |||||
Reacquired stock or repurchases of common stock, shares | (20,500,000) | (20,500,000) | |||||
Issued for employee savings and option plans | 255,000,000 | $ 341,000,000 | |||||
Issued for employee savings and option plans, shares | 10,600,000 | ||||||
Stock-based compensation expense | 176,000,000 | ||||||
Other owner changes | 0 | $ 0 | (11,000,000) | ||||
Other owner changes, shares | 0 | ||||||
Net income attributable to Honeywell | $ 1,655,000,000 | 1,655,000,000 | |||||
Dividends on common stock | (2,101,000,000) | ||||||
Redemption value adjustment | 0 | ||||||
Foreign exchange translation adjustment | (37,000,000) | (37,000,000) | 8,000,000 | ||||
Dividends paid | (55,000,000) | ||||||
Pensions and other postretirement benefit adjustments | 677,000,000 | 677,000,000 | |||||
Changes in fair value of effective cash flow hedges | (161,000,000) | (161,000,000) | |||||
Acquisitions | 0 | ||||||
AdvanSix spin-off | (9,000,000) | ||||||
Net income attributable to the noncontrolling interest | 43,000,000 | 43,000,000 | |||||
Balance at, end of period at Dec. 31, 2017 | $ 17,439,000,000 | $ 958,000,000 | $ 6,212,000,000 | $ (15,914,000,000) | $ 28,255,000,000 | $ (2,235,000,000) | $ 163,000,000 |
Treasury Stock, Shares, Ending Balance at Dec. 31, 2017 | (206,700,000) | ||||||
Common Stock Shares Issued | 957,600,000 | ||||||
Common stock, shares | 750,900,000 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2017 | |
Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 1 . Summary of Significant Accounting Policies Accounting Principles —The financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America . The following is a description of Honeywell’s significant accounting policies. Principles of Consolidation —The consolidated financial statements include the accounts of Honeywell International Inc. and all of its subsidiaries and entities in which a controlling interest is m aintained. Our consolidation policy requires equity investments that we exercise significant influence over but do not control the investee and are not the primary beneficiary of the investee’s activities to be accounted for using the equity method. Inves tments through which we are not able to exercise significant influence over the investee and which we do not have readily determinable fair values are accounted for under the cost method. All intercompany transactions and balances are eliminated in consol idation . Property, Plant and Equipment —Property, plant and equipment are recorded at cost, including any asset retirement obligations, less accumulated depreciation. For financial reporting, the straight-line method of depreciation is used over the estimat ed useful lives of 10 to 50 years for buildings and improvements and 2 to 16 years for machinery and equipment. Recognition of the fair value of obligations associated with the retirement of tangible long-lived assets is required when there is a legal obli gation to incur such costs. Upon initial recognition of a liability, the cost is capitalized as part of the related long-lived asset and depreciated over the corresponding asset’s useful life. Goodwill and Indefinite-Lived Intangible Assets —Goodwill and in definite - lived intangible assets are subject to impairment tes ting annually as of March 31, and whenever events or changes in circumstances indicate that the carrying amount may not be fully recoverable. This testing compares carrying values to fair values and, when appropriate, the carrying value of these assets is reduced to fair value. We completed our annual goodwill impairment test as of March 31, 2017 and determined that there was no impairm ent as of that date. Other Intangible Assets with Determin able Lives —Other intangible assets with determinable lives consist of customer lists, technology, patents and trademarks and other intangibles and are amortized over their estimated useful lives, ranging from 2 to 24 years. Sales Recognition —Product and service sales are recognized when persuasive evidence of an arrangement exists, product delivery has occurred or services have been rendered, pricing is fixed or determinable, and collection is reasonably assured. Service sales, principally representing re pair, maintenance an d engineering activities are recognized over the contractual period or as services are rendered. Sales under long- term contracts are recorded on a percentage-of-completion method measured on the cost-to-cost basis for engineering-type c ontracts and the units-of-delivery basis for production-type contracts. Provisions for anticipated losses on long-term contracts are recorded in full when such losses become evident. Revenues from contracts with multiple element arrangements are recognized as each element is earned based on the relative fair value of each element provided the delivered elements have value to customers on a standalone basis. Amounts allocated to each element are based on its objectively determined fair value, such as the sal es price for the product or service when it is sold separately or competitor prices for similar products or services. Environmental — We accrue costs related to environmental matters when it is probable that we have incurred a liability related to a contamin ated site and the amount can be reasonably estimated. For additional information, see Note 19 Commitments and Contingencies . Asbestos Related Contingencies and Insurance Recoveries —We recognize a liability for any asbestos related contingency that is pr obable of occurrence and reasonably estimable. In connection with the recognition of liabilities for asbestos related matters, we record asbestos related insurance recoveries that are deemed probable. For additional information, see Note 19 Commitments and Contingencies . Aerospace Sales Incentives —We provide sales incentives to commercial aircraft manufacturers and airlines in connection with their selection of our aircraft equipment, predominately wheel and braking system hardware , avionics, and auxilia ry power units, for installation on commercial aircraf t. These incentives consist of free or deeply discounted products, credits for future purchases of product and upfront cash payments . T hese costs are recognized in the period incurred as cost of product s sold or as a reduction to sales, as appropriate. Research and Development —Research and development costs for company-sponsored research and development projects are expensed as incurred. Such cos ts are principally included in cost of p roducts s old and were $ 1,835 million , $ 1,864 million and $ 1,856 million in 2017 , 2016 and 2015 . The 2016 research and development costs previously disclosed have been revised to reflect the amounts recorded in the 2016 Consolidated Stateme nt of Operations and had no impact on the results of operations. Stock-Based Compensation Plans —The principal awards issued under our stock-based compensation plans, which are described in Note 18 Stock-Based Compensation Plans, are non-qualified stock options a nd restricted stock units . The cost for such awards is measured at the grant date based on the fair value of the award. The value of the portion of the award that is ultimately expected to vest is recognized as expense over th e requisite service periods (generally the vesting period of the equity award) and is included in selling, general and administrative expense s . Forfeitures are estimated at the time o f grant to recognize expense for those award s that are expected to vest a nd are based on our historical forfeiture rates . Pension Benefits — We recognize net actuarial gains or losses in excess of 10 % of t he greater of the fair value of plan assets or the plans’ projected benefit obligation (the corridor) annually in the fourth q uarter each year (MTM Adjustment) , and, if applicable, in any quarter in which an interim remeasurement is triggered . The remaining components of pension (income) expense, primarily service and interest costs and assumed return on plan assets, are recogni zed on a quarterly basis ( Pension ongoing (income) expense ). Foreign Currency Translation — Assets and liabilities of subsidiaries operating outside the United States with a functional currency other than U.S. Dollars are translated into U.S. Dollars usin g year-end exchange rates. Sales, costs and expenses are translated at the average exchange rates in effect during the year. Foreign currency translation gains and losses are included as a component of Accumulated other comprehensive income (loss). For sub sidiaries operating in highly inflationary environments, inventories and property, plant and equipment, including related expenses, are remeasured at the exchange rate in effect on the date the assets were acquired, while monetary assets and liabilities ar e remeasured at year-end exchange rates. Remeasurement adjustments for these subsidiaries are included in earnings. Derivative Financial Instruments — We minimize our risks from interest and foreign currency exchange rate fluctuations through our normal ope rating and financing activities and, when deemed appropriate through the use of derivative financial instruments. Derivative financial instruments are used to manage risk and are not used for trading or other speculative purposes. We do not use leveraged d erivative financial instruments. Derivative financial instruments that qualify for hedge accounting must be designated and effective as a hedge of the identified risk exposure at the inception of the contract. Accordingly, changes in fair value of the deri vative contract must be highly correlated with changes in fair value of the underlying hedged item at inception of the hedge and over the life of the hedge contract. All derivatives are recorded on the balance sheet as assets or liabilities and measured at fair value. For derivatives designated as hedges of the fair value of assets or liabilities, the changes in fair values of both the derivatives and the hedged items are recorded in current earnings. For derivatives designated as cash flow hedges, the effective portion of the changes in fair value of the derivatives are recorded in Accumulated other comprehensive income (loss) and subsequently recognized in earnings wh en the hedged items impact earnings. Cash flows of such derivative financial instruments are classified consistent with the underlying hedged item . For derivative instruments that are designated and qualify as a net investment hedge, the effective portion of the derivative's gain or loss is reported as a component of Other comprehensive income (loss) and recorded in accumulated other comprehensive income. The gain or loss will be subsequently reclassified into net earnings when the hedged net investment is either sold or substantially liquidated . Income Taxes — Significant judgment is required in evaluating tax positions. We establish additional reserves for income taxes when, despite the belief that tax positions are fully supportable, there remain certain positions that do not meet the minimum recognition threshold. The approach for evaluating certain and uncertain tax positions is defined by the authoritative guidance which determines when a tax position is more likely than not to be sustained upon examina tion by the applicable taxing authority. In the normal course of business, the Company and its subsidiaries are examined by various federal, state and foreign tax authorities. We regularly assess the potential outcomes of these examinations and any future examinations for the current or prior years in determining the adequacy of our provision for income taxes. We continually assess the likelihood and amount of potential adjustments and adjust the income tax provision, the current tax liability and deferred taxes in the period in which the facts that give rise to a change in estimate become known. Cash and cash equivalents — Cash and cash equivalents include cash on hand and highly liquid investments having an original maturity of three months or less. Earni ngs Per Share —Basic earnings per share is based on the weighted average number of common shares outstanding. Diluted earnings per share is based on the weighted average number of common shares outstanding and all dilutive potential common shares outstandin g. Reclassifications —Certain prior year amounts have been reclassified to conform to the current year presentation. Recent Accounting Pronouncements —We consider the applicability and impact of all Accounting Standards Updates (ASUs) issued by the Financ ial 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 s tatements). In May 2014, and in following related amendments, the FASB issued guidance on revenue from contracts with customers that supersedes upon adoption previous revenue recognition guidance, including industry-specific guidance. The underlying princi ple requires an entity to recognize revenue for the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. The guidance provides a five-step analysis of transactions to det ermine when and how revenue is recognized. Other major provisions include capitalization of certain contract costs, consideration of time value of money in the transaction price, and in certain circumstances , allowing estimates of variable consideration to be recognized before contingencies are resolved. The guidance also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. The Company has completed its evaluation of the new standard and has assessed the impacts of adoption on the Consolidated Financial Statements and disclosures. Based on the evaluation of our current contracts and revenue streams, revenue recognition is mostly consistent under both the previous and new standard, with the exception of two key revenue streams within our Aerospace segment, which are described below. First, t he previous accounting policy for costs incurred for nonrecurring engineering and development activities of our A erospace products with commercial customers was generally to record the expense as incurred. Any customer funding received for such efforts was recognized when earned as a reduction of cost of sales. Upon adoption of the new standard, the customer funding is generally classified as revenue and not as a reduction of cost of sales. Such revenues are deferred and subsequently recognized as products are delivered to the customers. Additionally, under the new guidance, expenses incurred, up to the customer agre ed funded amount, are deferred as an asset and subsequently recognized as cost of sales as products are delivered to the customer. As a result of these changes, both deferred costs (assets) and deferred revenue (liability) increased by approximately $ 1 ,090 million effective January 1, 2018. The aforementioned change in classification within the Consolidated Statement of Operations and timing difference in recognition is expected to have a minor impact on our gross margin percentage but no change t o gross profit. Second, the accounting for revenues for our mechanical service programs at our Aerospace segment are impacted. Our previous policy was to recognize revenue over time as costs were incurred (input method). Upon adoption, we continue to reco gnize revenue over time, but recognition is based on a series of distinct services using the output method. At adoption, this change results in unbilled receivables and deferred revenue being eliminated through retained earnings. We adopted the new standing effective January 1, 2018 using the modified retrospective transition method. The cumulative effect recorded to the opening balance of retained earnings of the above impacted revenue streams is $ 75 million. The disclosures in our notes to Consolidated Financial Statements related to revenue recognition will be significantly expanded under the new standard, specifically around the quantitative and qualitative information about performance obligations, changes in contract assets and liabilities, and disaggregation of revenue. In February 2016, the FASB issued guidance on accounting for leases which requires lessees to recognize most leases on their balance sheets for the rights and obligations created by those leases. The guidance requires enhanced disclosures regarding the amount, timing, and uncertainty of cash flows arising from leases that will be effective for interim and annual periods beginning after December 15, 2018, with early adoption permitted. We expect to adopt the requirements of the new standard effective Janu ary 1, 2019. The guidance requires the use of a modified retrospective approach. We are currently evaluating our lease portfolio to assess overall financial statement impact and planning for adoption and implementation of this standard. We will continue t o evaluate the adoption impact of this standard on our consolidated financial position, results of operations, and related notes to financial statements . In October 2016, the FASB issued an accounting standard update which requires an entity to recognize t he income tax consequences of an intra-entity transfer of an asset, other than inventory, at the time the entity transfer occurs rather than when the asset is ultimately transferred to a third party, as required under current U.S. GAAP. The guidance is int ended to reduce diversity in practice, particularly for transfers involving intellectual property. Subsequent to 2017 fiscal year, we adopted the accounting standard update as of January 1, 2018. The guidance requires application on a modified retrospectiv e basis. The adoption of this guidance increases our deferred tax assets by approximately $ 340 million with a cumulative-effect adjustment to retained earnings of the same amount. In March 2017, the FASB issued guidance on presentation of net periodic pen sion cost and net periodic postretirement benefit cost. The new standard requires that an employer disaggregate the service cost component of net benefit cost. The employer is required to report the service cost component in the same line item or items in the statement of operations as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the statement of operations separately from the se rvice cost component, such as in other income and expense . The guidance is effective for fiscal years beginning after December 15, 2017. Subsequent to 2017 fiscal year, we adopted the accounting standard update as of January 1, 2018. This guidance impacts the presentation of our Consolidated Financial Statements. Our current presentation of the service cost component is consistent with the requirements of the new standard. We will present the other components within Other (income) expense (we currently pres ent the other components within Cost of products and services sold and Selling, general, and administrative expenses). All components will continue to be excluded from Segment Profit (see Note 20 Pension and Other Postretirement Benefits for components of net period benefit cost). In August 2017, the FASB issued amendments to hedge accounting guidance. These amendments are intended to better align a company's risk management strategies and financial reporting for hedging relationships. Under the new guida nce, more hedging strategies will be eligible for hedge accounting and the application of hedge accounting is simplified. In addition, the new guidance amends presentation and disclosure requirements. The guidance is effective for fiscal years beginning af ter December 15, 2018 with early adoption permitted, including the interim periods within those years. The guidance requires the use of a modified retrospective approach. We are currently evaluating whether to early adopt the new guidance and the impact of this amendment on our consolidated financial position, results of operations, and related notes to financial statements . |
ACQUISITIONS AND DIVESTITURES
ACQUISITIONS AND DIVESTITURES | 12 Months Ended |
Dec. 31, 2017 | |
Acquisitions [Abstract] | |
Acquisitions | Note 2 . Acquisitions and Divestitures During 2017 there were no significant acquisitions individually or in aggregate. During 2016 , w e acquired businesses for an aggregate cost (net of c ash and debt assumed) of $ 2 , 538 million. In August 2016, the Company acquired Intelligrated , a leading provider of supply chain and warehouse automation technologies, for an aggregate value, net of cash acquired, of $ 1,48 8 million. Intelligrated is part of Safety and Productivity Solutions. In t he third quarter of 2017, we completed our evaluation of the fair value of all of the assets and liabilities acquired. Management recorded goodwill and intangible assets acquired of, $ 1,121 million and $ 507 million, respectively. The Intelligrated identifi able intangible assets primarily include customer relationships, technology, and trade name that are being amortized over their estimated lives ranging from 1 to 15 years using straight line and accelerated amortization methods. The goodwill is non-deducti ble for tax purposes . In April 2016, the Company completed the acquisition of Xtralis International Holdings Limited (“ Xtralis ”), a leading global provider of aspiration smoke detection and perimeter security technologies , for an aggregate cost, net o f cash acquired and debt assumed, of $ 515 million. Xtralis is part of Home and Building Technologies. In February 2016 , the Company acquired 100 percent of the issued and outstanding shares of COM DEV International (“COM DEV”), a leading satellite and spa ce components provider , for an aggregate value, net of cash acquire d and debt assumed, of $ 347 million . COM DEV is part of Aerospace. I n January 2016, the Company acquired the remaining 30 percent noncontrolling interest in UOP Russell LLC , which develops technology and manufactures modular equipment to process natural gas , for $ 240 million. UOP Russell LLC is part of Performance Materials and Technologies. In December 2015, the Company completed the acquisition of the Elster Division of Melrose Industries plc (“Elster”) , for an aggregate value, net of cash acquired, of $4,899 million. Elster had 2015 revenues of $ 1,670 million and has been integrated into Home and Building Technologies and Performance Materials and Technologies. The following tab le summarizes the fair value of the acquired Elster assets and liabilities. Current assets $519 Intangible assets 2,163 Other noncurrent assets 193 Current liabilities (566) Noncurrent liabilities (973) Net assets acquired 1,336 Noncontrolling interest (2) Goodwill 3,565 Purchase Price $4,899 The Elster identifiable intangible assets primarily include customer relationships, trade names and technology t hat are being amortized over their estimated lives rang ing from 1 to 20 years using straight line and accelerated amortization methods. The goodwill is non-deductible for tax purposes. On October 1, 2016, the Company completed the tax-free spin-off of its Resins and Chemicals business, part of Performance Materials and Technologies, into a stand alone, publicly-traded company ( named AdvanSix Inc. (“AdvanSix” ) ) to Honeywell shareowners. T he assets and liabilities associated with AdvanSix have been removed from the Company’s Consolidated Balance Sheet. The results of operations for AdvanSix are included in the Consolidated Statement of Operat ions through the effective date of the spin-off. Honeywell shareowners of record as of the close of business on September 16, 2016 received one share of AdvanSix common stock for every 25 shares of Honeywell common stock. Immediately prior to the effec tive date of the spin-off, AdvanSix incurred debt to make a cash distribution of $ 2 69 million to the Company. At the same time, AdvanSix also incurred $ 38 million of borrowings in order to fund its post spin-off working capital. In 2016 in connection w ith the spin-off, t he Company entered into certain agreements with AdvanSix to effect our legal and structural separation including a transition services agreement with AdvanSix to provide certain administrative and other services for a limited time. As of the end of 2017, most of those agreements have ended. On September 16, 2016 , the Company completed the sale of Honeywell Technology Solutions Inc. for a sale price of $ 300 million. The Company recognized a pre-tax gain of $ 176 million , which was recorded in Other (income) expense . The Honeywell Technology Solutions Inc. business was part of Aerospace. |
REPOSITIONING AND OTHER CHARGES
REPOSITIONING AND OTHER CHARGES | 12 Months Ended |
Dec. 31, 2017 | |
Repositioning And Other Charges [Abstract] | |
Repositioning and Other Charges | Note 3 . Repositioning and Other Charges A summary of repositioning and other charges follows: Years Ended December 31, 2017 2016 2015 Severance $ 305 $ 283 $ 197 Asset impairments 142 43 13 Exit costs 60 43 6 Reserve adjustments (16) (109) (53) Total net repositioning charge 491 260 163 Asbestos related litigation charges, net of insurance 207 222 189 Probable and reasonably estimable environmental liabilities 287 195 194 Other 36 18 - Total net repositioning and other charges $ 1,021 $ 695 $ 546 The following table summarizes the pre-tax distribution of total net repositioning and other charges by classification: Years Ended December 31, 2017 2016 2015 Cost of products and services sold $ 784 $ 522 $ 483 Selling, general and administrative expenses 187 126 63 Other (income) expense 50 47 - $ 1,021 $ 695 $ 546 The following table summarizes the pre-tax impact of total net repositioning and other charges by segment: Years Ended December 31, 2017 2016 2015 Aerospace $ 296 $ 298 $ 211 Home and Building Technologies 78 28 43 Performance Materials and Technologies 102 101 40 Safety and Productivity Solutions 51 1 34 Corporate 494 267 218 $ 1,021 $ 695 $ 546 In 2017 , we recognized repositioning charges totaling $ 507 million including severance costs of $ 305 million related to workforce reductions of 7,096 manufacturing and administrative positions across our segments. The workforce reductions were primarily related to cost savings actions taken in connection with our productivity and ongoing functional transformation initiatives and with site transitions, in each of our segments , to more cost-effective locations . The r epositioning charge included asset impairments of $ 142 million principally in our Corporate segment related to the write- down of legacy properties and certain equipment in connection with their planned disposition and the write-down of a research and devel opment facility in connection with a planned exit from such facility. The repositioning cha rge included exit costs of $60 million principally for closure obligations associated wi th site transitions in each of our segments and for lease exit obligations i n our Corporate segment. In 2016 , we recognized repositioning charges totaling $ 369 million including severance costs of $ 283 million related to workforce reductions of 6,585 manufacturing and administrative pos itions across our segments. The workforce reductions were primarily related to cost savings actions taken in connection with our productivity and ongoing functional transformation initiatives; the separation of the former Automation and Control Solutions r eporting segment into two new reporting segments; site transitions in each of our segments to more cost-effective locations; and achieving acquisition-related synergies. The repositioning charg e included asset impairments of $43 million principally related to the write-off of certain intangible assets in connection with the sale of a Performance Materials and Technologies business. The repositionin g charge included exit costs of $43 million principally for expenses related to the spin-off of our AdvanSix b usiness and closure obligations associated with site transitions. Also, $109 million of previously established accruals, primarily for severance, were returned to income as a result of higher attrition than anticipated in prior severance programs resultin g in lower required severance payments, lower than expected severance costs in certain repositioning actions, and changes in scope of previously announced repositioning actions . In 2015 , we recognized repositioning charges totaling $ 216 million including severance costs of $ 197 million related to workforce reductions of 6,405 manufacturing and administrative positions across our segments. The workforce reductions were primarily related to cost savings actions taken in connection with our productivity and ongoing functional transformation initiatives. Also , $ 53 million of previously established accruals, primarily for severance, were returned to income due principally to higher attrition than anticipated in prio r severance programs resulting in lower required severance payments, and changes in scope of previously announced repositioning actions. The following table summarizes the status of our total repositioning reserves: Severance Asset Exit Costs Impairments Costs Total Balance at December 31, 2014 $ 285 $ - $ 30 $ 315 2015 charges 197 13 6 216 2015 usage - cash (109) - (9) (118) 2015 usage - noncash - (13) - (13) Acquisitions 16 - - 16 Adjustments (49) - (4) (53) Foreign currency translation (11) - (2) (13) Balance at December 31, 2015 329 - 21 350 2016 charges 283 43 43 369 2016 usage - cash (203) - (25) (228) 2016 usage - noncash (6) (43) - (49) Adjustments (106) - (3) (109) Foreign currency translation 1 - (3) (2) Balance at December 31, 2016 298 - 33 331 2017 charges 305 142 60 507 2017 usage - cash (163) - (14) (177) 2017 usage - noncash - (142) - (142) Adjustments and reclassifications (13) - (10) (23) Foreign currency translation 15 - 2 17 Balance at December 31, 2017 $ 442 $ - $ 71 $ 513 Certain repositioning projects in each of our reportable operating segments in 2017 , 2016 and 2015 included exit or disposal activities, the costs related to which will be recognized in future periods when the actual liability is incurred. Such exit and disposal costs were not significant. |
OTHER (INCOME) EXPENSE
OTHER (INCOME) EXPENSE | 12 Months Ended |
Dec. 31, 2017 | |
Other Income Expense [Abstract] | |
Other (income) expense Text Block | Note 4 . Other ( I ncome) E xpense Years Ended December 31, 2017 2016 2015 Equity (income) loss of affiliated companies $ (39) $ (31) $ (30) (Gain) loss on sale of non-strategic businesses and assets 7 (178) 1 Interest income (151) (106) (104) Foreign exchange 18 12 43 Other, net 98 201 22 $ (67) $ (102) $ (68) Refer to Note 2 Acquisitions and Divestitures and Note 12 Long-term Debt and Credit Agreements for further details of transactions recognized in 2016 within Other (income) expense. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2017 | |
Income Taxes [Abstract] | |
Income Taxes | Note 5 . Income Taxes Income before taxes Years Ended December 31, 2017 2016 2015 U.S. $ 2,825 $ 2,976 $ 3,361 Non-U.S. 4,077 3,471 3,225 $ 6,902 $ 6,447 $ 6,586 Tax expense (benefit) Years Ended December 31, 2017 2016 2015 Tax expense (benefit) consists of Current: U.S. Federal $ 2,061 $ 869 $ 786 U.S. State 62 97 78 Non-U.S. 787 559 560 $ 2,910 $ 1,525 $ 1,424 Deferred: U.S. Federal $ 39 $ 38 $ 196 U.S. State 132 17 49 Non-U.S. 2,123 21 70 2,294 76 315 $ 5,204 $ 1,601 $ 1,739 Years Ended December 31, 2017 2016 2015 The U.S. federal statutory income tax rate is reconciled to our effective income tax rate as follows: U.S. federal statutory income tax rate 35.0 % 35.0 % 35.0 % Taxes on non-U.S. earnings below U.S. tax rate (1) (12.9) (8.0) (8.0) U.S. state income taxes (1) 1.4 1.1 1.2 Manufacturing incentives (0.7) (0.7) (1.5) Employee stock ownership plan dividend tax benefit (0.4) (0.5) (0.4) Tax credits (0.9) (0.7) (1.0) Reserves for tax contingencies 1.6 1.2 0.7 Employee share-based payments (2.9) (2.0) - U.S. Tax Cuts and Jobs Act enactment 54.4 - - All other items—net 0.8 (0.6) 0.4 75.4 % 24.8 % 26.4 % (1) Net of changes in valuation allowance The effective tax rate increased by 50.6 percentage points in 2017 compared to 2016 . The increase was primarily attributable to the provisional impact of U.S. tax reform (see “The Tax Cuts and Jobs Act” further below), partially offset by increased tax benefits from foreign tax credits and for employee share-based payments. The C ompany’s non-U.S. effective tax rat e was 71 .4 % , an increase of approximately 54 .7 percentage po ints compared to 2016 . The year-over-year in crease in the non-U.S. effective tax rate was primarily driven by the Company’s change in assertion regarding foreign unremitted earnings, increased expense for reserves in various jurisdictions and increased withholding taxes, partially offset by higher e arnings in low tax rate jurisdictions. The effective ta x rate decreased by 1.6 percentage points in 2016 compared to 2015 . The decrease was primarily attributable to excess tax benefits from employee share-based payments arising from adoption of the FASB’s amended guidance related to employee share-based payment accounting, partially offset by increased tax reserves in various jurisdictions and lower tax benefits from manufacturing incentives. The Company’s non-U.S effective tax rate was 16.7 %, a decrease of approximately 2.8 percentage points compared to 2015 . The year-over-year decrease in the non-U.S. effective tax rate was primarily driven by higher earnings i n lower tax rate jurisdictions and a decrease in the tax impact of restructuring and divestitures. The effective tax rate was lower than the U.S. federal statutory rate of 35% primarily due to overall non-U.S. earnings taxed at lower rates. Deferred tax assets (liabilities) The tax effects of temporary differences and tax carryforwards which give rise to future income tax benefits and payables are as follows: December 31, Deferred tax assets: 2017 2016 Pension $ - $ 411 Postretirement benefits other than pensions 177 262 Asbestos and environmental 325 471 Employee compensation and benefits 218 418 Other accruals and reserves 376 765 Net operating and capital losses 632 669 Tax credit carryforwards 510 206 Gross deferred tax assets 2,238 3,202 Valuation allowance (663) (621) Total deferred tax assets $ 1,575 $ 2,581 Deferred tax liabilities: Pension………………………………………………. $ (40) $ - Property, plant and equipment (439) (560) Intangibles (1,326) (1,843) Unremitted earnings of foreign subsidiaries (2,151) (43) Other asset basis differences (210) (231) Other (67) (43) Total deferred tax liabilities (4,233) (2,720) Net deferred tax liability $ (2,658) $ (139) As discussed further below under “The Tax Cuts and Jobs Act,” the Company no longer intends to reinvest the historical earnings of its foreign subsidiaries as of December 31, 2017 and has recorded a provisional deferred tax liability mainly comprised of non-U.S. withholding taxes of approximately $ 2.1 billion. Our gross deferred tax assets include $ 794 million related to non-U.S. operations comprised principally of net operating loss es , capital loss and tax credit carryforwards (mainly in Canada, France, Germany, Luxembourg and the United Kingdom ) and deductible temporary differences. We maintain a valuation allowance of $ 660 million against a portion of the non-U.S. gross deferred tax assets. The change in the valuation allowance resulted in increases of $ 4 million , $ 69 million and $ 114 million to income tax expense in 2017 , 2016 and 2015 . In the event we determine that we will not be able to realize our net deferred tax assets in the future, we will reduce such amounts through an increase to in come tax expense in the period such determination is made. Conversely, if we determine that we will be able to realize net deferred tax assets in excess of the carrying amounts, we will decrease the recorded valuation allowance through a reduction to incom e tax expense in the period that such determination is made. As of December 31, 2017 , our net operating loss, capital loss and tax credit carryforwards were as follows: Net Operating Expiration and Capital Loss Tax Credit Jurisdiction Period Carryforwards Carryforwards U.S. Federal 2037 $ 16 $ 332 U.S. State 2037 508 24 Non-U.S. 2037 607 159 Non-U.S. Indefinite 2,211 - $ 3,342 $ 515 Many jurisdictions impose limitations on the timing and utilization of net operating loss and tax credit carryforwards. In those instances, whereby there is an expected permanent limitation on the utilization of the net operating loss or tax credit carryforward, the deferred tax asset and amount of the carryforward have been reduced. 2017 2016 2015 Change in unrecognized tax benefits: Balance at beginning of year $ 877 $ 765 $ 659 Gross increases related to current period tax positions 94 96 56 Gross increases related to prior periods tax positions 153 88 175 Gross decreases related to prior periods tax positions (91) (33) (72) Decrease related to resolutions of audits with tax authorities (76) (3) (11) Expiration of the statute of limitations for the assessment of taxes (54) (10) (13) Foreign currency translation 44 (26) (29) Balance at end of year $ 947 $ 877 $ 765 As of December 31, 2017 , 2016 , and 2015 there were $ 947 million, $ 877 million and $ 765 million of unrecognized tax benefits that if recognized would be recorded as a component of T ax expense. The following table summarizes tax years that remain subject to examination by major tax jurisdictions as of December 31, 2017 : Open Tax Years Based on Originally Filed Returns Jurisdiction Examination in Examination not yet progress initiated U.S. Federal 2013 - 2016 2015 - 2017 U.S. State 2011 - 2016 2012 - 2017 Australia N/A 2016 - 2017 Canada (1) 2012 - 2014, 2016 2015 - 2017 China 2003 - 2017 N/A France 2012 - 2017 2006 - 2011 Germany (1) 2008 - 2015 2016 - 2017 India 1999 - 2015 2016 - 2017 Switzerland (1) 2012 - 2016 2017 United Kingdom 2013 - 2015 2016 - 2017 (1) Includes provincial or similar local jurisdictions, as applicable. Based on the outcome of these examinations, or as a result of the expiration of statute of limitations for specific jurisdictions, it is reasonably possible that certain unrecognized tax benefits for tax positions taken on previously filed tax returns will materially change from those recorded as liabilities in our financial statements. In addition, the outcome of these examinations may impact the valuation of certain deferred tax assets (such as net operating losses) in future periods. Unrecognized t ax benefits for examinations in progress were $ 487 million , $ 398 million and $ 349 million, as of December 31, 2017 , 2016 , and 2015 . Estimated interest and penalties related to the underpayment of income taxes are cl assified as a component of Tax e xpense in th e Consolidated Statement of Operations and totaled $ 28 million , $ 18 million and $ 11 million for the years ended December 31, 2017 , 2016 , and 2015 . Accrued interest and penalties were $ 423 million , $ 395 million and $ 336 million, as of December 31, 2017 , 2016 , and 2015 . The Tax Cuts and Jobs Act On December 22, 2017, the U.S. enacted the Tax Cuts and Jobs Act (“Tax Act”) that instituted fundamental changes to the taxation of multinational corporations. The Tax Act includes changes to the taxation of foreign earnings by implementing a dividend exemption system, expansion of the current anti-deferral rules, a minimum tax on low-taxed foreign earnings and new measures to deter base erosion. The Tax Act also includes a permanent reduction in the corporate tax ra te to 21%, repeal of the corporate alternative minimum tax, expensing of capital investment, and limitation of the deduction for interest expense. Furthermore, as part of the transition to the new tax system, a one-time transition tax is imposed on a U.S. shareholder’s historical undistributed earnings of foreign affiliates. Although the Tax Act is generally effective January 1, 2018, GAAP requires recognition of the tax effects of new legislation during the reporting period that includes the enactment da te, which was December 22, 2017. As a result of the impacts of the Tax Act, the SEC provided guidance that allows the Company to record provisional amounts for those impacts, with the requirement that the accounting be completed in a period not to exceed o ne year from the date of enactment. As of December 31, 2017, the Company has not completed the accounting for the tax effects of the Tax Act. Therefore, we have recorded provisional amounts for the effects of the Tax Act. The primary impacts of the Tax Ac t relate to the re-measurement of deferred tax assets and liabilities resulting from the change in the corporate tax rate (“Corporate Tax Rate Change”); the one-time mandatory transition tax on undistributed earnings of foreign affiliates (“Mandatory Trans ition Tax”); and deferred taxes in connection with a change in the Company’s intent to permanently reinvest the historical undistributed earnings of its foreign affiliates (“Undistributed Foreign Earnings”). Corporate Tax Rate Change – For the year ended December 31, 2017 , we recorded a tax benefit of approximately $ 235 million due to the decrease in the corporate tax rate from 35% to 21%. At the date of enactment, the Company had a deferred tax liability for the excess of its net book value over its tax basis of its U.S. assets and liabilities that will generate future taxable income in excess of book income. Due to the Tax Act, this additional taxable income will be subject to tax at a lower corporate tax rate, consequently reducing the Company’s d eferred tax liability as of the date of enactment. Mandatory Transition Tax – For the year ended December 31, 2017, we recorded a provisional tax charge of approximately $ 1.9 billion due to the imposition of the mandatory transition tax (“MTT”) on the deemed repatriation of undistributed foreign earnings. The Tax Act imposes a one-time tax on undistributed and previously untaxed post-1986 foreign earnings and profits (E&P), as determined in accordance with U.S. tax principles, of certain foreign corp orations owned by U.S. shareholders. In general, we have estimated $ 20 billion of E&P related to our foreign affiliates that is subject to the MTT. The MTT is imposed at a rate of 15.5% to the extent of the cash and cash equivalents that are held by the foreign affiliates at certain testing dates; the remaining E&P is taxed at a rate of 8.0%. In accordance with the Tax Act, the Company will elect to pay the MTT liability over a period of eight years, with the first installment of $ 144 million due in 2018 ; the remainder of the balance is recorded in Other liabilities (noncurrent). As of December 31, 2017, the Company has recorded a provisional amount because certain information related to the computation of E&P is not readily available, some of the testin g dates to determine taxable amounts have not yet occurred, and there is limited information from federal and state taxing authorities regarding the application and interpretation of the recently enacted legislation. The Company will disclose the impact t o the provisional amount in the reporting period in which the accounting is completed, which will not exceed one year from the date of enactment of the Tax Act. Undistributed Foreign Earnings – For the year ended December 31, 2017, we recorded a provis ional tax charge of approximately $ 2.1 billion due to the Company’s intent to no longer permanently reinvest the historical undistributed earnings of its foreign affiliates. We previously considered substantially all the historical earnings in our non -U.S. subsidiaries to be permanently reinvested and, accordingly, recorded no deferred income taxes on such earnings. As a result of the fundamental changes to the taxation of multinational corporations created by the Tax Act, the Company no longer intends to permanently reinvest the historical undistributed earnings of its foreign affiliates, which amounted to approximately $ 20 billion as of December 31, 2017 (including current year earnings). GAAP requires recognition of a deferred tax liability in the r eporting period in which its intent to no longer permanently reinvest its historical undistributed foreign earnings is made. Although no U.S. federal taxes will be imposed on such future distributions of foreign earnings, in many cases the cash transfer w ill be subject to foreign withholding and other local taxes. Accordingly, at December 31, 2017 the Company has included a provisional deferred tax liability, mostly related to non-U.S. withholding taxes. The Company has recorded a provisional amount beca use certain information related to the computation of E&P, distributable reserves and foreign exchange gains and losses is not readily available. The Company will disclose the impact to the provisional amount in the reporting period in which the accountin g is completed, which will not exceed one year from the date of enactment of the Tax Act. The provisional amount is based on the Company’s current legal ownership structure which may change in the future. Any future tax impacts resulting from changes t o the legal ownership structure will not be considered changes to the provisional amount and will be recorded in the reporting period in which a plan to modify the legal structure is adopted, which may exceed one year from the date of enactment of the Tax Act. Global Intangible Low Taxed Income – In addition to the changes described above, the Tax Act imposes a U.S. tax on global intangible low taxed income (“GILTI”) that is earned by certain foreign affiliates owned by a U.S. shareholder. The computation of GILTI is still subj ect to interpretation and additional clarifying guidance is expected , but is generally intended to impose tax on the earnings of a foreign corporation that are deemed to exceed a certain threshold return relative to the underlying business investment. In accordance with guida nce issued by FASB, the Company has made a policy election to treat future taxes related to GILTI as a current period expense in the reporting period in which the tax is incurred. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 6 . Earnings Per Share The details of the earnings per share calculations for the years ended December 31, 2017 , 2016 and 2015 are as follows: Years Ended December 31, Basic 2017 2016 2015 Net income attributable to Honeywell $ 1,655 $ 4,809 $ 4,768 Weighted average shares outstanding 762.1 764.3 779.8 Earnings per share of common stock $ 2.17 $ 6.29 $ 6.11 Years Ended December 31, Assuming Dilution 2017 2016 2015 Net income attributable to Honeywell $ 1,655 $ 4,809 $ 4,768 Average Shares Weighted average shares outstanding 762.1 764.3 779.8 Dilutive securities issuable - stock plans 10.0 11.0 9.5 Total weighted average diluted shares outstanding 772.1 775.3 789.3 Earnings per share of common stock - assuming dilution $ 2.14 $ 6.20 $ 6.04 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. In 2017 , 2016 , and 2015 the weighted number of stock options excluded from t he computations were 2.8 million, 7.5 million, and 7.1 million . These stock options were outstanding at the end of each of the respective periods. |
ACCOUNTS RECEIVABLES
ACCOUNTS RECEIVABLES | 12 Months Ended |
Dec. 31, 2017 | |
Accounts Receivable, Net Current [Abstract] | |
Accounts, Notes and Other Receivables | Note 7 . Accounts Receivable December 31, 2017 2016 Trade $ 9,068 $ 8,449 Less - Allowance for doubtful accounts (202) (272) 8,866 8,177 Trade Receivables includes $ 1,853 million and $ 1 ,626 million of unbilled balances under long-term contracts as of December 31, 2017 and December 31, 2016 . These amounts are billed in accordance with the terms of customer contracts to which they relate. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2017 | |
Inventories [Abstract] | |
Inventories | Note 8 . Inventories December 31, 2017 2016 Raw materials $ 1,193 $ 1,104 Work in process 790 775 Finished products 2,669 2,552 4,652 4,431 Reduction to LIFO cost basis (39) (65) $ 4,613 $ 4,366 Inventories valued at LIFO amounted to $ 324 million and $ 296 million at December 31, 2017 and 2016 . Had such LIFO inventories been valued at current costs, their carrying values would have been app roximately $ 39 million and $ 65 million higher at December 31, 2017 and 2016 . |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2017 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | Note 9 . Property, Plant and Equipme nt - Net December 31, 2017 2016 Land and improvements $ 287 $ 363 Machinery and equipment 10,762 9,956 Buildings and improvements 3,463 3,248 Construction in progress 675 940 15,187 14,507 Less—Accumulated depreciation (9,261) (8,714) $ 5,926 $ 5,793 Depreciation expense was $ 717 million , $ 726 million and $ 672 million in 2017 , 2016 and 2015 . |
GOODWILL AND OTHER INTANGIBLES-
GOODWILL AND OTHER INTANGIBLES-NET | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill And Other Intangible Assets Net [Abstract] | |
Goodwill and Other Intangible Assets, Net | Note 10 . Goodwill and Other Intangible Assets - Net The following table summarizes the change in the carrying amount of goodwill for the years ended December 31, 2017 and 2016 by segment Currency December 31, Acquisitions/ Translation December 31, 2016 Divestitures Adjustment 2017 Aerospace $ 2,441 $ 2 $ 25 $ 2,468 Home and Building Technologies 5,807 (32) 185 5,960 Performance Materials and Technologies 4,924 34 284 5,242 Safety and Productivity Solutions 4,535 (8) 80 4,607 $ 17,707 $ (4) $ 574 $ 18,277 Other intangible assets are comprised of: December 31, 2017 December 31, 2016 Gross Net Gross Net Carrying Accumulated Carrying Carrying Accumulated Carrying Amount Amortization Amount Amount Amortization Amount Determinable life intangibles: Patents and technology $ 1,990 $ (1,272) $ 718 $ 1,841 $ (1,141) $ 700 Customer relationships 3,911 (1,366) 2,545 3,816 (1,098) 2,718 Trademarks 328 (189) 139 284 (156) 128 Other 353 (304) 49 359 (284) 75 6,582 (3,131) 3,451 6,300 (2,679) 3,621 Indefinite life intangibles: Trademarks 1,045 - 1,045 1,013 - 1,013 $ 7,627 $ (3,131) $ 4,496 $ 7,313 $ (2,679) $ 4,634 Intangible assets amortization expense was $ 398 million , $ 304 million , and $ 211 million in 2017 , 2016 , 2015 . Estimated intangible asset amortization expense for each of the next five years approximates $ 403 million in 2018, $ 399 million in 2019, $ 3 59 million in 2020, $ 3 19 million in 2021, and $ 293 million in 202 2 . |
ACCRUED LIABILITIES
ACCRUED LIABILITIES | 12 Months Ended |
Dec. 31, 2017 | |
Accrued Liabilities Current [Abstract] | |
Accrued Liabilities | Note 11 . Accrued Liabilities December 31, 2017 2016 Customer advances and deferred income $ 2,198 $ 2,151 Compensation, benefit and other employee related 1,420 1,489 Asbestos related liabilities 350 546 Repositioning 508 322 Product warranties and performance guarantees 307 351 Environmental costs 226 252 Income taxes 134 430 Accrued interest 94 97 Other taxes 277 290 Insurance 199 172 Other (primarily operating expenses) 1,255 948 $ 6,968 $ 7,048 |
LONG-TERM DEBT AND CREDIT AGREE
LONG-TERM DEBT AND CREDIT AGREEMENTS | 12 Months Ended |
Dec. 31, 2017 | |
Long Term Debt And Credit Agreements [Abstract] | |
Long-term Debt and Credit Agreements | Note 12 . Long -term Debt and Credit Agreements December 31, 2017 2016 Two year floating rate Euro notes due 2018 1,199 1,054 1.40% notes due 2019 1,250 1,250 Three year floating rate notes due 2019 250 250 Two year floating rate notes due 2019 450 - 1.80% notes due 2019 750 - 0.65% Euro notes due 2020 1,199 1,054 4.25% notes due 2021 800 800 1.85% notes due 2021 1,500 1,500 1.30% Euro notes due 2023 1,499 1,317 3.35% notes due 2023 300 300 2.50% notes due 2026 1,500 1,500 2.25% Euro notes due 2028 900 790 5.70% notes due 2036 441 550 5.70% notes due 2037 462 600 5.375% notes due 2041 417 600 3.812% notes due 2047 445 - Industrial development bond obligations, floating rate maturing at various dates through 2037 22 30 6.625% debentures due 2028 201 216 9.065% debentures due 2033 51 51 Other (including capitalized leases and debt issuance costs), 0.4% weighted average maturing at various dates through 2023 288 547 13,924 12,409 Less: current portion (1,351) (227) $ 12,573 $ 12,182 The schedule of principal payments on long-term debt is as follows: December 31, 2017 2018 $ 1,351 2019 2,835 2020 1,390 2021 2,306 2022 4 Thereafter 6,038 13,924 Less-current portion (1,351) $ 12,573 In November of 2017, the Company issued $445 million 3.812% Senior Notes due 2047 (the “Exchange Notes”). The Exchange 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 Exchange Notes were issued in partial exchange for the 6.625% Debentures due 2028, the 5.70% Notes due 2036, the 5.70% Notes due 2037 and the 5.375% Notes due 2041. The Company p aid $ 1 33 million to bondholders in connection with the partial exchange. In the October of 2017, the Company issued $450 million Floating Rate Senior Notes due 2019 and $750 million 1.80% Senior Notes due 2019 (collectively, the “2017 Notes”). The 2017 N otes 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 , 2 00 m illion, offset by $ 5 million in discount and closing costs related to the offering. In the fourth quarter of 2016, the Company repurchased the entire outstanding principal amount of its $400 million 5.30 % Senior Notes due 2017, $900 million 5.30% Senior Notes due 2018 and $900 million 5.00% Senior Notes due 2019. The cost related to the early redemption, including the “make whole premium”, was $ 126 million which was recorded in Other (income) expense. In October 2016, the Company issued $1,250 million 1 .40% Senior Notes due 2019, $250 million Floating Rate Senior Notes due 2019, $1,500 million 1.85% Senior Notes due 2021 and $1,500 million 2.50% Senior Notes due 2026 (collectively, the “Notes”). The Notes are senior unsecured and unsubordinated obligatio ns 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 $ 4,500 million, offset by $ 2 7 million in discount and closing costs related to the offering. In February 2016, the Company issued € 1,000 million Floating Rate Senior Notes due 2018, € 1,000 million 0.65% Senior Notes due 2020, € 1,250 million 1.30% Senior Notes due 2023 and € 750 million 2.25% Senior Notes due 2028 (collectively, the “Euro Notes”). The 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 off ering resulted in gross proceeds of $ 4,438 million, offset by $ 23 million in discount and closing costs related to the offering. For the 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 April 28, 2017, the Company entered into Amendment No. 3 (Amendment) to the Amended and Restated $ 4 billion Credit Agreeme nt dated as of July 10, 2015, as amended by Amendment No. 1 dated as of September 30, 2015 and Amendment No. 2 dated as of April 29, 2016 (as so amended, the “Credit Agreement”), with a syndicate of banks. The Credit Agreement is maintained for general cor porate purposes. Commitments under the Credit Agreement can be increased pursuant to the terms of the Credit Agreement to an aggregate amount not to exceed $ 4.5 billion. The Amendment, among other things, extends the Credit Agreement’s termination date fro m July 10, 2021 to April 28, 2022. On April 28, 2017, the Company entered into a $ 1.5 billion 364-Day Credit Agreement (364-Day Credit Agreement) with a syndicate of banks. The 364-Day Credit Agreement is maintained for general corporate purposes. There have been no borrowings under any of the credit agreements previously described. |
LEASE COMMITMENTS
LEASE COMMITMENTS | 12 Months Ended |
Dec. 31, 2017 | |
Lease Commitments [Abstract] | |
Lease Commitments | Note 13 . Lease Commitments Future minimum lease payments under operating leases having initial or remaining noncancellable lease terms in excess of one year are as follows: At December 31, 2017 2018 $ 295 2019 226 2020 161 2021 121 2022 97 Thereafter 226 $ 1,126 Rent expense was $ 38 5 million , $ 387 million and $ 390 million in 2017 , 2016 and 2015 . |
FINANCIAL INSTRUMENTS AND FAIR
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASURES | 12 Months Ended |
Dec. 31, 2017 | |
Financial Instruments And Fair Value Measures [Abstract] | |
Financial Instruments and Fair Value Measures | Note 14 . Financial Instruments and Fair Value Measures Credit and Market Risk— Financial instruments, including derivatives, expose us to counterparty credit risk for nonperformance and to market risk related to changes in interest and currency exchange rates . We manage our exposure to counterparty credit risk through specific minimum credit standards, diversification of counterparties, and procedures to monitor concentrations of credit risk. Our counterparties in derivative transactions are substantial investment and commercial banks with significant experience using such derivative instruments. We monitor the impact of market risk on the fair value and cash flows of our derivative and other financial instruments considering reasonably possible changes i n interest rates and currency exchange rates and restrict the use of derivative financial instruments to hedging activities. We continually monitor the creditworthiness of our customers to which we grant credit terms in the normal course of business. The terms and conditions of our credit sales are designed to mitigate or eliminate concentrations of credit risk with any single customer. Our sales are not materially dependent on a single customer or a small group of customers. Foreign Currency Risk Managem ent— We conduct our business on a multinational basis in a wide variety of foreign currencies. Our exposure to market risk for changes in foreign currency exchange rates arises from international financing activities between subsidiaries, foreign currency d enominated monetary assets and liabilities and transactions arising from international trade. Our primary objective is to preserve the U.S. Dollar value of foreign currency denominated cash flows and earnings . We attempt to hedge currency exposures with na tural offsets to the fullest extent possible and, once these opportunities have been exhausted, through foreign currency exchange forward and option contracts (foreign currency exchange contracts) with third parties. We hedge monetary assets and liabilities denominated in non-functional currencies. Prior to conversion into U.S. dollars, these assets and liabilities are remeasured at spot exchange rates in effect on the balance sheet date. The effects of changes in spot rates are recogniz ed in earn ings and included in other (income) expense. We partially hedge forecasted sales and purchases, which occur in the next twelve months and are denominated in non-functional currencies, with foreign currency exchange contracts. Changes in the forecasted non- functional currency cash flows due to movements in exchange rates are substantially offset by changes in the fair value of the foreign currency exchange contracts designated as hedges. Market value gains and losses on these contracts are recognized in earn ings when the hedged transaction is recognized. Open foreign currency exchange contracts mature in the next twelve months. At December 31, 2017 and 2016 , we had contracts with notional amounts of $ 9,273 million and $ 9 , 554 million to exchange foreign currencies, p rincipally the U.S. Dollar, Euro, British Pound, Canadian Dollar, Chinese Renminbi, Indian Rupee, Mexican Peso, and Singapore Dollar. We have also designated foreign currency debt and certain derivative contracts as hedges against portions of our net investment in foreign operations during the year ended December 31, 2017 . Gains or losses on the effective portion of the foreign currency debt designated as a net inves tment hedge are recorded in the same manner as foreign currency translation adjustments. The Company did not have ineffectiveness related to net investment hedges during the year ended December 31, 2017 . Interest Rate Risk Management— We use a combinat ion of financial instruments, including long-term, medium-term and short-term financing, variable-rate commercial paper, and interest rate swaps to manage the interest rate mix of our total debt portfolio and related overall cost of borrowing. At December 31, 2017 and 2016 , i nterest rate swap agreements designated as fair value hedges effectively changed $ 2,600 million and $ 1, 850 million of fixed rate debt at rate s of 2.93 % and 3.39 % to LIBOR based floating rate debt. Our interest rate swaps mature at various dates through 202 6 . Fair Value of Financial Instruments — The FASB’s accounting guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market part icipants at the measurement date (exit price). Financial and nonfinancial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The following table sets forth the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of December 31, 2017 and 2016 : December 31, 2017 2016 Assets: Foreign currency exchange contracts $ 17 $ 152 Available for sale investments 3,916 1,670 Interest rate swap agreements 44 69 Liabilities: Foreign currency exchange contracts $ 70 $ 2 Interest rate swap agreements 52 48 The foreign currency exchange contracts and interest rate 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 and short-term borrowings contained in the Consolidated Balance Sheet approximates fair value. The following table sets fo rth the Company’s financial assets and liabilities that were not carried at fair value: December 31, 2017 December 31, 2016 Carrying Fair Carrying Fair Value Value Value Value Assets Long-term receivables $ 296 $ 289 $ 280 $ 273 Liabilities Long-term debt and related current maturities $ 13,924 $ 14,695 $ 12,409 $ 13,008 The Company determined the fair value of the long- term receivables by discounting based upon the terms of the receivable and counterparty details including credit quality. 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 as well. Interest rate swap agreements are designated as hed ge relationships with gains or losses o n the derivative recognized in i nterest and other financial charges offsetting the gains and losses on the unde rlying debt being hedged. Losses on interest rate swap agreements recognized in earnings were $ 29 million and $ 71 million in the years ended December 31, 2017 and 2016 and were $ 2 million in the year ended December 31, 2015 . Gains and losses are fully offset by losses and gains on the und erlying debt being hedged. We also economically hedge our 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. We recognized $ 207 million of expense and $ 232 million of income in O ther (i ncome ) e x pense in the years ended December 31, 2017 and 2016 . We recognized $ 86 million of expense in O ther (i ncome ) e xpense in the year ended December 31, 2015 . See Note 4 Other (Incom e) Expense for further details of the net impact of these economic foreign currency hedges. |
OTHER LIABILITIES
OTHER LIABILITIES | 12 Months Ended |
Dec. 31, 2017 | |
Other Liabilities Current [Abstract] | |
Other Liabilities | Note 15 . Other Liabilities Years Ended December 31, 2017 2016 Pension and other employee related $ 1,986 $ 2,084 Income taxes 2,898 1,041 Environmental 369 259 Insurance 233 253 Product warranties and performance guarantees 101 136 Asset retirement obligations 82 63 Deferred income 76 81 Other 185 193 $ 5,930 $ 4,110 |
CAPITAL STOCK
CAPITAL STOCK | 12 Months Ended |
Dec. 31, 2017 | |
Capital Stock [Abstract] | |
Capital Stock | Note 16 . Capital Stock We are authorized to issue up to 2,000,000,000 shares of common stock, with a par value of $ 1 . Common shareowners are entitled to receive such dividends as may be declared by the Board of Directors , are entitled to one vote per share, and are entitled, in the event of liquidation, to share ratably in all the assets of Honeywell which are available for distribution to the common shareowners. Commo n shareowners do not have preemptive or conversion rights. Shares of common stock issued and outstanding or held in the treasury are not liable to further calls or assessments. There are no restrictions on us relative to dividends or the repurchase or rede mption of common stock. In December 2017, the Board of Directors authorized the repurchase of up to $ 8 billion of Honeywell common stock, which replaces the previously approved share repurchase program. Approximately $ 7.7 billion remained available as of D ecember 31, 2017. This authorization included amounts remaining under and replaced the previously approved share repurchase program. Under that previous share repurchase plan announced in April 2016 the Board of Directors authorized the repurchase of up t o $ 5 billion of Honeywell common stock and $ 4.1 billion remained available as of December 31, 2016 . For the year ended December 31, 2017, we re purchased approximately 20.5 million shares of our common stock for $ 2,889 million . For the year ended December 31, 2016, we re purchased approximately 19.3 million shares of our common stock for $ 2,079 million . We are authorized to issue up to 40,000,000 shares of preferred stock, without par value, and can determine the number of shares of each series, and the rig hts, preferences and limitations of each series. At December 31, 2017 , there was no preferred stock outstanding. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Note 17 . Accumulated Other Comprehensive Income (Loss) The changes in A ccumulated other comprehensive income (loss) are provided in the tables below. Comprehensive income (loss) attributable to noncontrolling interest consists predominantly of net income. Pre-tax Tax After-Tax Year Ended December 31, 2017 Foreign exchange translation adjustment $ (37) $ - $ (37) Pensions and other postretirement benefit adjustments 847 (170) 677 Changes in fair value of effective cash flow hedges (194) 33 (161) $ 616 $ (137) $ 479 Year Ended December 31, 2016 Foreign exchange translation adjustment $ (52) $ - $ (52) Pensions and other postretirement benefit adjustments (336) 101 (235) Changes in fair value of effective cash flow hedges 134 (26) 108 $ (254) $ 75 $ (179) Year Ended December 31, 2015 Foreign exchange translation adjustment $ (1,152) $ - $ (1,152) Pensions and other postretirement benefit adjustments 129 (45) 84 Changes in fair value of effective cash flow hedges (11) 3 (8) $ (1,034) $ (42) $ (1,076) Components of Accumulated Other Comprehensive Income (Loss) December 31, 2017 2016 Cumulative foreign exchange translation adjustment $ (1,981) $ (1,944) Pensions and other postretirement benefit adjustments (202) (879) Fair value of available for sale investments - - Fair value of effective cash flow hedges (52) 109 $ (2,235) $ (2,714) Changes in Accumulated Other Comprehensive Income (Loss) by Component Changes in Foreign Pension Fair Value of Exchange and Other Effective Translation Postretirement Cash Flow Adjustment Adjustments Hedges Total Balance at December 31, 2015 $ (1,892) $ (644) $ 1 $ (2,535) Other comprehensive income (loss) before reclassifications (52) (388) 103 (337) Amounts reclassified from accumulated other comprehensive income (loss) - 153 5 158 Net current period other comprehensive income (loss) (52) (235) 108 (179) Balance at December 31, 2016 $ (1,944) $ (879) $ 109 $ (2,714) Other comprehensive income (loss) before reclassifications (37) 645 (101) 507 Amounts reclassified from accumulated other comprehensive income - 32 (60) (28) Net current period other comprehensive income (loss) (37) 677 (161) 479 Balance at December 31, 2017 $ (1,981) $ (202) $ (52) $ (2,235) Reclassifications Out of Accumulated Other Comprehensive Income (Loss) Year Ended December 31, 2017 Affected Line in the Consolidated Statement of Operations Product Sales Cost of Products Sold Cost of Services Sold Selling, General and Administrative Expenses Total Amortization of Pension and Other Postretirement Items: Actuarial losses recognized $ - $ 79 $ 15 $ 16 $ 110 Prior service (credit) recognized - (74) (14) (15) (103) Settlements and curtailments - 17 3 4 24 Losses (gains) on cash flow hedges (15) (22) (4) (28) (69) Total before tax $ (15) $ - $ - $ (23) $ (38) Tax expense (benefit) 10 Total reclassifications for the period, net of tax $ (28) Year Ended December 31, 2016 Affected Line in the Consolidated Statement of Operations Product Sales Cost of Products Sold Cost of Services Sold Selling, General and Administrative Expenses Total Amortization of Pension and Other Postretirement Items: Actuarial losses recognized $ - $ 214 $ 44 $ 46 $ 304 Prior service (credit) recognized - (87) (18) (18) (123) Settlements and curtailments - (4) (1) (1) (6) Losses (gains) on cash flow hedges 3 16 3 (5) 17 Total before tax $ 3 $ 139 $ 28 $ 22 $ 192 Tax expense (benefit) (34) Total reclassifications for the period, net of tax $ 158 |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS | 12 Months Ended |
Dec. 31, 2017 | |
Stock Based Compensation Plans [Abstract] | |
Stock-Based Compensation Plans | Note 18 . Stock-Based Compensation Plans T he 201 6 Stock Incentive Plan of Honeywell International Inc. and its Affiliates (2016 Plan) and 2016 Stock Plan for Non-Employee Directors of Honeywell International Inc (2016 Directors Plan) were both approved by the shareowners at the Annual Meeting of Shareowners effective on April 25, 2016. Following approval of both plans, we have not and will not grant any new awards under any previously existing stock-based compensation plans. At December 31, 2017, ther e were 42,025,990 , and 924,694 shares of Honeywell common stock available for future grants under terms of the 2016 Plan and 2016 Directors Plan, respectively . Stock Options — The exercise price, term and other conditions applicable to each option granted under our stock plans are generally determined by the Management Development and Compensation Committee of the Board. The exercise price of stock options is set on the grant date and may not be less than the fair market value per share of our stock on tha t date. The fair value is recognized as an expense over the employee’s requisite service period (generally the vesting period of the award). Options generally vest over a four-year period and expire after ten years. The fair value of each option award is estimated on the date of grant using the Black-Scholes option-pricing model. Expected volatility is based on implied volatilities from traded options on our common stock and historical volatility of our common stock. We used a Monte Carlo simulation model to derive an expected term which represents an estimate of the time options are expected to remain outstanding. Such model uses historical data to estimate option exercise activity and post-vest termination behavior. The risk-free rate for periods within t he contractual life of the option is based on the U.S. treasury yield curve in effect at the time of grant. The following table summarizes the impact to the Consolidated Statement of Operations from stock options: Years Ended December 31, 2017 2016 2015 Compensation expense $ 79 $ 87 $ 78 Future income tax benefit recognized 17 29 26 The following table sets forth fair value per share information, including related weighted-average assumptions, used to determine compensation cost . Years Ended December 31, 2017 2016 2015 Weighted average fair value per share of options granted during the year (1) $ 16.68 $ 15.59 $ 17.21 Assumptions: Expected annual dividend yield 2.81 % 2.92 % 1.98 % Expected volatility 18.96 % 23.07 % 21.55 % Risk-free rate of return 2.02 % 1.29 % 1.61 % Expected option term (years) 5.04 4.97 4.96 (1) Estimated on date of grant using Black-Scholes option-pricing model. The following table summarizes information about stock option activity for the three years ended December 31, 2017 : Weighted Average Number of Exercise Options Price Outstanding at December 31, 2014 29,495,612 61.80 Granted 5,967,256 103.87 Exercised (4,190,298) 53.40 Lapsed or canceled (703,132) 84.31 Outstanding at December 31, 2015 30,569,438 70.76 Granted 6,281,053 103.51 Exercised (7,075,852) 57.41 Lapsed or canceled (1,107,339) 96.81 Outstanding at December 31, 2016 28,667,300 79.57 Granted 5,098,569 125.16 Exercised (8,840,019) 62.34 Lapsed or canceled (1,516,557) 109.04 Outstanding at December 31, 2017 23,409,293 $ 94.16 Vested and expected to vest at December 31, 2017 (1) 21,979,487 $ 92.58 Exercisable at December 31, 2017 12,288,854 $ 78.35 (1) Represents the sum of vested options of 12.3 million and expected to vest options of 9.7 million. Expected to vest options are derived by applying the pre-vesting forfeiture rate assumption to total outstanding unvested options of 11.2 million. The following table summarizes information about stock options outstanding and exercisable at December 31, 2017 : Options Outstanding Options Exercisable Weighted Weighted Weighted Average Aggregate Average Aggregate Range of Number Average Exercise Intrinsic Number Exercise Intrinsic Exercise prices Outstanding Life (1) Price Value Exercisable Price Value $28.19-$64.99 4,204,045 3.38 $ 54.75 $ 415 4,204,045 $ 54.75 $ 415 $65.00-$89.99 2,402,025 5.17 69.59 201 2,401,220 69.59 201 $90.00-$99.99 3,189,936 6.16 93.41 191 2,239,440 93.41 134 $100.00-$114.99 8,974,559 7.71 103.45 448 3,427,616 103.37 172 $115.00-$134.00 4,638,728 9.17 125.15 131 16,533 124.20 - 23,409,293 6.75 94.16 $ 1,386 12,288,854 78.35 $ 922 (1) Average remaining contractual life in years. There were 15,536,961 , and 1 7 , 202,377 options exercisable at weighted average exercise prices of $ 63.39 and $ 55.11 at December 31, 2016 and 2015 . The following table summarizes the financial statement impact from stock options exercised: Years Ended December 31, Options Exercised 2017 2016 2015 Intrinsic value (1) $ 620 $ 395 $ 210 Tax benefit realized 221 137 73 (1) Represents the amount by which the stock price exceeded the exercise price of the options on the date of exercise. At December 31, 2017 there was $ 108 million of total unrecognized compensation cost related to non-vested stock option awards which is expected to be recognized over a weighted-average period of 2.32 years. The total fair value of options vested during 2017 , 2016 and 2015 was $ 87 million , $ 76 million and $ 73 million. Restricted Stock Units —Restricted stock unit (RSU) awards entitle the holder to receive one share of common stock for each unit when the units vest. RSUs are issued to certain key employees and directors as compensation at fair market value at the date of grant . RSUs typically become fully vested over periods ranging from three to seven years and are payable in Honeywell common stock upon vesting. The following table summarizes information about RSU acti vity for the three years ended December 31, 2017 : Weighted Average Number of Grant Date Restricted Fair Value Stock Units Per Share Non-vested at December 31, 2014 5,899,194 70.32 Granted 1,190,406 103.04 Vested (1,681,342) 56.38 Forfeited (426,670) 77.73 Non-vested at December 31, 2015 4,981,588 82.18 Granted 1,364,469 110.49 Vested (1,486,173) 68.58 Forfeited (392,541) 88.88 Non-vested at December 31, 2016 4,467,343 94.17 Granted 1,274,791 129.71 Vested (1,289,892) 81.37 Forfeited (505,415) 103.06 Non-vested at December 31, 2017 3,946,827 $ 108.60 As of December 31 , 2017 , there was approximately $ 210 million of total unrecognized compensation cost related to non-vested RSUs granted under our stock plans which is expected to be recognized over a weighted-average period of 3.15 years . The following table summarizes the impact to the Consolidated Statement of Operations from RSUs: Years Ended December 31, 2017 2016 2015 Compensation expense $ 97 $ 97 $ 97 Future income tax benefit recognized 19 30 29 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2017 | |
Commitments And Contingencies [Abstract] | |
Commitments and Contingencies | Note 19 . Commitments and Contingencies Environmental Matters We are subject to various federal, state, local and foreign government requirements relating to the protection of the environment. We believe that, as a general matter, our policies, practices and procedures are properly designed to prevent unreasonable risk of environmental damage and personal injury and that our handling, manufacture, use and disposal of hazardous substances are in accordance with environmental and safety laws and re gulations. However, mainly because of past operations and operations of predecessor companies, we, like other companies engaged in similar businesses, have incurred remedial response and voluntary cleanup costs for site contamination and are a party to law suits and claims associated with environmental and safety matters, including past production of products containing hazardous substances. Additional lawsuits, claims an d costs involving environmental matters are likely to continue to arise in the future. With respect to environmental matters involving site contamination, we continually conduct studies, individually or jointly with other potentially responsible parties, to determine the feasibility of various remedial techniques. It is our policy to record appropriate liabilities for environmental matters when remedial efforts or damage claim payments are probable and the costs can be reasonably estimated. Such liabilities are based on our best estimate of the undiscounted future costs required to complete t he remedial work. The recorded liabilities are adjusted periodically as remediation efforts progress or as additional technical, regulatory or legal information becomes available. Given the uncertainties regarding the status of laws, regulations, enforceme nt policies, the impact of other potentially responsible parties, technology and information related to individual sites, we do not believe it is possible to develop an estimate of the range of reasonably possible environmental loss in excess of our record ed liabilities. We expect to fund expenditures for these matters from operating cash flow. The timing of cash expenditures depends on a number of factors, including the timing of remedial investigations and feasibility studies, the timing of litigation and settlements of remediation liability, personal injury and property damage claims, regulatory approval of cleanup projects, remedial techniques to be utilized and agreements with other parties. The following table summarizes information concerning our recorded liabilities for environmental costs: Years Ended December 31, 2017 2016 2015 Beginning of year $ 511 $ 518 $ 591 Accruals for environmental matters deemed probable and reasonably estimable 287 195 194 Environmental liability payments (212) (228) (273) Other 9 26 6 End of year $ 595 $ 511 $ 518 Environmental liabilities are included in the following balance sheet accounts: December 31, 2017 2016 Accrued liabilities $ 226 $ 252 Other liabilities 369 259 $ 595 $ 511 We do 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. Onondaga Lake, Syracuse, NY —In 2016 , we largely completed a dredging/capping remedy of Onondaga Lake pursuant to a consent decree approved by the United States District Court for the Northern District of New York in January 2007. Some additional long-term monitoring and maint enance activities will continue, as required by the consent decree. Honeywell is also conducting remedial investigations and activities at other sites in Syracuse. We have recorded reserves for these investigations and activities where appropriate, consistent with the accounting policy described above. Honeywell and the federal and New York State natural resource trustees have submitted a consent decree to the federal court requesting approval for a negotiated settlement of natural resource damages claims for this site. Asbestos Matters Honeywell is a defendant in asbestos related personal injury actions related t o two predecessor companies: North American Refractories Company (“NARCO”), which was sold in 1986, produced refractory products (bricks and cement used in high temperature applications). Claimants consist largely of individuals who allege exposure to NAR CO asbestos-containing refractory products in an occupational setting. Bendix Friction Materials ( “ Bendix ” ) business, which was sold in 2014, manufactured automotive brake parts that contained chrysotile asbestos in an encapsulated form. Claimants consis t 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 summarize information concerning NARCO and Bendix asbestos related ba lances: Asbestos Related Liabilities Year Ended December 31, Year Ended December 31, Year Ended December 31, 2017 2016 2015 Bendix NARCO Total Bendix NARCO Total Bendix NARCO Total Beginning of year $ 641 $ 919 $ 1,560 $ 622 $ 921 $ 1,543 $ 623 $ 929 $ 1,552 Accrual for update to estimated liability 199 31 230 203 9 212 180 8 188 Change in estimated cost of future claims (4) - (4) 13 - 13 11 - 11 Update of expected resolution values for pending claims 3 - 3 4 - 4 1 - 1 Asbestos related liability payments (223) (43) (266) (201) (11) (212) (193) (16) (209) End of year $ 616 $ 907 $ 1,523 $ 641 $ 919 $ 1,560 $ 622 $ 921 $ 1,543 Insurance Recoveries for Asbestos Related Liabilities Year Ended December 31, Year Ended December 31, Year Ended December 31, 2017 2016 2015 Bendix NARCO Total Bendix NARCO Total Bendix NARCO Total Beginning of year $ 121 $ 319 $ 440 $ 124 $ 325 $ 449 $ 135 $ 350 $ 485 Probable insurance recoveries related to estimated liability 22 - 22 26 - 26 21 - 21 Insurance receipts for asbestos related liabilities (20) (7) (27) (37) (6) (43) (33) (30) (63) Insurance receivables settlements and write offs - - - 7 - 7 1 6 7 Other - - - 1 - 1 - (1) (1) End of year $ 123 $ 312 $ 435 $ 121 $ 319 $ 440 $ 124 $ 325 $ 449 NARCO and Bendix asbestos related balances are included in the following balance sheet accounts: December 31, 2017 2016 Other current assets $ 24 $ 23 Insurance recoveries for asbestos related liabilities 411 417 $ 435 $ 440 Accrued liabilities $ 350 $ 546 Asbestos related liabilities 1,173 1,014 $ 1,523 $ 1,560 NARCO Products – In connection with NARCO’s emergence from bankruptcy on April 30, 2013, a federally authorized 524(g) trust (NARCO 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 t he NARCO Trust. The NARCO Trust reviews submitted claims and determines award amounts in accordance with established Trust Distribution Procedures approved by the Bankruptcy Court which set forth the criteria claimants must meet to qualify for compensation including, among other things, exposure and medical criteria that determine the award amount. In addition, Honeywell provided, and continues to provide, input to the design of control procedures for processing NARCO claims, and has on-going audit rights t o review and monitor the claims processor’s adherence to the established requirements of the Trust Distribution Procedures. Honeywell is obligated to fund NARCO asbestos claims submitted to the NARCO Trust which qualify for payment under the Trust Distribu tion Procedures (Annual Contribution Claims), subject to annual caps of $ 140 million in 2018 and $ 145 million for each year thereafter. 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. In 2015, Honeywell filed suit against the NARCO Trust in Bankruptcy Court alleging breach of certain provisions of the Trus t Agreement and Trust Distribution Procedures. The parties agreed to dismiss the proceeding without prejudice pursuant to an 18 month Standstill Agreement. Claims processing continued during this period as the parties attempted to resolve disputed issues . The Standstill Agreement expired on October 12, 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 Trust is not processing claims in accordance with established Trust Distribution Procedures) . Honeywell reserves its right to seek judicial inter vention should negotiations fail or prove futile. As of December 31, 2017 , Honeywell has not made any payments to the NARCO Trust for Annual Contribution Claims. Honeywell is also responsible for payments due to claimants pursuant to settlement agreem ents 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 criteria (Pre-establ ished Unliquidated Claims), which amounts are estimated at $ 150 million and are expected to be paid during the initial years of trust operations ($ 5 million of which has been paid since the effective date of the NARCO Trust). Such payments are not subject to the annual cap described above. Our consolidated financial statements reflect an estimated liability for Pre-established Unliquidated Claims ($ 145 million), as well as unsettled claims pending as of the time NARCO filed for bankruptcy protection and operating and legal costs related to the Trust (collectively $ 19 million) and for the estimated value of future NARCO asbestos claims expected to be asserted against the NARCO Trust ($743 million). The estimate of future NARCO claims was prepared in 2002, in the same year NARCO filed for bankruptcy protection, using NARCO tort system litigation experience based on a commonly accepted methodology used by numerous bankruptcy courts addressing 524(g) trusts. Accordingly, the estimated value of future NARCO as bestos claims was prepared before there was data on claims filings and payment rates in the NARCO Trust under the Trust Distribution Procedures and also prepared when the stay of all NARCO asbestos claims was in effect (which remained in effect until NARCO emerged from Bankruptcy protection). Some critical assumptions underlying this commonly accepted methodology included claims filing rates, disease criteria and payment values contained in the Trust Distribution Procedures, estimated approval rates of cla ims submitted to the NARCO Trust and epidemiological studies estimating disease instances. The estimated value of the future NARCO liability reflects claims expected to be asserted against NARCO over a fifteen year period. This projection resulted in a ran ge of estimated liability of $ 743 million to $ 961 million. We believe that no amount within this range is a better estimate than any other amount and accordingly, we have recorded the minimum amount in the range. Given the Trust’s lack of sufficient claim s processing experience since NARCO emerged from bankruptcy protection, it is not yet possible to reliably estimate future claim costs based on actual Trust experience. Our insurance receivable corresponding to the estimated liability for pending and futur e 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 m arket 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 insolven t, 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 i nsurers. Projecting future events is subject to many uncertainties that could cause the NARCO-related asbestos liabilities or assets to be higher or lower than those projected and recorded. Given the uncertainties, we review our estimates periodically, and update them based on our experience and other relevant factors. Similarly, we will reevaluate our projections concerning our probable insurance recoveries in light of any changes to the projected liability or other developments that may impact insurance r ecoveries. Bendix Products — The following tables present information regarding Bendix related asbestos claims activity : Years Ended December 31, Claims Activity 2017 2016 Claims Unresolved at the beginning of year 7,724 7,779 Claims Filed 2,645 2,830 Claims Resolved (4,089) (2,885) Claims Unresolved at the end of year 6,280 7,724 December 31, Disease Distribution of Unresolved Claims 2017 2016 Mesothelioma and Other Cancer Claims 3,062 3,490 Nonmalignant Claims 3,218 4,234 Total Claims 6,280 7,724 Honeywell has experienced average resolution values per claim excluding legal costs as follows: Years Ended December 31, 2017 2016 2015 2014 2013 (in whole dollars) Malignant claims $ 56,000 $ 44,000 $ 44,000 $ 53,500 $ 51,000 Nonmalignant claims $ 2,800 $ 4,485 $ 100 $ 120 $ 850 It is not possible to predict whether resolution values for Bendix-related asbestos claims will increase, decrease or stabilize in the future. Our consolidated financial statements reflect an estimated liability for resolution of pending (claims actually filed as of the financial statement date) and future Bendix-related asbestos claims. We have valued Bendix pending and future claims using average resolution values for the previous five years. We update the resolution values used to estimate the cost of Bendix pending and future claims during the fourth quarter each year. The liability for future claims represents the estimated value of future asbestos related bodily injury claims expected to be asserted against Bendix over the next five years. Such estim ated cost of future Bendix-related asbestos claims is based on historic claims filing experience and dismissal rates, disease classifications, and resolution values in the tort system for the previous five years. In light of the uncertainties inherent in making long-term projections, as well as certain factors unique to friction product asbestos claims, we do not believe that we have a reasonable basis for estimating asbestos claims beyond the next five years. The methodology used to estimate the liability for future claims is similar to that used to estimate the liability for future NARCO-related asbestos claims. Our insurance receivable corresponding to the liability for settlement of pending and future Bendix asbestos claims reflects coverage which is pr ovided 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. Honeywell believes it has sufficient insurance coverage and res erves to cover all pending Bendix-related asbestos claims and Bendix-related asbestos claims estimated to be filed within the next five years. Although it is impossible to predict the outcome of either pending or future Bendix-related asbestos claims, we d o not believe that such claims would have a material adverse effect on our consolidated financial position in light of our insurance coverage and our prior experience in resolving such claims. If the rate and types of claims filed, the average resolution v alue of such claims and the period of time over which claim settlements are paid (collectively, the Variable Claims Factors) do not substantially change, Honeywell would not expect future Bendix-related asbestos claims to have a material adverse effect on our results of operations or operating cash flows in any fiscal year. No assurances can be given, however, that the Variable Claims Factors will not change . Other Matters We are subject to a number of other lawsuits, investigations and disputes (some of wh ich 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 p roperty, 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 fol lowing: Honeywell v. United Auto Workers (UAW) et. al — In September 2011, the UAW and certain Honeywell retirees filed a suit in the Eastern District of Michigan alleging that the Master Collective Bargaining Agreements (MCBAs) between Honeywell and the UA W do not provide for limitations on Honeywell’s obligation to contribute toward healthcare coverage for former employees who retired under the MCBAs (“ CAPS” ). Honeywell subsequently answered the UAW’s complaint and asserted counterclaims. Honeywell began e nforcing the CAPS against former employees who retired after the initial inclusion of the CAPS in the 2003 MCBA (the post-2003 retirees) on January 1, 2014. The UAW and certain of the plaintiffs filed a motion for partial summary judgment with respect to the post-2003 retirees, seeking a ruling that the 2003 MCBA did not limit Honeywell’s obligation to contribute to healthcare coverage for those retirees. That motion remains pending. Honeywell is confident that the District Court will find that the 2003 MCBA does, in fact, limit Honeywell’s retiree healthcare obligation for the post-2003 retirees. In the event of an adverse ruling, however, Honeywell’s other postretirement benefits for post-2003 retirees would increase by approximately $ 79 million, reflec ting the estimated value of these CAPS. In the second quarter of 2014, t he parties agreed to stay the proceedings with respect to former employees who retired before the initial inclusion of the CAPS in the 2003 MCBA (the pre-2003 retirees) until the Supr eme Court decided M&G Polymers USA, LLC v. Tackett . The Supreme Court decided the case on January 26, 2015 and, based on the ruling, Honeywell began enforcing the CAPS against the pre-2003 retirees on May 1, 2015. Honeywell is confident that the CAPS will be upheld by the District Court and that its liability for healthcare coverage premiums with respect to the putative class will be limited as negotiated and expressly set forth in the applicable MCBAs . In the event of an adverse ruling, however, Honeywell’s other postretirement benefits for pre-2003 retirees would increase by approximately $ 103 million, reflecting the estimated value of these CAPS. Given the uncertainty inherent in litigation and inv estigations (including the specific matter 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 pa st 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 have a material adverse effect on our results of operations or operating cash flows in the periods recognized or paid. Warranties and Guarantees In the normal course of business we issue product warranties and product performance guarantees. We accrue for the estimated cost of product warranties and performance guarantees based on contract terms and historical experience at the time of sale. Adjustments to initial obligations for warranties and guarantees are made as changes to the obligations become reasonably estimable. The following table summarizes information concerning our recorded obligations for product warranties and product performan ce gua rantees. Years Ended December 31, 2017 2016 2015 Beginning of year $ 487 $ 416 $ 403 Accruals for warranties/guarantees issued during the year 215 326 206 Adjustment of pre-existing warranties/guarantees (27) (40) 13 Settlement of warranty/guarantee claims (267) (215) (206) End of year $ 408 $ 487 $ 416 Product warranties and product performance guarantees are included in the following balance sheet accounts: December 31, 2017 2016 Accrued liabilities $ 307 $ 351 Other liabilities 101 136 $ 408 $ 487 |
PENSION AND OTHER POSTRETIREMEN
PENSION AND OTHER POSTRETIREMENT BENEFITS | 12 Months Ended |
Dec. 31, 2017 | |
Pension and Other Post Retirements Disclosure Paragraph Details [Abstract] | |
Pension and Other Postretirement Benefits | Note 20 . Pension and Other Postretirement Benefits We sponsor a number of both funded and unfunded U.S. and non-U.S . defined benefit pension plans. Pension benefits for many of our U.S. employees are provided through non-contributory, qualified and non-qualified defined benefit plans. All non-union hourly and salaried employees joining Honeywell for the first time after December 31, 2012, are not eligible to participate in Honeywell’ s U.S. defined benefit pension plans. We also sponsor defined benefit pension plans which cover non-U.S. employees who are not U.S. citizens, in certain jurisdictions, principally the UK, Netherlands, Germany, and Canada. Other pension plans outside of th e U.S. are not material to the Company either individually or in the aggregate. We also sponsor postretirement benefit plans that provide health care benefits and life insurance coverage mainly to U.S. eligible retirees. None of Honeywell ’s U.S. employe es are eligible for a retiree medical subsidy from the Company. In addition, the vast majority of Honeywell’s U.S. retirees either have no Company subsidy or have a fixed-dollar subsidy amount . This significantly limits our exposure to the impact of future hea lth care cost increases. The retiree medical and life insurance plans are not funded. Claims and expenses are paid from our operating cash flow. The following tables summarize the balance sheet impact, including the benefit obligations, assets and funded status associated with our significant pension and other postretirement benefit plans . Pension Benefits U.S. Plans Non-U.S. Plans 2017 2016 2017 2016 Change in benefit obligation: Benefit obligation at beginning of year $ 17,414 $ 17,298 $ 6,483 $ 6,338 Service cost 172 191 40 47 Interest cost 586 600 147 179 Plan amendments - - (1) - Actuarial (gains) losses 1,234 448 (24) 1,125 Benefits paid (1,146) (1,135) (253) (243) Settlements and curtailments (109) - - (50) Foreign currency translation - - 614 (930) Other - 12 13 17 Benefit obligation at end of year 18,151 17,414 7,019 6,483 Change in plan assets: Fair value of plan assets at beginning of year 16,814 16,349 6,120 6,117 Actual return on plan assets 3,287 1,554 539 1,006 Company contributions 139 36 161 186 Benefits paid (1,146) (1,135) (253) (243) Settlements and curtailments (109) - - - Foreign currency translation - - 569 (957) Other - 10 15 11 Fair value of plan assets at end of year 18,985 16,814 7,151 6,120 Funded status of plans $ 834 $ (600) $ 132 $ (363) Amounts recognized in Consolidated Balance Sheet consist of: Prepaid pension benefit cost (1) $ 1,205 $ - $ 944 $ 380 Accrued pension liabilities - current (2) (27) (106) (12) (11) Accrued pension liabilities - noncurrent (3) (344) (494) (800) (732) Net amount recognized $ 834 $ (600) $ 132 $ (363) (1) Included in Other assets on Consolidated Balance Sheet (2) Included in Accrued liabilities on Consolidated Balance Sheet (3) Included in Other liabilities on Consolidated Balance Sheet Other Postretirement Benefits 2017 2016 Change in benefit obligation: Benefit obligation at beginning of year $ 492 $ 569 Service cost - - Interest cost 19 20 Plan amendments 91 27 Actuarial (gains) losses (14) (31) Benefits paid (58) (93) Benefit obligation at end of year 530 492 Change in plan assets: Fair value of plan assets at beginning of year - - Actual return on plan assets - - Company contributions - - Benefits paid - - Fair value of plan assets at end of year - - Funded status of plans $ (530) $ (492) Amounts recognized in Consolidated Balance Sheet consist of: Accrued liabilities $ (62) $ (62) Postretirement benefit obligations other than pensions (1) (468) (430) Net amount recognized $ (530) $ (492) (1) Excludes non-U.S. plans of $44 million and $43 million in 2017 and 2016. Amounts recognized in A ccumulated other comprehensive (income) loss associated with our significant pension and other postretirement benefit plans at December 31, 2017 and 2016 are as follows : Pension Benefits U.S. Plans Non-U.S. Plans 2017 2016 2017 2016 Prior service (credit) $ (268) $ (312) $ (13) $ (11) Net actuarial loss 248 1,099 427 582 Net amount recognized $ (20) $ 787 $ 414 $ 571 Other Postretirement Benefits 2017 2016 Prior service (credit) $ (244) $ (393) Net actuarial loss 109 136 Net amount recognized $ (135) $ (257) The components of net periodic benefit (income) cost and other amounts recognized in O ther comprehensive (income) loss for our significant pension and other postretirement benefit plans include the following components: Pension Benefits U.S. Plans Non-U.S. Plans Net Periodic Benefit Cost 2017 2016 2015 2017 2016 2015 Service cost $ 172 $ 191 $ 223 $ 40 $ 47 $ 51 Interest cost 586 600 696 147 179 177 Expected return on plan assets (1,262) (1,226) (1,278) (411) (377) (358) Amortization of transition obligation - - - - - 1 Amortization of prior service (credit) cost (43) (43) 13 (1) (3) (3) Recognition of actuarial losses 41 27 52 46 246 15 Settlements and curtailments 18 - 8 - (7) 2 Net periodic benefit (income) cost $ (488) $ (451) $ (286) $ (179) $ 85 $ (115) Other Changes in Plan Assets and Benefits Obligations Recognized in U.S. Plans Non-U.S. Plans Other Comprehensive (Income) Loss 2017 2016 2015 2017 2016 2015 Actuarial (gains) losses $ (792) $ 121 $ 775 $ (153) $ 447 $ 27 Prior service (credit) - - (429) (1) - - Transition obligation recognized during year - - - - - (1) Prior service (cost) credit recognized during year 43 43 (13) 1 10 3 Actuarial losses recognized during year (59) (27) (52) (46) (246) (17) Foreign currency translation - - - 43 (83) (37) Total recognized in other comprehensive (income) loss $ (808) $ 137 $ 281 $ (156) $ 128 $ (25) Total recognized in net periodic benefit (income) cost and other comprehensive (income) loss $ (1,296) $ (314) $ (5) $ (335) $ 213 $ (140) The estimated prior service (credit) for pension benefits that will be amortized from A ccumulated other comprehensive (income) loss into net periodic benefit (income) cost in 2018 are expected to be ($ 43 ) million and ($ 1 ) million for U.S. and non-U.S. pension plans . Other Postretirement Benefits Years Ended December 31, Net Periodic Benefit Cost 2017 2016 2015 Service cost $ - $ - $ - Interest cost 19 20 33 Amortization of prior service (credit) (58) (76) (30) Recognition of actuarial losses 13 22 34 Net periodic benefit (income) cost $ (26) $ (34) $ 37 Years Ended December 31, Other Changes in Plan Assets and Benefits Obligations 2017 2016 2015 Recognized in Other Comprehensive (Income) Loss Actuarial (gains) losses $ (14) $ (31) $ (55) Prior service cost (credit) 91 27 (290) Prior service credit recognized during year 58 76 30 Actuarial losses recognized during year (13) (22) (34) Total recognized in other comprehensive (income) loss $ 122 $ 50 $ (349) Total recognized in net periodic benefit cost and other comprehensive (income) loss $ 96 $ 16 $ (312) The estimated net loss and prior service (credit) for other postretirement benefits that will be amortized from A ccumulated other comprehensive (income) loss into net periodic benefit (income) in 2018 are expected to be $9 million and ($52) million . Major actuarial assumptions used in determining the benefit obligations and net periodic benefit (income) cost for our significant benefit plans are presented in the following table as weighted averages. Pension Benefits U.S. Plans Non-U.S. Plans 2017 2016 2015 2017 2016 2015 Actuarial assumptions used to determine benefit obligations as of December 31: Discount rate 3.68 % 4.20 % 4.46 % 2.36 % 2.51 % 3.49 % Expected annual rate of compensation increase 4.50 % 4.50 % 4.48 % 0.73 % 2.17 % 2.11 % Actuarial assumptions used to determine net periodic benefit (income) cost for years ended December 31: Discount rate - benefit obligation 4.20 % 4.46 % 4.08 % 2.51 % 3.49 % 3.26 % Discount rate - service cost 4.42 % 4.69 N/A 2.14 % 2.92 N/A Discount rate - interest cost 3.49 % 3.59 N/A 2.19 % 3.07 N/A Expected rate of return on plan assets 7.75 % 7.75 % 7.75 % 6.43 % 6.65 % 6.94 % Expected annual rate of compensation increase 4.50 % 4.48 % 4.50 % 2.17 % 2.11 % 2.53 % Other Postretirement Benefits 2017 2016 2015 Actuarial assumptions used to determine benefit obligations as of December 31: Discount rate 3.39 % 3.65 % 3.80 % Actuarial assumptions used to determine net periodic benefit cost for years ended December 31: Discount rate (1) 3.60 % 3.80 % 3.45 % (1) Discount rate was 3.65% for 1/1/17 through 2/28/17. Rate was changed to 3.60% for the remainder of 2017 due to Plan remeasurement as of 3/1/17. The discount rate for our U.S. pension and other postretirement benefits plans reflects the current rate at which the associated liabilities could be settled at the measurement date of December 31 . To determine discount rates for our U.S. pension and other postretirement benefit plans, we use a modeling process that involves matching the expected cash outflows of our benefit plans to a yield curve constructed from a portfolio of high quality, fixed-income debt instruments. We use the single weighted-av erage yield of this hypothetical portfolio as a discount rate benchmark. The discount rate used to determine the other postretirement benefit obligation is lower principally due to a shorter expected duration of other postretirement plan obligations as com pared to pension plan obligations. During the fourth quarter of 2015 we changed the methodology used to estimate the service and interest cost components of net periodic benefit (income) cost for our significant pension plans. Previously, we estimated suc h cost components utilizing a single weighted-average discount rate derived from the yield curve used to measure the pension benefit obligation. The new methodology utilizes a full yield curve approach in the estimation of these cost components by applying the specific spot rates along the yield curve used in the determination of the pension benefit obligation to their underlying projected cash flows and provides a more precise measurement of service and interest costs by improving the correlation between p rojected cash flows and their corresponding spot rates. The change did not affect the measurement of our pension obligation and was applied prospectively as a change in estimate. For our U.S. pension plans, the single weighted average spot rates used to d etermine service and interest costs for 2018 are 3.77 % and 3.27 %. Our expected rate of return on U.S. plan assets of 7.75% is a long-term rate based on historical plan asset returns over varying long-term periods combined with current market conditions a nd b road asset mix considerations. We review the expected rate of return on an annual basis and revise it as appropriate. For non-U.S. benefit plans actuarial assumptions reflect economic and market factors relevant to each country. Pension Benefits The following amounts relate to our significant pension plans with accumulated benefit obligations exceeding the fair value of plan assets. December 31, U.S. Plans Non-U.S. Plans 2017 2016 2017 2016 Projected benefit obligation $371 $17,414 $1,082 $2,294 Accumulated benefit obligation $360 $17,263 $1,018 $2,220 Fair value of plan assets - $16,814 $269 $1,552 Accumulated benefit obligation for our U.S. defined benefit pension plans were $ 18.1 billion and $ 17.3 billion and for our Non-U.S. defined benefit pension plans were $ 6.9 billion and $ 6.4 billion at December 31, 2017 and 2016 . Our asset investment strategy for our U.S. pension plans focuses on maintaining a diversified portfolio using various asset classes in order to achieve our long-term investment objectives on a risk adjusted basis. Our actual invested positions in various securities change over time ba sed on short and longer-term investment opportunities. To achieve our objectives, we have established long-term target allocations as follows: 60 % - 70 % equity securities, 10 % - 20 % fixed income securities and cash, 5 % - 15 % real estate investments, and 10 % - 20 % other types of investments. Equity securities include publicly-traded stock of companies located both inside and outside the United States . Fixed income securities include corporate bonds of companies from diversified industries, mortgage-backed securiti es, and U.S. Treasuries. Real estate investments include direct investments in commercial properties and investments in real estate funds. Other types of investments include investments in private equity and hedge funds that follow several different stra tegies. We review our assets on a regular basis to ensure that we are within the targeted asset allocation ranges and, if necessary, asset balances are adjusted back within target allocations. Our non-U.S. pension assets are typically managed by decentral ized fiduciary committees with the Honeywell Corporate Inve stments group providing funding and investment guidance. O ur non-U.S. investment policies are different for each country as local regulations, funding requirements , and financial and tax considerat ions are part of the funding and investment allocation process in each country. In accordance with ASU 2015-07, “Fair Value Measurement (Topic 820)”, certain investments that are measured at fair value using the net asset value (NAV) per share (or its eq uivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in the following table s are intended to permit reconciliation of the fair value hierarchy to the amounts presented for the total pension be nefits plan assets. The fair values of both our U.S. and non-U.S. pension plans assets by asset category are as follows: U.S. Plans December 31, 2017 Total Level 1 Level 2 Level 3 Equities: Honeywell common stock $ 2,832 $ 2,832 $ - $ - U.S. equities 3,573 3,573 - - Non-U.S. equities 2,631 2,618 13 - Real estate investment trusts 265 265 - - Fixed income: Short term investments 919 919 - - Government securities 428 - 428 - Corporate bonds 5,052 - 5,052 - Mortgage/Asset-backed securities 742 - 742 - Insurance contracts 8 - 8 - Direct investments: Direct private investments 752 - - 752 Real estate properties 597 - - 597 Total 17,799 $ 10,207 $ 6,243 $ 1,349 Investments measured at NAV : Private funds 901 Real estate funds 84 Hedge funds 20 Commingled Funds 181 Total assets at fair value $ 18,985 U.S. Plans December 31, 2016 Total Level 1 Level 2 Level 3 Equities: Honeywell common stock $ 2,140 $ 2,140 $ - $ - U.S. equities 3,583 3,583 - - Non-U.S. equities 2,069 2,037 32 - Real estate investment trusts 203 203 - - Fixed income: Short term investments 1,306 1,306 - - Government securities 305 - 305 - Corporate bonds 4,366 - 4,366 - Mortgage/Asset-backed securities 617 - 617 - Insurance contracts 7 - 7 - Direct investments: Direct private investments 609 - - 609 Real estate properties 664 - - 664 Total 15,869 $ 9,269 $ 5,327 $ 1,273 Investments measured at NAV : Private funds 815 Real estate funds 110 Hedge funds 20 Total assets at fair value $ 16,814 Non-U.S. Plans December 31, 2017 Total Level 1 Level 2 Level 3 Equities: U.S. equities $ 573 $ 420 $ 153 $ - Non-U.S. equities 2,801 99 2,702 - Fixed income: Short-term investments 238 238 - - Government securities 1,685 - 1,685 - Corporate bonds 1,364 - 1,364 - Mortgage/Asset-backed securities 47 - 47 - Insurance contracts 157 - 157 - Investments in private funds: Private funds 52 - 21 31 Real estate funds 149 - - 149 Total 7,066 $ 757 $ 6,129 $ 180 Investments measured at NAV : Private funds 29 Real estate funds 56 Total assets at fair value $ 7,151 Non-U.S. Plans December 31, 2016 Total Level 1 Level 2 Level 3 Equities: U.S. equities $ 650 $ 525 $ 125 $ - Non-U.S. equities 2,153 219 1,934 - Fixed income: Short-term investments 146 146 - - Government securities 1,530 - 1,530 - Corporate bonds 1,220 - 1,220 - Mortgage/Asset-backed securities 18 - 18 - Insurance contracts 152 - 152 - Investments in private funds: Private funds 42 - 19 23 Real estate funds 124 - - 124 Total 6,035 $ 890 $ 4,998 $ 147 Investments measured at NAV : Private funds 33 Real estate funds 52 Total assets at fair value $ 6,120 The following table summarize s changes in the fair value of Level 3 assets for both U.S. and Non-U.S. plans : U.S. Plans Non-U.S. Plans Direct Private Real Estate Private Real Estate Investments Properties Funds Funds Balance at December 31, 2015 $ 535 $ 626 $ 10 $ 152 Actual return on plan assets: Relating to assets still held at year-end (42) 11 1 (22) Relating to assets sold during the year 28 7 - (1) Purchases 141 48 12 - Sales and settlements (53) (28) - (5) Balance at December 31, 2016 609 664 23 124 Actual return on plan assets: Relating to assets still held at year-end 33 2 5 26 Relating to assets sold during the year 51 31 - - Purchases 148 18 6 - Sales and settlements (89) (118) (3) (1) Balance at December 31, 2017 $ 752 $ 597 $ 31 $ 149 The Company enters into futures contracts to gain exposure to certain markets. Sufficient cash or cash equivalents are held by our pension plans to cover the notional value of the futures contracts. At December 31, 2017 and 2016 , our U.S. plans had contracts with notional amounts of $ 4,188 million and $ 3,775 million. At December 31, 2017 and 2016 , our non-U.S. plans had contracts with notional amounts of $ 133 million and $ 55 million. In both our U.S. and non-U.S. pension plan s, the notional derivative exposure is primarily related to outstanding equity futures contracts. Common stocks, preferred stocks, real estate investment trusts, and short-term investments are valued at the closing price reported in the active market in w hich the individual securities are traded. Corporate bonds, mortgages, asset-backed securities, and government securities are valued either by using pricing models, bids provided by brokers or dealers, quoted prices of securities with similar characteristi cs or discounted cash flows and as such include adjustments for certain risks that may not be observable such as credit and liquidity risks. Certain securities are held in collective trust funds which are valued using net asset values provided by the admin istrators of the funds. Investments in private equity, debt, real estate and hedge funds and direct private investments are valued at estimated fair value based on quarterly financial information received from the investment advisor and/or general partner. Investments in real estate properties are valued on a quarterly basis using the income approach. Valuation estimates are periodically supplemented by third party appraisals. Our general funding policy for qualified defined benefit pension plans is to co ntribute amounts at least sufficient to satisfy regulatory funding standards. In 2017 , 2016 , and 2015 , we were not required to make contributions to our U.S. pension plans and no contributions were made . We are not required to make any contributi ons to our U.S. pension plans in 2018 . In 2017, contributions of $ 136 million were made to our non-U.S. pension plans to satisfy regulatory funding requirements. In 2018 , we expect to make contributions of cash and/or marketable securities of approximately $ 142 million to our non-U.S. pension plans to satisfy regulatory funding standards. Contributions for both our U.S. and non-U.S. pension plans do not reflect benefits paid directly from Company assets. Benefit payments, including amounts to be paid from Company assets, and reflecting expected future service, as appropriate, are expected to be paid as follows: U.S. Plans Non-U.S. Plans 2018 $ 1,170 $ 261 2019 1,159 256 2020 1,165 264 2021 1,169 271 2022 1,176 289 2023-2027 5,795 1,477 Other Postretirement Benefits December 31, 2017 2016 Assumed health care cost trend rate: Health care cost trend rate assumed for next year 6.50 % 6.50 % Rate that the cost trend rate gradually declines to 5.00 % 5.00 % Year that the rate reaches the rate it is assumed to remain at 2023 2023 The assumed health care cost trend rate has a significant effect on the amounts reported. A one-percentage-point change in the assumed health care cost trend rate would have the following effects: 1 percentage point Increase Decrease Effect on total of service and interest cost components $ 1 $ (1) Effect on postretirement benefit obligation $ 28 $ (22) Benefit payments reflecting expected future service, as appropriate, are expected to be paid as follows: Without Impact of Net of Medicare Subsidy Medicare Subsidy 2018 $ 67 $ 62 2019 62 57 2020 58 53 2021 54 49 2022 50 46 2023-2027 161 145 |
SEGMENT FINANCIAL DATA
SEGMENT FINANCIAL DATA | 12 Months Ended |
Dec. 31, 2017 | |
Segment Financial Data [Abstract] | |
Segment Financial Data | Note 21 . 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 performan ce based on segment profit. Segment profit is measured as segment income (loss) before taxes excluding general corporate unallocated expense, other income (expense), interest and other financial charges, stock compensation expenses, pension and other postr etirement benefits (expense), stock compensation expense and repositioning and other charges. Effective October 2017, the Company realign ed the Smart Energy business, previously part of th e Home and Building Technologies segment, into the Process Solutions business within the Performa nce Materials and Technologies segment. Effective July 2016, the Company realigned the business units comprising its Automation and Control Solutions reporting segment by forming two new reportable opera ting segments: Home and Building Technologies and Safety and Productivity Solutions. These realignments have no impact on the Company’s historical consolidated financial position, results of operations or cash flows. Prior period amounts have been recl assified to conform to current period segment presentation. Years Ended December 31, Net Sales 2017 2016 2015 Aerospace Product $ 10,067 $ 9,926 $ 10,379 Service 4,712 4,825 4,858 Total 14,779 14,751 15,237 Home and Building Technologies Product 8,396 8,250 7,850 Service 1,381 1,240 1,176 Total 9,777 9,490 9,026 Performance Materials and Technologies Product 8,521 8,725 7,809 Service 1,818 1,711 1,801 Total 10,339 10,436 9,610 Safety and Productivity Solutions Product 5,333 4,461 4,657 Service 306 164 51 Total 5,639 4,625 4,708 $ 40,534 $ 39,302 $ 38,581 Depreciation and amortization Aerospace $ 279 $ 275 $ 267 Home and Building Technologies 118 107 100 Performance Materials and Technologies 441 399 286 Safety and Productivity Solutions 219 188 173 Corporate 58 61 57 $ 1,115 $ 1,030 $ 883 Segment Profit Aerospace $ 3,288 $ 2,991 $ 3,218 Home and Building Technologies 1,650 1,621 1,492 Performance Materials and Technologies 2,206 2,112 2,010 Safety and Productivity Solutions 852 680 746 Corporate (306) (218) (210) $ 7,690 $ 7,186 $ 7,256 Capital expenditures Aerospace $ 380 $ 331 $ 314 Home and Building Technologies 88 92 103 Performance Materials and Technologies 303 473 481 Safety and Productivity Solutions 79 55 47 Corporate 181 144 128 $ 1,031 $ 1,095 $ 1,073 December 31, Total Assets 2017 2016 2015 Aerospace $ 11,769 $ 11,426 $ 11,235 Home and Building Technologies 10,592 10,392 10,464 Performance Materials and Technologies 17,203 15,835 15,185 Safety and Productivity Solutions 9,456 8,951 7,006 Corporate 10,367 7,542 5,426 $ 59,387 $ 54,146 $ 49,316 A reconciliation of segment profit to consolidated income from continuing operations before taxes are as follows: Years Ended December 31, 2017 2016 2015 Segment Profit $ 7,690 $ 7,186 $ 7,256 Other income (expense) (1) 28 71 38 Interest and other financial charges (316) (338) (310) Stock compensation expense (2) (176) (184) (175) Pension ongoing income (expense) (2) 713 601 430 Pension mark-to-market expense (2) (87) (273) (67) Other postretirement income (expense) (2) 21 32 (40) Repositioning and other charges (2) (971) (648) (546) Income before taxes $ 6,902 $ 6,447 $ 6,586 (1) Equity income (loss) of affiliated companies is included in Segment Profit. (2) Amounts included in cost of products and services sold and selling, general and administrative expenses. |
GEOGRAPHIC AREAS FINANCIAL DATA
GEOGRAPHIC AREAS FINANCIAL DATA | 12 Months Ended |
Dec. 31, 2017 | |
Geographic Areas Financial Data [Abstract] | |
Geographic Areas - Financial Data | Note 22 . Geographic Areas - Financial Data Net Sales (1) Long-lived Assets (2) Years Ended December 31, December 31, 2017 2016 2015 2017 2016 2015 United States $ 22,722 $ 22,652 $ 23,771 $ 3,604 $ 3,744 $ 3,939 Europe 10,400 9,966 8,674 927 741 746 Other International 7,412 6,684 6,136 1,395 1,308 1,104 $ 40,534 $ 39,302 $ 38,581 $ 5,926 $ 5,793 $ 5,789 (1) Sales between geographic areas approximate market and are not significant. Net sales are classified according to their country of origin. Included in United States net sales are export sales of $4,974 million, $5,290 million and $5,526 million in 2017, 2016 and 2015. (2) Long-lived assets are comprised of property, plant and equipment - net. |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 12 Months Ended |
Dec. 31, 2017 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | Note 23 . Supplemental Cash Flow Information Years Ended December 31, 2017 2016 2015 Payments for repositioning and other charges: Severance and exit cost payments $ (177) $ (228) $ (118) Environmental payments (212) (228) (273) Insurance receipts for asbestos related liabilities 27 43 63 Asbestos related liability payments (266) (212) (209) $ (628) $ (625) $ (537) Interest paid, net of amounts capitalized $ 306 $ 329 $ 310 Income taxes paid, net of refunds 1,751 1,142 1,192 Non-cash investing and financing activities: Common stock contributed to savings plans 172 168 174 Marketable securities contributed to non-U.S. pension plans 89 106 109 Non-cash operating activities reported within Other of the Consolidated Statement of Cash Flows included the noncurrent portion of the 2017 provisional tax charge of $ 1,737 due to the imposition of the mandatory transition tax on the deemed repatriation of certain undistributed foreign earnings, and within Deferred income taxes the provisional tax charge of $ 2,0 9 4 related to the estimated foreign and state taxes on undistributed earnings of its foreign affiliates (s ee Note 5 Income Taxes ). |
UNAUDITED QUARTERLY FINANCIAL I
UNAUDITED QUARTERLY FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2017 | |
Unaudited Quarterly Financial Information [Abstract] | |
Unaudited Quarterly Financial Information | Note 24 . Unaudited Quarterly Financial Information 2017 Mar. 31 June 30 Sept. 30 Dec. 31 (3) Year Net Sales $ 9,492 $ 10,078 $ 10,121 $ 10,843 $ 40,534 Gross Profit 3,136 3,228 3,248 3,347 12,959 Net income (loss) attributable to Honeywell 1,326 1,392 1,348 (2,411) 1,655 Earnings (loss) per common share - basic (1) 1.74 1.82 1.77 (3.18) 2.17 Earnings (loss) per common share - assuming dilution (1) (2) 1.71 1.80 1.75 (3.18) 2.14 Cash dividends per common share 0.6650 0.6650 0.6650 0.7450 2.74 Market price per common share High 127.25 135.84 141.75 155.96 155.96 Low 116.18 122.50 133.37 142.55 116.18 2016 Mar. 31 June 30 Sept. 30 Dec. 31 Year Net Sales $ 9,522 $ 9,991 $ 9,804 $ 9,985 $ 39,302 Gross Profit 2,975 3,170 2,901 3,106 12,152 Net income attributable to Honeywell 1,216 1,319 1,240 1,034 4,809 Earnings per common share - basic 1.58 1.73 1.62 1.36 6.29 Earnings per common share - assuming dilution 1.56 1.70 1.60 1.34 6.20 Cash dividends per common share 0.5950 0.5950 0.5950 0.6650 2.45 Market price per common share High 113.23 117.32 119.88 118.09 119.88 Low 96.24 111.46 111.60 105.78 96.24 (1) Total for the full year may differ from the sum of the individual quarters due to the requirement to use weighted average shares each quarter, which may fluctuate with share repurchases and share issuances, and due to the impact of losses in a quarter. (2) Due to a loss for the quarter ended December 31, 2017, no incremental shares were included because the effect would be antidilutive. (3) For the quarter ended December 31, 2017 Net income (loss) attributable to Honeywell, Earnings (loss) per common share - basic and Earnings (loss) per common share - assuming dilution were impacted by the Tax Cuts and Jobs Act; see Note 5 Income Taxes for further details. |
SUMMARY OF SIGNIFICANT ACCOUN31
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Significant Accounting Policies [Abstract] | |
Accounting Principles | Accounting Principles —The financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America . The following is a description of Honeywell’s significant accounting policies. |
Principles of Consolidation | Principles of Consolidation —The consolidated financial statements include the accounts of Honeywell International Inc. and all of its subsidiaries and entities in which a controlling interest is m aintained. Our consolidation policy requires equity investments that we exercise significant influence over but do not control the investee and are not the primary beneficiary of the investee’s activities to be accounted for using the equity method. Inves tments through which we are not able to exercise significant influence over the investee and which we do not have readily determinable fair values are accounted for under the cost method. All intercompany transactions and balances are eliminated in consol idation . |
Property, Plant and Equipment | Property, Plant and Equipment —Property, plant and equipment are recorded at cost, including any asset retirement obligations, less accumulated depreciation. For financial reporting, the straight-line method of depreciation is used over the estimat ed useful lives of 10 to 50 years for buildings and improvements and 2 to 16 years for machinery and equipment. Recognition of the fair value of obligations associated with the retirement of tangible long-lived assets is required when there is a legal obli gation to incur such costs. Upon initial recognition of a liability, the cost is capitalized as part of the related long-lived asset and depreciated over the corresponding asset’s useful life. |
Goodwill and Indefinite-Lived Intangible Assets | Goodwill and Indefinite-Lived Intangible Assets —Goodwill and in definite - lived intangible assets are subject to impairment tes ting annually as of March 31, and whenever events or changes in circumstances indicate that the carrying amount may not be fully recoverable. This testing compares carrying values to fair values and, when appropriate, the carrying value of these assets is reduced to fair value. We completed our annual goodwill impairment test as of March 31, 2017 and determined that there was no impairm ent as of that date. |
Other Intangible Assets with Determinable Lives | Other Intangible Assets with Determin able Lives —Other intangible assets with determinable lives consist of customer lists, technology, patents and trademarks and other intangibles and are amortized over their estimated useful lives, ranging from 2 to 24 years. |
Sales Recognition | Sales Recognition —Product and service sales are recognized when persuasive evidence of an arrangement exists, product delivery has occurred or services have been rendered, pricing is fixed or determinable, and collection is reasonably assured. Service sales, principally representing re pair, maintenance an d engineering activities are recognized over the contractual period or as services are rendered. Sales under long- term contracts are recorded on a percentage-of-completion method measured on the cost-to-cost basis for engineering-type c ontracts and the units-of-delivery basis for production-type contracts. Provisions for anticipated losses on long-term contracts are recorded in full when such losses become evident. Revenues from contracts with multiple element arrangements are recognized as each element is earned based on the relative fair value of each element provided the delivered elements have value to customers on a standalone basis. Amounts allocated to each element are based on its objectively determined fair value, such as the sal es price for the product or service when it is sold separately or competitor prices for similar products or services. |
Environmental | Environmental — We accrue costs related to environmental matters when it is probable that we have incurred a liability related to a contamin ated site and the amount can be reasonably estimated. For additional information, see Note 19 Commitments and Contingencies . |
Asbestos Related Contingencies and Insurance Recoveries | Asbestos Related Contingencies and Insurance Recoveries —We recognize a liability for any asbestos related contingency that is pr obable of occurrence and reasonably estimable. In connection with the recognition of liabilities for asbestos related matters, we record asbestos related insurance recoveries that are deemed probable. For additional information, see Note 19 Commitments and Contingencies . |
Aerospace Sales Incentives | Aerospace Sales Incentives —We provide sales incentives to commercial aircraft manufacturers and airlines in connection with their selection of our aircraft equipment, predominately wheel and braking system hardware , avionics, and auxilia ry power units, for installation on commercial aircraf t. These incentives consist of free or deeply discounted products, credits for future purchases of product and upfront cash payments . T hese costs are recognized in the period incurred as cost of product s sold or as a reduction to sales, as appropriate. |
Research and Development | Research and Development —Research and development costs for company-sponsored research and development projects are expensed as incurred. Such cos ts are principally included in cost of p roducts s old and were $ 1,835 million , $ 1,864 million and $ 1,856 million in 2017 , 2016 and 2015 . The 2016 research and development costs previously disclosed have been revised to reflect the amounts recorded in the 2016 Consolidated Stateme nt of Operations and had no impact on the results of operations. |
Stock-Based Compensation Plans | Stock-Based Compensation Plans —The principal awards issued under our stock-based compensation plans, which are described in Note 18 Stock-Based Compensation Plans, are non-qualified stock options a nd restricted stock units . The cost for such awards is measured at the grant date based on the fair value of the award. The value of the portion of the award that is ultimately expected to vest is recognized as expense over th e requisite service periods (generally the vesting period of the equity award) and is included in selling, general and administrative expense s . Forfeitures are estimated at the time o f grant to recognize expense for those award s that are expected to vest a nd are based on our historical forfeiture rates . |
Pension Benefits | Pension Benefits — We recognize net actuarial gains or losses in excess of 10 % of t he greater of the fair value of plan assets or the plans’ projected benefit obligation (the corridor) annually in the fourth q uarter each year (MTM Adjustment) , and, if applicable, in any quarter in which an interim remeasurement is triggered . The remaining components of pension (income) expense, primarily service and interest costs and assumed return on plan assets, are recogni zed on a quarterly basis ( Pension ongoing (income) expense ). |
Foreign Currency Translation | Foreign Currency Translation — Assets and liabilities of subsidiaries operating outside the United States with a functional currency other than U.S. Dollars are translated into U.S. Dollars usin g year-end exchange rates. Sales, costs and expenses are translated at the average exchange rates in effect during the year. Foreign currency translation gains and losses are included as a component of Accumulated other comprehensive income (loss). For sub sidiaries operating in highly inflationary environments, inventories and property, plant and equipment, including related expenses, are remeasured at the exchange rate in effect on the date the assets were acquired, while monetary assets and liabilities ar e remeasured at year-end exchange rates. Remeasurement adjustments for these subsidiaries are included in earnings. |
Derivative Financial Instruments | Derivative Financial Instruments — We minimize our risks from interest and foreign currency exchange rate fluctuations through our normal ope rating and financing activities and, when deemed appropriate through the use of derivative financial instruments. Derivative financial instruments are used to manage risk and are not used for trading or other speculative purposes. We do not use leveraged d erivative financial instruments. Derivative financial instruments that qualify for hedge accounting must be designated and effective as a hedge of the identified risk exposure at the inception of the contract. Accordingly, changes in fair value of the deri vative contract must be highly correlated with changes in fair value of the underlying hedged item at inception of the hedge and over the life of the hedge contract. All derivatives are recorded on the balance sheet as assets or liabilities and measured at fair value. For derivatives designated as hedges of the fair value of assets or liabilities, the changes in fair values of both the derivatives and the hedged items are recorded in current earnings. For derivatives designated as cash flow hedges, the effective portion of the changes in fair value of the derivatives are recorded in Accumulated other comprehensive income (loss) and subsequently recognized in earnings wh en the hedged items impact earnings. Cash flows of such derivative financial instruments are classified consistent with the underlying hedged item . For derivative instruments that are designated and qualify as a net investment hedge, the effective portion of the derivative's gain or loss is reported as a component of Other comprehensive income (loss) and recorded in accumulated other comprehensive income. The gain or loss will be subsequently reclassified into net earnings when the hedged net investment is either sold or substantially liquidated . |
Income Taxes | Income Taxes — Significant judgment is required in evaluating tax positions. We establish additional reserves for income taxes when, despite the belief that tax positions are fully supportable, there remain certain positions that do not meet the minimum recognition threshold. The approach for evaluating certain and uncertain tax positions is defined by the authoritative guidance which determines when a tax position is more likely than not to be sustained upon examina tion by the applicable taxing authority. In the normal course of business, the Company and its subsidiaries are examined by various federal, state and foreign tax authorities. We regularly assess the potential outcomes of these examinations and any future examinations for the current or prior years in determining the adequacy of our provision for income taxes. We continually assess the likelihood and amount of potential adjustments and adjust the income tax provision, the current tax liability and deferred taxes in the period in which the facts that give rise to a change in estimate become known. |
Cash And Cash Equivalents | Cash and cash equivalents — Cash and cash equivalents include cash on hand and highly liquid investments having an original maturity of three months or less. |
Earnings Per Share | Earni ngs Per Share —Basic earnings per share is based on the weighted average number of common shares outstanding. Diluted earnings per share is based on the weighted average number of common shares outstanding and all dilutive potential common shares outstandin g. |
Reclassifications | Reclassifications —Certain prior year amounts have been reclassified to conform to the current year presentation. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements —We consider the applicability and impact of all Accounting Standards Updates (ASUs) issued by the Financ ial 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 s tatements). In May 2014, and in following related amendments, the FASB issued guidance on revenue from contracts with customers that supersedes upon adoption previous revenue recognition guidance, including industry-specific guidance. The underlying princi ple requires an entity to recognize revenue for the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. The guidance provides a five-step analysis of transactions to det ermine when and how revenue is recognized. Other major provisions include capitalization of certain contract costs, consideration of time value of money in the transaction price, and in certain circumstances , allowing estimates of variable consideration to be recognized before contingencies are resolved. The guidance also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. The Company has completed its evaluation of the new standard and has assessed the impacts of adoption on the Consolidated Financial Statements and disclosures. Based on the evaluation of our current contracts and revenue streams, revenue recognition is mostly consistent under both the previous and new standard, with the exception of two key revenue streams within our Aerospace segment, which are described below. First, t he previous accounting policy for costs incurred for nonrecurring engineering and development activities of our A erospace products with commercial customers was generally to record the expense as incurred. Any customer funding received for such efforts was recognized when earned as a reduction of cost of sales. Upon adoption of the new standard, the customer funding is generally classified as revenue and not as a reduction of cost of sales. Such revenues are deferred and subsequently recognized as products are delivered to the customers. Additionally, under the new guidance, expenses incurred, up to the customer agre ed funded amount, are deferred as an asset and subsequently recognized as cost of sales as products are delivered to the customer. As a result of these changes, both deferred costs (assets) and deferred revenue (liability) increased by approximately $ 1 ,090 million effective January 1, 2018. The aforementioned change in classification within the Consolidated Statement of Operations and timing difference in recognition is expected to have a minor impact on our gross margin percentage but no change t o gross profit. Second, the accounting for revenues for our mechanical service programs at our Aerospace segment are impacted. Our previous policy was to recognize revenue over time as costs were incurred (input method). Upon adoption, we continue to reco gnize revenue over time, but recognition is based on a series of distinct services using the output method. At adoption, this change results in unbilled receivables and deferred revenue being eliminated through retained earnings. We adopted the new standing effective January 1, 2018 using the modified retrospective transition method. The cumulative effect recorded to the opening balance of retained earnings of the above impacted revenue streams is $ 75 million. The disclosures in our notes to Consolidated Financial Statements related to revenue recognition will be significantly expanded under the new standard, specifically around the quantitative and qualitative information about performance obligations, changes in contract assets and liabilities, and disaggregation of revenue. In February 2016, the FASB issued guidance on accounting for leases which requires lessees to recognize most leases on their balance sheets for the rights and obligations created by those leases. The guidance requires enhanced disclosures regarding the amount, timing, and uncertainty of cash flows arising from leases that will be effective for interim and annual periods beginning after December 15, 2018, with early adoption permitted. We expect to adopt the requirements of the new standard effective Janu ary 1, 2019. The guidance requires the use of a modified retrospective approach. We are currently evaluating our lease portfolio to assess overall financial statement impact and planning for adoption and implementation of this standard. We will continue t o evaluate the adoption impact of this standard on our consolidated financial position, results of operations, and related notes to financial statements . In October 2016, the FASB issued an accounting standard update which requires an entity to recognize t he income tax consequences of an intra-entity transfer of an asset, other than inventory, at the time the entity transfer occurs rather than when the asset is ultimately transferred to a third party, as required under current U.S. GAAP. The guidance is int ended to reduce diversity in practice, particularly for transfers involving intellectual property. Subsequent to 2017 fiscal year, we adopted the accounting standard update as of January 1, 2018. The guidance requires application on a modified retrospectiv e basis. The adoption of this guidance increases our deferred tax assets by approximately $ 340 million with a cumulative-effect adjustment to retained earnings of the same amount. In March 2017, the FASB issued guidance on presentation of net periodic pen sion cost and net periodic postretirement benefit cost. The new standard requires that an employer disaggregate the service cost component of net benefit cost. The employer is required to report the service cost component in the same line item or items in the statement of operations as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the statement of operations separately from the se rvice cost component, such as in other income and expense . The guidance is effective for fiscal years beginning after December 15, 2017. Subsequent to 2017 fiscal year, we adopted the accounting standard update as of January 1, 2018. This guidance impacts the presentation of our Consolidated Financial Statements. Our current presentation of the service cost component is consistent with the requirements of the new standard. We will present the other components within Other (income) expense (we currently pres ent the other components within Cost of products and services sold and Selling, general, and administrative expenses). All components will continue to be excluded from Segment Profit (see Note 20 Pension and Other Postretirement Benefits for components of net period benefit cost). In August 2017, the FASB issued amendments to hedge accounting guidance. These amendments are intended to better align a company's risk management strategies and financial reporting for hedging relationships. Under the new guida nce, more hedging strategies will be eligible for hedge accounting and the application of hedge accounting is simplified. In addition, the new guidance amends presentation and disclosure requirements. The guidance is effective for fiscal years beginning af ter December 15, 2018 with early adoption permitted, including the interim periods within those years. The guidance requires the use of a modified retrospective approach. We are currently evaluating whether to early adopt the new guidance and the impact of this amendment on our consolidated financial position, results of operations, and related notes to financial statements . |
ACQUISITIONS AND DIVESTITURES (
ACQUISITIONS AND DIVESTITURES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Acquisitions [Abstract] | |
Schedule Of Business Acquisitions By Acquisition [Text Block] | Current assets $519 Intangible assets 2,163 Other noncurrent assets 193 Current liabilities (566) Noncurrent liabilities (973) Net assets acquired 1,336 Noncontrolling interest (2) Goodwill 3,565 Purchase Price $4,899 |
REPOSITIONING AND OTHER CHARG33
REPOSITIONING AND OTHER CHARGES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Repositioning And Other Charges [Abstract] | |
Repositioning and other charges text block | A summary of repositioning and other charges follows: Years Ended December 31, 2017 2016 2015 Severance $ 305 $ 283 $ 197 Asset impairments 142 43 13 Exit costs 60 43 6 Reserve adjustments (16) (109) (53) Total net repositioning charge 491 260 163 Asbestos related litigation charges, net of insurance 207 222 189 Probable and reasonably estimable environmental liabilities 287 195 194 Other 36 18 - Total net repositioning and other charges $ 1,021 $ 695 $ 546 |
Pretax distribution of total net repositioning and other charges by income statement classification | The following table summarizes the pre-tax distribution of total net repositioning and other charges by classification: Years Ended December 31, 2017 2016 2015 Cost of products and services sold $ 784 $ 522 $ 483 Selling, general and administrative expenses 187 126 63 Other (income) expense 50 47 - $ 1,021 $ 695 $ 546 |
Pretax Impact of Total Net Repositioning and Other Charges by Segment | The following table summarizes the pre-tax impact of total net repositioning and other charges by segment: Years Ended December 31, 2017 2016 2015 Aerospace $ 296 $ 298 $ 211 Home and Building Technologies 78 28 43 Performance Materials and Technologies 102 101 40 Safety and Productivity Solutions 51 1 34 Corporate 494 267 218 $ 1,021 $ 695 $ 546 |
Total Repositioning Reserves | The following table summarizes the status of our total repositioning reserves: Severance Asset Exit Costs Impairments Costs Total Balance at December 31, 2014 $ 285 $ - $ 30 $ 315 2015 charges 197 13 6 216 2015 usage - cash (109) - (9) (118) 2015 usage - noncash - (13) - (13) Acquisitions 16 - - 16 Adjustments (49) - (4) (53) Foreign currency translation (11) - (2) (13) Balance at December 31, 2015 329 - 21 350 2016 charges 283 43 43 369 2016 usage - cash (203) - (25) (228) 2016 usage - noncash (6) (43) - (49) Adjustments (106) - (3) (109) Foreign currency translation 1 - (3) (2) Balance at December 31, 2016 298 - 33 331 2017 charges 305 142 60 507 2017 usage - cash (163) - (14) (177) 2017 usage - noncash - (142) - (142) Adjustments and reclassifications (13) - (10) (23) Foreign currency translation 15 - 2 17 Balance at December 31, 2017 $ 442 $ - $ 71 $ 513 |
OTHER (INCOME) EXPENSE (Tables)
OTHER (INCOME) EXPENSE (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Income Expense [Abstract] | |
Other (income) expense | Years Ended December 31, 2017 2016 2015 Equity (income) loss of affiliated companies $ (39) $ (31) $ (30) (Gain) loss on sale of non-strategic businesses and assets 7 (178) 1 Interest income (151) (106) (104) Foreign exchange 18 12 43 Other, net 98 201 22 $ (67) $ (102) $ (68) |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Taxes [Abstract] | |
Income by region | Income before taxes Years Ended December 31, 2017 2016 2015 U.S. $ 2,825 $ 2,976 $ 3,361 Non-U.S. 4,077 3,471 3,225 $ 6,902 $ 6,447 $ 6,586 |
Tax Expense Current and Deferred | Tax expense (benefit) Years Ended December 31, 2017 2016 2015 Tax expense (benefit) consists of Current: U.S. Federal $ 2,061 $ 869 $ 786 U.S. State 62 97 78 Non-U.S. 787 559 560 $ 2,910 $ 1,525 $ 1,424 Deferred: U.S. Federal $ 39 $ 38 $ 196 U.S. State 132 17 49 Non-U.S. 2,123 21 70 2,294 76 315 $ 5,204 $ 1,601 $ 1,739 |
Effective income tax rate reconciliation | Years Ended December 31, 2017 2016 2015 The U.S. federal statutory income tax rate is reconciled to our effective income tax rate as follows: U.S. federal statutory income tax rate 35.0 % 35.0 % 35.0 % Taxes on non-U.S. earnings below U.S. tax rate (1) (12.9) (8.0) (8.0) U.S. state income taxes (1) 1.4 1.1 1.2 Manufacturing incentives (0.7) (0.7) (1.5) Employee stock ownership plan dividend tax benefit (0.4) (0.5) (0.4) Tax credits (0.9) (0.7) (1.0) Reserves for tax contingencies 1.6 1.2 0.7 Employee share-based payments (2.9) (2.0) - U.S. Tax Cuts and Jobs Act enactment 54.4 - - All other items—net 0.8 (0.6) 0.4 75.4 % 24.8 % 26.4 % (1) Net of changes in valuation allowance |
Deferred Tax Assets, Liabilities | December 31, Deferred tax assets: 2017 2016 Pension $ - $ 411 Postretirement benefits other than pensions 177 262 Asbestos and environmental 325 471 Employee compensation and benefits 218 418 Other accruals and reserves 376 765 Net operating and capital losses 632 669 Tax credit carryforwards 510 206 Gross deferred tax assets 2,238 3,202 Valuation allowance (663) (621) Total deferred tax assets $ 1,575 $ 2,581 Deferred tax liabilities: Pension………………………………………………. $ (40) $ - Property, plant and equipment (439) (560) Intangibles (1,326) (1,843) Unremitted earnings of foreign subsidiaries (2,151) (43) Other asset basis differences (210) (231) Other (67) (43) Total deferred tax liabilities (4,233) (2,720) Net deferred tax liability $ (2,658) $ (139) |
Summary of Operating Loss Carryforwards | Net Operating Expiration and Capital Loss Tax Credit Jurisdiction Period Carryforwards Carryforwards U.S. Federal 2037 $ 16 $ 332 U.S. State 2037 508 24 Non-U.S. 2037 607 159 Non-U.S. Indefinite 2,211 - $ 3,342 $ 515 |
Change in unrecognized tax benefits | 2017 2016 2015 Change in unrecognized tax benefits: Balance at beginning of year $ 877 $ 765 $ 659 Gross increases related to current period tax positions 94 96 56 Gross increases related to prior periods tax positions 153 88 175 Gross decreases related to prior periods tax positions (91) (33) (72) Decrease related to resolutions of audits with tax authorities (76) (3) (11) Expiration of the statute of limitations for the assessment of taxes (54) (10) (13) Foreign currency translation 44 (26) (29) Balance at end of year $ 947 $ 877 $ 765 |
Summary of Income Tax Examinations | Open Tax Years Based on Originally Filed Returns Jurisdiction Examination in Examination not yet progress initiated U.S. Federal 2013 - 2016 2015 - 2017 U.S. State 2011 - 2016 2012 - 2017 Australia N/A 2016 - 2017 Canada (1) 2012 - 2014, 2016 2015 - 2017 China 2003 - 2017 N/A France 2012 - 2017 2006 - 2011 Germany (1) 2008 - 2015 2016 - 2017 India 1999 - 2015 2016 - 2017 Switzerland (1) 2012 - 2016 2017 United Kingdom 2013 - 2015 2016 - 2017 (1) Includes provincial or similar local jurisdictions, as applicable. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share (Tables) [Abstract] | |
Earnings per share basic | Years Ended December 31, Basic 2017 2016 2015 Net income attributable to Honeywell $ 1,655 $ 4,809 $ 4,768 Weighted average shares outstanding 762.1 764.3 779.8 Earnings per share of common stock $ 2.17 $ 6.29 $ 6.11 |
Earnings per share diluted | Years Ended December 31, Assuming Dilution 2017 2016 2015 Net income attributable to Honeywell $ 1,655 $ 4,809 $ 4,768 Average Shares Weighted average shares outstanding 762.1 764.3 779.8 Dilutive securities issuable - stock plans 10.0 11.0 9.5 Total weighted average diluted shares outstanding 772.1 775.3 789.3 Earnings per share of common stock - assuming dilution $ 2.14 $ 6.20 $ 6.04 |
ACCOUNTS RECEIVABLES (Tables)
ACCOUNTS RECEIVABLES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounts Receivable, Net Current [Abstract] | |
Schedule of trade, notes, and other receivables | December 31, 2017 2016 Trade $ 9,068 $ 8,449 Less - Allowance for doubtful accounts (202) (272) 8,866 8,177 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Inventories [Abstract] | |
Inventories | December 31, 2017 2016 Raw materials $ 1,193 $ 1,104 Work in process 790 775 Finished products 2,669 2,552 4,652 4,431 Reduction to LIFO cost basis (39) (65) $ 4,613 $ 4,366 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property Plant And Equipment [Abstract] | |
Plant, property and equipment | December 31, 2017 2016 Land and improvements $ 287 $ 363 Machinery and equipment 10,762 9,956 Buildings and improvements 3,463 3,248 Construction in progress 675 940 15,187 14,507 Less—Accumulated depreciation (9,261) (8,714) $ 5,926 $ 5,793 |
GOODWILL AND OTHER INTANGIBLE40
GOODWILL AND OTHER INTANGIBLES-NET (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill And Other Intangible Assets, Net (Tables) [Abstract] | |
Carrying amount of goodwill | Currency December 31, Acquisitions/ Translation December 31, 2016 Divestitures Adjustment 2017 Aerospace $ 2,441 $ 2 $ 25 $ 2,468 Home and Building Technologies 5,807 (32) 185 5,960 Performance Materials and Technologies 4,924 34 284 5,242 Safety and Productivity Solutions 4,535 (8) 80 4,607 $ 17,707 $ (4) $ 574 $ 18,277 |
Acquired Finite-Lived Intangible Assets [Table Text Block] | Other intangible assets are comprised of: December 31, 2017 December 31, 2016 Gross Net Gross Net Carrying Accumulated Carrying Carrying Accumulated Carrying Amount Amortization Amount Amount Amortization Amount Determinable life intangibles: Patents and technology $ 1,990 $ (1,272) $ 718 $ 1,841 $ (1,141) $ 700 Customer relationships 3,911 (1,366) 2,545 3,816 (1,098) 2,718 Trademarks 328 (189) 139 284 (156) 128 Other 353 (304) 49 359 (284) 75 6,582 (3,131) 3,451 6,300 (2,679) 3,621 Indefinite life intangibles: Trademarks 1,045 - 1,045 1,013 - 1,013 $ 7,627 $ (3,131) $ 4,496 $ 7,313 $ (2,679) $ 4,634 |
Acquired Indefinite-Lived Intangible Assets [Table Text Block] | Other intangible assets are comprised of: December 31, 2017 December 31, 2016 Gross Net Gross Net Carrying Accumulated Carrying Carrying Accumulated Carrying Amount Amortization Amount Amount Amortization Amount Determinable life intangibles: Patents and technology $ 1,990 $ (1,272) $ 718 $ 1,841 $ (1,141) $ 700 Customer relationships 3,911 (1,366) 2,545 3,816 (1,098) 2,718 Trademarks 328 (189) 139 284 (156) 128 Other 353 (304) 49 359 (284) 75 6,582 (3,131) 3,451 6,300 (2,679) 3,621 Indefinite life intangibles: Trademarks 1,045 - 1,045 1,013 - 1,013 $ 7,627 $ (3,131) $ 4,496 $ 7,313 $ (2,679) $ 4,634 |
ACCRUED LIABILITIES (Tables)
ACCRUED LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accrued Liabilities Current (Tables) [Abstract] | |
Accrued liabilities | December 31, 2017 2016 Customer advances and deferred income $ 2,198 $ 2,151 Compensation, benefit and other employee related 1,420 1,489 Asbestos related liabilities 350 546 Repositioning 508 322 Product warranties and performance guarantees 307 351 Environmental costs 226 252 Income taxes 134 430 Accrued interest 94 97 Other taxes 277 290 Insurance 199 172 Other (primarily operating expenses) 1,255 948 $ 6,968 $ 7,048 |
LONG-TERM DEBT AND CREDIT AGR42
LONG-TERM DEBT AND CREDIT AGREEMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Long Term Debt And Credit Agreements Tables [Abstract] | |
Long-Term Debt and Credit Agreements | December 31, 2017 2016 Two year floating rate Euro notes due 2018 1,199 1,054 1.40% notes due 2019 1,250 1,250 Three year floating rate notes due 2019 250 250 Two year floating rate notes due 2019 450 - 1.80% notes due 2019 750 - 0.65% Euro notes due 2020 1,199 1,054 4.25% notes due 2021 800 800 1.85% notes due 2021 1,500 1,500 1.30% Euro notes due 2023 1,499 1,317 3.35% notes due 2023 300 300 2.50% notes due 2026 1,500 1,500 2.25% Euro notes due 2028 900 790 5.70% notes due 2036 441 550 5.70% notes due 2037 462 600 5.375% notes due 2041 417 600 3.812% notes due 2047 445 - Industrial development bond obligations, floating rate maturing at various dates through 2037 22 30 6.625% debentures due 2028 201 216 9.065% debentures due 2033 51 51 Other (including capitalized leases and debt issuance costs), 0.4% weighted average maturing at various dates through 2023 288 547 13,924 12,409 Less: current portion (1,351) (227) $ 12,573 $ 12,182 |
Principal Payments on Long-Term Debt | The schedule of principal payments on long-term debt is as follows: December 31, 2017 2018 $ 1,351 2019 2,835 2020 1,390 2021 2,306 2022 4 Thereafter 6,038 13,924 Less-current portion (1,351) $ 12,573 |
LEASE COMMITMENTS (Tables)
LEASE COMMITMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Lease Commitments [Abstract] | |
Lease commitments | At December 31, 2017 2018 $ 295 2019 226 2020 161 2021 121 2022 97 Thereafter 226 $ 1,126 |
FINANCIAL INSTRUMENTS AND FAI44
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASURES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Financial Instruments And Fair Value Measures [Abstract] | |
Schedule Of Fair Value Assets And Liabilities Measured On Recurring Basis Table Text Block | December 31, 2017 2016 Assets: Foreign currency exchange contracts $ 17 $ 152 Available for sale investments 3,916 1,670 Interest rate swap agreements 44 69 Liabilities: Foreign currency exchange contracts $ 70 $ 2 Interest rate swap agreements 52 48 |
Financial assets and liabilities that were not carried at fair value | December 31, 2017 December 31, 2016 Carrying Fair Carrying Fair Value Value Value Value Assets Long-term receivables $ 296 $ 289 $ 280 $ 273 Liabilities Long-term debt and related current maturities $ 13,924 $ 14,695 $ 12,409 $ 13,008 |
OTHER LIABILITIES (Tables)
OTHER LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Liabilities Current (Tables) [Abstract] | |
Other liabilities | Years Ended December 31, 2017 2016 Pension and other employee related $ 1,986 $ 2,084 Income taxes 2,898 1,041 Environmental 369 259 Insurance 233 253 Product warranties and performance guarantees 101 136 Asset retirement obligations 82 63 Deferred income 76 81 Other 185 193 $ 5,930 $ 4,110 |
ACCUMULATED OTHER COMPREHENSI46
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Abstract] | |
Accumulated other comprehensive income (loss) | Pre-tax Tax After-Tax Year Ended December 31, 2017 Foreign exchange translation adjustment $ (37) $ - $ (37) Pensions and other postretirement benefit adjustments 847 (170) 677 Changes in fair value of effective cash flow hedges (194) 33 (161) $ 616 $ (137) $ 479 Year Ended December 31, 2016 Foreign exchange translation adjustment $ (52) $ - $ (52) Pensions and other postretirement benefit adjustments (336) 101 (235) Changes in fair value of effective cash flow hedges 134 (26) 108 $ (254) $ 75 $ (179) Year Ended December 31, 2015 Foreign exchange translation adjustment $ (1,152) $ - $ (1,152) Pensions and other postretirement benefit adjustments 129 (45) 84 Changes in fair value of effective cash flow hedges (11) 3 (8) $ (1,034) $ (42) $ (1,076) Components of Accumulated Other Comprehensive Income (Loss) December 31, 2017 2016 Cumulative foreign exchange translation adjustment $ (1,981) $ (1,944) Pensions and other postretirement benefit adjustments (202) (879) Fair value of available for sale investments - - Fair value of effective cash flow hedges (52) 109 $ (2,235) $ (2,714) Changes in Accumulated Other Comprehensive Income (Loss) by Component Changes in Foreign Pension Fair Value of Exchange and Other Effective Translation Postretirement Cash Flow Adjustment Adjustments Hedges Total Balance at December 31, 2015 $ (1,892) $ (644) $ 1 $ (2,535) Other comprehensive income (loss) before reclassifications (52) (388) 103 (337) Amounts reclassified from accumulated other comprehensive income (loss) - 153 5 158 Net current period other comprehensive income (loss) (52) (235) 108 (179) Balance at December 31, 2016 $ (1,944) $ (879) $ 109 $ (2,714) Other comprehensive income (loss) before reclassifications (37) 645 (101) 507 Amounts reclassified from accumulated other comprehensive income - 32 (60) (28) Net current period other comprehensive income (loss) (37) 677 (161) 479 Balance at December 31, 2017 $ (1,981) $ (202) $ (52) $ (2,235) |
Reclassification Out Of Accumulated Other Comprehensive Income [Table Text Block] | Reclassifications Out of Accumulated Other Comprehensive Income (Loss) Year Ended December 31, 2017 Affected Line in the Consolidated Statement of Operations Product Sales Cost of Products Sold Cost of Services Sold Selling, General and Administrative Expenses Total Amortization of Pension and Other Postretirement Items: Actuarial losses recognized $ - $ 79 $ 15 $ 16 $ 110 Prior service (credit) recognized - (74) (14) (15) (103) Settlements and curtailments - 17 3 4 24 Losses (gains) on cash flow hedges (15) (22) (4) (28) (69) Total before tax $ (15) $ - $ - $ (23) $ (38) Tax expense (benefit) 10 Total reclassifications for the period, net of tax $ (28) Year Ended December 31, 2016 Affected Line in the Consolidated Statement of Operations Product Sales Cost of Products Sold Cost of Services Sold Selling, General and Administrative Expenses Total Amortization of Pension and Other Postretirement Items: Actuarial losses recognized $ - $ 214 $ 44 $ 46 $ 304 Prior service (credit) recognized - (87) (18) (18) (123) Settlements and curtailments - (4) (1) (1) (6) Losses (gains) on cash flow hedges 3 16 3 (5) 17 Total before tax $ 3 $ 139 $ 28 $ 22 $ 192 Tax expense (benefit) (34) Total reclassifications for the period, net of tax $ 158 |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Stock Based Compensation Plans [Abstract] | |
Income Statement Impact from Stock Options | Years Ended December 31, 2017 2016 2015 Compensation expense $ 79 $ 87 $ 78 Future income tax benefit recognized 17 29 26 |
Share based compensation fair value assumptions | Years Ended December 31, 2017 2016 2015 Weighted average fair value per share of options granted during the year (1) $ 16.68 $ 15.59 $ 17.21 Assumptions: Expected annual dividend yield 2.81 % 2.92 % 1.98 % Expected volatility 18.96 % 23.07 % 21.55 % Risk-free rate of return 2.02 % 1.29 % 1.61 % Expected option term (years) 5.04 4.97 4.96 (1) Estimated on date of grant using Black-Scholes option-pricing model. |
Stock Options Activity | Weighted Average Number of Exercise Options Price Outstanding at December 31, 2014 29,495,612 61.80 Granted 5,967,256 103.87 Exercised (4,190,298) 53.40 Lapsed or canceled (703,132) 84.31 Outstanding at December 31, 2015 30,569,438 70.76 Granted 6,281,053 103.51 Exercised (7,075,852) 57.41 Lapsed or canceled (1,107,339) 96.81 Outstanding at December 31, 2016 28,667,300 79.57 Granted 5,098,569 125.16 Exercised (8,840,019) 62.34 Lapsed or canceled (1,516,557) 109.04 Outstanding at December 31, 2017 23,409,293 $ 94.16 Vested and expected to vest at December 31, 2017 (1) 21,979,487 $ 92.58 Exercisable at December 31, 2017 12,288,854 $ 78.35 (1) Represents the sum of vested options of 12.3 million and expected to vest options of 9.7 million. Expected to vest options are derived by applying the pre-vesting forfeiture rate assumption to total outstanding unvested options of 11.2 million. |
Schedule of share based compensation by price ranges | Options Outstanding Options Exercisable Weighted Weighted Weighted Average Aggregate Average Aggregate Range of Number Average Exercise Intrinsic Number Exercise Intrinsic Exercise prices Outstanding Life (1) Price Value Exercisable Price Value $28.19-$64.99 4,204,045 3.38 $ 54.75 $ 415 4,204,045 $ 54.75 $ 415 $65.00-$89.99 2,402,025 5.17 69.59 201 2,401,220 69.59 201 $90.00-$99.99 3,189,936 6.16 93.41 191 2,239,440 93.41 134 $100.00-$114.99 8,974,559 7.71 103.45 448 3,427,616 103.37 172 $115.00-$134.00 4,638,728 9.17 125.15 131 16,533 124.20 - 23,409,293 6.75 94.16 $ 1,386 12,288,854 78.35 $ 922 (1) Average remaining contractual life in years. |
Financial Statement Impact From Stock Options Exercised | Years Ended December 31, Options Exercised 2017 2016 2015 Intrinsic value (1) $ 620 $ 395 $ 210 Tax benefit realized 221 137 73 (1) Represents the amount by which the stock price exceeded the exercise price of the options on the date of exercise. |
Restricted stock units activity | Weighted Average Number of Grant Date Restricted Fair Value Stock Units Per Share Non-vested at December 31, 2014 5,899,194 70.32 Granted 1,190,406 103.04 Vested (1,681,342) 56.38 Forfeited (426,670) 77.73 Non-vested at December 31, 2015 4,981,588 82.18 Granted 1,364,469 110.49 Vested (1,486,173) 68.58 Forfeited (392,541) 88.88 Non-vested at December 31, 2016 4,467,343 94.17 Granted 1,274,791 129.71 Vested (1,289,892) 81.37 Forfeited (505,415) 103.06 Non-vested at December 31, 2017 3,946,827 $ 108.60 |
Income Statement Impact from RSUs | Years Ended December 31, 2017 2016 2015 Compensation expense $ 97 $ 97 $ 97 Future income tax benefit recognized 19 30 29 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments And Contingencies [Abstract] | |
Loss Contingency | Years Ended December 31, 2017 2016 2015 Beginning of year $ 511 $ 518 $ 591 Accruals for environmental matters deemed probable and reasonably estimable 287 195 194 Environmental liability payments (212) (228) (273) Other 9 26 6 End of year $ 595 $ 511 $ 518 |
Environmental liabilities are included in the following balance sheet accounts: | Environmental liabilities are included in the following balance sheet accounts: December 31, 2017 2016 Accrued liabilities $ 226 $ 252 Other liabilities 369 259 $ 595 $ 511 |
Asbestos Related Liabilities | Asbestos Related Liabilities Year Ended December 31, Year Ended December 31, Year Ended December 31, 2017 2016 2015 Bendix NARCO Total Bendix NARCO Total Bendix NARCO Total Beginning of year $ 641 $ 919 $ 1,560 $ 622 $ 921 $ 1,543 $ 623 $ 929 $ 1,552 Accrual for update to estimated liability 199 31 230 203 9 212 180 8 188 Change in estimated cost of future claims (4) - (4) 13 - 13 11 - 11 Update of expected resolution values for pending claims 3 - 3 4 - 4 1 - 1 Asbestos related liability payments (223) (43) (266) (201) (11) (212) (193) (16) (209) End of year $ 616 $ 907 $ 1,523 $ 641 $ 919 $ 1,560 $ 622 $ 921 $ 1,543 |
Insurance Recoveries for Asbestos Related Liabilities | Insurance Recoveries for Asbestos Related Liabilities Year Ended December 31, Year Ended December 31, Year Ended December 31, 2017 2016 2015 Bendix NARCO Total Bendix NARCO Total Bendix NARCO Total Beginning of year $ 121 $ 319 $ 440 $ 124 $ 325 $ 449 $ 135 $ 350 $ 485 Probable insurance recoveries related to estimated liability 22 - 22 26 - 26 21 - 21 Insurance receipts for asbestos related liabilities (20) (7) (27) (37) (6) (43) (33) (30) (63) Insurance receivables settlements and write offs - - - 7 - 7 1 6 7 Other - - - 1 - 1 - (1) (1) End of year $ 123 $ 312 $ 435 $ 121 $ 319 $ 440 $ 124 $ 325 $ 449 |
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: December 31, 2017 2016 Other current assets $ 24 $ 23 Insurance recoveries for asbestos related liabilities 411 417 $ 435 $ 440 Accrued liabilities $ 350 $ 546 Asbestos related liabilities 1,173 1,014 $ 1,523 $ 1,560 |
The following tables present information regarding Bendix related asbestos claims activity | Years Ended December 31, Claims Activity 2017 2016 Claims Unresolved at the beginning of year 7,724 7,779 Claims Filed 2,645 2,830 Claims Resolved (4,089) (2,885) Claims Unresolved at the end of year 6,280 7,724 |
Disease distribution of claims | December 31, Disease Distribution of Unresolved Claims 2017 2016 Mesothelioma and Other Cancer Claims 3,062 3,490 Nonmalignant Claims 3,218 4,234 Total Claims 6,280 7,724 |
Average resolution values per asbestos claim | Honeywell has experienced average resolution values per claim excluding legal costs as follows: Years Ended December 31, 2017 2016 2015 2014 2013 (in whole dollars) Malignant claims $ 56,000 $ 44,000 $ 44,000 $ 53,500 $ 51,000 Nonmalignant claims $ 2,800 $ 4,485 $ 100 $ 120 $ 850 |
Movement In Standard Product Warranty Rollforward And Balances | Years Ended December 31, 2017 2016 2015 Beginning of year $ 487 $ 416 $ 403 Accruals for warranties/guarantees issued during the year 215 326 206 Adjustment of pre-existing warranties/guarantees (27) (40) 13 Settlement of warranty/guarantee claims (267) (215) (206) End of year $ 408 $ 487 $ 416 Product warranties and product performance guarantees are included in the following balance sheet accounts: December 31, 2017 2016 Accrued liabilities $ 307 $ 351 Other liabilities 101 136 $ 408 $ 487 |
PENSION AND OTHER POSTRETIREM49
PENSION AND OTHER POSTRETIREMENT BENEFITS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Pension And Other Postretirement Benefits (Tables) [Abstract] | |
Defined Benefit Plans Disclosure | Pension Benefits U.S. Plans Non-U.S. Plans 2017 2016 2017 2016 Change in benefit obligation: Benefit obligation at beginning of year $ 17,414 $ 17,298 $ 6,483 $ 6,338 Service cost 172 191 40 47 Interest cost 586 600 147 179 Plan amendments - - (1) - Actuarial (gains) losses 1,234 448 (24) 1,125 Benefits paid (1,146) (1,135) (253) (243) Settlements and curtailments (109) - - (50) Foreign currency translation - - 614 (930) Other - 12 13 17 Benefit obligation at end of year 18,151 17,414 7,019 6,483 Change in plan assets: Fair value of plan assets at beginning of year 16,814 16,349 6,120 6,117 Actual return on plan assets 3,287 1,554 539 1,006 Company contributions 139 36 161 186 Benefits paid (1,146) (1,135) (253) (243) Settlements and curtailments (109) - - - Foreign currency translation - - 569 (957) Other - 10 15 11 Fair value of plan assets at end of year 18,985 16,814 7,151 6,120 Funded status of plans $ 834 $ (600) $ 132 $ (363) Amounts recognized in Consolidated Balance Sheet consist of: Prepaid pension benefit cost (1) $ 1,205 $ - $ 944 $ 380 Accrued pension liabilities - current (2) (27) (106) (12) (11) Accrued pension liabilities - noncurrent (3) (344) (494) (800) (732) Net amount recognized $ 834 $ (600) $ 132 $ (363) (1) Included in Other assets on Consolidated Balance Sheet (2) Included in Accrued liabilities on Consolidated Balance Sheet (3) Included in Other liabilities on Consolidated Balance Sheet Other Postretirement Benefits 2017 2016 Change in benefit obligation: Benefit obligation at beginning of year $ 492 $ 569 Service cost - - Interest cost 19 20 Plan amendments 91 27 Actuarial (gains) losses (14) (31) Benefits paid (58) (93) Benefit obligation at end of year 530 492 Change in plan assets: Fair value of plan assets at beginning of year - - Actual return on plan assets - - Company contributions - - Benefits paid - - Fair value of plan assets at end of year - - Funded status of plans $ (530) $ (492) Amounts recognized in Consolidated Balance Sheet consist of: Accrued liabilities $ (62) $ (62) Postretirement benefit obligations other than pensions (1) (468) (430) Net amount recognized $ (530) $ (492) (1) Excludes non-U.S. plans of $44 million and $43 million in 2017 and 2016. |
Other Changes in Plan Assets Recognized in Other Comprehensive Income | Pension Benefits U.S. Plans Non-U.S. Plans 2017 2016 2017 2016 Prior service (credit) $ (268) $ (312) $ (13) $ (11) Net actuarial loss 248 1,099 427 582 Net amount recognized $ (20) $ 787 $ 414 $ 571 Other Postretirement Benefits 2017 2016 Prior service (credit) $ (244) $ (393) Net actuarial loss 109 136 Net amount recognized $ (135) $ (257) |
Net Periodic Benefit Cost | Pension Benefits U.S. Plans Non-U.S. Plans Net Periodic Benefit Cost 2017 2016 2015 2017 2016 2015 Service cost $ 172 $ 191 $ 223 $ 40 $ 47 $ 51 Interest cost 586 600 696 147 179 177 Expected return on plan assets (1,262) (1,226) (1,278) (411) (377) (358) Amortization of transition obligation - - - - - 1 Amortization of prior service (credit) cost (43) (43) 13 (1) (3) (3) Recognition of actuarial losses 41 27 52 46 246 15 Settlements and curtailments 18 - 8 - (7) 2 Net periodic benefit (income) cost $ (488) $ (451) $ (286) $ (179) $ 85 $ (115) Other Changes in Plan Assets and Benefits Obligations Recognized in U.S. Plans Non-U.S. Plans Other Comprehensive (Income) Loss 2017 2016 2015 2017 2016 2015 Actuarial (gains) losses $ (792) $ 121 $ 775 $ (153) $ 447 $ 27 Prior service (credit) - - (429) (1) - - Transition obligation recognized during year - - - - - (1) Prior service (cost) credit recognized during year 43 43 (13) 1 10 3 Actuarial losses recognized during year (59) (27) (52) (46) (246) (17) Foreign currency translation - - - 43 (83) (37) Total recognized in other comprehensive (income) loss $ (808) $ 137 $ 281 $ (156) $ 128 $ (25) Total recognized in net periodic benefit (income) cost and other comprehensive (income) loss $ (1,296) $ (314) $ (5) $ (335) $ 213 $ (140) Other Postretirement Benefits Years Ended December 31, Net Periodic Benefit Cost 2017 2016 2015 Service cost $ - $ - $ - Interest cost 19 20 33 Amortization of prior service (credit) (58) (76) (30) Recognition of actuarial losses 13 22 34 Net periodic benefit (income) cost $ (26) $ (34) $ 37 Years Ended December 31, Other Changes in Plan Assets and Benefits Obligations 2017 2016 2015 Recognized in Other Comprehensive (Income) Loss Actuarial (gains) losses $ (14) $ (31) $ (55) Prior service cost (credit) 91 27 (290) Prior service credit recognized during year 58 76 30 Actuarial losses recognized during year (13) (22) (34) Total recognized in other comprehensive (income) loss $ 122 $ 50 $ (349) Total recognized in net periodic benefit cost and other comprehensive (income) loss $ 96 $ 16 $ (312) |
Assumptions Used in Calculations | Pension Benefits U.S. Plans Non-U.S. Plans 2017 2016 2015 2017 2016 2015 Actuarial assumptions used to determine benefit obligations as of December 31: Discount rate 3.68 % 4.20 % 4.46 % 2.36 % 2.51 % 3.49 % Expected annual rate of compensation increase 4.50 % 4.50 % 4.48 % 0.73 % 2.17 % 2.11 % Actuarial assumptions used to determine net periodic benefit (income) cost for years ended December 31: Discount rate - benefit obligation 4.20 % 4.46 % 4.08 % 2.51 % 3.49 % 3.26 % Discount rate - service cost 4.42 % 4.69 N/A 2.14 % 2.92 N/A Discount rate - interest cost 3.49 % 3.59 N/A 2.19 % 3.07 N/A Expected rate of return on plan assets 7.75 % 7.75 % 7.75 % 6.43 % 6.65 % 6.94 % Expected annual rate of compensation increase 4.50 % 4.48 % 4.50 % 2.17 % 2.11 % 2.53 % Other Postretirement Benefits 2017 2016 2015 Actuarial assumptions used to determine benefit obligations as of December 31: Discount rate 3.39 % 3.65 % 3.80 % Actuarial assumptions used to determine net periodic benefit cost for years ended December 31: Discount rate (1) 3.60 % 3.80 % 3.45 % (1) Discount rate was 3.65% for 1/1/17 through 2/28/17. Rate was changed to 3.60% for the remainder of 2017 due to Plan remeasurement as of 3/1/17. |
Accumulated Benefit Obligations in Excess of Plan Assets | December 31, U.S. Plans Non-U.S. Plans 2017 2016 2017 2016 Projected benefit obligation $371 $17,414 $1,082 $2,294 Accumulated benefit obligation $360 $17,263 $1,018 $2,220 Fair value of plan assets - $16,814 $269 $1,552 |
Fair Value of Plan Assets | U.S. Plans December 31, 2017 Total Level 1 Level 2 Level 3 Equities: Honeywell common stock $ 2,832 $ 2,832 $ - $ - U.S. equities 3,573 3,573 - - Non-U.S. equities 2,631 2,618 13 - Real estate investment trusts 265 265 - - Fixed income: Short term investments 919 919 - - Government securities 428 - 428 - Corporate bonds 5,052 - 5,052 - Mortgage/Asset-backed securities 742 - 742 - Insurance contracts 8 - 8 - Direct investments: Direct private investments 752 - - 752 Real estate properties 597 - - 597 Total 17,799 $ 10,207 $ 6,243 $ 1,349 Investments measured at NAV : Private funds 901 Real estate funds 84 Hedge funds 20 Commingled Funds 181 Total assets at fair value $ 18,985 U.S. Plans December 31, 2016 Total Level 1 Level 2 Level 3 Equities: Honeywell common stock $ 2,140 $ 2,140 $ - $ - U.S. equities 3,583 3,583 - - Non-U.S. equities 2,069 2,037 32 - Real estate investment trusts 203 203 - - Fixed income: Short term investments 1,306 1,306 - - Government securities 305 - 305 - Corporate bonds 4,366 - 4,366 - Mortgage/Asset-backed securities 617 - 617 - Insurance contracts 7 - 7 - Direct investments: Direct private investments 609 - - 609 Real estate properties 664 - - 664 Total 15,869 $ 9,269 $ 5,327 $ 1,273 Investments measured at NAV : Private funds 815 Real estate funds 110 Hedge funds 20 Total assets at fair value $ 16,814 Non-U.S. Plans December 31, 2017 Total Level 1 Level 2 Level 3 Equities: U.S. equities $ 573 $ 420 $ 153 $ - Non-U.S. equities 2,801 99 2,702 - Fixed income: Short-term investments 238 238 - - Government securities 1,685 - 1,685 - Corporate bonds 1,364 - 1,364 - Mortgage/Asset-backed securities 47 - 47 - Insurance contracts 157 - 157 - Investments in private funds: Private funds 52 - 21 31 Real estate funds 149 - - 149 Total 7,066 $ 757 $ 6,129 $ 180 Investments measured at NAV : Private funds 29 Real estate funds 56 Total assets at fair value $ 7,151 Non-U.S. Plans December 31, 2016 Total Level 1 Level 2 Level 3 Equities: U.S. equities $ 650 $ 525 $ 125 $ - Non-U.S. equities 2,153 219 1,934 - Fixed income: Short-term investments 146 146 - - Government securities 1,530 - 1,530 - Corporate bonds 1,220 - 1,220 - Mortgage/Asset-backed securities 18 - 18 - Insurance contracts 152 - 152 - Investments in private funds: Private funds 42 - 19 23 Real estate funds 124 - - 124 Total 6,035 $ 890 $ 4,998 $ 147 Investments measured at NAV : Private funds 33 Real estate funds 52 Total assets at fair value $ 6,120 |
Changes in Fair Value of Level 3 Plan Assets | U.S. Plans Non-U.S. Plans Direct Private Real Estate Private Real Estate Investments Properties Funds Funds Balance at December 31, 2015 $ 535 $ 626 $ 10 $ 152 Actual return on plan assets: Relating to assets still held at year-end (42) 11 1 (22) Relating to assets sold during the year 28 7 - (1) Purchases 141 48 12 - Sales and settlements (53) (28) - (5) Balance at December 31, 2016 609 664 23 124 Actual return on plan assets: Relating to assets still held at year-end 33 2 5 26 Relating to assets sold during the year 51 31 - - Purchases 148 18 6 - Sales and settlements (89) (118) (3) (1) Balance at December 31, 2017 $ 752 $ 597 $ 31 $ 149 |
Estimated Future Benefit Payments | U.S. Plans Non-U.S. Plans 2018 $ 1,170 $ 261 2019 1,159 256 2020 1,165 264 2021 1,169 271 2022 1,176 289 2023-2027 5,795 1,477 |
Assumed Health Care Cost Trend Rates | December 31, 2017 2016 Assumed health care cost trend rate: Health care cost trend rate assumed for next year 6.50 % 6.50 % Rate that the cost trend rate gradually declines to 5.00 % 5.00 % Year that the rate reaches the rate it is assumed to remain at 2023 2023 |
Effect of One Percentage Point Change | 1 percentage point Increase Decrease Effect on total of service and interest cost components $ 1 $ (1) Effect on postretirement benefit obligation $ 28 $ (22) |
Schedule Of Benefit Payments Reflecting Expected Future Service [Table Text Block] | Benefit payments reflecting expected future service, as appropriate, are expected to be paid as follows: Without Impact of Net of Medicare Subsidy Medicare Subsidy 2018 $ 67 $ 62 2019 62 57 2020 58 53 2021 54 49 2022 50 46 2023-2027 161 145 |
SEGMENT FINANCIAL DATA (Tables)
SEGMENT FINANCIAL DATA (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Financial Data [Abstract] | |
Segment Financial Data | Years Ended December 31, Net Sales 2017 2016 2015 Aerospace Product $ 10,067 $ 9,926 $ 10,379 Service 4,712 4,825 4,858 Total 14,779 14,751 15,237 Home and Building Technologies Product 8,396 8,250 7,850 Service 1,381 1,240 1,176 Total 9,777 9,490 9,026 Performance Materials and Technologies Product 8,521 8,725 7,809 Service 1,818 1,711 1,801 Total 10,339 10,436 9,610 Safety and Productivity Solutions Product 5,333 4,461 4,657 Service 306 164 51 Total 5,639 4,625 4,708 $ 40,534 $ 39,302 $ 38,581 Depreciation and amortization Aerospace $ 279 $ 275 $ 267 Home and Building Technologies 118 107 100 Performance Materials and Technologies 441 399 286 Safety and Productivity Solutions 219 188 173 Corporate 58 61 57 $ 1,115 $ 1,030 $ 883 Segment Profit Aerospace $ 3,288 $ 2,991 $ 3,218 Home and Building Technologies 1,650 1,621 1,492 Performance Materials and Technologies 2,206 2,112 2,010 Safety and Productivity Solutions 852 680 746 Corporate (306) (218) (210) $ 7,690 $ 7,186 $ 7,256 Capital expenditures Aerospace $ 380 $ 331 $ 314 Home and Building Technologies 88 92 103 Performance Materials and Technologies 303 473 481 Safety and Productivity Solutions 79 55 47 Corporate 181 144 128 $ 1,031 $ 1,095 $ 1,073 December 31, Total Assets 2017 2016 2015 Aerospace $ 11,769 $ 11,426 $ 11,235 Home and Building Technologies 10,592 10,392 10,464 Performance Materials and Technologies 17,203 15,835 15,185 Safety and Productivity Solutions 9,456 8,951 7,006 Corporate 10,367 7,542 5,426 $ 59,387 $ 54,146 $ 49,316 |
Reconciliation of Operating Profit Loss From Segments to Consolidated | A reconciliation of segment profit to consolidated income from continuing operations before taxes are as follows: Years Ended December 31, 2017 2016 2015 Segment Profit $ 7,690 $ 7,186 $ 7,256 Other income (expense) (1) 28 71 38 Interest and other financial charges (316) (338) (310) Stock compensation expense (2) (176) (184) (175) Pension ongoing income (expense) (2) 713 601 430 Pension mark-to-market expense (2) (87) (273) (67) Other postretirement income (expense) (2) 21 32 (40) Repositioning and other charges (2) (971) (648) (546) Income before taxes $ 6,902 $ 6,447 $ 6,586 (1) Equity income (loss) of affiliated companies is included in Segment Profit. (2) Amounts included in cost of products and services sold and selling, general and administrative expenses. |
GEOGRAPHIC AREAS FINANCIAL DA51
GEOGRAPHIC AREAS FINANCIAL DATA (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Geographic Areas Financial Data [Abstract] | |
Geographic Areas Financial Data | Net Sales (1) Long-lived Assets (2) Years Ended December 31, December 31, 2017 2016 2015 2017 2016 2015 United States $ 22,722 $ 22,652 $ 23,771 $ 3,604 $ 3,744 $ 3,939 Europe 10,400 9,966 8,674 927 741 746 Other International 7,412 6,684 6,136 1,395 1,308 1,104 $ 40,534 $ 39,302 $ 38,581 $ 5,926 $ 5,793 $ 5,789 (1) Sales between geographic areas approximate market and are not significant. Net sales are classified according to their country of origin. Included in United States net sales are export sales of $4,974 million, $5,290 million and $5,526 million in 2017, 2016 and 2015. (2) Long-lived assets are comprised of property, plant and equipment - net. |
SUPPLEMENTAL CASH FLOW INFORM52
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | Years Ended December 31, 2017 2016 2015 Payments for repositioning and other charges: Severance and exit cost payments $ (177) $ (228) $ (118) Environmental payments (212) (228) (273) Insurance receipts for asbestos related liabilities 27 43 63 Asbestos related liability payments (266) (212) (209) $ (628) $ (625) $ (537) Interest paid, net of amounts capitalized $ 306 $ 329 $ 310 Income taxes paid, net of refunds 1,751 1,142 1,192 Non-cash investing and financing activities: Common stock contributed to savings plans 172 168 174 Marketable securities contributed to non-U.S. pension plans 89 106 109 |
UNAUDITED QUARTERLY FINANCIAL53
UNAUDITED QUARTERLY FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Unaudited Quarterly Financial Information [Abstract] | |
Schedule Of Quarterly Financial Information Table Text Block | 2017 Mar. 31 June 30 Sept. 30 Dec. 31 (3) Year Net Sales $ 9,492 $ 10,078 $ 10,121 $ 10,843 $ 40,534 Gross Profit 3,136 3,228 3,248 3,347 12,959 Net income (loss) attributable to Honeywell 1,326 1,392 1,348 (2,411) 1,655 Earnings (loss) per common share - basic (1) 1.74 1.82 1.77 (3.18) 2.17 Earnings (loss) per common share - assuming dilution (1) (2) 1.71 1.80 1.75 (3.18) 2.14 Cash dividends per common share 0.6650 0.6650 0.6650 0.7450 2.74 Market price per common share High 127.25 135.84 141.75 155.96 155.96 Low 116.18 122.50 133.37 142.55 116.18 2016 Mar. 31 June 30 Sept. 30 Dec. 31 Year Net Sales $ 9,522 $ 9,991 $ 9,804 $ 9,985 $ 39,302 Gross Profit 2,975 3,170 2,901 3,106 12,152 Net income attributable to Honeywell 1,216 1,319 1,240 1,034 4,809 Earnings per common share - basic 1.58 1.73 1.62 1.36 6.29 Earnings per common share - assuming dilution 1.56 1.70 1.60 1.34 6.20 Cash dividends per common share 0.5950 0.5950 0.5950 0.6650 2.45 Market price per common share High 113.23 117.32 119.88 118.09 119.88 Low 96.24 111.46 111.60 105.78 96.24 (1) Total for the full year may differ from the sum of the individual quarters due to the requirement to use weighted average shares each quarter, which may fluctuate with share repurchases and share issuances, and due to the impact of losses in a quarter. (2) Due to a loss for the quarter ended December 31, 2017, no incremental shares were included because the effect would be antidilutive. (3) For the quarter ended December 31, 2017 Net income (loss) attributable to Honeywell, Earnings (loss) per common share - basic and Earnings (loss) per common share - assuming dilution were impacted by the Tax Cuts and Jobs Act; see Note 5 Income Taxes for further details. |
SUMMARY OF SIGNIFICANT ACCOUN54
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Significant Accounting Policies Other Details [Abstract] | |||
Date of completion of goodwill impairment test | Mar. 31, 2017 | ||
Research and development expense | $ 1,835 | $ 1,864 | $ 1,856 |
Minimum [Member] | |||
Other Assets With Determinable Lives [Line Items] | |||
Finite Lived Intangible Assets Estimated Useful Lives | 2 years | ||
Maximum [Member] | |||
Other Assets With Determinable Lives [Line Items] | |||
Finite Lived Intangible Assets Estimated Useful Lives | 24 years | ||
Buildings and improvements [Member] | Minimum [Member] | |||
Property Plant And Equipment Details [Line Items] | |||
Property, plant and equipment, estimated useful lives | 10 years | ||
Buildings and improvements [Member] | Maximum [Member] | |||
Property Plant And Equipment Details [Line Items] | |||
Property, plant and equipment, estimated useful lives | 50 years | ||
Machinery and Equipment [Member] | Minimum [Member] | |||
Property Plant And Equipment Details [Line Items] | |||
Property, plant and equipment, estimated useful lives | 2 years | ||
Machinery and Equipment [Member] | Maximum [Member] | |||
Property Plant And Equipment Details [Line Items] | |||
Property, plant and equipment, estimated useful lives | 16 years |
SUMMARY OF SIGNIFICANT ACCOUN55
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 1 (Details) | Dec. 31, 2017USD ($) |
Accounting Standards Update 2016-16 [Member] | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
New Accounting Pronouncement Or Change In Accounting Principle Cumulative Effect Of Change On Equity Or Net Assets1 | $ 340,000,000 |
SUMMARY OF SIGNIFICANT ACCOUN56
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 2 (Details) - USD ($) $ in Millions | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||
Deferred revenue (liability) | $ 76 | $ 81 | |
Difference Between Revenue Guidance In Effect Before And After Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | |||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||
Cumulative effect to retained earnings | $ 75 | ||
Deferred costs (assets) | 1,090 | ||
Deferred revenue (liability) | $ 1,090 |
ACQUISITIONS AND DIVESTITURES57
ACQUISITIONS AND DIVESTITURES (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Business Combination Recognized Identifiable Assets Acquired Goodwill And Liabilities Assumed Net [Abstract] | |||
Goodwill | $ 18,277,000,000 | $ 17,707,000,000 | |
Divestiture/Spinoff [Abstract] | |||
Proceeds From Divestiture Of Businesses | 0 | 296,000,000 | $ 1,000,000 |
Pretax gain on sale | (7,000,000) | 178,000,000 | (1,000,000) |
AdvanSix pre-separation funding | 0 | 269,000,000 | 0 |
AdvanSix pre-spin borrowing | $ 0 | 38,000,000 | 0 |
AdvanSix Inc. (Formerly Resins and Chemicals Business) [Member] | |||
Divestiture/Spinoff [Abstract] | |||
Spinoff Activities Description | On October 1, 2016, the Company completed the tax-free spin-off of its Resins and Chemicals business, part of Performance Materials and Technologies, into a standalone, publicly-traded company (named AdvanSix Inc. (“AdvanSix”)) to Honeywell shareowners. The assets and liabilities associated with AdvanSix have been removed from the Company’s Consolidated Balance Sheet. The results of operations for AdvanSix are included in the Consolidated Statement of Operations through the effective date of the spin-off. Honeywell shareowners of record as of the close of business on September 16, 2016 received one share of AdvanSix common stock for every 25 shares of Honeywell common stock. Immediately prior to the effective date of the spin-off, AdvanSix incurred debt to make a cash distribution of $269 million to the Company. At the same time, AdvanSix also incurred $38 million of borrowings in order to fund its post spin-off working capital. | ||
Spinoff Activities Completion Date | Oct. 1, 2016 | ||
Spinoff Transaction Share Conversion | 0.04 | ||
AdvanSix pre-separation funding | $ 269,000,000 | ||
AdvanSix pre-spin borrowing | 38,000,000 | ||
Honeywell Technology Solutions Inc [Member] | Disposal Group Disposed Of By Sale Not Discontinued Operations [Member] | |||
Divestiture/Spinoff [Abstract] | |||
Proceeds From Divestiture Of Businesses | 300,000,000 | ||
Pretax gain on sale | $ 176,000,000 | ||
Date of disposition | Sep. 16, 2016 | ||
Elster [Member] | |||
Business Acquisition [Line Items] | |||
Name of acquired entity | Elster Division of Melrose Industries plc (“Elster”) | ||
Effective date of acquisition | Dec. 29, 2015 | ||
Revenue reported for last annual period | $ 1,670,000,000 | ||
Purchase price | $ 4,899,000,000 | ||
Business Combination Recognized Identifiable Assets Acquired Goodwill And Liabilities Assumed Net [Abstract] | |||
Current assets | 519,000,000 | ||
Intangible assets | 2,163,000,000 | ||
Other noncurrent assets | 193,000,000 | ||
Current liabilities | (566,000,000) | ||
Noncurrent liabilities | (973,000,000) | ||
Net assets acquired | 1,336,000,000 | ||
Noncontrolling interest | (2,000,000) | ||
Goodwill | 3,565,000,000 | ||
Purchase price | $ 4,899,000,000 | ||
Elster [Member] | Minimum [Member] | |||
Business Acquisition [Line Items] | |||
Intangible assets weighted average useful life | 1 year | ||
Elster [Member] | Maximum [Member] | |||
Business Acquisition [Line Items] | |||
Intangible assets weighted average useful life | 20 years | ||
COM DEV International [Member] | |||
Business Acquisition [Line Items] | |||
Name of acquired entity | COM DEV International | ||
Description of acquired entity | a leading satellite and space components provider | ||
Effective date of acquisition | Feb. 29, 2016 | ||
Purchase price | $ 347,000,000 | ||
Business Combination Recognized Identifiable Assets Acquired Goodwill And Liabilities Assumed Net [Abstract] | |||
Purchase price | $ 347,000,000 | ||
UOP Russell LLC [Member] | |||
Business Acquisition [Line Items] | |||
Name of acquired entity | UOP Russell LLC | ||
Description of acquired entity | develops technology and manufactures modular equipment to process natural gas | ||
Effective date of acquisition | Jan. 31, 2016 | ||
Remaining noncontrolling interest acquired (as a percentage) | 30.00% | ||
Purchase price | $ 240,000,000 | ||
Business Combination Recognized Identifiable Assets Acquired Goodwill And Liabilities Assumed Net [Abstract] | |||
Purchase price | $ 240,000,000 | ||
Total Acquisitions [Member] | |||
Business Acquisition [Line Items] | |||
Purchase price | 2,538,000,000 | ||
Business Combination Recognized Identifiable Assets Acquired Goodwill And Liabilities Assumed Net [Abstract] | |||
Purchase price | $ 2,538,000,000 | ||
Xtralis International Holdings Limited | |||
Business Acquisition [Line Items] | |||
Name of acquired entity | Xtralis International Holdings Limited (“Xtralis”), | ||
Description of acquired entity | a leading global provider of aspiration smoke detection and perimeter security technologies | ||
Effective date of acquisition | Apr. 1, 2016 | ||
Purchase price | $ 515,000,000 | ||
Business Combination Recognized Identifiable Assets Acquired Goodwill And Liabilities Assumed Net [Abstract] | |||
Purchase price | $ 515,000,000 | ||
Intelligrated [Member] | |||
Business Acquisition [Line Items] | |||
Name of acquired entity | Intelligrated | ||
Description of acquired entity | a leading provider of supply chain and warehouse automation technologies, | ||
Effective date of acquisition | Aug. 29, 2016 | ||
Purchase price | $ 1,488,000,000 | ||
Business Combination Recognized Identifiable Assets Acquired Goodwill And Liabilities Assumed Net [Abstract] | |||
Intangible assets | 507,000,000 | ||
Goodwill | 1,121,000,000 | ||
Purchase price | $ 1,488,000,000 | ||
Intelligrated [Member] | Minimum [Member] | |||
Business Acquisition [Line Items] | |||
Intangible assets weighted average useful life | 1 year | ||
Intelligrated [Member] | Maximum [Member] | |||
Business Acquisition [Line Items] | |||
Intangible assets weighted average useful life | 15 years |
REPOSITIONING AND OTHER CHARG58
REPOSITIONING AND OTHER CHARGES (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Component Of Operating Other Cost And Expense [Line Items] | |||
Total net repositioning charge | $ 491,000,000 | $ 260,000,000 | $ 163,000,000 |
Asbestos related litigation charges, net of insurance | 207,000,000 | 222,000,000 | 189,000,000 |
Probable and reasonably estimable environmental liabilities | 287,000,000 | 195,000,000 | 194,000,000 |
Other | 36,000,000 | 18,000,000 | 0 |
Total net repositioning and other charges | 1,021,000,000 | 695,000,000 | 546,000,000 |
Severance Costs [Member] | |||
Component Of Operating Other Cost And Expense [Line Items] | |||
Total net repositioning charge | 305,000,000 | 283,000,000 | 197,000,000 |
Asset Impairments [Member] | |||
Component Of Operating Other Cost And Expense [Line Items] | |||
Total net repositioning charge | 142,000,000 | 43,000,000 | 13,000,000 |
Exit Costs [Member] | |||
Component Of Operating Other Cost And Expense [Line Items] | |||
Total net repositioning charge | 60,000,000 | 43,000,000 | 6,000,000 |
Reserve Adjustments [Member] | |||
Component Of Operating Other Cost And Expense [Line Items] | |||
Total net repositioning charge | $ (16,000,000) | $ (109,000,000) | $ (53,000,000) |
REPOSITIONING AND OTHER CHARG59
REPOSITIONING AND OTHER CHARGES 2 (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net Repositioning And Other Charges By Income Statement Classification [Line Items] | |||
Total net repositioning charges | $ 1,021,000,000 | $ 695,000,000 | $ 546,000,000 |
Cost of products and services sold [Member] | |||
Net Repositioning And Other Charges By Income Statement Classification [Line Items] | |||
Total net repositioning charges | 784,000,000 | 522,000,000 | 483,000,000 |
Selling, general and administrative expenses [Member] | |||
Net Repositioning And Other Charges By Income Statement Classification [Line Items] | |||
Total net repositioning charges | 187,000,000 | 126,000,000 | 63,000,000 |
Other (Income) Expense [Member] | |||
Net Repositioning And Other Charges By Income Statement Classification [Line Items] | |||
Total net repositioning charges | $ 50,000,000 | $ 47,000,000 | $ 0 |
REPOSITIONING AND OTHER CHARG60
REPOSITIONING AND OTHER CHARGES 3 (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Pretax Impact Of Total Net Repositioning And Other Charges By Segment [Line Items] | |||
Total net repositioning charges | $ 1,021 | $ 695 | $ 546 |
Corporate [Member] | |||
Pretax Impact Of Total Net Repositioning And Other Charges By Segment [Line Items] | |||
Total net repositioning charges | 494 | 267 | 218 |
Aerospace [Member] | |||
Pretax Impact Of Total Net Repositioning And Other Charges By Segment [Line Items] | |||
Total net repositioning charges | 296 | 298 | 211 |
Home And Building Technologies [Member] | |||
Pretax Impact Of Total Net Repositioning And Other Charges By Segment [Line Items] | |||
Total net repositioning charges | 78 | 28 | 43 |
Performance Materials And Technologies [Member] | |||
Pretax Impact Of Total Net Repositioning And Other Charges By Segment [Line Items] | |||
Total net repositioning charges | 102 | 101 | 40 |
Safety And Productivity Solutions [Member] | |||
Pretax Impact Of Total Net Repositioning And Other Charges By Segment [Line Items] | |||
Total net repositioning charges | $ 51 | $ 1 | $ 34 |
REPOSITIONING AND OTHER CHARG61
REPOSITIONING AND OTHER CHARGES 4 (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)Employees | Dec. 31, 2016USD ($)Employees | Dec. 31, 2015USD ($)Employees | |
Net Repositioning And Other Charges [Line Items] | |||
Restructuring and Related Cost, Incurred Cost | $ 491 | $ 260 | $ 163 |
Net repositioning and other charges Paragraph Details [Abstract] | |||
Gross Repositioning Charge | $ 507 | $ 369 | $ 216 |
Number Of Employees Severed | Employees | 7,096 | 6,585 | 6,405 |
Severance Costs [Member] | |||
Net Repositioning And Other Charges [Line Items] | |||
Restructuring and Related Cost, Incurred Cost | $ 305 | $ 283 | $ 197 |
Tangible And Intangible Asset Impairments [Member] | |||
Net Repositioning And Other Charges [Line Items] | |||
Restructuring and Related Cost, Incurred Cost | 142 | 43 | 13 |
Exit Costs [Member] | |||
Net Repositioning And Other Charges [Line Items] | |||
Restructuring and Related Cost, Incurred Cost | 60 | 43 | 6 |
Reserve Adjustments [Member] | |||
Net Repositioning And Other Charges [Line Items] | |||
Restructuring and Related Cost, Incurred Cost | $ (16) | $ (109) | $ (53) |
REPOSITIONING AND OTHER CHARG62
REPOSITIONING AND OTHER CHARGES 5 (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Restructuring Reserve [Line Items] | |||
Balance at beginning of period, | $ 331,000,000 | $ 350,000,000 | $ 315,000,000 |
Charges | 507,000,000 | 369,000,000 | 216,000,000 |
Usage - cash | (177,000,000) | (228,000,000) | (118,000,000) |
Usage - noncash | (142,000,000) | (49,000,000) | (13,000,000) |
Acquisitions | 16,000,000 | ||
Adjustments | (23,000,000) | (109,000,000) | (53,000,000) |
Foreign currency translation | 17,000,000 | (2,000,000) | (13,000,000) |
Balance at end of period, | 513,000,000 | 331,000,000 | 350,000,000 |
Severance Costs [Member] | |||
Restructuring Reserve [Line Items] | |||
Balance at beginning of period, | 298,000,000 | 329,000,000 | 285,000,000 |
Charges | 305,000,000 | 283,000,000 | 197,000,000 |
Usage - cash | (163,000,000) | (203,000,000) | (109,000,000) |
Usage - noncash | 0 | (6,000,000) | 0 |
Acquisitions | 16,000,000 | ||
Adjustments | (13,000,000) | (106,000,000) | (49,000,000) |
Foreign currency translation | 15,000,000 | 1,000,000 | (11,000,000) |
Balance at end of period, | 442,000,000 | 298,000,000 | 329,000,000 |
Tangible And Intangible Asset Impairments [Member] | |||
Restructuring Reserve [Line Items] | |||
Balance at beginning of period, | 0 | 0 | 0 |
Charges | 142,000,000 | 43,000,000 | 13,000,000 |
Usage - cash | 0 | 0 | 0 |
Usage - noncash | (142,000,000) | (43,000,000) | (13,000,000) |
Acquisitions | 0 | ||
Adjustments | 0 | 0 | 0 |
Foreign currency translation | 0 | 0 | 0 |
Balance at end of period, | 0 | 0 | 0 |
Exit Costs [Member] | |||
Restructuring Reserve [Line Items] | |||
Balance at beginning of period, | 33,000,000 | 21,000,000 | 30,000,000 |
Charges | 60,000,000 | 43,000,000 | 6,000,000 |
Usage - cash | (14,000,000) | (25,000,000) | (9,000,000) |
Usage - noncash | 0 | 0 | 0 |
Acquisitions | 0 | ||
Adjustments | (10,000,000) | (3,000,000) | (4,000,000) |
Foreign currency translation | 2,000,000 | (3,000,000) | (2,000,000) |
Balance at end of period, | $ 71,000,000 | $ 33,000,000 | $ 21,000,000 |
OTHER (INCOME) EXPENSE (Details
OTHER (INCOME) EXPENSE (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Income Disclosure Nonoperating Abstract | |||
Equity (income) loss of affiliated companies | $ (39) | $ (31) | $ (30) |
(Gain) loss on sale of non-strategic businesses and assets | 7 | (178) | 1 |
Interest Income | (151) | (106) | (104) |
Foreign exchange | 18 | 12 | 43 |
Other expense, net | 98 | 201 | 22 |
Other (Income) Expense, Total | $ (67) | $ (102) | $ (68) |
INCOME TAX (Details)
INCOME TAX (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current [Abstract] | |||
U.S. Federal | $ 2,061 | $ 869 | $ 786 |
U.S. State | 62 | 97 | 78 |
Non-U.S. | 787 | 559 | 560 |
Current tax expense | 2,910 | 1,525 | 1,424 |
Deferred [Abstract] | |||
U.S. Federal | 39 | 38 | 196 |
U.S. State | 132 | 17 | 49 |
Non-U.S. | 2,123 | 21 | 70 |
Deferred tax expense | 2,294 | 76 | 315 |
Tax expense | 5,204 | 1,601 | 1,739 |
Income before taxes | |||
U.S. | 2,825 | 2,976 | 3,361 |
Non-U.S. | 4,077 | 3,471 | 3,225 |
Income before taxes | $ 6,902 | $ 6,447 | $ 6,586 |
INCOME TAX 2 (Details)
INCOME TAX 2 (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Effective Income Tax Rate Reconciliation [Abstract] | |||
U.S. federal statutory income tax rate | 35.00% | 35.00% | 35.00% |
Taxes on non-U.S. earnings below U.S. tax rate | (12.90%) | (8.00%) | (8.00%) |
U.S. state income taxes | 1.40% | 1.10% | 1.20% |
Manufacturing incentives | (0.70%) | (0.70%) | (1.50%) |
Employee stock ownership plan dividend tax benefit | (0.40%) | (0.50%) | (0.40%) |
Tax credits | (0.90%) | (0.70%) | (1.00%) |
Reserves for tax contingencies | 1.60% | 1.20% | 0.70% |
Employee share-based payments | (2.90%) | (2.00%) | 0.00% |
U.S. Tax Cuts and Jobs Act Enactment | 54.40% | 0.00% | 0.00% |
All other items net | 0.80% | (0.60%) | 0.40% |
Effective income tax rate | 75.40% | 24.80% | 26.40% |
Tax Expense Paragraph Details [Abstract] | |||
Net (decrease) increase in the effective tax rate from prior period | 50.60% | (1.60%) | |
Net (decrease) increase in non-U.S. income tax rate | 54.70% | (2.80%) | |
U.S. federal statutory income tax rate | 35.00% | 35.00% | 35.00% |
Non-U.S. effective income tax rate | 71.40% | 16.70% |
INCOME TAX 3 (Details)
INCOME TAX 3 (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Deferred Tax Assets, Net [Abstract] | |||
Pension | $ 0 | $ 411,000,000 | |
Postretirement benefits other than pensions | 177,000,000 | 262,000,000 | |
Asbestos and environmental | 325,000,000 | 471,000,000 | |
Employee compensation and benefits | 218,000,000 | 418,000,000 | |
Other accruals and reserves | 376,000,000 | 765,000,000 | |
Net operating and capital losses | 632,000,000 | 669,000,000 | |
Tax credit carryforwards | 510,000,000 | 206,000,000 | |
Gross deferred tax assets | 2,238,000,000 | 3,202,000,000 | |
Valuation allowance | (663,000,000) | (621,000,000) | |
Total deferred tax assets | 1,575,000,000 | 2,581,000,000 | |
Deferred Tax Liabilities Net [Abstract] | |||
Pension | (40,000,000) | 0 | |
Property, plant and equipment | (439,000,000) | (560,000,000) | |
Intangibles | (1,326,000,000) | (1,843,000,000) | |
Unremitted earnings of foreign subsidiaries | (2,151,000,000) | (43,000,000) | |
Other asset basis differences | (210,000,000) | (231,000,000) | |
Other | (67,000,000) | (43,000,000) | |
Total deferred tax liabilities | (4,233,000,000) | (2,720,000,000) | |
Net deferred tax liability | (2,658,000,000) | (139,000,000) | |
Deferred Tax Assets [Line Items] | |||
Valuation allowance | 663,000,000 | 621,000,000 | |
Gross deferred tax assets | 2,238,000,000 | 3,202,000,000 | |
Provisional tax charge on earnings of foreign subsidiaries | 2,151,000,000 | 43,000,000 | |
Foreign Country [Member] | |||
Deferred Tax Assets, Net [Abstract] | |||
Gross deferred tax assets | 794,000,000 | ||
Valuation allowance | (660,000,000) | ||
Deferred Tax Liabilities Net [Abstract] | |||
Unremitted earnings of foreign subsidiaries | (2,100,000,000) | ||
Deferred Tax Assets [Line Items] | |||
Valuation allowance | 660,000,000 | ||
Valuation Allowance Impact To Tax Expense | 4,000,000 | $ 69,000,000 | $ 114,000,000 |
Gross deferred tax assets | 794,000,000 | ||
Provisional tax charge on earnings of foreign subsidiaries | $ 2,100,000,000 |
INCOME TAX 4 (Details)
INCOME TAX 4 (Details) | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | $ 3,342,000,000 |
Tax Credit Carryforward Amount | 515,000,000 |
U.S. Federal | 2037 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | $ 16,000,000 |
Operating Loss Carryforward Expiration Dates | Dec. 31, 2037 |
Tax Credit Carryforward Amount | $ 332,000,000 |
Tax Credit Carryforward Expiration Dates | Dec. 31, 2037 |
Non-U.S. | Indefinite [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | $ 2,211,000,000 |
Tax Credit Carryforward Amount | 0 |
Non-U.S. | 2037 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | $ 607,000,000 |
Operating Loss Carryforward Expiration Dates | Dec. 31, 2037 |
Tax Credit Carryforward Amount | $ 159,000,000 |
Tax Credit Carryforward Expiration Dates | Dec. 31, 2037 |
U.S. State | 2037 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | $ 508,000,000 |
Operating Loss Carryforward Expiration Dates | Dec. 31, 2037 |
Tax Credit Carryforward Amount | $ 24,000,000 |
Tax Credit Carryforward Expiration Dates | Dec. 31, 2037 |
INCOME TAX 5 (Details)
INCOME TAX 5 (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of Unrecognized Tax Benefits [Abstract] | |||
Balance at beginning of year | $ 877 | $ 765 | $ 659 |
Gross increases related to current period tax positions | 94 | 96 | 56 |
Gross increases related to prior periods tax positions | 153 | 88 | 175 |
Gross decreases related to prior periods tax positions | (91) | (33) | (72) |
Decrease related to resolutions of audits with tax authorities | (76) | (3) | (11) |
Expiration of the statue of limitations for the assessment of taxes | (54) | (10) | (13) |
Foreign currency translation | 44 | (26) | (29) |
Balance at end of year | $ 947 | $ 877 | $ 765 |
INCOME TAX 6 (Details)
INCOME TAX 6 (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2018 | |
Income Tax Examination Paragraph Details [Abstract] | ||||
Income tax Examination Unrecognized Tax Benefits From Examination | $ 487 | $ 398 | $ 349 | |
Income Tax Examination Estimated Interest and Penalties From Examination | 28 | 18 | 11 | |
Income Tax Examination Accrued Interest and Penalties From Examination | 423 | 395 | $ 336 | |
Tax Cuts And Jobs Act [Line Items] | ||||
Provisional tax charge on earnings of foreign subsidiaries | 2,151 | $ 43 | ||
Tax Cuts and Jobs Act 2017 [Member] | ||||
Tax Cuts And Jobs Act [Line Items] | ||||
Provisional tax (benefit) due to decrease in the corporate tax rate | (235) | |||
Provisional tax charge due to imposition of the mandatory transition tax | 1,900 | |||
Undistributed earnings and profits of foreign affiliates | 20,000 | |||
Provisional tax charge on earnings of foreign subsidiaries | 2,100 | |||
Undistributed non-U.S. earnings | $ 20,000 | |||
Scenario Forecast [Member] | Tax Cuts and Jobs Act 2017 [Member] | ||||
Tax Cuts And Jobs Act [Line Items] | ||||
Provisional first installment of mandatory transition tax on repatriation of undistributed foreign earnings | $ 144 | |||
U.S. - Federal [Member] | 2013 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations In Progress, Years | 2,013 | |||
U.S. - Federal [Member] | 2014 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations In Progress, Years | 2,014 | |||
U.S. - Federal [Member] | 2016 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations In Progress, Years | 2,016 | |||
Income Tax Examinations Not Yet Initiated Years | 2,016 | |||
U.S. - Federal [Member] | 2015 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations In Progress, Years | 2,015 | |||
Income Tax Examinations Not Yet Initiated Years | 2,015 | |||
U.S. - Federal [Member] | 2017 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations Not Yet Initiated Years | 2,017 | |||
U.S. - State [Member] | 2011 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations In Progress, Years | 2,011 | |||
U.S. - State [Member] | 2012 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations In Progress, Years | 2,012 | |||
Income Tax Examinations Not Yet Initiated Years | 2,012 | |||
U.S. - State [Member] | 2013 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations In Progress, Years | 2,013 | |||
Income Tax Examinations Not Yet Initiated Years | 2,013 | |||
U.S. - State [Member] | 2014 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations In Progress, Years | 2,014 | |||
Income Tax Examinations Not Yet Initiated Years | 2,014 | |||
U.S. - State [Member] | 2016 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations In Progress, Years | 2,016 | |||
Income Tax Examinations Not Yet Initiated Years | 2,016 | |||
U.S. - State [Member] | 2015 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations In Progress, Years | 2,015 | |||
Income Tax Examinations Not Yet Initiated Years | 2,015 | |||
U.S. - State [Member] | 2017 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations Not Yet Initiated Years | 2,017 | |||
United Kingdom [Member] | 2013 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations In Progress, Years | 2,013 | |||
United Kingdom [Member] | 2014 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations In Progress, Years | 2,014 | |||
United Kingdom [Member] | 2016 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations Not Yet Initiated Years | 2,016 | |||
United Kingdom [Member] | 2015 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations In Progress, Years | 2,015 | |||
United Kingdom [Member] | 2017 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations Not Yet Initiated Years | 2,017 | |||
Canada [Member] | 2012 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations In Progress, Years | 2,012 | |||
Canada [Member] | 2013 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations In Progress, Years | 2,013 | |||
Canada [Member] | 2014 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations In Progress, Years | 2,014 | |||
Canada [Member] | 2016 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations In Progress, Years | 2,016 | |||
Income Tax Examinations Not Yet Initiated Years | 2,016 | |||
Canada [Member] | 2015 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations Not Yet Initiated Years | 2,015 | |||
Canada [Member] | 2017 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations Not Yet Initiated Years | 2,017 | |||
Germany [Member] | 2008 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations In Progress, Years | 2,008 | |||
Germany [Member] | 2009 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations In Progress, Years | 2,009 | |||
Germany [Member] | 2010 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations In Progress, Years | 2,010 | |||
Germany [Member] | 2011 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations In Progress, Years | 2,011 | |||
Germany [Member] | 2012 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations In Progress, Years | 2,012 | |||
Germany [Member] | 2013 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations In Progress, Years | 2,013 | |||
Germany [Member] | 2014 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations In Progress, Years | 2,014 | |||
Germany [Member] | 2016 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations Not Yet Initiated Years | 2,016 | |||
Germany [Member] | 2015 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations In Progress, Years | 2,015 | |||
Germany [Member] | 2017 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations Not Yet Initiated Years | 2,017 | |||
France [Member] | 2006 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations Not Yet Initiated Years | 2,006 | |||
France [Member] | 2007 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations Not Yet Initiated Years | 2,007 | |||
France [Member] | 2008 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations Not Yet Initiated Years | 2,008 | |||
France [Member] | 2009 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations Not Yet Initiated Years | 2,009 | |||
France [Member] | 2010 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations Not Yet Initiated Years | 2,010 | |||
France [Member] | 2011 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations Not Yet Initiated Years | 2,011 | |||
France [Member] | 2012 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations In Progress, Years | 2,012 | |||
France [Member] | 2013 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations In Progress, Years | 2,013 | |||
France [Member] | 2014 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations In Progress, Years | 2,014 | |||
France [Member] | 2016 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations In Progress, Years | 2,016 | |||
France [Member] | 2015 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations In Progress, Years | 2,015 | |||
France [Member] | 2017 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations In Progress, Years | 2,017 | |||
Australia [Member] | 2016 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations Not Yet Initiated Years | 2,016 | |||
Australia [Member] | 2017 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations Not Yet Initiated Years | 2,017 | |||
China [Member] | 2003 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations In Progress, Years | 2,003 | |||
China [Member] | 2004 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations In Progress, Years | 2,004 | |||
China [Member] | 2005 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations In Progress, Years | 2,005 | |||
China [Member] | 2006 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations In Progress, Years | 2,006 | |||
China [Member] | 2007 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations In Progress, Years | 2,007 | |||
China [Member] | 2008 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations In Progress, Years | 2,008 | |||
China [Member] | 2009 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations In Progress, Years | 2,009 | |||
China [Member] | 2010 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations In Progress, Years | 2,010 | |||
China [Member] | 2011 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations In Progress, Years | 2,011 | |||
China [Member] | 2012 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations In Progress, Years | 2,012 | |||
China [Member] | 2013 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations In Progress, Years | 2,013 | |||
China [Member] | 2014 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations In Progress, Years | 2,014 | |||
China [Member] | 2016 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations In Progress, Years | 2,016 | |||
China [Member] | 2015 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations In Progress, Years | 2,015 | |||
China [Member] | 2017 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations In Progress, Years | 2,017 | |||
India [Member] | 1999 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations In Progress, Years | 1,999 | |||
India [Member] | 2000 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations In Progress, Years | 2,000 | |||
India [Member] | 2001 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations In Progress, Years | 2,001 | |||
India [Member] | 2002 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations In Progress, Years | 2,002 | |||
India [Member] | 2003 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations In Progress, Years | 2,003 | |||
India [Member] | 2004 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations In Progress, Years | 2,004 | |||
India [Member] | 2005 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations In Progress, Years | 2,005 | |||
India [Member] | 2006 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations In Progress, Years | 2,006 | |||
India [Member] | 2007 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations In Progress, Years | 2,007 | |||
India [Member] | 2008 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations In Progress, Years | 2,008 | |||
India [Member] | 2009 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations In Progress, Years | 2,009 | |||
India [Member] | 2010 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations In Progress, Years | 2,010 | |||
India [Member] | 2011 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations In Progress, Years | 2,011 | |||
India [Member] | 2012 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations In Progress, Years | 2,012 | |||
India [Member] | 2013 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations In Progress, Years | 2,013 | |||
India [Member] | 2014 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations In Progress, Years | 2,014 | |||
India [Member] | 2016 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations Not Yet Initiated Years | 2,016 | |||
India [Member] | 2015 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations In Progress, Years | 2,015 | |||
India [Member] | 2017 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations Not Yet Initiated Years | 2,017 | |||
Switzerland | 2012 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations In Progress, Years | 2,012 | |||
Switzerland | 2013 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations In Progress, Years | 2,013 | |||
Switzerland | 2014 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations In Progress, Years | 2,014 | |||
Switzerland | 2016 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations In Progress, Years | 2,016 | |||
Switzerland | 2015 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations In Progress, Years | 2,015 | |||
Switzerland | 2017 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examinations Not Yet Initiated Years | 2,017 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |||||||||||
Net income attributable to Honeywell | $ (2,411) | $ 1,348 | $ 1,392 | $ 1,326 | $ 1,034 | $ 1,240 | $ 1,319 | $ 1,216 | $ 1,655 | $ 4,809 | $ 4,768 |
Weighted average shares outstanding | 762.1 | 764.3 | 779.8 | ||||||||
Earnings per share of common stock - basic | $ (3.18) | $ 1.77 | $ 1.82 | $ 1.74 | $ 1.36 | $ 1.62 | $ 1.73 | $ 1.58 | $ 2.17 | $ 6.29 | $ 6.11 |
Assuming dilution | |||||||||||
Net income attributable to Honeywell | $ (2,411) | $ 1,348 | $ 1,392 | $ 1,326 | $ 1,034 | $ 1,240 | $ 1,319 | $ 1,216 | $ 1,655 | $ 4,809 | $ 4,768 |
Average shares | |||||||||||
Weighted average shares outstanding | 762.1 | 764.3 | 779.8 | ||||||||
Dilutive securities issuable - stock plans | 10 | 11 | 9.5 | ||||||||
Total weighted average diluted shares outstanding | 772.1 | 775.3 | 789.3 | ||||||||
Earnings per share of common stock - assuming dilution | $ (3.18) | $ 1.75 | $ 1.8 | $ 1.71 | $ 1.34 | $ 1.6 | $ 1.7 | $ 1.56 | $ 2.14 | $ 6.2 | $ 6.04 |
Earnings Per Share Paragraph Details [Abstract] | |||||||||||
Stock options excluded from diluted computations | 2.8 | 7.5 | 7.1 |
ACCOUNTS, NOTES AND OTHER RECEI
ACCOUNTS, NOTES AND OTHER RECEIVABLES (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts Receivable, Net Current [Abstract] | ||
Trade | $ 9,068 | $ 8,449 |
Less - Allowance for doubtful accounts | (202) | (272) |
Accounts receivable, Net | 8,866 | 8,177 |
Accounts Notes, And Other Receivables Paragraph Details [Abstract] | ||
Unbilled contract receivable | $ 1,853 | $ 1,626 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Inventory Combining Work In Process And Raw Materials Alternative Gross Abstract | ||
Raw materials | $ 1,193 | $ 1,104 |
Work in process | 790 | 775 |
Finished products | 2,669 | 2,552 |
Inventory, Gross | 4,652 | 4,431 |
Reduction to LIFO cost basis | (39) | (65) |
Inventories | 4,613 | 4,366 |
Inventories Paragraph Details [Abstract] | ||
LIFO inventory amount | 324 | 296 |
LIFO reserve | $ 39 | $ 65 |
PROPERTY, PLANT AND EQUIPMENT73
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 15,187 | $ 14,507 | |
Less: Accumulated depreciation | (9,261) | (8,714) | |
Property, plant and equipment - net | 5,926 | 5,793 | |
Property, Plant and Equipment Paragraph Details [Abstract] | |||
Depreciation | 717 | 726 | $ 672 |
Land and improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 287 | 363 | |
Machinery and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 10,762 | 9,956 | |
Buildings and improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 3,463 | 3,248 | |
Construction in Progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 675 | $ 940 |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS - NET (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Finite Lived Intangible Assets Future Amortization Expense Abstract | |||
Future Amortization Expense - 2018 | $ 403 | ||
Future Amortization Expense - 2019 | 399 | ||
Future Amortization Expense - 2020 | 359 | ||
Future Amortization Expense - 2021 | 319 | ||
Future Amortization Expense - 2022 | 293 | ||
Finite-Lived Intangible Assets [Line Items] | |||
Finite Lived Intangible Assets Gross | 6,582 | $ 6,300 | |
Accumulated Amortization | (3,131) | (2,679) | |
Net Carrying Amount | 3,451 | 3,621 | |
Goodwill [Line Items] | |||
Balance at beginning of period, | 17,707 | ||
Acquisitions/Divestitures | (4) | ||
Currency Translation Adjustment | 574 | ||
Balance at end of period, | 18,277 | 17,707 | |
Finite And Indefinite Other Intangible Assets [Abstract] | |||
Trademarks with indefinite lives | 1,045 | 1,013 | |
Gross carrying amount | 7,627 | 7,313 | |
Accumulated Amortization | (3,131) | (2,679) | |
Net carrying amount | 4,496 | 4,634 | |
Goodwill and Intangible Assets Paragraph Details [Abstract] | |||
Amortization of intangible assets | 398 | 304 | $ 211 |
Aerospace [Member] | |||
Goodwill [Line Items] | |||
Balance at beginning of period, | 2,441 | ||
Acquisitions/Divestitures | 2 | ||
Currency Translation Adjustment | 25 | ||
Balance at end of period, | 2,468 | 2,441 | |
Performance Materials And Technologies [Member] | |||
Goodwill [Line Items] | |||
Balance at beginning of period, | 4,924 | ||
Acquisitions/Divestitures | 34 | ||
Currency Translation Adjustment | 284 | ||
Balance at end of period, | 5,242 | 4,924 | |
Home And Building Technologies [Member] | |||
Goodwill [Line Items] | |||
Balance at beginning of period, | 5,807 | ||
Acquisitions/Divestitures | (32) | ||
Currency Translation Adjustment | 185 | ||
Balance at end of period, | 5,960 | 5,807 | |
Safety And Productivity Solutions [Member] | |||
Goodwill [Line Items] | |||
Balance at beginning of period, | 4,535 | ||
Acquisitions/Divestitures | (8) | ||
Currency Translation Adjustment | 80 | ||
Balance at end of period, | 4,607 | 4,535 | |
Patents and Technology [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite Lived Intangible Assets Gross | 1,990 | 1,841 | |
Accumulated Amortization | (1,272) | (1,141) | |
Net Carrying Amount | 718 | 700 | |
Finite And Indefinite Other Intangible Assets [Abstract] | |||
Accumulated Amortization | (1,272) | (1,141) | |
Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite Lived Intangible Assets Gross | 3,911 | 3,816 | |
Accumulated Amortization | (1,366) | (1,098) | |
Net Carrying Amount | 2,545 | 2,718 | |
Finite And Indefinite Other Intangible Assets [Abstract] | |||
Accumulated Amortization | (1,366) | (1,098) | |
Trademarks [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite Lived Intangible Assets Gross | 328 | 284 | |
Accumulated Amortization | (189) | (156) | |
Net Carrying Amount | 139 | 128 | |
Finite And Indefinite Other Intangible Assets [Abstract] | |||
Accumulated Amortization | (189) | (156) | |
Other Intangible Assets [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite Lived Intangible Assets Gross | 353 | 359 | |
Accumulated Amortization | (304) | (284) | |
Net Carrying Amount | 49 | 75 | |
Finite And Indefinite Other Intangible Assets [Abstract] | |||
Accumulated Amortization | $ (304) | $ (284) |
ACCRUED LIABILITIES (Details)
ACCRUED LIABILITIES (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Accrued Liabilities Current [Abstract] | ||
Customer advances and deferred income | $ 2,198 | $ 2,151 |
Compensation, benefit and other employee related | 1,420 | 1,489 |
Asbestos related liabilities | 350 | 546 |
Repositioning | 508 | 322 |
Product warranties and performance guarantees | 307 | 351 |
Environmental costs | 226 | 252 |
Income taxes | 134 | 430 |
Accrued interest | 94 | 97 |
Other taxes | 277 | 290 |
Insurance | 199 | 172 |
Other (primarily operating expenses) | 1,255 | 948 |
Accrued Liabilities | $ 6,968 | $ 7,048 |
LONG-TERM DEBT AND CREDIT AGR76
LONG-TERM DEBT AND CREDIT AGREEMENTS (Details) € in Millions | 12 Months Ended | |||
Dec. 31, 2017USD ($) | Dec. 31, 2017EUR (€) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Debt Instrument [Line Items] | ||||
Total long-term debt, including current portion | $ 13,924,000,000 | $ 12,409,000,000 | ||
Less current portion | (1,351,000,000) | (227,000,000) | ||
Total Noncurrent Debt | 12,573,000,000 | 12,182,000,000 | ||
Long Term Debt By Maturity [Abstract] | ||||
2,018 | 1,351,000,000 | |||
2,019 | 2,835,000,000 | |||
2,020 | 1,390,000,000 | |||
2,021 | 2,306,000,000 | |||
2,022 | 4,000,000 | |||
Thereafter | 6,038,000,000 | |||
Total long-term debt, including current portion | 13,924,000,000 | 12,409,000,000 | ||
Less current portion | (1,351,000,000) | (227,000,000) | ||
Total Long-term debt | 12,573,000,000 | 12,182,000,000 | ||
Notes 4.25% due 2021 [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior Notes | $ 800,000,000 | 800,000,000 | ||
Various interest rates | 4.25% | 4.25% | ||
Maturity date of debt instrument | Mar. 1, 2021 | |||
Notes 3.35% due 2023 [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior Notes | $ 300,000,000 | 300,000,000 | ||
Various interest rates | 3.35% | 3.35% | ||
Maturity date of debt instrument | Dec. 1, 2023 | |||
Notes 5.375% Due 2041 [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior Notes | $ 417,000,000 | 600,000,000 | ||
Various interest rates | 5.375% | 5.375% | ||
Maturity date of debt instrument | Mar. 1, 2041 | |||
Industrial development bond obligations, floating rate maturing at various dates through 2037 [Member] | ||||
Debt Instrument [Line Items] | ||||
Industrial development bond | $ 22,000,000 | 30,000,000 | ||
Maturity date of debt instrument | Dec. 31, 2037 | |||
Debentures 6.625% due 2028 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debentures | $ 201,000,000 | 216,000,000 | ||
Various interest rates | 6.625% | 6.625% | ||
Maturity date of debt instrument | Jun. 15, 2028 | |||
Debentures 9.065% due 2033 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debentures | $ 51,000,000 | 51,000,000 | ||
Various interest rates | 9.065% | 9.065% | ||
Maturity date of debt instrument | Jun. 1, 2033 | |||
Notes 5.70% due 2036 [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior Notes | $ 441,000,000 | 550,000,000 | ||
Various interest rates | 5.70% | 5.70% | ||
Maturity date of debt instrument | Mar. 15, 2036 | |||
Notes 5.70% due 2037 [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior Notes | $ 462,000,000 | 600,000,000 | ||
Various interest rates | 5.70% | 5.70% | ||
Maturity date of debt instrument | Mar. 15, 2037 | |||
Other including capitalized leases and debt issuance costs, .4% weighted average maturing at various dates through 2023 [Member] | ||||
Debt Instrument [Line Items] | ||||
Other long term debt | $ 288,000,000 | 547,000,000 | ||
Maturity date of debt instrument | Dec. 31, 2023 | |||
Debt Weighted Average Interest Rate | 0.40% | 0.40% | ||
$1,250 million 1.40% Senior Notes due 2021, $250 million Floating Rate Senior Notes due 2019, $1,500 million 1.85% Senior Notes due 2021 and $1,500 million 2.50% Senior Notes due 2026 | ||||
Debt Instrument [Line Items] | ||||
Proceeds from Issuance of Long-term Debt | $ 4,500,000,000 | |||
Debt Instrument, Issuance Date | Oct. 31, 2016 | |||
Payments of debt issuance costs | $ 27,000,000 | |||
Euro Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Proceeds from Issuance of Long-term Debt | $ 4,438,000,000 | |||
Debt Instrument, Issuance Date | Feb. 28, 2016 | |||
Payments of debt issuance costs | $ 23,000,000 | |||
Two year floating rate Euro notes due 2018 [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior Notes | € 1,000 | $ 1,199,000,000 | 1,054,000,000 | |
Debt Instrument, Issuance Date | Feb. 28, 2016 | |||
Maturity date of debt instrument | Feb. 22, 2018 | |||
Euro notes .65% due 2020 [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior Notes | € 1,000 | $ 1,199,000,000 | 1,054,000,000 | |
Various interest rates | 0.65% | 0.65% | ||
Debt Instrument, Issuance Date | Feb. 28, 2016 | |||
Maturity date of debt instrument | Feb. 21, 2020 | |||
Euro notes 1.30% due 2023 [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior Notes | € 1,250 | $ 1,499,000,000 | 1,317,000,000 | |
Various interest rates | 1.30% | 1.30% | ||
Debt Instrument, Issuance Date | Feb. 28, 2016 | |||
Maturity date of debt instrument | Feb. 22, 2023 | |||
Euro notes 2.25% due 2028 [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior Notes | € 750 | $ 900,000,000 | 790,000,000 | |
Various interest rates | 2.25% | 2.25% | ||
Debt Instrument, Issuance Date | Feb. 28, 2016 | |||
Maturity date of debt instrument | Feb. 22, 2028 | |||
Notes 1.40% due 2019 [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior Notes | $ 1,250,000,000 | 1,250,000,000 | ||
Various interest rates | 1.40% | 1.40% | ||
Maturity date of debt instrument | Oct. 30, 2019 | |||
Three year floating rate notes due 2019 [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior Notes | $ 250,000,000 | 250,000,000 | ||
Maturity date of debt instrument | Oct. 30, 2019 | |||
Notes 1.85% due 2021 [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior Notes | $ 1,500,000,000 | 1,500,000,000 | ||
Various interest rates | 1.85% | 1.85% | ||
Maturity date of debt instrument | Nov. 1, 2021 | |||
Notes 2.50% due 2026 [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior Notes | $ 1,500,000,000 | 1,500,000,000 | ||
Various interest rates | 2.50% | 2.50% | ||
Maturity date of debt instrument | Nov. 1, 2026 | |||
$400 million 5.30 % Senior Notes due 2017, $900 million 5.30% Senior Notes due 2018 and $900 million 5.00% Senior Notes due 2019 | ||||
Debt Instrument [Line Items] | ||||
Payments of debt extinguishment costs | $ 126,000,000 | |||
Notes 1.8% due 2019 [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior Notes | $ 750,000,000 | 0 | ||
Various interest rates | 1.80% | 1.80% | ||
Debt Instrument, Issuance Date | Oct. 30, 2017 | |||
Maturity date of debt instrument | Oct. 30, 2019 | |||
Notes 3.812% due 2047 | ||||
Debt Instrument [Line Items] | ||||
Senior Notes | $ 445,000,000 | 0 | ||
Various interest rates | 3.812% | 3.812% | ||
Debt Instrument, Issuance Date | Nov. 21, 2017 | |||
Payments of debt issuance costs | $ 133,000,000 | |||
Maturity date of debt instrument | Nov. 21, 2047 | |||
$450 million Floating Rate Senior Notes due 2019 and $750 million 1.80% Senior Notes due 2019 | ||||
Debt Instrument [Line Items] | ||||
Proceeds from Issuance of Long-term Debt | $ 1,200,000,000 | |||
Debt Instrument, Issuance Date | Oct. 30, 2017 | |||
Payments of debt issuance costs | $ 5,000,000 | |||
Two Year Floating Rate Notes Due 2019 [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior Notes | $ 450,000,000 | $ 0 | ||
Debt Instrument, Issuance Date | Oct. 30, 2017 | |||
Maturity date of debt instrument | Oct. 30, 2019 | |||
Syndicate Of Banks [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Facility initiation date | Jul. 10, 2015 | |||
Facility expiration date | Apr. 28, 2022 | |||
Line of credit facility, current borrowing capacity | 4,000,000,000 | |||
Line of credit facility, maximum borrowing capacity | 4,500,000,000 | |||
Line Of Credit Facility Remaining Borrowing Capacity | 4,000,000,000 | |||
Facility Amendment No. 1 date | Sep. 30, 2015 | |||
Facility Amendment No. 2 date | Apr. 29, 2016 | |||
Facility Amendment No. 3 date | Apr. 28, 2017 | |||
Syndicate Of Banks [Member] | $1.5B Second 364-Day Credit Agreement [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Facility initiation date | Apr. 28, 2017 | |||
Facility expiration date | Apr. 27, 2018 | |||
Line of credit facility, current borrowing capacity | 1,500,000,000 | |||
Line Of Credit Facility Remaining Borrowing Capacity | $ 1,500,000,000 |
LEASE COMMITMENTS (Details)
LEASE COMMITMENTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Leases Operating [Abstract] | |||
Rent expense | $ 385 | $ 387 | $ 390 |
Operating Leases Future Minimum Payments Due Abstract | |||
2,018 | 295 | ||
2,019 | 226 | ||
2,020 | 161 | ||
2,021 | 121 | ||
2,022 | 97 | ||
Thereafter | 226 | ||
Total | $ 1,126 |
FINANCIAL INSTRUMENTS AND FAI78
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASURES (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Foreign Currency Exchange Contracts [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 9,273 | $ 9,554 |
Interest Rate Swap Agreements [Member] | ||
Derivative [Line Items] | ||
Fixed Rate Debt Percent changed to LIBOR | 2.93% | 3.39% |
Amount of fixed rate debt | $ 2,600 | $ 1,850 |
FINANCIAL INSTRUMENTS AND FAI79
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASURES 2 (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Significant Observable Inputs (Level 2) | Foreign Currency Exchange Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Fair Value Of Derivative Asset | $ 17,000,000 | $ 152,000,000 |
Derivative Fair Value Of Derivative Liability | 70,000,000 | 2,000,000 |
Significant Observable Inputs (Level 2) | Interest Rate Swap Agreements [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Fair Value Of Derivative Asset | 44,000,000 | 69,000,000 |
Derivative Fair Value Of Derivative Liability | 52,000,000 | 48,000,000 |
Fair Value Inputs Level 1 And Level 2 [Member] | Available for sale investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale investments | $ 3,916 | $ 1,670 |
FINANCIAL INSTRUMENTS AND FAI80
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASURES 3 (Details) - Significant Observable Inputs (Level 2) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Long-term receivables | $ 296 | $ 280 |
Long-term debt and related current maturities | 13,924 | 12,409 |
Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Long-term receivables | 289 | 273 |
Long-term debt and related current maturities | $ 14,695 | $ 13,008 |
FINANCIAL INSTRUMENTS AND FAI81
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASURES 4 (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash Flow Hedge Gain Loss Reclassified To Income Statement Locations Paragraph Details [Abstract] | |||
Gain (Loss) on interest rate swap agreements | $ (29) | $ (71) | $ (2) |
Foreign Exchange Mark to Market income (expense) | $ (207) | $ 232 | $ (86) |
OTHER LIABILITIES (Details)
OTHER LIABILITIES (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Other Liabilities Noncurrent [Abstract] | ||
Pension and other employee related | $ 1,986 | $ 2,084 |
Product warranties and performance guarantees | 101 | 136 |
Income taxes | 2,898 | 1,041 |
Environmental | 369 | 259 |
Insurance | 233 | 253 |
Asset retirement obligations | 82 | 63 |
Deferred income | 76 | 81 |
Other | 185 | 193 |
Total other liabilities | $ 5,930 | $ 4,110 |
CAPITAL STOCK (Details)
CAPITAL STOCK (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Capital Stock Paragraph Details [Abstract] | ||
Common stock shares authorized | 2,000,000,000 | |
Common Shares par value | $ 1 | |
Preferred Stock Shares Authorized | 40,000,000 | |
Stock Repurchased During Period Shares | 20,500,000 | 19,300,000 |
Equity Class Of Treasury Stock [Line Items] | ||
Reacquired stock or repurchases of common stock | $ 2,889 | $ 2,079 |
April 2016 Authorization Program [Member] | ||
Equity Class Of Treasury Stock [Line Items] | ||
Stock Repurchase Program Remaining Authorized Repurchase Amount | 4,100 | |
Authorized Amount Of Common Stock Value Of Share Repurchase Program | 5,000 | |
December 2017 Authorization Program [Member] | ||
Equity Class Of Treasury Stock [Line Items] | ||
Stock Repurchase Program Remaining Authorized Repurchase Amount | 7,700 | |
Authorized Amount Of Common Stock Value Of Share Repurchase Program | $ 8,000 |
ACCUMULATED OTHER COMPREHENSI84
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income Loss [Abstract] | |||
Cumulative foreign exchange translation adjustment | $ (1,981,000,000) | $ (1,944,000,000) | |
Pension and other postretirement benefit adjustments | (202,000,000) | (879,000,000) | |
Fair value of available for sale investments | 0 | 0 | |
Fair value of effective cash flow hedges | (52,000,000) | 109,000,000 | |
Accumulated Other Comprehensive Income (Loss) | (2,235,000,000) | (2,714,000,000) | $ (2,535,000,000) |
Other Comprehensive Income Loss Before Tax Period Increase Decrease [Abstract] | |||
Foreign exchange translation adjustment | (37,000,000) | (52,000,000) | (1,152,000,000) |
Pension and other postretirement benefit adjustments | 847,000,000 | (336,000,000) | 129,000,000 |
Changes in fair value of effective cash flow hedges | (194,000,000) | 134,000,000 | (11,000,000) |
Changes in accumulated other comprehensive income, pretax | 616,000,000 | (254,000,000) | (1,034,000,000) |
Other Comprehensive Income Loss Tax [Abstract] | |||
Foreign exchange translation adjustment | 0 | 0 | 0 |
Pensions and other postretirement benefit adjustments | (170,000,000) | 101,000,000 | (45,000,000) |
Changes in fair value of effective cash flow hedges | 33,000,000 | (26,000,000) | 3,000,000 |
Other comprehensive income (loss), tax | (137,000,000) | 75,000,000 | (42,000,000) |
Other Comprehensive Income Loss Net Of Tax Period Increase Decrease Abstract | |||
Foreign exchange translation adjustment | (37,000,000) | (52,000,000) | (1,152,000,000) |
Pensions and other postretirement benefit adjustments | 677,000,000 | (235,000,000) | 84,000,000 |
Changes in fair value of effective cash flow hedges | (161,000,000) | 108,000,000 | (8,000,000) |
Components of other comprehensive income (loss), net of tax | $ 479,000,000 | $ (179,000,000) | $ (1,076,000,000) |
ACCUMULATED OTHER COMPREHENSI85
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) 2 (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Balance beginning of period December 31 | $ (2,714,000,000) | $ (2,535,000,000) | |
Other comprehensive income (loss) before reclassifications | 507,000,000 | (337,000,000) | |
Amounts reclassified from accumulated other comprehensive income (loss) | (28,000,000) | 158,000,000 | |
Net current period other comprehensive income (loss) | 479,000,000 | (179,000,000) | $ (1,076,000,000) |
Balance end of period | (2,235,000,000) | (2,714,000,000) | (2,535,000,000) |
Foreign Exchange Translation Adjustment [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Balance beginning of period December 31 | (1,944,000,000) | (1,892,000,000) | |
Other comprehensive income (loss) before reclassifications | (37,000,000) | (52,000,000) | |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | |
Net current period other comprehensive income (loss) | (37,000,000) | (52,000,000) | |
Balance end of period | (1,981,000,000) | (1,944,000,000) | (1,892,000,000) |
Pension and Other Postretirement Adjustments [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Balance beginning of period December 31 | (879,000,000) | (644,000,000) | |
Other comprehensive income (loss) before reclassifications | 645,000,000 | (388,000,000) | |
Amounts reclassified from accumulated other comprehensive income (loss) | 32,000,000 | 153,000,000 | |
Net current period other comprehensive income (loss) | 677,000,000 | (235,000,000) | |
Balance end of period | (202,000,000) | (879,000,000) | (644,000,000) |
Changes in Fair Value of Effective Cash Flow Hedges | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Balance beginning of period December 31 | 109,000,000 | 1,000,000 | |
Other comprehensive income (loss) before reclassifications | (101,000,000) | 103,000,000 | |
Amounts reclassified from accumulated other comprehensive income (loss) | (60,000,000) | 5,000,000 | |
Net current period other comprehensive income (loss) | (161,000,000) | 108,000,000 | |
Balance end of period | $ (52,000,000) | $ 109,000,000 | $ 1,000,000 |
ACCUMULATED OTHER COMPREHENSI86
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) 3 (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Product sales | $ (32,317,000,000) | $ (31,362,000,000) | $ (30,695,000,000) |
Cost of products sold | 22,659,000,000 | 22,170,000,000 | 21,775,000,000 |
Cost of services sold | 4,916,000,000 | 4,980,000,000 | 4,972,000,000 |
Selling, general and administrative expenses | 5,808,000,000 | 5,469,000,000 | 5,006,000,000 |
Other (income) expense | (67,000,000) | (102,000,000) | (68,000,000) |
Total | (6,902,000,000) | (6,447,000,000) | (6,586,000,000) |
Tax expense (benefit) | 5,204,000,000 | 1,601,000,000 | 1,739,000,000 |
Total reclassification for the period, net of tax | (1,698,000,000) | (4,846,000,000) | $ (4,847,000,000) |
Reclassification Out Of Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Product sales | (15,000,000) | 3,000,000 | |
Cost of products sold | 0 | 139,000,000 | |
Cost of services sold | 0 | 28,000,000 | |
Selling, general and administrative expenses | (23,000,000) | 22,000,000 | |
Total | (38,000,000) | 192,000,000 | |
Tax expense (benefit) | 10,000,000 | (34,000,000) | |
Total reclassification for the period, net of tax | (28,000,000) | 158,000,000 | |
Reclassification Out Of Accumulated Other Comprehensive Income [Member] | Losses (gains) on cash flow hedges | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Product sales | (15,000,000) | 3,000,000 | |
Cost of products sold | (22,000,000) | 16,000,000 | |
Cost of services sold | (4,000,000) | 3,000,000 | |
Selling, general and administrative expenses | (28,000,000) | (5,000,000) | |
Total | (69,000,000) | 17,000,000 | |
Reclassification Out Of Accumulated Other Comprehensive Income [Member] | Actuarial losses recognized [Member] | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Product sales | 0 | 0 | |
Cost of products sold | 79,000,000 | 214,000,000 | |
Cost of services sold | 15,000,000 | 44,000,000 | |
Selling, general and administrative expenses | 16,000,000 | 46,000,000 | |
Total | 110,000,000 | 304,000,000 | |
Reclassification Out Of Accumulated Other Comprehensive Income [Member] | Prior service (credit) recognized [Member] | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Product sales | 0 | 0 | |
Cost of products sold | (74,000,000) | (87,000,000) | |
Cost of services sold | (14,000,000) | (18,000,000) | |
Selling, general and administrative expenses | (15,000,000) | (18,000,000) | |
Total | (103,000,000) | (123,000,000) | |
Reclassification Out Of Accumulated Other Comprehensive Income [Member] | Settlements and curtailments [Member] | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Product sales | 0 | 0 | |
Cost of products sold | 17,000,000 | (4,000,000) | |
Cost of services sold | 3,000,000 | (1,000,000) | |
Selling, general and administrative expenses | 4,000,000 | (1,000,000) | |
Total | $ 24,000,000 | $ (6,000,000) |
STOCK-BASED COMPENSATION PLAN87
STOCK-BASED COMPENSATION PLANS (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Stock Options Weighted Average Exercise Price [Abstract] | |||
Exercisable at December 31, | $ 78.35 | ||
2016 Plan [Member] | Stock Options [Member] | |||
Stock based compensation Fair Value [Abstract] | |||
Weighted average fair value per share of options granted during the year | $ 16.68 | $ 15.59 | $ 17.21 |
Expected annual dividend yield | 2.81% | 2.92% | 1.98% |
Expected volatility | 18.96% | 23.07% | 21.55% |
Risk-free rate of return | 2.02% | 1.29% | 1.61% |
Expected option term (years) | 5 years | 4 years 12 months | 4 years 12 months |
Stock Options Number of Options [Abstract] | |||
Outstanding at beginning of period, | 28,667,300 | 30,569,438 | 29,495,612 |
Granted | 5,098,569 | 6,281,053 | 5,967,256 |
Exercised | (8,840,019) | (7,075,852) | (4,190,298) |
Lapsed or Canceled | (1,516,557) | (1,107,339) | (703,132) |
Outstanding at end of period, | 23,409,293 | 28,667,300 | 30,569,438 |
Vested and Expected to Vest at December 31, | 21,979,487 | ||
Exercisable at December 31, | 12,288,854 | 15,536,961 | 17,202,377 |
Options Activity Footnote [Abstract] | |||
Vested options | 12,300,000 | ||
Options expected to vest | 9,700,000 | ||
Outstanding unvested options | 11,200,000 | ||
Stock Options Weighted Average Exercise Price [Abstract] | |||
Outstanding at beginning of period, | $ 79.57 | $ 70.76 | $ 61.8 |
Granted | 125.16 | 103.51 | 103.87 |
Exercised | 62.34 | 57.41 | 53.4 |
Lapsed or Canceled | 109.04 | 96.81 | 84.31 |
Outstanding at end of period, | 94.16 | 79.57 | 70.76 |
Vested and Expected to Vest at December 31, | 92.58 | ||
Exercisable at December 31, | $ 78.35 | $ 63.39 | $ 55.11 |
Income Statement Impact From Stock Options [Abstract] | |||
Compensation Expense | $ 79 | $ 87 | $ 78 |
Future income tax benefit recognized | 17 | 29 | 26 |
2016 Plan [Member] | Restricted Stock Units (RSUs) [Member] | |||
Income Statement Impact From Stock Options [Abstract] | |||
Compensation Expense | 97 | 97 | 97 |
Future income tax benefit recognized | $ 19 | $ 30 | $ 29 |
STOCK-BASED COMPENSATION PLAN88
STOCK-BASED COMPENSATION PLANS 2 (Details) | 12 Months Ended | ||
Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016$ / shares | Dec. 31, 2015$ / shares | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range Beginning Of Period Abstract | |||
Options Outstanding, Number of Options | shares | 23,409,293 | ||
Options Outstanding, Weighted Average Life | 6 years 9 months | ||
Options Outstanding, Weighted Average Exercise Price | 94.16 | ||
Options Outstanding Aggregate Intrinsic Value | $ | $ 1,386,000,000 | ||
Options Exercisable Number of Options | shares | 12,288,854 | ||
Weighted Average Exercise Price | $ 78.35 | ||
Options Exercisable Aggregate Intrinsic Value | $ | $ 922,000,000 | ||
2016 Plan [Member] | Stock Options [Member] | |||
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range Beginning Of Period Abstract | |||
Weighted Average Exercise Price | $ 78.35 | $ 63.39 | $ 55.11 |
Exercise Price Range $28.19-$64.99 [Member] | 2016 Plan [Member] | Stock Options [Member] | |||
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range Beginning Of Period Abstract | |||
Options Outstanding, Number of Options | shares | 4,204,045 | ||
Options Outstanding, Weighted Average Life | 3 years 5 months | ||
Options Outstanding, Weighted Average Exercise Price | 54.75 | ||
Options Outstanding Aggregate Intrinsic Value | $ | $ 415,000,000 | ||
Options Exercisable Number of Options | shares | 4,204,045 | ||
Weighted Average Exercise Price | $ 54.75 | ||
Options Exercisable Aggregate Intrinsic Value | $ | $ 415,000,000 | ||
Exercise Price Range $65.00-$89.99 [Member] | 2016 Plan [Member] | Stock Options [Member] | |||
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range Beginning Of Period Abstract | |||
Options Outstanding, Number of Options | shares | 2,402,025 | ||
Options Outstanding, Weighted Average Life | 5 years 2 months | ||
Options Outstanding, Weighted Average Exercise Price | 69.59 | ||
Options Outstanding Aggregate Intrinsic Value | $ | $ 201,000,000 | ||
Options Exercisable Number of Options | shares | 2,401,220 | ||
Weighted Average Exercise Price | $ 69.59 | ||
Options Exercisable Aggregate Intrinsic Value | $ | $ 201,000,000 | ||
Exercise Price Range $90.00-$99.99 [Member] | 2016 Plan [Member] | Stock Options [Member] | |||
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range Beginning Of Period Abstract | |||
Options Outstanding, Number of Options | shares | 3,189,936 | ||
Options Outstanding, Weighted Average Life | 6 years 2 months | ||
Options Outstanding, Weighted Average Exercise Price | 93.41 | ||
Options Outstanding Aggregate Intrinsic Value | $ | $ 191,000,000 | ||
Options Exercisable Number of Options | shares | 2,239,440 | ||
Weighted Average Exercise Price | $ 93.41 | ||
Options Exercisable Aggregate Intrinsic Value | $ | $ 134,000,000 | ||
Exercise Price Range $100.00-$114.99 [Member] | 2016 Plan [Member] | Stock Options [Member] | |||
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range Beginning Of Period Abstract | |||
Options Outstanding, Number of Options | shares | 8,974,559 | ||
Options Outstanding, Weighted Average Life | 7 years 9 months | ||
Options Outstanding, Weighted Average Exercise Price | 103.45 | ||
Options Outstanding Aggregate Intrinsic Value | $ | $ 448,000,000 | ||
Options Exercisable Number of Options | shares | 3,427,616 | ||
Weighted Average Exercise Price | $ 103.37 | ||
Options Exercisable Aggregate Intrinsic Value | $ | $ 172,000,000 | ||
Exercise Price Range $115.00-$134.00 [Member] | 2016 Plan [Member] | Stock Options [Member] | |||
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range Beginning Of Period Abstract | |||
Options Outstanding, Number of Options | shares | 4,638,728 | ||
Options Outstanding, Weighted Average Life | 9 years 2 months | ||
Options Outstanding, Weighted Average Exercise Price | 125.15 | ||
Options Outstanding Aggregate Intrinsic Value | $ | $ 131,000,000 | ||
Options Exercisable Number of Options | shares | 16,533 | ||
Weighted Average Exercise Price | $ 124.2 | ||
Options Exercisable Aggregate Intrinsic Value | $ | $ 0 |
STOCK BASED COMPENSATION PLANS
STOCK BASED COMPENSATION PLANS 3 (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Stock Options [Line Items] | |||
Weighted Average Exercise Price | $ 78.35 | ||
Restricted Stock Units (RSUs) [Member] | Minimum [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Stock Options [Line Items] | |||
Vesting periods | 3 years | ||
Restricted Stock Units (RSUs) [Member] | Maximum [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Stock Options [Line Items] | |||
Vesting periods | 7 years | ||
2016 Plan [Member] | Stock Options [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Stock Options [Line Items] | |||
Number of Options Exercisable | 12,288,854 | 15,536,961 | 17,202,377 |
Weighted Average Exercise Price | $ 78.35 | $ 63.39 | $ 55.11 |
Shares of Honeywell common stock available for future grants | 42,025,990 | ||
Unrecognized compensation on nonvested stock options | $ 108 | ||
Nonvested options recognized over weighted average period, years | 2 years 4 months | ||
Fair value of options vested | $ 87 | $ 76 | $ 73 |
Financial Statement Impact From Stock Options Exercised [Abstract] | |||
Intrinsic value | 620 | 395 | 210 |
Tax benefit realized | 221 | 137 | 73 |
Share-based compensation expense | 79 | 87 | 78 |
Future income tax benefit recognized | 17 | 29 | 26 |
2016 Plan [Member] | Restricted Stock Units (RSUs) [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Stock Options [Line Items] | |||
Unrecognized compensation on nonvested stock options | $ 210 | ||
Nonvested options recognized over weighted average period, years | 3 years 2 months | ||
Financial Statement Impact From Stock Options Exercised [Abstract] | |||
Share-based compensation expense | $ 97 | 97 | 97 |
Future income tax benefit recognized | $ 19 | $ 30 | $ 29 |
2016 Directors Plan | Stock Options [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Stock Options [Line Items] | |||
Shares of Honeywell common stock available for future grants | 924,694 |
STOCK-BASED COMPENSATION PLAN90
STOCK-BASED COMPENSATION PLANS - RSUS (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Restricted Stock Units (RSUs) [Member] | Minimum [Member] | |||
Restricted Stock Units [Line Items] | |||
Vesting periods | 3 years | ||
Restricted Stock Units (RSUs) [Member] | Maximum [Member] | |||
Restricted Stock Units [Line Items] | |||
Vesting periods | 7 years | ||
2016 Plan [Member] | Stock Options [Member] | |||
Restricted Stock Units [Line Items] | |||
Nonvested options recognized over weighted average period, years | 2 years 4 months | ||
Unrecognized compensation on nonvested stock options | $ 108 | ||
Income Statement Impact From RSUs [Abstract] | |||
Share-based compensation expense | 79 | $ 87 | $ 78 |
Future income tax benefit recognized | $ 17 | $ 29 | $ 26 |
2016 Plan [Member] | Restricted Stock Units (RSUs) [Member] | |||
Restricted Stock Units [Line Items] | |||
Nonvested options recognized over weighted average period, years | 3 years 2 months | ||
Unrecognized compensation on nonvested stock options | $ 210 | ||
Restricted Stock Units Number of Options [Abstract] | |||
Non-vested at beginning of period, | 4,467,343 | 4,981,588 | 5,899,194 |
Granted | 1,274,791 | 1,364,469 | 1,190,406 |
Vested | (1,289,892) | (1,486,173) | (1,681,342) |
Forfeited | (505,415) | (392,541) | (426,670) |
Non-vested at end of period, | 3,946,827 | 4,467,343 | 4,981,588 |
Weighted average grant date fair value per share [Abstract] | |||
Non-vested at beginning of period, | $ 94.17 | $ 82.18 | $ 70.32 |
Granted | 129.71 | 110.49 | 103.04 |
Vested | 81.37 | 68.58 | 56.38 |
Forfeited | 103.06 | 88.88 | 77.73 |
Non-vested at end of period, | $ 108.6 | $ 94.17 | $ 82.18 |
Income Statement Impact From RSUs [Abstract] | |||
Share-based compensation expense | $ 97 | $ 97 | $ 97 |
Future income tax benefit recognized | $ 19 | $ 30 | $ 29 |
COMMITMENTS AND CONTINGENCIES91
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | |
Loss Contingency Classification of Accrual [Abstract] | |||||
Accrued liabilities | $ 226 | $ 252 | |||
Other liabilities | 369 | 259 | |||
Total environmental liabilities | $ 511 | $ 511 | $ 518 | $ 595 | $ 511 |
Environmental Matters [Abstract] | |||||
Beginning of period | 511 | 518 | 591 | ||
Accruals for environmental matters deemed probable and reasonably estimable | 287 | 195 | 194 | ||
Environmental liability payments | (212) | (228) | (273) | ||
Other | 9 | 26 | 6 | ||
End of period | $ 595 | $ 511 | $ 518 |
COMMITMENTS AND CONTINGENCIES 2
COMMITMENTS AND CONTINGENCIES 2 (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Asbestos Related Liabilities Disclosure [Abstract] | |||
Asbestos Related Liabilities, Beginning of Period | $ 1,560,000,000 | $ 1,543,000,000 | $ 1,552,000,000 |
Accrual for update to estimated liability | 230,000,000 | 212,000,000 | 188,000,000 |
Change in estimated cost of future claims | (4,000,000) | 13,000,000 | 11,000,000 |
Update of expected resolution values for pending claims | 3,000,000 | 4,000,000 | 1,000,000 |
Asbestos related liability payments | (266,000,000) | (212,000,000) | (209,000,000) |
Asbestos Related Liabilities, End of Period | 1,523,000,000 | 1,560,000,000 | 1,543,000,000 |
Asbestos Related Liabilities Insurance Recoveries [Line Items] | |||
Insurance Recoveries, beginning of period | 440,000,000 | 449,000,000 | 485,000,000 |
Probable insurance recoveries related to estimated liability | 22,000,000 | 26,000,000 | 21,000,000 |
Insurance receipts for asbestos related liabilities | (27,000,000) | (43,000,000) | (63,000,000) |
Insurance receivables settlements and write-offs | 0 | 7,000,000 | 7,000,000 |
Other | 0 | 1,000,000 | (1,000,000) |
Insurance recoveries, end of period | 435,000,000 | 440,000,000 | 449,000,000 |
Bendix Asbestos Loss Contingency Liability [Member] | |||
Asbestos Related Liabilities Disclosure [Abstract] | |||
Asbestos Related Liabilities, Beginning of Period | 641,000,000 | 622,000,000 | 623,000,000 |
Accrual for update to estimated liability | 199,000,000 | 203,000,000 | 180,000,000 |
Change in estimated cost of future claims | (4,000,000) | 13,000,000 | 11,000,000 |
Update of expected resolution values for pending claims | 3,000,000 | 4,000,000 | 1,000,000 |
Asbestos related liability payments | (223,000,000) | (201,000,000) | (193,000,000) |
Asbestos Related Liabilities, End of Period | 616,000,000 | 641,000,000 | 622,000,000 |
Asbestos Related Liabilities Insurance Recoveries [Line Items] | |||
Insurance Recoveries, beginning of period | 121,000,000 | 124,000,000 | 135,000,000 |
Probable insurance recoveries related to estimated liability | 22,000,000 | 26,000,000 | 21,000,000 |
Insurance receipts for asbestos related liabilities | (20,000,000) | (37,000,000) | (33,000,000) |
Insurance receivables settlements and write-offs | 0 | 7,000,000 | 1,000,000 |
Other | 0 | 1,000,000 | 0 |
Insurance recoveries, end of period | 123,000,000 | 121,000,000 | 124,000,000 |
Narco Asbestos Loss Contingency Liability [Member] | |||
Asbestos Related Liabilities Disclosure [Abstract] | |||
Asbestos Related Liabilities, Beginning of Period | 919,000,000 | 921,000,000 | 929,000,000 |
Accrual for update to estimated liability | 31,000,000 | 9,000,000 | 8,000,000 |
Change in estimated cost of future claims | 0 | 0 | 0 |
Update of expected resolution values for pending claims | 0 | 0 | 0 |
Asbestos related liability payments | (43,000,000) | (11,000,000) | (16,000,000) |
Asbestos Related Liabilities, End of Period | 907,000,000 | 919,000,000 | 921,000,000 |
Asbestos Related Liabilities Insurance Recoveries [Line Items] | |||
Insurance Recoveries, beginning of period | 319,000,000 | 325,000,000 | 350,000,000 |
Probable insurance recoveries related to estimated liability | 0 | 0 | 0 |
Insurance receipts for asbestos related liabilities | (7,000,000) | (6,000,000) | (30,000,000) |
Insurance receivables settlements and write-offs | 0 | 0 | 6,000,000 |
Other | 0 | 0 | (1,000,000) |
Insurance recoveries, end of period | $ 312,000,000 | $ 319,000,000 | $ 325,000,000 |
COMMITMENTS AND CONTINGENCIES 3
COMMITMENTS AND CONTINGENCIES 3 (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Loss Contingency, Narco and Bendix Asbestos Related Balances by Balance Sheet Caption [Line Items] | ||||
Other current assets | $ 24 | $ 23 | ||
Insurance recoveries for asbestos related liabilities | 411 | 417 | ||
Total assets | 435 | 440 | $ 449 | $ 485 |
Accrued liabilities | 350 | 546 | ||
Asbestos related liabilities | 1,173 | 1,014 | ||
Total liabilities | $ 1,523 | $ 1,560 | $ 1,543 | $ 1,552 |
COMMITMENTS AND CONTINGENCIES 4
COMMITMENTS AND CONTINGENCIES 4 (Details) $ in Millions | Dec. 31, 2017USD ($) |
Loss Contingency By Nature Of Contingency [Line Items] | |
Loss Contingency Estimated Pre-established Unliquidated Claims Amount | $ 145 |
Exceptions To Cap [Abstract] | |
Value Not Included In Cap | 100 |
Estimated value of settlement agreements to be paid during the initial years of trust operations | 150 |
Settlement Payments | 5 |
Year 2018 [Member] | |
Loss Contingency By Nature Of Contingency [Line Items] | |
Annual Trust Cap | 140 |
Year 2019 And Thereafter [Member] | |
Loss Contingency By Nature Of Contingency [Line Items] | |
Annual Trust Cap | 145 |
Narco Asbestos Loss Contingency Liability [Member] | |
Loss Contingency By Nature Of Contingency [Line Items] | |
Loss Contingency Unsettled Claims Amount | 19 |
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 |
COMMITMENTS AND CONTINGENCIES 5
COMMITMENTS AND CONTINGENCIES 5 (Details) - Bendix Asbestos Loss Contingency Liability [Member] | 12 Months Ended | ||||
Dec. 31, 2017claims$ / claims | Dec. 31, 2016claims$ / claims | Dec. 31, 2015claims$ / claims | Dec. 31, 2014$ / claims | Dec. 31, 2013$ / claims | |
Loss Contingency Claims [Abstract] | |||||
Claims unresolved at the beginning of period | 7,724 | 7,779 | |||
Claims Filed | 2,645 | 2,830 | |||
Claims Resolved | (4,089) | (2,885) | |||
Claims unresolved at the end of period | 6,280 | 7,724 | 7,779 | ||
Loss Contingency, Disease Distribution of Unresolved Claims [Abstract] | |||||
Mesothelioma and Other Cancer Claims | 3,062 | 3,490 | |||
Nonmalignant Claims | 3,218 | 4,234 | |||
Claims unresolved at the end of period | 6,280 | 7,724 | 7,779 | ||
Resolution Values Per Claim [Abstract] | |||||
Malignant claims | $ / claims | 56,000 | 44,000 | 44,000 | 53,500 | 51,000 |
Nonmalignant claims | $ / claims | 2,800 | 4,485 | 100 | 120 | 850 |
COMMITMENTS AND CONTINGENCIES 6
COMMITMENTS AND CONTINGENCIES 6 (Details) - United Auto Workers [Member] $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Pre 2003 Retirees [Member] | |
Other Matters [Line Items] | |
Potential Opeb Increase Due To Adverse Ruling | $ 103 |
Post 2003 Retirees [Member] | |
Other Matters [Line Items] | |
Potential Opeb Increase Due To Adverse Ruling | $ 79 |
COMMITMENTS AND CONTINGENCIES 7
COMMITMENTS AND CONTINGENCIES 7 (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | |
Product Warranties and Guarantees [Roll forward] | |||||
Beginning of year | $ 487 | $ 416 | $ 403 | ||
Accruals for warranties/guarantees issued during the year | 215 | 326 | 206 | ||
Adjustments of pre-existing warranties/guarantees | (27) | (40) | 13 | ||
Settlement of warranty/guarantee claims | (267) | (215) | (206) | ||
End of year | 408 | 487 | 416 | ||
Product Warranties and Guarantees, Balance Sheet Classification [Abstract] | |||||
Accrued liabilities | $ 307 | $ 351 | |||
Other liabilities | 101 | 136 | |||
Total Product Warranties and Guarantees Liabilities | $ 487 | $ 416 | $ 416 | $ 408 | $ 487 |
PENSION AND OTHER POSTRETIREM98
PENSION AND OTHER POSTRETIREMENT BENEFITS (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Amounts recognized in Consolidated Balance Sheet [Abstract] | ||||
Postretirement benefit obligations other than pensions | $ (512,000,000) | $ (473,000,000) | ||
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Income) Loss [Abstract] | ||||
Total recognized in other comprehensive (income) loss | (847,000,000) | 336,000,000 | $ (129,000,000) | |
Other Postretirement Benefits for Significant Plans [Member] | ||||
Change in Benefit Obligation [Roll forward] | ||||
Benefit obligation at beginning of year | $ 530,000,000 | 492,000,000 | 569,000,000 | |
Service cost | 0 | 0 | 0 | |
Interest cost | 19,000,000 | 20,000,000 | 33,000,000 | |
Plan amendments | 91,000,000 | 27,000,000 | ||
Actuarial (gains) losses | (14,000,000) | (31,000,000) | ||
Benefits paid - OPEB | (58,000,000) | (93,000,000) | ||
Benefit obligation at end of year | 530,000,000 | 492,000,000 | 569,000,000 | |
Change In Plan Assets [Roll forward] | ||||
Fair value of plan assets at beginning of year | 0 | 0 | 0 | |
Actual return on plan assets | 0 | 0 | ||
Company contributions | 0 | 0 | ||
Benefits paid - OPEB | 0 | 0 | ||
Fair value of plan assets at end of year | 0 | 0 | 0 | |
Funded status of plans | (530,000,000) | (492,000,000) | ||
Amounts recognized in Consolidated Balance Sheet [Abstract] | ||||
Accrued Liabilities - Current | (62,000,000) | (62,000,000) | ||
Postretirement benefit obligations other than pensions | (468,000,000) | (430,000,000) | ||
Net amount recognized | (530,000,000) | (492,000,000) | ||
Foreign plans excluded from postretirement benefits other than pensions | 44,000,000 | 43,000,000 | ||
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income [Abstract] | ||||
Prior service (credit) | (244,000,000) | (393,000,000) | ||
Net actuarial loss | 109,000,000 | 136,000,000 | ||
Net amount recognized | (135,000,000) | (257,000,000) | ||
Defined Benefit Plan Disclosure [Abstract] | ||||
Service cost | 0 | 0 | 0 | |
Interest cost | 19,000,000 | 20,000,000 | 33,000,000 | |
Amortization of prior service (credit) cost | (58,000,000) | (76,000,000) | (30,000,000) | |
Recognition of actuarial losses | 13,000,000 | 22,000,000 | 34,000,000 | |
Net periodic benefit (income) cost | (26,000,000) | (34,000,000) | 37,000,000 | |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Income) Loss [Abstract] | ||||
Actuarial (gains) losses | (14,000,000) | (31,000,000) | (55,000,000) | |
Prior service cost (credit) | 91,000,000 | 27,000,000 | (290,000,000) | |
Prior service (cost) credit recognized during year | 58,000,000 | 76,000,000 | 30,000,000 | |
Actuarial losses recognized during year | (13,000,000) | (22,000,000) | (34,000,000) | |
Total recognized in other comprehensive (income) loss | 122,000,000 | 50,000,000 | (349,000,000) | |
Total recognized in net periodic benefit (income) cost and other comprehensive (income) loss | 96,000,000 | 16,000,000 | (312,000,000) | |
Other Postretirement Benefits for Significant Plans [Member] | Scenario Forecast [Member] | ||||
Defined Benefit Plan Disclosure [Abstract] | ||||
Amortization of prior service (credit) cost | (52,000,000) | |||
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Income) Loss [Abstract] | ||||
Net loss to be amortized | 9,000,000 | |||
United States [Member] | ||||
Change in Benefit Obligation [Roll forward] | ||||
Benefit obligation at beginning of year | 18,151,000,000 | 17,414,000,000 | 17,298,000,000 | |
Service cost | 172,000,000 | 191,000,000 | 223,000,000 | |
Interest cost | 586,000,000 | 600,000,000 | 696,000,000 | |
Plan amendments | 0 | 0 | ||
Actuarial (gains) losses | 1,234,000,000 | 448,000,000 | ||
Benefits paid | (1,146,000,000) | (1,135,000,000) | ||
Settlements and curtailments | (109,000,000) | 0 | ||
Foreign currency translation | 0 | 0 | ||
Other | 0 | 12,000,000 | ||
Benefit obligation at end of year | 18,151,000,000 | 17,414,000,000 | 17,298,000,000 | |
Change In Plan Assets [Roll forward] | ||||
Fair value of plan assets at beginning of year | 18,985,000,000 | 16,814,000,000 | 16,349,000,000 | |
Actual return on plan assets | 3,287,000,000 | 1,554,000,000 | ||
Company contributions | 139,000,000 | 36,000,000 | ||
Benefits paid | (1,146,000,000) | (1,135,000,000) | ||
Settlements and curtailments | (109,000,000) | 0 | ||
Foreign currency translation | 0 | 0 | ||
Other | 0 | 10,000,000 | ||
Fair value of plan assets at end of year | 18,985,000,000 | 16,814,000,000 | 16,349,000,000 | |
Funded status of plans | 834,000,000 | (600,000,000) | ||
Amounts recognized in Consolidated Balance Sheet [Abstract] | ||||
Other Assets | 1,205,000,000 | 0 | ||
Accrued Liabilities - Current | (27,000,000) | (106,000,000) | ||
Other Liabilities - Noncurrent | (344,000,000) | (494,000,000) | ||
Net amount recognized | 834,000,000 | (600,000,000) | ||
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income [Abstract] | ||||
Prior service (credit) | (268,000,000) | (312,000,000) | ||
Net actuarial loss | 248,000,000 | 1,099,000,000 | ||
Net amount recognized | (20,000,000) | 787,000,000 | ||
Defined Benefit Plan Disclosure [Abstract] | ||||
Service cost | 172,000,000 | 191,000,000 | 223,000,000 | |
Interest cost | 586,000,000 | 600,000,000 | 696,000,000 | |
Expected return on plan assets | (1,262,000,000) | (1,226,000,000) | (1,278,000,000) | |
Amortization of transition obligations | 0 | 0 | 0 | |
Amortization of prior service (credit) cost | (43,000,000) | (43,000,000) | 13,000,000 | |
Recognition of actuarial losses | 41,000,000 | 27,000,000 | 52,000,000 | |
Settlements and curtailments | 18,000,000 | 0 | 8,000,000 | |
Net periodic benefit (income) cost | (488,000,000) | (451,000,000) | (286,000,000) | |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Income) Loss [Abstract] | ||||
Actuarial (gains) losses | (792,000,000) | 121,000,000 | 775,000,000 | |
Prior service cost (credit) | 0 | 0 | (429,000,000) | |
Transition obligation recognized during year | 0 | 0 | 0 | |
Prior service (cost) credit recognized during year | 43,000,000 | 43,000,000 | (13,000,000) | |
Actuarial losses recognized during year | (59,000,000) | (27,000,000) | (52,000,000) | |
Foreign currency translation | 0 | 0 | 0 | |
Total recognized in other comprehensive (income) loss | (808,000,000) | 137,000,000 | 281,000,000 | |
Total recognized in net periodic benefit (income) cost and other comprehensive (income) loss | (1,296,000,000) | (314,000,000) | (5,000,000) | |
United States [Member] | Scenario Forecast [Member] | ||||
Defined Benefit Plan Disclosure [Abstract] | ||||
Amortization of prior service (credit) cost | (43,000,000) | |||
Non-U.S. Pension Plans, Defined Benefit [Member] | ||||
Change in Benefit Obligation [Roll forward] | ||||
Benefit obligation at beginning of year | 7,019,000,000 | 6,483,000,000 | 6,338,000,000 | |
Service cost | 40,000,000 | 47,000,000 | 51,000,000 | |
Interest cost | 147,000,000 | 179,000,000 | 177,000,000 | |
Plan amendments | (1,000,000) | 0 | ||
Actuarial (gains) losses | (24,000,000) | 1,125,000,000 | ||
Benefits paid | (253,000,000) | (243,000,000) | ||
Settlements and curtailments | 0 | (50,000,000) | ||
Foreign currency translation | 614,000,000 | (930,000,000) | ||
Other | 13,000,000 | 17,000,000 | ||
Benefit obligation at end of year | 7,019,000,000 | 6,483,000,000 | 6,338,000,000 | |
Change In Plan Assets [Roll forward] | ||||
Fair value of plan assets at beginning of year | 7,151,000,000 | 6,120,000,000 | 6,117,000,000 | |
Actual return on plan assets | 539,000,000 | 1,006,000,000 | ||
Company contributions | 161,000,000 | 186,000,000 | ||
Benefits paid | (253,000,000) | (243,000,000) | ||
Settlements and curtailments | 0 | 0 | ||
Foreign currency translation | 569,000,000 | (957,000,000) | ||
Other | 15,000,000 | 11,000,000 | ||
Fair value of plan assets at end of year | 7,151,000,000 | 6,120,000,000 | 6,117,000,000 | |
Funded status of plans | 132,000,000 | (363,000,000) | ||
Amounts recognized in Consolidated Balance Sheet [Abstract] | ||||
Other Assets | 944,000,000 | 380,000,000 | ||
Accrued Liabilities - Current | (12,000,000) | (11,000,000) | ||
Other Liabilities - Noncurrent | (800,000,000) | (732,000,000) | ||
Net amount recognized | 132,000,000 | (363,000,000) | ||
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income [Abstract] | ||||
Prior service (credit) | (13,000,000) | (11,000,000) | ||
Net actuarial loss | 427,000,000 | 582,000,000 | ||
Net amount recognized | 414,000,000 | 571,000,000 | ||
Defined Benefit Plan Disclosure [Abstract] | ||||
Service cost | 40,000,000 | 47,000,000 | 51,000,000 | |
Interest cost | 147,000,000 | 179,000,000 | 177,000,000 | |
Expected return on plan assets | (411,000,000) | (377,000,000) | (358,000,000) | |
Amortization of transition obligations | 0 | 0 | 1,000,000 | |
Amortization of prior service (credit) cost | (1,000,000) | (3,000,000) | (3,000,000) | |
Recognition of actuarial losses | 46,000,000 | 246,000,000 | 15,000,000 | |
Settlements and curtailments | 0 | (7,000,000) | 2,000,000 | |
Net periodic benefit (income) cost | (179,000,000) | 85,000,000 | (115,000,000) | |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Income) Loss [Abstract] | ||||
Actuarial (gains) losses | (153,000,000) | 447,000,000 | 27,000,000 | |
Prior service cost (credit) | (1,000,000) | 0 | 0 | |
Transition obligation recognized during year | 0 | 0 | (1,000,000) | |
Prior service (cost) credit recognized during year | 1,000,000 | 10,000,000 | 3,000,000 | |
Actuarial losses recognized during year | (46,000,000) | (246,000,000) | (17,000,000) | |
Foreign currency translation | 43,000,000 | (83,000,000) | (37,000,000) | |
Total recognized in other comprehensive (income) loss | (156,000,000) | 128,000,000 | (25,000,000) | |
Total recognized in net periodic benefit (income) cost and other comprehensive (income) loss | $ (335,000,000) | $ 213,000,000 | $ (140,000,000) | |
Non-U.S. Pension Plans, Defined Benefit [Member] | Scenario Forecast [Member] | ||||
Defined Benefit Plan Disclosure [Abstract] | ||||
Amortization of prior service (credit) cost | $ (1,000,000) |
PENSION AND OTHER POSTRETIREM99
PENSION AND OTHER POSTRETIREMENT BENEFITS 2 (Details) - USD ($) | 2 Months Ended | 12 Months Ended | |||
Feb. 28, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Postretirement Benefits [Member] | |||||
Actuarial assumptions used to determine benefit obligations as of December 31: [Abstract] | |||||
Discount rate | 3.39% | 3.65% | 3.80% | ||
Defined Benefit Plan Assumptions Used Calculating Benefit Obligation Discount Rate Support Methodology And Source Data | To determine discount rates for our U.S. pension and other postretirement benefit plans, we use a modeling process that involves matching the expected cash outflows of our benefit plans to a yield curve constructed from a portfolio of high quality, fixed-income debt instruments. We use the single weighted-average yield of this hypothetical portfolio as a discount rate benchmark. | ||||
Actuarial assumptions used to determine net periodic benefit (income) cost for years ended December 31: [Abstract] | |||||
Discount rate - benefit obligation | 3.65% | 3.60% | 3.80% | 3.45% | |
Defined Benefit Plan Assumptions Used Calculating Benefit Obligation Discount Rate Support Methodology And Source Data | To determine discount rates for our U.S. pension and other postretirement benefit plans, we use a modeling process that involves matching the expected cash outflows of our benefit plans to a yield curve constructed from a portfolio of high quality, fixed-income debt instruments. We use the single weighted-average yield of this hypothetical portfolio as a discount rate benchmark. | ||||
United States [Member] | |||||
Actuarial assumptions used to determine benefit obligations as of December 31: [Abstract] | |||||
Discount rate | 3.68% | 4.20% | 4.46% | ||
Expected annual rate of compensation increase | 4.50% | 4.50% | 4.48% | ||
Defined Benefit Plan Assumptions Used Calculating Benefit Obligation Discount Rate Support Methodology And Source Data | . To determine discount rates for our U.S. pension and other postretirement benefit plans, we use a modeling process that involves matching the expected cash outflows of our benefit plans to a yield curve constructed from a portfolio of high quality, fixed-income debt instruments. We use the single weighted-average yield of this hypothetical portfolio as a discount rate benchmark. The discount rate used to determine the other postretirement benefit obligation is lower principally due to a shorter expected duration of other postretirement plan obligations as compared to pension plan obligations. During the fourth quarter of 2015 we changed the methodology used to estimate the service and interest cost components of net periodic benefit (income) cost for our significant pension plans. Previously, we estimated such cost components utilizing a single weighted-average discount rate derived from the yield curve used to measure the pension benefit obligation. The new methodology utilizes a full yield curve approach in the estimation of these cost components by applying the specific spot rates along the yield curve used in the determination of the pension benefit obligation to their underlying projected cash flows and provides a more precise measurement of service and interest costs by improving the correlation between projected cash flows and their corresponding spot rates. The change did not affect the measurement of our pension obligation and was applied prospectively as a change in estimate. | ||||
Actuarial assumptions used to determine net periodic benefit (income) cost for years ended December 31: [Abstract] | |||||
Discount rate - benefit obligation | 4.20% | 4.46% | 4.08% | ||
Expected rate of return on plan assets | 7.75% | 7.75% | 7.75% | ||
Expected annual rate of compensation increase | 4.50% | 4.48% | 4.50% | ||
Defined Benefit Plan Assumptions Used Calculating Benefit Obligation Discount Rate Support Methodology And Source Data | . To determine discount rates for our U.S. pension and other postretirement benefit plans, we use a modeling process that involves matching the expected cash outflows of our benefit plans to a yield curve constructed from a portfolio of high quality, fixed-income debt instruments. We use the single weighted-average yield of this hypothetical portfolio as a discount rate benchmark. The discount rate used to determine the other postretirement benefit obligation is lower principally due to a shorter expected duration of other postretirement plan obligations as compared to pension plan obligations. During the fourth quarter of 2015 we changed the methodology used to estimate the service and interest cost components of net periodic benefit (income) cost for our significant pension plans. Previously, we estimated such cost components utilizing a single weighted-average discount rate derived from the yield curve used to measure the pension benefit obligation. The new methodology utilizes a full yield curve approach in the estimation of these cost components by applying the specific spot rates along the yield curve used in the determination of the pension benefit obligation to their underlying projected cash flows and provides a more precise measurement of service and interest costs by improving the correlation between projected cash flows and their corresponding spot rates. The change did not affect the measurement of our pension obligation and was applied prospectively as a change in estimate. | ||||
Defined Benefit Plan Plans With Benefit Obligations In Excess of Plan Assets [Abstract] | |||||
Projected benefit obligations | $ 371,000,000 | $ 17,414,000,000 | |||
Accumulated benefit obligations | 360,000,000 | 17,263,000,000 | |||
Fair value of plan assets | 0 | 16,814,000,000 | |||
Defined Benefit Plan Accumulated Benefit Obligation [Abstract] | |||||
Accumulated benefit obligation | $ 18,100,000,000 | $ 17,300,000,000 | |||
United States [Member] | Service Cost | |||||
Actuarial assumptions used to determine net periodic benefit (income) cost for years ended December 31: [Abstract] | |||||
Discount rate - benefit obligation | 4.42% | 4.69% | |||
United States [Member] | Interest Costs | |||||
Actuarial assumptions used to determine net periodic benefit (income) cost for years ended December 31: [Abstract] | |||||
Discount rate - benefit obligation | 3.49% | 3.59% | |||
United States [Member] | Scenario Forecast [Member] | Service Cost | |||||
Actuarial assumptions used to determine net periodic benefit (income) cost for years ended December 31: [Abstract] | |||||
Discount rate - benefit obligation | 3.77% | ||||
United States [Member] | Scenario Forecast [Member] | Interest Costs | |||||
Actuarial assumptions used to determine net periodic benefit (income) cost for years ended December 31: [Abstract] | |||||
Discount rate - benefit obligation | 3.27% | ||||
Non-U.S. Pension Plans, Defined Benefit [Member] | |||||
Actuarial assumptions used to determine benefit obligations as of December 31: [Abstract] | |||||
Discount rate | 2.36% | 2.51% | 3.49% | ||
Expected annual rate of compensation increase | 0.73% | 2.17% | 2.11% | ||
Defined Benefit Plan Assumptions Used Calculating Benefit Obligation Discount Rate Support Methodology And Source Data | During the fourth quarter of 2015 we changed the methodology used to estimate the service and interest cost components of net periodic benefit (income) cost for our significant pension plans. Previously, we estimated such cost components utilizing a single weighted-average discount rate derived from the yield curve used to measure the pension benefit obligation. The new methodology utilizes a full yield curve approach in the estimation of these cost components by applying the specific spot rates along the yield curve used in the determination of the pension benefit obligation to their underlying projected cash flows and provides a more precise measurement of service and interest costs by improving the correlation between projected cash flows and their corresponding spot rates. The change did not affect the measurement of our pension obligation and was applied prospectively as a change in estimate. | ||||
Actuarial assumptions used to determine net periodic benefit (income) cost for years ended December 31: [Abstract] | |||||
Discount rate - benefit obligation | 2.51% | 3.49% | 3.26% | ||
Expected rate of return on plan assets | 6.43% | 6.65% | 6.94% | ||
Expected annual rate of compensation increase | 2.17% | 2.11% | 2.53% | ||
Defined Benefit Plan Assumptions Used Calculating Benefit Obligation Discount Rate Support Methodology And Source Data | During the fourth quarter of 2015 we changed the methodology used to estimate the service and interest cost components of net periodic benefit (income) cost for our significant pension plans. Previously, we estimated such cost components utilizing a single weighted-average discount rate derived from the yield curve used to measure the pension benefit obligation. The new methodology utilizes a full yield curve approach in the estimation of these cost components by applying the specific spot rates along the yield curve used in the determination of the pension benefit obligation to their underlying projected cash flows and provides a more precise measurement of service and interest costs by improving the correlation between projected cash flows and their corresponding spot rates. The change did not affect the measurement of our pension obligation and was applied prospectively as a change in estimate. | ||||
Defined Benefit Plan Plans With Benefit Obligations In Excess of Plan Assets [Abstract] | |||||
Projected benefit obligations | $ 1,082,000,000 | $ 2,294,000,000 | |||
Accumulated benefit obligations | 1,018,000,000 | 2,220,000,000 | |||
Fair value of plan assets | 269,000,000 | 1,552,000,000 | |||
Defined Benefit Plan Accumulated Benefit Obligation [Abstract] | |||||
Accumulated benefit obligation | $ 6,900,000,000 | $ 6,400,000,000 | |||
Non-U.S. Pension Plans, Defined Benefit [Member] | Service Cost | |||||
Actuarial assumptions used to determine net periodic benefit (income) cost for years ended December 31: [Abstract] | |||||
Discount rate - benefit obligation | 2.14% | 2.92% | |||
Non-U.S. Pension Plans, Defined Benefit [Member] | Interest Costs | |||||
Actuarial assumptions used to determine net periodic benefit (income) cost for years ended December 31: [Abstract] | |||||
Discount rate - benefit obligation | 2.19% | 3.07% |
PENSION AND OTHER POSTRETIRE100
PENSION AND OTHER POSTRETIREMENT BENEFITS 3 (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Postretirement Benefits [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | $ 0 | $ 0 | $ 0 |
United States [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 18,985,000,000 | 16,814,000,000 | 16,349,000,000 |
Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 7,151,000,000 | 6,120,000,000 | $ 6,117,000,000 |
Honeywell common stock | United States [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 2,832,000,000 | 2,140,000,000 | |
U.S. equities | United States [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 3,573,000,000 | 3,583,000,000 | |
U.S. equities | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 573,000,000 | 650,000,000 | |
Non-U.S. equities | United States [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 2,631,000,000 | 2,069,000,000 | |
Non-U.S. equities | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 2,801,000,000 | 2,153,000,000 | |
Real estate investment trusts | United States [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 265,000,000 | 203,000,000 | |
Short term investments | United States [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 919,000,000 | 1,306,000,000 | |
Short term investments | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 238,000,000 | 146,000,000 | |
Government securities | United States [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 428,000,000 | 305,000,000 | |
Government securities | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 1,685,000,000 | 1,530,000,000 | |
Corporate bonds | United States [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 5,052,000,000 | 4,366,000,000 | |
Corporate bonds | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 1,364,000,000 | 1,220,000,000 | |
Mortgage/Asset-backed securities | United States [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 742,000,000 | 617,000,000 | |
Mortgage/Asset-backed securities | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 47,000,000 | 18,000,000 | |
Insurance contracts | United States [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 8,000,000 | 7,000,000 | |
Insurance contracts | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 157,000,000 | 152,000,000 | |
Private Funds [Member] | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 52,000,000 | 42,000,000 | |
Real Estate Funds - Global [Member] | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 149,000,000 | 124,000,000 | |
Direct Private Investments [Member] | United States [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 752,000,000 | 609,000,000 | |
Real Estate Properties [Member] | United States [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 597,000,000 | 664,000,000 | |
Total plan assets, excluding NAV assets [Member] | United States [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 17,799,000,000 | 15,869,000,000 | |
Total plan assets, excluding NAV assets [Member] | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 7,066,000,000 | 6,035,000,000 | |
NAV assets, Private funds [Member] | United States [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 901,000,000 | 815,000,000 | |
NAV assets, Private funds [Member] | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 29,000,000 | 33,000,000 | |
NAV assets, Real estate funds [Member] | United States [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 84,000,000 | 110,000,000 | |
NAV assets, Real estate funds [Member] | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 56,000,000 | 52,000,000 | |
NAV assets, Hedge funds [Member] | United States [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 20,000,000 | 20,000,000 | |
NAV Assets Comingled Funds [Member] | United States [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | $ 181,000,000 | ||
Equity Securities [Member] | Minimum [Member] | |||
Defined Benefit Plan Plans With Benefit Obligations In Excess of Plan Assets Paragraph Details [Line Items] | |||
Target allocations percentage | 60.00% | ||
Equity Securities [Member] | Maximum [Member] | |||
Defined Benefit Plan Plans With Benefit Obligations In Excess of Plan Assets Paragraph Details [Line Items] | |||
Target allocations percentage | 70.00% | ||
Fixed Income Securities and Cash [Member] | Minimum [Member] | |||
Defined Benefit Plan Plans With Benefit Obligations In Excess of Plan Assets Paragraph Details [Line Items] | |||
Target allocations percentage | 10.00% | ||
Fixed Income Securities and Cash [Member] | Maximum [Member] | |||
Defined Benefit Plan Plans With Benefit Obligations In Excess of Plan Assets Paragraph Details [Line Items] | |||
Target allocations percentage | 20.00% | ||
Real Estate [Member] | Minimum [Member] | |||
Defined Benefit Plan Plans With Benefit Obligations In Excess of Plan Assets Paragraph Details [Line Items] | |||
Target allocations percentage | 5.00% | ||
Real Estate [Member] | Maximum [Member] | |||
Defined Benefit Plan Plans With Benefit Obligations In Excess of Plan Assets Paragraph Details [Line Items] | |||
Target allocations percentage | 15.00% | ||
Other Than Securities Investment [Member] | Minimum [Member] | |||
Defined Benefit Plan Plans With Benefit Obligations In Excess of Plan Assets Paragraph Details [Line Items] | |||
Target allocations percentage | 10.00% | ||
Other Than Securities Investment [Member] | Maximum [Member] | |||
Defined Benefit Plan Plans With Benefit Obligations In Excess of Plan Assets Paragraph Details [Line Items] | |||
Target allocations percentage | 20.00% | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Honeywell common stock | United States [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | $ 2,832,000,000 | 2,140,000,000 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. equities | United States [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 3,573,000,000 | 3,583,000,000 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. equities | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 420,000,000 | 525,000,000 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-U.S. equities | United States [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 2,618,000,000 | 2,037,000,000 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-U.S. equities | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 99,000,000 | 219,000,000 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Real estate investment trusts | United States [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 265,000,000 | 203,000,000 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Short term investments | United States [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 919,000,000 | 1,306,000,000 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Short term investments | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 238,000,000 | 146,000,000 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Government securities | United States [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Government securities | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate bonds | United States [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate bonds | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage/Asset-backed securities | United States [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage/Asset-backed securities | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Insurance contracts | United States [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Insurance contracts | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Private Funds [Member] | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Real Estate Funds - Global [Member] | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Direct Private Investments [Member] | United States [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Real Estate Properties [Member] | United States [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Total plan assets, excluding NAV assets [Member] | United States [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 10,207,000,000 | 9,269,000,000 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Total plan assets, excluding NAV assets [Member] | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 757,000,000 | 890,000,000 | |
Significant Observable Inputs (Level 2) | Honeywell common stock | United States [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Significant Observable Inputs (Level 2) | U.S. equities | United States [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Significant Observable Inputs (Level 2) | U.S. equities | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 153,000,000 | 125,000,000 | |
Significant Observable Inputs (Level 2) | Non-U.S. equities | United States [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 13,000,000 | 32,000,000 | |
Significant Observable Inputs (Level 2) | Non-U.S. equities | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 2,702,000,000 | 1,934,000,000 | |
Significant Observable Inputs (Level 2) | Real estate investment trusts | United States [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Significant Observable Inputs (Level 2) | Short term investments | United States [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Significant Observable Inputs (Level 2) | Short term investments | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Significant Observable Inputs (Level 2) | Government securities | United States [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 428,000,000 | 305,000,000 | |
Significant Observable Inputs (Level 2) | Government securities | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 1,685,000,000 | 1,530,000,000 | |
Significant Observable Inputs (Level 2) | Corporate bonds | United States [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 5,052,000,000 | 4,366,000,000 | |
Significant Observable Inputs (Level 2) | Corporate bonds | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 1,364,000,000 | 1,220,000,000 | |
Significant Observable Inputs (Level 2) | Mortgage/Asset-backed securities | United States [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 742,000,000 | 617,000,000 | |
Significant Observable Inputs (Level 2) | Mortgage/Asset-backed securities | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 47,000,000 | 18,000,000 | |
Significant Observable Inputs (Level 2) | Insurance contracts | United States [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 8,000,000 | 7,000,000 | |
Significant Observable Inputs (Level 2) | Insurance contracts | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 157,000,000 | 152,000,000 | |
Significant Observable Inputs (Level 2) | Private Funds [Member] | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 21,000,000 | 19,000,000 | |
Significant Observable Inputs (Level 2) | Real Estate Funds - Global [Member] | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Significant Observable Inputs (Level 2) | Direct Private Investments [Member] | United States [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Significant Observable Inputs (Level 2) | Real Estate Properties [Member] | United States [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Significant Observable Inputs (Level 2) | Total plan assets, excluding NAV assets [Member] | United States [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 6,243,000,000 | 5,327,000,000 | |
Significant Observable Inputs (Level 2) | Total plan assets, excluding NAV assets [Member] | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 6,129,000,000 | 4,998,000,000 | |
Significant Unobservable Inputs (Level 3) | Honeywell common stock | United States [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | U.S. equities | United States [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | U.S. equities | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Non-U.S. equities | United States [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Non-U.S. equities | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Real estate investment trusts | United States [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Short term investments | United States [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Short term investments | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Government securities | United States [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Government securities | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Corporate bonds | United States [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Corporate bonds | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Mortgage/Asset-backed securities | United States [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Mortgage/Asset-backed securities | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Insurance contracts | United States [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Insurance contracts | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Private Funds [Member] | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Roll Forward] | |||
Investments at beginning of year | 23,000,000 | 10,000,000 | |
Relating to assets still held at year-end | 5,000,000 | 1,000,000 | |
Relating to assets sold during the year | 0 | 0 | |
Purchases | 6,000,000 | 12,000,000 | |
Sales and settlements | (3,000,000) | 0 | |
Investments at end of year | 31,000,000 | 23,000,000 | |
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 31,000,000 | 23,000,000 | |
Significant Unobservable Inputs (Level 3) | Real Estate Funds - Global [Member] | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Roll Forward] | |||
Investments at beginning of year | 124,000,000 | 152,000,000 | |
Relating to assets still held at year-end | 26,000,000 | (22,000,000) | |
Relating to assets sold during the year | 0 | (1,000,000) | |
Purchases | 0 | 0 | |
Sales and settlements | (1,000,000) | (5,000,000) | |
Investments at end of year | 149,000,000 | 124,000,000 | |
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 149,000,000 | 124,000,000 | |
Significant Unobservable Inputs (Level 3) | Direct Private Investments [Member] | United States [Member] | |||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Roll Forward] | |||
Investments at beginning of year | 609,000,000 | 535,000,000 | |
Relating to assets still held at year-end | 33,000,000 | (42,000,000) | |
Relating to assets sold during the year | 51,000,000 | 28,000,000 | |
Purchases | 148,000,000 | 141,000,000 | |
Sales and settlements | (89,000,000) | (53,000,000) | |
Investments at end of year | 752,000,000 | 609,000,000 | |
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 752,000,000 | 609,000,000 | |
Significant Unobservable Inputs (Level 3) | Real Estate Properties [Member] | United States [Member] | |||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Roll Forward] | |||
Investments at beginning of year | 664,000,000 | 626,000,000 | |
Relating to assets still held at year-end | 2,000,000 | 11,000,000 | |
Relating to assets sold during the year | 31,000,000 | 7,000,000 | |
Purchases | 18,000,000 | 48,000,000 | |
Sales and settlements | (118,000,000) | (28,000,000) | |
Investments at end of year | 597,000,000 | 664,000,000 | |
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 597,000,000 | 664,000,000 | |
Significant Unobservable Inputs (Level 3) | Total plan assets, excluding NAV assets [Member] | United States [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 1,349,000,000 | 1,273,000,000 | |
Significant Unobservable Inputs (Level 3) | Total plan assets, excluding NAV assets [Member] | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | $ 180,000,000 | $ 147,000,000 |
PENSION AND OTHER POSTRETIRE101
PENSION AND OTHER POSTRETIREMENT BENEFITS 4 (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | |
United States [Member] | |||
Future Benefit Payments [Abstract] | |||
2,018 | $ 1,170 | ||
2,019 | 1,159 | ||
2,020 | 1,165 | ||
2,021 | 1,169 | ||
2,022 | 1,176 | ||
2023-2027 | 5,795 | ||
Funding Policy Paragraph Details [Line Items] | |||
Pension notional amount | 4,188 | $ 3,775 | |
Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Future Benefit Payments [Abstract] | |||
2,018 | 261 | ||
2,019 | 256 | ||
2,020 | 264 | ||
2,021 | 271 | ||
2,022 | 289 | ||
2023-2027 | 1,477 | ||
Funding Policy Paragraph Details [Line Items] | |||
Pension notional amount | 133 | $ 55 | |
Cash pension contributions | $ 136 | ||
Non-U.S. Pension Plans, Defined Benefit [Member] | Scenario Forecast [Member] | |||
Funding Policy Paragraph Details [Line Items] | |||
Contributions to pension plans | $ 142 | ||
Other Postretirement Benefits [Member] | |||
Defined Benefit Plan Assumed Health Care Cost Trend Rates Abstract | |||
Health care cost trend rate assumed for next year | 6.50% | 6.50% | |
Rate that the cost trend rate gradually declines to | 5.00% | 5.00% | |
Year that rate reaches the rate it is assumed to remain at | 2,023 | 2,023 | |
Effect Of One Percentage Point [abstract] | |||
Increase on service and interest | $ 1 | ||
Decrease on service and interest | (1) | ||
Increase on postretirement benefit obligation | 28 | ||
Decrease on postretirement benefit obligation | (22) | ||
Other Postretirement Benefits [Member] | Without Impact of Medicare Subsidy [Member] | |||
Future Benefit Payments [Abstract] | |||
2,018 | 67 | ||
2,019 | 62 | ||
2,020 | 58 | ||
2,021 | 54 | ||
2,022 | 50 | ||
2023-2027 | 161 | ||
Other Postretirement Benefits [Member] | Net of Medicare Subsidy [Member] | |||
Future Benefit Payments [Abstract] | |||
2,018 | 62 | ||
2,019 | 57 | ||
2,020 | 53 | ||
2,021 | 49 | ||
2,022 | 46 | ||
2023-2027 | $ 145 |
SEGMENT FINANCIAL DATA (Details
SEGMENT FINANCIAL DATA (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of segment profit to consolidated [Abstract] | |||
Segment Reporting Segment Profit Loss | $ 7,690,000,000 | $ 7,186,000,000 | $ 7,256,000,000 |
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||
Interest and other financial charges | (316,000,000) | (338,000,000) | (310,000,000) |
Repositioning and other charges | (1,021,000,000) | (695,000,000) | (546,000,000) |
Income before taxes | 6,902,000,000 | 6,447,000,000 | 6,586,000,000 |
Other Postretirement Benefits for Significant Plans [Member] | |||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||
Benefit plans income/(expense) | 26,000,000 | 34,000,000 | (37,000,000) |
Corporate [Member] | |||
Reconciliation of segment profit to consolidated [Abstract] | |||
Segment Reporting Segment Profit Loss | (306,000,000) | (218,000,000) | (210,000,000) |
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||
Repositioning and other charges | (494,000,000) | (267,000,000) | (218,000,000) |
Material Reconciling Items [Member] | |||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||
Pension mark-to-market expense | (87,000,000) | (273,000,000) | (67,000,000) |
Other income (expense) | 28,000,000 | 71,000,000 | 38,000,000 |
Interest and other financial charges | (316,000,000) | (338,000,000) | (310,000,000) |
Stock compensation expense | (176,000,000) | (184,000,000) | (175,000,000) |
Repositioning and other charges | (971,000,000) | (648,000,000) | (546,000,000) |
Income before taxes | 6,902,000,000 | 6,447,000,000 | 6,586,000,000 |
Material Reconciling Items [Member] | Pension Plans, Defined Benefit [Member] | |||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||
Benefit plans income/(expense) | 713,000,000 | 601,000,000 | 430,000,000 |
Material Reconciling Items [Member] | Other Postretirement Benefits for Significant Plans [Member] | |||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||
Benefit plans income/(expense) | $ 21,000,000 | $ 32,000,000 | $ (40,000,000) |
SEGMENT FINANCIAL DATA 2 (Detai
SEGMENT FINANCIAL DATA 2 (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($)Segments | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||
Product sales | $ 32,317 | $ 31,362 | $ 30,695 | ||||||||
Service sales | 8,217 | 7,940 | 7,886 | ||||||||
Net Sales | $ 10,843 | $ 10,121 | $ 10,078 | $ 9,492 | $ 9,985 | $ 9,804 | $ 9,991 | $ 9,522 | 40,534 | 39,302 | 38,581 |
Depreciation and amortization | 1,115 | 1,030 | 883 | ||||||||
Segment Reporting Segment Profit Loss | 7,690 | 7,186 | 7,256 | ||||||||
Capital expenditures | 1,031 | 1,095 | 1,073 | ||||||||
Total Assets | 59,387 | 54,146 | $ 59,387 | 54,146 | 49,316 | ||||||
Additional Information About Entitys Reportable Segments | Effective October 2017, the Company realigned the Smart Energy business, previously part of the Home and Building Technologies segment, into the Process Solutions business within the Performance Materials and Technologies segment. Effective July 2016, the Company realigned the business units comprising its Automation and Control Solutions reporting segment by forming two new reportable operating segments: Home and Building Technologies and Safety and Productivity Solutions. | ||||||||||
Number Of Operating Segments | Segments | 4 | ||||||||||
Corporate Non Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Depreciation and amortization | $ 58 | 61 | 57 | ||||||||
Segment Reporting Segment Profit Loss | (306) | (218) | (210) | ||||||||
Capital expenditures | 181 | 144 | 128 | ||||||||
Total Assets | 10,367 | 7,542 | 10,367 | 7,542 | 5,426 | ||||||
Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 40,534 | 39,302 | 38,581 | ||||||||
Depreciation and amortization | 1,115 | 1,030 | 883 | ||||||||
Operating Segments [Member] | Aerospace [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Product sales | 10,067 | 9,926 | 10,379 | ||||||||
Service sales | 4,712 | 4,825 | 4,858 | ||||||||
Net Sales | 14,779 | 14,751 | 15,237 | ||||||||
Depreciation and amortization | 279 | 275 | 267 | ||||||||
Segment Reporting Segment Profit Loss | 3,288 | 2,991 | 3,218 | ||||||||
Capital expenditures | 380 | 331 | 314 | ||||||||
Total Assets | 11,769 | 11,426 | 11,769 | 11,426 | 11,235 | ||||||
Operating Segments [Member] | Home And Building Technologies [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Product sales | 8,396 | 8,250 | 7,850 | ||||||||
Service sales | 1,381 | 1,240 | 1,176 | ||||||||
Net Sales | 9,777 | 9,490 | 9,026 | ||||||||
Depreciation and amortization | 118 | 107 | 100 | ||||||||
Segment Reporting Segment Profit Loss | 1,650 | 1,621 | 1,492 | ||||||||
Capital expenditures | 88 | 92 | 103 | ||||||||
Total Assets | 10,592 | 10,392 | 10,592 | 10,392 | 10,464 | ||||||
Operating Segments [Member] | Performance Materials And Technologies [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Product sales | 8,521 | 8,725 | 7,809 | ||||||||
Service sales | 1,818 | 1,711 | 1,801 | ||||||||
Net Sales | 10,339 | 10,436 | 9,610 | ||||||||
Depreciation and amortization | 441 | 399 | 286 | ||||||||
Segment Reporting Segment Profit Loss | 2,206 | 2,112 | 2,010 | ||||||||
Capital expenditures | 303 | 473 | 481 | ||||||||
Total Assets | 17,203 | 15,835 | 17,203 | 15,835 | 15,185 | ||||||
Operating Segments [Member] | Safety And Productivity Solutions [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Product sales | 5,333 | 4,461 | 4,657 | ||||||||
Service sales | 306 | 164 | 51 | ||||||||
Net Sales | 5,639 | 4,625 | 4,708 | ||||||||
Depreciation and amortization | 219 | 188 | 173 | ||||||||
Segment Reporting Segment Profit Loss | 852 | 680 | 746 | ||||||||
Capital expenditures | 79 | 55 | 47 | ||||||||
Total Assets | $ 9,456 | $ 8,951 | $ 9,456 | $ 8,951 | $ 7,006 |
GEOGRAPHIC AREAS FINANCIAL D104
GEOGRAPHIC AREAS FINANCIAL DATA (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Geographic Areas [Line Items] | |||||||||||
Net Sales | $ 10,843 | $ 10,121 | $ 10,078 | $ 9,492 | $ 9,985 | $ 9,804 | $ 9,991 | $ 9,522 | $ 40,534 | $ 39,302 | $ 38,581 |
Long-Lived Assets | 5,926 | 5,793 | 5,926 | 5,793 | 5,789 | ||||||
United States [Member] | |||||||||||
Geographic Areas [Line Items] | |||||||||||
Net Sales | 22,722 | 22,652 | 23,771 | ||||||||
Export sales included in United States net sales | 4,974 | 5,290 | 5,526 | ||||||||
Long-Lived Assets | 3,604 | 3,744 | 3,604 | 3,744 | 3,939 | ||||||
Europe [Member] | |||||||||||
Geographic Areas [Line Items] | |||||||||||
Net Sales | 10,400 | 9,966 | 8,674 | ||||||||
Long-Lived Assets | 927 | 741 | 927 | 741 | 746 | ||||||
Other International [Member] | |||||||||||
Geographic Areas [Line Items] | |||||||||||
Net Sales | 7,412 | 6,684 | 6,136 | ||||||||
Long-Lived Assets | $ 1,395 | $ 1,308 | $ 1,395 | $ 1,308 | $ 1,104 |
SUPPLEMENTAL CASH FLOW INFOR105
SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Non-cash investing and financing activities [Abstract] | |||
Common stock contributed to savings plans | $ 172 | $ 168 | $ 174 |
Marketable securities contributed to non-U.S. pension plans | 89 | 106 | 109 |
Payments for repositioning and other charges [Abstract] | |||
Severance and exit cost payments | (177) | (228) | (118) |
Environmental payments | (212) | (228) | (273) |
Insurance receipts for asbestos related liabilities | 27 | 43 | 63 |
Asbestos related liability payments | (266) | (212) | (209) |
Net payments for repositioning and other charges | (628) | (625) | (537) |
Interest paid, net of amounts capitalized | 306 | 329 | 310 |
Income taxes paid, net of refunds | 1,751 | 1,142 | 1,192 |
Tax Cuts and Jobs Act 2017 [Line Items] | |||
Provisional tax charge related to estimated foreign taxes on undistributed earnings | 2,294 | 76 | 315 |
Noncurrent portion of 2017 provisional tax charge | (1,642) | $ (194) | $ (57) |
Tax Cuts and Jobs Act 2017 [Member] | |||
Tax Cuts and Jobs Act 2017 [Line Items] | |||
Provisional tax charge related to estimated foreign taxes on undistributed earnings | 2,094 | ||
Noncurrent portion of 2017 provisional tax charge | $ (1,737) |
UNAUDITED QUARTERLY FINANCIA106
UNAUDITED QUARTERLY FINANCIAL INFORMATION (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Selected Quarterly Financial Information Abstract | |||||||||||
Net Sales | $ 10,843 | $ 10,121 | $ 10,078 | $ 9,492 | $ 9,985 | $ 9,804 | $ 9,991 | $ 9,522 | $ 40,534 | $ 39,302 | $ 38,581 |
Gross Profit | 3,347 | 3,248 | 3,228 | 3,136 | 3,106 | 2,901 | 3,170 | 2,975 | 12,959 | 12,152 | |
Net income (loss) attributable to Honeywell | $ (2,411) | $ 1,348 | $ 1,392 | $ 1,326 | $ 1,034 | $ 1,240 | $ 1,319 | $ 1,216 | $ 1,655 | $ 4,809 | $ 4,768 |
Earnings (loss) per common share - Basic | $ (3.18) | $ 1.77 | $ 1.82 | $ 1.74 | $ 1.36 | $ 1.62 | $ 1.73 | $ 1.58 | $ 2.17 | $ 6.29 | $ 6.11 |
Earnings (loss) per common share - assuming dilution | (3.18) | 1.75 | 1.8 | 1.71 | 1.34 | 1.6 | 1.7 | 1.56 | 2.14 | 6.2 | 6.04 |
Cash dividends per common share | 0.745 | 0.665 | 0.665 | 0.665 | 0.665 | 0.595 | 0.595 | 0.595 | 2.74 | 2.45 | $ 2.15 |
Market Price [Abstract] | |||||||||||
Market price per common share high | 155.96 | 141.75 | 135.84 | 127.25 | 118.09 | 119.88 | 117.32 | 113.23 | 155.96 | 119.88 | |
Market price per common share low | $ 142.55 | $ 133.37 | $ 122.5 | $ 116.18 | $ 105.78 | $ 111.6 | $ 111.46 | $ 96.24 | $ 116.18 | $ 96.24 |