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美國
證券交易委員會
華盛頓特區20549
表格 10-Q
__________________
按第13或15(d)條進行的季度報告
1934年證券交易所法
截至2024年6月30日季度結束 2024年9月30日
根據13或15(d)條款的過渡報告
1934年證券交易所法
從______到______的過渡期
委員會文件編號 1-8974
x2_c93457a01a02.jpg
Honeywell International Inc.
(依憑章程所載的完整登記名稱)
特拉華州22-2640650
(依據所在地或其他管轄區)
的註冊地或組織地點)
(國稅局雇主識別號碼)
識別號碼)
南米特街855號28202
夏綠蒂,北卡羅來納
(總部辦公地址)(郵政編碼)
(704)627-6200
(註冊人電話號碼,包括區號)
根據法案第12(b)條規定註冊的證券:
每個班級的標題交易符號每個註冊的交易所的名稱
普通股,面值每股 1 美元女士納斯達克股市有限責任公司
2027 年到期 3.500% 高級債券女士 27納斯達克股市有限責任公司
二零二八年到期的 2.250% 高級債券女子二十八 A納斯達克股市有限責任公司
3.375% 二零零年到期高級債券女士 30納斯達克股市有限責任公司
0.750% 於二零二零二年到期高級債券女士 32納斯達克股市有限責任公司
3.700% 至 2032 年到期高級債券女子 32 A納斯達克股市有限責任公司
4.125% 2034 年到期高級債券女士 34納斯達克股市有限責任公司
3.700% 至 2036 年到期高級債券女子 36納斯達克股市有限責任公司
以核對符號表示,公司登記者是否在過去的12個月(或公司必須提交此類報告的較短時間)內已完成1934年證券交易法第13條或第15條要求提交的所有報告,並在過去90天內受到此類提交要求的規定。  x
標示勾選符號以指示是否在過去12個月內(或Registrant被要求提交此類檔案的更短期間內)已按照Regulation S-t(本章節第232.405條款)的規定提交每個互動數據檔案。 x
請勾選是否申報人屬於大型迅速申報者、迅速申報者、非加速申報者、較小型報告公司或新興成長公司。請參閱交易所法案第120億2條中有關「大型迅速申報者」、「迅速申報者」、「較小型報告公司」和「新興成長公司」的定義。
大型加速歸檔人
x
加速歸檔人
非加速歸檔人
小型報告公司
  新興成長型企業
若為新興成長型公司,則在註冊人選擇不使用根據交易所法案第13(a)條提供的適用於符合任何新的或修訂的財務會計標準的延長過渡期,請勾選。
以勾選方式表示,是否已註明登記者是否為殼公司(如交易所法規120億2所定義)。是 x
在2023和2024年6月30日結束的三個和六個月中,有資產減損處理記錄。更新計算公司進行中的研究和開發資產(“IPR&D”)公平價值所使用的關鍵假設可能會改變公司未來短期內回收IPR&D資產的帶值估計。 650,247,380 股份 截至2024年9月30日,普通股的持股數為。



目 錄
第I部分
項目 1
合併基本報表(未經審核)- 年月日, 2023年12月31日
綜合現金流量表(未經審核)- 2024年9月30日止九個月,2023
項目 2
項目 3
項目 4
第二部分
項目 1
ITEm 1A
項目 2
項目 4
ITEm 5
項目 6
 



目 錄
有關前瞻性聲明的警語
我們在《管理層討論及分析財務狀況和業務運作結果》部分以及本報告其他部分(包括第二部分,第I-A條風險因素)中描述了許多影響我們業務和未來業績的趨勢和其他因素。此等討論內容涉及屬於1934年證券交易法(修訂後的《交易法》)第21E條意義下的前瞻性陳述。前瞻性陳述指的是管理層打算、期望、預計、相信或預期在未來可能發生的活動、事件或發展,並包括與拟議將公司「先進材料業務」拆分為獨立上市公司相關的陳述。這些陳述是基於管理層根據過往經驗和趨勢、當前經濟和行業狀況、預期未來發展以及其他相關因素所做的假設和評估,其中許多是難以預測且超出我們控制範圍之外的。它們並非未來表現的保證,實際結果、發展和業務決策可能與我們前瞻性陳述所設想的差異顯著。我們不會承諾更新或修改我們的前瞻性陳述,除非適用的證券法有要求。我們的前瞻性陳述也受到實質性風險和不確定性的影響,包括持續的宏觀經濟和地緣政治風險,如GDP增長率下降或經濟衰退、供應鏈中斷、資本市場波動、通貨膨脹以及某些區域性衝突,這些風險可能影響我們短期和長期的表現。此外,無法保證本10-Q表格中所描述的任何計劃、倡議、預期、承諾、期望或前景是否能夠實現。應將這些前瞻性陳述與包含於本報告及我們向證券交易委員會(SEC)提交的其他申報資料,包括但不限於風險因素以及本報告中《管理層討論及分析財務狀況和業務運作結果》中描述的趨勢和其他因素的信息一併考慮。本文所述的任何前瞻計劃並非最終版本,可能隨時進行修改或放棄。
1    Honeywell International Inc.

目錄
關於霍尼韋爾
霍尼韋爾國際公司(以下簡稱霍尼韋爾,我們,我們,我們或該公司)是一家綜合運營公司,爲世界各地的廣泛行業和地理區域提供服務。 我們的業務與三大強勁的超級趨勢 - 自動化,航空的未來和能源轉型 - 保持一致,在霍尼韋爾加速器操作系統和霍尼韋爾連接企業集成軟件平台的支撐下。 我們的解決方案組合獨特地定位於將實體產品與軟件相結合,爲全球客戶提供航空產品和服務,爲企業提供節能產品和解決方案,特種化學品,電子和高級材料,煉油和石油與天然氣的工藝技術,以及建築和工業的生產力,感知力,安全和安全技術。 我們的產品和解決方案使世界變得更安全,更舒適,更具生產力,提升了全球人民的生活質量。 霍尼韋爾品牌可追溯至1906年,公司於1985年在特拉華州成立。
我們的年度10-k表格,季度10-Q表格,8-k表格以及這些報告的任何修訂版本,均可以免費在我們的投資者關係網站(investor.honeywell.com)的"財務信息"(請參閱SEC備案)欄目中獲得,這些報告在提交給或提供給SEC後,立即可供獲取。霍尼韋爾利用我們的投資者關係網站,以及在我們的主要霍尼韋爾網站(honeywell.com)的"新聞與媒體"欄目下的新聞稿件,作爲披露可能對我們的投資者有興趣或具有重大意義的信息,並且用於遵守根據FD法規的披露義務。因此,投資者應定期查看我們的投資者關係網站和霍尼韋爾新聞源,除了關注我們的新聞稿件、SEC備案、公開電話會議、網絡研討會和社交媒體外。包括在我們的網站上或通過我們的網站可訪問的任何報告在內的信息,均不是本季度10-Q表格或我們向SEC提交的任何其他報告或文件的一部分,也不被引入或納入其中。在本10-Q表格中對我們的網站的任何提及,僅屬於不活躍的文本參考。
2    Honeywell International Inc.

目錄
第一部分 財務信息
2024年9月30日的基本報表及相關附註,應與2023年12月31日止的基本報表一起閱讀,該基本報表包含在公司2023年度10-K表格中。
基本報表和補充數據
HONEYWELL INTERNATIONAL INC.
綜合營業報表
(未經審計)
 截至9月30日的三個月截至9月30日的九個月
2024202320242023
 (金額單位爲百萬美元,每股金額除外)
產品銷售$6,590 $6,294 $19,330 $19,045 
服務銷售額3,138 2,918 9,080 8,177 
淨銷售額9,728 9,212 28,410 27,222 
成本、費用和其他
銷售產品成本4,166 4,090 12,448 12,291 
(t)1,813 1,580 4,970 4,503 
產品和服務銷售總成本5,979 5,670 17,418 16,794 
研發費用368 364 1,110 1,096 
銷售,總務及管理費用1,398 1,252 4,061 3,831 
出售資產減值125  125  
其他(收益)費用(263)(247)(740)(715)
利息及其他財務支出297 206 767 563 
總成本、費用及其他7,904 7,245 22,741 21,569 
稅前收入1,824 1,967 5,669 5,653 
所得稅費409 452 1,219 1,229 
淨收入1,415 1,515 4,450 4,424 
扣除非控制權益所得的淨利潤2 1 30 29 
歸屬於霍尼韋爾的淨利潤$1,413 $1,514 $4,420 $4,395 
普通股每股基本收益$2.17 $2.29 $6.79 $6.61 
普通股每股攤薄收益$2.16 $2.27 $6.75 $6.56 

合併基本報表附註是本報表的一個組成部分。

3    Honeywell International Inc.

目錄
HONEYWELL INTERNATIONAL INC.
綜合利潤表
(未經審計)
 截至9月30日的三個月截至9月30日的九個月
2024202320242023
 (金額單位:百萬美元)
淨收入$1,415 $1,515 $4,450 $4,424 
其他綜合收益(虧損),淨額
匯率期貨調整(288)59 (229)(76)
養老金和其他離退休福利調整(6)(14)(16)(38)
可供出售投資公允價值變動  (1)3 
在其他全面收入(損失)中確認的現金流量套期交易(15)29 (11)59 
減:重新分類調整,包括在淨利潤中的收益(損失)(1)17 15 30 
現金流量套期保值工具公允價值變動(14)12 (26)29 
其他綜合收益(虧損),淨額(308)57 (272)(82)
綜合收益1,107 1,572 4,178 4,342 
歸屬於非控股權益的綜合收益(虧損)23 (2)27 23 
歸屬於霍尼韋爾的綜合收益$1,084 $1,574 $4,151 $4,319 

合併基本報表附註是本報表的一部分。

4    Honeywell International Inc.

目錄
HONEYWELL INTERNATIONAL INC.
合併資產負債表
(未經審計)
 2024年9月30日2023年12月31日
 (金額單位:百萬美元)
資產 
流動資產  
現金及現金等價物$10,644 $7,925 
短期投資275 170 
應收賬款,減免金額爲319 和 $323 的壞賬準備
7,884 7,530 
存貨6,338 6,178 
待售資產1,518  
其他資產1,505 1,699 
總流動資產28,164 23,502 
投資和長期應收款項1,463 939 
不動產、廠房和設備淨值5,822 5,660 
商譽21,270 18,049 
其他無形資產淨額5,749 3,231 
石棉相關責任的保險索賠160 170 
延遲所得稅374 392 
其他10,490 9,582 
總資產$73,492 $61,525 
負債
流動負債
應付賬款$6,640 $6,849 
商業票據和其他短期借款3,135 2,085 
長期債務的流動部分1,760 1,796 
應計負債7,566 7,809 
待售負債433  
流動負債合計19,534 18,539 
長期債務25,934 16,562 
延遲所得稅2,077 2,094 
除養老金外的福利義務122 134 
石棉相關負債1,422 1,490 
其他負債6,422 6,265 
可贖回的非控制股份7 7 
股東權益
股本-普通股發行958 958 
—額外資本公積金9,554 9,062 
按成本覈算的庫藏普通股(38,989)(38,008)
累計其他綜合收益(虧損)(4,404)(4,135)
保留盈餘50,287 47,979 
霍尼韋爾股東權益總額17,406 15,856 
非控股權益568 578 
總股東權益17,974 16,434 
負債合計、可贖回的非控股權益和股東權益$73,492 $61,525 

合併基本報表附註是本報表的一個組成部分。

5    Honeywell International Inc.

目錄
HONEYWELL INTERNATIONAL INC.
現金流量表合併報表
(未經審計)
 截至9月30日的九個月
 20242023
 (百萬美元)
來自經營活動的現金流  
淨收入$4,450 $4,424 
減去:歸屬於非控股權益的淨收益
30 29 
歸屬於霍尼韋爾的淨收益4,420 4,395 
調整將歸屬於霍尼韋爾的淨收入與運營活動提供的(用於)的淨現金進行對賬
折舊500 493 
攤銷457 382 
待售資產的減值125  
重新定位和其他費用189 331 
重新定位和其他費用的淨付款額(329)(323)
NARCO 收購付款 (1,325)
養老金和其他退休後收入(443)(410)
養老金和其他退休後補助金(25)(25)
股票補償費用153 148 
遞延所得稅(46)168 
其他(641)(554)
扣除收購和剝離影響的資產和負債變動
應收賬款(218)(344)
庫存(233)(448)
其他流動資產195 141 
應付賬款(142)96 
應計負債(146)(340)
經營活動提供的淨現金3,816 2,385 
來自投資活動的現金流
資本支出(771)(675)
處置不動產、廠房和設備的收益 21 
投資增加(698)(404)
投資減少564 808 
衍生合約結算的收益(付款)(250)212 
爲收購支付的現金,扣除獲得的現金(7,047)(716)
用於投資活動的淨現金(8,202)(754)
來自融資活動的現金流
發行商業票據和其他短期借款的收益9,516 10,727 
商業票據和其他短期借款的支付(8,477)(11,484)
發行普通股的收益349 151 
發行長期債務的收益10,407 2,985 
長期債務的支付(1,381)(1,410)
回購普通股(1,200)(2,187)
已支付的現金分紅(2,161)(2,144)
其他5 (65)
由(用於)融資活動提供的淨現金7,058 (3,427)
外匯匯率變動對現金和現金等價物的影響47 (61)
現金和現金等價物的淨增加(減少)
2,719 (1,857)
期初的現金和現金等價物7,925 9,627 
期末的現金和現金等價物$10,644 $7,770 

合併基本報表附註是本報表的一個組成部分。

6    Honeywell International Inc.

目錄
HONEYWELL INTERNATIONAL INC.
股東權益變動表
(未經審計)
 截至9月30日的三個月截至9月30日的九個月
2024202320242023
股份$股份$股份$股份$
 (以百萬爲單位,每股數據除外)
普通股,面值957.6 958 957.6 958 957.6 958 957.6 958 
額外實收資本
期初餘額9,495 8,866 9,062 8,564 
用於員工儲蓄和期權計劃14  303 193 
股票補償費用45 39 153 148 
Quantinuum貢獻的影響  36  
期末餘額9,554 8,905 9,554 8,905 
自家保管的股票
期初餘額(307.9)(39,007)(293.6)(35,510)(305.8)(38,008)(290.0)(34,443)
收購股票或回購普通股  (5.3)(1,011)(6.1)(1,200)(11.3)(2,187)
發行給員工儲蓄和期權計劃0.5 18 0.6 14 4.5 219 3.0 123 
期末餘額(307.4)(38,989)(298.3)(36,507)(307.4)(38,989)(298.3)(36,507)
保留盈餘
期初餘額49,576 46,596 47,979 45,093 
歸屬於霍尼韋爾的淨利潤1,413 1,514 4,420 4,395 
普通股股息(702)(684)(2,112)(2,062)
期末餘額50,287 47,426 50,287 47,426 
累計其他綜合收益(虧損)
期初餘額(4,075)(3,611)(4,135)(3,475)
匯率期貨調整(309)62 (226)(70)
養老金和其他離退休福利調整(6)(14)(16)(38)
可供出售投資公允價值變動  (1)3 
現金流量套期保值工具公允價值變動(14)12 (26)29 
期末餘額(4,404)(3,551)(4,404)(3,551)
非控股權益
期初餘額563 595 578 622 
非控制權益淨收益2 1 30 29 
匯率期貨調整21 (3)(3)(6)
分紅派息(18)(49)(66)(101)
非控股權益持有人的投入收益  29  
期末餘額568 544 568 544 
股東權益總額650.2 17,974 659.3 17,775 650.2 17,974 659.3 17,775 
每股普通股的現金股息$1.08 $1.03 $3.24 $3.09 

合併基本報表附註是本報表的一個組成部分。

7    Honeywell International Inc.

目錄
HONEYWELL INTERNATIONAL INC.
基本報表附註
(未經審計)
(表中金額單位爲百萬美元,除每股金額外)
注1。提供的基礎
在管理層意見下,附註的未經審計的合併財務報表反映了爲呈現霍尼韋爾國際公司及其合併子公司(霍尼韋爾或公司)所述期間的財務狀況、經營業績、現金流量和股東權益所需做出的所有調整。中期經營業績和現金流量不一定代表整個年度。
霍尼韋爾使用日曆約定報告其季度財務信息;第一、第二和第三季度的結束日期分別爲3月31日、6月30日和9月30日。霍尼韋爾的做法是使用預先確定的財務日曆來確定實際的季度結賬日期,這要求霍尼韋爾的業務在週六結賬,以最大程度地減少季度結賬對公司業務流程可能造成的干擾效果。這一做法的影響通常對任何季度的報告結果並不重要,且只存在於報告年度內。如果實際結賬日期的差異對季度或年度截至日期的年度比較具有重要影響,霍尼韋爾將提供適當披露。截至2024年9月30日和2023年的三個和九個月的霍尼韋爾實際結賬日期分別爲2024年9月28日和2023年9月30日。
注 2. 重要會計政策摘要
公司的會計政策詳見《公司2023年年度報告Form 10-k中基本財務報表附註一會計政策摘要》。本公司在此包含了對這些政策的部分更新。
再分類
爲符合當前年度報告的要求,某些上年度金額已作重新分類。
在2024年第一季度,公司重新調整了部分業務部門,如《注18分段財務數據》所示,這影響了其可報告分部的構成。公司重編歷史期間以反映分段呈現的變化。
供應鏈融資
供應鏈融資計劃相關的未決金額已包含在合併資產負債表的應付賬款中。截至2024年9月30日和2023年12月31日,應付賬款分別約爲$1,0341百萬美元和1,112百萬。這些計劃的影響對公司整體流動性不重要。
近期會計準則
公司考慮了美國財務會計準則委員會(FASB)發佈的所有會計準則更新(ASUs)的適用性和影響。未在下文中列出的ASUs已經評估,確定對公司的合併財務報表要麼不適用,要麼預計影響較小。
2023年12月,FASB發佈了ASU 2023-09,所得稅(主題740):改善所得稅披露,要求對所得稅披露進行更細分。新標準要求披露有關所得稅率調解和按司法管轄區劃分的所得稅支出的額外信息。此ASU應該應用於2024年12月15日後開始的財政年度開始後,並允許追溯應用。公司目前正在評估該指南對公司合併財務報表的影響。
2023年11月,FASB發佈了ASU 2023-07,分部報告(主題 280):報告服務部門(主題 280)變更披露方式,通過升級對意義重大的分部費用的披露來改進分部報告披露要求。該準則適用於 2023 年 12 月 15 日之後的財年和 2024 年 12 月 15 日之後的財年間隔期。該準則必須適用於財務報表中呈現的所有期間的追溯。該公司目前正在評估該標準對合並財務報表的影響。新標準要求公司加強有關部門費用的披露。新標準要求披露公司的首席經營決策者(CODM),首席運營決策者爲決策所使用的重要部門費用的擴展遞增單項披露,以及在季度基礎上包括以往僅在年度披露的部門要求。根據本ASU,適用於2023年12月15日後開始的財政年度,並適用於2024年12月15日後開始的財政年度內的中期時段。允許提前採納。公司目前正在評估此指引對公司的綜合財務報表可能產生的影響。
8    霍尼韋爾國際公司

目錄
HONEYWELL INTERNATIONAL INC.
基本報表附註
(未經審計)
(表中金額單位爲百萬美元,除每股金額外)
2022年9月,FASB發佈了ASU 2022-04, 基本報表——供應商融資計劃(主題405):披露供應商融資計劃義務爲增強供應商融資計劃的透明度。新標準要求每年披露計劃的關鍵條款,說明在基本報表中計劃下未償還金額的呈現位置,該金額的變動情況,並披露每個期間末未償還金額的情況。該指引不影響對供應商融資計劃的確認、計量或基本報表呈現。該會計準則2023年1月1日生效,除了計劃變動情況的披露,該披露於2024年1月1日對年度披露生效。公司於2023年1月1日採納了該指引,例外是2024年1月1日採用的計劃變動情況披露。該標準的採納對公司的合併基本報表沒有實質影響。
2020年3月,FASB發佈了ASU 2020-04,參考利率改革(主題848):促進參考利率改革對財務報告的影響,併發布了對初始指南的後續修訂(總稱爲主題848)。主題848爲合同修改和與預計將取消的參考利率有關的某些避險關係提供了可選指導。在轉換爲替代參考利率時,公司將採用主題848。公司預計採用主題848不會對簡明合併財務報表產生重大影響。 參考利率改革(主題848):有關參考利率改革在財務報告中的作用的便利(「ASU No. 2020-04」)。,提供基本會計準則的可選權宜之計和例外情況,適用於因從預計將停用的參考利率過渡至備選參考利率而受到影響的合同、套期保值關係及其他交易。2021年1月,FASB發佈了ASU 2021-01, 參考利率改革(主題848):範疇。,以擴大該指南的適用範圍,包括衍生品。該指南自發布之日起生效,並可前瞻性適用於在2022年12月31日之前進行的合同修改和套期保值關係。2022年12月,FASB發佈了ASU 2022-06, 參考利率改革(主題848):推遲主題848的日落日期,延長實體可以利用ASU 2020-04下的參考利率改革減免指南的時間期限,從2022年12月31日延長至2024年12月31日。 公司將在過渡期內對受影響的交易應用該指南。 採納該標準對公司的合併基本報表沒有實質影響。
注 3. 收購、出售和資產以及待售的資產和負債
2023年8月10日,公司與日出合併子公司和Capri Holdings 有限公司(Capri)簽訂了一份合併協議(「合併協議」)。根據合併協議的條款,Tapestry同意以現金收購Capri的普通股份,每股價值200美元,不計利息,應按照合併協議提供的任何所需的稅收代扣。企業價值預計約爲100億美元,交易預計將於2024年完成(「Capri收購」)。2023年10月25日,在Capri股東特別會議上,Capri的股東批准了合併協議和其中涉及的交易。
空氣產品的液化天然氣工藝技術和設備業務
2024年9月30日,公司收購了 100Air Products的液化天然氣工藝技術和設備業務(LNG)%的股權,加強了公司的能源轉型投資組合,總對價爲$1,837百萬美元,扣除取得的現金。該業務將納入能源和可持續性解決方案報告業務板塊。 以下表格總結了收購當日確定的可識別資產的公允價值及承擔的負債。這些餘額未包含在截至2024年9月30日的合併資產負債表中,因爲收購日期發生在截至2024年12月31日的公司財政期間的三個月內。
流動資產$74 
無形資產931 
其他非流動資產68 
流動負債(100)
非流動負債(2)
已獲得淨資產971 
商譽866 
購買價格$1,837 
天然氣可識別無形資產主要包括客戶關係和科技,其攤銷期將在其預計壽命範圍內,使用加速攤銷方法,攤銷時間爲 420 年。商譽可以用於稅務目的。以上餘額將於2024年12月31日的合併資產負債表中包含。截至2024年9月30日,購買覈算將受最終調整,主要涉及無形資產的估值,分配給商譽的金額,流動資本調整和稅收餘額。
9    Honeywell International Inc.

目錄
HONEYWELL INTERNATIONAL INC.
基本報表附註
(未經審計)
(表中金額單位爲百萬美元,除每股金額外)
CAES系統控股有限責任公司
2024年8月30日,公司收購了 100% 的 CAES Systems Holdings LLC(CAES)的股權,通過高可靠性的射頻技術增強了公司的軍工股和空間組合,總 contr 考慮金額爲 $1,930 百萬美元,淨額減去現金收購。該業務包含在航天技術業務段內。 以下表格總結了作爲2024年9月30日財務報表內明確標識的資產和負債的初步判斷的公允價值:
流動資產$332 
無形資產1,205 
其他非流動資產185 
流動負債(121)
非流動負債(167)
已獲得淨資產1,434 
商譽539 
購買價格$1,973 
CAES可識別無形資產主要包括客戶關係和商標,其預計有用生命週期範圍從幾年至。 215 年,採用直線和加速攤銷方法。商譽不可用於稅務目的。截至2024年9月30日,對CAES的購買會計進行最終調整,主要是針對無形資產的估值,分配給商譽的金額,營運資本調整以及稅收平衡。
Civitanavi Systems S.p.A.
2024年8月19日,公司完成了對航空航天、國防和工業市場定位導航和定時技術的領導者Civitanavi Systems S.p.A. 的收購,總對價爲美元200百萬,扣除收購的現金。該業務包含在航空航天技術應報告的業務板塊中。截至2024年9月30日,向Civitanavi Systems S.p.A. 收購的資產和負債已包含在合併資產負債表中,包括美元75百萬的無形資產和美元107百萬的商譽,出於稅收目的不可扣除。自2024年9月30日起,收購會計有待最終調整,主要針對無形資產的估值、商譽分配金額和稅收餘額。
開利全球公司的全球貨幣接入解決方案業務
2024年6月3日,公司收購了 100Carrier Global Corporation的全球業務部門Global Access Solutions業務(Access Solutions),這是一家在先進門禁與安防解決方案、電子鎖系統和非接觸式移動鑰匙解決方案方面處於創新領先地位的全球公司,總代價爲$4,917百萬,扣除已收到的現金。該業務納入建築自動化報告業務部門。 以下表格總結了截至2024年9月30日合併資產負債表中納入的獲取的可識別資產的初步公允價值及已承擔的負債:
流動資產$244 
無形資產2,050 
其他非流動資產20 
流動負債(135)
非流動負債(7)
已獲得淨資產2,172 
商譽2,826 
購買價格$4,998 
憑藉科技、商譽和商標構成的準確無形資產主要包括客戶關係,其攤銷期限從年開始,採用直線和加速攤銷方法。大部分商譽可用於稅務抵扣。截至2024年9月30日,針對Access Solutions的購置會計覈算將被最終調整,主要是針對無形資產估值、商譽分配金額、運營資本調整和稅務結餘。 1020 年,採用直線和加速攤銷方法。大部分商譽可用於稅務抵扣。截至2024年9月30日,針對Access Solutions的購置會計覈算將被最終調整,主要是針對無形資產估值、商譽分配金額、運營資本調整和稅務結餘。
10    Honeywell International Inc.

目錄
HONEYWELL INTERNATIONAL INC.
基本報表附註
(未經審計)
(表中金額單位爲百萬美元,除每股金額外)
SCADAfence
2023年8月25日,公司收購了 100%的SCADAfence傑度轉讓在操作技術和物聯網網絡安全解決方案領域的股權,監控大規模網絡,總考慮費用爲$52百萬美元,扣除已收到的現金。該業務包含在工業自動化可報告業務板塊中。2024年9月30日公司資產負債表中包含了與SCADAfence收購相關的資產和負債,其中包括價值爲$17百萬美元的無形資產和$42百萬美元的商譽,該商譽不適用於稅務目的。公司在2024年第三季度完成了對與SCADAfence收購的所有資產和負債的公允價值評估。
壓縮機控制公司
2023年6月30日,公司收購了 100Compressor Controls Corporation的流通股權的%;該公司是一家總部位於美國的渦輪機械服務和控制公司,總現金交易額爲$673百萬美元,扣除已獲得現金。該業務納入工業自動化報告業務板塊。所收購的Compressor Controls Corporation的資產和負債納入截至2024年9月30日的合併資產負債表,其中包括282百萬美元的無形資產和分配給商譽的351百萬美元,可用於稅務目的。可辨認的無形資產主要包括預計使用超額收益攤銷法攤銷的客戶關係,在 15 年內;公司於2024年第二季度完成了對與Compressor Controls Corporation收購的所有資產和負債的公允價值評估。
 百萬美元,加上慣例的調整,購買了Good Health和R.W. Garcia品牌,Lincolnton,NC和Lititz,PA製造設施和某些相關資產,並承擔了公司的拉斯維加斯,NV工廠租賃和製造業務(「Good Health和R.W. Garcia Sale」)。
截至2024年9月30日和2023年,已完成了重要的剝離。 重要的剝離單獨或合計完成。
11    Honeywell International Inc.

目錄
HONEYWELL INTERNATIONAL INC.
基本報表附註
(未經審計)
(表中金額單位爲百萬美元,除每股金額外)
資產和負債待售
2024年第三季度,公司對個人防護裝備業務的資產和負債進行了總結,該業務是工業自動化報告業務部門中感測與安全技術業務單元的一部分,並且按照2024年9月30日的標準,滿足了待售標準;因此,公司將相關業務的資產和負債列示爲2024年9月30日的合併資產負債表中待售資產。處置組合由相關資產和負債組成,按照賬面價值或低於公允價值扣除賣出成本的較低值進行計量。當資產被分類爲待售時,不會記錄折舊和攤銷費用。處置組中任何資產(包括商譽),但不在ASC 360-10範圍內的部分,在衡量待售組合的公允價值前,將按照相關指導標準進行減值測試,扣除賣出成本。
在將業務的資產和負債分類爲待售後,公司進行了評估,以評估待售資產的賬面價值的可收回性。公司認可了一項估值準備金$125百萬,於2024年第三季度,將處置組織減記至公平價值減去銷售成本。賬面價值基於估計的使用,並根據截至2024年9月30日的銷售封閉日期前的未來發展而變化,並且根據出售實現的實際金額,可能與記錄的金額不同。
以下表格總結了在合併資產負債表中被分類爲待售資產和負債:
2024年9月30日
待售資產
應收賬款
$190 
存貨
201 
其他資產
50 
投資和長期應收款項
4 
不動產、廠房和設備淨值
159 
商譽
411 
其他無形資產淨額
608 
其他
20 
資產處於待售狀態的減值準備1
(125)
待售資產總額
$1,518 
待售負債
應付賬款
$174 
應計負債
115 
延遲所得稅
120 
除養老金外的福利義務
11 
其他負債
13 
待售的總負債
$433 
1
資產減值準備主要與外匯翻譯損失有關,預計在銷售結束時從累積其他全面損失中重新分類出來。
12    Honeywell International Inc.

目錄
HONEYWELL INTERNATIONAL INC.
基本報表附註
(未經審計)
(表中金額單位爲百萬美元,除每股金額外)
百分之營業收入確認和與客戶的合同
公司提供廣泛的產品和服務,包括軟件和技術,銷售給多個終端市場的各種客戶。 請參閱下面按報告業務部門分解的營業收入表格和相關討論,了解詳細信息:
 截至9月30日的三個月截至9月30日的九個月
2024202320242023
航空航天技術
商用航空原始設備$617 $563 $1,959 $1,711 
商用航空售後市場1,758 1,634 5,215 4,590 
軍工股和太空1,537 1,302 4,298 3,650 
淨航空技術銷售3,912 3,499 11,472 9,951 
Industrial Automation
感知和安全技術452 498 1,368 1,509 
生產力解決方案和服務289 304 909 994 
工藝解決方案1,522 1,493 4,527 4,460 
倉儲和工作流程解決方案238 335 681 1,197 
工業自動化淨銷售額2,501 2,630 7,485 8,160 
建築自動化
產品1,059 894 2,780 2,720 
建築解決方案686 636 1,962 1,807 
淨建築自動化銷售1,745 1,530 4,742 4,527 
能源和可持續解決方案
UOP654 668 1,830 1,856 
愛文思控股909 883 2,862 2,723 
淨能源和可持續解決方案銷售1,563 1,551 4,692 4,579 
企業和其他所有板塊7 2 19 5 
淨銷售額$9,728 $9,212 $28,410 $27,222 
2024年4月,公司在工業自動化報告業務部門內重新劃分了一些業務部門。 燃氣檢測業務從感應和安全技術業務部門轉移到工藝解決方案業務部門,以與工藝測量控制業務保持一致。 公司重新調整了歷史期間以反映這一重新調整。
航空航天技術 — 一家飛機產品、軟件和服務的全球供應商,其銷售對象是原始設備製造商 (OEM) 和各種終端市場的其他客戶,包括航空運輸、區域、商用和通用航空飛機、航空公司、飛機運營商以及國防和太空承包商。Aerospace Technologies的產品和服務包括輔助動力裝置、推進發動機、環境控制系統、集成航空電子設備、無線連接服務、電力系統、發動機控制、飛行安全、通信、導航硬件、數據和軟件應用程序、雷達和監視系統、飛機照明、管理和技術服務、先進的系統和儀器、衛星和空間組件、飛機輪子和制動器以及熱系統。Aerospace Technologies還提供備件、維修、大修和維護服務(主要向飛機運營商),並向其他方出售許可證或知識產權。霍尼韋爾Forge解決方案使客戶能夠將數據轉化爲預測性維護和預測分析,從而改善機隊管理並提高飛行運營效率。
13    Honeywell International Inc.

目錄
HONEYWELL INTERNATIONAL INC.
基本報表附註
(未經審計)
(表中金額單位爲百萬美元,除每股金額外)
工業自動化 全球領先的工業自動化解決方案提供商,爲石油和天然氣、生命科學、金屬與礦業、倉儲與物流領域的客戶提供智能、可持續和安全的運營。工業自動化部署基於結果的解決方案,以提高資產利用率;改善運營效率和勞動生產率;減少能源消耗,降低碳排放;並增強關鍵基礎設施和運營資產的網絡安全。工業自動化產品包括自動化控制和儀器產品與服務;智能能源產品;具有各種定製傳感器和服務的感應技術;氣體檢測技術和個人防護設備;以及面向製造、配送和履行操作的系統設計、先進的自動化設備、軟件和分析。這些產品和服務與公司領先的工業物聯網平台霍尼韋爾 Forge 中的專有機器學習和人工智能算法相結合,通過數字化實現產品和項目。
建築自動化 全球提供產品、軟件、解決方案和技術的供應商,使建築業主和居住者能夠確保其設施安全、能源高效、可持續和高效。建築自動化產品和服務包括用於建築控制和優化的先進軟件應用程序;用於能源管理的傳感器、開關、控制系統和儀器;門禁系統;視頻監控;消防產品;以及系統的安裝、維護和升級。霍尼韋爾Forge解決方案使客戶能夠數字化管理建築,連接來自不同資產的數據,實現智能維護,改善建築性能,甚至保護免受即將到來的安全威脅。
能源和可持續解決方案 一家全球領先的行業板塊、工藝和許可技術提供商,結合材料科學能力和創新化學品,提供專注的解決方案,有助於促進全球能源轉型。可報告的業務板塊由UOP和愛文思控股兩個業務部門組成。UOP業務通過工藝技術解決方案、產品(包括催化劑和吸附劑)、設備和售後服務,在多個領域爲客戶提供可持續航空燃料、石化和煉油技術,以及碳管理解決方案。愛文思控股提供Solstice低全球變暖潛勢製冷和供暖解決方案、用於高端防護裝甲和醫療應用的Spectra纖維,以及領先的半導體材料。霍尼韋爾Forge解決方案通過提供連接性、數據集成和軟件解決方案,滿足客戶資產生產力和效率需求,生成他們運營的整體視圖。
公司和所有其他板塊 公司和所有其他板塊包括霍尼韋爾對Quantinuum的多數持股投資帶來的營業收入。通過Quantinuum,霍尼韋爾提供一系列完全集成的量子計算硬件和軟件解決方案服務。
有關每個可報告業務部門的按產品和服務銷售進行分項的摘要,請參閱附註18段營業額數據。
公司確認來源於與客戶簽訂的合同中滿足的履行義務產生的營業收入,無論是一次性滿足還是逐步滿足。 根據確認時間劃分的公司營業收入如下:
截至9月30日的三個月截至9月30日的九個月
2024202320242023
產品,傳輸的時間點56 %57 %57 %58 %
產品,隨着時間的推移而轉移12 11 11 12 
產品淨銷售額68 68 68 70 
服務,傳輸時間點3 12 4 10 
服務,隨着時間的推移而轉移29 20 28 20 
淨服務銷售額32 32 32 30 
淨銷售額100 %100 %100 %100 %
CONTRACT BALANCES
The Company tracks progress on satisfying performance obligations under contracts with customers. The related billings and cash collections are recorded in the Consolidated Balance Sheet in Accounts receivable—net and Other assets (unbilled receivables (contract assets) and billed receivables), and Accrued liabilities and Other liabilities (customer advances and deposits (contract liabilities)). Unbilled receivables arise when the timing of cash collected from customers differs from the timing of revenue recognition, such as when contract provisions require specific milestones to be met before a customer can be billed. Contract assets are recognized when the revenue associated with the contract is recognized prior to billing and derecognized when billed in accordance with the terms of the contract. Contract liabilities are recorded when customers remit contractual cash payments in advance of the Company satisfying performance obligations under contractual arrangements, including those with performance obligations to be satisfied over a period of time. Contract liabilities are derecognized when revenue is recorded, either when a milestone is met triggering the contractual right to bill or when the performance obligation is satisfied.
14    Honeywell International Inc.

TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(Dollars in tables in millions, except per share amounts)
Contract balances are classified as assets or liabilities on a contract-by-contract basis at the end of each reporting period.
The following table summarizes the Company's contract assets and liabilities balances:
 20242023
Contract assets—January 1$2,013 $2,294 
Contract assets—September 301
2,263 2,418 
Change in contract assets—increase (decrease)$250 $124 
Contract liabilities—January 1$(4,326)$(4,583)
Contract liabilities—September 302
(3,928)(4,081)
Change in contract liabilities—decrease (increase)$398 $502 
Net change$648 $626 
1
As of September 30, 2024, contract assets excludes $4 million that are included in Assets held for sale in the Consolidated Balance Sheet. Refer to Note 3.
2
As of September 30, 2024, contract liabilities excludes $18 million that are included in Liabilities held for sale in the Consolidated Balance Sheet. Refer to Note 3.
For the three and nine months ended September 30, 2024, the Company recognized revenue of $454 million and $1,941 million, respectively, that was previously included in the beginning balance of contract liabilities. For the three and nine months ended September 30, 2023, the Company recognized revenue of $333 million and $1,814 million, respectively, that was previously included in the beginning balance of contract liabilities.
Contract assets included $2,183 million and $1,949 million of unbilled balances under long-term contracts as of September 30, 2024, and December 31, 2023, respectively. These amounts are billed in accordance with the terms of customer contracts to which they relate.
When contracts are modified to account for changes in contract specifications and requirements, the Company considers whether the modification either creates new or changes the existing enforceable rights and obligations. Contract modifications for goods or services and not distinct from the existing contract, due to the significant integration with the original good or service provided, are accounted for as if they were part of that existing contract. The effect of a contract modification on the transaction price and the Company's measure of progress for the performance obligation to which it relates, is recognized as an adjustment to revenue (either as an increase in or a reduction of revenue) on a cumulative catch-up basis. When the modifications include additional performance obligations that are distinct and at relative stand-alone selling price, they are accounted for as a new contract and performance obligation, which are recognized prospectively.
PERFORMANCE OBLIGATIONS
A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is defined as the unit of account. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. When contracts with customers require highly complex integration or manufacturing services not separately identifiable from other promises in the contracts and, therefore, are not distinct, the entire contract is accounted for as a single performance obligation. In situations when the Company's contracts include distinct goods or services that are substantially the same and have the same pattern of transfer to the customer over time, they are recognized as a series of distinct goods or services. For any contracts with multiple performance obligations, the Company allocates the contract’s transaction price to each performance obligation based on the estimated relative stand-alone selling price of each distinct good or service in the contract. For product sales, each product sold to a customer typically represents a distinct performance obligation. In such cases, the observable stand-alone sales are used to determine the stand-alone selling price.
Performance obligations are satisfied as of a point in time or over time. Performance obligations are supported by contracts with customers, providing a framework for the nature of the distinct goods, services, or bundle of goods and services. The timing of satisfying the performance obligation is typically indicated by the terms of the contract.
15    Honeywell International Inc.

TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(Dollars in tables in millions, except per share amounts)
The following table outlines the Company's remaining performance obligations disaggregated by reportable business segment:
 September 30, 2024
Aerospace Technologies$15,109 
Industrial Automation5,677 
Building Automation8,536 
Energy and Sustainability Solutions4,988 
Corporate and All Other1
27 
Total performance obligations$34,337 
1
The remaining performance obligations within Corporate and All Other relate to the Quantinuum business.
Performance obligations recognized as of September 30, 2024, will be satisfied over the course of future periods. The Company's disclosure of the timing for satisfying the performance obligation is based on the requirements of contracts with customers. However, from time to time, these contracts may be subject to modifications, impacting the timing of satisfying the performance obligations. Performance obligations expected to be satisfied within one year and greater than one year are 55% and 45%, respectively.
The timing of satisfaction of the Company's performance obligations does not significantly vary from the typical timing of payment. Typical payment terms of the Company's fixed price over time contracts include progress payments based on specified events or milestones or based on project progress. For some contracts, the Company may be entitled to receive an advance payment.
The Company applied the practical expedient for certain revenue streams to exclude the value of remaining performance obligations for (i) contracts with an original expected term of one year or less or (ii) contracts for which the Company recognizes revenue in proportion to the amount the Company has the right to invoice for services performed.
NOTE 5. REPOSITIONING AND OTHER CHARGES
A summary of net repositioning and other charges follows:
Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
Severance$38 $35 $91 $121 
Asset impairments3 16 5 37 
Exit costs15 36 48 98 
Reserve adjustments(28)(23)(55)(40)
Total net repositioning charges28 64 89 216 
Asbestos-related charges, net of insurance and reimbursements18 24 54 79 
Probable and reasonably estimable environmental liabilities, net of reimbursements6 6 29 40 
Other charges (6)17 (4)
Total net repositioning and other charges$52 $88 $189 $331 
The following table summarizes the pre-tax distribution of total net repositioning and other charges by classification in the Consolidated Statement of Operations:
 Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
Cost of products and services sold$23 $57 $109 $200 
Selling, general and administrative expenses29 31 63 122 
Other (income) expense  17 9 
Total net repositioning and other charges$52 $88 $189 $331 
16    Honeywell International Inc.

TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(Dollars in tables in millions, except per share amounts)
The following table summarizes the pre-tax amount of total net repositioning and other charges by reportable business segment. These amounts are excluded from segment profit as described in Note 18 Segment Financial Data:
Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
Aerospace Technologies$(7)$10 $1 $21 
Industrial Automation21 26 49 115 
Building Automation1 9 1 40 
Energy and Sustainability Solutions1 19 20 24 
Corporate and All Other36 24 118 131 
Total net repositioning and other charges$52 $88 $189 $331 
NET REPOSITIONING CHARGES
In the three months ended September 30, 2024, the Company recognized gross repositioning charges totaling $56 million, including severance costs of $38 million related to workforce reductions of 727 manufacturing and administrative positions primarily in the Company's Industrial Automation and Aerospace Technologies reportable business segments. The workforce reductions related to productivity and ongoing functional transformation initiatives. The repositioning charges included asset impairments of $3 million related to the write-down of certain assets within the Company's Industrial Automation reportable business segment. The repositioning charges also included exit costs of $15 million related to current period costs incurred for closure obligations associated with site transitions primarily in the Company's Industrial Automation reportable business segment and corporate function. Also, $28 million of previously established reserves, primarily for severance, were returned to income due to higher-than-expected voluntary exits and adjustments to the scope of previously announced repositioning actions.
In the three months ended September 30, 2023, the Company recognized gross repositioning charges totaling $87 million, including severance costs of $35 million related to workforce reductions of 1,567 manufacturing and administrative positions primarily in the Company's Building Automation and Industrial Automation reportable business segments. The workforce reductions related to productivity and ongoing functional transformation initiatives. The repositioning charges included asset impairments of $16 million primarily related to the write-down of certain assets within the Company's Industrial Automation reportable business segment. The repositioning charges also included exit costs of $36 million related to current period costs incurred for closure obligations associated with site transitions primarily in the Company's Industrial Automation and Energy and Sustainability Solutions reportable business segments. Also, $23 million of previously established reserves, primarily for severance, were returned to income due to adjustments to the scope of previously announced repositioning actions.
In the nine months ended September 30, 2024, the Company recognized gross repositioning charges totaling $144 million, including severance costs of $91 million related to workforce reductions of 2,734 manufacturing and administrative positions primarily in the Company's Industrial Automation and Aerospace Technologies reportable business segments and corporate function. The workforce reductions related to productivity and ongoing functional transformation initiatives. The repositioning charges included asset impairments of $5 million related to the write-down of certain assets within the Company's Industrial Automation reportable business segment. The repositioning charges also included exit costs of $48 million related to current period costs incurred for closure obligations associated with site transitions primarily in the Company's Industrial Automation reportable business segment and corporate function. Also, $55 million of previously established reserves, primarily for severance, were returned to income due to adjustments to the scope of previously announced repositioning actions.
In the nine months ended September 30, 2023, the Company recognized gross repositioning charges totaling $256 million, including severance costs of $121 million related to workforce reductions of 4,128 manufacturing and administrative positions primarily in the Company's Industrial Automation and Building Automation reportable business segments. The workforce reductions primarily related to productivity and ongoing functional transformation initiatives. The repositioning charges included asset impairments of $37 million related to the write-down of certain assets within the Company's Industrial Automation reportable business segment. The repositioning charges also included exit costs of $98 million related to current period costs incurred for closure obligations associated with site transitions across all of the Company's reportable business segments and corporate function. Also, $40 million of previously established reserves, primarily for severance, were returned to income due to adjustments to the scope of previously announced repositioning actions.
17    Honeywell International Inc.

TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(Dollars in tables in millions, except per share amounts)
The following table summarizes the status of the Company's total repositioning reserves:
Severance
Costs
Asset
Impairments
Exit
Costs
Total
Balance at December 31, 2023
$188 $ $91 $279 
Charges91 5 48 144 
Usage—cash(72) (73)(145)
Usage—noncash 10  10 
Foreign currency translation(9)  (9)
Adjustments(26)(15)(14)(55)
Reclassifications to Liabilities held for sale(14) (8)(22)
Balance at September 30, 2024
$158 $ $44 $202 
Certain repositioning projects will recognize exit costs in future periods when the actual liability is incurred. Such exit costs incurred in the nine months ended September 30, 2024, and 2023, were $41 million and $40 million, respectively.
OTHER CHARGES
In 2022, the Company recognized $295 million of Other charges related to the initial suspension and the wind down of the Company's business and operations in Russia. These costs impacted all reportable business segments, with the most significant impact within the historical Performance Materials and Technologies reportable business segment. The Other charges include costs recorded in Cost of products sold, Selling, general and administrative expenses, or Other (income) expense in the Consolidated Statement of Operations. During the nine months ended September 30, 2024, the Company recognized Other charges of $17 million related to the settlement of a contractual dispute with a Russian entity associated with the Company's suspension and wind down activities in Russia. The charges were recorded in Other (income) expense in the Consolidated Statement of Operations.
Given the uncertainty inherent in the Company's remaining obligations related to contracts with Russian counterparties, the Company does 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). Based on available information to date, the Company’s estimate of potential future losses or other contingencies related to the wind down of activities, including any guarantee payments or any litigation costs or as otherwise related to the Company's wind down in Russia, could adversely affect the Company's consolidated results of operations in the periods recognized but would not be material with respect to the Company's consolidated financial position. See Note 15 Commitments and Contingencies for a discussion of the recognition and measurement of estimate for contingencies.
During the nine months ended September 30, 2023, the Company recorded a fair value adjustment, within Asbestos-related charges, net of insurance and reimbursements in the table above and Other (income) expense on the Consolidated Statement of Operations, related to HWI Net Sale Proceeds (as defined in Note 15 Commitments and Contingencies) and reduced the estimate by $11 million. See Note 12 Fair Value Measurements and Note 15 Commitments and Contingencies for further discussion.
NOTE 6. INCOME TAXES
The effective tax rate was higher than the U.S. federal statutory rate of 21% and decreased in 2024 compared to 2023 due to increased benefit from taxes on non-U.S. earnings and employee share-based compensation, partially offset by a nondeductible impairment loss on assets held for sale.
NOTE 7. INVENTORIES
 September 30, 2024December 31, 2023
Raw materials$1,504 $1,704 
Work in process1,275 1,217 
Finished products3,559 3,257 
Total Inventories1
$6,338 $6,178 
1
As of September 30, 2024, Total Inventories excludes $201 million that are included in Assets held for sale in the Consolidated Balance Sheet. Refer to Note 3.
18    Honeywell International Inc.

TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(Dollars in tables in millions, except per share amounts)
NOTE 8. GOODWILL AND OTHER INTANGIBLE ASSETS—NET
The following table summarizes the change in the carrying amount of goodwill for the nine months ended September 30, 2024, by reportable business segment:
December 31, 2023Acquisitions/
Divestitures
Currency
Translation
Adjustment
Reclassified to Assets Held for SaleSeptember 30, 2024
Aerospace Technologies
$2,386 $646 $10 $ $3,042 
Industrial Automation
9,650  63 (411)9,302 
Building Automation
3,380 2,826 40  6,246 
Energy and Sustainability Solutions
1,727  4  1,731 
Corporate and All Other906  43  949 
Total Goodwill$18,049 $3,472 $160 $(411)$21,270 
Other intangible assets are comprised of:
 September 30, 2024December 31, 2023
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Definite-life intangibles
      
Patents and technology$2,659 $(1,833)$826 $2,399 $(1,837)$562 
Customer relationships6,457 (2,231)4,226 4,199 (2,601)1,598 
Trademarks421 (296)125 362 (284)78 
Other413 (281)132 299 (277)22 
Total definite-life intangibles—net9,950 (4,641)5,309 7,259 (4,999)2,260 
Indefinite-life intangibles
Trademarks2
440 — 440 971 — 971 
Total Other intangible assets—net1
$10,390 $(4,641)$5,749 $8,230 $(4,999)$3,231 
1
As of September 30, 2024, Total Other intangible assets-net excludes net carrying amount of $125 million of customer relationships and net carrying amount of $483 million of indefinite-life trademarks that are included in Assets held for sale in the Consolidated Balance Sheet. Refer to Note 3.
2
An impairment charge of $48 million was recorded on indefinite-lived intangible assets related to the personal protective equipment business during the three months ended September 30, 2024.
Other intangible assets amortization includes $120 million and $275 million of acquisition-related intangible amortization expense for the three and nine months ended September 30, 2024, respectively, and $87 million and $216 million for the three and nine months ended September 30, 2023, respectively.
19    Honeywell International Inc.

TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(Dollars in tables in millions, except per share amounts)
NOTE 9. LONG-TERM DEBT AND CREDIT AGREEMENTS
 September 30, 2024December 31, 2023
0.00% Euro notes due 2024
$ $547 
2.30% notes due 2024
 750 
4.85% notes due 2024
400 400 
1.35% notes due 2025
1,250 1,250 
2.50% notes due 2026
1,500 1,500 
1.10% notes due 2027
1,000 1,000 
3.50% Euro notes due 2027
728 711 
4.65% notes due 2027
1,150  
4.95% notes due 2028
500 500 
2.25% Euro notes due 2028
840 820 
4.25% notes due 2029
750 750 
2.70% notes due 2029
750 750 
4.875% notes due 2029
500  
4.70% notes due 2030
1,000  
3.375% Euro notes due 2030
840  
1.95% notes due 2030
1,000 1,000 
4.95% notes due 2031
500  
1.75% notes due 2031
1,500 1,500 
4.75% notes due 2032
650  
0.75% Euro notes due 2032
560 547 
3.75% Euro notes due 2032
560 547 
5.00% notes due 2033
1,100 1,100 
4.50% notes due 2034
1,000 1,000 
4.125% Euro notes due 2034
1,119 1,094 
5.00% notes due 2035
1,450  
3.75% Euro notes due 2036
840  
5.70% notes due 2036
441 441 
5.70% notes due 2037
462 462 
5.375% notes due 2041
417 417 
3.812% notes due 2047
442 442 
2.80% notes due 2050
750 750 
5.25% notes due 2054
1,750  
5.35% notes due 2064
650  
4.37% Term Loan due 2027
1,000  
Industrial development bond obligations, floating rate maturing at various dates through 2037
22 22 
6.625% debentures due 2028
201 201 
9.065% debentures due 2033
51 51 
Other (including capitalized leases), 4.6% weighted average interest rate maturing at various dates through 2031
420 217 
Fair value of hedging instruments(89)(166)
Debt issuance costs(310)(245)
Total Long-term debt and current related maturities27,694 18,358 
Less: Current maturities of long-term debt1,760 1,796 
Total Long-term debt$25,934 $16,562 
20    Honeywell International Inc.

TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(Dollars in tables in millions, except per share amounts)
Issuances of Senior Notes
On August 1, 2024, the Company issued $1.15 billion 4.65% Senior Notes due 2027, $1.0 billion 4.70% Senior Notes due 2030, $650 million 4.75% Senior Notes due 2032, and $700 million 5.00% Senior Notes due 2035 (collectively, the August 2024 USD Notes). The Company may redeem the August 2024 USD Notes at any time, and from time to time, in whole or in part, at the Company's option at the applicable redemption price. The offering provided gross proceeds of $3.5 billion, offset by $20 million in discount and closing costs related to the offering.
On March 1, 2024, the Company issued $500 million 4.875% Senior Notes due 2029, $500 million 4.95% Senior Notes due 2031, $750 million 5.00% Senior Notes due 2035, $1.75 billion 5.25% Senior Notes due 2054, and $650 million 5.35% Senior Notes due 2064 (collectively, the March 2024 USD Notes). The Company may redeem the March 2024 USD Notes at any time, and from time to time, in whole or in part, at the Company's option at the applicable redemption price. The offering provided gross proceeds of $4.2 billion, offset by $44 million in discount and closing costs related to the offering.
On March 1, 2024, the Company issued €750 million 3.375% Senior Notes due 2030 and €750 million 3.75% Senior Notes due 2036 (collectively, the 2024 Euro Notes). The Company may redeem the 2024 Euro Notes at any time, and from time to time, in whole or in part, at the Company's option at the applicable redemption price. The offering provided gross proceeds of $1.6 billion, offset by $21 million in discount and closing costs related to the offering.
The August 2024 USD Notes, March 2024 USD Notes, and 2024 Euro Notes are senior unsecured and unsubordinated obligations of the Company and rank equally with each other and with all of the Company's existing and future senior unsecured debt and senior to all of the Company's subordinated debt. The Company intends to use the proceeds from the issuances for general corporate purposes, which may include, among other things, the repayment of outstanding debt and financing of possible acquisitions or business expansion.
Repayments of Senior Notes
On August 15, 2024, the Company repaid its 2.30% notes due 2024.
On March 11, 2024, the Company repaid its 0.00% Euro notes due 2024.
Term Loan Agreements
On August 12, 2024, the Company entered into a Fixed Rate Term Loan Credit Agreement (the Fixed Rate Term Loan Credit Agreement). The Fixed Rate Term Loan Credit Agreement provides for term loans in an aggregate principal amount of $1.0 billion at an interest rate of 4.370% and is maintained for general corporate purposes. Amounts borrowed under the Fixed Rate Term Loan Credit Agreement are required to be repaid no later than August 12, 2027, unless the Fixed Rate Term Loan Credit Agreement is terminated earlier pursuant to its terms. Amounts borrowed under the Fixed Rate Term Loan Credit Agreement may be repaid at the Company’s election at any time, and from time to time, in whole or in part. Prior to August 12, 2026, principal payments in respect of the term loans will be subject to a make-whole premium, not to exceed 101% of the aggregate principal amount of the term loans to be prepaid. As of September 30, 2024, there were $1.0 billion of borrowings outstanding under the Fixed Rate Term Loan Credit Agreement.
On May 13, 2024, an affiliate of the Company (the borrower) entered into a Term Loan Facility Agreement (the Euro Term Loan Credit Agreement) that provides for term loans in an aggregate principal amount of up to €210 million at a variable interest rate of EURIBOR plus 60 basis points. Amounts borrowed under the Euro Term Loan Credit Agreement were used to fund the voluntary tender offer of Civitanavi Systems S.p.A. in Italy (together with certain fees and expenses related thereto) and are required to be repaid no later than August 16, 2026. Amounts borrowed under the Euro Term Loan Credit Agreement may be repaid at the borrower’s discretion at any time, and from time to time, in whole or in part. As of September 30, 2024, there were €196 million ($220 million) of borrowings outstanding under the Euro Term Loan Credit Agreement. These outstanding borrowings are included within the Other (including capitalized leases) line item in the table above.
Revolving Credit Agreements
On July 2, 2024, the Company entered into a $1.5 billion second 364-day credit agreement (the Second 364-day Credit Agreement). On August 12, 2024, the Company terminated the commitments under its Second 364-day Credit Agreement. The Second 364-Day Credit Agreement was maintained for general corporate purposes and was provided on terms that are essentially identical to those of the Company's existing 364-day credit agreement. There were no borrowings under the Second 364-day Credit Agreement prior to its termination.
On March 18, 2024, the Company entered into a $1.5 billion 364-day credit agreement (the 364-Day Credit Agreement) and a $4.0 billion amended and restated five-year credit agreement (the 5-Year Credit Agreement). The 364-Day Credit Agreement replaced the $1.5 billion 364-day credit agreement dated as of March 20, 2023, which was terminated in accordance with its terms effective March 18, 2024. Amounts borrowed under the 364-Day Credit Agreement are required to be repaid no later than March 17, 2025, unless (i) Honeywell elects to convert all then outstanding amounts into a term loan, upon which such amounts shall be repaid in full on March 17, 2026, or (ii) the 364-Day Credit Agreement is terminated earlier pursuant to its terms. The 5-Year Credit Agreement amended and restated the previously reported $4.0 billion amended and restated five-year credit agreement dated as of March 20, 2023. Commitments under the 5-Year Credit Agreement can be increased pursuant to the terms of the 5-Year Credit Agreement to an aggregate amount not to exceed $4.5 billion. The 364-Day Credit Agreement and 5-Year Credit Agreement are maintained for general corporate purposes.
As of September 30, 2024, there were no outstanding borrowings under the 364-Day Credit Agreement or the 5-Year Credit Agreement.
21    Honeywell International Inc.

TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(Dollars in tables in millions, except per share amounts)
NOTE 10. LEASES
The Company's operating and finance lease portfolio is described in Note 10 Leases of Notes to Consolidated Financial Statements in the Company's 2023 Annual Report on Form 10-K.
Supplemental cash flow information related to leases was as follows:
Nine Months Ended September 30,
20242023
Right-of-use assets obtained in exchange for lease obligations
Operating leases$158 $176 
Finance leases67 31 
Supplemental balance sheet information related to leases was as follows:
September 30, 2024December 31, 2023
Operating leases
Other assets1
$1,040 $1,004 
Accrued liabilities204 196 
Other liabilities941 897 
Total operating lease liabilities2
1,145 1,093 
Finance leases
Property, plant and equipment421 402 
Accumulated depreciation(230)(204)
Property, plant and equipment—net191 198 
Current maturities of long-term debt78 86 
Long-term debt89 99 
Total finance lease liabilities$167 $185 
1
As of September 30, 2024, Other assets excludes $17 million of right-of-use assets related to operating leases that are included in Assets held for sale in the Consolidated Balance Sheet. Refer to Note 3.
2
As of September 30, 2024, Total operating lease liabilities excludes $5 million and $12 million of Accrued liabilities and Other liabilities, respectively, that are included in Liabilities held for sale in the Consolidated Balance Sheet. Refer to Note 3.
22    Honeywell International Inc.

TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(Dollars in tables in millions, except per share amounts)
NOTE 11. DERIVATIVE INSTRUMENTS AND HEDGING TRANSACTIONS
Honeywell's foreign currency, interest rate, credit, and commodity price risk management policies are described in Note 11 Derivative Instruments and Hedging Transactions of Notes to Consolidated Financial Statements in the Company's 2023 Annual Report on Form 10-K.
The following table summarizes the notional amounts and fair values of the Company’s outstanding derivatives by risk category and instrument type within the Consolidated Balance Sheet:
NotionalFair Value AssetFair Value (Liability)
September 30, 2024December 31, 2023September 30, 2024December 31, 2023September 30, 2024December 31, 2023
Derivatives in fair value hedging relationships   
Interest rate swap agreements$3,999 $4,717 $26 $18 $(115)$(184)
Derivatives in cash flow hedging relationships
Foreign currency exchange contracts1,326 712 4 28 (17)(4)
Commodity contracts2 6    (1)
Derivatives in net investment hedging relationships
Cross currency swap agreements7,214 4,264 3  (351)(145)
Total derivatives designated as hedging instruments12,541 9,699 33 46 (483)(334)
Derivatives not designated as hedging instruments
Foreign currency exchange contracts8,860 8,198 3 7 (7)(5)
Total derivatives at fair value$21,401 $17,897 $36 $53 $(490)$(339)
All derivative assets are presented in Other current assets or Other assets. All derivative liabilities are presented in Accrued liabilities or Other liabilities.
In addition to the foreign currency derivative contracts designated as net investment hedges, certain of the Company's foreign currency denominated debt instruments are designated as net investment hedges. The carrying value of those debt instruments designated as net investment hedges, which includes the adjustment for the foreign currency transaction gain or loss on those instruments, was $6,638 million and $6,099 million as of September 30, 2024, and December 31, 2023, respectively.
The following table sets forth the amounts recorded in the Consolidated Balance Sheet related to cumulative basis adjustments for fair value hedges:
Carrying Amount of Hedged ItemCumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of Hedged Item
September 30, 2024December 31, 2023September 30, 2024December 31, 2023
Long-term debt$3,910 $4,551 $(89)$(166)
23    Honeywell International Inc.

TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(Dollars in tables in millions, except per share amounts)
The following tables summarize the location and impact to the Consolidated Statement of Operations related to derivative instruments:
Three Months Ended September 30, 2024
Net SalesCost of
Products Sold
Cost of
Services Sold
Selling,
General and
Administrative
Expenses
Other
(Income)
Expense
Interest and Other
Financial Charges
$9,728 $4,166 $1,813 $1,398 $(263)$297 
Gain or (loss) on cash flow hedges
Foreign currency exchange contracts
Amount reclassified from accumulated other comprehensive income (loss) into income (1) 1   
Gain or (loss) on fair value hedges
Interest rate swap agreements
Hedged items     (123)
Derivatives designated as hedges     123 
Gain or (loss) on derivatives not designated as hedging instruments
Foreign currency exchange contracts    (213) 
Three Months Ended September 30, 2023
Net SalesCost of
Products Sold
Cost of
Services Sold
Selling,
General and
Administrative
Expenses
Other
(Income)
Expense
Interest and Other
Financial Charges
$9,212 $4,090 $1,580 $1,252 $(247)$206 
Gain or (loss) on cash flow hedges
Foreign currency exchange contracts
Amount reclassified from accumulated other comprehensive income (loss) into income5 10 4 2   
Gain or (loss) on fair value hedges
Interest rate swap agreements
Hedged items     38 
Derivatives designated as hedges     (38)
Gain or (loss) on derivatives not designated as hedging instruments
Foreign currency exchange contracts    212  
24    Honeywell International Inc.

TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(Dollars in tables in millions, except per share amounts)
Nine Months Ended September 30, 2024
Net SalesCost of
Products Sold
Cost of
Services Sold
Selling,
General and
Administrative
Expenses
Other
(Income)
Expense
Interest and Other
Financial Charges
$28,410 $12,448 $4,970 $4,061 $(740)$767 
Gain or (loss) on cash flow hedges
Foreign currency exchange contracts
Amount reclassified from accumulated other comprehensive income (loss) into income3 7 3 6   
Gain or (loss) on fair value hedges
Interest rate swap agreements
Hedged items     (77)
Derivatives designated as hedges     77 
Gain or (loss) on derivatives not designated as hedging instruments
Foreign currency exchange contracts    (180) 
Nine Months Ended September 30, 2023
Net SalesCost of
Products Sold
Cost of
Services Sold
Selling,
General and
Administrative
Expenses
Other
(Income)
Expense
Interest and Other
Financial Charges
$27,222 $12,291 $4,503 $3,831 $(715)$563 
Gain or (loss) on cash flow hedges
Foreign currency exchange contracts
Amount reclassified from accumulated other comprehensive income (loss) into income8 19 7 6   
Gain or (loss) on fair value hedges
Interest rate swap agreements
Hedged items     36 
Derivatives designated as hedges     (36)
Gain or (loss) on derivatives not designated as hedging instruments
Foreign currency exchange contracts    63  
The following table summarizes the amounts of gain or (loss) on net investment hedges recognized in Accumulated other comprehensive income (loss):
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Euro-denominated long-term debt$(246)$157 $(146)$71 
Euro-denominated commercial paper(52)68 (11)25 
Cross currency swap agreements(314)69 (227)(6)
25    Honeywell International Inc.

TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(Dollars in tables in millions, except per share amounts)
NOTE 12. FAIR VALUE MEASUREMENTS
The accounting guidance for fair value measurements and disclosures establishes a three-level fair value hierarchy:
Level 1 - Inputs are based on quoted prices in active markets for identical assets and liabilities.
Level 2 - Inputs are based on observable inputs other than quoted prices in active markets for identical or similar assets and liabilities.
Level 3 - One or more inputs are unobservable and significant.
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:
 September 30, 2024December 31, 2023
Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Assets  
Foreign currency exchange contracts$ $7 $ $7 $ $35 $ $35 
Available for sale investments69 316  385 63 217  280 
Interest rate swap agreements 26  26  18  18 
Cross currency swap agreements 3  3     
Investments in equity securities13   13 22   22 
Right to HWI Net Sale Proceeds  6 6   9 9 
Total assets$82 $352 $6 $440 $85 $270 $9 $364 
Liabilities
Foreign currency exchange contracts$ $24 $ $24 $ $9 $ $9 
Interest rate swap agreements 115  115  184  184 
Commodity contracts     1  1 
Cross currency swap agreements 351  351  145  145 
Total liabilities$ $490 $ $490 $ $339 $ $339 
The Company values foreign currency exchange contracts, interest rate swap agreements, cross currency swap agreements, and commodity contracts using broker quotations, or market transactions in either the listed or over-the-counter markets. These derivative instruments are classified within level 2. The Company also holds investments in commercial paper, certificates of deposits, time deposits, and corporate debt securities that are designated as available for sale. These investments are valued using published prices based on observable market data. These investments are classified within level 2.
The Company holds certain available for sale investments in U.S. government securities and investments in equity securities. The Company values these investments 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 other short-term borrowings approximates fair value.
As part of the NARCO Buyout (see Note 15 Commitments and Contingencies for definition), Honeywell holds a right to proceeds from the definitive sale agreement pursuant to which HarbisonWalker International Holdings, Inc. (HWI), the reorganized and renamed entity that emerged from the NARCO Bankruptcy, was acquired by an affiliate of Platinum Equity, LLC (HWI Sale). The right to these proceeds is considered a financial instrument. The significant input for the valuation of this right is unobservable and is classified within level 3. The HWI Sale closed on February 16, 2023. The balance of the remaining HWI Net Sale Proceeds as of December 31, 2023, and September 30, 2024, was $9 million and $6 million, respectively, based on the receipt of an additional $3 million in HWI Net Sale Proceeds during the nine months ended September 30, 2024.
26    Honeywell International Inc.

TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(Dollars in tables in millions, except per share amounts)
The following table sets forth the Company’s financial assets and liabilities that were not carried at fair value:
 September 30, 2024December 31, 2023
 Carrying
Value
Fair
Value
Carrying
Value
Fair
Value
Assets    
Long-term receivables$744 $676 $232 $173 
Liabilities
Long-term debt and related current maturities27,694 27,501 18,358 17,706 
The Company determined the fair value of the long-term receivables by utilizing transactions in the listed markets for identical or similar assets. As such, the fair value of these receivables is considered level 2.
The Company determined the fair value of the long-term debt and related current maturities by 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.
During the third quarter of 2024, the Company measured the disposal group of the personal protective equipment business at fair value, less costs to sell. The fair value of the disposal group was determined using significant unobservable inputs based on expected proceeds to be received upon the sale of the business. As such, the fair value of the disposal group is considered level 3. See Note 3 Acquisitions, Divestitures and Assets and Liabilities Held for Sale for more information on the disposal group.
NOTE 13. EARNINGS PER SHARE
The details of the earnings per share calculations for the three and nine months ended September 30, 2024, and 2023, are as follows (shares in millions):
Three Months Ended September 30,Nine Months Ended September 30,
Basic2024202320242023
Net income attributable to Honeywell$1,413 $1,514 $4,420 $4,395 
Weighted average shares outstanding650.4 662.4 651.0 665.2 
Earnings per share of common stock—basic$2.17 $2.29 $6.79 $6.61 
 Three Months Ended September 30,Nine Months Ended September 30,
Assuming Dilution2024202320242023
Net income attributable to Honeywell$1,413 $1,514 $4,420 $4,395 
Average shares
Weighted average shares outstanding650.4 662.4 651.0 665.2 
Dilutive securities issuable—stock plans3.7 4.6 4.2 5.2 
Total weighted average diluted shares outstanding654.1 667.0 655.2 670.4 
Earnings per share of common stock—assuming dilution$2.16 $2.27 $6.75 $6.56 
The diluted earnings per share calculations exclude the effect of stock options when the cost to exercise an option exceeds the average market price of the common shares during the period. For the three and nine months ended September 30, 2024, the weighted average number of stock options excluded from the computations were 4.1 million and 5.2 million, respectively. For the three and nine months ended September 30, 2023, the weighted average number of stock options excluded from the computations were 4.6 million and 4.4 million, respectively.
As of September 30, 2024, and 2023, the total shares outstanding were 650.2 million and 659.3 million, respectively, and as of September 30, 2024, and 2023, total shares issued were 957.6 million.
27    Honeywell International Inc.

TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(Dollars in tables in millions, except per share amounts)
NOTE 14. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BY COMPONENT
 Foreign
Exchange
Translation
Adjustment
Pension
and Other
Postretirement
Benefit
Adjustments
Changes in Fair
Value of
 Available for Sale
 Investments
Changes in
Fair Value
of Cash Flow
Hedges
Total
Balance at December 31, 2023$(3,101)$(1,055)$(2)$23 $(4,135)
Other comprehensive income (loss) before reclassifications(226) (1)(11)(238)
Amounts reclassified from accumulated other comprehensive income (loss) (16) (15)(31)
Net current period other comprehensive income (loss)(226)(16)(1)(26)(269)
Balance at September 30, 2024$(3,327)$(1,071)$(3)$(3)$(4,404)
 Foreign
Exchange
Translation
Adjustment
Pension
and Other
Postretirement
Benefit
Adjustments 
Changes in Fair
Value of
 Available for Sale
 Investments
Changes in
Fair Value
of Cash Flow
Hedges
Total
Balance at December 31, 2022$(2,832)$(648)$(7)$12 $(3,475)
Other comprehensive income (loss) before reclassifications(70) 3 59 (8)
Amounts reclassified from accumulated other comprehensive income (loss) (38) (30)(68)
Net current period other comprehensive income (loss)(70)(38)3 29 (76)
Balance at September 30, 2023$(2,902)$(686)$(4)$41 $(3,551)
NOTE 15. COMMITMENTS AND CONTINGENCIES
ENVIRONMENTAL MATTERS
The Company is subject to various federal, state, local, and foreign government requirements relating to the protection of the environment. With respect to environmental matters involving site contamination, the Company continually conducts studies, individually or jointly with other potentially responsible parties, to determine the feasibility of various remedial techniques. It is the Company's 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 the Company's best estimate of the undiscounted future costs required to complete the remedial work. The recorded liabilities are adjusted periodically as remediation efforts progress or as additional technical, regulatory, or legal information becomes available.
Honeywell's environmental matters are further described in Note 19 Commitments and Contingencies of Notes to Consolidated Financial Statements in the Company's 2023 Annual Report on Form 10-K.
The following table summarizes information concerning the Company's recorded liabilities for environmental costs:
Balance at December 31, 2023
$641 
Accruals for environmental matters deemed probable and reasonably estimable191 
Environmental liability payments(147)
Balance at September 30, 2024
$685 
28    Honeywell International Inc.

TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(Dollars in tables in millions, except per share amounts)
Environmental liabilities are included in the following balance sheet accounts:
September 30, 2024December 31, 2023
Accrued liabilities$247 $227 
Other liabilities438 414 
Total environmental liabilities$685 $641 
The Company does not currently possess sufficient information to reasonably estimate the amounts of environmental liabilities to be recorded upon future completion of studies, litigation, or settlements, and neither the timing nor the amount of the ultimate costs associated with environmental matters can be determined, although they could be material to the Company's consolidated results of operations and operating cash flows in the periods recognized or paid. However, considering the Company's past experience and existing reserves, the Company does not expect that environmental matters will have a material adverse effect on its consolidated financial position.
In conjunction with the Resideo Technologies, Inc. (Resideo) spin-off, the Company entered into an indemnification and reimbursement agreement with a Resideo subsidiary, pursuant to which Resideo’s subsidiary has an ongoing obligation to make cash payments to Honeywell in amounts equal to 90% of Honeywell’s annual net spending for environmental matters at certain sites as defined in the agreement. The amount payable to Honeywell in any given year is subject to a cap of $140 million, and the obligation will continue until the earlier of December 31, 2043, or December 31 of the third consecutive year during which the annual payment obligation is less than $25 million.
Reimbursements associated with this agreement are collected from Resideo quarterly and were $105 million in the nine months ended September 30, 2024, and offset operating cash outflows incurred by the Company. As the Company incurs costs for environmental matters deemed probable and reasonably estimable related to the sites covered by the indemnification and reimbursement agreement, a corresponding receivable from Resideo for 90% of such costs is also recorded. This receivable amount recorded in the nine months ended September 30, 2024, was $134 million. As of September 30, 2024, Other current assets and Other assets included $140 million and $550 million, respectively, for the short-term and long-term portion of the receivable amount due from Resideo under the indemnification and reimbursement agreement.
ASBESTOS MATTERS
Honeywell is named in asbestos-related personal injury claims related to North American Refractories Company (NARCO), which was sold in 1986, and the Bendix Friction Materials (Bendix) business, which was sold in 2014.
The following tables summarize information concerning NARCO and Bendix asbestos-related balances:
ASBESTOS-RELATED LIABILITIES
 BendixNARCOTotal
December 31, 2023$1,644 $ $1,644 
Accrual for update to estimated liability30 1 31 
Change in estimated cost of future claims15  15 
Asbestos-related liability payments(157)(1)(158)
September 30, 2024$1,532 $ $1,532 
INSURANCE RECOVERIES FOR ASBESTOS-RELATED LIABILITIES
 BendixNARCOTotal
December 31, 2023$123 $88 $211 
Probable insurance recoveries related to estimated liability   
Insurance receipts for asbestos-related liabilities(7)(3)(10)
September 30, 2024$116 $85 $201 
29    Honeywell International Inc.

TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(Dollars in tables in millions, except per share amounts)
NARCO and Bendix asbestos-related balances are included in the following balance sheet accounts:
September 30, 2024December 31, 2023
Other current assets$41 $41 
Insurance recoveries for asbestos-related liabilities160 170 
Total insurance recoveries for asbestos-related liabilities$201 $211 
Accrued liabilities$110 $154 
Asbestos-related liabilities1,422 1,490 
Total asbestos-related liabilities$1,532 $1,644 
NARCO Products – NARCO manufactured high-grade, heat-resistant, refractory products for various industries. Honeywell’s predecessor, Allied Corporation, owned NARCO from 1979 to 1986. Allied Corporation sold the NARCO business in 1986 and entered into a cross-indemnity agreement which included an obligation to indemnify the purchaser for asbestos claims, arising primarily from alleged occupational exposure to asbestos-containing refractory brick and mortar for high-temperature applications. NARCO ceased manufacturing these products in 1980 and filed for bankruptcy in January 2002, at which point in time all then current and future NARCO asbestos claims were stayed against both NARCO and Honeywell pending the reorganization of NARCO. The Company established its initial liability for NARCO asbestos claims in 2002.
NARCO emerged from bankruptcy in April 2013, at which time a federally authorized 524(g) trust was established to evaluate and resolve all existing NARCO asbestos claims (the Trust). Both Honeywell and NARCO are protected by a permanent channeling injunction barring all present and future individual actions in state or federal courts and requiring all asbestos-related claims based on exposure to NARCO asbestos-containing products to be made against the Trust (Channeling Injunction). The NARCO Trust Agreement (TA) and the NARCO Trust Distribution Procedures (TDP) set forth the structure and operating rules of the Trust, and established Honeywell’s evergreen funding obligations.
The operating rules per the TDP define criteria claimants must meet for a claim to be considered valid and paid. Once operational in 2014, the Trust began to receive, process, and pay claims. In September 2021, Honeywell filed suit against the Trust in the United States Bankruptcy Court for the Western District of Pennsylvania (Bankruptcy Court) alleging that the Trust breached its duties in managing the Trust, including breaches of certain provisions of the TA and TDP. Honeywell's lawsuit sought appropriate relief preventing the Trust from continuing these practices. The Trust also filed suit against Honeywell, alleging Honeywell breached its obligations under the Trust's governing documents. Honeywell moved to dismiss the Trust’s suit, and on December 15, 2021, the Bankruptcy Court granted Honeywell’s motion to dismiss subject to granting the Trust leave to file an amended complaint. On December 28, 2021, the Trust filed an answer with counterclaims in response to Honeywell’s complaint and in lieu of filing an amended complaint. The Bankruptcy Court conducted a trial on these matters during May 2022; following the trial, the Company and the Trust began discussing a potential settlement of Honeywell’s remaining obligations to the Trust.
On November 18, 2022, Honeywell entered into a definitive agreement (Buyout Agreement) with the Trust, and on November 20, 2022, in exchange for the NARCO Trust Advisory Committee (TAC) and Lawrence Fitzpatrick, in his capacity as the NARCO Asbestos Future Claimants Representative (FCR), becoming parties to the Buyout Agreement, Honeywell, the Trust, the TAC, and the FCR entered into an Amended and Restated Buyout Agreement (Amended Buyout Agreement).
Pursuant to the terms of the Amended Buyout Agreement, Honeywell agreed to make a one-time, lump sum payment in the amount of $1.325 billion to the Trust (Buyout Amount), subject to certain deductions as described in the Amended Buyout Agreement and in exchange for the release by the Trust of Honeywell from all further and future obligations of any kind related to the Trust and/or any claimants who were exposed to asbestos-containing products manufactured, sold, or distributed by NARCO or its predecessors, including Honeywell’s ongoing evergreen obligation to fund (i) claims against the Trust, which comprise Honeywell’s NARCO asbestos-related claims liability, and (ii) the Trust’s annual operating expenses, which are expensed as incurred, including its legal fees (which operating expenses, for reference, were approximately $30 million in 2022) (such evergreen obligations referred to in (i) and (ii), Honeywell Obligations) (the NARCO Buyout).
On December 8, 2022, the Bankruptcy Court issued an order that (A) approved the Amended Buyout Agreement, and (B) declared that the NARCO Channeling Injunction (which bars all past, present, and future individual actions in state or federal courts based on exposure to NARCO asbestos-containing products and requires all such claims to be made against the Trust) will remain in full force and effect without modification, dissolution, or termination (Order).
On December 14, 2022, HWI, the reorganized and renamed entity that emerged from the NARCO bankruptcy, entered into a definitive agreement (Sale Agreement) pursuant to which an affiliate of Platinum Equity, LLC agreed to acquire HWI (HWI Sale) subject to the terms set forth in the Sale Agreement, including customary conditions to closing set forth therein. In accordance with the Amended Buyout Agreement, the economic rights of the Trust in respect of the net proceeds from the HWI Sale inure to the benefit of Honeywell.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(Dollars in tables in millions, except per share amounts)
On January 30, 2023, the Company paid the Buyout Amount to the Trust, the parties closed the transactions contemplated in the Amended Buyout Agreement (Closing), and Honeywell was released from the Honeywell Obligations. Honeywell continues to have the right to collect proceeds in connection with its NARCO asbestos-related insurance policies.
With the issuance of the Order, the Company derecognized the NARCO asbestos-related liability of $688 million from the Consolidated Balance Sheet and recognized a charge of $1.325 billion in the Consolidated Statement of Operations and accrued a corresponding liability in the Consolidated Balance Sheet for the Buyout Amount. In addition, the Company recognized a benefit of $295 million in the Consolidated Statement of Operations and corresponding asset in Other current assets in the Consolidated Balance Sheet for Honeywell's rights to the proceeds from the HWI Sale. The benefit of $295 million offset the charge for the Buyout Amount.
On February 16, 2023, the HWI Sale closed. Pursuant to the Amended Buyout Agreement, during 2023, Honeywell received $275 million of proceeds from the HWI Sale (HWI Net Sale Proceeds). Additionally, during 2023, the Company recorded a fair value adjustment for the HWI Net Sale Proceeds and reduced the HWI Net Sale Proceeds estimate by $11 million. During the nine months ended September 30, 2024, Honeywell received $3 million of proceeds from the HWI Sale. The ending balance as of September 30, 2024, was $6 million. The fair value of the remaining HWI Net Sale Proceeds as of September 30, 2024, represents contingent consideration to be paid in future periods if certain conditions under the definitive sale agreement for the HWI Sale are met.
Bendix Products – Bendix manufactured automotive brake linings that contained chrysotile asbestos in an encapsulated form. Claimants consist largely of individuals who allege exposure to asbestos from brakes from either performing or being in the vicinity of individuals who performed brake replacements. The following tables present information regarding Bendix-related asbestos claims activity:
Nine Months Ended
September 30,
Years Ended
December 31,
202420232022
Claims unresolved at the beginning of period5,517 5,608 6,401 
Claims filed1,198 1,803 2,014 
Claims resolved(1,809)(1,894)(2,807)
Claims unresolved at the end of period4,906 5,517 5,608 
September 30,December 31,
Disease Distribution of Unresolved Claims202420232022
Mesothelioma and other cancer claims2,879 3,244 3,283 
Nonmalignant claims2,027 2,273 2,325 
Total claims4,906 5,517 5,608 
Honeywell has experienced average resolution values per claim excluding legal costs as follows:
 Years Ended December 31,
 20232022202120202019
 (in whole dollars)
Mesothelioma and other cancer claims$66,200 $59,200 $56,000 $61,500 $50,200 
Nonmalignant claims$1,730 $520 $400 $550 $3,900 
The Consolidated Financial Statements reflect an estimated liability for resolution of asserted (claims filed as of the financial statement date) and unasserted Bendix-related asbestos claims, which exclude the Company’s ongoing legal fees to defend such asbestos claims which will continue to be expensed as they are incurred.
The Company reflects the inclusion of all years of epidemiological disease projection through 2059 when estimating the liability for unasserted Bendix-related asbestos claims. Such liability for unasserted Bendix-related asbestos claims is based on historic and anticipated claims filing experience and dismissal rates, disease classifications, and average resolution values in the tort system over a defined look-back period. The Company historically valued Bendix asserted and unasserted claims using a five-year look-back period. The Company reviews the valuation assumptions and average resolution values used to estimate the cost of Bendix asserted and unasserted claims during the fourth quarter each year.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(Dollars in tables in millions, except per share amounts)
The Company experienced fluctuations in average resolution values year-over-year in each of the past five years with no well-established trends in either direction. In 2023, the Company observed two consecutive years of increasing average resolution values (2023 and 2022), with more volatility in the earlier years of the five-year period (2019 through 2021). Based on these observations, the Company, during its annual review in the fourth quarter of 2023, reevaluated its valuation methodology and elected to give more weight to the two most recent years by shortening the look-back period from five years to two years (2023 and 2022). The Company believes that the average resolution values in the last two consecutive years are likely more representative of expected resolution values in future periods.
It is not possible to predict whether such resolution values will increase, decrease, or stabilize in the future, given recent litigation trends within the tort system and the inherent uncertainty in predicting the outcome of such trends. The Company will continue to monitor Bendix claim resolution values and other trends within the tort system to assess the appropriate look-back period for determining average resolution values going forward.
In 2023, the Company recognized a $522 million expense and corresponding adjustment to its estimated liability for Bendix asbestos-related claims. This amount includes $434 million attributable primarily to shortening the look-back period to the two most recent years, and to a lesser extent to increasing expected resolution values for a subset of asserted claims to adjust for higher claim values in that subset than in the modelled two-year data set.
The Company's insurance receivable corresponding to the liability for settlement of asserted and unasserted Bendix asbestos claims reflects coverage which is provided by a large number of insurance policies written by dozens of insurance companies in both the domestic insurance market and the London excess market. Based on the Company's 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 the Company's analysis of the underlying insurance policies, historical experience with insurers, ongoing review of the solvency of insurers, judicial determinations relevant to insurance programs, and consideration of the impacts of any settlements reached with the Company's insurers.
SEC MATTER
The Company is cooperating with a formal investigation by the Securities and Exchange Commission (SEC) which is primarily focused on certain accounting matters with respect to the Company's former Performance Materials and Technologies segment. At this time, the Company does not expect the outcome of this matter to have a material adverse effect on the Company's consolidated results of operations, cash flows, or financial position.
PETROBRAS AND UNAOIL MATTERS
On December 19, 2022, the Company reached a comprehensive resolution to the investigations by the U.S. Department of Justice (DOJ), the SEC, and certain Brazilian authorities (Brazilian Authorities) relating to the Company's use of third parties who previously worked for the Company's UOP business in Brazil in relation to a project awarded in 2010 for Petróleo Brasileiro S.A. (Petrobras). The investigations focused on the Company’s compliance with the U.S. Foreign Corrupt Practices Act and similar Brazilian laws (UOP Matters). The comprehensive resolution also resolves DOJ and SEC investigations relating to a matter involving a foreign subsidiary’s prior contract with Unaoil S.A.M. in Algeria executed in 2011 (the Unaoil Matter).
In connection with the comprehensive resolution, (i) the Company agreed to pay a total equivalent of $202.7 million, which payment occurred in January 2023, to the DOJ, the SEC, and the Brazilian Authorities, collectively, in penalties, disgorgement, and prejudgment interest, (ii) the Company’s subsidiary, UOP, LLC (UOP), entered into a three-year Deferred Prosecution Agreement with the DOJ for charges related to the UOP Matters, (iii) UOP entered into leniency agreements with the Brazilian authorities related to the UOP Matter in Brazil, and (iv) the Company entered into an agreement with the SEC that resolves allegations relating to the UOP Matters and the Unaoil Matter. Pursuant to these agreements, the Company agreed to undertake certain compliance measures and compliance reporting obligations. These agreements entirely resolved the Petrobras and Unaoil investigations.
OTHER MATTERS
The Company is subject to a number of other lawsuits, investigations, and disputes (some of which involve substantial amounts claimed) arising out of the conduct of the Company's business, including matters relating to commercial transactions, government contracts, product liability, prior acquisitions and divestitures, employee benefit plans, intellectual property, and environmental, health, and safety matters. The Company recognizes liabilities for any contingency that is probable of occurrence and reasonably estimable. The Company continually assesses the likelihood of adverse judgments or outcomes in such matters, as well as potential ranges of probable 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.
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HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(Dollars in tables in millions, except per share amounts)
Given the uncertainty inherent in litigation and investigations, including those discussed in this Note 15, the Company cannot predict when or how these matters will be resolved and does not believe it is possible to develop estimates of reasonably possible loss (or a range of possible loss) in excess of current accruals for commitment and contingency matters. Considering the Company's past experience and existing accruals, the Company does not expect the outcome of such matters, either individually or in the aggregate, to have a material adverse effect on the Company's 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 the Company to pay damage awards or settlements (or become subject to equitable remedies) that could have a material adverse effect on the Company's consolidated results of operations or operating cash flows in the periods recognized or paid.
NOTE 16. PENSION BENEFITS
Net periodic pension benefit (income) cost for the Company's significant pension plans included the following components:
U.S. Plans
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Service cost$7 $8 $21 $22 
Interest cost150 162 449 484 
Expected return on plan assets(282)(277)(844)(833)
Amortization of prior service (credit) cost(1)(12)(5)(32)
Net periodic benefit income$(126)$(119)$(379)$(359)
Non-U.S. Plans
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Service cost$3 $2 $9 $8 
Interest cost49 51 143 150 
Expected return on plan assets(78)(70)(226)(206)
Net periodic benefit income$(26)$(17)$(74)$(48)
The Company completed no repurchases of outstanding Honeywell shares of common stock from the Honeywell U.S. Pension Plan Master Trust during the nine months ended September 30, 2024. During the three and nine months ended September 30, 2023, the Company repurchased $100 million of outstanding Honeywell shares of common stock from the Honeywell U.S. Pension Plan Master Trust.
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HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(Dollars in tables in millions, except per share amounts)
NOTE 17. OTHER (INCOME) EXPENSE
 Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
Interest income$(110)$(89)$(325)$(241)
Pension ongoing income—non-service(161)(148)(478)(440)
Other postretirement income—non-service(3)(6)(13)(19)
Equity income of affiliated companies(17)(12)(47)(61)
Foreign exchange (gain) loss(4) 27 20 
Expense (benefit) related to Russia-Ukraine Conflict  17 (2)
Net expense related to the NARCO Buyout and HWI Sale   11 
Acquisition-related costs10 6 34 7 
Other, net22 2 45 10 
Total Other (income) expense$(263)$(247)$(740)$(715)
See Note 15 Commitments and Contingencies for more information on the Net expense related to the NARCO Buyout and HWI Sale. See Note 5 Repositioning and Other Charges for further discussion of the expense related to the Russia-Ukraine Conflict.
NOTE 18. SEGMENT FINANCIAL DATA
Honeywell globally manages its business operations through four reportable business segments. Segment information is consistent with how management reviews the businesses, makes investing and resource allocation decisions, and assesses operating performance.
Effective during the first quarter of 2024, the Company realigned certain of its business units comprising its historical Performance Materials and Technologies and Safety and Productivity Solutions reportable business segments by forming two new reportable business segments: Industrial Automation and Energy and Sustainability Solutions. Industrial Automation includes Sensing and Safety Technologies, Productivity Solutions and Services, and Warehouse and Workflow Solutions, previously included in Safety and Productivity Solutions, in addition to Process Solutions, previously included in Performance Materials and Technologies. Energy and Sustainability Solutions includes UOP and Advanced Materials, previously included in Performance Materials and Technologies. Further, as part of the realignment, the Company renamed its historical Aerospace and Honeywell Building Technologies reportable business segments to Aerospace Technologies and Building Automation, respectively. This realignment had no impact on the Company’s historical consolidated financial position, results of operations, or cash flows. Prior period amounts have been recast to conform to current period segment presentation.
Effective during the second quarter of 2024, the Company updated its calculation of segment profit to exclude the impact of amortization expense for acquisition-related intangible assets and certain acquisition-related costs. The Company recast historical periods to reflect segment profit under this new basis to facilitate comparability. In the third quarter of 2024, the Company clarified its calculation of segment profit to exclude divestiture-related costs and impairments.
Honeywell’s senior management evaluates segment performance based on segment profit. Each segment’s profit is measured as segment income (loss) before taxes and excluding general corporate unallocated expense, interest and other financial charges, interest income, amortization of acquisition-related intangibles, impairment of assets held for sale, stock compensation expense, pension ongoing and other postretirement income (expense), repositioning and other charges, acquisition- and divestiture-related charges, and other items within Other (income) expense.
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HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(Dollars in tables in millions, except per share amounts)
 Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
Net sales    
Aerospace Technologies    
Products$2,148 $1,824 $6,300 $5,294 
Services1,764 1,675 5,172 4,657 
Net Aerospace Technologies sales3,912 3,499 11,472 9,951 
Industrial Automation
Products1,755 1,885 5,332 6,105 
Services746 745 2,153 2,055 
Net Industrial Automation sales2,501 2,630 7,485 8,160 
Building Automation
Products1,281 1,172 3,492 3,463 
Services464 358 1,250 1,064 
Net Building Automation sales1,745 1,530 4,742 4,527 
Energy and Sustainability Solutions
Products1,406 1,414 4,206 4,183 
Services157 137 486 396 
Net Energy and Sustainability Solutions sales1,563 1,551 4,692 4,579 
Corporate and All Other
Services7 2 19 5 
Net Corporate and All Other sales7 2 19 5 
Net sales$9,728 $9,212 $28,410 $27,222 
Segment profit
Aerospace Technologies
$1,082 $968 $3,177 $2,729 
Industrial Automation508 519 1,459 1,649 
Building Automation452 392 1,199 1,164 
Energy and Sustainability Solutions383 378 1,091 1,043 
Corporate and All Other(129)(87)(337)(287)
Total segment profit2,296 2,170 6,589 6,298 
Interest and other financial charges(297)(206)(767)(563)
Interest income
110 89 325 241 
Amortization of acquisition-related intangibles(120)(87)(275)(216)
Impairment of assets held for sale(125) (125) 
Stock compensation expense1
(45)(39)(153)(148)
Pension ongoing income2
145 131 430 391 
Other postretirement income2
3 6 13 19 
Repositioning and other charges3
(52)(88)(189)(331)
Other expense4
(91)(9)(179)(38)
Income before taxes$1,824 $1,967 $5,669 $5,653 
1
Amounts included in Selling, general and administrative expenses.
2
Amounts included in Cost of products and services sold (service cost component), Selling, general and administrative expenses (service cost component), Research and development expenses (service cost component), and Other (income) expense (non-service cost component).
3
Amounts included in Cost of products and services sold, Selling, general and administrative expenses, and Other (income) expense.
4
Amounts include the other components of Other (income) expense not included within other categories in this reconciliation. Equity income of affiliated companies is included in segment profit. 
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(Dollars in tables in millions, except per share amounts)
NOTE 19. SUBSEQUENT EVENTS
On September 30, 2024, the Company acquired 100% of the outstanding equity interests of Air Products' liquefied natural gas process technology and equipment business for total consideration of $1,837 million, net of cash acquired. See Note 3 Acquisitions, Divestitures and Assets and Liabilities Held for Sale for more information.
On October 8, 2024, the Company announced its intention to spin off its Advanced Materials business, which is part of the Energy and Sustainability Solutions reportable business segment, into an independent, U.S. publicly traded company, which is targeted to be completed by the end of 2025 or early 2026. The Company expects to execute the planned spin in a tax-free manner to its shareowners.
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Dollars in tables and graphs in millions, except per share amounts)
The following Management's Discussion and Analysis of Financial Condition and Results of Operations is intended to help the reader understand the results of operations and financial condition of Honeywell International Inc. and its consolidated subsidiaries (Honeywell, we, us, our, or the Company) for the three and nine months ended September 30, 2024. The financial information as of September 30, 2024, should be read in conjunction with the Consolidated Financial Statements for the year ended December 31, 2023, contained in our 2023 Annual Report on Form 10-K. See Note 3 Acquisitions, Divestitures and Assets and Liabilities Held for Sale of Notes to Consolidated Financial Statements for a discussion of acquisition and divestiture activity during the nine months ended September 30, 2024. Certain prior year amounts are reclassified to conform to the current year presentation.
BUSINESS UPDATE
MACROECONOMIC CONDITIONS
We continue to monitor the impacts of ongoing macroeconomic conditions and geopolitical events. Global conflicts, tariffs, labor disruptions, and regulations continue to create volatility in global markets and contribute to supply chain shortages and pricing volatility. Inflationary pressures from earlier tariffs and sanctions are subsiding but the risk of supplier price volatility remains. We continue to actively collaborate with our suppliers to minimize shortages and reduce supply and price volatility. Slowing global growth has temporarily alleviated pressure on logistics, freight, and service capacities.
Our mitigation strategies include pricing actions and hedging strategies, longer term planning for constrained materials, new supplier development, material supply tracking tools, and direct engagement with key suppliers to meet customer demand. Our relationships with primary and secondary suppliers allow us to reliably source key components and raw materials, which include considering altering existing products, developing new products, and committing our own resources to assist certain suppliers. We believe these mitigation strategies enable us to reduce supply risk, accelerate new product innovation, and expand our penetration in the markets we serve. Additionally, due to the strenuous quality controls and product qualification we perform on a new or altered product, we do not expect these mitigation strategies to impact product quality or reliability.
To date, our strategies have successfully mitigated our exposure to these conditions. However, if we are not successful in sustaining or executing these strategies, these macroeconomic conditions could have a material adverse effect on our consolidated results of operations or operating cash flows.
SPIN-OFF OF ADVANCED MATERIALS
On October 8, 2024, the Company announced its intention to spin off its Advanced Materials business into an independent, U.S. publicly traded company, which is targeted to be completed by the end of 2025 or early 2026.The planned spin-off is intended to be a tax-free spin to Honeywell shareowners for U.S. federal income tax purposes. The spin-off will be subject to the satisfaction of a number of customary conditions, including, among others, finalization of the financial statements of the Advanced Materials business, the filing and effectiveness of applicable filings (including a Form 10 registration statement) with the SEC, assurance that the spin-off of the Advanced Materials business will be tax-free to Honeywell’s shareowners, receipt of applicable regulatory approvals and final approval by Honeywell’s Board of Directors. The proposed spin-off is complex in nature, and may be affected by unanticipated developments, credit and equity markets or changes in market conditions.
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RESULTS OF OPERATIONS
Consolidated Financial Results
57
59
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Net Sales by Segment
82
84
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Segment Profit by Segment
113
115
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CONSOLIDATED OPERATING RESULTS
Net Sales
4546
The change in Net sales was attributable to the following:
Q3 2024 vs. Q3 2023
Year to Date 2024 vs. 2023
Volume—%—%
Price3%3%
Foreign currency translation—%—%
Acquisitions, divestitures, and other, net3%1%
 Total % change in Net sales6%4%
A discussion of Net sales by reportable business segment can be found in the Review of Business Segments section of this Management's Discussion and Analysis.
Q3 2024 compared with Q3 2023
Net sales increased due to the following:
Increased pricing and price adjustments to offset inflation, and
Incremental sales from recent acquisitions.
YTD 2024 compared with YTD 2023
Net sales increased due to the following:
Increased pricing and price adjustments to offset inflation, and
Incremental sales from recent acquisitions.
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Cost of Products and Services Sold
3940
Q3 2024 compared with Q3 2023
Cost of products and services sold increased due to the following:
Higher direct and indirect material costs and higher labor costs of approximately $0.2 billion or 4%, and
Incremental costs from recent acquisitions of approximately $0.1 billion or 2%,
Partially offset by higher productivity of approximately $0.1 billion or 2%.
YTD 2024 compared with YTD 2023
Cost of products and services sold increased due to the following:
Higher direct and indirect material costs and higher labor costs of approximately $0.6 billion or 4%, and
Higher sales volumes of lower margin products of approximately $0.3 billion or 2%,
Partially offset by higher productivity of approximately $0.2 billion or 1%.
Gross Margin
473474475
Q3 2024 compared with Q3 2023
Gross margin increased by approximately $0.2 billion and gross margin percentage increased 10 basis points to 38.5% compared to 38.4% for the same period of 2023.
YTD 2024 compared with YTD 2023
Gross margin increased by approximately $0.6 billion and gross margin percentage increased 40 basis points to 38.7% compared to 38.3% for the same period of 2023.
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Research and Development Expenses
891892
Q3 2024 compared with Q3 2023
Research and development expenses were largely unchanged.
YTD 2024 compared with YTD 2023
Research and development expenses were largely unchanged.
Selling, General and Administrative Expenses
110911101111
Q3 2024 compared with Q3 2023
Selling, general and administrative expenses increased due to higher labor costs.
YTD 2024 compared to YTD 2023
Selling, general and administrative expenses increased due to the following:
Higher labor costs of approximately $0.2 billion or 5%, and
Incremental costs from acquisitions of approximately $0.1 billion or 3%,
Partially offset by higher productivity of approximately $0.1 billion or 3%.
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Impairment of Assets Held for Sale
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Impairment of assets held for sale$125 $— $125 $— 
Q3 2024 compared with Q3 2023
An impairment charge was recorded on assets held for sale related to the personal protective equipment business during the three months ended September 30, 2024.
YTD 2024 compared to YTD 2023
An impairment charge was recorded on assets held for sale related to the personal protective equipment business during the nine months ended September 30, 2024.
Other (Income) Expense
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Other (income) expense$(263)$(247)$(740)$(715)
Q3 2024 compared with Q3 2023
Other income increased due primarily to higher interest income.
YTD 2024 compared to YTD 2023
Other income increased due primarily to higher interest income.
Tax Expense
161718
Q3 2024 compared with Q3 2023
The effective tax rate decreased 60 basis-points primarily driven by incremental expense from tax reserve activity and increased benefit from taxes on non-U.S. earnings, partially offset by a nondeductible impairment loss on assets held for sale.
YTD 2024 compared with YTD 2023
The effective tax rate decreased 20 basis-points primarily driven by increased benefits from taxes on non-U.S. earnings and employee share-based compensation, partially offset by a nondeductible impairment loss on assets held for sale.
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Net Income Attributable to Honeywell
414243
Q3 2024 compared to Q3 2023
Earnings per share of common stock–assuming dilution decreased due to the following:
Impairment charges on assets held for sale ($0.19 after tax), and
Higher interest expense ($0.10 after tax),
Partially offset by higher segment profit ($0.15 after tax), and
Lower income tax expense ($0.06 after tax).
YTD 2024 compared with YTD 2023
Earnings per share of common stock–assuming dilution increased due to the following:
Higher segment profit ($0.34 after tax),
Lower repositioning and other charges ($0.16 after tax), and
Lower share count ($0.15 after tax),
Partially offset by higher interest expense ($0.24 after tax), and
Impairment charges on assets held for sale ($0.19 after tax).
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REVIEW OF BUSINESS SEGMENTS
During the first quarter of 2024, the Company realigned certain of its business units as reflected in Note 18 Segment Financial Data, which impacted the composition of its reportable segments. The Company recast historical periods to reflect this change in segment presentation. See Note 18 Segment Financial Data of Notes to Consolidated Financial Statements for further discussion.
We globally manage our business operations through four reportable business segments: Aerospace Technologies, Industrial Automation, Building Automation, and Energy and Sustainability Solutions.
AEROSPACE TECHNOLOGIES
Net Sales
373839
Three Months Ended
September 30,
Nine Months Ended
September 30,
20242023%
Change
20242023%
Change
Net sales$3,912 $3,499 12 %$11,472 $9,951 15 %
Cost of products and services sold2,446 2,140 7,081 6,107 
Selling, general and administrative and other expenses384 391 1,214 1,115 
Segment profit$1,082 $968 12 %$3,177 $2,729 16 %
2024 vs. 2023
Three Months Ended
September 30,
Nine Months Ended
September 30,
Factors Contributing to Year-Over-Year ChangeNet
Sales
Segment
Profit
Net
Sales
Segment
Profit
Organic1
10 %11 %15 %16 %
Foreign currency translation— %— %— %— %
Acquisitions, divestitures, and other, net%%— %— %
Total % change12 %12 %15 %16 %
1
Organic sales % change, presented for all of our reportable business segments, is defined as the change in Net sales, excluding the impact on sales from foreign currency translation and acquisitions, net of divestitures, for the first 12 months following the transaction date. We believe this non-GAAP measure is useful to investors and management in understanding the ongoing operations and analysis of ongoing operating trends.
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Q3 2024 compared to Q3 2023
Sales increased $413 million due to higher organic sales of $176 million in Defense and Space driven by higher sales volumes due to increased shipments and higher organic sales of $124 million in Commercial Aviation Aftermarket driven by increased pricing in air transport. Additionally, the acquisitions of CAES and Civitanavi Systems contributed $59 million to sales in the three months ended September 30, 2024.
Segment profit increased $114 million and segment margin percentage was flat at 27.7% compared to the same period of 2023.
YTD 2024 compared to YTD 2023
Sales increased $1,521 million due to higher organic sales of $629 million in Commercial Aviation Aftermarket driven by higher sales volumes in air transport due to an increase in flight hours and higher organic sales of $588 million in Defense and Space driven by higher sales volumes due to increased shipments.
Segment profit increased $448 million and segment margin percentage increased 30 basis points to 27.7% compared to 27.4% for the same period of 2023.
INDUSTRIAL AUTOMATION
Net Sales
363738
Three Months Ended
September 30,
Nine Months Ended
September 30,
20242023%
Change
20242023%
Change
Net sales$2,501 $2,630 (5)%$7,485 $8,160 (8)%
Cost of products and services sold1,461 1,563  4,358 4,867 
Selling, general and administrative and other expenses532 548  1,668 1,644 
Segment profit$508 $519 (2)%$1,459 $1,649 (12)%
2024 vs. 2023
Three Months Ended
September 30,
Nine Months Ended
September 30,
Factors Contributing to Year-Over-Year ChangeNet
Sales
Segment
Profit
Net
Sales
Segment
Profit
Organic(5)%(2)%(9)%(12)%
Foreign currency translation— %— %— %(1)%
Acquisitions, divestitures, and other, net— %— %%%
Total % change(5)%(2)%(8)%(12)%
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Q3 2024 compared to Q3 2023
Sales decreased $129 million due to lower organic sales of $96 million in Warehouse and Workflow Solutions driven by lower demand for projects and lower organic sales of $47 million in Sensing and Safety Technologies driven by lower demand for personal protective equipment.
Segment profit decreased $11 million and segment margin percentage increased 60 basis points to 20.3% compared to 19.7% for the same period in 2023.
YTD 2024 compared to YTD 2023
Sales decreased $675 million due to lower organic sales of $516 million in Warehouse and Workflow Solutions driven by lower demand for projects and lower organic sales of $137 million in Sensing and Safety Technologies driven by lower demand for personal protective equipment.
Segment profit decreased $190 million and segment margin percentage decreased 70 basis points to 19.5% compared to 20.2% for the same period in 2023.
During the second quarter of 2022, our Productivity Solutions and Services business entered into a license and settlement agreement (the Agreement). Under the Agreement, we received $360 million, paid in equal quarterly installments over eight quarters, beginning with the second quarter of 2022 and ending with the first quarter of 2024. The Agreement provides each party a license to its existing patent portfolio for use by the other party’s existing products and resolved the patent-related litigation between the parties.
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BUILDING AUTOMATION
Net Sales
343536
Three Months Ended
September 30,
Nine Months Ended
September 30,
20242023%
Change
20242023%
Change
Net sales$1,745 $1,530 14 %$4,742 $4,527 %
Cost of products and services sold926 823 2,534 2,412 
Selling, general and administrative and other expenses367 315 1,009 951 
Segment profit$452 $392 15 %$1,199 $1,164 3 %
 
2024 vs. 2023
 Three Months Ended
September 30,
Nine Months Ended
September 30,
Factors Contributing to Year-Over-Year ChangeNet
Sales
Segment
Profit
Net
Sales
Segment
Profit
Organic%(2)%— %(4)%
Foreign currency translation— %— %— %— %
Acquisitions, divestitures, and other, net11 %17 %%%
Total % change14 %15 %5 %3 %
Q3 2024 compared to Q3 2023
Sales increased $215 million due to higher organic sales of $51 million in Building Solutions driven by higher demand for building projects and services. Additionally, the acquisition of Access Solutions contributed $177 million in the three months ended September 30, 2024.
Segment profit increased $60 million and segment margin percentage increased 30 basis points to 25.9% compared to 25.6% for the same period of 2023.
YTD 2024 compared to YTD 2023
Sales increased $215 million due to higher organic sales of $171 million in Building Solutions driven by higher demand for building projects and services, partially offset by lower organic sales of $165 million in Products driven by lower demand. Additionally, the acquisition of Access Solutions contributed $238 million in the nine months ended September 30, 2024.
Segment profit increased $35 million and segment margin percentage decreased 40 basis points to 25.3% compared to 25.7% for the same period of 2023.
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ENERGY AND SUSTAINABILITY SOLUTIONS
Net Sales
505152
Three Months Ended
September 30,
Nine Months Ended
September 30,
20242023%
Change
20242023%
Change
Net sales$1,563 $1,551 %$4,692 $4,579 %
Cost of products and services sold957 977 2,952 2,926  
Selling, general and administrative and other expenses223 196 649 610  
Segment profit$383 $378 1 %$1,091 $1,043 5 %
2024 vs. 2023
Three Months Ended
September 30,
Nine Months Ended
September 30,
Factors Contributing to Year-Over-Year ChangeNet
Sales
Segment
Profit
Net
Sales
Segment
Profit
Organic%%%%
Foreign currency translation— %— %(1)%— %
Acquisitions, divestitures, and other, net— %— %— %— %
Total % change1 %1 %2 %5 %
Q3 2024 compared to Q3 2023
Sales increased $12 million due to higher organic sales of $26 million in Advanced Materials driven by higher demand for specialty chemicals and materials, partially offset by lower organic sales of $15 million in UOP driven by lower gas processing project demand.
Segment profit increased $5 million and segment margin percentage increased 10 basis points to 24.5% compared to 24.4% for the same period of 2023.
YTD 2024 compared to YTD 2023
Sales increased $113 million due to higher organic sales of $153 million in Advanced Materials driven by higher demand for fluorine products, partially offset by lower organic sales of $23 million in UOP driven by lower gas processing project demand.
Segment profit increased $48 million and segment margin percentage increased 50 basis points to 23.3% compared to 22.8% for the same period of 2023.
On October 8, 2024, the Company announced its intention to spin off its Advanced Materials business into an independent, U.S. publicly traded company.
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CORPORATE AND ALL OTHER
Corporate and All Other primarily includes unallocated corporate costs, interest expense on holding-company debt, and the controlling majority-owned interest in Quantinuum. Corporate and All Other is not a separate reportable business segment as segment reporting criteria is not met. The Company continues to monitor the activities in Corporate and All Other to determine the need for further reportable business segment disaggregation.
REPOSITIONING CHARGES
See Note 5 Repositioning and Other Charges of Notes to Consolidated Financial Statements for a discussion of our repositioning actions and related charges incurred in the nine months ended September 30, 2024, and 2023. Cash spending related to our repositioning actions was $145 million in the nine months ended September 30, 2024, and was funded through operating cash flows.
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LIQUIDITY AND CAPITAL RESOURCES
(Dollars in tables in millions)
We manage our businesses to maximize operating cash flows as the primary source of liquidity. Each of our businesses is focused on increasing operating cash flows through revenue growth, margin expansion, and improved working capital turnover. Additional sources of liquidity include U.S. cash balances, and the ability to access non-U.S. cash balances, short-term debt from the commercial paper market, long-term borrowings, committed credit lines, and access to the public debt and equity markets.
CASH
As of September 30, 2024, and December 31, 2023, we held $10.9 billion and $8.1 billion, respectively, of cash and cash equivalents, including our short-term investments. We monitor the third-party depository institutions that hold our cash and cash equivalents on a daily basis. Our emphasis is primarily safety of principal and secondarily maximizing yield of those funds. We diversify our cash and cash equivalents among counterparties to minimize exposure to any one counterparty.
As of September 30, 2024, $6.8 billion of the Company’s cash, cash equivalents, and short-term investments were held by non-U.S. subsidiaries. We do not have material amounts related to any jurisdiction subject to currency control restrictions that impact our ability to access and repatriate such amounts. Under current laws, we do not expect taxes on repatriation or restrictions on amounts held outside of the U.S. to have a material effect on our overall liquidity.
CASH FLOW SUMMARY
Our cash flows from operating, investing, and financing activities, as reflected in the Consolidated Statement of Cash Flows, are summarized as follows:
Nine Months Ended September 30,
20242023Variance
Cash and cash equivalents at beginning of period$7,925 $9,627 $(1,702)
Operating activities
Net income attributable to Honeywell4,420 4,395 25 
Noncash adjustments935 1,112 (177)
Changes in working capital(593)(696)103 
NARCO Buyout payment— (1,325)1,325 
Other operating activities(946)(1,101)155 
Net cash provided by operating activities3,816 2,385 1,431 
Net cash used for investing activities(8,202)(754)(7,448)
Net cash provided by (used for) financing activities7,058 (3,427)10,485 
Effect of foreign exchange rate changes on cash and cash equivalents47 (61)108 
Net increase (decrease) in cash and cash equivalents
2,719 (1,857)4,576 
Cash and cash equivalents at end of period$10,644 $7,770 $2,874 
Nine months ended September 30, 2024
Net cash provided by operating activities was $3,816 million, driven by $4,420 million of Net income attributable to Honeywell, adjusted for $957 million of depreciation and amortization, partially offset by $641 million of other operating activities, driven by higher tax payments, $443 million of pension and other postretirement income, and $329 million of net payments for repositioning and other charges.
Net cash used for investing activities was $8,202 million, driven by $7,047 million of cash paid for acquisitions and $771 million of capital expenditures.
Net cash provided by financing activities was $7,058 million, driven by $10,407 million of proceeds from the issuance of long-term debt, primarily to fund recent acquisitions, and $1,039 million of net proceeds of commercial paper, partially offset by $2,161 million of cash dividends paid, $1,381 million of repayments of long-term debt, and $1,200 million of repurchases of common stock.
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Nine months ended September 30, 2024 compared with nine months ended September 30, 2023
Net cash provided by operating activities increased by $1,431 million, primarily due to the $1,325 million payment made by the Company pursuant to the NARCO Amended Buyout Agreement in 2023.
Net cash used for investing activities increased by $7,448 million, driven by a $6,331 million increase in cash paid for acquisitions, $538 million net increase in investments, and $462 million net increase in cash payments from settlements of derivative contracts.
Net cash provided by financing activities increased by $10,485 million, driven by a $7,422 million increase in proceeds from the issuance of long-term debt, primarily to fund recent acquisitions, $1,796 million increase in net proceeds of commercial paper, and $987 million decrease in repurchases of common stock.
CASH REQUIREMENTS AND ASSESSMENT OF CURRENT LIQUIDITY
In addition to our operating cash requirements, our principal future cash requirements will include funding capital expenditures, share repurchases, dividends, strategic acquisitions, and debt repayments. During the nine months ended September 30, 2024, we repurchased common stock of $1.2 billion. Refer to the section titled Liquidity and Capital Resources of our 2023 Form 10-K for a discussion of our expected capital expenditures, share repurchases, mergers and acquisitions activity, and dividends for 2024.
We continually seek opportunities to improve our liquidity and working capital efficiency, which includes the extension of payment terms with our suppliers and transfer of our trade receivables to unaffiliated financial institutions on a true sale basis. The impact of these programs is not material to our overall liquidity.
We continue to assess the relative strength of each business in our portfolio as to strategic fit, market position, profit, and cash flow contribution in order to identify target investment and acquisition opportunities in order to upgrade our combined portfolio. We identify acquisition candidates that are expected to further our strategic plan and strengthen our existing core businesses. During the nine months ended September 30, 2024, we acquired Access Solutions for total consideration of $4.9 billion, net of cash acquired, CAES Systems Holdings LLC for total consideration of $1.9 billion, net of cash acquired, and Civitanavi Systems S.p.A. for total consideration of $200 million, net of cash acquired. During the fourth quarter of 2024, we acquired Air Products' liquefied natural gas process technology and equipment business for $1.8 billion, net of cash acquired. We also identify businesses that do not fit into our long-term strategic plan based on their market position, relative profitability, or growth potential. These businesses are considered for potential divestiture, restructuring, or other repositioning actions, subject to regulatory constraints. During the third quarter of 2024, we classified the assets and liabilities of the personal protective equipment business as held for sale. See Note 3 Acquisitions, Divestitures and Assets and Liabilities Held for Sale of Notes to Consolidated Financial Statements for additional discussion. In addition, on October 8, 2024, we announced our intention to spin off the Advanced Materials business into an independent, U.S. publicly traded company, which is targeted to be completed by the end of 2025 or early 2026.
In early 2023, we made payments of approximately $1.5 billion in connection with the NARCO Buyout and UOP Matters. Pursuant to the NARCO Amended Buyout Agreement, we received proceeds of $275 million from the HWI Sale during the year ended December 31, 2023. During the nine months ended September 30, 2024, we received $3 million of proceeds from the HWI Sale and may receive additional consideration in future periods if certain conditions under the definitive sale agreement for the HWI Sale are met. These payments and receipts have not materially impacted our liquidity position. See Note 12 Fair Value Measurements of Notes to Consolidated Financial Statements for additional discussion related to the fair value of future proceeds from the HWI Sale.
Based on past performance and current expectations, we believe that our operating cash flows will be sufficient to meet our future operating cash needs. Our available cash, committed credit lines, and access to the public debt and equity markets provide additional sources of short-term and long-term liquidity to fund current operations, debt maturities, and future investment opportunities. During the nine months ended September 30, 2024, our net cash provided by financing activities included proceeds of $10.4 billion from the issuance of long-term debt primarily to fund the Access Solutions, Civitanavi Systems S.p.A., CAES, and LNG acquisitions.
See Note 9 Long-term Debt and Credit Agreements of Notes to Consolidated Financial Statements for additional discussion of items impacting our liquidity.
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BORROWINGS
We leverage a variety of debt instruments to manage our overall borrowing costs. As of September 30, 2024, and December 31, 2023, our total borrowings were $30.8 billion and $20.4 billion, respectively.
September 30, 2024December 31, 2023
Commercial paper$3,134 $2,083 
Variable rate notes22 22 
Fixed rate notes26,651 18,530 
Term loan1,000 — 
Other421 219 
Fair value of hedging instruments(89)(166)
Debt issuance costs
(310)(245)
Total borrowings$30,829 $20,443 
A primary source of liquidity is our ability to access the corporate bond markets. Through these markets, we issue a variety of long-term fixed rate notes, in a variety of currencies, to manage our overall funding costs.
Another primary source of liquidity is our ability to access the commercial paper market. Commercial paper notes are sold at a discount or premium and have a maturity of 365 days or less from date of issuance. Borrowings under the commercial paper program are available for general corporate purposes as well as for financing acquisitions.
We also have the following loan and revolving credit agreements:
A $1.0 billion Fixed Rate Term Loan Credit Agreement (the Fixed Rate Term Loan Credit Agreement) with a syndicate of banks, dated as of August 12, 2024. Amounts borrowed under the Fixed Rate Term Loan Credit Agreement are required to be repaid no later than August 12, 2027, unless the Fixed Rate Term Loan Credit Agreement is terminated earlier pursuant to its terms. As of September 30, 2024, there were $1.0 billion of borrowings outstanding under the Fixed Rate Term Loan Credit Agreement.
A $1.5 billion 364-day credit agreement (the 364-Day Credit Agreement) with a syndicate of banks, dated as of March 18, 2024. Amounts borrowed under the 364-Day Credit Agreement are required to be repaid no later than March 17, 2025, unless (i) we elect to convert all then outstanding amounts into a term loan, upon which such amounts shall be repaid in full on March 17, 2026, or (ii) the 364-Day Credit Agreement is terminated earlier pursuant to its terms. The 364-Day Credit Agreement replaced the previously reported $1.5 billion 364-day credit agreement dated as of March 20, 2023, which was terminated in accordance with its terms effective March 18, 2024. As of September 30, 2024, there were no outstanding borrowings under our 364-Day Credit Agreement.
A $4.0 billion five-year credit agreement (the 5-Year Credit Agreement) with a syndicate of banks, dated as of March 18, 2024. Commitments under the 5-Year Credit Agreement can be increased pursuant to the terms of the 5-Year Credit Agreement to an aggregate amount not to exceed $4.5 billion. The 5-Year Credit Agreement amended and restated the previously reported $4.0 billion amended and restated five-year credit agreement dated as of March 20, 2023. As of September 30, 2024, there were no outstanding borrowings under our 5-Year Credit Agreement.
See Note 9 Long-Term Debt and Credit Agreements of Notes to Consolidated Financial Statements for additional information regarding our debt instruments.
CREDIT RATINGS
Our ability to access the global debt capital markets and the related cost of these borrowings is affected by the strength of our credit rating and market conditions. Our credit ratings are periodically reviewed by the major independent debt-rating agencies. As of September 30, 2024, S&P Global Inc. (S&P), Fitch Ratings Inc. (Fitch), and Moody’s Investor Service (Moody's) have ratings on our debt set forth in the table below:
S&PFitchMoody's
OutlookStableStablePositive
Short-termA-1F1P1
Long-termAAA2
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OTHER MATTERS
LITIGATION
We are subject to a number of lawsuits, investigations, and claims (some of which involve substantial amounts) arising out of the conduct of our business. See Note 15 Commitments and Contingencies of Notes to Consolidated Financial Statements for further discussion of environmental, asbestos, and other litigation matters.
CRITICAL ACCOUNTING ESTIMATES
Other than as noted below, there have been no material changes to our Critical Accounting Estimates presented in our 2023 Annual Report on Form 10-K. For a discussion of the Company’s Critical Accounting Estimates, see the section titled Critical Accounting Estimates in our 2023 Annual Report on Form 10-K.
Goodwill and Indefinite-Lived Intangible Assets Impairment Testing—The Company’s business combinations typically result in the recognition of goodwill and intangible assets. The Company generally engages an independent third-party valuation specialist for assistance in the allocation of the purchase price and determination of the fair value of goodwill and intangible assets, which involves the use of accounting estimates and assumptions based on information available at or near the acquisition date. The Company believes the accounting estimates and assumptions are reasonable based on information available at the date of acquisition through historical experience and information obtained from management of the acquired entity; however, there is inherent uncertainty in the accounting estimates as assumptions are forward looking and could be affected by future economic and market conditions.
Goodwill and intangible assets deemed to have indefinite lives are not amortized, but are subject to annual, or more frequent if necessary, impairment testing. In testing goodwill and indefinite-lived intangible assets, the fair value is estimated utilizing a discounted cash flow approach, including strategic and annual operating plans, adjusted for terminal value assumptions. These impairment tests involve the use of accounting estimates and assumptions, and changes to those assumptions could materially impact our financial condition or operating performance if actual results differ from such accounting estimates and assumptions. To address this uncertainty, we perform sensitivity analyses on key accounting estimates and assumptions. Once the fair value is determined, if the carrying amount exceeds the fair value, it is impaired. Any impairment is measured as the difference between the carrying amount and its fair value.
Definite-Lived Intangible Assets—The Company’s business combinations typically result in the recognition of customer relationships, patents, and trademarks, in addition to other definite-lived intangible assets. The determination of fair value for definite-lived intangible assets, useful lives (for depreciation / amortization purposes) and whether or not intangible assets are impaired involves the use of accounting estimates and assumptions. The assumptions used in developing the accounting estimates may include business growth rates, sales volume, selling prices and costs, cash flows, and the discount rate selected and changes to those assumptions could materially impact our financial condition or operating performance if actual results differ from such estimates and assumptions.
We evaluate the recoverability of the carrying amount of our definite-lived intangible assets whenever events or changes in circumstances indicate that the carrying amount of a definite-lived intangible asset group may not be fully recoverable. The principal factors in considering when to perform an impairment review are as follows:
•    Significant under-performance (i.e., declines in sales, earnings, or cash flows) of a business or product line in relation to expectations;
•    Annual operating plans or strategic plan outlook that indicates an unfavorable trend in operating performance of a business or product line;
•    Significant negative industry or economic trends; or
•    Significant changes or planned changes in our use of the assets.
Once it is determined that an impairment review is necessary, recoverability of assets is measured by comparing the carrying amount of the asset group to the estimated future undiscounted cash flows. If the carrying amount exceeds the estimated future undiscounted cash flows, impairment is then measured as the excess, if any, of the carrying amount of the asset group over its fair value.
The fair value estimates are subject to changes in the economic environment, including market interest rates and expected volatility. Management believes the estimates of future cash flows and fair values are reasonable; however, changes in estimates due to variances from assumptions could materially affect the valuations.
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RECENT ACCOUNTING PRONOUNCEMENTS
See Note 2 Summary of Significant Accounting Policies of Notes to Consolidated Financial Statements for a discussion of recent accounting pronouncements.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKS
For a discussion of the Company’s quantitative and qualitative disclosures about market risks, see the section titled Quantitative and Qualitative Disclosures About Market Risks in our 2023 Annual Report on Form 10-K. As of September 30, 2024, there has been no material change in this information.
ITEM 4. CONTROLS AND PROCEDURES
Honeywell management, including the Chief Executive Officer and Chief Financial Officer, conducted an evaluation of the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) or 15d-15(e) promulgated under the Securities Exchange Act of 1934, as amended (Exchange Act)) as of the end of the period covered by this Quarterly Report on Form 10-Q. Based upon that evaluation, the Chief Executive Officer and the Chief Financial Officer concluded that such disclosure controls and procedures were effective as of the end of the period covered by this Quarterly Report on Form 10-Q to ensure information required to be disclosed in the reports that Honeywell files or submits under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC's rules and forms, and that it is accumulated and communicated to our management, including our Chief Executive Officer, our Chief Financial Officer, and our Controller, as appropriate, to allow timely decisions regarding required disclosure. There were no changes that materially affected, or are reasonably likely to materially affect, Honeywell’s internal control over financial reporting that occurred during the period covered by this Quarterly Report on Form 10-Q.
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PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
We are subject to a number of lawsuits, investigations, and claims (some of which involve substantial amounts) arising out of the conduct of our business. See a discussion of environmental, asbestos, and other litigation matters in Note 15 Commitments and Contingencies of Notes to Consolidated Financial Statements.
There were no matters requiring disclosure pursuant to the requirement to disclose certain environmental matters involving potential monetary sanctions in excess of $300,000.
ITEM 1A. RISK FACTORS
Other than as noted below, there have been no material changes to our Risk Factors presented in our 2023 Annual Report on Form 10-K under the section titled Risk Factors. For further discussion of our Risk Factors, refer to the section titled Risk Factors in our 2023 Annual Report on Form 10-K.
The Company is subject to risks related to its plan to spin off its Advanced Materials business into a standalone, publicly traded company.
On October 8, 2024, the Company announced its intent to spin off its Advanced Materials business, which is part of its Energy and Sustainability Solutions reportable business segment, into an independent, U.S. publicly traded company, in a transaction that is intended to be tax-free for the Company’s shareowners for U.S. federal income tax purposes. The spin-off will be subject to the satisfaction of a number of customary conditions, including, among others, finalization of the financial statements of the Advanced Materials business, the filing and effectiveness of applicable filings (including a Form 10 registration statement) with the SEC, assurance that the spin-off of the Advanced Materials business will be tax-free to Honeywell’s shareowners, receipt of applicable regulatory approvals and final approval by Honeywell’s Board of Directors. The failure to satisfy all of the required conditions, as well as additional factors such as conditions in the equity and debt markets, other external conditions, and developments or challenges involving the intended spin-off, the Company or any of its businesses, many of which are outside of the Company’s control, could delay the completion of the spin-off relative to the anticipated timeline or prevent it from occurring. These or other unanticipated developments could delay or prevent the proposed spin-off or cause the proposed spin-off to occur on terms or conditions that are less favorable than anticipated, including without limitation, the failure to qualify as tax-free to our shareowners (which could result in significant income tax liabilities to the Company and/or its shareholders), and the inability of the spun-off company to incur sufficient indebtedness to allow for a distribution to Honeywell of proceeds concurrently with the consummation of the spin-off. Furthermore, if the spin-off is completed, there is no guarantee that it will be successful in meeting its objectives or achieving its intended benefits. Whether or not the spin-off is ultimately completed, the Company and our business may face challenges as a result of the transaction, including potential business disruption; the diversion of management’s time; and potential negative impacts on the Company’s relationships with its customers, employees, regulators and other counterparties. Any of these factors could negatively impact our business, financial condition, results of operations, cash flows, and the price of our common stock.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
On April 24, 2023, the Board of Directors authorized the repurchase of up to $10 billion of Honeywell common stock, including approximately $2.1 billion of remaining availability under the previously announced $10 billion share repurchase authorization. The repurchase authorization does not have an expiration date and may be amended or terminated by the Board of Directors at any time without prior notice.
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Repurchases may be made through a variety of methods, which could include open market purchases, accelerated share repurchase transactions, negotiated block transactions, 10b5-1 plans, other transactions that may be structured through investment banking institutions or privately negotiated, or a combination of the foregoing. Honeywell presently expects to repurchase outstanding shares from time to time (i) to offset the dilutive impact of employee stock-based compensation plans, including option exercises, restricted unit vesting, and matching contributions under our savings plans, and (ii) to reduce share count via share repurchases as and when attractive opportunities arise. The amount and timing of future repurchases may vary depending on market conditions and the level of operating, financing, and other investing activities.
During the three months ended September 30, 2024, no shares were repurchased by the Company. As of September 30, 2024, $5.9 billion remained available for additional share repurchases. The following table summarizes our purchases of Honeywell's common stock for the three months ended September 30, 2024:
Issuer Purchases of Equity Securities
PeriodTotal
Number of
Shares
Purchased
Average
Price Paid
per Share
Total Number
of Shares
Purchased as
Part of Publicly
Announced
Plans
or Programs
Approximate Dollar
Value of Shares that
May Yet Be
Purchased Under Plans or
Programs
(Dollars in millions)
June 30, 2024 - July 27, 2024$—$5,904
July 28, 2024 - Aug 24, 2024$—$5,904
Aug 25, 2024 - Sep 28, 2024
$—$5,904
ITEM 4. MINE SAFETY DISCLOSURES
One of our wholly-owned subsidiaries has a placer claim for and operates a chabazite ore surface mine in Arizona. Information concerning mine safety and other regulatory matters associated with this mine is required by Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K and is included in Exhibit 95 to this quarterly report.
ITEM 5. OTHER INFORMATION
EQUITY TRADING ARRANGEMENTS ELECTIONS
Certain executive officers and directors of the Company may execute purchases and sales of the Company's common stock through Rule 10b5-1 and non-Rule 10b5-1 equity trading arrangements.
During the three months ended September 30, 2024, none of our executive officers or directors adopted, terminated, or modified a "Rule 10b5-1 trading arrangement," or adopted, terminated, or modified any "non-Rule 10b5-1 trading arrangement" (each as defined in Item 408 of Regulation S-K).
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ITEM 6. EXHIBITS
Exhibit No. Description
10.1
10.2
31.1 
31.2 
32.1 
32.2 
95
101.INSInline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document)
101.SCHInline XBRL Taxonomy Extension Schema (filed herewith)
101.CALInline XBRL Taxonomy Extension Calculation Linkbase (filed herewith)
101.DEFInline XBRL Taxonomy Extension Definition Linkbase (filed herewith)
101.LABInline XBRL Taxonomy Extension Label Linkbase (filed herewith)
101.PREInline XBRL Taxonomy Extension Presentation Linkbase (filed herewith)
104Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)

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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 HONEYWELL INTERNATIONAL INC.
   
Date: October 24, 2024By:/s/ Robert D. Mailloux
  Robert D. Mailloux
Vice President and Controller
(on behalf of the Registrant
and as the Registrant’s
Principal Accounting Officer)
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