--- ticker: HON company: Honeywell International Inc. filing_type: 10-K year_current: 2025 year_prior: 2024 risks_added: 40 risks_removed: 22 risks_modified: 87 risks_unchanged: 67 source: SEC EDGAR url: https://riskdiff.com/hon/2025-vs-2024/ markdown_url: https://riskdiff.com/hon/2025-vs-2024/index.md generated: 2026-06-01 --- # Honeywell International Inc.: 10-K Risk Factor Changes 2025 vs 2024 > Source: U.S. Securities and Exchange Commission (EDGAR) > Generated: 2026-06-01 > All data extracted directly from official filings. No hallucinated content. ## Summary | Status | Count | |--------|-------| | New risks added | 40 | | Risks removed | 22 | | Risks modified | 87 | | Unchanged | 67 | --- ## New in Current Filing: The Company is subject to risks related to its plans to separate Automation and Aerospace Technologies and to spin off its Advanced Materials business into standalone, publicly traded companies. The Company has previously announced its intent to (i) spin off its Advanced Materials business, which is part of its Energy and Sustainability Solutions reportable business segment (the "AM Spin-off"), and (ii) separate its Aerospace Technologies segment from Automation, which will comprise its Industrial Automation, the Building Automation, and the remainder of the Energy and Sustainability Solutions segments (the "Automation and Aerospace Separation"), into standalone, publicly traded companies, in transactions that are intended to be tax-free for the Company's shareowners for U.S. federal income tax purposes (together, the "Separations"). The AM Spin-off is expected to continue concurrent with the Automation and Aerospace Separation. Each of the Separations will be subject to the satisfaction of a number of customary conditions, including, among others, finalization of applicable financial statements, the filing and effectiveness of applicable filings (including Form 10 registration statements) with the SEC, assurance that the transactions will be tax-free to Honeywell's shareowners, receipt of applicable regulatory and other customary approvals, and final approval by Honeywell's Board of Directors. The failure to satisfy all of the required conditions for either Separation, as well as additional factors such as conditions in the equity and debt markets and other external conditions, including, but not limited to, shareowner actions or challenges relating to either Separation or to other aspects of the Company's business or strategy, many of which are outside of the Company's control, could delay the completion of one or both of the Separations relative to their respective anticipated timelines or prevent one or both from occurring. These or other unanticipated developments could also cause one or both of the Separations to occur on terms or conditions that are less favorable than anticipated. Furthermore, there is no guarantee that either of the Separations, if completed, will be successful in meeting its objectives or achieving its intended benefits. Whether or not the Separations are ultimately completed, the Company and our business may face challenges, including as a result of actions or challenges from shareowners, including activist shareowners, that may not be aligned with our business strategies or the interests of our other shareowners, 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, which may exhibit significant fluctuations based on temporary or speculative market perceptions or other factors that do not necessarily reflect the fundamental underlying value of our business or of the standalone, publicly traded companies that would be formed following the planned Separations. 30 Honeywell International Inc. 30 Honeywell International Inc. 30 Honeywell International Inc. TABLE OF CONTENTSRISK FACTORS TABLE OF CONTENTSRISK FACTORS TABLE OF CONTENTS --- ## New in Current Filing: Karen Mattimore, 58 2020 Ken West, 47 2024 46 Honeywell International Inc. 46 Honeywell International Inc. 46 Honeywell International Inc. TABLE OF CONTENTS TABLE OF CONTENTS TABLE OF CONTENTS --- ## New in Current Filing: (Dollars in millions)1 49 Honeywell International Inc. 49 Honeywell International Inc. 49 Honeywell International Inc. TABLE OF CONTENTSMARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES TABLE OF CONTENTSMARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES TABLE OF CONTENTS PERFORMANCE GRAPH The following graph compares the five-year cumulative total return on our common stock to the total returns on the Standard & Poor's (S&P) 500 Stock Index, composite of S&P's Industrial Conglomerates and Aerospace and Defense indices, on a 55%/45% weighted basis (the Composite Index) and Nasdaq Industrial Select Sector (XLI Index). The weighting of the components of the Composite Index are based on our segments' relative contribution to total segment profit. The selection of the Industrial Conglomerates component of the Composite Index reflects the diverse and distinct range of non-aerospace businesses conducted by Honeywell. The annual changes for the five-year period shown in the graph are based on the assumption that $100 was invested in Honeywell stock and each index on December 31, 2019, and that all dividends were reinvested. --- ## New in Current Filing: USE OF ESTIMATES In preparation of the consolidated financial statements in accordance with generally accepted accounting principles, the Company makes certain estimates and assumptions in determining the amounts reflected in the financial statements and the related notes. Actual results could differ from those estimates. --- ## New in Current Filing: RECLASSIFICATIONS Certain prior year amounts are reclassified to conform to the current year presentation. During the first quarter of 2024, the Company realigned certain of its business units as reflected in Note 22 Segment Financial Data, which impacted the composition of its reportable segments. The Company recast historical periods to reflect this change in segment presentation. --- ## New in Current Filing: (Dollars in tables in millions, except per share amounts) In September 2022, the FASB issued ASU 2022-04, Liabilities - Supplier Finance Programs (Topic 405): Disclosure of Supplier Finance Program Obligations, to enhance the transparency of supplier finance programs. The new standard requires annual disclosure of the key terms of the program, a description of where in the financial statements amounts outstanding under the program are presented, a rollforward of such amounts, and interim disclosure of amounts outstanding as of the end of each period. The guidance does not affect recognition, measurement, or financial statement presentation of supplier finance programs. The ASU was effective on January 1, 2023, except for the rollforward, which was effective on January 1, 2024. The Company adopted this guidance on January 1, 2023, with the exception of the rollforward adopted on January 1, 2024. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. --- ## New in Current Filing: (Dollars in tables in millions, except per share amounts) In September 2022, the FASB issued ASU 2022-04, Liabilities - Supplier Finance Programs (Topic 405): Disclosure of Supplier Finance Program Obligations, to enhance the transparency of supplier finance programs. The new standard requires annual disclosure of the key terms of the program, a description of where in the financial statements amounts outstanding under the program are presented, a rollforward of such amounts, and interim disclosure of amounts outstanding as of the end of each period. The guidance does not affect recognition, measurement, or financial statement presentation of supplier finance programs. The ASU was effective on January 1, 2023, except for the rollforward, which was effective on January 1, 2024. The Company adopted this guidance on January 1, 2023, with the exception of the rollforward adopted on January 1, 2024. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. --- ## New in Current Filing: Air Products' Liquefied Natural Gas Process Technology and Equipment Business On September 30, 2024, the Company acquired 100% of the outstanding equity interests of Air Products' liquefied natural gas process technology and equipment business (LNG), strengthening the Company's energy transition portfolio, for total consideration of $1,837 million, net of cash acquired. The business is included within the Energy and Sustainability Solutions reportable business segment. The following table summarizes the preliminary determination of the fair value of identifiable assets acquired and liabilities assumed that are included in the Consolidated Balance Sheet as of December 31, 2024: Current assets$79 Intangible assets931 Other noncurrent assets53 Current liabilities(100)Noncurrent liabilities (2)Net assets acquired961 Goodwill876 Purchase price$1,837 The LNG identifiable intangible assets primarily include customer relationships and technology which will amortize over their estimated useful lives ranging from four to 20 years using accelerated amortization methods. The goodwill is deductible for tax purposes. As of December 31, 2024, the purchase accounting is subject to final adjustment, primarily for the valuation of intangible assets, amounts allocated to goodwill, working capital adjustments, and tax balances. four 62 Honeywell International Inc. 62 Honeywell International Inc. 62 Honeywell International Inc. TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATAHONEYWELL INTERNATIONAL INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)(Dollars in tables in millions, except per share amounts) TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTS --- ## New in Current Filing: CAES Systems Holdings LLC On August 30, 2024, the Company acquired 100% of the outstanding equity interests of CAES Systems Holdings LLC (CAES), enhancing the Company's defense and space portfolio with high-reliability radio frequency technologies, for total consideration of $1,930 million, net of cash acquired. The business is included within the Aerospace Technologies reportable business segment. The following table summarizes the preliminary determination of the fair value of identifiable assets acquired and liabilities assumed that are included in the Consolidated Balance Sheet as of December 31, 2024: Current assets$324 Intangible assets1,205 Other noncurrent assets182 Current liabilities(124)Noncurrent liabilities (167)Net assets acquired1,420 Goodwill553 Purchase price$1,973 The CAES identifiable intangible assets primarily include customer relationships and trademarks which will amortize over their estimated useful lives ranging from two to 15 years using straight line and accelerated amortization methods. The goodwill is not deductible for tax purposes. As of December 31, 2024, the purchase accounting for CAES is subject to final adjustment, primarily for the valuation of intangible assets, amounts allocated to goodwill, working capital adjustments, and tax balances. two --- ## New in Current Filing: Civitanavi Systems S.p.A. On August 19, 2024, the Company completed the acquisition of Civitanavi Systems S.p.A., a leader in position navigation and timing technology for the aerospace, defense, and industrial markets, for total consideration of $200 million, net of cash acquired. The business is included within the Aerospace Technologies reportable business segment. The assets and liabilities acquired with Civitanavi Systems S.p.A. are included in the Consolidated Balance Sheet as of December 31, 2024, including $75 million of intangible assets and $107 million of goodwill, which is not deductible for tax purposes. As of December 31, 2024, the purchase accounting is subject to final adjustment, primarily for the valuation of intangible assets, amounts allocated to goodwill, and tax balances. --- ## New in Current Filing: Carrier Global Corporation's Global Access Solutions Business On June 3, 2024, the Company acquired 100% of the outstanding equity interests of Carrier Global Corporation's Global Access Solutions business (Access Solutions), an innovative global leader in advanced access and security solutions, electronic locking systems, and contactless mobile key solutions, for total consideration of $4,913 million, net of cash acquired. The business is included in the Building Automation reportable business segment. The following table summarizes the preliminary determination of the fair value of identifiable assets acquired and liabilities assumed that are included in the Consolidated Balance Sheet as of December 31, 2024: Current assets$247 Intangible assets2,050 Other noncurrent assets20 Current liabilities(140)Noncurrent liabilities (6)Net assets acquired2,171 Goodwill2,827 Purchase price$4,998 The Access Solutions identifiable intangible assets primarily include customer relationships, technology, and trademarks which will amortize over their estimated useful lives ranging from 10 to 20 years using straight line and accelerated amortization methods. The majority of the goodwill is deductible for tax purposes. As of December 31, 2024, the purchase accounting for Access Solutions is subject to final adjustment, primarily for the valuation of intangible assets, amounts allocated to goodwill, and tax balances. 63 Honeywell International Inc. 63 Honeywell International Inc. 63 Honeywell International Inc. TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATAHONEYWELL INTERNATIONAL INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)(Dollars in tables in millions, except per share amounts) TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTS --- ## New in Current Filing: Compressor Controls Corporation On June 30, 2023, the Company acquired 100% of the outstanding equity interests of Compressor Controls Corporation, a turbomachinery services and controls company based in the United States, for total cash consideration of $673 million, net of cash acquired. The business is included in the Industrial Automation reportable business segment. The Company finalized the evaluation for the fair value of all the assets and liabilities acquired with Compressor Controls Corporation during the second quarter of 2024. Management recorded intangible assets of $282 million and allocated $351 million to goodwill, which is deductible for tax purposes. --- ## New in Current Filing: US Digital Designs, Inc. On January 18, 2022, the Company acquired 100% of the issued and outstanding shares of US Digital Designs, Inc., a leading provider of technologies for first responders, for total consideration of $186 million. The business is included within the Building Automation reportable business segment. The Company finalized the evaluation for the fair value of all the assets and liabilities acquired with US Digital Designs, Inc. during the first quarter of 2023. Management recorded intangible assets of $53 million and allocated $129 million to goodwill, which is deductible for tax purposes. --- ## New in Current Filing: DIVESTITURES During 2024 and 2023, there were no significant divestitures individually or in the aggregate. On February 6, 2025, the Company announced its intention to pursue a separation of its Automation and Aerospace Technologies businesses into independent, U.S. publicly traded companies, which is targeted to be completed in the second half of 2026. The planned separation is intended to be a tax-free separation to Honeywell shareowners for U.S. federal income tax purposes. The separation will be subject to the satisfaction of a number of customary conditions, including, among others, finalization of the financial statements of the Automation and Aerospace Technologies businesses, the filing and effectiveness of applicable filings (including a Form 10 registration statement) with the SEC, assurance that the separation of the businesses will be tax-free to Honeywell's shareowners, receipt of applicable regulatory approvals, and final approval by Honeywell's Board of Directors. The proposed separation is complex in nature, and may be affected by unanticipated developments, credit and equity markets, or changes in market conditions. 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. In conjunction with the wind down of the Company's businesses and operations in Russia, during 2022 the Company completed the sale of three entities domiciled in Russia in exchange for gross cash consideration of less than $1 million. The Company recognized a pre-tax gain of $22 million, which was recorded in Other (income) expense in the Consolidated Statement of Operations, driven by favorable foreign currency cumulative translation adjustment positions in the entities at the time of sale. The financial results of the entities were previously included in the historical Performance Materials and Technologies, Honeywell Building Technologies, and Safety and Productivity Solutions reportable business segments. 64 Honeywell International Inc. 64 Honeywell International Inc. 64 Honeywell International Inc. TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATAHONEYWELL INTERNATIONAL INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)(Dollars in tables in millions, except per share amounts) TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTS --- ## New in Current Filing: ASSETS AND LIABILITIES HELD FOR SALE During the third quarter of 2024, the Company concluded the assets and liabilities of the personal protective equipment (PPE) business, which is part of the Sensing and Safety Technologies business unit within the Industrial Automation reportable business segment, met the held for sale criteria; therefore, the Company presented the associated assets and liabilities of the business as held for sale as of September 30, 2024. On November 22, 2024, the Company announced it reached an agreement to sell its PPE business for $1,325 million in an all-cash transaction. The transaction is expected to be completed in the first half of 2025 and is subject to customary closing conditions. The disposal group, consisting of the associated assets and liabilities, is measured at the lower of carrying value or fair value less costs to sell. Depreciation and amortization expense is not recorded for the period in which assets are classified as held for sale. The carrying amount of any assets, including goodwill, that are part of the disposal group, but not in the scope of Accounting Standards Codification (ASC) 360-10, Property, Plant, and Equipment, are tested for impairment under the relevant guidance prior to measuring the disposal group at fair value, less costs to sell. The Company performed an evaluation as of December 31, 2024, to assess the recoverability of the carrying value of the assets held for sale. The Company recognized a valuation allowance of $219 million during the twelve months ended December 31, 2024, to write down the disposal group to fair value, less costs to sell. The carrying value is based on the use of estimates and is subject to change based on future developments leading up to the closing date of a sale, and actual amounts realized upon sale may vary from those recorded as of December 31, 2024. The following table summarizes the assets and liabilities classified as held for sale in the Consolidated Balance Sheet: December 31, 2024Assets held for saleAccounts receivable$174 Inventories197 Other current assets29 Investments and long-term receivables4 Property, plant and equipment - net155 Goodwill411 Other intangible assets - net597 Other assets17 Valuation allowance on assets held for sale(219)Total Assets held for sale$1,365 Liabilities held for saleAccounts payable$152 Accrued liabilities110 Deferred income taxes124 Other liabilities22 Total Liabilities held for sale$408 --- ## New in Current Filing: Assets held for sale Accounts receivable Inventories Other current assets Investments and long-term receivables Property, plant and equipment - net Goodwill Other intangible assets - net Other assets Valuation allowance on assets held for sale --- ## New in Current Filing: Liabilities held for sale Accounts payable Accrued liabilities Deferred income taxes Other liabilities --- ## New in Current Filing: Total Liabilities held for sale 65 Honeywell International Inc. 65 Honeywell International Inc. 65 Honeywell International Inc. TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATAHONEYWELL INTERNATIONAL INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)(Dollars in tables in millions, except per share amounts) TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTS --- ## New in Current Filing: (Dollars in tables in millions, except per share amounts) In September 2022, the FASB issued ASU 2022-04, Liabilities - Supplier Finance Programs (Topic 405): Disclosure of Supplier Finance Program Obligations, to enhance the transparency of supplier finance programs. The new standard requires annual disclosure of the key terms of the program, a description of where in the financial statements amounts outstanding under the program are presented, a rollforward of such amounts, and interim disclosure of amounts outstanding as of the end of each period. The guidance does not affect recognition, measurement, or financial statement presentation of supplier finance programs. The ASU was effective on January 1, 2023, except for the rollforward, which was effective on January 1, 2024. The Company adopted this guidance on January 1, 2023, with the exception of the rollforward adopted on January 1, 2024. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. --- ## New in Current Filing: DEFERRED TAX ASSETS (LIABILITIES) The tax effects of temporary differences and tax carryforwards which give rise to future income tax benefits and payables are as follows: Deferred tax assetsDecember 31,20242023Postretirement benefits other than pensions$50 $55 Asbestos and environmental373 405 Capitalized research and development947 582 Employee compensation and benefits143 148 Lease liabilities263 258 Other accruals and reserves396 196 Net operating losses618 687 Capital loss carryover and outside basis differences467 385 Tax credit carryforwards and other attributes269 420 Gross deferred tax assets3,526 3,136 Valuation allowance(1,253)(1,292)Total deferred tax assets2,273 1,844 Deferred tax liabilitiesDeferred revenue(244) - Pension(1,485)(1,132)Property, plant and equipment(371)(441)Right-of-use asset(242)(240)Intangibles(679)(817)Unremitted earnings of foreign subsidiaries(516)(542)Other asset basis differences(285)(369)Other - (5)Total deferred tax liabilities(3,822)(3,546)Net deferred tax liability1$(1,549)$(1,702)1As of December 31, 2024, Net deferred tax liability excludes $124 million that are included in Liabilities held for sale in the Consolidated Balance Sheet. Refer to Note 2 Acquisitions, Divestitures, and Assets and Liabilities Held for Sale. Property, plant and equipment --- ## New in Current Filing: (Dollars in tables in millions, except per share amounts) In September 2022, the FASB issued ASU 2022-04, Liabilities - Supplier Finance Programs (Topic 405): Disclosure of Supplier Finance Program Obligations, to enhance the transparency of supplier finance programs. The new standard requires annual disclosure of the key terms of the program, a description of where in the financial statements amounts outstanding under the program are presented, a rollforward of such amounts, and interim disclosure of amounts outstanding as of the end of each period. The guidance does not affect recognition, measurement, or financial statement presentation of supplier finance programs. The ASU was effective on January 1, 2023, except for the rollforward, which was effective on January 1, 2024. The Company adopted this guidance on January 1, 2023, with the exception of the rollforward adopted on January 1, 2024. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. --- ## New in Current Filing: Total Inventories1 1 As of December 31, 2024, Total Inventories excludes $197 million that are included in Assets held for sale in the Consolidated Balance Sheet. Refer to Note 2 Acquisitions, Divestitures, and Assets and Liabilities Held for Sale. NOTE 7. PROPERTY, PLANT AND EQUIPMENT - NET December 31,20242023Land and improvements$216 $211 Machinery and equipment10,965 10,717 Buildings and improvements3,658 3,528 Construction in progress1,013 878 Total Property, plant and equipment15,852 15,334 Less: Accumulated depreciation9,658 9,674 Total Property, plant and equipment - net1$6,194 $5,660 1As of December 31, 2024, Total Property, plant and equipment - net excludes $155 million that are included in Assets held for sale in the Consolidated Balance Sheet. Refer to Note 2 Acquisitions, Divestitures, and Assets and Liabilities Held for Sale. --- ## New in Current Filing: Total Property, plant and equipment - net1 1 As of December 31, 2024, Total Property, plant and equipment - net excludes $155 million that are included in Assets held for sale in the Consolidated Balance Sheet. Refer to Note 2 Acquisitions, Divestitures, and Assets and Liabilities Held for Sale. Depreciation expense was $671 million, $659 million, and $657 million for the years ended December 31, 2024, 2023, and 2022, respectively. 76 Honeywell International Inc. 76 Honeywell International Inc. 76 Honeywell International Inc. TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATAHONEYWELL INTERNATIONAL INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)(Dollars in tables in millions, except per share amounts) TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTS --- ## New in Current Filing: (Dollars in tables in millions, except per share amounts) In September 2022, the FASB issued ASU 2022-04, Liabilities - Supplier Finance Programs (Topic 405): Disclosure of Supplier Finance Program Obligations, to enhance the transparency of supplier finance programs. The new standard requires annual disclosure of the key terms of the program, a description of where in the financial statements amounts outstanding under the program are presented, a rollforward of such amounts, and interim disclosure of amounts outstanding as of the end of each period. The guidance does not affect recognition, measurement, or financial statement presentation of supplier finance programs. The ASU was effective on January 1, 2023, except for the rollforward, which was effective on January 1, 2024. The Company adopted this guidance on January 1, 2023, with the exception of the rollforward adopted on January 1, 2024. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. --- ## New in Current Filing: Total Other intangible assets - net1 1 As of December 31, 2024, Total Other intangible assets - net excludes net carrying amount of $116 million of customer relationships and net carrying amount of $481 million of indefinite-life trademarks that are included in Assets held for sale in the Consolidated Balance Sheet. Refer to Note 2 Acquisitions, Divestitures, and Assets and Liabilities Held for Sale. 2 An impairment charge of $48 million was recorded on indefinite-lived intangible assets related to the personal protective equipment business during year ended December 31, 2024. Intangible assets amortization expense includes $415 million, $292 million, and $333 million for the years ended December 31, 2024, 2023, and 2022, respectively. Estimated future intangible asset amortization expense for each of the next five years for intangible assets recorded as of December 31, 2024, is as follows: December 31, 20242025$484 2026495 2027504 2028495 2029481 77 Honeywell International Inc. 77 Honeywell International Inc. 77 Honeywell International Inc. TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATAHONEYWELL INTERNATIONAL INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)(Dollars in tables in millions, except per share amounts) TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTS --- ## New in Current Filing: (Dollars in tables in millions, except per share amounts) In September 2022, the FASB issued ASU 2022-04, Liabilities - Supplier Finance Programs (Topic 405): Disclosure of Supplier Finance Program Obligations, to enhance the transparency of supplier finance programs. The new standard requires annual disclosure of the key terms of the program, a description of where in the financial statements amounts outstanding under the program are presented, a rollforward of such amounts, and interim disclosure of amounts outstanding as of the end of each period. The guidance does not affect recognition, measurement, or financial statement presentation of supplier finance programs. The ASU was effective on January 1, 2023, except for the rollforward, which was effective on January 1, 2024. The Company adopted this guidance on January 1, 2023, with the exception of the rollforward adopted on January 1, 2024. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. --- ## New in Current Filing: 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 4.37% 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 December 31, 2024, there were $1.0 billion of borrowings outstanding under the Fixed Rate Term Loan Credit Agreement. 79 Honeywell International Inc. 79 Honeywell International Inc. 79 Honeywell International Inc. TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATAHONEYWELL INTERNATIONAL INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)(Dollars in tables in millions, except per share amounts) TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTS --- ## New in Current Filing: (Dollars in tables in millions, except per share amounts) In September 2022, the FASB issued ASU 2022-04, Liabilities - Supplier Finance Programs (Topic 405): Disclosure of Supplier Finance Program Obligations, to enhance the transparency of supplier finance programs. The new standard requires annual disclosure of the key terms of the program, a description of where in the financial statements amounts outstanding under the program are presented, a rollforward of such amounts, and interim disclosure of amounts outstanding as of the end of each period. The guidance does not affect recognition, measurement, or financial statement presentation of supplier finance programs. The ASU was effective on January 1, 2023, except for the rollforward, which was effective on January 1, 2024. The Company adopted this guidance on January 1, 2023, with the exception of the rollforward adopted on January 1, 2024. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. --- ## New in Current Filing: (Dollars in tables in millions, except per share amounts) In September 2022, the FASB issued ASU 2022-04, Liabilities - Supplier Finance Programs (Topic 405): Disclosure of Supplier Finance Program Obligations, to enhance the transparency of supplier finance programs. The new standard requires annual disclosure of the key terms of the program, a description of where in the financial statements amounts outstanding under the program are presented, a rollforward of such amounts, and interim disclosure of amounts outstanding as of the end of each period. The guidance does not affect recognition, measurement, or financial statement presentation of supplier finance programs. The ASU was effective on January 1, 2023, except for the rollforward, which was effective on January 1, 2024. The Company adopted this guidance on January 1, 2023, with the exception of the rollforward adopted on January 1, 2024. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. --- ## New in Current Filing: Other assets1 Other assets 1 Accrued liabilities Accrued liabilities Other liabilities Other liabilities --- ## New in Current Filing: Total operating lease liabilities2 Property, plant and equipment - net Property, plant and equipment - net Current maturities of long-term debt Current maturities of long-term debt Long-term debt Long-term debt 1 As of December 31, 2024, Other assets excludes $16 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 2 Acquisitions, Divestitures, and Assets and Liabilities Held for Sale. As of December 31, 2024, Total operating lease liabilities excludes $5 million and $11 million of Accrued liabilities and Other liabilities, respectively, that are included in Liabilities held for sale in the Consolidated Balance Sheet. Refer to Note 2 Acquisitions, Divestitures, and Assets and Liabilities Held for Sale. 81 Honeywell International Inc. 81 Honeywell International Inc. 81 Honeywell International Inc. TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATAHONEYWELL INTERNATIONAL INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)(Dollars in tables in millions, except per share amounts) TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTS --- ## New in Current Filing: (Dollars in tables in millions, except per share amounts) In September 2022, the FASB issued ASU 2022-04, Liabilities - Supplier Finance Programs (Topic 405): Disclosure of Supplier Finance Program Obligations, to enhance the transparency of supplier finance programs. The new standard requires annual disclosure of the key terms of the program, a description of where in the financial statements amounts outstanding under the program are presented, a rollforward of such amounts, and interim disclosure of amounts outstanding as of the end of each period. The guidance does not affect recognition, measurement, or financial statement presentation of supplier finance programs. The ASU was effective on January 1, 2023, except for the rollforward, which was effective on January 1, 2024. The Company adopted this guidance on January 1, 2023, with the exception of the rollforward adopted on January 1, 2024. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. --- ## New in Current Filing: FOREIGN CURRENCY RISK MANAGEMENT The Company operates a global business in a wide variety of foreign currencies. The Company's exposure to market risk for changes in foreign currency exchange rates arises from international financing activities between subsidiaries, foreign currency denominated monetary assets and liabilities, and transactions arising from international trade. The Company's objective is to preserve the U.S. dollar value of foreign currency denominated cash flows and earnings. The Company monitors its collective foreign currency exposure and enters into foreign currency exchange forward and option contracts (foreign currency exchange contracts) with third parties, when necessary, to minimize the impact of changes in foreign currency exchange rates. The Company has monetary assets and liabilities denominated in non-functional currencies. Prior to conversion into U.S. dollars, these assets and liabilities are remeasured at spot exchange rates as of the balance sheet date. The Company recognizes effects of changes in spot rates in Other (income) expense. 82 Honeywell International Inc. 82 Honeywell International Inc. 82 Honeywell International Inc. TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATAHONEYWELL INTERNATIONAL INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)(Dollars in tables in millions, except per share amounts) TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTS --- ## New in Current Filing: (Dollars in tables in millions, except per share amounts) In September 2022, the FASB issued ASU 2022-04, Liabilities - Supplier Finance Programs (Topic 405): Disclosure of Supplier Finance Program Obligations, to enhance the transparency of supplier finance programs. The new standard requires annual disclosure of the key terms of the program, a description of where in the financial statements amounts outstanding under the program are presented, a rollforward of such amounts, and interim disclosure of amounts outstanding as of the end of each period. The guidance does not affect recognition, measurement, or financial statement presentation of supplier finance programs. The ASU was effective on January 1, 2023, except for the rollforward, which was effective on January 1, 2024. The Company adopted this guidance on January 1, 2023, with the exception of the rollforward adopted on January 1, 2024. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. --- ## New in Current Filing: RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE LOSS Year Ended December 31, 2024Affected Line in the Consolidated Statement of OperationsNet SalesCost ofProducts SoldCost ofServices SoldSelling, General andAdministrative ExpensesOther(Income) ExpenseInterest and OtherFinancial ChargesTotalAmortization of pension and other postretirement benefit items Actuarial losses recognized$ - $ - $ - $ - $115 $ - $115 Prior service (credit) recognized - - - - (22) - (22)Losses (gains) on cash flow hedges(2)(8)(3)(4) - - (17)Total before tax$(2)$(8)$(3)$(4)$93 $ - $76 Tax expense (benefit)(22)Total reclassifications for the period, net of tax$54 Cost of --- ## New in Current Filing: Reacquired stock or repurchases of common stock1 94 Honeywell International Inc. 94 Honeywell International Inc. 94 Honeywell International Inc. TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATAHONEYWELL INTERNATIONAL INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)(Dollars in tables in millions, except per share amounts) TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTS --- ## New in Current Filing: (Dollars in tables in millions, except per share amounts) In September 2022, the FASB issued ASU 2022-04, Liabilities - Supplier Finance Programs (Topic 405): Disclosure of Supplier Finance Program Obligations, to enhance the transparency of supplier finance programs. The new standard requires annual disclosure of the key terms of the program, a description of where in the financial statements amounts outstanding under the program are presented, a rollforward of such amounts, and interim disclosure of amounts outstanding as of the end of each period. The guidance does not affect recognition, measurement, or financial statement presentation of supplier finance programs. The ASU was effective on January 1, 2023, except for the rollforward, which was effective on January 1, 2024. The Company adopted this guidance on January 1, 2023, with the exception of the rollforward adopted on January 1, 2024. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. --- ## New in Current Filing: OTHER MATTERS LITIGATION See Note 19 Commitments and Contingencies of Notes to Consolidated Financial Statements for a discussion of environmental, asbestos, and other litigation matters. RECENT ACCOUNTING PRONOUNCEMENTS See Note 1 Summary of Significant Accounting Policies of Notes to Consolidated Financial Statements for a discussion of recent accounting pronouncements. 45 Honeywell International Inc. 45 Honeywell International Inc. 45 Honeywell International Inc. TABLE OF CONTENTS TABLE OF CONTENTS TABLE OF CONTENTS --- ## New in Current Filing: (Dollars in tables in millions, except per share amounts) In September 2022, the FASB issued ASU 2022-04, Liabilities - Supplier Finance Programs (Topic 405): Disclosure of Supplier Finance Program Obligations, to enhance the transparency of supplier finance programs. The new standard requires annual disclosure of the key terms of the program, a description of where in the financial statements amounts outstanding under the program are presented, a rollforward of such amounts, and interim disclosure of amounts outstanding as of the end of each period. The guidance does not affect recognition, measurement, or financial statement presentation of supplier finance programs. The ASU was effective on January 1, 2023, except for the rollforward, which was effective on January 1, 2024. The Company adopted this guidance on January 1, 2023, with the exception of the rollforward adopted on January 1, 2024. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. --- ## New in Current Filing: Long-lived Assets2 Total3 Sales between geographic areas approximate market value and are not significant. Net sales are classified according to their country of origin. Included in United States Net sales are export sales of $5,441 million, $4,708 million, and $4,187 million for the years ended December 31, 2024, 2023, and 2022, respectively. Long-lived assets consists of Property, plant and equipment - net. As of December 31, 2024, total long-lived assets excludes $155 million that are included in Assets held for sale in the Consolidated Balance Sheet. Refer to Note 2 Acquisitions, Divestitures, and Assets and Liabilities Held for Sale. NOTE 24. SUPPLEMENTAL CASH FLOW INFORMATION Years Ended December 31,202420232022Net payments for repositioning and other chargesSeverance and exit cost payments$(195)$(294)$(275)Environmental payments(224)(196)(211)Reimbursement receipts140 140 140 Insurance receipts for asbestos-related liabilities24 39 37 Insurance receivables settlements, write-offs, and other9 26 68 Asbestos-related liability payments(233)(174)(271)Total net payments for repositioning and other charges$(479)$(459)$(512)Interest paid, net of amounts capitalized$869 $649 $375 Income taxes paid, net of refunds1,689 1,581 1,324 Non-cash investing and financing activitiesCommon stock contributed to savings plans225 216 196 113 Honeywell International Inc. 113 Honeywell International Inc. 113 Honeywell International Inc. TABLE OF CONTENTS TABLE OF CONTENTS TABLE OF CONTENTS --- ## No Match in Current: Change 2023 *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* vs. 2022 Change 2022 vs. 2021 38 Honeywell International Inc. 38 Honeywell International Inc. 38 Honeywell International Inc. TABLE OF CONTENTSLIQUIDITY AND CAPITAL RESOURCES TABLE OF CONTENTSLIQUIDITY AND CAPITAL RESOURCES TABLE OF CONTENTS --- ## No Match in Current: Karen Mattimore, 57 *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* 2020 Senior Vice President and Chief Human Resources Officer since June 2020. Vice President, Human Resources and Communications, Aerospace from February 2018 to June 2020. Vice President, Human Resources Services from April 2015 to February 2018. Ken West, 49 2024 (a)Also a Director. 48 Honeywell International Inc. 48 Honeywell International Inc. 48 Honeywell International Inc. TABLE OF CONTENTS TABLE OF CONTENTS TABLE OF CONTENTS --- ## No Match in Current: RECLASSIFICATIONS *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* Certain prior year amounts are reclassified to conform to the current year presentation. Historically, the Company included Company-sponsored costs and costs that relate to contracts with customers for research and development projects as a component of Cost of products and services sold on the Consolidated Statement of Operations. Effective January 1, 2023, the Company began classifying Company-sponsored costs for research and development projects as a separate financial statement line item, titled Research and development expenses, on the Consolidated Statement of Operations and recast prior period results for this reclassification. This reclassification had no impact on the Company's net income, earnings per share, cash flows, segment reporting, or financial position. The Company revised historical periods to reflect this change in presentation. --- ## No Match in Current: (Dollars in tables in millions, except per share amounts) *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers. This ASU should be applied prospectively to acquisitions occurring on or after the effective date of December 15, 2022, and early adoption was permitted. The Company adopted this guidance on January 1, 2022. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by the transition away from reference rates expected to be discontinued to alternative reference rates. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, to expand the scope of this guidance to include derivatives. The guidance was effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into on or before December 31, 2022. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which extends the period of time entities can utilize the reference rate reform relief guidance under ASU 2020-04 from December 31, 2022, to December 31, 2024. The Company will apply the guidance to impacted transactions during the transition period. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. --- ## No Match in Current: (Dollars in tables in millions, except per share amounts) *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers. This ASU should be applied prospectively to acquisitions occurring on or after the effective date of December 15, 2022, and early adoption was permitted. The Company adopted this guidance on January 1, 2022. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by the transition away from reference rates expected to be discontinued to alternative reference rates. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, to expand the scope of this guidance to include derivatives. The guidance was effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into on or before December 31, 2022. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which extends the period of time entities can utilize the reference rate reform relief guidance under ASU 2020-04 from December 31, 2022, to December 31, 2024. The Company will apply the guidance to impacted transactions during the transition period. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. --- ## No Match in Current: DERIVATIVE FINANCIAL INSTRUMENTS *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* All derivative financial instruments are recorded on the balance sheet as assets or liabilities and measured at fair value. For derivatives designated as hedges of the fair value of assets or liabilities, the changes in fair values of both the derivatives and the hedged items are recorded in current earnings. For derivatives designated as cash flow hedges, the changes in fair value of the derivatives are recorded in Accumulated other comprehensive income (loss) and subsequently recognized in earnings when the hedged items impact earnings. Derivative financial instruments designated as hedges must be designated and effective as a hedge of the identified risk exposure at the inception of the contract. Changes in fair value of the derivative contract must be highly correlated with changes in fair value of the underlying hedged item at inception and over the life of the hedge contract. Cash flows of such derivative financial instruments are classified consistent with the underlying hedged item. The Company elected to exclude the time value of the derivatives (i.e., the forward points) from the assessment of hedge effectiveness and to recognize the initial value of the excluded component in earnings using the amortization approach. For derivative instruments that are designated and qualify as a net investment hedge, the gain or loss is reported as a component of Other comprehensive income (loss) and recorded in Accumulated other comprehensive income (loss). The gain or loss will be subsequently reclassified into earnings when the hedged net investment is either sold or substantially liquidated. 61 Honeywell International Inc. 61 Honeywell International Inc. 61 Honeywell International Inc. TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATAHONEYWELL INTERNATIONAL INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)(Dollars in tables in millions, except per share amounts) TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTS --- ## No Match in Current: (Dollars in tables in millions, except per share amounts) *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers. This ASU should be applied prospectively to acquisitions occurring on or after the effective date of December 15, 2022, and early adoption was permitted. The Company adopted this guidance on January 1, 2022. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by the transition away from reference rates expected to be discontinued to alternative reference rates. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, to expand the scope of this guidance to include derivatives. The guidance was effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into on or before December 31, 2022. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which extends the period of time entities can utilize the reference rate reform relief guidance under ASU 2020-04 from December 31, 2022, to December 31, 2024. The Company will apply the guidance to impacted transactions during the transition period. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. --- ## No Match in Current: DIVESTITURES *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* During 2023, there were no significant divestitures individually or in the aggregate. In conjunction with the wind down of the Company's businesses and operations in Russia (the Wind down), during 2022 the Company completed the sale of three entities domiciled in Russia in exchange for gross cash consideration of less than $1 million. The Company recognized a pre-tax gain of $22 million, which was recorded in Other (income) expense in the Consolidated Statement of Operations, driven by favorable foreign currency cumulative translation adjustment positions in the entities at the time of sale. The financial results of the entities were previously included in the Performance Materials and Technologies, Honeywell Building Technologies, and Safety and Productivity Solutions reportable business segments. On March 15, 2021, the Company completed the sale of its retail footwear business in exchange for gross cash consideration of $230 million. The Company recognized a pre-tax gain of $95 million for the twelve months ended December 31, 2021, which was recorded in Other (income) expense. The retail footwear business was previously included in the Safety and Productivity Solutions reportable business segment. 65 Honeywell International Inc. 65 Honeywell International Inc. 65 Honeywell International Inc. TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATAHONEYWELL INTERNATIONAL INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)(Dollars in tables in millions, except per share amounts) TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTS --- ## No Match in Current: Total performance obligations2 *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* The remaining performance obligations within Corporate and All Other relate to the Quantinuum business. Effective March 31, 2022, performance obligations exclude contracts with customers related to Russia as collectability is not reasonably assured. 68 Honeywell International Inc. 68 Honeywell International Inc. 68 Honeywell International Inc. TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATAHONEYWELL INTERNATIONAL INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)(Dollars in tables in millions, except per share amounts) TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTS --- ## No Match in Current: (Dollars in tables in millions, except per share amounts) *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers. This ASU should be applied prospectively to acquisitions occurring on or after the effective date of December 15, 2022, and early adoption was permitted. The Company adopted this guidance on January 1, 2022. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by the transition away from reference rates expected to be discontinued to alternative reference rates. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, to expand the scope of this guidance to include derivatives. The guidance was effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into on or before December 31, 2022. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which extends the period of time entities can utilize the reference rate reform relief guidance under ASU 2020-04 from December 31, 2022, to December 31, 2024. The Company will apply the guidance to impacted transactions during the transition period. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. --- ## No Match in Current: (Dollars in tables in millions, except per share amounts) *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers. This ASU should be applied prospectively to acquisitions occurring on or after the effective date of December 15, 2022, and early adoption was permitted. The Company adopted this guidance on January 1, 2022. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by the transition away from reference rates expected to be discontinued to alternative reference rates. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, to expand the scope of this guidance to include derivatives. The guidance was effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into on or before December 31, 2022. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which extends the period of time entities can utilize the reference rate reform relief guidance under ASU 2020-04 from December 31, 2022, to December 31, 2024. The Company will apply the guidance to impacted transactions during the transition period. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. --- ## No Match in Current: Indefinite-life intangibles *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* Intangible assets amortization expense was $292 million, $333 million, and $465 million for the years ended December 31, 2023, 2022, and 2021, respectively. Estimated intangible asset amortization expense for each of the next five years approximates $287 million in 2024, $262 million in 2025, $257 million in 2026, $247 million in 2027, and $249 million in 2028. 77 Honeywell International Inc. 77 Honeywell International Inc. 77 Honeywell International Inc. TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATAHONEYWELL INTERNATIONAL INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)(Dollars in tables in millions, except per share amounts) TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTS --- ## No Match in Current: (Dollars in tables in millions, except per share amounts) *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers. This ASU should be applied prospectively to acquisitions occurring on or after the effective date of December 15, 2022, and early adoption was permitted. The Company adopted this guidance on January 1, 2022. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by the transition away from reference rates expected to be discontinued to alternative reference rates. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, to expand the scope of this guidance to include derivatives. The guidance was effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into on or before December 31, 2022. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which extends the period of time entities can utilize the reference rate reform relief guidance under ASU 2020-04 from December 31, 2022, to December 31, 2024. The Company will apply the guidance to impacted transactions during the transition period. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. --- ## No Match in Current: (Dollars in tables in millions, except per share amounts) *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers. This ASU should be applied prospectively to acquisitions occurring on or after the effective date of December 15, 2022, and early adoption was permitted. The Company adopted this guidance on January 1, 2022. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by the transition away from reference rates expected to be discontinued to alternative reference rates. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, to expand the scope of this guidance to include derivatives. The guidance was effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into on or before December 31, 2022. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which extends the period of time entities can utilize the reference rate reform relief guidance under ASU 2020-04 from December 31, 2022, to December 31, 2024. The Company will apply the guidance to impacted transactions during the transition period. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. --- ## No Match in Current: (Dollars in tables in millions, except per share amounts) *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers. This ASU should be applied prospectively to acquisitions occurring on or after the effective date of December 15, 2022, and early adoption was permitted. The Company adopted this guidance on January 1, 2022. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by the transition away from reference rates expected to be discontinued to alternative reference rates. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, to expand the scope of this guidance to include derivatives. The guidance was effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into on or before December 31, 2022. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which extends the period of time entities can utilize the reference rate reform relief guidance under ASU 2020-04 from December 31, 2022, to December 31, 2024. The Company will apply the guidance to impacted transactions during the transition period. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. --- ## No Match in Current: (Dollars in tables in millions, except per share amounts) *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers. This ASU should be applied prospectively to acquisitions occurring on or after the effective date of December 15, 2022, and early adoption was permitted. The Company adopted this guidance on January 1, 2022. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by the transition away from reference rates expected to be discontinued to alternative reference rates. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, to expand the scope of this guidance to include derivatives. The guidance was effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into on or before December 31, 2022. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which extends the period of time entities can utilize the reference rate reform relief guidance under ASU 2020-04 from December 31, 2022, to December 31, 2024. The Company will apply the guidance to impacted transactions during the transition period. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. --- ## No Match in Current: Tax (expense) benefit *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* 93 Honeywell International Inc. 93 Honeywell International Inc. 93 Honeywell International Inc. TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATAHONEYWELL INTERNATIONAL INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)(Dollars in tables in millions, except per share amounts) TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTS --- ## No Match in Current: (Dollars in tables in millions, except per share amounts) *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers. This ASU should be applied prospectively to acquisitions occurring on or after the effective date of December 15, 2022, and early adoption was permitted. The Company adopted this guidance on January 1, 2022. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by the transition away from reference rates expected to be discontinued to alternative reference rates. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, to expand the scope of this guidance to include derivatives. The guidance was effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into on or before December 31, 2022. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which extends the period of time entities can utilize the reference rate reform relief guidance under ASU 2020-04 from December 31, 2022, to December 31, 2024. The Company will apply the guidance to impacted transactions during the transition period. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. --- ## No Match in Current: GARRETT LITIGATION AND BANKRUPTCY PROCEEDINGS *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* In conjunction with the Garrett spin-off, the Company entered into a binding indemnification and reimbursement agreement (Garrett Indemnity) and a binding tax matters agreement (Tax Matters Agreement) with Garrett and a Garrett subsidiary. On December 2, 2019, Garrett and Garrett ASASCO Inc. filed a Summons with Notice and commenced a lawsuit in the Commercial Division of the Supreme Court of the State of New York, County of New York (the State Court), seeking to invalidate the Garrett Indemnity. Garrett sought damages and a declaratory judgment based on various claims set forth in the Summons with Notice. On July 17, 2020, the Company received a notice from Garrett asserting that the Company had caused material breaches of the Tax Matters Agreement and that the Tax Matters Agreement was unenforceable. On September 20, 2020, Garrett and 36 of its affiliates filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York (the Bankruptcy Court). On September 24, 2020, Garrett moved the existing State Court litigation against Honeywell to the Bankruptcy Court. For the year ended December 31, 2020, the Company reviewed the aggregate carrying value of the receivable amounts due in connection with the Garrett Indemnity and Tax Matters Agreement and reduced the aggregate carrying value of the receivable by $509 million to reflect the present value of the amounts owed to the Company over the full term of these agreements. On April 26, 2021, the Bankruptcy Court confirmed Garrett's amended Chapter 11 plan of reorganization (the Confirmed Plan), and on April 30, 2021 (the Effective Date), Garrett emerged from bankruptcy. On the Effective Date, and in accordance with the Confirmed Plan, (i) the Company received from Garrett an initial payment of $375 million and 834.8 million shares of Garrett's Series B Preferred Stock in full and final satisfaction of the Garrett Indemnity and Tax Matters Agreement, (ii) the Garrett Indemnity and Tax Matters Agreement were terminated, (iii) the Company and Garrett mutually released each other from the claims asserted in all pending legal actions related to the Garrett Indemnity and Tax Matters Agreement, and (iv) all pending litigation between the Company and Garrett in connection with those agreements was resolved. 99 Honeywell International Inc. 99 Honeywell International Inc. 99 Honeywell International Inc. TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATAHONEYWELL INTERNATIONAL INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)(Dollars in tables in millions, except per share amounts) TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTS --- ## No Match in Current: (Dollars in tables in millions, except per share amounts) *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers. This ASU should be applied prospectively to acquisitions occurring on or after the effective date of December 15, 2022, and early adoption was permitted. The Company adopted this guidance on January 1, 2022. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by the transition away from reference rates expected to be discontinued to alternative reference rates. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, to expand the scope of this guidance to include derivatives. The guidance was effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into on or before December 31, 2022. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which extends the period of time entities can utilize the reference rate reform relief guidance under ASU 2020-04 from December 31, 2022, to December 31, 2024. The Company will apply the guidance to impacted transactions during the transition period. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. --- ## No Match in Current: (Dollars in tables in millions, except per share amounts) *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers. This ASU should be applied prospectively to acquisitions occurring on or after the effective date of December 15, 2022, and early adoption was permitted. The Company adopted this guidance on January 1, 2022. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by the transition away from reference rates expected to be discontinued to alternative reference rates. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, to expand the scope of this guidance to include derivatives. The guidance was effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into on or before December 31, 2022. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which extends the period of time entities can utilize the reference rate reform relief guidance under ASU 2020-04 from December 31, 2022, to December 31, 2024. The Company will apply the guidance to impacted transactions during the transition period. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. --- ## No Match in Current: Long-lived Assets2 *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* Sales between geographic areas approximate market value and are not significant. Net sales are classified according to their country of origin. Included in United States Net sales are export sales of $4,708 million, $4,187 million, and $4,037 million for the years ended December 31, 2023, 2022, and 2021, respectively. Long-lived assets consists of Property, plant and equipment - net. NOTE 24. SUPPLEMENTAL CASH FLOW INFORMATION Years Ended December 31,202320222021Net payments for repositioning and other chargesSeverance and exit cost payments$(294)$(275)$(382)Environmental payments(196)(211)(210)Reimbursement receipts140 140 140 Insurance receipts for asbestos-related liabilities39 37 46 Insurance receivables settlements and write-offs26 68 - Asbestos-related liability payments(174)(271)(286)Total net payments for repositioning and other charges$(459)$(512)$(692)Interest paid, net of amounts capitalized$649 $375 $339 Income taxes paid, net of refunds1,581 1,324 1,202 Non-cash investing and financing activitiesCommon stock contributed to savings plans216 196 191 Marketable securities contributed to non-U.S. pension plans - - 81 Impact of Quantinuum contribution1 - - 460 Noncontrolling interest non-cash contribution1 - - 419 Loan in exchange for prepaid assets - - 25 Receipt of Garrett Series B Preferred Stock2 - - 577 1See Note 2 Acquisitions and Divestitures for additional information of non-cash amounts recognized related to the combination of Honeywell Quantum Solutions and Cambridge Quantum Computing to form Quantinuum, a newly formed entity, which Honeywell consolidates as the controlling majority-owner.2See Note 19 Commitments and Contingencies for additional information of non-cash amounts recognized related to the receipt of 834.8 million shares of Garrett Series B Preferred Stock in exchange for the full and final satisfaction of the Garrett Indemnity, Tax Matters Agreement, and pending litigation between the Company and Garrett. The non-cash amount reflects the fair value of the Garrett Series B Preferred Stock as of April 30, 2021, the date Garrett issued the Series B Preferred Stock to the Company. Impact of Quantinuum contribution1 Noncontrolling interest non-cash contribution1 Receipt of Garrett Series B Preferred Stock2 See Note 2 Acquisitions and Divestitures for additional information of non-cash amounts recognized related to the combination of Honeywell Quantum Solutions and Cambridge Quantum Computing to form Quantinuum, a newly formed entity, which Honeywell consolidates as the controlling majority-owner. See Note 19 Commitments and Contingencies for additional information of non-cash amounts recognized related to the receipt of 834.8 million shares of Garrett Series B Preferred Stock in exchange for the full and final satisfaction of the Garrett Indemnity, Tax Matters Agreement, and pending litigation between the Company and Garrett. The non-cash amount reflects the fair value of the Garrett Series B Preferred Stock as of April 30, 2021, the date Garrett issued the Series B Preferred Stock to the Company. 114 Honeywell International Inc. 114 Honeywell International Inc. 114 Honeywell International Inc. TABLE OF CONTENTS TABLE OF CONTENTS TABLE OF CONTENTS --- ## Modified: (Dollars in tables in millions, except per share amounts) **Key changes:** - Removed sentence: "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." - Removed sentence: "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." - Reworded sentence: "Pursuant to the Amended Buyout Agreement, during 2024 and 2023, Honeywell received $3 million and $275 million of proceeds from the HWI sale, respectively." **Prior (2024):** In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers. This ASU should be applied prospectively to acquisitions occurring on or after the effective date of December 15, 2022, and early adoption was permitted. The Company adopted this guidance on January 1, 2022. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by the transition away from reference rates expected to be discontinued to alternative reference rates. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, to expand the scope of this guidance to include derivatives. The guidance was effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into on or before December 31, 2022. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which extends the period of time entities can utilize the reference rate reform relief guidance under ASU 2020-04 from December 31, 2022, to December 31, 2024. The Company will apply the guidance to impacted transactions during the transition period. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. **Current (2025):** In September 2022, the FASB issued ASU 2022-04, Liabilities - Supplier Finance Programs (Topic 405): Disclosure of Supplier Finance Program Obligations, to enhance the transparency of supplier finance programs. The new standard requires annual disclosure of the key terms of the program, a description of where in the financial statements amounts outstanding under the program are presented, a rollforward of such amounts, and interim disclosure of amounts outstanding as of the end of each period. The guidance does not affect recognition, measurement, or financial statement presentation of supplier finance programs. The ASU was effective on January 1, 2023, except for the rollforward, which was effective on January 1, 2024. The Company adopted this guidance on January 1, 2023, with the exception of the rollforward adopted on January 1, 2024. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. --- ## Modified: (Income) Expense **Key changes:** - Reworded sentence: "As of December 31, 2024, the Company estimates that approximately $20 million of net derivative gains related to its cash flow hedges included in Accumulated other comprehensive loss will be reclassified into earnings within the next 12 months." **Prior (2024):** Year Ended December 31, 2022Net SalesCost ofProducts SoldCost ofServices SoldSelling, General andAdministrative ExpensesOther(Income) ExpenseInterest and OtherFinancial Charges$35,466 $16,955 $5,392 $5,214 $(366)$414 Gain or (loss) on cash flow hedgesForeign currency exchange contractsAmount reclassified from accumulated other comprehensive income (loss) into income13 50 14 (3) - - Commodity ContractsAmount reclassified from accumulated other comprehensive income (loss) into income - (2) - - - - Gain or (loss) on fair value hedgesInterest rate swap agreementsHedged items - - - - - 347 Derivatives designated as hedges - - - - - (347)Gain or (loss) on net investment hedgesForeign currency exchange contractsAmount excluded from effectiveness testing recognized in earnings using an amortization approach - - - - - 13 Gain or (loss) on derivatives not designated as hedging instrumentsForeign currency exchange contracts - - - - 351 - Cost of **Current (2025):** Year Ended December 31, 2023Net SalesCost ofProducts SoldCost ofServices SoldSelling, General andAdministrative ExpensesOther(Income) ExpenseInterest and OtherFinancial Charges$36,662 $16,977 $6,018 $5,127 $(840)$765 Gain (loss) on cash flow hedgesForeign currency exchange contractsAmount reclassified from accumulated other comprehensive loss into income15 28 10 10 - - Gain (loss) on fair value hedgesInterest rate swap agreementsHedged items - - - - - (121)Derivatives designated as hedges - - - - - 121 Gain (loss) on derivatives not designated as hedging instrumentsForeign currency exchange contracts - - - - (116) - Cost of --- ## Modified: PENSION BENEFITS **Key changes:** - Reworded sentence: "Plans2024202320242023Projected benefit obligation$236 $251 $709 $753 Accumulated benefit obligation228 249 695 736 Fair value of plan assets - - 222 249 The accumulated benefit obligation for the Company's U.S." - Removed sentence: "Equity securities include publicly-traded stock of companies located inside the United States." - Added sentence: "Equity securities include publicly traded stock of companies and/or broad equity index exposures with exchange traded funds (ETFs) located inside the United States." - Reworded sentence: "In accordance with ASC Topic 820, Fair Value Measurement, certain investments that are measured at fair value using the net asset value (NAV) per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy." - Reworded sentence: "105 Honeywell International Inc." **Prior (2024):** The Company presents net periodic pension costs by disaggregating the service cost component of such costs and reports those costs in the same line item or items in the Consolidated Statement of Operations as other compensation costs arising from services rendered by the pertinent employees during the period. The other non-service components of such costs are required to be presented separately from the service cost component. The Company records the service cost component of Pension ongoing (income) expense in Cost of products and services sold, Research and development expenses, and Selling, general and administrative expenses. The remaining components of costs within Pension ongoing (income) expense, primarily interest costs and assumed return on plan assets, are recorded in Other (income) expense. The Company recognizes net actuarial gains or losses in excess of 10% of the greater of the fair value of plan assets or the plan's projected benefit obligation (the corridor) annually in the fourth quarter each year (MTM Adjustment). The MTM Adjustment is also reported in Other (income) expense. **Current (2025):** The Company presents net periodic pension costs by disaggregating the service cost component of such costs and reports those costs in the same line item or items in the Consolidated Statement of Operations as other compensation costs arising from services rendered by the pertinent employees during the period. The other non-service components of such costs are required to be presented separately from the service cost component. The Company records the service cost component of Pension ongoing (income) expense in Cost of products and services sold, Research and development expenses, and Selling, general and administrative expenses. The remaining components of costs within Pension ongoing (income) expense, primarily interest costs and assumed return on plan assets, are recorded in Other (income) expense. The Company recognizes net actuarial gains or losses in excess of 10% of the greater of the fair value of plan assets or the plan's projected benefit obligation (the corridor) annually in the fourth quarter each year (MTM Adjustment). The MTM Adjustment is also reported in Other (income) expense. --- ## Modified: OTHER INFORMATION **Key changes:** - Reworded sentence: "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." **Prior (2024):** EQUITY TRADING PLAN 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 plans. During the three months ended December 31, 2023, none of our executive officers or directors adopted, terminated, or modified a Rule 10b5-1 equity trading plan, or adopted, terminated, or modified any "non-Rule 10b5-1 trading arrangement" (as defined in Item 408(c) of Regulation S-K). **Current (2025):** 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 December 31, 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). --- ## Modified: MINE SAFETY DISCLOSURES **Key changes:** - Reworded sentence: "48 Honeywell International Inc." **Prior (2024):** 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 Form 10-K. 50 Honeywell International Inc. 50 Honeywell International Inc. 50 Honeywell International Inc. TABLE OF CONTENTS TABLE OF CONTENTS TABLE OF CONTENTS **Current (2025):** 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 Form 10-K. 48 Honeywell International Inc. 48 Honeywell International Inc. 48 Honeywell International Inc. TABLE OF CONTENTS TABLE OF CONTENTS TABLE OF CONTENTS --- ## Modified: PERFORMANCE OBLIGATIONS **Key changes:** - Reworded sentence: "68 Honeywell International Inc." **Prior (2024):** 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 the Company's contracts with customers require highly complex integration or manufacturing services that are not separately identifiable from other promises in the contracts and, therefore, not distinct, then the entire contract is accounted for as a single performance obligation. In situations when 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. The following table outlines the Company's remaining performance obligations disaggregated by reportable business segment: December 31, 2023Aerospace$13,898 Honeywell Building Technologies7,302 Performance Materials and Technologies8,643 Safety and Productivity Solutions1,887 Corporate and All Other147 Total performance obligations2$31,777 1The remaining performance obligations within Corporate and All Other relate to the Quantinuum business.2Effective March 31, 2022, performance obligations exclude contracts with customers related to Russia as collectability is not reasonably assured. Corporate and All Other1 **Current (2025):** 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 the Company's contracts with customers require highly complex integration or manufacturing services that are not separately identifiable from other promises in the contracts and, therefore, not distinct, then the entire contract is accounted for as a single performance obligation. In situations when 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. 68 Honeywell International Inc. 68 Honeywell International Inc. 68 Honeywell International Inc. TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATAHONEYWELL INTERNATIONAL INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)(Dollars in tables in millions, except per share amounts) TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTS --- ## Modified: COMMODITY PRICE RISK MANAGEMENT **Key changes:** - Reworded sentence: "In both 2024 and 2023, the Company entered into various contracts to mitigate commodity price volatility." - Removed sentence: "82 Honeywell International Inc." - Removed sentence: "82 Honeywell International Inc." - Removed sentence: "82 Honeywell International Inc." - Removed sentence: "TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATAHONEYWELL INTERNATIONAL INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)(Dollars in tables in millions, except per share amounts) TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTS" **Prior (2024):** The Company's operations subject the Company to risk related to the price volatility of certain commodities. To mitigate the commodity price risk associated with the Company's operations, the Company may enter into commodity derivative instruments. In both 2023 and 2022, the Company entered into various contracts to mitigate commodity price volatility. The Company elected to apply hedge accounting to these contracts. 82 Honeywell International Inc. 82 Honeywell International Inc. 82 Honeywell International Inc. TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATAHONEYWELL INTERNATIONAL INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)(Dollars in tables in millions, except per share amounts) TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTS **Current (2025):** The Company's operations subject the Company to risk related to the price volatility of certain commodities. To mitigate the commodity price risk associated with the Company's operations, the Company may enter into commodity derivative instruments. In both 2024 and 2023, the Company entered into various contracts to mitigate commodity price volatility. The Company elected to apply hedge accounting to these contracts. --- ## Modified: MANAGEMENT'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING **Key changes:** - Reworded sentence: "Management assessed the effectiveness of Honeywell's internal control over financial reporting as of December 31, 2024." - Reworded sentence: "Based on this assessment, management determined that Honeywell maintained effective internal control over financial reporting as of December 31, 2024." **Prior (2024):** Honeywell management is responsible for establishing and maintaining adequate internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act). Honeywell's internal control over financial reporting is a process designed to provide reasonable assurance to our management and Board of Directors regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Management assessed the effectiveness of Honeywell's internal control over financial reporting as of December 31, 2023. In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control - Integrated Framework (2013). Based on this assessment, management determined that Honeywell maintained effective internal control over financial reporting as of December 31, 2023. Management's assessment of the effectiveness of the Company's internal control over financial reporting as of December 31, 2023, excluded Compressor Controls Corporation, which was acquired by the Company on June 30, 2023. The total revenues, net income, and net and total assets of Compressor Controls Corporation represents less than 1% each of the related consolidated financial statement amounts as of December 31, 2023. The effectiveness of Honeywell's internal control over financial reporting as of December 31, 2023 has been audited by Deloitte & Touche LLP, an independent registered public accounting firm, as stated in their report which is included in the section titled Financial Statements and Supplementary Data. 117 Honeywell International Inc. 117 Honeywell International Inc. 117 Honeywell International Inc. TABLE OF CONTENTS TABLE OF CONTENTS TABLE OF CONTENTS **Current (2025):** Honeywell management is responsible for establishing and maintaining adequate internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act). Honeywell's internal control over financial reporting is a process designed to provide reasonable assurance to our management and Board of Directors regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Management assessed the effectiveness of Honeywell's internal control over financial reporting as of December 31, 2024. In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control - Integrated Framework (2013). Based on this assessment, management determined that Honeywell maintained effective internal control over financial reporting as of December 31, 2024. In accordance with guidance issued by the Securities and Exchange Commission, companies are allowed to exclude acquisitions from their assessment of internal control over financial reporting during the first year in which the acquisition occurred. Management's assessment of the effectiveness of the Company's internal control over financial reporting as of December 31, 2024, excluded Air Products' liquefied natural gas process technology and equipment business, CAES Systems Holdings LLC, and Carrier Global Corporation's Global Access Solutions business (collectively, the "excluded acquisitions"), which were acquired by the Company on September 30, 2024, August 30, 2024, and June 3, 2024, respectively. The excluded acquisitions represent less than 4% of both net income and net assets, less than 3% of total revenues, and less than 2% of total assets of the consolidated financial amounts as of December 31, 2024. The effectiveness of Honeywell's internal control over financial reporting as of December 31, 2024, has been audited by Deloitte & Touche LLP, an independent registered public accounting firm, as stated in their report which is included in the section titled Financial Statements and Supplementary Data. 116 Honeywell International Inc. 116 Honeywell International Inc. 116 Honeywell International Inc. TABLE OF CONTENTS TABLE OF CONTENTS TABLE OF CONTENTS --- ## Modified: SUPPLY CHAIN FINANCING **Key changes:** - Removed sentence: "Accounts payable included approximately $1,112 million and $992 million as of December 31, 2023, and 2022, respectively." - Reworded sentence: "The following table summarizes the Company's outstanding obligations confirmed as valid related to the SCF programs for the years ended December 31, 2024, and 2023: SCF programs 20242023Confirmed obligations outstanding at the beginning of the year$1,112 $992 Invoices confirmed during the year3,098 3,017 Less: Confirmed invoices paid during the year3,060 2,897 Confirmed obligations outstanding at the end of the year$1,150 $1,112 60 Honeywell International Inc." **Prior (2024):** The Company maintains agreements with third-party financial institutions that offer voluntary supply chain financing (SCF) programs to suppliers. The SCF programs enable suppliers, at their sole discretion, to sell their receivables to third-party financial institutions in order to receive payment on receivables earlier than the negotiated commercial terms between suppliers and the Company. Supplier sale of receivables to third-party financial institutions is on terms negotiated between the supplier and the respective third-party financial institution. The Company agrees on commercial terms for the goods and services procured from suppliers, including prices, quantities, and payment terms, which normally range between 60 and 120 days, regardless of whether the supplier elects to participate in the SCF programs. A suppliers' voluntary participation in the SCF programs has no bearing on the Company's payment terms and the Company has no economic interest in a supplier's decision to participate in the SCF programs. The Company agrees to pay participating third-party financial institutions the stated amounts of confirmed invoices from suppliers on the original maturity dates of the invoices. Amounts outstanding related to SCF programs are included in Accounts payable in the Consolidated Balance Sheet. Accounts payable included approximately $1,112 million and $992 million as of December 31, 2023, and 2022, respectively. The impact of these programs is not material to the Company's overall liquidity. 62 Honeywell International Inc. 62 Honeywell International Inc. 62 Honeywell International Inc. TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATAHONEYWELL INTERNATIONAL INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)(Dollars in tables in millions, except per share amounts) TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTS **Current (2025):** The Company maintains agreements with third-party financial institutions that offer voluntary supply chain financing (SCF) programs to suppliers. The SCF programs enable suppliers, at their sole discretion, to sell their receivables to third-party financial institutions in order to receive payment on receivables earlier than the negotiated commercial terms between suppliers and the Company. Supplier sale of receivables to third-party financial institutions is on terms negotiated between the supplier and the respective third-party financial institution. The Company agrees on commercial terms for the goods and services procured from suppliers, including prices, quantities, and payment terms, which normally range between 60 and 120 days, regardless of whether the supplier elects to participate in the SCF programs. A suppliers' voluntary participation in the SCF programs has no bearing on the Company's payment terms and the Company has no economic interest in a supplier's decision to participate in the SCF programs. The Company agrees to pay participating third-party financial institutions the stated amounts of confirmed invoices from suppliers on the original maturity dates of the invoices. Amounts outstanding related to SCF programs are included in Accounts payable in the Consolidated Balance Sheet. The impact of these programs is not material to the Company's overall liquidity. The following table summarizes the Company's outstanding obligations confirmed as valid related to the SCF programs for the years ended December 31, 2024, and 2023: SCF programs 20242023Confirmed obligations outstanding at the beginning of the year$1,112 $992 Invoices confirmed during the year3,098 3,017 Less: Confirmed invoices paid during the year3,060 2,897 Confirmed obligations outstanding at the end of the year$1,150 $1,112 60 Honeywell International Inc. 60 Honeywell International Inc. 60 Honeywell International Inc. TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATAHONEYWELL INTERNATIONAL INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)(Dollars in tables in millions, except per share amounts) TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTS --- ## Modified: CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS BY COMPONENT **Key changes:** - Reworded sentence: "ForeignExchangeTranslationAdjustmentPensionand OtherPostretirement BenefitAdjustmentsChanges in Fair Valueof Available for Sale InvestmentsChanges inFair Value ofCash FlowHedgesTotalBalance at December 31, 2021$(2,478)$(415)$1 $(3)$(2,895)Other comprehensive income (loss) before reclassifications(344)(623)(8)71 (904)Amounts reclassified from accumulated other comprehensive loss(10)390 - (56)324 Net current period other comprehensive income (loss)(354)(233)(8)15 (580)Balance at December 31, 2022(2,832)(648)(7)12 (3,475)Other comprehensive income (loss) before reclassifications(269)(477)5 60 (681)Amounts reclassified from accumulated other comprehensive loss - 70 - (49)21 Net current period other comprehensive income (loss)(269)(407)5 11 (660)Balance at December 31, 2023(3,101)(1,055)(2)23 (4,135)Other comprehensive income (loss) before reclassifications229 343 1 17 590 Amounts reclassified from accumulated other comprehensive loss - 70 - (16)54 Net current period other comprehensive income (loss)229 413 1 1 644 Balance at December 31, 2024$(2,872)$(642)$(1)$24 $(3,491)" **Prior (2024):** ForeignExchangeTranslationAdjustmentPensionand OtherPostretirement BenefitAdjustmentsChanges in Fair Valueof Available for Sale InvestmentsChanges inFair Value ofCash FlowHedgesTotalBalance at December 31, 2020$(2,780)$(601)$4 $ - $(3,377)Other comprehensive income (loss) before reclassifications314 268 (3)17 596 Amounts reclassified from accumulated other comprehensive income (loss)(12)(82) - (20)(114)Net current period other comprehensive income (loss)302 186 (3)(3)482 Balance at December 31, 2021(2,478)(415)1 (3)(2,895)Other comprehensive income (loss) before reclassifications(344)(623)(8)71 (904)Amounts reclassified from accumulated other comprehensive income (loss)(10)390 - (56)324 Net current period other comprehensive income (loss)(354)(233)(8)15 (580)Balance at December 31, 2022(2,832)(648)(7)12 (3,475)Other comprehensive income (loss) before reclassifications(269)(477)5 60 (681)Amounts reclassified from accumulated other comprehensive income (loss) - 70 - (49)21 Net current period other comprehensive income (loss)(269)(407)5 11 (660)Balance at December 31, 2023$(3,101)$(1,055)$(2)$23 $(4,135) **Current (2025):** ForeignExchangeTranslationAdjustmentPensionand OtherPostretirement BenefitAdjustmentsChanges in Fair Valueof Available for Sale InvestmentsChanges inFair Value ofCash FlowHedgesTotalBalance at December 31, 2021$(2,478)$(415)$1 $(3)$(2,895)Other comprehensive income (loss) before reclassifications(344)(623)(8)71 (904)Amounts reclassified from accumulated other comprehensive loss(10)390 - (56)324 Net current period other comprehensive income (loss)(354)(233)(8)15 (580)Balance at December 31, 2022(2,832)(648)(7)12 (3,475)Other comprehensive income (loss) before reclassifications(269)(477)5 60 (681)Amounts reclassified from accumulated other comprehensive loss - 70 - (49)21 Net current period other comprehensive income (loss)(269)(407)5 11 (660)Balance at December 31, 2023(3,101)(1,055)(2)23 (4,135)Other comprehensive income (loss) before reclassifications229 343 1 17 590 Amounts reclassified from accumulated other comprehensive loss - 70 - (16)54 Net current period other comprehensive income (loss)229 413 1 1 644 Balance at December 31, 2024$(2,872)$(642)$(1)$24 $(3,491) --- ## Modified: (Dollars in tables in millions, except per share amounts) **Key changes:** - Reworded sentence: "Plans202420232022202420232022Actuarial assumptions used to determine benefit obligations as of December 31Discount rate5.57 %4.97 %5.17 %4.80 %4.15 %4.50 %Expected annual rate of compensation increase3.25 %3.25 %3.25 %1.68 %2.68 %2.69 %Actuarial assumptions used to determine net periodic benefit (income) cost for years ended December 31Discount rate - benefit obligation4.97 %5.17 %2.87 %4.13 %4.49 %1.77 %Discount rate - service cost5.06 %5.26 %2.98 %3.38 %3.81 %1.48 %Discount rate - interest cost4.89 %5.07 %2.26 %4.12 %4.56 %1.59 %Expected rate of return on plan assets7.00 %6.75 %6.40 %5.48 %5.15 %3.61 %Expected annual rate of compensation increase3.25 %3.25 %3.25 %2.68 %2.68 %2.56 % Other Postretirement Benefits202420232022Actuarial assumptions used to determine benefit obligations as of December 31Discount rate5.42 %5.00 %5.32 %Actuarial assumptions used to determine net periodic benefit cost for years ended December 31Discount rate5.00 %5.32 %2.66 % The discount rate for the Company's U.S." - Reworded sentence: "pension plans, the single weighted average spot rates used to determine service and interest costs for 2025 are 5.55% and 5.28%, respectively." - Reworded sentence: "plan assets of 7.25% for 2025, which represents an increase from the 7.00% assumption used for 2024." - Reworded sentence: "In July 2024, the UK Court of Appeal upheld a ruling in the matter of Virgin Media Limited versus NTL Pension Trustees II Limited, that certain historical amendments for contracted out defined benefit schemes were invalid if they were not accompanied by the correct actuarial confirmation, a decision that the Company was not a party to or involved in and could impact the Company's non-U.S." **Prior (2024):** In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers. This ASU should be applied prospectively to acquisitions occurring on or after the effective date of December 15, 2022, and early adoption was permitted. The Company adopted this guidance on January 1, 2022. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by the transition away from reference rates expected to be discontinued to alternative reference rates. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, to expand the scope of this guidance to include derivatives. The guidance was effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into on or before December 31, 2022. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which extends the period of time entities can utilize the reference rate reform relief guidance under ASU 2020-04 from December 31, 2022, to December 31, 2024. The Company will apply the guidance to impacted transactions during the transition period. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. **Current (2025):** In September 2022, the FASB issued ASU 2022-04, Liabilities - Supplier Finance Programs (Topic 405): Disclosure of Supplier Finance Program Obligations, to enhance the transparency of supplier finance programs. The new standard requires annual disclosure of the key terms of the program, a description of where in the financial statements amounts outstanding under the program are presented, a rollforward of such amounts, and interim disclosure of amounts outstanding as of the end of each period. The guidance does not affect recognition, measurement, or financial statement presentation of supplier finance programs. The ASU was effective on January 1, 2023, except for the rollforward, which was effective on January 1, 2024. The Company adopted this guidance on January 1, 2023, with the exception of the rollforward adopted on January 1, 2024. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. --- ## Modified: (Dollars in tables in millions, except per share amounts) **Key changes:** - Reworded sentence: "Plans2024202320242023Change in benefit obligation Benefit obligation at beginning of year$12,792 $13,290 $4,718 $4,400 Service cost28 29 12 11 Interest cost599 645 191 200 Plan amendments - - 14 - Actuarial (gains) losses1(579)337 (393)191 Benefits paid(1,069)(1,509)(262)(250)Settlements and curtailments - - (14) - Foreign currency translation - - (106)165 Other1 - 1 1 Benefit obligation at end of year11,772 12,792 4,161 4,718 Change in plan assetsFair value of plan assets at beginning of year16,594 17,005 5,549 5,304 Actual return on plan assets1,008 1,070 (111)267 Company contributions31 28 29 22 Benefits paid(1,069)(1,509)(262)(250)Foreign currency translation - - (101)205 Other1 1 1 Fair value of plan assets at end of year16,565 16,594 5,105 5,549 Funded status of plans$4,793 $3,802 $944 $831 Amounts recognized in the Consolidated Balance Sheet consist ofPrepaid pension benefit cost2$5,029 $4,052 $1,431 $1,335 Accrued pension liabilities - current3(28)(26)(15)(15)Accrued pension liabilities - noncurrent4(208)(224)(472)(489)Net amount recognized$4,793 $3,802 $944 $831 1The actuarial gains incurred in 2024 related to the Company's U.S." - Removed sentence: "Actuarial gains incurred in 2022 related to the Company's U.S." - Removed sentence: "plans are primarily the result of an increase in the discount rate assumption, partially offset by changes in demographic experience and demographic assumptions used to estimate the benefit obligations as of December 31, 2022, compared to December 31, 2021." - Removed sentence: "Actuarial gains incurred in 2022 related to the Company's non-U.S." - Removed sentence: "plans are primarily the result of an increase in the discount rate assumption, partially offset by inflation related assumptions used to estimate the benefit obligations as of December 31, 2022, compared to December 31, 2021.2Included in Other assets in the Consolidated Balance Sheet.3Included in Accrued liabilities in the Consolidated Balance Sheet.4Included in Other liabilities in the Consolidated Balance Sheet." **Prior (2024):** In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers. This ASU should be applied prospectively to acquisitions occurring on or after the effective date of December 15, 2022, and early adoption was permitted. The Company adopted this guidance on January 1, 2022. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by the transition away from reference rates expected to be discontinued to alternative reference rates. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, to expand the scope of this guidance to include derivatives. The guidance was effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into on or before December 31, 2022. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which extends the period of time entities can utilize the reference rate reform relief guidance under ASU 2020-04 from December 31, 2022, to December 31, 2024. The Company will apply the guidance to impacted transactions during the transition period. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. **Current (2025):** In September 2022, the FASB issued ASU 2022-04, Liabilities - Supplier Finance Programs (Topic 405): Disclosure of Supplier Finance Program Obligations, to enhance the transparency of supplier finance programs. The new standard requires annual disclosure of the key terms of the program, a description of where in the financial statements amounts outstanding under the program are presented, a rollforward of such amounts, and interim disclosure of amounts outstanding as of the end of each period. The guidance does not affect recognition, measurement, or financial statement presentation of supplier finance programs. The ASU was effective on January 1, 2023, except for the rollforward, which was effective on January 1, 2024. The Company adopted this guidance on January 1, 2023, with the exception of the rollforward adopted on January 1, 2024. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. --- ## Modified: Financial Charges **Key changes:** - Reworded sentence: "Year Ended December 31, 2022Affected Line in the Consolidated Statement of OperationsNet SalesCost ofProducts SoldCost ofServices SoldSelling, General andAdministrative ExpensesOther(Income) ExpenseInterest and Other Financial ChargesTotalAmortization of pension and other postretirement benefit items Actuarial losses recognized$ - $ - $ - $ - $516 $ - $516 Prior service (credit) recognized - - - - (84) - (84)Losses (gains) on cash flow hedges(13)(48)(14)3 - - (72)Losses (gains) on excluded component of net investment hedges - - - - - (13)(13)Total before tax$(13)$(48)$(14)$3 $432 $(13)$347 Tax expense (benefit)(23)Total reclassifications for the period, net of tax$324 Cost of" **Prior (2024):** In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers. This ASU should be applied prospectively to acquisitions occurring on or after the effective date of December 15, 2022, and early adoption was permitted. The Company adopted this guidance on January 1, 2022. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by the transition away from reference rates expected to be discontinued to alternative reference rates. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, to expand the scope of this guidance to include derivatives. The guidance was effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into on or before December 31, 2022. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which extends the period of time entities can utilize the reference rate reform relief guidance under ASU 2020-04 from December 31, 2022, to December 31, 2024. The Company will apply the guidance to impacted transactions during the transition period. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. **Current (2025):** 93 Honeywell International Inc. 93 Honeywell International Inc. 93 Honeywell International Inc. TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATAHONEYWELL INTERNATIONAL INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)(Dollars in tables in millions, except per share amounts) TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTS --- ## Modified: Billal M. Hammoud, 52 **Prior (2024):** 2023 President and Chief Executive Officer, Building Automation since January 2024. President and Chief Executive Officer, Honeywell Building Technologies from April 2023 to December 2023. President of Smart Energy and Thermal Solutions in Performance Materials and Technologies from November 2021 to March 2023. From April 2017 to November 2021, Mr. Hammoud served as President of ESAB Americas and Global Fabrication Solutions at Colfax where he led strategy, business operations, and financial performance. **Current (2025):** 2023 President and Chief Executive Officer, Building Automation since January 2024. President and Chief Executive Officer, Honeywell Building Technologies from April 2023 to December 2023. President of Smart Energy and Thermal Solutions in Performance Materials and Technologies from November 2021 to March 2023. From April 2017 to November 2021, Mr. Hammoud served as President of ESAB Americas and Global Fabrication Solutions at Colfax where he led strategy, business operations, and financial performance. --- ## Modified: NET REPOSITIONING CHARGES **Key changes:** - Reworded sentence: "In 2024, the Company recognized gross repositioning charges totaling $226 million, including severance costs of $136 million related to workforce reductions of 3,486 manufacturing and administrative positions mainly in the Company's Industrial Automation reportable business segment and corporate function." - Reworded sentence: "The repositioning charges included asset impairments of $22 million related to the write-down of certain assets primarily within the Company's Building Automation reportable business segment." - Reworded sentence: "repositioning charges In 2022, the Company recognized gross repositioning charges totaling $420 million, including severance costs of $122 million related to workforce reductions of 4,345 manufacturing and administrative positions mainly in the Company's Industrial Automation reportable business segment." - Reworded sentence: "facility in the Company's Industrial Automation reportable business segment." **Prior (2024):** In 2023, the Company recognized gross repositioning charges totaling $342 million, including severance costs of $162 million related to workforce reductions of 5,854 manufacturing and administrative positions mainly in the Company's Honeywell Building Technologies and Safety and Productivity Solutions reportable business segments. The workforce reductions related to productivity and ongoing functional transformation initiatives. The repositioning charges included asset impairments of $41 million related to the write-down of certain assets within the Company's Safety and Productivity Solutions reportable business segment and corporate function. The repositioning charges included exit costs of $139 million related to current period costs incurred for closure obligations associated with site transitions in the Company's Performance Materials and Technologies and Safety and Productivity Solutions reportable business segments. Also, $56 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 2022, the Company recognized repositioning charges totaling $420 million, including severance costs of $122 million related to workforce reductions of 4,345 manufacturing and administrative positions mainly in the Company's Safety and Productivity Solutions reportable business segment. The workforce reductions related to our productivity and ongoing functional transformation initiatives. The repositioning charges included asset impairments of $176 million related to the write-down of certain manufacturing and other equipment, primarily related to closing and relocating the production of certain respiratory manufacturing from a U.S.-based facility to a non-U.S. facility in the Company's Safety and Productivity Solutions reportable business segment. The repositioning charges included exit costs of $122 million related to current period costs incurred for closure obligations associated with site transitions in the Company's Performance Materials and Technologies and Aerospace reportable business segments. Also, $56 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 2021, the Company recognized repositioning charges totaling $331 million, including severance costs of $80 million related to workforce reductions of 6,432 manufacturing and administrative positions mainly in the Company's Safety and Productivity Solutions and Aerospace reportable business segments. The workforce reductions were primarily related to the realignment of a product line in the Company's Safety and Productivity Solutions reportable business segment, site transitions, mainly in the Aerospace reportable business segment, to more cost-effective locations, and the Company's productivity and ongoing functional transformation initiatives. The repositioning charges included asset impairments of $117 million primarily related to the write-down of certain manufacturing and other equipment. The repositioning charges included exit costs of $134 million primarily for current period exit costs incurred for previously approved repositioning projects, closure obligations associated with site transitions, and lease obligations for equipment. Also, $13 million of previously established reserves, primarily for severance, were returned to income due to adjustments to the scope of previously announced repositioning actions. 70 Honeywell International Inc. 70 Honeywell International Inc. 70 Honeywell International Inc. TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATAHONEYWELL INTERNATIONAL INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)(Dollars in tables in millions, except per share amounts) TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTS **Current (2025):** In 2024, the Company recognized gross repositioning charges totaling $226 million, including severance costs of $136 million related to workforce reductions of 3,486 manufacturing and administrative positions mainly in the Company's Industrial Automation reportable business segment and corporate function. The workforce reductions related to productivity and ongoing functional transformation initiatives. The repositioning charges included asset impairments of $22 million related to the write-down of certain assets primarily within the Company's Building Automation reportable business segment. The repositioning charges included exit costs of $68 million related to current period costs incurred for closure obligations associated with site transitions in the Company's Industrial Automation reportable business segment and corporate function. Also, $97 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. repositioning charges In 2023, the Company recognized gross repositioning charges totaling $342 million, including severance costs of $162 million related to workforce reductions of 5,854 manufacturing and administrative positions mainly in the Company's Industrial Automation and Building Automation reportable business segments. The workforce reductions related to productivity and ongoing functional transformation initiatives. The repositioning charges included asset impairments of $41 million related to the write-down of certain assets within the Company's Industrial Automation reportable business segment and corporate function. The repositioning charges included exit costs of $139 million related to current period costs incurred for closure obligations associated with site transitions in the Company's Industrial Automation reportable business segment. Also, $56 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. repositioning charges In 2022, the Company recognized gross repositioning charges totaling $420 million, including severance costs of $122 million related to workforce reductions of 4,345 manufacturing and administrative positions mainly in the Company's Industrial Automation reportable business segment. The workforce reductions related to productivity and ongoing functional transformation initiatives. The repositioning charges included asset impairments of $176 million related to the write-down of certain manufacturing and other equipment, primarily related to closing and relocating the production of certain respiratory manufacturing from a U.S.-based facility to a non-U.S. facility in the Company's Industrial Automation reportable business segment. The repositioning charges included exit costs of $122 million related to current period costs incurred for closure obligations associated with site transitions in the Company's Energy and Sustainability Solutions, Aerospace Technologies, and Industrial Automation reportable business segments. Also, $56 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. repositioning charges 70 Honeywell International Inc. 70 Honeywell International Inc. 70 Honeywell International Inc. TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATAHONEYWELL INTERNATIONAL INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)(Dollars in tables in millions, except per share amounts) TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTS --- ## Modified: INSURANCE RECOVERIES FOR ASBESTOS-RELATED LIABILITIES **Key changes:** - Reworded sentence: "Year Ended December 31, 2024Year Ended December 31, 2023Year Ended December 31, 2022BendixNARCOTotalBendixNARCOTotalBendixNARCOTotalBeginning of year$123 $88 $211 $130 $135 $265 $142 $221 $363 Probable insurance recoveries related to estimated liability3 - 3 11 - 11 5 2 7 Insurance receipts for asbestos-related liabilities(16)(8)(24)(18)(21)(39)(17)(20)(37)Insurance receivables settlements and write-offs - - - - (26)(26) - (68)(68)End of year$110 $80 $190 $123 $88 $211 $130 $135 $265 96 Honeywell International Inc." **Prior (2024):** Year Ended December 31, 2023Year Ended December 31, 2022Year Ended December 31, 2021BendixNARCOTotalBendixNARCOTotalBendixNARCOTotalBeginning of year$130 $135 $265 $142 $221 $363 $148 $254 $402 Probable insurance recoveries related to estimated liability11 - 11 5 2 7 7 - 7 Insurance receipts for asbestos-related liabilities(18)(21)(39)(17)(20)(37)(13)(33)(46)Insurance receivables settlements and write-offs - (26)(26) - (68)(68) - - - End of year$123 $88 $211 $130 $135 $265 $142 $221 $363 96 Honeywell International Inc. 96 Honeywell International Inc. 96 Honeywell International Inc. TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATAHONEYWELL INTERNATIONAL INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)(Dollars in tables in millions, except per share amounts) TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTS **Current (2025):** Year Ended December 31, 2024Year Ended December 31, 2023Year Ended December 31, 2022BendixNARCOTotalBendixNARCOTotalBendixNARCOTotalBeginning of year$123 $88 $211 $130 $135 $265 $142 $221 $363 Probable insurance recoveries related to estimated liability3 - 3 11 - 11 5 2 7 Insurance receipts for asbestos-related liabilities(16)(8)(24)(18)(21)(39)(17)(20)(37)Insurance receivables settlements and write-offs - - - - (26)(26) - (68)(68)End of year$110 $80 $190 $123 $88 $211 $130 $135 $265 96 Honeywell International Inc. 96 Honeywell International Inc. 96 Honeywell International Inc. TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATAHONEYWELL INTERNATIONAL INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)(Dollars in tables in millions, except per share amounts) TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTS --- ## Modified: (Dollars in tables in millions, except per share amounts) **Key changes:** - Reworded sentence: "Additionally, for the year ended December 31, 2022, Other charges include $41 million of incremental long-term contract labor cost inefficiencies due to severe supply chain disruptions (attributable to the COVID-19 pandemic) relating to the warehouse automation business within the Industrial Automation reportable business segment." - Reworded sentence: "These costs do not include normal operational inefficiencies experienced during a challenging operating environment in 2022." **Prior (2024):** In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers. This ASU should be applied prospectively to acquisitions occurring on or after the effective date of December 15, 2022, and early adoption was permitted. The Company adopted this guidance on January 1, 2022. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by the transition away from reference rates expected to be discontinued to alternative reference rates. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, to expand the scope of this guidance to include derivatives. The guidance was effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into on or before December 31, 2022. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which extends the period of time entities can utilize the reference rate reform relief guidance under ASU 2020-04 from December 31, 2022, to December 31, 2024. The Company will apply the guidance to impacted transactions during the transition period. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. **Current (2025):** In September 2022, the FASB issued ASU 2022-04, Liabilities - Supplier Finance Programs (Topic 405): Disclosure of Supplier Finance Program Obligations, to enhance the transparency of supplier finance programs. The new standard requires annual disclosure of the key terms of the program, a description of where in the financial statements amounts outstanding under the program are presented, a rollforward of such amounts, and interim disclosure of amounts outstanding as of the end of each period. The guidance does not affect recognition, measurement, or financial statement presentation of supplier finance programs. The ASU was effective on January 1, 2023, except for the rollforward, which was effective on January 1, 2024. The Company adopted this guidance on January 1, 2023, with the exception of the rollforward adopted on January 1, 2024. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. --- ## Modified: STOCK OPTIONS **Key changes:** - Reworded sentence: "The exercise price, term, and other conditions applicable to each option granted under the Company's stock plans are generally determined by the Management Development and Compensation Committee of the Board." - Reworded sentence: "Options generally vest over a four-year period and expire after 10 years." - Reworded sentence: "The following table summarizes the impact to the Consolidated Statement of Operations from stock options: Years Ended December 31,202420232022Compensation expense$52 $48 $45 Future income tax benefit recognized12 11 10 The following table sets forth fair value per share information, including related weighted average assumptions, used to determine compensation cost: Years Ended December 31,202420232022Weighted average fair value per share of options granted during the year1$37.88 $38.84 $31.22 AssumptionsExpected annual dividend yield2.60 %2.50 %2.58 %Expected volatility21.45 %22.42 %23.05 %Risk-free rate of return4.08 %3.94 %1.97 %Expected option term (years)4.874.864.741Estimated on date of grant using Black-Scholes option-pricing model." **Prior (2024):** The exercise price, term, and other conditions applicable to each option granted under the Company's stock plans are generally determined by the Management Development and Compensation Committee of the Board of Directors. The exercise price of stock options is set on the grant date and may not be less than the fair market value per share of the Company's stock on that date. The fair value is recognized as an expense over the employee's requisite service period (generally the vesting period of the award). Options generally vest over a four-year period and expire after ten years. The fair value of each option award is estimated on the date of grant using the Black-Scholes option-pricing model. Expected volatility is based on implied volatilities from traded options on our common stock and historical volatility of the Company's common stock. The Company used a Monte Carlo simulation model to derive an expected term which represents an estimate of the time options are expected to remain outstanding. Such model uses historical data to estimate option exercise activity and post-vest termination behavior. The risk-free rate for periods within the contractual life of the option is based on the U.S. treasury yield curve in effect at the time of grant. The following table summarizes the impact to the Consolidated Statement of Operations from stock options: Years Ended December 31,202320222021Compensation expense$48 $45 $55 Future income tax benefit recognized11 10 11 88 Honeywell International Inc. 88 Honeywell International Inc. 88 Honeywell International Inc. TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATAHONEYWELL INTERNATIONAL INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)(Dollars in tables in millions, except per share amounts) TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTS **Current (2025):** The exercise price, term, and other conditions applicable to each option granted under the Company's stock plans are generally determined by the Management Development and Compensation Committee of the Board. The exercise price of stock options is set on the grant date and may not be less than the fair market value per share of the Company's stock on that date. The fair value is recognized as an expense over the employee's requisite service period (generally the vesting period of the award). Options generally vest over a four-year period and expire after 10 years. The fair value of each option award is estimated on the date of grant using the Black-Scholes option-pricing model. Expected volatility is based on implied volatilities from traded options on our common stock and historical volatility of the Company's common stock. The Company used a Monte Carlo simulation model to derive an expected term which represents an estimate of the time options are expected to remain outstanding. Such model uses historical data to estimate option exercise activity and post-vest termination behavior. The risk-free rate for periods within the contractual life of the option is based on the U.S. treasury yield curve in effect at the time of grant. The following table summarizes the impact to the Consolidated Statement of Operations from stock options: Years Ended December 31,202420232022Compensation expense$52 $48 $45 Future income tax benefit recognized12 11 10 The following table sets forth fair value per share information, including related weighted average assumptions, used to determine compensation cost: Years Ended December 31,202420232022Weighted average fair value per share of options granted during the year1$37.88 $38.84 $31.22 AssumptionsExpected annual dividend yield2.60 %2.50 %2.58 %Expected volatility21.45 %22.42 %23.05 %Risk-free rate of return4.08 %3.94 %1.97 %Expected option term (years)4.874.864.741Estimated on date of grant using Black-Scholes option-pricing model. Weighted average fair value per share of options granted during the year1 88 Honeywell International Inc. 88 Honeywell International Inc. 88 Honeywell International Inc. TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATAHONEYWELL INTERNATIONAL INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)(Dollars in tables in millions, except per share amounts) TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTS --- ## Modified: (Dollars in tables in millions, except per share amounts) **Key changes:** - Reworded sentence: "federal statutory income tax rate is reconciled to the effective income tax rate as follows: Years Ended December 31,202420232022U.S." - Reworded sentence: "earnings1,2,3(0.5)(2.0)(0.4)U.S." - Reworded sentence: "legislative change, offset by 3.6% deferred tax expense resulting from a full valuation allowance.42024 includes (0.9)% deferred tax benefit resulting from an outside basis difference in assets held for sale, offset by 0.9% deferred tax expense resulting from a full valuation allowance." - Reworded sentence: "valuation allowance4 Net of changes in valuation allowance." - Added sentence: "2024 includes (0.9)% deferred tax benefit resulting from an outside basis difference in assets held for sale, offset by 0.9% deferred tax expense resulting from a full valuation allowance." **Prior (2024):** In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers. This ASU should be applied prospectively to acquisitions occurring on or after the effective date of December 15, 2022, and early adoption was permitted. The Company adopted this guidance on January 1, 2022. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by the transition away from reference rates expected to be discontinued to alternative reference rates. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, to expand the scope of this guidance to include derivatives. The guidance was effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into on or before December 31, 2022. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which extends the period of time entities can utilize the reference rate reform relief guidance under ASU 2020-04 from December 31, 2022, to December 31, 2024. The Company will apply the guidance to impacted transactions during the transition period. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. **Current (2025):** In September 2022, the FASB issued ASU 2022-04, Liabilities - Supplier Finance Programs (Topic 405): Disclosure of Supplier Finance Program Obligations, to enhance the transparency of supplier finance programs. The new standard requires annual disclosure of the key terms of the program, a description of where in the financial statements amounts outstanding under the program are presented, a rollforward of such amounts, and interim disclosure of amounts outstanding as of the end of each period. The guidance does not affect recognition, measurement, or financial statement presentation of supplier finance programs. The ASU was effective on January 1, 2023, except for the rollforward, which was effective on January 1, 2024. The Company adopted this guidance on January 1, 2023, with the exception of the rollforward adopted on January 1, 2024. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. --- ## Modified: RESEARCH AND DEVELOPMENT **Key changes:** - Removed sentence: "Amounts expensed as incurred for Company-sponsored research and development projects are included in Research and development expenses and were $1,456 million, $1,478 million, and $1,333 million for the years ended December 31, 2023, 2022, and 2021, respectively." - Removed sentence: "This revenue was $1,303 million, $1,336 million, and $1,284 million for the years ended December 31, 2023, 2022, and 2021, respectively." **Prior (2024):** Research and development costs for projects are expensed as incurred, unless these costs relate to contracts with customers where the Company receives reimbursements. Amounts expensed as incurred for Company-sponsored research and development projects are included in Research and development expenses and were $1,456 million, $1,478 million, and $1,333 million for the years ended December 31, 2023, 2022, and 2021, respectively. Costs related to contracts with customers for customer-sponsored research and development projects are included as a contract cost and included in Cost of products and services sold when revenue from such contracts is recognized, consistent with the Company's sales recognition policies. This revenue was $1,303 million, $1,336 million, and $1,284 million for the years ended December 31, 2023, 2022, and 2021, respectively. **Current (2025):** Research and development costs for projects are expensed as incurred, unless these costs relate to contracts with customers where the Company receives reimbursements. Costs related to contracts with customers for customer-sponsored research and development projects are included as a contract cost and included in Cost of products and services sold when revenue from such contracts is recognized, consistent with the Company's sales recognition policies. --- ## Modified: GOODWILL AND INDEFINITE-LIVED INTANGIBLE ASSETS **Key changes:** - Added sentence: "The Company recognizes goodwill and indefinite-lived intangible asset balances in conjunction with business combinations, with amounts being recorded at their respective fair values upon the closing of a transaction." - Added sentence: "Subsequent to the closing of a business combination, the Company evaluates and books adjustments, as applicable, to the preliminary amounts recorded over the relevant measurement period, which is not to exceed one year from the acquisition date." - Removed sentence: "60 Honeywell International Inc." - Removed sentence: "60 Honeywell International Inc." - Removed sentence: "60 Honeywell International Inc." **Prior (2024):** Goodwill and indefinite-lived intangible assets are subject to impairment testing annually as of the first day of the fourth quarter, or if a triggering event occurs or changes in circumstances indicate that the carrying amount may not be fully recoverable. This testing compares carrying values to fair values and, when appropriate, the carrying value of these assets is reduced to fair value, not to exceed the carrying value of goodwill. The Company completed its annual goodwill impairment test as of the first day of the fourth quarter and determined there was no impairment as of that date. The Company is not aware of any additional triggering events. 60 Honeywell International Inc. 60 Honeywell International Inc. 60 Honeywell International Inc. TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATAHONEYWELL INTERNATIONAL INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)(Dollars in tables in millions, except per share amounts) TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTS **Current (2025):** The Company recognizes goodwill and indefinite-lived intangible asset balances in conjunction with business combinations, with amounts being recorded at their respective fair values upon the closing of a transaction. Subsequent to the closing of a business combination, the Company evaluates and books adjustments, as applicable, to the preliminary amounts recorded over the relevant measurement period, which is not to exceed one year from the acquisition date. Goodwill and indefinite-lived intangible assets are subject to impairment testing annually as of the first day of the fourth quarter, or if a triggering event occurs or changes in circumstances indicate that the carrying amount may not be fully recoverable. This testing compares carrying values to fair values and, when appropriate, the carrying value of these assets is reduced to fair value, not to exceed the carrying value of goodwill. The Company completed its annual goodwill impairment test as of the first day of the fourth quarter and determined there was no impairment as of that date. The Company is not aware of any additional triggering events. --- ## Modified: (Dollars in tables in millions, except per share amounts) **Key changes:** - Reworded sentence: "In conjunction with the 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." - Reworded sentence: "This receivable amount recorded in 2024 and 2023 was $202 million and $187 million, respectively." - Removed sentence: "As of December 31, 2022, Other current assets and Other assets included $140 million and $474 million, respectively, for the short-term and long-term portion of the receivable amount due from Resideo under the indemnification and reimbursement agreement." **Prior (2024):** In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers. This ASU should be applied prospectively to acquisitions occurring on or after the effective date of December 15, 2022, and early adoption was permitted. The Company adopted this guidance on January 1, 2022. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by the transition away from reference rates expected to be discontinued to alternative reference rates. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, to expand the scope of this guidance to include derivatives. The guidance was effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into on or before December 31, 2022. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which extends the period of time entities can utilize the reference rate reform relief guidance under ASU 2020-04 from December 31, 2022, to December 31, 2024. The Company will apply the guidance to impacted transactions during the transition period. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. **Current (2025):** In September 2022, the FASB issued ASU 2022-04, Liabilities - Supplier Finance Programs (Topic 405): Disclosure of Supplier Finance Program Obligations, to enhance the transparency of supplier finance programs. The new standard requires annual disclosure of the key terms of the program, a description of where in the financial statements amounts outstanding under the program are presented, a rollforward of such amounts, and interim disclosure of amounts outstanding as of the end of each period. The guidance does not affect recognition, measurement, or financial statement presentation of supplier finance programs. The ASU was effective on January 1, 2023, except for the rollforward, which was effective on January 1, 2024. The Company adopted this guidance on January 1, 2023, with the exception of the rollforward adopted on January 1, 2024. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. --- ## Modified: (Dollars in tables in millions, except per share amounts) **Key changes:** - Removed sentence: "The Company operates a global business in a wide variety of foreign currencies." - Removed sentence: "The Company's exposure to market risk for changes in foreign currency exchange rates arises from international financing activities between subsidiaries, foreign currency denominated monetary assets and liabilities, and transactions arising from international trade." - Removed sentence: "The Company's objective is to preserve the U.S." - Removed sentence: "Dollar value of foreign currency denominated cash flows and earnings." - Removed sentence: "The Company monitors its collective foreign currency exposure and enters into foreign currency exchange forward and option contracts (foreign currency exchange contracts) with third parties, when necessary, to minimize the impact of changes in foreign currency exchange rates." **Prior (2024):** The Company operates a global business in a wide variety of foreign currencies. The Company's exposure to market risk for changes in foreign currency exchange rates arises from international financing activities between subsidiaries, foreign currency denominated monetary assets and liabilities, and transactions arising from international trade. The Company's objective is to preserve the U.S. Dollar value of foreign currency denominated cash flows and earnings. The Company monitors its collective foreign currency exposure and enters into foreign currency exchange forward and option contracts (foreign currency exchange contracts) with third parties, when necessary, to minimize the impact of changes in foreign currency exchange rates. The Company has monetary assets and liabilities denominated in non-functional currencies. Prior to conversion into U.S. Dollars, these assets and liabilities are remeasured at spot exchange rates as of the balance sheet date. The Company recognizes effects of changes in spot rates in Other (income) expense. The Company uses foreign currency exchange contracts to hedge foreign currency exposure. These contracts are marked-to-market in net income and offset gains and losses on the non-functional currency denominated monetary assets and liabilities being hedged. The Company also uses foreign currency contracts to hedge forecasted sales and purchases, which are denominated in non-functional currencies. Changes in the forecasted non-functional currency cash flows due to movements in exchange rates are substantially offset by changes in the fair value of these foreign currency exchange contracts designated as hedges. Market value gains and losses on these contracts are recognized in earnings when the hedged transaction is recognized. As of December 31, 2023, and 2022, the Company held contracts with notional amounts of $8,910 million and $10,545 million, respectively, to exchange foreign currencies, principally the U.S. Dollar, Euro, Canadian Dollar, British Pound, Mexican Peso, Chinese Renminbi, and Indian Rupee. The Company also designates certain foreign currency debt and derivative contracts as hedges against portions of its net investment in foreign operations. Gains or losses of the foreign currency debt and derivative contracts designated as net investment hedges are recorded in the same manner as foreign currency translation adjustments. **Current (2025):** In September 2022, the FASB issued ASU 2022-04, Liabilities - Supplier Finance Programs (Topic 405): Disclosure of Supplier Finance Program Obligations, to enhance the transparency of supplier finance programs. The new standard requires annual disclosure of the key terms of the program, a description of where in the financial statements amounts outstanding under the program are presented, a rollforward of such amounts, and interim disclosure of amounts outstanding as of the end of each period. The guidance does not affect recognition, measurement, or financial statement presentation of supplier finance programs. The ASU was effective on January 1, 2023, except for the rollforward, which was effective on January 1, 2024. The Company adopted this guidance on January 1, 2023, with the exception of the rollforward adopted on January 1, 2024. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. --- ## Modified: (Dollars in tables in millions, except per share amounts) **Key changes:** - Reworded sentence: "Year Ended December 31, 2022Net SalesCost ofProducts SoldCost ofServices SoldSelling, General andAdministrative ExpensesOther(Income) ExpenseInterest and OtherFinancial Charges$35,466 $16,955 $5,392 $5,214 $(366)$414 Gain (loss) on cash flow hedgesForeign currency exchange contractsAmount reclassified from accumulated other comprehensive loss into income13 50 14 (3) - - Commodity contractsAmount reclassified from accumulated other comprehensive loss into income - (2) - - - - Gain (loss) on fair value hedgesInterest rate swap agreementsHedged items - - - - - 347 Derivatives designated as hedges - - - - - (347)Gain (loss) on net investment hedgesForeign currency exchange contractsAmount excluded from effectiveness testing recognized in earnings using an amortization approach - - - - - 13 Gain (loss) on derivatives not designated as hedging instrumentsForeign currency exchange contracts - - - - 351 - Cost of" **Prior (2024):** Year Ended December 31, 2022Net SalesCost ofProducts SoldCost ofServices SoldSelling, General andAdministrative ExpensesOther(Income) ExpenseInterest and OtherFinancial Charges$35,466 $16,955 $5,392 $5,214 $(366)$414 Gain or (loss) on cash flow hedgesForeign currency exchange contractsAmount reclassified from accumulated other comprehensive income (loss) into income13 50 14 (3) - - Commodity ContractsAmount reclassified from accumulated other comprehensive income (loss) into income - (2) - - - - Gain or (loss) on fair value hedgesInterest rate swap agreementsHedged items - - - - - 347 Derivatives designated as hedges - - - - - (347)Gain or (loss) on net investment hedgesForeign currency exchange contractsAmount excluded from effectiveness testing recognized in earnings using an amortization approach - - - - - 13 Gain or (loss) on derivatives not designated as hedging instrumentsForeign currency exchange contracts - - - - 351 - Cost of **Current (2025):** In September 2022, the FASB issued ASU 2022-04, Liabilities - Supplier Finance Programs (Topic 405): Disclosure of Supplier Finance Program Obligations, to enhance the transparency of supplier finance programs. The new standard requires annual disclosure of the key terms of the program, a description of where in the financial statements amounts outstanding under the program are presented, a rollforward of such amounts, and interim disclosure of amounts outstanding as of the end of each period. The guidance does not affect recognition, measurement, or financial statement presentation of supplier finance programs. The ASU was effective on January 1, 2023, except for the rollforward, which was effective on January 1, 2024. The Company adopted this guidance on January 1, 2023, with the exception of the rollforward adopted on January 1, 2024. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. --- ## Modified: (Dollars in tables in millions, except per share amounts) **Key changes:** - Reworded sentence: "SEC MATTER The Company is cooperating with a formal investigation by the SEC which is primarily focused on certain accounting matters with respect to the Company's former Performance Materials and Technologies segment." **Prior (2024):** In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers. This ASU should be applied prospectively to acquisitions occurring on or after the effective date of December 15, 2022, and early adoption was permitted. The Company adopted this guidance on January 1, 2022. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by the transition away from reference rates expected to be discontinued to alternative reference rates. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, to expand the scope of this guidance to include derivatives. The guidance was effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into on or before December 31, 2022. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which extends the period of time entities can utilize the reference rate reform relief guidance under ASU 2020-04 from December 31, 2022, to December 31, 2024. The Company will apply the guidance to impacted transactions during the transition period. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. **Current (2025):** In September 2022, the FASB issued ASU 2022-04, Liabilities - Supplier Finance Programs (Topic 405): Disclosure of Supplier Finance Program Obligations, to enhance the transparency of supplier finance programs. The new standard requires annual disclosure of the key terms of the program, a description of where in the financial statements amounts outstanding under the program are presented, a rollforward of such amounts, and interim disclosure of amounts outstanding as of the end of each period. The guidance does not affect recognition, measurement, or financial statement presentation of supplier finance programs. The ASU was effective on January 1, 2023, except for the rollforward, which was effective on January 1, 2024. The Company adopted this guidance on January 1, 2023, with the exception of the rollforward adopted on January 1, 2024. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. --- ## Modified: (Dollars in tables in millions) **Key changes:** - Reworded sentence: "We leverage operating cash flows as the primary source of liquidity." - Reworded sentence: "We also maintain other key sources of liquidity, including U.S." - Reworded sentence: "CASH As of December 31, 2024, and 2023, we held $11.0 billion and $8.1 billion, respectively, of cash and cash equivalents, including our short-term investments." - Reworded sentence: "As of December 31, 2024, we held $8.0 billion of the Company's cash, cash equivalents, and short-term investments in non-U.S." - Reworded sentence: "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: Years Ended December 31,20242023Change2024vs.20232022Change2023vs.2022Cash and cash equivalents at beginning of period$7,925 $9,627 $(1,702)$10,959 $(1,332)Operating activitiesNet income attributable to Honeywell5,705 5,658 47 4,966 692 Noncash adjustments1,283 1,980 (697)1,946 34 Changes in working capital(305)(150)(155)(1,334)1,184 NARCO Buyout payment - (1,325)1,325 - (1,325)Other operating activities(586)(823)237 (304)(519)Net cash provided by operating activities6,097 5,340 757 5,274 66 Net cash used for investing activities(10,157)(1,293)(8,864)(93)(1,200)Net cash provided by (used for) financing activities6,839 (5,763)12,602 (6,330)567 Effect of foreign exchange rate changes on cash and cash equivalents(137)14 (151)(183)197 Net increase (decrease) in cash and cash equivalents2,642 (1,702)4,344 (1,332)(370)Cash and cash equivalents at end of period$10,567 $7,925 $2,642 $9,627 $(1,702) Change 2024 vs." **Prior (2024):** We manage our businesses to maximize operating cash flows as the primary source of liquidity. Each of our businesses focus 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 December 31, 2023, and 2022, we held $8.1 billion and $10.1 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 December 31, 2023, $5.9 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: Years Ended December 31,20232022Change 2023vs.20222021Change2022vs.2021Cash and cash equivalents at beginning of period$9,627 $10,959 $(1,332)$14,275 $(3,316)Operating activitiesNet income attributable to Honeywell5,658 4,966 692 5,542 (576)Noncash adjustments1,980 1,946 34 971 975 Changes in working capital(150)(1,334)1,184 51 (1,385)NARCO Buyout payment(1,325) - (1,325) - - Other operating activities(823)(304)(519)(526)222 Net cash provided by operating activities5,340 5,274 66 6,038 (764)Net cash used for investing activities(1,293)(93)(1,200)(1,061)968 Net cash used for financing activities(5,763)(6,330)567 (8,254)1,924 Effect of foreign exchange rate changes on cash and cash equivalents14 (183)197 (39)(144)Net increase (decrease) in cash and cash equivalents(1,702)(1,332)(370)(3,316)1,984 Cash and cash equivalents at end of period$7,925 $9,627 $(1,702)$10,959 $(1,332) **Current (2025):** We leverage operating cash flows as the primary source of liquidity. Each of our businesses focus on increasing operating cash flows through revenue growth, margin expansion, and improved working capital turnover. We also maintain other key sources of liquidity, including 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 December 31, 2024, and 2023, we held $11.0 billion and $8.1 billion, respectively, of cash and cash equivalents, including our short-term investments. We monitor 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 December 31, 2024, we held $8.0 billion of the Company's cash, cash equivalents, and short-term investments in 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: Years Ended December 31,20242023Change2024vs.20232022Change2023vs.2022Cash and cash equivalents at beginning of period$7,925 $9,627 $(1,702)$10,959 $(1,332)Operating activitiesNet income attributable to Honeywell5,705 5,658 47 4,966 692 Noncash adjustments1,283 1,980 (697)1,946 34 Changes in working capital(305)(150)(155)(1,334)1,184 NARCO Buyout payment - (1,325)1,325 - (1,325)Other operating activities(586)(823)237 (304)(519)Net cash provided by operating activities6,097 5,340 757 5,274 66 Net cash used for investing activities(10,157)(1,293)(8,864)(93)(1,200)Net cash provided by (used for) financing activities6,839 (5,763)12,602 (6,330)567 Effect of foreign exchange rate changes on cash and cash equivalents(137)14 (151)(183)197 Net increase (decrease) in cash and cash equivalents2,642 (1,702)4,344 (1,332)(370)Cash and cash equivalents at end of period$10,567 $7,925 $2,642 $9,627 $(1,702) Change 2024 vs. 2023 Change 2023 vs. 2022 37 Honeywell International Inc. 37 Honeywell International Inc. 37 Honeywell International Inc. TABLE OF CONTENTSLIQUIDITY AND CAPITAL RESOURCES TABLE OF CONTENTSLIQUIDITY AND CAPITAL RESOURCES TABLE OF CONTENTS --- ## Modified: DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE **Key changes:** - Reworded sentence: "Information relating to the Directors of Honeywell, as well as information relating to Honeywell's insider trading policies and practices and compliance with Section 16(a) of the Securities Exchange Act of 1934, will be contained in the Proxy Statement, which will be filed with the SEC pursuant to Regulation 14A not later than 120 days after December 31, 2024, and such information is incorporated herein by reference." - Reworded sentence: "Washington are Audit Committee financial experts as defined by applicable SEC rules and that each member of the Audit Committee satisfies the financial sophistication criteria established by the Nasdaq." - Reworded sentence: "Honeywell's corporate governance policies and procedures, including the Code of Business Conduct, Corporate Governance Guidelines, Insider Trading Policy, and Charters of the Committees of the Board are available, free of charge, on our Investor Relations website (investor.honeywell.com) under the heading Governance (see Governance Overview), or by writing to Honeywell, 855 South Mint Street, Charlotte, North Carolina 28202, c/o Vice President and Corporate Secretary." - Removed sentence: "On December 8, 2023, the Board of Directors amended and restated the By-laws of the Company (as amended and restated, the "By-laws"), effective as of such date, to (i) update the procedures and information requirements for the nomination of directors and the proposal of business for consideration at meetings of shareowners, including with respect to Rule 14a-19 promulgated under the Exchange Act; (ii) provide the chair of the meeting of shareowners with the power and duty to determine whether, in certain specified circumstances, a nomination shall be disregarded or business proposal shall not be transacted; (iii) clarify that the chair of the meeting may prescribe rules and determinations as to the conduct of the shareowners' meeting; and (iv) clarify and conform various provisions of the By-laws to the General Corporation Law of the State of Delaware and to other provisions of the By-laws and make certain non-substantive changes and updates." **Prior (2024):** Information relating to the Directors of Honeywell, as well as information relating to compliance with Section 16(a) of the Securities Exchange Act of 1934, will be contained in the Proxy Statement, which will be filed with the SEC pursuant to Regulation 14A not later than 120 days after December 31, 2023, and such information is incorporated herein by reference. Certain information relating to the Executive Officers of Honeywell appears in this Form 10-K under the heading titled Information about Our Executive Officers. The members of the Audit Committee of our Board of Directors are: D. Scott Davis (Chair), Kevin Burke, Michael W. Lamach, Robin L. Washington, and Robin Watson. The Board has determined that Mr. Davis and Ms. Washington are Audit Committee financial experts as defined by applicable SEC rules and that Mr. Davis, Mr. Burke, Mr. Lamach, Ms. Washington, and Mr. Watson satisfy the financial sophistication criteria established by the Nasdaq. All members of the Audit Committee are independent as that term is defined in applicable SEC rules and Nasdaq listing standards. Honeywell's corporate governance policies and procedures, including the Code of Business Conduct, Corporate Governance Guidelines, and Charters of the Committees of the Board of Directors are available, free of charge, on our Investor Relations website (investor.honeywell.com) under the heading Governance (see Governance Overview), or by writing to Honeywell, 855 South Mint Street, Charlotte, North Carolina 28202, c/o Vice President and Corporate Secretary. Honeywell's Code of Business Conduct applies to all Honeywell directors, officers (including the Chief Executive Officer, Chief Financial Officer, and Controller), and employees. Amendments to or waivers of the Code of Business Conduct granted to any of Honeywell's directors or executive officers will be published on our website within four business days of such amendment or waiver. On December 8, 2023, the Board of Directors amended and restated the By-laws of the Company (as amended and restated, the "By-laws"), effective as of such date, to (i) update the procedures and information requirements for the nomination of directors and the proposal of business for consideration at meetings of shareowners, including with respect to Rule 14a-19 promulgated under the Exchange Act; (ii) provide the chair of the meeting of shareowners with the power and duty to determine whether, in certain specified circumstances, a nomination shall be disregarded or business proposal shall not be transacted; (iii) clarify that the chair of the meeting may prescribe rules and determinations as to the conduct of the shareowners' meeting; and (iv) clarify and conform various provisions of the By-laws to the General Corporation Law of the State of Delaware and to other provisions of the By-laws and make certain non-substantive changes and updates. **Current (2025):** Information relating to the Directors of Honeywell, as well as information relating to Honeywell's insider trading policies and practices and compliance with Section 16(a) of the Securities Exchange Act of 1934, will be contained in the Proxy Statement, which will be filed with the SEC pursuant to Regulation 14A not later than 120 days after December 31, 2024, and such information is incorporated herein by reference. Certain information relating to the Executive Officers of Honeywell appears in this Form 10-K in the section titled Information about Our Executive Officers. The members of the Audit Committee of our Board of Directors are: Michael W. Lamach (Chair), William S. Ayer, Kevin Burke, D. Scott Davis, Robin L. Washington, and Robin Watson. The Board has determined that Mr. Davis and Ms. Washington are Audit Committee financial experts as defined by applicable SEC rules and that each member of the Audit Committee satisfies the financial sophistication criteria established by the Nasdaq. All members of the Audit Committee are independent as that term is defined in applicable SEC rules and Nasdaq listing standards. Honeywell's corporate governance policies and procedures, including the Code of Business Conduct, Corporate Governance Guidelines, Insider Trading Policy, and Charters of the Committees of the Board are available, free of charge, on our Investor Relations website (investor.honeywell.com) under the heading Governance (see Governance Overview), or by writing to Honeywell, 855 South Mint Street, Charlotte, North Carolina 28202, c/o Vice President and Corporate Secretary. Honeywell's Code of Business Conduct applies to all Honeywell directors, officers (including the Chief Executive Officer, Chief Financial Officer, and Controller), and employees. Amendments to or waivers of the Code of Business Conduct granted to any of Honeywell's directors or executive officers will be published on our website within four business days of such amendment or waiver. --- ## Modified: DERIVATIVE AND HEDGING INSTRUMENTS **Key changes:** - Reworded sentence: "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)December 31, 2024December 31, 2023December 31, 2024December 31, 2023December 31, 2024December 31, 2023Derivatives in fair value hedging relationships Interest rate swap agreements$3,899 $4,717 $3 $18 $(139)$(184)Derivatives in cash flow hedging relationshipsForeign currency exchange contracts1,235 712 30 28 (10)(4)Commodity contracts1 6 - - - (1)Derivatives in net investment hedging relationshipsCross currency swap agreements7,214 4,264 124 - (56)(145)Total derivatives designated as hedging instruments12,349 9,699 157 46 (205)(334)Derivatives not designated as hedging instrumentsForeign currency exchange contracts8,773 8,198 3 7 (5)(5)Total derivatives at fair value$21,122 $17,897 $160 $53 $(210)$(339) All Derivative assets are presented in Other current assets or Other assets." - Reworded sentence: "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 $6,158 million and $6,099 million as of December 31, 2024, and 2023, respectively." - Reworded sentence: "Gains and losses on interest rate swap agreements recognized in earnings were $30 million of expense, $121 million of income, and $347 million of expense for the years ended December 31, 2024, 2023, and 2022, respectively." - Reworded sentence: "83 Honeywell International Inc." **Prior (2024):** 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)December 31, 2023December 31, 2022December 31, 2023December 31, 2022December 31, 2023December 31, 2022Derivatives in fair value hedging relationships Interest rate swap agreements$4,717 $4,984 $18 $16 $(184)$(303)Derivatives in cash flow hedging relationshipsForeign currency exchange contracts712 866 28 19 (4)(5)Commodity contracts6 9 - - (1)(1)Derivatives in net investment hedging relationshipsCross currency swap agreements4,264 3,189 - 90 (145) - Total derivatives designated as hedging instruments9,699 9,048 46 125 (334)(309)Derivatives not designated as hedging instrumentsForeign currency exchange contracts8,198 9,679 7 74 (5)(3)Total derivatives at fair value$17,897 $18,727 $53 $199 $(339)$(312) 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 $6,099 million and $3,836 million as of December 31, 2023, and 2022, respectively. Interest rate swap agreements are designated as hedge relationships with gains or losses on the derivative recognized in Interest and other financial charges offsetting the gains and losses on the underlying debt being hedged. Gains and losses on interest rate swap agreements recognized in earnings were $121 million of income, $347 million of expense, and $135 million of expense for the years ended December 31, 2023, 2022, and 2021, respectively. Gains and losses are fully offset by losses and gains on the underlying debt being hedged. The following table sets forth the amounts recorded in the Consolidated Balance Sheet related to cumulative basis adjustments for fair value hedges: **Current (2025):** 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)December 31, 2024December 31, 2023December 31, 2024December 31, 2023December 31, 2024December 31, 2023Derivatives in fair value hedging relationships Interest rate swap agreements$3,899 $4,717 $3 $18 $(139)$(184)Derivatives in cash flow hedging relationshipsForeign currency exchange contracts1,235 712 30 28 (10)(4)Commodity contracts1 6 - - - (1)Derivatives in net investment hedging relationshipsCross currency swap agreements7,214 4,264 124 - (56)(145)Total derivatives designated as hedging instruments12,349 9,699 157 46 (205)(334)Derivatives not designated as hedging instrumentsForeign currency exchange contracts8,773 8,198 3 7 (5)(5)Total derivatives at fair value$21,122 $17,897 $160 $53 $(210)$(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 $6,158 million and $6,099 million as of December 31, 2024, and 2023, respectively. Interest rate swap agreements are designated as hedge relationships with gains or losses on the derivative recognized in Interest and other financial charges offsetting the gains and losses on the underlying debt being hedged. Gains and losses on interest rate swap agreements recognized in earnings were $30 million of expense, $121 million of income, and $347 million of expense for the years ended December 31, 2024, 2023, and 2022, respectively. Gains and losses are fully offset by losses and gains on the underlying debt being hedged. 83 Honeywell International Inc. 83 Honeywell International Inc. 83 Honeywell International Inc. TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATAHONEYWELL INTERNATIONAL INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)(Dollars in tables in millions, except per share amounts) TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTS --- ## Modified: INDEX TO THE CONSOLIDATED FINANCIAL STATEMENTS **Key changes:** - Reworded sentence: "52Consolidated Statement of Operations53Consolidated Statement of Comprehensive Income54Consolidated Balance Sheet55Consolidated Statement of Cash Flows56Consolidated Statement of Shareowners' Equity57Note 1." - Reworded sentence: "Property, Plant and Equipment - Net77Note 8." - Reworded sentence: "Accrued Liabilities87Note 14." - Reworded sentence: "Accumulated Other Comprehensive Loss94Note 18." - Reworded sentence: "Commitments and Contingencies100Note 20." **Prior (2024):** 54Consolidated Statement of Operations55Consolidated Statement of Comprehensive Income56Consolidated Balance Sheet57Consolidated Statement of Cash Flows58Consolidated Statement of Shareowners' Equity59Note 1. Summary of Significant Accounting Policies64Note 2. Acquisitions and Divestitures66Note 3. Revenue Recognition and Contracts with Customers69Note 4. Repositioning and Other Charges72Note 5. Income Taxes76Note 6. Inventories76Note 7. Property, Plant and Equipment - Net76Note 8. Goodwill and Other Intangible Assets - Net78Note 9. Long-term Debt and Credit Agreements80Note 10. Leases82Note 11. Derivative Instruments and Hedging Transactions85Note 12. Fair Value Measurements87Note 13. Accrued Liabilities88Note 14. Other Liabilities88Note 15. Stock-Based Compensation Plans91Note 16. Earnings Per Share92Note 17. Accumulated Other Comprehensive Income (Loss)94Note 18. Capital Stock95Note 19. Commitments and Contingencies101Note 20. Pension and Other Postretirement Benefits111Note 21. Other (Income) Expense111Note 22. Segment Financial Data114Note 23. Geographic Areas - Financial Data114Note 24. Supplemental Cash Flow Information115Report of Independent Registered Public Accounting Firm 54 Consolidated Statement of Operations 55 Consolidated Statement of Comprehensive Income 56 Consolidated Balance Sheet 57 Consolidated Statement of Cash Flows 58 Consolidated Statement of Shareowners' Equity 59 Note 1. Summary of Significant Accounting Policies 64 Note 2. Acquisitions and Divestitures 66 Note 3. Revenue Recognition and Contracts with Customers 69 Note 4. Repositioning and Other Charges 72 Note 5. Income Taxes 76 Note 6. Inventories 76 Note 7. Property, Plant and Equipment - Net 76 Note 8. Goodwill and Other Intangible Assets - Net 78 Note 9. Long-term Debt and Credit Agreements 80 Note 10. Leases 82 Note 11. Derivative Instruments and Hedging Transactions 85 Note 12. Fair Value Measurements 87 Note 13. Accrued Liabilities 88 Note 14. Other Liabilities 88 Note 15. Stock-Based Compensation Plans 91 Note 16. Earnings Per Share 92 Note 17. Accumulated Other Comprehensive Income (Loss) 94 Note 18. Capital Stock 95 Note 19. Commitments and Contingencies 101 Note 20. Pension and Other Postretirement Benefits 111 Note 21. Other (Income) Expense 111 Note 22. Segment Financial Data 114 Note 23. Geographic Areas - Financial Data 114 Note 24. Supplemental Cash Flow Information 115 Report of Independent Registered Public Accounting Firm 53 Honeywell International Inc. 53 Honeywell International Inc. 53 Honeywell International Inc. TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTS **Current (2025):** 52Consolidated Statement of Operations53Consolidated Statement of Comprehensive Income54Consolidated Balance Sheet55Consolidated Statement of Cash Flows56Consolidated Statement of Shareowners' Equity57Note 1. Summary of Significant Accounting Policies62Note 2. Acquisitions, Divestitures, and Assets and Liabilities Held for Sale66Note 3. Revenue Recognition and Contracts with Customers69Note 4. Repositioning and Other Charges72Note 5. Income Taxes76Note 6. Inventories76Note 7. Property, Plant and Equipment - Net77Note 8. Goodwill and Other Intangible Assets - Net78Note 9. Long-term Debt and Credit Agreements80Note 10. Leases82Note 11. Derivative Instruments and Hedging Transactions85Note 12. Fair Value Measurements87Note 13. Accrued Liabilities87Note 14. Other Liabilities88Note 15. Stock-Based Compensation Plans91Note 16. Earnings Per Share92Note 17. Accumulated Other Comprehensive Loss94Note 18. Capital Stock95Note 19. Commitments and Contingencies100Note 20. Pension and Other Postretirement Benefits110Note 21. Other (Income) Expense110Note 22. Segment Financial Data113Note 23. Geographic Areas - Financial Data113Note 24. Supplemental Cash Flow Information114Report of Independent Registered Public Accounting Firm 52 Consolidated Statement of Operations 53 Consolidated Statement of Comprehensive Income 54 Consolidated Balance Sheet 55 Consolidated Statement of Cash Flows 56 Consolidated Statement of Shareowners' Equity 57 Note 1. Summary of Significant Accounting Policies 62 Note 2. Acquisitions, Divestitures, and Assets and Liabilities Held for Sale 66 Note 3. Revenue Recognition and Contracts with Customers 69 Note 4. Repositioning and Other Charges 72 Note 5. Income Taxes 76 Note 6. Inventories 76 Note 7. Property, Plant and Equipment - Net 77 Note 8. Goodwill and Other Intangible Assets - Net 78 Note 9. Long-term Debt and Credit Agreements 80 Note 10. Leases 82 Note 11. Derivative Instruments and Hedging Transactions 85 Note 12. Fair Value Measurements 87 Note 13. Accrued Liabilities 87 Note 14. Other Liabilities 88 Note 15. Stock-Based Compensation Plans 91 Note 16. Earnings Per Share 92 Note 17. Accumulated Other Comprehensive Loss 94 Note 18. Capital Stock 95 Note 19. Commitments and Contingencies 100 Note 20. Pension and Other Postretirement Benefits 110 Note 21. Other (Income) Expense 110 Note 22. Segment Financial Data 113 Note 23. Geographic Areas - Financial Data 113 Note 24. Supplemental Cash Flow Information 114 Report of Independent Registered Public Accounting Firm 51 Honeywell International Inc. 51 Honeywell International Inc. 51 Honeywell International Inc. TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTS --- ## Modified: (Dollars in tables in millions, except per share amounts) **Key changes:** - Reworded sentence: "Plans202420232022202420232022Service cost$28 $29 $86 $12 $11 $19 Interest cost599 645 380 191 200 103 Expected return on plan assets(1,125)(1,111)(1,281)(301)(274)(278)Amortization of prior service (credit) cost(7)(42)(42)1 - - Recognition of actuarial (gains) losses - - (14)126 153 537 Settlements and curtailments - - (2)(17) - - Net periodic benefit (income) cost$(505)$(479)$(873)$12 $90 $381 U.S." **Prior (2024):** In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers. This ASU should be applied prospectively to acquisitions occurring on or after the effective date of December 15, 2022, and early adoption was permitted. The Company adopted this guidance on January 1, 2022. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by the transition away from reference rates expected to be discontinued to alternative reference rates. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, to expand the scope of this guidance to include derivatives. The guidance was effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into on or before December 31, 2022. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which extends the period of time entities can utilize the reference rate reform relief guidance under ASU 2020-04 from December 31, 2022, to December 31, 2024. The Company will apply the guidance to impacted transactions during the transition period. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. **Current (2025):** In September 2022, the FASB issued ASU 2022-04, Liabilities - Supplier Finance Programs (Topic 405): Disclosure of Supplier Finance Program Obligations, to enhance the transparency of supplier finance programs. The new standard requires annual disclosure of the key terms of the program, a description of where in the financial statements amounts outstanding under the program are presented, a rollforward of such amounts, and interim disclosure of amounts outstanding as of the end of each period. The guidance does not affect recognition, measurement, or financial statement presentation of supplier finance programs. The ASU was effective on January 1, 2023, except for the rollforward, which was effective on January 1, 2024. The Company adopted this guidance on January 1, 2023, with the exception of the rollforward adopted on January 1, 2024. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. --- ## Modified: OTHER MATTERS **Key changes:** - Reworded sentence: "45 Honeywell International Inc." **Prior (2024):** LITIGATION See Note 19 Commitments and Contingencies of Notes to Consolidated Financial Statements for a discussion of environmental, asbestos, and other litigation matters. RECENT ACCOUNTING PRONOUNCEMENTS See Note 1 Summary of Significant Accounting Policies of Notes to Consolidated Financial Statements for a discussion of recent accounting pronouncements. 47 Honeywell International Inc. 47 Honeywell International Inc. 47 Honeywell International Inc. TABLE OF CONTENTS TABLE OF CONTENTS TABLE OF CONTENTS **Current (2025):** LITIGATION See Note 19 Commitments and Contingencies of Notes to Consolidated Financial Statements for a discussion of environmental, asbestos, and other litigation matters. RECENT ACCOUNTING PRONOUNCEMENTS See Note 1 Summary of Significant Accounting Policies of Notes to Consolidated Financial Statements for a discussion of recent accounting pronouncements. 45 Honeywell International Inc. 45 Honeywell International Inc. 45 Honeywell International Inc. TABLE OF CONTENTS TABLE OF CONTENTS TABLE OF CONTENTS --- ## Modified: (Dollars in tables in millions, except per share amounts) **Key changes:** - Reworded sentence: "The following table summarizes the status of the Company's total repositioning reserves: SeveranceCostsAssetImpairmentsExitCostsTotalBalance at December 31, 2021$289 $ - $122 $411 Charges122 176 122 420 Usage - cash(135) - (140)(275)Usage - noncash - (168)(15)(183)Adjustments(42)(8)(6)(56)Foreign currency translation1 - (9)(8)Balance at December 31, 2022235 - 74 309 Charges162 41 139 342 Usage - cash(173) - (121)(294)Usage - noncash - (36) - (36)Divestitures - (4)(5)(9)Adjustments(42)(1)(13)(56)Foreign currency translation6 - 17 23 Balance at December 31, 2023188 - 91 279 Charges136 22 68 226 Usage - cash(91) - (104)(195)Usage - noncash - (6) - (6)Adjustments(41)(16)(40)(97)Reclassifications to Liabilities held for sale(14) - (8)(22)Balance at December 31, 2024$178 $ - $7 $185 Certain repositioning projects will recognize exit costs in future periods when the actual liability is incurred." **Prior (2024):** In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers. This ASU should be applied prospectively to acquisitions occurring on or after the effective date of December 15, 2022, and early adoption was permitted. The Company adopted this guidance on January 1, 2022. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by the transition away from reference rates expected to be discontinued to alternative reference rates. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, to expand the scope of this guidance to include derivatives. The guidance was effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into on or before December 31, 2022. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which extends the period of time entities can utilize the reference rate reform relief guidance under ASU 2020-04 from December 31, 2022, to December 31, 2024. The Company will apply the guidance to impacted transactions during the transition period. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. **Current (2025):** In September 2022, the FASB issued ASU 2022-04, Liabilities - Supplier Finance Programs (Topic 405): Disclosure of Supplier Finance Program Obligations, to enhance the transparency of supplier finance programs. The new standard requires annual disclosure of the key terms of the program, a description of where in the financial statements amounts outstanding under the program are presented, a rollforward of such amounts, and interim disclosure of amounts outstanding as of the end of each period. The guidance does not affect recognition, measurement, or financial statement presentation of supplier finance programs. The ASU was effective on January 1, 2023, except for the rollforward, which was effective on January 1, 2024. The Company adopted this guidance on January 1, 2023, with the exception of the rollforward adopted on January 1, 2024. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. --- ## Modified: EXECUTIVE COMPENSATION **Key changes:** - Reworded sentence: "117 Honeywell International Inc." **Prior (2024):** Information relating to executive compensation, including the Management Development and Compensation Committee Report and disclosures regarding compensation committee interlocks and insider participation will be contained in the Proxy Statement, and such information is incorporated herein by reference. 118 Honeywell International Inc. 118 Honeywell International Inc. 118 Honeywell International Inc. TABLE OF CONTENTS TABLE OF CONTENTS TABLE OF CONTENTS **Current (2025):** Information relating to executive compensation, including the Management Development and Compensation Committee Report and disclosures regarding compensation committee interlocks and insider participation will be contained in the Proxy Statement, and such information is incorporated herein by reference. 117 Honeywell International Inc. 117 Honeywell International Inc. 117 Honeywell International Inc. TABLE OF CONTENTS TABLE OF CONTENTS TABLE OF CONTENTS --- ## Modified: (Dollars in tables in millions, except per share amounts) **Key changes:** - Reworded sentence: "ACCUMULATED OTHER COMPREHENSIVE LOSS The changes in Accumulated other comprehensive loss are provided in the tables below." - Reworded sentence: "Pre-taxTaxAfter-TaxYear Ended December 31, 2022Foreign exchange translation adjustment$(354)$ - $(354)Pension and other postretirement benefit adjustments(280)47 (233)Changes in fair value of available for sale investments(8) - (8)Changes in fair value of cash flow hedges9 6 15 Total net current period other comprehensive income (loss)$(633)$53 $(580)Year Ended December 31, 2023Foreign exchange translation adjustment$(269)$ - $(269)Pension and other postretirement benefit adjustments(538)131 (407)Changes in fair value of available for sale investments5 - 5 Changes in fair value of cash flow hedges17 (6)11 Total net current period other comprehensive income (loss)$(785)$125 $(660)Year Ended December 31, 2024 Foreign exchange translation adjustment$229 $ - $229 Pension and other postretirement benefit adjustments542 (129)413 Changes in fair value of available for sale investments1 - 1 Changes in fair value of cash flow hedges(8)9 1 Total net current period other comprehensive income (loss)$764 $(120)$644" **Prior (2024):** In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers. This ASU should be applied prospectively to acquisitions occurring on or after the effective date of December 15, 2022, and early adoption was permitted. The Company adopted this guidance on January 1, 2022. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by the transition away from reference rates expected to be discontinued to alternative reference rates. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, to expand the scope of this guidance to include derivatives. The guidance was effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into on or before December 31, 2022. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which extends the period of time entities can utilize the reference rate reform relief guidance under ASU 2020-04 from December 31, 2022, to December 31, 2024. The Company will apply the guidance to impacted transactions during the transition period. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. **Current (2025):** In September 2022, the FASB issued ASU 2022-04, Liabilities - Supplier Finance Programs (Topic 405): Disclosure of Supplier Finance Program Obligations, to enhance the transparency of supplier finance programs. The new standard requires annual disclosure of the key terms of the program, a description of where in the financial statements amounts outstanding under the program are presented, a rollforward of such amounts, and interim disclosure of amounts outstanding as of the end of each period. The guidance does not affect recognition, measurement, or financial statement presentation of supplier finance programs. The ASU was effective on January 1, 2023, except for the rollforward, which was effective on January 1, 2024. The Company adopted this guidance on January 1, 2023, with the exception of the rollforward adopted on January 1, 2024. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. --- ## Modified: INCOME BEFORE TAXES **Key changes:** - Reworded sentence: "Years Ended December 31,202420232022U.S.$2,143 $2,368 $3,305 Non-U.S.5,070 4,791 3,074 Total Income before taxes$7,213 $7,159 $6,379" **Prior (2024):** Years Ended December 31,202320222021U.S.$2,368 $3,305 $3,955 Non-U.S.4,791 3,074 3,280 Total Income before taxes$7,159 $6,379 $7,235 **Current (2025):** Years Ended December 31,202420232022U.S.$2,143 $2,368 $3,305 Non-U.S.5,070 4,791 3,074 Total Income before taxes$7,213 $7,159 $6,379 --- ## Modified: RECENT ACCOUNTING PRONOUNCEMENTS **Key changes:** - Added sentence: "In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires companies to disclose additional information about the types of expenses in commonly presented expense captions." - Added sentence: "The new standard requires tabular disclosure of specified natural expenses in certain expense captions, a qualitative description of amounts that are not separately disaggregated, and disclosure of the Company's definition and total amount of selling expenses." - Added sentence: "The ASU should be applied prospectively for annual reporting periods beginning after December 15, 2026, with retrospective application and early adoption permitted." - Added sentence: "The Company is currently evaluating the impacts of this guidance on the Company's Consolidated Financial Statements." - Reworded sentence: "The Company adopted this guidance for annual disclosures for the year ended December 31, 2024." **Prior (2024):** The Company considers the applicability and impact of all Accounting Standards Updates (ASUs) issued by the Financial Accounting Standards Board (FASB). ASUs not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on the Company's Consolidated Statement of Operations, Balance Sheet, and Cash Flows (Consolidated Financial Statements). In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Taxes Disclosures, which requires greater disaggregation of income tax disclosures. The new standard requires additional information to be disclosed with respect to the income tax rate reconciliation and income taxes paid disaggregated by jurisdiction. This ASU should be applied prospectively for fiscal years beginning after December 15, 2024, with retrospective application permitted. The Company is currently evaluating the impacts of this guidance on the Company's Consolidated Financial Statements. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires companies to enhance the disclosures about segment expenses. The new standard requires the disclosure of the Company's Chief Operating Decision Maker (CODM), expanded incremental line-item disclosures of significant segment expenses used by the CODM for decision-making, and the inclusion of previous annual only segment disclosure requirements on a quarterly basis. This ASU should be applied retrospectively for fiscal years beginning after December 15, 2023, and early adoption is permitted. The Company is currently evaluating the impacts of this guidance on the Company's Consolidated Financial Statements. In September 2022, the FASB issued ASU 2022-04, Liabilities - Supplier Finance Programs (Topic 405): Disclosure of Supplier Finance Program Obligations, to enhance the transparency of supplier finance programs. The new standard requires annual disclosure of the key terms of the program, a description of where in the financial statements amounts outstanding under the program are presented, a rollforward of such amounts, and interim disclosure of amounts outstanding as of the end of each period. The guidance does not affect recognition, measurement, or financial statement presentation of supplier finance programs. The ASU is effective on January 1, 2023, except for the rollforward, which is effective on January 1, 2024. The Company adopted this guidance on January 1, 2023, with the exception of the rollforward that is effective on January 1, 2024. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. 59 Honeywell International Inc. 59 Honeywell International Inc. 59 Honeywell International Inc. TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATAHONEYWELL INTERNATIONAL INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)(Dollars in tables in millions, except per share amounts) TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTS **Current (2025):** The Company considers the applicability and impact of all Accounting Standards Updates (ASUs) issued by the Financial Accounting Standards Board (FASB). ASUs not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on the Company's Consolidated Statement of Operations, Balance Sheet, and Cash Flows (Consolidated Financial Statements). In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires companies to disclose additional information about the types of expenses in commonly presented expense captions. The new standard requires tabular disclosure of specified natural expenses in certain expense captions, a qualitative description of amounts that are not separately disaggregated, and disclosure of the Company's definition and total amount of selling expenses. The ASU should be applied prospectively for annual reporting periods beginning after December 15, 2026, with retrospective application and early adoption permitted. The Company is currently evaluating the impacts of this guidance on the Company's Consolidated Financial Statements. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Taxes Disclosures, which requires greater disaggregation of income tax disclosures. The new standard requires additional information to be disclosed with respect to the income tax rate reconciliation and income taxes paid disaggregated by jurisdiction. This ASU should be applied prospectively for fiscal years beginning after December 15, 2024, with retrospective application permitted. The Company is currently evaluating the impacts of this guidance on the Company's Consolidated Financial Statements. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires companies to enhance the disclosures about segment expenses. The new standard requires the disclosure of the Company's Chief Operating Decision Maker (CODM), expanded incremental line-item disclosures of significant segment expenses used by the CODM for decision-making, and the inclusion of previous annual only segment disclosure requirements on a quarterly basis. This ASU should be applied retrospectively for fiscal years beginning after December 15, 2023, and early adoption is permitted. The Company adopted this guidance for annual disclosures for the year ended December 31, 2024. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. 57 Honeywell International Inc. 57 Honeywell International Inc. 57 Honeywell International Inc. TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATAHONEYWELL INTERNATIONAL INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)(Dollars in tables in millions, except per share amounts) TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTS --- ## Modified: Carryforwards and Other Attributes **Key changes:** - Reworded sentence: "Approximately $3,111 million of the non-U.S." - Reworded sentence: "federal capital loss carryforward of $510 million expires in 2026." - Removed sentence: "Unrecognized tax benefits for examinations in progress were $803 million, $640 million, and $592 million as of December 31, 2023, 2022, and 2021, respectively." - Removed sentence: "Estimated interest and penalties related to the underpayment of income taxes are classified as a component of Tax expense in the Consolidated Statement of Operations and totaled $74 million, $5 million, and $79 million for the years ended December 31, 2023, 2022, and 2021, respectively." - Removed sentence: "Accrued interest and penalties were $612 million, $557 million, and $580 million as of December 31, 2023, 2022, and 2021, respectively." **Prior (2024):** Total Many jurisdictions impose limitations on the timing and utilization of net operating loss and tax credit carryforwards. Approximately $3,140 million of the non-U.S. net operating loss has no expiration period. The U.S. federal capital loss carryforward of $502 million expires in 2026. The remaining net operating loss, capital loss and credit carryforwards, and other tax attributes have expiration periods through 2043. Years Ended December 31,202320222021Change in unrecognized tax benefits Balance at beginning of year$1,086 $1,061 $991 Gross increases related to current period tax positions89 64 93 Gross increases related to prior periods tax positions181 31 39 Gross decreases related to prior periods tax positions - (19)(27)Decrease related to resolutions of audits with tax authorities(132)(3)(1)Expiration of the statute of limitations for the assessment of taxes(3)(8)(12)Foreign currency translation4 (40)(22)Balance at end of year$1,225 $1,086 $1,061 As of December 31, 2023, 2022, and 2021, there were $1,225 million, $1,086 million, and $1,061 million, respectively, of unrecognized tax benefits that if recognized would be recorded as a component of Tax expense. The following table summarizes tax years that remain subject to examination by major tax jurisdictions as of December 31, 2023: JurisdictionOpen Tax YearsExamination in progressExamination not yet initiatedU.S. Federal2017-20212022-2023U.S. State2013-20212022-2023China2013-20222023Germany2013-20202021-2023India2013-20202021-2023Puerto RicoN/A2020-2023Switzerland2019-20202021-2023United Kingdom2013-20212022-2023 Germany Based on the outcome of these examinations, or as a result of the expiration of statute of limitations for specific jurisdictions, it is reasonably possible that certain unrecognized tax benefits for tax positions taken on previously filed tax returns will materially change from those recorded as liabilities in the Company's financial statements. In addition, the outcome of these examinations may impact the valuation of certain deferred tax assets (such as net operating losses) in future periods. Unrecognized tax benefits for examinations in progress were $803 million, $640 million, and $592 million as of December 31, 2023, 2022, and 2021, respectively. Estimated interest and penalties related to the underpayment of income taxes are classified as a component of Tax expense in the Consolidated Statement of Operations and totaled $74 million, $5 million, and $79 million for the years ended December 31, 2023, 2022, and 2021, respectively. Accrued interest and penalties were $612 million, $557 million, and $580 million as of December 31, 2023, 2022, and 2021, respectively. 75 Honeywell International Inc. 75 Honeywell International Inc. 75 Honeywell International Inc. TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATAHONEYWELL INTERNATIONAL INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)(Dollars in tables in millions, except per share amounts) TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTS **Current (2025):** Total Many jurisdictions impose limitations on the timing and utilization of net operating loss and tax credit carryforwards. Approximately $3,111 million of the non-U.S. net operating loss has no expiration period. The U.S. federal capital loss carryforward of $510 million expires in 2026. The remaining net operating loss, capital loss and credit carryforwards, and other tax attributes have expiration periods through 2044. The table below summarizes the Company's change in unrecognized tax benefits for the years ended December 31, 2024, 2023, and 2022: Years Ended December 31,202420232022Change in unrecognized tax benefits Balance at beginning of year$1,225 $1,086 $1,061 Gross increases related to current period tax positions64 89 64 Gross increases related to prior periods tax positions12 181 31 Gross decreases related to prior periods tax positions(17) - (19)Decrease related to resolutions of audits with tax authorities(31)(132)(3)Expiration of the statute of limitations for the assessment of taxes(9)(3)(8)Foreign currency translation(33)4 (40)Balance at end of year$1,211 $1,225 $1,086 As of December 31, 2024, 2023, and 2022, there were $1,211 million, $1,225 million, and $1,086 million, respectively, of unrecognized tax benefits that if recognized would be recorded as a component of tax expense. The following table summarizes tax years that remain subject to examination by major tax jurisdictions as of December 31, 2024: JurisdictionOpen Tax YearsExamination in progressExamination not yet initiatedU.S. Federal2017-20212022-2024U.S. State2013-20222023-2024Canada2019-20212022-2024China2013-2024N/AGermany2013-20202021-2024India2014-20212022-2024Malaysia2018-20212022-2024Puerto RicoN/A2020-2024Switzerland2019-20222023-2024United Kingdom2014-20222023-2024 Germany Based on the outcome of these examinations, or as a result of the expiration of statute of limitations for specific jurisdictions, it is reasonably possible that certain unrecognized tax benefits for tax positions taken on previously filed tax returns will materially change from those recorded as liabilities in the Company's financial statements. In addition, the outcome of these examinations may impact the valuation of certain deferred tax assets (such as net operating losses) in future periods. 75 Honeywell International Inc. 75 Honeywell International Inc. 75 Honeywell International Inc. TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATAHONEYWELL INTERNATIONAL INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)(Dollars in tables in millions, except per share amounts) TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTS --- ## Modified: MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES **Key changes:** - Reworded sentence: "Our common stock is listed on The Nasdaq Stock Market LLC (Nasdaq) under the ticker symbol "HON." We increased our quarterly dividend rate by 5% to $1.13 per share of common stock effective with the fourth quarter 2024 dividend." - Reworded sentence: "During the quarter ended December 31, 2024, Honeywell purchased 1.9 million shares of its common stock, par value $1 per share." **Prior (2024):** Our common stock is listed on The Nasdaq Stock Market LLC (Nasdaq) under the ticker symbol "HON." We increased our quarterly dividend rate by 5% to $1.08 per share of common stock effective with the fourth quarter 2023 dividend. We intend to continue to pay quarterly dividends in 2024. The number of record holders of our common stock at December 31, 2023, was 35,911. Information regarding securities authorized for issuance under equity compensation plans is included in the section titled Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters under the caption "Equity Compensation Plans." 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. 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 quarter ended December 31, 2023, Honeywell purchased 7,929,193 shares of its common stock, par value $1 per share. As of December 31, 2023, $7.1 billion remained available under the share repurchase authorization for additional share repurchases. The following table summarizes our purchases of Honeywell's common stock for the quarter ended December 31, 2023: Issuer Purchases of Equity SecuritiesPeriodTotalNumber ofSharesPurchasedAveragePrice Paidper ShareTotal Numberof SharesPurchased asPart of PubliclyAnnouncedPlansor ProgramsApproximate DollarValue of Shares thatMay Yet be PurchasedUnder the Plans orPrograms(Dollars in millions)October 1 - 31, 20231,088,242 $183.76 1,088,242 $8,432 November 1 - 30, 20232,996,513 $186.83 2,996,513 $7,872 December 1 - 31, 20233,844,438 $199.75 3,844,438 $7,104 51 Honeywell International Inc. 51 Honeywell International Inc. 51 Honeywell International Inc. TABLE OF CONTENTSMARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES TABLE OF CONTENTSMARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES TABLE OF CONTENTS PERFORMANCE GRAPH The following graph compares the five-year cumulative total return on our common stock to the total returns on the Standard & Poor's (S&P) 500 Stock Index, composite of S&P's Industrial Conglomerates and Aerospace and Defense indices, on a 55%/45% weighted basis (the Composite Index) and Nasdaq Industrial Select Sector (XLI Index). The weighting of the components of the Composite Index are based on our segments' relative contribution to total segment profit. The selection of the Industrial Conglomerates component of the Composite Index reflects the diverse and distinct range of non-aerospace businesses conducted by Honeywell. The annual changes for the five-year period shown in the graph are based on the assumption that $100 was invested in Honeywell stock and each index on December 31, 2018, and that all dividends were reinvested. **Current (2025):** Our common stock is listed on The Nasdaq Stock Market LLC (Nasdaq) under the ticker symbol "HON." We increased our quarterly dividend rate by 5% to $1.13 per share of common stock effective with the fourth quarter 2024 dividend. We intend to continue to pay quarterly dividends in 2025. The number of record holders of our common stock as of December 31, 2024, was 31,568. Information regarding securities authorized for issuance under equity compensation plans is included in the section titled Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters under the caption "Equity Compensation Plans." On April 24, 2023, the Board authorized the repurchase of up to $10.0 billion of Honeywell common stock. The repurchase authorization does not have an expiration date and may be amended or terminated by the Board at any time without prior notice. 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 quarter ended December 31, 2024, Honeywell purchased 1.9 million shares of its common stock, par value $1 per share. As of December 31, 2024, $5.5 billion remained available under the share repurchase authorization for additional share repurchases. The following table summarizes our purchases of Honeywell's common stock for the quarter ended December 31, 2024: Issuer Purchases of Equity SecuritiesPeriodTotalNumber ofSharesPurchasedAveragePrice Paidper Share1Total Numberof SharesPurchased asPart of PubliclyAnnouncedPlansor ProgramsApproximate DollarValue of Shares thatMay Yet be PurchasedUnder the Plans orPrograms(Dollars in millions)1September 29, 2024 - October 26, 2024 - $ - - $5,904 October 27, 2024 - November 23, 2024803,546 $211.55 803,546 $5,734 November 24, 2024 - December 31, 20241,112,186 $229.26 1,112,186 $5,479 1Excludes excise tax on net share repurchases. Average Price Paid --- ## Modified: Opinions on the Financial Statements and Internal Control over Financial Reporting **Key changes:** - Reworded sentence: "and subsidiaries (the "Company" or "Honeywell") as of December 31, 2024 and 2023, and the related consolidated statements of operations, comprehensive income, shareowners' equity, and cash flows, for each of the three years in the period ended December 31, 2024, and the related notes (collectively referred to as the "financial statements")." **Prior (2024):** We have audited the accompanying consolidated balance sheets of Honeywell International Inc. and subsidiaries (the "Company" or "Honeywell") as of December 31, 2023 and 2022, and the related consolidated statements of operations, comprehensive income, shareowners' equity, and cash flows, for each of the three years in the period ended December 31, 2023, and the related notes (collectively referred to as the "financial statements"). We also have audited the Company's internal control over financial reporting as of December 31, 2023, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). As described in Management's Report on Internal Control Over Financial Reporting, management excluded from its assessment the internal control over financial reporting at Compressor Controls Corporation, which was acquired on June 30, 2023, and whose financial statements constitute less than 1% of net and total assets, revenues, and net income, respectively, of the consolidated financial statement amounts as of and for the year ended December 31, 2023. Accordingly, our audit did not include the internal control over financial reporting at Compressor Controls Corporation. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2023 and 2022, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2023, in conformity with accounting principles generally accepted in the United States of America ("generally accepted accounting principles"). Also, in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2023, based on criteria established in Internal Control - Integrated Framework (2013) issued by COSO. **Current (2025):** We have audited the accompanying consolidated balance sheets of Honeywell International Inc. and subsidiaries (the "Company" or "Honeywell") as of December 31, 2024 and 2023, and the related consolidated statements of operations, comprehensive income, shareowners' equity, and cash flows, for each of the three years in the period ended December 31, 2024, and the related notes (collectively referred to as the "financial statements"). We also have audited the Company's internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). As described in Management's Report on Internal Control Over Financial Reporting, management excluded from its assessment the internal control over financial reporting at Air Products' Liquefied Natural Gas Process Technology and Equipment Business, CAES Systems Holdings LLC, and Carrier Global Corporation's Global Access Solutions Business, which were acquired on September 30, 2024, August 30, 2024, and June 3, 2024, respectively. The Air Products' Liquefied Natural Gas Process Technology and Equipment Business, CAES Systems Holdings LLC, and Carrier Global Corporation's Global Access Solutions Business acquisitions represent less than 4% of both net income and net assets, less than 3% of total revenues, and less than 2% of total assets of the consolidated financial statement amounts as of and for the year ended December 31, 2024. Accordingly, our audit did not include the internal control over financial reporting at Air Products' Liquefied Natural Gas Process Technology and Equipment Business, CAES Systems Holdings LLC, and Carrier Global Corporation's Global Access Solutions Business. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2024, in conformity with accounting principles generally accepted in the United States of America ("generally accepted accounting principles"). Also, in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control - Integrated Framework (2013) issued by COSO. --- ## Modified: DERIVATIVE FINANCIAL INSTRUMENTS **Key changes:** - Added sentence: "All derivative financial instruments are recorded on the balance sheet as assets or liabilities and measured at fair value." - Added sentence: "For derivatives designated as hedges of the fair value of assets or liabilities, the changes in fair values of both the derivatives and the hedged items are recorded in current earnings." - Added sentence: "For derivatives designated as cash flow hedges, the changes in fair value of the derivatives are recorded in Accumulated other comprehensive loss and subsequently recognized in earnings when the hedged items impact earnings." - Added sentence: "Derivative financial instruments designated as hedges must be designated and effective as a hedge of the identified risk exposure at the inception of the contract." - Added sentence: "Changes in fair value of the derivative contract must be highly correlated with changes in fair value of the underlying hedged item at inception and over the life of the hedge contract." **Prior (2024):** In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers. This ASU should be applied prospectively to acquisitions occurring on or after the effective date of December 15, 2022, and early adoption was permitted. The Company adopted this guidance on January 1, 2022. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by the transition away from reference rates expected to be discontinued to alternative reference rates. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, to expand the scope of this guidance to include derivatives. The guidance was effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into on or before December 31, 2022. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which extends the period of time entities can utilize the reference rate reform relief guidance under ASU 2020-04 from December 31, 2022, to December 31, 2024. The Company will apply the guidance to impacted transactions during the transition period. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. **Current (2025):** All derivative financial instruments are recorded on the balance sheet as assets or liabilities and measured at fair value. For derivatives designated as hedges of the fair value of assets or liabilities, the changes in fair values of both the derivatives and the hedged items are recorded in current earnings. For derivatives designated as cash flow hedges, the changes in fair value of the derivatives are recorded in Accumulated other comprehensive loss and subsequently recognized in earnings when the hedged items impact earnings. Derivative financial instruments designated as hedges must be designated and effective as a hedge of the identified risk exposure at the inception of the contract. Changes in fair value of the derivative contract must be highly correlated with changes in fair value of the underlying hedged item at inception and over the life of the hedge contract. Cash flows of such derivative financial instruments are classified consistent with the underlying hedged item. The Company elected to exclude the time value of the derivatives (i.e., the forward points) from the assessment of hedge effectiveness and to recognize the initial value of the excluded component in earnings using the amortization approach. For derivative instruments that are designated and qualify as a net investment hedge, the gain or loss is reported as a component of Other comprehensive income (loss) and recorded in Accumulated other comprehensive loss. The gain or loss will be subsequently reclassified into earnings when the hedged net investment is either sold or substantially liquidated. LEASES At the inception of a contract, the Company assesses whether the contract is, or contains, a lease. The assessment is based on (i) whether the contract involves the use of a distinct identified asset, (ii) whether the Company obtains the right to substantially all the economic benefit from the use of the asset throughout the period, and (iii) whether the Company has the right to direct the use of the asset. All significant lease arrangements are generally recognized at lease commencement. Operating lease right-of-use (ROU) assets and lease liabilities are recognized at commencement. An ROU asset and corresponding lease liability are not recorded for leases with an initial term of 12 months or less (short-term leases); however, lease expense for these leases is recognized as incurred over the lease term. ROU assets represent the Company's right to use an underlying asset during the reasonably certain lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. The Company's lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Lease payments may be fixed or variable, however, only fixed payments or in-substance fixed payments are included in determining the lease liability. Variable lease payments are recognized in operating expenses in the period in which the obligation for those payments are incurred. The operating lease ROU asset also includes any lease payments related to initial direct costs and prepayments and excludes lease incentives. Lease expense is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, which are generally accounted for separately. 59 Honeywell International Inc. 59 Honeywell International Inc. 59 Honeywell International Inc. TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATAHONEYWELL INTERNATIONAL INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)(Dollars in tables in millions, except per share amounts) TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTS --- ## Modified: 2024 compared with 2023 **Key changes:** - Reworded sentence: "Net cash provided by operating activities increased by $757 million, primarily due to the $1,325 million payment made by the Company pursuant to the NARCO Amended Buyout Agreement in 2023, partially offset by $697 million decrease of noncash adjustments, driven by $616 million decline in repositioning and other charges." - Reworded sentence: "Additionally, we seek to reduce share count via share repurchases as and when attractive opportunities arise." - Reworded sentence: "•Mergers and acquisitions - in addition to the proposed spin-off of the Advanced Materials business and intended separation of the Automation and Aerospace Technologies businesses into three stand-alone, publicly traded companies and the sale of the PPE business, we expect to evaluate and undertake actions to optimize our portfolio, including executing on strategic bolt-on acquisitions over the course of 2025." - Reworded sentence: "TABLE OF CONTENTSLIQUIDITY AND CAPITAL RESOURCES TABLE OF CONTENTSLIQUIDITY AND CAPITAL RESOURCES TABLE OF CONTENTS 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." - Reworded sentence: "As of December 31, 2024, S&P Global Inc." **Prior (2024):** Net cash provided by operating activities increased by $66 million due to cash generated from operations, which included a favorable impact of working capital and the HWI Net Sale Proceeds of $275 million. The favorable impact of working capital was driven by a $697 million decrease in Accounts receivable, due to higher cash receipts, and a $673 million increase in Accounts payable, due to increased material receipts and lower disbursements. This was partially offset by the $1,325 million payment pursuant to the NARCO Amended Buyout Agreement and $203 million payment for the settlement of UOP Matters. Net cash used for investing activities increased by $1,200 million due to a $540 million increase in cash paid for acquisitions, $409 million of cash receipts from Garrett Motion Inc. (Garrett) in 2022, and a $363 million decrease in cash receipts from settlements of derivative contracts, partially offset by a $367 million net decrease in investments. Net cash used for financing activities decreased by $567 million due to a $485 million decrease in repurchases of common stock and $119 million decrease in payments of long-term debt, partially offset by a $136 million increase in cash dividends paid. See Note 19 Commitments and Contingencies of Notes to Consolidated Financial Statements for additional information on the NARCO Amended Buyout Agreement, HWI Net Sale Proceeds, and UOP Matters. CASH REQUIREMENTS AND ASSESSMENT OF CURRENT LIQUIDITY In addition to our normal operating cash requirements, we expect our primary cash requirements in 2024 to be as follows: •Capital expenditures - we expect to spend approximately $1.1 billion for capital expenditures in 2024 primarily for growth, production and capacity expansion, implementation of cost reduction measures, maintenance, and replacement. •Share repurchases - under our share repurchase program, $7.1 billion was available as of December 31, 2023, for additional share repurchases as authorized by the Board of Directors on April 24, 2023. We expect to repurchase outstanding shares from time to time to offset the dilutive impact of employee stock-based compensation plans, including option exercises, restricted unit vesting and matching contributions under our savings plans. Additionally, we will seek 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 our level of operating, financing, and other investing activities. •Mergers and acquisitions - we expect to spend $5.0 billion to complete the acquisition of Carrier Global Corporation's Global Access Solutions business, as announced on December 8, 2023, subject to customary closing conditions, including receipt of certain regulatory approvals. We expect to evaluate and undertake other actions to optimize our portfolio, including executing on strategic bolt-on acquisitions over the course of 2024. •Dividends - we increased our quarterly dividend rate by 5% to $1.08 per share of common stock effective with the fourth quarter 2023 dividend. We intend to continue to pay quarterly dividends in 2024. We continually seek opportunities to improve our liquidity and working capital efficiency, which includes the extension of payment terms with our suppliers. In addition, we maintain agreements with third-party financial institutions that offer voluntary supply chain financing (SCF) programs to suppliers. The SCF programs enable suppliers, at their sole discretion, to sell their receivables to third-party financial institutions in order to receive payment on receivables earlier than the negotiated commercial terms between us and our suppliers. Supplier sale of receivables to third-party financial institutions is on terms negotiated between the supplier and the respective third-party financial institution. We agree on commercial terms for the goods and services we procure from our suppliers, including prices, quantities, and payment terms, which normally range between 60 and 120 days, regardless of whether the supplier elects to participate in the SCF programs. A suppliers' voluntary participation in the SCF programs has no bearing on our payment terms and we have no economic interest in a supplier's decision to participate in the SCF programs. We agree to pay participating third-party financial institutions the stated amounts of confirmed invoices from suppliers on the original maturity dates of the invoices. 39 Honeywell International Inc. 39 Honeywell International Inc. 39 Honeywell International Inc. TABLE OF CONTENTSLIQUIDITY AND CAPITAL RESOURCES TABLE OF CONTENTSLIQUIDITY AND CAPITAL RESOURCES TABLE OF CONTENTS Amounts outstanding related to SCF programs are included in Accounts payable in the Consolidated Balance Sheet. At December 31, 2023, Accounts payable included approximately $1,112 million payable to suppliers who have elected to participate in the SCF programs. Amounts settled with third-party financial institutions through the SCF programs increased approximately $700 million for the year ended December 31, 2023. The increase for the year ended December 31, 2023, reflects a combination of increased enrollment and utilization of our SCF programs. All activity related to amounts due to suppliers that elected to participate in the SCF programs is reflected in Cash flows from operating activities in our Consolidated Statement of Cash Flows. While access to SCF could decrease if our credit ratings are downgraded, we do not believe that changes in the availability of SCF will have a significant impact on our liquidity. The impact of these programs is not material to our overall liquidity. We sell trade receivables to unaffiliated financial institutions with limited or no recourse. Transfers of the receivables are accounted for as sales and, accordingly, receivables sold are excluded from Accounts receivable - net in the Consolidated Balance Sheet and are reflected in Cash flows from operating activities in the Consolidated Statement of Cash Flows. The difference between the carrying amount of the trade receivables sold and the cash received is recorded in Cost of products and services sold in the Consolidated Statement of Operations. The impact of this program is not material to our overall liquidity. Finally, 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 will further our strategic plan and strengthen our existing core businesses. 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. 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, in 2023 we received proceeds from the HWI Sale in the amount of $275 million. 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. See Note 9 Long-term Debt and Credit Agreements of Notes to Consolidated Financial Statements for additional discussion of items impacting our liquidity. BORROWINGS We leverage a variety of debt instruments to manage our overall borrowing costs. As of December 31, 2023, and 2022, our total borrowings were $20.4 billion and $19.6 billion, respectively. December 31,20232022Commercial paper$2,083 $2,715 Variable rate notes22 22 Fixed rate notes18,530 17,086 Other219 267 Fair value of hedging instruments(166)(287)Debt issuance costs(245)(233)Total borrowings$20,443 $19,570 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 not more than 365 days from date of issuance. Borrowings under the commercial paper program are available for general corporate purposes as well as for financing acquisitions. The weighted average interest rate on commercial paper and other short-term borrowings outstanding was 4.29% and 3.29% as of December 31, 2023, and 2022, respectively. 40 Honeywell International Inc. 40 Honeywell International Inc. 40 Honeywell International Inc. TABLE OF CONTENTSLIQUIDITY AND CAPITAL RESOURCES TABLE OF CONTENTSLIQUIDITY AND CAPITAL RESOURCES TABLE OF CONTENTS We also have the following revolving credit agreements: •A $1.5 billion 364-day credit agreement (the 364-Day Credit Agreement) with a syndicate of banks, dated as of March 20, 2023. Amounts borrowed under the 364-Day Credit Agreement are required to be repaid no later than March 18, 2024, 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 18, 2025, 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 24, 2022, which was terminated in accordance with its terms effective March 20, 2023. As of December 31, 2023, 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 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 5-Year Credit Agreement amended and restated the previously reported $4.0 billion amended and restated five-year credit agreement dated as of March 24, 2022. As of December 31, 2023, there were no outstanding borrowings under our 5-Year Credit Agreement. We also have a current shelf registration statement filed with the SEC under which we may issue additional debt securities, common stock, and preferred stock that may be offered in one or more offerings on terms to be determined at the time of the offering. We anticipate that net proceeds of any offering would be used for general corporate purposes, including repayment of existing indebtedness, share repurchases, capital expenditures, and acquisitions. 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 December 31, 2023, 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'sOutlookStableStablePositiveShort-termA-1F1P1Long-termAAA2 On September 20, 2023, Moody's affirmed all credit ratings of the Company and revised their credit rating outlook from stable to positive. 41 Honeywell International Inc. 41 Honeywell International Inc. 41 Honeywell International Inc. TABLE OF CONTENTSLIQUIDITY AND CAPITAL RESOURCES TABLE OF CONTENTSLIQUIDITY AND CAPITAL RESOURCES TABLE OF CONTENTS CONTRACTUAL OBLIGATIONS Following is a summary of our significant contractual obligations and probable liability payments at December 31, 2023: Payments by PeriodTotal6,720242025 - 20262027 - 2028ThereafterLong-term debt, including finance leases1$18,358 $1,796 $2,842 $3,245 $10,475 Interest payments on long-term debt, including finance leases4,995 568 1,037 893 2,497 Operating lease liabilities1,241 222 340 236 443 Purchase obligations23,004 1,543 1,144 265 52 Estimated environmental liability payments3641 227 211 153 50 Asbestos-related liability payments41,644 154 278 225 987 Asbestos insurance recoveries5(123)(16)(24)(19)(64) Total contractual obligations$29,760 $4,494 $5,828 $4,998 $14,440 1Assumes all long-term debt is outstanding until scheduled maturity.2Purchase obligations are entered into with various vendors in the normal course of business and are consistent with our expected requirements.3The payment amounts in the table only reflect the environmental liabilities which are probable and reasonably estimable as of December 31, 2023.4These amounts are estimates of asbestos-related cash payments for Bendix Friction Materials (Bendix) based on our asbestos-related liabilities which are probable and reasonably estimable as of December 31, 2023. See Asbestos Matters in Note 19 Commitments and Contingencies of Notes to Consolidated Financial Statements for additional information.5These amounts represent our insurance recoveries that are deemed probable for asbestos-related liabilities as of December 31, 2023. See Asbestos Matters in Note 19 Commitments and Contingencies of Notes to Consolidated Financial Statements for additional information.6The table excludes tax liability payments, including those for unrecognized tax benefits. See Note 5 Income Taxes of Notes to Consolidated Financial Statements for additional information.7The table excludes expected proceeds from the indemnification and reimbursement agreements entered into with Resideo Technologies, Inc. (Resideo). See Note 19 Commitments and Contingencies of Notes to Consolidated Financial Statements for additional information. Total6,7 **Current (2025):** Net cash provided by operating activities increased by $757 million, primarily due to the $1,325 million payment made by the Company pursuant to the NARCO Amended Buyout Agreement in 2023, partially offset by $697 million decrease of noncash adjustments, driven by $616 million decline in repositioning and other charges. Net cash used for investing activities increased by $8,864 million, driven by a $8,162 million increase in cash paid for acquisitions. Net cash provided by (used for) financing activities increased by $12,602 million, driven by $7,422 million increase in long-term debt proceeds, primarily to fund our recent acquisitions, $2,932 million increase in net proceeds of commercial paper, and $2,060 million decrease in repurchases of common stock. See Note 19 Commitments and Contingencies of Notes to Consolidated Financial Statements for additional information on the NARCO Amended Buyout Agreement. CASH REQUIREMENTS AND ASSESSMENT OF CURRENT LIQUIDITY In addition to our normal operating cash requirements, we expect our primary cash requirements in 2025 to be as follows: •Capital expenditures - we expect to spend approximately $1.3 billion for capital expenditures in 2025 primarily for growth, production and capacity expansion, implementation of cost reduction measures, maintenance, and replacement. •Share repurchases - under our share repurchase program, $5.5 billion was available as of December 31, 2024, for additional share repurchases as authorized by the Board on April 24, 2023. We expect to repurchase outstanding shares from time to time to offset the dilutive impact of employee stock-based compensation plans, including option exercises, restricted unit vesting and matching contributions under our savings plans. Additionally, we seek 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 our level of operating, financing, and other investing activities. •Mergers and acquisitions - in addition to the proposed spin-off of the Advanced Materials business and intended separation of the Automation and Aerospace Technologies businesses into three stand-alone, publicly traded companies and the sale of the PPE business, we expect to evaluate and undertake actions to optimize our portfolio, including executing on strategic bolt-on acquisitions over the course of 2025. •Dividends - we increased our quarterly dividend rate by 5% to $1.13 per share of common stock effective with the fourth quarter 2024 dividend. We intend to continue to pay quarterly dividends in 2025. We sell trade receivables to unaffiliated financial institutions with limited or no recourse. We account for trade receivable sales as sales and, accordingly, receivables sold are excluded from Accounts receivable - net in the Consolidated Balance Sheet and are reflected in Cash flows from operating activities in the Consolidated Statement of Cash Flows. The difference between the carrying amount of the trade receivables sold and the cash received is recorded in Cost of products and services sold in the Consolidated Statement of Operations. The impact of this program is not material to our overall liquidity. Additionally, 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 will further our strategic plan and strengthen our existing core businesses. During the year ended December 31, 2024, we acquired Access Solutions for total consideration of $4.9 billion, net of cash acquired, CAES for total consideration of $1.9 billion, net of cash acquired, LNG for $1.8 billion, net of cash acquired, and Civitanavi Systems S.p.A. for total consideration of $200 million, 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. 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 addition, on November 22, 2024, we announced an agreement to sell our personal protective equipment business for $1.3 billion, with the assets and liabilities of the business classified as held for sale until the closing date of a sale. On February 6, 2025, the Company announced its intention to separate its Automation and Aerospace Technologies businesses into independent, U.S. publicly traded companies. See Note 2 Acquisitions, Divestitures, and Assets and Liabilities Held for Sale of Notes to Consolidated Financial Statements for additional discussion. 38 Honeywell International Inc. 38 Honeywell International Inc. 38 Honeywell International Inc. TABLE OF CONTENTSLIQUIDITY AND CAPITAL RESOURCES TABLE OF CONTENTSLIQUIDITY AND CAPITAL RESOURCES TABLE OF CONTENTS Based on past performance and current expectations, we believe that our operating cash flows will be sufficient to meet our future operating cash needs for at least the next twelve months. 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 twelve months ended December 31, 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, CAES, LNG, and Civitanavi Systems S.p.A. acquisitions. See Note 9 Long-term Debt and Credit Agreements of Notes to Consolidated Financial Statements for additional discussion of items impacting our liquidity. BORROWINGS We leverage a variety of debt instruments to manage our overall borrowing costs. As of December 31, 2024, and 2023, our total borrowings were $31.1 billion and $20.4 billion, respectively. December 31,20242023Fixed rate notes$25,853 $18,530 Commercial paper4,271 2,083 Term loan1,000 - Variable rate notes22 22 Other392 219 Fair value of hedging instruments(136)(166)Debt issuance costs(303)(245)Total borrowings$31,099 $20,443 A key 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 to manage our overall funding costs. Another key 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 not more than 365 days from date of issuance. Borrowings under the commercial paper program are available for general corporate purposes as well as for financing acquisitions. The weighted average interest rate on commercial paper and other short-term borrowings outstanding was 4.22% and 4.29% as of December 31, 2024, and 2023, respectively. 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), 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 December 31, 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 December 31, 2024, there were no outstanding borrowings under our 364-Day Credit Agreement. •A $4.0 billion five-year credit agreement (the Five-Year Credit Agreement) with a syndicate of banks, dated as of March 18, 2024. Commitments under the Five-Year Credit Agreement can be increased pursuant to the terms of the Five-Year Credit Agreement to an aggregate amount not to exceed $4.5 billion. The Five-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 December 31, 2024, there were no outstanding borrowings under our Five-Year Credit Agreement. We also have a current shelf registration statement filed with the SEC under which we may issue additional debt securities, common stock, and preferred stock that may be offered in one or more offerings on terms to be determined at the time of the offering. We anticipate that net proceeds of any offering would be used for general corporate purposes, including repayment of existing indebtedness, share repurchases, capital expenditures, and acquisitions. See Note 9 Long-Term Debt and Credit Agreements of Notes to Consolidated Financial Statements for additional information regarding our debt instruments. 39 Honeywell International Inc. 39 Honeywell International Inc. 39 Honeywell International Inc. TABLE OF CONTENTSLIQUIDITY AND CAPITAL RESOURCES TABLE OF CONTENTSLIQUIDITY AND CAPITAL RESOURCES TABLE OF CONTENTS 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 December 31, 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'sOutlookStableStablePositiveShort-termA-1F1P1Long-termAAA2 CONTRACTUAL OBLIGATIONS Following is a summary of our significant contractual obligations and probable liability payments as of December 31, 2024: Payments by PeriodTotal6,720252026 - 20272028 - 2029ThereafterLong-term debt, including finance leases1$27,265 $1,347 $5,809 $3,500 $16,609 Interest payments on long-term debt, including finance leases10,833 1,010 1,933 1,546 6,344 Operating lease liabilities1,302 235 384 261 422 Purchase obligations23,580 1,907 1,377 275 21 Estimated environmental liability payments3678 244 204 143 87 Asbestos-related liability payments41,482 157 255 217 853 Asbestos insurance recoveries5(110)(14)(22)(16)(58) Total contractual obligations$45,030 $4,886 $9,940 $5,926 $24,278 1Assumes all long-term debt is outstanding until scheduled maturity.2Purchase obligations are entered into with various vendors in the normal course of business and are consistent with our expected requirements.3The payment amounts in the table only reflect the environmental liabilities which are probable and reasonably estimable as of December 31, 2024.4These amounts are estimates of asbestos-related cash payments for Bendix Friction Materials (Bendix) based on our asbestos-related liabilities which are probable and reasonably estimable as of December 31, 2024. See Asbestos Matters in Note 19 Commitments and Contingencies of Notes to Consolidated Financial Statements for additional information.5These amounts represent our insurance recoveries that are deemed probable for the Bendix asbestos-related liabilities as of December 31, 2024. See Asbestos Matters in Note 19 Commitments and Contingencies of Notes to Consolidated Financial Statements for additional information.6The table excludes tax liability payments, including those for unrecognized tax benefits. See Note 5 Income Taxes of Notes to Consolidated Financial Statements for additional information.7The table excludes expected proceeds from the indemnification and reimbursement agreements entered into with Resideo Technologies, Inc. (Resideo). See Note 19 Commitments and Contingencies of Notes to Consolidated Financial Statements for additional information. Total6,7 --- ## Modified: Years Ended December 31,20242023Claims unresolved at the beginning of year5,517 5,608 Claims filed1,617 1,803 Claims resolved(2,184)(1,894)Claims unresolved at the end of year4,950 5,517 **Key changes:** - Reworded sentence: "Disease Distribution of Unresolved ClaimsYears Ended December 31,20242023Mesothelioma and other cancer claims2,923 3,244 Nonmalignant claims2,027 2,273 Total claims4,950 5,517 Honeywell has experienced average resolution values per claim excluding legal costs as follows: Years Ended December 31,20242023202220212020 (in whole dollars)Mesothelioma and other cancer claims$79,900 $66,200 $59,200 $56,000 $61,500 Nonmalignant claims1,100 1,730 520 400 550 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." **Prior (2024):** Disease Distribution of Unresolved ClaimsYears Ended December 31,20232022Mesothelioma and other cancer claims3,244 3,283 Nonmalignant claims2,273 2,325 Total claims5,517 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 claims1,730 520 400 550 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. 98 Honeywell International Inc. 98 Honeywell International Inc. 98 Honeywell International Inc. TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATAHONEYWELL INTERNATIONAL INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)(Dollars in tables in millions, except per share amounts) TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTS **Current (2025):** Disease Distribution of Unresolved ClaimsYears Ended December 31,20242023Mesothelioma and other cancer claims2,923 3,244 Nonmalignant claims2,027 2,273 Total claims4,950 5,517 Honeywell has experienced average resolution values per claim excluding legal costs as follows: Years Ended December 31,20242023202220212020 (in whole dollars)Mesothelioma and other cancer claims$79,900 $66,200 $59,200 $56,000 $61,500 Nonmalignant claims1,100 1,730 520 400 550 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. 98 Honeywell International Inc. 98 Honeywell International Inc. 98 Honeywell International Inc. TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATAHONEYWELL INTERNATIONAL INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)(Dollars in tables in millions, except per share amounts) TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTS --- ## Modified: (Dollars in tables in millions, except per share amounts) **Key changes:** - Removed sentence: "OTHER LIABILITIES December 31,20232022Income taxes$1,742 $1,939 Pension and other employee related1,342 1,306 Deferred income1,171 1,334 Operating lease liabilities897 775 Environmental costs414 393 Insurance248 289 Product warranties and performance guarantees37 38 Asset retirement obligations17 24 Other397 371 Total Other liabilities$6,265 $6,469 NOTE 15." - Reworded sentence: "As of December 31, 2024, there were 27.1 million and 0.8 million shares of Honeywell common stock available for future grants under terms of the 2016 Plan and 2016 Directors Plan, respectively." **Prior (2024):** In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers. This ASU should be applied prospectively to acquisitions occurring on or after the effective date of December 15, 2022, and early adoption was permitted. The Company adopted this guidance on January 1, 2022. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by the transition away from reference rates expected to be discontinued to alternative reference rates. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, to expand the scope of this guidance to include derivatives. The guidance was effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into on or before December 31, 2022. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which extends the period of time entities can utilize the reference rate reform relief guidance under ASU 2020-04 from December 31, 2022, to December 31, 2024. The Company will apply the guidance to impacted transactions during the transition period. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. **Current (2025):** In September 2022, the FASB issued ASU 2022-04, Liabilities - Supplier Finance Programs (Topic 405): Disclosure of Supplier Finance Program Obligations, to enhance the transparency of supplier finance programs. The new standard requires annual disclosure of the key terms of the program, a description of where in the financial statements amounts outstanding under the program are presented, a rollforward of such amounts, and interim disclosure of amounts outstanding as of the end of each period. The guidance does not affect recognition, measurement, or financial statement presentation of supplier finance programs. The ASU was effective on January 1, 2023, except for the rollforward, which was effective on January 1, 2024. The Company adopted this guidance on January 1, 2023, with the exception of the rollforward adopted on January 1, 2024. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. --- ## Modified: COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE LOSS **Key changes:** - Reworded sentence: "December 31,20242023Cumulative foreign exchange translation adjustment$(2,872)$(3,101)Pension and other postretirement benefit adjustments(642)(1,055)Fair value adjustments of available for sale investments(1)(2)Fair value adjustments of cash flow hedges24 23 Total Accumulated other comprehensive loss$(3,491)$(4,135) 92 Honeywell International Inc." **Prior (2024):** December 31,20232022Cumulative foreign exchange translation adjustment$(3,101)$(2,832)Pension and other postretirement benefit adjustments(1,055)(648)Fair value adjustments of available for sale investments(2)(7)Fair value adjustments of cash flow hedges23 12 Total Accumulated other comprehensive income (loss)$(4,135)$(3,475) 92 Honeywell International Inc. 92 Honeywell International Inc. 92 Honeywell International Inc. TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATAHONEYWELL INTERNATIONAL INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)(Dollars in tables in millions, except per share amounts) TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTS **Current (2025):** December 31,20242023Cumulative foreign exchange translation adjustment$(2,872)$(3,101)Pension and other postretirement benefit adjustments(642)(1,055)Fair value adjustments of available for sale investments(1)(2)Fair value adjustments of cash flow hedges24 23 Total Accumulated other comprehensive loss$(3,491)$(4,135) 92 Honeywell International Inc. 92 Honeywell International Inc. 92 Honeywell International Inc. TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATAHONEYWELL INTERNATIONAL INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)(Dollars in tables in millions, except per share amounts) TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTS --- ## Modified: (Dollars in tables in millions, except per share amounts) **Key changes:** - Reworded sentence: "The following table outlines the Company's remaining performance obligations disaggregated by reportable business segment: December 31, 2024Aerospace Technologies$15,447 Industrial Automation5,519 Building Automation8,257 Energy and Sustainability Solutions6,030 Corporate and All Other124 Total performance obligations$35,277 1The remaining performance obligations within Corporate and All Other relate to the Quantinuum business." - Reworded sentence: "Performance obligations expected to be satisfied within one year and greater than one year are 54% and 46%, respectively." - Reworded sentence: "REPOSITIONING AND OTHER CHARGES A summary of net repositioning and other charges follows: Years Ended December 31,202420232022Severance$136 $162 $122 Asset impairments22 41 176 Exit costs68 139 122 Reserve adjustments(97)(56)(56)Total net repositioning charges129 286 364 Asbestos-related charges, net of insurance and reimbursements61 534 532 Probable and reasonably estimable environmental liabilities, net of reimbursements37 44 28 Other charges17 (4)342 Total net repositioning and other charges$244 $860 $1,266 The following table summarizes the pre-tax distribution of total net repositioning and other charges by classification in the Consolidated Statement of Operations: Years Ended December 31,202420232022Cost of products and services sold$109 $680 $572 Selling, general and administrative expenses118 172 309 Other (income) expense17 8 385 Total net repositioning and other charges$244 $860 $1,266 69 Honeywell International Inc." **Prior (2024):** In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers. This ASU should be applied prospectively to acquisitions occurring on or after the effective date of December 15, 2022, and early adoption was permitted. The Company adopted this guidance on January 1, 2022. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by the transition away from reference rates expected to be discontinued to alternative reference rates. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, to expand the scope of this guidance to include derivatives. The guidance was effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into on or before December 31, 2022. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which extends the period of time entities can utilize the reference rate reform relief guidance under ASU 2020-04 from December 31, 2022, to December 31, 2024. The Company will apply the guidance to impacted transactions during the transition period. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. **Current (2025):** In September 2022, the FASB issued ASU 2022-04, Liabilities - Supplier Finance Programs (Topic 405): Disclosure of Supplier Finance Program Obligations, to enhance the transparency of supplier finance programs. The new standard requires annual disclosure of the key terms of the program, a description of where in the financial statements amounts outstanding under the program are presented, a rollforward of such amounts, and interim disclosure of amounts outstanding as of the end of each period. The guidance does not affect recognition, measurement, or financial statement presentation of supplier finance programs. The ASU was effective on January 1, 2023, except for the rollforward, which was effective on January 1, 2024. The Company adopted this guidance on January 1, 2023, with the exception of the rollforward adopted on January 1, 2024. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. --- ## Modified: (Dollars in tables in millions, except per share amounts) **Key changes:** - Reworded sentence: "The following table sets forth the Company's financial assets and liabilities that were accounted for at fair value on a recurring basis: December 31, 2024December 31, 2023Level 1Level 2Level 3TotalLevel 1Level 2Level 3TotalAssets Foreign currency exchange contracts$ - $33 $ - $33 $ - $35 $ - $35 Available for sale investments69 427 - 496 63 217 - 280 Interest rate swap agreements - 3 - 3 - 18 - 18 Cross currency swap agreements - 124 - 124 - - - - Investments in equity securities8 - - 8 22 - - 22 Right to HWI Net Sale Proceeds - - 6 6 - - 9 9 Total assets$77 $587 $6 $670 $85 $270 $9 $364 LiabilitiesForeign currency exchange contracts$ - $15 $ - $15 $ - $9 $ - $9 Interest rate swap agreements - 139 - 139 - 184 - 184 Commodity contracts - - - - - 1 - 1 Cross currency swap agreements - 56 - 56 - 145 - 145 Total liabilities$ - $210 $ - $210 $ - $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." - Reworded sentence: "The balance of the remaining proceeds from the HWI Sale (HWI Net Sale Proceeds) as of December 31, 2024, and 2023, was $6 million and $9 million, respectively, based on the receipt of an additional $3 million in HWI Net Sales Proceeds during the twelve months ended December 31, 2024." **Prior (2024):** In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers. This ASU should be applied prospectively to acquisitions occurring on or after the effective date of December 15, 2022, and early adoption was permitted. The Company adopted this guidance on January 1, 2022. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by the transition away from reference rates expected to be discontinued to alternative reference rates. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, to expand the scope of this guidance to include derivatives. The guidance was effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into on or before December 31, 2022. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which extends the period of time entities can utilize the reference rate reform relief guidance under ASU 2020-04 from December 31, 2022, to December 31, 2024. The Company will apply the guidance to impacted transactions during the transition period. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. **Current (2025):** In September 2022, the FASB issued ASU 2022-04, Liabilities - Supplier Finance Programs (Topic 405): Disclosure of Supplier Finance Program Obligations, to enhance the transparency of supplier finance programs. The new standard requires annual disclosure of the key terms of the program, a description of where in the financial statements amounts outstanding under the program are presented, a rollforward of such amounts, and interim disclosure of amounts outstanding as of the end of each period. The guidance does not affect recognition, measurement, or financial statement presentation of supplier finance programs. The ASU was effective on January 1, 2023, except for the rollforward, which was effective on January 1, 2024. The Company adopted this guidance on January 1, 2023, with the exception of the rollforward adopted on January 1, 2024. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. --- ## Modified: Price Per Share **Key changes:** - Reworded sentence: "$90.00 -$99.99 $100.00 -$134.99 $135.00 -$189.99 $190.00 -$232.60 There were 9.6 million and 9.5 million options exercisable at weighted average exercise prices of $138.24 and $127.99 as of December 31, 2023, and 2022, respectively." **Prior (2024):** $65.00-$89.99 $90.00-$99.99 $100.00-$134.99 $135.00-$189.99 $190.00-$232.60 There were 9,509,606 and 10,664,625 options exercisable at weighted average exercise prices of $127.99 and $113.30 at December 31, 2022, and 2021, respectively. The following table summarizes the financial statement impact from stock options exercised: Years Ended December 31,202320222021Intrinsic value1$122 $310 $219 Tax benefit realized27 71 48 1Represents the amount by which the stock price exceeded the exercise price of the options on the date of exercise. Intrinsic value1 At December 31, 2023, there was $96 million of total unrecognized compensation cost related to non-vested stock option awards which is expected to be recognized over a weighted average period of 2.49 years. The total fair value of options vested for the years ended December 31, 2023, 2022, and 2021 was $48 million, $49 million, and $52 million, respectively. **Current (2025):** $90.00 -$99.99 $100.00 -$134.99 $135.00 -$189.99 $190.00 -$232.60 There were 9.6 million and 9.5 million options exercisable at weighted average exercise prices of $138.24 and $127.99 as of December 31, 2023, and 2022, respectively. The following table summarizes the financial statement impact from stock options exercised: Years Ended December 31,202420232022Intrinsic value1$357 $122 $310 Tax benefit realized76 27 71 1Represents the amount by which the stock price exceeded the exercise price of the options on the date of exercise. Intrinsic value1 At December 31, 2024, there was $91 million of total unrecognized compensation cost related to non-vested stock option awards which is expected to be recognized over a weighted average period of 2.49 years. The total fair value of options vested for the years ended December 31, 2024, 2023, and 2022, was $49 million, $48 million, and $49 million, respectively. 89 Honeywell International Inc. 89 Honeywell International Inc. 89 Honeywell International Inc. TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATAHONEYWELL INTERNATIONAL INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)(Dollars in tables in millions, except per share amounts) TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTS --- ## Modified: CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME **Key changes:** - Reworded sentence: "Years Ended December 31,202420232022 (Dollars in millions)Net income$5,740 $5,672 $4,967 Other comprehensive income (loss), net of taxForeign exchange translation adjustment200 (274)(372)Actuarial gains (losses) recognized350 (468)(452)Prior service credit recognized(10) - - Prior service credit recognized during year(17)(48)(64)Actuarial losses recognized during year87 118 454 Foreign exchange translation and other3 (9)(171)Pension and other postretirement benefit adjustments413 (407)(233)Changes in fair value of available for sale investments1 5 (8)Cash flow hedges recognized in other comprehensive income (loss)17 60 71 Less: Reclassification adjustment for gains included in net income16 49 56 Changes in fair value of cash flow hedges1 11 15 Other comprehensive income (loss), net of tax615 (665)(598)Comprehensive income6,355 5,007 4,369 Less: Comprehensive income (loss) attributable to the noncontrolling interest6 9 (17)Comprehensive income attributable to Honeywell$6,349 $4,998 $4,386 The Notes to Consolidated Financial Statements are an integral part of this statement.53 Honeywell International Inc." - Reworded sentence: "53 Honeywell International Inc." **Prior (2024):** Years Ended December 31,202320222021 (Dollars in millions)Net income$5,672 $4,967 $5,610 Other comprehensive income (loss), net of taxForeign exchange translation adjustment(274)(372)302 Actuarial gains (losses) recognized(468)(452)256 Prior service credit recognized - - 7 Prior service credit recognized during year(48)(64)(87)Actuarial losses recognized during year118 454 5 Foreign exchange translation and other(9)(171)5 Pension and other postretirement benefit adjustments(407)(233)186 Changes in fair value of available for sale investments5 (8)(3)Cash flow hedges recognized in other comprehensive income (loss)60 71 17 Less: Reclassification adjustment for gains included in net income49 56 20 Changes in fair value of cash flow hedges11 15 (3)Other comprehensive income (loss), net of tax(665)(598)482 Comprehensive income5,007 4,369 6,092 Less: Comprehensive income (loss) attributable to the noncontrolling interest9 (17)64 Comprehensive income attributable to Honeywell$4,998 $4,386 $6,028 The Notes to Consolidated Financial Statements are an integral part of this statement.55 Honeywell International Inc. The Notes to Consolidated Financial Statements are an integral part of this statement.55 Honeywell International Inc. The Notes to Consolidated Financial Statements are an integral part of this statement. 55 Honeywell International Inc. TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTS **Current (2025):** Years Ended December 31,202420232022 (Dollars in millions)Net income$5,740 $5,672 $4,967 Other comprehensive income (loss), net of taxForeign exchange translation adjustment200 (274)(372)Actuarial gains (losses) recognized350 (468)(452)Prior service credit recognized(10) - - Prior service credit recognized during year(17)(48)(64)Actuarial losses recognized during year87 118 454 Foreign exchange translation and other3 (9)(171)Pension and other postretirement benefit adjustments413 (407)(233)Changes in fair value of available for sale investments1 5 (8)Cash flow hedges recognized in other comprehensive income (loss)17 60 71 Less: Reclassification adjustment for gains included in net income16 49 56 Changes in fair value of cash flow hedges1 11 15 Other comprehensive income (loss), net of tax615 (665)(598)Comprehensive income6,355 5,007 4,369 Less: Comprehensive income (loss) attributable to the noncontrolling interest6 9 (17)Comprehensive income attributable to Honeywell$6,349 $4,998 $4,386 The Notes to Consolidated Financial Statements are an integral part of this statement.53 Honeywell International Inc. The Notes to Consolidated Financial Statements are an integral part of this statement.53 Honeywell International Inc. The Notes to Consolidated Financial Statements are an integral part of this statement. 53 Honeywell International Inc. TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTS --- ## Modified: (Income) Expense **Key changes:** - Reworded sentence: "Year Ended December 31, 2023Net SalesCost ofProducts SoldCost ofServices SoldSelling, General andAdministrative ExpensesOther(Income) ExpenseInterest and OtherFinancial Charges$36,662 $16,977 $6,018 $5,127 $(840)$765 Gain (loss) on cash flow hedgesForeign currency exchange contractsAmount reclassified from accumulated other comprehensive loss into income15 28 10 10 - - Gain (loss) on fair value hedgesInterest rate swap agreementsHedged items - - - - - (121)Derivatives designated as hedges - - - - - 121 Gain (loss) on derivatives not designated as hedging instrumentsForeign currency exchange contracts - - - - (116) - Cost of" **Prior (2024):** In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers. This ASU should be applied prospectively to acquisitions occurring on or after the effective date of December 15, 2022, and early adoption was permitted. The Company adopted this guidance on January 1, 2022. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by the transition away from reference rates expected to be discontinued to alternative reference rates. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, to expand the scope of this guidance to include derivatives. The guidance was effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into on or before December 31, 2022. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which extends the period of time entities can utilize the reference rate reform relief guidance under ASU 2020-04 from December 31, 2022, to December 31, 2024. The Company will apply the guidance to impacted transactions during the transition period. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. **Current (2025):** Year Ended December 31, 2023Net SalesCost ofProducts SoldCost ofServices SoldSelling, General andAdministrative ExpensesOther(Income) ExpenseInterest and OtherFinancial Charges$36,662 $16,977 $6,018 $5,127 $(840)$765 Gain (loss) on cash flow hedgesForeign currency exchange contractsAmount reclassified from accumulated other comprehensive loss into income15 28 10 10 - - Gain (loss) on fair value hedgesInterest rate swap agreementsHedged items - - - - - (121)Derivatives designated as hedges - - - - - 121 Gain (loss) on derivatives not designated as hedging instrumentsForeign currency exchange contracts - - - - (116) - Cost of --- ## Modified: ASBESTOS-RELATED LIABILITIES **Key changes:** - Reworded sentence: "Year Ended December 31, 2024Year Ended December 31, 2023Year Ended December 31, 2022BendixNARCOTotalBendixNARCOTotalBendixNARCOTotalBeginning of year$1,644 $ - $1,644 $1,291 $1,325 $2,616 $1,372 $689 $2,061 Accrual for update to estimated liability41 1 42 43 5 48 93 (634)(541)Change in estimated cost of future claims20 - 20 423 - 423 41 - 41 Update of expected resolution values for pending claims - - - 56 - 56 1 - 1 Asbestos-related liability payments(223)(1)(224)(169)(5)(174)(216)(55)(271)NARCO Buyout - - - - (1,325)(1,325) - 1,325 1,325 End of year$1,482 $ - $1,482 $1,644 $ - $1,644 $1,291 $1,325 $2,616" **Prior (2024):** Year Ended December 31, 2023Year Ended December 31, 2022Year Ended December 31, 2021BendixNARCOTotalBendixNARCOTotalBendixNARCOTotalBeginning of year$1,291 $1,325 $2,616 $1,372 $689 $2,061 $1,441 $779 $2,220 Accrual for update to estimated liability43 5 48 93 (634)(541)64 31 95 Change in estimated cost of future claims423 - 423 41 - 41 29 - 29 Update of expected resolution values for pending claims56 - 56 1 - 1 3 - 3 Asbestos-related liability payments(169)(5)(174)(216)(55)(271)(165)(121)(286)NARCO Buyout - (1,325)(1,325) - 1,325 1,325 - - - End of year$1,644 $ - $1,644 $1,291 $1,325 $2,616 $1,372 $689 $2,061 **Current (2025):** Year Ended December 31, 2024Year Ended December 31, 2023Year Ended December 31, 2022BendixNARCOTotalBendixNARCOTotalBendixNARCOTotalBeginning of year$1,644 $ - $1,644 $1,291 $1,325 $2,616 $1,372 $689 $2,061 Accrual for update to estimated liability41 1 42 43 5 48 93 (634)(541)Change in estimated cost of future claims20 - 20 423 - 423 41 - 41 Update of expected resolution values for pending claims - - - 56 - 56 1 - 1 Asbestos-related liability payments(223)(1)(224)(169)(5)(174)(216)(55)(271)NARCO Buyout - - - - (1,325)(1,325) - 1,325 1,325 End of year$1,482 $ - $1,482 $1,644 $ - $1,644 $1,291 $1,325 $2,616 --- ## Modified: (Dollars in tables in millions, except per share amounts) **Key changes:** - Reworded sentence: "Plans2025$1,276 $233 20261,215 236 20271,163 241 20281,112 245 20291,068 249 2030-20344,649 1,311 During the twelve months ended December 31, 2024, the Company completed no repurchases of outstanding Honeywell shares of common stock from the Honeywell U.S." - Reworded sentence: "During the twelve months ended December 31, 2023, the Company repurchased $200 million of outstanding Honeywell shares of common stock from the Honeywell U.S." **Prior (2024):** In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers. This ASU should be applied prospectively to acquisitions occurring on or after the effective date of December 15, 2022, and early adoption was permitted. The Company adopted this guidance on January 1, 2022. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by the transition away from reference rates expected to be discontinued to alternative reference rates. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, to expand the scope of this guidance to include derivatives. The guidance was effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into on or before December 31, 2022. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which extends the period of time entities can utilize the reference rate reform relief guidance under ASU 2020-04 from December 31, 2022, to December 31, 2024. The Company will apply the guidance to impacted transactions during the transition period. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. **Current (2025):** In September 2022, the FASB issued ASU 2022-04, Liabilities - Supplier Finance Programs (Topic 405): Disclosure of Supplier Finance Program Obligations, to enhance the transparency of supplier finance programs. The new standard requires annual disclosure of the key terms of the program, a description of where in the financial statements amounts outstanding under the program are presented, a rollforward of such amounts, and interim disclosure of amounts outstanding as of the end of each period. The guidance does not affect recognition, measurement, or financial statement presentation of supplier finance programs. The ASU was effective on January 1, 2023, except for the rollforward, which was effective on January 1, 2024. The Company adopted this guidance on January 1, 2023, with the exception of the rollforward adopted on January 1, 2024. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. --- ## Modified: December 31,20242023Accrued liabilities$202 $182 Other liabilities35 37 Total obligations for product warranties and product performance guarantees$237 $219 **Key changes:** - Reworded sentence: "100 Honeywell International Inc." **Prior (2024):** NOTE 20. PENSION AND OTHER POSTRETIREMENT BENEFITS The Company sponsors a number of both funded and unfunded U.S. and non-U.S. defined benefit pension plans. Pension benefits for many of the Company's U.S. employees are provided through non-contributory, qualified, and non-qualified defined benefit plans. All non-union hourly and salaried employees joining Honeywell for the first time after December 31, 2012, are not eligible to participate in Honeywell's U.S. defined benefit pension plans. The Company also sponsors defined benefit pension plans which cover non-U.S. employees who are not U.S. citizens, in certain jurisdictions, principally the UK, Netherlands, Germany, and Canada. Other pension plans outside of the U.S. are not material to the Company either individually or in the aggregate. The Company sponsors postretirement benefit plans that provide health care benefits and life insurance coverage mainly to U.S. eligible retirees. None of Honeywell's U.S. employees are eligible for a retiree medical subsidy from the Company. In addition, the vast majority of Honeywell's U.S. retirees either have no Company subsidy or have a fixed-dollar subsidy amount. This significantly limits the Company's exposure to the impact of future health care cost increases. The retiree medical and life insurance plans are not funded. Claims and expenses are paid from the Company's cash flows from operations. 101 Honeywell International Inc. 101 Honeywell International Inc. 101 Honeywell International Inc. TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATAHONEYWELL INTERNATIONAL INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)(Dollars in tables in millions, except per share amounts) TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTS **Current (2025):** NOTE 20. PENSION AND OTHER POSTRETIREMENT BENEFITS The Company sponsors a number of both funded and unfunded U.S. and non-U.S. defined benefit pension plans. Pension benefits for many of the Company's U.S. employees are provided through non-contributory, qualified, and non-qualified defined benefit plans. All non-union hourly and salaried employees joining Honeywell for the first time after December 31, 2012, are not eligible to participate in Honeywell's U.S. defined benefit pension plans. The Company also sponsors defined benefit pension plans which cover non-U.S. employees who are not U.S. citizens, in certain jurisdictions, principally the UK, Netherlands, Germany, and Canada. Other pension plans outside of the U.S. are not material to the Company either individually or in the aggregate. The Company sponsors postretirement benefit plans that provide health care benefits and life insurance coverage mainly to U.S. eligible retirees. None of Honeywell's U.S. employees are eligible for a retiree medical subsidy from the Company. In addition, the vast majority of Honeywell's U.S. retirees either have no Company subsidy or have a fixed-dollar subsidy amount. This significantly limits the Company's exposure to the impact of future health care cost increases. The retiree medical and life insurance plans are not funded. Claims and expenses are paid from the Company's cash flows from operations. 100 Honeywell International Inc. 100 Honeywell International Inc. 100 Honeywell International Inc. TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATAHONEYWELL INTERNATIONAL INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)(Dollars in tables in millions, except per share amounts) TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTS --- ## Modified: Issuances of Senior Notes **Key changes:** - Reworded sentence: "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)." - Removed sentence: "On February 22, 2023, the Company repaid its 1.30% Euro notes due 2023." - Removed sentence: "On March 20, 2023, 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)." - Removed sentence: "The 364-Day Credit Agreement replaced the $1.5 billion 364-day credit agreement dated as of March 24, 2022, which was terminated in accordance with its terms effective March 20, 2023." - Removed sentence: "Amounts borrowed under the 364-Day Credit Agreement are required to be repaid no later than March 18, 2024, 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 18, 2025, or (ii) the 364-Day Credit Agreement is terminated earlier pursuant to its terms." **Prior (2024):** In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers. This ASU should be applied prospectively to acquisitions occurring on or after the effective date of December 15, 2022, and early adoption was permitted. The Company adopted this guidance on January 1, 2022. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by the transition away from reference rates expected to be discontinued to alternative reference rates. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, to expand the scope of this guidance to include derivatives. The guidance was effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into on or before December 31, 2022. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which extends the period of time entities can utilize the reference rate reform relief guidance under ASU 2020-04 from December 31, 2022, to December 31, 2024. The Company will apply the guidance to impacted transactions during the transition period. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. **Current (2025):** 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. On May 17, 2023, the Company issued $750 million 4.25% Senior Notes due 2029 and $1.0 billion 4.50% Senior Notes due 2034 (collectively, the 2023 USD Notes). The Company may redeem the 2023 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 $1.8 billion, offset by $20 million in discount and closing costs related to the offering. On May 17, 2023, the Company issued €650 million 3.50% Senior Notes due 2027 and €500 million 3.75% Senior Notes due 2032 (collectively, the 2023 Euro Notes). The Company may redeem the 2023 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 $1.2 billion, offset by $12 million in discount and closing costs related to the offering. The 2023 USD Notes and 2023 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 the repayment of commercial paper and general corporate purposes. --- ## Modified: OTHER POSTRETIREMENT BENEFITS **Key changes:** - Reworded sentence: "December 31,20242023Assumed health care cost trend rateHealth care cost trend rate assumed for next year6.50 %7.00 %Rate that the cost trend rate gradually declines to5.00 %5.00 %Year that the rate reaches the rate it is assumed to remain at2031 2031 Benefit payments reflecting expected future service, as appropriate, are expected to be paid as follows: Without Impact ofMedicare SubsidyNet ofMedicare Subsidy2025$12 $11 202611 11 202711 10 202810 10 202910 9 2030-203440 38 109 Honeywell International Inc." **Prior (2024):** December 31,20232022Assumed health care cost trend rateHealth care cost trend rate assumed for next year7.00 %7.50 %Rate that the cost trend rate gradually declines to5.00 %5.00 %Year that the rate reaches the rate it is assumed to remain at2031 2031 Benefit payments reflecting expected future service, as appropriate, are expected to be paid as follows: Without Impact ofMedicare SubsidyNet ofMedicare Subsidy2024$13 $12 202512 12 202612 11 202711 11 202811 10 2029-203346 44 110 Honeywell International Inc. 110 Honeywell International Inc. 110 Honeywell International Inc. TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATAHONEYWELL INTERNATIONAL INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)(Dollars in tables in millions, except per share amounts) TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTS **Current (2025):** December 31,20242023Assumed health care cost trend rateHealth care cost trend rate assumed for next year6.50 %7.00 %Rate that the cost trend rate gradually declines to5.00 %5.00 %Year that the rate reaches the rate it is assumed to remain at2031 2031 Benefit payments reflecting expected future service, as appropriate, are expected to be paid as follows: Without Impact ofMedicare SubsidyNet ofMedicare Subsidy2025$12 $11 202611 11 202711 10 202810 10 202910 9 2030-203440 38 109 Honeywell International Inc. 109 Honeywell International Inc. 109 Honeywell International Inc. TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATAHONEYWELL INTERNATIONAL INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)(Dollars in tables in millions, except per share amounts) TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTS --- ## Modified: Net deferred tax liability1 **Key changes:** - Reworded sentence: "1 As of December 31, 2024, Net deferred tax liability excludes $124 million that are included in Liabilities held for sale in the Consolidated Balance Sheet." - Reworded sentence: "The change in the valuation allowance resulted in a decrease of $13 million, an increase of $458 million, and a decrease of $8 million to income tax expense in 2024, 2023, and 2022, respectively." - Reworded sentence: "As of December 31, 2024, the Company recorded a $516 million deferred tax liability on all unremitted foreign earnings based on estimated earnings and profits of approximately $18.3 billion as of the balance sheet date." **Prior (2024):** The tax effects of temporary differences and tax carryforwards which give rise to future income tax benefits and payables are as follows: Deferred tax assetsDecember 31,20232022Postretirement benefits other than pensions$55 $59 Asbestos and environmental405 545 Capitalized research and development582 - Employee compensation and benefits148 142 Lease liabilities258 233 Other accruals and reserves196 363 Net operating losses687 695 Capital loss limitation and carryover385 126 Tax credit carryforwards and other attributes420 163 Gross deferred tax assets3,136 2,326 Valuation allowance(1,292)(812)Total deferred tax assets1,844 1,514 Deferred tax liabilitiesPension(1,132)(1,088)Property, plant and equipment(441)(233)Right-of-use asset(240)(212)Intangibles(817)(818)Unremitted earnings of foreign subsidiaries(542)(517)Other asset basis differences(369)(317)Other(5)(1)Total deferred tax liabilities(3,546)(3,186)Net deferred tax liability$(1,702)$(1,672) Property, plant and equipment The Company's gross deferred tax assets include $1,378 million related to non-U.S. operations comprised primarily of net operating losses and other tax attribute carryforwards in Canada, France, Germany, Luxembourg, Switzerland, and the United Kingdom. The Company maintains a valuation allowance of $1,176 million against a portion of the non-U.S. gross deferred tax assets and a valuation allowance of $116 million against the U.S. gross deferred tax asset, primarily related to capital loss carryovers. The change in the valuation allowance resulted in an increase of $458 million, a decrease of $8 million, and an increase of $124 million to income tax expense in 2023, 2022, and 2021, respectively. The majority of the $458 million increase in 2023 tax expense relates to a $257 million valuation allowance resulting from uncertainty regarding the realizability of a $257 million deferred tax asset established as a result of a non-U.S. tax legislative change. The remaining $201 million relates to other tax attribute carryforwards. If the Company determines that the likelihood of realization of existing deferred tax assets changes, a corresponding increase or decrease to valuation allowances will be recognized as an increase or reduction to income tax expense in the period that determination is made. As of December 31, 2023, the Company recorded a $542 million deferred tax liability on all unremitted foreign earnings based on estimated earnings and profits of approximately $15 billion as of the balance sheet date. 74 Honeywell International Inc. 74 Honeywell International Inc. 74 Honeywell International Inc. TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATAHONEYWELL INTERNATIONAL INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)(Dollars in tables in millions, except per share amounts) TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTS **Current (2025):** 1 As of December 31, 2024, Net deferred tax liability excludes $124 million that are included in Liabilities held for sale in the Consolidated Balance Sheet. Refer to Note 2 Acquisitions, Divestitures, and Assets and Liabilities Held for Sale. The Company's gross deferred tax assets include $1,360 million related to non-U.S. operations comprised primarily of net operating losses and other tax attribute carryforwards in France, Germany, Luxembourg, Switzerland, and the United Kingdom. The Company maintains a valuation allowance of $1,066 million against a portion of the non-U.S. gross deferred tax assets and a valuation allowance of $187 million against the U.S. gross deferred tax asset, primarily related to capital loss carryovers. The change in the valuation allowance resulted in a decrease of $13 million, an increase of $458 million, and a decrease of $8 million to income tax expense in 2024, 2023, and 2022, respectively. If the Company determines that the likelihood of realization of existing deferred tax assets changes, a corresponding increase or decrease to valuation allowances will be recognized as an increase or reduction to income tax expense in the period that determination is made. As of December 31, 2024, the Company recorded a $516 million deferred tax liability on all unremitted foreign earnings based on estimated earnings and profits of approximately $18.3 billion as of the balance sheet date. 74 Honeywell International Inc. 74 Honeywell International Inc. 74 Honeywell International Inc. TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATAHONEYWELL INTERNATIONAL INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)(Dollars in tables in millions, except per share amounts) TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTS --- ## Modified: (Dollars in tables in millions, except per share amounts) **Key changes:** - Reworded sentence: "Contract balances are classified as assets or liabilities on a contract-by-contract basis at the end of each reporting period." **Prior (2024):** In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers. This ASU should be applied prospectively to acquisitions occurring on or after the effective date of December 15, 2022, and early adoption was permitted. The Company adopted this guidance on January 1, 2022. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by the transition away from reference rates expected to be discontinued to alternative reference rates. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, to expand the scope of this guidance to include derivatives. The guidance was effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into on or before December 31, 2022. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which extends the period of time entities can utilize the reference rate reform relief guidance under ASU 2020-04 from December 31, 2022, to December 31, 2024. The Company will apply the guidance to impacted transactions during the transition period. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. **Current (2025):** In September 2022, the FASB issued ASU 2022-04, Liabilities - Supplier Finance Programs (Topic 405): Disclosure of Supplier Finance Program Obligations, to enhance the transparency of supplier finance programs. The new standard requires annual disclosure of the key terms of the program, a description of where in the financial statements amounts outstanding under the program are presented, a rollforward of such amounts, and interim disclosure of amounts outstanding as of the end of each period. The guidance does not affect recognition, measurement, or financial statement presentation of supplier finance programs. The ASU was effective on January 1, 2023, except for the rollforward, which was effective on January 1, 2024. The Company adopted this guidance on January 1, 2023, with the exception of the rollforward adopted on January 1, 2024. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. --- ## Modified: (Dollars in tables in millions, except per share amounts) **Key changes:** - Added sentence: "PlansDecember 31, 2024TotalLevel 1Level 2Level 3EquitiesU.S." - Added sentence: "equities$209 $ - $209 $ - Non-U.S." - Added sentence: "equities436 - 436 - Fixed incomeShort-term investments385 68 317 - Government securities1,317 - 1,317 - Corporate bonds1,144 - 1,144 - Mortgage/Asset-backed securities18 - 18 - Insurance contracts90 - 90 - Insurance buy-in contracts1,390 - - 1,390 Investments in private fundsPrivate funds112 - 34 78 Real estate funds2 - - 2 Total$5,103 $68 $3,565 $1,470 Investments measured at NAVPrivate funds1 Real estate funds1 Total assets at fair value$5,105 Non-U.S." - Reworded sentence: "equities365 - 365 - Fixed incomeShort-term investments387 168 219 - Government securities1,635 - 1,635 - Corporate bonds1,103 - 1,103 - Mortgage/Asset-backed securities10 - 10 - Insurance contracts108 - 108 - Insurance buy-in contracts1,605 - - 1,605 Investments in private fundsPrivate funds115 - 41 74 Real estate funds16 - - 16 Total$5,539 $168 $3,676 $1,695 Investments measured at NAVPrivate funds8 Real estate funds2 Total assets at fair value$5,549 107 Honeywell International Inc." **Prior (2024):** In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers. This ASU should be applied prospectively to acquisitions occurring on or after the effective date of December 15, 2022, and early adoption was permitted. The Company adopted this guidance on January 1, 2022. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by the transition away from reference rates expected to be discontinued to alternative reference rates. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, to expand the scope of this guidance to include derivatives. The guidance was effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into on or before December 31, 2022. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which extends the period of time entities can utilize the reference rate reform relief guidance under ASU 2020-04 from December 31, 2022, to December 31, 2024. The Company will apply the guidance to impacted transactions during the transition period. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. **Current (2025):** In September 2022, the FASB issued ASU 2022-04, Liabilities - Supplier Finance Programs (Topic 405): Disclosure of Supplier Finance Program Obligations, to enhance the transparency of supplier finance programs. The new standard requires annual disclosure of the key terms of the program, a description of where in the financial statements amounts outstanding under the program are presented, a rollforward of such amounts, and interim disclosure of amounts outstanding as of the end of each period. The guidance does not affect recognition, measurement, or financial statement presentation of supplier finance programs. The ASU was effective on January 1, 2023, except for the rollforward, which was effective on January 1, 2024. The Company adopted this guidance on January 1, 2023, with the exception of the rollforward adopted on January 1, 2024. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. --- ## Modified: (Dollars in tables in millions, except per share amounts) **Key changes:** - Reworded sentence: "OTHER (INCOME) EXPENSE Years Ended December 31,202420232022Interest income$(426)$(321)$(138)Pension ongoing income - non-service(531)(441)(602)Other postretirement income - non-service(11)(29)(41)Equity income of affiliated companies(65)(100)(61)Loss (gain) on sale of non-strategic businesses and assets1 (5)(22)Foreign exchange loss56 9 48 Expense related to UOP Matters - - 45 Expense (benefit) related to Russia-Ukraine conflict17 (3)45 Net expense related to the NARCO Buyout and HWI Sale - 11 342 Other, net129 39 18 Total Other (income) expense$(830)$(840)$(366) See Note 19 Commitments and Contingencies for more information on the UOP Matters, NARCO Buyout, and HWI Sale." - Removed sentence: "See Note 2 Acquisitions and Divestitures for further discussion on the gain on sale of non-strategic businesses and assets." - Reworded sentence: "Segment information is consistent with how the Chairman and Chief Executive Officer, who is the Company's chief operating decision maker, and management reviews the businesses, makes investing and resource allocation decisions, and assesses operating performance." - Reworded sentence: "Each segment's profit is measured as segment income (loss) before taxes excluding general corporate unallocated expense, interest and other financial charges, interest income, acquisition-related intangibles, impairment of assets held for sale, stock compensation expense, pension and other postretirement income (expense), repositioning and other charges, and other items within Other (income) expense." **Prior (2024):** In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers. This ASU should be applied prospectively to acquisitions occurring on or after the effective date of December 15, 2022, and early adoption was permitted. The Company adopted this guidance on January 1, 2022. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by the transition away from reference rates expected to be discontinued to alternative reference rates. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, to expand the scope of this guidance to include derivatives. The guidance was effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into on or before December 31, 2022. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which extends the period of time entities can utilize the reference rate reform relief guidance under ASU 2020-04 from December 31, 2022, to December 31, 2024. The Company will apply the guidance to impacted transactions during the transition period. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. **Current (2025):** In September 2022, the FASB issued ASU 2022-04, Liabilities - Supplier Finance Programs (Topic 405): Disclosure of Supplier Finance Program Obligations, to enhance the transparency of supplier finance programs. The new standard requires annual disclosure of the key terms of the program, a description of where in the financial statements amounts outstanding under the program are presented, a rollforward of such amounts, and interim disclosure of amounts outstanding as of the end of each period. The guidance does not affect recognition, measurement, or financial statement presentation of supplier finance programs. The ASU was effective on January 1, 2023, except for the rollforward, which was effective on January 1, 2024. The Company adopted this guidance on January 1, 2023, with the exception of the rollforward adopted on January 1, 2024. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. --- ## Modified: Financial Charges **Key changes:** - Reworded sentence: "CAPITAL STOCK The Company is authorized to issue up to 2.0 billion shares of common stock, with a par value of $1 per share." - Reworded sentence: "On April 24, 2023, the Board authorized the repurchase of up to a total of $10.0 billion of Honeywell common stock." **Prior (2024):** 93 Honeywell International Inc. 93 Honeywell International Inc. 93 Honeywell International Inc. TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATAHONEYWELL INTERNATIONAL INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)(Dollars in tables in millions, except per share amounts) TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTS **Current (2025):** 93 Honeywell International Inc. 93 Honeywell International Inc. 93 Honeywell International Inc. TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATAHONEYWELL INTERNATIONAL INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)(Dollars in tables in millions, except per share amounts) TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTS --- ## Modified: CONSOLIDATED STATEMENT OF SHAREOWNERS' EQUITY **Key changes:** - Reworded sentence: "Years Ended December 31,202420232022Shares$Shares$Shares$ (In millions, except per share amounts)Common stock, par value957.6 958 957.6 958 957.6 958 Additional paid-in capitalBeginning balance9,062 8,564 8,141 Issued for employee savings and option plans403 214 235 Stock compensation expense194 202 188 Impact of Quantinuum contribution36 82 - Ending balance9,695 9,062 8,564 Treasury stockBeginning balance(305.8)(38,008)(290.0)(34,443)(272.8)(30,462)Reacquired stock or repurchases of common stock(8.0)(1,672)(19.2)(3,715)(21.9)(4,200)Issued for employee savings and option plans6.0 302 3.4 150 4.7 219 Ending balance(307.8)(39,378)(305.8)(38,008)(290.0)(34,443)Retained earningsBeginning balance47,979 45,093 42,827 Net income attributable to Honeywell5,705 5,658 4,966 Dividends on common stock(2,849)(2,772)(2,700)Ending balance50,835 47,979 45,093 Accumulated other comprehensive lossBeginning balance(4,135)(3,475)(2,895)Foreign exchange translation adjustment229 (269)(354)Pension and other postretirement benefit adjustments413 (407)(233)Changes in fair value of available for sale investments1 5 (8)Changes in fair value of cash flow hedges1 11 15 Ending balance(3,491)(4,135)(3,475)Noncontrolling interestBeginning balance578 622 673 Acquisitions, divestitures, and other - (5) - Net income attributable to noncontrolling interest35 14 1 Foreign exchange translation adjustment(29)(5)(18)Dividends paid(78)(107)(48)Contributions from noncontrolling interest holders29 59 14 Ending balance535 578 622 Total shareowners' equity649.8 19,154 651.8 16,434 667.6 17,319 Cash dividends per share of common stock$4.37 $4.17 $3.97 Impact of Quantinuum contribution The Notes to Consolidated Financial Statements are an integral part of this statement.56 Honeywell International Inc." - Reworded sentence: "56 Honeywell International Inc." **Prior (2024):** Years Ended December 31,202320222021Shares$Shares$Shares$ (In millions, except per share amounts)Common stock, par value957.6 958 957.6 958 957.6 958 Additional paid-in capitalBeginning balance8,564 8,141 7,292 Issued for employee savings and option plans214 235 184 Stock compensation expense202 188 217 Impact of Quantinuum contribution82 - 448 Ending balance9,062 8,564 8,141 Treasury stockBeginning balance(290.0)(34,443)(272.8)(30,462)(260.8)(27,229)Reacquired stock or repurchases of common stock(19.2)(3,715)(21.9)(4,200)(15.8)(3,380)Issued for employee savings and option plans3.4 150 4.7 219 3.8 147 Ending balance(305.8)(38,008)(290.0)(34,443)(272.8)(30,462)Retained earningsBeginning balance45,093 42,827 39,905 Net income attributable to Honeywell5,658 4,966 5,542 Dividends on common stock(2,772)(2,700)(2,620)Ending balance47,979 45,093 42,827 Accumulated other comprehensive income (loss)Beginning balance(3,475)(2,895)(3,377)Foreign exchange translation adjustment(269)(354)302 Pension and other postretirement benefit adjustments(407)(233)186 Changes in fair value of available for sale investments5 (8)(3)Changes in fair value of cash flow hedges11 15 (3)Ending balance(4,135)(3,475)(2,895)Noncontrolling interestBeginning balance622 673 241 Acquisitions, divestitures, and other(5) - 397 Net income attributable to noncontrolling interest14 1 68 Foreign exchange translation adjustment(5)(18)(4)Dividends paid(107)(48)(33)Contributions from noncontrolling interest holders59 14 4 Ending balance578 622 673 Total shareowners' equity651.8 16,434 667.6 17,319 684.8 19,242 Cash dividends per share of common stock$4.17 $3.97 $3.77 Impact of Quantinuum contribution The Notes to Consolidated Financial Statements are an integral part of this statement.58 Honeywell International Inc. The Notes to Consolidated Financial Statements are an integral part of this statement.58 Honeywell International Inc. The Notes to Consolidated Financial Statements are an integral part of this statement. 58 Honeywell International Inc. TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATAHONEYWELL INTERNATIONAL INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Dollars in tables in millions, except per share amounts) TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTS **Current (2025):** Years Ended December 31,202420232022Shares$Shares$Shares$ (In millions, except per share amounts)Common stock, par value957.6 958 957.6 958 957.6 958 Additional paid-in capitalBeginning balance9,062 8,564 8,141 Issued for employee savings and option plans403 214 235 Stock compensation expense194 202 188 Impact of Quantinuum contribution36 82 - Ending balance9,695 9,062 8,564 Treasury stockBeginning balance(305.8)(38,008)(290.0)(34,443)(272.8)(30,462)Reacquired stock or repurchases of common stock(8.0)(1,672)(19.2)(3,715)(21.9)(4,200)Issued for employee savings and option plans6.0 302 3.4 150 4.7 219 Ending balance(307.8)(39,378)(305.8)(38,008)(290.0)(34,443)Retained earningsBeginning balance47,979 45,093 42,827 Net income attributable to Honeywell5,705 5,658 4,966 Dividends on common stock(2,849)(2,772)(2,700)Ending balance50,835 47,979 45,093 Accumulated other comprehensive lossBeginning balance(4,135)(3,475)(2,895)Foreign exchange translation adjustment229 (269)(354)Pension and other postretirement benefit adjustments413 (407)(233)Changes in fair value of available for sale investments1 5 (8)Changes in fair value of cash flow hedges1 11 15 Ending balance(3,491)(4,135)(3,475)Noncontrolling interestBeginning balance578 622 673 Acquisitions, divestitures, and other - (5) - Net income attributable to noncontrolling interest35 14 1 Foreign exchange translation adjustment(29)(5)(18)Dividends paid(78)(107)(48)Contributions from noncontrolling interest holders29 59 14 Ending balance535 578 622 Total shareowners' equity649.8 19,154 651.8 16,434 667.6 17,319 Cash dividends per share of common stock$4.37 $4.17 $3.97 Impact of Quantinuum contribution The Notes to Consolidated Financial Statements are an integral part of this statement.56 Honeywell International Inc. The Notes to Consolidated Financial Statements are an integral part of this statement.56 Honeywell International Inc. The Notes to Consolidated Financial Statements are an integral part of this statement. 56 Honeywell International Inc. TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATAHONEYWELL INTERNATIONAL INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Dollars in tables in millions, except per share amounts) TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTS --- ## Modified: (Dollars in tables in millions, except per share amounts) **Key changes:** - Added sentence: "PlansDecember 31, 2024TotalLevel 1Level 2Level 3EquitiesHoneywell common stock$3,283 $3,283 $ - $ - U.S." - Added sentence: "equities819 819 - - Fixed incomeShort-term investments776 83 693 - Government securities2,142 - 2,142 - Corporate bonds5,104 230 4,874 - Mortgage/Asset-backed securities790 - 790 - Insurance contracts7 - 7 - Direct investmentsDirect private investments1,337 - - 1,337 Real estate properties972 - - 972 Total$15,230 $4,415 $8,506 $2,309 Investments measured at NAVPrivate funds1,327 Real estate funds8 Total assets at fair value$16,565 U.S." - Reworded sentence: "equities - - - - Fixed incomeShort-term investments2,942 283 2,659 - Government securities532 - 532 - Corporate bonds5,733 - 5,733 - Mortgage/Asset-backed securities676 - 676 - Insurance contracts7 - 7 - Direct investmentsDirect private investments1,293 - - 1,293 Real estate properties977 - - 977 Total$15,209 $3,332 $9,607 $2,270 Investments measured at NAVPrivate funds1,265 Real estate funds8 Commingled funds112 Total assets at fair value$16,594 106 Honeywell International Inc." **Prior (2024):** In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers. This ASU should be applied prospectively to acquisitions occurring on or after the effective date of December 15, 2022, and early adoption was permitted. The Company adopted this guidance on January 1, 2022. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by the transition away from reference rates expected to be discontinued to alternative reference rates. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, to expand the scope of this guidance to include derivatives. The guidance was effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into on or before December 31, 2022. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which extends the period of time entities can utilize the reference rate reform relief guidance under ASU 2020-04 from December 31, 2022, to December 31, 2024. The Company will apply the guidance to impacted transactions during the transition period. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. **Current (2025):** In September 2022, the FASB issued ASU 2022-04, Liabilities - Supplier Finance Programs (Topic 405): Disclosure of Supplier Finance Program Obligations, to enhance the transparency of supplier finance programs. The new standard requires annual disclosure of the key terms of the program, a description of where in the financial statements amounts outstanding under the program are presented, a rollforward of such amounts, and interim disclosure of amounts outstanding as of the end of each period. The guidance does not affect recognition, measurement, or financial statement presentation of supplier finance programs. The ASU was effective on January 1, 2023, except for the rollforward, which was effective on January 1, 2024. The Company adopted this guidance on January 1, 2023, with the exception of the rollforward adopted on January 1, 2024. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. --- ## Modified: (Dollars in tables in millions, except per share amounts) **Key changes:** - Reworded sentence: "See the following disaggregated revenue table and related discussions by reportable business segment for details: Years Ended December 31, 202420232022Aerospace Technologies Commercial Aviation Original Equipment$2,223 $2,397 $2,089 Commercial Aviation Aftermarket7,144 6,241 5,108 Defense and Space6,091 4,986 4,630 Net Aerospace Technologies sales15,458 13,624 11,827 Industrial AutomationSensing and Safety Technologies1,824 1,983 2,145 Productivity Solutions and Services1,202 1,313 1,739 Process Solutions6,111 6,017 5,446 Warehouse and Workflow Solutions914 1,443 2,308 Net Industrial Automation sales10,051 10,756 11,638 Building AutomationProducts3,868 3,583 3,638 Building Solutions2,672 2,448 2,362 Net Building Automation sales6,540 6,031 6,000 Energy and Sustainability SolutionsUOP2,644 2,586 2,404 Advanced Materials3,781 3,653 3,592 Net Energy and Sustainability Solutions sales6,425 6,239 5,996 Corporate and All Other24 12 5 Net sales$38,498 $36,662 $35,466 In April 2024, the Company realigned certain business units within the Industrial Automation reportable business segment." - Reworded sentence: "Aerospace Technologies - A global supplier of products, software, and services for aircrafts that it sells to original equipment manufacturers (OEM) and other customers in a variety of end markets including air transport, regional, business and general aviation aircraft, airlines, aircraft operators, and defense and space contractors." **Prior (2024):** In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers. This ASU should be applied prospectively to acquisitions occurring on or after the effective date of December 15, 2022, and early adoption was permitted. The Company adopted this guidance on January 1, 2022. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by the transition away from reference rates expected to be discontinued to alternative reference rates. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, to expand the scope of this guidance to include derivatives. The guidance was effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into on or before December 31, 2022. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which extends the period of time entities can utilize the reference rate reform relief guidance under ASU 2020-04 from December 31, 2022, to December 31, 2024. The Company will apply the guidance to impacted transactions during the transition period. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. **Current (2025):** In September 2022, the FASB issued ASU 2022-04, Liabilities - Supplier Finance Programs (Topic 405): Disclosure of Supplier Finance Program Obligations, to enhance the transparency of supplier finance programs. The new standard requires annual disclosure of the key terms of the program, a description of where in the financial statements amounts outstanding under the program are presented, a rollforward of such amounts, and interim disclosure of amounts outstanding as of the end of each period. The guidance does not affect recognition, measurement, or financial statement presentation of supplier finance programs. The ASU was effective on January 1, 2023, except for the rollforward, which was effective on January 1, 2024. The Company adopted this guidance on January 1, 2023, with the exception of the rollforward adopted on January 1, 2024. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. --- ## Modified: /S/ DELOITTE & TOUCHE LLP **Key changes:** - Reworded sentence: "Charlotte, North Carolina February 14, 2025 We have served as the Company's auditor since 2014." **Prior (2024):** Charlotte, North Carolina February 16, 2024 We have served as the Company's auditor since 2014. 116 Honeywell International Inc. 116 Honeywell International Inc. 116 Honeywell International Inc. TABLE OF CONTENTS TABLE OF CONTENTS TABLE OF CONTENTS **Current (2025):** Charlotte, North Carolina February 14, 2025 We have served as the Company's auditor since 2014. 115 Honeywell International Inc. 115 Honeywell International Inc. 115 Honeywell International Inc. TABLE OF CONTENTS TABLE OF CONTENTS TABLE OF CONTENTS --- ## Modified: RESTRICTED STOCK UNITS **Key changes:** - Reworded sentence: "three The following table summarizes information about RSU activity for the three years ended December 31, 2024: Number ofRestrictedStock Units(in millions)WeightedAverageGrant DateFair ValuePer ShareNon-vested at December 31, 20213.0 $171.73 Granted1.0 186.48 Vested(0.9)157.21 Forfeited(0.4)177.38 Non-vested at December 31, 20222.7 181.10 Granted1.1 194.81 Vested(0.9)171.92 Forfeited(0.3)187.13 Non-vested at December 31, 20232.6 189.18 Granted1.0 200.44 Vested(0.8)185.70 Forfeited(0.3)191.68 Non-vested at December 31, 20242.5 $194.85 As of December 31, 2024, there was approximately $236 million of total unrecognized compensation cost related to non-vested RSUs granted under the Company's stock plans which is expected to be recognized over a weighted average period of 1.88 years." **Prior (2024):** Restricted stock unit (RSU) awards entitle the holder to receive one share of common stock for each unit when the units vest. RSUs are issued to certain key employees and directors as compensation at fair market value at the date of grant. RSUs generally become fully vested over periods ranging from three to six years and are payable in Honeywell common stock upon vesting. Certain RSU awards are performance-based and awarded to eligible employees which entitle the grantee to receive shares of common stock if specified Company performance goals are achieved during the performance period and if the grantee remains employed through the vesting period. three 90 Honeywell International Inc. 90 Honeywell International Inc. 90 Honeywell International Inc. TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATAHONEYWELL INTERNATIONAL INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)(Dollars in tables in millions, except per share amounts) TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTS **Current (2025):** Restricted stock unit (RSU) awards entitle the holder to receive one share of common stock for each unit when the units vest. RSUs are issued to certain key employees and directors as compensation at fair market value at the date of grant. RSUs generally become fully vested over periods ranging from three to six years and are payable in Honeywell common stock upon vesting. Certain RSU awards are performance-based and awarded to eligible employees which entitle the grantee to receive shares of common stock if specified Company performance goals are achieved during the performance period and if the grantee remains employed through the vesting period. three The following table summarizes information about RSU activity for the three years ended December 31, 2024: Number ofRestrictedStock Units(in millions)WeightedAverageGrant DateFair ValuePer ShareNon-vested at December 31, 20213.0 $171.73 Granted1.0 186.48 Vested(0.9)157.21 Forfeited(0.4)177.38 Non-vested at December 31, 20222.7 181.10 Granted1.1 194.81 Vested(0.9)171.92 Forfeited(0.3)187.13 Non-vested at December 31, 20232.6 189.18 Granted1.0 200.44 Vested(0.8)185.70 Forfeited(0.3)191.68 Non-vested at December 31, 20242.5 $194.85 As of December 31, 2024, there was approximately $236 million of total unrecognized compensation cost related to non-vested RSUs granted under the Company's stock plans which is expected to be recognized over a weighted average period of 1.88 years. The following table summarizes the impact to the Consolidated Statement of Operations from RSUs: Years Ended December 31,202420232022Compensation expense$142 $154 $143 Future income tax benefit recognized30 32 29 90 Honeywell International Inc. 90 Honeywell International Inc. 90 Honeywell International Inc. TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATAHONEYWELL INTERNATIONAL INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)(Dollars in tables in millions, except per share amounts) TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTS --- ## Modified: DERIVATIVES AND HEDGING ACTIVITIES **Key changes:** - Removed sentence: "To qualify as a hedge, derivative financial instruments must be evaluated for hedge effectiveness at the inception of the contract and designated as a hedge." - Removed sentence: "Changes in fair value of the derivative contract must be highly correlated with changes in fair value of the underlying hedged item at inception and over the life of the hedge contract." **Prior (2024):** The Company uses derivative financial instruments to manage its risks related to interest rates, foreign currency exchange rates, and commodity prices. Derivative financial instruments are not used for trading or other speculative purposes. To qualify as a hedge, derivative financial instruments must be evaluated for hedge effectiveness at the inception of the contract and designated as a hedge. Changes in fair value of the derivative contract must be highly correlated with changes in fair value of the underlying hedged item at inception and over the life of the hedge contract. **Current (2025):** The Company uses derivative financial instruments to manage its risks related to interest rates, foreign currency exchange rates, and commodity prices. Derivative financial instruments are not used for trading or other speculative purposes. --- ## Modified: (Dollars in tables in millions, except per share amounts) **Key changes:** - Reworded sentence: "Given the uncertainty inherent in litigation and investigations, including those discussed in this Note 19, 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." **Prior (2024):** LITIGATION See Note 19 Commitments and Contingencies of Notes to Consolidated Financial Statements for a discussion of environmental, asbestos, and other litigation matters. RECENT ACCOUNTING PRONOUNCEMENTS See Note 1 Summary of Significant Accounting Policies of Notes to Consolidated Financial Statements for a discussion of recent accounting pronouncements. 47 Honeywell International Inc. 47 Honeywell International Inc. 47 Honeywell International Inc. TABLE OF CONTENTS TABLE OF CONTENTS TABLE OF CONTENTS **Current (2025):** In September 2022, the FASB issued ASU 2022-04, Liabilities - Supplier Finance Programs (Topic 405): Disclosure of Supplier Finance Program Obligations, to enhance the transparency of supplier finance programs. The new standard requires annual disclosure of the key terms of the program, a description of where in the financial statements amounts outstanding under the program are presented, a rollforward of such amounts, and interim disclosure of amounts outstanding as of the end of each period. The guidance does not affect recognition, measurement, or financial statement presentation of supplier finance programs. The ASU was effective on January 1, 2023, except for the rollforward, which was effective on January 1, 2024. The Company adopted this guidance on January 1, 2023, with the exception of the rollforward adopted on January 1, 2024. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. --- ## Modified: HONEYWELL INTERNATIONAL INC. **Key changes:** - Reworded sentence: "CONSOLIDATED STATEMENT OF CASH FLOWS Years Ended December 31,202420232022 (Dollars in millions)Cash flows from operating activities Net income$5,740 $5,672 $4,967 Less: Net income attributable to noncontrolling interest35 14 1 Net income attributable to Honeywell5,705 5,658 4,966 Adjustments to reconcile net income attributable to Honeywell to net cash provided by operating activitiesDepreciation671 659 657 Amortization663 517 547 Loss (gain) on sale of non-strategic businesses and assets1 (5)(22)Impairment of assets held for sale219 - - Repositioning and other charges244 860 1,266 Net payments for repositioning and other charges(479)(459)(512)NARCO Buyout payment - (1,325) - Pension and other postretirement income(476)(406)(510)Pension and other postretirement benefit payments(32)(38)(23)Stock compensation expense194 202 188 Deferred income taxes(233)153 (180)Other(617)(837)(358)Changes in assets and liabilities, net of the effects of acquisitions and divestituresAccounts receivable(96)(42)(739)Inventories(304)(626)(440)Other current assets371 17 232 Accounts payable95 518 (155)Accrued liabilities171 494 357 Net cash provided by operating activities6,097 5,340 5,274 Cash flows from investing activitiesCapital expenditures(1,164)(1,039)(766)Proceeds from disposals of property, plant and equipment - 43 29 Increase in investments(1,077)(560)(1,211)Decrease in investments870 971 1,255 Receipts from Garrett Motion Inc. - - 409 Receipts from settlements of derivative contracts94 6 369 Cash paid for acquisitions, net of cash acquired(8,880)(718)(178)Proceeds from sales of businesses, net of fees paid - 4 - Net cash used for investing activities(10,157)(1,293)(93)Cash flows from financing activitiesProceeds from issuance of commercial paper and other short-term borrowings13,838 12,991 7,661 Payments of commercial paper and other short-term borrowings(11,578)(13,663)(8,447)Proceeds from issuance of common stock537 196 320 Proceeds from issuance of long-term debt10,408 2,986 2,953 Payments of long-term debt(1,812)(1,731)(1,850)Repurchases of common stock(1,655)(3,715)(4,200)Cash dividends paid(2,902)(2,855)(2,719)Other3 28 (48)Net cash provided by (used for) financing activities6,839 (5,763)(6,330)Effect of foreign exchange rate changes on cash and cash equivalents(137)14 (183)Net increase (decrease) in cash and cash equivalents2,642 (1,702)(1,332)Cash and cash equivalents at beginning of period7,925 9,627 10,959 Cash and cash equivalents at end of period$10,567 $7,925 $9,627 The Notes to Consolidated Financial Statements are an integral part of this statement.55 Honeywell International Inc." - Reworded sentence: "55 Honeywell International Inc." **Prior (2024):** Years Ended December 31,202320222021 (Dollars in millions)Cash flows from operating activities Net income$5,672 $4,967 $5,610 Less: Net income attributable to noncontrolling interest14 1 68 Net income attributable to Honeywell5,658 4,966 5,542 Adjustments to reconcile net income attributable to Honeywell to net cash provided by operating activitiesDepreciation659 657 674 Amortization517 547 549 Gain on sale of non-strategic businesses and assets(5)(22)(102)Repositioning and other charges860 1,266 569 Net payments for repositioning and other charges(459)(512)(692)NARCO Buyout payment(1,325) - - Pension and other postretirement income(406)(510)(1,114)Pension and other postretirement benefit payments(38)(23)(43)Stock compensation expense202 188 217 Deferred income taxes153 (180)178 Other(837)(358)(28)Changes in assets and liabilities, net of the effects of acquisitions and divestituresAccounts receivable(42)(739)(8)Inventories(626)(440)(685)Other current assets17 232 (276)Accounts payable518 (155)744 Accrued liabilities494 357 513 Net cash provided by operating activities5,340 5,274 6,038 Cash flows from investing activitiesCapital expenditures(1,039)(766)(895)Proceeds from disposals of property, plant and equipment43 29 27 Increase in investments(560)(1,211)(2,373)Decrease in investments971 1,255 2,525 Receipts from Garrett Motion Inc. - 409 586 Receipts (payments) from settlements of derivative contracts6 369 192 Cash paid for acquisitions, net of cash acquired(718)(178)(1,326)Proceeds from sales of businesses, net of fees paid4 - 203 Net cash used for investing activities(1,293)(93)(1,061)Cash flows from financing activitiesProceeds from issuance of commercial paper and other short-term borrowings12,991 7,661 5,194 Payments of commercial paper and other short-term borrowings(13,663)(8,447)(5,190)Proceeds from issuance of common stock196 320 229 Proceeds from issuance of long-term debt2,986 2,953 2,517 Payments of long-term debt(1,731)(1,850)(4,917)Repurchases of common stock(3,715)(4,200)(3,380)Cash dividends paid(2,855)(2,719)(2,626)Other28 (48)(81)Net cash used for financing activities(5,763)(6,330)(8,254)Effect of foreign exchange rate changes on cash and cash equivalents14 (183)(39)Net decrease in cash and cash equivalents(1,702)(1,332)(3,316)Cash and cash equivalents at beginning of period9,627 10,959 14,275 Cash and cash equivalents at end of period$7,925 $9,627 $10,959 The Notes to Consolidated Financial Statements are an integral part of this statement.57 Honeywell International Inc. The Notes to Consolidated Financial Statements are an integral part of this statement.57 Honeywell International Inc. The Notes to Consolidated Financial Statements are an integral part of this statement. 57 Honeywell International Inc. TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTS **Current (2025):** CONSOLIDATED STATEMENT OF CASH FLOWS Years Ended December 31,202420232022 (Dollars in millions)Cash flows from operating activities Net income$5,740 $5,672 $4,967 Less: Net income attributable to noncontrolling interest35 14 1 Net income attributable to Honeywell5,705 5,658 4,966 Adjustments to reconcile net income attributable to Honeywell to net cash provided by operating activitiesDepreciation671 659 657 Amortization663 517 547 Loss (gain) on sale of non-strategic businesses and assets1 (5)(22)Impairment of assets held for sale219 - - Repositioning and other charges244 860 1,266 Net payments for repositioning and other charges(479)(459)(512)NARCO Buyout payment - (1,325) - Pension and other postretirement income(476)(406)(510)Pension and other postretirement benefit payments(32)(38)(23)Stock compensation expense194 202 188 Deferred income taxes(233)153 (180)Other(617)(837)(358)Changes in assets and liabilities, net of the effects of acquisitions and divestituresAccounts receivable(96)(42)(739)Inventories(304)(626)(440)Other current assets371 17 232 Accounts payable95 518 (155)Accrued liabilities171 494 357 Net cash provided by operating activities6,097 5,340 5,274 Cash flows from investing activitiesCapital expenditures(1,164)(1,039)(766)Proceeds from disposals of property, plant and equipment - 43 29 Increase in investments(1,077)(560)(1,211)Decrease in investments870 971 1,255 Receipts from Garrett Motion Inc. - - 409 Receipts from settlements of derivative contracts94 6 369 Cash paid for acquisitions, net of cash acquired(8,880)(718)(178)Proceeds from sales of businesses, net of fees paid - 4 - Net cash used for investing activities(10,157)(1,293)(93)Cash flows from financing activitiesProceeds from issuance of commercial paper and other short-term borrowings13,838 12,991 7,661 Payments of commercial paper and other short-term borrowings(11,578)(13,663)(8,447)Proceeds from issuance of common stock537 196 320 Proceeds from issuance of long-term debt10,408 2,986 2,953 Payments of long-term debt(1,812)(1,731)(1,850)Repurchases of common stock(1,655)(3,715)(4,200)Cash dividends paid(2,902)(2,855)(2,719)Other3 28 (48)Net cash provided by (used for) financing activities6,839 (5,763)(6,330)Effect of foreign exchange rate changes on cash and cash equivalents(137)14 (183)Net increase (decrease) in cash and cash equivalents2,642 (1,702)(1,332)Cash and cash equivalents at beginning of period7,925 9,627 10,959 Cash and cash equivalents at end of period$10,567 $7,925 $9,627 The Notes to Consolidated Financial Statements are an integral part of this statement.55 Honeywell International Inc. The Notes to Consolidated Financial Statements are an integral part of this statement.55 Honeywell International Inc. The Notes to Consolidated Financial Statements are an integral part of this statement. 55 Honeywell International Inc. TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTS --- ## Modified: (Dollars in tables in millions, except per share amounts) **Key changes:** - Reworded sentence: "OtherPostretirementBenefits20242023Change in benefit obligationBenefit obligation at beginning of year$116 $133 Service cost - - Interest cost5 6 Plan amendments - - Actuarial (gains) losses(7)3 Benefits paid(16)(26)Benefit obligation at end of year98 116 Change in plan assetsFair value of plan assets at beginning of year - - Actual return on plan assets - - Company contributions - - Benefits paid - - Fair value of plan assets at end of year - - Funded status of plans$(98)$(116)Amounts recognized in the Consolidated Balance Sheet consist ofAccrued liabilities$(11)$(12)Postretirement benefit obligations other than pensions1(87)(104)Net amount recognized$(98)$(116)1Excludes non-U.S." - Reworded sentence: "plan of $25 million and $30 million as of December 31, 2024, and 2023, respectively." **Prior (2024):** In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers. This ASU should be applied prospectively to acquisitions occurring on or after the effective date of December 15, 2022, and early adoption was permitted. The Company adopted this guidance on January 1, 2022. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by the transition away from reference rates expected to be discontinued to alternative reference rates. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, to expand the scope of this guidance to include derivatives. The guidance was effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into on or before December 31, 2022. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which extends the period of time entities can utilize the reference rate reform relief guidance under ASU 2020-04 from December 31, 2022, to December 31, 2024. The Company will apply the guidance to impacted transactions during the transition period. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. **Current (2025):** In September 2022, the FASB issued ASU 2022-04, Liabilities - Supplier Finance Programs (Topic 405): Disclosure of Supplier Finance Program Obligations, to enhance the transparency of supplier finance programs. The new standard requires annual disclosure of the key terms of the program, a description of where in the financial statements amounts outstanding under the program are presented, a rollforward of such amounts, and interim disclosure of amounts outstanding as of the end of each period. The guidance does not affect recognition, measurement, or financial statement presentation of supplier finance programs. The ASU was effective on January 1, 2023, except for the rollforward, which was effective on January 1, 2024. The Company adopted this guidance on January 1, 2023, with the exception of the rollforward adopted on January 1, 2024. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. --- ## Modified: (Dollars in tables in millions, except per share amounts) **Key changes:** - Reworded sentence: "Year Ended December 31, 2023Affected Line in the Consolidated Statement of OperationsNet SalesCost ofProducts SoldCost ofServices SoldSelling, General andAdministrative ExpensesOther(Income) ExpenseInterest and OtherFinancial ChargesTotalAmortization of pension and other postretirement benefit items Actuarial losses recognized$ - $ - $ - $ - $141 $ - $141 Prior service (credit) recognized - - - - (63) - (63)Losses (gains) on cash flow hedges(15)(28)(10)(10) - - (63)Total before tax$(15)$(28)$(10)$(10)$78 $ - $15 Tax expense (benefit)6 Total reclassifications for the period, net of tax$21 Cost of" **Prior (2024):** Year Ended December 31, 2023Affected Line in the Consolidated Statement of OperationsNet SalesCost ofProducts SoldCost ofServices SoldSelling, General andAdministrative ExpensesOther(Income) ExpenseInterest and OtherFinancial ChargesTotalAmortization of pension and other postretirement benefit items Actuarial losses recognized$ - $ - $ - $ - $141 $ - $141 Prior service (credit) recognized - - - - (63) - (63)Losses (gains) on cash flow hedges(15)(28)(10)(10) - - (63)Losses (gains) on excluded component of net investment hedges - - - - - - - Total before tax$(15)$(28)$(10)$(10)$78 $ - $15 Tax (expense) benefit6 Total reclassifications for the period, net of tax$21 Cost of **Current (2025):** In September 2022, the FASB issued ASU 2022-04, Liabilities - Supplier Finance Programs (Topic 405): Disclosure of Supplier Finance Program Obligations, to enhance the transparency of supplier finance programs. The new standard requires annual disclosure of the key terms of the program, a description of where in the financial statements amounts outstanding under the program are presented, a rollforward of such amounts, and interim disclosure of amounts outstanding as of the end of each period. The guidance does not affect recognition, measurement, or financial statement presentation of supplier finance programs. The ASU was effective on January 1, 2023, except for the rollforward, which was effective on January 1, 2024. The Company adopted this guidance on January 1, 2023, with the exception of the rollforward adopted on January 1, 2024. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. --- ## Modified: (Dollars in tables in millions, except per share amounts) **Key changes:** - Reworded sentence: "GEOGRAPHIC AREAS - FINANCIAL DATA Net Sales1Long-lived Assets2Years Ended December 31,Years Ended December 31, 202420232022202420232022United States$21,819 $20,907 $21,262 $4,694 $4,107 $3,949 Europe8,760 8,052 6,840 533 555 537 Other international7,919 7,703 7,364 967 998 985 Total3$38,498 $36,662 $35,466 $6,194 $5,660 $5,471 1Sales between geographic areas approximate market value and are not significant." - Reworded sentence: "Included in United States Net sales are export sales of $5,441 million, $4,708 million, and $4,187 million for the years ended December 31, 2024, 2023, and 2022, respectively.2Long-lived assets consists of Property, plant and equipment - net.3As of December 31, 2024, total long-lived assets excludes $155 million that are included in Assets held for sale in the Consolidated Balance Sheet." **Prior (2024):** In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers. This ASU should be applied prospectively to acquisitions occurring on or after the effective date of December 15, 2022, and early adoption was permitted. The Company adopted this guidance on January 1, 2022. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by the transition away from reference rates expected to be discontinued to alternative reference rates. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, to expand the scope of this guidance to include derivatives. The guidance was effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into on or before December 31, 2022. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which extends the period of time entities can utilize the reference rate reform relief guidance under ASU 2020-04 from December 31, 2022, to December 31, 2024. The Company will apply the guidance to impacted transactions during the transition period. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. **Current (2025):** In September 2022, the FASB issued ASU 2022-04, Liabilities - Supplier Finance Programs (Topic 405): Disclosure of Supplier Finance Program Obligations, to enhance the transparency of supplier finance programs. The new standard requires annual disclosure of the key terms of the program, a description of where in the financial statements amounts outstanding under the program are presented, a rollforward of such amounts, and interim disclosure of amounts outstanding as of the end of each period. The guidance does not affect recognition, measurement, or financial statement presentation of supplier finance programs. The ASU was effective on January 1, 2023, except for the rollforward, which was effective on January 1, 2024. The Company adopted this guidance on January 1, 2023, with the exception of the rollforward adopted on January 1, 2024. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. --- ## Modified: (Dollars in tables in millions, except per share amounts) **Key changes:** - Reworded sentence: "Year Ended December 31, 2022Aerospace TechnologiesIndustrial AutomationBuilding AutomationEnergy and Sustainability SolutionsCorporate and All OtherTotal HoneywellNet salesProducts$6,330 $9,439 $4,591 $5,600 $ - $25,960 Services5,497 2,199 1,409 396 5 9,506 Total Net sales11,827 11,638 6,000 5,996 5 35,466 LessCost of products and services sold7,183 7,230 3,250 3,673 Selling, general and administrative expenses430 1,417 910 426 Other segment items1967 839 376 342 Total Segment profit$3,247 $2,152 $1,464 $1,555 $(396)$8,022 Depreciation and amortization$285 $422 $92 $247 $158 $1,204 Capital expenditures246 77 74 291 78 766 1For each reportable segment, the other segment items category includes research and development expenses, equity income of affiliated companies and certain allocated overhead expenses, which are comprised of salaries and fringe benefits, professional & purchased services, and other indirect spend across core corporate functions such as central IT, corporate finance, human resources, supply chain, legal, government relations, and other corporate functions." - Reworded sentence: "Interest income1 Amortization of acquisition-related intangibles2 Stock compensation expense3 Pension ongoing income4 Pension mark-to-market expense4 Other postretirement income4 Repositioning and other charges5 Other expense6 Amounts included in Selling, general and administrative expenses." - Reworded sentence: "112 Honeywell International Inc." **Prior (2024):** In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers. This ASU should be applied prospectively to acquisitions occurring on or after the effective date of December 15, 2022, and early adoption was permitted. The Company adopted this guidance on January 1, 2022. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by the transition away from reference rates expected to be discontinued to alternative reference rates. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, to expand the scope of this guidance to include derivatives. The guidance was effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into on or before December 31, 2022. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which extends the period of time entities can utilize the reference rate reform relief guidance under ASU 2020-04 from December 31, 2022, to December 31, 2024. The Company will apply the guidance to impacted transactions during the transition period. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. **Current (2025):** In September 2022, the FASB issued ASU 2022-04, Liabilities - Supplier Finance Programs (Topic 405): Disclosure of Supplier Finance Program Obligations, to enhance the transparency of supplier finance programs. The new standard requires annual disclosure of the key terms of the program, a description of where in the financial statements amounts outstanding under the program are presented, a rollforward of such amounts, and interim disclosure of amounts outstanding as of the end of each period. The guidance does not affect recognition, measurement, or financial statement presentation of supplier finance programs. The ASU was effective on January 1, 2023, except for the rollforward, which was effective on January 1, 2024. The Company adopted this guidance on January 1, 2023, with the exception of the rollforward adopted on January 1, 2024. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. --- ## Modified: Financial Charges **Prior (2024):** 93 Honeywell International Inc. 93 Honeywell International Inc. 93 Honeywell International Inc. TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATAHONEYWELL INTERNATIONAL INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)(Dollars in tables in millions, except per share amounts) TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTS **Current (2025):** 93 Honeywell International Inc. 93 Honeywell International Inc. 93 Honeywell International Inc. TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATAHONEYWELL INTERNATIONAL INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)(Dollars in tables in millions, except per share amounts) TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTS --- ## Modified: DEFINITE-LIVED INTANGIBLE ASSETS **Key changes:** - Reworded sentence: "The Company recognizes definite-lived intangible asset balances in conjunction with business combinations, with amounts being recorded at their respective fair values upon the closing of a transaction." **Prior (2024):** Other intangible assets with definite lives consist of customer relationships, patents and technology, trademarks, and other intangibles and are amortized over their estimated useful lives, ranging from 2 to 20 years. **Current (2025):** The Company recognizes definite-lived intangible asset balances in conjunction with business combinations, with amounts being recorded at their respective fair values upon the closing of a transaction. Subsequent to the closing of a business combination, the Company evaluates and books adjustments, as applicable, to the preliminary amounts recorded over the relevant measurement period, which is not to exceed one year from the acquisition date. Definite-lived intangible assets consist of customer relationships, patents and technology, trademarks, and other intangibles and are amortized over their estimated useful lives, ranging from two to 20 years. two 58 Honeywell International Inc. 58 Honeywell International Inc. 58 Honeywell International Inc. TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATAHONEYWELL INTERNATIONAL INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)(Dollars in tables in millions, except per share amounts) TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTS --- ## Modified: CONSOLIDATED STATEMENT OF OPERATIONS **Key changes:** - Reworded sentence: "Years Ended December 31,202420232022(Dollars in millions,except per share amounts)Product sales$26,279 $25,773 $25,960 Service sales12,219 10,889 9,506 Net sales38,498 36,662 35,466 Costs, expenses and otherCost of products sold17,227 16,977 16,955 Cost of services sold6,609 6,018 5,392 Total Cost of products and services sold23,836 22,995 22,347 Research and development expenses1,536 1,456 1,478 Selling, general and administrative expenses5,466 5,127 5,214 Impairment of assets held for sale219 - - Other (income) expense(830)(840)(366)Interest and other financial charges1,058 765 414 Total costs, expenses and other31,285 29,503 29,087 Income before taxes7,213 7,159 6,379 Tax expense1,473 1,487 1,412 Net income5,740 5,672 4,967 Less: Net income attributable to noncontrolling interest35 14 1 Net income attributable to Honeywell$5,705 $5,658 $4,966 Earnings per share of common stock - basic$8.76 $8.53 $7.33 Earnings per share of common stock - assuming dilution$8.71 $8.47 $7.27 The Notes to Consolidated Financial Statements are an integral part of this statement.52 Honeywell International Inc." - Reworded sentence: "52 Honeywell International Inc." **Prior (2024):** Years Ended December 31,202320222021(Dollars in millions,except per share amounts)Product sales$25,773 $25,960 $25,643 Service sales10,889 9,506 8,749 Net sales36,662 35,466 34,392 Costs, expenses and otherCost of products sold16,977 16,955 17,082 Cost of services sold6,018 5,392 4,979 Total Cost of products and services sold22,995 22,347 22,061 Research and development expenses1,456 1,478 1,333 Selling, general and administrative expenses5,127 5,214 4,798 Other (income) expense(840)(366)(1,378)Interest and other financial charges765 414 343 Total costs, expenses and other29,503 29,087 27,157 Income before taxes7,159 6,379 7,235 Tax expense1,487 1,412 1,625 Net income5,672 4,967 5,610 Less: Net income attributable to noncontrolling interest14 1 68 Net income attributable to Honeywell$5,658 $4,966 $5,542 Earnings per share of common stock - basic$8.53 $7.33 $8.01 Earnings per share of common stock - assuming dilution$8.47 $7.27 $7.91 The Notes to Consolidated Financial Statements are an integral part of this statement.54 Honeywell International Inc. The Notes to Consolidated Financial Statements are an integral part of this statement.54 Honeywell International Inc. The Notes to Consolidated Financial Statements are an integral part of this statement. 54 Honeywell International Inc. TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTS **Current (2025):** Years Ended December 31,202420232022(Dollars in millions,except per share amounts)Product sales$26,279 $25,773 $25,960 Service sales12,219 10,889 9,506 Net sales38,498 36,662 35,466 Costs, expenses and otherCost of products sold17,227 16,977 16,955 Cost of services sold6,609 6,018 5,392 Total Cost of products and services sold23,836 22,995 22,347 Research and development expenses1,536 1,456 1,478 Selling, general and administrative expenses5,466 5,127 5,214 Impairment of assets held for sale219 - - Other (income) expense(830)(840)(366)Interest and other financial charges1,058 765 414 Total costs, expenses and other31,285 29,503 29,087 Income before taxes7,213 7,159 6,379 Tax expense1,473 1,487 1,412 Net income5,740 5,672 4,967 Less: Net income attributable to noncontrolling interest35 14 1 Net income attributable to Honeywell$5,705 $5,658 $4,966 Earnings per share of common stock - basic$8.76 $8.53 $7.33 Earnings per share of common stock - assuming dilution$8.71 $8.47 $7.27 The Notes to Consolidated Financial Statements are an integral part of this statement.52 Honeywell International Inc. The Notes to Consolidated Financial Statements are an integral part of this statement.52 Honeywell International Inc. The Notes to Consolidated Financial Statements are an integral part of this statement. 52 Honeywell International Inc. TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTS --- ## Modified: (Dollars in tables in millions, except per share amounts) **Key changes:** - Reworded sentence: "The following table summarizes information about stock option activity for the three years ended December 31, 2024: Number ofOptions (in millions)Weighted AverageExercise PriceOutstanding at December 31, 202115.9 $135.31 Granted2.1 189.53 Exercised(3.0)103.89 Lapsed or canceled(0.9)186.35 Outstanding at December 31, 202214.1 147.14 Granted1.6 195.27 Exercised(1.7)123.12 Lapsed or canceled(0.6)192.22 Outstanding at December 31, 202313.4 153.86 Granted1.6 198.20 Exercised(4.2)125.30 Lapsed or canceled(0.4)195.71 Outstanding at December 31, 202410.4 $170.29 Vested and expected to vest at December 31, 202419.5 $168.07 Exercisable at December 31, 20246.9 $157.58 1Represents the sum of vested options of 6.9 million and expected to vest options of 2.6 million." **Prior (2024):** In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers. This ASU should be applied prospectively to acquisitions occurring on or after the effective date of December 15, 2022, and early adoption was permitted. The Company adopted this guidance on January 1, 2022. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by the transition away from reference rates expected to be discontinued to alternative reference rates. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, to expand the scope of this guidance to include derivatives. The guidance was effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into on or before December 31, 2022. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which extends the period of time entities can utilize the reference rate reform relief guidance under ASU 2020-04 from December 31, 2022, to December 31, 2024. The Company will apply the guidance to impacted transactions during the transition period. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. **Current (2025):** In September 2022, the FASB issued ASU 2022-04, Liabilities - Supplier Finance Programs (Topic 405): Disclosure of Supplier Finance Program Obligations, to enhance the transparency of supplier finance programs. The new standard requires annual disclosure of the key terms of the program, a description of where in the financial statements amounts outstanding under the program are presented, a rollforward of such amounts, and interim disclosure of amounts outstanding as of the end of each period. The guidance does not affect recognition, measurement, or financial statement presentation of supplier finance programs. The ASU was effective on January 1, 2023, except for the rollforward, which was effective on January 1, 2024. The Company adopted this guidance on January 1, 2023, with the exception of the rollforward adopted on January 1, 2024. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. --- ## Modified: (Dollars in tables in millions, except per share amounts) **Key changes:** - Reworded sentence: "SCADAfence On August 25, 2023, the Company acquired 100% of the outstanding equity interests of SCADAfence, a provider of operational technology and Internet of Things cybersecurity solutions for monitoring large scale networks, for total consideration of $52 million, net of cash acquired." **Prior (2024):** On December 8, 2023, the Company agreed to acquire Carrier Global Corporation's Global Access Solutions business in an all-cash transaction for $5.0 billion. The transaction is subject to regulatory review and approval and customary closing conditions. The transaction is expected to close by the end of the third quarter of 2024 and the business will be reported within the Honeywell Building Technologies reportable business segment. On August 25, 2023, the Company acquired 100% of the outstanding equity interests of SCADAfence, a provider of operational technology and Internet of Things cybersecurity solutions for monitoring large scale networks, for total consideration of $52 million, net of cash acquired. The business is included in the Performance Materials and Technologies reportable business segment. The assets and liabilities acquired with SCADAfence are included in the Consolidated Balance Sheet as of December 31, 2023, including $17 million of intangible assets and $42 million of goodwill, which is not deductible for tax purposes. The purchase accounting is subject to final adjustment, primarily for the value of intangible assets, amounts allocated to goodwill, and tax balances. On June 30, 2023, the Company acquired 100% of the outstanding equity interests of Compressor Controls Corporation, a turbomachinery services and controls company based in the United States, for total cash consideration of $673 million, net of cash acquired. The business is included in the Performance Materials and Technologies reportable business segment. The assets and liabilities acquired with Compressor Controls Corporation are included in the Consolidated Balance Sheet as of December 31, 2023, including $282 million of intangible assets and $350 million allocated to goodwill, which is deductible for tax purposes. The identifiable intangible assets primarily include customer relationships amortized over an estimated life of 15 years using an excess earnings amortization method. The purchase accounting is subject to final adjustment, primarily for the valuation of intangible assets, amounts allocated to goodwill, and tax balances. On January 18, 2022, the Company acquired 100% of the issued and outstanding shares of US Digital Designs, Inc., a leading provider of technologies for first responders, for total consideration of $186 million. The business is included within the Honeywell Building Technologies reportable business segment. The Company finalized the evaluation for the fair value of all the assets and liabilities acquired with US Digital Designs, Inc. during the first quarter of 2023. Management recorded intangible assets of $53 million and allocated $129 million to goodwill, which is deductible for tax purposes. 64 Honeywell International Inc. 64 Honeywell International Inc. 64 Honeywell International Inc. TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATAHONEYWELL INTERNATIONAL INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)(Dollars in tables in millions, except per share amounts) TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTS **Current (2025):** In September 2022, the FASB issued ASU 2022-04, Liabilities - Supplier Finance Programs (Topic 405): Disclosure of Supplier Finance Program Obligations, to enhance the transparency of supplier finance programs. The new standard requires annual disclosure of the key terms of the program, a description of where in the financial statements amounts outstanding under the program are presented, a rollforward of such amounts, and interim disclosure of amounts outstanding as of the end of each period. The guidance does not affect recognition, measurement, or financial statement presentation of supplier finance programs. The ASU was effective on January 1, 2023, except for the rollforward, which was effective on January 1, 2024. The Company adopted this guidance on January 1, 2023, with the exception of the rollforward adopted on January 1, 2024. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. --- ## Modified: Vested and expected to vest at December 31, 20241 **Key changes:** - Reworded sentence: "Represents the sum of vested options of 6.9 million and expected to vest options of 2.6 million." **Prior (2024):** Represents the sum of vested options of 9.6 million and expected to vest options of 2.8 million. Expected to vest options are derived by applying the pre-vesting forfeiture rate assumption to total outstanding unvested options of 3.8 million. 89 Honeywell International Inc. 89 Honeywell International Inc. 89 Honeywell International Inc. TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATAHONEYWELL INTERNATIONAL INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)(Dollars in tables in millions, except per share amounts) TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTS **Current (2025):** Represents the sum of vested options of 6.9 million and expected to vest options of 2.6 million. Expected to vest options are derived by applying the pre-vesting forfeiture rate assumption to total outstanding unvested options of 3.4 million. The following table summarizes information about stock options outstanding and exercisable as of December 31, 2024: Range of Exercise PricesOptions OutstandingOptions ExercisableNumberOutstanding (in millions)WeightedAverage Life1WeightedAverageExercisePrice Per ShareAggregateIntrinsicValueNumberExercisable (in millions)WeightedAverageExercisePrice Per ShareAggregateIntrinsicValue$90.00 -$99.99 0.9 1.13$98.70 $110 0.9 $98.70 $110 $100.00 -$134.99 1.2 2.23120.13 127 1.2 120.13 127 $135.00 -$189.99 4.4 4.94172.11 236 3.7 168.81 227 $190.00 -$232.60 3.9 7.74199.48 103 1.1 202.44 80 10.4 5.36$170.29 $576 6.9 $157.58 $544 1Average remaining contractual life in years. Weighted --- ## Modified: Year ended December 31, 2024 **Key changes:** - Reworded sentence: "Net cash provided by operating activities was largely driven by Net income." **Prior (2024):** Net cash provided by operating activities was $5,340 million, driven by $5,658 million of Net income attributable to Honeywell, adjusted for $1,176 million of depreciation and amortization, and a $518 million increase from Accounts payable, due to increased material receipts and lower disbursements, partially offset by the $1,325 million payment pursuant to the NARCO Amended Buyout Agreement and a $626 million increase in Inventories, due to increased purchases. Net cash used for investing activities was $1,293 million, driven by $1,039 million of capital expenditures and $718 million cash paid for acquisitions, partially offset by a $411 million net decrease in investments. Net cash used for financing activities was $5,763 million, driven by $3,715 million of repurchases of common stock, $2,855 million of cash dividends paid, and $1,731 million of payments of long-term debt, partially offset by $2,986 million of proceeds from issuance of long-term debt. **Current (2025):** Net cash provided by operating activities was largely driven by Net income. Net cash used for investing activities was driven by $8,880 million of cash paid for acquisitions and $1,164 million of capital expenditures. Net cash provided by financing activities was driven by $10,408 million of long-term debt proceeds and $2,260 million of net proceeds of commercial paper, partially offset by $2,902 million of cash dividends paid, $1,812 million of repayments of long-term debt, and $1,655 million of repurchases of common stock. --- ## Modified: Carrying Amountof Hedged ItemCumulative Amount ofFair Value Hedging AdjustmentIncluded in the CarryingAmount of Hedged ItemDecember 31, 2024December 31, 2023December 31, 2024December 31, 2023Long-term debt$3,763 $4,551 $(136)$(166) **Key changes:** - Reworded sentence: "Long-term debt Long-term debt The following tables summarize the location and impact to the Consolidated Statement of Operations related to derivative instruments: Year Ended December 31, 2024Net SalesCost ofProducts SoldCost ofServices SoldSelling, General andAdministrative ExpensesOther(Income) ExpenseInterest and OtherFinancial Charges$38,498 $17,227 $6,609 $5,466 $(830)$1,058 Gain (loss) on cash flow hedgesForeign currency exchange contractsAmount reclassified from accumulated other comprehensive loss into income2 8 3 4 - - Gain (loss) on fair value hedgesInterest rate swap agreementsHedged items - - - - - (30)Derivatives designated as hedges - - - - - 30 Gain (loss) on derivatives not designated as hedging instrumentsForeign currency exchange contracts - - - - 105 - " **Prior (2024):** Long-term debt Long-term debt 83 Honeywell International Inc. 83 Honeywell International Inc. 83 Honeywell International Inc. TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATAHONEYWELL INTERNATIONAL INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)(Dollars in tables in millions, except per share amounts) TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTS **Current (2025):** Long-term debt Long-term debt The following tables summarize the location and impact to the Consolidated Statement of Operations related to derivative instruments: Year Ended December 31, 2024Net SalesCost ofProducts SoldCost ofServices SoldSelling, General andAdministrative ExpensesOther(Income) ExpenseInterest and OtherFinancial Charges$38,498 $17,227 $6,609 $5,466 $(830)$1,058 Gain (loss) on cash flow hedgesForeign currency exchange contractsAmount reclassified from accumulated other comprehensive loss into income2 8 3 4 - - Gain (loss) on fair value hedgesInterest rate swap agreementsHedged items - - - - - (30)Derivatives designated as hedges - - - - - 30 Gain (loss) on derivatives not designated as hedging instrumentsForeign currency exchange contracts - - - - 105 - --- ## Modified: (Dollars in tables in millions, except per share amounts) **Key changes:** - Reworded sentence: "The following table sets forth the amounts recorded in the Consolidated Balance Sheet related to cumulative basis adjustments for fair value hedges:" **Prior (2024):** In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers. This ASU should be applied prospectively to acquisitions occurring on or after the effective date of December 15, 2022, and early adoption was permitted. The Company adopted this guidance on January 1, 2022. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by the transition away from reference rates expected to be discontinued to alternative reference rates. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, to expand the scope of this guidance to include derivatives. The guidance was effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into on or before December 31, 2022. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which extends the period of time entities can utilize the reference rate reform relief guidance under ASU 2020-04 from December 31, 2022, to December 31, 2024. The Company will apply the guidance to impacted transactions during the transition period. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. **Current (2025):** In September 2022, the FASB issued ASU 2022-04, Liabilities - Supplier Finance Programs (Topic 405): Disclosure of Supplier Finance Program Obligations, to enhance the transparency of supplier finance programs. The new standard requires annual disclosure of the key terms of the program, a description of where in the financial statements amounts outstanding under the program are presented, a rollforward of such amounts, and interim disclosure of amounts outstanding as of the end of each period. The guidance does not affect recognition, measurement, or financial statement presentation of supplier finance programs. The ASU was effective on January 1, 2023, except for the rollforward, which was effective on January 1, 2024. The Company adopted this guidance on January 1, 2023, with the exception of the rollforward adopted on January 1, 2024. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. --- ## Modified: (Dollars in tables in millions, except per share amounts) **Key changes:** - Reworded sentence: "Industrial Automation - A global provider of industrial automation solutions that deliver intelligent, sustainable, and secure operations for customers in refining/petrochemicals, life sciences, utilities, and warehouse and logistics segments." - Reworded sentence: "The disaggregation of the Company's revenue based off timing of recognition is as follows: Years Ended December 31, 202420232022Products, transferred point in time57 %58 %59 %Products, transferred over time11 12 14 Net product sales68 70 73 Services, transferred point in time4 10 8 Services, transferred over time28 20 19 Net service sales32 30 27 Net sales100 %100 %100 %" **Prior (2024):** In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers. This ASU should be applied prospectively to acquisitions occurring on or after the effective date of December 15, 2022, and early adoption was permitted. The Company adopted this guidance on January 1, 2022. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by the transition away from reference rates expected to be discontinued to alternative reference rates. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, to expand the scope of this guidance to include derivatives. The guidance was effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into on or before December 31, 2022. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which extends the period of time entities can utilize the reference rate reform relief guidance under ASU 2020-04 from December 31, 2022, to December 31, 2024. The Company will apply the guidance to impacted transactions during the transition period. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. **Current (2025):** In September 2022, the FASB issued ASU 2022-04, Liabilities - Supplier Finance Programs (Topic 405): Disclosure of Supplier Finance Program Obligations, to enhance the transparency of supplier finance programs. The new standard requires annual disclosure of the key terms of the program, a description of where in the financial statements amounts outstanding under the program are presented, a rollforward of such amounts, and interim disclosure of amounts outstanding as of the end of each period. The guidance does not affect recognition, measurement, or financial statement presentation of supplier finance programs. The ASU was effective on January 1, 2023, except for the rollforward, which was effective on January 1, 2024. The Company adopted this guidance on January 1, 2023, with the exception of the rollforward adopted on January 1, 2024. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. --- ## Modified: CONSOLIDATED BALANCE SHEET **Key changes:** - Reworded sentence: "December 31,20242023 (Dollars in millions)ASSETS Current assets Cash and cash equivalents$10,567 $7,925 Short-term investments386 170 Accounts receivable, less allowances of $314 and $323, respectively7,819 7,530 Inventories6,442 6,178 Assets held for sale1,365 - Other current assets1,329 1,699 Total current assets27,908 23,502 Investments and long-term receivables1,394 939 Property, plant and equipment - net6,194 5,660 Goodwill21,825 18,049 Other intangible assets - net6,656 3,231 Insurance recoveries for asbestos-related liabilities171 170 Deferred income taxes238 392 Other assets10,810 9,582 Total assets$75,196 $61,525 LIABILITIESCurrent liabilitiesAccounts payable$6,880 $6,849 Commercial paper and other short-term borrowings4,273 2,085 Current maturities of long-term debt1,347 1,796 Accrued liabilities8,348 7,809 Liabilities held for sale408 - Total current liabilities21,256 18,539 Long-term debt25,479 16,562 Deferred income taxes1,787 2,094 Postretirement benefit obligations other than pensions112 134 Asbestos-related liabilities1,325 1,490 Other liabilities6,076 6,265 Redeemable noncontrolling interest7 7 SHAREOWNERS' EQUITYCapital - common stock issued958 958 - additional paid-in capital9,695 9,062 Common stock held in treasury, at cost(39,378)(38,008)Accumulated other comprehensive loss(3,491)(4,135)Retained earnings50,835 47,979 Total Honeywell shareowners' equity18,619 15,856 Noncontrolling interest535 578 Total shareowners' equity19,154 16,434 Total liabilities, redeemable noncontrolling interest and shareowners' equity$75,196 $61,525 Accounts receivable, less allowances of $314 and $323, respectively The Notes to Consolidated Financial Statements are an integral part of this statement.54 Honeywell International Inc." - Reworded sentence: "54 Honeywell International Inc." **Prior (2024):** December 31,20232022 (Dollars in millions)ASSETS Current assets Cash and cash equivalents$7,925 $9,627 Short-term investments170 483 Accounts receivable, less allowances of $323 and $326, respectively7,530 7,440 Inventories6,178 5,538 Other current assets1,699 1,894 Total current assets23,502 24,982 Investments and long-term receivables939 945 Property, plant and equipment - net5,660 5,471 Goodwill18,049 17,497 Other intangible assets - net3,231 3,222 Insurance recoveries for asbestos-related liabilities170 224 Deferred income taxes392 421 Other assets9,582 9,513 Total assets$61,525 $62,275 LIABILITIESCurrent liabilitiesAccounts payable$6,849 $6,329 Commercial paper and other short-term borrowings2,085 2,717 Current maturities of long-term debt1,796 1,730 Accrued liabilities7,809 9,162 Total current liabilities18,539 19,938 Long-term debt16,562 15,123 Deferred income taxes2,094 2,093 Postretirement benefit obligations other than pensions134 146 Asbestos-related liabilities1,490 1,180 Other liabilities6,265 6,469 Redeemable noncontrolling interest7 7 SHAREOWNERS' EQUITYCapital - common stock issued958 958 - additional paid-in capital9,062 8,564 Common stock held in treasury, at cost(38,008)(34,443)Accumulated other comprehensive income (loss)(4,135)(3,475)Retained earnings47,979 45,093 Total Honeywell shareowners' equity15,856 16,697 Noncontrolling interest578 622 Total shareowners' equity16,434 17,319 Total liabilities, redeemable noncontrolling interest and shareowners' equity$61,525 $62,275 Accounts receivable, less allowances of $323 and $326, respectively The Notes to Consolidated Financial Statements are an integral part of this statement.56 Honeywell International Inc. The Notes to Consolidated Financial Statements are an integral part of this statement.56 Honeywell International Inc. The Notes to Consolidated Financial Statements are an integral part of this statement. 56 Honeywell International Inc. TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTS **Current (2025):** December 31,20242023 (Dollars in millions)ASSETS Current assets Cash and cash equivalents$10,567 $7,925 Short-term investments386 170 Accounts receivable, less allowances of $314 and $323, respectively7,819 7,530 Inventories6,442 6,178 Assets held for sale1,365 - Other current assets1,329 1,699 Total current assets27,908 23,502 Investments and long-term receivables1,394 939 Property, plant and equipment - net6,194 5,660 Goodwill21,825 18,049 Other intangible assets - net6,656 3,231 Insurance recoveries for asbestos-related liabilities171 170 Deferred income taxes238 392 Other assets10,810 9,582 Total assets$75,196 $61,525 LIABILITIESCurrent liabilitiesAccounts payable$6,880 $6,849 Commercial paper and other short-term borrowings4,273 2,085 Current maturities of long-term debt1,347 1,796 Accrued liabilities8,348 7,809 Liabilities held for sale408 - Total current liabilities21,256 18,539 Long-term debt25,479 16,562 Deferred income taxes1,787 2,094 Postretirement benefit obligations other than pensions112 134 Asbestos-related liabilities1,325 1,490 Other liabilities6,076 6,265 Redeemable noncontrolling interest7 7 SHAREOWNERS' EQUITYCapital - common stock issued958 958 - additional paid-in capital9,695 9,062 Common stock held in treasury, at cost(39,378)(38,008)Accumulated other comprehensive loss(3,491)(4,135)Retained earnings50,835 47,979 Total Honeywell shareowners' equity18,619 15,856 Noncontrolling interest535 578 Total shareowners' equity19,154 16,434 Total liabilities, redeemable noncontrolling interest and shareowners' equity$75,196 $61,525 Accounts receivable, less allowances of $314 and $323, respectively The Notes to Consolidated Financial Statements are an integral part of this statement.54 Honeywell International Inc. The Notes to Consolidated Financial Statements are an integral part of this statement.54 Honeywell International Inc. The Notes to Consolidated Financial Statements are an integral part of this statement. 54 Honeywell International Inc. TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTS --- ## Modified: Comparison of Cumulative Five-Year Total Return **Key changes:** - Reworded sentence: "2024Honeywell$100.00 $122.97 $122.61 $128.62 $128.65 $141.53 S&P 500 Index100.00 118.40 152.39 124.79 157.59 197.02 Composite Index100.00 98.42 107.10 110.52 128.63 163.77 XLI Index100.00 110.91 134.29 126.81 149.80 175.73 50 Honeywell International Inc." **Prior (2024):** Dec. 2018Dec. 2019Dec. 2020Dec. 2021Dec. 2022Dec. 2023Honeywell100 136.70 168.10 167.60 175.82 175.85 S&P 500 Index100 131.49 155.68 200.37 164.08 207.21 Composite Index100 127.46 125.45 136.51 140.88 163.96 XLI Index100 129.08 143.16 173.34 163.69 193.36 52 Honeywell International Inc. 52 Honeywell International Inc. 52 Honeywell International Inc. TABLE OF CONTENTS TABLE OF CONTENTS TABLE OF CONTENTS **Current (2025):** Dec. 2019Dec. 2020Dec. 2021Dec. 2022Dec. 2023Dec. 2024Honeywell$100.00 $122.97 $122.61 $128.62 $128.65 $141.53 S&P 500 Index100.00 118.40 152.39 124.79 157.59 197.02 Composite Index100.00 98.42 107.10 110.52 128.63 163.77 XLI Index100.00 110.91 134.29 126.81 149.80 175.73 50 Honeywell International Inc. 50 Honeywell International Inc. 50 Honeywell International Inc. TABLE OF CONTENTS TABLE OF CONTENTS TABLE OF CONTENTS --- ## Modified: Revolving Credit Agreements **Key changes:** - Reworded sentence: "On July 2, 2024, the Company entered into a $1.5 billion second 364-day credit agreement (the Second 364-day Credit Agreement)." - Reworded sentence: "one five A portion of the Company's real estate leases are generally subject to annual changes in the Consumer Price Index (CPI)." - Reworded sentence: "The variable lease payments for such automobile leases are based on actual mileage incurred at the stated contractual rate and recognized in the period in which the obligation for those payments are incurred." **Prior (2024):** In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers. This ASU should be applied prospectively to acquisitions occurring on or after the effective date of December 15, 2022, and early adoption was permitted. The Company adopted this guidance on January 1, 2022. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by the transition away from reference rates expected to be discontinued to alternative reference rates. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, to expand the scope of this guidance to include derivatives. The guidance was effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into on or before December 31, 2022. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which extends the period of time entities can utilize the reference rate reform relief guidance under ASU 2020-04 from December 31, 2022, to December 31, 2024. The Company will apply the guidance to impacted transactions during the transition period. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. **Current (2025):** 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 Five-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 Five-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 Five-Year Credit Agreement can be increased pursuant to the terms of the Five-Year Credit Agreement to an aggregate amount not to exceed $4.5 billion. The 364-Day Credit Agreement and Five-Year Credit Agreement are maintained for general corporate purposes. As of December 31, 2024, there were no outstanding borrowings under the 364-Day Credit Agreement or Five-Year Credit Agreement. NOTE 10. LEASES A significant portion of the Company's operating and finance lease portfolio includes corporate offices, research and development facilities, manufacturing sites, IT equipment, and automobiles. The majority of the Company's leases have remaining lease terms of one year to 20 years, some of which include options to extend the leases for five years or more. Operating lease ROU assets are included in Other assets. The current portion of operating lease liabilities are included in Accrued liabilities, and the non-current portion of operating lease liabilities are included in Other liabilities in the Consolidated Balance Sheet. Finance lease ROU assets are included in Property, plant and equipment - net. The current portion of finance lease liabilities are included in Current maturities of long-term debt, and the non-current portion of finance lease liabilities are included in Long-term debt in the Consolidated Balance Sheet. one five A portion of the Company's real estate leases are generally subject to annual changes in the Consumer Price Index (CPI). The changes to the CPI are treated as variable lease payments and recognized in the period in which the obligation for those payments was incurred. In addition, a subset of the Company's automobile leases are considered variable. The variable lease payments for such automobile leases are based on actual mileage incurred at the stated contractual rate and recognized in the period in which the obligation for those payments are incurred. Years Ended December 31, 202420232022Operating lease cost$267 $239 $224 Variable lease cost7 4 8 Short-term lease cost2 13 18 Finance lease costAmortization of right-of-use assets93 74 72 Interest on lease liability15 19 21 Total finance lease cost108 93 93 Total lease cost$384 $349 $343 80 Honeywell International Inc. 80 Honeywell International Inc. 80 Honeywell International Inc. TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATAHONEYWELL INTERNATIONAL INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)(Dollars in tables in millions, except per share amounts) TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTS --- ## Modified: TAX EXPENSE **Key changes:** - Reworded sentence: "Tax expense consists of: Years Ended December 31,202420232022Current U.S." **Prior (2024):** Tax expense (benefit) consists of: Years Ended December 31,202320222021Current U.S. Federal$176 $653 $415 U.S. State60 124 146 Non-U.S.1,098 815 886 Total current tax expense (benefit)1,334 1,592 1,447 DeferredU.S. Federal27 (175)173 U.S. State11 (36)37 Non-U.S.115 32 (32)Total deferred tax expense (benefit)153 (180)178 Total Tax expense$1,487 $1,412 $1,625 **Current (2025):** Tax expense consists of: Years Ended December 31,202420232022Current U.S. Federal$606 $176 $653 U.S. State88 60 124 Non-U.S.1,012 1,098 815 Total current tax expense1,706 1,334 1,592 DeferredU.S. Federal(210)27 (175)U.S. State(25)11 (36)Non-U.S.2 115 32 Total deferred tax (benefit) expense(233)153 (180)Total Tax expense$1,473 $1,487 $1,412 --- ## Modified: Operating Leases **Key changes:** - Reworded sentence: "DERIVATIVE INSTRUMENTS AND HEDGING TRANSACTIONS" **Prior (2024):** 81 Honeywell International Inc. 81 Honeywell International Inc. 81 Honeywell International Inc. TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATAHONEYWELL INTERNATIONAL INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)(Dollars in tables in millions, except per share amounts) TABLE OF CONTENTSFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA TABLE OF CONTENTS **Current (2025):** NOTE 11. DERIVATIVE INSTRUMENTS AND HEDGING TRANSACTIONS --- ## Modified: (Dollars in tables in millions, except per share amounts) **Key changes:** - Reworded sentence: "EARNINGS PER SHARE The details of the earnings per share calculations for the years ended December 31, 2024, 2023, and 2022, are as follows (shares in millions): BasicYears Ended December 31,202420232022Net income attributable to Honeywell$5,705 $5,658 $4,966 Weighted average shares outstanding650.9 663.0 677.1 Earnings per share of common stock - basic$8.76 $8.53 $7.33 Assuming DilutionYears Ended December 31,202420232022Net income attributable to Honeywell$5,705 $5,658 $4,966 Average sharesWeighted average shares outstanding650.9 663.0 677.1 Dilutive securities issuable - stock plans4.4 5.2 6.0 Total weighted average diluted shares outstanding655.3 668.2 683.1 Earnings per share of common stock - assuming dilution$8.71 $8.47 $7.27 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." **Prior (2024):** In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers. This ASU should be applied prospectively to acquisitions occurring on or after the effective date of December 15, 2022, and early adoption was permitted. The Company adopted this guidance on January 1, 2022. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by the transition away from reference rates expected to be discontinued to alternative reference rates. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, to expand the scope of this guidance to include derivatives. The guidance was effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into on or before December 31, 2022. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which extends the period of time entities can utilize the reference rate reform relief guidance under ASU 2020-04 from December 31, 2022, to December 31, 2024. The Company will apply the guidance to impacted transactions during the transition period. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. **Current (2025):** In September 2022, the FASB issued ASU 2022-04, Liabilities - Supplier Finance Programs (Topic 405): Disclosure of Supplier Finance Program Obligations, to enhance the transparency of supplier finance programs. The new standard requires annual disclosure of the key terms of the program, a description of where in the financial statements amounts outstanding under the program are presented, a rollforward of such amounts, and interim disclosure of amounts outstanding as of the end of each period. The guidance does not affect recognition, measurement, or financial statement presentation of supplier finance programs. The ASU was effective on January 1, 2023, except for the rollforward, which was effective on January 1, 2024. The Company adopted this guidance on January 1, 2023, with the exception of the rollforward adopted on January 1, 2024. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements. --- *Data sourced from SEC EDGAR. Last updated 2026-06-01.*