SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

Form 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

DATE OF REPORT – October 19, 2018

(Date of earliest event reported)

 

honeywell international inc.

(Exact name of Registrant as specified in its Charter)

 

DELAWARE (State or other jurisdiction of incorporation)

1-8974 (Commission File Number)

22-2640650 (I.R.S. Employer Identification Number)

 

115 TABOR ROAD, MORRIS PLAINS, NEW JERSEY	07950-2546
(Address of principal executive offices)	(Zip Code)

 

Registrant’s telephone number, including area code: (973) 455-2000

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

o	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). o

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o 

 

ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

 

In the third quarter of 2018, Honeywell International Inc. (the “Company”) revised its accounting to correct the time period associated with the determination of appropriate accruals for the legacy Bendix asbestos-related liability for unasserted claims. The prior accounting treatment applied a five-year time horizon; the revised treatment reflects the full term of epidemiological projections through 2059. Previously issued financial statements have been revised for this correction.

 

On January 1, 2018, we retrospectively adopted the new accounting guidance on presentation of net periodic pension costs. Following the adoption of this standard, we continue to record the service cost component of Pension ongoing (income) expense in Cost of products and service sold and Selling, general and administrative expenses. The remaining components of net benefit costs within pension ongoing (income) expense, primarily interest costs and assumed return on plan assets, are now recorded in Other (income) expense. Prior year amounts have been reclassified to conform to the current year presentation.

 

The impact of the above revision and retrospective adoption on the Company’s previously reported consolidated balance sheets and consolidated statement of operations are presented in Exhibit 99 filed herewith.

 

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.

 

(d)	Exhibit 99 Honeywell International Inc. – Historical financial statements

 

SIGNATURE

 

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

 

Date:  October 19, 2018	HONEYWELL INTERNATIONAL INC.
	By: /s/ Anne T. Madden
	Anne T. Madden
	Senior Vice President, General Counsel and Corporate Secretary

Exhibit 99

 

Honeywell International Inc.

Consolidated Statement of Operations

(Unaudited)

 

		Year Ended December 31, 2017
		(Dollars in millions, except per share amounts)
		As Reported				Adjustments				As Revised
Product sales		$	32,317			$	-			$	32,317
Service sales			8,217				-				8,217
Net sales			40,534				-				40,534
Costs, expenses and other
Costs of products sold			22,659				517				23,176
Costs of services sold			4,916				52				4,968
			27,575				569				28,144
Selling, general and administrative expenses			5,808				279				6,087
Other (income) expense			(67	)			(896	)			(963	)
Interest and other financial charges			316				-				316
			33,632				(48	)			33,584
Income before taxes			6,902				48				6,950
Tax expense			5,204				158				5,362
Net income			1,698				(110	)			1,588
Less: Net income attributable to noncontrolling interest			43				-				43
Net income attributable to Honeywell		$	1,655			$	(110	)		$	1,545
Earnings per share of common stock-basic		$	2.17			$	(0.14	)		$	2.03
Earnings per share of common stock-assuming dilution		$	2.14			$	(0.14	)		$	2.00

Honeywell International Inc.

Consolidated Statement of Operations

(Unaudited)

 

		Year Ended December 31, 2016
		(Dollars in millions, except per share amounts)
		As Reported				Adjustments				As Revised
Product sales		$	31,362			$	-			$	31,362
Service sales			7,940				-				7,940
Net sales			39,302				-				39,302
Costs, expenses and other
Costs of products sold			22,170				442				22,612
Costs of services sold			4,980				85				5,065
			27,150				527				27,677
Selling, general and administrative expenses			5,469				105				5,574
Other (income) expense			(102	)			(637	)			(739	)
Interest and other financial charges			338				-				338
			32,855				(5	)			32,850
Income before taxes			6,447				5				6,452
Tax expense			1,601				2				1,603
Net income			4,846				3				4,849
Less: Net income attributable to noncontrolling interest			37				-				37
Net income attributable to Honeywell		$	4,809			$	3			$	4,812
Earnings per share of common stock-basic		$	6.29			$	0.01			$	6.30
Earnings per share of common stock-assuming dilution		$	6.20			$	0.01			$	6.21

Honeywell International Inc.

Consolidated Statement of Operations

(Unaudited)

 

		Year Ended December 31, 2015
		(Dollars in millions, except per share amounts)
		As Reported				Adjustments				As Revised
Product sales		$	30,695			$	-			$	30,695
Service sales			7,886				-				7,886
Net sales			38,581				-				38,581
Costs, expenses and other
Costs of products sold			21,775				354				22,129
Costs of services sold			4,972				68				5,040
			26,747				422				27,169
Selling, general and administrative expenses			5,006				205				5,211
Other (income) expense			(68	)			(634	)			(702	)
Interest and other financial charges			310				-				310
			31,995				(7	)			31,988
Income before taxes			6,586				7				6,593
Tax expense			1,739				4				1,743
Net income			4,847				3				4,850
Less: Net income attributable to noncontrolling interest			79				-				79
Net income attributable to Honeywell		$	4,768			$	3			$	4,771
Earnings per share of common stock-basic		$	6.11			$	0.01			$	6.12
Earnings per share of common stock-assuming dilution		$	6.04			$	-			$	6.04

Honeywell International Inc.

Consolidated Balance Sheet

(Unaudited)

 

		December 31, 2017												December 31, 2016
		(Dollars in millions)
		As Reported				Adjustments				As Revised				As Reported				Adjustments				As Revised
ASSETS
Current assets:
Cash and cash equivalents		$	7,059			$	-			$	7,059			$	7,843			$	-			$	7,843
Short-term investments			3,758				-				3,758				1,520				-				1,520
Accounts receivable - net			8,866				-				8,866				8,177				-				8,177
Inventories			4,613				-				4,613				4,366				-				4,366
Other current assets			1,706				-				1,706				1,152				-				1,152
Total current assets			26,002				-				26,002				23,058				-				23,058
Investments and long-term receivables			667				-				667				587				-				587
Property, plant and equipment - net			5,926				-				5,926				5,793				-				5,793
Goodwill			18,277				-				18,277				17,707				-				17,707
Other intangible assets - net			4,496				-				4,496				4,634				-				4,634
Insurance recoveries for asbestos related liabilities			411				68				479				417				80				497
Deferred income taxes			236				15				251				347				340				687
Other assets			3,372				-				3,372				1,603				-				1,603
Total assets		$	59,387			$	83			$	59,470			$	54,146			$	420			$	54,566
LIABILITIES
Current liabilities:
Accounts payable			6,584				-				6,584				5,690				-				5,690
Commercial paper and other short-term borrowings			3,958				-				3,958				3,366				-				3,366
Current maturities of long-term debt			1,351				-				1,351				227				-				227
Accrued liabilities			6,968				-				6,968				7,048				-				7,048
Total current liabilities			18,861				-				18,861				16,331				-				16,331
Long-term debt			12,573				-				12,573				12,182				-				12,182
Deferred income taxes			2,894				(230	)			2,664				486				(64	)			422
Postretirement benefit obligations other than pensions			512				-				512				473				-				473
Asbestos related liabilities			1,173				1,087				2,260				1,014				1,148				2,162
Other liabilties			5,930				-				5,930				4,110				-				4,110
Redeemable noncontrolling interest			5				-				5				3				-				3
SHAREOWNERS' EQUITY
Capital – common stock issued			958				-				958				958				-				958
– additional paid–in capital			6,212				-				6,212				5,781				-				5,781
Common stock held in treasury, at cost			(15,914	)			-				(15,914	)			(13,366	)			-				(13,366	)
Accumulated other comprehensive loss			(2,235	)			-				(2,235	)			(2,714	)			-				(2,714	)
Retained earnings			28,255				(774	)			27,481				28,710				(664	)			28,046
Total Honeywell shareowners’ equity			17,276				(774	)			16,502				19,369				(664	)			18,705
Noncontrolling interest			163				-				163				178				-				178
Total shareowners’ equity			17,439				(774	)			16,665				19,547				(664	)			18,883
Total liabilities, redeemable noncontrolling interest and shareowners' equity		$	59,387			$	83			$	59,470			$	54,146			$	420			$	54,566