EX-99 3 exhibit99-december8kxvictor.htm EX-99 Document
Exhibit 99
HONEYWELL INTERNATIONAL INC.
(Unaudited)
(Dollars in tables in millions)
SUPPLEMENTAL SEGMENT INFORMATION FOR THE THREE MONTHS ENDED MARCH 31, JUNE 30, AND SEPTEMBER 30, 2023 AND 2022
Three Months Ended
 March 31, 2022June 30, 2022Sept 30, 2022March 31, 2023June 30, 2023Sept 30, 2023
Net sales
Aerospace Technologies$2,749 $2,898 $2,976 $3,111 $3,341 $3,499 
Industrial Automation2,896 3,008 2,868 2,803 2,727 2,630 
Building Automation1,429 1,531 1,526 1,487 1,510 1,530 
Energy and Sustainability Solutions1,301 1,515 1,579 1,461 1,567 1,551 
Corporate and All Other1 1 2 2 1 2 
Net sales$8,376 $8,953 $8,951 $8,864 $9,146 $9,212 
Segment profit
Aerospace Technologies$753 $767 $818 $827 $924 $963 
Industrial Automation458 434 465 526 498 446 
Building Automation336 360 368 375 385 386 
Energy and Sustainability Solutions305 398 421 300 363 377 
Corporate and All Other(86)(92)(120)(81)(118)(90)
Total segment profit$1,766 $1,867 $1,952 $1,947 $2,052 $2,082 
 Three Months Ended
March 31, 2022June 30, 2022Sept 30, 2022March 31, 2023June 30, 2023Sept 30, 2023
Aerospace Technologies
Commercial Aviation Original Equipment$478 $527 $538 $541 $607 $563 
Commercial Aviation Aftermarket1,168 1,208 1,339 1,423 1,533 1,634 
Defense and Space1,103 1,163 1,099 1,147 1,201 1,302 
Net Aerospace Technologies sales2,749 2,898 2,976 3,111 3,341 3,499 
Industrial Automation
Sensing and Safety Technologies734 722 709 690 706 675 
Productivity Solutions and Services418 475 435 361 329 304 
Process Solutions1,152 1,179 1,141 1,288 1,294 1,316 
Warehouse and Workflow Solutions592 632 583 464 398 335 
Net Industrial Automation sales2,896 3,008 2,868 2,803 2,727 2,630 
Building Automation
Products879 936 915 908 918 894 
Building Solutions550 595 611 579 592 636 
Net Building Automation sales1,429 1,531 1,526 1,487 1,510 1,530 
Energy and Sustainability Solutions
UOP480 565 633 565 623 668 
Advanced Materials821 950 946 896 944 883 
Net Energy and Sustainability Solutions sales1,301 1,515 1,579 1,461 1,567 1,551 
Corporate and All Other1 1 2 2 1 2 
Net sales$8,376 $8,953 $8,951 $8,864 $9,146 $9,212 


HONEYWELL INTERNATIONAL INC.
(Unaudited)
(Dollars in tables in millions)
SUPPLEMENTAL SEGMENT INFORMATION FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021
 Years Ended Dec 31,
20222021
Net sales
Aerospace Technologies$11,827 $11,026 
Industrial Automation11,638 12,425 
Building Automation6,000 5,539 
Energy and Sustainability Solutions5,996 5,402 
Corporate and All Other5 — 
Net sales$35,466 $34,392 
Segment profit
Aerospace Technologies$3,228 $3,051 
Industrial Automation1,896 1,824 
Building Automation1,439 1,238 
Energy and Sustainability Solutions1,538 1,325 
Corporate and All Other(412)(226)
Total segment profit$7,689 $7,212 
Years Ended Dec 31,
 20222021
Aerospace Technologies 
Commercial Aviation Original Equipment$2,089 $1,720 
Commercial Aviation Aftermarket5,108 4,155 
Defense and Space4,630 5,151 
Net Aerospace Technologies sales11,827 11,026 
Industrial Automation
Sensing and Safety Technologies2,860 3,123 
Productivity Solutions and Services1,739 1,778 
Process Solutions4,731 4,611 
Warehouse and Workflow Solutions2,308 2,913 
Net Industrial Automation sales11,638 12,425 
Building Automation
Products3,638 3,173 
Building Solutions2,362 2,366 
Net Building Automation sales6,000 5,539 
Energy and Sustainability Solutions
UOP2,404 2,348 
Advanced Materials3,592 3,054 
Net Energy and Sustainability Solutions sales5,996 5,402 
Corporate and All Other5 — 
Net sales$35,466 $34,392 



HONEYWELL INTERNATIONAL INC.
(Unaudited)
(Dollars in tables in millions)
INDUSTRIAL AUTOMATION
Net Sales
chart-fa39713052304bb19bba.jpg
Three Months Ended
March 31, 2022June 30, 2022Sept 30, 2022March 31, 2023June 30, 2023Sept 30, 2023
Net sales$2,896 $3,008 $2,868 $2,803 $2,727 $2,630 
Cost of products and services sold1,859 1,976 1,852 1,724 1,686 1,636 
Selling, general and administrative and other expenses579 598 551 553 543 548 
Segment profit$458 $434 $465 $526 $498 $446 
chart-de119eebe7064a3d8a9a.jpgchart-b1668d1314cf4af2942a.jpg
20222021
Net sales$11,638 $12,425 
Cost of products and services sold7,486 8,361 
Selling, general and administrative and other expenses2,256 2,240 
Segment profit$1,896 $1,824 


HONEYWELL INTERNATIONAL INC.
(Unaudited)
(Dollars in tables in millions)
ENERGY AND SUSTAINABILITY SOLUTIONS
Net Sales
chart-776b4b8816e04787be2a.jpg
Three Months Ended
March 31, 2022June 30, 2022Sept 30, 2022March 31, 2023June 30, 2023Sept 30, 2023
Net sales$1,301 $1,515 $1,579 $1,461 $1,567 $1,551 
Cost of products and services sold808 908 976 949 1,002 $978 
Selling, general and administrative and other expenses188 209 182 212 202 196 
Segment profit$305 $398 $421 $300 $363 $377 
chart-e2f4cae981824478a4fa.jpgchart-74acfb82b4e341fa986a.jpg
20222021
Net sales$5,996 $5,402 
Cost of products and services sold3,690 3,413 
Selling, general and administrative and other expenses768 664 
Segment profit$1,538 $1,325 


Appendix

Non-GAAP Financial Measures

The following information provides definitions and reconciliations of certain non-GAAP financial measures presented in this press release to which this reconciliation is attached to the most directly comparable financial measures calculated and presented in accordance with generally accepted accounting principles (GAAP).

Management believes that, when considered together with reported amounts, these measures are useful to investors and management in understanding our ongoing operations and in the analysis of ongoing operating trends. These measures should be considered in addition to, and not as replacements for, the most comparable GAAP measure. Certain measures presented on a non-GAAP basis represent the impact of adjusting items net of tax. The tax-effect for adjusting items is determined individually and on a case-by-case basis. Other companies may calculate these non-GAAP measures differently, limiting the usefulness of these measures for comparative purposes.

Management does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitations of these non-GAAP financial measures are that they exclude significant expenses and income that are required by GAAP to be recognized in the consolidated financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by management about which expenses and income are excluded or included in determining these non-GAAP financial measures. Investors are urged to review the reconciliation of the non-GAAP financial measures to the comparable GAAP financial measures and not to rely on any single financial measure to evaluate Honeywell’s business.


Honeywell International Inc.
Reconciliation of Operating Income to Segment Profit
(Unaudited)
(Dollars in millions)
 
 Three Months Ended March 31,
 20232022
Operating income$1,692 $1,271 
Stock compensation expense1
59 60 
Repositioning, Other2,3
180 401 
Pension and other postretirement service costs3
16 34 
Segment profit$1,947 $1,766 
1 Included in Selling, general and administrative expenses.
2 
Includes repositioning, asbestos, environmental expenses, equity income adjustment, and other charges. For the three months ended March 31, 2023, other charges include $2 million of expenses due to the Russia-Ukraine conflict. For the three months ended March 31, 2022, other charges include $183 million of reserves against outstanding accounts receivables, contract assets, and impairments of other assets due to the Russia-Ukraine conflict. For the three months ended March 31, 2022, other charges include $9 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 Safety and Productivity Solutions segment. These costs include incurred amounts and provisions for anticipated losses recognized when total estimated costs at completion for certain of the business’ long-term contracts exceeded total estimated revenue. These certain costs represent unproductive labor costs due to unexpected supplier delays and the resulting downstream installation issues, demobilization and remobilization of contract workers, and resolution of contractor disputes.
3 Included in Cost of products and services sold and Selling, general and administrative expenses.
 Three Months Ended June 30,
 20232022
Operating income$1,883 $1,601 
Stock compensation expense1
50 53 
Repositioning, Other2,3
103 180 
Pension and other postretirement service costs3
16 33 
Segment profit$2,052 $1,867 
1 Included in Selling, general and administrative expenses.
2 
Includes repositioning, asbestos, environmental expenses, equity income adjustment, and other charges. For the three months ended June 30, 2023, other charges include $2 million of benefit due to the Russia-Ukraine conflict. For the three months ended June 30, 2022, other charges include $67 million related to inventory reserves, the write-down of other assets, and employee severance, related to the initial suspension and wind down of our businesses and operations in Russia. For the three months ended June 30, 2022, other charges include $6 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 Safety and Productivity Solutions segment. These costs include incurred amounts and provisions for anticipated losses recognized when total estimated costs at completion for certain of the business’ long-term contracts exceeded total estimated revenue. These certain costs represent unproductive labor costs due to unexpected supplier delays and the resulting downstream installation issues, demobilization and remobilization of contract workers, and resolution of contractor disputes.
3 Included in Cost of products and services sold and Selling, general and administrative expenses.


Honeywell International Inc.
Reconciliation of Operating Income to Segment Profit (Continued)
(Unaudited)
(Dollars in millions)
 Three Months Ended Sept 30,
 20232022
Operating income$1,926 $1,742 
Stock compensation expense1
39 50 
Repositioning, Other2,3
100 128 
Pension and other postretirement service costs3
17 32 
Segment profit$2,082 $1,952 
1 Included in Selling, general and administrative expenses.
2 
Includes repositioning, asbestos, environmental expenses, equity income adjustment, and other charges. For the three months ended September 30, 2022, other charges include a benefit of $16 million primarily related to a favorable foreign exchange revaluation on an intercompany loan with a Russian affiliate, in addition to the recovery of outstanding accounts receivable previously reserved against, partially offset by additional charges for called guarantees, related to the initial suspension and wind down of our businesses and operations in Russia. For the three months ended September 30, 2022, other charges include $17 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 Safety and Productivity Solutions segment. These costs include incurred amounts and provisions for anticipated losses recognized when total estimated costs at completion for certain of the business’ long-term contracts exceeded total estimated revenue. These certain costs represent unproductive labor costs due to unexpected supplier delays and the resulting downstream installation issues, demobilization and remobilization of contract workers, and resolution of contractor disputes.
3 Included in Cost of products and services sold and Selling, general and administrative expenses.
 Twelve Months Ended Dec 31,
 20222021
Operating income$6,427 $6,200 
Stock compensation expense1
188 217 
Repositioning, Other2,3
942 636 
Pension and other postretirement service costs3
132 159 
Segment profit$7,689 $7,212 
1 Included in Selling, general and administrative expenses.
2 
Includes repositioning, asbestos, environmental expenses, equity income adjustment, and other charges. For the twelve months ended December 31, 2022, other charges include an expense of $250 million related to reserves against outstanding accounts receivables, contract assets, and inventory, as well as the write-down of other assets and employee severance related to the initial suspension and wind down of our businesses and operations in Russia. For the twelve months ended December 31, 2022, and 2021, other charges include $41 million and $105 million, respectively, 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 Safety and Productivity Solutions segment. These costs include incurred amounts and provisions for anticipated losses recognized when total estimated costs at completion for certain of the business’ long-term contracts exceeded total estimated revenue. These certain costs represent unproductive labor costs due to unexpected supplier delays and the resulting downstream installation issues, demobilization and remobilization of contract workers, and resolution of contractor disputes.
3 Included in Cost of products and services sold and Selling, general and administrative expenses.
We define segment profit, on an overall Honeywell basis, as operating income, excluding stock compensation expense, pension and other postretirement service costs, and repositioning and other charges. We believe this measure is useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends.