What is the main purpose of this 8-K filing?

The main purpose of this 8-K filing is to announce a significant restructuring of Honeywell's business segments, specifically dividing the Automation and Control Solutions (ACS) segment into two new ones (HBT and SPS), and to report related executive appointments and a departure.

How will this business segment realignment affect Honeywell's overall financial reporting?

The realignment will result in Honeywell reporting its financial performance across four segments (Aerospace, PMT, HBT, and SPS) starting with the third quarter of 2016. Historical segment data will be restated to conform to this new structure, but this change does not impact the company's previously reported consolidated financial position, results of operations, or cash flows.

Who has been appointed to lead the new business segments?

Terrence Hahn has been appointed President and Chief Executive Officer of the new Home and Building Technologies (HBT) segment, and John Waldron has been appointed President and Chief Executive Officer of the new Safety and Productivity Solutions (SPS) segment. Both will report to the Chief Operating Officer.

What is the impact of this realignment on the previous ACS segment leadership?

Alexandre Ismail, who served as President and CEO of the ACS segment, will be resigning from Honeywell effective July 31, 2016, as a direct result of this business segment division.

HON/HONIV 8-K: Earnings & Results & Leadership Changes

Summary

Honeywell International Inc. (HON) filed an 8-K on July 22, 2016, primarily announcing a significant realignment of its business segments and providing an update on executive appointments. The company is restructuring its Automation and Control Solutions (ACS) segment into two new distinct segments: Home and Building Technologies (HBT) and Safety and Productivity Solutions (SPS). This strategic move aims to provide clearer focus and reporting for these growing areas, with HBT encompassing environmental solutions, security, and building operations, and SPS including sensing and safety products, notably incorporating the pending Intelligrated acquisition. This realignment will result in Honeywell operating with four primary business segments: Aerospace, Performance Materials and Technologies (PMT), HBT, and SPS. While this change is effective for reporting third-quarter 2016 results and historical segment data will be recast, it does not impact the company's historical consolidated financial statements. Additionally, the filing announces the appointment of Terrence Hahn as President and CEO of HBT and John Waldron as President and CEO of SPS, both newly created roles reporting to the COO. The outgoing ACS CEO, Alexandre Ismail, will be departing the company.

Key Highlights

1Honeywell is restructuring its Automation and Control Solutions (ACS) segment into two new segments: Home and Building Technologies (HBT) and Safety and Productivity Solutions (SPS).
2The company will now report financial performance across four business segments: Aerospace, Performance Materials and Technologies (PMT), HBT, and SPS.
3The realignment is effective for reporting third-quarter 2016 results, with historical segment data to be recast for consistency.
4This structural change is intended to provide clearer focus and reporting for distinct business operations and does not impact historical consolidated financial statements.
5Terrence Hahn has been appointed President and CEO of the new HBT segment.
6John Waldron has been appointed President and CEO of the new SPS segment.
7Alexandre Ismail, the current President and CEO of ACS, will resign from the company effective July 31, 2016, due to this realignment.

HONEYWELL INTERNATIONAL INC 8-K Report, Financial Results (Jul 22, 2016)

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