8-KOther EventsExhibits & Filings

HONEYWELL INTERNATIONAL INC 8-K Report, Corporate Update (Apr 24, 2023)

Filed April 24, 2023For Securities:HONHONIV

Summary

Honeywell International Inc. (HON) announced a significant new share repurchase program authorized by its Board of Directors on April 23, 2023, with a total authorization of up to $10.0 billion. This new authorization includes approximately $2.1 billion of remaining capacity from a prior program, effectively providing substantial capital for returning value to shareholders. The repurchases can be executed through various methods, including open market purchases and accelerated share repurchases, and the program does not have a specified expiration date, offering flexibility to management. The company intends to use these repurchases primarily to offset the dilutive effects of employee stock-based compensation and opportunistically reduce the outstanding share count.

Key Highlights

  • 1Board of Directors authorized up to $10.0 billion in common stock repurchases.
  • 2The new authorization includes approximately $2.1 billion in remaining availability from a previous program.
  • 3Repurchases can be executed through multiple methods including open market purchases and accelerated share repurchases.
  • 4The authorization does not have an expiration date, providing long-term flexibility.
  • 5Primary intentions for repurchases are to offset employee stock-based compensation dilution and opportunistically reduce share count.
  • 6The authorization has no impact on existing forward-looking share count or repurchase disclosures.
  • 7As of April 19, 2023, there were approximately 665.4 million shares of common stock outstanding.

Frequently Asked Questions

The primary takeaway is that Honeywell's Board of Directors has authorized a substantial new share repurchase program worth up to $10.0 billion. This demonstrates a commitment to returning capital to shareholders and managing its share count.

The total authorization is $10.0 billion, which includes approximately $2.1 billion of remaining availability from a prior share repurchase program. This means that roughly $7.9 billion represents new authorization for repurchases.

The newly authorized share repurchase program does not have an expiration date. It can be amended or terminated by the Board of Directors at any time without prior notice.

Honeywell expects to use the repurchases to offset the dilutive impact of its employee stock-based compensation plans (like stock options and restricted units) and to reduce the outstanding share count when attractive opportunities arise.