Does this 8-K change Honeywell's reported financial results?

No. The filing states the supplemental information does not represent a restatement or reissuance of previously issued financial statements. It shows historical figures recast to the new non-GAAP and segment presentation so that periods are comparable going forward.

What is the impact of excluding acquisition-related amortization from adjusted EPS?

The amortization add-back is modest, about $0.07 to $0.10 per share per quarter in 2023 and $0.08 in Q1 2024, and totaled $0.35 for FY2023. It makes adjusted EPS higher than GAAP EPS by roughly that amount, but it does not change GAAP results. Management argues it improves comparability with acquisitive peers, while investors should recognize that acquisition amortization is a real, recurring cost of past deals.

Why did Q4 2023 adjusted EPS jump to $2.69?

Q4 2023 GAAP EPS was $1.91, which included a $0.49 per share Bendix asbestos adjustment and a $0.19 pension mark-to-market expense. Those items were excluded from adjusted EPS, which lifted the adjusted figure to $2.69. The Bendix change came from shortening the claim look-back period from five years to two, and the company says future resolution values are uncertain, so similar charges could recur.

How did the Industrial Automation segment perform after the realignment?

Industrial Automation net sales under the recast fell from $2,803 million in Q1 2023 to $2,478 million in Q1 2024. Warehouse and Workflow Solutions was the main drag, declining from $464 million to $210 million over that period, while Process Solutions was relatively stable at about $1.5 billion per quarter. The gas detection move affects segment-level comparisons, not total company sales.

Are these figures audited or part of an official earnings release?

No. The Exhibit 99 information is labeled unaudited and is furnished for informational purposes under Item 2.02 and Item 7.01. It is provided to help investors compare results under the new basis and is not filed for Section 18 liability purposes. Investors should rely on the audited GAAP financial statements in Honeywell's periodic reports for official results.

HON 8-K: Earnings & Results & Regulation FD

01—Abstract

Summary

Summary of the 8-K filed July 10, 2024. Cited figures are marked; the original filing is the authoritative source.

Honeywell International (HON) filed this 8-K on July 10, 2024 to furnish supplemental, unaudited historical financial information under two recast bases, not a new earnings release or restatement.

Effective April 1, 2024, Honeywell now excludes amortization of acquisition-related intangibles and certain acquisition-related costs (net of tax) from segment profit and adjusted EPS. Separately, in April 2024 the gas detection business moved from Sensing and Safety Technologies to Process Solutions within Industrial Automation. The filing explicitly states these recasts do not restate previously issued financial statements.

The recast mainly changes how the company's profitability metrics are presented going forward, and it makes comparisons across periods cleaner. Under the new basis, quarterly segment profit for Q1 2023 through Q1 2024 ranged from $2,015 million to $2,300 million^a, and adjusted EPS ranged from $2.15 to $2.69. Q1 2024 adjusted EPS was $2.34, and Q1 2024 segment profit was $2,094 million, a 23.0% margin on $9,105 million of net sales.

Full-year 2023 adjusted EPS was $9.52^b and full-year segment profit was $8,598 million (23.5% margin on $36,662 million of sales). Investors should note that the amortization add-back is relatively small (about $0.08 per quarter in 2023 and Q1 2024), so the change does not dramatically alter reported results. The filing also shows several items that affect comparability and quality of earnings.

Q4 2023 adjusted EPS of $2.69^c included a $434 million pre-tax ($330 million after-tax, or about $0.49 per share) adjustment to the Bendix asbestos liability, driven mainly by shortening the claim look-back period from five years to two. Q4 2023 GAAP EPS was $1.91, and Q1 2024 included $17 million of Russia-related charges. Investors should treat the Bendix change as a potentially recurring risk item, since management says future resolution values are unpredictable.

02—Key points

Key Highlights

Honeywell now excludes acquisition-related intangible amortization and certain acquisition-related costs (net of tax) from segment profit and adjusted EPS, effective for periods beginning April 1, 2024.
Q1 2024 adjusted EPS was $2.34 and segment profit was $2,094 million (23.0% margin on $9,105 million net sales), versus GAAP diluted EPS of $2.23.
FY2023 adjusted EPS recast to $9.52 (GAAP $8.47), and FY2023 segment profit of $8,598 million (23.5% margin on $36,662 million sales).
Gas detection moved from Sensing and Safety Technologies to Process Solutions within Industrial Automation; Q1 2024 Industrial Automation net sales were $2,478 million, down from $2,803 million in Q1 2023.
Q4 2023 adjusted EPS of $2.69 included a $0.49 per share Bendix asbestos liability adjustment ($434 million pre-tax) from shortening the look-back period to two years.
Q1 2024 included $17 million of Russia-related charges, which Honeywell did not adjust out of adjusted EPS.
The filing states these recasts are supplemental and do not restate previously issued financial statements; the 8-K is furnished, not filed, under Section 18 of the Exchange Act.

03—Questions

Frequently Asked Questions

Does this 8-K change Honeywell's reported financial results?
No. The filing states the supplemental information does not represent a restatement or reissuance of previously issued financial statements. It shows historical figures recast to the new non-GAAP and segment presentation so that periods are comparable going forward.
What is the impact of excluding acquisition-related amortization from adjusted EPS?
The amortization add-back is modest, about $0.07 to $0.10 per share per quarter in 2023 and $0.08 in Q1 2024, and totaled $0.35 for FY2023. It makes adjusted EPS higher than GAAP EPS by roughly that amount, but it does not change GAAP results. Management argues it improves comparability with acquisitive peers, while investors should recognize that acquisition amortization is a real, recurring cost of past deals.
Why did Q4 2023 adjusted EPS jump to $2.69?
Q4 2023 GAAP EPS was $1.91, which included a $0.49 per share Bendix asbestos adjustment and a $0.19 pension mark-to-market expense. Those items were excluded from adjusted EPS, which lifted the adjusted figure to $2.69. The Bendix change came from shortening the claim look-back period from five years to two, and the company says future resolution values are uncertain, so similar charges could recur.
How did the Industrial Automation segment perform after the realignment?
Industrial Automation net sales under the recast fell from $2,803 million in Q1 2023 to $2,478 million in Q1 2024. Warehouse and Workflow Solutions was the main drag, declining from $464 million to $210 million over that period, while Process Solutions was relatively stable at about $1.5 billion per quarter. The gas detection move affects segment-level comparisons, not total company sales.
Are these figures audited or part of an official earnings release?
No. The Exhibit 99 information is labeled unaudited and is furnished for informational purposes under Item 2.02 and Item 7.01. It is provided to help investors compare results under the new basis and is not filed for Section 18 liability purposes. Investors should rely on the audited GAAP financial statements in Honeywell's periodic reports for official results.

04—Continue

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