Honeywell International (HON) 10-K risk factor changes: FY2022 vs FY2020
The 2022-12-31 10-K against the 2021-12-31 one, compared heading by heading and sentence by sentence.
All filing items1,391 rewritten1,003 added424 removed1,942 unchanged
Summary
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- Sentence by sentence, 1,003 added, 424 removed, 1,391 rewritten and 1,942 unchanged across 1 item that differ.
Sentences by item
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| Item | Added | Removed | Rewritten | Unchanged |
|---|---|---|---|---|
| Full document | 1,003 | 424 | 1,391 | 1,942 |
Underlined words on a shaded ground are new in FY2022; struck-through words were in FY2020. Sentences that are wholly new or wholly gone are labelled rather than marked.
Full document
1,391 rewritten, 1,003 added, 424 removed, 1,942 unchanged
For the fiscal year ended December 31, [removed: 2021][added: 2022]
[removed: ][added: ]
[removed: Honeywell] [added: 1 Honeywell] International [removed: Inc.][added: Inc.]
The aggregate market value of the voting stock held by nonaffiliates of the Registrant was approximately [removed: $152.8] [added: $118.0] billion at June 30, [removed: 2021.][added: 2022.]
There were [removed: 685,818,771] [added: 668,140,252] shares of Common Stock outstanding at January [removed: 28, 2022.][added: 27, 2023.]
Part III: Proxy Statement for Annual Meeting of Shareowners to be held [removed: April 25, 2022.][added: May 19, 2023]
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| [removed: [125](#iff629c0c67e54d6ca4a249b8161bfa49_313)] [added: [123](#ia9f60d309d9c426f8d0022998643f522_292)] | | | [Form 10-K Cross-Reference [removed: Index](#iff629c0c67e54d6ca4a249b8161bfa49_313)] [added: Index](#ia9f60d309d9c426f8d0022998643f522_292)] | | |
Forward-looking statements are those that address activities, [removed: events] [added: events,] or developments that management intends, expects, projects, believes or anticipates will or may occur in the future.
Our forward-looking statements are also subject to risks and uncertainties, including the impact of the [removed: COVID-19 pandemic,] [added: coronavirus pandemic (COVID-19) and the Russia-Ukraine conflict,] that can affect our performance in both the near- and long-term.
In addition, no assurance can be given that any plan, initiative, projection, [removed: goal] [added: goal,] commitment, expectation, or prospect set forth in this Form 10-K can or will be achieved.
[added: 3] Honeywell International Inc. [removed: 1]
[removed: ABOUT HONEYWELL][added: | [2](#ia9f60d309d9c426f8d0022998643f522_22) | | | | | | ITEM 1 | | | | | | [About Honeywell](#ia9f60d309d9c426f8d0022998643f522_22) | | |]
Our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and any amendments to those reports, are available free of charge on our [added: Investor Relations] website [removed: (honeywell.com)] [added: (investor.honeywell.com)] under the heading [removed: Investors] [added: Financials] (see SEC Filings) immediately after they are filed with, or furnished to, the [removed: SEC.][added: Securities and Exchange Commission (SEC).]
Honeywell uses our Investor Relations [removed: website, investor.honeywell.com,] [added: website] as a means of disclosing information which may be of interest or material to our investors and for complying with disclosure obligations under Regulation FD.
In addition, in this Form 10-K, the Company incorporates by reference certain information from its definitive Proxy Statement for the [removed: 2022] [added: 2023] Annual Meeting of [removed: Stockholders,] [added: Stockholders (the Proxy Statement),] which we expect to file with the SEC on or about [removed: March 11, 2022 (the Proxy Statement),] [added: April 6, 2023,] and which will also be available free of charge on our website.
| 4.125% Senior Notes due 2034 | | | | | | HON 34 | | | | | | The Nasdaq Stock Market LLC | | |
If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the Registrant included in the filing reflect the correction of an error to previously issued financial statements.
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the Registrant’s executive officers during the relevant recovery period pursuant to § 240.10D-1(b).
| [113](#ia9f60d309d9c426f8d0022998643f522_253) | | | [Controls and Procedures](#ia9f60d309d9c426f8d0022998643f522_253) | | |
| [113](#ia9f60d309d9c426f8d0022998643f522_259) | | | [Other Information](#ia9f60d309d9c426f8d0022998643f522_259) | | |
| [114](#ia9f60d309d9c426f8d0022998643f522_268) | | | [Executive Compensation](#ia9f60d309d9c426f8d0022998643f522_268) | | |
| [116](#ia9f60d309d9c426f8d0022998643f522_283) | | | [Form 10-K Summary](#ia9f60d309d9c426f8d0022998643f522_283) | | |
| [121](#ia9f60d309d9c426f8d0022998643f522_289) | | | [Signatures](#ia9f60d309d9c426f8d0022998643f522_289) | | |
| [TABLE OF CONTENTS](#ia9f60d309d9c426f8d0022998643f522_13) | | | | | |
| [TABLE OF CONTENTS](#ia9f60d309d9c426f8d0022998643f522_13) | | | | | |
| [TABLE OF CONTENTS](#ia9f60d309d9c426f8d0022998643f522_13) | | | ABOUT HONEYWELL | | |
Our rigorous operating principles allowed us to once again deliver a very strong performance in 2022.
We grew our market share and positioned our businesses for continued success in the future.
In 2022, we delivered sales growth of 3% (6% organically(1), 7% organically excluding lost Russian sales(2)), led by strong demand in our Commercial Aviation, Advanced Materials, and Building Products businesses, as we experienced sales growth in three of our four reportable business segments.
Empowered by our Honeywell Accelerator operating model, we adapted our approach to strained supply chains and mitigated profitability loss due to inflation.
In 2022, we deepened commitments with critical suppliers, improved demand forecasting, enhanced communication across our businesses to coordinate larger orders with key suppliers, and reengineered products in an effort to significantly mitigate sales risk.
We also embedded comprehensive near real-time inflation analysis into our operating system, enabling strategic pricing actions to help stay ahead of the inflation curve and protect profitability.
In 2023, we expect macroeconomic factors to remain turbulent.
We continue to carry a robust backlog of $29.6 billion as of December 31, 2022, that provides a strong foundation for growth.
| | | | Sales up 3%, up 6% on an organic(1) basis, or up 7% on an organic basis excluding lost Russian sales(2) | | | | | | | | | Record backlog of | | | | | | | | | Operating cash flows of | | | | | |
| | | | $35.5 BILLION | | | | | | | | | $29.6 BILLION | | | | | | | | | $5.3 BILLION | | | | | |
| | | | as we remain focused on leveraging our robust operating model to deliver growth despite headwinds from inflation, supply chain constraints, and impacts of the Russia-Ukraine conflict | | | | | | | | | as of year-end, demonstrating strong demand in our end markets and positioning us well to convert for future growth | | | | | | | | | as we remain focused on increasing operating cash flows through revenue growth, margin expansion, and improved working capital turnover | | | | | |
(1) Organic sales % change and Organic sales % change excluding lost Russian sales are non-GAAP measures.
Refer to the section titled Consolidated Operating Results within Management's Discussion and Analysis of Financial Condition and Results of Operations for the definition and a reconciliation to the comparable GAAP measure.
(2) Lost Russian sales is defined as the year-over-year decline in sales due to the decision to wind down our businesses and operations in Russia.
This does not reflect management’s estimate of 2022 Russian sales absent the decision to wind down our businesses and operations in Russia.
| [TABLE OF CONTENTS](#ia9f60d309d9c426f8d0022998643f522_13) | | | ABOUT HONEYWELL | | |
| [TABLE OF CONTENTS](#ia9f60d309d9c426f8d0022998643f522_13) | | | ABOUT HONEYWELL | | |
| 2022 Full-year revenue of $11,827 million | | | | | | | | |
| 2022 Full-year revenue by business unit | | | | | | | | |
| $2,089 million | | | $5,108 million | | | $4,630 million | | |
| Commercial Aviation Original Equipment | | | Commercial Aviation Aftermarket | | | Defense and Space | | |
| 2022 Full-year revenue of $6,000 million | | | | | |
| 2022 Full-year revenue by business unit | | | | | |
| $3,638 million | | | $2,362 million | | |
| Products | | | Building Solutions | | |
| --- | --- | --- | --- | --- | --- |
| [TABLE OF CONTENTS](#ia9f60d309d9c426f8d0022998643f522_13) | | | ABOUT HONEYWELL | | |
| --- | --- | --- | --- | --- | --- |
| 2022 Full-year revenue of $10,727 million | | | | | | | | |
* The common stock is also listed on the London Stock Exchange.
| [116](#iff629c0c67e54d6ca4a249b8161bfa49_277) | | | [Controls and Procedures](#iff629c0c67e54d6ca4a249b8161bfa49_277) | | |
| [116](#iff629c0c67e54d6ca4a249b8161bfa49_283) | | | [Other Information](#iff629c0c67e54d6ca4a249b8161bfa49_283) | | |
| [117](#iff629c0c67e54d6ca4a249b8161bfa49_289) | | | [Executive Compensation](#iff629c0c67e54d6ca4a249b8161bfa49_289) | | |
| [119](#iff629c0c67e54d6ca4a249b8161bfa49_304) | | | [Form 10-K Summary](#iff629c0c67e54d6ca4a249b8161bfa49_304) | | |
| [124](#iff629c0c67e54d6ca4a249b8161bfa49_310) | | | [Signatures](#iff629c0c67e54d6ca4a249b8161bfa49_310) | | |
The COVID-19 pandemic continued to impact the global economy and certain of our business; however, our execution during 2021 allowed us to grow our market share, exceed our financial commitments, and strategically position our business for continued success.
In 2021, we delivered sales growth of 5% to $34.4 billion, led by strong demand in our Warehouse and Workflow Solutions, Productivity Solutions and Services, Advanced Materials, and Commercial Aviation businesses.
We deepened focus on our three transformation initiatives to actively deploy capital to achieve portfolio optimization, drive a culture of innovation enabling growth, and lead in Environmental, Social, and Governance objectives.
In executing on these initiatives, we completed four acquisitions, drove growth in sustainable technologies and positively impacted our communities that face continued challenges from the COVID-19 pandemic and other socioeconomic factors.
Overall, our orders were up 11%, compared to 2020, and we carry a robust backlog of $27.7 billion as of December 31, 2021.
We continue to monitor and respond to several ongoing macroeconomic factors, including supply chain constraints accompanied by shortages and rising costs for materials and labor.
We implemented and continue to identify actions to mitigate the effect of these factors and reduce the impact on our businesses.
| | | | Sales up by 5% to | | | | | | | | | Diluted EPS up by | | | | | | | | | Operating cash flows of | | | | | |
| | | | $34.4 BILLION | | | | | | | | | 17.7% | | | | | | | | | $6 BILLION | | | | | |
| | | | led by strong demand in certain of our businesses as result of the recovery from the global recession created by the COVID-19 pandemic | | | | | | | | | reflecting strong earnings in our core businesses and continued deployment of capital for share repurchases | | | | | | | | | as we remain focused on increasing operating cash flows through revenue growth, margin expansion, and improved working capital turnover | | | | | |
The major products and services, including Honeywell Forge solutions supported by Honeywell Connected Enterprise, customers, uses and key competitors of each of our reportable segments are:
The backlog previously disclosed as of December 31, 2020, is revised to reflect a prior period correction, which had no impact on our results of operations.
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While the current supply chain constraints have not significantly impacted our business, to reduce the impact of current and future disruptions we have implemented short-term and long-term strategies to reduce the impact of current and future disruptions, and digital solutions to manage shortages and prioritize mitigation actions.
We plan to accomplish this through a combination of innovative investments in energy savings projects, conversion to renewable energy sources, completion of capital improvement projects at our sites, upgrading our fleet of vehicles, and, if necessary, using credible carbon credits.
We see ourselves as a responsible corporate citizen, leading sustainable change within the global marketplace.
While we focus on our own sustainability commitments, we seek to partner as an agent of change with our customers around the world through sustainable products, services, and solutions.
1Available through the Honeywell Partnership Ecosystem.
HONEYWELL BEHAVIORS
Training programs are available to all employees through our internal learning and development platform, which assigns curriculum tailored to an employee’s job responsibilities.
Employees can also access additional trainings on-demand to continue to enhance their skills.
SELECTED FINANCIAL DATA
This selected financial data should be read in conjunction with the Company's Consolidated Financial Statements and related Notes included elsewhere in this Annual Report as well as the section Management's Discussion and Analysis of Financial Condition and Results of Operations.
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| | | | (Dollars in millions, except per share amounts) | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Results of Operations | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Earnings from operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Basic | | | 8.01 | | | | | | 6.79 | | | | | | 8.52 | | | | | | 9.10 | | | | | | 2.03 | | |
| Assuming dilution | | | 7.91 | | | | | | 6.72 | | | | | | 8.41 | | | | | | 8.98 | | | | | | 2.00 | | |
| Dividends per share | | | 3.77 | | | | | | 3.63 | | | | | | 3.36 | | | | | | 3.06 | | | | | | 2.74 | | |
| Balance Sheet Data | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Short-term debt | | | 5,345 | | | | | | 6,042 | | | | | | 4,892 | | | | | | 6,458 | | | | | | 5,309 | | |
An excerpt. Shown here: 40 of 1,391 rewritten, 40 of 1,003 added and 40 of 424 removed. The counts are complete. For every sentence, read Full document in the FY2022 filing and the FY2020 filing.