Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities, Classification
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Honeywell International Inc., income tax expense (benefit), continuing operations

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
U.S. Federal	176)	653)	415)	475)	8)
U.S. State	60)	124)	146)	79)	43)
Non-U.S.	1,098)	815)	886)	768)	1,099)
Current tax expense	1,334)	1,592)	1,447)	1,322)	1,150)
U.S. Federal	27)	(176)	173)	234)	332)
U.S. State	11)	(36)	37)	39)	63)
Non-U.S.	115)	32)	(32)	(448)	(216)
Deferred tax expense (benefit)	153)	(180)	178)	(175)	179)
Tax expense	1,487)	1,412)	1,625)	1,147)	1,329)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
Current tax expense	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	Honeywell International Inc. current tax expense increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.
Deferred tax expense (benefit)	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	Honeywell International Inc. deferred tax expense (benefit) decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level.
Tax expense	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Honeywell International Inc. tax expense decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.

Honeywell International Inc., effective income tax rate (EITR) reconciliation

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
U.S. federal statutory income tax rate	21.00%	21.00%	21.00%	21.00%	21.00%
Taxes on non-U.S. earnings	-2.00%	-0.40%	-1.40%	-0.80%	-0.50%
U.S. state income taxes	0.50%	1.40%	1.50%	1.30%	1.10%
Reserves for tax contingencies	3.40%	1.10%	2.20%	-2.60%	2.00%
Employee share-based payments	-0.30%	-0.90%	-0.70%	-1.20%	-1.20%
Reduction of certain receivables	0.00%	0.00%	0.00%	2.00%	0.00%
Restructuring	0.00%	0.70%	-1.40%	0.00%	0.00%
U.S. federal tax credits	-1.60%	-0.90%	-0.60%	0.00%	0.00%
U.S. valuation allowance	-0.10%	-0.20%	2.00%	0.10%	0.00%
All other items, net	-0.10%	0.30%	-0.10%	-0.70%	-1.20%
Effective income tax rate, before U.S. Tax Cuts and Jobs Act	20.80%	22.10%	22.50%	19.10%	21.20%
U.S. Tax Cuts and Jobs Act	0.00%	0.00%	0.00%	0.00%	-3.60%
Effective income tax rate	20.80%	22.10%	22.50%	19.10%	17.60%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
Effective income tax rate, before U.S. Tax Cuts and Jobs Act	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Honeywell International Inc. effective income tax rate, before U.S. Tax Cuts and Jobs Act decreased from 2021 to 2022 and from 2022 to 2023.

Honeywell International Inc., components of deferred tax assets and liabilities

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Postretirement benefits other than pensions	55)	59)	77)	85)	111)
Asbestos and environmental	405)	545)	468)	508)	531)
Capitalized research and development	582)	—)	—)	—)	—)
Employee compensation and benefits	148)	142)	174)	180)	205)
Lease liabilities	258)	233)	242)	197)	—)
Other accruals and reserves	196)	363)	260)	110)	279)
Net operating losses	687)	695)	734)	779)	652)
Capital loss limitation and carryover	385)	126)	151)	—)	—)
Tax credit carryforwards and other attributes	420)	163)	164)	219)	246)
Gross deferred tax assets	3,136)	2,326)	2,270)	2,078)	2,024)
Valuation allowance	(1,292)	(812)	(857)	(766)	(656)
Deferred tax assets	1,844)	1,514)	1,413)	1,312)	1,368)
Pension	(1,132)	(1,088)	(948)	(548)	(469)
Property, plant and equipment	(441)	(233)	(464)	(437)	(469)
Right-of-use asset	(240)	(212)	(230)	(184)	—)
Intangibles	(817)	(818)	(883)	(898)	(1,296)
Unremitted earnings of foreign subsidiaries	(542)	(517)	(426)	(398)	(419)
Other asset basis differences	(369)	(317)	(334)	(169)	(136)
Other	(5)	(1)	(2)	(31)	(163)
Deferred tax liabilities	(3,546)	(3,186)	(3,287)	(2,665)	(2,952)
Net deferred tax asset (liability)	(1,702)	(1,672)	(1,874)	(1,353)	(1,584)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
Gross deferred tax assets	Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Honeywell International Inc. gross deferred tax assets increased from 2021 to 2022 and from 2022 to 2023.
Deferred tax assets	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Honeywell International Inc. deferred tax assets increased from 2021 to 2022 and from 2022 to 2023.
Net deferred tax asset (liability)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	Honeywell International Inc. net deferred tax asset (liability) increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.

Honeywell International Inc., deferred tax assets and liabilities, classification

US$ in millions

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
	Deferred tax assets	392)	421)	489)	760)	86)
	Deferred tax liabilities	2,094)	2,093)	2,364)	2,113)	1,670)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
Deferred tax assets	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent.	Honeywell International Inc. deferred tax assets decreased from 2021 to 2022 and from 2022 to 2023.
Deferred tax liabilities	Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent.	Honeywell International Inc. deferred tax liabilities decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.

Honeywell International Inc., adjustments to financial statements

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Adjustment to Total Assets
Total assets (as reported)	61,525)	62,275)	64,470)	64,586)	58,679)
Less: Noncurrent deferred tax assets, net	392)	421)	489)	760)	86)
Total assets (adjusted)	61,133)	61,854)	63,981)	63,826)	58,593)
Adjustment to Total Liabilities
Total liabilities (as reported)	45,084)	44,949)	45,221)	46,789)	39,966)
Less: Noncurrent deferred tax liabilities, net	2,094)	2,093)	2,364)	2,113)	1,670)
Total liabilities (adjusted)	42,990)	42,856)	42,857)	44,676)	38,296)
Adjustment to Total Honeywell Shareowners’ Equity
Total Honeywell shareowners’ equity (as reported)	15,856)	16,697)	18,569)	17,549)	18,494)
Less: Net deferred tax assets (liabilities)	(1,702)	(1,672)	(1,874)	(1,353)	(1,584)
Total Honeywell shareowners’ equity (adjusted)	17,558)	18,369)	20,443)	18,902)	20,078)
Adjustment to Net Income Attributable To Honeywell
Net income attributable to Honeywell (as reported)	5,658)	4,966)	5,542)	4,779)	6,143)
Add: Deferred income tax expense (benefit)	153)	(180)	178)	(175)	179)
Net income attributable to Honeywell (adjusted)	5,811)	4,786)	5,720)	4,604)	6,322)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Honeywell International Inc., Financial Data: Reported vs. Adjusted

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Honeywell International Inc., adjusted financial ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net Profit Margin
Reported net profit margin	15.43%	14.00%	16.11%	14.64%	16.73%
Adjusted net profit margin	15.85%	13.49%	16.63%	14.11%	17.22%
Total Asset Turnover
Reported total asset turnover	0.60	0.57	0.53	0.51	0.63
Adjusted total asset turnover	0.60	0.57	0.54	0.51	0.63
Financial Leverage
Reported financial leverage	3.88	3.73	3.47	3.68	3.17
Adjusted financial leverage	3.48	3.37	3.13	3.38	2.92
Return on Equity (ROE)
Reported ROE	35.68%	29.74%	29.85%	27.23%	33.22%
Adjusted ROE	33.10%	26.05%	27.98%	24.36%	31.49%
Return on Assets (ROA)
Reported ROA	9.20%	7.97%	8.60%	7.40%	10.47%
Adjusted ROA	9.51%	7.74%	8.94%	7.21%	10.79%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Honeywell International Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Honeywell International Inc. adjusted total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Honeywell International Inc. adjusted financial leverage ratio increased from 2021 to 2022 and from 2022 to 2023.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Honeywell International Inc. adjusted ROE deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Honeywell International Inc. adjusted ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Honeywell International Inc., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Honeywell	5,658)	4,966)	5,542)	4,779)	6,143)
Net sales	36,662)	35,466)	34,392)	32,637)	36,709)
Profitability Ratio
Net profit margin¹	15.43%	14.00%	16.11%	14.64%	16.73%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Honeywell	5,811)	4,786)	5,720)	4,604)	6,322)
Net sales	36,662)	35,466)	34,392)	32,637)	36,709)
Profitability Ratio
Adjusted net profit margin²	15.85%	13.49%	16.63%	14.11%	17.22%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Net profit margin = 100 × Net income attributable to Honeywell ÷ Net sales
= 100 × 5,658 ÷ 36,662 = 15.43%

² Adjusted net profit margin = 100 × Adjusted net income attributable to Honeywell ÷ Net sales
= 100 × 5,811 ÷ 36,662 = 15.85%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Honeywell International Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net sales	36,662)	35,466)	34,392)	32,637)	36,709)
Total assets	61,525)	62,275)	64,470)	64,586)	58,679)
Activity Ratio
Total asset turnover¹	0.60	0.57	0.53	0.51	0.63
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Net sales	36,662)	35,466)	34,392)	32,637)	36,709)
Adjusted total assets	61,133)	61,854)	63,981)	63,826)	58,593)
Activity Ratio
Adjusted total asset turnover²	0.60	0.57	0.54	0.51	0.63

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Total asset turnover = Net sales ÷ Total assets
= 36,662 ÷ 61,525 = 0.60

² Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 36,662 ÷ 61,133 = 0.60

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Honeywell International Inc. adjusted total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Total assets	61,525)	62,275)	64,470)	64,586)	58,679)
Total Honeywell shareowners’ equity	15,856)	16,697)	18,569)	17,549)	18,494)
Solvency Ratio
Financial leverage¹	3.88	3.73	3.47	3.68	3.17
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets	61,133)	61,854)	63,981)	63,826)	58,593)
Adjusted total Honeywell shareowners’ equity	17,558)	18,369)	20,443)	18,902)	20,078)
Solvency Ratio
Adjusted financial leverage²	3.48	3.37	3.13	3.38	2.92

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Financial leverage = Total assets ÷ Total Honeywell shareowners’ equity
= 61,525 ÷ 15,856 = 3.88

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Honeywell shareowners’ equity
= 61,133 ÷ 17,558 = 3.48

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Honeywell International Inc. adjusted financial leverage ratio increased from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Honeywell	5,658)	4,966)	5,542)	4,779)	6,143)
Total Honeywell shareowners’ equity	15,856)	16,697)	18,569)	17,549)	18,494)
Profitability Ratio
ROE¹	35.68%	29.74%	29.85%	27.23%	33.22%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Honeywell	5,811)	4,786)	5,720)	4,604)	6,322)
Adjusted total Honeywell shareowners’ equity	17,558)	18,369)	20,443)	18,902)	20,078)
Profitability Ratio
Adjusted ROE²	33.10%	26.05%	27.98%	24.36%	31.49%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ ROE = 100 × Net income attributable to Honeywell ÷ Total Honeywell shareowners’ equity
= 100 × 5,658 ÷ 15,856 = 35.68%

² Adjusted ROE = 100 × Adjusted net income attributable to Honeywell ÷ Adjusted total Honeywell shareowners’ equity
= 100 × 5,811 ÷ 17,558 = 33.10%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Honeywell International Inc. adjusted ROE deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Honeywell	5,658)	4,966)	5,542)	4,779)	6,143)
Total assets	61,525)	62,275)	64,470)	64,586)	58,679)
Profitability Ratio
ROA¹	9.20%	7.97%	8.60%	7.40%	10.47%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Honeywell	5,811)	4,786)	5,720)	4,604)	6,322)
Adjusted total assets	61,133)	61,854)	63,981)	63,826)	58,593)
Profitability Ratio
Adjusted ROA²	9.51%	7.74%	8.94%	7.21%	10.79%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ ROA = 100 × Net income attributable to Honeywell ÷ Total assets
= 100 × 5,658 ÷ 61,525 = 9.20%

² Adjusted ROA = 100 × Adjusted net income attributable to Honeywell ÷ Adjusted total assets
= 100 × 5,811 ÷ 61,133 = 9.51%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Honeywell International Inc. adjusted ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Honeywell International Inc. (NASDAQ:HON)

Analysis of Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Deferred Tax Assets and Liabilities, Classification

Adjustments to Financial Statements: Removal of Deferred Taxes

Honeywell International Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Honeywell International Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)