Microsoft Excel LibreOffice Calc

Honeywell International Inc. (HON)

Adjustments to Financial Statements

Difficulty: Advanced

Adjustments to Current Assets

Honeywell International Inc., adjusted current assets

US$ in millions

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
As Reported
Current assets 24,362  26,002  23,058  20,053  22,191 
Adjustments
Add: Allowance for doubtful accounts 197  202  305  262  273 
Add: LIFO reserve1 39  39  65  116  168 
Less: Current deferred tax assets2 —  —  —  —  722 
After Adjustment
Adjusted current assets 24,598  26,243  23,428  20,431  21,910 

Based on: 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-09), 10-K (filing date: 2017-02-10), 10-K (filing date: 2016-02-12), 10-K (filing date: 2015-02-13).

1 LIFO reserve. See Details »

2 Current deferred tax assets. See Details »

Adjustments to Total Assets

Honeywell International Inc., adjusted total assets

US$ in millions

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
As Reported
Total assets 57,773  59,387  54,146  49,316  45,451 
Adjustments
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)1 789  1,040  1,017  1,007  1,078 
Add: Allowance for doubtful accounts 197  202  305  262  273 
Add: LIFO reserve2 39  39  65  116  168 
Less: Current deferred tax assets3 —  —  —  —  722 
Less: Non-current deferred tax assets4 382  236  347  283  404 
After Adjustment
Adjusted total assets 58,416  60,432  55,186  50,418  45,844 

Based on: 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-09), 10-K (filing date: 2017-02-10), 10-K (filing date: 2016-02-12), 10-K (filing date: 2015-02-13).

1 Operating lease right-of-use asset (before adoption of FASB Topic 842). See Details »

2 LIFO reserve. See Details »

3 Current deferred tax assets. See Details »

4 Non-current deferred tax assets. See Details »

Adjustments to Current Liabilities

Honeywell International Inc., adjusted current liabilities

US$ in millions

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
As Reported
Current liabilities 18,924  18,861  16,331  18,371  14,773 
Adjustments
Less: Current deferred tax liabilities (included in accrued liabilities)1 —  —  —  —  27 
Less: Current customer advances and deferred income 2,403  2,198  2,151  1,863  2,094 
Less: Current obligations for product warranties and product performance guarantees 243  307  351  355  332 
Less: Current repositioning reserves 566  508  322  335  284 
After Adjustment
Adjusted current liabilities 15,712  15,848  13,507  15,818  12,036 

Based on: 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-09), 10-K (filing date: 2017-02-10), 10-K (filing date: 2016-02-12), 10-K (filing date: 2015-02-13).

1 Current deferred tax liabilities (included in accrued liabilities). See Details »

Adjustments to Total Liabilities

Honeywell International Inc., adjusted total liabilities

US$ in millions

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
As Reported
Total liabilities 39,408  41,943  34,596  30,608  27,448 
Adjustments
Add: Operating lease liability (before adoption of FASB Topic 842)1 789  1,040  1,017  1,007  1,078 
Less: Current deferred tax liabilities (included in accrued liabilities)2 —  —  —  —  27 
Less: Non-current deferred tax liabilities3 1,713  2,894  486  558  236 
Less: Customer advances and deferred income 3,667  2,274  2,232  1,962  2,187 
Less: Obligations for product warranties and product performance guarantees 310  408  487  416  403 
Less: Repositioning reserves 566  513  331  350  315 
After Adjustment
Adjusted total liabilities 33,941  36,894  32,077  28,329  25,358 

Based on: 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-09), 10-K (filing date: 2017-02-10), 10-K (filing date: 2016-02-12), 10-K (filing date: 2015-02-13).

1 Operating lease liability (before adoption of FASB Topic 842). See Details »

2 Current deferred tax liabilities (included in accrued liabilities). See Details »

3 Non-current deferred tax liabilities. See Details »

Adjustments to Stockholders’ Equity

Honeywell International Inc., adjusted total Honeywell shareowners’ equity

US$ in millions

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
As Reported
Total Honeywell shareowners’ equity 18,180  17,276  19,369  18,283  17,657 
Adjustments
Less: Net deferred tax asset (liability)1 (1,331) (2,658) (139) (275) 863 
Add: Allowance for doubtful accounts 197  202  305  262  273 
Add: LIFO reserve2 39  39  65  116  168 
Add: Customer advances and deferred income 3,667  2,274  2,232  1,962  2,187 
Add: Obligations for product warranties and product performance guarantees 310  408  487  416  403 
Add: Repositioning reserves 566  513  331  350  315 
Add: Redeemable noncontrolling interest 7  5  3  290  219 
Add: Noncontrolling interest 178  163  178  135  127 
After Adjustment
Adjusted total Honeywell shareowners’ equity 24,475  23,538  23,109  22,089  20,486 

Based on: 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-09), 10-K (filing date: 2017-02-10), 10-K (filing date: 2016-02-12), 10-K (filing date: 2015-02-13).

1 Net deferred tax asset (liability). See Details »

2 LIFO reserve. See Details »

Adjustments to Capitalization Table

Honeywell International Inc., adjusted capitalization table

US$ in millions

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
As Reported
Commercial paper and other short-term borrowings 3,586  3,958  3,366  5,937  1,698 
Current maturities of long-term debt 2,872  1,351  227  577  939 
Long-term debt, excluding current maturities 9,756  12,573  12,182  5,554  6,046 
Total reported debt 16,214  17,882  15,775  12,068  8,683 
Total Honeywell shareowners’ equity 18,180  17,276  19,369  18,283  17,657 
Total reported capital 34,394  35,158  35,144  30,351  26,340 
Adjustments to Debt
Add: Operating lease liability (before adoption of FASB Topic 842)1 789  1,040  1,017  1,007  1,078 
Adjusted total debt 17,003  18,922  16,792  13,075  9,761 
Adjustments to Equity
Less: Net deferred tax asset (liability)2 (1,331) (2,658) (139) (275) 863 
Add: Allowance for doubtful accounts 197  202  305  262  273 
Add: LIFO reserve3 39  39  65  116  168 
Add: Customer advances and deferred income 3,667  2,274  2,232  1,962  2,187 
Add: Obligations for product warranties and product performance guarantees 310  408  487  416  403 
Add: Repositioning reserves 566  513  331  350  315 
Add: Redeemable noncontrolling interest 7  5  3  290  219 
Add: Noncontrolling interest 178  163  178  135  127 
Adjusted total Honeywell shareowners’ equity 24,475  23,538  23,109  22,089  20,486 
After Adjustment
Adjusted total capital 41,478  42,460  39,901  35,164  30,247 

Based on: 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-09), 10-K (filing date: 2017-02-10), 10-K (filing date: 2016-02-12), 10-K (filing date: 2015-02-13).

1 Operating lease liability (before adoption of FASB Topic 842). See Details »

2 Net deferred tax asset (liability). See Details »

3 LIFO reserve. See Details »

Adjustments to Revenues

Honeywell International Inc., adjusted net sales

US$ in millions

Microsoft Excel LibreOffice Calc
12 months ended Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
As Reported
Net sales 41,802  40,534  39,302  38,581  40,306 
Adjustments
Add: Increase (decrease) in customer advances and deferred income 1,393  42  270  (225) (29)
After Adjustment
Adjusted net sales 43,195  40,576  39,572  38,356  40,277 

Based on: 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-09), 10-K (filing date: 2017-02-10), 10-K (filing date: 2016-02-12), 10-K (filing date: 2015-02-13).

Adjustments to Reported Income

Honeywell International Inc., adjusted net income attributable to Honeywell

US$ in millions

Microsoft Excel LibreOffice Calc
12 months ended Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
As Reported
Net income attributable to Honeywell 6,765  1,655  4,809  4,768  4,239 
Adjustments
Add: Deferred income tax expense (benefit)1 (586) 2,294  76  315  132 
Add: Increase (decrease) in allowance for doubtful accounts (5) (70) 43  (11) 26 
Add: Increase (decrease) in LIFO reserve2 —  (26) (51) (52) 2 
Add: Increase (decrease) in customer advances and deferred income 1,393  42  270  (225) (29)
Add: Increase (decrease) in obligations for product warranties and product performance guarantees (98) (79) 71  13  (2)
Add: Increase (decrease) in repositioning reserves 53  182  (19) 35  (32)
Add: Other comprehensive income (loss), net of tax (1,206) 479  (179) (1,076) (2,277)
Add: Comprehensive income (loss), net of tax, attributable to noncontrolling interest 53  51  29  73  87 
After Adjustment
Adjusted net income attributable to Honeywell 6,369  4,528  5,049  3,840  2,146 

Based on: 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-09), 10-K (filing date: 2017-02-10), 10-K (filing date: 2016-02-12), 10-K (filing date: 2015-02-13).

1 Deferred income tax expense (benefit). See Details »

2 Increase (decrease) in LIFO reserve. See Details »