Honeywell International Inc. (NYSE:HON)

Cash Flow Statement

Beginner level

The cash flow statement provides information about a company’s cash receipts and cash payments during an accounting period, showing how these cash flaws link the ending cash balance to the beginning balance shown on the company’s balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Honeywell International Inc., consolidated cash flow statement

US$ in millions

12 months ended	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Net income attributable to Honeywell	6,143	6,765	1,655	4,809	4,768
Depreciation	673	721	717	726	672
Amortization	415	395	398	304	211
(Gain) loss on sale of non-strategic businesses and assets	1	—	7	(178)	1
Repositioning and other charges	546	1,091	1,021	695	546
Net payments for repositioning and other charges	(376)	(652)	(628)	(625)	(537)
Pension and other postretirement income	(516)	(987)	(647)	(360)	(323)
Pension and other postretirement benefit payments	(78)	(80)	(106)	(143)	(122)
Stock compensation expense	153	175	176	184	175
Deferred income taxes	179	(586)	2,294	76	315
Excess tax benefits from share based payment arrangements	—	—	—	—	(81)
Other	(287)	(694)	1,642	194	(8)
Accounts receivable	11	(236)	(682)	(547)	211
Inventories	(100)	(503)	(259)	(18)	230
Other current assets	(430)	218	(568)	(106)	80
Accounts payable	118	733	924	254	(17)
Accrued liabilities	445	74	22	233	(667)
Changes in assets and liabilities, net of the effects of acquisitions and divestitures	44	286	(563)	(184)	(163)
Adjustments to reconcile net income attributable to Honeywell to net cash provided by operating activities	754	(331)	4,311	689	686
Net cash provided by operating activities	6,897	6,434	5,966	5,498	5,454
Expenditures for property, plant and equipment	(839)	(828)	(1,031)	(1,095)	(1,073)
Proceeds from disposals of property, plant and equipment	43	15	86	21	15
Increase in investments	(4,253)	(4,059)	(6,743)	(3,954)	(6,714)
Decrease in investments	4,464	6,032	4,414	3,681	6,587
Cash paid for acquisitions, net of cash acquired	(50)	(535)	(82)	(2,573)	(5,228)
Proceeds from sales of businesses, net of fees paid	—	—	—	296	1
Other	102	402	(218)	282	(102)
Net cash (used for) provided by investing activities	(533)	1,027	(3,574)	(3,342)	(6,514)
Proceeds from issuance of commercial paper and other short-term borrowings	14,199	23,891	13,701	18,997	12,992
Payments of commercial paper and other short-term borrowings	(14,199)	(24,095)	(13,532)	(21,461)	(8,727)
Proceeds from issuance of common stock	498	267	520	409	186
Proceeds from issuance of long-term debt	2,726	27	1,238	9,245	60
Payments of long-term debt	(2,903)	(1,330)	(292)	(2,839)	(880)
Excess tax benefits from share based payment arrangements	—	—	—	—	81
Repurchases of common stock	(4,400)	(4,000)	(2,889)	(2,079)	(1,884)
Cash dividends paid	(2,442)	(2,272)	(2,119)	(1,915)	(1,726)
Payments to purchase the noncontrolling interest	—	—	—	(238)	—
Pre-separation funding	—	2,801	—	269	—
Pre-spin borrowing	—	—	—	38	—
Spin-off cash	—	(179)	—	(38)	—
Other	(79)	(142)	(143)	(42)	—
Net cash provided by (used for) financing activities	(6,600)	(5,032)	(3,516)	346	102
Effect of foreign exchange rate changes on cash and cash equivalents	16	(201)	340	(114)	(546)
Net increase (decrease) in cash and cash equivalents	(220)	2,228	(784)	2,388	(1,504)
Cash and cash equivalents at beginning of period	9,287	7,059	7,843	5,455	6,959
Cash and cash equivalents at end of period	9,067	9,287	7,059	7,843	5,455

Based on: 10-K (filing date: 2020-02-14), 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).

Cash flow statement item	Description	The company
Net cash provided by operating activities	Amount of cash inflow (outflow) from operating activities, excluding discontinued operations. Operating activity cash flows include transactions, adjustments, and changes in value not defined as investing or financing activities.	Honeywell International Inc.’s net cash provided by operating activities increased from 2017 to 2018 and from 2018 to 2019.
Net cash (used for) provided by investing activities	Amount of cash inflow (outflow) of investing activities, excluding discontinued operations. Investing activity cash flows include making and collecting loans and acquiring and disposing of debt or equity instruments and property, plant, and equipment and other productive assets.	Honeywell International Inc.’s net cash (used for) provided by investing activities increased from 2017 to 2018 but then slightly decreased from 2018 to 2019.
Net cash provided by (used for) financing activities	Amount of cash inflow (outflow) of financing activities, excluding discontinued operations. Financing activity cash flows include obtaining resources from owners and providing them with a return on, and a return of, their investment; borrowing money and repaying amounts borrowed, or settling the obligation; and obtaining and paying for other resources obtained from creditors on long-term credit.	Honeywell International Inc.’s net cash provided by (used for) financing activities decreased from 2017 to 2018 and from 2018 to 2019.