Honeywell International Inc. (HON) 2020年年度報告「NYSE」.pdf

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1、2 0 2 0 A N N U A L R E P O R T2020 SHAREOWNERS LETTERAs the early weeks of 2020 unfolded,it quickly became clear that we were going to face challenges unlike any thecompany had encountered in our history and hopefully,never will again.COVID-19 spread from nation to nation,key end markets faltered,a

2、nd we had to quickly adjust our cost base to maintain our footing.I frequently say to myteam that while easy economic conditions are far more fun than what we had to go through in 2020,its the toughestconditions that test us the most and enable us to grow stronger as leaders.In the face of the pande

3、mic one of themost disruptive events ever to affect our business I could not be prouder of Honeywells team and how weresponded to extremely difficult circumstances.Honeywell has earned a reputation for its ability to deliver in all economic cycles.We proved it during the GreatRecession,and we proved

4、 it time and again throughout multiple downturns and upsets in our markets.Last year,however,we demonstrated more than the ability to move quickly to control costs under deteriorating conditions.Wealso pivoted rapidly to bring solutions forward that the world needed.It was a very pleasant and gratif

5、ying surprise tosee how quickly Honeywells innovators brought forward new solutions that were desperately needed to fight thebattle with COVID-19.Whether we were expanding our personal protective equipment(PPE)manufacturing capacityor introducing innovative new products to clean aircraft and support

6、 vaccine distribution whether we weredeveloping technologies to make buildings healthier for owners and tenants or installing remote operations solutionsto allow our customers to keep their industrial facilities running safely we stepped up when the world needed usmost.While 2020 dealt us severe cha

7、llenges,we entered 2021 well-positioned for recovery,with a wide portfolio ofhighly desirable offerings.In addition,we continued to drive what we call the three transformations:Honeywell Connected Enterprise is digitally transforming the way our customers work through HoneywellForge,an enterprise pe

8、rformance management Software-as-a-Service(SaaS)offering.Honeywell Forgeaddresses the customer challenges of siloed data,enterprise complexity,and manual controls,enablingoperations that get better over time.In a matter of days,Honeywell Forge delivers value to customers usingtheir existing systems.

9、Our recently announced partnerships with SAP and Microsoft will further accelerateour software-industrial leadership.Honeywell Digital is an ongoing process to run our businesses and support functions more effectively withstandardized data sets,a robust IT infrastructure,and stronger governance.As a

10、 result,our businessleaders can access better information to support our customers more effectively.Integrated Supply Chain Transformation represents an end-to-end modernization of our supply chain thatmakes our manufacturing operations and distribution simpler and more responsive to customer needs

11、andchanges in our markets.SHAREOWNERS2020 was a rollercoaster ride for our share price.After dropping to just over$100 per share in late March,we ralliedto close the year at over$212 per share.In late August,we had another surprise the announcement of our returnto the Dow Jones Industrial Average af

12、ter a 12-year absence.Dow Jones decision reflects how important we are tothe economy and confidence in our strategic direction and ability to perform over time.Whether you look at the short-or long-term,our investors have benefited from consistently outstanding returnsmeasured against both peers and

13、 key indices.(See charts on the next page.)Outperformance Versus Multiple Benchmarks:1-,3-,5-,and 10-Year Time Periods6%4%65%128%5%2%51%161%11%24%85%212%18%49%103%267%23%54%140%423%1-Year3-Year5-Year10-YearMulti-Industry Peer MedianCompensation Peer MedianXLIS&P 500HoneywellAnnual Total Shareowner R

14、eturn PeformanceVersus Key Benchmarks12%6%5%6%1%10%-5%11%5%8%12%24%3%4%15%-2%4%3%13%-4%5%5%20102011201220132014201520162017201820192020vs.XLIvs.S&P 500Seed planting has always been an important key to our success.Even with the challenging 2020 environment,wenever stopped investing for growth and ret

15、urning capital to our shareowners.(See chart below.)Honeywell Capital Deployment 2015-2020$1.9$2.1$2.9$4.0$4.4$3.7$1.1$1.1$1.0$0.8$0.8$0.9$1.7$1.9$2.1$2.3$2.5$2.6$5.2$2.6$0.1$0.5$0.1$0.3*201520162017201820192020Share RepurchasesCapital ExpendituresDividendsM&A$9.9B$7.7B$6.1B$7.6B$7.8B$7.5B*Announced

16、$1.3 billion acquisition of Sparta SystemsWe made several strategic acquisitions near year-end,highlighted by the announced acquisition of Sparta Systemsin December.Sparta brings to our portfolio an artificial intelligence-enabled enterprise quality management softwareoffering,including a next-gener

17、ation SaaS platform.Sparta also enhances our strong position in life sciences.Spartahas a high degree of synergy with our Process Solutions and Honeywell Connected Enterprise businesses,and weare excited about the value we will provide to customers.In addition to aggressive capital deployment,we als

18、oinvested internally in high-return projects specificallyfocused on our expansion in PPE,which enabled us toestablish a beachhead in health care.(See chart to theright.)The average internal rate of return for our 2020growth capital projects,or those projects designed tointroduce new products or to i

19、ncrease our productioncapacity,is greater than 50%.Our growth investments will continue to pay dividendsfor many years to come as we expand our presence inthe health care and life sciences verticals.Capital Expenditures$839M$200MIncrementalGrowth Capex20192020$906MPANDEMIC RESPONSEFew,if any,compani

20、es in the world responded to the pandemic as comprehensively as Honeywell did across ourportfolio:In a matter of weeks rather than months or years,we expanded respirator manufacturing capacity in theU.S.,United Arab Emirates,India,U.K.,and China to help front-line medical workers battle the virus.We

21、also expanded production capacity for sensors,goggles,and shields.We rapidly launched a series of“healthy”solutions for a variety of industries that will help the world return towork,life,travel,and play.We introduced innovative offerings to clean aircraft cabins,conduct temperaturescreening,promote

22、 healthy buildings,and enable remote operations.We anticipated correctly that the development of COVID-19 vaccines would lead to a very high demand forglass vials,compounding the effects of an ongoing glass shortage.In response,we developed a packagingalternative called Aclar Edge,which offers an al

23、ternative to glass that is more durable,lighter,and lesssusceptible to damage.We formed partnerships to apply our manufacturing operations,logistics,and software expertise to supportand optimize mass vaccination events in Charlotte,and we are making those solutions available to otherlocalities.We do

24、nated more than 2 million masks to frontline workers and homeless shelters around the world.We shifted a number of chemical manufacturing lines to produce hand sanitizer and then we donated theoutput.COMMUNITIESEven while we helped fight the pandemic,we also stepped up to support our communities.In

25、Charlotte,ourheadquarters city,we launched a flagship small business fund to support center city businesses that needed to pivotto other business models or touchless service to keep thriving.To date,the fund has disbursed$3.6 million to 116businesses the vast majority of which are owned by minoritie

26、s,women,or veterans.In addition to COVID-19 relief,we supported a wide range of partners who reflect our values and our commitment toinclusion and diversity.We entered a five-year corporate sponsorship with the National Museum of African AmericanHistory and Culture in Washington,D.C.We began sponsor

27、ing the Carolina Youth Coalition,a nonprofit organizationthat prepares high-achieving,under-resourced high school students to get into,excel at,and graduate from college.We also expanded recruitment efforts at diversity conferences and historically Black colleges and universities.CUSTOMERS AND EMPLO

28、YEESIn the early days of COVID-19,it proved very difficult to operate our manufacturing centers,even though many ofour business segments are essential.We implemented a global,rigorous,daily focus on taking care of allmanufacturing employees by enforcing social distancing,implementing widespread test

29、ing,providing PPE andsanitizer stations,and adopting numerous other procedures to minimize the probability of infection.We monitoredthe various regulations being put into place in the more than 70 countries in which we operate.Responding to thoseregulations and resulting shutdowns required daily act

30、s of heroism.Our operational excellence coupled with theoutstanding dedication of our employees enabled us to limit site closures to approximately one day on averageacross our global site network.Our office-based employees also pivoted quickly as they transitioned to remote work.We shored up our IT

31、systemsin a little over a week to enable nearly 50,000 office workers to work from home without skipping a beat.To help colleagues who were facing personal challenges,we established a$10 million employee relief fund.We alsoassisted employees during this difficult year by:Covering employees COVID-rel

32、ated health care expenses;Supplementing employees health care with private care in certain regions;Airlifting infected employees from areas where the local health care infrastructure wasnt adequate;Suspending our accrual policy to provide earlier access to sick leave in the U.S.;Providing substantia

33、l financial assistance to families of employees who succumbed to the disease;andIssuing a special“thank you”payment to every direct manufacturing employee who was with us more thansix months in 2020.We launched a comprehensive online training program for all middle managers.We also introduced mandat

34、oryunconscious bias awareness training for all employees.Reflecting our emphasis on inclusion and diversity,weproduced global candidate slates that were 16%more diverse than the previous year.Across our managementranks,we increased diversity hiring by 11%.Two years ago,Honeywell launched the Womens

35、Advancement Program to pair rising female executives withcareer champions while providing them access to professional development and networking opportunities.We havenow developed a similar program for Black and Hispanic employees and other diverse groups.We also createdseveral new employee diversit

36、y networks with sponsorship by three company officers,including me.Our approach todiversity is end to end from recruiting to enhancing the employee experience to ensuring that all employees arerespected in the workplace and have every opportunity to contribute to their full potential.CLOSING THOUGHT

37、SAs we move into 2021,I want to thank two long-serving Board members who will retire in May,Lord Clive R.Hollickand Linnet F.Deily.Clive served on the Honeywell Board for nearly 18 years,with much of that time on theManagement Development and Compensation Committee.He brought to the Board invaluable

38、 expertise in areassuch as international markets,public policy,and trends in the U.K.and European markets;marketing and branding;and mergers and acquisitions,including in a private-equity context.He served for more than three decades as ChiefExecutive Officer of London-based United Business Media an

39、d its predecessor companies.Linnet served on the Honeywell Board for 15 years after serving as Deputy U.S.Trade Representative and U.S.Ambassador to the World Trade Organization and holding senior positions at The Charles Schwab Corp.and FirstInterstate Bank of Texas.She chaired the Corporate Govern

40、ance and Responsibility Committee for 10 years andserved on other committees,bringing exceptional insights into the international business environment,capitalmarkets,corporate finance and controls,government and public policy,and advanced technology platforms.I also wanted to acknowledge Honeywells

41、unique role in shaping a future that is safer and more sustainable for ourchildren and grandchildren.We recently announced our commitment to become carbon neutral in our operations andfacilities by 2035.We will achieve this through a combination of further investment in energy savings projects,conve

42、rsion to renewable energy sources,completion of capital improvement projects at our sites and in our fleet ofcompany vehicles,and utilization of credible carbon credits.These initiatives represent a continuation of thecompanys sustainability efforts since 2004,which have already driven a more than 9

43、0%reduction in thegreenhouse gas intensity of our operations and facilities.It is an understatement to say the year 2020 was like no other.The pandemic was a public health crisis,aneconomic crisis,and,for many people,a personal crisis.We extend our sympathy to all who were affected byCOVID-19.Despit

44、e Honeywells highly challenging end markets,we acted quickly and decisively to adjust our cost structure tomeet the new market realities,and we pivoted to new offerings in response to what the world needed.The people ofHoneywell displayed courage and agility to successfully meet the challenges of th

45、e pandemic and to deliver for ouremployees,customers,communities,and shareowners.While recognizing that difficulties remain,we are optimisticand energized by what we will accomplish in 2021 and beyond.Thank you for your continued trust in Honeywell.Sincerely,DARIUS ADAMCZYKChairman and Chief Executi

46、ve OfficerUNITED STATESSECURITIES AND EXCHANGE COMMISSIONWASHINGTON,D.C.20549Form 10-K ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934For the fiscal year ended December 31,2020OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 19

47、34For the transition period from toCommission file number 1-8974Honeywell International Inc.(Exact name of registrant as specified in its charter)Delaware22-2640650(State or other jurisdiction ofincorporation or organization)(I.R.S.EmployerIdentification No.)300 South Tryon StreetCharlotte,North Car

48、olina28202(Address of principal executive offices)(Zip Code)Registrants telephone number,including area code(704)627-6200Securities registered pursuant to Section 12(b)of the Act:Title of Each ClassTradingSymbolsName of each exchange on which registeredCommon Stock,par value$1 per share*HONThe New Y

49、ork Stock Exchange1.300%Senior Notes due 2023HON 23AThe New York Stock Exchange0.000%Senior Notes due 2024HON 24AThe New York Stock Exchange2.250%Senior Notes due 2028HON 28AThe New York Stock Exchange0.750%Senior Notes due 2032HON 32The New York Stock Exchange*The common stock is also listed on the

50、 London Stock Exchange.Securities registered pursuant to Section 12(g)of the Act:NoneIndicate by check mark if the Registrant is a well-known seasoned issuer,as defined in Rule 405 of the Securities Act.Yes No Indicate by check mark if the Registrant is not required to file reports pursuant to Secti

51、on 13 or Section 15(d)of the Exchange Act.Yes No Indicate by check mark whether the Registrant(1)has filed all reports required to be filed by Section 13 or 15(d)of the SecuritiesExchange Act of 1934 during the preceding 12 months(or for such shorter period that the Registrant was required to file s

52、uchreports),and(2)has been subject to such filing requirements for the past 90 days.Yes No Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submittedpursuant to Rule 405 of Regulation S-T(232.405 of this chapter)during the precedin

53、g 12 months(or for such shorter period thatthe registrant was required to submit such files).Yes No Indicate by check mark whether the Registrant is a large accelerated filer,an accelerated filer,a non-accelerated filer,a smallerreporting company,or an emerging growth company.See definitions of“larg

54、e accelerated filer,”“accelerated filer,”“smallerreporting company”and“emerging growth company”in Rule 12b-2 of the Exchange Act.Large accelerated filer Accelerated filer Non-accelerated filer Smaller reporting company Emerging growth company If an emerging growth company,indicate by check mark if t

55、he registrant has elected not to use the extended transition period forcomplying with any new or revised financial accounting standards provided pursuant to section 13(a)of the Exchange Act.Indicate by check mark whether the registrant has filed a report on and attestation to its managements assessm

56、ent of theeffectiveness of its internal control over financial reporting under Section 404(b)of the Sarbanes-Oxley Act(15 U.S.C.7262(b)bythe registered public accounting firm that prepared or issued its audit report.Yes No Indicate by check mark whether the Registrant is a shell company(as defined i

57、n Rule 12b-2 of the Act).Yes No The aggregate market value of the voting stock held by nonaffiliates of the Registrant was approximately$97.0 billion at June 30,2020.There were 695,501,159 shares of Common Stock outstanding at January 29,2021.Documents Incorporated by ReferencePart III:Proxy Stateme

58、nt for Annual Meeting of Shareowners to be held May 21,2021.TABLE OF CONTENTSORGANIZATION OF OUR ANNUAL REPORT ON FORM 10-KThe order and presentation of content in our Annual Report on Form 10-K(Form 10-K)differs from the traditionalU.S.Securities and Exchange Commission(SEC)Form 10-K format.We beli

59、eve that our format improvesreadability and better presents how we organize and manage our business.See Form 10-K Cross-Reference Indexfor a cross-reference to the traditional SEC Form 10-K format.PageCautionary Statement About Forward-Looking Statements1Business2Selected Financial Data8Managements

60、Discussion and Analysis of Financial Condition and Results of Operations9Risk Factors24Quantitative and Qualitative Disclosures About Market Risks32Liquidity and Capital Resources33Critical Accounting Estimates38Other Matters41Information About our Executive Officers42Unresolved Staff Comments43Prop

61、erties43Legal Proceedings43Mine Safety Disclosures43Market for Registrants Common Equity,Related Stockholder Matters and Issuer Purchases of EquitySecurities44Financial Statements and Supplementary Data46Changes in and Disagreements with Accountants on Accounting and Financial Disclosure114Controls

62、and Procedures114Managements Report on Internal Control Over Financial Reporting114Other Information114Directors,and Executive Officers and Corporate Governance115Executive Compensation115Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters115Certain Relatio

63、nships and Related Transactions and Director Independence117Principal Accounting Fees and Services117Exhibits and Financial Statement Schedules117Form 10-K Summary117Signatures123Form 10-K Cross-Reference Index125CAUTIONARY STATEMENT ABOUT FORWARD-LOOKINGSTATEMENTSWe describe many of the trends and

64、other factors that drive our business and future results in the section titledManagements Discussion and Analysis of Financial Condition and Results of Operations and in other parts of thisreport(including under the section titled Risk Factors).Such discussions contain forward-looking statements wit

65、hinthe meaning of Section 21E of the Securities Exchange Act of 1934,as amended(the Exchange Act).Forward-looking statements are those that address activities,events or developments that management intends,expects,projects,believes or anticipates will or may occur in the future.They are based on man

66、agements assumptions andassessments in light of past experience and trends,current economic and industry conditions,expected futuredevelopments and other relevant factors.They are not guarantees of future performance,and actual results,developments and business decisions may differ significantly fro

67、m those envisaged by our forward-lookingstatements.We do not undertake to update or revise any of our forward-looking statements.Our forward-lookingstatements are also subject to risks and uncertainties,including the impact of the coronavirus pandemic(COVID-19),that can affect our performance in bot

68、h the near-and long-term.These forward-looking statements should beconsidered in light of the information included in this Form 10-K,including,in particular,the factors discussed withinthe section titled Risk Factors.Such factors may be revised or supplemented in subsequent reports on Forms 10-Qand

69、8-K.1 Honeywell International,Inc.BUSINESSHoneywell International Inc.(Honeywell or the Company)invents and commercializes technologies that addresssome of the worlds most critical challenges around energy,safety,security,air travel,productivity and globalurbanization.As a diversified technology and

70、 manufacturing company,we are uniquely positioned to blend physicalproducts with software to serve customers worldwide with aerospace products and services,energy efficientproducts and solutions for businesses,specialty chemicals,electronic and advanced materials,process technologyfor refining and p

71、etrochemicals,and productivity,sensing,safety and security technologies for buildings andindustries.Our products and solutions enable a safer,more comfortable and more productive world,enhancing thequality of life of people around the globe.The Honeywell brand dates back to 1906,and the Company wasi

72、ncorporated in Delaware in 1985.Our Annual Report on Form 10-K,Quarterly Reports on Form 10-Q,Current Reports on Form 8-K and anyamendments to those reports,are available free of charge on our website()under the headingInvestors(see SEC Filings)immediately after they are filed with,or furnished to,t

73、he SEC.In addition,in this Form10-K,the Company incorporates by reference certain information from its definitive Proxy Statement for the 2021Annual Meeting of Stockholders,which we expect to file with the SEC on or about April 9,2021(the ProxyStatement),and which will also be available free of char

74、ge on our website.MAJOR BUSINESSESWe globally manage our business operations through four segments:Aerospace,Honeywell Building Technologies,Performance Materials and Technologies,and Safety and Productivity Solutions.Financial information related to oursegments is included in Note 23 Segment Financ

75、ial Data of Notes to Consolidated Financial Statements.The majorproducts and services,including Honeywell Forge solutions supported by Honeywell Connected Enterprise,customers,uses and key competitors of each of our segments are:AEROSPACEAerospace is a leading global supplier of products,software an

76、d services for aircrafts that it sells to originalequipment manufacturers(OEM)and other customers in a variety of end markets including:air transport,regional,business and general aviation aircraft,airlines,aircraft operators and defense and space contractors.Aerospaceproducts and services include a

77、uxiliary power units,propulsion engines,environmental control systems,integratedavionics,wireless connectivity services,electric power systems,engine controls,flight safety,communications,navigation hardware,data and software applications,radar and surveillance systems,aircraft lighting,managementan

78、d technical services,advanced systems and instruments,satellite and space components,aircraft wheels andbrakes,repair and overhaul services and thermal systems.Aerospace also provides spare parts,repair,overhauland maintenance services(principally to aircraft operators)for the aftermarket.Honeywell

79、Forge solutions areleveraged by our customers as tools to turn data into predictive maintenance and predictive analytics to enablebetter fleet management and make flight operations more efficient.HONEYWELL BUILDING TECHNOLOGIESHoneywell Building Technologies is a leading global provider of products,

80、software,solutions and technologies thatenable building owners and occupants to ensure their facilities are safe,energy efficient,sustainable and productive.Honeywell Building Technologies products and services include advanced software applications for building controland optimization;sensors,switc

81、hes,control systems and instruments for energy management;access control;videosurveillance;fire products;remote patient monitoring systems;and installation,maintenance and upgrades ofsystems.Honeywell Forge solutions enable our customers to digitally manage buildings,connecting data fromdifferent as

82、sets to enable smart maintenance,improve building performance and even protect from incomingsecurity threats.Honeywell International,Inc.2PERFORMANCE MATERIALS AND TECHNOLOGIESPerformance Materials and Technologies is a global leader in developing and manufacturing high-qualityperformance chemicals

83、and materials,process technologies and automation solutions.The segment is comprised ofProcess Solutions,UOP and Advanced Materials.Process Solutions provides automation control,instrumentation,advanced software and related services for the oil and gas,refining,pulp and paper,industrial power genera

84、tion,chemicals and petrochemicals,biofuels,life sciences,and metals,minerals and mining industries.Through its smartenergy products,Process Solutions enables utilities and distribution companies to deploy advanced capabilities toimprove operations,reliability and environmental sustainability.UOP pro

85、vides process technology,products,including catalysts and adsorbents,equipment,and consulting services that enable customers to efficiently producegasoline,diesel,jet fuel,petrochemicals and renewable fuels for the petroleum refining,gas processing,petrochemical,and other industries.Advanced Materia

86、ls manufactures a wide variety of high-performance products,including materials used to manufacture end products such as bullet-resistant armor,nylon,computer chips andpharmaceutical packaging,and provides reduced and low global-warming-potential materials based on hydrofluoro-olefin technology.In t

87、he industrial environment,Honeywell Forge solutions enable integration and connectivity toprovide a holistic view of operations and turn data into clear actions to maximize productivity and efficiency.Honeywell Forges cybersecurity capabilities help identify risks and act on cyber-related incidents,

88、together enablingimproved operations and protecting processes,people and assets.SAFETY AND PRODUCTIVITY SOLUTIONSSafety and Productivity Solutions is a leading global provider of products and software that improve productivity,workplace safety and asset performance to customers around the globe.Safe

89、ty products include personal protectionequipment(PPE),apparel,gear,and footwear designed for work,play and outdoor activities;gas detectiontechnology;and cloud-based notification and emergency messaging.Productivity Solutions products and servicesinclude mobile devices and software for computing,dat

90、a collection and thermal printing;supply chain andwarehouse automation equipment,software and solutions;custom-engineered sensors,switches and controls forsensing and productivity solutions;and software-based data and asset management productivity solutions.Honeywell Forge solutions digitally automa

91、te processes to improve efficiency while reducing downtime and safetycosts.COMPETITIONWe are subject to competition in substantially all product and service areas.Some of our key competitors include butare not limited to:Aerospace:Garmin,Raytheon Technologies,Safran and ThalesHoneywell Building Tech

92、nologies:Carrier Global,Johnson Controls,Schneider Electric and SiemensPerformance Materials and Technologies:ABB,Albemarle,Arkema,BASF,Dupont,Emerson Electric,Exterran,Grace and YokogawaSafety and Productivity Solutions:3M,Kion Group,MSA Safety Incorporated,TE Connectivity and ZebraTechnologiesOur

93、businesses compete on a variety of factors such as performance,applied technology,product innovation,product recognition,quality,reliability,customer service,delivery,and price.Brand identity,service to customers andquality are important competitive factors for our products and services.Our products

94、 face considerable pricecompetition.While our competitive position varies among our products and services,we are a significant competitorin each of our major product and service classes.3 Honeywell International,Inc.EXECUTIVE SUMMARYDespite a challenging 2020,we continued to deliver on our financial

95、 commitments and create long-term shareownervalue.Although sales declined 11%to$32.6 billion,our differentiated solutions delivered double-digit sales growth inthe defense and space,warehouse automation,PPE and recurring connected software businesses.We adapted toapply Honeywells capabilities toward

96、 addressing the COVID-19 challenges of our customers around the world.Ourexecution through the downturn demonstrated our ability to move quickly and decisively to reduce fixed costs,ensure liquidity,invest in growth,and position ourselves for recovery,while at the same time,remaining focused onour t

97、hree transformation initiatives Honeywell Connected Enterprise,Honeywell Digital,and Integrated SupplyChain.We maintained our commitment to create long-term shareowner value and,despite the downturn,we deployed$7.5 billion to capital expenditures,dividends,share repurchases and mergers and acquisiti

98、ons,which wasapproximately$1.3 billion in excess of our operating cash flow for the year.Further,we improved our cash andshort-term investments by$4.8 billion,which provided stability as well as opportunity for investment duringchallenging times.As we look forward,we intend to continue deploying cap

99、ital to high-return opportunities,including software andservices with recurring revenue streams,positioning our business for future growth.Orders for our warehouseautomation,PPE,and healthy building solutions remain strong,and we carry a robust backlog of$26.4 billion as ofDecember 31,2020.We are a

100、leading software-industrial company committed to introducing state of the arttechnology solutions to improve efficiency,productivity and safety in high growth businesses in broad-based,attractive industrial end markets.BUSINESS OBJECTIVESOur businesses are focused on the following objectives:Driving

101、 profitable growth by delivering innovative products through research and development andtechnological excellence,and through continued enhancement of our footprint in high growth regions;Continuing to execute on our strategy to be a premier software-industrial company,including the ongoingexpansion

102、 of Honeywell Forge connected solutions for aircraft,buildings,cybersecurity,plants,and workersand driving a recurring revenue model across the Company.Honeywell Forge provides EnterprisePerformance Management Software-as-a-Service solutions to help drive operational excellence for ourcustomers,coll

103、ecting operational data from various assets and organizing data into an ecosystem where itcan be useful;Expanding margins by optimizing the Companys performance through the Integrated Supply Chain andHoneywell Digital transformation initiatives,commercial excellence,repositioning,and other manufactu

104、ringand operational process improvements;Executing disciplined portfolio management through rigorous merger and acquisition,divestiture,andintegration processes to deliver growth and shareholder value;Controlling corporate costs,including costs incurred for asbestos and environmental matters,and pen

105、sionand other post-retirement benefits;andIncreasing availability of capital through strong cash flow generation and conversion from effective workingcapital management and proactive management of debt to enable the Company to strategically deploycapital for acquisitions,dividends,share repurchases

106、and capital expenditures.BACKLOGOur backlog represents the estimated remaining value of work to be performed under firm contracts.Backlog isequal to our remaining performance obligations under the contracts that meet the guidance on revenue fromcontracts with customers as discussed in Note 3 Revenue

107、 Recognition and Contracts with Customers of Notes toConsolidated Financial Statements.Backlog was$26,376 million and$25,612 million at December 31,2020 and2019.We expect to recognize approximately 55%of our remaining performance obligations as revenue in 2021,andthe remaining balance thereafter.Hon

108、eywell International,Inc.4U.S.GOVERNMENT SALESThe Company,principally through our Aerospace segment,sells to the U.S.Government acting through its variousdepartments and agencies and through prime contractors,including the U.S.Department of Defense(as both aprime contractor and subcontractor).We do

109、not expect our overall operating results to be significantly affected byany proposed changes in 2021 federal defense spending due to the varied mix of the government programs whichimpact us(OEM production,engineering development programs,aftermarket spares and repairs and overhaulprograms),as well a

110、s our diversified customer base.U.S.Government SalesYears Ended December 31,202020192018Sales to the U.S.Department of Defense$3,661$3,491$2,832Sales to other U.S.Government departments and agencies557566571Total Sales to the U.S.Government$4,218$4,057$3,403INTERNATIONAL OPERATIONSWe engage in manuf

111、acturing,sales,service and research and development globally.U.S.exports and non-U.S.manufactured products are significant to our operations.U.S.exports represented 12%of our total sales in 2020,15%in 2019 and 13%in 2018.Non-U.S.manufactured products and services,mainly in Europe and Asia,were 40%of

112、 our total sales in 2020,40%in 2019 and 43%in 2018.Manufactured Products and Systems andPerformance of ServicesYear Ended December 31,2020AerospaceHoneywellBuildingTechnologiesPerformanceMaterials andTechnologiesSafety andProductivitySolutions(%of Segment Sales)U.S.exports22%2%13%2%Non-U.S.manufactu

113、red products/services15%65%58%37%Information related to risks related to our foreign operations is included in the section titled Risk Factors under thecaption“Macroeconomic and Industry Risks.”RAW MATERIALSThe principal raw materials used in our operations are readily available.Although we occasion

114、ally experiencedisruption in raw materials supply,we experienced no significant problems in the purchase of key raw materials orcommodities in 2020.We are not dependent on any one supplier for a material amount of our raw materials.Prices of certain key raw materials,including copper,fluorspar,tungs

115、ten salts,ethylene,aluminum,andmolybdenum in Performance Materials and Technologies and nickel,steel,titanium and other metals in Aerospace,are expected to fluctuate.We offset raw material cost increases with formula-driven or long-term supply agreements,price increases and hedging activities where

116、feasible.We do not presently anticipate that a shortage of rawmaterials will cause any material adverse impacts during 2021.PATENTS,TRADEMARKS,LICENSES AND DISTRIBUTION RIGHTSOur segments are not dependent upon any single patent or related group of patents,trademarks,or any licenses ordistribution r

117、ights.In our judgment,our intellectual property rights are adequate for the conduct of our business.Webelieve that,in the aggregate,the rights under our patents,trademarks,licenses and distribution rights are generallyimportant to our operations,but we do not consider any individual patent,trademark

118、 or any licensing or distributionrights related to a specific process or product to be of material importance in relation to our total business.5 Honeywell International,Inc.REGULATIONSThe Companys operations are subject to various federal,state,local and foreign government regulations,includingrequ

119、irements regarding the protection of human health and the environment.Our policies,practices and proceduresare designed to prevent unreasonable risk of environmental damage,and of resulting financial liability,in connectionwith our business.Some risk of environmental damage is,however,inherent in so

120、me of our operations andproducts,as it is with other companies engaged in similar businesses.We engage in the handling,manufacturing,use and disposal of many substances classified as hazardous by one ormore regulatory agencies.Our policies,practices and procedures are designed to prevent unreasonabl

121、e risk ofenvironmental damage and personal injury,and to ensure that our handling,manufacture,use and disposal of thesesubstances meet or exceed environmental and safety laws and regulations.It is possible that future knowledge orother developments,such as improved capability to detect substances in

122、 the environment or increasingly strictenvironmental laws and standards and enforcement policies,could bring into question our current or past handling,manufacture,use or disposal of these substances.Among other environmental requirements,we are subject to the Federal Superfund and similar state and

123、 foreignlaws and regulations,under which we have been designated as a potentially responsible party that may be liable forcleanup costs associated with current and former operating sites and various hazardous waste sites,some of whichare on the U.S.Environmental Protection Agencys National Priority

124、List.While there is a possibility that aresponsible party might be unable to obtain appropriate contribution from other responsible parties,we do notanticipate having to bear significantly more than our proportional share in multi-party situations taken as a whole.We do not believe that Federal,Stat

125、e and local provisions regulating the discharge of materials into the environment,or otherwise relating to the protection of the environment,or any existing or pending climate change legislation,regulation,or international treaties or accords are reasonably likely to have a material effect in the fo

126、reseeable futureon the Companys business and we will continue to monitor emerging developments in this area.Beyond our compliance requirements with environmental regulations,compliance with other government regulationshas not had,and based on laws and regulations currently in effect,is not expected

127、to have a material effect on theCompanys capital expenditures,earnings or competitive position.See section titled Risk Factors for additionalinformation on government regulation that could impact our business.HUMAN CAPITAL MANAGEMENTWe believe a commitment to and investment in human capital manageme

128、nt enables better decision making,helpsus build competitive advantage,and furthers our long-term success.As of December 31,2020,we employedapproximately 103,000 employees across 70 countries,41,000 of whom are in the United States.Human capitalmanagement is the key driver of our performance culture,

129、which enables our workforce to respond to the fast-changing needs of our customers.Our performance culture is defined by a set of Honeywell Behaviors(Have aPassion for Winning,Be a Zealot for Growth,Think Big Then Make It Happen,Act with Urgency,Be Courageous,Become Your Best,Be Committed,and Build

130、Exceptional Talent),which reflect the bold,entrepreneurial spirit of ouremployees while emphasizing our goal to operate with speed and precision.At their foundation is a commitment toIntegrity and Ethics,Inclusion and Diversity,and Workplace Respect,fundamental values that underlie everythingwe do.O

131、ur commitment to these fundamental values and the Honeywell Behaviors starts at the top with a diverse Board ofDirectors and executive management team,who represent a broad spectrum of backgrounds and perspectives.Webelieve that the diversity of our current Board of Directors(four women,two Hispanic

132、s,and two African Americans)and the diversity of Honeywells executive leadership(more than half of the Companys nine executive officers isdiverse by ethnic background or gender)supports our evolving business strategy and is a testament to Honeywellsongoing commitment to hiring,developing,and retaini

133、ng diverse talent.The Companys commitment to Inclusionand Diversity enables better decision-making,helps build competitive advantages,and furthers long-term success.In 2020,the Company established a Global Inclusion and Diversity Steering Committee co-sponsored by ourChairman and CEO,Senior Vice Pre

134、sident and General Counsel,and Senior Vice President and Human Resourcesand fortified our inclusion and diversity governance structure by embedding Inclusion and Diversity Councils in eachof our business groups.The re-designed governance structure provides a scalable model that supports our sixaffin

135、ity group employee networks for women,Black,Hispanic,veteran,LGBTQ,and disabled employees andfacilitates the introduction of new networks to reflect the diverse characteristics of our workforce.These networksHoneywell International,Inc.6are designed to provide training and development opportunities

136、and expand internal networks for promotionalopportunities.In addition,our people managers are expected to model behaviors that promote a culture that is open and inclusivefor all employees.We help managers develop this skill as they do any other leadership skill,though trainingprograms,interactive l

137、earning and real time events,including the hiring and talent review processes.Our LeadershipEdge program provides training in core management skills to more than 13,000 leaders across the organization.Training programs are available to all employees through our internal learning and development plat

138、form,whichassigns curriculum tailored to an employees job responsibilities.Employees can also access additional trainingson-demand to continue to enhance their skills.This year,we also deployed a mandatory unconscious bias trainingprogram to our global workforce as a supplement to their other learni

139、ng opportunities.Our internal talent acquisition and management platform is a key component to recruiting,hiring,and developingtop-performing talent.Our hiring practices consider a diverse slate of candidates and our hiring managers areprovided training and toolkits to reinforce their role in bringi

140、ng diverse talent into the Company.Further,we partnerwith top academic institutions and external professional organizations to enhance the diversity of our workforce toattract and retain top talent.Our talent review process requires our people managers to have quarterly careerdiscussions with each m

141、ember of their teams to discuss the best opportunity for growth and development,whichenhances our identification of candidates for internal promotion and succession planning.Finally,our Code of Business Conduct establishes the baseline requirements of our integrity and complianceprogram and promotes

142、 an environment where everyone is treated ethically and with respect.It outlines our pledge torecognize the dignity of each individual,respect each employee,provide compensation and benefits that arecompetitive,promote self-development through training,and value diversity of perspectives and ideas.A

143、llemployees must complete Code of Business Conduct training and,where permitted by law,must also certify eachyear that they will comply with the Code.In 2020,we received certifications from 100%of officers and employeeswhere permitted by law.Overall,we believe our culture,along with our internal too

144、ls and initiatives,enable us to effectively execute ourhuman capital strategy.For discussion on the risks relating to our inability to attract and retain top-performing talent,please see section titled Risk Factors.7 Honeywell International,Inc.SELECTED FINANCIAL DATAThis selected financial data sho

145、uld be read in conjunction with the Companys Consolidated Financial Statementsand related Notes included elsewhere in this Annual Report as well as the section Managements Discussion andAnalysis of Financial Condition and Results of Operations.Years Ended December 31,202020192018(1)(2)2017(1)2016(Do

146、llars in millions,except per share amounts)Results of OperationsNet sales$32,637$36,709$41,802$40,534$39,302Net income attributable to Honeywell4,7796,1436,7651,5454,812Earnings Per Common ShareEarnings from operations:Basic6.798.529.102.036.30Assuming dilution6.728.418.982.006.21Dividends per share

147、3.633.363.062.742.45Balance Sheet DataProperty,plant and equipmentnet5,5705,3255,2965,9265,793Total assets64,58658,67957,77359,47054,566Short-term debt6,0424,8926,4585,3093,593Long-term debt16,34211,1109,75612,57312,182Total debt22,38416,00216,21417,88215,775Redeemable noncontrolling interest77753Sh

148、areowners equity17,79018,70618,35816,66518,883(1)2018 and 2017 Net Income attributable to Honeywell and Earnings Per Common Share were impacted by theU.S.Tax Cuts and Jobs Act.(2)The results of operations for the Transportation Systems and Homes and Global Distribution businesses areincluded in the

149、Consolidated Statement of Operations through the effective dates of the respective spin-offs,which occurred in 2018.Honeywell International,Inc.8MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIALCONDITION AND RESULTS OF OPERATIONS(Dollars in tables and graphs in millions)The following Managements Disc

150、ussion and Analysis of Financial Condition and Results of Operations is intendedto help the reader understand the results of operations and financial condition of Honeywell International Inc.and itsconsolidated subsidiaries(Honeywell or the Company)for the three years ended December 31,2020.All refe

151、rencesto Notes relate to Notes to Consolidated Financial Statements in the section titled Financial Statements andSupplementary Data.On October 1,2018,we completed the tax-free spin-off to Honeywell shareowners of our Transportation Systemsbusiness,previously part of Aerospace,into a standalone publ

152、icly-traded company,Garrett Motion Inc.(Garrett).On October 29,2018,we completed the tax-free spin-off to Honeywell shareowners of our Homes and GlobalDistributionbusiness,previouslypartofHomeandBuildingTechnologies(renamedHoneywellBuildingTechnologies following the spin-off),into a standalone publi

153、cly-traded company,Resideo Technologies,Inc.(Resideo).We removed the assets and liabilities associated with Garrett and Resideo from our Consolidated Balance Sheet asof the effective dates of the respective spin-offs.We included the results of operations for Garrett and Resideo in ourConsolidated St

154、atement of Operations through the effective dates of the respective spin-offs.Total sales attributableto these spin-offs were$6.6 billion for the year ended December 31,2018.A detailed discussion of the prior year 2019 to 2018 year-over-year changes are not included herein and can befound in the Man

155、agements Discussion and Analysis of Financial Condition and Results of Operations section in the2019 Annual Report on Form 10-K filed February 14,2020.COVID-19 UPDATEIn December 2019,a novel strain of coronavirus(COVID-19)was identified in Asia.Over the next several months,COVID-19 quickly spread ac

156、ross the world.In March 2020,the World Health Organization declared COVID-19 aworldwide pandemic.As of December 31,2020,the virus continues to spread and many countries are experiencinga resurgence in infection rates.Although vaccines have recently been made available,the availability anddistributio

157、n of the vaccines continue to provide challenges.Governments took unprecedented actions to contain the spread of COVID-19,temporarily shutting downnon-essential businesses,issuing stay at home or“shelter in place”orders and asking citizens to avoid allnon-essential travel.In certain situations,gover

158、nments closed borders and issued mandatory quarantines.Companies were asked,and in many cases were required,to allow non-essential employees to work remotely.Consumer spending declined,global travel demand declined significantly,and the world entered a global recession.These events impacted our busi

159、ness operations in multiple ways.In the first quarter of 2020,we quickly respondedto the changing environment.In January 2020,we implemented policies in select countries within Asia to restricttravel and require employees to work from home for all roles that allow for remote work.In March 2020,weexp

160、anded this work from home policy to include our employees worldwide.We introduced appropriate safety andhygiene protocols to enable our manufacturing employees to operate safely through the pandemic.We activelymonitored the changing government rules and regulations for each of our locations worldwid

161、e.We remain cautious as many factors remain unpredictable,including the increasing rate of COVID-19 infections.Wecontinue to monitor COVID-19 infection rates globally and acknowledge the risk of new surges in COVID-19infections.We prepared procedures for the phased return of our employees to office

162、sites and trained our local site leaders inthe appropriate safety and hygiene protocols.As of December 31,2020,all of our manufacturing sites continue tooperate and,outside of India,most of our employees in Asia have returned to the workplace in some capacity.Wealso returned small numbers of workers

163、 to select office sites within Europe and North America.In many countries,including the U.S.,most of our non-manufacturing employees continue to work from home(for all roles that allow forremote work).9 Honeywell International,Inc.The global recession resulted in a slow-down in demand for many of th

164、e products and services that we offer.Theimpact on each of our businesses is outlined below:Aerospace The decline in global travel negatively impacted many of our customers,resulting in lowerdemand for our products from OEMs and negatively impacted demand for our commercial aftermarketbusinesses.As

165、a result,this segments sales and profits declined for the year ended December 31,2020,compared to the year ended December 31,2019.Performance Materials and Technologies Many of our customers operate in the oil and gas industry.The decline in global travel,coupled with excessive oil and gas supply,ne

166、gatively impacted many of ourcustomers and resulted in lower demand for our products.As a result,this segments sales and profitsdeclined for the year ended December 31,2020,compared to the year ended December 31,2019.Honeywell Building Technologies Our customers own or manage buildings in a variety

167、of industriesincluding commercial real estate,hospitality,government,healthcare,banking and education.The globalrecession impacted many of these industries,resulting in a reduction of discretionary spending.As a result,this segments sales and profits declined for the year ended December 31,2020,comp

168、ared to the yearended December 31,2019.Safety and Productivity Solutions The global pandemic created significant demand for our respiratoryPPE and warehouse automation driving increases in this segments sales and profits for the year endedDecember 31,2020,compared to the year ended December 31,2019.

169、As a result of the slowdown in demand for our products,we implemented several cost reduction programs acrossour enterprise.We canceled our 2020 merit increases and reduced executive and Board of Director compensation.We initiated reduced work schedules across the company and implemented permanent ce

170、nsus reductions.We also took several steps to secure additional liquidity.In March 2020,we entered into a$6.0 billion Delayed DrawTerm Loan Agreement.In May 2020,we completed a public Senior Notes offering,which provided$3.0 billion ofavailable liquidity and permanently reduced the undrawn commitmen

171、ts under the Delayed Draw Term LoanAgreement by$3.0 billion.In June 2020,we drew on the remaining$3.0 billion of commitments under the DelayedDraw Term Loan Agreement.In August 2020,we completed a public Senior Notes offering,which provided$3.0 billion of available liquidity and was used to repay th

172、e outstanding principal amount of$3.0 billion under theDelayed Draw Term Loan Agreement.As of December 31,2020,there are no outstanding borrowings orcommitments remaining under the Delayed Draw Term Loan Agreement.Further,we held$15.2 billion of availablecash and cash equivalents,including short-ter

173、m investments.We continue to monitor and respond to the changing conditions created by the pandemic.Employee Health,Safety,and Economic WellnessWe continue to monitor the COVID-19 situation and its impacts globally.We are prioritizing the health and safety ofour employees.Out of an abundance of caut

174、ion for the health of our employees and to support local governmentinitiatives to stem the spread of the virus,we implemented several precautions at various sites around the world atall times in compliance with local government requirements and Centers for Disease Control and Prevention(CDC)guidelin

175、es.These include,but are not limited to:Limiting visitor site access to business-essential purposes;Introducing screening checks at certain sites where permissible or mandated;Enabling employees to work from home wherever and whenever required or appropriate;Continuously updating travel guidance,acc

176、ording to latest developments;andComplying with all local health authority guidance or regulations and our own protocols,including requestingemployees to comply with self-quarantine requirements whenever advisable.We have taken a number of measures to support our employees during these difficult tim

177、es.We extended medicalbenefits globally to cover out-of-pocket costs associated with testing for coronavirus,and for those on our U.S.company medical plans,we are also covering treatment costs.In Mexico,we introduced a medical benefit foremployees at lower compensation levels to ensure access to pri

178、vate medical treatment.In the U.S.,we changed oursick leave plan for non-exempt employees to make more sick time available earlier in the year if it is needed.Weestablished a$10 million company-funded relief fund targeting employees worldwide at lower compensation levels,especially those on reduced

179、work hours who did not receive high levels of income replacement from unemploymentor other government assistance.Honeywell International,Inc.10In addition to the measures to assist our employees,Honeywell contributed$2 million to establish a Small BusinessInnovation Fund in Charlotte to help our loc

180、al economy.The fund helps storefront businesses with 50 or feweremployees make investments in new technologies and business models to adjust to the realities of operating in theCOVID-19 environment.The fund prioritizes businesses owned by women,minorities and veterans.Our Commitment to Public Health

181、In a partnership with the State of North Carolina and other local businesses,we announced a goal to deliver 1 millionCOVID-19 vaccines in North Carolina by July 4,2021.In Phoenix,where our Aerospace business is headquartered,we will sponsor a week-long vaccination program in February 2021.In additio

182、n,Honeywell funded the provision ofapproximately 10 million meals and a months supply of hygiene kits to families in India suffering hardships due tothe crisis.As we produce critical worker safety gear such as face masks,gloves,goggles,safety suits,and protective footwear,we play an essential role i

183、n the health and well-being of people and economies.To date,Honeywell has donatedmore than 2 million masks to frontline workers across multiple regions.Our customers and communities aredepending on us more than ever to deliver for them and we are committed to supporting the safety of ouremployees,cu

184、stomers and fellow citizens around the world.We are investing in new production facilities and continue to expand existing facilities to increase production ofessential PPE products.We will bring these products to market as quickly as possible.We are committed tohealthcare professionals,first respon

185、ders,distributors and other stakeholders in an effort to ensure our PPEproducts are being placed quickly and cost-effectively in the hands of those most in need.We announced our new capacity in the U.S.to make N95 masks,with production lines added in Rhode Island andArizona that will collectively pr

186、oduce 40 million masks each month to support health,safety,and response workersglobally.In addition,we are expanding our non-U.S.capacity with a new mask manufacturing line in the UK that isexpected to produce 4.5 million masks each month,and a new line in India that is expected to produce 2 million

187、masks each month.Separately,we are collaborating with Mubadala Investment Companys subsidiary,StrataManufacturing,in the UAE to produce 30 million masks annually.We have communicated the following principles to our authorized distributor network:Our expectation that,at a minimum,all of our partners

188、will comply with all applicable laws prohibiting pricegouging and apply appropriate diligence to the greatest extent possible to understand how our products arebeing purchased so that they are placed quickly and cost-effectively in the hands of those most in need-including first responders and medic

189、al professionals.While we do not control the prices that third parties set,we expect our partners to fairly price PPE used inthe COVID-19 response effort.If we find that one of our partners is not upholding the letter or spirit of these principles,we reserve the rightnot to fulfill that partners ord

190、ers and terminate our relationship with that party.We are also investing in developing and bringing to market a wide array of new COVID-related products,includingbut not limited to Healthy Buildings solutions,remote operations offerings,automation technologies to help speedvaccine development,vaccin

191、e packaging solutions,an ultraviolet cleaning system for aircraft,innovative dual-layerface covers and safety packs.Plant Productivity and SafetyIn situations where our businesses were deemed essential,we worked with local officials to determine how to safelyoperate our manufacturing facilities.We s

192、uccessfully operated these manufacturing facilities with minimal disruptionin our productivity.In the second quarter of 2020,we repurposed certain manufacturing facilities to produce PPE thatwas in short supply around the world.As of December 31,2020,more than 95%of our manufacturing sites wereopera

193、ting at normal production levels.We continue to provide essential services and produce essential goods around the world.We employ standardssuch as screening checks,use of masks,face coverings and other safety equipment and social distancing practicesalong production lines in our production facilitie

194、s at all times in compliance with local government requirements andCDC guidelines.We take appropriate actions including disinfecting and quarantine procedures when a suspectedCOVID-19 case is identified.11 Honeywell International,Inc.Customers and SuppliersCurrent global economic conditions due to C

195、OVID-19 have adversely affected and may continue to adversely affectour customers and suppliers ability to operate or obtain financing,particularly in our airline,oil and gas,andautomotive end markets.Customer or supplier bankruptcies,delays in their ability to obtain financing,or theunavailability

196、of financing could adversely affect our cash flow or results of operations.We continue to activelymonitor both supplier and customer financial health and take measures to manage our supply chain disruptions andlimit our exposure.See section titled Risk Factors for discussion of risks associated to t

197、he COVID-19 pandemic.Honeywell International,Inc.12RESULTS OF OPERATIONSConsolidated Financial Results$36,709$41,802$22,169$24,339202020192018$29,046$4,772$5,519$6,051$4,779$6,143$6,765Net SalesCost of Products andServices SoldSelling,General andAdministrativeExpensesNet Income Attributableto Honeyw

198、ell$32,637Net Sales by Segment$32,637202020192018$36,709$41,802$11,544$14,054$15,493$5,189$5,717$9,298$9,423$10,834$10,674$6,481$6,104$6,337AerospaceHoneywell Building TechnologiesPerformance Materials and TechnologiesSafety and Productivity Solutions13 Honeywell International,Inc.Net Sales Attribut

199、able to Spun-Off Entities$36,709$41,802$32,637$36,709$35,252$2,622$3,928Honeywell ContinuingTransportation Systems(previously part of Aerospace)Homes and Global Distribution(previously part of Honeywell Building Technologies)$32,637202020192018Segment Profit by Segment$6,665202020192018$7,739$8,190$

200、2,904$3,607$3,503$1,099$1,165$1,608$1,851$2,433$2,328$907$790$1,032$(96)$(256)$(281)AerospaceHoneywell Building TechnologiesPerformance Materials and TechnologiesSafety and Productivity SolutionsCorporateHoneywell International,Inc.14CONSOLIDATED OPERATING RESULTSNet Sales$32,637202020192018$36,709$

201、41,802Net SalesThe change in net sales was attributable to the following:2020Versus20192019Versus2018Volume(12)%3%Price1%2%Foreign Currency Translation%(1)%Acquisitions/Divestitures%(16)%(11)%(12)%2020 compared with 2019A discussion of net sales by segment can be found in the Review of Business Segm

202、ents section of this ManagementDiscussion and Analysis.The unfavorable volume in 2020 was driven by:Lower sales across our businesses due to the impact of the global recession attributable to COVID-19 andvolatility in the oil and gas industry,Partially offset by strength in respiratory PPE products,

203、warehouse automation projects,and defense andspace.15 Honeywell International,Inc.Cost of Products and Services Sold$22,1692020Cost of Products and Services Sold20192018$24,339$29,0462020 compared with 2019Cost of products and services sold decreased in 2020 primarily due to the following:Lower dire

204、ct and indirect material costs by approximately$1,130 million and$310 million,Lower labor costs by approximately$800 million,driven by lower sales volumes and other cost actions toimprove productivity.Gross MarginGross MarginGross Margin as apercentage of Net Sales$10,468202020192018$12,370$12,75632

205、.1%33.7%30.5%2020 compared with 2019Gross margin percentage decreased in 2020 primarily due to the following:Lower gross margin in the Performance Materials and Technologies,Aerospace,and Safety andProductivity Solutions segments,Partially offset by higher Honeywell Building Technologies gross margi

206、n.Honeywell International,Inc.16Selling,General and Administrative Expenses14.6%15.0%14.5%Selling,general and administrativeexpensesSelling,general and administrativeexpenses as a percentage of Net sales$4,772202020192018$5,519$6,0512020 compared with 2019Selling,general and administrative expenses

207、decreased due to higher productivity,including lower costs resultingfrom repositioning actions.Other(Income)Expense202020192018Other(income)expense$(675)$(1,065)$(1,149)2020 compared with 2019Other(income)expense changed due to the following:Non-cash charges associated with the reduction in value of

208、 reimbursement receivables due from Garrett,Lower interest income,andLower foreign exchange income,Partially offset by higher pension income,higher equity income of affiliated companies and higher otherpostretirement income.17 Honeywell International,Inc.Tax Expense19.1%17.6%8.8%Tax ExpenseEffective

209、 Tax Rate$1,147202020192018$1,329$6592020 compared with 2019The effective tax rate for 2020 was lower than the U.S.federal statutory rate of 21%primarily due to the favorableresolution of a foreign tax matter related to the previously completed spin-off transactions,tax impact ofrestructuring,tax la

210、w changes in India,and the resolution of certain U.S.tax matters offset by accrued withholdingtaxes related to unremitted foreign earnings and non-cash charges related to the reduction of the aggregate carryingvalue of certain receivables with no corresponding tax benefit.The effective tax rate for

211、2019 was lower than the U.S.federal statutory rate of 21%primarily resulting from theimpacts of revised guidance related to U.S.Tax Cuts and Jobs Act and internal restructuring initiatives that resultedin a$281 million reduction of accrued withholding taxes related to unremitted foreign earnings.For

212、 further discussion of changes in the effective tax rate,see Note 5 Income Taxes of Notes to ConsolidatedFinancial Statements.Net Income Attributable to Honeywell$6.72$8.41$8.98Net income attributable to HoneywellEarnings per share of commonstockassuming dilution$4,779202020192018$6,143$6,7652020 co

213、mpared with 2019Earnings per share of common stockassuming dilution decreased due to the following:Lower segment profit due to the impact of the global recession attributable to COVID-19 and volatility in theoil and gas industry,Non-cash charges associated with the reduction in value of reimbursemen

214、t receivables due from Garrett,andLower interest income,lower foreign exchange income,and higher repositioning costs,Partially offset by lower income taxes,higher pension income,and the favorable impact of lower outstandingshare count resulting from the Companys stock repurchases.Honeywell Internati

215、onal,Inc.18REVIEW OF BUSINESS SEGMENTSWe globally manage our business operations through four segments:Aerospace,Honeywell Building Technologies,Performance Materials and Technologies,and Safety and Productivity Solutions.AEROSPACENET SALES$14,054$11,544202020192018$15,493$1,932$2,997$2,833$3,786$5,

216、731$5,373$5,826$5,326$4,665$2,622Commercial Aviation AftermarketDefense and SpaceCommercial Aviation Original EquipmentTransportation Systems(Spun-off Entity)20202019Change 2020vs.20192018Change 2019vs.2018Net sales$11,544$14,054(18)%$15,493(9)%Cost of products and services sold7,8139,39810,837Selli

217、ng,general and administrative andother expenses8271,0491,153Segment profit$2,904$3,607(19)%$3,5033%Factors Contributing to Year-Over-Year Change2020 vs.20192019 vs.2018Net SalesSegmentProfitNet SalesSegmentProfitOrganic(18)%(20)%9%21%Foreign currency translation%Acquisitions,divestitures and other,n

218、et%1%(18)%(18)%Total%Change(18)%(19)%(9)%3%19 Honeywell International,Inc.2020 compared with 2019Aerospace Net sales decreased due to lower sales volumes as the decline in global travel resulting form COVID-19negatively impacted many of our customers,resulting in lower demand for our products from O

219、EMs and reduceddemand for our aftermarket products and services.Commercial Aviation Original Equipment sales decreased 36%(decreased 35%organic)due to lowerdemand from air transport and regional and business aviation OEMs.Commercial Aviation Aftermarket sales decreased 34%(decreased 34%organic)due t

220、o lower demand in airtransport and regional and business aviation.Defense and Space sales increased 9%(increased 10%organic)driven by growth in U.S.and internationaldefense.Aerospace segment profit decreased due to lower sales volume and lower sales of higher margin products andservices,partially of

221、fset by favorable pricing.Cost of products and services sold decreased due to lower salesvolumes.HONEYWELL BUILDING TECHNOLOGIESNET SALES$2,995$3,314$2,953$2,194$2,403$2,417$3,928ProductsBuilding SolutionsHomes and Global Distribution(Spun-off Entity)$5,189202020192018$5,717$9,29820202019Change 2020

222、vs.20192018Change 2019vs.2018Net sales$5,189$5,717(9)%$9,298(39)%Cost of products and services sold3,0673,4446,066Selling,general and administrative andother expenses1,0231,1081,624Segment profit$1,099$1,165(6)%$1,608(28)%Honeywell International,Inc.20Factors Contributing to Year-Over-Year Change202

223、0 vs.20192019 vs.2018Net SalesSegmentProfitNet SalesSegmentProfitOrganic(9)%(5)%5%8%Foreign currency translation%(1)%(2)%(2)%Acquisitions,divestitures and other,net%(42)%(34)%Total%Change(9)%(6)%(39)%(28)%2020 compared with 2019Honeywell Building Technologies Net sales decreased due to lower organic

224、 sales.Our customers own or managebuildings in a variety of industries including commercial real estate,hospitality,airports and other governmentbuildings,healthcare and education.The global recession resulting from the COVID-19 pandemic impacted many ofthese industries,resulting in a reduction of d

225、iscretionary spending and demand for our products and services.Sales in Products decreased 10%(decreased 10%organic)primarily due to lower sales volumes.Sales in Building Solutions decreased 9%(decreased 8%organic)primarily due to lower sales volumes andthe unfavorable impact of foreign currency tra

226、nslation.Honeywell Building Technologies segment profit decreased primarily due to lower sales volumes and theunfavorable impact of foreign currency translation,partially offset by favorable pricing.Cost of products and servicessold decreased due to lower sales volumes.PERFORMANCE MATERIALS AND TECH

227、NOLOGIESNET SALES$10,834$9,423202020192018$10,674$2,177$2,890$2,845$4,590$5,146$4,981$2,656$2,798$2,848UOPProcess SolutionsAdvanced Materials21 Honeywell International,Inc.20202019Change 2020vs.20192018Change 2019vs.2018Net sales$9,423$10,834(13)%$10,6741%Cost of products and services sold6,3316,989

228、6,948Selling,general and administrative andother expenses1,2411,4121,398Segment profit$1,851$2,433(24)%$2,3285%Factors Contributing to Year-Over-Year Change2020 vs.20192019 vs.2018Net SalesSegmentProfitNet SalesSegmentProfitOrganic(13)%(24)%4%6%Foreign currency translation%(3)%(1)%Acquisitions,dives

229、titures and other,net%Total%Change(13)%(24)%1%5%2020 compared with 2019Performance Materials and Technologies Net sales decreased primarily due to lower sales volumes.Many of ourcustomers operate in the oil and gas industry.The decline in global travel,coupled with excessive oil and gassupply,negati

230、vely impacted many of our customers,resulting in lower demand for our products and services.UOP sales decreased 25%(decreased 25%organic)driven primarily by decreases in catalyst volumes,licensing,and engineering sales volumes.Process Solutions sales decreased 11%(decreased 10%organic)primarily due

231、to lower sales volumes inproducts businesses,automation projects and migration services.Advanced Materials sales decreased 5%(decreased 6%organic)driven primarily by decreased salesvolumes in fluorine products due to lower demand in automotive refrigerants,partially offset by increasedsales volumes

232、in specialty products.Performance Materials and Technologies segment profit decreased primarily due to operating leverage on lowersales volumes and lower sales of higher margin products and services,partially offset by other productivity actions.Cost of products and services sold decreased primarily

233、 due to lower sales volumes.Honeywell International,Inc.22SAFETY AND PRODUCTIVITY SOLUTIONSNET SALES$6,337$2,414$2,215$2,278$1,256$1,270$1,540$2,018$1,771$1,662$793$848$857Safety and RetailProductivity Solutions and ServicesWarehouse and Workflow SolutionsSensing&Internet-of-Things(IoT)$6,481$6,1042

234、0202019201820202019Change 2020vs.20192018Change 2019vs.2018Net sales$6,481$6,1046%$6,337(4)%Cost of products and services sold4,5324,1584,205Selling,general and administrative andother expenses1,0421,1561,100Segment profit$907$79015%$1,032(23)%Factors Contributing to Year-Over-Year Change2020 vs.201

235、92019 vs.2018Net SalesSegmentProfitNet SalesSegmentProfitOrganic6%16%(4)%(23)%Foreign currency translation%(1)%(2)%(2)%Acquisitions,divestitures and other,net%2%2%Total%Change6%15%(4)%(23)%23 Honeywell International,Inc.2020 compared with 2019Safety and Productivity Solutions Net sales increased pri

236、marily due to higher organic sales.The global pandemichas created significant increased demand for our respiratory PPE and additional demand for online shoppingservices,bolstering demand for our warehouse automation services.Sales in Safety and Retail increased 9%(increased 9%organic)primarily due t

237、o a significant increase inorder volume for respiratory PPE due to the global pandemic,partially offset by lower demand for gassensing and detection equipment.Sales in Productivity Solutions and Services decreased 1%(flat organic)due to the unfavorable impact offoreign currency translation.Sales in

238、Warehouse and Workflow Solutions increased 14%(increased 14%organic)primarily due to strongdemand for our warehouse automation services.Sales in Sensing&IoT decreased 6%(decreased 6%organic)due to lower organic sales volumes.Safety and Productivity Solutions segment profit increased as a result of h

239、igher productivity,higher sales volumes,and favorable pricing,partially offset by higher sales of lower margin products and the unfavorable impact of foreigncurrency translation.Cost of products and services sold increased primarily due to higher organic sales volumes,partially offset by higher prod

240、uctivity.REPOSITIONING CHARGESSee Note 4 Repositioning and Other Charges of Notes to Consolidated Financial Statements for a discussion of ourrepositioning actions and related charges incurred in 2020,2019 and 2018.Cash spending related to ourrepositioning actions was$564 million,$249 million and$28

241、5 million in 2020,2019 and 2018,and was fundedthrough operating cash flows.RISK FACTORSOur business,operating results,cash flows and financial condition are subject to the material risks and uncertaintiesset forth below,any one of which could cause our actual results to vary materially from recent r

242、esults or from ouranticipated future results.MACROECONOMIC AND INDUSTRY RISKSEach of our businesses is subject to unique industry and economic conditions that may adversely affect themarkets and operating conditions of our customers,which in turn can affect demand for our products andservices and ou

243、r results of operations.AerospaceOur Aerospace business is impacted by customer buying patterns of aftermarket parts,supplier stability,factory transitions and global supply chain capacity constraints that may lead to shortagesof crucial components.Operating results may be adversely affected by down

244、turns in the global demand forair travel,which may impact new aircraft production or result in the delay or cancellation of new aircraftorders,delays in launch schedules for new aircraft,the retirement of aircraft and reductions in global flyinghours,which impacts air transport and regional,business

245、 and general aviation aircraft utilization rates.Operating results may also be adversely affected by any decrease in air travel demand due to regionalrestrictions or suspension of service for public health,safety,or environmental events,such as the effects ofthe COVID-19 pandemic,which negatively im

246、pacted our operating results during 2020.Operating resultscould also be impacted by changes in overall trends related to end market demand for the product portfolio,as well as new entrants and non-traditional players entering the market.Operating results in our Defenseand Space business unit may be

247、affected by the mix of U.S.and foreign government appropriations fordefense and space programs and by compliance risks.Results may also be impacted by the potentialintroduction of counterfeit parts into our global supply chain.Honeywell Building TechnologiesOperating results may be adversely impacte

248、d by downturns in thelevel of global commercial construction activity(including retrofits and upgrades),lower capital spending andoperating expenditures on building projects,decreased industrial plant expansion,changes in thecompetitive landscape including new market entrants and new technologies,an

249、d fluctuations in inventorylevels in distribution channels.Honeywell International,Inc.24Performance Materials and TechnologiesOperating results may be adversely impacted by downturns incapacity utilization for chemical,industrial,refining,petrochemical and semiconductor plants,our customersavailabi

250、lity of capital for refinery construction and expansion,raw material demand and supply,productcommoditization,continued illegal imports of hydrofluorocarbons into Europe and our ability to maximize ourfacilities production capacity and minimize downtime.Periods of increased volatility in oil and nat

251、ural gasprices may result in less investment by our customers and therefore,lower demand for our products andservices.Safety and Productivity SolutionsOperating results may be adversely impacted by reduced investmentsin process automation,safety monitoring,and plant capacity utilization initiatives,

252、fluctuations in retailmarkets,a slowdown in demand for safety products,changes in the competitive landscape,including newmarket entrants and technology that may lead to product commoditization,and adverse industry economicconditions,all of which could result in lower market share,reduced selling pri

253、ces and lower margins.The global COVID-19 coronavirus pandemic and related impacts adversely affect and may continue toadversely affect our business,financial condition,results of operations,liquidity,and cash flow.The global spread of coronavirus(COVID-19)creates significant volatility,uncertainty

254、and economic disruption thatimpacts our business,operations and financial results and may continue to do so.The extent to which the COVID-19pandemic will continue to impact our business,operations and financial results will depend on numerous evolvingfactors that we may not be able to accurately pre

255、dict,including:the duration,scope and severity of the pandemic,including the extent of the continued increase in cases across the United States in particular,as well as the timingand availability of effective medical treatments and vaccines;governmental,business and individual decisions andactions;t

256、he pace of vaccine deployment;the impact of the pandemic on economic activity;and the extent to whichwe or our employees,customers,suppliers,service providers or other business partners may be prevented fromconducting normal business activities,including due to shutdowns or other restrictive measure

257、s that may berequested or mandated by governmental authorities.These factors could,among other things,continue to disrupt(i)the purchasing,contracting and payment behaviors of our customers and their end-users;(ii)our operations,including our manufacturing activities,the shipment of our products,and

258、 the performance of our suppliers andservice providers;and(iii)our liquidity and cash flow.Risks arising from the COVID-19 pandemic impacting our business and that may continue to impact our business,financial condition,results of operations and prospects include,among other things:Customer RiskExis

259、ting and potential customers and their end-users may continue to take actions toreduce or suspend operations,reduce or delay spending,cancel contracts,or cut costs in a manner thatreduces demand for our products and services.In particular,lower demand for air travel may continue tocause our customer

260、s to delay or suspend spending in connection with the manufacturing,repair,overhaul orservicing of aircraft,and there may be long-term deterioration in demand for air travel that could impact ourbusiness beyond the current COVID-19 health crisis.Customers may also continue to attempt to renegotiatec

261、ontracts and obtain concessions,face financial constraints on their ability to make payments to us on atimely basis or at all,or enter into bankruptcy or discontinue their business operations,and we may continueto be required to discount the pricing of our products.In addition,unfavorable customer s

262、ite conditions,suchas closure of or access restrictions to customer facilities,and disruptions to our customers third-partylogistics,warehousing,inventory management and distribution services may continue to limit our ability tosell products,meet billing milestones or provide services.Operations Ris

263、kThe closure of our facilities,restrictions inhibiting our employees ability to access thosefacilities,and disruptions to the ability of our suppliers or service providers to deliver goods or services to us(including as a result of supplier facility closures or access restrictions,disruptions to the

264、ir supply chains,and supplier liquidity or bankruptcy risk)could further disrupt our ability to provide our services and solutionsand result in,among other things,terminations of customer contracts and losses of revenue.Because theCOVID-19 pandemic could adversely affect our near-term and long-term

265、revenues,earnings,liquidity andcash flows,we have taken and may be required to redeploy significant cost actions,including but not limitedto reducing discretionary expenses(such as non-essential travel,contractors,and consultants),reducinghiring,canceling annual merit increases,reducing executive an

266、d board of director pay,reducing workschedules across the enterprise,shortening or staggering work schedules to match production with demand,and reducing staffing levels,as well as increasing supplier-based productivity and enhancing spending-limitcontrols.However,the extent to which our mitigation

267、efforts are successful,if at all,is not currentlyascertainable;also,ourcostsmaynotdecreaseatthesamepaceasrevenuedeclines25 Honeywell International,Inc.as many of our costs are less variable in nature,and we may not be able to or may not choose tosignificantly reduce them in an effort to remain focus

268、ed on long-term outlook and growth opportunities.Further,our management of the impact of COVID-19 will continue to require significant investment of timefrom our management and employees,as well as resources across our global enterprise.The focus onmanaging and mitigating the impacts of COVID-19 on

269、our business may cause us to divert or delay theapplication of our resources toward new initiatives or investments,which may adversely impact our futureresults of operations.Issues relating to the COVID-19 pandemic may also result in legal claims or litigationagainst us.In addition,remote work has i

270、ncreased the frequency of cybersecurity attacks,including phishingand malware attempts that utilize COVID-19-related strategies,increasing the risk of a materialcybersecurity incident that could result in the loss of proprietary or personal data,render us more vulnerableto future cybersecurity attac

271、ks,disrupt our operations,or otherwise cause us reputational or financial harm.Liquidity and Cash Flow RiskBecause of the customer and operations risks described above,ourbusiness may not continue to generate sufficient cash flow from operations in the future to service our debtand make necessary ca

272、pital expenditures.If we are unable to generate such cash flow,we may need to useexisting cash balances to service our debt,and if such balances are insufficient,then we may be required toengage in one or more alternatives,such as selling assets,restructuring of existing debt,issuing new debtor obta

273、ining additional equity capital on terms that may be onerous or highly dilutive.Our ability to refinanceour indebtedness will depend on the capital markets and our financial condition at such time.Due to the daily evolution of the COVID-19 pandemic and the responses to curb its spread,we cannot pred

274、ict theultimate impact the COVID-19 pandemic will have on our business,financial condition,results of operations,liquidity,and cash flow.Any recovery from the COVID-19 pandemic and related economic impact may be slowed or reversedby a variety of factors,such as,in the United States,the current wides

275、pread increase in COVID-19 infections.Inaddition,even after the COVID-19 pandemic has subsided,we may continue to experience adverse impacts to ourbusiness as a result of its global economic impact,including the current recession and any recession that may occurin the future.Further,many of the fact

276、ors disclosed under Risk Factors in this Form 10-K are,and we anticipate willcontinue to be further,heightened or exacerbated by the impact of the COVID-19 pandemic.A significant percentage of our sales and operations is in non-U.S.jurisdictions and is subject to theeconomic,political,regulatory,for

277、eign exchange and other risks of international operations.Our international operations,including U.S.exports,represent more than half of the Companys sales.Risks relatedto international operations include exchange control regulations,wage and price controls,antitrust regulations,employment regulatio

278、ns,foreign investment laws,import,export and other trade restrictions(such as sanctions andembargoes),differing levels of protection of intellectual property,acts of industrial espionage,violations by ouremployees of anti-corruption laws(despite our efforts to mitigate such risk),changes in regulati

279、ons regardingtransactions with state-owned enterprises,nationalization of private enterprises,acts of terrorism,and our ability tohire and maintain qualified staff and maintain the safety of our employees in these regions.Instability anduncertainties arising from the global geopolitical environment

280、and the evolving international and domestic political,regulatory and economic landscape,including the potential for changes in global trade policies,including sanctionsand trade barriers,and trends such as populism,economic nationalism and negative sentiment toward multinationalcompanies,as well as

281、the cost of compliance with increasingly complex and often conflicting regulations worldwide,can impair our flexibility in modifying product,marketing,pricing or other strategies for growing our businesses,aswell as our ability to improve productivity and maintain acceptable operating margins.In Dec

282、ember 2020,the United Kingdom and the European Union announced they had entered into a post-Brexitdeal on certain aspects of trade and other strategic and political issues.Depending on the application of the terms ofthe trade and cooperation agreement between the United Kingdom and the European Unio

283、n,we could faceincreased regulatory costs and challenges.The Company has developed plans to mitigate the potential impact ofthese costs and challenges,but the implications of these uncertainties could affect the Companys business,financial position and results of operations.Existing free trade laws

284、and regulations provide certain beneficial duties and tariffs for qualifying imports andexports.Changes in laws or policies governing the terms of foreign trade,and in particular increased traderestrictions,tariffs or taxes on imports from countries where we manufacture products or from where we imp

285、ortproducts or raw materials,either directly or through our suppliers,could have an impact on our competitive positionand financial results.The United States has commenced certain trade actions,including imposing tariffs on certain goods importedfrom China and other countries,which has resulted in r

286、etaliatory tariffs by China and other countries.AdditionalHoneywell International,Inc.26tariffs imposed by the United States on a broader range of imports,or further retaliatory trade measures takenby China or other countries in response,could increase the cost of our products.Given the change in th

287、e U.S.presidential administration,we face uncertainty with regard to U.S.government trade policy.Operating outside of the United States also exposes us to foreign exchange risk,which we monitor and seek toreduce through hedging activities.However,foreign exchange hedging activities bear a financial

288、cost and may notalways be available to us or be successful in eliminating such volatility.Finally,we generate significant amounts ofcash outside of the United States that is invested with financial and non-financial counterparties.While we employcomprehensive controls regarding global cash managemen

289、t to guard against cash or investment loss and to ensureour ability to fund our operations and commitments,a material disruption to the counterparties with whom wetransact business could expose Honeywell to financial loss.Operating outside the United States also exposes us to additional intellectual

290、 property risk.The laws andenforcement practices of certain jurisdictions in which we operate may not protect our intellectual property rights tothe same extent as in the U.S.and may impose joint venture,technology transfer,local service or other foreigninvestment requirements and restrictions that

291、potentially compromise control over our technology and proprietaryinformation.Failure of foreign jurisdictions to protect our intellectual property rights,an inability to effectively enforcesuch rights in foreign jurisdictions,or the imposition of foreign jurisdiction investment or sourcing restrict

292、ions orrequirements could result in loss of valuable proprietary information and could impact our competitive position andfinancial results.Risks related to our defined benefit pension plans may adversely impact our results of operations and cashflow.Significant changes in actual investment return o

293、n pension assets,discount rates,and other factors could adverselyaffect our results of operations and require cash pension contributions in future periods.Changes in discount ratesand actual asset returns different than our anticipated asset returns can result in significant non-cash actuarial gains

294、or losses,which we record in the fourth quarter of each fiscal year,and,if applicable,in any quarter in which aninterim re-measurement is triggered.With regard to cash pension contributions,funding requirements for ourpension plans are largely dependent upon interest rates,actual investment returns

295、on pension assets and the impactof legislative or regulatory changes related to pension funding obligations.OPERATIONAL RISKSRaw material price fluctuations,the ability of key suppliers to meet quality and delivery requirements,orcatastrophic events can increase the cost of our products and services

296、,impact our ability to meetcommitments to customers and cause us to incur significant liabilities.The cost of raw materials is a key element in the cost of our products,particularly in Performance Materials andTechnologies(copper,fluorspar,tungsten salts,ethylene,aluminum,and molybdenum)and in Aeros

297、pace(nickel,steel,titanium and other metals).Our inability to offset material price inflation through increased prices to customers,formula-driven or long-term fixed price contracts with suppliers,productivity actions or commodity hedges couldadversely affect our results of operations.Many major com

298、ponents,product equipment items and raw materials,particularly in Aerospace,are procured orsubcontracted on a single or sole-source basis.Although we maintain a qualification and performance surveillanceprocess and we believe that sources of supply for raw materials and components are generally adeq

299、uate,it isdifficult to predict what effects shortages or price increases may have in the future.Our ability to manage inventoryand meet delivery requirements may be constrained by our suppliers inability to scale production and adjust deliveryof long-lead time products during times of volatile deman

300、d.In addition,current or future global economic uncertainty,including the ongoing COVID-19 pandemic,may affect the financial stability of our key suppliers or their access tofinancing,which may in turn affect their ability to perform their obligations to us.If one or more of our suppliersexperiences

301、 financial difficulties,delivery delays or other performance problems,our resulting inability to fill oursupply needs would jeopardize our ability to fulfill obligations under commercial and government contracts,whichcould,in turn,result in reduced sales and profits,contract penalties or termination

302、s,and damage to customerrelationships.27 Honeywell International,Inc.We may be unable to successfully execute or effectively integrate acquisitions,and divestitures may notoccur as planned.We regularly review our portfolio of businesses and pursue growth through acquisitions and seek to divest non-c

303、orebusinesses.We may not be able to complete transactions on favorable terms,on a timely basis,or at all.In addition,our results of operations and cash flows may be adversely impacted by(i)the failure of acquired businesses to meetor exceed expected returns,including risk of impairment;(ii)the failu

304、re to integrate multiple acquired businesses intoHoneywell simultaneously and on schedule and/or to achieve expected synergies;(iii)the inability to dispose ofnon-core assets and businesses on satisfactory terms and conditions;and(iv)the discovery of unanticipatedliabilities,labor relations difficul

305、ties,cybersecurity concerns,compliance issues or other problems in acquiredbusinesses for which we lack contractual protections,insurance or indemnities,or,with regard to divestedbusinesses,claims by purchasers to whom we have provided contractual indemnification.Our future growth is largely depende

306、nt upon our ability to develop new technologies and introduce newproducts that achieve market acceptance in increasingly competitive markets with acceptable margins.Our future growth rate depends upon a number of factors,including our ability to(i)identify and evolve withemerging technological and b

307、roader industry trends in our target end-markets;(ii)develop and maintain competitiveproducts;(iii)defend our market share against an ever-expanding number of competitors,including many new andnon-traditional competitors;(iv)enhance our products by adding innovative features that differentiate our p

308、roductsfrom those of our competitors and prevent commoditization of our products;(v)develop,manufacture and bringcompelling new products to market quickly and cost-effectively;(vi)monitor disruptive technologies and businessmodels;(vii)achieve sufficient return on investment for new products introdu

309、ced based on capital expenditures andresearch and development spending;(viii)respond to changes in overall trends related to end-market demand;and(ix)attract,develop and retain individuals with the requisite technical expertise and understanding of customersneeds to develop new technologies and intr

310、oduce new products.Competitors may also develop after-marketservices and parts for our products which attract customers and adversely affect our return on investment for newproducts.The failure of our technologies or products to gain market acceptance due to more attractive offerings byour competito

311、rs or the failure to address any of the above factors could significantly reduce our revenues andadversely affect our competitive standing and prospects.Failure to increase productivity through sustainable operational improvements,as well as an inability tosuccessfully execute repositioning projects

312、 or to effectively manage our workforce,may reduce ourprofitability or adversely impact our businesses.Our profitability and margin growth are dependent upon our ability to drive sustainable improvements.We seekproductivity and cost savings benefits through repositioning actions and projects,such as

313、 consolidation ofmanufacturing facilities,transitions to cost-competitive regions and product line rationalizations.Risks associatedwith these actions include delays in execution,additional unexpected costs,realization of fewer than estimatedproductivity improvements and adverse effects on employee

314、morale.We may not realize the full operational orfinancial benefits we expect,the recognition of these benefits may be delayed,and these actions may potentiallydisrupt our operations.In addition,organizational changes,increased attrition,failure to create and implement asuccession plan for key Compa

315、ny positions,not retaining key talent,inability to attract new employees with uniqueskills,labor relations difficulties,or workforce stoppage could have a material adverse effect on our business,reputation,financial position and results of operations.As a supplier to the U.S.Government,we are subjec

316、t to unique risks,such as the right of the U.S.Government to terminate contracts for convenience and to conduct audits and investigations of ouroperations and performance.U.S.Government contracts are subject to termination by the government,either for the convenience of thegovernment or for our fail

317、ure to perform consistent with the terms of the applicable contract.Our contracts with theU.S.Government are also subject to government audits that may recommend downward price adjustments andother changes.When appropriate and prudent,we made adjustments and paid voluntary refunds in the past andmay

318、 do so in the future.Honeywell International,Inc.28We are also subject to government investigations of business practices and compliance with governmentprocurement and security regulations.If,as a result of any such investigation or other government investigations(including investigation of violatio

319、ns of certain environmental,employment or export laws),Honeywell or one of itsbusinesses were found to have violated applicable law,then it could be suspended from bidding on or receivingawards of new government contracts,suspended from contract performance pending the completion of legalproceedings

320、 and/or have its export privileges suspended.Our operations and the prior operations of predecessor companies expose us to the risk of materialenvironmental liabilities.Mainly because of past operations and operations of predecessor companies,we are subject to potentially materialliabilities related

321、 to the remediation of environmental hazards and to claims of personal injuries or property damagesthat may be caused by hazardous substance releases and exposures.We continue to incur remedial response andvoluntary clean-up costs for site contamination and are a party to lawsuits and claims associa

322、ted with environmentaland safety matters,including past production of products containing hazardous substances.Additional lawsuits,claims and costs involving environmental matters are likely to continue to arise in the future.Various federal,state,local and foreign governments regulate the use of ce

323、rtain materials,the discharge of materials into the environment,and/or communications respecting certain materials in our products,and can impose substantial fines and criminalsanctions for violations,and require injunctive relief measures,including installation of costly equipment,implementation of

324、 operational changes to limit emissions and/or decrease the likelihood of accidental hazardoussubstance releases,or limiting access of our products to markets,among others.In addition,changes in laws,regulations and enforcement of policies,the discovery of previously unknown contamination or new tec

325、hnology orinformation related to individual sites,the establishment of stricter toxicity standards with respect to certaincontaminants,or the imposition of new clean-up requirements or remedial techniques could require us to incuradditional costs in the future that would have a negative effect on ou

326、r financial condition or results of operations.Cybersecurity incidents could disrupt business operations,result in the loss of critical and confidentialinformation,and adversely impact our reputation and results of operations.Global cybersecurity threats and incidents can range from uncoordinated in

327、dividual attempts to gain unauthorizedaccess to information technology(IT)systems to sophisticated and targeted measures known as advancedpersistent threats,directed at the Company,its products,its customers and/or its third party service providers,including cloud providers.Our customers,including t

328、he U.S.Government,are increasingly requiring cybersecurityprotections and mandating cybersecurity standards in our products,and we may incur additional costs to complywith such demands.While we have experienced,and expect to continue to experience,these types of threats andincidents,none of them to

329、date have been material to the Company.We seek to deploy comprehensive measures todeter,prevent,detect,respond to and mitigate these threats,including identity and access controls,data protection,vulnerability assessments,continuous monitoring of our IT networks and systems and maintenance of backup

330、 andprotective systems.Despite these efforts,cybersecurity incidents,depending on their nature and scope,couldpotentially result in the misappropriation,destruction,corruption or unavailability of critical data and confidential orproprietary information(our own or that of third parties)and the disru

331、ption of business operations.The potentialconsequences of a material cybersecurity incident include financial loss,reputational damage,litigation with thirdparties,theft of intellectual property,fines levied by the Federal Trade Commission,diminution in the value of ourinvestment in research,develop

332、ment and engineering,and increased cybersecurity protection and remediation costsdue to the increasing sophistication and proliferation of threats,which in turn could adversely affect ourcompetitiveness and results of operations.29 Honeywell International,Inc.The development of technology products a

333、nd services presents security and safety risks.An increasing number of our products,services and technologies are delivered with Internet of Things(IoT)capabilities and the accompanying interconnected device networks,which include sensors,data and advancedcomputing capabilities.We have developed product software designs that we believe are less susceptible to cyber-attacks,but despite these effort