Delaware | 1-8974 | 22-2640650 | ||||||
(State or other jurisdiction of incorporation) |
(Commission File Number) | (I.R.S. Employer Identification Number) |
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | ||||
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | ||||
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | ||||
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Common Stock, par value $1 per share | HON | The Nasdaq Stock Market LLC | ||||||||||||
0.000% Senior Notes due 2024 | HON 24A | The Nasdaq Stock Market LLC | ||||||||||||
3.500% Senior Notes due 2027 | HON 27 | The Nasdaq Stock Market LLC | ||||||||||||
2.250% Senior Notes due 2028 | HON 28A | The Nasdaq Stock Market LLC | ||||||||||||
0.750% Senior Notes due 2032 | HON 32 | The Nasdaq Stock Market LLC | ||||||||||||
3.750% Senior Notes due 2032 | HON 32A | The Nasdaq Stock Market LLC | ||||||||||||
4.125% Senior Notes due 2034 | HON 34 | The Nasdaq Stock Market LLC |
Exhibit # |
Description |
|||||||
99 | ||||||||
104 | Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document). |
Date: | October 26, 2023 | HONEYWELL INTERNATIONAL INC. | |||||||||||||||
By: /s/ Victor J. Miller |
|||||||||||||||||
Victor J. Miller | |||||||||||||||||
Vice President, Deputy General Counsel, Corporate Secretary and Chief Compliance Officer |
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Contacts: |
|||||
Media | Investor Relations | ||||
Stacey Jones | Sean Meakim | ||||
(980) 378-6258 | (704) 627-6200 | ||||
stacey.jones@honeywell.com | sean.meakim@honeywell.com |
Previous Guidance | Current Guidance | |||||||||||||
Sales | $36.7B - $37.3B | $36.8B - $37.1B | ||||||||||||
Organic1 Growth |
4% - 6% | 4% - 5% | ||||||||||||
Segment Margin | 22.4% - 22.6% | 22.5% - 22.6% | ||||||||||||
Expansion | Up 70 - 90 bps | Up 80 - 90 bps | ||||||||||||
Adjusted Earnings Per Share3 |
$9.05 - $9.25 | $9.10 - $9.20 | ||||||||||||
Adjusted Earnings Growth3 |
3% - 6% | 4% - 5% | ||||||||||||
Adjusted Earnings Per Share Excluding Pension Headwind3 |
$9.60 - $9.80 | $9.65 - $9.75 | ||||||||||||
Adjusted Earnings Growth Excluding Pension Headwind3 |
10% - 12% | 10% - 11% | ||||||||||||
Operating Cash Flow | $4.9B - $5.3B | $4.9B - $5.3B | ||||||||||||
Free Cash Flow1 |
$3.9B - $4.3B | $3.9B - $4.3B | ||||||||||||
Free Cash Flow Excluding Impact of Settlements1 |
$5.1B - $5.5B | $5.1B - $5.5B |
3Q 2023 | 3Q 2022 | Change | ||||||||||||||||||
Sales | $9,212 | $8,951 | 3% | |||||||||||||||||
Organic1 Growth |
2% | |||||||||||||||||||
Operating Income Margin | 20.9% | 19.5% | 140 bps | |||||||||||||||||
Segment Margin1 |
22.6% | 21.8% | 80 bps | |||||||||||||||||
Earnings Per Share | $2.27 | $2.28 | —% | |||||||||||||||||
Adjusted Earnings Per Share1 |
$2.27 | $2.25 | 1% | |||||||||||||||||
Cash Flow from Operations | $1,809 | $2,083 | (13%) | |||||||||||||||||
Free Cash Flow1 |
$1,560 | $1,899 | (18%) | |||||||||||||||||
Free cash flow margin1 |
16.9% | 21.2% | (430 bps) |
AEROSPACE | 3Q 2023 | 3Q 2022 | Change | |||||||||||||||||
Sales | $3,499 | $2,976 | 18% | |||||||||||||||||
Organic Growth1 |
18% | |||||||||||||||||||
Segment Profit | $963 | $818 | 18% | |||||||||||||||||
Segment Margin | 27.5% | 27.5% | 0 bps | |||||||||||||||||
HONEYWELL BUILDING TECHNOLOGIES | ||||||||||||||||||||
Sales | $1,530 | $1,526 | —% | |||||||||||||||||
Organic Growth1 |
—% | |||||||||||||||||||
Segment Profit | $386 | $368 | 5% | |||||||||||||||||
Segment Margin | 25.2% | 24.1% | 110 bps | |||||||||||||||||
PERFORMANCE MATERIALS AND TECHNOLOGIES | ||||||||||||||||||||
Sales | $2,867 | $2,720 | 5% | |||||||||||||||||
Organic Growth1 |
3% | |||||||||||||||||||
Segment Profit | $633 | $615 | 3% | |||||||||||||||||
Segment Margin | 22.1% | 22.6% | -50 bps | |||||||||||||||||
SAFETY AND PRODUCTIVITY SOLUTIONS | ||||||||||||||||||||
Sales | $1,314 | $1,727 | (24%) | |||||||||||||||||
Organic Growth1 |
(25%) | |||||||||||||||||||
Segment Profit | $190 | $271 | (30%) | |||||||||||||||||
Segment Margin | 14.5% | 15.7% | -120 bps |
1 | See additional information at the end of this release regarding non-GAAP financial measures. |
|||||||
2 | Segment margin and adjusted EPS are non-GAAP financial measures. Management cannot reliably predict or estimate, without unreasonable effort, the impact and timing on future operating results arising from items excluded from segment margin or adjusted EPS. We therefore, do not present a guidance range, or a reconciliation to, the nearest GAAP financial measures of operating margin or EPS. |
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3 | Adjusted EPS and adjusted EPS V% guidance excludes items identified in the non-GAAP reconciliation of adjusted EPS at the end of this release, and any potential future one-time items that we cannot reliably predict or estimate such as pension mark-to-market. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Product sales | $ | 6,294 | $ | 6,588 | $ | 19,045 | $ | 19,404 | |||||||||||||||
Service sales | 2,918 | 2,363 | 8,177 | 6,876 | |||||||||||||||||||
Net sales | 9,212 | 8,951 | 27,222 | 26,280 | |||||||||||||||||||
Costs, expenses and other | |||||||||||||||||||||||
Cost of products sold1 |
4,090 | 4,286 | 12,291 | 12,674 | |||||||||||||||||||
Cost of services sold1 |
1,580 | 1,308 | 4,503 | 3,904 | |||||||||||||||||||
Total Cost of products and services sold | 5,670 | 5,594 | 16,794 | 16,578 | |||||||||||||||||||
Research and development expenses | 364 | 387 | 1,096 | 1,123 | |||||||||||||||||||
Selling, general and administrative expenses1 |
1,252 | 1,228 | 3,831 | 3,965 | |||||||||||||||||||
Other (income) expense | (247) | (337) | (715) | (846) | |||||||||||||||||||
Interest and other financial charges | 206 | 98 | 563 | 270 | |||||||||||||||||||
Total costs, expenses and other | 7,245 | 6,970 | 21,569 | 21,090 | |||||||||||||||||||
Income before taxes | 1,967 | 1,981 | 5,653 | 5,190 | |||||||||||||||||||
Tax expense | 452 | 432 | 1,229 | 1,244 | |||||||||||||||||||
Net income | 1,515 | 1,549 | 4,424 | 3,946 | |||||||||||||||||||
Less: Net income (loss) attributable to the noncontrolling interest | 1 | (3) | 29 | (1) | |||||||||||||||||||
Net income attributable to Honeywell | $ | 1,514 | $ | 1,552 | $ | 4,395 | $ | 3,947 | |||||||||||||||
Earnings per share of common stock - basic | $ | 2.29 | $ | 2.30 | $ | 6.61 | $ | 5.81 | |||||||||||||||
Earnings per share of common stock - assuming dilution | $ | 2.27 | $ | 2.28 | $ | 6.56 | $ | 5.76 | |||||||||||||||
Weighted average number of shares outstanding - basic | 662.4 | 674.1 | 665.2 | 679.3 | |||||||||||||||||||
Weighted average number of shares outstanding - assuming dilution | 667.0 | 679.6 | 670.4 | 685.3 |
1 | Cost of products and services sold and Selling, general and administrative expenses include amounts for repositioning and other charges, the service cost component of pension and other postretirement (income) expense, and stock compensation expense. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
Net Sales | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Aerospace | $ | 3,499 | $ | 2,976 | $ | 9,951 | $ | 8,623 | |||||||||||||||
Honeywell Building Technologies | 1,530 | 1,526 | 4,527 | 4,486 | |||||||||||||||||||
Performance Materials and Technologies | 2,867 | 2,720 | 8,477 | 7,867 | |||||||||||||||||||
Safety and Productivity Solutions | 1,314 | 1,727 | 4,262 | 5,300 | |||||||||||||||||||
Corporate and All Other | 2 | 2 | 5 | 4 | |||||||||||||||||||
Total | $ | 9,212 | $ | 8,951 | $ | 27,222 | $ | 26,280 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
Segment Profit | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Aerospace | $ | 963 | $ | 818 | $ | 2,714 | $ | 2,338 | |||||||||||||||
Honeywell Building Technologies | 386 | 368 | 1,146 | 1,064 | |||||||||||||||||||
Performance Materials and Technologies | 633 | 615 | 1,821 | 1,726 | |||||||||||||||||||
Safety and Productivity Solutions | 190 | 271 | 689 | 755 | |||||||||||||||||||
Corporate and All Other | (90) | (120) | (289) | (298) | |||||||||||||||||||
Total segment profit | 2,082 | 1,952 | 6,081 | 5,585 | |||||||||||||||||||
Interest and other financial charges | (206) | (98) | (563) | (270) | |||||||||||||||||||
Stock compensation expense1 |
(39) | (50) | (148) | (163) | |||||||||||||||||||
Pension ongoing income2 |
131 | 247 | 391 | 748 | |||||||||||||||||||
Other postretirement income2 |
6 | 10 | 19 | 30 | |||||||||||||||||||
Repositioning and other charges3,4 |
(88) | (100) | (331) | (714) | |||||||||||||||||||
Other5 |
81 | 20 | 204 | (26) | |||||||||||||||||||
Income before taxes | $ | 1,967 | $ | 1,981 | $ | 5,653 | $ | 5,190 |
1 | Amounts included in Selling, general and administrative expenses. | |||||||
2 | Amounts included in Cost of products and services sold, Selling, general and administrative expenses (service costs) and Other income (expense) (non-service cost components). | |||||||
3 | Amounts included in Cost of products and services sold, Selling, general and administrative expenses, and Other (income) expense. | |||||||
4 | Includes repositioning, asbestos, and environmental expenses. | |||||||
5 | Amounts include the other components of Other (income) expense not included within other categories in this reconciliation. Equity income of affiliated companies is included in segment profit. |
September 30, 2023 | December 31, 2022 | ||||||||||
ASSETS | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ | 7,770 | $ | 9,627 | |||||||
Short-term investments | 164 | 483 | |||||||||
Accounts receivable, less allowances of $342 and $326, respectively | 7,833 | 7,440 | |||||||||
Inventories | 6,000 | 5,538 | |||||||||
Other current assets | 1,553 | 1,894 | |||||||||
Total current assets | 23,320 | 24,982 | |||||||||
Investments and long-term receivables | 895 | 945 | |||||||||
Property, plant and equipment—net | 5,486 | 5,471 | |||||||||
Goodwill | 17,793 | 17,497 | |||||||||
Other intangible assets—net | 3,310 | 3,222 | |||||||||
Insurance recoveries for asbestos-related liabilities | 200 | 224 | |||||||||
Deferred income taxes | 377 | 421 | |||||||||
Other assets | 9,915 | 9,513 | |||||||||
Total assets | $ | 61,296 | $ | 62,275 | |||||||
LIABILITIES | |||||||||||
Current liabilities | |||||||||||
Accounts payable | $ | 6,428 | $ | 6,329 | |||||||
Commercial paper and other short-term borrowings | 1,933 | 2,717 | |||||||||
Current maturities of long-term debt | 1,670 | 1,730 | |||||||||
Accrued liabilities | 7,196 | 9,162 | |||||||||
Total current liabilities | 17,227 | 19,938 | |||||||||
Long-term debt | 16,683 | 15,123 | |||||||||
Deferred income taxes | 2,225 | 2,093 | |||||||||
Postretirement benefit obligations other than pensions | 131 | 146 | |||||||||
Asbestos-related liabilities | 1,102 | 1,180 | |||||||||
Other liabilities | 6,146 | 6,469 | |||||||||
Redeemable noncontrolling interest | 7 | 7 | |||||||||
Shareowners’ equity | 17,775 | 17,319 | |||||||||
Total liabilities, redeemable noncontrolling interest and shareowners’ equity | $ | 61,296 | $ | 62,275 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Cash flows from operating activities | |||||||||||||||||||||||
Net income | $ | 1,515 | $ | 1,549 | $ | 4,424 | $ | 3,946 | |||||||||||||||
Less: Net income (loss) attributable to noncontrolling interest | 1 | (3) | 29 | (1) | |||||||||||||||||||
Net income attributable to Honeywell | 1,514 | 1,552 | 4,395 | 3,947 | |||||||||||||||||||
Adjustments to reconcile net income attributable to Honeywell to net cash provided by (used for) operating activities | |||||||||||||||||||||||
Depreciation | 166 | 166 | 493 | 494 | |||||||||||||||||||
Amortization | 142 | 134 | 382 | 411 | |||||||||||||||||||
Gain on sale of non-strategic businesses and assets | — | (10) | — | (10) | |||||||||||||||||||
Repositioning and other charges | 88 | 100 | 331 | 714 | |||||||||||||||||||
Net payments for repositioning and other charges | (128) | (96) | (323) | (316) | |||||||||||||||||||
NARCO Buyout payment | — | — | (1,325) | — | |||||||||||||||||||
Pension and other postretirement income | (137) | (257) | (410) | (778) | |||||||||||||||||||
Pension and other postretirement benefit receipts (payments) | (2) | (9) | (25) | (14) | |||||||||||||||||||
Stock compensation expense | 39 | 50 | 148 | 163 | |||||||||||||||||||
Deferred income taxes | (28) | 88 | 168 | 208 | |||||||||||||||||||
Other | 89 | 119 | (554) | 200 | |||||||||||||||||||
Changes in assets and liabilities, net of the effects of acquisitions and divestitures | |||||||||||||||||||||||
Accounts receivable | 161 | 244 | (344) | (660) | |||||||||||||||||||
Inventories | (110) | 44 | (448) | (390) | |||||||||||||||||||
Other current assets | (67) | 163 | 141 | 125 | |||||||||||||||||||
Accounts payable | (18) | (125) | 96 | (365) | |||||||||||||||||||
Accrued liabilities | 100 | (80) | (340) | (821) | |||||||||||||||||||
Net cash provided by operating activities | 1,809 | 2,083 | 2,385 | 2,908 | |||||||||||||||||||
Cash flows from investing activities | |||||||||||||||||||||||
Capital expenditures | (249) | (184) | (675) | (525) | |||||||||||||||||||
Proceeds from disposals of property, plant and equipment | 8 | — | 21 | 11 | |||||||||||||||||||
Increase in investments | (175) | (364) | (404) | (834) | |||||||||||||||||||
Decrease in investments | 176 | 238 | 808 | 884 | |||||||||||||||||||
Receipts from Garrett Motion Inc. | — | — | — | 409 | |||||||||||||||||||
Receipts (payments) from settlements of derivative contracts | 250 | 436 | 212 | 773 | |||||||||||||||||||
Cash paid for acquisitions, net of cash acquired | (55) | — | (716) | (178) | |||||||||||||||||||
Net cash provided by (used for) investing activities | (45) | 126 | (754) | 540 | |||||||||||||||||||
Cash flows from financing activities | |||||||||||||||||||||||
Proceeds from issuance of commercial paper and other short-term borrowings | 2,727 | 2,386 | 10,727 | 5,310 | |||||||||||||||||||
Payments of commercial paper and other short-term borrowings | (3,554) | (2,398) | (11,484) | (5,324) | |||||||||||||||||||
Proceeds from issuance of common stock | 36 | 46 | 151 | 121 | |||||||||||||||||||
Proceeds from issuance of long-term debt | 19 | 1 | 2,985 | 2 | |||||||||||||||||||
Payments of long-term debt | (26) | (1,729) | (1,410) | (1,818) | |||||||||||||||||||
Repurchases of common stock | (1,011) | (390) | (2,187) | (2,827) | |||||||||||||||||||
Cash dividends paid | (728) | (669) | (2,144) | (2,028) | |||||||||||||||||||
Other | (27) | (24) | (65) | (45) | |||||||||||||||||||
Net cash used for financing activities | (2,564) | (2,777) | (3,427) | (6,609) | |||||||||||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | (56) | (231) | (61) | (349) | |||||||||||||||||||
Net decrease in cash and cash equivalents | (856) | (799) | (1,857) | (3,510) | |||||||||||||||||||
Cash and cash equivalents at beginning of period | 8,626 | 8,248 | 9,627 | 10,959 | |||||||||||||||||||
Cash and cash equivalents at end of period | $ | 7,770 | $ | 7,449 | $ | 7,770 | $ | 7,449 |
Three Months Ended September 30, 2023 | |||||
Honeywell | |||||
Reported sales % change | 3% | ||||
Less: Foreign currency translation | —% | ||||
Less: Acquisitions, divestitures and other, net | 1% | ||||
Organic sales % change | 2% | ||||
Aerospace | |||||
Reported sales % change | 18% | ||||
Less: Foreign currency translation | —% | ||||
Less: Acquisitions, divestitures and other, net | —% | ||||
Organic sales % change | 18% | ||||
Honeywell Building Technologies | |||||
Reported sales % change | —% | ||||
Less: Foreign currency translation | —% | ||||
Less: Acquisitions, divestitures and other, net | —% | ||||
Organic sales % change | —% | ||||
Performance Materials and Technologies | |||||
Reported sales % change | 5% | ||||
Less: Foreign currency translation | 1% | ||||
Less: Acquisitions, divestitures and other, net | 1% | ||||
Organic sales % change | 3% | ||||
Safety and Productivity Solutions | |||||
Reported sales % change | (24)% | ||||
Less: Foreign currency translation | 1% | ||||
Less: Acquisitions, divestitures and other, net | —% | ||||
Organic sales % change | (25)% | ||||
Three Months Ended September 30, | Twelve Months Ended December 31, |
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2023 | 2022 | 2022 | |||||||||||||||
Operating income | $ | 1,926 | $ | 1,742 | $ | 6,427 | |||||||||||
Stock compensation expense1 |
39 | 50 | 188 | ||||||||||||||
Repositioning, Other2,3 |
100 | 128 | 942 | ||||||||||||||
Pension and other postretirement service costs3 |
17 | 32 | 132 | ||||||||||||||
Segment profit | $ | 2,082 | $ | 1,952 | $ | 7,689 | |||||||||||
Operating income | $ | 1,926 | $ | 1,742 | $ | 6,427 | |||||||||||
÷ Net sales | $ | 9,212 | $ | 8,951 | $ | 35,466 | |||||||||||
Operating income margin % | 20.9 | % | 19.5 | % | 18.1 | % | |||||||||||
Segment profit | $ | 2,082 | $ | 1,952 | $ | 7,689 | |||||||||||
÷ Net sales | $ | 9,212 | $ | 8,951 | $ | 35,466 | |||||||||||
Segment profit margin % | 22.6 | % | 21.8 | % | 21.7 | % | |||||||||||
1 | Included in Selling, general and administrative expenses. | |||||||
2 | Includes repositioning, asbestos, environmental expenses, equity income adjustment, and other charges. For the three months ended September 30, 2022, other charges include a benefit of $16 million primarily related to a favorable foreign exchange revaluation on an intercompany loan with a Russian affiliate, in addition to the recovery of outstanding accounts receivable previously reserved against, partially offset by additional charges for called guarantees, related to the initial suspension and wind down of our businesses and operations in Russia. For the twelve months ended December 31, 2022, other charges include an expense of $250 million related to reserves against outstanding accounts receivables, contract assets, and inventory, as well as the write-down of other assets and employee severance related to the initial suspension and wind down of our businesses and operations in Russia. For the three months ended September 30, 2022, and twelve months ended December 31, 2022, other charges include $17 million and $41 million, respectively, of incremental long-term contract labor cost inefficiencies due to severe supply chain disruptions (attributable to the COVID-19 pandemic) relating to the warehouse automation business within the Safety and Productivity Solutions segment. These costs include incurred amounts and provisions for anticipated losses recognized when total estimated costs at completion for certain of the business’ long-term contracts exceeded total estimated revenue. These certain costs represent unproductive labor costs due to unexpected supplier delays and the resulting downstream installation issues, demobilization and remobilization of contract workers, and resolution of contractor disputes. |
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3 | Included in Cost of products and services sold and Selling, general and administrative expenses. | |||||||
Three Months Ended September 30, | Twelve Months Ended December 31, | ||||||||||||||||||||||
2023 | 2022 | 2022 | 2023(E) | ||||||||||||||||||||
Earnings per share of common stock - diluted1 |
$ | 2.27 | $ | 2.28 | $ | 7.27 | $9.09 - $9.19 | ||||||||||||||||
Pension mark-to-market expense2 |
— | — | 0.64 | No Forecast | |||||||||||||||||||
Expense related to UOP Matters3 |
— | — | 0.07 | — | |||||||||||||||||||
Russian-related charges4 |
— | (0.02) | 0.43 | — | |||||||||||||||||||
Gain on sale of Russian entities5 |
— | (0.01) | (0.03) | — | |||||||||||||||||||
Net expense related to the NARCO Buyout and HWI Sale6 |
— | — | 0.38 | 0.01 | |||||||||||||||||||
Adjusted earnings per share of common stock - diluted | $ | 2.27 | $ | 2.25 | $ | 8.76 | $9.10 - $9.20 | ||||||||||||||||
Pension headwind7 |
$ | 0.14 | — | — | ~$0.55 | ||||||||||||||||||
Adjusted earnings per share of common stock excluding Pension headwind - diluted | $ | 2.41 | $ | 2.25 | $ | 8.76 | $9.65 - $9.75 | ||||||||||||||||
1 | For the three months September 30, 2023, and 2022, adjusted earnings per share utilizes weighted average shares of approximately 667.0 million and 679.6 million, respectively. For the twelve months ended December 31, 2022, adjusted earnings per share utilizes weighted average shares of approximately 683.1 million. For the twelve months ended December 31, 2023, expected earnings per share utilizes weighted average shares of approximately 669.0 million. |
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2 | Pension mark-to-market expense uses a blended tax rate of 16%, net of tax benefit of $83 million, for 2022. |
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3 | For the twelve months ended December 31, 2022, the adjustment was $45 million, without tax benefit, due to an expense related to UOP matters. |
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4 | For the twelve months ends December 31, 2023, the adjustment was $1 million, without tax expense. For the three months ended September 30, 2022, the adjustment was $16 million, without tax expense, primarily related to favorable foreign exchange revaluation on an intercompany loan with a Russian affiliate, in addition to the recovery of outstanding accounts receivable previously reserved against, partially offset by additional charges for called guarantees, related to the initial suspension and wind down of our businesses and operations in Russia. For the twelve months ended December 31, 2022, the adjustment was $297 million, without tax benefit, to exclude charges and the accrual of reserves related to outstanding accounts receivable, contract assets, impairment of intangible assets, foreign exchange revaluation, inventory reserves, the write-down of other assets, impairment of property, plant and equipment, employee severance, and called guarantees related to the initial suspension and wind down of our businesses and operations in Russia. |
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5 | For the three months ended September 30, 2022, and twelve months ended December 31, 2022, the adjustments were $10 million and $22 million, respectively, without tax expense, due to the gain on sale of Russian entities. | |||||||
6 | For the twelve months ended December 31, 2023, and December 31, 2022, the adjustments were $8 million and $260 million, net of tax of benefit of $3 million and $82 million, respectively, due to the net expense related to the NARCO Buyout and HWI Sale. | |||||||
7 | For the three months ended September 30, 2023, the adjustment was the decline of $92 million of pension ongoing and other postretirement income compared to the three months ended September 30, 2022, net of tax expense of $28 million. For the twelve months ended December 31, 2023, the adjustment is the forecasted decline of approximately $370 million of pension ongoing and other postretirement income between 2022 and 2023, net of estimated tax expense of approximately $100 million. |
Three Months Ended September 30, 2023 |
Three Months Ended September 30, 2022 |
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Cash provided by operating activities | $ | 1,809 | $ | 2,083 | |||||||
Capital expenditures | (249) | (184) | |||||||||
Garrett cash receipts | — | — | |||||||||
Free cash flow | 1,560 | 1,899 | |||||||||
Cash provided by operating activities | $ | 1,809 | $ | 2,083 | |||||||
÷ Net sales | $ | 9,212 | $ | 8,951 | |||||||
Operating cash flow margin % | 19.6 | % | 23.3 | % | |||||||
Free cash flow | $ | 1,560 | $ | 1,899 | |||||||
÷ Net sales | $ | 9,212 | $ | 8,951 | |||||||
Free cash flow margin % | 16.9 | % | 21.2 | % |
Twelve Months Ended December 31, 2023(E) ($B) | |||||
Cash provided by operating activities | ~$4.9 - $5.3 | ||||
Capital expenditures | ~(1.0) | ||||
Garrett cash receipts | — | ||||
Free cash flow | ~$3.9 - $4.3 | ||||
Impact of settlements | ~1.2 | ||||
Free cash flow excluding impact of settlements | ~$5.1 - $5.5 |