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ACQUISITIONS, DIVESTITURES, AND ASSETS AND LIABILITIES HELD FOR SALE | 3 Months Ended
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Mar. 31, 2025
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] |
ACQUISITIONS, DIVESTITURES, AND ASSETS AND LIABILITIES HELD FOR SALE | ACQUISITIONS, DIVESTITURES, AND ASSETS AND LIABILITIES HELD FOR SALE ACQUISITIONS Sundyne On March 4, 2025, the Company agreed to acquire Sundyne in an all-cash transaction for $2,160 million. The transaction is subject to regulatory review and approval and customary closing conditions. The transaction is expected to close in the second quarter of 2025 and the business will be included within the Energy and Sustainability Solutions reportable business segment. Air Products' Liquefied Natural Gas Process Technology and Equipment Business On September 30, 2024, the Company acquired 100% of the outstanding equity interests of Air Products' liquefied natural gas process technology and equipment business (LNG), strengthening the Company's energy transition portfolio, for total consideration of $1,837 million, net of cash acquired. The business is included within the Energy and Sustainability Solutions reportable business segment. The following table summarizes the preliminary determination of the fair value of identifiable assets acquired and liabilities assumed that are included in the Consolidated Balance Sheet as of March 31, 2025:
Current assets |  | $ | 76 |
Intangible assets |  | 931 |
Other noncurrent assets |  | 53 |
Current liabilities |  | (100) |
Noncurrent liabilities |  | (2) |
Net assets acquired |  | 958 |
Goodwill |  | 879 |
Purchase price |  | $ | 1,837 |
The LNG identifiable intangible assets primarily include customer relationships and technology which will amortize over their estimated useful lives ranging from four to 20 years using accelerated amortization methods. The goodwill is deductible for tax purposes. As of March 31, 2025, the purchase accounting is subject to final adjustment, primarily for the valuation of intangible assets, amounts allocated to goodwill, working capital adjustments, and tax balances. CAES Systems Holdings LLC On August 30, 2024, the Company acquired 100% of the outstanding equity interests of CAES Systems Holdings LLC (CAES), enhancing the Company's defense and space portfolio with high-reliability radio frequency technologies, for total consideration of $1,935 million, net of cash acquired. The business is included within the Aerospace Technologies reportable business segment. The following table summarizes the preliminary determination of the fair value of identifiable assets acquired and liabilities assumed that are included in the Consolidated Balance Sheet as of March 31, 2025:
Current assets |  | $ | 324 |
Intangible assets |  | 1,205 |
Other noncurrent assets |  | 182 |
Current liabilities |  | (123) |
Noncurrent liabilities |  | (167) |
Net assets acquired |  | 1,421 |
Goodwill |  | 557 |
Purchase price |  | $ | 1,978 |
The CAES identifiable intangible assets primarily include customer relationships and trademarks which will amortize over their estimated useful lives ranging from two to 15 years using straight line and accelerated amortization methods. The goodwill is not deductible for tax purposes. As of March 31, 2025, the purchase accounting for CAES is subject to final adjustment, primarily for the valuation of intangible assets, amounts allocated to goodwill, and tax balances. Civitanavi Systems S.p.A. On August 19, 2024, the Company completed the acquisition of Civitanavi Systems S.p.A., a leader in position navigation and timing technology for the aerospace, defense, and industrial markets, for total consideration of $200 million, net of cash acquired. The business is included within the Aerospace Technologies reportable business segment. The assets acquired and liabilities assumed with Civitanavi Systems S.p.A. are included in the Consolidated Balance Sheet as of March 31, 2025, including $75 million of intangible assets and $107 million of goodwill, which is not deductible for tax purposes. As of March 31, 2025, the purchase accounting is subject to final adjustment, primarily for the valuation of intangible assets, amounts allocated to goodwill, and tax balances. Carrier Global Corporation's Global Access Solutions Business On June 3, 2024, the Company acquired 100% of the outstanding equity interests of Carrier Global Corporation's Global Access Solutions business (Access Solutions), an innovative global leader in advanced access and security solutions, electronic locking systems, and contactless mobile key solutions, for total consideration of $4,913 million, net of cash acquired. The business is included in the Building Automation reportable business segment. The following table summarizes the preliminary determination of the fair value of identifiable assets acquired and liabilities assumed that are included in the Consolidated Balance Sheet as of March 31, 2025:
Current assets |  | $ | 246 |
Intangible assets |  | 2,050 |
Other noncurrent assets |  | 20 |
Current liabilities |  | (140) |
Noncurrent liabilities |  | (6) |
Net assets acquired |  | 2,170 |
Goodwill |  | 2,828 |
Purchase price |  | $ | 4,998 |
The Access Solutions identifiable intangible assets primarily include customer relationships, technology, and trademarks which will amortize over their estimated useful lives ranging from 10 to 20 years using straight line and accelerated amortization methods. The majority of the goodwill is deductible for tax purposes. As of March 31, 2025, the purchase accounting for Access Solutions is subject to final adjustment, primarily for the valuation of intangible assets, amounts allocated to goodwill, and tax balances. DIVESTITURES For the three months ended March 31, 2025, and 2024, there were no significant divestitures that closed individually or in the aggregate. On February 6, 2025, the Company announced its intention to pursue a separation of its Automation and Aerospace Technologies businesses into independent, U.S. publicly traded companies, which is intended to be completed in the second half of 2026. The planned separation is intended to be a tax-free separation to Honeywell shareowners for U.S. federal income tax purposes. The separation will be subject to the satisfaction of a number of customary conditions, including, among others, the filing and effectiveness of applicable filings (including a Form 10 registration statement that includes required financial statements) with the SEC, assurance that the separation of the businesses will be tax-free to Honeywell’s shareowners, receipt of applicable regulatory approvals, and final approval by Honeywell’s Board of Directors. The proposed separation is complex in nature, and may be affected by unanticipated developments, credit and equity markets, or changes in market conditions. On October 8, 2024, the Company announced its intention to spin off its Advanced Materials business into Solstice Advanced Materials, an independent, U.S. publicly traded company, which is targeted to be completed by the end of 2025 or early 2026. The planned spin-off is intended to be a tax-free spin to Honeywell shareowners for U.S. federal income tax purposes. The spin-off will be subject to the satisfaction of a number of customary conditions, including, among others, finalization of the financial statements of Solstice Advanced Materials, the filing and effectiveness of applicable filings (including a Form 10 registration statement) with the SEC, assurance that the spin-off of Solstice Advanced Materials will be tax-free to Honeywell’s shareowners, receipt of applicable regulatory approvals, and final approval by Honeywell’s Board of Directors. The proposed spin-off is complex in nature, and may be affected by unanticipated developments, credit and equity markets, or changes in market conditions. ASSETS AND LIABILITIES HELD FOR SALE During the third quarter of 2024, the Company concluded the assets and liabilities of the personal protective equipment (PPE) business, which is part of the Sensing and Safety Technologies business unit within the Industrial Automation reportable business segment, met the held for sale criteria; therefore, the Company presented the associated assets and liabilities of the business as held for sale as of September 30, 2024. On November 22, 2024, the Company announced it reached an agreement to sell its PPE business for $1,325 million in an all-cash transaction. The transaction is expected to be completed in the second quarter of 2025 and is subject to customary closing conditions. The disposal group is measured at the lower of carrying value or fair value less costs to sell. Depreciation and amortization expense is not recorded for the period in which assets are classified as held for sale. The carrying amount of any assets, including goodwill, that are part of the disposal group, but not in the scope of Accounting Standards Codification (ASC) 360-10, Property, Plant, and Equipment, are tested for impairment under the relevant guidance prior to measuring the disposal group at fair value, less costs to sell. The Company performed an evaluation as of March 31, 2025, to assess the recoverability of the carrying value of the assets held for sale. The Company recognized a $15 million increase to the valuation allowance during the three months ended March 31, 2025, to write down the disposal group to fair value, less costs to sell. The carrying value is based on the use of estimates and is subject to change based on future developments leading up to the closing date of a sale, and actual amounts realized upon sale may vary from those recorded as of March 31, 2025. The following table summarizes the assets and liabilities classified as held for sale in the Consolidated Balance Sheet:
| March 31, 2025 |  | December 31, 2024 |  |
Assets held for sale |  |  |  |  |
Accounts receivable | $ | 161 |  |  | $ | 174 |  |  |
Inventories | 209 |  |  | 197 |  |  |
Other current assets | 23 |  |  | 29 |  |  |
Investments and long-term receivables | 5 |  |  | 4 |  |  |
Property, plant and equipment—net | 170 |  |  | 155 |  |  |
Goodwill | 412 |  |  | 411 |  |  |
Other intangible assets—net | 605 |  |  | 597 |  |  |
Other assets | 42 |  |  | 17 |  |  |
Valuation allowance on assets held for sale | (234) |  |  | (219) |  |  |
Total Assets held for sale | $ | 1,393 |  |  | $ | 1,365 |  |  |
Liabilities held for sale |  |  |  |  |
Accounts payable | $ | 139 |  |  | $ | 152 |  |  |
Accrued liabilities | 104 |  |  | 110 |  |  |
Deferred income taxes | 125 |  |  | 124 |  |  |
Other liabilities | 32 |  |  | 22 |  |  |
Total Liabilities held for sale | $ | 400 |  |  | $ | 408 |  |  |

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- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 805 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479907/805-20-50-5 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 805 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/805/tableOfContent + Details
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