HONEYWELL INTERNATIONAL INC | 2013 | FY | 3


Note 24. Segment Financial Data

 

We globally manage our business operations through four reportable operating segments serving customers worldwide with aerospace products and services, control, sensing and security technologies for buildings, homes and industry, automotive products and chemicals. Segment information is consistent with how management reviews the businesses, makes investing and resource allocation decisions and assesses operating performance. Our four reportable segments are as follows:

       Aerospace includes Air Transport and Regional, Business and General Aviation and Defense and Space and provides products and services which include auxiliary power units; propulsion engines; environmental control systems; electric power systems, engine controls; repair and overhaul services; flight safety, communications, navigation, radar and surveillance systems; aircraft lighting; management and technical services; logistic services; advanced systems and instruments; and aircraft wheels and brakes.

       Automation and Control Solutions includes Energy, Safety & Security (controls for heating, cooling, indoor air quality, ventilation, humidification, lighting and home automation; advanced software applications for home/building control and optimization; sensors, switches, control systems and instruments for measuring pressure, air flow, temperature and electrical current; security, fire and gas detection and monitoring; radiation detection; personal protection equipment; access control; video surveillance equipment; remote patient monitoring systems; automatic identification and data collection; and voice solutions); Process Solutions (provides a full range of automation and control solutions for industrial plants, offering advanced software and automation systems that integrate, control and monitor complex processes in many types of industrial settings as well as equipment that controls, measures and analyzes natural gas production and transportation); and Building Solutions & Distribution (installs, distributes, maintains and upgrades systems that keep buildings safe, comfortable and productive).

       Performance Materials and Technologies includes Advanced Materials (fluorocarbons, hydrofluoroolefins, caprolactam, resins, ammonium sulfate for fertilizer, specialty films, waxes, additives, advanced fibers, customized research chemicals and intermediates, and electronic materials and chemicals) and UOP (process technology, products, including catalysts and absorbents, and services for the petroleum refining, gas processing, petrochemical, renewable energy and other industries).

       Transportation Systems includes turbochargers, thermal systems, brake hard parts and other friction materials.

The accounting policies of the segments are the same as those described in Note 1. Honeywell's senior management evaluates segment performance based on segment profit. Segment profit is measured as business unit income (loss) before taxes excluding general corporate unallocated expense, other income (expense), interest and other financial charges, pension and other postretirement benefits (expense), stock compensation expense, repositioning and other charges and accounting changes.

 

   Years Ended December 31, 
 Net Sales 2013 2012 2011 
 Aerospace       
  Product$ 7,043$ 6,999$ 6,494 
  Service  4,937  5,041  4,981 
  Total  11,980  12,040  11,475 
 Automation and Control Solutions       
  Product  14,193  13,610  13,328 
  Service  2,363  2,270  2,207 
  Total  16,556  15,880  15,535 
 Performance Materials and Technologies       
  Product  6,223  5,642  5,064 
  Service  541  542  595 
  Total  6,764  6,184  5,659 
 Transportation Systems       
  Product  3,755  3,561  3,859 
  Service  -  -  - 
  Total  3,755  3,561  3,859 
 Corporate       
  Product  -  -  - 
  Service  -  -  1 
  Total  -  -  1 
  $ 39,055$ 37,665$ 36,529 
 Depreciation and amortization       
  Aerospace$ 200$ 211$ 208 
  Automation and Control Solutions  350  352  364 
  Performance Materials and Technologies  288  215  216 
  Transportation Systems  90  85  96 
  Corporate  61  63  64 
  $ 989$ 926$ 948 
 Segment Profit       
  Aerospace$ 2,372$ 2,279$ 2,023 
  Automation and Control Solutions  2,437  2,232  2,083 
  Performance Materials and Technologies  1,271  1,154  1,042 
  Transportation Systems  498  432  485 
  Corporate  (227)  (218)  (276) 
  $ 6,351$ 5,879$ 5,357 
 Capital expenditures       
  Aerospace$ 205$ 191$ 174 
  Automation and Control Solutions  151  143  153 
  Performance Materials and Technologies  429  328  282 
  Transportation Systems  105  129  133 
  Corporate  57  93  48 
  $ 947$ 884$ 790 
   December 31, 
 Total Assets 2013 2012 2011 
  Aerospace$ 9,160$ 8,977$ 9,109 
  Automation and Control Solutions  20,382  18,754  19,127 
  Performance Materials and Technologies  6,827  6,396  5,402 
  Transportation Systems  2,219  2,047  1,991 
  Corporate  6,847  5,679  4,179 
  $ 45,435$ 41,853$ 39,808 

             
 A reconciliation of segment profit to consolidated income from continuing operations before taxes are as follows: 
             
    Years Ended December 31,  
    2013  2012  2011  
             
 Segment Profit $ 6,351 $ 5,879 $ 5,357  
 Other income (expense)(1)   202   25   33  
 Interest and other financial charges   (327)   (351)   (376)  
 Stock compensation expense(2)   (170)   (170)   (168)  
 Pension ongoing income (expense)(2)   90   (36)   (105)  
 Pension mark-to-market expense(2)   (51)   (957)   (1,802)  
 Other postretirement income (expense)(2)   (20)   (72)   86  
 Repositioning and other charges (2)   (663)   (443)   (743)  
  Income from continuing operations before taxes $ 5,412 $ 3,875 $ 2,282  
             
 (1) Equity income (loss) of affiliated companies is included in Segment Profit. 
             
 (2) Amounts included in cost of products and services sold and selling, general and administrative expenses.
   

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