XML 45 R18.htm IDEA: XBRL DOCUMENT v3.25.1
DERIVATIVE INSTRUMENTS AND HEDGING TRANSACTIONS
 3 Months Ended
Mar. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVE INSTRUMENTS AND HEDGING TRANSACTIONS DERIVATIVE INSTRUMENTS AND HEDGING TRANSACTIONS
Honeywell's foreign currency, interest rate, credit, and commodity price risk management policies are described in Note 11 Derivative Instruments and Hedging Transactions of Notes to Consolidated Financial Statements in the Company's 2024 Annual Report on Form 10-K.
The following table summarizes the notional amounts and fair values of the Company’s outstanding derivatives by risk category and instrument type within the Consolidated Balance Sheet:
NotionalFair Value AssetFair Value (Liability)
March 31, 2025December 31, 2024March 31, 2025December 31, 2024March 31, 2025December 31, 2024
Derivatives in fair value hedging relationships   
Interest rate swap agreements$3,949 $3,899 $11 $3 $(123)$(139)
Derivatives in cash flow hedging relationships
Foreign currency exchange contracts978 1,235 9 30 (9)(10)
Commodity contracts1 1 — — — — 
Derivatives in net investment hedging relationships
Cross currency swap agreements7,214 7,214 25 124 (202)(56)
Total derivatives designated as hedging instruments12,142 12,349 45 157 (334)(205)
Derivatives not designated as hedging instruments
Foreign currency exchange contracts8,454 8,773 1 3 (6)(5)
Total Derivative instruments$20,596 $21,122 $46 $160 $(340)$(210)
All derivative assets are presented in Other current assets or Other assets. All derivative liabilities are presented in Accrued liabilities or Other liabilities.
In addition to the foreign currency derivative contracts designated as net investment hedges, certain of the Company's foreign currency denominated debt instruments are designated as net investment hedges. The carrying value of those debt instruments designated as net investment hedges, which includes the adjustment for the foreign currency transaction gain or loss on those instruments, was $6,399 million and $6,158 million as of March 31, 2025, and December 31, 2024, respectively.
The following table sets forth the amounts recorded in the Consolidated Balance Sheet related to cumulative basis adjustments for fair value hedges:
Carrying Amount
of Hedged Item		Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of Hedged Item
March 31, 2025December 31, 2024March 31, 2025December 31, 2024
Long-term debt$3,837 $3,763 $(112)$(136)
The following tables summarize the location and impact to the Consolidated Statement of Operations related to derivative instruments:
Three Months Ended March 31, 2025
Net SalesCost of
Products Sold		Cost of
Services Sold		Selling,
General and
Administrative
Expenses		Other
(Income)
Expense		Interest and Other
Financial Charges
$9,822 $4,251 $1,786 $1,361 $(200)$286 
Gain (loss) on cash flow hedges
Foreign currency exchange contracts
Amount reclassified from accumulated other comprehensive loss into income1 2 1 (2)— — 
Gain (loss) on fair value hedges
Interest rate swap agreements
Hedged items— — — — — (24)
Derivatives designated as hedges— — — — — 24 
Gain (loss) on derivatives not designated as hedging instruments
Foreign currency exchange contracts— — — — (144)— 
Three Months Ended March 31, 2024
Net SalesCost of
Products Sold		Cost of
Services Sold		Selling,
General and
Administrative
Expenses		Other
(Income)
Expense		Interest and Other
Financial Charges
$9,105 $4,035 $1,548 $1,302 $(231)$220 
Gain (loss) on cash flow hedges
Foreign currency exchange contracts
Amount reclassified from accumulated other comprehensive loss into income1 2 1 1 — — 
Gain (loss) on fair value hedges
Interest rate swap agreements
Hedged items— — — — — 42 
Derivatives designated as hedges— — — — — (42)
Gain (loss) on derivatives not designated as hedging instruments
Foreign currency exchange contracts— — — — 23 — 
The following table summarizes the amounts of gain or (loss) on net investment hedges recognized in Accumulated other comprehensive loss:
Three Months Ended March 31,
20252024
Euro-denominated long-term debt$(198)$39 
Euro-denominated commercial paper(42)19 
Cross currency swap agreements(245)75