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. | ||||||||||||