Tax valuation allowance adjustment

[TABLE OF CONTENTS](#i72efc1fa764e42bfa26060268f6277f4_7)HONEYWELL INTERNATIONAL INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Unaudited)(Dollars in tables in millions, except per share amounts)During the nine months ended September 30, 2022, the Company recognized $291 million of Other charges. The Other charges include costs incurred related to the initial suspension (the Suspension) and Wind down of our businesses and operations in Russia. These costs impacted all reportable business segments, with the most significant impact within the Performance Materials and Technologies reportable business segment. The Other charges include costs recorded in Cost of products sold, Selling, general and administrative expenses, or Other (income) expense on the Consolidated Statement of Operations. For the nine months ended September 30, 2022, Cost of products and services sold includes $60 million primarily related to inventory reserves and the write-down of other assets, Selling, general and administrative includes $183 million primarily related to reserves against outstanding accounts receivable and contract assets, impairment of intangible assets, the write-down of other assets, and employee severance, and Other (income) expense includes $48 million related to foreign exchange revaluation on an intercompany loan with a Russian affiliate, impairment of property, plant and equipment, and expenses for called guarantees. For the nine months ended September 30, 2022, the Other charges does not include a $2 million tax valuation allowance recorded to Tax expense on the Consolidated Statement of Operations, directly attributable to our Wind down of businesses and operations in Russia. Given the uncertainty inherent in the Company's remaining obligations related to our contracts with Russian counterparties, the Company does not believe it is possible to develop estimates of reasonably possible loss in excess of current accruals for these matters (other than as specifically set forth above). Based on available information to date, the Company’s estimate of potential future losses or other contingencies related to Suspension and Wind down activities, including any guarantee payments or any litigation costs or as otherwise related to the Company's Wind down in Russia, could adversely affect the Company's consolidated results of operations in the periods recognized but would not be material with respect to the Company's consolidated financial position. See Note 14 Commitments and Contingencies for a discussion of the recognition and measurement of estimate for contingencies.NOTE 6. INCOME TAXES The effective tax rate was higher than the U.S. federal statutory rate of 21% and increased during 2022 compared to 2021 primarily due to charges and accrual of reserves directly attributable to the initial Suspension and Wind down of our businesses and operations in Russia without corresponding tax benefit, an expense related to UOP matters without corresponding tax benefit, lower tax benefits for employee share-based compensation, and incremental tax reserves and state taxes, partially offset by the favorable resolution of certain foreign tax matters.NOTE 7. INVENTORIES 

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|   | September 30, 2022 | December 31, 2021 |
| Raw materials |  | $ | 1,394  |  |  | $ | 1,352  |  |
| Work in process |  | 1,041  |  |  | 861  |  |
| Finished products |  | 3,066  |  |  | 2,925  |  |
|   |  | $ | 5,501  |  |  | $ | 5,138  |  |
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13 Honeywell International Inc. 
