"Garrett and Resideo are well-positioned for future success. Each has an impressive track record of innovation, differentiated technologies, a strong leadership team and significant opportunities for future growth. As independent, publicly-traded companies, both Garrett and Resideo will be better positioned to maximize shareowner value through focused strategic decision making and capital allocation tailored for their end markets," said Greg Lewis, Senior Vice President and Chief Financial Officer of Honeywell.

The Garrett Board of Directors intends to evaluate whether to pay a dividend to its shareowners once the spin-off is effective. The dividend decision will be based on the capital needs of the business and opportunities to retain future earnings for use in operation of the business and to fund future growth.

Resideo is a leading global provider of critical comfort and security solutions primarily in residential environments. Its ADI Global Distribution business is the leading wholesale distributor of security and low voltage products. In 2017, Resideo sales were approximately $4.5 billion. Honeywell will license the Honeywell Home brand to Resideo under a long-term agreement for use in certain of its home comfort and security hardware and software solutions. The Resideo Board of Directors intends to pay a regular dividend to shareowners once the spin-off is effective.

Following the spins, Honeywell will have a simpler, more focused portfolio that operates in fewer end markets as we transform into a software-industrial company. The announced transactions are expected to strengthen Honeywell's already-strong financial position through a combination of one-time dividends and ongoing reimbursements from the spin companies for the majority of Honeywell's environmental and Bendix asbestos payments. On or around the effective date of each spin, Honeywell will receive one-time dividends from Garrett and Resideo, totaling approximately $3 billion.