Prior to the Spin-Off, the Consolidated and Combined Interim Financial Statements were prepared on a stand-alone basis and are derived from the Consolidated Interim Financial Statements and accounting records of Honeywell.

Honeywell provided certain services, such as legal, accounting, information technology, human resources and other infrastructure support, on behalf of the Business. The cost of these services has been allocated to the Business on the basis of the proportion of revenues. The Business and Honeywell consider the allocations to be a reasonable reflection of the benefits received by the Business. During the three and six months ended June 30, 2018, the Business was allocated $32 million and $61 million, respectively, of general corporate expenses incurred by Honeywell, and such amounts are included within Selling, general and administrative expenses in the Consolidated and Combined Interim Statements of Operations. As certain expenses reflected in the Consolidated and Combined Interim Financial Statements for the three and six months ended June 30, 2018 include allocations of corporate expenses from Honeywell, these statements could differ from those that would have been prepared had the Business operated on a stand-alone basis.

The Company received interest income for related party notes receivables of less than $1 million for both the three and six months ended June 30, 2018. Additionally, the Company incurred interest expense for related party notes payable of $0 million and $1 million for the three and six months ended June 30, 2018, respectively.

Net transfers to and from Honeywell are included within Invested deficit on the Consolidated and Combined Interim Statements of Equity. The components of the net transfers to and from Honeywell for the three and six months ended June 30, 2018 are as follows:

	Three Months Ended June 30,			Six Months Ended June 30,
	2018			2018
General financing activities	$	(110	)	$	1,731
Distribution to Former Parent		(567	)		(1,366	)
Unbilled corporate allocations		(3	)		26
Stock compensation expense and other compensation awards		5			12
Pension expense		3			5
Total net (increase) decrease in Invested deficit	$	(672	)	$	408