Honeywell International (HON) 10-Q/A 3 Aug 09 2009 Q2 Quarterly report (amended) Financial data

Document and Entity Information

Document and Entity Information (USD $)
In Billions, except Share data	3 Months Ended Jun. 30, 2009	Jun. 30, 2008
Document and Entity Information
Entity Registrant Name	HONEYWELL INTERNATIONAL INC.
Document Type	10-Q
Amendment Flag	false
Document Period End Date	2009-06-30
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float		37.5
Entity Common Stock, Shares Outstanding	752,054,121
Entity Central Index Key	0000773840

Consolidated Statement of Opera

Consolidated Statement of Operations (USD $)
In Millions, except Per Share data	3 Months Ended Jun. 30, 2009	3 Months Ended Jun. 30, 2008	6 Months Ended Jun. 30, 2009	6 Months Ended Jun. 30, 2008
Product sales	$5,804	$7,832	$11,622	$14,988
Service sales	1,762	1,842	3,514	3,581
Net sales	7,566	9,674	15,136	18,569
Costs, expenses and other
Cost of products sold	4,516	6,089	9,124	11,596
Cost of services sold	1,166	1,234	2,314	2,399
Cost of goods and services sold	5,682	7,323	11,438	13,995
Selling, general and administrative expenses	1,084	1,290	2,236	2,545
Other (income) expense	51	(43)	53	(69)
Interest and other financial charges	123	115	240	230
Cost and operating expenses	6,940	8,685	13,967	16,701
Income before taxes	626	989	1,169	1,868
Tax expense	166	261	310	493
Net income	460	728	859	1,375
Less: Net Income attributable to the noncontrolling interest	10	5	12	9
Net income attributable to Honeywell	$450	$723	$847	$1,366
Earnings per share of common stock- basic:	0.6	0.97	1.14	1.84
Earnings per share of common stock- assuming dilution:	0.6	0.96	1.14	1.81
Cash dividends per share of common stock	0.3025	0.275	0.605	0.55

Consolidated Balance Sheet

Consolidated Balance Sheet (USD $)
In Millions	Jun. 30, 2009	Dec. 31, 2008
ASSETS
Cash and cash equivalents	$2,606	$2,065
Accounts, notes and other receivables	6,285	6,129
Inventories	3,593	3,848
Deferred income taxes	945	922
Other current assets	289	299
Total current assets	13,718	13,263
Investments and long-term receivables	463	670
Property, plant and equipment - net	4,795	4,934
Goodwill	10,236	10,185
Other intangible assets - net	2,141	2,267
Insurance recoveries for asbestos related liabilities	1,036	1,029
Deferred income taxes	1,715	2,135
Prepaid pension benefit cost	109	62
Other assets	924	945
Total assets	35,137	35,490
LIABILITIES
Accounts payable	3,132	3,773
Short-term borrowings	370	56
Commercial Paper	398	1,431
Current maturities of long-term debt	1,627	1,023
Accrued liabilities	5,468	6,006
Total current liabilities	10,995	12,289
Long-term debt	6,251	5,865
Deferred income taxes	691	698
Postretirement benefit obligations other than pensions	1,571	1,799
Asbestos related liabilities	1,557	1,538
Other liabilities	5,511	6,032
SHAREOWNERS' EQUITY
Capital - common stock issued	958	958
- additional paid-in capital	3,822	3,994
Common stock held in treasury, at cost	(9,447)	(10,206)
Accumulated other comprehensive income (loss)	(3,512)	(3,809)
Retained earnings	16,646	16,250
Total Honeywell shareowners' equity	8,467	7,187
Noncontrolling interest	94	82
Total shareowners' equity	8,561	7,269
Total liabilities and shareowners' equity	$35,137	$35,490

Consolidated Statement of Cash

Consolidated Statement of Cash Flows (USD $)
In Millions	6 Months Ended Jun. 30, 2009	6 Months Ended Jun. 30, 2008
Cash flows from operating activities:
Net income attributable to Honeywell	$847	$1,366
Adjustments to reconcile net income attributable to Honeywell to net cash provided by operating activities:
Depreciation and amortization	469	446
Repositioning and other charges	255	347
Net payments for repositioning and other charges	(294)	(140)
Pension and other postretirement expense	(3)	53
Pension and other postretirement payments	(96)	(103)
Stock compensation expense	77	76
Deferred income taxes	345	243
Excess tax benefits from share based payment arrangements	0	(19)
Other	286	77
Changes in assets and liabilities, net of the effects of acquisitions and divestitures:
Accounts, notes and other receivables	342	(620)
Inventories	254	(344)
Other current assets	8	(20)
Accounts payable	(641)	286
Accrued liabilities	(382)	115
Net cash provided by operating activities	1,467	1,763
Cash flows from investing activities:
Expenditures for property, plant and equipment	(226)	(339)
Proceeds from disposals of property, plant and equipment	17	50
Decrease in investments	1	14
Cash paid for acquisitions, net of cash acquired	(28)	(1,308)
Other	(48)	7
Net cash used for investing activities	(284)	(1,576)
Cash flows from financing activities:
Net decrease in commercial paper	(1,033)	(230)
Net (decrease)/increase in short-term borrowings	(193)	21
Proceeds from issuance of common stock	9	126
Proceeds from issuance of long-term debt	1,488	1,487
Payments of long-term debt	(493)	(425)
Excess tax benefits from share based payment arrangements	0	19
Repurchases of common stock	0	(441)
Cash dividends on common stock	(452)	(409)
Net cash (used for)/provided by financing activities	(674)	148
Effect of foreign exchange rate changes on cash and cash equivalents	32	40
Net increase in cash and cash equivalents	541	375
Cash and cash equivalents at beginning of period	2,065	1,829
Cash and cash equivalents at end of period	$2,606	$2,204

Basis of Presentation

Basis of Presentation
	3 Months Ended Jun. 30, 2009 USD / shares
Basis of Presentation [Abstract]
Basis of Presentation	NOTE 1. Basis of Presentation In the opinion of management, the accompanying unaudited consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, necessary to present fairly the financial position of Honeywell International Inc. and its consolidated subsidiaries at June 30, 2009 and the results of operations for the three and six months ended June 30, 2009 and 2008 and cash flows for the six months ended June 30, 2009 and 2008. The results of operations for the three and six month periods ended June 30, 2009 should not necessarily be taken as indicative of the results of operations that may be expected for the entire year. We report our quarterly financial information using a calendar convention; that is, the first, second and third quarters are consistently reported as ending on March 31, June 30 and September 30, respectively. It has been our practice to establish actual quarterly closing dates using a predetermined fiscal calendar, which requires our businesses to close their books on a Saturday in order to minimize the potentially disruptive effects of quarterly closing on our business processes. The effects of this practice are generally not significant to reported results for any quarter and only exist within a reporting year. In the event that differences in actual closing dates are material to year-over-year comparisons of quarterly or year-to-date results, we provide appropriate disclosures. Our actual closing dates for the three and six month periods ended June 30, 2009 and 2008 were July 4, 2009 and June 28, 2008, respectively. The financial information as of June 30, 2009 should be read in conjunction with the financial statements for the year ended December 31, 2008 contained in our Form 10-K filed on February 13, 2009. Certain prior year amounts have been reclassified to conform to current year presentation.

Recent Accounting Pronouncement

Recent Accounting Pronouncements
	3 Months Ended Jun. 30, 2009 USD / shares
Recent Accounting Pronouncements [Abstract]
Recent Accounting Pronouncements	NOTE 2. Recent Accounting Pronouncements Recent Accounting Pronouncements In September 2006, the FASB issued Statement of Financial Accounting Standard (SFAS) No. 157, Fair Value Measurements (SFAS No. 157). SFAS No. 157 establishes a common definition for fair value to be applied to U.S. GAAP requiring use of fair value, establishes a framework for measuring fair value, and expands disclosure about such fair value measurements. SFAS No. 157 is effective for financial assets and financial liabilities for fiscal years beginning after November 15, 2007. Issued in February 2008, FSP 157-1 Application of FASB Statement No. 157 to FASB Statement No. 13 and Other Accounting Pronouncements That Address Fair Value Measurements for Purposes of Lease Classification or Measurement under Statement 13 removed leasing transactions accounted for under Statement 13 and related guidance from the scope of SFAS No. 157. FSP 157-2 Partial Deferral of the Effective Date of Statement 157 (FSP 157-2), deferred the effective date of SFAS No. 157 for all nonfinancial assets and nonfinancial liabilities to fiscal years beginning after November 15, 2008. In October 2008, the FASB issued FSP 157-3 Determining Fair Value of a Financial Asset in a Market That is Not Active (FSP 157-3). FSP 157-3 clarified the application of SFAS No. 157 in an inactive market. It demonstrated how the fair value of a financial asset is determined when the market for that financial asset is inactive. FSP 157-3 was effective upon issuance, including prior periods for which financial statements had not been issued. In April 2009, the FASB issued FSP FAS 157-4, Determining Whether a Market Is Not Active and a Transaction Is Not Distressed (FSP 157-4). FSP 157-4 provides additional guidance on factors to consider in estimating fair value when there has been a significant decrease in market activity for a financial asset. FSP 157-4 is effective for interim and annual periods ending after June 15, 2009. The implementation of this standard did not have a material impact on our consolidated financial position and results of operations. The implementation of SFAS No. 157 for nonfinancial assets and nonfinancial liabilities, effective January 1, 2009, did not have a material impact on our consolidated financial position and results of operations. See Note 11 for additional SFAS No. 157 information and disclosure for financial and nonfinancial assets and liabilities. In December 2007, the FASB issued SFAS No. 141(revised 2007), Business Combinations (SFAS No. 141R). SFAS No. 141R provides revised guidance on how acquirors recognize and measure the consideration transferred, identifiable assets acquired, liabilities assumed, noncontrolling interests, and goodwill acquired in a business combination. SFAS No. 141R also expands required disclosures surrounding the nature and financial effects of business combinations. SFAS No. 141R is effective, on a prospective basis, for fiscal years beginning after December 15, 2008. Upon adoption, this standard did not have a material impact on our consolidated financial position and results of operations. However, if the Company enters

Acquisitions

Acquisitions
	3 Months Ended Jun. 30, 2009 USD / shares
Acquisitions [Abstract]
Acquisitions	Note 3. Acquisitions In June 2009, the Company entered into a definitive agreement to acquire the RMG Group (RMG Regel + Messtechnik GmbH), a natural gas measuring and control products, services and integrated solutions company, for approximately $400 million. Completion of this acquisition is subject to regulatory approval. The RMG Group will be integrated into our Automation and Control Solutions segment.

Repositioning and Other Charges

Repositioning and Other Charges
	3 Months Ended Jun. 30, 2009 USD / shares
Repositioning and Other Charges [Abstract]
Repositioning and Other Charges	NOTE 4. Repositioning and Other Charges A summary of repositioning and other charges follows: Three Months Ended Six Months Ended June 30, June 30, 2009 2008 2009 2008 Severance $ 80 $ 25 $ 142 $ 113 Asset impairments 2 21 4 32 Exit costs 2 16 3 20 Adjustments (18) - (39) - Total net repositioning charge 66 62 110 165 Asbestos related litigation charges, net of insurance 37 34 73 62 Probable and reasonably estimable environmental liabilities 36 51 67 117 Other 5 3 5 3 Total net repositioning and other charges $ 144 $ 150 $ 255 $ 347 The following table summarizes the pretax distribution of total net repositioning and other charges by income statement classification: Three Months Ended Six Months Ended June 30, June 30, 2009 2008 2009 2008 Cost of products and services sold $ 114 $ 135 $ 208 $ 306 Selling, general and administrative expenses 30 15 47 41 $ 144 $ 150 $ 255 $ 347 The following table summarizes the pretax impact of total net repositioning and other charges by segment: Three Months Ended Six Months Ended June 30, June 30, 2009 2008 2009 2008 Aerospace $ 34 $ 6 $ 32 $ 44 Automation and Control Solutions 4 3 27 38 Specialty Materials 1 2 5 2 Transportation Systems 62 69 113 125 Corporate 43 70 78 138 $ 144 $ 150 $ 255 $ 347 In the second quarter of 2009, we recognized repositioning charges totaling $84 million primarily for severance costs related to workforce reductions of 1,811 manufacturing and administrative positions principally in our Aerospace, Automation and Control Solutions and Transportation Systems segments. The workforce reductions were related to organizational realignments of portions of our Aerospace and Transportation Systems segments, adverse market conditions currently being experienced by many of our businesses and a factory transition in our Transportation Systems segment to a more cost-effective location. Also, $18 million of previously established accruals, primarily for severance at our Automation and Control Solutions and Aerospace segments, were returned to income in the second quarter of 2009 due principally to fewer employee separations than originally planned associated with prior severance programs. In the second quarter of 2008, we recognized a repositioning charge of $62 million including severance costs of $25 million related to workforce reduct

Other

Other (income) expense
	3 Months Ended Jun. 30, 2009 USD / shares
Other (income) expense [Abstract]
Other (income) expense	NOTE 5. Other (income) expense. Three Months Ended Six Months Ended June 30, June 30, 2009 2008 2009 2008 Equity (income)/loss of affiliated companies $ (9) $ (6) $ (15) $(22) Gain on sale of non-strategic Businesses and assets - (12) - (12) Interest income (6) (29) (18) (54) Foreign exchange 5 3 27 14 Other (net) 61 1 59 5 $ 51 $(43) $ 53 $(69) Other (net) includes an other-than-temporary impairment charge of $62 million recognized in the second quarter of 2009. See Note 11 for further details.

Earnings Per Share

Earnings Per Share
	3 Months Ended Jun. 30, 2009 USD / shares
Earnings Per Share [Abstract]
Earnings Per Share	NOTE 6. Earnings Per Share The details of the earnings per share calculations for the three months and six months ended June 30, 2009 and 2008 are as follows: Three Months Ended June 30, 2009 2008 Assuming Assuming Basic Dilution Basic Dilution Income Net income attributable to Honeywell $ 450 $ 450 $ 723 $ 723 Average shares Average shares outstanding 747.7 747.7 743.9 743.9 Dilutive securities issuable in connection with stock plans - 2.4 - 9.5 Total average shares outstanding 747.7 750.1 743.9 753.4 Earnings per share of common stock Net income attributable to Honeywell $ 0.60 $ 0.60 $ 0.97 $ 0.96 Six Months Ended June 30, 2009 2008 Assuming Assuming Basic Dilution Basic Dilution Income Net income attributable to Honeywell $ 847 $ 847 $1,366 $1,366 Average shares Average shares outstanding 742.7 742.7 743.7 743.7 Dilutive securities issuable in connection with stock plans - 2.0 - 9.4 Total average shares outstanding 742.7 744.7 743.7 753.1 Earnings per share of common stock Net income attributable to Honeywell $ 1.14 $ 1.14 $ 1.84 $ 1.81 The diluted earnings per share calculations exclude the effect of stock options when the options assumed proceeds exceed the average market price of the common shares during the period. For the three months ended June 30, 2009 and 2008, the number of stock options excluded from the computations were 45.6 and 10.3 million, respectively. For the six months ended June 30, 2009 and 2008, the number of stock options excluded from the computations were 43.4 and 8.9 million, respectively. These stock options were outstanding at the end of each of the respective periods.

Accounts, Notes and Other Recei

Accounts, Notes and Other Receivables
	3 Months Ended Jun. 30, 2009 USD / shares
Accounts, Notes and Other Receivables [Abstract]
Accounts, Notes and Other Receivables	NOTE 7. Accounts, Notes and Other Receivables June 30, 2009 December 31, 2008 Trade $6,049 $5,893 Other 454 422 6,503 6,315 Less - Allowance for doubtful accounts (218) (186) $6,285 $6,129

Inventories

Inventories
	3 Months Ended Jun. 30, 2009 USD / shares
Inventories [Abstract]
Inventories	NOTE 8. Inventories June 30, 2009 December 31, 2008 Raw materials $1,383 $1,644 Work in process 811 952 Finished products 1,568 1,415 3,762 4,011 Less Progress payments (2) (3) - Reduction to LIFO cost basis (167) (160) $3,593 $3,848 During the three and six months ended June 30, 2009, the quantity of inventory valued using the last-in, first-out (LIFO) method in our Specialty Materials segment declined. This reduction resulted in a liquidation of LIFO inventory quantities carried at lower of costs prevailing in prior years as compared with the cost of 2009 purchases, the effect of which decreased cost of products sold by $4 million during the second quarter of 2009.

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets, Net
	3 Months Ended Jun. 30, 2009 USD / shares
Goodwill and Other Intangible Assets - Net [Abstract]
Goodwill and Other Intangible Assets - Net	NOTE 9. Goodwill and Other Intangible Assets - Net The change in the carrying amount of goodwill for the six months ended June 30, 2009 by segment is as follows: Dec. 31, 2008 Acquisitions Divestitures Currency Translation Adjustment June, 30, 2009 Aerospace $ 1,882 $ - $ - $11 $ 1,893 Automation and Control Solutions 6,638 24 - 7 6,669 Specialty Materials 1,151 - - - 1,151 Transportation Systems 514 - - 9 523 $10,185 $ 24 $ - $27 $10,236 Other intangible assets are comprised of: June 30, 2009 December 31, 2008 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intangible assets with determinable lives: Patents and technology $1,030 $ (542) $ 488 $1,030 $ (494) $ 536 Customer relationships 1,260 (231) 1,029 1,250 (175) 1,075 Trademarks 167 (60) 107 164 (50) 114 Other 501 (380) 121 501 (362) 139 2,958 (1,213) 1,745 2,945 (1,081) 1,864 Trademarks with indefinite lives 396 - 396 403 - 403 $3,354 $(1,213) $2,141 $3,348 $(1,081) $2,267 Amortization expense related to intangible assets for the six months ended June 30, 2009 and 2008 was $125 and $103 million, respectively. We completed our annual impairment testing of goodwill and indefinite-lived intangibles as of March 31, 2009 and determined that there was no impairment as of that date.

Long-term Debt and Credit Agree

Long-term Debt and Credit Agreements
	3 Months Ended Jun. 30, 2009 USD / shares
Long-term Debt and Credit Agreements [Abstract]
Long-term Debt and Credit Agreements	NOTE 10. Long-term Debt and Credit Agreements June 30, 2009 December 31, 2008 Floating rate notes due 2009 $ - $ 300 Floating rate notes due 2009 500 500 Zero coupon bonds and money multiplier notes 13.0%-14.26%, due 2009 100 100 Floating rate notes due 2009-2011 - 193 7.50% notes due 2010 1,000 1,000 6-1/8% notes due 2011 500 500 5.625% notes due 2012 400 400 4.25% notes due 2013 3.875% notes due 2014 600 600 600 - 5.40% notes due 2016 400 400 5.30% notes due 2017 400 400 5.30% notes due 2018 5.00% notes due 2019 900 900 900 - Industrial development bond obligations, floating rate maturing at various dates through 2037 60 60 6-5/8% debentures due 2028 216 216 9.065% debentures due 2033 51 51 5.70% notes due 2036 550 550 5.70% notes due 2037 600 600 Other (including capitalized leases), 1.54%-11.00% maturing at various dates through 2017 101 118 7,878 6,888 Less current portion (1,627) (1,023) $ 6,251 $ 5,865 The schedule of principal payments on long term debt is as follows: At June 30, 2009 2009 $ 622 2010 1,018 2011 519 2012 401 2013 605 Thereafter 4,713 7,878 Less-current portion (1,627) $ 6,251 In February 2009, the Company issued $600 million 3.875% Senior Notes due 2014 and $900 million 5.00% Senior Notes due 2019 (collectively, the 2009 Senior Notes). The 2009 Senior Notes are senior unsecured and unsubordinated obligations of Honeywell and rank equally with all of Honeywells existing and future senior unsecured debt and senior to all of Honeywells subordinated debt. The offering resulted in gross proceeds of $1.5 billion, offset by $12 million in discount and issuance costs. We sell interests in designated pools of trade accounts receivables to third parties. In April 2009, we modified the terms of the trade accounts receivable program to permit the repurchase of receivables from the third parties at our discretion. This modification will provide additional flexibility in the management of the receivable portfolio and will also require the receivables in the program remain on the Company balance sheet. As a result, $500 million of program receivables were reflected as Accounts, notes and other receivables with a corresponding amount recorded as Short-term borrowings in the Consolidated Balance Sheet. As of June 30, 2009, these short-term borrowings were $300 million. This modification also results in the program costs being recognized as Interest and other financial charges in the Consolidated Statement of Operations on a prospective basis.

Financial Instruments and Fair

Financial Instruments and Fair Value Measures
	3 Months Ended Jun. 30, 2009 USD / shares
Financial Instruments and Fair Value Measures [Abstract]
Financial Instruments and Fair Value Measures	NOTE 11. Financial Instruments and Fair Value Measures Credit and Market RiskFinancial instruments, including derivatives, expose us to counterparty credit risk for nonperformance and to market risk related to changes in interest and currency exchange rates and commodity prices. We manage our exposure to counterparty credit risk through specific minimum credit standards, diversification of counterparties, and procedures to monitor concentrations of credit risk. Our counterparties in derivative transactions are substantial investment and commercial banks with significant experience using such derivative instruments. We monitor the impact of market risk on the fair value and cash flows of our derivative and other financial instruments considering reasonably possible changes in interest rates, currency exchange rates and commodity prices and restrict the use of derivative financial instruments to hedging activities. We continually monitor the creditworthiness of our customers to which we grant credit terms in the normal course of business. The terms and conditions of our credit sales are designed to mitigate or eliminate concentrations of credit risk with any single customer. Our sales are not materially dependent on a single customer or a small group of customers. Foreign Currency Risk ManagementWe conduct our business on a multinational basis in a wide variety of foreign currencies. Our exposure to market risk for changes in foreign currency exchange rates arises from international financing activities between subsidiaries, foreign currency denominated monetary assets and liabilities and transactions arising from international trade. Our objective is to preserve the economic value of non-functional currency denominated cash flows. We attempt to hedge transaction exposures with natural offsets to the fullest extent possible and, once these opportunities have been exhausted, through foreign currency exchange forward and option contracts with third parties. We hedge monetary assets and liabilities denominated in non-functional currencies. Prior to conversion into U.S. dollars, these assets and liabilities are remeasured at spot exchange rates in effect on the balance sheet date. The effects of changes in spot rates are recognized in earnings and included in Other (Income) Expense. We partially hedge forecasted sales and purchases, which predominantly occur in the next twelve months and are denominated in non-functional currencies, with currency forward contracts. Changes in the forecasted non-functional currency cash flows due to movements in exchange rates are substantially offset by changes in the fair value of the currency forward contracts designated as hedges. Market value gains and losses on these contracts are recognized in earnings when the hedged transaction is recognized. Open foreign currency exchange forward contracts mature predominantly in the next twelve months. At June 30, 2009, we had contracts with notional amounts of $3,622 million to exchange foreign currencies, principally the US dollar, Euro, British pound, Canadian dollar, Hong Kong dollar, Mexican peso, Swiss franc, Czech koruna, Chinese renmin

Comprehensive Income

Comprehensive Income(Loss)
	3 Months Ended Jun. 30, 2009 USD / shares
Comprehensive Income/(Loss) [abstract]
Comprehensive Income/(Loss)	NOTE 12. Comprehensive Income/(Loss) Comprehensive income/(loss) consists of the following: Three Months Ended June 30, Six Months Ended June 30, 2009 2008 2009 2008 Net income $460 $728 $ 859 $1,375 Foreign exchange translation adjustments 389 (67) 139 177 Pension and postretirement benefit adjustments 57 12 83 25 Change in fair value of effective cash flow hedges 46 (4) 24 (2) Change in unrealized losses on available for sale investments (1) 45 - 51 - 997 669 1,156 1,575 Comprehensive Income attributable to noncontrolling interest(2) (9) (5) (11) (9) Comprehensive Income/(Loss) attributable to Honeywell $988 $664 $1,145 $1,566 (1) Includes reclassification adjustment for losses included in net income. (2) Comprehensive Income/(Loss) attributable to noncontrolling interest consisted predominately of net income. Changes in Noncontrolling interest consist of the following: December 31, 2008 $82 Comprehensive Income/(Loss)attributable to noncontrolling interest 11 Capital contribution by noncontrolling shareholders 4 Dividends paid (3) June 30, 2009 $94 In the first six months of 2009 there were no increases or decreases to Honeywell additional paid in capital for purchases or sales of existing noncontrolling interests.

Segment Financial Data

Segment Financial Data
	3 Months Ended Jun. 30, 2009 USD / shares
Segment Financial Data [Abstract]
Segment Financial Data	NOTE 13. Segment Financial Data Honeywells 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. Three Months Ended Six Months Ended June 30, June 30, 2009 2008 2009 2008 Net Sales Aerospace $2,719 $3,281 $ 5,478 $ 6,311 Automation and Control Solutions 3,013 3,616 6,014 6,796 Specialty Materials 1,048 1,450 2,102 2,859 Transportation Systems 786 1,327 1,542 2,603 Corporate - - - - $7,566 $9,674 $15,136 $18,569 Segment Profit Aerospace $ 454 $ 602 $ 942 $ 1,165 Automation and Control Solutions 346 390 657 718 Specialty Materials 150 186 275 451 Transportation Systems 25 149 22 298 Corporate (45) (49) (90) (105) Total Segment Profit 930 1,278 1,806 2,527 Other income (expense) (A) (60) 37 (68) 47 Interest and other financial charges (123) (115) (240) (230) Stock compensation expense (B) (35) (35) (77) (76) Pension and other postretirement expense (B) 58 (26) 3 (53) Repositioning and other charges (B) (144) (150) (255) (347) Income before taxes $ 626 $ 989 $ 1,169 $ 1,868 (A) Equity income/(loss) of affiliated companies is included in Segment Profit. (B) Amounts included in cost of products and services sold and selling, general and administrative expenses.

Pension and Other Postretiremen

Pension and Other Postretirement Benefits
	3 Months Ended Jun. 30, 2009 USD / shares
Pension and Other Postretirement Benefits [Abstract]
Pension and Other Postretirement Benefits	NOTE 14. Pension and Other Postretirement Benefits Net periodic pension and other postretirement benefits costs for our significant defined benefit plans include the following components: Three Months Ended June 30, Six Months Ended June 30, 2009 2008 2009 2008 Pension Benefits Service cost $ 54 $ 67 $ 111 $ 134 Interest cost 250 262 492 524 Expected return on plan assets (333) (364) (654) (727) Amortization of prior service cost 5 7 12 14 Recognition of actuarial losses 45 12 81 24 Settlements and curtailments - - - 2 $ 21 $ (16) $ 42 $ (29) Three Months Ended June 30, Six Months Ended June 30, 2009 2008 2009 2008 Other Postretirement Benefits Service cost $ - $ 4 $ 3 $ 7 Interest cost 23 33 52 66 Amortization of prior service (credit) (12) (10) (22) (20) Recognition of actuarial losses (1) 8 7 17 Settlements and curtailments (98) - (98) - $ (88) $ 35 $ (58) $ 70 In both March 2009 and June 2009 we made $200 million voluntary contributions of Honeywell common stock to our U.S. pension plans to improve the funded status of our plans. On May 1, 2009, Honeywell amended the U.S. retiree medical plan eliminating the subsidy for non-union employees who retire after September 1, 2009. Employees already retired or who retire on or before September 1, 2009 will not be affected by this change. This plan amendment reduced the accumulated postretirement benefit obligation by $180 million representing the elimination of benefits attributable to years of service already rendered by active non-union employees who are not eligible to retire and those eligible non-union employees who are assumed not to retire prior to September 1, 2009. This reduction in the accumulated postretirement benefit obligation will be recognized as part of net periodic postretirement benefit cost over the average future service period to full eligibility of the remaining active union employees still eligible for a retiree medical subsidy. This plan amendment also resulted in a curtailment gain of $98 million which was included as part of net periodic postretirement benefit cost in the three and six months ended June 30, 2009. The curtailment gain represents the recognition of previously unrecognized negative prior service costs attributable to the future years of service of the employee group for which future accrual of benefits has been eliminated.

Commitments and Contingencies

Commitments and Contingencies
	3 Months Ended Jun. 30, 2009 USD / shares
Commitments and Contingencies [Abstract]
Commitments and Contingencies	NOTE 15. Commitments and Contingencies Environmental Matters We are subject to various federal, state, local and foreign government requirements relating to the protection of the environment. We believe that, as a general matter, our policies, practices and procedures are properly designed to prevent unreasonable risk of environmental damage and personal injury and that our handling, manufacture, use and disposal of hazardous substances are in accordance with environmental and safety laws and regulations. However, mainly because of past operations and operations of predecessor companies, we, like other companies engaged in similar businesses, have incurred remedial response and voluntary cleanup costs for site contamination and are a party to lawsuits and claims associated with environmental and safety matters, including past production of products containing hazardous substances. Additional lawsuits, claims and costs involving environmental matters are likely to continue to arise in the future. With respect to environmental matters involving site contamination, we continually conduct studies, individually or jointly with other potentially responsible parties, to determine the feasibility of various remedial techniques. It is our policy to record appropriate liabilities for environmental matters when remedial efforts or damage claim payments are probable and the costs can be reasonably estimated. Such liabilities are based on our best estimate of the undiscounted future costs required to complete the remedial work. The recorded liabilities are adjusted periodically as remediation efforts progress or as additional technical, regulatory or legal information becomes available. Given the uncertainties regarding the status of laws, regulations, enforcement policies, the impact of other potentially responsible parties, technology and information related to individual sites, we do not believe it is possible to develop an estimate of the range of reasonably possible environmental loss in excess of our recorded liabilities. We expect to fund expenditures for these matters from operating cash flow. The timing of cash expenditures depends on a number of factors, including the timing of remedial investigations and feasibility studies, the timing of litigation and settlements of remediation liability, personal injury and property damage claims, regulatory approval of cleanup projects, remedial techniques to be utilized and agreements with other parties. The following table summarizes information concerning our recorded liabilities for environmental costs: Six Months Ended June 30, 2009 Beginning of period $ 946 Accruals for environmental matters deemed probable and reasonably estimable 71 Environmental liability payments (133) End of period $ 884 Environmental liabilities are included in the following balance sheet accounts: June 30, 2009 December 31, 2008 Accrued liabilities $314 $343 Other liabilities 570 603 $884 $946 Although we do not currently possess sufficient in