Honeywell International (HON) 10-K 12 Feb 10 2009 FY Annual report Financial data

Document and Entity Information

Document and Entity Information (USD $)
In Billions, except Share data	12 Months Ended Dec. 31, 2009	Jan. 31, 2010	Jun. 30, 2009
Document and Entity Information [Abstract]
Entity Registrant Name	HONEYWELL INTERNATIONAL INC
Document Type	10-K
Amendment Flag	false
Document Period End Date	2009-12-31
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			23.2
Entity Common Stock, Shares Outstanding		764,552,212
Entity Central Index Key	0000773840

Consolidated Statement of Opera

Consolidated Statement of Operations (USD $)
In Millions, except Per Share data	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Product sales	$23,914	$29,212	$27,805
Service sales	6,994	7,344	6,784
Net sales	30,908	36,556	34,589
Costs, expenses and other
Cost of products sold	18,637	23,043	21,629
Cost of services sold	4,548	4,951	4,671
Cost of goods and services sold	23,185	27,994	26,300
Selling, general and administrative expenses	4,341	5,033	4,565
Other (income) expense	(55)	(748)	(69)
Interest and other financial charges	459	456	456
Cost and operating expenses	27,930	32,735	31,252
Income before taxes	2,978	3,821	3,337
Tax expense	789	1,009	877
Net income	2,189	2,812	2,460
Less: Net income attributable to the noncontrolling interest	36	20	16
Net income attributable to Honeywell	$2,153	$2,792	$2,444
Earnings per share of common stock- basic	2.86	3.79	3.2
Earnings per share of common stock- assuming dilution	2.85	3.76	3.16

Consolidated Balance Sheet

Consolidated Balance Sheet (USD $)
In Millions	Dec. 31, 2009	Dec. 31, 2008
ASSETS
Cash and cash equivalents	$2,801	$2,065
Accounts, notes and other receivables	6,274	6,129
Inventories	3,446	3,848
Deferred income taxes	1,034	922
Other current assets	381	299
Total current assets	13,936	13,263
Investments and long-term receivables	579	670
Property, plant and equipment - net	4,847	4,934
Goodwill	10,494	10,185
Other intangible assets - net	2,174	2,267
Insurance recoveries for asbestos related liabilities	941	1,029
Deferred income taxes	2,017	2,135
Other assets	1,016	1,007
Total assets	36,004	35,490
LIABILITIES
Accounts payable	3,633	3,773
Short-term borrowings	45	56
Commercial Paper	298	1,431
Current maturities of long-term debt	1,018	1,023
Accrued liabilities	6,153	6,006
Total current liabilities	11,147	12,289
Long-term debt	6,246	5,865
Deferred income taxes	542	698
Postretirement benefit obligations other than pensions	1,594	1,799
Asbestos related liabilities	1,040	1,538
Other liabilities	6,481	6,032
SHAREOWNERS' EQUITY
Capital - common stock issued	958	958
- additional paid-in capital	3,823	3,994
Common stock held in treasury, at cost	(8,995)	(10,206)
Accumulated other comprehensive income (loss)	(4,429)	(3,809)
Retained earnings	17,487	16,250
Total Honeywell shareowners' equity	8,844	7,187
Noncontrolling interest	110	82
Total shareowners' equity	8,954	7,269
Total liabilities and shareowners' equity	$36,004	$35,490

Consolidated Statement of Cash

Consolidated Statement of Cash Flows (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Cash flows from operating activities:
Net income attributable to Honeywell	$2,153	$2,792	$2,444
Adjustments to reconcile net income attributable to Honeywell to net cash provided by operating activities:
Depreciation and amortization	957	903	837
Gain on sale of non-strategic businesses and assets	(87)	(635)	(19)
Repositioning and other charges	478	1,012	543
Net payments for repositioning and other charges	(658)	(446)	(504)
Pension and other postretirement expense	93	113	322
Pension and other postretirement payments	(189)	(214)	(300)
Stock compensation expense	118	128	112
Deferred income taxes	371	115	332
Excess tax benefits from share based payment arrangements	(1)	(21)	(86)
Other	261	81	133
Changes in assets and liabilities, net of the effects of acquisitions and divestitures:
Accounts, notes and other receivables	344	392	(467)
Inventories	479	(161)	(183)
Other current assets	(31)	25	17
Accounts payable	(167)	(152)	397
Accrued liabilities	(175)	(141)	333
Net cash provided by operating activities	3,946	3,791	3,911
Cash flows from investing activities:
Expenditures for property, plant and equipment	(609)	(884)	(767)
Proceeds from disposals of property, plant and equipment	31	53	98
Increase in investments	(24)	(6)	(20)
Decrease in investments	1	18	6
Cash paid for acquisitions, net of cash acquired	(468)	(2,181)	(1,150)
Proceeds from sales of businesses, net of fees paid	1	909	51
Other	(65)	68	0
Net cash used for investing activities	(1,133)	(2,023)	(1,782)
Cash flows from financing activities:
Net (decrease)/increase in commercial paper	(1,133)	(325)	1,078
Net decrease in short-term borrowings	(521)	(1)	(3)
Payments of debt assumed with acquisitions	0	0	(40)
Proceeds from issuance of common stock	37	146	603
Proceeds from issuance of long-term debt	1,488	1,487	1,885
Payments of long-term debt	(1,106)	(428)	(430)
Excess tax benefits from share based payment arrangements	1	21	86
Repurchases of common stock	0	(1,459)	(3,986)
Cash dividends paid	(918)	(811)	(767)
Net cash used for financing activities	(2,152)	(1,370)	(1,574)
Effect of foreign exchange rate changes on cash and cash equivalents	75	(162)	50
Net increase in cash and cash equivalents	736	236	605
Cash and cash equivalents at beginning of period	2,065	1,829	1,224
Cash and cash equivalents at end of period	$2,801	$2,065	$1,829

Consolidated Statement of Share

Consolidated Statement of Shareowners Equity and Comprehensive Income (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007	12 Months Ended Dec. 31, 2009 Other Additional Capital [Member]	12 Months Ended Dec. 31, 2008 Other Additional Capital [Member]	12 Months Ended Dec. 31, 2007 Other Additional Capital [Member]	Dec. 31, 2006 Other Additional Capital [Member]	12 Months Ended Dec. 31, 2009 Treasury Stock [Member]	12 Months Ended Dec. 31, 2008 Treasury Stock [Member]	12 Months Ended Dec. 31, 2007 Treasury Stock [Member]	Dec. 31, 2006 Treasury Stock [Member]	12 Months Ended Dec. 31, 2009 Retained Earnings, Unappropriated [Member]	12 Months Ended Dec. 31, 2008 Retained Earnings, Unappropriated [Member]	12 Months Ended Dec. 31, 2007 Retained Earnings, Unappropriated [Member]	Dec. 31, 2006 Retained Earnings, Unappropriated [Member]	Dec. 31, 2009 Accumulated Other Comprehensive Income [Member]	Dec. 31, 2008 Accumulated Other Comprehensive Income [Member]	Dec. 31, 2007 Accumulated Other Comprehensive Income [Member]	Dec. 31, 2006 Accumulated Other Comprehensive Income [Member]	12 Months Ended Dec. 31, 2009 Accumulated Net Unrealized Investment Gain (Loss) [Member]	12 Months Ended Dec. 31, 2008 Accumulated Net Unrealized Investment Gain (Loss) [Member]	12 Months Ended Dec. 31, 2009 Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member]	12 Months Ended Dec. 31, 2008 Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member]	12 Months Ended Dec. 31, 2007 Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member]	12 Months Ended Dec. 31, 2009 Accumulated Translation Adjustment [Member]	12 Months Ended Dec. 31, 2008 Accumulated Translation Adjustment [Member]	12 Months Ended Dec. 31, 2007 Accumulated Translation Adjustment [Member]	12 Months Ended Dec. 31, 2009 Accumulated Defined Benefit Plans Adjustment [Member]	12 Months Ended Dec. 31, 2008 Accumulated Defined Benefit Plans Adjustment [Member]	12 Months Ended Dec. 31, 2007 Accumulated Defined Benefit Plans Adjustment [Member]	12 Months Ended Dec. 31, 2009 Noncontrolling Interest [Member]	12 Months Ended Dec. 31, 2008 Noncontrolling Interest [Member]	12 Months Ended Dec. 31, 2007 Noncontrolling Interest [Member]	Dec. 31, 2006 Noncontrolling Interest [Member]	12 Months Ended Dec. 31, 2009 Comprehensive Income [Member]	12 Months Ended Dec. 31, 2008 Comprehensive Income [Member]	12 Months Ended Dec. 31, 2007 Comprehensive Income [Member]	Dec. 31, 2009 Common Stock [Member]	Dec. 31, 2008 Common Stock [Member]	Dec. 31, 2007 Common Stock [Member]
Increase (Decrease) in Shareowners' Equity [Roll Forward]
Common stock, par value, shares																																						957.6	957.6	957.6
Balance, treasury stock, shares								(223)	(211)	(157)
Reacquired stock or repurchases of common stock, shares									-27.4	-74.2
Issued for employee savings and option plans, shares								6.6	9	20
Contributed to pension plans, shares								23	6.1
Other owner changes, shares									0.3	0.2
Ending balance, treasury stock, shares								-193.4	(223)	(211)	(157)
Balance	$7,269	$9,293		$3,994	$4,014	$3,845		($10,206)	($9,479)	($6,339)		$16,250	$14,273	$12,563																	$82	$71	$57
Reacquired stock or repurchases of common stock									(1,459)	(3,987)
Issued for employee savings and option plans								281	427	837
Issued for employee savings and option plans				(99)	(56)	54
Contributed to pension plans								930	290
Contributed to pension plans				(190)	(90)
Stock-based compensation expense				118	128	112
Other owner changes					(2)	3
Other owner changes									15	10
Net income attributable to Honeywell	2,153	2,792	2,444									2,153	2,792	2,444
Dividends paid on common stock												(916)	(815)	(767)
Uncertain tax positions														33
Foreign exchange translation adjustment																									259	(614)	248								259	(614)	248
Dividends paid																															(9)	(7)
Pensions and other post retirement benefit adjustments																												(1,021)	(2,576)	518					(1,021)	(2,576)	518
Change in fair value of available for sale investments																				112	(51)														112	(51)
Changes in fair value of effective cash flow hedges																						30	(24)	(3)											30	(24)	(3)
Net Income (Loss) Attributable to Noncontrolling Interest [Abstract]
Acquisitions																															5	4
Interest sold (bought)																																(3)
Comprehensive income attributable to non controlling interest	36	20	16																												36	20	16
Comprehensive income attributable to non controlling interest																																			(36)	(20)	(16)
Foreign exchange translation adjustment																															(1)	(2)
Other owner changes																															(3)	(1)	(2)
Total shareowners equity	8,954	7,269	9,293	3,823	3,994	4,014	3,845	(8,995)	(10,206)	(9,479)	(6,339)	17,487	16,250	14,273	12,563	(4,429)	(3,809)	(544)	(1,307)												110	82	71	57				958	958	958
Net income	2,189	2,812	2,460																																2,189	2,812	2,460
Comprehensive income (loss) attributable to Honeywell																																			$1,533	($473)	$3,207
Total shareowners equity shares	764.2	734.6	746.6

Summary of Significant Accounti

Summary of Significant Accounting Policies
	12 Months Ended Dec. 31, 2009 USD / shares
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	Note 1Summary of Significant Accounting Policies Accounting PrinciplesThe financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America. The following is a description of the significant accounting policies of Honeywell International Inc. Principles of ConsolidationThe consolidated financial statements include the accounts of Honeywell International Inc. and all of its subsidiaries and entities in which a controlling interest is maintained. Our consolidation policy requires the consolidation of entities where a controlling financial interest is obtained as well as consolidation of variable interest entities in which we bear a majority of the risk to the entities potential losses or stand to gain from a majority of the entities expected returns. All intercompany transactions and balances are eliminated in consolidation. Cash and Cash EquivalentsCash and cash equivalents include cash on hand and on deposit and highly liquid, temporary cash investments with an original maturity of three months or less. InventoriesInventories are valued at the lower of cost or market using the first-in, first-out or the average cost method and the last-in, first-out (LIFO) method for certain qualifying domestic inventories. InvestmentsInvestments in affiliates over which we have a significant influence, but not a controlling interest, are accounted for using the equity method of accounting. Other investments are carried at market value, if readily determinable, or at cost. All equity investments are periodically reviewed to determine if declines in fair value below cost basis are other-than-temporary. Significant and sustained decreases in quoted market prices or a series of historic and projected operating losses by investees are strong indicators of other-than-temporary declines. If the decline in fair value is determined to be other-than-temporary, an impairment loss is recorded and the investment is written down to a new carrying value. Property, Plant and EquipmentProperty, plant and equipment are recorded at cost, including any asset retirement obligations, less accumulated depreciation. For financial reporting, the straight-line method of depreciation is used over the estimated useful lives of 10 to 50 years for buildings and improvements and 2 to 16 years for machinery and equipment. Recognition of the fair value of obligations associated with the retirement of tangible long-lived assets is required when there is a legal obligation to incur such costs. Upon initial recognition of a liability, the cost is capitalized as part of the related long-lived asset and depreciated over the corresponding assets useful life. See Note 11 and Note 17 for additional details. Goodwill and Indefinite-Lived Intangible AssetsGoodwill represents the excess of acquisition costs over the fair value of tangible net assets and identifiable intangible assets of businesses acquired. Goodwill and certain other intangible assets deemed to have indefinite lives are not amortized. Intangible assets determined to have definite lives are amortized over their useful lives. Goodwill an

Acquisitions and Divestitures

Acquisitions and Divestitures
	12 Months Ended Dec. 31, 2009 USD / shares
Acquisitions and Divestitures
Acquisitions and Divestitures	Note 2Acquisitions and Divestitures We acquired businesses for an aggregate cost of $468, $2,181 and $1,190 million in 2009, 2008 and 2007, respectively. For all of our acquisitions the acquired businesses were recorded at their estimated fair values at the dates of acquisition. Significant acquisitions made in these years are discussed below. In August 2009, the Company completed the acquisition of the RMG Group (RMG Regel + Messtechnik GmbH), a natural gas measuring and control products, services and integrated solutions company, for a purchase price of approximately $416 million, net of cash acquired. The purchase price for the acquisition was allocated to the tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values at the acquisition date. The Company has assigned $174 million to identifiable intangible assets, predominantly customer relationships, existing technology and trademarks. These intangible assets are being amortized over their estimated lives using straight-line and accelerated amortization methods. The excess of the purchase price over the estimated fair values of net assets acquired (approximating $225 million), was recorded as goodwill. This goodwill is non-deductible for tax purposes. This acquisition was accounted for by the acquisition method, and, accordingly, results of operations are included in the consolidated financial statements from the date of acquisition. The results from the acquisition date through December 31, 2009 are included in the Automation and Control Solutions segment and were not material to the consolidated financial statements. As of December 31, 2009, the purchase accounting for the RMG Group is still subject to adjustment primarily for useful lives of intangible assets, amounts allocated to intangible assets and goodwill, and for certain pre-acquisition contingencies. In May 2008, the Company completed the acquisition of Safety Products Holding, Inc, which through its subsidiary Norcross Safety Products L.L.C. (Norcross) is a leading manufacturer of personal protective equipment. The purchase price, net of cash acquired, was approximately $1.2 billion and was allocated to tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values at the acquisition date. The following table summarizes the estimated fair values of the assets and liabilities acquired as of the acquisition date. Accounts and other receivables ........................................................... $ 102 Inventories .......................................................................................... 118 Other current assets ............................................................................ 28 Property, plant and equipment ............................................................. 65 Intangible assets ................................................................................. 702 Other assets and deferred charges ....................................................... 3 Accounts payable ............................................

Repositioning and Other Charges

Repositioning and Other Charges
	12 Months Ended Dec. 31, 2009 USD / shares
Repositioning and Other Charges
Repositioning and Other Charges	Note 3Repositioning and Other Charges A summary of repositioning and other charges follows: Years Ended December 31, 2009 2008 2007 Severance .................................................................................................................. $ 206 $ 333 $ 186 Asset impairments ...................................................................................................... 8 78 14 Exit costs ................................................................................................................... 10 33 9 Reserve adjustments ................................................................................................... (53 ) (20 ) (18 ) Total net repositioning charge ................................................................................... 171 424 191 Asbestos related litigation charges, net of insurance .................................................... 155 125 100 Probable and reasonably estimable environmental liabilities .......................................... 145 465 225 Business impairment charges ...................................................................................... 9 Other .......................................................................................................................... 7 (2 ) 18 Total net repositioning and other charges .................................................................. $ 478 $ 1,012 $ 543 The following table summarizes the pretax distribution of total net repositioning and other charges by income statement classification. Years Ended December 31, 2009 2008 2007 Cost of products and services sold ............................................................................. $ 411 $ 908 $ 495 Selling, general and administrative expenses ................................................................ 67 104 48 $ 478 $ 1,012 $ 543 The following table summarizes the pretax impact of total net repositioning and other charges by segment. Years Ended December 31, 2009 2008 2007 Aerospace .................................................................................................................. $ 31 $ 84 $ 37 Automation and Control Solutions ............................................................................... 70 164 127 Specialty Materials ...................................................................................................... 9 42 14 Transportation Systems .............................................................................................. 173 233 119 Corporate ................................................................................................................... 195 489 246 $ 478 $ 1,012 $ 543 In 2009, we recognized repo

Other

Other (Income)Expense
	12 Months Ended Dec. 31, 2009 USD / shares
Other (Income) Expense
Other (Income) Expense	Note 4Other (Income)/Expense Years Ended December 31, 2009 2008 2007 Gain on sale of non-strategic businesses and assets ............................... $ (87 ) $ (635 ) $ (19 ) Equity (income)/loss of affiliated companies ........................................... (26 ) (63 ) (10 ) Interest income ...................................................................................... (33 ) (102 ) (81 ) Foreign exchange .................................................................................. 45 52 34 Other (net) ............................................................................................. 46 0 7 $ (55 ) $ (748 ) $ (69 ) Gain on sale of non-strategic businesses and assets for 2009 includes a $50 million pre-tax gain, $42 million net of tax, related to the deconsolidation of a subsidiary within our Automation and Control Solutions segment. The subsidiary achieved contractual milestones at December 31, 2009 and as a result, we are no longer the primary beneficiary, resulting in deconsolidation. We continue to hold a non-controlling interest which was recorded at its estimated fair value of $67 million upon deconsolidation. The fair value was estimated using a combination of a market and income approaches utilizing observable market data for comparable businesses and discounted cash flow modeling. Our non-controlling interest, classified within Investments and long-term receivables on our Balance Sheet will be accounted for under the equity method on a prospective basis. Other (net) for 2009 includes an other-than-temporary impairment charge of $62 million recognized in the second quarter of 2009. See Note 16, Financial Instruments and Fair Value Measures for further details. Gain on sale of non-strategic businesses and assets for 2008 includes a $623 million pre-tax gain related to the sale of our Consumables Solutions business. See Note 2 for further details.

Interest and Other Financial Ch

Interest and Other Financial Charges
	12 Months Ended Dec. 31, 2009 USD / shares
Interest and Other Financial Charges
Interest and Other Financial Charges	Note 5Interest and Other Financial Charges Years Ended December 31, 2009 2008 2007 Total interest and other financial charges ......................................... $ 474 $ 482 $ 478 Lesscapitalized interest ................................................................ (15 ) (26 ) (22 ) $ 459 $ 456 $ 456 The weighted average interest rate on short-term borrowings and commercial paper outstanding at December 31, 2009 and 2008 was 1.47 percent and 1.63 percent, respectively.

Income Taxes

Income Taxes
	12 Months Ended Dec. 31, 2009 USD / shares
Income Taxes
Income Taxes	Note 6Income Taxes Income from continuing operations before taxes Years Ended December 31, 2009 2008 2007 United States ........................................................................ $ 1,744 $ 2,003 $ 2,084 Foreign ................................................................................. 1,234 1,818 1,253 $ 2,978 $ 3,821 $ 3,337 Tax expense Years Ended December 31, 2009 2008 2007 United States ........................................................................ $ 528 $ 696 $ 542 Foreign ................................................................................. 261 313 335 $ 789 $ 1,009 $ 877 Years Ended December 31, 2009 2008 2007 Tax expense consist of: Current: United States ................................................................. $ (27 ) $ 493 $ 249 State ............................................................................. 21 70 64 Foreign .......................................................................... 424 331 232 418 894 545 Deferred: United States ................................................................. 484 106 225 State ............................................................................. 50 26 4 Foreign .......................................................................... (163 ) (17 ) 103 371 115 332 $ 789 $ 1,009 $ 877 Years Ended December 31, 2009 2008 2007 The U.S. statutory federal income tax rate is reconciled to our effective income tax rate as follows: Statutory U.S. federal income tax rate ............................................... 35.0 % 35.0 % 35.0 % Taxes on foreign earnings below U.S. tax rate (1) ................................ (6.2) (6.5 ) (4.7 ) State income taxes (1) ..................................................................... 1.7 1.8 .9 Manufacturing incentives ................................................................... (1.0) (.7 ) (.8 ) ESOP dividend tax benefit ................................................................ (.8) (.5 ) (.5 ) Tax credits ...................................................................................... (1.2) (1.0 ) (.6 ) Audit settlements ............................................................................. (.5) (1.5 ) (2.9 ) All other itemsnet ......................................................................... (.5) (.2 ) (.1 ) 26.5 % 26.4 % 26.3 % (1) Net of changes in valuation allowance. The effective tax rate increased by 0.1 of a percentage point in 2009 compared with 2008 due principally to a decreas

Earnings

Earnings (Loss) Per Share
	12 Months Ended Dec. 31, 2009 USD / shares
Earnings (Loss) Per Share
Earnings (Loss) Per Share	Note 7Earnings (Loss) Per Share The following table sets forth the computations of basic and diluted earnings (loss) per share: Basic 2009 2008 2007 Net income attributable to Honeywell.. $ 2,153 $ 2,792 $ 2,444 Weighted average number of common shares outstanding. 752,620,148 736,763,174 764,543,613 Earnings per share of common stock... $ 2.86 $ 3.79 $ 3.20 Assuming Dilution 2009 2008 2007 Net income attributable to Honeywell... $ 2,153 $ 2,792 $ 2,444 Average Shares Weighted average number of common shares outstanding. 752,620,148 736,763,174 764,543,613 Dilutive securities issuable in connection with stock plans 3,100,413 6,767,253 9,683,868 Total weighted average number of common shares outstanding 755,720,561 743,530,427 774,227,481 Earnings (loss) per share of common stock $ 2.85 $ 3.76 $ 3.16 The diluted earnings per share calculation excludes the effect of stock options when the options exercise prices exceed the average market price of the common shares during the period. In 2009, 2008 and 2007, the number of stock options not included in the computation were 33,962,053, 17,825,720 and 8,599,620, respectively. These stock options were outstanding at the end of each of the respective years.

Accounts Notes and Other Receiv

Accounts Notes and Other Receivables
	12 Months Ended Dec. 31, 2009 USD / shares
Accounts Notes and Other Receivables
Accounts, Notes and Other Receivables	Note 8Accounts, Notes and Other Receivables December 31, 2009 2008 Trade .............................................................................................................. $ 6,183 $ 5,893 Other .............................................................................................................. 326 422 6,509 6,315 LessAllowance for doubtful accounts ............................................................ (235 ) (186 ) $ 6,274 $ 6,129 Trade Accounts Receivable includes $1,167 and $1,195 million of unbilled balances under long-term contracts as of December 31, 2009 and 2008, respectively. These amounts are billed in accordance with the terms of the customer contracts to which they relate. We sell interests in designated pools of trade accounts receivables to third parties. The sold receivables ($500 million at December 31, 2008) were over-collateralized and we retained a subordinated interest in the pool of receivables representing that over-collateralization as well as an undivided interest in the balance of the receivables pools. The over-collateralization provides credit support to the purchasers of the receivable interest by limiting their losses in the event that a portion of the receivables sold becomes uncollectible. 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 provides additional flexibility in the management of the receivable portfolio and also requires the receivables in the program to 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. These short-term borrowings were repaid as of December 31, 2009. 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.

Inventories

Inventories
	12 Months Ended Dec. 31, 2009 USD / shares
Inventories [Text Block]
Inventories Disclosure	Note 9Inventories December 31, 2009 2008 Raw materials .................................................................................................. $ 1,291 $ 1,644 Work in process .............................................................................................. 832 952 Finished products ........................................................................................... 1,484 1,415 3,607 4,011 Less Progress payments ......................................................................................... - (3 ) Reduction to LIFO cost basis ........................................................................... (161 ) (160 ) $ 3,446 $ 3,848 Inventories valued at LIFO amounted to $211 and $269 million at December 31, 2009 and 2008, respectively. Had such LIFO inventories been valued at current costs, their carrying values would have been approximately $161 and $160 million higher at December 31, 2009 and 2008, respectively. During the year ended December 31, 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 costs prevailing in prior years as compared with the cost of 2009 purchases, the effect of which decreased cost of products sold by $12 million during the year ended December 31, 2009.

Investments and Long-Term Recei

Investments and Long-Term Receivables
	12 Months Ended Dec. 31, 2009 USD / shares
Investments and Long-Term Receivables
Investments and Long-Term Receivables	Note 10Investments and Long-Term Receivables December 31, 2009 2008 Investments ......................................................................................................... $ 262 $ 153 Long-term trade and other receivables ................................................................... 175 209 Long-term financing receivables ............................................................................ 142 308 $ 579 $ 670 Long-Term Trade and Other Receivables includes $27 and $36 million of unbilled balances under long-term contracts as of December 31, 2009 and 2008, respectively. These amounts are billed in accordance with the terms of the customer contracts to which they relate.

Property Plant and Equipment

Property Plant and Equipment
	12 Months Ended Dec. 31, 2009 USD / shares
Property Plant and Equipment
Property, Plant and Equipment	Note 11Property, Plant and Equipment December 31, 2009 2008 Land and improvements ................................................................................. $ 513 $ 475 Machinery and equipment .............................................................................. 9,982 10,075 Buildings and improvements .......................................................................... 2,621 2,429 Construction in progress ................................................................................ 405 407 13,521 13,386 LessAccumulated depreciation and amortization .......................................... (8,674 ) (8,452 ) $ 4,847 $ 4,934 Depreciation expense was $707, $702 and $675 million in 2009, 2008 and 2007, respectively.

Goodwill and Other Intangibles-

Goodwill and Other Intangibles-Net
	12 Months Ended Dec. 31, 2009 USD / shares
Goodwill and Other Intangibles-Net
Goodwill and Other Intangibles - Net	Note 12Goodwill and Other IntangiblesNet The change in the carrying amount of goodwill for the years ended December 31, 2009 and 2008 by segment are as follows: December 31, 2008 Acquisitions Divestitures Currency Translation Adjustment December 31, 2009 Aerospace .......................................... $ 1,882 9 1,891 Automation and Control Solutions ........ 6,638 253 (1 ) 28 6,918 Specialty Materials .............................. 1,151 10 3 1,164 Transportation Systems ....................... 514 7 521 $ 10,185 263 (1 ) 47 $ 10,494 December 31, 2007 Acquisitions Divestitures Currency Translation Adjustment December 31, 2008 Aerospace .......................................... $ 1,939 $ 60 $ (72 ) $ (45 ) $ 1,882 Automation and Control Solutions ........ 5,529 1,149 (40 ) 6,638 Specialty Materials .............................. 1,156 (5 ) 1,151 Transportation Systems ....................... 551 (37 ) 514 $ 9,175 $ 1,209 $ (72 ) $ (127 ) $ 10,185 Intangible assets are comprised of: December 31, 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................... $ 1,053 $ (595 ) $ 458 $ 1,030 $ (494 ) $ 536 Customer relationships.................... 1,359 (282 ) 1,077 1,250 (175 ) 1,075 Trademarks..................................... 164 (62 ) 102 164 (50 ) 114 Other.............................................. 514 (406 ) 108 501 (362 ) 139 3,090 (1,345 ) 1,745 2,945 (1,081 ) 1,864 Trademarks with indefinite lives ............. 429 429 403 403 $ 3,519 $ (1,345 ) $ 2,174 $ 3,348 $ (1,081 ) $ 2,267 Intangible assets amortization expense was $250, $201 and $162 million in 2009, 2008 and 2007, respectively. Estimated intangible assets amortization expense for each of the next five years approximates $245 million in 2010, $227 million in 2011, $215 million in 2012, $192 million in 2013 and $173 million in 2014.

Accrued Liabilities

Accrued Liabilities
	12 Months Ended Dec. 31, 2009 USD / shares
Accrued Liabilities
Accrued Liabilities	Note 13Accrued Liabilities December 31, 2009 2008 Compensation, benefit and other employee related.................................................... $ 1,183 $ 1,478 Customer advances and deferred income.................................................................. 1,270 1,159 Income taxes........................................................................................................... 455 456 Environmental costs................................................................................................. 314 343 Asbestos related liabilities........................................................................................ 654 171 Product warranties and performance guarantees........................................................ 382 385 Repositioning.......................................................................................................... 340 401 Other taxes (payroll, sales, VAT etc.)........................................................................ 158 139 Insurance................................................................................................................. 118 120 Accrued interest....................................................................................................... 145 162 Other (primarily operating expenses)......................................................................... 1,134 1,192 $ 6,153 $ 6,006

Long-term Debt and Credit Agree

Long-term Debt and Credit Agreements
	12 Months Ended Dec. 31, 2009 USD / shares
Long-term Debt and Credit Agreements
Long-term Debt and Credit Agreements	Note 14Long-term Debt and Credit Agreements December 31, 2009 2008 Floating rate notes due 2009.......................................................................... 300 Floating rate notes due 2009.......................................................................... 500 Zero coupon bonds and money multiplier notes, 13.0%14.26%, due 2009..... 100 Floating rate notes due 2009-2011.................................................................. 193 7.50% notes due 2010.................................................................................... 1,000 1,000 6.125% notes due 2011.................................................................................. 500 500 5.625% notes due 2012.................................................................................. 400 400 4.25% notes due 2013.................................................................................... 600 600 3.875% notes due 2014.................................................................................. 600 5.40% notes due 2016.................................................................................... 400 400 5.30% notes due 2017.................................................................................... 400 400 5.30% notes due 2018.................................................................................... 900 900 5.00% notes due 2019 ................................................................................... 900 Industrial development bond obligations, floating rate maturing at various dates through 2037..................................................................................... 47 60 6.625 % 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), 0.62%15.5%, maturing at various dates through 2017...................................................... 100 118 7,264 6,888 Lesscurrent portion..................................................................................... (1,018 ) (1,023 ) $ 6,246 $ 5,865 The schedule of principal payments on long-term debt is as follows: At December 31, 2009 2010...................................................................................................................................... 1,018 2011...................................................................................................................................... 520 2012.................................................................................................

Lease Commitments

Lease Commitments
	12 Months Ended Dec. 31, 2009 USD / shares
Lease Commitments
Lease Commitments	Note 15Lease Commitments Future minimum lease payments under operating leases having initial or remaining noncancellable lease terms in excess of one year are as follows: At December 31, 2009 2010................................................................................................................ $ 313 2011................................................................................................................ 245 2012................................................................................................................ 174 2013................................................................................................................ 125 2014................................................................................................................ 100 Thereafter........................................................................................................ 256 $ 1,213 We have entered into agreements to lease land, equipment and buildings. Principally all our operating leases have initial terms of up to 25 years, and some contain renewal options subject to customary conditions. At any time during the terms of some of our leases, we may at our option purchase the leased assets for amounts that approximate fair value. We do not expect that any of our commitments under the lease agreements will have a material adverse effect on our consolidated results of operations, financial position or liquidity. Rent expense was $371, $383 and $365 million in 2009, 2008 and 2007, respectively.

Financial Instruments and Fair

Financial Instruments and Fair Value Measures
	12 Months Ended Dec. 31, 2009 USD / shares
Financial Instruments and Fair Value Measures
Financial Instruments and Fair Value Measures	Note 16Financial 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 December 31, 2009 and 2008, we had contracts with notional amounts of $2,959 and $3,030 million, respectively to exchange foreign currencies, principally the U.S. dollar, Euro, British pound, Canadian dollar, Hong Kong dollar, Mexican peso, Swiss fran

Other Liabilities

Other Liabilities
	12 Months Ended Dec. 31, 2009 USD / shares
Other Liabilities
Other Liabilities	Note 17Other Liabilities Other liabilities consist of the following: December 31, 2009 2008 Pension and other employee related.......................................................... $ 4,842 $ 4,307 Environmental........................................................................................... 465 603 Income taxes............................................................................................ 476 448 Insurance.................................................................................................. 207 175 Asset retirement obligations (1).................................................................. 85 90 Deferred income....................................................................................... 106 120 Other........................................................................................................ 300 289 $ 6,481 $ 6,032 (1) Asset retirement obligations primarily relate to costs associated with the future retirement of nuclear fuel conversion facilities in our Specialty Materials segment and the future retirement of facilities in our Automation and Control Solutions segment. A reconciliation of our liability for asset retirement obligations for the year ended December 31, 2009, is as follows: 2009 2008 Change in asset retirement obligations: Balance at beginning of year.................................................................................. $ 90 $ 93 Liabilities settled.................................................................................................... (3 ) (7 ) Adjustments.......................................................................................................... (5 ) 2 Accretion expense................................................................................................. 3 2 Balance at end of year........................................................................................... $ 85 $ 90

Capital Stock

Capital Stock
	12 Months Ended Dec. 31, 2009 USD / shares
Capital Stock
Capital Stock	Note 18Capital Stock We are authorized to issue up to 2,000,000,000 shares of common stock, with a par value of one dollar. Common shareowners are entitled to receive such dividends as may be declared by the Board, are entitled to one vote per share, and are entitled, in the event of liquidation, to share ratably in all the assets of Honeywell which are available for distribution to the common shareowners. Common shareowners do not have preemptive or conversion rights. Shares of common stock issued and outstanding or held in the treasury are not liable to further calls or assessments. There are no restrictions on us relative to dividends or the repurchase or redemption of common stock. Under the Companys previously reported $3.0 billion share repurchase program, $1.3 billion remained available as of December 31, 2009 for additional share repurchases. The amount and timing of repurchases may vary depending on market conditions and the level of operating and other investing activities. We are authorized to issue up to 40,000,000 shares of preferred stock, without par value, and can determine the number of shares of each series, and the rights, preferences and limitations of each series. At December 31, 2009, there was no preferred stock outstanding.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)
	12 Months Ended Dec. 31, 2009 USD / shares
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss)	Note 19Accumulated Other Comprehensive Income (Loss) Total accumulated other comprehensive income (loss) is included in the Consolidated Statement of Shareowners Equity. Comprehensive Income (Loss) attributable to non-controlling interest consisted predominantly of net income. The changes in Accumulated Other Comprehensive Income (Loss) are as follows: Pretax Tax After Tax Year Ended December 31, 2009 Foreign exchange translation adjustment $ 259 $ 259 Pensions and other post retirement benefit adjustments (1,573) 552 (1,021) Changes in fair value of available for sale investments (1) 112 112 Changes in fair value of effective cash flow hedges 38 (8) 30 $ (1,164) $ 544 $ (620) Year Ended December 31, 2008 Foreign exchange translation adjustment $ (614) $ (614) Pensions and other post retirement benefit adjustments (4,159) 1,583 (2,576) Changes in fair value of available for sale investments (51) (51) Changes in fair value of effective cash flow hedges (40) 16 (24) $ (4,864) $ 1,599 $ (3,265) Year Ended December 31, 2007 Foreign exchange translation adjustment $ 248 $ 248 Pensions and other post retirement benefit adjustments 803 (285) 518 Changes in fair value of effective cash flow hedges (5) 2 (3) $ 1,046 $ (283) $ 763 (1) includes reclassification adjustment for losses included in net income Components of Accumulated Other Comprehensive Income (Loss) December 31 2009 2008 Cumulative foreign exchange translation adjustment $ 468 $ 209 Pensions and other post retirement benefit adjustments (4,966) (3,945) Change in fair value of available for sale investments 61 (51) Change in fair value of effective cash flow hedges 8 (22) $ (4,429) $ (3,809)

Stock-Based Compensation Plans

Stock-Based Compensation Plans
	12 Months Ended Dec. 31, 2009 USD / shares
Stock-Based Compensation Plans
Stock-Based Compensation Plans	Note 20Stock-Based Compensation Plans We have stock-based compensation plans available to grant non-qualified stock options, incentive stock options, stock appreciation rights, restricted units and restricted stock to key employees. Under the 2006 Stock Incentive Plan of Honeywell International Inc. and its Affiliates (the Plan), a maximum of 43 million shares of Honeywell common stock may be awarded. Additionally, under the 2006 Stock Plan for Non-Employee Directors of Honeywell International Inc. (the Directors Plan) 500,000 shares of Honeywell common stock may be awarded. Stock OptionsThe exercise price, term and other conditions applicable to each option granted under our stock plans are generally determined by the Management Development and Compensation Committee of the Board. The exercise price of stock options is set on the grant date and may not be less than the fair market value per share of our stock on that date. The fair value is recognized as an expense over the employees requisite service period (generally the vesting period of the award). Options generally vest over a four-year period and expire after ten years. The fair value of each option award is estimated on the date of grant using the Black-Scholes option-pricing model. Expected volatility is based on implied volatilities from traded options on Honeywell common stock. We used a Monte Carlo simulation model to derive an expected term. Such model uses historical data to estimate option exercise activity and post-vest termination behavior. The expected term represents an estimate of the time options are expected to remain outstanding. The risk-free rate for periods within the contractual life of the option is based on the U.S. treasury yield curve in effect at the time of grant. Compensation cost on a pre-tax basis related to stock options recognized in operating results (included in selling, general and administrative expenses) in 2009, 2008 and 2007 was $39, $51 and $65 million, respectively. The associated future income tax benefit recognized in 2009, 2008 and 2007 was $13, $19 and $25 million, respectively. The following table sets forth fair value per share information, including related weighted-average assumptions, used to determine compensation cost: Years Ended December 31, 2009 2008 2007 Weighted average fair value per share of options granted during the year (1)........................................................................................ $ 6.73 $ 13.81 $ 10.27 Assumptions: Expected annual dividend yield......................................................... 4.26 % 1.88 % 2.09 % Expected volatility............................................................................ 35.78 % 26.35 % 20.18 % Risk-free rate of return...................................................................... 2.53 % 3.09 % 4.66 % Expected option term (years)............................................................ 5.8 5.2 5.3 (1) Estimated on date of grant using Black-Scholes option-pricin

Commitments and Contingencies

Commitments and Contingencies
	12 Months Ended Dec. 31, 2009 USD / shares
Commitments and Contingencies
Commitments and Contingencies (Disclosure)	Note 21Commitments 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: Years Ended December 31, 2009 2008 2007 Beginning of year................................................................................................................. $ 946 $ 799 $ 831 Accruals for environmental matters deemed probable and reasonably estimable......................... 151 466 230 Environmental liability payments............................................................................................ (318 ) (320 ) (267 ) Other adjustments......................................

Pension and Other Postretiremen

Pension and Other Postretirement Benefits
	12 Months Ended Dec. 31, 2009 USD / shares
Pension and Other Postretirement Benefits
Pension and Other Postretirement Benefits	Note 22Pension and Other Postretirement Benefits We sponsor both funded and unfunded U.S. and non-U.S. defined benefit pension plans covering the majority of our employees and retirees. Pension benefits for substantially all U.S. employees are provided through non-contributory, qualified and non-qualified defined benefit pension plans. U.S. defined benefit pension plans comprise 76 percent of our projected benefit obligation. Non-U.S. employees, who are not U.S. citizens, are covered by various retirement benefit arrangements, some of which are considered to be defined benefit pension plans for accounting purposes. Non-U.S. defined benefit pension plans comprise 24 percent of our projected benefit obligation. We also sponsor postretirement benefit plans that provide health care benefits and life insurance coverage to eligible retirees. Our retiree medical plans mainly cover U.S. employees who retire with pension eligibility for hospital, professional and other medical services. All non-union hourly and salaried employees joining Honeywell after January 1, 2000 are not eligible to participate in our retiree medical and life insurance plans. Most of the U.S. retiree medical plans require deductibles and copayments, and virtually all are integrated with Medicare. Retiree contributions are generally required based on coverage type, plan and Medicare eligibility. Honeywell has limited its subsidy of its retiree medical plans to a fixed-dollar amount for all future retirees and for more than half of its current retirees. This cap of retiree medical benefits under our plans limits our exposure to the impact of future health care cost increases. The retiree medical and life insurance plans are not funded. Claims and expenses are paid from our operating cash flow. 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 retired on or before September 1, 2009 were not 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 in the second quarter of 2009 which was included as part of net periodic postretirement benefit cost. The curtailment gain represents the recognition of previously unrecognized prior service credits attributable to the future years of service of the employee group for which future accrual of benefits has been eliminated. The following tables summarize the balance sheet impact, including the benefit obligations, assets and funded status associate

Segment Financial Data

Segment Financial Data
	12 Months Ended Dec. 31, 2009 USD / shares
Segment Financial Data
Segment Financial Data	Note 23Segment 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 is organized by customer end-market (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; engine controls; repair and overhaul services; hardware; logistics; electric power systems; flight safety, communications, navigation, radar and surveillance systems; aircraft lighting; management and technical services; advanced systems and instruments; and aircraft wheels and brakes. Automation and Control Solutions includes Products (controls for heating, cooling, indoor air quality, ventilation, humidification 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; personal protection equipment; access control; video surveillance; and remote patient monitoring systems); Building Solutions (installs, maintains and upgrades systems that keep buildings safe, comfortable and productive); and 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). Specialty Materials includes fluorocarbons, specialty films, advanced fibers, customized research chemicals and intermediates, electronic materials and chemicals, and catalysts and adsorbents. Transportation Systems includes Honeywell Turbo Technologies (turbochargers and charge-air and thermal systems); and the Consumer Products Group (car care products including antifreeze, filters, spark plugs, and cleaners, waxes and additives); and Friction Materials (brake hard parts and other friction materials). The accounting policies of the segments are the same as those described in Note 1. 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. Beginning January 1, 2008, consistent with changes made to the measure of segment performance utilized by senior management, segment profit has been adjusted to exclude expense associated with restricted stock units (RSU) and to include equity income/(loss) of affiliated companies. Stock co

Geographic Areas-Financial Data

Geographic Areas-Financial Data
	12 Months Ended Dec. 31, 2009 USD / shares
Geographic Areas-Financial Data
Geographic Areas - Financial Data	Note 24Geographic AreasFinancial Data Net Sales(1) Long-lived Assets(2) Years Ended December 31, Years Ended December 31, 2009 2008 2007 2009 2008 2007 United States ............................. $ 18,742 $ 22,291 $ 21,101 $ 13,493 $ 14,193 $ 11,916 Europe ...................................... 7,632 9,484 9,104 2,232 2,050 2,706 Other International ...................... 4,534 4,781 4,384 1,790 1,143 1,036 $ 30,908 $ 36,556 $ 34,589 $ 17,515 $ 17,386 $ 15,658 (1) Sales between geographic areas approximate market and are not significant. Net sales are classified according to their country of origin. Included in United States net sales are export sales of $3,585, $3,506 and $3,427 million in 2009, 2008 and 2007, respectively. (2) Long-lived assets are comprised of property, plant and equipment, goodwill and other intangible assets.

Supplemental Cash Flow Informat

Supplemental Cash Flow Information
	12 Months Ended Dec. 31, 2009 USD / shares
Supplemental Cash Flow Information
Supplemental Cash Flow Information	Note 25Supplemental Cash Flow Information Years Ended December 31, 2009 2008 2007 Payments for repositioning and other charges: Severance and exit cost payments................................................. $ (200 ) $ (157 ) $ (92 ) Environmental payments............................................................... (318 ) (320 ) (267 ) Proceeds from sale of insurance receivable..................................... - 82 97 Insurance receipts for asbestos related liabilities............................. 16 96 26 Asbestos related liability payments................................................ (156 ) (147 ) (268 ) $ (658 ) $ (446 ) $ (504 ) Interest paid, net of amounts capitalized........................................... $ 469 $ 415 $ 444 Income taxes paid, net of refunds..................................................... 361 810 474 Non-cash investing and financing activities: Common stock contributed to savings plans.................................. 153 220 199 Common stock contributed to U.S. pension plans.......................... 740 200

Unaudited Quarterly Financial I

Unaudited Quarterly Financial Information
	12 Months Ended Dec. 31, 2009 USD / shares
Unaudited Quarterly Financial Information
Quarterly Financial Information	Note 26Unaudited Quarterly Financial Information 2009 2008 Mar. 31 June 30 Sept. 30 Dec. 31 Year Mar. 31 June 30 Sept. 30 Dec. 31 Year Net Sales.. $7,570 $7,566 $7,700 $8,072 $30,908 $8,895 $9,674 $9,275 $8,712 $36,556 Gross Profit.. 1,814 1,884 1,903 2,122 7,723 2,223 2,351 1,799 2,189 8,562 Net income attributable to Honeywell. 397 450 608 698 2,153 643 723 719 707 2,792 Earnings per share basic: 0.54 0.60 0.80 0.91 2.86 0.87 0.97 0.98 0.97 3.79 Earnings per share- assuming dilution: 0.54 0.60 0.80 0.91 2.85 0.85 0.96 0.97 0.97 3.76 Dividends paid 0.3025 0.3025 0.3025 0.3025 1.21 0.275 0.275 0.275 0.275 1.10 Market Price. High... 36.04 35.79 40.17 41.31 41.31 60.48 62.25 50.93 39.68 62.25 Low 23.23 29.29 29.31 35.89 23.23 53.95 49.14 40.37 23.67 23.67

SCHEDULE II-VALUATION AND QUALI

SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS
	12 Months Ended Dec. 31, 2009 USD / shares
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS	HONEYWELL INTERNATIONAL INC SCHEDULE IIVALUATION AND QUALIFYING ACCOUNTSThree Years Ended December 31, 2009 (In millions) Allowance for Doubtful Accounts: Balance December 31, 2006........................................................................................................................... $ 217 Provision charged to income....................................................................................................................... 79 Deductions from reserves........................................................................................................................... (115 ) Balance December 31, 2007........................................................................................................................... 181 Provision charged to income....................................................................................................................... 93 Deductions from reserves........................................................................................................................... (94 ) Acquisitions... 6 Balance December 31, 2008........................................................................................................................... 186 Provision charged to income....................................................................................................................... 177 Deductions from reserves........................................................................................................................... (134 ) Acquisitions............................................................................................................................................... 6 Balance December 31, 2009........................................................................................................................... $ 235 Deferred Tax AssetsValuation Allowance Balance December 31, 2006........................................................................................................................... $ 516 Additions charged to income tax expense................................................................................................... 56 Reductions credited to income tax expense................................................................................................. (114 ) Additions charged to equity........................................................................................................................ 28 Reductions credited to deferred tax assets, due to expired NOL................................................................... (19 ) Additions charged to deferred tax assets, due to capital loss carryforwards.................................................. 51 Reductions credited to goodwill.................................................................................................................. (28 ) .......... Balance December 31, 2007........................