Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Dec. 31, 2014 | Jan. 23, 2015 | Jun. 30, 2014 |
Document And Entity Information [Abstract] | |||
Document type | 10-K | ||
Document period end date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Amendment flag | FALSE | ||
Entity registrant name | Honeywell International Inc | ||
Entity central index key | 773840 | ||
Entity current reporting status | Yes | ||
Entity voluntary filers | No | ||
Current fiscal year end date | -19 | ||
Entity filer category | Large Accelerated Filer | ||
Entity well known seasoned issuer | Yes | ||
Entity common stock shares outstanding | 782,663,047 | ||
Entity public float | $73 |
CONSOLIDATED_STATEMENT_OF_OPER
CONSOLIDATED STATEMENT OF OPERATIONS (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Consolidated Statement of Operations | |||
Product sales | $32,398 | $31,214 | $29,812 |
Service sales | 7,908 | 7,841 | 7,853 |
Net Sales | 40,306 | 39,055 | 37,665 |
Costs, expenses and other | |||
Cost of products sold | 23,889 | 23,317 | 22,929 |
Cost of services sold | 5,068 | 5,047 | 5,362 |
Cost of products and services sold | 28,957 | 28,364 | 28,291 |
Selling, general and administrative expenses | 5,518 | 5,190 | 5,218 |
Other (income) expense | -305 | -238 | -70 |
Interest and other financial charges | 318 | 327 | 351 |
Cost, operating and non-operating expenses | 34,488 | 33,643 | 33,790 |
Income from continuing operations before taxes | 5,818 | 5,412 | 3,875 |
Tax expense | 1,489 | 1,450 | 944 |
Net income | 4,329 | 3,962 | 2,931 |
Less: Net income attributable to the noncontrolling interest | 90 | 38 | 5 |
Net income attributable to Honeywell | $4,239 | $3,924 | $2,926 |
Earnings per share of common stock - basic | $5.40 | $4.99 | $3.74 |
Earnings per share - assuming dilution | $5.33 | $4.92 | $3.69 |
Cash dividends per share of common stock | $1.87 | $1.68 | $1.53 |
CONSOLIDATED_STATEMENT_OF_COMP
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income | $4,329,000,000 | $3,962,000,000 | $2,931,000,000 |
Other Comprehensive Income (Loss), Net Of Tax [Abstract] | |||
Foreign exchange translation adjustment | -1,044,000,000 | -52,000,000 | 282,000,000 |
Actuarial gains (losses) | -1,411,000,000 | 2,064,000,000 | -839,000,000 |
Prior service credit | 73,000,000 | 99,000,000 | 9,000,000 |
Prior service cost (credit) recognized during the year | -2,000,000 | 5,000,000 | 6,000,000 |
Actuarial losses recognized during year | 202,000,000 | 61,000,000 | 649,000,000 |
Transition obligation recognized during year | 1,000,000 | 2,000,000 | 2,000,000 |
Settlements and curtailments | 0 | -26,000,000 | -2,000,000 |
Foreign exchange translation and other | 54,000,000 | -2,000,000 | -23,000,000 |
Pensions and other postretirement benefit adjustments | -1,083,000,000 | 2,203,000,000 | -198,000,000 |
Unrealized gains (losses) for the period | 15,000,000 | 140,000,000 | -6,000,000 |
Less: reclassification adjustment for gains included in net income | 185,000,000 | 127,000,000 | 0 |
Changes in fair value of available for sale investments | -170,000,000 | 13,000,000 | -6,000,000 |
Effective portion of cash flow hedges recognized in other comprehensive income | 20,000,000 | -30,000,000 | 14,000,000 |
Less: Reclassification adjustment for losses included in net income | 0 | -23,000,000 | -13,000,000 |
Changes in fair value of effective cash flow hedges | 20,000,000 | -7,000,000 | 27,000,000 |
Other comprehensive income (loss), net of tax | -2,277,000,000 | 2,157,000,000 | 105,000,000 |
Comprehensive income | 2,052,000,000 | 6,119,000,000 | 3,036,000,000 |
Less: Comprehensive income attributable to the noncontrolling interest | 87,000,000 | 36,000,000 | 5,000,000 |
Comprehensive income attributable to Honeywell | $1,965,000,000 | $6,083,000,000 | $3,031,000,000 |
CONSOLIDATED_BALANCE_SHEET
CONSOLIDATED BALANCE SHEET (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $6,959 | $6,422 |
Accounts, notes and other receivables | 7,960 | 7,929 |
Inventories | 4,405 | 4,293 |
Deferred income taxes | 722 | 849 |
Investments and other current assets | 2,145 | 1,671 |
Total current assets | 22,191 | 21,164 |
Investments and long-term receivables | 465 | 393 |
Property, plant and equipment - net | 5,383 | 5,278 |
Goodwill | 12,788 | 13,046 |
Other intangible assets - net | 2,208 | 2,514 |
Insurance recoveries for asbestos related liabilities | 454 | 595 |
Deferred income taxes | 404 | 368 |
Other assets | 1,558 | 2,077 |
Total assets | 45,451 | 45,435 |
Current liabilities: | ||
Accounts payable | 5,365 | 5,174 |
Short-term borrowings | 51 | 97 |
Commercial paper | 1,647 | 1,299 |
Current maturities of long-term debt | 939 | 632 |
Accrued liabilities | 6,771 | 6,979 |
Total current liabilities | 14,773 | 14,181 |
Long-term debt | 6,046 | 6,801 |
Deferred income taxes | 236 | 804 |
Postretirement benefit obligations other than pensions | 911 | 1,019 |
Asbestos related liabilities | 1,200 | 1,150 |
Other liabilities | 4,282 | 3,734 |
Redeemable noncontrolling interest | 219 | 167 |
SHAREOWNERS' EQUITY | ||
Capital - common stock issued | 958 | 958 |
Capital - additional paid in capital | 5,038 | 4,682 |
Common stock held in treasury, at cost | -9,995 | -9,374 |
Accumulated other comprehensive income (loss) | -1,459 | 818 |
Retained earnings | 23,115 | 20,383 |
Total Honeywell shareowners' equity | 17,657 | 17,467 |
Noncontrolling interest | 127 | 112 |
Total shareowners' equity | 17,784 | 17,579 |
Total liabilities, redeemable noncontrolling interest, and shareowners' equity | $45,451 | $45,435 |
CONSOLIDATED_STATEMENT_OF_CASH
CONSOLIDATED STATEMENT OF CASH FLOWS (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Cash flows from operating activities: | |||
Net income | $4,329,000,000 | $3,962,000,000 | $2,931,000,000 |
Less: Net income attributable to the noncontrolling interest | 90,000,000 | 38,000,000 | 5,000,000 |
Net income attributable to Honeywell | 4,239,000,000 | 3,924,000,000 | 2,926,000,000 |
Adjustments to reconcile net income attributable to Honeywell to net cash provided by operating activities: | |||
Depreciation and amortization | 924,000,000 | 989,000,000 | 926,000,000 |
Loss (gain) on sale of nonstrategic businesses and assets | 11,000,000 | 20,000,000 | -5,000,000 |
Gain on sale of available for sale investments | -221,000,000 | -195,000,000 | 0 |
Repositioning and other charges | 598,000,000 | 663,000,000 | 443,000,000 |
Net payments for repositioning and other charges | -530,000,000 | -763,000,000 | -503,000,000 |
Pension and other postretirement (income) expense | 44,000,000 | -19,000,000 | 1,065,000,000 |
Pension and other postretirement benefit payments | -167,000,000 | -298,000,000 | -1,183,000,000 |
Stock compensation expense | 187,000,000 | 170,000,000 | 170,000,000 |
Deferred income taxes | 132,000,000 | 262,000,000 | 84,000,000 |
Excess tax benefits from share based payment arrangements | -102,000,000 | -132,000,000 | -56,000,000 |
Other | -327,000,000 | 308,000,000 | 108,000,000 |
Changes in assets and liabilities, net of the effects of acquisitions and divestitures: | |||
Accounts, notes and other receivables | -172,000,000 | -365,000,000 | -119,000,000 |
Inventories | -200,000,000 | 41,000,000 | 25,000,000 |
Other current assets | 120,000,000 | -421,000,000 | -78,000,000 |
Accounts payable | 307,000,000 | 352,000,000 | -13,000,000 |
Accrued liabilities | 181,000,000 | -201,000,000 | -273,000,000 |
Net cash provided by operating activities | 5,024,000,000 | 4,335,000,000 | 3,517,000,000 |
Cash flows from investing activities: | |||
Expenditures for property, plant and equipment | -1,094,000,000 | -947,000,000 | -884,000,000 |
Proceeds from disposals of property, plant and equipment | 18,000,000 | 15,000,000 | 5,000,000 |
Increase in investments | -4,074,000,000 | -1,220,000,000 | -702,000,000 |
Decrease in investments | 3,288,000,000 | 1,122,000,000 | 559,000,000 |
Cash paid for acquisitions, net of cash acquired | -4,000,000 | -1,133,000,000 | -438,000,000 |
Proceeds from sales of businesses, net of fees paid | 160,000,000 | 3,000,000 | 21,000,000 |
Other | -170,000,000 | 201,000,000 | 11,000,000 |
Net cash used for investing activities | -1,876,000,000 | -1,959,000,000 | -1,428,000,000 |
Cash flows from financing activities: | |||
Net increase (decrease) in commercial paper | 348,000,000 | 899,000,000 | -199,000,000 |
Net (decrease) increase in short-term borrowings | -39,000,000 | 31,000,000 | 22,000,000 |
Proceeds from issuance of common stock | 265,000,000 | 447,000,000 | 342,000,000 |
Proceeds from issuance of long-term debt | 97,000,000 | 1,063,000,000 | 102,000,000 |
Payments of long-term debt | -609,000,000 | -607,000,000 | -1,000,000 |
Excess tax benefits from share based payment arrangements | 102,000,000 | 132,000,000 | 56,000,000 |
Repurchases of common stock | -924,000,000 | -1,073,000,000 | -317,000,000 |
Cash dividends paid | -1,510,000,000 | -1,353,000,000 | -1,211,000,000 |
Other | -2,000,000 | 28,000,000 | 0 |
Net cash used for financing activities | -2,272,000,000 | -433,000,000 | -1,206,000,000 |
Effect of foreign exchange rate changes on cash and cash equivalents | -339,000,000 | -155,000,000 | 53,000,000 |
Net increase in cash and cash equivalents | 537,000,000 | 1,788,000,000 | 936,000,000 |
Cash and cash equivalents at beginning of period | 6,422,000,000 | 4,634,000,000 | 3,698,000,000 |
Cash and cash equivalents at end of period | $6,959,000,000 | $6,422,000,000 | $4,634,000,000 |
CONSOLIDATED_STATEMENT_OF_SHAR
CONSOLIDATED STATEMENT OF SHAREOWNERS EQUITY (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Noncontrolling Interest [Member] |
Share data in Millions | |||||||
Balance at, beginning of period at Dec. 31, 2011 | $4,157,000,000 | ($8,948,000,000) | $16,083,000,000 | ($1,444,000,000) | $96,000,000 | ||
Treasury Stock, Shares, Beginning Balance at Dec. 31, 2011 | -182.9 | ||||||
Common Stock Shares Issued | 957.6 | ||||||
Reacquired stock or repurchases of common stock | -317,000,000 | ||||||
Reacquired stock or repurchases of common stock, shares | -5 | ||||||
Issued for employee savings and option plans | 22,000,000 | 464,000,000 | |||||
Issued for employee savings and option plans, shares | 13.1 | ||||||
Stock-based compensation expense | 170,000,000 | ||||||
Other owner changes | 9,000,000 | 0 | |||||
Net income attributable to Honeywell | 2,926,000,000 | 2,926,000,000 | |||||
Dividends on common stock | -1,210,000,000 | ||||||
Redemption value adjustment | 0 | ||||||
Foreign exchange translation adjustment | 282,000,000 | 282,000,000 | 0 | ||||
Dividends paid | -21,000,000 | ||||||
Contributions from noncontrolling interest holders | 0 | ||||||
Pensions and other postretirement benefit adjustments | -198,000,000 | -198,000,000 | |||||
Changes in fair value of available for sale investments | -6,000,000 | -6,000,000 | |||||
Changes in fair value of effective cash flow hedges | 27,000,000 | 27,000,000 | |||||
Acquisitions | 6,000,000 | ||||||
Interest sold (bought) | 7,000,000 | ||||||
Net income attributable to the noncontrolling interest | 5,000,000 | 2,000,000 | |||||
Common stock, shares | 782.8 | ||||||
Balance at, end of period at Dec. 31, 2012 | 13,065,000,000 | 958,000,000 | 4,358,000,000 | -8,801,000,000 | 17,799,000,000 | -1,339,000,000 | 90,000,000 |
Treasury Stock, Shares, Ending Balance at Dec. 31, 2012 | -174.8 | ||||||
Common Stock Shares Issued | 957.6 | ||||||
Reacquired stock or repurchases of common stock | -1,073,000,000 | -1,073,000,000 | |||||
Reacquired stock or repurchases of common stock, shares | -13.5 | -13.5 | |||||
Issued for employee savings and option plans | 155,000,000 | 500,000,000 | |||||
Issued for employee savings and option plans, shares | 14.5 | ||||||
Stock-based compensation expense | 170,000,000 | ||||||
Other owner changes | -1,000,000 | 3,000,000 | |||||
Net income attributable to Honeywell | 3,924,000,000 | 3,924,000,000 | |||||
Dividends on common stock | -1,329,000,000 | ||||||
Redemption value adjustment | -11,000,000 | ||||||
Foreign exchange translation adjustment | -52,000,000 | -52,000,000 | -2,000,000 | ||||
Dividends paid | -16,000,000 | ||||||
Contributions from noncontrolling interest holders | 28,000,000 | ||||||
Pensions and other postretirement benefit adjustments | 2,203,000,000 | 2,203,000,000 | |||||
Changes in fair value of available for sale investments | 13,000,000 | 13,000,000 | |||||
Changes in fair value of effective cash flow hedges | -7,000,000 | -7,000,000 | |||||
Acquisitions | 0 | ||||||
Interest sold (bought) | 0 | ||||||
Net income attributable to the noncontrolling interest | 38,000,000 | 9,000,000 | |||||
Common stock, shares | 783.8 | ||||||
Balance at, end of period at Dec. 31, 2013 | 17,579,000,000 | 958,000,000 | 4,682,000,000 | -9,374,000,000 | 20,383,000,000 | 818,000,000 | 112,000,000 |
Treasury Stock, Shares, Ending Balance at Dec. 31, 2013 | -173.8 | ||||||
Balance at, beginning of period at Sep. 30, 2013 | |||||||
Common Stock Shares Issued | 957.6 | ||||||
Net income attributable to Honeywell | 947,000,000 | ||||||
Common stock, shares | 783.8 | ||||||
Balance at, end of period at Dec. 31, 2013 | 17,579,000,000 | 958,000,000 | 4,682,000,000 | -9,374,000,000 | 20,383,000,000 | 818,000,000 | 112,000,000 |
Treasury Stock, Shares, Beginning Balance at Dec. 31, 2013 | -173.8 | ||||||
Common Stock Shares Issued | 957.6 | ||||||
Reacquired stock or repurchases of common stock | -924,000,000 | -924,000,000 | |||||
Reacquired stock or repurchases of common stock, shares | -10 | -10 | |||||
Issued for employee savings and option plans | 175,000,000 | 303,000,000 | |||||
Issued for employee savings and option plans, shares | 8.4 | ||||||
Stock-based compensation expense | 187,000,000 | ||||||
Other owner changes | -6,000,000 | -3,000,000 | |||||
Net income attributable to Honeywell | 4,239,000,000 | 4,239,000,000 | |||||
Dividends on common stock | -1,478,000,000 | ||||||
Redemption value adjustment | -29,000,000 | ||||||
Foreign exchange translation adjustment | -1,044,000,000 | -1,044,000,000 | -3,000,000 | ||||
Dividends paid | -17,000,000 | ||||||
Contributions from noncontrolling interest holders | 5,000,000 | ||||||
Pensions and other postretirement benefit adjustments | -1,083,000,000 | -1,083,000,000 | |||||
Changes in fair value of available for sale investments | -170,000,000 | -170,000,000 | |||||
Changes in fair value of effective cash flow hedges | 20,000,000 | 20,000,000 | |||||
Acquisitions | 0 | ||||||
Interest sold (bought) | -7,000,000 | ||||||
Net income attributable to the noncontrolling interest | 90,000,000 | 40,000,000 | |||||
Common stock, shares | 782.2 | ||||||
Balance at, end of period at Dec. 31, 2014 | 17,784,000,000 | 958,000,000 | 5,038,000,000 | -9,995,000,000 | 23,115,000,000 | -1,459,000,000 | 127,000,000 |
Treasury Stock, Shares, Ending Balance at Dec. 31, 2014 | -175.4 | ||||||
Balance at, beginning of period at Sep. 30, 2014 | |||||||
Common Stock Shares Issued | 957.6 | ||||||
Net income attributable to Honeywell | 956,000,000 | ||||||
Common stock, shares | 782.2 | ||||||
Balance at, end of period at Dec. 31, 2014 | $17,784,000,000 | $958,000,000 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2014 | |
Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 1. Summary of Significant Accounting Policies |
Accounting Principles—The 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 Honeywell's significant accounting policies. | |
Principles of Consolidation—The 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 equity investments that we exercise significant influence over but do not control the investee and are not the primary beneficiary of the investee's activities to be accounted for using the equity method. Investments through which we are not able to exercise significant influence over the investee and which we do not have readily determinable fair values are accounted for under the cost method. All intercompany transactions and balances are eliminated in consolidation. | |
Redeemable noncontrolling interest is considered to be temporary equity and is therefore reported outside of permanent equity on the Consolidated Balance Sheet at the greater of the initial carrying amount adjusted for the noncontrolling interest's share of net income (loss) or its redemption value. | |
Property, Plant and Equipment—Property, 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 asset's useful life. | |
Goodwill and Indefinite-Lived Intangible Assets—Goodwill and indefinite-lived intangible assets are subject to impairment testing annually as of March 31, or whenever events or changes in circumstances indicate that the carrying amount may not be fully recoverable. This testing compares carrying values to fair values and, when appropriate, the carrying value of these assets is reduced to fair value. We completed our annual goodwill impairment test as of March 31, 2014 and determined that there was no impairment as of that date. | |
Other Intangible Assets with Determinable Lives—Other intangible assets with determinable lives consist of customer lists, technology, patents and trademarks and other intangibles and are amortized over their estimated useful lives, ranging from 2 to 24 years. | |
Sales Recognition—Product and service sales are recognized when persuasive evidence of an arrangement exists, product delivery has occurred or services have been rendered, pricing is fixed or determinable, and collection is reasonably assured. Service sales, principally representing repair, maintenance and engineering activities in our Aerospace and Automation and Control Solutions (ACS) segments, are recognized over the contractual period or as services are rendered. Sales under long-term contracts in the Aerospace, ACS and Performance Materials and Technologies (PMT) segments are recorded on a percentage-of-completion method measured on the cost-to-cost basis for engineering-type contracts and the units-of-delivery basis for production-type contracts. Provisions for anticipated losses on long-term contracts are recorded in full when such losses become evident. Revenues from contracts with multiple element arrangements are recognized as each element is earned based on the relative fair value of each element provided the delivered elements have value to customers on a standalone basis. Amounts allocated to each element are based on its objectively determined fair value, such as the sales price for the product or service when it is sold separately or competitor prices for similar products or services. | |
Environmental—We accrue costs related to environmental matters when it is probable that we have incurred a liability related to a contaminated site and the amount can be reasonably estimated. For additional information, see Note 19 Commitments and Contingencies. | |
Asbestos Related Contingencies and Insurance Recoveries—We recognize a liability for any asbestos related contingency that is probable of occurrence and reasonably estimable. In connection with the recognition of liabilities for asbestos related matters, we record asbestos related insurance recoveries that are deemed probable. For additional information, see Note 19 Commitments and Contingencies. | |
Aerospace Sales Incentives—We provide sales incentives to commercial aircraft manufacturers and airlines in connection with their selection of our aircraft equipment, predominately wheel and braking system hardware, avionics, and auxiliary power units, for installation on commercial aircraft. These incentives consist of free or deeply discounted products, credits for future purchases of product and upfront cash payments. These costs are recognized in the period incurred as cost of products sold or as a reduction to sales, as appropriate. | |
Research and Development—Research and development costs for company-sponsored research and development projects are expensed as incurred. Such costs are principally included in Cost of Products Sold and were $1,892 million, $1,804 million and $1,847 million in 2014, 2013 and 2012, respectively. | |
Stock-Based Compensation Plans—The principal awards issued under our stock-based compensation plans, which are described in Note 18 Stock-Based Compensation Plans, are non-qualified stock options and restricted stock units (RSUs). The cost for such awards is measured at the grant date based on the fair value of the award. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods (generally the vesting period of the equity award) and is included in selling, general and administrative expense in our Consolidated Statement of Operations. Forfeitures are estimated at the time of grant to recognize expense for those awards that are expected to vest and are based on our historical forfeiture rates. | |
Pension Benefits—We recognize net actuarial gains or losses in excess of 10% of the greater of the fair value of plan assets or the plans' projected benefit obligation (the corridor) annually in the fourth quarter each year (MTM Adjustment), and, if applicable, in any quarter in which an interim remeasurement is triggered. The remaining components of pension (income) expense, primarily service and interest costs and assumed return on plan assets, are recognized on a quarterly basis (Pension ongoing (income) expense). | |
Foreign Currency Translation—Assets and liabilities of subsidiaries operating outside the United States with a functional currency other than U.S. dollars are translated into U.S. dollars using year-end exchange rates. Sales, costs and expenses are translated at the average exchange rates in effect during the year. Foreign currency translation gains and losses are included as a component of Accumulated Other Comprehensive Income (Loss). For subsidiaries operating in highly inflationary environments, inventories and property, plant and equipment, including related expenses, are remeasured at the exchange rate in effect on the date the assets were acquired, while monetary assets and liabilities are remeasured at year-end exchange rates. Remeasurement adjustments for these subsidiaries are included in earnings. | |
Derivative Financial Instruments—We minimize our risks from interest and foreign currency exchange rate fluctuations through our normal operating and financing activities and, when deemed appropriate through the use of derivative financial instruments. Derivative financial instruments are used to manage risk and are not used for trading or other speculative purposes and we do not use leveraged derivative financial instruments. Derivative financial instruments that qualify for hedge accounting must be designated and effective as a hedge of the identified risk exposure at the inception of the contract. Accordingly, changes in fair value of the derivative contract must be highly correlated with changes in fair value of the underlying hedged item at inception of the hedge and over the life of the hedge contract. | |
All derivatives are recorded on the balance sheet as assets or liabilities and measured at fair value. For derivatives designated as hedges of the fair value of assets or liabilities, the changes in fair values of both the derivatives and the hedged items are recorded in current earnings. For derivatives designated as cash flow hedges, the effective portion of the changes in fair value of the derivatives are recorded in Accumulated Other Comprehensive Income (Loss) and subsequently recognized in earnings when the hedged items impact earnings. Cash flows of such derivative financial instruments are classified consistent with the underlying hedged item. | |
Income Taxes—Significant judgment is required in evaluating tax positions. We establish additional reserves for income taxes when, despite the belief that tax positions are fully supportable, there remain certain positions that do not meet the minimum recognition threshold. The approach for evaluating certain and uncertain tax positions is defined by the authoritative guidance which determines when a tax position is more likely than not to be sustained upon examination by the applicable taxing authority. In the normal course of business, the Company and its subsidiaries are examined by various federal, state and foreign tax authorities. We regularly assess the potential outcomes of these examinations and any future examinations for the current or prior years in determining the adequacy of our provision for income taxes. We continually assess the likelihood and amount of potential adjustments and adjust the income tax provision, the current tax liability and deferred taxes in the period in which the facts that give rise to a change in estimate become known. | |
Earnings Per Share—Basic earnings per share is based on the weighted average number of common shares outstanding. Diluted earnings per share is based on the weighted average number of common shares outstanding and all dilutive potential common shares outstanding. | |
Reclassifications—Certain prior year amounts have been reclassified to conform to the current year presentation. | |
Recent Accounting Pronouncements—Changes to accounting principles generally accepted in the United States of America (U.S. GAAP) are established by the Financial Accounting Standards Board (FASB) in the form of accounting standards updates (ASU's) to the FASB's Accounting Standards Codification. | |
The Company considers the applicability and impact of all ASU's. ASU's not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on our consolidated financial position or results of operations. | |
In May 2014, the FASB issued guidance on revenue from contracts with customers that will supersede most current revenue recognition guidance, including industry-specific guidance. The underlying principle is that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. The guidance provides a five-step analysis of transactions to determine when and how revenue is recognized. Other major provisions include capitalization of certain contract costs, consideration of time value of money in the transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. The guidance also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity's contracts with customers. The guidance is effective for the interim and annual periods beginning on or after December 15, 2016 (early adoption is not permitted). The guidance permits the use of either a retrospective or cumulative effect transition method. We have not yet selected a transition method and are currently evaluating the impact of the amended guidance on our consolidated financial position, results of operations and related disclosures. | |
DIVESTITURE
DIVESTITURE | 12 Months Ended |
Dec. 31, 2014 | |
Divestiture [Abstract] | |
Divestiture | Note 2. Divestiture |
In 2014, the Company sold its Friction Materials business to Federal Mogul Corporation for $155 million and recognized a pre-tax and after-tax loss of $33 million (of which $5 million was recognized in 2014). The sale of Friction Materials, which was part of the Transportation Systems business, is consistent with the Company's strategic focus on its portfolio of differentiated global technologies. | |
Following the closing of the sale, the Company announced the realignment of its Transportation Systems business segment with its Aerospace business segment. Under the realigned segment reporting structure, the Company has three business segments: Aerospace, Automation and Control Solutions and Performance Materials and Technologies. This realignment has no impact on the Company's historical consolidated financial position, results of operations or cash flows. The Company has reported its financial performance based on the inclusion of Transportation Systems in Aerospace for all periods presented. | |
REPOSITIONING_AND_OTHER_CHARGE
REPOSITIONING AND OTHER CHARGES | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Repositioning And Other Charges [Abstract] | ||||||||||||||
Repositioning and Other Charges | Note 3. Repositioning and Other Charges | |||||||||||||
A summary of repositioning and other charges follows: | ||||||||||||||
Years Ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Severance | $ | 156 | $ | 186 | $ | 91 | ||||||||
Asset impairments | 12 | 23 | 12 | |||||||||||
Exit costs | 16 | 22 | 16 | |||||||||||
Reserve adjustments | -38 | -30 | -66 | |||||||||||
Total net repositioning charge | 146 | 201 | 53 | |||||||||||
Asbestos related litigation charges, net of insurance | 182 | 181 | 156 | |||||||||||
Probable and reasonably estimable environmental liabilities | 268 | 272 | 234 | |||||||||||
Other | 2 | 9 | - | |||||||||||
Total net repositioning and other charges | $ | 598 | $ | 663 | $ | 443 | ||||||||
The following table summarizes the pretax distribution of total net repositioning and other charges by income statement classification: | ||||||||||||||
Years Ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Cost of products and services sold | $ | 525 | $ | 566 | $ | 428 | ||||||||
Selling, general and administrative expenses | 73 | 97 | 15 | |||||||||||
$ | 598 | $ | 663 | $ | 443 | |||||||||
The following table summarizes the pretax impact of total net repositioning and other charges by segment: | ||||||||||||||
Years Ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Aerospace | $ | 193 | $ | 235 | $ | 192 | ||||||||
Automation and Control Solutions | 80 | 68 | 13 | |||||||||||
Performance Materials and Technologies | 33 | 56 | 17 | |||||||||||
Corporate | 292 | 304 | 221 | |||||||||||
$ | 598 | $ | 663 | $ | 443 | |||||||||
In 2014, we recognized repositioning charges totaling $184 million including severance costs of $156 million related to workforce reductions of 2,975 manufacturing and administrative positions across all of our segments. The workforce reductions were primarily related to cost savings actions taken in connection with our productivity and ongoing functional transformation initiatives, factory transitions in our ACS and Aerospace segments to more cost-effective locations, and site consolidations and organizational realignments of businesses in our ACS and PMT segments. Also, $38 million of previously established accruals, primarily for severance, mainly in our Aerospace and ACS segment were returned to income in 2014 due principally to the change in scope of a previously announced repositioning action and to fewer employee severance actions caused by higher attrition than originally planned associated with prior severance programs. | ||||||||||||||
In 2013, we recognized repositioning charges totaling $231 million including severance costs of $186 million related to workforce reductions of 3,081 manufacturing and administrative positions across all of our segments. The workforce reductions were primarily related to cost savings actions taken in connection with our productivity and ongoing functional transformation initiatives, achieving acquisition-related synergies in our ACS segment, outsourcing of non-core components in our Aerospace segment, the shutdown of a manufacturing facility in our PMT segment, and factory transitions in our ACS segment to more cost-effective locations. Also, $30 million of previously established accruals, primarily for severance, in our ACS and PMT segments were returned to income in 2013 due to changes in the scope of previously announced repositioning actions, lower than expected costs in completing the exit of a product line and fewer employee severance actions caused by higher attrition than originally planned associated with prior severance programs. | ||||||||||||||
In 2012, we recognized repositioning charges totaling $119 million including severance costs of $91 million related to workforce reductions of 2,204 manufacturing and administrative positions across all of our segments. The workforce reductions were primarily related to the planned shutdown of a manufacturing facility in our Aerospace segment, the exit from a product line in our PMT segment, and cost savings actions taken in connection with our productivity and ongoing functional transformation initiatives. Also, $66 million of previously established accruals, primarily for severance, in our ACS, Aerospace and PMT segments were returned to income in 2012 due primarily to fewer employee severance actions caused by higher attrition than originally planned associated with prior severance programs and changes in the scope of previously announced repositioning actions. | ||||||||||||||
The following table summarizes the status of our total repositioning reserves: | ||||||||||||||
Severance | Asset | Exit | ||||||||||||
Costs | Impairments | Costs | Total | |||||||||||
Balance at December 31, 2011 | $ | 353 | $ | - | $ | 59 | $ | 412 | ||||||
2012 charges | 91 | 12 | 16 | 119 | ||||||||||
2012 usage - cash | -113 | - | -23 | -136 | ||||||||||
2012 usage - noncash | - | -12 | - | -12 | ||||||||||
Adjustments | -61 | - | -5 | -66 | ||||||||||
Foreign currency translation | 6 | - | - | 6 | ||||||||||
Balance at December 31, 2012 | 276 | - | 47 | 323 | ||||||||||
2013 charges | 186 | 23 | 22 | 231 | ||||||||||
2013 usage - cash | -139 | - | -21 | -160 | ||||||||||
2013 usage - noncash | - | -23 | - | -23 | ||||||||||
Adjustments | -27 | - | -3 | -30 | ||||||||||
Foreign currency translation | 6 | - | - | 6 | ||||||||||
Balance at December 31, 2013 | 302 | - | 45 | 347 | ||||||||||
2014 charges | 156 | 12 | 16 | 184 | ||||||||||
2014 usage - cash | -135 | - | -26 | -161 | ||||||||||
2014 usage - noncash | - | -12 | - | -12 | ||||||||||
Adjustments | -33 | - | -5 | -38 | ||||||||||
Foreign currency translation | -5 | - | - | -5 | ||||||||||
Balance at December 31, 2014 | $ | 285 | $ | - | $ | 30 | $ | 315 | ||||||
Certain repositioning projects in our Aerospace, ACS and PMT segments in 2014, 2013 and 2012 included exit or disposal activities, the costs related to which will be recognized in future periods when the actual liability is incurred. Such exit and disposal costs were not significant. |
OTHER_INCOME_EXPENSE
OTHER (INCOME) EXPENSE | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Other Income Expense [Abstract] | ||||||||||
Other (income) expense Text Block | Note 4. Other (income) expense | |||||||||
Years Ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
Equity (income) loss of affiliated companies | $ | -36 | $ | -36 | $ | -45 | ||||
Gain on sale of available for sale investments | -221 | -195 | - | |||||||
Loss (gain) on sale of non-strategic businesses and assets | 11 | 20 | -5 | |||||||
Interest income | -102 | -69 | -58 | |||||||
Foreign exchange | 34 | 34 | 36 | |||||||
Other, net | 9 | 8 | 2 | |||||||
$ | -305 | $ | -238 | $ | -70 | |||||
Gain on sale of available for sale investments of $221 million and $195 million for 2014 and 2013, respectively, are due to realized gain related to the sale of marketable equity securities. These securities (B/E Aerospace common stock), designated as available for sale, were obtained in conjunction with the sale of the Consumables Solutions business in July 2008. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Income Taxes [Abstract] | |||||||||||
Income Taxes | Note 5. Income Taxes | ||||||||||
Income from continuing operations before taxes | |||||||||||
Years Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
U.S. | $ | 3,340 | $ | 3,002 | $ | 1,761 | |||||
Non-U.S. | 2,478 | 2,410 | 2,114 | ||||||||
$ | 5,818 | $ | 5,412 | $ | 3,875 | ||||||
Tax expense (benefit) | |||||||||||
Years Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Tax expense (benefit) consists of | |||||||||||
Current: | |||||||||||
U.S. Federal | $ | 746 | $ | 663 | $ | 470 | |||||
U.S. State | 39 | 97 | 10 | ||||||||
Non-U.S. | 572 | 428 | 380 | ||||||||
$ | 1,357 | $ | 1,188 | $ | 860 | ||||||
Deferred: | |||||||||||
U.S. Federal | $ | 114 | $ | 160 | $ | 85 | |||||
U.S. State | 63 | 72 | 19 | ||||||||
Non-U.S. | -45 | 30 | -20 | ||||||||
132 | 262 | 84 | |||||||||
$ | 1,489 | $ | 1,450 | $ | 944 | ||||||
Years Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
The U.S. federal statutory income tax rate is reconciled to our effective income tax rate as follows: | |||||||||||
U.S. federal statutory income tax rate | 35 | % | 35 | % | 35 | % | |||||
Taxes on non-U.S. earnings below U.S. tax rate(1) | -7 | -7.2 | -7.1 | ||||||||
U.S. state income taxes(1) | 1.2 | 1.8 | 0.8 | ||||||||
Manufacturing incentives | -1 | -0.9 | -1.7 | ||||||||
ESOP dividend tax benefit | -0.4 | -0.5 | -0.6 | ||||||||
Tax credits | -1 | -1.8 | -0.4 | ||||||||
Reserves for tax contingencies | -0.2 | 0.6 | -0.4 | ||||||||
All other items—net | -1 | -0.2 | -1.2 | ||||||||
25.6 | % | 26.8 | % | 24.4 | % | ||||||
(1) Net of changes in valuation allowance | |||||||||||
The effective tax rate decreased by 1.2 percentage points in 2014 compared to 2013. The decrease was primarily attributable to lower tax expense from the resolution of audits, partially offset by the impact of more income in jurisdictions with higher tax rates and additional reserves. The Company's non-U.S. effective tax rate for 2014 was 21.3%, an increase of approximately 2.3 percentage points compared to 2013. The increase in the non-U.S. effective tax rate was primarily attributable to additional reserves and the impact of more income in jurisdictions with higher tax rates, partially offset by the tax impact of dispositions. The effective tax rate was lower than the U.S. federal statutory rate of 35% primarily due to overall non-U.S. earnings taxed at lower rates. | |||||||||||
The effective tax rate increased by 2.4 percentage points in 2013 compared to 2012. The increase was primarily attributable to lower mark-to-market pension expense in the U.S. Other factors causing an increase in the effective tax rate include higher tax expense related to an increase in tax reserves and higher state tax expense. These increases in the effective tax rate were partially offset by tax benefits from retroactive law changes in the U.S. The Company's non-U.S. effective tax rate for 2013 was 19.0%, an increase of approximately 2.0 percentage points compared to 2012. The increase in the non-U.S. effective tax rate was primarily attributable to higher expense related to retroactive tax law changes in Germany and additional reserves in various jurisdictions, coupled with higher earnings in higher tax rate jurisdictions. The effective tax rate was lower than the U.S. federal statutory rate of 35% primarily due to overall non-U.S. earnings taxed at lower rates. | |||||||||||
Deferred tax assets (liabilities) | |||||||||||
The tax effects of temporary differences and tax carryforwards which give rise to future income tax benefits and payables are as follows: | |||||||||||
December 31, | |||||||||||
Deferred tax assets: | 2014 | 2013 | |||||||||
Pension | $ | 573 | $ | 32 | |||||||
Postretirement benefits other than pensions | 441 | 499 | |||||||||
Asbestos and environmental | 477 | 437 | |||||||||
Employee compensation and benefits | 387 | 382 | |||||||||
Other accruals and reserves | 672 | 702 | |||||||||
Net operating and capital losses | 639 | 838 | |||||||||
Tax credit carryforwards | 199 | 266 | |||||||||
Gross deferred tax assets | 3,388 | 3,156 | |||||||||
Valuation allowance | -560 | -614 | |||||||||
Total deferred tax assets | $ | 2,828 | $ | 2,542 | |||||||
Deferred tax liabilities: | |||||||||||
Property, plant and equipment | $ | -612 | $ | -654 | |||||||
Intangibles | -1,060 | -1,126 | |||||||||
Other asset basis differences | -286 | -350 | |||||||||
Other | -7 | -22 | |||||||||
Total deferred tax liabilities | -1,965 | -2,152 | |||||||||
Net deferred taxes | $ | 863 | $ | 390 | |||||||
The net deferred tax assets are included as components of Current and Non-Current Deferred Income Taxes and Accrued Liabilities within the Consolidated Balance Sheet. | |||||||||||
Our net deferred tax asset of $863 million consists of $305 million related to non-U.S. operations which are comprised principally of net deductible temporary differences and net operating loss, capital loss and tax credit carryforwards (mainly in Canada and the United Kingdom). We maintain a valuation allowance of $557 million against a portion of the non-U.S. gross deferred tax assets. Our valuation allowance decreased by $54 million in 2014, increased by $16 million in 2013 and increased by $7 million in 2012. The amount of the change in the valuation allowance that was credited to income tax expense for 2014 was $10 million and the amounts charged to income tax expense for 2013 and 2012 were $49 million and $18 million, respectively. In the event we determine that we will not be able to realize our net deferred tax assets in the future, we will reduce such amounts through a charge to income in the period such determination is made. Conversely, if we determine that we will be able to realize net deferred tax assets in excess of the carrying amounts, we will decrease the recorded valuation allowance through a credit to income tax expense in the period that such determination is made. | |||||||||||
As of December 31, 2014, our net operating loss, capital loss and tax credit carryforwards were as follows: | |||||||||||
Net Operating | |||||||||||
Expiration | and Capital Loss | Tax Credit | |||||||||
Jurisdiction | Period | Carryforwards | Carryforwards | ||||||||
U.S. Federal | 2032 | $ | 1 | $ | 51 | ||||||
U.S. State | 2034 | 2,200 | 35 | ||||||||
Non-U.S. | 2034 | 2,463 | 148 | ||||||||
Total | $ | 4,664 | $ | 234 | |||||||
Many jurisdictions impose limitations on the timing and utilization of net operating loss and tax credit carryforwards. In those instances whereby there is an expected permanent limitation on the utilization of the net operating loss or tax credit carryforward the deferred tax asset and amount of the carryforward have been reduced. | |||||||||||
U.S. federal income taxes have not been provided on undistributed earnings of the vast majority of our international subsidiaries as it is our intention to reinvest these earnings into the respective subsidiaries. At December 31, 2014 Honeywell has not provided for U.S. federal income and non-U.S. withholding taxes on approximately $15.0 billion of such earnings of our non-U.S. operations. It is not practicable to estimate the amount of tax that might be payable if some or all of such earnings were to be repatriated, and the amount of foreign tax credits that would be available to reduce or eliminate the resulting U.S. income tax liability. | |||||||||||
2014 | 2013 | 2012 | |||||||||
Change in unrecognized tax benefits: | |||||||||||
Balance at beginning of year | $ | 729 | $ | 722 | $ | 815 | |||||
Gross increases related to current period tax positions | 65 | 41 | 25 | ||||||||
Gross increases related to prior periods tax positions | 204 | 118 | 44 | ||||||||
Gross decreases related to prior periods tax positions | -277 | -21 | -62 | ||||||||
Decrease related to resolutions of audits with tax authorities | -32 | -92 | -40 | ||||||||
Expiration of the statute of limitations for the assessment of taxes | -10 | -30 | -64 | ||||||||
Foreign currency translation | -20 | -9 | 4 | ||||||||
Balance at end of year | $ | 659 | $ | 729 | $ | 722 | |||||
As of December 31, 2014, 2013, and 2012 there were $659 million, $729 million and $722 million of unrecognized tax benefits that if recognized would be recorded as a component of income tax expense. | |||||||||||
Generally, our uncertain tax positions are related to tax years that remain subject to examination by the relevant tax authorities. The following table summarizes these open tax years by major jurisdiction as of December 31, 2014: | |||||||||||
Open Tax Years | |||||||||||
Based on Originally Filed Returns | |||||||||||
Jurisdiction | Examination in | Examination not yet | |||||||||
progress | initiated | ||||||||||
U.S. Federal | 2010 - 2013 | 2013 - 2014 | |||||||||
U.S. State | 2007 - 2013 | 2006 - 2014 | |||||||||
United Kingdom | N/A | 2012 - 2014 | |||||||||
Canada(1) | 2007 - 2013 | 2014 | |||||||||
Germany(1) | 2006 - 2012 | 2013 - 2014 | |||||||||
France | 2008 - 2013 | 2004 - 2007, 2014 | |||||||||
Netherlands | 2009 | 2010 - 2014 | |||||||||
Australia | N/A | 2009 - 2014 | |||||||||
China | 2003 - 2012 | 2013 - 2014 | |||||||||
India | 1999 - 2012 | 2013 - 2014 | |||||||||
Italy | 2008 - 2013 | 2014 | |||||||||
(1) Includes provincial or similar local jurisdictions, as applicable. | |||||||||||
Based on the outcome of these examinations, or as a result of the expiration of statute of limitations for specific jurisdictions, it is reasonably possible that certain unrecognized tax benefits for tax positions taken on previously filed tax returns will materially change from those recorded as liabilities for uncertain tax positions in our financial statements. In addition, the outcome of these examinations may impact the valuation of certain deferred tax assets (such as net operating losses) in future periods. | |||||||||||
Unrecognized tax benefits for examinations in progress were $403 million, $431 million and $443 million, as of December 31, 2014, 2013, and 2012, respectively. Estimated interest and penalties related to the underpayment of income taxes are classified as a component of Tax Expense in the Consolidated Statement of Operations and totaled $24 million, $17 million and $37 million for the years ended December 31, 2014, 2013, and 2012, respectively. Accrued interest and penalties were $325 million, $301 million and $284 million, as of December 31, 2014, 2013, and 2012, respectively. | |||||||||||
EARNINGS_LOSS_PER_SHARE
EARNINGS (LOSS) PER SHARE | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Earnings Per Share [Abstract] | |||||||||||
Earnings Per Share | Note 6. Earnings Per Share | ||||||||||
The details of the earnings per share calculations for the years ended December 31, 2014, 2013 and 2012 are as follows: | |||||||||||
Years Ended December 31, | |||||||||||
Basic | 2014 | 2013 | 2012 | ||||||||
Net income attributable to Honeywell | $ | 4,239 | $ | 3,924 | $ | 2,926 | |||||
Weighted average shares outstanding | 784.4 | 786.4 | 782.4 | ||||||||
Earnings per share of common stock | $ | 5.4 | $ | 4.99 | $ | 3.74 | |||||
Years Ended December 31, | |||||||||||
Assuming Dilution | 2014 | 2013 | 2012 | ||||||||
Net income attributable to Honeywell | $ | 4,239 | $ | 3,924 | $ | 2,926 | |||||
Average Shares | |||||||||||
Weighted average shares outstanding | 784.4 | 786.4 | 782.4 | ||||||||
Dilutive securities issuable - stock plans | 10.8 | 10.9 | 9.5 | ||||||||
Total weighted average diluted shares outstanding | 795.2 | 797.3 | 791.9 | ||||||||
Earnings per share of common stock - | |||||||||||
assuming dilution | $ | 5.33 | $ | 4.92 | $ | 3.69 | |||||
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. In 2014, 2013, and 2012 the weighted number of stock options excluded from the computations were 4.7 million, 2.2 million, and 12.5 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 | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Accounts, Notes And Other Receivables [Abstract] | ||||||||
Accounts, Notes and Other Receivables | Note 7. Accounts, Notes and Other Receivables | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Trade | $ | 7,788 | $ | 7,530 | ||||
Other | 445 | 646 | ||||||
8,233 | 8,176 | |||||||
Less - Allowance for doubtful accounts | -273 | -247 | ||||||
$ | 7,960 | $ | 7,929 | |||||
Trade Receivables includes $1,636 million and $1,609 million of unbilled balances under long-term contracts as of December 31, 2014 and December 31, 2013, respectively. These amounts are billed in accordance with the terms of customer contracts to which they relate. | ||||||||
INVENTORIES
INVENTORIES | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Inventories [Abstract] | ||||||||
Inventories | Note 8. Inventories | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Raw materials | $ | 1,124 | $ | 1,121 | ||||
Work in process | 815 | 841 | ||||||
Finished products | 2,634 | 2,497 | ||||||
4,573 | 4,459 | |||||||
Reduction to LIFO cost basis | -168 | -166 | ||||||
$ | 4,405 | $ | 4,293 | |||||
Inventories valued at LIFO amounted to $434 million and $405 million at December 31, 2014 and 2013, respectively. Had such LIFO inventories been valued at current costs, their carrying values would have been approximately $168 million and $166 million higher at December 31, 2014 and 2013, respectively. |
PROPERTY_PLANT_AND_EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property Plant And Equipment [Abstract] | ||||||||
Property, Plant and Equipment | Note 9. Property, Plant and Equipment - Net | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Land and improvements | $ | 343 | $ | 376 | ||||
Machinery and equipment | 10,313 | 10,437 | ||||||
Buildings and improvements | 3,119 | 3,157 | ||||||
Construction in progress | 727 | 647 | ||||||
14,502 | 14,617 | |||||||
Less—Accumulated depreciation | -9,119 | -9,339 | ||||||
$ | 5,383 | $ | 5,278 | |||||
Depreciation expense was $667 million, $670 million and $660 million in 2014, 2013 and 2012, respectively. | ||||||||
GOODWILL_AND_OTHER_INTANGIBLES
GOODWILL AND OTHER INTANGIBLES-NET | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Goodwill And Other Intangible Assets Net [Abstract] | ||||||||||||||
Goodwill and Other Intangible Assets, Net | Note 10. Goodwill and Other Intangible Assets - Net | |||||||||||||
The change in the carrying amount of goodwill for the years ended December 31, 2014 and 2013 by segment is as follows: | ||||||||||||||
Currency | ||||||||||||||
December 31, | Acquisitions/ | Translation | December 31, | |||||||||||
2013 | Divestitures | Adjustment | 2014 | |||||||||||
Aerospace | $ | 2,273 | $ | -4 | $ | -11 | $ | 2,258 | ||||||
Automation and Control | ||||||||||||||
Solutions | 8,006 | 12 | -194 | 7,824 | ||||||||||
Performance Materials | ||||||||||||||
and Technologies | 2,767 | - | -61 | 2,706 | ||||||||||
$ | 13,046 | $ | 8 | $ | -266 | $ | 12,788 | |||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||
Gross | Net | Gross | Net | |||||||||||
Carrying | Accumulated | Carrying | Carrying | Accumulated | Carrying | |||||||||
Amount | Amortization | Amount | Amount | Amortization | Amount | |||||||||
Determinable life intangibles: | ||||||||||||||
Patents and technology | $ | 1,400 | $ | -1,005 | $ | 395 | $ | 1,438 | $ | -935 | $ | 503 | ||
Customer relationships | 1,867 | -857 | 1,010 | 1,904 | -749 | 1,155 | ||||||||
Trademarks | 191 | -125 | 66 | 194 | -118 | 76 | ||||||||
Other | 291 | -260 | 31 | 294 | -234 | 60 | ||||||||
3,749 | -2,247 | 1,502 | 3,830 | -2,036 | 1,794 | |||||||||
Indefinite life intangibles: | ||||||||||||||
Trademarks | 706 | - | 706 | 720 | - | 720 | ||||||||
$ | 4,455 | $ | -2,247 | $ | 2,208 | $ | 4,550 | $ | -2,036 | $ | 2,514 | |||
Intangible assets amortization expense was $257 million, $319 million, and $266 million in 2014, 2013, 2012, respectively. Estimated intangible asset amortization expense for each of the next five years approximates $208 million in 2015, $183 million in 2016, $173 million in 2017, $157 million in 2018, and $143 million in 2019. | ||||||||||||||
ACCRUED_LIABILITIES
ACCRUED LIABILITIES | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Accrued Liabilities Current [Abstract] | ||||||||
Accrued Liabilities | Note 11. Accrued Liabilities | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Customer advances and deferred income | $ | 2,094 | $ | 2,172 | ||||
Compensation, benefit and other employee related | 1,476 | 1,506 | ||||||
Asbestos related liabilities | 352 | 461 | ||||||
Repositioning | 284 | 303 | ||||||
Product warranties and performance guarantees | 332 | 323 | ||||||
Environmental costs | 278 | 304 | ||||||
Income taxes | 261 | 240 | ||||||
Accrued interest | 101 | 100 | ||||||
Other taxes (payroll, sales, VAT etc.) | 243 | 249 | ||||||
Insurance | 264 | 255 | ||||||
Other (primarily operating expenses) | 1,086 | 1,066 | ||||||
$ | 6,771 | $ | 6,979 |
LONGTERM_DEBT_AND_CREDIT_AGREE
LONG-TERM DEBT AND CREDIT AGREEMENTS | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Long Term Debt And Credit Agreements [Abstract] | |||||||||
Long-term Debt and Credit Agreements | Note 12. Long-term Debt and Credit Agreements | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
3.875% notes due 2014 | $ | - | $ | 600 | |||||
Floating rate notes due 2015 | 700 | 700 | |||||||
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 | 900 | |||||||
4.25% notes due 2021 | 800 | 800 | |||||||
3.35% notes due 2023 | 300 | 300 | |||||||
5.70% notes due 2036 | 550 | 550 | |||||||
5.70% notes due 2037 | 600 | 600 | |||||||
5.375% notes due 2041 | 600 | 600 | |||||||
Industrial development bond obligations, floating | |||||||||
rate maturing at various dates through 2037 | 30 | 35 | |||||||
6.625% debentures due 2028 | 216 | 216 | |||||||
9.065% debentures due 2033 | 51 | 51 | |||||||
Other (including capitalized leases), 0.6%-9.5% | |||||||||
maturing at various dates through 2023 | 538 | 381 | |||||||
6,985 | 7,433 | ||||||||
Less: current portion | -939 | -632 | |||||||
$ | 6,046 | $ | 6,801 | ||||||
The schedule of principal payments on long-term debt is as follows: | |||||||||
December 31, | |||||||||
2014 | |||||||||
2015 | $ | 939 | |||||||
2016 | 485 | ||||||||
2017 | 477 | ||||||||
2018 | 904 | ||||||||
2019 | 903 | ||||||||
Thereafter | 3,277 | ||||||||
6,985 | |||||||||
Less-current portion | -939 | ||||||||
$ | 6,046 |
LEASE_COMMITMENTS
LEASE COMMITMENTS | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Lease Commitments [Abstract] | |||||
Lease Commitments | Note 13. Lease 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, | |||||
2014 | |||||
2015 | $ | 330 | |||
2016 | 268 | ||||
2017 | 202 | ||||
2018 | 133 | ||||
2019 | 91 | ||||
Thereafter | 257 | ||||
$ | 1,281 | ||||
Rent expense was $420 million, $404 million and $390 million in 2014, 2013 and 2012, respectively. | |||||
FINANCIAL_INSTRUMENTS_AND_FAIR
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASURES | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Financial Instruments And Fair Value Measures [Abstract] | ||||||||||||
Financial Instruments and Fair Value Measures | Note 14. Financial Instruments and Fair Value Measures | |||||||||||
Credit and Market Risk—Financial 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 and currency exchange rates 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 Management—We 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 primary objective is to preserve the U.S. Dollar value of foreign currency denominated cash flows and earnings. We attempt to hedge currency 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, 2014 and 2013, we had contracts with notional amounts of $7,291 million and $7,298 million, respectively, to exchange foreign currencies, principally the Euro, U.S. Dollar, Canadian Dollar, Mexican Peso, Chinese Renminbi, Indian Rupee, British Pound, Czech Koruna and Swiss Franc. | ||||||||||||
Interest Rate Risk Management— We use a combination of financial instruments, including long-term, medium-term and short-term financing, variable-rate commercial paper, and interest rate swaps to manage the interest rate mix of our total debt portfolio and related overall cost of borrowing. At December 31, 2014 and 2013, interest rate swap agreements designated as fair value hedges effectively changed $1,100 million and $1,700 million, respectively, of fixed rate debt at rates of 4.00 and 3.96, respectively, to LIBOR based floating rate debt. Our interest rate swaps mature at various dates through 2023. | ||||||||||||
Fair Value of Financial Instruments— The FASB's accounting guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The FASB's guidance classifies the inputs used to measure fair value into the following hierarchy: | ||||||||||||
Level 1 | Unadjusted quoted prices in active markets for identical assets or liabilities | |||||||||||
Level 2 | Unadjusted quoted prices in active markets for similar assets or liabilities, or | |||||||||||
Unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or | ||||||||||||
Inputs other than quoted prices that are observable for the asset or liability | ||||||||||||
Level 3 | Unobservable inputs for the asset or liability | |||||||||||
Financial and nonfinancial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The following table sets forth the Company's financial assets and liabilities that were accounted for at fair value on a recurring basis as of December 31, 2014 and 2013: | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Assets: | ||||||||||||
Foreign currency exchange contracts | $ | 20 | $ | 20 | ||||||||
Available for sale investments | 1,479 | 826 | ||||||||||
Interest rate swap agreements | 93 | 63 | ||||||||||
Liabilities: | ||||||||||||
Foreign currency exchange contracts | $ | 10 | $ | 27 | ||||||||
Interest rate swap agreements | - | 8 | ||||||||||
The foreign currency exchange contracts and interest rate swap agreements are valued using broker quotations, or market transactions in either the listed or over-the-counter markets. As such, these derivative instruments are classified within level 2. The Company holds investments in marketable equity securities that are designated as available for sale and are valued using quoted market prices. As such, these investments are classified within level 1. The Company also holds investments in commercial paper, certificates of deposits, and time deposits that are designated as available for sale and are valued using market transactions in over-the-counter markets. As such, these investments are classified within level 2. | ||||||||||||
The carrying value of cash and cash equivalents, trade accounts and notes receivables, payables, commercial paper and short-term borrowings contained in the Consolidated Balance Sheet approximates fair value. The following table sets forth the Company's financial assets and liabilities that were not carried at fair value: | ||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||
Carrying | Fair | Carrying | Fair | |||||||||
Value | Value | Value | Value | |||||||||
Assets | ||||||||||||
Long-term receivables | $ | 297 | $ | 293 | $ | 250 | $ | 245 | ||||
Liabilities | ||||||||||||
Long-term debt and related current maturities | $ | 6,985 | $ | 7,817 | $ | 7,433 | $ | 8,066 | ||||
The Company determined the fair value of the long-term receivables by discounting based upon the terms of the receivable and counterparty details including credit quality. As such, the fair value of these receivables is considered level 2. The Company determined the fair value of the long-term debt and related current maturities utilizing transactions in the listed markets for identical or similar liabilities. As such, the fair value of the long-term debt and related current maturities is considered level 2 as well. | ||||||||||||
We enter into transactions that are subject to arrangements designed to provide for netting of offsetting obligations in the event of the insolvency or default of a counterparty. However, we have not elected to offset multiple contracts with a single counterparty, therefore the fair value of the derivative instruments in a loss position is not offset against the fair value of derivative instruments in a gain position. | ||||||||||||
Interest rate swap agreements are designated as hedge relationships with gains or (losses) on the derivative recognized in Interest and other financial charges offsetting the gains and losses on the underlying debt being hedged. Gains on interest rate swap agreements recognized in earnings were $38 million in the year ended December 31, 2014. Losses on interest rate swap agreements recognized in earnings were $91 million in the year ended 2013. Gains and losses are fully offset by losses and gains on the underlying debt being hedged. | ||||||||||||
We also economically hedge our exposure to changes in foreign exchange rates principally with forward contracts. These contracts are marked-to-market with the resulting gains and losses recognized in earnings offsetting the gains and losses on the non-functional currency denominated monetary assets and liabilities being hedged. We recognized $181 million of expense and $162 million of income, in Other (Income) Expense for the years ended December 31, 2014 and 2013, respectively. See Note 4 Other (Income) Expense for further details of the net impact of these economic foreign currency hedges. |
OTHER_LIABILITIES
OTHER LIABILITIES | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Other Liabilities Current [Abstract] | |||||||||
Other Liabilities | Note 15. Other Liabilities | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Pension and other employee related | $ | 2,497 | $ | 1,756 | |||||
Income taxes | 764 | 952 | |||||||
Environmental | 313 | 339 | |||||||
Insurance | 253 | 241 | |||||||
Asset retirement obligations | 67 | 68 | |||||||
Deferred income | 93 | 44 | |||||||
Other | 295 | 334 | |||||||
$ | 4,282 | $ | 3,734 |
CAPITAL_STOCK
CAPITAL STOCK | 12 Months Ended |
Dec. 31, 2014 | |
Capital Stock [Abstract] | |
Capital Stock | Note 16. Capital Stock |
We are authorized to issue up to 2,000,000,000 shares of common stock, with a par value of $1. 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. | |
In December 2013 the Board of Directors authorized the repurchase of up to $5 billion of Honeywell common stock, $4.1 billion and $5 billion remained available as of December 31, 2014 and December 31, 2013 for additional share repurchases, respectively. | |
We purchased approximately 10.0 million and 13.5 million shares of our common stock in 2014 and 2013, for $924 million and $1,073 million, respectively. | |
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, 2014, there was no preferred stock outstanding. |
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accumulated Other Comprehensive Income (Loss) [Abstract] | |||||||||||||
Accumulated Other Comprehensive Income (Loss) | Note 17. Accumulated Other Comprehensive Income (Loss) | ||||||||||||
Total accumulated other comprehensive income (loss) is included in the Consolidated Statement of Shareowners' Equity. Comprehensive Income (Loss) attributable to noncontrolling 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, 2014 | |||||||||||||
Foreign exchange translation adjustment | $ | -1,044 | $ | - | $ | -1,044 | |||||||
Pensions and other postretirement benefit adjustments | -1,707 | 624 | -1,083 | ||||||||||
Changes in fair value of available for sale investments | -246 | 76 | -170 | ||||||||||
Changes in fair value of effective cash flow hedges | 24 | -4 | 20 | ||||||||||
$ | -2,973 | $ | 696 | $ | -2,277 | ||||||||
Year Ended December 31, 2013 | |||||||||||||
Foreign exchange translation adjustment | $ | -52 | $ | - | $ | -52 | |||||||
Pensions and other postretirement benefit adjustments | 3,514 | -1,311 | 2,203 | ||||||||||
Changes in fair value of available for sale investments | 30 | -17 | 13 | ||||||||||
Changes in fair value of effective cash flow hedges | -14 | 7 | -7 | ||||||||||
$ | 3,478 | $ | -1,321 | $ | 2,157 | ||||||||
Year Ended December 31, 2012 | |||||||||||||
Foreign exchange translation adjustment | $ | 282 | $ | - | $ | 282 | |||||||
Pensions and other postretirement benefit adjustments | -285 | 87 | -198 | ||||||||||
Changes in fair value of available for sale investments | 54 | -60 | -6 | ||||||||||
Changes in fair value of effective cash flow hedges | 35 | -8 | 27 | ||||||||||
$ | 86 | $ | 19 | $ | 105 | ||||||||
Components of Accumulated Other Comprehensive Income (Loss) | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Cumulative foreign exchange translation adjustment | $ | -740 | $ | 304 | |||||||||
Pensions and other postretirement benefit adjustments | -728 | 355 | |||||||||||
Fair value of available for sale investments | - | 170 | |||||||||||
Fair value of effective cash flow hedges | 9 | -11 | |||||||||||
$ | -1,459 | $ | 818 | ||||||||||
Changes in Accumulated Other Comprehensive Income by Component | |||||||||||||
Changes in | Changes in | ||||||||||||
Foreign | Pension | Fair Value of | Fair Value of | ||||||||||
Exchange | and Other | Available | Effective | ||||||||||
Translation | Postretirement | for Sale | Cash Flow | ||||||||||
Adjustment | Adjustments | Investments | Hedges | Total | |||||||||
Balance at December 31, 2013 | $ | 304 | $ | 355 | $ | 170 | $ | -11 | $ | 818 | |||
Other comprehensive income | |||||||||||||
(loss) before reclassifications | -1,044 | -1,284 | 15 | 20 | -2,293 | ||||||||
Amounts reclassified from | |||||||||||||
accumulated other | |||||||||||||
comprehensive income | - | 201 | -185 | - | 16 | ||||||||
Net current period other | |||||||||||||
comprehensive income (loss) | -1,044 | -1,083 | -170 | 20 | -2,277 | ||||||||
Balance at December 31, 2014 | $ | -740 | $ | -728 | $ | - | $ | 9 | $ | -1,459 | |||
Changes in | Changes in | ||||||||||||
Foreign | Pension | Fair Value of | Fair Value of | ||||||||||
Exchange | and Other | Available | Effective | ||||||||||
Translation | Postretirement | for Sale | Cash Flow | ||||||||||
Adjustment | Adjustments | Investments | Hedges | Total | |||||||||
Balance at December 31, 2012 | $ | 356 | $ | -1,848 | $ | 157 | $ | -4 | $ | -1,339 | |||
Other comprehensive income | |||||||||||||
(loss) before reclassifications | -52 | 2,161 | 140 | -30 | 2,219 | ||||||||
Amounts reclassified from | |||||||||||||
accumulated other | |||||||||||||
comprehensive income | - | 42 | -127 | 23 | -62 | ||||||||
Net current period other | |||||||||||||
comprehensive income (loss) | -52 | 2,203 | 13 | -7 | 2,157 | ||||||||
Balance at December 31, 2013 | $ | 304 | $ | 355 | $ | 170 | $ | -11 | $ | 818 | |||
Reclassifications Out of Accumulated Other Comprehensive Income | |||||||||||||
Year Ended December 31, 2014 | |||||||||||||
Affected Line in the Consolidated Statement of Operations | |||||||||||||
Product Sales | Cost of Products Sold | Cost of Services Sold | Selling, General and Administrative Expenses | Other (Income) Expense | Total | ||||||||
Amortization of Pension and | |||||||||||||
Other Postretirement Items: | |||||||||||||
Actuarial losses recognized | $ | - | $ | 199 | $ | 38 | $ | 42 | $ | - | $ | 279 | |
Prior service (credit) | |||||||||||||
recognized | - | -1 | - | - | - | -1 | |||||||
Transition obligation | |||||||||||||
recognized | - | 2 | - | - | - | 2 | |||||||
Losses (gains) on cash flow | |||||||||||||
hedges | -5 | - | - | 5 | - | - | |||||||
Unrealized gains on available | |||||||||||||
for sale investments | - | - | - | - | -221 | -221 | |||||||
Total before tax | $ | -5 | $ | 200 | $ | 38 | $ | 47 | $ | -221 | $ | 59 | |
Tax expense (benefit) | -43 | ||||||||||||
Total reclassifications for the period, net of tax | $ | 16 | |||||||||||
Year Ended December 31, 2013 | |||||||||||||
Affected Line in the Consolidated Statement of Operations | |||||||||||||
Product Sales | Cost of Products Sold | Cost of Services Sold | Selling, General and Administrative Expenses | Other (Income) Expense | Total | ||||||||
Amortization of Pension and | |||||||||||||
Other Postretirement Items: | |||||||||||||
Actuarial losses recognized | $ | - | $ | 62 | $ | 14 | $ | 13 | $ | - | $ | 89 | |
Prior service cost | |||||||||||||
recognized | - | 7 | 1 | 1 | - | 9 | |||||||
Transition obligation | |||||||||||||
recognized | - | 2 | - | - | - | 2 | |||||||
Settlements and | |||||||||||||
curtailments | - | -30 | -6 | -6 | - | -42 | |||||||
Losses on cash flow hedges | 7 | 5 | - | 11 | - | 23 | |||||||
Unrealized gains on available | |||||||||||||
for sale investments | - | - | - | - | -195 | -195 | |||||||
Total before tax | $ | 7 | $ | 46 | $ | 9 | $ | 19 | $ | -195 | $ | -114 | |
Tax expense | 52 | ||||||||||||
Total reclassifications for the period, net of tax | $ | -62 |
STOCKBASED_COMPENSATION_PLANS
STOCK-BASED COMPENSATION PLANS | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Stock Based Compensation Plans [Abstract] | |||||||||||||||||
Stock-Based Compensation Plans | Note 18. Stock-Based Compensation Plans | ||||||||||||||||
Under the terms of the 2011 Stock Incentive Plan of Honeywell International Inc. and its Affiliates (the Plan) there were 19,752,482 shares of Honeywell common stock available for future grants at December 31, 2014. Additionally, under the 2006 Stock Plan for Non-Employee Directors of Honeywell International Inc. (the Directors Plan) there were 107,995 shares of Honeywell common stock available for future grants at December 31, 2014. | |||||||||||||||||
Stock Options—The 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 employee's 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 our common stock and historical volatility of our common stock. We used a Monte Carlo simulation model to derive an expected term which represents an estimate of the time options are expected to remain outstanding. Such model uses historical data to estimate option exercise activity and post-vest termination behavior. 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 selling, general and administrative expenses in 2014, 2013 and 2012 was $85 million, $70 million and $65 million, respectively. The associated future income tax benefit recognized in 2014, 2013 and 2012 was $31 million, $24 million and $23 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, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Weighted average fair value per share of options | |||||||||||||||||
granted during the year(1) | $ | 16.35 | $ | 11.85 | $ | 13.26 | |||||||||||
Assumptions: | |||||||||||||||||
Expected annual dividend yield | 2.05 | % | 2.55 | % | 2.57 | % | |||||||||||
Expected volatility | 23.06 | % | 24.73 | % | 30.36 | % | |||||||||||
Risk-free rate of return | 1.48 | % | 0.91 | % | 1.16 | % | |||||||||||
Expected option term (years) | 5 | 5.5 | 5.8 | ||||||||||||||
(1) Estimated on date of grant using Black-Scholes option-pricing model. | |||||||||||||||||
The following table summarizes information about stock option activity for the three years ended December 31, 2014: | |||||||||||||||||
Weighted | |||||||||||||||||
Average | |||||||||||||||||
Number of | Exercise | ||||||||||||||||
Options | Price | ||||||||||||||||
Outstanding at December 31, 2011 | 38,916,370 | $ | 43.01 | ||||||||||||||
Granted | 5,788,734 | 59.86 | |||||||||||||||
Exercised | -8,347,313 | 36.52 | |||||||||||||||
Lapsed or canceled | -788,770 | 49.76 | |||||||||||||||
Outstanding at December 31, 2012 | 35,569,021 | 47.13 | |||||||||||||||
Granted | 6,041,422 | 69.89 | |||||||||||||||
Exercised | -10,329,611 | 41.91 | |||||||||||||||
Lapsed or canceled | -616,995 | 53.84 | |||||||||||||||
Outstanding at December 31, 2013 | 30,663,837 | 53.27 | |||||||||||||||
Granted | 5,823,706 | 93.95 | |||||||||||||||
Exercised | -5,697,263 | 47.47 | |||||||||||||||
Lapsed or canceled | -1,294,668 | 67.7 | |||||||||||||||
Outstanding at December 31, 2014 | 29,495,612 | $ | 61.8 | ||||||||||||||
Vested and expected to vest at December 31, 2014(1) | 28,015,623 | $ | 60.44 | ||||||||||||||
Exercisable at December 31, 2014 | 16,019,742 | $ | 49.4 | ||||||||||||||
(1) Represents the sum of vested options of 16.0 million and expected to vest options of 12.0 million. Expected to vest options are derived by applying the pre-vesting forfeiture rate assumption to total outstanding unvested options of 28.0 million. | |||||||||||||||||
The following table summarizes information about stock options outstanding and exercisable at December 31, 2014: | |||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||
Weighted | Weighted | ||||||||||||||||
Weighted | Average | Aggregate | Average | Aggregate | |||||||||||||
Range of | Number | Average | Exercise | Intrinsic | Number | Exercise | Intrinsic | ||||||||||
Exercise prices | Outstanding | Life(1) | Price | Value | Exercisable | Price | Value | ||||||||||
$28.35-$39.99 | 2,029,342 | 3.71 | $ | 29.46 | $ | 143 | 2,029,342 | $ | 29.46 | $ | 143 | ||||||
$40.00-$49.99 | 5,971,196 | 3.86 | 42 | 346 | 5,968,696 | 42 | 346 | ||||||||||
$50.00-$59.99 | 10,710,421 | 6.07 | 58.36 | 445 | 6,777,404 | 58.12 | 283 | ||||||||||
$60.00-$74.99 | 5,202,747 | 8.1 | 69.72 | 157 | 1,214,300 | 69.27 | 37 | ||||||||||
$75.00-$95.00 | 5,581,906 | 9.16 | 93.95 | 33 | 30,000 | 93.97 | - | ||||||||||
29,495,612 | 6.4 | 61.8 | $ | 1,124 | 16,019,742 | 49.4 | $ | 809 | |||||||||
(1) Average remaining contractual life in years. | |||||||||||||||||
There were 15,594,410 and 19,468,017 options exercisable at weighted average exercise prices of $45.76 and $43.64 at December 31, 2013 and 2012, respectively. | |||||||||||||||||
The following table summarizes the financial statement impact from stock options exercised: | |||||||||||||||||
Years Ended December 31, | |||||||||||||||||
Options Exercised | 2014 | 2013 | 2012 | ||||||||||||||
Intrinsic value(1) | $ | 272 | $ | 367 | $ | 202 | |||||||||||
Tax benefit realized | 96 | 129 | 74 | ||||||||||||||
Operating cash inflow | 172 | 333 | 249 | ||||||||||||||
Financing cash inflow | 77 | 99 | 56 | ||||||||||||||
Total cash received | 249 | 432 | 305 | ||||||||||||||
(1) Represents the amount by which the stock price exceeded the exercise price of the options on the date of exercise. | |||||||||||||||||
At December 31, 2014 there was $125 million of total unrecognized compensation cost related to non-vested stock option awards which is expected to be recognized over a weighted-average period of 2.45 years. The total fair value of options vested during 2014, 2013 and 2012 was $72 million, $67 million and $63 million, respectively. | |||||||||||||||||
Restricted Stock Units—Restricted stock unit (RSU) awards entitle the holder to receive one share of common stock for each unit when the units vest. RSUs are issued to certain key employees and directors at fair market value at the date of grant as compensation. RSUs typically become fully vested over periods ranging from three to seven years and are payable in Honeywell common stock upon vesting. | |||||||||||||||||
The following table summarizes information about RSU activity for the three years ended December 31, 2014: | |||||||||||||||||
Weighted | |||||||||||||||||
Average | |||||||||||||||||
Number of | Grant Date | ||||||||||||||||
Restricted | Fair Value | ||||||||||||||||
Stock Units | Per Share | ||||||||||||||||
Non-vested at December 31, 2011 | 9,746,433 | $ | 41.35 | ||||||||||||||
Granted | 2,156,753 | 59.52 | |||||||||||||||
Vested | -3,380,251 | 31.84 | |||||||||||||||
Forfeited | -427,196 | 45.78 | |||||||||||||||
Non-vested at December 31, 2012 | 8,095,739 | 49.91 | |||||||||||||||
Granted | 1,904,504 | 75.73 | |||||||||||||||
Vested | -2,995,553 | 42.17 | |||||||||||||||
Forfeited | -312,470 | 56.58 | |||||||||||||||
Non-vested at December 31, 2013 | 6,692,220 | 60.04 | |||||||||||||||
Granted | 1,455,209 | 94.88 | |||||||||||||||
Vested | -1,787,894 | 53.63 | |||||||||||||||
Forfeited | -460,341 | 63.54 | |||||||||||||||
Non-vested at December 31, 2014 | 5,899,194 | $ | 70.32 | ||||||||||||||
As of December 31, 2014, there was approximately $195 million of total unrecognized compensation cost related to non-vested RSUs granted under our stock plans which is expected to be recognized over a weighted-average period of 3.52 years. | |||||||||||||||||
The following table summarizes information about income statement impact from RSUs for the three years ended December 31, 2014: | |||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Compensation expense | $ | 102 | $ | 100 | $ | 105 | |||||||||||
Future income tax benefit recognized | 37 | 35 | 37 |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Commitments And Contingencies [Abstract] | |||||||||||||||||||||
Commitments and Contingencies | Note 19. 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: | |||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Beginning of year | $ | 643 | $ | 654 | $ | 723 | |||||||||||||||
Accruals for environmental matters deemed probable and | |||||||||||||||||||||
reasonably estimable | 268 | 272 | 234 | ||||||||||||||||||
Environmental liability payments | -321 | -304 | -320 | ||||||||||||||||||
Other | 1 | 21 | 17 | ||||||||||||||||||
End of year | $ | 591 | $ | 643 | $ | 654 | |||||||||||||||
Environmental liabilities are included in the following balance sheet accounts: | |||||||||||||||||||||
December 31, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Accrued liabilities | $ | 278 | $ | 304 | |||||||||||||||||
Other liabilities | 313 | 339 | |||||||||||||||||||
$ | 591 | $ | 643 | ||||||||||||||||||
We do not currently possess sufficient information to reasonably estimate the amounts of environmental liabilities to be recorded upon future completion of studies, litigation or settlements, and neither the timing nor the amount of the ultimate costs associated with environmental matters can be determined although they could be material to our consolidated results of operations and operating cash flows in the periods recognized or paid. However, considering our past experience and existing reserves, we do not expect that environmental matters will have a material adverse effect on our consolidated financial position. | |||||||||||||||||||||
Onondaga Lake, Syracuse, NY—We are implementing a combined dredging/capping remedy of Onondaga Lake pursuant to a consent decree approved by the United States District Court for the Northern District of New York in January 2007. We have accrued for our estimated cost of remediating Onondaga Lake based on currently available information and analysis performed by our engineering consultants. Honeywell is also conducting remedial investigations and activities at other sites in Syracuse. We have recorded reserves for these investigations and activities where appropriate, consistent with the accounting policy described above. | |||||||||||||||||||||
Honeywell has entered into a cooperative agreement with potential natural resource trustees to assess alleged natural resource damages relating to this site. It is not possible to predict the outcome or duration of this assessment, or the amounts of, or responsibility for, any damages. | |||||||||||||||||||||
Asbestos Matters | |||||||||||||||||||||
Honeywell is a defendant in asbestos related personal injury actions related to two predecessor companies: | |||||||||||||||||||||
North American Refractories Company (NARCO), which was sold in 1986, produced refractory products (bricks and cement used in high temperature applications). Claimants consist largely of individuals who allege exposure to NARCO asbestos-containing refractory products in an occupational setting. | |||||||||||||||||||||
Bendix Friction Materials (Bendix) business, which was sold in 2014, manufactured automotive brake parts that contained chrysotile asbestos in an encapsulated form. Claimants consist largely of individuals who allege exposure to asbestos from brakes from either performing or being in the vicinity of individuals who performed brake replacements. | |||||||||||||||||||||
The following tables summarize information concerning NARCO and Bendix asbestos related balances: | |||||||||||||||||||||
Asbestos Related Liabilities | |||||||||||||||||||||
Year Ended December 31, | Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Bendix | NARCO | Total | Bendix | NARCO | Total | Bendix | NARCO | Total | |||||||||||||
Beginning of year | $ | 656 | $ | 955 | $ | 1,611 | $ | 653 | $ | 1,119 | $ | 1,772 | $ | 613 | $ | 1,123 | $ | 1,736 | |||
Accrual for update to | |||||||||||||||||||||
estimated liability | 195 | 4 | 199 | 180 | 5 | 185 | 168 | -1 | 167 | ||||||||||||
Change in estimated cost of | |||||||||||||||||||||
future claims | -1 | 0 | -1 | 16 | 0 | 16 | 30 | 0 | 30 | ||||||||||||
Update of expected resolution | |||||||||||||||||||||
values for pending claims | 2 | 0 | 2 | -5 | 0 | -5 | 8 | 0 | 8 | ||||||||||||
Asbestos related liability | |||||||||||||||||||||
payments | -229 | -30 | -259 | -188 | -169 | -357 | -166 | -3 | -169 | ||||||||||||
End of year | $ | 623 | $ | 929 | $ | 1,552 | $ | 656 | $ | 955 | $ | 1,611 | $ | 653 | $ | 1,119 | $ | 1,772 | |||
Insurance Recoveries for Asbestos Related Liabilities | |||||||||||||||||||||
Year Ended December 31, | Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Bendix | NARCO | Total | Bendix | NARCO | Total | Bendix | NARCO | Total | |||||||||||||
Beginning of year | $ | 141 | $ | 531 | $ | 672 | $ | 138 | $ | 569 | $ | 707 | $ | 162 | $ | 618 | $ | 780 | |||
Probable insurance | |||||||||||||||||||||
recoveries related to | |||||||||||||||||||||
estimated liability | 24 | - | 24 | 27 | - | 27 | 28 | - | 28 | ||||||||||||
Insurance receipts for | |||||||||||||||||||||
asbestos related liabilities | -24 | -187 | -211 | -24 | -34 | -58 | -60 | -62 | -122 | ||||||||||||
Insurance receivables | |||||||||||||||||||||
settlements and write offs | -6 | 7 | 1 | - | -6 | -6 | 8 | 13 | 21 | ||||||||||||
Other | - | -1 | -1 | - | 2 | 2 | - | - | - | ||||||||||||
End of year | $ | 135 | $ | 350 | $ | 485 | $ | 141 | $ | 531 | $ | 672 | $ | 138 | $ | 569 | $ | 707 | |||
NARCO and Bendix asbestos related balances are included in the following balance sheet accounts: | |||||||||||||||||||||
December 31, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Other current assets | $ | 31 | $ | 77 | |||||||||||||||||
Insurance recoveries for asbestos related liabilities | 454 | 595 | |||||||||||||||||||
$ | 485 | $ | 672 | ||||||||||||||||||
Accrued liabilities | $ | 352 | $ | 461 | |||||||||||||||||
Asbestos related liabilities | 1,200 | 1,150 | |||||||||||||||||||
$ | 1,552 | $ | 1,611 | ||||||||||||||||||
NARCO Products –In connection with NARCO's emergence from bankruptcy on April 30, 2013, a federally authorized 524(g) trust (NARCO Trust) was established for the evaluation and resolution of all existing and future NARCO asbestos claims. Both Honeywell and NARCO are protected by a permanent channeling injunction barring all present and future individual actions in state or federal courts and requiring all asbestos related claims based on exposure to NARCO products to be made against the NARCO Trust. The NARCO Trust reviews submitted claims and determines award amounts in accordance with established Trust Distribution Procedures approved by the Bankruptcy Court which set forth the criteria claimants must meet to qualify for compensation including, among other things, exposure and medical criteria that determine the award amount. In addition, Honeywell provided, and continues to provide, input to the design of control procedures for processing NARCO claims, and has on-going audit rights to review and monitor the claims processors' adherence to the established requirements of the Trust Distribution Procedures. | |||||||||||||||||||||
Honeywell is obligated to fund NARCO asbestos claims submitted to the NARCO Trust which qualify for payment under the Trust Distribution Procedures (Annual Contribution Claims), subject to annual caps of $140 million in the years 2015 through 2018 and $145 million for each year thereafter. However, the initial $100 million of claims processed through the NARCO Trust (the Initial Claims Amount) will not count against the annual cap and any unused portion of the Initial Claims Amount will roll over to subsequent years until fully utilized. As of December 31, 2014, Honeywell has not made any payments to the NARCO Trust for Annual Contribution Claims. | |||||||||||||||||||||
Honeywell is also responsible for payments due to claimants pursuant to settlement agreements reached during the pendency of the NARCO bankruptcy proceedings that provide for the right to submit claims to the NARCO Trust subject to qualification under the terms of the settlement agreements and Trust Distribution Procedures criteria (Pre-established Unliquidated Claims), which amounts are estimated at $150 million and are expected to be paid during the initial years of trust operations ($3 million of which was paid in 2014). Such payments are not subject to the annual cap described above. | |||||||||||||||||||||
Our consolidated financial statements reflect an estimated liability for pre-established unliquidated claims ($147 million), unsettled claims pending as of the time NARCO filed for bankruptcy protection ($39 million) and for the estimated value of future NARCO asbestos claims expected to be asserted against the NARCO Trust through 2018 ($743 million). In the absence of actual trust experience on which to base the estimate, Honeywell projected the probable value of asbestos related future liabilities, including trust claim handling costs, based on a commonly accepted methodology used by numerous bankruptcy courts addressing 524(g) trusts. Some critical assumptions underlying this methodology include claims filing rates, disease criteria and payment values contained in the Trust Distribution Procedures, estimated approval rates of claims submitted to the NARCO Trust and epidemiological studies estimating disease instances. This projection resulted in a range of estimated liability of $743 million to $961 million. We believe that no amount within this range is a better estimate than any other amount and accordingly, we have recorded the minimum amount in the range. In light of the uncertainties inherent in making long-term projections and in connection with the recent implementation of the Trust Distribution Procedures by the NARCO Trust, as well as the stay of all NARCO asbestos claims which remained in place throughout NARCO's Chapter 11 case, we do not believe that we have a reasonable basis for estimating NARCO asbestos claims beyond 2018. | |||||||||||||||||||||
Our insurance receivable corresponding to the estimated liability for pending and future NARCO asbestos claims reflects coverage which reimburses Honeywell for portions of NARCO-related indemnity and defense costs and is provided by a large number of insurance policies written by dozens of insurance companies in both the domestic insurance market and the London excess market. We conduct analyses to estimate the probable amount of insurance that is recoverable for asbestos claims. While the substantial majority of our insurance carriers are solvent, some of our individual carriers are insolvent, which has been considered in our analysis of probable recoveries. We made judgments concerning insurance coverage that we believe are reasonable and consistent with our historical dealings and our knowledge of any pertinent solvency issues surrounding insurers. | |||||||||||||||||||||
Projecting future events is subject to many uncertainties that could cause the NARCO-related asbestos liabilities or assets to be higher or lower than those projected and recorded. Given the uncertainties, we review our estimates periodically, and update them based on our experience and other relevant factors. Similarly, we will reevaluate our projections concerning our probable insurance recoveries in light of any changes to the projected liability or other developments that may impact insurance recoveries. | |||||||||||||||||||||
Friction Products—The following tables present information regarding Bendix related asbestos claims activity: | |||||||||||||||||||||
Years Ended | |||||||||||||||||||||
December 31, | |||||||||||||||||||||
Claims Activity | 2014 | 2013 | |||||||||||||||||||
Claims Unresolved at the beginning of year | 12,302 | 23,141 | |||||||||||||||||||
Claims Filed | 3,694 | 4,527 | |||||||||||||||||||
Claims Resolved(1) | -6,729 | -15,366 | |||||||||||||||||||
Claims Unresolved at the end of year | 9,267 | 12,302 | |||||||||||||||||||
-1 | Claims resolved in 2014 include 2,110 cancer claims which were determined to have no value. Also, claims resolved in 2014 and 2013 include significantly aged (i.e., pending for more than six years) claims totaling 1,266 and 12,250, respectively, of which 82% and 92%, respectively, were non-malignant. | ||||||||||||||||||||
December 31, | |||||||||||||||||||||
Disease Distribution of Unresolved Claims | 2014 | 2013 | |||||||||||||||||||
Mesothelioma and Other Cancer Claims | 3,933 | 5,810 | |||||||||||||||||||
Nonmalignant Claims | 5,334 | 6,492 | |||||||||||||||||||
Total Claims | 9,267 | 12,302 | |||||||||||||||||||
Honeywell has experienced average resolution values per claim excluding legal costs as follows: | |||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||||
(in whole dollars) | |||||||||||||||||||||
Malignant claims | $ | 53,500 | $ | 51,000 | $ | 49,000 | $ | 48,000 | $ | 54,000 | |||||||||||
Nonmalignant claims | $ | 120 | $ | 850 | $ | 1,400 | $ | 1,000 | $ | 1,300 | |||||||||||
It is not possible to predict whether resolution values for Bendix-related asbestos claims will increase, decrease or stabilize in the future. | |||||||||||||||||||||
Our consolidated financial statements reflect an estimated liability for resolution of pending (claims actually filed as of the financial statement date) and future Bendix-related asbestos claims. We have valued Bendix pending and future claims using average resolution values for the previous five years. We update the resolution values used to estimate the cost of Bendix pending and future claims during the fourth quarter each year. | |||||||||||||||||||||
The liability for future claims represents the estimated value of future asbestos related bodily injury claims expected to be asserted against Bendix over the next five years. Such estimated cost of future Bendix-related asbestos claims is based on historic claims filing experience and dismissal rates, disease classifications, and resolution values in the tort system for the previous five years. In light of the uncertainties inherent in making long-term projections, as well as certain factors unique to friction product asbestos claims, we do not believe that we have a reasonable basis for estimating asbestos claims beyond the next five years. The methodology used to estimate the liability for future claims is similar to that used to estimate the liability for future NARCO-related asbestos claims. | |||||||||||||||||||||
Our insurance receivable corresponding to the liability for settlement of pending and future Bendix asbestos claims reflects coverage which is provided by a large number of insurance policies written by dozens of insurance companies in both the domestic insurance market and the London excess market. Based on our ongoing analysis of the probable insurance recovery, insurance receivables are recorded in the financial statements simultaneous with the recording of the estimated liability for the underlying asbestos claims. This determination is based on our analysis of the underlying insurance policies, our historical experience with our insurers, our ongoing review of the solvency of our insurers, judicial determinations relevant to our insurance programs, and our consideration of the impacts of any settlements reached with our insurers. | |||||||||||||||||||||
Honeywell believes it has sufficient insurance coverage and reserves to cover all pending Bendix-related asbestos claims and Bendix-related asbestos claims estimated to be filed within the next five years. Although it is impossible to predict the outcome of either pending or future Bendix-related asbestos claims, we do not believe that such claims would have a material adverse effect on our consolidated financial position in light of our insurance coverage and our prior experience in resolving such claims. If the rate and types of claims filed, the average resolution value of such claims and the period of time over which claim settlements are paid (collectively, the Variable Claims Factors) do not substantially change, Honeywell would not expect future Bendix-related asbestos claims to have a material adverse effect on our results of operations or operating cash flows in any fiscal year. No assurances can be given, however, that the Variable Claims Factors will not change. | |||||||||||||||||||||
Other Matters | |||||||||||||||||||||
We are subject to a number of other lawsuits, investigations and disputes (some of which involve substantial amounts claimed) arising out of the conduct of our business, including matters relating to commercial transactions, government contracts, product liability, prior acquisitions and divestitures, employee benefit plans, intellectual property, and environmental, health and safety matters. We recognize a liability for any contingency that is probable of occurrence and reasonably estimable. We continually assess the likelihood of adverse judgments of outcomes in these matters, as well as potential ranges of possible losses (taking into consideration any insurance recoveries), based on a careful analysis of each matter with the assistance of outside legal counsel and, if applicable, other experts. Included in these other matters are the following: | |||||||||||||||||||||
Honeywell v. United Auto Workers (UAW) et. al—In July 2011, Honeywell filed an action in federal court (District of New Jersey) against the UAW and all former employees who retired under a series of Master Collective Bargaining Agreements (MCBAs) between Honeywell and the UAW seeking a declaratory judgment that certain express limitations on its obligation to contribute toward the healthcare coverage of such retirees (the CAPS) set forth in the MCBAs may be implemented, effective January 1, 2012. The UAW and certain retiree defendants filed a mirror suit in the Eastern District of Michigan alleging that the MCBAs do not provide for CAPS on the Company's liability for healthcare coverage. The New Jersey action was dismissed and Honeywell subsequently answered the UAW's complaint in Michigan and asserted counterclaims for fraudulent inducement, negligent misrepresentation and breach of implied warranty. The UAW filed a motion to dismiss these counterclaims. The court dismissed Honeywell's fraudulent inducement and negligent misrepresentation claims, but let stand the claim for breach of implied warranty. In the second quarter of 2014, the parties agreed to stay the proceedings with respect to those retirees who retired before the initial inclusions of the CAPS in the 2003 MCBA until the Supreme Court decided the M&G Polymers USA, LLC v. Tackett case. In the Tackett case, the Supreme Court had to resolve a split between the U.S. Court of Appeals for the Sixth Circuit, on the one hand, and the majority of other U.S. Court of Appeals, on the other hand, as to whether retiree health insurance benefits provided in collective bargaining agreements carry an inference that they are vested or guaranteed to continue for life where the agreement is silent as to their duration. In a ruling on January 26, 2015, the Supreme Court held that no such inference of vesting is appropriate, substantially bolstering Honeywell's position in this litigation. Honeywell is confident that the CAPS will be upheld and that its liability for healthcare coverage premiums with respect to the putative class will be limited as negotiated and expressly set forth in the applicable MCBAs. In the event of an adverse ruling, however, Honeywell's other postretirement benefits for pre-2003 retirees would increase by approximately $180 million, reflecting the estimated value of these CAPS. | |||||||||||||||||||||
In December 2013, the UAW and certain of the plaintiffs filed a motion for partial summary judgment with respect to those retirees who retired after the initial inclusion of the CAPS in the 2003 MCBA. The UAW sought a ruling that the 2003 MCBA did not limit Honeywell's obligation to contribute to healthcare coverage for the post-2003 retirees. That motion remains pending. Honeywell is confident that the Court will find that the 2003 MCBA does, in fact, limit Honeywell's retiree healthcare obligation for post-2003 retirees. In the event of an adverse ruling, however, Honeywell's other postretirement benefits for post-2003 retirees would increase by approximately $120 million, reflecting the estimated value of these CAPS. | |||||||||||||||||||||
Joint Strike Fighter Investigation - In 2013 the Company received subpoenas from the Department of Justice requesting information relating primarily to parts manufactured in the United Kingdom and China used in the F-35 fighter jet. The Company is cooperating fully with the investigation. While we believe that Honeywell has complied with all relevant U.S. laws and regulations regarding the manufacture of these sensors, it is not possible to predict the outcome of the investigation or what action, if any, may result from it. | |||||||||||||||||||||
Given the uncertainty inherent in litigation and investigations (including the specific matters referenced above), we do not believe it is possible to develop estimates of reasonably possible loss in excess of current accruals for these matters (other than as specifically set forth above). Considering our past experience and existing accruals, we do not expect the outcome of these matters, either individually or in the aggregate, to have a material adverse effect on our consolidated financial position. Because most contingencies are resolved over long periods of time, potential liabilities are subject to change due to new developments, changes in settlement strategy or the impact of evidentiary requirements, which could cause us to pay damage awards or settlements (or become subject to equitable remedies) that could have a material adverse effect on our results of operations or operating cash flows in the periods recognized or paid. | |||||||||||||||||||||
Warranties and Guarantees | |||||||||||||||||||||
Maximum | |||||||||||||||||||||
Potential | |||||||||||||||||||||
Future | |||||||||||||||||||||
Payments | |||||||||||||||||||||
Operating lease residual values | $ | 41 | |||||||||||||||||||
Other third parties’ financing | 4 | ||||||||||||||||||||
Customer financing | 4 | ||||||||||||||||||||
$ | 49 | ||||||||||||||||||||
In the normal course of business we issue product warranties and product performance guarantees. We accrue for the estimated cost of product warranties and performance guarantees based on contract terms and historical experience at the time of sale. Adjustments to initial obligations for warranties and guarantees are made as changes in the obligations become reasonably estimable. The following table summarizes information concerning our recorded obligations for product warranties and product performance guarantees: | |||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Beginning of year | $ | 405 | $ | 407 | $ | 402 | |||||||||||||||
Accruals for warranties/guarantees issued during the year | 225 | 212 | 196 | ||||||||||||||||||
Adjustment of pre-existing warranties/guarantees | -34 | -1 | -20 | ||||||||||||||||||
Settlement of warranty/guarantee claims | -193 | -213 | -171 | ||||||||||||||||||
End of year | $ | 403 | $ | 405 | $ | 407 | |||||||||||||||
Product warranties and product performance guarantees are included in the following balance sheet accounts: | |||||||||||||||||||||
December 31, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Accrued liabilities | $ | 332 | $ | 323 | |||||||||||||||||
Other liabilities | 71 | 82 | |||||||||||||||||||
$ | 403 | $ | 405 |
PENSION_AND_OTHER_POSTRETIREME
PENSION AND OTHER POSTRETIREMENT BENEFITS | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Pension and Other Post Retirements Disclosure Paragraph Details [Abstract] | ||||||||||||||||||
Pension and Other Postretirement Benefits | Note 20. Pension 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 plans. All non-union hourly and salaried employees joining Honeywell for the first time after December 31, 2012, are not eligible to participate in Honeywell's U.S. defined benefit pension plans. We also sponsor defined benefit pension plans which cover non-U.S. employees who are not U.S. citizens, in certain jurisdictions, principally the UK, Netherlands, Germany, and Canada. Other pension plans outside of the U.S. are not material to the Company either individually or in the aggregate. | ||||||||||||||||||
We also sponsor postretirement benefit plans that provide health care benefits and life insurance coverage mainly to U.S. eligible retirees. Less than 1% of Honeywell's U.S. employees are eligible for a retiree medical subsidy from the Company; and this subsidy is limited to a fixed-dollar amount. In addition, more than 75% of Honeywell's current retirees either have no Company subsidy or have a fixed-dollar subsidy amount. This significantly 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. | ||||||||||||||||||
The following tables summarize the balance sheet impact, including the benefit obligations, assets and funded status associated with our significant pension and other postretirement benefit plans. | ||||||||||||||||||
Pension Benefits | ||||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Change in benefit obligation: | ||||||||||||||||||
Benefit obligation at beginning of year | $ | 16,290 | $ | 17,117 | $ | 5,523 | $ | 5,272 | ||||||||||
Service cost | 241 | 272 | 56 | 58 | ||||||||||||||
Interest cost | 771 | 677 | 231 | 215 | ||||||||||||||
Plan amendments | - | 14 | -17 | - | ||||||||||||||
Actuarial (gains) losses | 1,718 | -975 | 601 | 72 | ||||||||||||||
Acquisitions | - | 190 | - | 44 | ||||||||||||||
Divestitures | - | - | -61 | - | ||||||||||||||
Benefits paid | -996 | -1,005 | -210 | -198 | ||||||||||||||
Foreign currency and other | 11 | - | -362 | 60 | ||||||||||||||
Benefit obligation at end of year | 18,035 | 16,290 | 5,761 | 5,523 | ||||||||||||||
Change in plan assets: | ||||||||||||||||||
Fair value of plan assets at beginning of year | 16,727 | 14,345 | 5,037 | 4,527 | ||||||||||||||
Actual return on plan assets | 1,290 | 3,191 | 622 | 428 | ||||||||||||||
Company contributions | 36 | 28 | 187 | 183 | ||||||||||||||
Acquisitions | - | 168 | - | 45 | ||||||||||||||
Benefits paid | -996 | -1,005 | -210 | -198 | ||||||||||||||
Foreign currency and other | 9 | - | -303 | 52 | ||||||||||||||
Fair value of plan assets at end of year | 17,066 | 16,727 | 5,333 | 5,037 | ||||||||||||||
Funded status of plans | $ | -969 | $ | 437 | $ | -428 | $ | -486 | ||||||||||
Amounts recognized in Consolidated Balance | ||||||||||||||||||
Sheet consist of: | ||||||||||||||||||
Prepaid pension benefit cost(1) | $ | - | $ | 839 | $ | 270 | $ | 120 | ||||||||||
Accrued pension liabilities - current(2) | -74 | -36 | -8 | -13 | ||||||||||||||
Accrued pension liabilities - noncurrent(3) | -895 | -366 | -690 | -593 | ||||||||||||||
Net amount recognized | $ | -969 | $ | 437 | $ | -428 | $ | -486 | ||||||||||
(1) Included in Other Assets on Consolidated Balance Sheet | ||||||||||||||||||
(2) Included in Accrued Liabilities on Consolidated Balance Sheet | ||||||||||||||||||
(3) Included in Other Liabilities - Non-Current on Consolidated Balance Sheet | ||||||||||||||||||
Other Postretirement Benefits | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
Change in benefit obligation: | ||||||||||||||||||
Benefit obligation at beginning of year | $ | 1,096 | $ | 1,477 | ||||||||||||||
Service cost | - | - | ||||||||||||||||
Interest cost | 42 | 44 | ||||||||||||||||
Plan amendments(1) | -87 | -175 | ||||||||||||||||
Actuarial (gains) losses | 46 | -108 | ||||||||||||||||
Benefits paid | -124 | -142 | ||||||||||||||||
Benefit obligation at end of year | 973 | 1,096 | ||||||||||||||||
Change in plan assets: | ||||||||||||||||||
Fair value of plan assets at beginning of year | - | - | ||||||||||||||||
Actual return on plan assets | - | - | ||||||||||||||||
Company contributions | - | - | ||||||||||||||||
Benefits paid | - | - | ||||||||||||||||
Fair value of plan assets at end of year | - | - | ||||||||||||||||
Funded status of plans | $ | -973 | $ | -1,096 | ||||||||||||||
Amounts recognized in Consolidated Balance Sheet consist of: | ||||||||||||||||||
Accrued liabilities | $ | -111 | $ | -130 | ||||||||||||||
Postretirement benefit obligations other than pensions(2) | -862 | -966 | ||||||||||||||||
Net amount recognized | $ | -973 | $ | -1,096 | ||||||||||||||
(1) Elimination of retiree medical and life insurance coverage for certain retirees and union employees. Amount will be recognized as part of net postretirement benefit cost over the expected future lifetime of the remaining participants in the plan. | ||||||||||||||||||
(2) Excludes non-U.S. plans of $49 million and $53 million in 2014 and 2013, respectively. | ||||||||||||||||||
Amounts recognized in Accumulated Other Comprehensive (Income) Loss associated with our significant pension and other postretirement benefit plans at December 31, 2014 and 2013 are as follows | ||||||||||||||||||
Pension Benefits | ||||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Transition obligation | $ | - | $ | - | $ | 1 | $ | 3 | ||||||||||
Prior service cost (credit) | 88 | 111 | -27 | -14 | ||||||||||||||
Net actuarial (gain) loss | 281 | -1,378 | 493 | 434 | ||||||||||||||
Net amount recognized | $ | 369 | $ | -1,267 | $ | 467 | $ | 423 | ||||||||||
Other Postretirement Benefits | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
Prior service (credit) | $ | -235 | $ | -168 | ||||||||||||||
Net actuarial loss | 278 | 256 | ||||||||||||||||
Net amount recognized | $ | 43 | $ | 88 | ||||||||||||||
The components of net periodic benefit (income) cost and other amounts recognized in other comprehensive (income) loss for our significant pension and other postretirement benefit plans include the following components: | ||||||||||||||||||
Pension Benefits | ||||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||
Net Periodic Benefit Cost | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||
Service cost | $ | 241 | $ | 272 | $ | 256 | $ | 56 | $ | 58 | $ | 48 | ||||||
Interest cost | 771 | 677 | 738 | 231 | 215 | 221 | ||||||||||||
Expected return on plan assets | -1,257 | -1,076 | -1,020 | -354 | -308 | -291 | ||||||||||||
Amortization of transition | ||||||||||||||||||
obligation | - | - | - | 2 | 2 | 2 | ||||||||||||
Amortization of prior service | ||||||||||||||||||
cost (credit) | 23 | 23 | 28 | -2 | -2 | -2 | ||||||||||||
Recognition of actuarial losses | 26 | - | 707 | 223 | 51 | 250 | ||||||||||||
Settlements and curtailments | - | - | - | - | - | 2 | ||||||||||||
Net periodic benefit (income) cost | $ | -196 | $ | -104 | $ | 709 | $ | 156 | $ | 16 | $ | 230 | ||||||
Other Changes in Plan Assets and | ||||||||||||||||||
Benefits Obligations Recognized in | U.S. Plans | Non-U.S. Plans | ||||||||||||||||
Other Comprehensive (Income) Loss | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||
Actuarial (gains) losses | $ | 1,686 | $ | -3,090 | $ | 859 | $ | 333 | $ | -48 | $ | 327 | ||||||
Prior service cost (credit) | - | 14 | - | -17 | - | - | ||||||||||||
Transition obligation | ||||||||||||||||||
recognized during year | - | - | - | -2 | -2 | -2 | ||||||||||||
Prior service (cost) credit | ||||||||||||||||||
recognized during year | -23 | -23 | -28 | 2 | 2 | 2 | ||||||||||||
Actuarial losses recognized | ||||||||||||||||||
during year | -26 | - | -707 | -223 | -51 | -250 | ||||||||||||
Foreign exchange translation | ||||||||||||||||||
adjustments | - | - | - | -50 | 3 | 23 | ||||||||||||
Total recognized in other | ||||||||||||||||||
comprehensive (income) loss | $ | 1,637 | $ | -3,099 | $ | 124 | $ | 43 | $ | -96 | $ | 100 | ||||||
Total recognized in net periodic | ||||||||||||||||||
benefit (income) cost and other comprehensive | ||||||||||||||||||
(income) loss | $ | 1,441 | $ | -3,203 | $ | 833 | $ | 199 | $ | -80 | $ | 330 | ||||||
The estimated prior service cost (credit) for pension benefits that will be amortized from accumulated other comprehensive (income) loss into net periodic benefit (income) cost in 2015 are expected to be $23 million and ($3) million for U.S. and non-U.S. pension plans, respectively. | ||||||||||||||||||
Other Postretirement Benefits | ||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||
Net Periodic Benefit Cost | 2014 | 2013 | 2012 | |||||||||||||||
Service cost | $ | - | $ | - | $ | 1 | ||||||||||||
Interest cost | 42 | 44 | 53 | |||||||||||||||
Amortization of prior service (credit) | -20 | -13 | -14 | |||||||||||||||
Recognition of actuarial losses | 24 | 27 | 34 | |||||||||||||||
Settlements and curtailments(1) | - | -42 | -6 | |||||||||||||||
Net periodic benefit cost | $ | 46 | $ | 16 | $ | 68 | ||||||||||||
(1) Curtailment gain in 2013 related to elimination of retiree medical coverage for a union group | ||||||||||||||||||
in connection with a new collective bargaining agreement. | ||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||
Other Changes in Plan Assets and Benefits Obligations | 2014 | 2013 | 2012 | |||||||||||||||
Recognized in Other Comprehensive (Income) Loss | ||||||||||||||||||
Actuarial (gains) losses | $ | 46 | $ | -108 | $ | 34 | ||||||||||||
Prior service (credit) | -87 | -175 | -1 | |||||||||||||||
Prior service credit recognized during year | 20 | 13 | 14 | |||||||||||||||
Actuarial losses recognized during year | -24 | -27 | -34 | |||||||||||||||
Settlements and curtailments | - | 42 | 6 | |||||||||||||||
Total recognized in other comprehensive (income) loss | $ | -45 | $ | -255 | $ | 19 | ||||||||||||
Total recognized in net periodic benefit cost and | ||||||||||||||||||
other comprehensive (income) loss | $ | 1 | $ | -239 | $ | 87 | ||||||||||||
The estimated net loss and prior service (credit) for other postretirement benefits that will be amortized from accumulated other comprehensive (income) loss into net periodic benefit cost in 2015 are both expected to be $30 million. | ||||||||||||||||||
Major actuarial assumptions used in determining the benefit obligations and net periodic benefit (income) cost for our significant benefit plans are presented in the following table as weighted averages. | ||||||||||||||||||
Pension Benefits | ||||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||
Actuarial assumptions used to determine | ||||||||||||||||||
benefit obligations as of December 31: | ||||||||||||||||||
Discount rate | 4.08 | % | 4.89 | % | 4.06 | % | 3.26 | % | 4.29 | % | 4.29 | % | ||||||
Expected annual rate of | ||||||||||||||||||
compensation increase | 4.5 | % | 4.5 | % | 4.5 | % | 2.53 | % | 2.81 | % | 3.55 | % | ||||||
Actuarial assumptions used to determine | ||||||||||||||||||
net periodic benefit (income) cost for | ||||||||||||||||||
years ended December 31: | ||||||||||||||||||
Discount rate | 4.89 | % | 4.06 | % | 4.89 | % | 4.29 | % | 4.29 | % | 4.84 | % | ||||||
Expected rate of return | ||||||||||||||||||
on plan assets | 7.75 | % | 7.75 | % | 8 | % | 6.96 | % | 6.99 | % | 7.03 | % | ||||||
Expected annual rate of | ||||||||||||||||||
compensation increase | 4.5 | % | 4.5 | % | 4.5 | % | 2.81 | % | 3.55 | % | 3.67 | % | ||||||
Other Postretirement Benefits | ||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
Actuarial assumptions used to determine benefit | ||||||||||||||||||
obligations as of December 31: | ||||||||||||||||||
Discount rate | 3.45 | % | 4.05 | % | 3.4 | % | ||||||||||||
Actuarial assumptions used to determine net periodic | ||||||||||||||||||
benefit cost for years ended December 31: | ||||||||||||||||||
Discount rate | 4.05 | % | 3.4 | % | 4 | % | ||||||||||||
The discount rate for our U.S. pension and other postretirement benefits plans reflects the current rate at which the associated liabilities could be settled at the measurement date of December 31. To determine discount rates for our U.S. pension and other postretirement benefit plans, we use a modeling process that involves matching the expected cash outflows of our benefit plans to a yield curve constructed from a portfolio of high quality, fixed-income debt instruments. We use the average yield of this hypothetical portfolio as a discount rate benchmark. The discount rate used to determine the other postretirement benefit obligation is lower principally due to a shorter expected duration of other postretirement plan obligations as compared to pension plan obligations. | ||||||||||||||||||
Our expected rate of return on U.S. plan assets of 7.75% is a long-term rate based on historical plan asset returns over varying long-term periods combined with current market conditions and broad asset mix considerations. We review the expected rate of return on an annual basis and revise it as appropriate. | ||||||||||||||||||
For non-U.S. benefit plans actuarial assumptions reflect economic and market factors relevant to each country. | ||||||||||||||||||
Pension Benefits | ||||||||||||||||||
Included in the aggregate data in the tables above are the amounts applicable to our pension plans with accumulated benefit obligations exceeding the fair value of plan assets. Amounts related to such plans were as follows: | ||||||||||||||||||
December 31, | ||||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Projected benefit obligation | $626 | $576 | $1,686 | $911 | ||||||||||||||
Accumulated benefit obligation | $618 | $569 | $1,584 | $855 | ||||||||||||||
Fair value of plan assets | $194 | $174 | $994 | $307 | ||||||||||||||
Accumulated benefit obligation for our U.S. defined benefit pension plans were $17.2 billion and $15.7 billion and for our Non-U.S. defined benefit plans were $5.5 billion and $5.3 billion at December 31, 2014 and 2013, respectively. | ||||||||||||||||||
Our asset investment strategy for our U.S. pension plans focuses on maintaining a diversified portfolio using various asset classes in order to achieve our long-term investment objectives on a risk adjusted basis. Our actual invested positions in various securities change over time based on short and longer-term investment opportunities. To achieve our objectives, we have established long-term target allocations as follows: 60%-70% equity securities, 10%-20% fixed income securities and cash, 5%-15% real estate investments, and 10%-20% other types of investments. Equity securities include publicly-traded stock of companies located both inside and outside the United States. Fixed income securities include corporate bonds of companies from diversified industries, mortgage-backed securities, and U.S. Treasuries. Real estate investments include direct investments in commercial properties and investments in real estate funds. Other types of investments include investments in private equity and hedge funds that follow several different strategies. We review our assets on a regular basis to ensure that we are within the targeted asset allocation ranges and, if necessary, asset balances are adjusted back within target allocations. | ||||||||||||||||||
Our non-U.S. pension assets are typically managed by decentralized fiduciary committees with the Honeywell Corporate Investments group providing standard funding and investment guidance. Local regulations, local funding rules, and local financial and tax considerations are part of the funding and investment allocation process in each country. While our non-U.S. investment policies are different for each country, the long-term investment objectives are generally the same as those for the U.S. pension assets. | ||||||||||||||||||
The fair values of both our U.S. and non-U.S. pension plans assets by asset category are as follows: | ||||||||||||||||||
U.S. Plans | ||||||||||||||||||
31-Dec-14 | ||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||||
Common stock/preferred stock: | ||||||||||||||||||
Honeywell common stock | $ | 1,851 | $ | 1,851 | $ | - | $ | - | ||||||||||
U.S. large cap stocks | 3,913 | 3,867 | 46 | - | ||||||||||||||
U.S. mid cap stocks | 1,028 | 1,018 | 10 | - | ||||||||||||||
U.S. small cap stocks | 219 | 219 | - | - | ||||||||||||||
International stocks | 2,576 | 2,400 | 176 | - | ||||||||||||||
Real estate investment trusts | 204 | 204 | - | - | ||||||||||||||
Fixed income investments: | ||||||||||||||||||
Short term investments | 1,078 | 1,078 | - | - | ||||||||||||||
Government securities | 438 | - | 438 | - | ||||||||||||||
Corporate bonds | 2,988 | - | 2,988 | - | ||||||||||||||
Mortgage/Asset-backed securities | 635 | - | 635 | - | ||||||||||||||
Insurance contracts | 7 | - | 7 | - | ||||||||||||||
Investments in private funds: | ||||||||||||||||||
Private funds | 999 | - | - | 999 | ||||||||||||||
Hedge funds | 3 | - | - | 3 | ||||||||||||||
Real estate funds | 226 | - | - | 226 | ||||||||||||||
Direct investments: | ||||||||||||||||||
Direct private investments | 301 | - | - | 301 | ||||||||||||||
Real estate properties | 600 | - | - | 600 | ||||||||||||||
$ | 17,066 | $ | 10,637 | $ | 4,300 | $ | 2,129 | |||||||||||
U.S. Plans | ||||||||||||||||||
31-Dec-13 | ||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||||
Common stock/preferred stock: | ||||||||||||||||||
Honeywell common stock | $ | 1,697 | $ | 1,697 | $ | - | $ | - | ||||||||||
U.S. large cap stocks | 4,147 | 4,107 | 40 | - | ||||||||||||||
U.S. mid cap stocks | 757 | 752 | 5 | - | ||||||||||||||
U.S. small cap stocks | 215 | 210 | 5 | - | ||||||||||||||
International stocks | 2,685 | 2,503 | 182 | - | ||||||||||||||
Real estate investment trusts | 90 | 90 | - | - | ||||||||||||||
Fixed income investments: | ||||||||||||||||||
Short term investments | 956 | 955 | 1 | - | ||||||||||||||
Government securities | 266 | - | 266 | - | ||||||||||||||
Corporate bonds | 2,931 | - | 2,931 | - | ||||||||||||||
Mortgage/Asset-backed securities | 770 | - | 770 | - | ||||||||||||||
Insurance contracts | 7 | - | 7 | - | ||||||||||||||
Investments in private funds: | ||||||||||||||||||
Private funds | 1,058 | - | - | 1,058 | ||||||||||||||
Hedge funds | 6 | - | - | 6 | ||||||||||||||
Real estate funds | 237 | - | - | 237 | ||||||||||||||
Direct investments: | ||||||||||||||||||
Direct private investments | 278 | - | - | 278 | ||||||||||||||
Real estate properties | 627 | - | - | 627 | ||||||||||||||
$ | 16,727 | $ | 10,314 | $ | 4,207 | $ | 2,206 | |||||||||||
Non-U.S. Plans | ||||||||||||||||||
31-Dec-14 | ||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||||
Common stock/preferred stock: | ||||||||||||||||||
U.S. companies | $ | 534 | $ | 464 | $ | 70 | $ | - | ||||||||||
Non-U.S. companies | 1,876 | 225 | 1,651 | - | ||||||||||||||
Fixed income investments: | ||||||||||||||||||
Short-term investments | 117 | 113 | 4 | - | ||||||||||||||
Government securities | 1,495 | - | 1,495 | - | ||||||||||||||
Corporate bonds | 857 | - | 857 | - | ||||||||||||||
Mortgage/Asset-backed securities | 19 | - | 19 | - | ||||||||||||||
Insurance contracts | 186 | - | 186 | - | ||||||||||||||
Investments in private funds: | ||||||||||||||||||
Private funds | 62 | - | - | 62 | ||||||||||||||
Hedge funds | 2 | - | - | 2 | ||||||||||||||
Real estate funds | 185 | - | - | 185 | ||||||||||||||
$ | 5,333 | $ | 802 | $ | 4,282 | $ | 249 | |||||||||||
Non-U.S. Plans | ||||||||||||||||||
31-Dec-13 | ||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||||
Common stock/preferred stock: | ||||||||||||||||||
U.S. companies | $ | 459 | $ | 394 | $ | 65 | $ | - | ||||||||||
Non-U.S. companies | 1,929 | 244 | 1,685 | - | ||||||||||||||
Fixed income investments: | ||||||||||||||||||
Short-term investments | 147 | 140 | 7 | - | ||||||||||||||
Government securities | 1,303 | - | 1,303 | - | ||||||||||||||
Corporate bonds | 656 | - | 656 | - | ||||||||||||||
Mortgage/Asset-backed securities | 25 | - | 25 | - | ||||||||||||||
Insurance contracts | 208 | - | 208 | - | ||||||||||||||
Investments in private funds: | ||||||||||||||||||
Private funds | 67 | - | - | 67 | ||||||||||||||
Hedge funds | 62 | - | - | 62 | ||||||||||||||
Real estate funds | 181 | - | - | 181 | ||||||||||||||
$ | 5,037 | $ | 778 | $ | 3,949 | $ | 310 | |||||||||||
The following tables summarize changes in the fair value of Level 3 assets: | ||||||||||||||||||
U.S. Plans | ||||||||||||||||||
Direct | ||||||||||||||||||
Private | Private | Hedge | Real Estate | Real Estate | ||||||||||||||
Funds | Investments | Funds | Funds | Properties | ||||||||||||||
Balance at December 31, 2012 | $ | 1,100 | $ | 227 | $ | 52 | $ | 254 | $ | 595 | ||||||||
Actual return on plan assets: | ||||||||||||||||||
Relating to assets still held | ||||||||||||||||||
at year-end | -10 | 34 | -22 | 11 | 61 | |||||||||||||
Relating to assets sold | ||||||||||||||||||
during the year | 117 | 1 | 22 | 1 | 4 | |||||||||||||
Purchases | 94 | 37 | 9 | 15 | 15 | |||||||||||||
Sales and settlements | -243 | -21 | -55 | -44 | -48 | |||||||||||||
Balance at December 31, 2013 | 1,058 | 278 | 6 | 237 | 627 | |||||||||||||
Actual return on plan assets: | ||||||||||||||||||
Relating to assets still held | ||||||||||||||||||
at year-end | -50 | -10 | -2 | 21 | 10 | |||||||||||||
Relating to assets sold | ||||||||||||||||||
during the year | 94 | 59 | 2 | - | 53 | |||||||||||||
Purchases | 168 | 92 | 3 | 8 | 38 | |||||||||||||
Sales and settlements | -271 | -118 | -6 | -40 | -128 | |||||||||||||
Balance at December 31, 2014 | $ | 999 | $ | 301 | $ | 3 | $ | 226 | $ | 600 | ||||||||
Non-U.S. Plans | ||||||||||||||||||
Private | Hedge | Real Estate | ||||||||||||||||
Funds | Funds | Funds | ||||||||||||||||
Balance at December 31, 2012 | $ | 136 | $ | 56 | $ | 157 | ||||||||||||
Actual return on plan assets: | ||||||||||||||||||
Relating to assets still held at year-end | -6 | 4 | 18 | |||||||||||||||
Relating to assets sold during the year | 3 | - | -1 | |||||||||||||||
Purchases | 4 | 2 | 12 | |||||||||||||||
Sales and settlements | -70 | - | -5 | |||||||||||||||
Balance at December 31, 2013 | 67 | 62 | 181 | |||||||||||||||
Actual return on plan assets: | ||||||||||||||||||
Relating to assets still held at year-end | -4 | -11 | 17 | |||||||||||||||
Relating to assets sold during the year | 6 | 12 | 1 | |||||||||||||||
Purchases | - | - | 4 | |||||||||||||||
Sales and settlements | -7 | -61 | -18 | |||||||||||||||
Balance at December 31, 2014 | $ | 62 | $ | 2 | $ | 185 | ||||||||||||
The Company enters into futures contracts to gain exposure to certain markets. Sufficient cash or cash equivalents are held by our pension plans to cover the notional value of the futures contracts. At December 31, 2014 and 2013, our U.S. plans had contracts with notional amounts of $2,354 million and $1,938 million, respectively. At December 31, 2014 and 2013, our non-U.S. plans had contracts with notional amounts of $65 million and $61 million, respectively. In both our U.S. and non-U.S. pension plans, the notional derivative exposure is primarily related to outstanding equity futures contracts. | ||||||||||||||||||
Common stocks, preferred stocks, real estate investment trusts, and short-term investments are valued at the closing price reported in the active market in which the individual securities are traded. Corporate bonds, mortgages, asset-backed securities, and government securities are valued either by using pricing models, bids provided by brokers or dealers, quoted prices of securities with similar characteristics or discounted cash flows and as such include adjustments for certain risks that may not be observable such as credit and liquidity risks. Certain securities are held in commingled funds which are valued using net asset values provided by the administrators of the funds. Investments in private equity, debt, real estate and hedge funds and direct private investments are valued at estimated fair value based on quarterly financial information received from the investment advisor and/or general partner. Investments in real estate properties are valued on a quarterly basis using the income approach. Valuation estimates are periodically supplemented by third party appraisals. | ||||||||||||||||||
Our general funding policy for qualified defined benefit pension plans is to contribute amounts at least sufficient to satisfy regulatory funding standards. In 2014, 2013 and 2012, we were not required to make contributions to our U.S. pension plans and no contributions were made in 2014 and 2013. In 2012 we made voluntary contributions of $792 million to our U.S. pension plans primarily to improve the funded status. We are not required to make any contributions to our U.S. pension plans in 2015. In 2014, contributions of $160 million were made to our non-U.S. pension plans to satisfy regulatory funding requirements. In 2015, we expect to make contributions of cash and/or marketable securities of approximately $140 million to our non-U.S. pension plans to satisfy regulatory funding standards. Contributions for both our U.S. and non-U.S. pension plans do not reflect benefits paid directly from Company assets. | ||||||||||||||||||
Benefit payments, including amounts to be paid from Company assets, and reflecting expected future service, as appropriate, are expected to be paid as follows: | ||||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||
2015 | $ | 1,133 | $ | 196 | ||||||||||||||
2016 | 1,104 | 200 | ||||||||||||||||
2017 | 1,103 | 205 | ||||||||||||||||
2018 | 1,117 | 211 | ||||||||||||||||
2019 | 1,132 | 217 | ||||||||||||||||
2020-2024 | 5,799 | 1,187 | ||||||||||||||||
Other Postretirement Benefits | ||||||||||||||||||
December 31, | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
Assumed health care cost trend rate: | ||||||||||||||||||
Health care cost trend rate assumed for next year | 7 | % | 7 | % | ||||||||||||||
Rate that the cost trend rate gradually declines to | 5 | % | 5 | % | ||||||||||||||
Year that the rate reaches the rate it is assumed to remain at | 2023 | 2019 | ||||||||||||||||
The assumed health care cost trend rate has a significant effect on the amounts reported. A one-percentage-point change in the assumed health care cost trend rate would have the following effects: | ||||||||||||||||||
1 percentage point | ||||||||||||||||||
Increase | Decrease | |||||||||||||||||
Effect on total of service and interest cost components | $ | 2 | $ | -2 | ||||||||||||||
Effect on postretirement benefit obligation | $ | 73 | $ | -49 | ||||||||||||||
Benefit payments reflecting expected future service, as appropriate, are expected to be paid | ||||||||||||||||||
as follows: | ||||||||||||||||||
Without Impact of | Net of | |||||||||||||||||
Medicare Subsidy | Medicare Subsidy | |||||||||||||||||
2015 | $ | 119 | $ | 111 | ||||||||||||||
2016 | 106 | 99 | ||||||||||||||||
2017 | 102 | 94 | ||||||||||||||||
2018 | 97 | 90 | ||||||||||||||||
2019 | 92 | 85 | ||||||||||||||||
2020-2024 | 363 | 329 |
SEGMENT_FINANCIAL_DATA
SEGMENT FINANCIAL DATA | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Segment Financial Data [Abstract] | |||||||||||||
Segment Financial Data | Note 21. Segment Financial Data | ||||||||||||
We globally manage our business operations through three reportable operating segments. Segment information is consistent with how management reviews the businesses, makes investing and resource allocation decisions and assesses operating performance. | |||||||||||||
Honeywell's 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. | |||||||||||||
In April 2014, the Company announced the realignment of our Honeywell Process Solutions business from Automation and Control Solutions into Performance Materials and Technologies. The Company has reported its financial performance based on the inclusion of Honeywell Process Solutions in Performance Materials and Technologies for all periods presented. | |||||||||||||
In July 2014, following the closing of the sale of its Friction Materials business, the Company announced the realignment of its Transportation Systems business segment with its Aerospace business segment. Under the realigned segment reporting structure, the Company has three business segments: Aerospace, Automation and Control Solutions and Performance Materials and Technologies. The Company has reported its financial performance based on the inclusion of Transportation Systems in Aerospace for all periods presented. | |||||||||||||
These realignments have no impact on the Company's historical consolidated financial position, results of operations, or cash flows. | |||||||||||||
Years Ended December 31, | |||||||||||||
Net Sales | 2014 | 2013 | 2012 | ||||||||||
Aerospace | |||||||||||||
Product | $ | 10,773 | $ | 10,798 | $ | 10,560 | |||||||
Service | 4,825 | 4,937 | 5,041 | ||||||||||
Total | 15,598 | 15,735 | 15,601 | ||||||||||
Automation and Control Solutions | |||||||||||||
Product | 13,219 | 12,253 | 11,581 | ||||||||||
Service | 1,268 | 1,212 | 1,206 | ||||||||||
Total | 14,487 | 13,465 | 12,787 | ||||||||||
Performance Materials and Technologies | |||||||||||||
Product | 8,406 | 8,163 | 7,671 | ||||||||||
Service | 1,815 | 1,692 | 1,606 | ||||||||||
Total | 10,221 | 9,855 | 9,277 | ||||||||||
$ | 40,306 | $ | 39,055 | $ | 37,665 | ||||||||
Depreciation and amortization | |||||||||||||
Aerospace | $ | 277 | $ | 290 | $ | 296 | |||||||
Automation and Control Solutions | 306 | 302 | 302 | ||||||||||
Performance Materials and Technologies | 284 | 336 | 265 | ||||||||||
Corporate | 57 | 61 | 63 | ||||||||||
$ | 924 | $ | 989 | $ | 926 | ||||||||
Segment Profit | |||||||||||||
Aerospace | $ | 2,915 | $ | 2,870 | $ | 2,711 | |||||||
Automation and Control Solutions | 2,200 | 1,983 | 1,836 | ||||||||||
Performance Materials and Technologies | 1,817 | 1,725 | 1,550 | ||||||||||
Corporate | -236 | -227 | -218 | ||||||||||
$ | 6,696 | $ | 6,351 | $ | 5,879 | ||||||||
Capital expenditures | |||||||||||||
Aerospace | $ | 315 | $ | 310 | $ | 320 | |||||||
Automation and Control Solutions | 145 | 132 | 114 | ||||||||||
Performance Materials and Technologies | 537 | 448 | 357 | ||||||||||
Corporate | 97 | 57 | 93 | ||||||||||
$ | 1,094 | $ | 947 | $ | 884 | ||||||||
December 31, | |||||||||||||
Total Assets | 2014 | 2013 | 2012 | ||||||||||
Aerospace | $ | 11,151 | $ | 11,379 | $ | 11,024 | |||||||
Automation and Control Solutions | 17,191 | 17,675 | 15,996 | ||||||||||
Performance Materials and Technologies | 9,699 | 9,534 | 9,154 | ||||||||||
Corporate | 7,410 | 6,847 | 5,679 | ||||||||||
$ | 45,451 | $ | 45,435 | $ | 41,853 | ||||||||
A reconciliation of segment profit to consolidated income from continuing operations before taxes are as follows: | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Segment Profit | $ | 6,696 | $ | 6,351 | $ | 5,879 | |||||||
Other income (expense)(1) | 269 | 202 | 25 | ||||||||||
Interest and other financial charges | -318 | -327 | -351 | ||||||||||
Stock compensation expense(2) | -187 | -170 | -170 | ||||||||||
Pension ongoing income (expense)(2) | 254 | 90 | -36 | ||||||||||
Pension mark-to-market expense(2) | -249 | -51 | -957 | ||||||||||
Other postretirement income (expense)(2) | -49 | -20 | -72 | ||||||||||
Repositioning and other charges (2) | -598 | -663 | -443 | ||||||||||
Income from continuing operations before taxes | $ | 5,818 | $ | 5,412 | $ | 3,875 | |||||||
(1) Equity income (loss) of affiliated companies is included in Segment Profit. | |||||||||||||
(2) Amounts included in cost of products and services sold and selling, general and administrative | |||||||||||||
expenses. | |||||||||||||
GEOGRAPHIC_AREAS_FINANCIAL_DAT
GEOGRAPHIC AREAS FINANCIAL DATA | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Geographic Areas Financial Data [Abstract] | ||||||||||||||||||
Geographic Areas - Financial Data | Note 22. Geographic Areas - Financial Data | |||||||||||||||||
Net Sales(1) | Long-lived Assets(2) | |||||||||||||||||
Years Ended December 31, | December 31, | |||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||
United States | $ | 23,911 | $ | 22,978 | $ | 22,379 | $ | 3,612 | $ | 3,393 | $ | 3,118 | ||||||
Europe | 9,870 | 9,804 | 9,118 | 741 | 905 | 932 | ||||||||||||
Other International | 6,525 | 6,273 | 6,168 | 1,030 | 980 | 951 | ||||||||||||
$ | 40,306 | $ | 39,055 | $ | 37,665 | $ | 5,383 | $ | 5,278 | $ | 5,001 | |||||||
(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 $5,647 million, $5,431 million and $5,126 million in 2014, 2013 and 2012, respectively. | ||||||||||||||||||
(2) Long-lived assets are comprised of property, plant and equipment - net. |
SUPPLEMENTAL_CASH_FLOW_INFORMA
SUPPLEMENTAL CASH FLOW INFORMATION | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Supplemental Cash Flow Information [Abstract] | ||||||||||
Supplemental Cash Flow Information | Note 23. Supplemental Cash Flow Information | |||||||||
Years Ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
Payments for repositioning and other charges: | ||||||||||
Severance and exit cost payments | $ | -161 | $ | -160 | $ | -136 | ||||
Environmental payments | -321 | -304 | -320 | |||||||
Insurance receipts for asbestos related liabilities | 211 | 58 | 122 | |||||||
Asbestos related liability payments | -259 | -357 | -169 | |||||||
$ | -530 | $ | -763 | $ | -503 | |||||
Interest paid, net of amounts capitalized | $ | 312 | $ | 330 | $ | 344 | ||||
Income taxes paid, net of refunds | 1,142 | 1,271 | 919 | |||||||
Non-cash investing and financing activities: | ||||||||||
Common stock contributed to savings plans | 168 | 159 | 144 | |||||||
Marketable securities contributed to non-U.S. pension plans | 117 | - | - | |||||||
UNAUDITED_QUARTERLY_FINANCIAL_
UNAUDITED QUARTERLY FINANCIAL INFORMATION | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Unaudited Quarterly Financial Information [Abstract] | |||||||||||
Unaudited Quarterly Financial Information | Note 24. Unaudited Quarterly Financial Information | ||||||||||
2014 | |||||||||||
Mar. 31 | 30-Jun | Sept. 30 | Dec. 31 | Year | |||||||
Net Sales | $ | 9,679 | $ | 10,253 | $ | 10,108 | $ | 10,266 | $ | 40,306 | |
Gross Profit | 2,712 | 2,957 | 2,980 | 2,700 | 11,349 | ||||||
Net income attributable to Honeywell | 1,017 | 1,099 | 1,167 | 956 | 4,239 | ||||||
Earnings per share - basic | 1.3 | 1.4 | 1.49 | 1.22 | 5.4 | ||||||
Earnings per share - assuming dilution | 1.28 | 1.38 | 1.47 | 1.2 | 5.33 | ||||||
Dividends paid per share | 0.45 | 0.45 | 0.45 | 0.5175 | 1.87 | ||||||
Market Price per share | |||||||||||
High | 95.44 | 95.81 | 97.34 | 101.98 | 101.98 | ||||||
Low | 88.47 | 90.36 | 90.56 | 85.11 | 85.11 | ||||||
2013 | |||||||||||
Mar. 31 | 30-Jun | Sept. 30 | Dec. 31 | Year | |||||||
Net Sales | $ | 9,328 | $ | 9,693 | $ | 9,647 | $ | 10,387 | $ | 39,055 | |
Gross Profit | 2,545 | 2,666 | 2,705 | 2,775 | 10,691 | ||||||
Net income attributable to Honeywell | 966 | 1,021 | 990 | 947 | 3,924 | ||||||
Earnings per share - basic | 1.23 | 1.3 | 1.26 | 1.2 | 4.99 | ||||||
Earnings per share - assuming dilution | 1.21 | 1.28 | 1.24 | 1.19 | 4.92 | ||||||
Dividends paid per share | 0.41 | 0.41 | 0.41 | 0.451 | 1.68 | ||||||
Market Price per share | |||||||||||
High | 75.48 | 80.85 | 86.79 | 91.37 | 91.37 | ||||||
Low | 64.75 | 71.47 | 77.88 | 81.45 | 64.75 | ||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Significant Accounting Policies [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment—Property, 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 asset's useful life. |
Goodwill and Indefinite-Lived Intangible Assets | Goodwill and Indefinite-Lived Intangible Assets—Goodwill and indefinite-lived intangible assets are subject to impairment testing annually as of March 31, or whenever events or changes in circumstances indicate that the carrying amount may not be fully recoverable. This testing compares carrying values to fair values and, when appropriate, the carrying value of these assets is reduced to fair value. We completed our annual goodwill impairment test as of March 31, 2014 and determined that there was no impairment as of that date. |
Other Intangible Assets with Determinable Lives | Other Intangible Assets with Determinable Lives—Other intangible assets with determinable lives consist of customer lists, technology, patents and trademarks and other intangibles and are amortized over their estimated useful lives, ranging from 2 to 24 years. |
Sales Recognition | Sales Recognition—Product and service sales are recognized when persuasive evidence of an arrangement exists, product delivery has occurred or services have been rendered, pricing is fixed or determinable, and collection is reasonably assured. Service sales, principally representing repair, maintenance and engineering activities in our Aerospace and Automation and Control Solutions (ACS) segments, are recognized over the contractual period or as services are rendered. Sales under long-term contracts in the Aerospace, ACS and Performance Materials and Technologies (PMT) segments are recorded on a percentage-of-completion method measured on the cost-to-cost basis for engineering-type contracts and the units-of-delivery basis for production-type contracts. Provisions for anticipated losses on long-term contracts are recorded in full when such losses become evident. Revenues from contracts with multiple element arrangements are recognized as each element is earned based on the relative fair value of each element provided the delivered elements have value to customers on a standalone basis. Amounts allocated to each element are based on its objectively determined fair value, such as the sales price for the product or service when it is sold separately or competitor prices for similar products or services. |
Environmental Expenditures | Environmental—We accrue costs related to environmental matters when it is probable that we have incurred a liability related to a contaminated site and the amount can be reasonably estimated. For additional information, see Note 19 Commitments and Contingencies. |
Asbestos Related Contingencies and Insurance Recoveries | Asbestos Related Contingencies and Insurance Recoveries—We recognize a liability for any asbestos related contingency that is probable of occurrence and reasonably estimable. In connection with the recognition of liabilities for asbestos related matters, we record asbestos related insurance recoveries that are deemed probable. For additional information, see Note 19 Commitments and Contingencies. |
Aerospace Sales Incentives | Aerospace Sales Incentives—We provide sales incentives to commercial aircraft manufacturers and airlines in connection with their selection of our aircraft equipment, predominately wheel and braking system hardware, avionics, and auxiliary power units, for installation on commercial aircraft. These incentives consist of free or deeply discounted products, credits for future purchases of product and upfront cash payments. These costs are recognized in the period incurred as cost of products sold or as a reduction to sales, as appropriate. |
Research and Development | Research and Development—Research and development costs for company-sponsored research and development projects are expensed as incurred. Such costs are principally included in Cost of Products Sold and were $1,892 million, $1,804 million and $1,847 million in 2014, 2013 and 2012, respectively. |
Stock-Based Compensation Plans | Stock-Based Compensation Plans—The principal awards issued under our stock-based compensation plans, which are described in Note 18 Stock-Based Compensation Plans, are non-qualified stock options and restricted stock units (RSUs). The cost for such awards is measured at the grant date based on the fair value of the award. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods (generally the vesting period of the equity award) and is included in selling, general and administrative expense in our Consolidated Statement of Operations. Forfeitures are estimated at the time of grant to recognize expense for those awards that are expected to vest and are based on our historical forfeiture rates. |
Pension Benefits | Pension Benefits—We recognize net actuarial gains or losses in excess of 10% of the greater of the fair value of plan assets or the plans' projected benefit obligation (the corridor) annually in the fourth quarter each year (MTM Adjustment), and, if applicable, in any quarter in which an interim remeasurement is triggered. The remaining components of pension (income) expense, primarily service and interest costs and assumed return on plan assets, are recognized on a quarterly basis (Pension ongoing (income) expense). |
Foreign Currency Translation | Foreign Currency Translation—Assets and liabilities of subsidiaries operating outside the United States with a functional currency other than U.S. dollars are translated into U.S. dollars using year-end exchange rates. Sales, costs and expenses are translated at the average exchange rates in effect during the year. Foreign currency translation gains and losses are included as a component of Accumulated Other Comprehensive Income (Loss). For subsidiaries operating in highly inflationary environments, inventories and property, plant and equipment, including related expenses, are remeasured at the exchange rate in effect on the date the assets were acquired, while monetary assets and liabilities are remeasured at year-end exchange rates. Remeasurement adjustments for these subsidiaries are included in earnings. |
Derivative Financial Instruments | Derivative Financial Instruments—We minimize our risks from interest and foreign currency exchange rate fluctuations through our normal operating and financing activities and, when deemed appropriate through the use of derivative financial instruments. Derivative financial instruments are used to manage risk and are not used for trading or other speculative purposes and we do not use leveraged derivative financial instruments. Derivative financial instruments that qualify for hedge accounting must be designated and effective as a hedge of the identified risk exposure at the inception of the contract. Accordingly, changes in fair value of the derivative contract must be highly correlated with changes in fair value of the underlying hedged item at inception of the hedge and over the life of the hedge contract. |
All derivatives are recorded on the balance sheet as assets or liabilities and measured at fair value. For derivatives designated as hedges of the fair value of assets or liabilities, the changes in fair values of both the derivatives and the hedged items are recorded in current earnings. For derivatives designated as cash flow hedges, the effective portion of the changes in fair value of the derivatives are recorded in Accumulated Other Comprehensive Income (Loss) and subsequently recognized in earnings when the hedged items impact earnings. Cash flows of such derivative financial instruments are classified consistent with the underlying hedged item. | |
Income Taxes | Income Taxes—Significant judgment is required in evaluating tax positions. We establish additional reserves for income taxes when, despite the belief that tax positions are fully supportable, there remain certain positions that do not meet the minimum recognition threshold. The approach for evaluating certain and uncertain tax positions is defined by the authoritative guidance which determines when a tax position is more likely than not to be sustained upon examination by the applicable taxing authority. In the normal course of business, the Company and its subsidiaries are examined by various federal, state and foreign tax authorities. We regularly assess the potential outcomes of these examinations and any future examinations for the current or prior years in determining the adequacy of our provision for income taxes. We continually assess the likelihood and amount of potential adjustments and adjust the income tax provision, the current tax liability and deferred taxes in the period in which the facts that give rise to a change in estimate become known. |
Earnings Per Share | Earnings Per Share—Basic earnings per share is based on the weighted average number of common shares outstanding. Diluted earnings per share is based on the weighted average number of common shares outstanding and all dilutive potential common shares outstanding. |
Reclassifications | Reclassifications—Certain prior year amounts have been reclassified to conform to the current year presentation. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements—Changes to accounting principles generally accepted in the United States of America (U.S. GAAP) are established by the Financial Accounting Standards Board (FASB) in the form of accounting standards updates (ASU's) to the FASB's Accounting Standards Codification. |
The Company considers the applicability and impact of all ASU's. ASU's not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on our consolidated financial position or results of operations. | |
In May 2014, the FASB issued guidance on revenue from contracts with customers that will supersede most current revenue recognition guidance, including industry-specific guidance. The underlying principle is that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. The guidance provides a five-step analysis of transactions to determine when and how revenue is recognized. Other major provisions include capitalization of certain contract costs, consideration of time value of money in the transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. The guidance also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity's contracts with customers. The guidance is effective for the interim and annual periods beginning on or after December 15, 2016 (early adoption is not permitted). The guidance permits the use of either a retrospective or cumulative effect transition method. We have not yet selected a transition method and are currently evaluating the impact of the amended guidance on our consolidated financial position, results of operations and related disclosures. |
REPOSITIONING_AND_OTHER_CHARGE1
REPOSITIONING AND OTHER CHARGES (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Repositioning And Other Charges [Abstract] | ||||||||||||||
Repositioning and other charges text block | A summary of repositioning and other charges follows: | |||||||||||||
Years Ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Severance | $ | 156 | $ | 186 | $ | 91 | ||||||||
Asset impairments | 12 | 23 | 12 | |||||||||||
Exit costs | 16 | 22 | 16 | |||||||||||
Reserve adjustments | -38 | -30 | -66 | |||||||||||
Total net repositioning charge | 146 | 201 | 53 | |||||||||||
Asbestos related litigation charges, net of insurance | 182 | 181 | 156 | |||||||||||
Probable and reasonably estimable environmental liabilities | 268 | 272 | 234 | |||||||||||
Other | 2 | 9 | - | |||||||||||
Total net repositioning and other charges | $ | 598 | $ | 663 | $ | 443 | ||||||||
Pretax distribution of total net repositioning and other charges by income statement classification | The following table summarizes the pretax distribution of total net repositioning and other charges by income statement classification: | |||||||||||||
Years Ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Cost of products and services sold | $ | 525 | $ | 566 | $ | 428 | ||||||||
Selling, general and administrative expenses | 73 | 97 | 15 | |||||||||||
$ | 598 | $ | 663 | $ | 443 | |||||||||
Pretax Impact of Total Net Repositioning and Other Charges by Segment | The following table summarizes the pretax impact of total net repositioning and other charges by segment: | |||||||||||||
Years Ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Aerospace | $ | 193 | $ | 235 | $ | 192 | ||||||||
Automation and Control Solutions | 80 | 68 | 13 | |||||||||||
Performance Materials and Technologies | 33 | 56 | 17 | |||||||||||
Corporate | 292 | 304 | 221 | |||||||||||
$ | 598 | $ | 663 | $ | 443 | |||||||||
Total Repositioning Reserves | The following table summarizes the status of our total repositioning reserves: | |||||||||||||
Severance | Asset | Exit | ||||||||||||
Costs | Impairments | Costs | Total | |||||||||||
Balance at December 31, 2011 | $ | 353 | $ | - | $ | 59 | $ | 412 | ||||||
2012 charges | 91 | 12 | 16 | 119 | ||||||||||
2012 usage - cash | -113 | - | -23 | -136 | ||||||||||
2012 usage - noncash | - | -12 | - | -12 | ||||||||||
Adjustments | -61 | - | -5 | -66 | ||||||||||
Foreign currency translation | 6 | - | - | 6 | ||||||||||
Balance at December 31, 2012 | 276 | - | 47 | 323 | ||||||||||
2013 charges | 186 | 23 | 22 | 231 | ||||||||||
2013 usage - cash | -139 | - | -21 | -160 | ||||||||||
2013 usage - noncash | - | -23 | - | -23 | ||||||||||
Adjustments | -27 | - | -3 | -30 | ||||||||||
Foreign currency translation | 6 | - | - | 6 | ||||||||||
Balance at December 31, 2013 | 302 | - | 45 | 347 | ||||||||||
2014 charges | 156 | 12 | 16 | 184 | ||||||||||
2014 usage - cash | -135 | - | -26 | -161 | ||||||||||
2014 usage - noncash | - | -12 | - | -12 | ||||||||||
Adjustments | -33 | - | -5 | -38 | ||||||||||
Foreign currency translation | -5 | - | - | -5 | ||||||||||
Balance at December 31, 2014 | $ | 285 | $ | - | $ | 30 | $ | 315 | ||||||
OTHER_INCOME_EXPENSE_Tables
OTHER (INCOME) EXPENSE (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Other Income Expense [Abstract] | ||||||||||
Other (income) expense | Years Ended December 31, | |||||||||
2014 | 2013 | 2012 | ||||||||
Equity (income) loss of affiliated companies | $ | -36 | $ | -36 | $ | -45 | ||||
Gain on sale of available for sale investments | -221 | -195 | - | |||||||
Loss (gain) on sale of non-strategic businesses and assets | 11 | 20 | -5 | |||||||
Interest income | -102 | -69 | -58 | |||||||
Foreign exchange | 34 | 34 | 36 | |||||||
Other, net | 9 | 8 | 2 | |||||||
$ | -305 | $ | -238 | $ | -70 | |||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Income Taxes [Abstract] | |||||||||||
Income from continuing operations by region | Income from continuing operations before taxes | ||||||||||
Years Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
U.S. | $ | 3,340 | $ | 3,002 | $ | 1,761 | |||||
Non-U.S. | 2,478 | 2,410 | 2,114 | ||||||||
$ | 5,818 | $ | 5,412 | $ | 3,875 | ||||||
Tax Expense Continuing Operations Current and Deferred | Tax expense (benefit) | ||||||||||
Years Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Tax expense (benefit) consists of | |||||||||||
Current: | |||||||||||
U.S. Federal | $ | 746 | $ | 663 | $ | 470 | |||||
U.S. State | 39 | 97 | 10 | ||||||||
Non-U.S. | 572 | 428 | 380 | ||||||||
$ | 1,357 | $ | 1,188 | $ | 860 | ||||||
Deferred: | |||||||||||
U.S. Federal | $ | 114 | $ | 160 | $ | 85 | |||||
U.S. State | 63 | 72 | 19 | ||||||||
Non-U.S. | -45 | 30 | -20 | ||||||||
132 | 262 | 84 | |||||||||
$ | 1,489 | $ | 1,450 | $ | 944 | ||||||
Effective income tax rate reconciliation | |||||||||||
Years Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
The U.S. federal statutory income tax rate is reconciled to our effective income tax rate as follows: | |||||||||||
U.S. federal statutory income tax rate | 35 | % | 35 | % | 35 | % | |||||
Taxes on non-U.S. earnings below U.S. tax rate(1) | -7 | -7.2 | -7.1 | ||||||||
U.S. state income taxes(1) | 1.2 | 1.8 | 0.8 | ||||||||
Manufacturing incentives | -1 | -0.9 | -1.7 | ||||||||
ESOP dividend tax benefit | -0.4 | -0.5 | -0.6 | ||||||||
Tax credits | -1 | -1.8 | -0.4 | ||||||||
Reserves for tax contingencies | -0.2 | 0.6 | -0.4 | ||||||||
All other items—net | -1 | -0.2 | -1.2 | ||||||||
25.6 | % | 26.8 | % | 24.4 | % | ||||||
(1) Net of changes in valuation allowance | |||||||||||
Deferred Tax Assets, Liabilities | December 31, | ||||||||||
Deferred tax assets: | 2014 | 2013 | |||||||||
Pension | $ | 573 | $ | 32 | |||||||
Postretirement benefits other than pensions | 441 | 499 | |||||||||
Asbestos and environmental | 477 | 437 | |||||||||
Employee compensation and benefits | 387 | 382 | |||||||||
Other accruals and reserves | 672 | 702 | |||||||||
Net operating and capital losses | 639 | 838 | |||||||||
Tax credit carryforwards | 199 | 266 | |||||||||
Gross deferred tax assets | 3,388 | 3,156 | |||||||||
Valuation allowance | -560 | -614 | |||||||||
Total deferred tax assets | $ | 2,828 | $ | 2,542 | |||||||
Deferred tax liabilities: | |||||||||||
Property, plant and equipment | $ | -612 | $ | -654 | |||||||
Intangibles | -1,060 | -1,126 | |||||||||
Other asset basis differences | -286 | -350 | |||||||||
Other | -7 | -22 | |||||||||
Total deferred tax liabilities | -1,965 | -2,152 | |||||||||
Net deferred taxes | $ | 863 | $ | 390 | |||||||
Summary of Operating Loss Carryforwards | Net Operating | ||||||||||
Expiration | and Capital Loss | Tax Credit | |||||||||
Jurisdiction | Period | Carryforwards | Carryforwards | ||||||||
U.S. Federal | 2032 | $ | 1 | $ | 51 | ||||||
U.S. State | 2034 | 2,200 | 35 | ||||||||
Non-U.S. | 2034 | 2,463 | 148 | ||||||||
Total | $ | 4,664 | $ | 234 | |||||||
Change in unrecognized tax benefits | 2014 | 2013 | 2012 | ||||||||
Change in unrecognized tax benefits: | |||||||||||
Balance at beginning of year | $ | 729 | $ | 722 | $ | 815 | |||||
Gross increases related to current period tax positions | 65 | 41 | 25 | ||||||||
Gross increases related to prior periods tax positions | 204 | 118 | 44 | ||||||||
Gross decreases related to prior periods tax positions | -277 | -21 | -62 | ||||||||
Decrease related to resolutions of audits with tax authorities | -32 | -92 | -40 | ||||||||
Expiration of the statute of limitations for the assessment of taxes | -10 | -30 | -64 | ||||||||
Foreign currency translation | -20 | -9 | 4 | ||||||||
Balance at end of year | $ | 659 | $ | 729 | $ | 722 | |||||
Summary of Income Tax Examinations | Open Tax Years | ||||||||||
Based on Originally Filed Returns | |||||||||||
Jurisdiction | Examination in | Examination not yet | |||||||||
progress | initiated | ||||||||||
U.S. Federal | 2010 - 2013 | 2013 - 2014 | |||||||||
U.S. State | 2007 - 2013 | 2006 - 2014 | |||||||||
United Kingdom | N/A | 2012 - 2014 | |||||||||
Canada(1) | 2007 - 2013 | 2014 | |||||||||
Germany(1) | 2006 - 2012 | 2013 - 2014 | |||||||||
France | 2008 - 2013 | 2004 - 2007, 2014 | |||||||||
Netherlands | 2009 | 2010 - 2014 | |||||||||
Australia | N/A | 2009 - 2014 | |||||||||
China | 2003 - 2012 | 2013 - 2014 | |||||||||
India | 1999 - 2012 | 2013 - 2014 | |||||||||
Italy | 2008 - 2013 | 2014 | |||||||||
(1) Includes provincial or similar local jurisdictions, as applicable. |
EARNINGS_LOSS_PER_SHARE_Tables
EARNINGS (LOSS) PER SHARE (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Earnings Per Share (Tables) [Abstract] | |||||||||||
Earnings per share basic | Years Ended December 31, | ||||||||||
Basic | 2014 | 2013 | 2012 | ||||||||
Net income attributable to Honeywell | $ | 4,239 | $ | 3,924 | $ | 2,926 | |||||
Weighted average shares outstanding | 784.4 | 786.4 | 782.4 | ||||||||
Earnings per share of common stock | $ | 5.4 | $ | 4.99 | $ | 3.74 | |||||
Earnings per share diluted | Years Ended December 31, | ||||||||||
Assuming Dilution | 2014 | 2013 | 2012 | ||||||||
Net income attributable to Honeywell | $ | 4,239 | $ | 3,924 | $ | 2,926 | |||||
Average Shares | |||||||||||
Weighted average shares outstanding | 784.4 | 786.4 | 782.4 | ||||||||
Dilutive securities issuable - stock plans | 10.8 | 10.9 | 9.5 | ||||||||
Total weighted average diluted shares outstanding | 795.2 | 797.3 | 791.9 | ||||||||
Earnings per share of common stock - | |||||||||||
assuming dilution | $ | 5.33 | $ | 4.92 | $ | 3.69 |
ACCOUNTS_NOTES_AND_OTHER_RECEI1
ACCOUNTS, NOTES AND OTHER RECEIVABLES (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Accounts, Notes And Other Receivables [Abstract] | ||||||||
Schedule of trade, notes, and other receivables | December 31, | |||||||
2014 | 2013 | |||||||
Trade | $ | 7,788 | $ | 7,530 | ||||
Other | 445 | 646 | ||||||
8,233 | 8,176 | |||||||
Less - Allowance for doubtful accounts | -273 | -247 | ||||||
$ | 7,960 | $ | 7,929 |
INVENTORIES_Tables
INVENTORIES (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Inventories [Abstract] | ||||||||
Inventories | December 31, | |||||||
2014 | 2013 | |||||||
Raw materials | $ | 1,124 | $ | 1,121 | ||||
Work in process | 815 | 841 | ||||||
Finished products | 2,634 | 2,497 | ||||||
4,573 | 4,459 | |||||||
Reduction to LIFO cost basis | -168 | -166 | ||||||
$ | 4,405 | $ | 4,293 |
PROPERTY_PLANT_AND_EQUIPMENT_T
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property Plant And Equipment [Abstract] | ||||||||
Plant, property and equipment | December 31, | |||||||
2014 | 2013 | |||||||
Land and improvements | $ | 343 | $ | 376 | ||||
Machinery and equipment | 10,313 | 10,437 | ||||||
Buildings and improvements | 3,119 | 3,157 | ||||||
Construction in progress | 727 | 647 | ||||||
14,502 | 14,617 | |||||||
Less—Accumulated depreciation | -9,119 | -9,339 | ||||||
$ | 5,383 | $ | 5,278 |
GOODWILL_AND_OTHER_INTANGIBLES1
GOODWILL AND OTHER INTANGIBLES-NET (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Goodwill And Other Intangible Assets, Net (Tables) [Abstract] | ||||||||||||||
Carrying amount of goodwill | Currency | |||||||||||||
December 31, | Acquisitions/ | Translation | December 31, | |||||||||||
2013 | Divestitures | Adjustment | 2014 | |||||||||||
Aerospace | $ | 2,273 | $ | -4 | $ | -11 | $ | 2,258 | ||||||
Automation and Control | ||||||||||||||
Solutions | 8,006 | 12 | -194 | 7,824 | ||||||||||
Performance Materials | ||||||||||||||
and Technologies | 2,767 | - | -61 | 2,706 | ||||||||||
$ | 13,046 | $ | 8 | $ | -266 | $ | 12,788 | |||||||
Acquired Finite-Lived Intangible Assets [Table Text Block] | ||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||
Gross | Net | Gross | Net | |||||||||||
Carrying | Accumulated | Carrying | Carrying | Accumulated | Carrying | |||||||||
Amount | Amortization | Amount | Amount | Amortization | Amount | |||||||||
Determinable life intangibles: | ||||||||||||||
Patents and technology | $ | 1,400 | $ | -1,005 | $ | 395 | $ | 1,438 | $ | -935 | $ | 503 | ||
Customer relationships | 1,867 | -857 | 1,010 | 1,904 | -749 | 1,155 | ||||||||
Trademarks | 191 | -125 | 66 | 194 | -118 | 76 | ||||||||
Other | 291 | -260 | 31 | 294 | -234 | 60 | ||||||||
3,749 | -2,247 | 1,502 | 3,830 | -2,036 | 1,794 | |||||||||
Indefinite life intangibles: | ||||||||||||||
Trademarks | 706 | - | 706 | 720 | - | 720 | ||||||||
$ | 4,455 | $ | -2,247 | $ | 2,208 | $ | 4,550 | $ | -2,036 | $ | 2,514 | |||
Acquired Indefinite-Lived Intangible Assets [Table Text Block] | ||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||
Gross | Net | Gross | Net | |||||||||||
Carrying | Accumulated | Carrying | Carrying | Accumulated | Carrying | |||||||||
Amount | Amortization | Amount | Amount | Amortization | Amount | |||||||||
Determinable life intangibles: | ||||||||||||||
Patents and technology | $ | 1,400 | $ | -1,005 | $ | 395 | $ | 1,438 | $ | -935 | $ | 503 | ||
Customer relationships | 1,867 | -857 | 1,010 | 1,904 | -749 | 1,155 | ||||||||
Trademarks | 191 | -125 | 66 | 194 | -118 | 76 | ||||||||
Other | 291 | -260 | 31 | 294 | -234 | 60 | ||||||||
3,749 | -2,247 | 1,502 | 3,830 | -2,036 | 1,794 | |||||||||
Indefinite life intangibles: | ||||||||||||||
Trademarks | 706 | - | 706 | 720 | - | 720 | ||||||||
$ | 4,455 | $ | -2,247 | $ | 2,208 | $ | 4,550 | $ | -2,036 | $ | 2,514 |
ACCRUED_LIABILITIES_Tables
ACCRUED LIABILITIES (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Accrued Liabilities Current (Tables) [Abstract] | ||||||||
Accrued liabilities | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Customer advances and deferred income | $ | 2,094 | $ | 2,172 | ||||
Compensation, benefit and other employee related | 1,476 | 1,506 | ||||||
Asbestos related liabilities | 352 | 461 | ||||||
Repositioning | 284 | 303 | ||||||
Product warranties and performance guarantees | 332 | 323 | ||||||
Environmental costs | 278 | 304 | ||||||
Income taxes | 261 | 240 | ||||||
Accrued interest | 101 | 100 | ||||||
Other taxes (payroll, sales, VAT etc.) | 243 | 249 | ||||||
Insurance | 264 | 255 | ||||||
Other (primarily operating expenses) | 1,086 | 1,066 | ||||||
$ | 6,771 | $ | 6,979 |
LONGTERM_DEBT_AND_CREDIT_AGREE1
LONG-TERM DEBT AND CREDIT AGREEMENTS (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Long Term Debt And Credit Agreements Tables [Abstract] | |||||||||
Long-Term Debt and Credit Agreements | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
3.875% notes due 2014 | $ | - | $ | 600 | |||||
Floating rate notes due 2015 | 700 | 700 | |||||||
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 | 900 | |||||||
4.25% notes due 2021 | 800 | 800 | |||||||
3.35% notes due 2023 | 300 | 300 | |||||||
5.70% notes due 2036 | 550 | 550 | |||||||
5.70% notes due 2037 | 600 | 600 | |||||||
5.375% notes due 2041 | 600 | 600 | |||||||
Industrial development bond obligations, floating | |||||||||
rate maturing at various dates through 2037 | 30 | 35 | |||||||
6.625% debentures due 2028 | 216 | 216 | |||||||
9.065% debentures due 2033 | 51 | 51 | |||||||
Other (including capitalized leases), 0.6%-9.5% | |||||||||
maturing at various dates through 2023 | 538 | 381 | |||||||
6,985 | 7,433 | ||||||||
Less: current portion | -939 | -632 | |||||||
$ | 6,046 | $ | 6,801 | ||||||
Principal Payments on Long-Term Debt | The schedule of principal payments on long-term debt is as follows: | ||||||||
December 31, | |||||||||
2014 | |||||||||
2015 | $ | 939 | |||||||
2016 | 485 | ||||||||
2017 | 477 | ||||||||
2018 | 904 | ||||||||
2019 | 903 | ||||||||
Thereafter | 3,277 | ||||||||
6,985 | |||||||||
Less-current portion | -939 | ||||||||
$ | 6,046 |
LEASE_COMMITMENTS_Tables
LEASE COMMITMENTS (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Lease Commitments [Abstract] | |||||
Lease commitments | At December 31, | ||||
2014 | |||||
2015 | $ | 330 | |||
2016 | 268 | ||||
2017 | 202 | ||||
2018 | 133 | ||||
2019 | 91 | ||||
Thereafter | 257 | ||||
$ | 1,281 |
FINANCIAL_INSTRUMENTS_AND_FAIR1
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASURES (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Financial Instruments And Fair Value Measures [Abstract] | ||||||||||||
Schedule Of Fair Value Assets And Liabilities Measured On Recurring Basis Table Text Block | December 31, | |||||||||||
2014 | 2013 | |||||||||||
Assets: | ||||||||||||
Foreign currency exchange contracts | $ | 20 | $ | 20 | ||||||||
Available for sale investments | 1,479 | 826 | ||||||||||
Interest rate swap agreements | 93 | 63 | ||||||||||
Liabilities: | ||||||||||||
Foreign currency exchange contracts | $ | 10 | $ | 27 | ||||||||
Interest rate swap agreements | - | 8 | ||||||||||
Financial assets and liabilities that were not carried at fair value | 31-Dec-14 | 31-Dec-13 | ||||||||||
Carrying | Fair | Carrying | Fair | |||||||||
Value | Value | Value | Value | |||||||||
Assets | ||||||||||||
Long-term receivables | $ | 297 | $ | 293 | $ | 250 | $ | 245 | ||||
Liabilities | ||||||||||||
Long-term debt and related current maturities | $ | 6,985 | $ | 7,817 | $ | 7,433 | $ | 8,066 |
OTHER_LIABILITIES_Tables
OTHER LIABILITIES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Other Liabilities Current (Tables) [Abstract] | |||||||||
Other liabilities | December 31, | ||||||||
2014 | 2013 | ||||||||
Pension and other employee related | $ | 2,497 | $ | 1,756 | |||||
Income taxes | 764 | 952 | |||||||
Environmental | 313 | 339 | |||||||
Insurance | 253 | 241 | |||||||
Asset retirement obligations | 67 | 68 | |||||||
Deferred income | 93 | 44 | |||||||
Other | 295 | 334 | |||||||
$ | 4,282 | $ | 3,734 |
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accumulated Other Comprehensive Income (Loss) [Abstract] | |||||||||||||
Accumulated other comprehensive income (loss) | Pretax | Tax | After Tax | ||||||||||
Year Ended December 31, 2014 | |||||||||||||
Foreign exchange translation adjustment | $ | -1,044 | $ | - | $ | -1,044 | |||||||
Pensions and other postretirement benefit adjustments | -1,707 | 624 | -1,083 | ||||||||||
Changes in fair value of available for sale investments | -246 | 76 | -170 | ||||||||||
Changes in fair value of effective cash flow hedges | 24 | -4 | 20 | ||||||||||
$ | -2,973 | $ | 696 | $ | -2,277 | ||||||||
Year Ended December 31, 2013 | |||||||||||||
Foreign exchange translation adjustment | $ | -52 | $ | - | $ | -52 | |||||||
Pensions and other postretirement benefit adjustments | 3,514 | -1,311 | 2,203 | ||||||||||
Changes in fair value of available for sale investments | 30 | -17 | 13 | ||||||||||
Changes in fair value of effective cash flow hedges | -14 | 7 | -7 | ||||||||||
$ | 3,478 | $ | -1,321 | $ | 2,157 | ||||||||
Year Ended December 31, 2012 | |||||||||||||
Foreign exchange translation adjustment | $ | 282 | $ | - | $ | 282 | |||||||
Pensions and other postretirement benefit adjustments | -285 | 87 | -198 | ||||||||||
Changes in fair value of available for sale investments | 54 | -60 | -6 | ||||||||||
Changes in fair value of effective cash flow hedges | 35 | -8 | 27 | ||||||||||
$ | 86 | $ | 19 | $ | 105 | ||||||||
Components of Accumulated Other Comprehensive Income (Loss) | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Cumulative foreign exchange translation adjustment | $ | -740 | $ | 304 | |||||||||
Pensions and other postretirement benefit adjustments | -728 | 355 | |||||||||||
Fair value of available for sale investments | - | 170 | |||||||||||
Fair value of effective cash flow hedges | 9 | -11 | |||||||||||
$ | -1,459 | $ | 818 | ||||||||||
Changes in Accumulated Other Comprehensive Income by Component | |||||||||||||
Changes in | Changes in | ||||||||||||
Foreign | Pension | Fair Value of | Fair Value of | ||||||||||
Exchange | and Other | Available | Effective | ||||||||||
Translation | Postretirement | for Sale | Cash Flow | ||||||||||
Adjustment | Adjustments | Investments | Hedges | Total | |||||||||
Balance at December 31, 2013 | $ | 304 | $ | 355 | $ | 170 | $ | -11 | $ | 818 | |||
Other comprehensive income | |||||||||||||
(loss) before reclassifications | -1,044 | -1,284 | 15 | 20 | -2,293 | ||||||||
Amounts reclassified from | |||||||||||||
accumulated other | |||||||||||||
comprehensive income | - | 201 | -185 | - | 16 | ||||||||
Net current period other | |||||||||||||
comprehensive income (loss) | -1,044 | -1,083 | -170 | 20 | -2,277 | ||||||||
Balance at December 31, 2014 | $ | -740 | $ | -728 | $ | - | $ | 9 | $ | -1,459 | |||
Changes in | Changes in | ||||||||||||
Foreign | Pension | Fair Value of | Fair Value of | ||||||||||
Exchange | and Other | Available | Effective | ||||||||||
Translation | Postretirement | for Sale | Cash Flow | ||||||||||
Adjustment | Adjustments | Investments | Hedges | Total | |||||||||
Balance at December 31, 2012 | $ | 356 | $ | -1,848 | $ | 157 | $ | -4 | $ | -1,339 | |||
Other comprehensive income | |||||||||||||
(loss) before reclassifications | -52 | 2,161 | 140 | -30 | 2,219 | ||||||||
Amounts reclassified from | |||||||||||||
accumulated other | |||||||||||||
comprehensive income | - | 42 | -127 | 23 | -62 | ||||||||
Net current period other | |||||||||||||
comprehensive income (loss) | -52 | 2,203 | 13 | -7 | 2,157 | ||||||||
Balance at December 31, 2013 | $ | 304 | $ | 355 | $ | 170 | $ | -11 | $ | 818 | |||
Reclassification Out Of Accumulated Other Comprehensive Income [Table Text Block] | Reclassifications Out of Accumulated Other Comprehensive Income | ||||||||||||
Year Ended December 31, 2014 | |||||||||||||
Affected Line in the Consolidated Statement of Operations | |||||||||||||
Product Sales | Cost of Products Sold | Cost of Services Sold | Selling, General and Administrative Expenses | Other (Income) Expense | Total | ||||||||
Amortization of Pension and | |||||||||||||
Other Postretirement Items: | |||||||||||||
Actuarial losses recognized | $ | - | $ | 199 | $ | 38 | $ | 42 | $ | - | $ | 279 | |
Prior service (credit) | |||||||||||||
recognized | - | -1 | - | - | - | -1 | |||||||
Transition obligation | |||||||||||||
recognized | - | 2 | - | - | - | 2 | |||||||
Losses (gains) on cash flow | |||||||||||||
hedges | -5 | - | - | 5 | - | - | |||||||
Unrealized gains on available | |||||||||||||
for sale investments | - | - | - | - | -221 | -221 | |||||||
Total before tax | $ | -5 | $ | 200 | $ | 38 | $ | 47 | $ | -221 | $ | 59 | |
Tax expense (benefit) | -43 | ||||||||||||
Total reclassifications for the period, net of tax | $ | 16 | |||||||||||
Year Ended December 31, 2013 | |||||||||||||
Affected Line in the Consolidated Statement of Operations | |||||||||||||
Product Sales | Cost of Products Sold | Cost of Services Sold | Selling, General and Administrative Expenses | Other (Income) Expense | Total | ||||||||
Amortization of Pension and | |||||||||||||
Other Postretirement Items: | |||||||||||||
Actuarial losses recognized | $ | - | $ | 62 | $ | 14 | $ | 13 | $ | - | $ | 89 | |
Prior service cost | |||||||||||||
recognized | - | 7 | 1 | 1 | - | 9 | |||||||
Transition obligation | |||||||||||||
recognized | - | 2 | - | - | - | 2 | |||||||
Settlements and | |||||||||||||
curtailments | - | -30 | -6 | -6 | - | -42 | |||||||
Losses on cash flow hedges | 7 | 5 | - | 11 | - | 23 | |||||||
Unrealized gains on available | |||||||||||||
for sale investments | - | - | - | - | -195 | -195 | |||||||
Total before tax | $ | 7 | $ | 46 | $ | 9 | $ | 19 | $ | -195 | $ | -114 | |
Tax expense | 52 | ||||||||||||
Total reclassifications for the period, net of tax | $ | -62 |
STOCKBASED_COMPENSATION_PLANS_
STOCK-BASED COMPENSATION PLANS (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Stock Based Compensation Plans [Abstract] | |||||||||||||||||
Share based compensation fair value assumptions | Years Ended December 31, | ||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Weighted average fair value per share of options | |||||||||||||||||
granted during the year(1) | $ | 16.35 | $ | 11.85 | $ | 13.26 | |||||||||||
Assumptions: | |||||||||||||||||
Expected annual dividend yield | 2.05 | % | 2.55 | % | 2.57 | % | |||||||||||
Expected volatility | 23.06 | % | 24.73 | % | 30.36 | % | |||||||||||
Risk-free rate of return | 1.48 | % | 0.91 | % | 1.16 | % | |||||||||||
Expected option term (years) | 5 | 5.5 | 5.8 | ||||||||||||||
(1) Estimated on date of grant using Black-Scholes option-pricing model. | |||||||||||||||||
Stock Options Activity | Weighted | ||||||||||||||||
Average | |||||||||||||||||
Number of | Exercise | ||||||||||||||||
Options | Price | ||||||||||||||||
Outstanding at December 31, 2011 | 38,916,370 | $ | 43.01 | ||||||||||||||
Granted | 5,788,734 | 59.86 | |||||||||||||||
Exercised | -8,347,313 | 36.52 | |||||||||||||||
Lapsed or canceled | -788,770 | 49.76 | |||||||||||||||
Outstanding at December 31, 2012 | 35,569,021 | 47.13 | |||||||||||||||
Granted | 6,041,422 | 69.89 | |||||||||||||||
Exercised | -10,329,611 | 41.91 | |||||||||||||||
Lapsed or canceled | -616,995 | 53.84 | |||||||||||||||
Outstanding at December 31, 2013 | 30,663,837 | 53.27 | |||||||||||||||
Granted | 5,823,706 | 93.95 | |||||||||||||||
Exercised | -5,697,263 | 47.47 | |||||||||||||||
Lapsed or canceled | -1,294,668 | 67.7 | |||||||||||||||
Outstanding at December 31, 2014 | 29,495,612 | $ | 61.8 | ||||||||||||||
Vested and expected to vest at December 31, 2014(1) | 28,015,623 | $ | 60.44 | ||||||||||||||
Exercisable at December 31, 2014 | 16,019,742 | $ | 49.4 | ||||||||||||||
(1) Represents the sum of vested options of 16.0 million and expected to vest options of 12.0 million. Expected to vest options are derived by applying the pre-vesting forfeiture rate assumption to total outstanding unvested options of 28.0 million. | |||||||||||||||||
Schedule of share based compensation by price ranges | Options Outstanding | Options Exercisable | |||||||||||||||
Weighted | Weighted | ||||||||||||||||
Weighted | Average | Aggregate | Average | Aggregate | |||||||||||||
Range of | Number | Average | Exercise | Intrinsic | Number | Exercise | Intrinsic | ||||||||||
Exercise prices | Outstanding | Life(1) | Price | Value | Exercisable | Price | Value | ||||||||||
$28.35-$39.99 | 2,029,342 | 3.71 | $ | 29.46 | $ | 143 | 2,029,342 | $ | 29.46 | $ | 143 | ||||||
$40.00-$49.99 | 5,971,196 | 3.86 | 42 | 346 | 5,968,696 | 42 | 346 | ||||||||||
$50.00-$59.99 | 10,710,421 | 6.07 | 58.36 | 445 | 6,777,404 | 58.12 | 283 | ||||||||||
$60.00-$74.99 | 5,202,747 | 8.1 | 69.72 | 157 | 1,214,300 | 69.27 | 37 | ||||||||||
$75.00-$95.00 | 5,581,906 | 9.16 | 93.95 | 33 | 30,000 | 93.97 | - | ||||||||||
29,495,612 | 6.4 | 61.8 | $ | 1,124 | 16,019,742 | 49.4 | $ | 809 | |||||||||
(1) Average remaining contractual life in years. | |||||||||||||||||
Financial Statement Impact From Stock Options Exercised | Years Ended December 31, | ||||||||||||||||
Options Exercised | 2014 | 2013 | 2012 | ||||||||||||||
Intrinsic value(1) | $ | 272 | $ | 367 | $ | 202 | |||||||||||
Tax benefit realized | 96 | 129 | 74 | ||||||||||||||
Operating cash inflow | 172 | 333 | 249 | ||||||||||||||
Financing cash inflow | 77 | 99 | 56 | ||||||||||||||
Total cash received | 249 | 432 | 305 | ||||||||||||||
(1) Represents the amount by which the stock price exceeded the exercise price of the options on the date of exercise. | |||||||||||||||||
Restricted stock units activity | Weighted | ||||||||||||||||
Average | |||||||||||||||||
Number of | Grant Date | ||||||||||||||||
Restricted | Fair Value | ||||||||||||||||
Stock Units | Per Share | ||||||||||||||||
Non-vested at December 31, 2011 | 9,746,433 | $ | 41.35 | ||||||||||||||
Granted | 2,156,753 | 59.52 | |||||||||||||||
Vested | -3,380,251 | 31.84 | |||||||||||||||
Forfeited | -427,196 | 45.78 | |||||||||||||||
Non-vested at December 31, 2012 | 8,095,739 | 49.91 | |||||||||||||||
Granted | 1,904,504 | 75.73 | |||||||||||||||
Vested | -2,995,553 | 42.17 | |||||||||||||||
Forfeited | -312,470 | 56.58 | |||||||||||||||
Non-vested at December 31, 2013 | 6,692,220 | 60.04 | |||||||||||||||
Granted | 1,455,209 | 94.88 | |||||||||||||||
Vested | -1,787,894 | 53.63 | |||||||||||||||
Forfeited | -460,341 | 63.54 | |||||||||||||||
Non-vested at December 31, 2014 | 5,899,194 | $ | 70.32 | ||||||||||||||
Income Statement Impact from RSUs | Years Ended December 31, | ||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Compensation expense | $ | 102 | $ | 100 | $ | 105 | |||||||||||
Future income tax benefit recognized | 37 | 35 | 37 |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Commitments And Contingencies [Abstract] | |||||||||||||||||||||
Loss Contingency | |||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Beginning of year | $ | 643 | $ | 654 | $ | 723 | |||||||||||||||
Accruals for environmental matters deemed probable and | |||||||||||||||||||||
reasonably estimable | 268 | 272 | 234 | ||||||||||||||||||
Environmental liability payments | -321 | -304 | -320 | ||||||||||||||||||
Other | 1 | 21 | 17 | ||||||||||||||||||
End of year | $ | 591 | $ | 643 | $ | 654 | |||||||||||||||
Environmental liabilities are included in the following balance sheet accounts: | |||||||||||||||||||||
Environmental liabilities are included in the following balance sheet accounts: | |||||||||||||||||||||
December 31, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Accrued liabilities | $ | 278 | $ | 304 | |||||||||||||||||
Other liabilities | 313 | 339 | |||||||||||||||||||
$ | 591 | $ | 643 | ||||||||||||||||||
Asbestos Related Liabilities | Asbestos Related Liabilities | ||||||||||||||||||||
Year Ended December 31, | Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Bendix | NARCO | Total | Bendix | NARCO | Total | Bendix | NARCO | Total | |||||||||||||
Beginning of year | $ | 656 | $ | 955 | $ | 1,611 | $ | 653 | $ | 1,119 | $ | 1,772 | $ | 613 | $ | 1,123 | $ | 1,736 | |||
Accrual for update to | |||||||||||||||||||||
estimated liability | 195 | 4 | 199 | 180 | 5 | 185 | 168 | -1 | 167 | ||||||||||||
Change in estimated cost of | |||||||||||||||||||||
future claims | -1 | 0 | -1 | 16 | 0 | 16 | 30 | 0 | 30 | ||||||||||||
Update of expected resolution | |||||||||||||||||||||
values for pending claims | 2 | 0 | 2 | -5 | 0 | -5 | 8 | 0 | 8 | ||||||||||||
Asbestos related liability | |||||||||||||||||||||
payments | -229 | -30 | -259 | -188 | -169 | -357 | -166 | -3 | -169 | ||||||||||||
End of year | $ | 623 | $ | 929 | $ | 1,552 | $ | 656 | $ | 955 | $ | 1,611 | $ | 653 | $ | 1,119 | $ | 1,772 | |||
Insurance Recoveries for Asbestos Related Liabilities | Insurance Recoveries for Asbestos Related Liabilities | ||||||||||||||||||||
Year Ended December 31, | Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Bendix | NARCO | Total | Bendix | NARCO | Total | Bendix | NARCO | Total | |||||||||||||
Beginning of year | $ | 141 | $ | 531 | $ | 672 | $ | 138 | $ | 569 | $ | 707 | $ | 162 | $ | 618 | $ | 780 | |||
Probable insurance | |||||||||||||||||||||
recoveries related to | |||||||||||||||||||||
estimated liability | 24 | - | 24 | 27 | - | 27 | 28 | - | 28 | ||||||||||||
Insurance receipts for | |||||||||||||||||||||
asbestos related liabilities | -24 | -187 | -211 | -24 | -34 | -58 | -60 | -62 | -122 | ||||||||||||
Insurance receivables | |||||||||||||||||||||
settlements and write offs | -6 | 7 | 1 | - | -6 | -6 | 8 | 13 | 21 | ||||||||||||
Other | - | -1 | -1 | - | 2 | 2 | - | - | - | ||||||||||||
End of year | $ | 135 | $ | 350 | $ | 485 | $ | 141 | $ | 531 | $ | 672 | $ | 138 | $ | 569 | $ | 707 | |||
NARCO and Bendix asbestos related balances are included in the following balance sheet accounts | NARCO and Bendix asbestos related balances are included in the following balance sheet accounts: | ||||||||||||||||||||
December 31, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Other current assets | $ | 31 | $ | 77 | |||||||||||||||||
Insurance recoveries for asbestos related liabilities | 454 | 595 | |||||||||||||||||||
$ | 485 | $ | 672 | ||||||||||||||||||
Accrued liabilities | $ | 352 | $ | 461 | |||||||||||||||||
Asbestos related liabilities | 1,200 | 1,150 | |||||||||||||||||||
$ | 1,552 | $ | 1,611 | ||||||||||||||||||
The following tables present information regarding Bendix related asbestos claims activity | Years Ended | ||||||||||||||||||||
December 31, | |||||||||||||||||||||
Claims Activity | 2014 | 2013 | |||||||||||||||||||
Claims Unresolved at the beginning of year | 12,302 | 23,141 | |||||||||||||||||||
Claims Filed | 3,694 | 4,527 | |||||||||||||||||||
Claims Resolved(1) | -6,729 | -15,366 | |||||||||||||||||||
Claims Unresolved at the end of year | 9,267 | 12,302 | |||||||||||||||||||
-1 | Claims resolved in 2014 include 2,110 cancer claims which were determined to have no value. Also, claims resolved in 2014 and 2013 include significantly aged (i.e., pending for more than six years) claims totaling 1,266 and 12,250, respectively, of which 82% and 92%, respectively, were non-malignant. | ||||||||||||||||||||
Disease distribution of claims | December 31, | ||||||||||||||||||||
Disease Distribution of Unresolved Claims | 2014 | 2013 | |||||||||||||||||||
Mesothelioma and Other Cancer Claims | 3,933 | 5,810 | |||||||||||||||||||
Nonmalignant Claims | 5,334 | 6,492 | |||||||||||||||||||
Total Claims | 9,267 | 12,302 | |||||||||||||||||||
Average resolution values per asbestos claim | Honeywell has experienced average resolution values per claim excluding legal costs as follows: | ||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||||
(in whole dollars) | |||||||||||||||||||||
Malignant claims | $ | 53,500 | $ | 51,000 | $ | 49,000 | $ | 48,000 | $ | 54,000 | |||||||||||
Nonmalignant claims | $ | 120 | $ | 850 | $ | 1,400 | $ | 1,000 | $ | 1,300 | |||||||||||
Warranties and Guarantees | Maximum | ||||||||||||||||||||
Potential | |||||||||||||||||||||
Future | |||||||||||||||||||||
Payments | |||||||||||||||||||||
Operating lease residual values | $ | 41 | |||||||||||||||||||
Other third parties’ financing | 4 | ||||||||||||||||||||
Customer financing | 4 | ||||||||||||||||||||
$ | 49 | ||||||||||||||||||||
Movement In Standard Product Warranty Rollforward And Balances | Years Ended December 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Beginning of year | $ | 405 | $ | 407 | $ | 402 | |||||||||||||||
Accruals for warranties/guarantees issued during the year | 225 | 212 | 196 | ||||||||||||||||||
Adjustment of pre-existing warranties/guarantees | -34 | -1 | -20 | ||||||||||||||||||
Settlement of warranty/guarantee claims | -193 | -213 | -171 | ||||||||||||||||||
End of year | $ | 403 | $ | 405 | $ | 407 | |||||||||||||||
Product warranties and product performance guarantees are included in the following balance sheet accounts: | |||||||||||||||||||||
December 31, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Accrued liabilities | $ | 332 | $ | 323 | |||||||||||||||||
Other liabilities | 71 | 82 | |||||||||||||||||||
$ | 403 | $ | 405 |
PENSION_AND_OTHER_POSTRETIREME1
PENSION AND OTHER POSTRETIREMENT BENEFITS (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Pension And Other Postretirement Benefits (Tables) [Abstract] | ||||||||||||||||||
Defined Benefit Plans Disclosure | Pension Benefits | |||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Change in benefit obligation: | ||||||||||||||||||
Benefit obligation at beginning of year | $ | 16,290 | $ | 17,117 | $ | 5,523 | $ | 5,272 | ||||||||||
Service cost | 241 | 272 | 56 | 58 | ||||||||||||||
Interest cost | 771 | 677 | 231 | 215 | ||||||||||||||
Plan amendments | - | 14 | -17 | - | ||||||||||||||
Actuarial (gains) losses | 1,718 | -975 | 601 | 72 | ||||||||||||||
Acquisitions | - | 190 | - | 44 | ||||||||||||||
Divestitures | - | - | -61 | - | ||||||||||||||
Benefits paid | -996 | -1,005 | -210 | -198 | ||||||||||||||
Foreign currency and other | 11 | - | -362 | 60 | ||||||||||||||
Benefit obligation at end of year | 18,035 | 16,290 | 5,761 | 5,523 | ||||||||||||||
Change in plan assets: | ||||||||||||||||||
Fair value of plan assets at beginning of year | 16,727 | 14,345 | 5,037 | 4,527 | ||||||||||||||
Actual return on plan assets | 1,290 | 3,191 | 622 | 428 | ||||||||||||||
Company contributions | 36 | 28 | 187 | 183 | ||||||||||||||
Acquisitions | - | 168 | - | 45 | ||||||||||||||
Benefits paid | -996 | -1,005 | -210 | -198 | ||||||||||||||
Foreign currency and other | 9 | - | -303 | 52 | ||||||||||||||
Fair value of plan assets at end of year | 17,066 | 16,727 | 5,333 | 5,037 | ||||||||||||||
Funded status of plans | $ | -969 | $ | 437 | $ | -428 | $ | -486 | ||||||||||
Amounts recognized in Consolidated Balance | ||||||||||||||||||
Sheet consist of: | ||||||||||||||||||
Prepaid pension benefit cost(1) | $ | - | $ | 839 | $ | 270 | $ | 120 | ||||||||||
Accrued pension liabilities - current(2) | -74 | -36 | -8 | -13 | ||||||||||||||
Accrued pension liabilities - noncurrent(3) | -895 | -366 | -690 | -593 | ||||||||||||||
Net amount recognized | $ | -969 | $ | 437 | $ | -428 | $ | -486 | ||||||||||
(1) Included in Other Assets on Consolidated Balance Sheet | ||||||||||||||||||
(2) Included in Accrued Liabilities on Consolidated Balance Sheet | ||||||||||||||||||
(3) Included in Other Liabilities - Non-Current on Consolidated Balance Sheet | ||||||||||||||||||
Other Postretirement Benefits | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
Change in benefit obligation: | ||||||||||||||||||
Benefit obligation at beginning of year | $ | 1,096 | $ | 1,477 | ||||||||||||||
Service cost | - | - | ||||||||||||||||
Interest cost | 42 | 44 | ||||||||||||||||
Plan amendments(1) | -87 | -175 | ||||||||||||||||
Actuarial (gains) losses | 46 | -108 | ||||||||||||||||
Benefits paid | -124 | -142 | ||||||||||||||||
Benefit obligation at end of year | 973 | 1,096 | ||||||||||||||||
Change in plan assets: | ||||||||||||||||||
Fair value of plan assets at beginning of year | - | - | ||||||||||||||||
Actual return on plan assets | - | - | ||||||||||||||||
Company contributions | - | - | ||||||||||||||||
Benefits paid | - | - | ||||||||||||||||
Fair value of plan assets at end of year | - | - | ||||||||||||||||
Funded status of plans | $ | -973 | $ | -1,096 | ||||||||||||||
Amounts recognized in Consolidated Balance Sheet consist of: | ||||||||||||||||||
Accrued liabilities | $ | -111 | $ | -130 | ||||||||||||||
Postretirement benefit obligations other than pensions(2) | -862 | -966 | ||||||||||||||||
Net amount recognized | $ | -973 | $ | -1,096 | ||||||||||||||
(1) Elimination of retiree medical and life insurance coverage for certain retirees and union employees. Amount will be recognized as part of net postretirement benefit cost over the expected future lifetime of the remaining participants in the plan. | ||||||||||||||||||
(2) Excludes non-U.S. plans of $49 million and $53 million in 2014 and 2013, respectively. | ||||||||||||||||||
Other Changes in Plan Assets Recognized in Other Comprehensive Income | Pension Benefits | |||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Transition obligation | $ | - | $ | - | $ | 1 | $ | 3 | ||||||||||
Prior service cost (credit) | 88 | 111 | -27 | -14 | ||||||||||||||
Net actuarial (gain) loss | 281 | -1,378 | 493 | 434 | ||||||||||||||
Net amount recognized | $ | 369 | $ | -1,267 | $ | 467 | $ | 423 | ||||||||||
Other Postretirement Benefits | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
Prior service (credit) | $ | -235 | $ | -168 | ||||||||||||||
Net actuarial loss | 278 | 256 | ||||||||||||||||
Net amount recognized | $ | 43 | $ | 88 | ||||||||||||||
Net Periodic Benefit Cost | Pension Benefits | |||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||
Net Periodic Benefit Cost | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||
Service cost | $ | 241 | $ | 272 | $ | 256 | $ | 56 | $ | 58 | $ | 48 | ||||||
Interest cost | 771 | 677 | 738 | 231 | 215 | 221 | ||||||||||||
Expected return on plan assets | -1,257 | -1,076 | -1,020 | -354 | -308 | -291 | ||||||||||||
Amortization of transition | ||||||||||||||||||
obligation | - | - | - | 2 | 2 | 2 | ||||||||||||
Amortization of prior service | ||||||||||||||||||
cost (credit) | 23 | 23 | 28 | -2 | -2 | -2 | ||||||||||||
Recognition of actuarial losses | 26 | - | 707 | 223 | 51 | 250 | ||||||||||||
Settlements and curtailments | - | - | - | - | - | 2 | ||||||||||||
Net periodic benefit (income) cost | $ | -196 | $ | -104 | $ | 709 | $ | 156 | $ | 16 | $ | 230 | ||||||
Other Changes in Plan Assets and | ||||||||||||||||||
Benefits Obligations Recognized in | U.S. Plans | Non-U.S. Plans | ||||||||||||||||
Other Comprehensive (Income) Loss | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||
Actuarial (gains) losses | $ | 1,686 | $ | -3,090 | $ | 859 | $ | 333 | $ | -48 | $ | 327 | ||||||
Prior service cost (credit) | - | 14 | - | -17 | - | - | ||||||||||||
Transition obligation | ||||||||||||||||||
recognized during year | - | - | - | -2 | -2 | -2 | ||||||||||||
Prior service (cost) credit | ||||||||||||||||||
recognized during year | -23 | -23 | -28 | 2 | 2 | 2 | ||||||||||||
Actuarial losses recognized | ||||||||||||||||||
during year | -26 | - | -707 | -223 | -51 | -250 | ||||||||||||
Foreign exchange translation | ||||||||||||||||||
adjustments | - | - | - | -50 | 3 | 23 | ||||||||||||
Total recognized in other | ||||||||||||||||||
comprehensive (income) loss | $ | 1,637 | $ | -3,099 | $ | 124 | $ | 43 | $ | -96 | $ | 100 | ||||||
Total recognized in net periodic | ||||||||||||||||||
benefit (income) cost and other comprehensive | ||||||||||||||||||
(income) loss | $ | 1,441 | $ | -3,203 | $ | 833 | $ | 199 | $ | -80 | $ | 330 | ||||||
Other Postretirement Benefits | ||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||
Net Periodic Benefit Cost | 2014 | 2013 | 2012 | |||||||||||||||
Service cost | $ | - | $ | - | $ | 1 | ||||||||||||
Interest cost | 42 | 44 | 53 | |||||||||||||||
Amortization of prior service (credit) | -20 | -13 | -14 | |||||||||||||||
Recognition of actuarial losses | 24 | 27 | 34 | |||||||||||||||
Settlements and curtailments(1) | - | -42 | -6 | |||||||||||||||
Net periodic benefit cost | $ | 46 | $ | 16 | $ | 68 | ||||||||||||
(1) Curtailment gain in 2013 related to elimination of retiree medical coverage for a union group | ||||||||||||||||||
in connection with a new collective bargaining agreement. | ||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||
Other Changes in Plan Assets and Benefits Obligations | 2014 | 2013 | 2012 | |||||||||||||||
Recognized in Other Comprehensive (Income) Loss | ||||||||||||||||||
Actuarial (gains) losses | $ | 46 | $ | -108 | $ | 34 | ||||||||||||
Prior service (credit) | -87 | -175 | -1 | |||||||||||||||
Prior service credit recognized during year | 20 | 13 | 14 | |||||||||||||||
Actuarial losses recognized during year | -24 | -27 | -34 | |||||||||||||||
Settlements and curtailments | - | 42 | 6 | |||||||||||||||
Total recognized in other comprehensive (income) loss | $ | -45 | $ | -255 | $ | 19 | ||||||||||||
Total recognized in net periodic benefit cost and | ||||||||||||||||||
other comprehensive (income) loss | $ | 1 | $ | -239 | $ | 87 | ||||||||||||
Assumptions Used in Calculations | Pension Benefits | |||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||
Actuarial assumptions used to determine | ||||||||||||||||||
benefit obligations as of December 31: | ||||||||||||||||||
Discount rate | 4.08 | % | 4.89 | % | 4.06 | % | 3.26 | % | 4.29 | % | 4.29 | % | ||||||
Expected annual rate of | ||||||||||||||||||
compensation increase | 4.5 | % | 4.5 | % | 4.5 | % | 2.53 | % | 2.81 | % | 3.55 | % | ||||||
Actuarial assumptions used to determine | ||||||||||||||||||
net periodic benefit (income) cost for | ||||||||||||||||||
years ended December 31: | ||||||||||||||||||
Discount rate | 4.89 | % | 4.06 | % | 4.89 | % | 4.29 | % | 4.29 | % | 4.84 | % | ||||||
Expected rate of return | ||||||||||||||||||
on plan assets | 7.75 | % | 7.75 | % | 8 | % | 6.96 | % | 6.99 | % | 7.03 | % | ||||||
Expected annual rate of | ||||||||||||||||||
compensation increase | 4.5 | % | 4.5 | % | 4.5 | % | 2.81 | % | 3.55 | % | 3.67 | % | ||||||
Other Postretirement Benefits | ||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
Actuarial assumptions used to determine benefit | ||||||||||||||||||
obligations as of December 31: | ||||||||||||||||||
Discount rate | 3.45 | % | 4.05 | % | 3.4 | % | ||||||||||||
Actuarial assumptions used to determine net periodic | ||||||||||||||||||
benefit cost for years ended December 31: | ||||||||||||||||||
Discount rate | 4.05 | % | 3.4 | % | 4 | % | ||||||||||||
Accumulated Benefit Obligations in Excess of Plan Assets | December 31, | |||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Projected benefit obligation | $626 | $576 | $1,686 | $911 | ||||||||||||||
Accumulated benefit obligation | $618 | $569 | $1,584 | $855 | ||||||||||||||
Fair value of plan assets | $194 | $174 | $994 | $307 | ||||||||||||||
Fair Value of Plan Assets | U.S. Plans | |||||||||||||||||
31-Dec-14 | ||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||||
Common stock/preferred stock: | ||||||||||||||||||
Honeywell common stock | $ | 1,851 | $ | 1,851 | $ | - | $ | - | ||||||||||
U.S. large cap stocks | 3,913 | 3,867 | 46 | - | ||||||||||||||
U.S. mid cap stocks | 1,028 | 1,018 | 10 | - | ||||||||||||||
U.S. small cap stocks | 219 | 219 | - | - | ||||||||||||||
International stocks | 2,576 | 2,400 | 176 | - | ||||||||||||||
Real estate investment trusts | 204 | 204 | - | - | ||||||||||||||
Fixed income investments: | ||||||||||||||||||
Short term investments | 1,078 | 1,078 | - | - | ||||||||||||||
Government securities | 438 | - | 438 | - | ||||||||||||||
Corporate bonds | 2,988 | - | 2,988 | - | ||||||||||||||
Mortgage/Asset-backed securities | 635 | - | 635 | - | ||||||||||||||
Insurance contracts | 7 | - | 7 | - | ||||||||||||||
Investments in private funds: | ||||||||||||||||||
Private funds | 999 | - | - | 999 | ||||||||||||||
Hedge funds | 3 | - | - | 3 | ||||||||||||||
Real estate funds | 226 | - | - | 226 | ||||||||||||||
Direct investments: | ||||||||||||||||||
Direct private investments | 301 | - | - | 301 | ||||||||||||||
Real estate properties | 600 | - | - | 600 | ||||||||||||||
$ | 17,066 | $ | 10,637 | $ | 4,300 | $ | 2,129 | |||||||||||
U.S. Plans | ||||||||||||||||||
31-Dec-13 | ||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||||
Common stock/preferred stock: | ||||||||||||||||||
Honeywell common stock | $ | 1,697 | $ | 1,697 | $ | - | $ | - | ||||||||||
U.S. large cap stocks | 4,147 | 4,107 | 40 | - | ||||||||||||||
U.S. mid cap stocks | 757 | 752 | 5 | - | ||||||||||||||
U.S. small cap stocks | 215 | 210 | 5 | - | ||||||||||||||
International stocks | 2,685 | 2,503 | 182 | - | ||||||||||||||
Real estate investment trusts | 90 | 90 | - | - | ||||||||||||||
Fixed income investments: | ||||||||||||||||||
Short term investments | 956 | 955 | 1 | - | ||||||||||||||
Government securities | 266 | - | 266 | - | ||||||||||||||
Corporate bonds | 2,931 | - | 2,931 | - | ||||||||||||||
Mortgage/Asset-backed securities | 770 | - | 770 | - | ||||||||||||||
Insurance contracts | 7 | - | 7 | - | ||||||||||||||
Investments in private funds: | ||||||||||||||||||
Private funds | 1,058 | - | - | 1,058 | ||||||||||||||
Hedge funds | 6 | - | - | 6 | ||||||||||||||
Real estate funds | 237 | - | - | 237 | ||||||||||||||
Direct investments: | ||||||||||||||||||
Direct private investments | 278 | - | - | 278 | ||||||||||||||
Real estate properties | 627 | - | - | 627 | ||||||||||||||
$ | 16,727 | $ | 10,314 | $ | 4,207 | $ | 2,206 | |||||||||||
Non-U.S. Plans | ||||||||||||||||||
31-Dec-14 | ||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||||
Common stock/preferred stock: | ||||||||||||||||||
U.S. companies | $ | 534 | $ | 464 | $ | 70 | $ | - | ||||||||||
Non-U.S. companies | 1,876 | 225 | 1,651 | - | ||||||||||||||
Fixed income investments: | ||||||||||||||||||
Short-term investments | 117 | 113 | 4 | - | ||||||||||||||
Government securities | 1,495 | - | 1,495 | - | ||||||||||||||
Corporate bonds | 857 | - | 857 | - | ||||||||||||||
Mortgage/Asset-backed securities | 19 | - | 19 | - | ||||||||||||||
Insurance contracts | 186 | - | 186 | - | ||||||||||||||
Investments in private funds: | ||||||||||||||||||
Private funds | 62 | - | - | 62 | ||||||||||||||
Hedge funds | 2 | - | - | 2 | ||||||||||||||
Real estate funds | 185 | - | - | 185 | ||||||||||||||
$ | 5,333 | $ | 802 | $ | 4,282 | $ | 249 | |||||||||||
Non-U.S. Plans | ||||||||||||||||||
31-Dec-13 | ||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||||
Common stock/preferred stock: | ||||||||||||||||||
U.S. companies | $ | 459 | $ | 394 | $ | 65 | $ | - | ||||||||||
Non-U.S. companies | 1,929 | 244 | 1,685 | - | ||||||||||||||
Fixed income investments: | ||||||||||||||||||
Short-term investments | 147 | 140 | 7 | - | ||||||||||||||
Government securities | 1,303 | - | 1,303 | - | ||||||||||||||
Corporate bonds | 656 | - | 656 | - | ||||||||||||||
Mortgage/Asset-backed securities | 25 | - | 25 | - | ||||||||||||||
Insurance contracts | 208 | - | 208 | - | ||||||||||||||
Investments in private funds: | ||||||||||||||||||
Private funds | 67 | - | - | 67 | ||||||||||||||
Hedge funds | 62 | - | - | 62 | ||||||||||||||
Real estate funds | 181 | - | - | 181 | ||||||||||||||
$ | 5,037 | $ | 778 | $ | 3,949 | $ | 310 | |||||||||||
Changes in Fair Value of Level 3 Plan Assets | U.S. Plans | |||||||||||||||||
Direct | ||||||||||||||||||
Private | Private | Hedge | Real Estate | Real Estate | ||||||||||||||
Funds | Investments | Funds | Funds | Properties | ||||||||||||||
Balance at December 31, 2012 | $ | 1,100 | $ | 227 | $ | 52 | $ | 254 | $ | 595 | ||||||||
Actual return on plan assets: | ||||||||||||||||||
Relating to assets still held | ||||||||||||||||||
at year-end | -10 | 34 | -22 | 11 | 61 | |||||||||||||
Relating to assets sold | ||||||||||||||||||
during the year | 117 | 1 | 22 | 1 | 4 | |||||||||||||
Purchases | 94 | 37 | 9 | 15 | 15 | |||||||||||||
Sales and settlements | -243 | -21 | -55 | -44 | -48 | |||||||||||||
Balance at December 31, 2013 | 1,058 | 278 | 6 | 237 | 627 | |||||||||||||
Actual return on plan assets: | ||||||||||||||||||
Relating to assets still held | ||||||||||||||||||
at year-end | -50 | -10 | -2 | 21 | 10 | |||||||||||||
Relating to assets sold | ||||||||||||||||||
during the year | 94 | 59 | 2 | - | 53 | |||||||||||||
Purchases | 168 | 92 | 3 | 8 | 38 | |||||||||||||
Sales and settlements | -271 | -118 | -6 | -40 | -128 | |||||||||||||
Balance at December 31, 2014 | $ | 999 | $ | 301 | $ | 3 | $ | 226 | $ | 600 | ||||||||
Non-U.S. Plans | ||||||||||||||||||
Private | Hedge | Real Estate | ||||||||||||||||
Funds | Funds | Funds | ||||||||||||||||
Balance at December 31, 2012 | $ | 136 | $ | 56 | $ | 157 | ||||||||||||
Actual return on plan assets: | ||||||||||||||||||
Relating to assets still held at year-end | -6 | 4 | 18 | |||||||||||||||
Relating to assets sold during the year | 3 | - | -1 | |||||||||||||||
Purchases | 4 | 2 | 12 | |||||||||||||||
Sales and settlements | -70 | - | -5 | |||||||||||||||
Balance at December 31, 2013 | 67 | 62 | 181 | |||||||||||||||
Actual return on plan assets: | ||||||||||||||||||
Relating to assets still held at year-end | -4 | -11 | 17 | |||||||||||||||
Relating to assets sold during the year | 6 | 12 | 1 | |||||||||||||||
Purchases | - | - | 4 | |||||||||||||||
Sales and settlements | -7 | -61 | -18 | |||||||||||||||
Balance at December 31, 2014 | $ | 62 | $ | 2 | $ | 185 | ||||||||||||
Estimated Future Benefit Payments | U.S. Plans | Non-U.S. Plans | ||||||||||||||||
2015 | $ | 1,133 | $ | 196 | ||||||||||||||
2016 | 1,104 | 200 | ||||||||||||||||
2017 | 1,103 | 205 | ||||||||||||||||
2018 | 1,117 | 211 | ||||||||||||||||
2019 | 1,132 | 217 | ||||||||||||||||
2020-2024 | 5,799 | 1,187 | ||||||||||||||||
Assumed Health Care Cost Trend Rates | December 31, | |||||||||||||||||
2014 | 2013 | |||||||||||||||||
Assumed health care cost trend rate: | ||||||||||||||||||
Health care cost trend rate assumed for next year | 7 | % | 7 | % | ||||||||||||||
Rate that the cost trend rate gradually declines to | 5 | % | 5 | % | ||||||||||||||
Year that the rate reaches the rate it is assumed to remain at | 2023 | 2019 | ||||||||||||||||
Effect of One Percentage Point Change | 1 percentage point | |||||||||||||||||
Increase | Decrease | |||||||||||||||||
Effect on total of service and interest cost components | $ | 2 | $ | -2 | ||||||||||||||
Effect on postretirement benefit obligation | $ | 73 | $ | -49 | ||||||||||||||
Schedule Of Benefit Payments Reflecting Expected Future Service [Table Text Block] | Benefit payments reflecting expected future service, as appropriate, are expected to be paid | |||||||||||||||||
as follows: | ||||||||||||||||||
Without Impact of | Net of | |||||||||||||||||
Medicare Subsidy | Medicare Subsidy | |||||||||||||||||
2015 | $ | 119 | $ | 111 | ||||||||||||||
2016 | 106 | 99 | ||||||||||||||||
2017 | 102 | 94 | ||||||||||||||||
2018 | 97 | 90 | ||||||||||||||||
2019 | 92 | 85 | ||||||||||||||||
2020-2024 | 363 | 329 |
SEGMENT_FINANCIAL_DATA_Tables
SEGMENT FINANCIAL DATA (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Segment Financial Data [Abstract] | |||||||||||||
Segment Financial Data | Years Ended December 31, | ||||||||||||
Net Sales | 2014 | 2013 | 2012 | ||||||||||
Aerospace | |||||||||||||
Product | $ | 10,773 | $ | 10,798 | $ | 10,560 | |||||||
Service | 4,825 | 4,937 | 5,041 | ||||||||||
Total | 15,598 | 15,735 | 15,601 | ||||||||||
Automation and Control Solutions | |||||||||||||
Product | 13,219 | 12,253 | 11,581 | ||||||||||
Service | 1,268 | 1,212 | 1,206 | ||||||||||
Total | 14,487 | 13,465 | 12,787 | ||||||||||
Performance Materials and Technologies | |||||||||||||
Product | 8,406 | 8,163 | 7,671 | ||||||||||
Service | 1,815 | 1,692 | 1,606 | ||||||||||
Total | 10,221 | 9,855 | 9,277 | ||||||||||
$ | 40,306 | $ | 39,055 | $ | 37,665 | ||||||||
Depreciation and amortization | |||||||||||||
Aerospace | $ | 277 | $ | 290 | $ | 296 | |||||||
Automation and Control Solutions | 306 | 302 | 302 | ||||||||||
Performance Materials and Technologies | 284 | 336 | 265 | ||||||||||
Corporate | 57 | 61 | 63 | ||||||||||
$ | 924 | $ | 989 | $ | 926 | ||||||||
Segment Profit | |||||||||||||
Aerospace | $ | 2,915 | $ | 2,870 | $ | 2,711 | |||||||
Automation and Control Solutions | 2,200 | 1,983 | 1,836 | ||||||||||
Performance Materials and Technologies | 1,817 | 1,725 | 1,550 | ||||||||||
Corporate | -236 | -227 | -218 | ||||||||||
$ | 6,696 | $ | 6,351 | $ | 5,879 | ||||||||
Capital expenditures | |||||||||||||
Aerospace | $ | 315 | $ | 310 | $ | 320 | |||||||
Automation and Control Solutions | 145 | 132 | 114 | ||||||||||
Performance Materials and Technologies | 537 | 448 | 357 | ||||||||||
Corporate | 97 | 57 | 93 | ||||||||||
$ | 1,094 | $ | 947 | $ | 884 | ||||||||
December 31, | |||||||||||||
Total Assets | 2014 | 2013 | 2012 | ||||||||||
Aerospace | $ | 11,151 | $ | 11,379 | $ | 11,024 | |||||||
Automation and Control Solutions | 17,191 | 17,675 | 15,996 | ||||||||||
Performance Materials and Technologies | 9,699 | 9,534 | 9,154 | ||||||||||
Corporate | 7,410 | 6,847 | 5,679 | ||||||||||
$ | 45,451 | $ | 45,435 | $ | 41,853 | ||||||||
Reconciliation of Operating Profit Loss From Segments to Consolidated | |||||||||||||
A reconciliation of segment profit to consolidated income from continuing operations before taxes are as follows: | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Segment Profit | $ | 6,696 | $ | 6,351 | $ | 5,879 | |||||||
Other income (expense)(1) | 269 | 202 | 25 | ||||||||||
Interest and other financial charges | -318 | -327 | -351 | ||||||||||
Stock compensation expense(2) | -187 | -170 | -170 | ||||||||||
Pension ongoing income (expense)(2) | 254 | 90 | -36 | ||||||||||
Pension mark-to-market expense(2) | -249 | -51 | -957 | ||||||||||
Other postretirement income (expense)(2) | -49 | -20 | -72 | ||||||||||
Repositioning and other charges (2) | -598 | -663 | -443 | ||||||||||
Income from continuing operations before taxes | $ | 5,818 | $ | 5,412 | $ | 3,875 | |||||||
(1) Equity income (loss) of affiliated companies is included in Segment Profit. | |||||||||||||
(2) Amounts included in cost of products and services sold and selling, general and administrative | |||||||||||||
expenses. | |||||||||||||
GEOGRAPHIC_AREAS_FINANCIAL_DAT1
GEOGRAPHIC AREAS FINANCIAL DATA (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Geographic Areas Financial Data [Abstract] | ||||||||||||||||||
Geographic Areas Financial Data | Net Sales(1) | Long-lived Assets(2) | ||||||||||||||||
Years Ended December 31, | December 31, | |||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||
United States | $ | 23,911 | $ | 22,978 | $ | 22,379 | $ | 3,612 | $ | 3,393 | $ | 3,118 | ||||||
Europe | 9,870 | 9,804 | 9,118 | 741 | 905 | 932 | ||||||||||||
Other International | 6,525 | 6,273 | 6,168 | 1,030 | 980 | 951 | ||||||||||||
$ | 40,306 | $ | 39,055 | $ | 37,665 | $ | 5,383 | $ | 5,278 | $ | 5,001 | |||||||
(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 $5,647 million, $5,431 million and $5,126 million in 2014, 2013 and 2012, respectively. | ||||||||||||||||||
(2) Long-lived assets are comprised of property, plant and equipment - net. |
SUPPLEMENTAL_CASH_FLOW_INFORMA1
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Supplemental Cash Flow Information [Abstract] | ||||||||||
Supplemental Cash Flow Information | Years Ended December 31, | |||||||||
2014 | 2013 | 2012 | ||||||||
Payments for repositioning and other charges: | ||||||||||
Severance and exit cost payments | $ | -161 | $ | -160 | $ | -136 | ||||
Environmental payments | -321 | -304 | -320 | |||||||
Insurance receipts for asbestos related liabilities | 211 | 58 | 122 | |||||||
Asbestos related liability payments | -259 | -357 | -169 | |||||||
$ | -530 | $ | -763 | $ | -503 | |||||
Interest paid, net of amounts capitalized | $ | 312 | $ | 330 | $ | 344 | ||||
Income taxes paid, net of refunds | 1,142 | 1,271 | 919 | |||||||
Non-cash investing and financing activities: | ||||||||||
Common stock contributed to savings plans | 168 | 159 | 144 | |||||||
Marketable securities contributed to non-U.S. pension plans | 117 | - | - | |||||||
UNAUDITED_QUARTERLY_FINANCIAL_1
UNAUDITED QUARTERLY FINANCIAL INFORMATION (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Unaudited Quarterly Financial Information [Abstract] | |||||||||||
Schedule Of Quarterly Financial Information Table Text Block | 2014 | ||||||||||
Mar. 31 | 30-Jun | Sept. 30 | Dec. 31 | Year | |||||||
Net Sales | $ | 9,679 | $ | 10,253 | $ | 10,108 | $ | 10,266 | $ | 40,306 | |
Gross Profit | 2,712 | 2,957 | 2,980 | 2,700 | 11,349 | ||||||
Net income attributable to Honeywell | 1,017 | 1,099 | 1,167 | 956 | 4,239 | ||||||
Earnings per share - basic | 1.3 | 1.4 | 1.49 | 1.22 | 5.4 | ||||||
Earnings per share - assuming dilution | 1.28 | 1.38 | 1.47 | 1.2 | 5.33 | ||||||
Dividends paid per share | 0.45 | 0.45 | 0.45 | 0.5175 | 1.87 | ||||||
Market Price per share | |||||||||||
High | 95.44 | 95.81 | 97.34 | 101.98 | 101.98 | ||||||
Low | 88.47 | 90.36 | 90.56 | 85.11 | 85.11 | ||||||
2013 | |||||||||||
Mar. 31 | 30-Jun | Sept. 30 | Dec. 31 | Year | |||||||
Net Sales | $ | 9,328 | $ | 9,693 | $ | 9,647 | $ | 10,387 | $ | 39,055 | |
Gross Profit | 2,545 | 2,666 | 2,705 | 2,775 | 10,691 | ||||||
Net income attributable to Honeywell | 966 | 1,021 | 990 | 947 | 3,924 | ||||||
Earnings per share - basic | 1.23 | 1.3 | 1.26 | 1.2 | 4.99 | ||||||
Earnings per share - assuming dilution | 1.21 | 1.28 | 1.24 | 1.19 | 4.92 | ||||||
Dividends paid per share | 0.41 | 0.41 | 0.41 | 0.451 | 1.68 | ||||||
Market Price per share | |||||||||||
High | 75.48 | 80.85 | 86.79 | 91.37 | 91.37 | ||||||
Low | 64.75 | 71.47 | 77.88 | 81.45 | 64.75 | ||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Significant Accounting Policies Other Details [Abstract] | |||
Date of completion of goodwill impairment test | 31-Mar-14 | ||
Research and development expense | $1,892 | $1,804 | $1,847 |
Defined Benefit Plan, Plan Assets at Fair Value, Valuation Techniques | We recognize net actuarial gains or losses in excess of 10% of the greater of the fair value of plan assets or the plans’ projected benefit obligation (the corridor) annually in the fourth quarter each year (MTM Adjustment), and, if applicable, in any quarter in which an interim remeasurement is triggered. | ||
Minimum [Member] | |||
Other Assets With Determinable Lives [Line Items] | |||
Finite Lived Intangible Assets Estimated Useful Lives | 2 years | ||
Maximum [Member] | |||
Other Assets With Determinable Lives [Line Items] | |||
Finite Lived Intangible Assets Estimated Useful Lives | 24 years | ||
Buildings and improvements [Member] | Minimum [Member] | |||
Property Plant And Equipment Details [Line Items] | |||
Property, plant and equipment, estimated useful lives | 10 | ||
Buildings and improvements [Member] | Maximum [Member] | |||
Property Plant And Equipment Details [Line Items] | |||
Property, plant and equipment, estimated useful lives | 50 | ||
Machinery and Equipment [Member] | Minimum [Member] | |||
Property Plant And Equipment Details [Line Items] | |||
Property, plant and equipment, estimated useful lives | 2 | ||
Machinery and Equipment [Member] | Maximum [Member] | |||
Property Plant And Equipment Details [Line Items] | |||
Property, plant and equipment, estimated useful lives | 16 |
DIVESTITUTURE_Details
DIVESTITUTURE (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Segments | |
Divestitures Paragraph Details [Line Items] | |
Additional Information About Entitys Reportable Segments | Following the closing of the sale, the Company announced the realignment of its Transportation Systems business segment with its Aerospace business segment. Under the realigned segment reporting structure, the Company has three business segments: Aerospace, Automation and Control Solutions and Performance Materials and Technologies. This realignment has no impact on the Company’s historical consolidated financial position, results of operations or cash flows. The Company has reported its financial performance based on the inclusion of Transportation Systems in Aerospace for all periods presented. |
Number Of Reportable Segments | 3 |
Friction Materials [Member] | |
Divestitures Paragraph Details [Line Items] | |
Pretax gain (loss) on sale of disposal group | -5 |
Sale price (cash and noncash) | 155 |
Accumulated pretax gain (loss) on sale of disposal group | -33 |
Gain (loss) on sale of disposal group, net of tax | -5 |
Accumulated gain (loss) on sale of disposal group, net of tax | -33 |
Description and timing of disposal | In 2014, the Company sold its Friction Materials business to Federal Mogul Corporation for $155 million and recognized a pre-tax and after-tax loss of $33 million (of which $5 million was recognized in 2014). The sale of Friction Materials, which was part of the Transportation Systems business, is consistent with the Company’s strategic focus on its portfolio of differentiated global technologies. |
Segment that includes disposal group | Transportation Systems |
REPOSITIONING_AND_OTHER_CHARGE2
REPOSITIONING AND OTHER CHARGES (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Component Of Operating Other Cost And Expense [Line Items] | |||
Restructuring and Related Cost, Incurred Cost | $146,000,000 | $201,000,000 | $53,000,000 |
Asbestos related litigation charges, net of insurance | 182,000,000 | 181,000,000 | 156,000,000 |
Probable and reasonably estimable environmental liabilities | 268,000,000 | 272,000,000 | 234,000,000 |
Other | 2,000,000 | 9,000,000 | 0 |
Total net repositioning and other charges | 598,000,000 | 663,000,000 | 443,000,000 |
Severance Costs [Member] | |||
Component Of Operating Other Cost And Expense [Line Items] | |||
Restructuring and Related Cost, Incurred Cost | 156,000,000 | 186,000,000 | 91,000,000 |
Tangible And Intangible Asset Impairment [Member] | |||
Component Of Operating Other Cost And Expense [Line Items] | |||
Restructuring and Related Cost, Incurred Cost | 12,000,000 | 23,000,000 | 12,000,000 |
Exit Costs [Member] | |||
Component Of Operating Other Cost And Expense [Line Items] | |||
Restructuring and Related Cost, Incurred Cost | 16,000,000 | 22,000,000 | 16,000,000 |
Reserve Adjustments [Member] | |||
Component Of Operating Other Cost And Expense [Line Items] | |||
Restructuring and Related Cost, Incurred Cost | ($38,000,000) | ($30,000,000) | ($66,000,000) |
REPOSITIONING_AND_OTHER_CHARGE3
REPOSITIONING AND OTHER CHARGES 2 (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Net Repositioning And Other Charges By Income Statement Classification [Line Items] | |||
Cost of products and services sold | $28,957,000,000 | $28,364,000,000 | $28,291,000,000 |
Selling, general and administrative expenses | 5,518,000,000 | 5,190,000,000 | 5,218,000,000 |
Total net repositioning and other charges | 598,000,000 | 663,000,000 | 443,000,000 |
Restructuring Charges [Member] | |||
Net Repositioning And Other Charges By Income Statement Classification [Line Items] | |||
Cost of products and services sold | 525,000,000 | 566,000,000 | 428,000,000 |
Selling, general and administrative expenses | 73,000,000 | 97,000,000 | 15,000,000 |
Total net repositioning and other charges | $598,000,000 | $663,000,000 | $443,000,000 |
REPOSITIONING_AND_OTHER_CHARGE4
REPOSITIONING AND OTHER CHARGES 3 (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Pretax Impact Of Total Net Repositioning And Other Charges By Segment [Line Items] | |||
Total net repositioning charges | $598 | $663 | $443 |
Aerospace [Member] | |||
Pretax Impact Of Total Net Repositioning And Other Charges By Segment [Line Items] | |||
Total net repositioning charges | 193 | 235 | 192 |
Automation and Control Solutions [Member] | |||
Pretax Impact Of Total Net Repositioning And Other Charges By Segment [Line Items] | |||
Total net repositioning charges | 80 | 68 | 13 |
Performance Materials And Technologies [Member] | |||
Pretax Impact Of Total Net Repositioning And Other Charges By Segment [Line Items] | |||
Total net repositioning charges | 33 | 56 | 17 |
Corporate [Member] | |||
Pretax Impact Of Total Net Repositioning And Other Charges By Segment [Line Items] | |||
Total net repositioning charges | $292 | $304 | $221 |
REPOSITIONING_AND_OTHER_CHARGE5
REPOSITIONING AND OTHER CHARGES 4 (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Employees | Employees | Employees | |
Net repositioning and other charges Paragraph Details [Abstract] | |||
Gross Repositioning Charge | $184 | $231 | $119 |
Number Of Employees Severed | 2,975 | 3,081 | 2,204 |
Net Repositioning And Other Charges [Line Items] | |||
Restructuring and Related Cost, Incurred Cost | 146 | 201 | 53 |
Severance Costs [Member] | |||
Net Repositioning And Other Charges [Line Items] | |||
Restructuring and Related Cost, Incurred Cost | 156 | 186 | 91 |
Tangible And Intangible Asset Impairment [Member] | |||
Net Repositioning And Other Charges [Line Items] | |||
Restructuring and Related Cost, Incurred Cost | 12 | 23 | 12 |
Exit Costs [Member] | |||
Net Repositioning And Other Charges [Line Items] | |||
Restructuring and Related Cost, Incurred Cost | 16 | 22 | 16 |
Reserve Adjustments [Member] | |||
Net Repositioning And Other Charges [Line Items] | |||
Restructuring and Related Cost, Incurred Cost | ($38) | ($30) | ($66) |
REPOSITIONING_AND_OTHER_CHARGE6
REPOSITIONING AND OTHER CHARGES 5 (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Restructuring Reserve [Line Items] | |||
Balance at beginning of period, | $347,000,000 | $323,000,000 | $412,000,000 |
Charges | 184,000,000 | 231,000,000 | 119,000,000 |
Usage (cash - Severance & Exit Costs) | -161,000,000 | -160,000,000 | -136,000,000 |
Usage (non-Cash - Asset Impairment) | -12,000,000 | -23,000,000 | -12,000,000 |
Foreign currency translation adjustment | -5,000,000 | 6,000,000 | 6,000,000 |
Adjustments | -38,000,000 | -30,000,000 | -66,000,000 |
Balance at end of period, | 315,000,000 | 347,000,000 | 323,000,000 |
Severance Costs [Member] | |||
Restructuring Reserve [Line Items] | |||
Balance at beginning of period, | 302,000,000 | 276,000,000 | 353,000,000 |
Charges | 156,000,000 | 186,000,000 | 91,000,000 |
Usage (cash - Severance & Exit Costs) | -135,000,000 | -139,000,000 | -113,000,000 |
Usage (non-Cash - Asset Impairment) | 0 | 0 | 0 |
Foreign currency translation adjustment | -5,000,000 | 6,000,000 | 6,000,000 |
Adjustments | -33,000,000 | -27,000,000 | -61,000,000 |
Balance at end of period, | 285,000,000 | 302,000,000 | 276,000,000 |
Tangible And Intangible Asset Impairment [Member] | |||
Restructuring Reserve [Line Items] | |||
Balance at beginning of period, | 0 | 0 | 0 |
Charges | 12,000,000 | 23,000,000 | 12,000,000 |
Usage (cash - Severance & Exit Costs) | 0 | 0 | 0 |
Usage (non-Cash - Asset Impairment) | -12,000,000 | -23,000,000 | -12,000,000 |
Foreign currency translation adjustment | 0 | 0 | 0 |
Adjustments | 0 | 0 | 0 |
Balance at end of period, | 0 | 0 | 0 |
Exit Costs [Member] | |||
Restructuring Reserve [Line Items] | |||
Balance at beginning of period, | 45,000,000 | 47,000,000 | 59,000,000 |
Charges | 16,000,000 | 22,000,000 | 16,000,000 |
Usage (cash - Severance & Exit Costs) | -26,000,000 | -21,000,000 | -23,000,000 |
Usage (non-Cash - Asset Impairment) | 0 | 0 | 0 |
Foreign currency translation adjustment | 0 | 0 | 0 |
Adjustments | -5,000,000 | -3,000,000 | -5,000,000 |
Balance at end of period, | $30,000,000 | $45,000,000 | $47,000,000 |
OTHER_INCOME_EXPENSE_Details
OTHER (INCOME) EXPENSE (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Other Income Disclosure Nonoperating Abstract | |||
Equity (income) loss of affiliated companies | ($36,000,000) | ($36,000,000) | ($45,000,000) |
Gain on sale of available for sale investments | -221,000,000 | -195,000,000 | 0 |
Loss (gain) on sale of non-strategic businesses and assets | 11,000,000 | 20,000,000 | -5,000,000 |
Interest Income | -102,000,000 | -69,000,000 | -58,000,000 |
Foreign exchange | 34,000,000 | 34,000,000 | 36,000,000 |
Other expense | 9,000,000 | 8,000,000 | 2,000,000 |
Other (Income) Expense, Total | -305,000,000 | -238,000,000 | -70,000,000 |
Other Income Expense Paragraph Details [Line Items] | |||
Gain on sale of available for sale investments | ($221,000,000) | ($195,000,000) | $0 |
INCOME_TAX_Details
INCOME TAX (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income From Continuing Operations Before Taxes [Abstract] | |||
U.S. | $3,340 | $3,002 | $1,761 |
Non-U.S. | 2,478 | 2,410 | 2,114 |
Income from continuing operations before taxes | 5,818 | 5,412 | 3,875 |
Current [Abstract] | |||
U.S. | 746 | 663 | 470 |
U.S. State | 39 | 97 | 10 |
Non-U.S. | 572 | 428 | 380 |
Current tax expense | 1,357 | 1,188 | 860 |
Deferred [Abstract] | |||
U.S. | 114 | 160 | 85 |
U.S. State | 63 | 72 | 19 |
Non-U.S. | -45 | 30 | -20 |
Deferred tax expense (benefit) | 132 | 262 | 84 |
Tax expense | $1,489 | $1,450 | $944 |
INCOME_TAX_2_Details
INCOME TAX 2 (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Effective Income Tax Rate Reconciliation [Abstract] | |||
U.S. federal statutory income tax rate | 35.00% | 35.00% | 35.00% |
Taxes on non-U.S. earnings below U.S. tax rate | -7.00% | -7.20% | -7.10% |
State income taxes | 1.20% | 1.80% | 0.80% |
Manufacturing incentives | -1.00% | -0.90% | -1.70% |
ESOP dividend tax benefit | -0.40% | -0.50% | -0.60% |
Tax credits | -1.00% | -1.80% | -0.40% |
Reserves for tax contingencies | -0.20% | 0.60% | -0.40% |
All other items net | -1.00% | -0.20% | -1.20% |
Effective income tax rate | 25.60% | 26.80% | 24.40% |
Tax Expense Paragraph Details [Abstract] | |||
Net (decrease) increase in the effective tax rate from prior period | -1.20% | 2.40% | |
Net (decrease) increase in non-U.S. income tax rate | 2.30% | 2.00% | |
U.S. federal statutory income tax rate | 35.00% | 35.00% | 35.00% |
Non-U.S. effective income tax rate | 21.30% | 19.00% |
INCOME_TAX_3_Details
INCOME TAX 3 (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Deferred Tax Assets, Net [Abstract] | ||
Pension | $573 | $32 |
Postretirement benefits other than pensions | 441 | 499 |
Asbestos and environmental | 477 | 437 |
Employee compensation and benefits | 387 | 382 |
Other accruals and reserves | 672 | 702 |
Net operating and capital losses | 639 | 838 |
Tax credit carryforwards | 199 | 266 |
Gross deferred tax assets | 3,388 | 3,156 |
Valuation allowance | -560 | -614 |
Total deferred tax assets | 2,828 | 2,542 |
Deferred Tax Liabilities Net [Abstract] | ||
Property, plant and equipment | -612 | -654 |
Intangibles | -1,060 | -1,126 |
Other asset basis differences | -286 | -350 |
Other | -7 | -22 |
Total deferred tax liabilities | -1,965 | -2,152 |
Net deferred taxes | $863 | $390 |
INCOME_TAX_4_Details
INCOME TAX 4 (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Operating Loss Carryforwards [Line Items] | ||||
Operating Loss Carryforwards | $4,664,000,000 | |||
Tax Credit Carryforward Amount | 234,000,000 | |||
Undistributed non-U.S. earnings | 15,000,000,000 | |||
Valuation Allowance Deferred Tax Asset Change in Amount | -54,000,000 | 16,000,000 | 7,000,000 | |
Valuation Allowance Deferred Tax Asset Explanation of Change | The net deferred tax assets are included as components of Current and Non-Current Deferred Income Taxes and Accrued Liabilities within the Consolidated Balance Sheet. Our net deferred tax asset of $863 million consists of $305 million related to non-U.S. operations which are comprised principally of net deductible temporary differences and net operating loss, capital loss and tax credit carryforwards (mainly in Canada and the United Kingdom). We maintain a valuation allowance of $557 million against a portion of the non-U.S. gross deferred tax assets. Our valuation allowance decreased by $54 million in 2014, increased by $16 million in 2013 and increased by $7 million in 2012. The amount of the change in the valuation allowance that was credited to income tax expense for 2014 was $10 million and the amounts charged to income tax expense for 2013 and 2012 were $49 million and $18 million, respectively. In the event we determine that we will not be able to realize our net deferred tax assets in the future, we will reduce such amounts through a charge to income in the period such determination is made. Conversely, if we determine that we will be able to realize net deferred tax assets in excess of the carrying amounts, we will decrease the recorded valuation allowance through a credit to income tax expense in the period that such determination is made. | |||
Unrecognized Tax Benefits | 659,000,000 | 729,000,000 | 722,000,000 | 815,000,000 |
Unrecognized Tax Benefits Possible Impact To Tax Expense | 10,000,000 | 49,000,000 | 18,000,000 | |
Deferred Tax Assets Liabilities Net | 863,000,000 | 390,000,000 | ||
Valuation allowance | -560,000,000 | -614,000,000 | ||
U.S. Federal | 2032 [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating Loss Carryforwards | 1,000,000 | |||
Operating Loss Carryforward Expiration Dates | 31-Dec-32 | |||
Tax Credit Carryforward Amount | 51,000,000 | |||
Tax Credit Carryforward Expiration Dates | 31-Dec-32 | |||
Non-U.S. | ||||
Operating Loss Carryforwards [Line Items] | ||||
Deferred Tax Assets Liabilities Net | 305,000,000 | |||
Valuation allowance | -557,000,000 | |||
Non-U.S. | 2034 [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating Loss Carryforwards | 2,463,000,000 | |||
Operating Loss Carryforward Expiration Dates | 31-Dec-34 | |||
Tax Credit Carryforward Amount | 148,000,000 | |||
Tax Credit Carryforward Expiration Dates | 31-Dec-34 | |||
U.S. State | 2034 [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating Loss Carryforwards | 2,200,000,000 | |||
Operating Loss Carryforward Expiration Dates | 31-Dec-34 | |||
Tax Credit Carryforward Amount | $35,000,000 | |||
Tax Credit Carryforward Expiration Dates | 31-Dec-34 |
INCOME_TAX_5_Details
INCOME TAX 5 (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reconciliation of Unrecognized Tax Benefits [Table] | |||
Balance at beginning of year | $729 | $722 | $815 |
Gross increases related to current period tax positions | 65 | 41 | 25 |
Gross increases related to prior periods tax positions | 204 | 118 | 44 |
Gross decreases related to prior periods tax positions | -277 | -21 | -62 |
Decrease related to resolutions of audits with tax authorities | -32 | -92 | -40 |
Expiration of the statue of limitations for the assessment of taxes | -10 | -30 | -64 |
Foreign currency translation | -20 | -9 | 4 |
Balance at end of year | $659 | $729 | $722 |
INCOME_TAX_6_Details
INCOME TAX 6 (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Examination Paragraph Details [Abstract] | |||
Income tax Examination Unrecognized Tax Benefits From Examination | $403 | $431 | $443 |
Income Tax Examination Estimated Interest and Penalties From Examination | 24 | 17 | 37 |
Income Tax Examination Accrued Interest and Penalties From Examination | $325 | $301 | $284 |
U.S. - Federal [Member] | 2010 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations In Progress, Years | 2010 | ||
U.S. - Federal [Member] | 2011 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations In Progress, Years | 2011 | ||
U.S. - Federal [Member] | 2012 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations In Progress, Years | 2012 | ||
U.S. - Federal [Member] | 2013 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations In Progress, Years | 2013 | ||
Income Tax Examinations Not Yet Initiated Years | 2013 | ||
U.S. - Federal [Member] | 2014 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations Not Yet Initiated Years | 2014 | ||
U.S. - State [Member] | 2006 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations Not Yet Initiated Years | 2006 | ||
U.S. - State [Member] | 2007 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations In Progress, Years | 2007 | ||
Income Tax Examinations Not Yet Initiated Years | 2007 | ||
U.S. - State [Member] | 2008 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations In Progress, Years | 2008 | ||
Income Tax Examinations Not Yet Initiated Years | 2008 | ||
U.S. - State [Member] | 2009 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations In Progress, Years | 2009 | ||
Income Tax Examinations Not Yet Initiated Years | 2009 | ||
U.S. - State [Member] | 2010 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations In Progress, Years | 2010 | ||
Income Tax Examinations Not Yet Initiated Years | 2010 | ||
U.S. - State [Member] | 2011 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations In Progress, Years | 2011 | ||
Income Tax Examinations Not Yet Initiated Years | 2011 | ||
U.S. - State [Member] | 2012 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations In Progress, Years | 2012 | ||
Income Tax Examinations Not Yet Initiated Years | 2012 | ||
U.S. - State [Member] | 2013 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations In Progress, Years | 2013 | ||
Income Tax Examinations Not Yet Initiated Years | 2013 | ||
U.S. - State [Member] | 2014 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations Not Yet Initiated Years | 2014 | ||
United Kingdom [Member] | 2012 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations Not Yet Initiated Years | 2012 | ||
United Kingdom [Member] | 2013 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations Not Yet Initiated Years | 2013 | ||
United Kingdom [Member] | 2014 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations Not Yet Initiated Years | 2014 | ||
Canada [Member] | 2007 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations In Progress, Years | 2007 | ||
Canada [Member] | 2008 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations In Progress, Years | 2008 | ||
Canada [Member] | 2009 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations In Progress, Years | 2009 | ||
Canada [Member] | 2010 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations In Progress, Years | 2010 | ||
Canada [Member] | 2011 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations In Progress, Years | 2011 | ||
Canada [Member] | 2012 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations In Progress, Years | 2012 | ||
Canada [Member] | 2013 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations In Progress, Years | 2013 | ||
Canada [Member] | 2014 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations Not Yet Initiated Years | 2014 | ||
Germany [Member] | 2006 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations In Progress, Years | 2006 | ||
Germany [Member] | 2007 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations In Progress, Years | 2007 | ||
Germany [Member] | 2008 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations In Progress, Years | 2008 | ||
Germany [Member] | 2009 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations In Progress, Years | 2009 | ||
Germany [Member] | 2010 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations In Progress, Years | 2010 | ||
Germany [Member] | 2011 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations In Progress, Years | 2011 | ||
Germany [Member] | 2012 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations In Progress, Years | 2012 | ||
Germany [Member] | 2013 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations Not Yet Initiated Years | 2013 | ||
Germany [Member] | 2014 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations Not Yet Initiated Years | 2014 | ||
France [Member] | 2004 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations Not Yet Initiated Years | 2004 | ||
France [Member] | 2005 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations Not Yet Initiated Years | 2005 | ||
France [Member] | 2006 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations Not Yet Initiated Years | 2006 | ||
France [Member] | 2007 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations Not Yet Initiated Years | 2007 | ||
France [Member] | 2008 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations In Progress, Years | 2008 | ||
France [Member] | 2009 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations In Progress, Years | 2009 | ||
France [Member] | 2010 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations In Progress, Years | 2010 | ||
France [Member] | 2011 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations In Progress, Years | 2011 | ||
France [Member] | 2012 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations In Progress, Years | 2012 | ||
France [Member] | 2013 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations In Progress, Years | 2013 | ||
France [Member] | 2014 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations Not Yet Initiated Years | 2014 | ||
Netherlands [Member] | 2009 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations In Progress, Years | 2009 | ||
Netherlands [Member] | 2010 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations Not Yet Initiated Years | 2010 | ||
Netherlands [Member] | 2011 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations Not Yet Initiated Years | 2011 | ||
Netherlands [Member] | 2012 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations Not Yet Initiated Years | 2012 | ||
Netherlands [Member] | 2013 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations Not Yet Initiated Years | 2013 | ||
Netherlands [Member] | 2014 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations Not Yet Initiated Years | 2014 | ||
Australia [Member] | 2009 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations Not Yet Initiated Years | 2009 | ||
Australia [Member] | 2010 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations Not Yet Initiated Years | 2010 | ||
Australia [Member] | 2011 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations Not Yet Initiated Years | 2011 | ||
Australia [Member] | 2012 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations Not Yet Initiated Years | 2012 | ||
Australia [Member] | 2013 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations Not Yet Initiated Years | 2013 | ||
Australia [Member] | 2014 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations Not Yet Initiated Years | 2014 | ||
China [Member] | 2003 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations In Progress, Years | 2003 | ||
China [Member] | 2004 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations In Progress, Years | 2004 | ||
China [Member] | 2005 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations In Progress, Years | 2005 | ||
China [Member] | 2006 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations In Progress, Years | 2006 | ||
China [Member] | 2007 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations In Progress, Years | 2007 | ||
China [Member] | 2008 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations In Progress, Years | 2008 | ||
China [Member] | 2009 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations In Progress, Years | 2009 | ||
China [Member] | 2010 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations In Progress, Years | 2010 | ||
China [Member] | 2011 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations In Progress, Years | 2011 | ||
China [Member] | 2012 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations In Progress, Years | 2012 | ||
China [Member] | 2013 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations Not Yet Initiated Years | 2013 | ||
China [Member] | 2014 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations Not Yet Initiated Years | 2014 | ||
India [Member] | 1999 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations In Progress, Years | 1999 | ||
India [Member] | 2000 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations In Progress, Years | 2000 | ||
India [Member] | 2001 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations In Progress, Years | 2001 | ||
India [Member] | 2002 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations In Progress, Years | 2002 | ||
India [Member] | 2003 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations In Progress, Years | 2003 | ||
India [Member] | 2004 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations In Progress, Years | 2004 | ||
India [Member] | 2005 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations In Progress, Years | 2005 | ||
India [Member] | 2006 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations In Progress, Years | 2006 | ||
India [Member] | 2007 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations In Progress, Years | 2007 | ||
India [Member] | 2008 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations In Progress, Years | 2008 | ||
India [Member] | 2009 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations In Progress, Years | 2009 | ||
India [Member] | 2010 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations In Progress, Years | 2010 | ||
India [Member] | 2011 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations In Progress, Years | 2011 | ||
India [Member] | 2012 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations In Progress, Years | 2012 | ||
India [Member] | 2013 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations Not Yet Initiated Years | 2013 | ||
India [Member] | 2014 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations Not Yet Initiated Years | 2014 | ||
Italy [Member] | 2008 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations In Progress, Years | 2008 | ||
Italy [Member] | 2009 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations In Progress, Years | 2009 | ||
Italy [Member] | 2010 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations In Progress, Years | 2010 | ||
Italy [Member] | 2011 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations In Progress, Years | 2011 | ||
Italy [Member] | 2012 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations In Progress, Years | 2012 | ||
Italy [Member] | 2013 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations In Progress, Years | 2013 | ||
Italy [Member] | 2014 | |||
Income Tax Examination [Line Items] | |||
Income Tax Examinations Not Yet Initiated Years | 2014 |
EARNINGS_LOSS_PER_SHARE_Detail
EARNINGS (LOSS) PER SHARE (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share [Abstract] | |||||||||||
Net income attributable to Honeywell | $956 | $1,167 | $1,099 | $1,017 | $947 | $990 | $1,021 | $966 | $4,239 | $3,924 | $2,926 |
Weighted average shares outstanding | 784.4 | 786.4 | 782.4 | ||||||||
Earnings per share of common stock - basic | $1.22 | $1.49 | $1.40 | $1.30 | $1.20 | $1.26 | $1.30 | $1.23 | $5.40 | $4.99 | $3.74 |
Assuming dilution | |||||||||||
Net income attributable to Honeywell | $956 | $1,167 | $1,099 | $1,017 | $947 | $990 | $1,021 | $966 | $4,239 | $3,924 | $2,926 |
Average shares | |||||||||||
Weighted average shares outstanding | 784.4 | 786.4 | 782.4 | ||||||||
Dilutive securities issuable - stock plans | 10.8 | 10.9 | 9.5 | ||||||||
Total weighted average diluted shares outstanding | 795.2 | 797.3 | 791.9 | ||||||||
Earnings per share - assuming dilution | $1.20 | $1.47 | $1.38 | $1.28 | $1.19 | $1.24 | $1.28 | $1.21 | $5.33 | $4.92 | $3.69 |
Earnings Per Share Paragraph Details [Abstract] | |||||||||||
Stock options excluded from diluted computations | 4.7 | 2.2 | 12.5 |
ACCOUNTS_NOTES_AND_OTHER_RECEI2
ACCOUNTS, NOTES AND OTHER RECEIVABLES (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Accounts Receivable, Net Current [Abstract] | ||
Trade | $7,788 | $7,530 |
Other | 445 | 646 |
Accounts receivable, Gross | 8,233 | 8,176 |
Less - Allowance for doubtful accounts | -273 | -247 |
Accounts receivable, Net | 7,960 | 7,929 |
Accounts Notes, And Other Receivables Paragraph Details [Abstract] | ||
Unbilled contract receivable | $1,636 | $1,609 |
INVENTORIES_Details
INVENTORIES (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Inventories Paragraph Details [Abstract] | ||
LIFO inventory amount | $434 | $405 |
LIFO reserve | 168 | 166 |
Inventory Combining Work In Process And Raw Materials Alternative Gross Abstract | ||
Raw materials | 1,124 | 1,121 |
Work in process | 815 | 841 |
Finished products | 2,634 | 2,497 |
Inventory, Gross | 4,573 | 4,459 |
Reduction to LIFO cost basis | -168 | -166 |
Inventories | $4,405 | $4,293 |
PROPERTY_PLANT_AND_EQUIPMENT_D
PROPERTY, PLANT AND EQUIPMENT (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment Paragraph Details [Abstract] | |||
Depreciation | $667 | $670 | $660 |
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 14,502 | 14,617 | |
Less: Accumulated depreciation | -9,119 | -9,339 | |
Property, plant and equipment - net | 5,383 | 5,278 | |
Land and improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 343 | 376 | |
Machinery and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 10,313 | 10,437 | |
Buildings and improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 3,119 | 3,157 | |
Construction in Progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $727 | $647 |
GOODWILL_AND_OTHER_INTANGIBLE_
GOODWILL AND OTHER INTANGIBLE ASSETS - NET (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Finite And Indefinite Other Intangible Assets [Abstract] | |||
Trademarks with indefinite lives | $706,000,000 | $720,000,000 | |
Gross carrying amount | 4,455,000,000 | 4,550,000,000 | |
Accumulated Amortization | -2,247,000,000 | -2,036,000,000 | |
Net carrying amount | 2,208,000,000 | 2,514,000,000 | |
Finite Lived Intangible Assets Future Amortization Expense Abstract | |||
Future Amortization Expense - 2015 | -208,000,000 | ||
Future Amortization Expense - 2016 | -183,000,000 | ||
Future Amortization Expense - 2017 | -173,000,000 | ||
Future Amortization Expense - 2018 | -157,000,000 | ||
Future Amortization Expense - 2019 | -143,000,000 | ||
Goodwill and Intangible Assets Paragraph Details [Abstract] | |||
Amortization of intangible assets | 257,000,000 | 319,000,000 | 266,000,000 |
Finite-Lived Intangible Assets [Line Items] | |||
Finite Lived Intangible Assets Gross | 3,749,000,000 | 3,830,000,000 | |
Accumulated Amortization | -2,247,000,000 | -2,036,000,000 | |
Net Carrying Amount | 1,502,000,000 | 1,794,000,000 | |
Goodwill [Line Items] | |||
Balance at beginning of period, | 13,046,000,000 | ||
Acquisitions/divestitures | 8,000,000 | ||
Currency Translation Adjustment | -266,000,000 | ||
Balance at end of period, | 12,788,000,000 | 13,046,000,000 | |
Aerospace [Member] | |||
Goodwill [Line Items] | |||
Balance at beginning of period, | 2,273,000,000 | ||
Acquisitions/divestitures | -4,000,000 | ||
Currency Translation Adjustment | -11,000,000 | ||
Balance at end of period, | 2,258,000,000 | ||
Automation and Control Solutions [Member] | |||
Goodwill [Line Items] | |||
Balance at beginning of period, | 8,006,000,000 | ||
Acquisitions/divestitures | 12,000,000 | ||
Currency Translation Adjustment | -194,000,000 | ||
Balance at end of period, | 7,824,000,000 | ||
Performance Materials And Technologies [Member] | |||
Goodwill [Line Items] | |||
Balance at beginning of period, | 2,767,000,000 | ||
Acquisitions/divestitures | 0 | ||
Currency Translation Adjustment | -61,000,000 | ||
Balance at end of period, | 2,706,000,000 | ||
Patents and Technology [Member] | |||
Finite And Indefinite Other Intangible Assets [Abstract] | |||
Accumulated Amortization | -1,005,000,000 | -935,000,000 | |
Finite-Lived Intangible Assets [Line Items] | |||
Finite Lived Intangible Assets Gross | 1,400,000,000 | 1,438,000,000 | |
Accumulated Amortization | -1,005,000,000 | -935,000,000 | |
Net Carrying Amount | 395,000,000 | 503,000,000 | |
Customer Relationships [Member] | |||
Finite And Indefinite Other Intangible Assets [Abstract] | |||
Accumulated Amortization | -857,000,000 | -749,000,000 | |
Finite-Lived Intangible Assets [Line Items] | |||
Finite Lived Intangible Assets Gross | 1,867,000,000 | 1,904,000,000 | |
Accumulated Amortization | -857,000,000 | -749,000,000 | |
Net Carrying Amount | 1,010,000,000 | 1,155,000,000 | |
Trademarks [Member] | |||
Finite And Indefinite Other Intangible Assets [Abstract] | |||
Accumulated Amortization | -125,000,000 | -118,000,000 | |
Finite-Lived Intangible Assets [Line Items] | |||
Finite Lived Intangible Assets Gross | 191,000,000 | 194,000,000 | |
Accumulated Amortization | -125,000,000 | -118,000,000 | |
Net Carrying Amount | 66,000,000 | 76,000,000 | |
Other Intangible Assets [Member] | |||
Finite And Indefinite Other Intangible Assets [Abstract] | |||
Accumulated Amortization | -260,000,000 | -234,000,000 | |
Finite-Lived Intangible Assets [Line Items] | |||
Finite Lived Intangible Assets Gross | 291,000,000 | 294,000,000 | |
Accumulated Amortization | -260,000,000 | -234,000,000 | |
Net Carrying Amount | $31,000,000 | $60,000,000 |
ACCRUED_LIABILITIES_Details
ACCRUED LIABILITIES (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Accrued Liabilities Current [Abstract] | ||
Compensation, benefit and other employee related | $1,476 | $1,506 |
Customer advances and deferred income | 2,094 | 2,172 |
Asbestos related liabilities | 352 | 461 |
Repositioning | 284 | 303 |
Product warranties and performance guarantees | 332 | 323 |
Environmental costs | 278 | 304 |
Income taxes | 261 | 240 |
Accrued interest | 101 | 100 |
Other taxes (payroll, sales, VAT etc) | 243 | 249 |
Insurance | 264 | 255 |
Other (primarily operating expenses) | 1,086 | 1,066 |
Accrued Liabilities | $6,771 | $6,979 |
LONGTERM_DEBT_AND_CREDIT_AGREE2
LONG-TERM DEBT AND CREDIT AGREEMENTS (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Debt Instrument [Line Items] | ||
Total long-term debt, including current portion | $6,985,000,000 | $7,433,000,000 |
Less current portion | -939,000,000 | -632,000,000 |
Total Noncurrent Debt | 6,046,000,000 | 6,801,000,000 |
Long Term Debt By Maturity [Abstract] | ||
2015 | 939,000,000 | |
2016 | 485,000,000 | |
2017 | 477,000,000 | |
2018 | 904,000,000 | |
2019 | 903,000,000 | |
Thereafter | 3,277,000,000 | |
Total long-term debt, including current portion | 6,985,000,000 | 7,433,000,000 |
Less current portion | -939,000,000 | -632,000,000 |
Total Long-term debt | 6,046,000,000 | 6,801,000,000 |
Notes 3.875% due 2014 [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes | 0 | 600,000,000 |
Various interest rates | 3.88% | |
Maturity date of debt instrument | 15-Feb-14 | |
Floating Rate Notes Due 2015 [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes | 700,000,000 | 700,000,000 |
Maturity date of debt instrument | 17-Nov-15 | |
Notes 5.40% due 2016 [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes | 400,000,000 | 400,000,000 |
Various interest rates | 5.40% | |
Maturity date of debt instrument | 15-Mar-16 | |
Notes 5.30% due 2017 [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes | 400,000,000 | 400,000,000 |
Various interest rates | 5.30% | |
Maturity date of debt instrument | 15-Mar-17 | |
Notes 5.30% due 2018 [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes | 900,000,000 | 900,000,000 |
Various interest rates | 5.30% | |
Maturity date of debt instrument | 1-Mar-18 | |
Notes 5.00% due 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes | 900,000,000 | 900,000,000 |
Various interest rates | 5.00% | |
Maturity date of debt instrument | 15-Feb-19 | |
Notes 4.25% due 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes | 800,000,000 | 800,000,000 |
Various interest rates | 4.25% | |
Maturity date of debt instrument | 1-Mar-21 | |
Notes 3.35% due 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes | 300,000,000 | 300,000,000 |
Various interest rates | 3.35% | |
Maturity date of debt instrument | 1-Dec-23 | |
Notes 5.375% Due 2041 [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes | 600,000,000 | 600,000,000 |
Various interest rates | 5.38% | |
Maturity date of debt instrument | 1-Mar-41 | |
Industrial development bond obligations, floating rate maturing at various dates through 2037 [Member] | ||
Debt Instrument [Line Items] | ||
Industrial development bond | 30,000,000 | 35,000,000 |
Maturity date of debt instrument | 31-Dec-37 | |
Debentures 6.625% due 2028 [Member] | ||
Debt Instrument [Line Items] | ||
Debentures | 216,000,000 | 216,000,000 |
Interest rate range minimum | 6.63% | |
Maturity date of debt instrument | 15-Jun-28 | |
Debentures 9.065% due 2033 [Member] | ||
Debt Instrument [Line Items] | ||
Debentures | 51,000,000 | 51,000,000 |
Various interest rates | 9.07% | |
Maturity date of debt instrument | 1-Jun-33 | |
Notes 5.70% due 2036 [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes | 550,000,000 | 550,000,000 |
Various interest rates | 5.70% | |
Maturity date of debt instrument | 15-Mar-36 | |
Notes 5.70% due 2037 [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes | 600,000,000 | 600,000,000 |
Various interest rates | 5.70% | |
Maturity date of debt instrument | 15-Mar-37 | |
Other including capitalized leases, .6% to 9.5% maturing at various dates through 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Other long term debt | $538,000,000 | $381,000,000 |
Interest rate range minimum | 0.60% | |
Interest rate range maximum | 9.50% | |
Maturity date of debt instrument | 31-Dec-23 |
LEASE_COMMITMENTS_Details
LEASE COMMITMENTS (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Leases Operating [Abstract] | |||
Rent expense | $420 | $404 | $390 |
Operating Leases Future Minimum Payments Due Abstract | |||
2015 | 330 | ||
2016 | 268 | ||
2017 | 202 | ||
2018 | 133 | ||
2019 | 91 | ||
Thereafter | 257 | ||
Total | $1,281 |
FINANCIAL_INSTRUMENTS_AND_FAIR2
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASURES (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Foreign Currency Exchange Contracts [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $7,291 | $7,298 |
Interest Rate Swap Agreements [Member] | ||
Derivative [Line Items] | ||
Fixed Rate Debt Percent changed to LIBOR | 4.00% | 3.96% |
Amount of fixed rate debt | $1,100 | $1,700 |
FINANCIAL_INSTRUMENTS_AND_FAIR3
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASURES 2 (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Significant Observable Inputs (Level 2) | Foreign Currency Exchange Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Fair Value Of Derivative Asset | $20,000,000 | $20,000,000 |
Derivative Fair Value Of Derivative Liability | 10,000,000 | 27,000,000 |
Significant Observable Inputs (Level 2) | Interest Rate Swap Agreements [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Fair Value Of Derivative Asset | 93,000,000 | 63,000,000 |
Derivative Fair Value Of Derivative Liability | 0 | 8,000,000 |
Fair Value Inputs, Level 1 | Available-for-sale Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale investments | $1,479,000,000 | $826,000,000 |
FINANCIAL_INSTRUMENTS_AND_FAIR4
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASURES 3 (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Long-term receivables | $297 | $250 |
Long-term debt and related current maturities | 6,985 | 7,433 |
Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Long-term receivables | 293 | 245 |
Long-term debt and related current maturities | $7,817 | $8,066 |
FINANCIAL_INSTRUMENTS_AND_FAIR5
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASURES 4 (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Cash Flow Hedge Gain Loss Reclassified To Income Statement Locations Paragraph Details [Abstract] | ||
Gain (Loss) on interest rate swap agreements | $38 | ($91) |
Foreign Exchange Mark to Market income (expense) | ($181) | $162 |
OTHER_LIABILITIES_Details
OTHER LIABILITIES (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Other Liabilities Noncurrent [Abstract] | ||
Pension and other employee related | $2,497 | $1,756 |
Environmental | 313 | 339 |
Income taxes | 764 | 952 |
Insurance | 253 | 241 |
Asset retirement obligations | 67 | 68 |
Deferred income | 93 | 44 |
Other | 295 | 334 |
Total other liabilities | $4,282 | $3,734 |
CAPITAL_STOCK_Details
CAPITAL STOCK (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Capital Stock Paragraph Details [Abstract] | ||
Common stock shares authorized | 2,000,000,000 | |
Common Shares par value | $1 | |
Authorized Amount Of Common Stock Value Of Share Repurchase Program | $5,000,000,000 | |
Stock Repurchase Program Remaining Authorized Repurchase Amount | 4,100,000,000 | 5,000,000,000 |
Preferred Stock Shares Authorized | 40,000,000 | |
Reacquired stock or repurchases of common stock | $924,000,000 | $1,073,000,000 |
Stock Repurchased During Period Shares | 10,000,000 | 13,500,000 |
ACCUMULATED_OTHER_COMPREHENSIV2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Accumulated Other Comprehensive Income Loss [Abstract] | |||
Cumulative foreign exchange translation adjustment | ($740,000,000) | $304,000,000 | |
Pension and other postretirement benefit adjustments | -728,000,000 | 355,000,000 | |
Fair value of available for sale investments | 0 | 170,000,000 | |
Fair value of effective cash flow hedges | 9,000,000 | -11,000,000 | |
Accumulated Other Comprehensive Income (Loss) | -1,459,000,000 | 818,000,000 | -1,339,000,000 |
Other Comprehensive Income Loss Before Tax Period Increase Decrease [Abstract] | |||
Foreign exchange translation adjustment | -1,044,000,000 | -52,000,000 | 282,000,000 |
Pension and other postretirement benefit adjustments | -1,707,000,000 | 3,514,000,000 | -285,000,000 |
Changes in fair value of available for sale investments | -246,000,000 | 30,000,000 | 54,000,000 |
Changes in fair value of effective cash flow hedges | 24,000,000 | -14,000,000 | 35,000,000 |
Changes in accumulated other comprehensive income, pretax | -2,973,000,000 | 3,478,000,000 | 86,000,000 |
Other Comprehensive Income Loss Tax [Abstract] | |||
Foreign exchange translation adjustment | 0 | 0 | 0 |
Pensions and other postretirement benefit adjustments | 624,000,000 | -1,311,000,000 | 87,000,000 |
Changes in fair value of available for sale investments | 76,000,000 | -17,000,000 | -60,000,000 |
Changes in fair value of effective cash flow hedges | -4,000,000 | 7,000,000 | -8,000,000 |
Other comprehensive income (loss), tax | 696,000,000 | -1,321,000,000 | 19,000,000 |
Other Comprehensive Income Loss Net Of Tax Period Increase Decrease Abstract | |||
Foreign exchange translation adjustment | -1,044,000,000 | -52,000,000 | 282,000,000 |
Pensions and other postretirement benefit adjustments | -1,083,000,000 | 2,203,000,000 | -198,000,000 |
Changes in fair value of available for sale investments | -170,000,000 | 13,000,000 | -6,000,000 |
Changes in fair value of effective cash flow hedges | 20,000,000 | -7,000,000 | 27,000,000 |
Components of other comprehensive income (loss), net of tax | ($2,277,000,000) | $2,157,000,000 | $105,000,000 |
ACCUMULATED_OTHER_COMPREHENSIV3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) 2 (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Balance beginning of period December 31 | $818,000,000 | ($1,339,000,000) | |
Other comprehensive income (loss) before reclassifications | -2,293,000,000 | 2,219,000,000 | |
Amounts reclassified from accumulated other comprehensive income | 16,000,000 | -62,000,000 | |
Net current period other comprehensive income (loss) | -2,277,000,000 | 2,157,000,000 | 105,000,000 |
Balance end of period | -1,459,000,000 | 818,000,000 | -1,339,000,000 |
Foreign Exchange Translation Adjustment [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Balance beginning of period December 31 | 304,000,000 | 356,000,000 | |
Other comprehensive income (loss) before reclassifications | -1,044,000,000 | -52,000,000 | |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | |
Net current period other comprehensive income (loss) | -1,044,000,000 | -52,000,000 | |
Balance end of period | -740,000,000 | 304,000,000 | |
Pension and Other Postretirement Adjustments [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Balance beginning of period December 31 | 355,000,000 | -1,848,000,000 | |
Other comprehensive income (loss) before reclassifications | -1,284,000,000 | 2,161,000,000 | |
Amounts reclassified from accumulated other comprehensive income | 201,000,000 | 42,000,000 | |
Net current period other comprehensive income (loss) | -1,083,000,000 | 2,203,000,000 | |
Balance end of period | -728,000,000 | 355,000,000 | |
Changes in Fair Value of Available for Sale Investments [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Balance beginning of period December 31 | 170,000,000 | 157,000,000 | |
Other comprehensive income (loss) before reclassifications | 15,000,000 | 140,000,000 | |
Amounts reclassified from accumulated other comprehensive income | -185,000,000 | -127,000,000 | |
Net current period other comprehensive income (loss) | -170,000,000 | 13,000,000 | |
Balance end of period | 0 | 170,000,000 | |
Changes in Fair Value of Effective Cash Flow Hedges | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Balance beginning of period December 31 | -11,000,000 | -4,000,000 | |
Other comprehensive income (loss) before reclassifications | 20,000,000 | -30,000,000 | |
Amounts reclassified from accumulated other comprehensive income | 0 | 23,000,000 | |
Net current period other comprehensive income (loss) | 20,000,000 | -7,000,000 | |
Balance end of period | $9,000,000 | ($11,000,000) |
ACCUMULATED_OTHER_COMPREHENSIV4
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) 3 (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Product sales | ($32,398,000,000) | ($31,214,000,000) | ($29,812,000,000) |
Cost of products sold | 23,889,000,000 | 23,317,000,000 | 22,929,000,000 |
Cost of services sold | 5,068,000,000 | 5,047,000,000 | 5,362,000,000 |
Selling, general and administrative expenses | 5,518,000,000 | 5,190,000,000 | 5,218,000,000 |
Other (income) expense | -305,000,000 | -238,000,000 | -70,000,000 |
Total | -5,818,000,000 | -5,412,000,000 | -3,875,000,000 |
Tax expense | 1,489,000,000 | 1,450,000,000 | 944,000,000 |
Total reclassification for the period, net of tax | -4,329,000,000 | -3,962,000,000 | -2,931,000,000 |
Reclassification Out Of Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Product sales | -5,000,000 | 7,000,000 | |
Cost of products sold | 200,000,000 | 46,000,000 | |
Cost of services sold | 38,000,000 | 9,000,000 | |
Selling, general and administrative expenses | 47,000,000 | 19,000,000 | |
Other (income) expense | -221,000,000 | -195,000,000 | |
Total | 59,000,000 | -114,000,000 | |
Tax expense | -43,000,000 | 52,000,000 | |
Total reclassification for the period, net of tax | 16,000,000 | -62,000,000 | |
Reclassification Out Of Accumulated Other Comprehensive Income [Member] | (Gains)/losses on cash flow hedges | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Product sales | -5,000,000 | 7,000,000 | |
Cost of products sold | 0 | 5,000,000 | |
Cost of services sold | 0 | 0 | |
Selling, general and administrative expenses | 5,000,000 | 11,000,000 | |
Other (income) expense | 0 | 0 | |
Total | 0 | 23,000,000 | |
Reclassification Out Of Accumulated Other Comprehensive Income [Member] | Unrealized Gains on Available for Sale Investment [Member] | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Product sales | 0 | 0 | |
Cost of products sold | 0 | 0 | |
Cost of services sold | 0 | 0 | |
Selling, general and administrative expenses | 0 | 0 | |
Other (income) expense | -221,000,000 | -195,000,000 | |
Total | -221,000,000 | -195,000,000 | |
Reclassification Out Of Accumulated Other Comprehensive Income [Member] | Actuarial losses recognized [Member] | Amortization of Pension and Other Postretirement Items [Member] | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Product sales | 0 | 0 | |
Cost of products sold | 199,000,000 | 62,000,000 | |
Cost of services sold | 38,000,000 | 14,000,000 | |
Selling, general and administrative expenses | 42,000,000 | 13,000,000 | |
Other (income) expense | 0 | 0 | |
Total | 279,000,000 | 89,000,000 | |
Reclassification Out Of Accumulated Other Comprehensive Income [Member] | Prior service costs (credit) recognized [Member] | Amortization of Pension and Other Postretirement Items [Member] | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Product sales | 0 | 0 | |
Cost of products sold | -1,000,000 | 7,000,000 | |
Cost of services sold | 0 | 1,000,000 | |
Selling, general and administrative expenses | 0 | 1,000,000 | |
Other (income) expense | 0 | 0 | |
Total | -1,000,000 | 9,000,000 | |
Reclassification Out Of Accumulated Other Comprehensive Income [Member] | Transition obligation recognized [Member] | Amortization of Pension and Other Postretirement Items [Member] | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Product sales | 0 | 0 | |
Cost of products sold | 2,000,000 | 2,000,000 | |
Cost of services sold | 0 | 0 | |
Selling, general and administrative expenses | 0 | 0 | |
Other (income) expense | 0 | 0 | |
Total | 2,000,000 | 2,000,000 | |
Reclassification Out Of Accumulated Other Comprehensive Income [Member] | Settlements and curtailments [Member] | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Product sales | 0 | ||
Cost of products sold | -30,000,000 | ||
Cost of services sold | -6,000,000 | ||
Selling, general and administrative expenses | -6,000,000 | ||
Other (income) expense | 0 | ||
Total | ($42,000,000) |
STOCKBASED_COMPENSATION_PLANS_1
STOCK-BASED COMPENSATION PLANS (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Stock Options Weighted Average Exercise Price [Abstract] | |||
Exercisable at December 31, | $49.40 | ||
Stock Incentive Plan [Member] | Stock Options [Member] | |||
Stock based compensation Fair Value [Abstract] | |||
Weighted average fair value per share of options granted during the year | $16.35 | $11.85 | $13.26 |
Expected annual dividend yield | 2.05% | 2.55% | 2.57% |
Expected volatility | 23.06% | 24.73% | 30.36% |
Risk-free rate of return | 1.48% | 0.91% | 1.16% |
Expected option term (years) | 5 years 0 months | 5 years 6 months | 5 years 10 months |
Stock Options Number of Options [Abstract] | |||
Outstanding at beginning of period, | 30,663,837 | 35,569,021 | 38,916,370 |
Granted | 5,823,706 | 6,041,422 | 5,788,734 |
Exercised | -5,697,263 | -10,329,611 | -8,347,313 |
Lapsed or Canceled | -1,294,668 | -616,995 | -788,770 |
Outstanding at end of period, | 29,495,612 | 30,663,837 | 35,569,021 |
Vested and Expected to Vest at December 31, | 28,015,623 | ||
Exercisable at December 31, | 16,019,742 | 15,594,410 | 19,468,017 |
Options Activity Footnote [Abstract] | |||
Vested options | 16,000,000 | ||
Options expected to vest | 12,000,000 | ||
Outstanding unvested options | 28,000,000 | ||
Number of Options Exercisable | 16,019,742 | 15,594,410 | 19,468,017 |
Stock Options Weighted Average Exercise Price [Abstract] | |||
Outstanding at beginning of period, | $53.27 | $47.13 | $43.01 |
Granted | $93.95 | $69.89 | $59.86 |
Exercised | $47.47 | $41.91 | $36.52 |
Lapsed or Canceled | $67.70 | $53.84 | $49.76 |
Outstanding at end of period, | $61.80 | $53.27 | $47.13 |
Vested and Expected to Vest at December 31, | $60.44 | ||
Exercisable at December 31, | $49.40 | $45.76 | $43.64 |
STOCKBASED_COMPENSATION_PLANS_2
STOCK-BASED COMPENSATION PLANS 2 (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range Beginning Of Period Abstract | |||
Options Outstanding, Number of Options | 29,495,612 | ||
Options Outstanding, Weighted Average Life | 6 years 5 months | ||
Options Outstanding, Weighted Average Exercise Price | $61.80 | ||
Options Outstanding Aggregate Intrinsic Value | $1,124,000,000 | ||
Options Exercisable Number of Options | 16,019,742 | ||
Weighted Average Exercise Price | $49.40 | ||
Options Exercisable Aggregate Intrinsic Value | 809,000,000 | ||
Stock Incentive Plan [Member] | Stock Options [Member] | |||
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range Beginning Of Period Abstract | |||
Weighted Average Exercise Price | $49.40 | $45.76 | $43.64 |
Exercise Price Range $28.35-$39.99 [Member] | Stock Incentive Plan [Member] | Stock Options [Member] | |||
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range Beginning Of Period Abstract | |||
Options Outstanding, Number of Options | 2,029,342 | ||
Options Outstanding, Weighted Average Life | 3 years 9 months | ||
Options Outstanding, Weighted Average Exercise Price | $29.46 | ||
Options Outstanding Aggregate Intrinsic Value | 143,000,000 | ||
Options Exercisable Number of Options | 2,029,342 | ||
Weighted Average Exercise Price | $29.46 | ||
Options Exercisable Aggregate Intrinsic Value | 143,000,000 | ||
Exercise Price Range $40.00-$49.99 [Member] | Stock Incentive Plan [Member] | Stock Options [Member] | |||
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range Beginning Of Period Abstract | |||
Options Outstanding, Number of Options | 5,971,196 | ||
Options Outstanding, Weighted Average Life | 3 years 10 months | ||
Options Outstanding, Weighted Average Exercise Price | $42 | ||
Options Outstanding Aggregate Intrinsic Value | 346,000,000 | ||
Options Exercisable Number of Options | 5,968,696 | ||
Weighted Average Exercise Price | $42 | ||
Options Exercisable Aggregate Intrinsic Value | 346,000,000 | ||
Exercise Price Range $50.00-$59.99 [Member] | |||
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range Beginning Of Period Abstract | |||
Options Outstanding, Number of Options | 10,710,421 | ||
Options Outstanding, Weighted Average Life | 6 years 1 month | ||
Options Outstanding, Weighted Average Exercise Price | $58.36 | ||
Options Outstanding Aggregate Intrinsic Value | 445,000,000 | ||
Options Exercisable Number of Options | 6,777,404 | ||
Weighted Average Exercise Price | $58.12 | ||
Options Exercisable Aggregate Intrinsic Value | 283,000,000 | ||
Exercise Price Range $60.00-$74.99 [Member] | |||
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range Beginning Of Period Abstract | |||
Options Outstanding, Number of Options | 5,202,747 | ||
Options Outstanding, Weighted Average Life | 8 years 1 month | ||
Options Outstanding, Weighted Average Exercise Price | $69.72 | ||
Options Outstanding Aggregate Intrinsic Value | 157,000,000 | ||
Options Exercisable Number of Options | 1,214,300 | ||
Weighted Average Exercise Price | $69.27 | ||
Options Exercisable Aggregate Intrinsic Value | 37,000,000 | ||
Exercise Price Range $75.00-$95.00 [Member] | |||
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range Beginning Of Period Abstract | |||
Options Outstanding, Number of Options | 5,581,906 | ||
Options Outstanding, Weighted Average Life | 9 years 2 months | ||
Options Outstanding, Weighted Average Exercise Price | $93.95 | ||
Options Outstanding Aggregate Intrinsic Value | 33,000,000 | ||
Options Exercisable Number of Options | 30,000 | ||
Weighted Average Exercise Price | $93.97 | ||
Options Exercisable Aggregate Intrinsic Value | $0 |
STOCK_BASED_COMPENSATION_PLANS
STOCK BASED COMPENSATION PLANS 3 (Details) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share Based Compensation Arrangement By Share Based Payment Stock Options [Line Items] | |||
Weighted Average Exercise Price | $49.40 | ||
Financial Statement Impact From Stock Options Exercised [Abstract] | |||
Operating cash inflow | ($102) | ($132) | ($56) |
Financing cash inflow | 102 | 132 | 56 |
Stock Incentive Plan [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Stock Options [Line Items] | |||
Shares of Honeywell common stock available for future grants | 19,752,482 | ||
Stock Incentive Plan [Member] | Stock Options [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Stock Options [Line Items] | |||
Stock options vesting period, years | 4 years 0 months | ||
Stock Options General Expiration Period | 10 years 0 months | ||
Number of Options Exercisable | 16,019,742 | 15,594,410 | 19,468,017 |
Weighted Average Exercise Price | $49.40 | $45.76 | $43.64 |
Unrecognized compensation on nonvested stock options | 125 | ||
Nonvested options recognized over weighted average period, years | 2 years 4 months | ||
Fair value of options vested | 72 | 67 | 63 |
Financial Statement Impact From Stock Options Exercised [Abstract] | |||
Intrinsic value | 272 | 367 | 202 |
Tax benefit realized | 96 | 129 | 74 |
Operating cash inflow | 172 | 333 | 249 |
Financing cash inflow | 77 | 99 | 56 |
Cash received | 249 | 432 | 305 |
Share-based compensation expense | 85 | 70 | 65 |
Future income tax benefit recognized | 31 | 24 | 23 |
Stock Incentive Plan [Member] | Restricted Stock Units (RSUs) [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Stock Options [Line Items] | |||
Unrecognized compensation on nonvested stock options | 195 | ||
Nonvested options recognized over weighted average period, years | 3 years 5 months | ||
Financial Statement Impact From Stock Options Exercised [Abstract] | |||
Share-based compensation expense | 102 | 100 | 105 |
Future income tax benefit recognized | $37 | $35 | $37 |
Stock Incentive Plan [Member] | Restricted Stock Units (RSUs) [Member] | Minimum [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Stock Options [Line Items] | |||
Stock options vesting period, years | 3 years 0 months | ||
Stock Incentive Plan [Member] | Restricted Stock Units (RSUs) [Member] | Maximum [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Stock Options [Line Items] | |||
Stock options vesting period, years | 7 years 0 months | ||
Non Employee Directors Plan [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Stock Options [Line Items] | |||
Shares of Honeywell common stock available for future grants | 107,995 |
STOCKBASED_COMPENSATION_PLANS_3
STOCK-BASED COMPENSATION PLANS - RSUS (Details) (Stock Incentive Plan [Member], USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Stock Options [Member] | |||
Restricted Stock Units [Line Items] | |||
Nonvested options recognized over weighted average period, years | 2 years 4 months | ||
Unrecognized compensation on nonvested stock options | $125 | ||
Vesting periods | 4 years 0 months | ||
Income Statement Impact From RSUs [Abstract] | |||
Share-based compensation expense | 85 | 70 | 65 |
Future income tax benefit recognized | 31 | 24 | 23 |
Restricted Stock Units (RSUs) [Member] | |||
Restricted Stock Units [Line Items] | |||
Nonvested options recognized over weighted average period, years | 3 years 5 months | ||
Unrecognized compensation on nonvested stock options | 195 | ||
Restricted Stock Units Number of Options [Abstract] | |||
Non-vested at beginning of period, | 6,692,220 | 8,095,739 | 9,746,433 |
Granted | 1,455,209 | 1,904,504 | 2,156,753 |
Vested | -1,787,894 | -2,995,553 | -3,380,251 |
Forfeited | -460,341 | -312,470 | -427,196 |
Non-vested at end of period, | 5,899,194 | 6,692,220 | 8,095,739 |
Weighted average grant date fair value per share [Abstract] | |||
Non-vested at beginning of period, | $60.04 | $49.91 | $41.35 |
Granted | $94.88 | $75.73 | $59.52 |
Vested | $53.63 | $42.17 | $31.84 |
Forfeited | $63.54 | $56.58 | $45.78 |
Non-vested at end of period, | $70.32 | $60.04 | $49.91 |
Income Statement Impact From RSUs [Abstract] | |||
Share-based compensation expense | 102 | 100 | 105 |
Future income tax benefit recognized | $37 | $35 | $37 |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Environmental Matters [Abstract] | |||
Beginning of period | $643 | $654 | $723 |
Accruals for environmental matters deemed probable and reasonably estimable | 268 | 272 | 234 |
Environmental liability payments | -321 | -304 | -320 |
Other | 1 | 21 | 17 |
End of period | 591 | 643 | 654 |
Loss Contingency Classification of Accrual [Abstract] | |||
Accrued liabilities | 278 | 304 | |
Other liabilities | 313 | 339 | |
Total environmental liabilities | $591 | $643 | $654 |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES 2 (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Asbestos Related Liabilities Disclosure [Abstract] | |||
Asbestos Related Liabilities, Beginning of Period | $1,611,000,000 | $1,772,000,000 | $1,736,000,000 |
Accrual for update to estimated liability | 199,000,000 | 185,000,000 | 167,000,000 |
Change in estimated cost of future claims | -1,000,000 | 16,000,000 | 30,000,000 |
Update of expected resolution values for pending claims | 2,000,000 | -5,000,000 | 8,000,000 |
Asbestos related liability payments | -259,000,000 | -357,000,000 | -169,000,000 |
Asbestos Related Liabilities, End of Period | 1,552,000,000 | 1,611,000,000 | 1,772,000,000 |
Asbestos Related Liabilities Insurance Recoveries [Line Items] | |||
Insurance Recoveries, beginning of period | 672,000,000 | 707,000,000 | 780,000,000 |
Probable insurance recoveries related to estimated liability | 24,000,000 | 27,000,000 | 28,000,000 |
Insurance receipts for asbestos related liabilities | -211,000,000 | -58,000,000 | -122,000,000 |
Insurance receivables settlements and write-offs | 1,000,000 | -6,000,000 | 21,000,000 |
Other | -1,000,000 | 2,000,000 | 0 |
Insurance recoveries, end of period | 485,000,000 | 672,000,000 | 707,000,000 |
Bendix Asbestos Loss Contingency Liability [Member] | |||
Asbestos Related Liabilities Disclosure [Abstract] | |||
Asbestos Related Liabilities, Beginning of Period | 656,000,000 | 653,000,000 | 613,000,000 |
Accrual for update to estimated liability | 195,000,000 | 180,000,000 | 168,000,000 |
Change in estimated cost of future claims | -1,000,000 | 16,000,000 | 30,000,000 |
Update of expected resolution values for pending claims | 2,000,000 | -5,000,000 | 8,000,000 |
Asbestos related liability payments | -229,000,000 | -188,000,000 | -166,000,000 |
Asbestos Related Liabilities, End of Period | 623,000,000 | 656,000,000 | 653,000,000 |
Asbestos Related Liabilities Insurance Recoveries [Line Items] | |||
Insurance Recoveries, beginning of period | 141,000,000 | 138,000,000 | 162,000,000 |
Probable insurance recoveries related to estimated liability | 24,000,000 | 27,000,000 | 28,000,000 |
Insurance receipts for asbestos related liabilities | -24,000,000 | -24,000,000 | -60,000,000 |
Insurance receivables settlements and write-offs | -6,000,000 | 0 | 8,000,000 |
Other | 0 | 0 | 0 |
Insurance recoveries, end of period | 135,000,000 | 141,000,000 | 138,000,000 |
Narco Asbestos Loss Contingency Liability [Member] | |||
Asbestos Related Liabilities Disclosure [Abstract] | |||
Asbestos Related Liabilities, Beginning of Period | 955,000,000 | 1,119,000,000 | 1,123,000,000 |
Accrual for update to estimated liability | 4,000,000 | 5,000,000 | -1,000,000 |
Change in estimated cost of future claims | 0 | 0 | 0 |
Update of expected resolution values for pending claims | 0 | 0 | 0 |
Asbestos related liability payments | -30,000,000 | -169,000,000 | -3,000,000 |
Asbestos Related Liabilities, End of Period | 929,000,000 | 955,000,000 | 1,119,000,000 |
Asbestos Related Liabilities Insurance Recoveries [Line Items] | |||
Insurance Recoveries, beginning of period | 531,000,000 | 569,000,000 | 618,000,000 |
Probable insurance recoveries related to estimated liability | 0 | 0 | 0 |
Insurance receipts for asbestos related liabilities | -187,000,000 | -34,000,000 | -62,000,000 |
Insurance receivables settlements and write-offs | 7,000,000 | -6,000,000 | 13,000,000 |
Other | -1,000,000 | 2,000,000 | 0 |
Insurance recoveries, end of period | $350,000,000 | $531,000,000 | $569,000,000 |
COMMITMENTS_AND_CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES 3 (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||||
Loss Contingency, Narco and Bendix Asbestos Related Balances by Balance Sheet Caption [Abstract] | ||||
Other current assets | $31 | $77 | ||
Insurance recoveries for asbestos related liabilities | 454 | 595 | ||
Total assets | 485 | 672 | 707 | 780 |
Accrued liabilities | 352 | 461 | ||
Asbestos related liabilities | 1,200 | 1,150 | ||
Total liabilities | $1,552 | $1,611 | $1,772 | $1,736 |
COMMITMENTS_AND_CONTINGENCIES_4
COMMITMENTS AND CONTINGENCIES 4 (Details) (Narco Asbestos Loss Contingency Liability [Member], USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Loss Contingency By Nature Of Contingency [Line Items] | |
Loss Contingency Estimated Pre-established Unliquidated Claims Amount | $147 |
Loss Contingency Estimated Unsettled Claims Amount | 39 |
Estimated Liability | 743 |
Maximum Estimated Liability | 961 |
Exceptions To Cap [Abstract] | |
Value Not Included In Cap | 100 |
Estimated value of settlement agreements to be paid during the initial years of trust operations | 150 |
Settlement Payments | 3 |
Years 2014 To 2018 [Member] | |
Loss Contingency By Nature Of Contingency [Line Items] | |
Annual Trust Cap | 140 |
Year 2019 And Thereafter [Member] | |
Loss Contingency By Nature Of Contingency [Line Items] | |
Annual Trust Cap | $145 |
COMMITMENTS_AND_CONTINGENCIES_5
COMMITMENTS AND CONTINGENCIES 5 (Details) (Bendix Asbestos Loss Contingency Liability [Member], USD $) | 12 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
claims | claims | claims | |||
Bendix Asbestos Loss Contingency Liability [Member] | |||||
Loss Contingency Claims [Abstract] | |||||
Claims unresolved at the beginning of period | 12,302 | 23,141 | |||
Claims Filed | 3,694 | 4,527 | |||
Claims Resolved | -6,729 | -15,366 | |||
Claims unresolved at the end of period | 9,267 | 12,302 | 23,141 | ||
Loss Contingency Claims Footnote [Abstract] | |||||
Significantly aged, claims | 1,266 | 12,250 | |||
Percent of non-malignant claims significantly aged | 82.00% | 92.00% | |||
Cancer Claims With No Determinable Value | 2,110 | ||||
Loss Contingency, Disease Distribution of Unresolved Claims [Abstract] | |||||
Mesothelioma and Other Cancer Claims | 3,933 | 5,810 | |||
Nonmalignant Claims | 5,334 | 6,492 | |||
Claims unresolved at the end of period | 9,267 | 12,302 | 23,141 | ||
Resolution Values Per Claim [Abstract] | |||||
Malignant claims | $53,500 | $51,000 | $49,000 | $48,000 | $54,000 |
Nonmalignant claims | $120 | $850 | $1,400 | $1,000 | $1,300 |
COMMITMENTS_AND_CONTINGENCIES_6
COMMITMENTS AND CONTINGENCIES 6 (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
United Auto Workers [Member] | Pre 2003 Retirees [Member] | |
Other Matters [Line Items] | |
Potential Opeb Increase Due To Adverse Ruling | $180 |
United Auto Workers [Member] | Post 2003 Retirees [Member] | |
Other Matters [Line Items] | |
Potential Opeb Increase Due To Adverse Ruling | $120 |
Joint Strike Fighter [Member] | |
Other Matters [Line Items] | |
Information request | Joint Strike Fighter Investigation - In 2013 the Company received subpoenas from the Department of Justice requesting information relating primarily to parts manufactured in the United Kingdom and China used in the F-35 fighter jet. The Company is cooperating fully with the investigation. While we believe that Honeywell has complied with all relevant U.S. laws and regulations regarding the manufacture of these sensors, it is not possible to predict the outcome of the investigation or what action, if any, may result from it. |
COMMITMENTS_AND_CONTINGENCIES_7
COMMITMENTS AND CONTINGENCIES 7 (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Product Warranties and Guarantees [Roll forward] | |||
Beginning of year | $405 | $407 | $402 |
Accruals for warranties/guarantees issued during the year | 225 | 212 | 196 |
Adjustments of pre-existing warranties/guarantees | -34 | -1 | -20 |
Settlement of warranty/guarantee claims | -193 | -213 | -171 |
End of year | 403 | 405 | 407 |
Product Warranties and Guarantees, Balance Sheet Classification [Abstract] | |||
Accrued liabilities | 332 | 323 | |
Other liabilities | 71 | 82 | |
Total Product Warranties and Guarantees Liabilities | 403 | 405 | 407 |
Maximum potential future payments [Member] | |||
Warranties And Guarantees Direct And Indirect [Line Items] | |||
Operating lease residual values | 41 | ||
Other third parties' financing | 4 | ||
Customer financing | 4 | ||
Warranties and guarantees total | $49 |
PENSION_AND_OTHER_POSTRETIREME2
PENSION AND OTHER POSTRETIREMENT BENEFITS (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2015 | |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Income) Loss [Abstract] | ||||
Total recognized in other comprehensive (income) loss | $1,707,000,000 | ($3,514,000,000) | $285,000,000 | |
Other Postretirement Benefits for Significant Plans [Member] | ||||
Pension Benefits Paragraph Details Abstract | ||||
Explanation of significant changes in benefit obligations | Less than 1% of Honeywell’s U.S. employees are eligible for a retiree medical subsidy from the Company; and this subsidy is limited to a fixed-dollar amount. In addition, more than 75% of Honeywell’s current retirees either have no Company subsidy or have a fixed-dollar subsidy amount. This significantly limits our exposure to the impact of future health care cost increases. | |||
Change in Benefit Obligation [Roll forward] | ||||
Benefit obligation at beginning of year | 1,096,000,000 | 1,477,000,000 | ||
Service cost | 0 | 0 | 1,000,000 | |
Interest cost | 42,000,000 | 44,000,000 | 53,000,000 | |
Plan amendments | -87,000,000 | -175,000,000 | ||
Actuarial (gains) losses | 46,000,000 | -108,000,000 | ||
Benefits paid | -124,000,000 | -142,000,000 | ||
Benefit obligation at end of year | 973,000,000 | 1,096,000,000 | 1,477,000,000 | |
Change In Plan Assets [Roll forward] | ||||
Fair value of plan assets at beginning of year | 0 | 0 | ||
Actual return on plan assets | 0 | 0 | ||
Company contributions | 0 | 0 | ||
Benefits paid | 0 | 0 | ||
Fair value of plan assets at end of year | 0 | 0 | 0 | |
Funded status of plans | -973,000,000 | -1,096,000,000 | ||
Amounts recognized in Consolidated Balance Sheet [Abstract] | ||||
Accrued pension liabilities - current | -111,000,000 | -130,000,000 | ||
Postretirement benefit obligations other than pensions | -862,000,000 | -966,000,000 | ||
Net amount recognized | -973,000,000 | -1,096,000,000 | ||
Foreign plans excluded from postretirement benefits other than pensions | 49,000,000 | 53,000,000 | ||
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income [Abstract] | ||||
Prior service cost (credit) | -235,000,000 | -168,000,000 | ||
Net actuarial (gains) losses | 278,000,000 | 256,000,000 | ||
Net amount recognized | 43,000,000 | 88,000,000 | ||
Defined Benefit Plan Disclosure [Abstract] | ||||
Service cost | 0 | 0 | 1,000,000 | |
Interest cost | 42,000,000 | 44,000,000 | 53,000,000 | |
Amortization of prior service cost (credit) | -20,000,000 | -13,000,000 | -14,000,000 | |
Recognition of actuarial losses | 24,000,000 | 27,000,000 | 34,000,000 | |
Settlements and curtailments | 0 | -42,000,000 | -6,000,000 | |
Net periodic benefit (income) cost | 46,000,000 | 16,000,000 | 68,000,000 | |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Income) Loss [Abstract] | ||||
Actuarial (gains) losses | 46,000,000 | -108,000,000 | 34,000,000 | |
Prior service cost (credit) | -87,000,000 | -175,000,000 | -1,000,000 | |
Prior service (cost) credit recognized during year | 20,000,000 | 13,000,000 | 14,000,000 | |
Actuarial losses recognized during year | -24,000,000 | -27,000,000 | -34,000,000 | |
Settlements and curtailments | 0 | 42,000,000 | 6,000,000 | |
Total recognized in other comprehensive (income) loss | -45,000,000 | -255,000,000 | 19,000,000 | |
Total recognized in net periodic benefit (income) cost and other comprehensive (income) loss | 1,000,000 | -239,000,000 | 87,000,000 | |
Other Postretirement Benefits for Significant Plans [Member] | Scenario Forecast [Member] | ||||
Defined Benefit Plan Disclosure [Abstract] | ||||
Amortization of prior service cost (credit) | -30,000,000 | |||
Recognition of actuarial losses | 30,000,000 | |||
United States, Defined Benefit [Member] | ||||
Pension Benefits Paragraph Details Abstract | ||||
Explanation of significant changes in benefit obligations | All non-union hourly and salaried employees joining Honeywell for the first time after December 31, 2012, are not eligible to participate in Honeywell’s U.S. defined benefit pension plans. We also sponsor defined benefit pension plans which cover non-U.S. employees who are not U.S. citizens, in certain jurisdictions, principally the UK, Netherlands, Germany, and Canada. | |||
Change in Benefit Obligation [Roll forward] | ||||
Benefit obligation at beginning of year | 16,290,000,000 | 17,117,000,000 | ||
Service cost | 241,000,000 | 272,000,000 | 256,000,000 | |
Interest cost | 771,000,000 | 677,000,000 | 738,000,000 | |
Plan amendments | 0 | 14,000,000 | ||
Actuarial (gains) losses | 1,718,000,000 | -975,000,000 | ||
Divestitures | 0 | 0 | ||
Acquisitions | 0 | 190,000,000 | ||
Benefits paid | -996,000,000 | -1,005,000,000 | ||
Foreign currency and other | 11,000,000 | 0 | ||
Benefit obligation at end of year | 18,035,000,000 | 16,290,000,000 | 17,117,000,000 | |
Change In Plan Assets [Roll forward] | ||||
Fair value of plan assets at beginning of year | 16,727,000,000 | 14,345,000,000 | ||
Actual return on plan assets | 1,290,000,000 | 3,191,000,000 | ||
Company contributions | 36,000,000 | 28,000,000 | ||
Acquisitions | 0 | 168,000,000 | ||
Benefits paid | -996,000,000 | -1,005,000,000 | ||
Foreign currency and other | 9,000,000 | 0 | ||
Fair value of plan assets at end of year | 17,066,000,000 | 16,727,000,000 | 14,345,000,000 | |
Funded status of plans | -969,000,000 | 437,000,000 | ||
Amounts recognized in Consolidated Balance Sheet [Abstract] | ||||
Prepaid pension benefit cost | 0 | 839,000,000 | ||
Accrued pension liabilities - current | -74,000,000 | -36,000,000 | ||
Accrued pension liabilities - noncurrent | -895,000,000 | -366,000,000 | ||
Net amount recognized | -969,000,000 | 437,000,000 | ||
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income [Abstract] | ||||
Transition obligation | 0 | 0 | ||
Prior service cost (credit) | 88,000,000 | 111,000,000 | ||
Net actuarial (gains) losses | 281,000,000 | -1,378,000,000 | ||
Net amount recognized | 369,000,000 | -1,267,000,000 | ||
Defined Benefit Plan Disclosure [Abstract] | ||||
Service cost | 241,000,000 | 272,000,000 | 256,000,000 | |
Interest cost | 771,000,000 | 677,000,000 | 738,000,000 | |
Expected return on plan assets | -1,257,000,000 | -1,076,000,000 | -1,020,000,000 | |
Amortization of transition obligations | 0 | 0 | 0 | |
Amortization of prior service cost (credit) | 23,000,000 | 23,000,000 | 28,000,000 | |
Recognition of actuarial losses | 26,000,000 | 0 | 707,000,000 | |
Settlements and curtailments | 0 | 0 | 0 | |
Net periodic benefit (income) cost | -196,000,000 | -104,000,000 | 709,000,000 | |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Income) Loss [Abstract] | ||||
Actuarial (gains) losses | 1,686,000,000 | -3,090,000,000 | 859,000,000 | |
Prior service cost (credit) | 0 | 14,000,000 | 0 | |
Transition obligation recognized during year | 0 | 0 | 0 | |
Prior service (cost) credit recognized during year | -23,000,000 | -23,000,000 | -28,000,000 | |
Actuarial losses recognized during year | -26,000,000 | 0 | -707,000,000 | |
Foreign exchange translation adjustments | 0 | 0 | 0 | |
Total recognized in other comprehensive (income) loss | 1,637,000,000 | -3,099,000,000 | 124,000,000 | |
Total recognized in net periodic benefit (income) cost and other comprehensive (income) loss | 1,441,000,000 | -3,203,000,000 | 833,000,000 | |
United States, Defined Benefit [Member] | Scenario Forecast [Member] | ||||
Defined Benefit Plan Disclosure [Abstract] | ||||
Amortization of prior service cost (credit) | 23,000,000 | |||
Non-U.S. Pension Plans, Defined Benefit [Member] | ||||
Change in Benefit Obligation [Roll forward] | ||||
Benefit obligation at beginning of year | 5,523,000,000 | 5,272,000,000 | ||
Service cost | 56,000,000 | 58,000,000 | 48,000,000 | |
Interest cost | 231,000,000 | 215,000,000 | 221,000,000 | |
Plan amendments | -17,000,000 | 0 | ||
Actuarial (gains) losses | 601,000,000 | 72,000,000 | ||
Divestitures | -61,000,000 | 0 | ||
Acquisitions | 0 | 44,000,000 | ||
Benefits paid | -210,000,000 | -198,000,000 | ||
Foreign currency and other | -362,000,000 | 60,000,000 | ||
Benefit obligation at end of year | 5,761,000,000 | 5,523,000,000 | 5,272,000,000 | |
Change In Plan Assets [Roll forward] | ||||
Fair value of plan assets at beginning of year | 5,037,000,000 | 4,527,000,000 | ||
Actual return on plan assets | 622,000,000 | 428,000,000 | ||
Company contributions | 187,000,000 | 183,000,000 | ||
Acquisitions | 0 | 45,000,000 | ||
Benefits paid | -210,000,000 | -198,000,000 | ||
Foreign currency and other | -303,000,000 | 52,000,000 | ||
Fair value of plan assets at end of year | 5,333,000,000 | 5,037,000,000 | 4,527,000,000 | |
Funded status of plans | -428,000,000 | -486,000,000 | ||
Amounts recognized in Consolidated Balance Sheet [Abstract] | ||||
Prepaid pension benefit cost | 270,000,000 | 120,000,000 | ||
Accrued pension liabilities - current | -8,000,000 | -13,000,000 | ||
Accrued pension liabilities - noncurrent | -690,000,000 | -593,000,000 | ||
Net amount recognized | -428,000,000 | -486,000,000 | ||
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income [Abstract] | ||||
Transition obligation | 1,000,000 | 3,000,000 | ||
Prior service cost (credit) | -27,000,000 | -14,000,000 | ||
Net actuarial (gains) losses | 493,000,000 | 434,000,000 | ||
Net amount recognized | 467,000,000 | 423,000,000 | ||
Defined Benefit Plan Disclosure [Abstract] | ||||
Service cost | 56,000,000 | 58,000,000 | 48,000,000 | |
Interest cost | 231,000,000 | 215,000,000 | 221,000,000 | |
Expected return on plan assets | -354,000,000 | -308,000,000 | -291,000,000 | |
Amortization of transition obligations | 2,000,000 | 2,000,000 | 2,000,000 | |
Amortization of prior service cost (credit) | -2,000,000 | -2,000,000 | -2,000,000 | |
Recognition of actuarial losses | 223,000,000 | 51,000,000 | 250,000,000 | |
Settlements and curtailments | 0 | 0 | 2,000,000 | |
Net periodic benefit (income) cost | 156,000,000 | 16,000,000 | 230,000,000 | |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Income) Loss [Abstract] | ||||
Actuarial (gains) losses | 333,000,000 | -48,000,000 | 327,000,000 | |
Prior service cost (credit) | -17,000,000 | 0 | 0 | |
Transition obligation recognized during year | -2,000,000 | -2,000,000 | -2,000,000 | |
Prior service (cost) credit recognized during year | 2,000,000 | 2,000,000 | 2,000,000 | |
Actuarial losses recognized during year | -223,000,000 | -51,000,000 | -250,000,000 | |
Foreign exchange translation adjustments | -50,000,000 | 3,000,000 | 23,000,000 | |
Total recognized in other comprehensive (income) loss | 43,000,000 | -96,000,000 | 100,000,000 | |
Total recognized in net periodic benefit (income) cost and other comprehensive (income) loss | 199,000,000 | -80,000,000 | 330,000,000 | |
Non-U.S. Pension Plans, Defined Benefit [Member] | Scenario Forecast [Member] | ||||
Defined Benefit Plan Disclosure [Abstract] | ||||
Amortization of prior service cost (credit) | ($3,000,000) |
PENSION_AND_OTHER_POSTRETIREME3
PENSION AND OTHER POSTRETIREMENT BENEFITS 2 (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Other Postretirement Benefits [Member] | |||
Actuarial assumptions used to determine benefit obligations as of December 31: [Abstract] | |||
Discount rate | 3.45% | 4.05% | 3.40% |
Actuarial assumptions used to determine net periodic benefit (income) cost for years ended December 31: [Abstract] | |||
Discount rate | 4.05% | 3.40% | 4.00% |
United States, Defined Benefit [Member] | |||
Actuarial assumptions used to determine benefit obligations as of December 31: [Abstract] | |||
Discount rate | 4.08% | 4.89% | 4.06% |
Expected annual rate of compensation increase | 4.50% | 4.50% | 4.50% |
Actuarial assumptions used to determine net periodic benefit (income) cost for years ended December 31: [Abstract] | |||
Discount rate | 4.89% | 4.06% | 4.89% |
Expected rate of return on plan assets | 7.75% | 7.75% | 8.00% |
Expected annual rate of compensation increase | 4.50% | 4.50% | 4.50% |
Defined Benefit Plan Plans With Benefit Obligations In Excess of Plan Assets [Abstract] | |||
Projected benefit obligations | 626,000,000 | 576,000,000 | |
Accumulated benefit obligations | 618,000,000 | 569,000,000 | |
Fair value of plan assets | 194,000,000 | 174,000,000 | |
Defined Benefit Plan Accumulated Benefit Obligation [Abstract] | |||
Accumulated benefit obligation | 17,200,000,000 | 15,700,000,000 | |
Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Actuarial assumptions used to determine benefit obligations as of December 31: [Abstract] | |||
Discount rate | 3.26% | 4.29% | 4.29% |
Expected annual rate of compensation increase | 2.53% | 2.81% | 3.55% |
Actuarial assumptions used to determine net periodic benefit (income) cost for years ended December 31: [Abstract] | |||
Discount rate | 4.29% | 4.29% | 4.84% |
Expected rate of return on plan assets | 6.96% | 6.99% | 7.03% |
Expected annual rate of compensation increase | 2.81% | 3.55% | 3.67% |
Defined Benefit Plan Plans With Benefit Obligations In Excess of Plan Assets [Abstract] | |||
Projected benefit obligations | 1,686,000,000 | 911,000,000 | |
Accumulated benefit obligations | 1,584,000,000 | 855,000,000 | |
Fair value of plan assets | 994,000,000 | 307,000,000 | |
Defined Benefit Plan Accumulated Benefit Obligation [Abstract] | |||
Accumulated benefit obligation | 5,500,000,000 | 5,300,000,000 |
PENSION_AND_OTHER_POSTRETIREME4
PENSION AND OTHER POSTRETIREMENT BENEFITS 3 (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Equity Securities [Member] | |||
Defined Benefit Plan Plans With Benefit Obligations In Excess of Plan Assets Paragraph Details [Line Items] | |||
Target allocations percentage, minimum | 60.00% | ||
Target allocations percentage, maximum | 70.00% | ||
Fixed Income Securities and Cash [Member] | |||
Defined Benefit Plan Plans With Benefit Obligations In Excess of Plan Assets Paragraph Details [Line Items] | |||
Target allocations percentage, minimum | 10.00% | ||
Target allocations percentage, maximum | 20.00% | ||
Real Estate [Member] | |||
Defined Benefit Plan Plans With Benefit Obligations In Excess of Plan Assets Paragraph Details [Line Items] | |||
Target allocations percentage, minimum | 5.00% | ||
Target allocations percentage, maximum | 15.00% | ||
Other Than Securities Investment [Member] | |||
Defined Benefit Plan Plans With Benefit Obligations In Excess of Plan Assets Paragraph Details [Line Items] | |||
Target allocations percentage, minimum | 10.00% | ||
Target allocations percentage, maximum | 20.00% | ||
Other Postretirement Benefits [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | $0 | $0 |
United States, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 17,066,000,000 | 16,727,000,000 | 14,345,000,000 |
Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 5,333,000,000 | 5,037,000,000 | 4,527,000,000 |
Honeywell Common Stock [Member] | United States, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 1,851,000,000 | 1,697,000,000 | |
US Companies Common Stocks [Member] | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 534,000,000 | 459,000,000 | |
US Large Cap Common Stocks [Member] | United States, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 3,913,000,000 | 4,147,000,000 | |
US Mid Cap Common Stocks [Member] | United States, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 1,028,000,000 | 757,000,000 | |
US Small Cap Common Stocks [Member] | United States, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 219,000,000 | 215,000,000 | |
International Common Stocks [Member] | United States, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 2,576,000,000 | 2,685,000,000 | |
International Common Stocks [Member] | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 1,876,000,000 | 1,929,000,000 | |
Real Estate Investment Trusts Common Stock [Member] | United States, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 204,000,000 | 90,000,000 | |
Fixed Income Investment, Short Term Money Market [Member] | United States, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 1,078,000,000 | 956,000,000 | |
Fixed Income Investment, Short Term Money Market [Member] | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 117,000,000 | 147,000,000 | |
Fixed Income Investments, Government Securities [Member] | United States, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 438,000,000 | 266,000,000 | |
Fixed Income Investments, Government Securities [Member] | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 1,495,000,000 | 1,303,000,000 | |
Fixed Income Investment, Corporate Bonds [Member] | United States, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 2,988,000,000 | 2,931,000,000 | |
Fixed Income Investment, Corporate Bonds [Member] | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 857,000,000 | 656,000,000 | |
Fixed Income Investment Mortgage Asset Backed Securities [Member] | United States, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 635,000,000 | 770,000,000 | |
Fixed Income Investment Mortgage Asset Backed Securities [Member] | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 19,000,000 | 25,000,000 | |
Fixed Income Investment, Insurance Contracts [Member] | United States, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 7,000,000 | 7,000,000 | |
Fixed Income Investment, Insurance Contracts [Member] | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 186,000,000 | 208,000,000 | |
Private Equity Funds [Member] | United States, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 999,000,000 | 1,058,000,000 | |
Private Equity Funds [Member] | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 62,000,000 | 67,000,000 | |
Hedge Funds [Member] | United States, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 3,000,000 | 6,000,000 | |
Hedge Funds [Member] | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 2,000,000 | 62,000,000 | |
Real Estate Funds - Domestic [Member] | United States, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 226,000,000 | 237,000,000 | |
Real Estate Funds - Global [Member] | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 185,000,000 | 181,000,000 | |
Direct Private Investments [Member] | United States, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 301,000,000 | 278,000,000 | |
Real Estate Properties [Member] | United States, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 600,000,000 | 627,000,000 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | United States, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 10,637,000,000 | 10,314,000,000 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 802,000,000 | 778,000,000 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Honeywell Common Stock [Member] | United States, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 1,851,000,000 | 1,697,000,000 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | US Companies Common Stocks [Member] | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 464,000,000 | 394,000,000 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | US Large Cap Common Stocks [Member] | United States, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 3,867,000,000 | 4,107,000,000 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | US Mid Cap Common Stocks [Member] | United States, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 1,018,000,000 | 752,000,000 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | US Small Cap Common Stocks [Member] | United States, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 219,000,000 | 210,000,000 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | International Common Stocks [Member] | United States, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 2,400,000,000 | 2,503,000,000 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | International Common Stocks [Member] | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 225,000,000 | 244,000,000 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Real Estate Investment Trusts Common Stock [Member] | United States, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 204,000,000 | 90,000,000 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fixed Income Investment, Short Term Money Market [Member] | United States, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 1,078,000,000 | 955,000,000 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fixed Income Investment, Short Term Money Market [Member] | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 113,000,000 | 140,000,000 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fixed Income Investments, Government Securities [Member] | United States, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fixed Income Investments, Government Securities [Member] | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fixed Income Investment, Corporate Bonds [Member] | United States, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fixed Income Investment, Corporate Bonds [Member] | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fixed Income Investment Mortgage Asset Backed Securities [Member] | United States, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fixed Income Investment Mortgage Asset Backed Securities [Member] | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fixed Income Investment, Insurance Contracts [Member] | United States, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fixed Income Investment, Insurance Contracts [Member] | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Private Equity Funds [Member] | United States, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Private Equity Funds [Member] | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Hedge Funds [Member] | United States, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Hedge Funds [Member] | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Real Estate Funds - Domestic [Member] | United States, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Real Estate Funds - Global [Member] | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Direct Private Investments [Member] | United States, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Real Estate Properties [Member] | United States, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Significant Observable Inputs (Level 2) | United States, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 4,300,000,000 | 4,207,000,000 | |
Significant Observable Inputs (Level 2) | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 4,282,000,000 | 3,949,000,000 | |
Significant Observable Inputs (Level 2) | Honeywell Common Stock [Member] | United States, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Significant Observable Inputs (Level 2) | US Companies Common Stocks [Member] | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 70,000,000 | 65,000,000 | |
Significant Observable Inputs (Level 2) | US Large Cap Common Stocks [Member] | United States, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 46,000,000 | 40,000,000 | |
Significant Observable Inputs (Level 2) | US Mid Cap Common Stocks [Member] | United States, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 10,000,000 | 5,000,000 | |
Significant Observable Inputs (Level 2) | US Small Cap Common Stocks [Member] | United States, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 5,000,000 | |
Significant Observable Inputs (Level 2) | International Common Stocks [Member] | United States, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 176,000,000 | 182,000,000 | |
Significant Observable Inputs (Level 2) | International Common Stocks [Member] | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 1,651,000,000 | 1,685,000,000 | |
Significant Observable Inputs (Level 2) | Real Estate Investment Trusts Common Stock [Member] | United States, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Significant Observable Inputs (Level 2) | Fixed Income Investment, Short Term Money Market [Member] | United States, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 1,000,000 | |
Significant Observable Inputs (Level 2) | Fixed Income Investment, Short Term Money Market [Member] | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 4,000,000 | 7,000,000 | |
Significant Observable Inputs (Level 2) | Fixed Income Investments, Government Securities [Member] | United States, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 438,000,000 | 266,000,000 | |
Significant Observable Inputs (Level 2) | Fixed Income Investments, Government Securities [Member] | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 1,495,000,000 | 1,303,000,000 | |
Significant Observable Inputs (Level 2) | Fixed Income Investment, Corporate Bonds [Member] | United States, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 2,988,000,000 | 2,931,000,000 | |
Significant Observable Inputs (Level 2) | Fixed Income Investment, Corporate Bonds [Member] | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 857,000,000 | 656,000,000 | |
Significant Observable Inputs (Level 2) | Fixed Income Investment Mortgage Asset Backed Securities [Member] | United States, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 635,000,000 | 770,000,000 | |
Significant Observable Inputs (Level 2) | Fixed Income Investment Mortgage Asset Backed Securities [Member] | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 19,000,000 | 25,000,000 | |
Significant Observable Inputs (Level 2) | Fixed Income Investment, Insurance Contracts [Member] | United States, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 7,000,000 | 7,000,000 | |
Significant Observable Inputs (Level 2) | Fixed Income Investment, Insurance Contracts [Member] | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 186,000,000 | 208,000,000 | |
Significant Observable Inputs (Level 2) | Private Equity Funds [Member] | United States, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Significant Observable Inputs (Level 2) | Private Equity Funds [Member] | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Significant Observable Inputs (Level 2) | Hedge Funds [Member] | United States, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Significant Observable Inputs (Level 2) | Hedge Funds [Member] | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Significant Observable Inputs (Level 2) | Real Estate Funds - Domestic [Member] | United States, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Significant Observable Inputs (Level 2) | Real Estate Funds - Global [Member] | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Significant Observable Inputs (Level 2) | Direct Private Investments [Member] | United States, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Significant Observable Inputs (Level 2) | Real Estate Properties [Member] | United States, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | United States, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 2,129,000,000 | 2,206,000,000 | |
Significant Unobservable Inputs (Level 3) | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 249,000,000 | 310,000,000 | |
Significant Unobservable Inputs (Level 3) | Honeywell Common Stock [Member] | United States, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | US Companies Common Stocks [Member] | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | US Large Cap Common Stocks [Member] | United States, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | US Mid Cap Common Stocks [Member] | United States, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | US Small Cap Common Stocks [Member] | United States, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | International Common Stocks [Member] | United States, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | International Common Stocks [Member] | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Real Estate Investment Trusts Common Stock [Member] | United States, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Fixed Income Investment, Short Term Money Market [Member] | United States, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Fixed Income Investment, Short Term Money Market [Member] | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Fixed Income Investments, Government Securities [Member] | United States, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Fixed Income Investments, Government Securities [Member] | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Fixed Income Investment, Corporate Bonds [Member] | United States, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Fixed Income Investment, Corporate Bonds [Member] | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Fixed Income Investment Mortgage Asset Backed Securities [Member] | United States, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Fixed Income Investment Mortgage Asset Backed Securities [Member] | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Fixed Income Investment, Insurance Contracts [Member] | United States, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Fixed Income Investment, Insurance Contracts [Member] | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Private Equity Funds [Member] | United States, Defined Benefit [Member] | |||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Roll Forward] | |||
Investments at beginning of year | 1,058,000,000 | 1,100,000,000 | |
Relating to assets still held at year-end | -50,000,000 | -10,000,000 | |
Relating to assets sold during the year | 94,000,000 | 117,000,000 | |
Purchases | 168,000,000 | 94,000,000 | |
Sales and settlements | -271,000,000 | -243,000,000 | |
Investments at end of year | 999,000,000 | 1,058,000,000 | |
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 999,000,000 | 1,058,000,000 | |
Significant Unobservable Inputs (Level 3) | Private Equity Funds [Member] | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Roll Forward] | |||
Investments at beginning of year | 67,000,000 | 136,000,000 | |
Relating to assets still held at year-end | -4,000,000 | -6,000,000 | |
Relating to assets sold during the year | 6,000,000 | 3,000,000 | |
Purchases | 0 | 4,000,000 | |
Sales and settlements | -7,000,000 | -70,000,000 | |
Investments at end of year | 62,000,000 | 67,000,000 | |
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 62,000,000 | 67,000,000 | |
Significant Unobservable Inputs (Level 3) | Hedge Funds [Member] | United States, Defined Benefit [Member] | |||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Roll Forward] | |||
Investments at beginning of year | 6,000,000 | 52,000,000 | |
Relating to assets still held at year-end | -2,000,000 | -22,000,000 | |
Relating to assets sold during the year | 2,000,000 | 22,000,000 | |
Purchases | 3,000,000 | 9,000,000 | |
Sales and settlements | -6,000,000 | -55,000,000 | |
Investments at end of year | 3,000,000 | 6,000,000 | |
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 3,000,000 | 6,000,000 | |
Significant Unobservable Inputs (Level 3) | Hedge Funds [Member] | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Roll Forward] | |||
Investments at beginning of year | 62,000,000 | 56,000,000 | |
Relating to assets still held at year-end | -11,000,000 | 4,000,000 | |
Relating to assets sold during the year | 12,000,000 | 0 | |
Purchases | 0 | 2,000,000 | |
Sales and settlements | -61,000,000 | 0 | |
Investments at end of year | 2,000,000 | 62,000,000 | |
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 2,000,000 | 62,000,000 | |
Significant Unobservable Inputs (Level 3) | Real Estate Funds - Domestic [Member] | United States, Defined Benefit [Member] | |||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Roll Forward] | |||
Investments at beginning of year | 237,000,000 | 254,000,000 | |
Relating to assets still held at year-end | 21,000,000 | 11,000,000 | |
Relating to assets sold during the year | 0 | 1,000,000 | |
Purchases | 8,000,000 | 15,000,000 | |
Sales and settlements | -40,000,000 | -44,000,000 | |
Investments at end of year | 226,000,000 | 237,000,000 | |
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 226,000,000 | 237,000,000 | |
Significant Unobservable Inputs (Level 3) | Real Estate Funds - Global [Member] | Non-U.S. Pension Plans, Defined Benefit [Member] | |||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Roll Forward] | |||
Investments at beginning of year | 181,000,000 | 157,000,000 | |
Relating to assets still held at year-end | 17,000,000 | 18,000,000 | |
Relating to assets sold during the year | 1,000,000 | -1,000,000 | |
Purchases | 4,000,000 | 12,000,000 | |
Sales and settlements | -18,000,000 | -5,000,000 | |
Investments at end of year | 185,000,000 | 181,000,000 | |
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 185,000,000 | 181,000,000 | |
Significant Unobservable Inputs (Level 3) | Direct Private Investments [Member] | United States, Defined Benefit [Member] | |||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Roll Forward] | |||
Investments at beginning of year | 278,000,000 | 227,000,000 | |
Relating to assets still held at year-end | -10,000,000 | 34,000,000 | |
Relating to assets sold during the year | 59,000,000 | 1,000,000 | |
Purchases | 92,000,000 | 37,000,000 | |
Sales and settlements | -118,000,000 | -21,000,000 | |
Investments at end of year | 301,000,000 | 278,000,000 | |
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 301,000,000 | 278,000,000 | |
Significant Unobservable Inputs (Level 3) | Real Estate Properties [Member] | United States, Defined Benefit [Member] | |||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Roll Forward] | |||
Investments at beginning of year | 627,000,000 | 595,000,000 | |
Relating to assets still held at year-end | 10,000,000 | 61,000,000 | |
Relating to assets sold during the year | 53,000,000 | 4,000,000 | |
Purchases | 38,000,000 | 15,000,000 | |
Sales and settlements | -128,000,000 | -48,000,000 | |
Investments at end of year | 600,000,000 | 627,000,000 | |
Defined Benefit Plan Disclosure [Abstract] | |||
Fair value of pension plan assets | 600,000,000 | $627,000,000 |
PENSION_AND_OTHER_POSTRETIREME5
PENSION AND OTHER POSTRETIREMENT BENEFITS 4 (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2012 | |
United States, Defined Benefit [Member] | ||||
Future Benefit Payments [Abstract] | ||||
2015 | $1,133,000,000 | |||
2016 | 1,104,000,000 | |||
2017 | 1,103,000,000 | |||
2018 | 1,117,000,000 | |||
2019 | 1,132,000,000 | |||
2020-2024 | 5,799,000,000 | |||
Funding Policy Paragraph Details [Line Items] | ||||
Voluntary Contributions to United States Pension Plans | 792,000,000 | |||
Pension notional amount | 2,354,000,000 | 1,938,000,000 | ||
Company contributions | 36,000,000 | 28,000,000 | ||
Non-U.S. Pension Plans, Defined Benefit [Member] | ||||
Future Benefit Payments [Abstract] | ||||
2015 | 196,000,000 | |||
2016 | 200,000,000 | |||
2017 | 205,000,000 | |||
2018 | 211,000,000 | |||
2019 | 217,000,000 | |||
2020-2024 | 1,187,000,000 | |||
Funding Policy Paragraph Details [Line Items] | ||||
Contributions to pension plans | 160,000,000 | |||
Pension notional amount | 65,000,000 | 61,000,000 | ||
Company contributions | 187,000,000 | 183,000,000 | ||
Non-U.S. Pension Plans, Defined Benefit [Member] | Scenario Forecast [Member] | ||||
Funding Policy Paragraph Details [Line Items] | ||||
Contributions to pension plans | 140,000,000 | |||
Other Postretirement Benefits [Member] | ||||
Defined Benefit Plan Assumed Health Care Cost Trend Rates Abstract | ||||
Health care cost trend rate assumed for next year | 7.00% | 7.00% | ||
Rate that the cost trend rate gradually declines to | 5.00% | 5.00% | ||
Year that rate reaches the rate it is assumed to remain at | 2023 | 2019 | ||
Effect Of One Percentage Point [abstract] | ||||
Increase on service and interest | 2,000,000 | |||
Decrease on service and interest | -2,000,000 | |||
Increase on postretirement benefit obligation | 73,000,000 | |||
Decrease on postretirement benefit obligation | -49,000,000 | |||
Funding Policy Paragraph Details [Line Items] | ||||
Company contributions | 0 | 0 | ||
Other Postretirement Benefits [Member] | Without Impact of Medicare Subsidy [Member] | ||||
Future Benefit Payments [Abstract] | ||||
2015 | 119,000,000 | |||
2016 | 106,000,000 | |||
2017 | 102,000,000 | |||
2018 | 97,000,000 | |||
2019 | 92,000,000 | |||
2020-2024 | 363,000,000 | |||
Other Postretirement Benefits [Member] | Net of Medicare Subsidy [Member] | ||||
Future Benefit Payments [Abstract] | ||||
2015 | 111,000,000 | |||
2016 | 99,000,000 | |||
2017 | 94,000,000 | |||
2018 | 90,000,000 | |||
2019 | 85,000,000 | |||
2020-2024 | $329,000,000 |
SEGMENT_FINANCIAL_DATA_Details
SEGMENT FINANCIAL DATA (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Segments | |||||||||||
Reconciliation of segment profit to consolidated [Abstract] | |||||||||||
Segment Reporting Segment Profit Loss | $6,696,000,000 | $6,351,000,000 | $5,879,000,000 | ||||||||
Other income (expense) | 269,000,000 | 202,000,000 | 25,000,000 | ||||||||
Interest and other financial charges | -318,000,000 | -327,000,000 | -351,000,000 | ||||||||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||||||||||
Stock compensation expense | -187,000,000 | -170,000,000 | -170,000,000 | ||||||||
Repositioning and other charges | -598,000,000 | -663,000,000 | -443,000,000 | ||||||||
Income from continuing operations before taxes | 5,818,000,000 | 5,412,000,000 | 3,875,000,000 | ||||||||
Segment Reporting Information [Line Items] | |||||||||||
Product sales | 32,398,000,000 | 31,214,000,000 | 29,812,000,000 | ||||||||
Service sales | 7,908,000,000 | 7,841,000,000 | 7,853,000,000 | ||||||||
Net Sales | 10,266,000,000 | 10,108,000,000 | 10,253,000,000 | 9,679,000,000 | 10,387,000,000 | 9,647,000,000 | 9,693,000,000 | 9,328,000,000 | 40,306,000,000 | 39,055,000,000 | 37,665,000,000 |
Depreciation and amortization | 924,000,000 | 989,000,000 | 926,000,000 | ||||||||
Segment Reporting Segment Profit Loss | 6,696,000,000 | 6,351,000,000 | 5,879,000,000 | ||||||||
Capital expenditures | 1,094,000,000 | 947,000,000 | 884,000,000 | ||||||||
Total Assets | 45,451,000,000 | 45,435,000,000 | 45,451,000,000 | 45,435,000,000 | 41,853,000,000 | ||||||
Additional Information About Entitys Reportable Segments | Following the closing of the sale, the Company announced the realignment of its Transportation Systems business segment with its Aerospace business segment. Under the realigned segment reporting structure, the Company has three business segments: Aerospace, Automation and Control Solutions and Performance Materials and Technologies. This realignment has no impact on the Company’s historical consolidated financial position, results of operations or cash flows. The Company has reported its financial performance based on the inclusion of Transportation Systems in Aerospace for all periods presented. | ||||||||||
Segment Financial Data Paragraph Details [Abstract] | |||||||||||
Number Of Reportable Segments | 3 | ||||||||||
Honeywell Process Solutions [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Additional Information About Entitys Reportable Segments | In April 2014, the Company announced the realignment of our Honeywell Process Solutions business from Automation and Control Solutions into Performance Materials and Technologies. The Company has reported its financial performance based on the inclusion of Honeywell Process Solutions in Performance Materials and Technologies for all periods presented. | ||||||||||
Transportation Systems [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Additional Information About Entitys Reportable Segments | In July 2014, following the closing of the sale of its Friction Materials business, the Company announced the realignment of its Transportation Systems business segment with its Aerospace business segment. Under the realigned segment reporting structure, the Company has three business segments: Aerospace, Automation and Control Solutions and Performance Materials and Technologies. The Company has reported its financial performance based on the inclusion of Transportation Systems in Aerospace for all periods presented. | ||||||||||
Aerospace [Member] | |||||||||||
Reconciliation of segment profit to consolidated [Abstract] | |||||||||||
Segment Reporting Segment Profit Loss | 2,915,000,000 | 2,870,000,000 | 2,711,000,000 | ||||||||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||||||||||
Repositioning and other charges | -193,000,000 | -235,000,000 | -192,000,000 | ||||||||
Segment Reporting Information [Line Items] | |||||||||||
Product sales | 10,773,000,000 | 10,798,000,000 | 10,560,000,000 | ||||||||
Service sales | 4,825,000,000 | 4,937,000,000 | 5,041,000,000 | ||||||||
Net Sales | 15,598,000,000 | 15,735,000,000 | 15,601,000,000 | ||||||||
Depreciation and amortization | 277,000,000 | 290,000,000 | 296,000,000 | ||||||||
Segment Reporting Segment Profit Loss | 2,915,000,000 | 2,870,000,000 | 2,711,000,000 | ||||||||
Capital expenditures | 315,000,000 | 310,000,000 | 320,000,000 | ||||||||
Total Assets | 11,151,000,000 | 11,379,000,000 | 11,151,000,000 | 11,379,000,000 | 11,024,000,000 | ||||||
Automation and Control Solutions [Member] | |||||||||||
Reconciliation of segment profit to consolidated [Abstract] | |||||||||||
Segment Reporting Segment Profit Loss | 2,200,000,000 | 1,983,000,000 | 1,836,000,000 | ||||||||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||||||||||
Repositioning and other charges | -80,000,000 | -68,000,000 | -13,000,000 | ||||||||
Segment Reporting Information [Line Items] | |||||||||||
Product sales | 13,219,000,000 | 12,253,000,000 | 11,581,000,000 | ||||||||
Service sales | 1,268,000,000 | 1,212,000,000 | 1,206,000,000 | ||||||||
Net Sales | 14,487,000,000 | 13,465,000,000 | 12,787,000,000 | ||||||||
Depreciation and amortization | 306,000,000 | 302,000,000 | 302,000,000 | ||||||||
Segment Reporting Segment Profit Loss | 2,200,000,000 | 1,983,000,000 | 1,836,000,000 | ||||||||
Capital expenditures | 145,000,000 | 132,000,000 | 114,000,000 | ||||||||
Total Assets | 17,191,000,000 | 17,675,000,000 | 17,191,000,000 | 17,675,000,000 | 15,996,000,000 | ||||||
Performance Materials And Technologies [Member] | |||||||||||
Reconciliation of segment profit to consolidated [Abstract] | |||||||||||
Segment Reporting Segment Profit Loss | 1,817,000,000 | 1,725,000,000 | 1,550,000,000 | ||||||||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||||||||||
Repositioning and other charges | -33,000,000 | -56,000,000 | -17,000,000 | ||||||||
Segment Reporting Information [Line Items] | |||||||||||
Product sales | 8,406,000,000 | 8,163,000,000 | 7,671,000,000 | ||||||||
Service sales | 1,815,000,000 | 1,692,000,000 | 1,606,000,000 | ||||||||
Net Sales | 10,221,000,000 | 9,855,000,000 | 9,277,000,000 | ||||||||
Depreciation and amortization | 284,000,000 | 336,000,000 | 265,000,000 | ||||||||
Segment Reporting Segment Profit Loss | 1,817,000,000 | 1,725,000,000 | 1,550,000,000 | ||||||||
Capital expenditures | 537,000,000 | 448,000,000 | 357,000,000 | ||||||||
Total Assets | 9,699,000,000 | 9,534,000,000 | 9,699,000,000 | 9,534,000,000 | 9,154,000,000 | ||||||
Corporate [Member] | |||||||||||
Reconciliation of segment profit to consolidated [Abstract] | |||||||||||
Segment Reporting Segment Profit Loss | -236,000,000 | -227,000,000 | -218,000,000 | ||||||||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||||||||||
Repositioning and other charges | -292,000,000 | -304,000,000 | -221,000,000 | ||||||||
Segment Reporting Information [Line Items] | |||||||||||
Depreciation and amortization | 57,000,000 | 61,000,000 | 63,000,000 | ||||||||
Segment Reporting Segment Profit Loss | -236,000,000 | -227,000,000 | -218,000,000 | ||||||||
Capital expenditures | 97,000,000 | 57,000,000 | 93,000,000 | ||||||||
Total Assets | 7,410,000,000 | 6,847,000,000 | 7,410,000,000 | 6,847,000,000 | 5,679,000,000 | ||||||
Pension Plans, Defined Benefit [Member] | |||||||||||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||||||||||
Benefit plans income/(expense) | 254,000,000 | 90,000,000 | -36,000,000 | ||||||||
Pension mark-to-market adjustment | -249,000,000 | -51,000,000 | -957,000,000 | ||||||||
Other Postretirement Benefit Plans [Member] | |||||||||||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||||||||||
Benefit plans income/(expense) | ($49,000,000) | ($20,000,000) | ($72,000,000) |
GEOGRAPHIC_AREAS_FINANCIAL_DAT2
GEOGRAPHIC AREAS FINANCIAL DATA (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Geographic Areas [Line Items] | |||||||||||
Net sales | $10,266 | $10,108 | $10,253 | $9,679 | $10,387 | $9,647 | $9,693 | $9,328 | $40,306 | $39,055 | $37,665 |
Export sales included in United States net sales | 5,647 | 5,431 | 5,126 | ||||||||
Long-Lived Assets | 5,383 | 5,278 | 5,383 | 5,278 | 5,001 | ||||||
United States [Member] | |||||||||||
Geographic Areas [Line Items] | |||||||||||
Net sales | 23,911 | 22,978 | 22,379 | ||||||||
Long-Lived Assets | 3,612 | 3,393 | 3,612 | 3,393 | 3,118 | ||||||
Europe [Member] | |||||||||||
Geographic Areas [Line Items] | |||||||||||
Net sales | 9,870 | 9,804 | 9,118 | ||||||||
Long-Lived Assets | 741 | 905 | 741 | 905 | 932 | ||||||
Other International [Member] | |||||||||||
Geographic Areas [Line Items] | |||||||||||
Net sales | 6,525 | 6,273 | 6,168 | ||||||||
Long-Lived Assets | $1,030 | $980 | $1,030 | $980 | $951 |
SUPPLEMENTAL_CASH_FLOW_INFORMA2
SUPPLEMENTAL CASH FLOW INFORMATION (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Non-cash investing and financing activities [Abstract] | |||
Common stock contributed to savings plans | $168,000,000 | $159,000,000 | $144,000,000 |
Marketable securities contributed to non-U.S. pension plans | 117,000,000 | 0 | 0 |
Payments for repositioning and other charges [Abstract] | |||
Severance and exit cost payments | -161,000,000 | -160,000,000 | -136,000,000 |
Environmental payments | -321,000,000 | -304,000,000 | -320,000,000 |
Insurance receipts for asbestos related liabilities | 211,000,000 | 58,000,000 | 122,000,000 |
Asbestos related liability payments | -259,000,000 | -357,000,000 | -169,000,000 |
Net payments for repositioning and other charges | -530,000,000 | -763,000,000 | -503,000,000 |
Interest paid, net of amounts capitalized | 312,000,000 | 330,000,000 | 344,000,000 |
Income taxes paid, net of refunds | $1,142,000,000 | $1,271,000,000 | $919,000,000 |
UNAUDITED_QUARTERLY_FINANCIAL_2
UNAUDITED QUARTERLY FINANCIAL INFORMATION (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Selected Quarterly Financial Information Abstract | |||||||||||
Net sales | $10,266 | $10,108 | $10,253 | $9,679 | $10,387 | $9,647 | $9,693 | $9,328 | $40,306 | $39,055 | $37,665 |
Gross Profit | 2,700 | 2,980 | 2,957 | 2,712 | 2,775 | 2,705 | 2,666 | 2,545 | 11,349 | 10,691 | |
Net income attributable to Honeywell | $956 | $1,167 | $1,099 | $1,017 | $947 | $990 | $1,021 | $966 | $4,239 | $3,924 | $2,926 |
Earnings per share - Basic | $1.22 | $1.49 | $1.40 | $1.30 | $1.20 | $1.26 | $1.30 | $1.23 | $5.40 | $4.99 | $3.74 |
Earnings per share - assuming dilution | $1.20 | $1.47 | $1.38 | $1.28 | $1.19 | $1.24 | $1.28 | $1.21 | $5.33 | $4.92 | $3.69 |
Dividends paid per share | $0.52 | $0.45 | $0.45 | $0.45 | $0.45 | $0.41 | $0.41 | $0.41 | $1.87 | $1.68 | $1.53 |
Market Price [Abstract] | |||||||||||
Market price per share high | $101.98 | $97.34 | $95.81 | $95.44 | $91.37 | $86.79 | $80.85 | $75.48 | $101.98 | $91.37 | |
Market price per share low | $85.11 | $90.56 | $90.36 | $88.47 | $81.45 | $77.88 | $71.47 | $64.75 | $85.11 | $64.75 |