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PENSION AND OTHER POSTRETIREMENT BENEFITS
9 Months Ended
Sep. 30, 2013
Pension and Other Post Retirements Disclosure Paragraph Details [Abstract]  
Pension and Other Postretirement Benefits

Note 16. Pension and Other Postretirement Benefits

 

       Net periodic pension and other postretirement benefits costs for our significant defined benefit plans include the following components:

 

Pension Benefits            
   U.S. Plans
   Three Months Ended  Nine Months Ended
   September 30,   September 30,
   2013  2012  2013  2012
             
Service cost $ 68 $ 64 $ 204 $ 192
Interest cost   169   184   505   553
Expected return on plan assets   (268)   (255)   (804)   (765)
Amortization of prior service cost   5   7   17   21
  $ (26) $ - $ (78) $ 1
             
   Non-U.S. Plans
   Three Months Ended  Nine Months Ended
   September 30,   September 30,
   2013  2012  2013  2012
             
Service cost $ 14 $ 12 $ 42 $ 36
Interest cost   53   55   160   165
Expected return on plan assets   (76)   (72)   (228)   (217)
Amortization of transition obligation   -   -   1   1
Amortization of prior service (credit)   -   -   (1)   (1)
Settlements and curtailments   -   -   -   2
  $ (9) $ (5) $ (26) $ (14)
             
             
Other Postretirement Benefits            
   Three Months Ended  Nine Months Ended
   September 30,   September 30,
   2013  2012  2013  2012
             
Service cost $ - $ - $ - $ -
Interest cost   9   13   33   40
Amortization of prior service (credit)   (5)   (3)   (8)   (10)
Recognition of actuarial losses   2   9   22   25
Settlements and curtailments   -   -   (42)   (6)
  $ 6 $ 19 $ 5 $ 49
             

Honeywell made cash contributions of $151 million to our non-U.S. pension plans in the nine months ended September 30, 2013.

 

In the third quarter of 2013, Honeywell amended its U.S. retiree medical plan to no longer offer certain retirees Honeywell group coverage.  This plan amendment reduced the accumulated postretirement benefit obligation by $166 million which will be recognized as part of net periodic postretirement benefit cost over the expected future lifetime of the remaining participants in the plan.

 

During the second quarter of 2013, in connection with a new collective bargaining agreement reached with a union group, Honeywell amended its U.S. retiree medical plan eliminating the Company subsidy for these union employees.  The plan amendment resulted in a curtailment gain of $42 million in the second quarter of 2013 which was included as part of net periodic postretirement benefit cost. The curtailment gain represents the recognition of previously unrecognized prior service credits attributable to the future years of service of the union group for which future accrual of benefits has been eliminated.

 

If required, a mark to market adjustment will be recorded in the fourth quarter of 2013 in accordance with our pension accounting method as described in Note 1 to our financial statements for the year ended December 31, 2012 contained in our Form 10-K filed on February 15, 2013.