10-Q

United States

Securities and Exchange Commission

Washington, D.C. 20549

Form 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2015

OR

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from              to              

Commission file number 1-8974

Honeywell International Inc.

(Exact name of registrant as specified in its charter)

Delaware	22-2640650
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)
101 Columbia Road Morris Township, New Jersey	07962
(Address of principal executive offices)	(Zip Code)

(973) 455-2000

(Registrant’s telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year,

if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  x   No  o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes  x  No  o

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a small reporting company. See definitions of “accelerated filer,” “large accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer x Accelerated filer o Non-Accelerated filer o Smaller reporting company o

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes  o   No   x

There were 781,707,489 shares of Common Stock outstanding at March 31, 2015.

Honeywell International Inc.

Index

			Page No.
Part I.		Financial Information
	Item 1.	Financial Statements:
		Consolidated Statement of Operations (unaudited) – Three Months Ended March 31, 2015 and 2014	3
		Consolidated Statement of Comprehensive Income (unaudited) – Three Months Ended March 31, 2015 and 2014	4
		Consolidated Balance Sheet (unaudited) – March 31, 2015 and December 31, 2014	5
		Consolidated Statement of Cash Flows (unaudited) – Three Months Ended March 31, 2015 and 2014	6
		Notes to Financial Statements (unaudited)	7
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	20
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	26
	Item 4.	Controls and Procedures	26
Part II.		Other Information
	Item 1.	Legal Proceedings	27
	Item 2.	Changes in Securities and Use of Proceeds	27
	Item 6.	Exhibits	27
Signatures			28

Cautionary Statement about Forward-Looking Statements

This report contains “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are those that address activities, events or developments that we or our management intends, expects, projects, believes or anticipates will or may occur in the future. They are based on management’s assumptions and assessments in the light of past experience and trends, current economic and industry conditions, expected future developments and other relevant factors. They are not guarantees of future performance, and actual results, developments and business decisions may differ from those envisaged by our forward-looking statements. Our forward-looking statements are also subject to risks and uncertainties, which can affect our performance in both the near- and long-term. These forward-looking statements should be considered in the light of the information included in this report and our other filings with the Securities and Exchange Commission, including, without limitation, the Risk Factors, as well as the description of trends and other factors in Management’s Discussion and Analysis of Financial Condition and Results of Operations, set forth in our Form 10-K for the year ended December 31, 2014.

2

PART I. FINANCIAL INFORMATION

The financial statements and related footnotes as of March 31, 2015 should be read in conjunction with the financial statements for the year ended December 31, 2014 contained in our 2014 Annual Report on Form 10-K.

ITEM 1. FINANCIAL STATEMENTS

Honeywell International Inc.

Consolidated Statement of Operations

(Unaudited)

	Three Months Ended
	March 31,
	2015			2014
	(Dollars in millions, except per share amounts)
Product sales	$	7,364		$	7,845
Service sales		1,849			1,834
Net sales		9,213			9,679
Costs, expenses and other
Cost of products sold		5,213			5,779
Cost of services sold		1,149			1,188
		6,362			6,967
Selling, general and administrative expenses		1,230			1,339
Other (income) expense		(20	)		(117	)
Interest and other financial charges		77			79
		7,649			8,268
Income before taxes		1,564			1,411
Tax expense		418			375
Net income		1,146			1,036
Less: Net income attributable to the noncontrolling interest		30			19
Net income attributable to Honeywell	$	1,116		$	1,017
Earnings per share of common stock - basic:	$	1.42		$	1.30
Earnings per share of common stock - assuming dilution:	$	1.41		$	1.28
Cash dividends per share of common stock	$	0.5175		$	0.4500

The Notes to Financial Statements are an integral part of this statement. 

3

Honeywell International Inc.

Consolidated Statement of Comprehensive Income

(Unaudited)

	Three Months Ended
	March 31,
	2015			2014
	(Dollars in millions)
Net income	$	1,146		$	1,036
Other comprehensive loss, net of tax
Foreign exchange translation adjustment		(721	)		(5	)
Actuarial (losses) gains recognized		(2	)		4
Prior service costs recognized		5			—
Pension and other postretirement benefits adjustments		3			4
Unrealized losses		—			(11	)
Less: Reclassification adjustment for gains included in net income		—			71
Changes in fair value of available for sale investments		—			(82	)
Effective portion of cash flow hedges recognized in other comprehensive income		105			9
Less: Reclassification adjustment for gains (losses) included in net income		27			(4	)
Changes in fair value of effective cash flow hedges		78			13
Other comprehensive loss, net of tax		(640	)		(70	)
Comprehensive income		506			966
Less: Comprehensive income attributable to the noncontrolling interest		30			19
Comprehensive income attributable to Honeywell	$	476		$	947

The Notes to Financial Statements are an integral part of this statement. 

4

Honeywell International Inc.

Consolidated Balance Sheet

(Unaudited)

	March 31,			December 31,
	2015			2014
	(Dollars in millions)
ASSETS
Current assets:
Cash and cash equivalents	$	6,575		$	6,959
Accounts, notes and other receivables		8,158			7,960
Inventories		4,507			4,405
Deferred income taxes		656			722
Investments and other current assets		2,376			2,145
Total current assets		22,272			22,191
Investments and long-term receivables		464			465
Property, plant and equipment - net		5,300			5,383
Goodwill		12,685			12,788
Other intangible assets - net		2,190			2,208
Insurance recoveries for asbestos related liabilities		445			454
Deferred income taxes		329			404
Other assets		1,672			1,558
Total assets	$	45,357		$	45,451
LIABILITIES
Current liabilities:
Accounts payable	$	5,263		$	5,365
Short-term borrowings		47			51
Commercial paper		2,695			1,647
Current maturities of long-term debt		1,304			939
Accrued liabilities		6,123			6,771
Total current liabilities		15,432			14,773
Long-term debt		5,661			6,046
Deferred income taxes		210			236
Postretirement benefit obligations other than pensions		911			911
Asbestos related liabilities		1,197			1,200
Other liabilities		4,027			4,282
Redeemable noncontrolling interest		242			219
SHAREOWNERS’ EQUITY
Capital - common stock issued		958			958
- additional paid-in capital		5,153			5,038
Common stock held in treasury, at cost		(10,281	)		(9,995	)
Accumulated other comprehensive loss		(2,099	)		(1,459	)
Retained earnings		23,811			23,115
Total Honeywell shareowners’ equity		17,542			17,657
Noncontrolling interest		135			127
Total shareowners’ equity		17,677			17,784
Total liabilities, redeemable noncontrolling interest and shareowners’ equity	$	45,357		$	45,451

The Notes to Financial Statements are an integral part of this statement. 

5

Honeywell International Inc.

Consolidated Statement of Cash Flows

(Unaudited)

	Three Months Ended
	March 31,
	2015			2014
	(Dollars in millions)
Cash flows from operating activities:
Net income	$	1,146		$	1,036
Less: Net income attributable to the noncontrolling interest		30			19
Net income attributable to Honeywell		1,116			1,017
Adjustments to reconcile net income attributable to Honeywell to net cash provided by operating activities:
Depreciation		163			168
Amortization		53			70
Gain on sale of available for sale investments		—			(105	)
Repositioning and other charges		131			214
Net payments for repositioning and other charges		(100	)		(125	)
Pension and other postretirement income		(91	)		(49	)
Pension and other postretirement benefit payments		(9	)		(36	)
Stock compensation expense		52			52
Deferred income taxes		93			2
Excess tax benefits from share based payment arrangements		(47	)		(30	)
Other		(102	)		(24	)
Changes in assets and liabilities, net of the effects of acquisitions and divestitures:
Accounts, notes and other receivables		(170	)		(154	)
Inventories		(86	)		(115	)
Other current assets		58			236
Accounts payable		(112	)		(41	)
Accrued liabilities		(528	)		(392	)
Net cash provided by operating activities		421			688
Cash flows from investing activities:
Expenditures for property, plant and equipment		(165	)		(192	)
Proceeds from disposals of property, plant and equipment		1			7
Increase in investments		(1,501	)		(631	)
Decrease in investments		1,106			410
Cash paid for acquisitions, net of cash acquired		(185	)		—
Proceeds from sales of businesses, net of fees paid		2			—
Other		(178	)		61
Net cash used for investing activities		(920	)		(345	)
Cash flows from financing activities:
Net increase in commercial paper		1,048			1,100
Net increase (decrease) in short-term borrowings		4			(10	)
Proceeds from issuance of common stock		78			92
Proceeds from issuance of long-term debt		3			25
Payments of long-term debt		(35	)		(602	)
Excess tax benefits from share based payment arrangements		47			30
Repurchases of common stock		(363	)		(320	)
Cash dividends paid		(415	)		(363	)
Net cash provided by (used for) financing activities		367			(48	)
Effect of foreign exchange rate changes on cash and cash equivalents		(252	)		(45	)
Net (decrease) increase in cash and cash equivalents		(384	)		250
Cash and cash equivalents at beginning of period		6,959			6,422
Cash and cash equivalents at end of period	$	6,575			6,672

The Notes to Financial Statements are an integral part of this statement. 

6

Honeywell International Inc.

Notes to Financial Statements

(Unaudited)

(Dollars in millions, except per share amounts)

Note 1. Basis of Presentation

In the opinion of management, the accompanying unaudited consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, necessary to present fairly the financial position of Honeywell International Inc. and its consolidated subsidiaries (Honeywell or the Company) at March 31, 2015 and the results of operations and cash flows for the three months ended March 31, 2015 and 2014. The results of operations for the three months ended March 31, 2015 should not necessarily be taken as indicative of the results of operations that may be expected for the entire year.

We report our quarterly financial information using a calendar convention; that is, the first, second and third quarters are consistently reported as ending on March 31, June 30 and September 30. It has been our practice to establish actual quarterly closing dates using a predetermined fiscal calendar, which requires our businesses to close their books on a Saturday in order to minimize the potentially disruptive effects of quarterly closing on our business processes. The effects of this practice are generally not significant to reported results for any quarter and only exist within a reporting year. If differences in actual closing dates are material to year-over-year comparisons of quarterly or year-to-date results, we provide appropriate disclosures. Our actual closing dates for the three months ended March 31, 2015 and 2014 were March 28, 2015 and March 29, 2014.

Certain prior year amounts have been reclassified to conform to current year presentation.

Note 2. Recent Accounting Pronouncements

The Company considers the applicability and impact of all accounting standard updates (ASUs). ASUs 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 Financial Accounting Standards Board (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. 

7

Honeywell International Inc.

Notes to Financial Statements

(Unaudited)

(Dollars in millions, except per share amounts)

Note 3. Repositioning and Other Charges

A summary of repositioning and other charges follows:

	Three Months Ended March 31,
	2015			2014
Severance	$	37		$	71
Asset impairments		8			9
Exit costs		1			8
Adjustments		(7	)		(6	)
Total net repositioning charge		39			82
Asbestos related litigation charges, net of insurance		46			48
Probable and reasonably estimable environmental liabilities		46			82
Other		—			2
Total net repositioning and other charges	$	131		$	214

The following table summarizes the pretax distribution of total net repositioning and other charges by income statement classification:

	Three Months Ended March 31,
	2015		2014
Cost of products and services sold	$	122	$	191
Selling, general and administrative expenses		9		23
	$	131	$	214

The following table summarizes the pretax impact of total net repositioning and other charges by segment:

	Three Months Ended March 31,
	2015		2014
Aerospace	$	48	$	76
Automation and Control Solutions		24		46
Performance Materials and Technologies		7		14
Corporate		52		78
	$	131	$	214

In the quarter ended March 31, 2015, we recognized repositioning charges totaling $46 million including severance costs of $37 million related to workforce reductions of 3,040 manufacturing and administrative positions across our segments. The workforce reductions were primarily related to cost savings actions taken in connection with our productivity and ongoing functional transformation initiatives and outsourcing of certain component manufacturing in our Automation and Control Solutions (ACS) segment.

In the quarter ended March 31, 2014, we recognized repositioning charges totaling $88 million including severance costs of $71 million related to workforce reductions of 1,520 manufacturing and administrative positions across our segments. The workforce reductions were primarily related to cost savings actions taken in

8

Honeywell International Inc.

Notes to Financial Statements

(Unaudited)

(Dollars in millions, except per share amounts)

connection with our productivity and ongoing functional transformation initiatives, factory transitions in ACS to more cost-effective locations, site consolidations and organizational realignments of businesses in ACS.

The following table summarizes the status of our total repositioning reserves:

	Severance Costs			Asset Impairments			Exit Costs			Total
December 31, 2014	$	285		$	—		$	30		$	315
Charges		37			8			1			46
Usage - cash		(24	)		—			(3	)		(27	)
Usage - noncash		—			(8	)		—			(8	)
Foreign currency translation		(9	)		—			(2	)		(11	)
Adjustments		(3	)		—			(4	)		(7	)
March 31, 2015	$	286		$	—		$	22		$	308

Certain repositioning projects in our segments in 2015 and 2014 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.

Note 4. Earnings Per Share

	Three Months Ended March 31,
Basic	2015		2014
Net income attributable to Honeywell	$	1,116	$	1,017
Weighted average shares outstanding		783.8		784.9
Earnings per share of common stock	$	1.42	$	1.30
	Three Months Ended March 31,
Assuming Dilution	2015		2014
Net income attributable to Honeywell	$	1,116	$	1,017
Average Shares
Weighted average shares outstanding		783.8		784.9
Dilutive securities issuable - stock plans		10.2		11.5
Total weighted average shares outstanding		794.0		796.4
Earnings per share of common stock	$	1.41	$	1.28

The diluted earnings per share calculations exclude the effect of stock options when the options’ assumed proceeds exceed the average market price of the common shares during the period. For the three months ended March 31, 2015 and 2014, the weighted average number of stock options excluded from the computations was 7.8 million and 2.0 million, respectively. These stock options were outstanding at the end of each of the respective periods.

9

Honeywell International Inc.

Notes to Financial Statements

(Unaudited)

(Dollars in millions, except per share amounts)

Note 5. Accounts, Notes and Other Receivables

	March 31, 2015			December 31, 2014
Trade	$	7,868		$	7,788
Other		557			445
		8,425			8,233
Less: Allowance for doubtful accounts		(267	)		(273	)
	$	8,158		$	7,960

Trade receivables include $1,730 and $1,636 million of unbilled balances under long-term contracts as of March 31, 2015 and December 31, 2014.

Note 6. Inventories

	March 31, 2015			December 31, 2014
Raw materials	$	1,088		$	1,124
Work in process		828			815
Finished products		2,708			2,634
		4,624			4,573
Reduction to LIFO cost basis		(117	)		(168	)
	$	4,507		$	4,405

10

Honeywell International Inc.

Notes to Financial Statements

(Unaudited)

(Dollars in millions, except per share amounts)

Note 7. Long-term Debt

	March 31, 2015			December 31, 2014
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			30
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		518			538
		6,965			6,985
Less: current portion		(1,304	)		(939	)
	$	5,661		$	6,046

Note 8. Financial Instruments and Fair Value Measures

Our credit, market, foreign currency and interest rate risk management policies are described in Note 14, Financial Instruments and Fair Value Measures, of Notes to Financial Statements in our 2014 Annual Report on Form 10-K.

Financial and nonfinancial assets and liabilities are classified 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:

	March 31, 2015		December 31, 2014
Assets:
Foreign currency exchange contracts	$	135	$	20
Available for sale investments		1,767		1,479
Interest rate swap agreements		108		93
Liabilities:
Foreign currency exchange contracts	$	29	$	10

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. These derivative instruments are classified within level 2 of the fair value hierarchy. The Company holds investments in certificates of deposits, time deposits and commercial paper that are designated as available for sale and are valued using market transactions in over-the-counter markets. These investments are classified within level 2 of the fair value hierarchy. 

11

Honeywell International Inc.

Notes to Financial Statements

(Unaudited)

(Dollars in millions, except per share amounts)

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:

	March 31, 2015				December 31, 2014
	Carrying		Fair		Carrying		Fair
	Value		Value		Value		Value
Assets
Long-term receivables	$	297	$	292	$	297	$	293
Liabilities
Long-term debt and related current maturities	$	6,965	$	7,813	$	6,985	$	7,817

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. These receivables are classified within level 2 of the fair value hierarchy. 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. The long-term debt and related current maturities are also classified within level 2 of the fair value hierarchy.

We enter into transactions 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. For the three months ended March 31, 2015 and 2014, we recognized $15 million and $13 million of gains in earnings on interest rate swap agreements. 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 $162 million of expense and $57 million of income in Other (Income) Expense for the three months ended March 31, 2015 and 2014. 

12

Honeywell International Inc.

Notes to Financial Statements

(Unaudited)

(Dollars in millions, except per share amounts)

Note 9. Accumulated Other Comprehensive Income (Loss)

Changes in Accumulated Other Comprehensive Income by Component

							Changes in			Changes in
	Foreign			Pension			Fair Value			Fair Value
	Exchange			and Other			of Available			of Effective
	Translation			Postretirement			for Sale			Cash Flow
	Adjustment			Adjustments			Investments			Hedges			Total
Balance at December 31, 2014	$	(740	)	$	(728	)	$	—		$	9		$	(1,459	)
Other comprehensive income (loss) before reclassifications		(721	)		—			—			105			(616	)
Amounts reclassified from accumulated other comprehensive income		—			3			—			(27	)		(24	)
Net current period other comprehensive income (loss)		(721	)		3			—			78			(640	)
Balance at March 31, 2015	$	(1,461	)	$	(725	)	$	—		$	87		$	(2,099	)
							Changes in			Changes in
	Foreign			Pension			Fair Value			Fair Value
	Exchange			and Other			of Available			of 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		(5	)		—			(11	)		9			(7	)
Amounts reclassified from accumulated other comprehensive income		—			4			(71	)		4			(63	)
Net current period other comprehensive income (loss)		(5	)		4			(82	)		13			(70	)
Balance at March 31, 2014	$	299		$	359		$	88		$	2		$	748

13

Honeywell International Inc.

Notes to Financial Statements

(Unaudited)

(Dollars in millions, except per share amounts)

Note 10. Segment Financial Data

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 income (expense), stock compensation expense, repositioning and other charges and accounting changes.

	Three Months Ended
	March 31,
	2015			2014
Net Sales
Aerospace
Products	$	2,463		$	2,692
Services		1,144			1,159
Total		3,607			3,851
Automation and Control Solutions
Products		2,979			3,075
Services		285			287
Total		3,264			3,362
Performance Materials and Technologies
Products		1,922			2,078
Services		420			388
Total		2,342			2,466
	$	9,213		$	9,679
Segment Profit
Aerospace	$	752		$	703
Automation and Control Solutions		516			471
Performance Materials and Technologies		503			473
Corporate		(50	)		(51	)
Total segment profit		1,721			1,596
Other income (expense)(a)		12			111
Interest and other financial charges		(77	)		(79	)
Stock compensation expense(b)		(52	)		(52	)
Pension ongoing income(b)		100			61
Other postretirement expense(b)		(9	)		(12	)
Repositioning and other charges (b)		(131	)		(214	)
Income before taxes	$	1,564		$	1,411

(a)	Equity income (loss) of affiliated companies is included in segment profit.
(b)	Amounts included in cost of products and services sold and selling, general and administrative expenses.

Note 11. Pension Benefits

Net periodic pension benefit costs for our significant defined benefit plans include the following components:

14

Honeywell International Inc.

Notes to Financial Statements

(Unaudited)

(Dollars in millions, except per share amounts)

	Three Months Ended
	U.S. Plans						Non-U.S. Plans
	March 31,						March 31,
	2015			2014			2015			2014
Service cost	$	57		$	60		$	13		$	14
Interest cost		178			193			44			58
Expected return on plan assets		(320	)		(314	)		(90	)		(89	)
Amortization of prior service cost		6			6			—			—
	$	(79	)	$	(55	)	$	(33	)	$	(17	)

In the first quarter of 2015, Honeywell contributed $109 million of marketable securities and $4 million of cash to our non-U.S. pension plans.

Note 12. Commitments and Contingencies

Environmental Matters

Our environmental matters are described in Note 19, Commitments and Contingencies, of Notes to Financial Statements in our 2014 Annual Report on Form 10-K.

The following table summarizes information concerning our recorded liabilities for environmental costs:

December 31, 2014	$	591
Accruals for environmental matters deemed probable and reasonably estimable		46
Environmental liability payments		(35	)
March 31, 2015	$	602

Environmental liabilities are included in the following balance sheet accounts:

	March 31,		December 31,
	2015		2014
Accrued liabilities	$	278	$	278
Other liabilities		324		313
	$	602	$	591

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 our accounting policy.

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:

15

Honeywell International Inc.

Notes to Financial Statements

(Unaudited)

(Dollars in millions, except per share amounts)

1. 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.

2. Bendix Friction Materials (Bendix), 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

	Bendix			NARCO			Total
December 31, 2014	$	623		$	929		$	1,552
Accrual for update to estimated liability		48			1			49
Asbestos related liability payments		(49	)		(3	)		(52	)
March 31, 2015	$	622		$	927		$	1,549

Insurance Recoveries for Asbestos Related Liabilities

	Bendix			NARCO			Total
December 31, 2014	$	135		$	350		$	485
Probable insurance recoveries related to estimated liability		5			—			5
Insurance receivables settlements		1			—			1
Insurance receipts for asbestos related liabilities		(7	)		(7	)		(14	)
March 31, 2015	$	134		$	343		$	477

NARCO and Bendix asbestos related balances are included in the following balance sheet accounts:

	March 31,		December 31,
	2015		2014
Other current assets	$	32	$	31
Insurance recoveries for asbestos related liabilities		445		454
	$	477	$	485
Accrued liabilities	$	352	$	352
Asbestos related liabilities		1,197		1,200
	$	1,549	$	1,552

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

16

Honeywell International Inc.

Notes to Financial Statements

(Unaudited)

(Dollars in millions, except per share amounts)

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 March 31, 2015, 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 expected to be paid during the initial years of trust operations. 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 ($37 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:

17

Honeywell International Inc.

Notes to Financial Statements

(Unaudited)

(Dollars in millions, except per share amounts)

	Three Months Ended			Years Ended
	March 31,			December 31,
Claims Activity	2015			2014			2013
Claims Unresolved at the beginning of period		9,267			12,302			23,141
Claims Filed		707			3,694			4,527
Claims Resolved (a)		(781	)		(6,729	)		(15,366	)
Claims Unresolved at the end of period		9,193			9,267			12,302

(a) Claims resolved in 2014 include 2,110 cancer claims which were determined to have no value. Also, claims resolved in 2014 and 2013 included 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 Unresolved Claims		March 31,	December 31,
	2015		2014		2013
Mesothelioma and Other Cancer Claims		3,773		3,933		5,810
Nonmalignant Claims		5,420		5,334		6,492
Total Claims		9,193		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.

18

Honeywell International Inc.

Notes to Financial Statements

(Unaudited)

(Dollars in millions, except per share amounts)

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

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 a ruling on January 26, 2015, the Supreme Court held that retiree health insurance benefits provided in collective bargaining agreements do not carry an inference that they are vested or guaranteed to continue for life and that the “vesting” issue must be decided pursuant to ordinary principles of contract law. Based on this ruling, 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.

19

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS (MD&A)
(Dollars in millions, except per share amounts)

The following MD&A is intended to help the reader understand the results of operations and financial condition of Honeywell International Inc. and its consolidated subsidiaries (Honeywell or the Company) for the three months ended March 31, 2015. The financial information as of March 31, 2015 should be read in conjunction with the financial statements for the year ended December 31, 2014 contained in our 2014 Annual Report on Form 10-K.

A. Results of Operations – three months ended March 31, 2015 compared with the three months ended March 31, 2014

Net Sales

	Three Months Ended March 31,
	2015			2014
Net sales	$	9,213		$	9,679
% change compared with prior period		(5	)%

The change in net sales compared to the prior year period is attributable to the following:

	Three Months
Volume	2	%
Price	(1	)%
Foreign Exchange	(4	)%
Acquisitions/Divestitures	(2	)%
	(5	)%

A discussion of net sales by segment can be found in the Review of Business Segments section of this MD&A.

Cost of Products and Services Sold

	Three Months Ended March 31,
	2015			2014
Cost of products and services sold	$	6,362		$	6,967
% change compared with prior period		(9	)%
Gross margin percentage		30.9	%		28.0	%

Cost of products and services sold decreased principally due to a decrease in direct and indirect material costs of approximately $360 million (driven primarily by the favorable impact of foreign exchange and productivity), a decrease in labor costs of approximately $125 million and lower repositioning and other charges of approximately $70 million.

Gross margin percentage increased primarily due to higher segment gross margin in all business segments (approximately 2.0 percentage point impact collectively) and lower repositioning and other charges (approximately 0.7 percentage point impact).

Selling, General and Administrative Expenses

	Three Months Ended March 31,
	2015			2014
Selling, general and administrative expenses	$	1,230		$	1,339
Percent of sales		13.4	%		13.8	%

20

Selling, general and administrative expenses decreased as a percentage of sales primarily driven by the favorable impact from foreign exchange, a decrease in labor costs (driven primarily by productivity, partially offset by merit increases and investments for growth), decreased indirect costs and lower repositioning and other charges.

Tax Expense

	Three Months Ended March 31,
	2015			2014
Tax expense	$	418		$	375
Effective tax rate		26.7	%		26.6	%

The effective tax rates for the three months ended in 2015 and 2014 were lower than the U.S. federal statutory rate of 35% due, in part, to non-U.S. earnings taxed at lower rates and benefits from manufacturing incentives.

Net Income Attributable to Honeywell

	Three Months Ended March 31,
	2015		2014
Net income attributable to Honeywell	$	1,116	$	1,017
Earnings per share of common stock – assuming dilution	$	1.41	$	1.28

Earnings per share of common stock – assuming dilution increased primarily due to increased segment profit in each business segment and lower repositioning and other charges, partially offset by lower other income (principally due to the absence of a realized gain related to the prior year sale of marketable equity securities) and increased tax expense.

21

Review of Business Segments

	Three Months Ended March 31,				%
	2015		2014		Change
Aerospace Sales
Commercial Original Equipment	$	683	$	684		—
Commercial Aftermarket		1,082		1,082		—
Defense and Space		1,075		1,092		(2	)%
Transportation Systems		767		993		(23	)%
Total Aerospace Sales		3,607		3,851
Automation and Control Solutions Sales
Energy Safety & Security		2,234		2,301		(3	)%
Building Solutions & Distribution		1,030		1,061		(3	)%
Total Automation and Control Solution Sales		3,264		3,362
Performance Materials and Technologies
UOP		914		846		8	%
Process Solutions		632		712		(11	)%
Advanced Materials		796		908		(12	)%
Total Performance Materials and Technologies Sales		2,342		2,466
Net Sales	$	9,213	$	9,679

Aerospace

	Three Months Ended March 31,
	2015		2014		% Change
Net sales	$	3,607	$	3,851		(6	)%
Cost of products and service sold		2,619		2,903
Selling, general and administrative expenses		161		176
Other		75		69
Segment profit	$	752	$	703		7	%

	2015 vs. 2014
	Three Months Ended March 31,
Factors Contributing to Year-Over-Year Change	Sales			Segment Profit
Organic growth/ Operational segment profit		1	%		11	%
Foreign exchange		(3	)%		(4	)%
Acquisitions and divestitures, net		(4	)%		—
Total % Change		(6	)%		7	%

Aerospace sales decreased primarily due to the Friction Materials divestiture and unfavorable impact from foreign exchange, partially offset by an increase in organic sales.

22

• Commercial Original Equipment sales were flat (increased 1% organic) driven primarily by higher air transport volumes, consistent with the OE Manufacturers’ (OEM) higher production rates and higher business and general aviation engine shipments, offset by timing delays on certain business jet aircraft platforms.

• Commercial Aftermarket sales were flat (increased 1% organic) driven primarily by higher repair and overhaul activities, offset by lower sales of spare parts.

• Defense and Space sales decreased by 2% (decreased 1% organic) primarily due to lower U.S. government deliveries, partially offset by growth in international programs.

• Transportation Systems sales decreased by 23% (increased 5% organic) primarily due to the Friction Materials divestiture and unfavorable impact from foreign exchange, partially offset by continued growth from new platform launches and higher global gas turbo penetration.

Aerospace segment profit increased primarily due to an increase in operational segment profit, partially offset by the unfavorable impact from foreign exchange. The increase in operational segment profit is driven primarily by productivity, net of inflation, and favorable pricing. Cost of products and services sold totaled $2.6 billion, a decrease of $284 million, primarily due to the factors discussed above (excluding price).

Automation and Control Solutions

	Three Months Ended  March 31,
	2015		2014		% Change
Net sales	$	3,264	$	3,362		(3	)%
Cost of products and services sold		2,089		2,188
Selling, general and administrative expenses		587		637
Other		72		66
Segment profit	$	516	$	471		10	%

	2015 vs. 2014
	Three Months Ended March 31,
Factors Contributing to Year-Over-Year Change	Sales			Segment Profit
Organic growth/ Operational segment profit		3	%		15	%
Foreign exchange		(6	)%		(5	)%
Total % Change		(3	%)		10	%

Automation and Control Solutions (ACS) sales decreased primarily due to the unfavorable impact of foreign exchange partially offset by organic sales growth.

• Sales in Energy, Safety & Security decreased by 3% (increased 3% organic) principally due to the unfavorable impact of foreign exchange. Organic sales growth was primarily due to increases in sales volumes, most significantly in Scanning and Mobility driven by recent contract wins.

• Sales in Building Solutions & Distribution decreased by 3% (increased 3% organic) principally due to the unfavorable impact of foreign exchange partially offset by increased sales volumes in Americas Distribution.

23

ACS segment profit increased due to an increase in operational segment profit partially offset by the unfavorable impact of foreign exchange. The increase in operational segment profit is primarily due to the positive impact of productivity, net of inflation and higher organic sales volumes partially offset by continued investments for growth. Cost of products and services sold decreased by $99 million primarily due to the favorable impact of foreign exchange and productivity partially offset by higher organic sales volume and inflation.

Performance Materials and Technologies

	Three Months Ended March 31,
	2015		2014		Change
Net sales	$	2,342	$	2,466		(5	)%
Cost of products and services sold		1,582		1,706
Selling, general and administrative expenses		222		254
Other		35		33
Segment profit	$	503	$	473		6	%

	2015 vs. 2014
	Three Months Ended March 31,
Factors Contributing to Year-Over-Year Change	Sales			Segment Profit
Organic growth/ Operational segment profit		(1	)%		10	%
Foreign exchange		(4	)%		(4	)%
Total % Change		(5	)%		6	%

Performance Materials and Technologies sales decreased due to the unfavorable impact of foreign exchange and decreased organic sales growth.

• UOP sales increased 8% (increased 9% organic) driven primarily by higher gas processing and equipment revenues partially offset by lower engineering revenues due to order delays.

• Sales in Process Solutions decreased 11% (decreased 3% organic) principally due to the unfavorable impact of foreign exchange and lower volumes due to order delays partially offset by volume growth in advanced solutions software and services.

• Advanced Materials sales decreased 12% (decreased 9% organic) primarily driven by unfavorable pricing and unplanned plant outages in Resins and Chemicals partially offset by increased volume in Fluorine Products and Specialty Products. We anticipate unfavorable pricing to continue in 2015 primarily in Resins and Chemicals where sales fluctuate with the market price of certain raw materials, which are correlated to the price of oil.

PMT segment profit increased due to an increase in operational segment profit partially offset by the unfavorable impact of foreign exchange. The increase in operational segment profit is primarily due to price and productivity net of inflation and higher UOP sales volume partially offset by continued investments for growth. Cost of products and services sold decreased $124 million primarily due to the favorable impacts of inflation and foreign exchange partially offset by higher UOP sales volume and continued investments for growth.

Repositioning Charges

Our repositioning actions are expected to generate incremental pretax savings of $100 million to $125 million in 2015 compared with 2014 principally from planned workforce reductions. Cash spending related to our repositioning actions was $27 million in the three months ended March 31, 2015 and was funded through operating cash flows. In 2015, we expect cash spending for repositioning actions to be approximately $150 million and to be funded through operating cash flows.

24

B. Liquidity and Capital Resources

Cash Flow Summary

Our cash flows from operating, investing and financing activities, as reflected in the Consolidated Statement of Cash Flows are summarized as follows:

	Three Months Ended
	March 31,
	2015			2014
Cash provided by (used for):
Operating activities	$	421		$	688
Investing activities		(920	)		(345	)
Financing activities		367			(48	)
Effect of exchange rate changes on cash		(252	)		(45	)
Net (decrease) increase in cash and cash equivalents	$	(384	)	$	250

Cash provided by operating activities decreased by $267 million primarily due to (i) a $151 million Aerospace OEM incentive payment (ii) increased cash tax payments of $93 million (iii) a $78 million decrease in customer advances, and (iv) a $58 million unfavorable impact from working capital, partially offset by increased net income of $110 million.

Cash used for investing activities increased by $575 million primarily due to an increase of approximately $239 million in settlement payments of foreign currency exchange contracts used as economic hedges on certain non-functional currency denominated monetary assets and liabilities, an increase in cash paid for acquisitions of $185 million and a net $174 million increase in investments (primarily short-term marketable securities).

Cash provided by financing activities increased by $415 million primarily due to an increase in the net proceeds from debt issuances of $507 million partially offset by an increase in net repurchases of common stock of $57 million and an increase in cash dividends paid of $52 million.

Liquidity

The Company continues to manage its businesses to maximize operating cash flows as the primary source of liquidity. In addition to our available cash and operating cash flows, additional sources of liquidity include committed credit lines, short-term debt from the commercial paper market, long-term borrowings, as well as access to the public debt and equity markets. We continue to balance our cash and financing uses through investment in our existing core businesses, debt reduction, acquisition activity, share repurchases and dividends.

We continuously assess the relative strength of each business in our portfolio as to strategic fit, market position, profit and cash flow contribution in order to upgrade our combined portfolio and identify business units that will most benefit from increased investment. We identify acquisition candidates that will further our strategic plan and strengthen our existing core businesses. We also identify business units that do not fit into our long-term strategic plan based on their market position, relative profitability or growth potential. These businesses are considered for potential divestiture, restructuring or other repositioning actions subject to regulatory constraints.

In 2015, we are not required to make contributions to our U.S. pension plans. We plan to make contributions of cash and/or marketable securities of approximately $140 million ($109 million of marketable securities were contributed in January 2015) to our non-U.S. plans to satisfy regulatory funding standards. The timing and amount of contributions to both our U.S. and non-U.S. plans may be impacted by a number of factors, including the funded status of the plans.

During the first quarter of 2015, the Company repurchased $363 million of outstanding shares. Under the Company’s previously reported $5 billion share repurchase program, $3.7 billion remained available as of March 31, 2015 for additional share repurchases. Honeywell presently expects to repurchase outstanding shares from time to time to offset the dilutive impact of employee stock based compensation plans, including future option exercises, restricted unit vesting and matching contributions under our savings plans. In addition, the Company may repurchase additional shares if and when its net cash (cash and cash equivalents plus short-term available 

25

for sale investments less commercial paper, current maturities of long-term debt and long-term debt) exceeds $1 to $2 billion. The amount and timing of future repurchases may vary depending on market conditions and the level of operating, financing and other investing activities.

	March 31,			December 31,
	2015			2014
Cash and cash equivalents	$	6,575		$	6,959
Short-term available for sale investments		1,750			1,463
Cash		8,325			8,422
Commercial paper		2,695			1,647
Current maturities of long-term debt		1,304			939
Long-term debt		5,661			6,046
Debt		9,660			8,632
Net cash	$	(1,335	)	$	(210	)

C. Other Matters

Litigation

We are subject to a number of lawsuits, investigations and claims (some of which involve substantial amounts) arising out of the conduct of our business. See Note 12, Commitments and Contingencies, of Notes to Financial Statements for further discussion of environmental, asbestos and other litigation matters.

Critical Accounting Policies

The financial information as of March 31, 2015 should be read in conjunction with the financial statements for the year ended December 31, 2014 contained in our 2014 Annual Report on Form 10-K.

For a discussion of the Company’s critical accounting policies, see Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations in our 2014 Annual Report on Form 10-K.

Recent Accounting Pronouncements

See Note 2, Recent Accounting Pronouncements, of Notes to Financial Statements for a discussion of recent accounting pronouncements.

Item 3. Quantitative and Qualitative Disclosures about Market Risks

See our 2014 Annual Report on Form 10-K (Item 7A). As of March 31, 2015, there has been no material change in this information.

Item 4. Controls and Procedures

Honeywell management, including the Chief Executive Officer and Chief Financial Officer, conducted an evaluation of the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) or 15d-15(e) promulgated under the Securities Exchange Act of 1934, as amended (Exchange Act)) as of the end of the period covered by this Quarterly Report on Form 10-Q. Based upon that evaluation, the Chief Executive Officer and the Chief Financial Officer concluded that such disclosure controls and procedures were effective as of the end of the period covered by this Quarterly Report on Form 10-Q to ensure information required to be disclosed in the reports that Honeywell files or submits under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the Securities and Exchange Commission rules and forms, and that it is accumulated and communicated to our management, including our CEO, our CFO, and our Controller, as appropriate, to allow timely decisions regarding required disclosure. There have been no changes that have materially affected, or are reasonably likely to materially affect, Honeywell’s internal control over financial reporting that have occurred during the period covered by this Quarterly Report on Form 10-Q. 

26

Part II. Other Information

Item 1. Legal Proceedings

General Legal Matters

We are subject to a number of lawsuits, investigations and claims (some of which involve substantial amounts) arising out of the conduct of our business. See a discussion of environmental, asbestos and other litigation matters in Note 12, Commitments and Contingencies, of Notes to Financial Statements.

Environmental Matters Involving Potential Monetary Sanctions in Excess of $100,000

The Virginia Department of Environmental Quality (“DEQ”) has alleged that Honeywell’s facility in Hopewell, Virginia failed to comply with certain conditions of its wastewater discharge permit at various times between August 2013 and March 2015. Honeywell has met with the DEQ about this matter and negotiations to resolve it are ongoing. We do not believe that it will have a material adverse effect on our consolidated financial position, results of operations or cash flows.

Item 2. Changes in Securities and Use of Proceeds

Honeywell purchased 3,500,000 shares of its common stock, par value $1 per share, in the quarter ending March 31, 2015. The following table summarizes Honeywell’s purchase of its common stock for the quarter ended March 31, 2015:

Issuer Purchases of Equity Securities
	(a)	(b)	(c )	(d)
			Total Number	Approximate Dollar
			of Shares	Value of Shares that
	Total		Purchased as	May Yet be Purchased
	Number of	Average	Part of Publicly	Under Plans or
	Shares	Price Paid	Announced Plans	Programs
Period	Purchased	per Share	or Programs	(Dollars in millions)
February 2015	1,575,000	$102.72	1,575,000	$3,914
March 2015	1,925,000	$104.46	1,925,000	$3,713

Item 6. EXHIBITS

(a) Exhibits. See the Exhibit Index on page 29 of this Quarterly Report on Form 10-Q. 

27

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		Honeywell International Inc.
Date: April 17, 2015	By:	/s/ Adam M. Matteo
		Adam M. Matteo
		Vice President and Controller
		(on behalf of the Registrant
		and as the Registrant’s
		Principal Accounting Officer)

28

EXHIBIT INDEX

Exhibit No.	Description
11	Computation of Per Share Earnings (1)
12	Computation of Ratio of Earnings to Fixed Charges (filed herewith)
31.1	Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)
31.2	Certification of Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)
32.1	Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith)
32.2	Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith)
101.INS	XBRL Instance Document (filed herewith)
101.SCH	XBRL Taxonomy Extension Schema (filed herewith)
101.CAL	XBRL Taxonomy Extension Calculation Linkbase (filed herewith)
101.DEF	XBRL Taxonomy Extension Definition Linkbase (filed herewith)
101.LAB	XBRL Taxonomy Extension Label Linkbase (filed herewith)
101.PRE	XBRL Taxonomy Extension Presentation Linkbase (filed herewith)

(1) Data required is provided in Note 4, Earnings Per Share, of Notes to Financial Statements.

29

EX-12

EXHIBIT 12

HONEYWELL INTERNATIONAL INC.

STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

Three Months Ended

March 31, 2015

(Dollars in millions)

Determination of Earnings:
Income before taxes	$	1,564
Add (Deduct):
Amortization of capitalized interest		5
Fixed charges		89
Equity income, net of distributions		(8	)
Total earnings, as defined	$	1,650
Fixed Charges:
Rents(a)	$	12
Interest and other financial charges		77
		89
Capitalized interest		5
Total fixed charges	$	94
Ratio of Earnings to Fixed Charges		17.55
(a)   Denotes the equivalent of an appropriate portion of rentals representative of the interest factor on all rentals other than for capitalized leases.

30

EX-31.1

EXHIBIT 31.1

CERTIFICATION PURSUANT TO

SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, David M. Cote, Chief Executive Officer, certify that:

1.	I have reviewed this Quarterly Report on Form 10-Q of Honeywell International Inc.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)	designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b)	designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c)	evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d)	disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting;

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)	all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b)	any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: April 17, 2015	By:	/s/ David M. Cote
		David M. Cote
		Chief Executive Officer

31

EX-31.2

EXHIBIT 31.2

CERTIFICATION PURSUANT TO

SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, Thomas A. Szlosek, Chief Financial Officer, certify that:

1.	I have reviewed this Quarterly Report on Form 10-Q of Honeywell International Inc.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)	designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b)	designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c)	evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d)	disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting;

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)	all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b)	any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: April 17, 2015	By:	/s/ Thomas A. Szlosek
		Thomas A. Szlosek
		Chief Financial Officer

32

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Honeywell International Inc. (the Company) on Form 10-Q for the period ending March 31, 2015 as filed with the Securities and Exchange Commission on the date hereof (the Report), I, David M. Cote, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: April 17, 2015	By:	/s/ David M. Cote
		David M. Cote
		Chief Executive Officer

33

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Honeywell International Inc. (the Company) on Form 10-Q for the period ending March 31, 2015 as filed with the Securities and Exchange Commission on the date hereof (the Report), I, Thomas A. Szlosek, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: April 17, 2015	By:	/s/ Thomas A. Szlosek
		Thomas A. Szlosek
		Chief Financial Officer

34

XML

FINANCIAL INSTRUMENTS AND FAIR VALUE MEASURES 3 (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Cash Flow Hedge Gain Loss Reclassified To Income Statement Locations Paragraph Details [Abstract]
Gain (loss) on interest rate swap agreements	$ 15	$ 13
Foreign Exchange Mark to Market income (expense)	$ (162)	$ 57

XML

COMMITMENTS AND CONTINGENCIES 6 (Details) (Bendix Asbestos Loss Contingency Liability [Member])	Mar. 31, 2015 claims	Dec. 31, 2014 claims	Dec. 31, 2013 claims
Bendix Asbestos Loss Contingency Liability [Member]
Loss Contingency Disease Distribution Of Unresolved Claims [Line Items]
Mesothelioma and Other Cancer Claims	3,773	3,933	5,810
Nonmalignant Claims	5,420	5,334	6,492
Claims Unresolved at the end of period	9,193	9,267	12,302

XML

COMMITMENTS AND CONTINGENCIES 4 (Details) (Narco Asbestos Loss Contingency Liability [Member], USD $) In Millions, unless otherwise specified	Mar. 31, 2015
Loss Contingency By Nature Of Contingency [Line Items]
Loss Contingency Estimated Pre-established Unliquidated Claims Amount	$ 147
Loss Contingency Estimated Unsettled Claims Amount	37
Estimated Liability	743
Maximum Estimated Liability	961
Exceptions To Cap [Abstract]
Value Not Included In Cap	100
Years 2015 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

XML

EARNINGS (LOSS) PER SHARE (Details) (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Earnings Per Share [Abstract]
Net income attributable to Honeywell	$ 1,116	$ 1,017
Weighted average shares outstanding	783.8	784.9
Earnings per share of common stock - basic	$ 1.42	$ 1.3
Assuming dilution
Net income attributable to Honeywell	$ 1,116	$ 1,017
Average shares
Weighted average shares outstanding	783.8	784.9
Dilutive securities issuable - stock plans	10.2	11.5
Total weighted average diluted shares outstanding	794.0	796.4
Earnings per share of common stock - assuming dilution	$ 1.41	$ 1.28
Earnings Per Share Paragraph Details [Abstract]
Stock options excluded from diluted computations	7.8	2.0

XML

SEGMENT FINANCIAL DATA (Tables)

3 Months Ended

Mar. 31, 2015

Segment Financial Data [Abstract]

Segment Financial Data

		Three Months Ended
		March 31,
		2015		2014
Net Sales
Aerospace
Products	$	2,463	$	2,692
Services		1,144		1,159
Total		3,607		3,851
Automation and Control Solutions
Products		2,979		3,075
Services		285		287
Total		3,264		3,362
Performance Materials and Technologies
Products		1,922		2,078
Services		420		388
Total		2,342		2,466
	$	9,213	$	9,679
Segment Profit
Aerospace	$	752	$	703
Automation and Control Solutions		516		471
Performance Materials and Technologies		503		473
Corporate		(50)		(51)
Total segment profit		1,721		1,596
Other income (expense)(a)		12		111
Interest and other financial charges		(77)		(79)
Stock compensation expense(b)		(52)		(52)
Pension ongoing income(b)		100		61
Other postretirement expense(b)		(9)		(12)
Repositioning and other charges (b)		(131)		(214)
Income before taxes	$	1,564	$	1,411
(a) Equity income (loss) of affiliated companies is included in segment profit.
(b) Amounts included in cost of products and services sold and selling, general and administrative expenses.

XML

COMMITMENTS AND CONTINGENCIES 8 (Details) (United Auto Workers [Member], USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015
Pre-2003 Retirees [Member]
Other Matters Paragraph Details [Line Items]
Potential Opeb Increase Due To Adverse Ruling	$ 180
Post-2003 Retirees [Member]
Other Matters Paragraph Details [Line Items]
Potential Opeb Increase Due To Adverse Ruling	$ 120

XML

PENSION BENEFITS (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
United States, Defined Benefit [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 57,000,000	$ 60,000,000
Interest cost	178,000,000	193,000,000
Expected return on plan assets	(320,000,000)	(314,000,000)
Amortization of prior service cost	6,000,000	6,000,000
Net periodic benefit (income)	(79,000,000)	(55,000,000)
Non-US, Defined Benefit [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	13,000,000	14,000,000
Interest cost	44,000,000	58,000,000
Expected return on plan assets	(90,000,000)	(89,000,000)
Amortization of prior service cost	0	0
Net periodic benefit (income)	(33,000,000)	(17,000,000)
Cash contributions to pension plans	4,000,000
Marketable securities contributed to pension plan	$ 109,000,000

XML

FINANCIAL INSTRUMENTS AND FAIR VALUE MEASURES (Details) (Significant Observable Inputs (Level 2), USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale investments	$ 1,767	$ 1,479
Foreign Currency Exchange Contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Fair Value Of Derivative Asset	135	20
Derivative Fair Value Of Derivative Liability	29	10
Interest Rate Swap Agreements [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Fair Value Of Derivative Asset	$ 108	$ 93

XML

COMMITMENTS AND CONTINGENCIES 5 (Details) (Bendix Asbestos Loss Contingency Liability [Member])	3 Months Ended	12 Months Ended
	Mar. 31, 2015 claims	Dec. 31, 2014 claims	Dec. 31, 2013 claims
Bendix Asbestos Loss Contingency Liability [Member]
Loss Contingency Claims [Abstract]
Claims Unresolved at the beginning of period	9,267	12,302	23,141
Claims Filed during the period	707	3,694	4,527
Claims Resolved during the period	(781)	(6,729)	(15,366)
Claims Unresolved at the end of period	9,193	9,267	12,302
Loss Contingency Claims Footnote [Abstract]
Significantly Aged Claims		1,266	12,250
Significantly Aged Claims Nonmalignant Percent		82.00%	92.00%
Cancer Claims With No Determinable Value		2,110

XML

EARNINGS (LOSS) PER SHARE

3 Months Ended

Mar. 31, 2015

Earnings Per Share [Abstract]

Earnings Per Share

Note4. Earnings Per Share

		Three Months Ended
		March 31,
Basic		2015		2014
Net income attributable to Honeywell	$	1,116	$	1,017
Weighted average shares outstanding		783.8		784.9
Earnings per share of common stock	$	1.42	$	1.30

		Three Months Ended
		March 31,
Assuming Dilution		2015		2014
Net income attributable to Honeywell	$	1,116	$	1,017
Average Shares
Weighted average shares outstanding		783.8		784.9
Dilutive securities issuable - stock plans		10.2		11.5
Total weighted average shares outstanding		794.0		796.4
Earnings per share of common stock	$	1.41	$	1.28

The diluted earnings per share calculations exclude the effect of stock options when the options’ assumed proceeds exceed the average market price of the common shares during the period. For the three months endedMarch 31, 2015and 2014, the weighted average number of stock options excluded from the computations was7.8 million and2.0 million, respectively. These stock options were outstanding at the end of each of the respective periods.

XML

COMMITMENTS AND CONTINGENCIES (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Environmental Matters [Abstract]
Beginning of period	$ 591
Accruals for environmental matters deemed probable and reasonably estimable	46
Environmental liability payments	(35)
End of period	602
Loss Contingency Classification of Accrual [Abstract]
Accrued liabilities	278	278
Other liabilities	324	313
Total environmental liabilities	$ 602

XML

REPOSITIONING AND OTHER CHARGES 2 (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Net Repositioning And Other Charges By Income Statement Classification [Line Items]
Cost of products and services sold	$ 6,362	$ 6,967
Selling, general and administrative expenses	1,230	1,339
Total net repositioning and other charges	131	214
Restructuring Charges [Member]
Net Repositioning And Other Charges By Income Statement Classification [Line Items]
Cost of products and services sold	122	191
Selling, general and administrative expenses	9	23
Total net repositioning and other charges	$ 131	$ 214

XML

REPOSITIONING AND OTHER CHARGES (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Component Of Operating Other Cost And Expense [Line Items]
Total net repositioning charge	$ 39,000,000	$ 82,000,000
Asbestos related litigation charges, net of insurance	46,000,000	48,000,000
Probable and reasonably estimable environmental liabilities	46,000,000	82,000,000
Other	0	2,000,000
Total net repositioning and other charges	131,000,000	214,000,000
Severance Costs [Member]
Component Of Operating Other Cost And Expense [Line Items]
Total net repositioning charge	37,000,000	71,000,000
Tangible And Intangible Asset Impairment [Member]
Component Of Operating Other Cost And Expense [Line Items]
Total net repositioning charge	8,000,000	9,000,000
Exit Costs [Member]
Component Of Operating Other Cost And Expense [Line Items]
Total net repositioning charge	1,000,000	8,000,000
Restructuring Reserve Accrual Adjustments [Member]
Component Of Operating Other Cost And Expense [Line Items]
Total net repositioning charge	$ (7,000,000)	$ (6,000,000)

XML

COMMITMENTS AND CONTINGENCIES 2 (Details) (USD $)	3 Months Ended
	Mar. 31, 2015
Asbestos Related Liabilities Disclosure [Abstract]
Asbestos Related Liabilities, Beginning of Period	$ 1,552,000,000
Accrual for update to estimated liability	49,000,000
Asbestos related liability payments	(52,000,000)
Asbestos Related Liabilities, End of Period	1,549,000,000
Asbestos Related Liabilities Insurance Recoveries [Line Items]
Insurance Recoveries, beginning of period	485,000,000
Probable insurance recoveries related to estimated liability	5,000,000
Insurance receivables settlements	1,000,000
Insurance receipts for asbestos related liabilities	(14,000,000)
Insurance recoveries, end of period	477,000,000
Bendix Asbestos Loss Contingency Liability [Member]
Asbestos Related Liabilities Disclosure [Abstract]
Asbestos Related Liabilities, Beginning of Period	623,000,000
Accrual for update to estimated liability	48,000,000
Asbestos related liability payments	(49,000,000)
Asbestos Related Liabilities, End of Period	622,000,000
Asbestos Related Liabilities Insurance Recoveries [Line Items]
Insurance Recoveries, beginning of period	135,000,000
Probable insurance recoveries related to estimated liability	5,000,000
Insurance receivables settlements	1,000,000
Insurance receipts for asbestos related liabilities	(7,000,000)
Insurance recoveries, end of period	134,000,000
Narco Asbestos Loss Contingency Liability [Member]
Asbestos Related Liabilities Disclosure [Abstract]
Asbestos Related Liabilities, Beginning of Period	929,000,000
Accrual for update to estimated liability	1,000,000
Asbestos related liability payments	(3,000,000)
Asbestos Related Liabilities, End of Period	927,000,000
Asbestos Related Liabilities Insurance Recoveries [Line Items]
Insurance Recoveries, beginning of period	350,000,000
Probable insurance recoveries related to estimated liability	0
Insurance receivables settlements	0
Insurance receipts for asbestos related liabilities	(7,000,000)
Insurance recoveries, end of period	$ 343,000,000

XML

REPOSITIONING AND OTHER CHARGES 3 (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Pretax Impact Of Total Net Repositioning And Other Charges By Segment [Line Items]
Total net repositioning charges	$ 131	$ 214
Aerospace [Member]
Pretax Impact Of Total Net Repositioning And Other Charges By Segment [Line Items]
Total net repositioning charges	48	76
Automation and Control Solutions [Member]
Pretax Impact Of Total Net Repositioning And Other Charges By Segment [Line Items]
Total net repositioning charges	24	46
Performance Materials And Technologies [Member]
Pretax Impact Of Total Net Repositioning And Other Charges By Segment [Line Items]
Total net repositioning charges	7	14
Corporate [Member]
Pretax Impact Of Total Net Repositioning And Other Charges By Segment [Line Items]
Total net repositioning charges	$ 52	$ 78

XML

REPOSITIONING AND OTHER CHARGES 4 (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015 Employees	Mar. 31, 2014 Employees
Net repositioning and other charges Paragraph Details [Abstract]
Gross Repositioning Charge	$ 46	$ 88
Number Of Employees Severed	3,040	1,520
Net Repositioning And Other Charges [Line Items]
Restructuring and Related Cost, Incurred Cost	39	82
Severance Costs [Member]
Net Repositioning And Other Charges [Line Items]
Restructuring and Related Cost, Incurred Cost	37	71
Tangible And Intangible Asset Impairment [Member]
Net Repositioning And Other Charges [Line Items]
Restructuring and Related Cost, Incurred Cost	8	9
Exit Costs [Member]
Net Repositioning And Other Charges [Line Items]
Restructuring and Related Cost, Incurred Cost	1	8
Restructuring Reserve Accrual Adjustments [Member]
Net Repositioning And Other Charges [Line Items]
Restructuring and Related Cost, Incurred Cost	$ (7)	$ (6)

XML

REPOSITIONING AND OTHER CHARGES

3 Months Ended

Mar. 31, 2015

Repositioning And Other Charges [Abstract]

Repositioning and Other Charges

Note 3. Repositioning and Other Charges

	A summary of repositioning and other charges follows:
			Three Months Ended
			March 31,
			2015		2014
Severance		$	37	$	71
Asset impairments			8		9
Exit costs			1		8
Adjustments			(7)		(6)
Total net repositioning charge			39		82
Asbestos related litigation charges,
net of insurance			46		48
Probable and reasonably estimable
environmental liabilities			46		82
Other			-		2
Total net repositioning and other charges		$	131	$	214

The following table summarizes the pretax distribution of total net repositioning and other charges by income statement classification:
		Three Months Ended
		March 31,
		2015		2014
Cost of products and services sold	$	122	$	191
Selling, general and administrative expenses		9		23
	$	131	$	214

The following table summarizes the pretax impact of total net repositioning and other charges by segment:
		Three Months Ended
		March 31,
		2015		2014
Aerospace	$	48	$	76
Automation and Control Solutions		24		46
Performance Materials and Technologies		7		14
Corporate		52		78
	$	131	$	214

In the quarter ended March 31, 2015, we recognized repositioning charges totaling $46 million including severance costs of $37 million related to workforce reductions of 3,040 manufacturing and administrative positions across our segments. The workforce reductions were primarily related to cost savings actions taken in connection with our productivity and ongoing functional transformation initiatives and outsourcing of certain component manufacturing in our Automation and Control Solutions (ACS) segment.

In the quarter ended March 31, 2014, we recognized repositioning charges totaling $88 million including severance costs of $71 million related to workforce reductions of 1,520 manufacturing and administrative positions across 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 ACS to more cost-effective locations, site consolidations and organizational realignments of businesses in ACS.

The following table summarizes the status of our total repositioning reserves:
		Severance		Asset		Exit
		Costs		Impairments		Costs		Total
December 31, 2014	$	285	$	-	$	30	$	315
Charges		37		8		1		46
Usage - cash		(24)		-		(3)		(27)
Usage - noncash		-		(8)		-		(8)
Foreign currency translation		(9)		-		(2)		(11)
Adjustments		(3)		-		(4)		(7)
March 31, 2015	$	286	$	-	$	22	$	308

Certain repositioning projects in our segments in 2015 and 2014 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.

XML

REPOSITIONING AND OTHER CHARGES 5 (Details) (USD $)	3 Months Ended
	Mar. 31, 2015
Restructuring Reserve [Line Items]
Balance at beginning of period,	$ 315,000,000
Charges	46,000,000
Usage - cash	(27,000,000)
Usage - noncash	(8,000,000)
Foreign currency translation adjustment	(11,000,000)
Adjustments	(7,000,000)
Balance at end of period,	308,000,000
Severance Costs [Member]
Restructuring Reserve [Line Items]
Balance at beginning of period,	285,000,000
Charges	37,000,000
Usage - cash	(24,000,000)
Usage - noncash	0
Foreign currency translation adjustment	(9,000,000)
Adjustments	(3,000,000)
Balance at end of period,	286,000,000
Tangible And Intangible Asset Impairment [Member]
Restructuring Reserve [Line Items]
Balance at beginning of period,	0
Charges	8,000,000
Usage - cash	0
Usage - noncash	(8,000,000)
Foreign currency translation adjustment	0
Adjustments	0
Balance at end of period,	0
Exit Costs [Member]
Restructuring Reserve [Line Items]
Balance at beginning of period,	30,000,000
Charges	1,000,000
Usage - cash	(3,000,000)
Usage - noncash	0
Foreign currency translation adjustment	(2,000,000)
Adjustments	(4,000,000)
Balance at end of period,	$ 22,000,000

XML

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Accumulated Other Comprehensive Income Loss [Line Items]
Balance beginning of period December 31,	$ (1,459,000,000)	$ 818,000,000
Other comprehensive income (loss) before reclassifications	(616,000,000)	(7,000,000)
Amounts reclassified from accumulated other comprehensive income	(24,000,000)	(63,000,000)
Net current period other comprehensive income (loss)	(640,000,000)	(70,000,000)
Balance end of period	(2,099,000,000)	748,000,000
Foreign Exchange Translation Adjustment [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Balance beginning of period December 31,	(740,000,000)	304,000,000
Other comprehensive income (loss) before reclassifications	(721,000,000)	(5,000,000)
Amounts reclassified from accumulated other comprehensive income	0	0
Net current period other comprehensive income (loss)	(721,000,000)	(5,000,000)
Balance end of period	(1,461,000,000)	299,000,000
Pension and Other Postretirement Adjustments [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Balance beginning of period December 31,	(728,000,000)	355,000,000
Other comprehensive income (loss) before reclassifications	0	0
Amounts reclassified from accumulated other comprehensive income	3,000,000	4,000,000
Net current period other comprehensive income (loss)	3,000,000	4,000,000
Balance end of period	(725,000,000)	359,000,000
Changes in Fair Value of Available for Sale Investments [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Balance beginning of period December 31,	0	170,000,000
Other comprehensive income (loss) before reclassifications	0	(11,000,000)
Amounts reclassified from accumulated other comprehensive income	0	(71,000,000)
Net current period other comprehensive income (loss)	0	(82,000,000)
Balance end of period	0	88,000,000
Changes in Fair Value of Effective Cash Flow Hedges [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Balance beginning of period December 31,	9,000,000	(11,000,000)
Other comprehensive income (loss) before reclassifications	105,000,000	9,000,000
Amounts reclassified from accumulated other comprehensive income	(27,000,000)	4,000,000
Net current period other comprehensive income (loss)	78,000,000	13,000,000
Balance end of period	$ 87,000,000	$ 2,000,000

XML

CONSOLIDATED STATEMENT OF OPERATIONS (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Consolidated Statement of Operations
Product sales	$ 7,364	$ 7,845
Service sales	1,849	1,834
Net Sales	9,213	9,679
Costs, expenses and other
Cost of products sold	5,213	5,779
Cost of services sold	1,149	1,188
Cost of products and services sold	6,362	6,967
Selling, general and administrative expenses	1,230	1,339
Other (income) expense	(20)	(117)
Interest and other financial charges	77	79
Cost, operating and non-operating expenses	7,649	8,268
Income before taxes	1,564	1,411
Tax expense	418	375
Net income	1,146	1,036
Less: Net income attributable to the noncontrolling interest	30	19
Net income attributable to Honeywell	$ 1,116	$ 1,017
Earnings per share of common stock - basic	$ 1.42	$ 1.3
Earnings per share of common stock - assuming dilution	$ 1.41	$ 1.28
Cash dividends per share of common stock	$ 0.5175	$ 0.45

XML

COMMITMENTS AND CONTINGENCIES 3 (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Loss Contingency, Narco and Bendix Asbestos Related Balances by Balance Sheet Caption [Abstract]
Other current assets	$ 32	$ 31
Insurance recoveries for asbestos related liabilities	445	454
Total assets	477	485
Accrued liabilities	352	352
Asbestos related liabilities	1,197	1,200
Total liabilities	$ 1,549	$ 1,552

XML

BASIS OF PRESENTATION

3 Months Ended

Mar. 31, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation [Text Block]

Note1. Basis of Presentation

In the opinion of management, the accompanying unaudited consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, necessary to present fairly the financial position of Honeywell International Inc. and its consolidated subsidiaries (Honeywell or the Company) at March 31, 2015 and the results of operations and cash flows for the three months endedMarch 31, 2015 and 2014. The results of operations for the three months endedMarch 31, 2015should not necessarily be taken as indicative of the results of operations that may be expected for the entire year.

We report our quarterly financial information using a calendar convention; that is, the first, second and third quarters are consistently reported as ending on March 31, June 30 and September 30. It has been our practice to establish actual quarterly closing dates using a predetermined fiscal calendar, which requires our businesses to close their books on a Saturday in order to minimize the potentially disruptive effects of quarterly closing on our business processes. The effects of this practice are generally not significant to reported results for any quarter and only exist within a reporting year. If differences in actual closing dates are material to year-over-year comparisons of quarterly or year-to-date results, we provide appropriate disclosures. Our actual closing dates for the three months endedMarch 31, 2015 and 2014 were March 28, 2015 and March 29, 2014.

Certain prior year amounts have been reclassified to conform to current year presentation.

XML

INVENTORIES (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Inventory Combining Work In Process And Raw Materials Alternative Gross Abstract
Raw materials	$ 1,088	$ 1,124
Work in process	828	815
Finished products	2,708	2,634
Inventory, Gross	4,624	4,573
Reduction to LIFO cost basis	(117)	(168)
Inventories	$ 4,507	$ 4,405

XML

LONG-TERM DEBT AND CREDIT AGREEMENTS (Tables)

3 Months Ended

Mar. 31, 2015

Long Term Debt And Credit Agreements [Abstract]

Long-Term Debt and Credit Agreements

		March 31,		December 31,
		2015		2014
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		30
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		518		538
		6,965		6,985
Less: current portion		(1,304)		(939)
	$	5,661	$	6,046

XML

LONG-TERM DEBT AND CREDIT AGREEMENTS (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Total long-term debt, including current portion	$ 6,965	$ 6,985
Less current portion	(1,304)	(939)
Total Noncurrent Debt	5,661	6,046
Floating Rate Notes Due 2015 [Member]
Debt Instrument [Line Items]
Senior Notes	700	700
Maturity date of debt instrument	Nov. 17, 2015
Notes 5.40% due 2016 [Member]
Debt Instrument [Line Items]
Senior Notes	400	400
Various interest rates	5.40%
Maturity date of debt instrument	Mar. 15, 2016
Notes 5.30% due 2017 [Member]
Debt Instrument [Line Items]
Senior Notes	400	400
Various interest rates	5.30%
Maturity date of debt instrument	Mar. 15, 2017
Notes 5.30% due 2018 [Member]
Debt Instrument [Line Items]
Senior Notes	900	900
Various interest rates	5.30%
Maturity date of debt instrument	Mar. 01, 2018
Notes 5.00% due 2019 [Member]
Debt Instrument [Line Items]
Senior Notes	900	900
Various interest rates	5.00%
Maturity date of debt instrument	Feb. 15, 2019
Notes 4.25% Due 2021 [Member]
Debt Instrument [Line Items]
Senior Notes	800	800
Various interest rates	4.25%
Maturity date of debt instrument	Mar. 01, 2021
Notes 3.35% Due 2023 [Member]
Debt Instrument [Line Items]
Senior Notes	300	300
Various interest rates	3.35%
Maturity date of debt instrument	Dec. 01, 2023
Notes 5.70% due 2036 [Member]
Debt Instrument [Line Items]
Senior Notes	550	550
Various interest rates	5.70%
Maturity date of debt instrument	Mar. 15, 2036
Notes 5.70% due 2037 [Member]
Debt Instrument [Line Items]
Senior Notes	600	600
Various interest rates	5.70%
Maturity date of debt instrument	Mar. 15, 2037
Notes 5.375% Due 2041 [Member]
Debt Instrument [Line Items]
Senior Notes	600	600
Various interest rates	5.375%
Maturity date of debt instrument	Mar. 01, 2041
Industrial development bond obligations, floating rate maturing at various dates through 2037 [Member]
Debt Instrument [Line Items]
Industrial development bond	30	30
Maturity date of debt instrument	Dec. 31, 2037
Debentures 6.625% due 2028 [Member]
Debt Instrument [Line Items]
Debentures	216	216
Various interest rates	6.625%
Maturity date of debt instrument	Jun. 15, 2028
Debentures 9.065% due 2033 [Member]
Debt Instrument [Line Items]
Debentures	51	51
Various interest rates	9.065%
Maturity date of debt instrument	Jun. 01, 2033
Other including capitalized leases, .6% To 9.5% maturing at various dates through 2023 [Member]
Debt Instrument [Line Items]
Other long term debt	$ 518	$ 538
Interest rate range minimum	0.60%
Interest rate range maximum	9.50%
Maturity date of debt instrument	Dec. 31, 2023

XML

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)

3 Months Ended

Mar. 31, 2015

Accumulated Other Comprehensive Income (Loss) [Abstract]

Changes in Accumulated Other Comprehensive Income by Component

Changes in Accumulated Other Comprehensive Income by Component
							Changes in		Changes in
			Foreign		Pension		Fair Value		Fair Value
			Exchange		and Other		of Available		of Effective
			Translation		Postretirement		for Sale		Cash Flow
			Adjustment		Adjustments		Investments		Hedges		Total
Balance at December 31, 2014		$	(740)	$	(728)	$	-	$	9	$	(1,459)
	Other comprehensive income
	(loss) before reclassifications		(721)		-		-		105		(616)
	Amounts reclassified from
	accumulated other
	comprehensive income		-		3		-		(27)		(24)
	Net current period other
	comprehensive income (loss)		(721)		3		-		78		(640)
Balance at March 31, 2015		$	(1,461)	$	(725)	$	-	$	87	$	(2,099)
							Changes in		Changes in
			Foreign		Pension		Fair Value		Fair Value
			Exchange		and Other		of Available		of 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		(5)		-		(11)		9		(7)
	Amounts reclassified from
	accumulated other
	comprehensive income		-		4		(71)		4		(63)
	Net current period other
	comprehensive income (loss)		(5)		4		(82)		13		(70)
Balance at March 31, 2014		$	299	$	359	$	88	$	2	$	748

XML

RECENT ACCOUNTING PRONOUNCEMENTS

3 Months Ended

Mar. 31, 2015

New Accounting Pronouncements And Changes In Accounting Principles [Abstract]

Recent Accounting Pronouncements [Text Block]

Note2. Recent Accounting Pronouncements

The Company considers the applicability and impact of all accounting standard updates (ASUs). ASUs 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 Financial Accounting Standards Board (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.

XML

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Statement Of Income And Comprehensive Income [Abstract]
Net income	$ 1,146,000,000	$ 1,036,000,000
Other Comprehensive Income (Loss), Net Of Tax [Abstract]
Foreign exchange translation adjustment	(721,000,000)	(5,000,000)
Actuarial (losses) gains recognized	(2,000,000)	4,000,000
Prior service costs recognized	5,000,000	0
Pension and other postretirement benefit adjustments	3,000,000	4,000,000
Unrealized losses	0	(11,000,000)
Less: Reclassification adjustment for gains included in net income	0	71,000,000
Changes in fair value of available for sale investments	0	(82,000,000)
Effective portion of cash flow hedges recognized in other comprehensive income	105,000,000	9,000,000
Less: Reclassification adjustment for gains (losses) included in net income	27,000,000	(4,000,000)
Changes in fair value of effective cash flow hedges	78,000,000	13,000,000
Other comprehensive loss, net of tax	(640,000,000)	(70,000,000)
Comprehensive income	506,000,000	966,000,000
Less: Comprehensive income attributable to the noncontrolling interest	30,000,000	19,000,000
Comprehensive income attributable to Honeywell	$ 476,000,000	$ 947,000,000

XML

COMMITMENTS AND CONTINGENCIES

3 Months Ended

Mar. 31, 2015

Commitments And Contingencies [Abstract]

Commitments and Contingencies

Note 12. Commitments and Contingencies

Environmental Matters

Our environmental matters are described in Note 19, Commitments and Contingencies, of Notes to Financial Statements in our 2014 Annual Report on Form 10-K.

The following table summarizes information concerning our recorded liabilities for environmental costs:

December 31, 2014	$	591
Accruals for environmental matters deemed
probable and reasonably estimable		46
Environmental liability payments		(35)
March 31, 2015	$	602

Environmental liabilities are included in the following balance sheet accounts:
			March 31,		December 31,
			2015		2014
	Accrued liabilities	$	278	$	278
	Other liabilities		324		313
		$	602	$	591

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 our accounting policy.

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), 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
		Bendix		NARCO		Total
December 31, 2014	$	623	$	929	$	1,552
Accrual for update to estimated liability		48		1		49
Asbestos related liability payments		(49)		(3)		(52)
March 31, 2015	$	622	$	927	$	1,549

Insurance Recoveries for Asbestos Related Liabilities
		Bendix		NARCO		Total
December 31, 2014	$	135	$	350	$	485
Probable insurance recoveries related to
estimated liability		5		-		5
Insurance receivables settlements		1		-		1
Insurance receipts for asbestos related liabilities		(7)		(7)		(14)
March 31, 2015	$	134	$	343	$	477

NARCO and Bendix asbestos related balances are included in the following balance sheet accounts:
		March 31,		December 31,
		2015		2014
Other current assets	$	32	$	31
Insurance recoveries for asbestos related liabilities		445		454
	$	477	$	485
Accrued liabilities	$	352	$	352
Asbestos related liabilities		1,197		1,200
	$	1,549	$	1,552

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 March 31, 2015, 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 expected to be paid during the initial years of trust operations. 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 ($37 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:

	Three Months Ended		Years Ended
	March 31,		December 31,
Claims Activity		2015	2014	2013
Claims Unresolved at the beginning of period		9,267	12,302	23,141
Claims Filed		707	3,694	4,527
Claims Resolved (a)		(781)	(6,729)	(15,366)
Claims Unresolved at the end of period		9,193	9,267	12,302
(a) Claims resolved in 2014 include 2,110 cancer claims which were determined to have no value. Also, claims resolved in 2014 and 2013 included 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 Unresolved Claims	March 31,	December 31,
	2015	2014	2013
Mesothelioma and Other Cancer Claims	3,773	3,933	5,810
Nonmalignant Claims	5,420	5,334	6,492
Total Claims	9,193	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

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 a ruling on January 26, 2015, the Supreme Court held that retiree health insurance benefits provided in collective bargaining agreements do not carry an inference that they are vested or guaranteed to continue for life and that the “vesting” issue must be decided pursuant to ordinary principles of contract law. Based on this ruling, 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.

XML

Document and Entity Information	3 Months Ended
	Mar. 31, 2015
Document And Entity Information [Abstract]
Document type	10-Q
Document period end date	Mar. 31, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1
Amendment flag	false
Entity registrant name	Honeywell International Inc
Entity central index key	0000773840
Entity current reporting status	Yes
Entity voluntary filers	No
Current fiscal year end date	--12-31
Entity filer category	Large Accelerated Filer
Entity well known seasoned issuer	Yes
Entity common stock shares outstanding	781,707,489

XML

REPOSITIONING AND OTHER CHARGES (Tables)

3 Months Ended

Mar. 31, 2015

Repositioning And Other Charges [Abstract]

Repositioning and other charges text block

	A summary of repositioning and other charges follows:
			Three Months Ended
			March 31,
			2015		2014
Severance		$	37	$	71
Asset impairments			8		9
Exit costs			1		8
Adjustments			(7)		(6)
Total net repositioning charge			39		82
Asbestos related litigation charges,
net of insurance			46		48
Probable and reasonably estimable
environmental liabilities			46		82
Other			-		2
Total net repositioning and other charges		$	131	$	214

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:
		Three Months Ended
		March 31,
		2015		2014
Cost of products and services sold	$	122	$	191
Selling, general and administrative expenses		9		23
	$	131	$	214

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:
		Three Months Ended
		March 31,
		2015		2014
Aerospace	$	48	$	76
Automation and Control Solutions		24		46
Performance Materials and Technologies		7		14
Corporate		52		78
	$	131	$	214

Total Repositioning Reserves

The following table summarizes the status of our total repositioning reserves:
		Severance		Asset		Exit
		Costs		Impairments		Costs		Total
December 31, 2014	$	285	$	-	$	30	$	315
Charges		37		8		1		46
Usage - cash		(24)		-		(3)		(27)
Usage - noncash		-		(8)		-		(8)
Foreign currency translation		(9)		-		(2)		(11)
Adjustments		(3)		-		(4)		(7)
March 31, 2015	$	286	$	-	$	22	$	308

XML

CONSOLIDATED BALANCE SHEET (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 6,575	$ 6,959
Accounts, notes and other receivables	8,158	7,960
Inventories	4,507	4,405
Deferred income taxes	656	722
Investments and other current assets	2,376	2,145
Total current assets	22,272	22,191
Investments and long-term receivables	464	465
Property, plant and equipment - net	5,300	5,383
Goodwill	12,685	12,788
Other intangible assets - net	2,190	2,208
Insurance recoveries for asbestos related liabilities	445	454
Deferred income taxes	329	404
Other assets	1,672	1,558
Total assets	45,357	45,451
Current liabilities:
Accounts payable	5,263	5,365
Short-term borrowings	47	51
Commercial paper	2,695	1,647
Current maturities of long-term debt	1,304	939
Accrued liabilities	6,123	6,771
Total current liabilities	15,432	14,773
Long-term debt	5,661	6,046
Deferred income taxes	210	236
Postretirement benefit obligations other than pensions	911	911
Asbestos related liabilities	1,197	1,200
Other liabilities	4,027	4,282
Redeemable noncontrolling interest	242	219
SHAREOWNERS' EQUITY
Capital - common stock issued	958	958
Capital - additional paid in capital	5,153	5,038
Common stock held in treasury, at cost	(10,281)	(9,995)
Accumulated other comprehensive loss	(2,099)	(1,459)
Retained earnings	23,811	23,115
Total Honeywell shareowners' equity	17,542	17,657
Noncontrolling interest	135	127
Total shareowners' equity	17,677	17,784
Total liabilities, redeemable noncontrolling interest, and shareowners' equity	$ 45,357	$ 45,451

XML

LONG-TERM DEBT AND CREDIT AGREEMENTS

3 Months Ended

Mar. 31, 2015

Long Term Debt And Credit Agreements [Abstract]

Long-term Debt and Credit Agreements

Note 7. Long-term Debt

		March 31,		December 31,
		2015		2014
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		30
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		518		538
		6,965		6,985
Less: current portion		(1,304)		(939)
	$	5,661	$	6,046

XML

INVENTORIES

3 Months Ended

Mar. 31, 2015

Inventories [Abstract]

Inventories

Note 6. Inventories

		March 31,		December 31,
		2015		2014
Raw materials	$	1,088	$	1,124
Work in process		828		815
Finished products		2,708		2,634
		4,624		4,573
Reduction to LIFO cost basis		(117)		(168)
	$	4,507	$	4,405

XML

FINANCIAL INSTRUMENTS AND FAIR VALUE MEASURES (Tables)

3 Months Ended

Mar. 31, 2015

Financial Instruments And Fair Value Measures [Abstract]

Schedule Of Fair Value Assets And Liabilities Measured On Recurring Basis Table Text Block

		March 31,		December 31,
		2015		2014
Assets:
Foreign currency exchange contracts	$	135	$	20
Available for sale investments		1,767		1,479
Interest rate swap agreements		108		93
Liabilities:
Foreign currency exchange contracts	$	29	$	10

Financial assets and liabilities that were not carried at fair value

	March 31, 2015				December 31, 2014
	Carrying		Fair		Carrying		Fair
	Value		Value		Value		Value
Assets
Long-term receivables	$	297	$	292	$	297	$	293
Liabilities
Long-term debt and related current maturities	$	6,965	$	7,813	$	6,985	$	7,817

XML

EARNINGS (LOSS) PER SHARE (Tables)

3 Months Ended

Mar. 31, 2015

Earnings Per Share (Tables) [Abstract]

Earnings per share basic

		Three Months Ended
		March 31,
Basic		2015		2014
Net income attributable to Honeywell	$	1,116	$	1,017
Weighted average shares outstanding		783.8		784.9
Earnings per share of common stock	$	1.42	$	1.30

Earnings per share diluted

		Three Months Ended
		March 31,
Assuming Dilution		2015		2014
Net income attributable to Honeywell	$	1,116	$	1,017
Average Shares
Weighted average shares outstanding		783.8		784.9
Dilutive securities issuable - stock plans		10.2		11.5
Total weighted average shares outstanding		794.0		796.4
Earnings per share of common stock	$	1.41	$	1.28

XML

SEGMENT FINANCIAL DATA

3 Months Ended

Mar. 31, 2015

Segment Financial Data [Abstract]

Segment Financial Data

Note10. Segment Financial Data

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 income (expense), stock compensation expense, repositioning and other charges and accounting changes.

		Three Months Ended
		March 31,
		2015		2014
Net Sales
Aerospace
Products	$	2,463	$	2,692
Services		1,144		1,159
Total		3,607		3,851
Automation and Control Solutions
Products		2,979		3,075
Services		285		287
Total		3,264		3,362
Performance Materials and Technologies
Products		1,922		2,078
Services		420		388
Total		2,342		2,466
	$	9,213	$	9,679
Segment Profit
Aerospace	$	752	$	703
Automation and Control Solutions		516		471
Performance Materials and Technologies		503		473
Corporate		(50)		(51)
Total segment profit		1,721		1,596
Other income (expense)(a)		12		111
Interest and other financial charges		(77)		(79)
Stock compensation expense(b)		(52)		(52)
Pension ongoing income(b)		100		61
Other postretirement expense(b)		(9)		(12)
Repositioning and other charges (b)		(131)		(214)
Income before taxes	$	1,564	$	1,411
(a) Equity income (loss) of affiliated companies is included in segment profit.
(b) Amounts included in cost of products and services sold and selling, general and administrative expenses.

XML

FINANCIAL INSTRUMENTS AND FAIR VALUE MEASURES

3 Months Ended

Mar. 31, 2015

Financial Instruments And Fair Value Measures [Abstract]

Financial Instruments and Fair Value Measures

Note 8. Financial Instruments and Fair Value Measures

Our credit, market, foreign currency and interest rate risk management policies are described in Note 14, Financial Instruments and Fair Value Measures, of Notes to Financial Statements in our 2014 Annual Report on Form 10-K.

Financial and nonfinancial assets and liabilities are classified 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:

		March 31,		December 31,
		2015		2014
Assets:
Foreign currency exchange contracts	$	135	$	20
Available for sale investments		1,767		1,479
Interest rate swap agreements		108		93
Liabilities:
Foreign currency exchange contracts	$	29	$	10

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. These derivative instruments are classified within level 2 of the fair value hierarchy. The Company holds investments in certificates of deposits, time deposits and commercial paper that are designated as available for sale and are valued using market transactions in over-the-counter markets. These investments are classified within level 2 of the fair value hierarchy.

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:

	March 31, 2015				December 31, 2014
	Carrying		Fair		Carrying		Fair
	Value		Value		Value		Value
Assets
Long-term receivables	$	297	$	292	$	297	$	293
Liabilities
Long-term debt and related current maturities	$	6,965	$	7,813	$	6,985	$	7,817

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. These receivables are classified within level 2 of the fair value hierarchy. 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. The long-term debt and related current maturities are also classified within level 2 of the fair value hierarchy.

We enter into transactions 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. For the three months endedMarch 31, 2015 and 2014, we recognized $15 million and $13 million of gains in earnings on interest rate swap agreements. 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 $162million of expense and $57 million of incomein Other (Income) Expense for the three months endedMarch 31, 2015 and 2014.

XML

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

3 Months Ended

Mar. 31, 2015

Accumulated Other Comprehensive Income Loss [Abstract]

Accumulated Other Comprehensive Income (Loss)

Note 9. Accumulated Other Comprehensive Income (Loss)

Changes in Accumulated Other Comprehensive Income by Component
							Changes in		Changes in
			Foreign		Pension		Fair Value		Fair Value
			Exchange		and Other		of Available		of Effective
			Translation		Postretirement		for Sale		Cash Flow
			Adjustment		Adjustments		Investments		Hedges		Total
Balance at December 31, 2014		$	(740)	$	(728)	$	-	$	9	$	(1,459)
	Other comprehensive income
	(loss) before reclassifications		(721)		-		-		105		(616)
	Amounts reclassified from
	accumulated other
	comprehensive income		-		3		-		(27)		(24)
	Net current period other
	comprehensive income (loss)		(721)		3		-		78		(640)
Balance at March 31, 2015		$	(1,461)	$	(725)	$	-	$	87	$	(2,099)
							Changes in		Changes in
			Foreign		Pension		Fair Value		Fair Value
			Exchange		and Other		of Available		of 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		(5)		-		(11)		9		(7)
	Amounts reclassified from
	accumulated other
	comprehensive income		-		4		(71)		4		(63)
	Net current period other
	comprehensive income (loss)		(5)		4		(82)		13		(70)
Balance at March 31, 2014		$	299	$	359	$	88	$	2	$	748

XML

PENSION BENEFITS

3 Months Ended

Mar. 31, 2015

Pension Disclosure Paragraph Details [Abstract]

Pension Benefits

Note11. Pension Benefits

Net periodic pension benefit costs for our significant defined benefit plans include the following components:

		Three Months Ended
		U.S. Plans				Non-U.S. Plans
		March 31,				March 31,
		2015		2014		2015		2014
Service cost	$	57	$	60	$	13	$	14
Interest cost		178		193		44		58
Expected return on plan assets		(320)		(314)		(90)		(89)
Amortization of prior service cost		6		6		-		-
	$	(79)	$	(55)	$	(33)	$	(17)

In the first quarter of 2015, Honeywell contributed $109 million of marketable securities and $4 million of cash to our non-U.S. pension plans.

XML

ACCOUNTS, NOTES AND OTHER RECEIVABLES (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Accounts Receivable, Net Current [Abstract]
Trade	$ 7,868	$ 7,788
Other	557	445
Accounts receivable, Gross	8,425	8,233
Less - Allowance for doubtful accounts	(267)	(273)
Accounts receivable, Net	8,158	7,960
Accounts Notes, And Other Receivables Paragraph Details [Abstract]
Unbilled contract receivable	$ 1,730	$ 1,636

XML

COMMITMENTS AND CONTINGENCIES 9 (Details) (Joint Strike Fighter [Member])	3 Months Ended
	Mar. 31, 2015
Joint Strike Fighter [Member]
Other Matters Paragraph Details 2 [Line Items]
Loss Contingency Request For Information	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.

XML

INVENTORIES (Tables)

3 Months Ended

Mar. 31, 2015

Inventories [Abstract]

Inventories

		March 31,		December 31,
		2015		2014
Raw materials	$	1,088	$	1,124
Work in process		828		815
Finished products		2,708		2,634
		4,624		4,573
Reduction to LIFO cost basis		(117)		(168)
	$	4,507	$	4,405

XML

PENSION BENEFITS (Tables)

3 Months Ended

Mar. 31, 2015

Pension Benefits (Tables) [Abstract]

Defined Benefit Plans Disclosure

		Three Months Ended
		U.S. Plans				Non-U.S. Plans
		March 31,				March 31,
		2015		2014		2015		2014
Service cost	$	57	$	60	$	13	$	14
Interest cost		178		193		44		58
Expected return on plan assets		(320)		(314)		(90)		(89)
Amortization of prior service cost		6		6		-		-
	$	(79)	$	(55)	$	(33)	$	(17)

XML

COMMITMENTS AND CONTINGENCIES 7 (Details) (Bendix Asbestos Loss Contingency Liability [Member])	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Bendix Asbestos Loss Contingency Liability [Member]
Resolution Values Per Claim [Line Items]
Malignant claims	53,500	51,000	49,000	48,000	54,000
Nonmalignant claims	120	850	1,400	1,000	1,300

XML

SEGMENT FINANCIAL DATA (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Reconciliation of segment profit to consolidated [Abstract]
Total segment profit	$ 1,721	$ 1,596
Other income (expense)	12	111
Interest and other financial charges	(77)	(79)
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items]
Stock compensation expense	(52)	(52)
Repositioning and other charges	(131)	(214)
Income before taxes	1,564	1,411
Segment Reporting Information [Line Items]
Product sales	7,364	7,845
Service sales	1,849	1,834
Net Sales	9,213	9,679
Total segment profit	1,721	1,596
Aerospace [Member]
Reconciliation of segment profit to consolidated [Abstract]
Total segment profit	752	703
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items]
Repositioning and other charges	(48)	(76)
Segment Reporting Information [Line Items]
Product sales	2,463	2,692
Service sales	1,144	1,159
Net Sales	3,607	3,851
Total segment profit	752	703
Automation and Control Solutions [Member]
Reconciliation of segment profit to consolidated [Abstract]
Total segment profit	516	471
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items]
Repositioning and other charges	(24)	(46)
Segment Reporting Information [Line Items]
Product sales	2,979	3,075
Service sales	285	287
Net Sales	3,264	3,362
Total segment profit	516	471
Performance Materials And Technologies [Member]
Reconciliation of segment profit to consolidated [Abstract]
Total segment profit	503	473
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items]
Repositioning and other charges	(7)	(14)
Segment Reporting Information [Line Items]
Product sales	1,922	2,078
Service sales	420	388
Net Sales	2,342	2,466
Total segment profit	503	473
Corporate [Member]
Reconciliation of segment profit to consolidated [Abstract]
Total segment profit	(50)	(51)
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items]
Repositioning and other charges	(52)	(78)
Segment Reporting Information [Line Items]
Total segment profit	(50)	(51)
Pension Plans, Defined Benefit [Member]
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items]
Benefit plans income/(expense)	100	61
Other Postretirement Benefit Plans [Member]
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items]
Benefit plans income/(expense)	$ (9)	$ (12)

XML

CONSOLIDATED STATEMENT OF CASH FLOWS (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Cash flows from operating activities:
Net income	$ 1,146,000,000	$ 1,036,000,000
Less: Net income attributable to the noncontrolling interest	30,000,000	19,000,000
Net income attributable to Honeywell	1,116,000,000	1,017,000,000
Adjustments to reconcile net income attributable to Honeywell to net cash provided by operating activities:
Depreciation	163,000,000	168,000,000
Amortization	53,000,000	70,000,000
Gain on sale of available for sale investments	0	(105,000,000)
Repositioning and other charges	131,000,000	214,000,000
Net payments for repositioning and other charges	(100,000,000)	(125,000,000)
Pension and other postretirement income	(91,000,000)	(49,000,000)
Pension and other postretirement benefit payments	(9,000,000)	(36,000,000)
Stock compensation expense	52,000,000	52,000,000
Deferred income taxes	93,000,000	2,000,000
Excess tax benefits from share based payment arrangements	(47,000,000)	(30,000,000)
Other	(102,000,000)	(24,000,000)
Changes in assets and liabilities, net of the effects of acquisitions and divestitures:
Accounts, notes and other receivables	(170,000,000)	(154,000,000)
Inventories	(86,000,000)	(115,000,000)
Other current assets	58,000,000	236,000,000
Accounts payable	(112,000,000)	(41,000,000)
Accrued liabilities	(528,000,000)	(392,000,000)
Net cash provided by operating activities	421,000,000	688,000,000
Cash flows from investing activities:
Expenditures for property, plant and equipment	(165,000,000)	(192,000,000)
Proceeds from disposals of property, plant and equipment	1,000,000	7,000,000
Increase in investments	(1,501,000,000)	(631,000,000)
Decrease in investments	1,106,000,000	410,000,000
Cash paid for acquisitions, net of cash acquired	(185,000,000)	0
Proceeds from sales of businesses, net of fees paid	2,000,000	0
Other	(178,000,000)	61,000,000
Net cash used for investing activities	(920,000,000)	(345,000,000)
Cash flows from financing activities:
Net increase in commercial paper	1,048,000,000	1,100,000,000
Net increase (decrease) in short-term borrowings	4,000,000	(10,000,000)
Proceeds from issuance of common stock	78,000,000	92,000,000
Proceeds from issuance of long-term debt	3,000,000	25,000,000
Payments of long-term debt	(35,000,000)	(602,000,000)
Excess tax benefits from share based payment arrangements	47,000,000	30,000,000
Repurchases of common stock	(363,000,000)	(320,000,000)
Cash dividends paid	(415,000,000)	(363,000,000)
Net cash provided by (used for) financing activities	367,000,000	(48,000,000)
Effect of foreign exchange rate changes on cash and cash equivalents	(252,000,000)	(45,000,000)
Net (decrease) increase in cash and cash equivalents	(384,000,000)	250,000,000
Cash and cash equivalents at beginning of period	6,959,000,000	6,422,000,000
Cash and cash equivalents at end of period	$ 6,575,000,000	$ 6,672,000,000

XML

ACCOUNTS, NOTES AND OTHER RECEIVABLES

3 Months Ended

Mar. 31, 2015

Accounts, Notes And Other Receivables [Abstract]

Accounts, Notes and Other Receivables

Note 5. Accounts, Notes and Other Receivables

		March 31,		December 31,
		2015		2014
Trade	$	7,868	$	7,788
Other		557		445
		8,425		8,233
Less: Allowance for doubtful accounts		(267)		(273)
	$	8,158	$	7,960

Trade receivables include $1,730 and $1,636 million of unbilled balances under long-term contracts as of March 31, 2015 and December 31, 2014.

XML

COMMITMENTS AND CONTINGENCIES (Tables)

3 Months Ended

Mar. 31, 2015

Commitments And Contingencies [Abstract]

Loss Contingency

December 31, 2014	$	591
Accruals for environmental matters deemed
probable and reasonably estimable		46
Environmental liability payments		(35)
March 31, 2015	$	602

Environmental liabilities are included in the following balance sheet accounts:

Environmental liabilities are included in the following balance sheet accounts:
			March 31,		December 31,
			2015		2014
	Accrued liabilities	$	278	$	278
	Other liabilities		324		313
		$	602	$	591

Asbestos Related Liabilities

Asbestos Related Liabilities
		Bendix		NARCO		Total
December 31, 2014	$	623	$	929	$	1,552
Accrual for update to estimated liability		48		1		49
Asbestos related liability payments		(49)		(3)		(52)
March 31, 2015	$	622	$	927	$	1,549

Insurance Recoveries for Asbestos Related Liabilities

Insurance Recoveries for Asbestos Related Liabilities
		Bendix		NARCO		Total
December 31, 2014	$	135	$	350	$	485
Probable insurance recoveries related to
estimated liability		5		-		5
Insurance receivables settlements		1		-		1
Insurance receipts for asbestos related liabilities		(7)		(7)		(14)
March 31, 2015	$	134	$	343	$	477

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:
		March 31,		December 31,
		2015		2014
Other current assets	$	32	$	31
Insurance recoveries for asbestos related liabilities		445		454
	$	477	$	485
Accrued liabilities	$	352	$	352
Asbestos related liabilities		1,197		1,200
	$	1,549	$	1,552

The following tables present information regarding Bendix related asbestos claims activity

	Three Months Ended		Years Ended
	March 31,		December 31,
Claims Activity		2015	2014	2013
Claims Unresolved at the beginning of period		9,267	12,302	23,141
Claims Filed		707	3,694	4,527
Claims Resolved (a)		(781)	(6,729)	(15,366)
Claims Unresolved at the end of period		9,193	9,267	12,302
(a) Claims resolved in 2014 include 2,110 cancer claims which were determined to have no value. Also, claims resolved in 2014 and 2013 included 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

Disease Distribution of Unresolved Claims	March 31,	December 31,
	2015	2014	2013
Mesothelioma and Other Cancer Claims	3,773	3,933	5,810
Nonmalignant Claims	5,420	5,334	6,492
Total Claims	9,193	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

XML

FINANCIAL INSTRUMENTS AND FAIR VALUE MEASURES 2 (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Carrying (Reported) Amount, Fair Value Disclosure [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term receivables	$ 297	$ 297
Long-term debt and related current maturities	6,965	6,985
Estimate of Fair Value, Fair Value Disclosure [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term receivables	292	293
Long-term debt and related current maturities	$ 7,813	$ 7,817

XML

ACCOUNTS, NOTES AND OTHER RECEIVABLES (Tables)

3 Months Ended

Mar. 31, 2015

Accounts, Notes And Other Receivables [Abstract]

Schedule of trade, notes, and other receivables

		March 31,		December 31,
		2015		2014
Trade	$	7,868	$	7,788
Other		557		445
		8,425		8,233
Less: Allowance for doubtful accounts		(267)		(273)
	$	8,158	$	7,960