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, 2016

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.)
115 Tabor Road Morris Plains, New Jersey	07950
(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 762,115,463 shares of Common Stock outstanding at March 31, 2016.

Honeywell International Inc.

Index

Part I.		Financial Information	Page No.
	Item 1.	Financial Statements:
		Consolidated Statement of Operations (unaudited) – Three Months Ended March 31, 2016 and 2015	3
		Consolidated Statement of Comprehensive Income (unaudited) –  Three Months Ended March 31, 2016 and 2015	4
		Consolidated Balance Sheet (unaudited) –  March 31, 2016 and December 31, 2015	5
		Consolidated Statement of Cash Flows (unaudited) – Three Months Ended March 31, 2016 and 2015	6
		Notes to Financial Statements (unaudited)	7
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	22
	Item 3.	Quantitative and Qualitative Disclosures About Market Risks	28
	Item 4.	Controls and Procedures	28
Part II.		Other Information
	Item 1.	Legal Proceedings	29
	Item 2.	Changes in Securities and Use of Proceeds	29
	Item 6.	Exhibits	29
Signatures			30

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 2015 Annual Report on Form 10-K.

2

PART I. FINANCIAL INFORMATION

The financial statements and related footnotes as of March 31, 2016 should be read in conjunction with the financial statements for the year ended December 31, 2015 contained in our 2015 Annual Report on Form 10-K.

ITEM 1. FINANCIAL STATEMENTS

Honeywell International Inc.

Consolidated Statement of Operations

(Unaudited)

	Three Months Ended
	March 31,
	2016			2015
	(Dollars in millions, except per share amounts)
Product sales	$	7,619		$	7,364
Service sales		1,903			1,849
Net sales		9,522			9,213
Costs, expenses and other
Cost of products sold		5,349			5,213
Cost of services sold		1,198			1,149
		6,547			6,362
Selling, general and administrative expenses		1,280			1,230
Other (income) expense		(18	)		(20	)
Interest and other financial charges		85			77
		7,894			7,649
Income before taxes		1,628			1,564
Tax expense		432			418
Net income		1,196			1,146
Less: Net income attributable to the noncontrolling interest		10			30
Net income attributable to Honeywell	$	1,186		$	1,116
Earnings per share of common stock - basic	$	1.54		$	1.42
Earnings per share of common stock - assuming dilution	$	1.53		$	1.41
Cash dividends per share of common stock	$	0.5950		$	0.5175

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,
	2016			2015
	(Dollars in millions)
Net income	$	1,196		$	1,146
Other comprehensive income (loss), net of tax
Foreign exchange translation adjustment		122			(721	)
Actuarial losses (gains) recognized		3			(2	)
Prior service (credits) costs recognized		(19	)		5
Pension and other postretirement benefits adjustments		(16	)		3
Effective portion of cash flow hedges recognized in other comprehensive income (loss)		(32	)		105
Less: Reclassification adjustment for gains (losses) included in net income		(6	)		27
Changes in fair value of effective cash flow hedges		(26	)		78
Other comprehensive income (loss), net of tax		80			(640	)
Comprehensive income		1,276			506
Less: Comprehensive income attributable to the noncontrolling interest		10			30
Comprehensive income attributable to Honeywell	$	1,266		$	476

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

4

Honeywell International Inc.

Consolidated Balance Sheet

(Unaudited)

	March 31,			December 31,
	2016			2015
	(Dollars in millions)
ASSETS
Current assets:
Cash and cash equivalents	$	4,473		$	5,455
Accounts, notes and other receivables		8,397			8,075
Inventories		4,743			4,420
Investments and other current assets		1,919			2,103
Total current assets		19,532			20,053
Investments and long-term receivables		592			517
Property, plant and equipment - net		6,027			5,789
Goodwill		16,708			15,895
Other intangible assets - net		4,706			4,577
Insurance recoveries for asbestos related liabilities		431			426
Deferred income taxes		318			283
Other assets		2,051			1,776
Total assets	$	50,365		$	49,316
LIABILITIES
Current liabilities:
Accounts payable	$	5,511		$	5,580
Commercial paper and other short-term borrowings		3,631			5,937
Current maturities of long-term debt		626			577
Accrued liabilities		5,891			6,277
Total current liabilities		15,659			18,371
Long-term debt		9,700			5,554
Deferred income taxes		626			558
Postretirement benefit obligations other than pensions		506			526
Asbestos related liabilities		1,252			1,251
Other liabilities		4,247			4,348
Redeemable noncontrolling interest		3			290
SHAREOWNERS’ EQUITY
Capital - common stock issued		958			958
- additional paid-in capital		5,539			5,377
Common stock held in treasury, at cost		(12,719	)		(11,664	)
Accumulated other comprehensive loss		(2,455	)		(2,535	)
Retained earnings		26,874			26,147
Total Honeywell shareowners’ equity		18,197			18,283
Noncontrolling interest		175			135
Total shareowners’ equity		18,372			18,418
Total liabilities, redeemable noncontrolling interest and shareowners’ equity	$	50,365		$	49,316

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,
	2016			2015
	(Dollars in millions)
Cash flows from operating activities:
Net income	$	1,196		$	1,146
Less: Net income attributable to the noncontrolling interest		10			30
Net income attributable to Honeywell		1,186			1,116
Adjustments to reconcile net income attributable to Honeywell to net cash provided by operating activities:
Depreciation		179			163
Amortization		74			53
Repositioning and other charges		125			131
Net payments for repositioning and other charges		(134	)		(100	)
Pension and other postretirement income		(159	)		(91	)
Pension and other postretirement benefit payments		(38	)		(9	)
Stock compensation expense		53			52
Deferred income taxes		48			93
Excess tax benefits from share based payment arrangements		(30	)		(47	)
Other		86			(102	)
Changes in assets and liabilities, net of the effects of acquisitions and divestitures:
Accounts, notes and other receivables		(203	)		(170	)
Inventories		(241	)		(86	)
Other current assets		(59	)		58
Accounts payable		(113	)		(112	)
Accrued liabilities		(517	)		(528	)
Net cash provided by operating activities		257			421
Cash flows from investing activities:
Expenditures for property, plant and equipment		(194	)		(165	)
Proceeds from disposals of property, plant and equipment		1			1
Increase in investments		(836	)		(1,501	)
Decrease in investments		880			1,106
Cash paid for acquisitions, net of cash acquired		(1,056	)		(185	)
Proceeds from sales of businesses, net of fees paid		-			2
Other		9			(178	)
Net cash used for investing activities		(1,196	)		(920	)
Cash flows from financing activities:
Net (decrease) increase in commercial paper and other short-term borrowings		(2,450	)		1,052
Proceeds from issuance of common stock		105			78
Proceeds from issuance of long-term debt		4,448			3
Payments of long-term debt		(419	)		(35	)
Excess tax benefits from share based payment arrangements		30			47
Repurchases of common stock		(1,156	)		(363	)
Cash dividends paid		(499	)		(415	)
Payments to purchase the noncontrolling interest		(238	)		-
Other		18			-
Net cash (used for) provided by financing activities		(161	)		367
Effect of foreign exchange rate changes on cash and cash equivalents		118			(252	)
Net decrease in cash and cash equivalents		(982	)		(384	)
Cash and cash equivalents at beginning of period		5,455			6,959
Cash and cash equivalents at end of period	$	4,473		$	6,575

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, 2016, the results of operations for the quarter and three months ended March 31, 2016 and 2015 and the cash flows for the three months ended March 31, 2016 and 2015. The results of operations for the three months ended March 31, 2016 should not necessarily be taken as indicative of the results of operations expected for the entire year.

We report our quarterly financial information using a calendar convention; 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. In the event that differences in actual closing dates are material to year-over-year comparisons of quarterly or year-to-date results, we will provide appropriate disclosures. Our actual closing dates for the three months ended March 31, 2016 and 2015 were April 2, 2016 and March 28, 2015. We estimate that our sales in the first quarter of 2016 compared to the first quarter of 2015 include an approximate 3 percent benefit from additional reporting days in the current year period resulting from our normal quarterly closing procedures.

Note 2. Recent Accounting Pronouncements

Accounting pronouncements 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 effective date was deferred for one year to the interim and annual periods beginning on or after December 15, 2017. Early adoption is permitted as of the original effective date – interim and annual periods beginning on or after December 15, 2016. 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.

In February 2016, the FASB issued guidance on accounting for leases which requires lessees to recognize most leases on their balance sheets for the rights and obligations created by those leases. The guidance requires enhanced disclosures regarding the amount, timing, and uncertainty of cash flows arising from leases and will be effective for interim and annual periods beginning after December 15, 2018. Early adoption is permitted. The guidance requires the use of a modified retrospective approach. We are evaluating the impact of the guidance on our consolidated financial position, results of operations and related disclosures.

In March 2016, the FASB issued amended guidance related to employee share-based payment accounting. The guidance requires all income tax effects of awards to be recognized in the income statement when the awards vest or are settled and will be applied on a prospective basis. The guidance also requires presentation of excess tax benefits as an operating activity on the statement of cash flows rather than as a financing activity, and can be applied retrospectively or prospectively. The guidance increases the amount companies can withhold to cover income taxes on awards without triggering liability classification for shares used to satisfy statutory income tax withholding obligations and requires application of a modified retrospective transition method. The amended guidance will be effective for interim and annual periods beginning after

7

Honeywell International Inc.

Notes to Financial Statements

(Unaudited)

(Dollars in millions, except per share amounts)

December 15, 2016; early adoption is permitted if all provisions are adopted in the same period. We are evaluating the impact of the amended guidance on our consolidated financial position, results of operations and related disclosures.

Note 3. Acquisitions

During the first quarter of 2016, we acquired businesses for an aggregate cost (net of cash acquired and debt assumed) of $1,053 million.

On April 1, 2016, the Company completed the acquisition of Xtralis International Holdings Limited (Xtralis), a leading global provider of aspiration smoke detection and perimeter security technologies, for an aggregate cost, net of cash acquired and debt assumed, of approximately $515 million. Xtralis is part of Automation and Control Solutions (ACS).

In February 2016, the Company acquired 100 percent of the issued and outstanding shares of COM DEV International (COM DEV), a leading satellite and space components provider, for an aggregate value, net of cash acquired and debt assumed, of approximately $347 million. COM DEV is part of Aerospace and had reported 2015 fiscal year revenues of approximately $159 million.

The assets and liabilities of Xtralis and COM DEV have been included in the Consolidated Balance Sheet as of March 31, 2016, including $331 million and $177 million allocated to goodwill, which is non-deductible for tax purposes.

In December 2015, the Company acquired the Elster Division of Melrose Industries plc (Elster) for an aggregate value, net of cash acquired, of approximately $4,899 million. Elster is part of ACS and PMT. The following table summarizes the updated estimate of fair values of the Elster assets and liabilities acquired as of the acquisition date:

Current assets	$	533
Intangible assets		2,255
Other noncurrent assets		209
Current liabilities		(426	)
Noncurrent liabilities		(929	)
Net assets acquired		1,642
Noncontrolling interest		(3	)
Goodwill		3,260
Purchase Price	$	4,899

The purchase accounting for Xtralis, COM DEV and Elster is subject to final adjustment, primarily for the valuation of intangible assets, amounts allocated to goodwill, tax balances and certain pre-acquisition contingencies.

8

Honeywell International Inc.

Notes to Financial Statements

(Unaudited)

(Dollars in millions, except per share amounts)

Note 4. Repositioning and Other Charges

A summary of repositioning and other charges follows:

	Three Months Ended
	March 31,
	2016			2015
Severance	$	28		$	37
Asset impairments		7			8
Exit costs		2			1
Adjustments		(17	)		(7	)
Total net repositioning charge		20			39
Asbestos related litigation charges, net of insurance		53			46
Probable and reasonably estimable environmental liabilities		52			46
Total net repositioning and other charges	$	125		$	131

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

	Three Months Ended
	March 31,
	2016		2015
Cost of products and services sold	$	105	$	122
Selling, general and administrative expenses		20		9
	$	125	$	131

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

	Three Months Ended
	March 31,
	2016		2015
Aerospace	$	49	$	48
Automation and Control Solutions		7		24
Performance Materials and Technologies		9		7
Corporate		60		52
	$	125	$	131

In the quarter ended March 31, 2016, we recognized repositioning charges totaling $37 million including severance costs of $28 million related to workforce reductions of 293 manufacturing and administrative positions mainly in ACS and Performance Materials and Technologies (PMT). The workforce reductions were primarily related to achieving acquisition-related synergies and outsourcing of certain packaging operations. Also, $17 million of previously established accruals, primarily for severance, in ACS and PMT, were returned to income primarily as a result of higher attrition than anticipated in prior severance programs resulting in lower required severance payments.

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

9

Honeywell International Inc.

Notes to Financial Statements

(Unaudited)

(Dollars in millions, except per share amounts)

connection with our productivity and ongoing functional transformation initiatives and outsourcing of certain component manufacturing in ACS.

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

	Severance			Asset			Exit
	Costs			Impairments			Costs			Total
December 31, 2015	$	329		$	-		$	21		$	350
Charges		28			7			2			37
Usage - cash		(53	)		-			(1	)		(54	)
Usage - noncash		-			(7	)		-			(7	)
Foreign currency translation		6			-			-			6
Adjustments		(16	)		-			(1	)		(17	)
March 31, 2016	$	294		$	-		$	21		$	315

Certain repositioning projects in 2016 and 2015 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 are not expected to be significant.

Note 5. Earnings Per Share

	Three Months Ended
	March 31,
Basic	2016		2015
Net income attributable to Honeywell	$	1,186	$	1,116
Weighted average shares outstanding		767.9		783.8
Earnings per share of common stock	$	1.54	$	1.42

	Three Months Ended
	March 31,
Assuming Dilution	2016		2015
Net income attributable to Honeywell	$	1,186	$	1,116
Average Shares
Weighted average shares outstanding		767.9		783.8
Dilutive securities issuable - stock plans		9.0		10.2
Total weighted average shares outstanding		776.9		794.0
Earnings per share of common stock	$	1.53	$	1.41

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, 2016 and 2015, the weighted average number of stock options excluded from the computations was 8.4 million and 7.8 million. These stock options were outstanding at the end of each of the respective periods.

10

Honeywell International Inc.

Notes to Financial Statements

(Unaudited)

(Dollars in millions, except per share amounts)

Note 6. Accounts, Notes and Other Receivables

	March 31,			December 31,
	2016			2015
Trade	$	8,238		$	7,901
Other		450			436
		8,688			8,337
Less: Allowance for doubtful accounts		(291	)		(262	)
	$	8,397		$	8,075

Trade receivables include $1,654 and $1,590 million of unbilled balances under long-term contracts as of March 31, 2016 and December 31, 2015. These amounts are billed in accordance with the terms of customer contracts to which they relate.

Note 7. Inventories

	March 31,			December 31,
	2016			2015
Raw materials	$	1,195		$	1,120
Work in process		871			826
Finished products		2,768			2,590
		4,834			4,536
Reduction to LIFO cost basis		(91	)		(116	)
	$	4,743		$	4,420

11

Honeywell International Inc.

Notes to Financial Statements

(Unaudited)

(Dollars in millions, except per share amounts)

Note 8. Long-term Debt and Credit Agreements

	March 31,			December 31,
	2016			2015
5.40% notes due 2016	$	-		$	400
5.30% notes due 2017		400			400
Floating rate Euro notes due 2018		1,134			-
5.30% notes due 2018		900			900
5.00% notes due 2019		900			900
0.65% Euro notes due 2020		1,134			-
4.25% notes due 2021		800			800
1.30% Euro notes due 2023		1,416			-
3.35% notes due 2023		300			300
2.25% Euro notes due 2028		850			-
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 and debt issuance costs), 0.6%-9.5% maturing at various dates through 2023		445			384
		10,326			6,131
Less: current portion		(626	)		(577	)
	$	9,700		$	5,554

In February 2016, the Company issued €1,000 million Floating Rate Senior Notes due 2018, €1,000 million 0.65% Senior Notes due 2020, €1,250 million 1.30% Senior Notes due 2023 and €750 million 2.25% Senior Notes due 2028 (collectively, the “Notes”). The Notes are senior unsecured and unsubordinated obligations of Honeywell and rank equally with all of Honeywell’s existing and future senior unsecured debt and senior to all of Honeywell’s subordinated debt. The offering resulted in gross proceeds of $4,438 million, offset by $17 million in discount and closing costs related to the offering.

We have entered into a $3 billion 364-Day Credit Agreement (364-Day Credit Agreement) with a syndicate of banks. The 364-Day Credit Agreement is maintained for general corporate purposes.

We have also entered into a $4 billion Amended and Restated Five Year Credit Agreement (Credit Agreement) with a syndicate of banks. The Credit Agreement is maintained for general corporate purposes. Commitments under the Credit Agreement can be increased pursuant to the terms of the Credit Agreement to an aggregate amount not to exceed $4.5 billion.

There have been no borrowings under the 364-Day Credit Agreement or the Credit Agreement.

Note 9. 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 2015 Annual Report on Form 10-K.

The following table sets forth the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis:

12

Honeywell International Inc.

Notes to Financial Statements

(Unaudited)

(Dollars in millions, except per share amounts)

	March 31,		December 31,
	2016		2015
Assets:
Foreign currency exchange contracts	$	22	$	28
Available for sale investments		1,352		1,501
Interest rate swap agreements		121		92
Liabilities:
Foreign currency exchange contracts	$	62	$	17

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. The Company holds investments in certificates of deposits, time deposits and commercial paper that are designated as available for sale and are valued using published prices based on observable market data. These investments are classified within level 2. The Company also holds available for sale investments in U.S. government and corporate debt securities valued utilizing published prices based on quoted market pricing, which are classified within level 1.

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, 2016				December 31, 2015
		Carrying		Fair		Carrying		Fair
		Value		Value		Value		Value
Assets
Long-term receivables	$	299	$	294	$	292	$	283
Liabilities
Long-term debt and related current maturities	$	10,326	$	10,976	$	6,131	$	6,721

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. The fair value of these receivables is considered level 2. The Company determined the fair value of the long-term debt and related current maturities utilizing transactions in the listed markets for identical or similar liabilities. The fair value of the long-term debt and related current maturities is also considered level 2.

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, 2016 and 2015, we recognized $29 million and $15 million of gains in the Consolidated Statement of Operations 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 $32 million and $162 million of expense in Other (income) expense for the three months ended March 31, 2016 and 2015.

13

Honeywell International Inc.

Notes to Financial Statements

(Unaudited)

(Dollars in millions, except per share amounts)

Note 10. Accumulated Other Comprehensive Income (Loss)

Changes in Accumulated Other Comprehensive Income by Component

				Pension			Changes in
	Foreign			and Other			Fair Value
	Exchange			Postretirement			of Effective
	Translation			Benefits			Cash Flow
	Adjustment			Adjustments			Hedges			Total
Balance at December 31, 2015		(1,892	)	$	(644	)	$	1		$	(2,535	)
Other comprehensive income (loss) before reclassifications		122			-			(32	)		90
Amounts reclassified from accumulated other comprehensive income		-			(16	)		6			(10	)
Net current period other comprehensive income (loss)		122			(16	)		(26	)		80
Balance at March 31, 2016	$	(1,770	)	$	(660	)	$	(25	)	$	(2,455	)
				Pension			Changes in
		Foreign		and Other			Fair Value
		Exchange		Postretirement			of Effective
		Translation		Benefits			Cash Flow
		Adjustment		Adjustments			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	)

14

Honeywell International Inc.
Notes to Financial Statements
(Unaudited)
(Dollars in millions, except per share amounts)

Note 11. Segment Financial Data

We globally manage our business operations through three reportable operating segments. Segment information is consistent with how management reviews the businesses, makes investing and resource allocation decisions and assesses operating performance.

Honeywell’s senior management evaluates segment performance based on segment profit. Segment profit is measured as business unit income (loss) before taxes excluding general corporate unallocated expense, other income (expense), interest and other financial charges, pension and other postretirement income (expense), stock compensation expense, repositioning and other charges.

	Three Months Ended
	March 31,
	2016			2015
Net Sales
Aerospace
Products	$	2,490		$	2,463
Services		1,215			1,144
Total		3,705			3,607
Automation and Control Solutions
Products		3,386			2,979
Services		291			285
Total		3,677			3,264
Performance Materials and Technologies
Products		1,743			1,922
Services		397			420
Total		2,140			2,342
	$	9,522		$	9,213
Segment Profit
Aerospace	$	798		$	752
Automation and Control Solutions		530			516
Performance Materials and Technologies		441			503
Corporate		(49	)		(50	)
Total segment profit		1,720			1,721
Other income(a)		12			12
Interest and other financial charges		(85	)		(77	)
Stock compensation expense(b)		(53	)		(52	)
Pension ongoing income(b)		150			100
Other postretirement income (expense)(b)		9			(9	)
Repositioning and other charges (b)		(125	)		(131	)
Income before taxes	$	1,628		$	1,564

(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.

15

Honeywell International Inc.
Notes to Financial Statements
(Unaudited)
(Dollars in millions, except per share amounts)

Note 12. Pension Benefits

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

	Three Months Ended
	U.S. Plans						Non-U.S. Plans
	March 31,						March 31,
	2016			2015			2016			2015
Service cost	$	48		$	57		$	12		$	13
Interest cost		150			178			47			44
Expected return on plan assets		(306	)		(320	)		(99	)		(90	)
Amortization of prior service cost		(11	)		6			(1	)		-
	$	(119	)	$	(79	)	$	(41	)	$	(33	)

Note 13. Commitments and Contingencies

Environmental Matters

Our environmental matters are described in Note 19, Commitments and Contingencies, of Notes to Financial Statements in our 2015 Annual Report on Form 10-K.

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

December 31, 2015	$	518
Accruals for environmental matters deemed probable and reasonably estimable		52
Environmental liability payments		(31	)
March 31, 2016	$	539

Environmental liabilities are included in the following balance sheet accounts:

	March 31,		December 31,
	2016		2015
Accrued liabilities	$	253	$	253
Other liabilities		286		265
	$	539	$	518

We do not currently possess sufficient information to reasonably estimate the amounts of environmental liabilities to be recorded upon future completion of studies, litigation or settlements, and neither the timing nor the amount of the ultimate costs associated with environmental matters can be determined although they could be material to our consolidated results of operations and operating cash flows in the periods recognized or paid. However, considering our past experience and existing reserves, we do not expect that environmental matters will have a material adverse effect on our consolidated financial position.

Onondaga Lake, Syracuse, NY—We are implementing a combined dredging/capping remedy of Onondaga Lake pursuant to a consent decree approved by the United States District Court for the Northern District of New York in January 2007. We have accrued for our estimated cost of remediating Onondaga Lake based on currently available information and analysis performed by our engineering consultants. Honeywell is also conducting remedial investigations and activities at other sites in Syracuse. We have recorded reserves for these investigations and activities where appropriate, consistent with the accounting policy described above.

Honeywell has entered into a cooperative agreement with potential natural resource trustees to assess alleged natural resource damages relating to this site. It is not possible to predict the outcome or duration of this

16

Honeywell International Inc.
Notes to Financial Statements
(Unaudited)
(Dollars in millions, except per share amounts)

assessment, or the amounts of, or responsibility for, any damages.

Asbestos Matters

Honeywell is a defendant in asbestos related personal injury actions related to two predecessor companies:

• North American Refractories Company (NARCO), which was sold in 1986, produced refractory products (bricks and cement used in high temperature applications). Claimants consist largely of individuals who allege exposure to NARCO asbestos-containing refractory products in an occupational setting.

• Bendix Friction Materials (Bendix) business, which was sold in 2014, manufactured automotive brake parts that contained chrysotile asbestos in an encapsulated form. Claimants consist largely of individuals who allege exposure to asbestos from brakes from either performing or being in the vicinity of individuals who performed brake replacements.

The following tables summarize information concerning NARCO and Bendix asbestos related balances:

Asbestos Related Liabilities
	Bendix			NARCO			Total
December 31, 2015	$	622		$	921		$	1,543
Accrual for update to estimated liability		52			1			53
Asbestos related liability payments		(50	)		(2	)		(52	)
March 31, 2016	$	624		$	920		$	1,544

Insurance Recoveries for Asbestos Related Liabilities
	Bendix			NARCO			Total
December 31, 2015	$	124		$	325		$	449
Probable insurance recoveries related to estimated liability		8			-			8
Insurance receivables settlements		-			-			-
Insurance receipts for asbestos related liabilities		(1	)		(2	)		(3	)
March 31, 2016	$	131		$	323		$	454

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

	March 31,		December 31,
	2016		2015
Other current assets	$	23	$	23
Insurance recoveries for asbestos related liabilities		431		426
	$	454	$	449
Accrued liabilities	$	292	$	292
Asbestos related liabilities		1,252		1,251
	$	1,544	$	1,543

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 asbestos-containing 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

17

Honeywell International Inc.
Notes to Financial Statements
(Unaudited)
(Dollars in millions, except per share amounts)

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 2016 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. In 2015, Honeywell filed suit against the NARCO Trust in Bankruptcy Court alleging breach of certain provisions of the Trust Agreement and Trust Distribution Procedures. The parties agreed to dismiss the proceeding without prejudice pursuant to an 18 month Standstill Agreement. Claims processing will continue during this period subject to a defined dispute resolution process. As of March 31, 2016, Honeywell has not made any payments to the NARCO Trust for Annual Contribution Claims.

Honeywell is also responsible for payments due to claimants pursuant to settlement agreements reached during the pendency of the NARCO bankruptcy proceedings that provide for the right to submit claims to the NARCO Trust subject to qualification under the terms of the settlement agreements and Trust Distribution Procedures criteria (Pre-established Unliquidated Claims), which amounts are estimated at $150 million and are expected to be paid during the initial years of trust operations ($5 million of which has been paid since the effective date of the NARCO Trust). Such payments are not subject to the annual cap described above.

Our consolidated financial statements reflect an estimated liability for pre-established unliquidated claims ($145 million), unsettled claims pending as of the time NARCO filed for bankruptcy protection ($32 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:

18

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	2016			2015			2014
Claims Unresolved at the beginning of period		7,779			9,267			12,302
Claims Filed		733			2,862			3,694
Claims Resolved (1)		(762	)		(4,350	)		(6,729	)
Claims Unresolved at the end of period		7,750			7,779			9,267

(1) Claims resolved in 2014 include 2,110 cancer claims which were determined to have no value. Also, claims resolved in 2015 and 2014 include significantly aged (i.e., pending for more than six years) claims totaling 153 and 1,266.

Disease Distribution of Unresolved Claims	March 31,		December 31,
	2016		2015		2014
Mesothelioma and Other Cancer Claims		3,678		3,772		3,933
Nonmalignant Claims		4,072		4,007		5,334
Total Claims		7,750		7,779		9,267

Honeywell has experienced average resolution values per claim excluding legal costs as follows:

	Years Ended December 31,
	2015		2014		2013		2012		2011
	(in whole dollars)
Malignant claims	$	44,000	$	53,500	$	51,000	$	49,000	$	48,000
Nonmalignant claims	$	100	$	120	$	850	$	1,400	$	1,000

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

19

Honeywell International Inc.
Notes to Financial Statements
(Unaudited)
(Dollars in millions, except per share amounts)

asbestos claims and Bendix-related asbestos claims estimated to be filed within the next five years. Although it is impossible to predict the outcome of either pending or future Bendix-related asbestos claims, we do not believe that such claims would have a material adverse effect on our consolidated financial position in light of our insurance coverage and our prior experience in resolving such claims. If the rate and types of claims filed, the average resolution value of such claims and the period of time over which claim settlements are paid (collectively, the Variable Claims Factors) do not substantially change, Honeywell would not expect future Bendix-related asbestos claims to have a material adverse effect on our results of operations or operating cash flows in any fiscal year. No assurances can be given, however, that the Variable Claims Factors will not change.

Other Matters

We are subject to a number of other lawsuits, investigations and disputes (some of which involve substantial amounts claimed) arising out of the conduct of our business, including matters relating to commercial transactions, government contracts, product liability, prior acquisitions and divestitures, employee benefit plans, intellectual property, and environmental, health and safety matters. We recognize a liability for any contingency that is probable of occurrence and reasonably estimable. We continually assess the likelihood of adverse judgments of outcomes in these matters, as well as potential ranges of possible losses (taking into consideration any insurance recoveries), based on a careful analysis of each matter with the assistance of outside legal counsel and, if applicable, other experts. Included in these other matters are the following:

Honeywell v. United Auto Workers (UAW) et. al—In July 2011, Honeywell filed an action in federal court (District of New Jersey) against the UAW and all former employees who retired under a series of Master Collective Bargaining Agreements (MCBAs) between Honeywell and the UAW seeking a declaratory judgment that certain express limitations on its obligation to contribute toward the healthcare coverage of such retirees (the CAPS) set forth in the MCBAs may be implemented, effective January 1, 2012. The UAW and certain retiree defendants filed a mirror suit in the Eastern District of Michigan alleging that the MCBAs do not provide for CAPS on the Company’s liability for healthcare coverage. The New Jersey action was dismissed and Honeywell subsequently answered the UAW’s complaint in Michigan and asserted counterclaims for fraudulent inducement, negligent misrepresentation and breach of implied warranty. The UAW filed a motion to dismiss these counterclaims. The court dismissed Honeywell’s fraudulent inducement and negligent misrepresentation claims, but let stand the claim for breach of implied warranty. In the second quarter of 2014, the parties agreed to stay the proceedings with respect to those retirees who retired before the initial inclusions of the CAPS in the 2003 MCBA until the Supreme Court decided the M&G Polymers USA, LLC v. Tackett case. In 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. The stay of the proceedings has been lifted and the case is again proceeding. Based on the Supreme Court’s 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 $176 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 $110 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

20

Honeywell International Inc.
Notes to Financial Statements
(Unaudited)
(Dollars in millions, except per share amounts)

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.

21

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, 2016. The financial information as of March 31, 2016 should be read in conjunction with the financial statements for the year ended December 31, 2015 contained in our 2015 Annual Report on Form 10-K.

A. Results of Operations – three months ended March 31, 2016 compared with the three months ended March 31, 2015

Net Sales

	Three Months Ended
	March 31,
	2016			2015
Net sales	$	9,522		$	9,213
% change compared with prior period		3	%

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

	Three Months
Foreign Exchange		(2	)%
Acquisitions/Divestitures		5	%
		3	%

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

See Note 1 Basis of Presentation of Notes to Financial Statements for further discussion, including the estimated impact from additional reporting days in the current year period resulting from our normal quarterly closing procedures.

A discussion of net sales by segment can be found in the Review of Business Segments section of this MD&A. The foreign currency translation impact is principally driven by the weakening of the Euro and Canadian Dollar against the U.S. Dollar.

Cost of Products and Services Sold

	Three Months Ended
	March 31,
	2016			2015
Cost of products and services sold	$	6,547		$	6,362
% change compared with prior period		3	%
Gross margin percentage		31.2	%		30.9	%

Cost of products and services sold increased principally due to an increase in direct material and labor costs of approximately $220 million (driven primarily by acquisitions, partially offset by the favorable impact from productivity and foreign currency translation) and increased amortization and depreciation expense of approximately $35 million, partially offset by higher pension and other postretirement income of approximately $55 million.

Gross margin percentage increased primarily due to higher segment gross margin in Aerospace and Performance Materials and Technologies (PMT) (approximately 0.6 percentage point impact collectively) and increased pension and other postretirement benefits income allocated to cost of products and services sold

22

(approximately 0.5 percentage point impact), partially offset by lower segment gross margin in Automation and Control Solutions (ACS) (approximately 0.8 percentage point impact), principally attributed to acquisitions.

Selling, General and Administrative Expenses

	Three Months Ended
	March 31,
	2016			2015
Selling, general and administrative expenses	$	1,280		$	1,230
% of sales		13.4	%		13.4	%

Selling, general and administrative expenses increased primarily driven by an increase in labor costs (principally attributed to acquisitions and merit increases, partially offset by a reduction in incentive compensation), partially offset by the favorable impact from foreign currency translation.

Tax Expense

	Three Months Ended
	March 31,
	2016			2015
Tax expense	$	432		$	418
Effective tax rate		26.5	%		26.7	%

The effective tax rates for the three months ended in 2016 and 2015 were lower than the U.S. federal statutory rate of 35% due, in part, to non-U.S. earnings taxed at lower rates, the vast majority of which we intend to permanently reinvest outside the United States, and benefits from manufacturing incentives.

The Company currently expects the effective tax rate for 2016 to be approximately 26.5%. The effective tax rate can vary from quarter to quarter due to unusual or infrequently occurring items, the resolution of income tax audits, changes in tax laws or other items such as pension mark-to-market adjustments.

Net Income Attributable to Honeywell

	Three Months Ended
	March 31,
	2016		2015
Net income attributable to Honeywell	$	1,186	$	1,116
Earnings per share of common stock – assuming dilution	$	1.53	$	1.41

Earnings per share of common stock – assuming dilution increased primarily due to increased segment profit in Aerospace and ACS, offset by decreased segment profit in PMT, higher pension and other postretirement income and a decrease in the weighted average shares outstanding.

23

Review of Business Segments

	Three Months Ended
	March 31,				%
	2016		2015		Change
Aerospace Sales
Commercial Aviation Original Equipment	$	701	$	683		3%
Commercial Aviation Aftermarket		1,148		1,082		6%
Defense and Space		1,069		1,075		(1)%
Transportation Systems		787		767		3%
Total Aerospace Sales		3,705		3,607
Automation and Control Solutions Sales
Energy Safety & Security		2,598		2,234		16%
Building Solutions & Distribution		1,079		1,030		5%
Total Automation and Control Solution Sales		3,677		3,264
Performance Materials and Technologies
UOP		568		914		(38)%
Process Solutions		696		632		10%
Advanced Materials		876		796		10%
Total Performance Materials and Technologies Sales		2,140		2,342
Net Sales	$	9,522	$	9,213

Aerospace

	Three Months Ended
	March 31,
	2016		2015		% Change
Net sales	$	3,705	$	3,607		3%
Cost of products and service sold		2,682		2,619
Selling, general and administrative expenses		145		161
Other		80		75
Segment profit	$	798	$	752		6%

	2016 vs. 2015
	Three Months Ended
	March 31,
Factors Contributing to Year-Over-Year Change		Sales		Segment Profit
Organic growth/ Operational segment profit		3	%	8	%
Foreign exchange		(1	)%	(2	)%
Acquisitions and divestitures, net		1	%	-
Total % Change		3	%	6	%

Aerospace sales increased primarily driven by growth from organic sales and acquisitions, net of divestitures, partially offset by the unfavorable impact of foreign currency translation.

24

• Commercial Aviation Original Equipment sales increased by 3% (increased 4% organic) driven primarily by higher business and general aviation engine shipments and demand from air transport and regional customers, partially offset by higher incentives to air transport and regional original equipment manufacturers (OEM Incentives).

• Commercial Aviation Aftermarket sales increased by 6% (increased 6% organic) driven primarily by higher repair and overhaul activities and increased spares shipments to air transport and regional customers.

• Defense and Space sales decreased by 1% (decreased 2% organic) primarily due to declines in international programs and lower U.S. government services revenue, partially offset by sales from the COM DEV acquisition.

• Transportation Systems sales increased by 3% (increased 6% organic) driven primarily by growth from new platform launches and higher global turbo penetration, partially offset by the unfavorable impact from foreign currency translation.

Aerospace segment profit increased primarily due to an increase in operational segment profit, partially offset by the unfavorable impact from foreign currency translation. The increase in operational segment profit is driven primarily by productivity, net of inflation, and favorable pricing, partially offset by continued investments for growth. Cost of products and services sold increased primarily due to higher organic sales volumes, partially offset by productivity, net of inflation, and foreign currency translation.

Automation and Control Solutions

	Three Months Ended
	March 31,
	2016		2015		% Change
Net sales	$	3,677	$	3,264		13%
Cost of products and services sold		2,445		2,089
Selling, general and administrative expenses		623		587
Other		79		72
Segment profit	$	530	$	516		3%

	2016 vs. 2015
	Three Months Ended
	March 31,
Factors Contributing to Year-Over-Year Change		Sales		Segment Profit
Organic growth/ Operational segment profit		4	%	3	%
Foreign currency translation		(3	)%	(2	)%
Acquisitions and divestitures, net		12	%	2	%
Total % Change		13	%	3	%

ACS sales increased primarily due to growth from acquisitions and organic sales growth, partially offset by the unfavorable impact of foreign currency translation.

• Sales in Energy, Safety & Security increased by 16% (flat organic) principally due to the Elster acquisition partially offset by the unfavorable impact of foreign currency translation. Flat organic sales were primarily the result of increased sales volumes in Security and Fire across all regions offset by decreased sales volumes in Sensing & Productivity Solutions.

• Sales in Building Solutions & Distribution increased by 5% (increased 11% organic) principally due to increased sales volume in the Americas Distribution business and growth in the project installation and services businesses, partially offset by the unfavorable impact of foreign currency translation.

25

ACS segment profit increased due to higher operational segment profit and acquisitions, partially offset by the unfavorable impact of foreign currency translation. The increase in operational segment profit is primarily due to the positive impact of price and productivity net of inflation, partially offset by continued investments for growth. Cost of products and services sold increased primarily due to acquisitions and higher sales volume partially offset by the favorable impact of foreign currency translation and productivity net of inflation.

Performance Materials and Technologies

	Three Months Ended
	March 31,
	2016		2015		% Change
Net sales	$	2,140	$	2,342		(9)%
Cost of products and services sold		1,430		1,582
Selling, general and administrative expenses		232		222
Other		37		35
Segment profit	$	441	$	503		(12)%

	2016 vs. 2015
	Three Months Ended
	March 31,
Factors Contributing to Year-Over-Year Change		Sales		Segment Profit
Organic growth/ Operational segment profit		(10	)%	(12	)%
Foreign currency translation		(2	)%	(2	)%
Acquisitions and divestitures, net		3	%	2	%
Total % Change		(9	)%	(12	)%

PMT sales decreased due to a decrease in organic sales volumes and the unfavorable impact of foreign currency translation, partially offset by growth from acquisitions.

• UOP sales decreased 38% (decreased 37% organic) driven primarily by lower gas processing revenues due to a significant slowdown in customer projects, which is expected to continue, decreased catalyst volumes, which are expected to moderate during the year, and decreased equipment sales.

• Process Solutions sales increased 10% (increased 9% organic) driven primarily by higher revenues in projects and increased volumes in field products driven by the Elster acquisition, partially offset by the unfavorable impact of foreign currency translation.

• Advanced Materials sales increased 10% (increased 7% organic) primarily driven by increased volumes in Fluorine Products and Specialty Products, partially offset by lower raw material pass-through pricing in Resins and Chemicals.

PMT segment profit decreased due to a decrease in operational segment profit and the unfavorable impact of foreign currency translation, partially offset by acquisitions. The decrease in operational segment profit is primarily due to lower organic sales volume, particularly in UOP as described above. Cost of products and services sold decreased primarily due to the favorable impacts of lower organic sales volumes, foreign currency translation, productivity and inflation, partially offset by acquisitions.

Repositioning Charges

Our repositioning actions are expected to generate incremental pretax savings of $175 million to $200 million in 2016 compared with 2015 principally from planned workforce reductions. Cash spending related to our repositioning actions was $54 million in the three months ended March 31, 2016 and was funded through

26

operating cash flows. In 2016, we expect cash spending for repositioning actions to be approximately $175 million and to be funded through operating cash flows.

B. Liquidity and Capital Resources

Cash Flow Summary

	Three Months Ended
	March 31,
	2016			2015
Cash provided by (used for):
Operating activities	$	257		$	421
Investing activities		(1,196	)		(920	)
Financing activities		(161	)		367
Effect of exchange rate changes on cash		118			(252	)
Net (decrease) increase in cash and cash equivalents	$	(982	)	$	(384	)

Cash provided by operating activities decreased by $164 million primarily due to increased cash tax payments of $202 million, partially offset by the absence of $151 million in OEM incentive payments in 2015.

Cash used for investing activities increased by $276 million primarily due to an increase in cash paid for acquisitions of $871 million most significantly Xtralis International Holdings Limited and COM DEV International, partially offset by a net $439 million decrease in investments, primarily short term marketable securities and a decrease of $187 million in settlement payments of foreign currency exchange contracts used as economic hedges on certain non-functional currency denominated monetary assets and liabilities.

Cash used for financing activities increased by $528 million primarily due to (i) an increase in net repurchases of common stock of $766 million, (ii) the acquisition of the remaining 30% noncontrolling interest of UOP Russell LLC for $238 million and (iii) an increase in cash dividends paid of $84 million including amounts paid to former UOP Russell LLC noncontrolling shareholder, partially offset by an increase in the net proceeds from debt issuances of $559 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 2016, 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 $160 million ($106 million of marketable securities were contributed in January 2016) to our non-U.S. plans to satisfy regulatory funding requirements. 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.

In the three months ended March 31, 2016, the Company repurchased $1,156 million of outstanding shares. Under the Company’s previously reported $5 billion share repurchase program, $1.0 billion remained

27

available as of March 31, 2016 for additional share repurchases. Honeywell presently expects to repurchase outstanding shares from time to time to offset the dilutive impact over the long-term of employee stock based compensation plans, including future option exercises, restricted unit vesting and matching contributions under our savings plans. The amount and timing of future repurchases may vary depending on market conditions and the level of operating, financing and other investing activities.

See Note 3 Acquisitions and Note 8 Long-term Debt and Credit Agreements of Notes to Financial Statements for additional discussion of items impacting our liquidity.

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 13 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, 2016 should be read in conjunction with the financial statements for the year ended December 31, 2015 contained in our 2015 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 2015 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

For a discussion of the Company’s quantitative and qualitative disclosures about market risks, see Item 7A. Quantitative and Qualitative Disclosures About Market Risks, in our 2015 Annual Report on Form 10-K. As of March 31, 2016, 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.

28

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 Note 13 Commitments and Contingencies of Notes to Financial Statements for a discussion of environmental, asbestos and other litigation matters.

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

None

Item 2. Changes in Securities and Use of Proceeds

Honeywell purchased 11,156,747 shares of its common stock, par value $1 per share, in the quarter ended March 31, 2016. The following table summarizes Honeywell’s purchase of its common stock for the quarter ended March 31, 2016:

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)
January 2016	1,402,596	$  96.04	1,402,596	$2,057
February 2016	8,754,151	$104.96	8,754,151	$1,138
March 2016	1,000,000	$102.52	1,000,000	$1,036

Item 6. Exhibits

(a) See the Exhibit Index on page 31 of this Quarterly Report on Form 10-Q.

29

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 22, 2016	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)

30

EXHIBIT INDEX

Exhibit No.	Description
10.1*	Letter Agreement dated February 24, 2012 between Honeywell and Darius Adamczyk (filed herewith)
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 5, Earnings Per Share, of Notes to Financial Statements.

*The Exhibits identified above with an asterisk (*) are management contracts or compensatory plans or arrangements.

31

EX-10.1

Exhibit 10.1

 

David M. Cote	Honeywell	973 455-6768
Chairman and	P.O. Box 3000	973 455-4002 Fax
Chief Executive Officer	Morristown, NJ 07962-2496	dave.cote@honeywell.com

February 24, 2012

Darius Adamczyk

11729 Egrets Point Drive

Charlotte, NC 28278

Dear Darius:

I am pleased to confirm your promotion to President of Honeywell Process Solutions (Band 6), located in either Bracknell, U.K. or Houston Texas, reporting to Roger Fradin. Your promotion will be effective on the date (which date will be within the next ninety (90) days) mutually agreed upon between you and Roger, in writing (the “Effective Date”).

COMPENSATION

Base Salary: As of the Effective Date, your annual base salary will be increased to $525,000.00. Base salary reviews occur annually and any adjustments are generally at the end of the first quarter of the calendar year. Adjustments are based on your performance and other relevant factors. You will next be eligible for a merit increase in March 2013.

Annual Incentive Compensation: As of the Effective Date, your target incentive compensation opportunity will be increased to 60% of your annual cash base salary earnings during the year. Incentive compensation awards are paid in the first quarter of the following year. For 2012, your incentive compensation shall be pro-rated to reflect the portion of the year that your incentive target was 60% versus 50%.

Long Term Incentive Awards: You will continue to be eligible for annual long-term incentive awards consisting of stock options, restricted stock units, or cash awards, or some combination thereof, as determined by the Company in its discretion. The actual grant sizes, if any, will be determined by your performance and future career potential with Honeywell. The terms of all long-term incentive awards are governed by the terms of the applicable stock plan and the relevant award agreements.

OTHER EXECUTIVE BENEFITS

You will continue to be entitled to the following Executive Benefits:

• Vacation: You will be eligible for four (4) weeks’ vacation.

• Excess Liability Insurance: Honeywell will pay the annual premium for an Excess Liability Insurance policy that provides $5,000,000 of coverage per occurrence.

• Executive Severance: You will be covered under the Severance Pay Plan for Designated Employees of Honeywell International Inc. (Career Band 6) (the “Severance Plan”). Under the current terms of the Severance Plan, Honeywell will provide you with 12 months of base salary continuation if your employment is involuntary terminated (other than for “Cause,” as defined under the Severance Plan). You will be required to execute a release of claims in favor of Honeywell and its affiliates, and you may be required to agree to certain non-solicitation, non-disclosure and non-competition covenants, as a condition of receiving executive severance benefits.

• Flexible Perquisite Allowance: Honeywell provides a $25,000 Flexible Perquisite Allowance that is paid in installments at the beginning of each quarter.

Darius Adamczyk

February 24, 2012

Page 2

SPECIAL CONSIDERATION

You shall also be entitled to the following special long term incentive grants. However, because all equity grants made in the first quarter of 2012 are subject to the review and approval of the Management Development and Compensation Committee of the Board of Directors (“MDCC”) at a meeting currently scheduled for February 29, 2012, these terms and conditions shall not be deemed final until the MDCC approves them on such date. Moreover, if you have not accepted this offer by February 28, 2012, neither the stock option nor the restricted unit grants detailed below shall be made unless, or until, the MDCC approves such grants at its next regularly scheduled meeting, in which case that approval date, rather than February 29, 2012, shall be the grant date for all purposes.

1. Restricted Units. You shall receive a grant of one hundred thousand (100,000) restricted units (“Special Grant RUs”). These Special Grant RUs shall be in lieu of your annual 2012 restricted unit grant and shall vest in one third increments on the third, fifth and seventh anniversaries of their grant date.

2. Stock Options. You shall receive a grant of one hundred thousand (100,000) stock options (“Special Option Grant”). This Special Option Grant shall be in lieu of your annual 2012 stock option grant. Options granted under the Special Option Grant shall vest ratably (25% per year) on the first, second, third and fourth anniversaries of their grant date.

3. Growth Plan Units. You shall receive seven thousand (7,000) growth plan units (“GPUs”) for the 2012-2013 performance cycle. This GPU grant will be in lieu of any other grant for the 2012-2013 performance cycle.

In the event you are terminated involuntarily other than for Cause (as that term is defined in the 2011 Stock Incentive Plan), you shall be entitled to vest, immediately as of your last day of employment, in the next tranche of restricted units and stock options granted under the Special Grant RUs and Special Option Grant, respectively.

RELOCATION

As part of your offer, you are eligible for the relocation program that applies to the circumstances of your particular situation (i.e., either an expatriate assignment or a domestic relocation). The details of the applicable program, including provisions related to tax gross-ups, tax equalization, clawbacks for voluntary termination, etc., will be forthcoming when the location of your position has been agreed upon.

In addition, however, an exception to policy has been granted should you experience a loss on sale of your primary residence based on current market conditions. This loss on sale will be allocated 100% to Honeywell (rather than the $20,000.00 standard policy amount). Should you elect to leave Honeywell prior to the first/second anniversary of the Effective Date, you will be required to reimburse Honeywell 100%/70% of the actual amount reimbursed hereunder, including any tax gross-ups.

PENSION PROVISION

As of the Effective Date, you will become eligible to participate in the Honeywell Retirement Earnings Plan (“REP”), which provides a benefit, expressed as an immediate lump sum, equal to 6% of final average pay times years of service. You can consult the REP’s Summary Plan Description for further details.

Darius Adamczyk

February 24, 2012

Page 3

In addition, you shall be eligible for a supplemental benefit (“SERP”) in an amount equal to the benefit to which you would have been entitled (A)(i) had you commenced participation in the REP as of July 2, 2008, and (ii) if the IRS limitations on benefits and compensation did not apply, offset by (B) your actual earned REP benefit.

INTELLECTUAL PROPERTY AGREEMENTS

As a condition of the employment offer described herein, you are required to execute the enclosed copies of (i) Honeywell’s “Employee Agreement Relating to Trade Secrets, Proprietary and Confidential Information” (the “IP Agreement”), and (ii) Honeywell’s Noncompete Agreement for Senior Executives, along with the Addendum thereto (“Noncompete Agreement”).

OFFER ACCEPTANCE

Please indicate your acceptance of this offer by signing this letter in the space provided and returning it, along with an executed copy of the IP Agreement and Noncompete Agreement, to Mark James.

Honeywell has a long and distinguished history. But, more importantly, we are a company with a terrific future and a great place to work. Our performance culture drives growth for us and competitive advantage for our customers. We hire the best people; give them every possible opportunity to learn, grow, and develop; and reward them for their contributions. We offer career paths that span product lines, job types, businesses, and countries.

Darius, I very much look forward to continue working with you as we grow the business.

If you have any questions or need any further information about our offer, please contact me directly.

Congratulations,

 

Dave Cote

Chairman and CEO

Honeywell International Inc.

Read and Accepted:

/s/ Darius Adamczyk	Feb. 27, 2012
Signature	Date

All businesses experience changing conditions. Accordingly, we reserve the right to change work assignments, reporting relationships and staffing levels to meet business needs, and your employment with Honeywell will be on an “at will” basis. This means that there is no guarantee of employment for any specific period, and either you or Honeywell may terminate your employment at any time.

EX-12

EXHIBIT 12

HONEYWELL INTERNATIONAL INC.
STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Three Months Ended
March 31, 2016
(Dollars in millions)

Determination of Earnings:
Income before taxes	$	1,628
Add (Deduct):
Amortization of capitalized interest		5
Fixed charges		97
Equity income, net of distributions		(6	)
Total earnings, as defined	$	1,724
Fixed Charges:
Rents(a)	$	12
Interest and other financial charges		85
		97
Capitalized interest		7
Total fixed charges	$	104
Ratio of Earnings to Fixed Charges		16.58

(a) Denotes the equivalent of an appropriate portion of rentals representative of the interest factor on all rentals other than for capitalized leases.

32

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 22, 2016	By:	/s/ David M. Cote
		David M. Cote
		Chief Executive Officer

33

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 22, 2016	By:	/s/ Thomas A. Szlosek
		Thomas A. Szlosek
		Chief Financial Officer

34

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 ended March 31, 2016 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 22, 2016	By:	/s/ David M. Cote
		David M. Cote
		Chief Executive Officer

35

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 ended March 31, 2016 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 22, 2016	By:	/s/ Thomas A. Szlosek
		Thomas A. Szlosek
		Chief Financial Officer

36

XML

Document and Entity Information	3 Months Ended
	Mar. 31, 2016 shares
Document And Entity Information [Abstract]
Document type	10-Q
Document period end date	Mar. 31, 2016
Document Fiscal Year Focus	2016
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	762,115,463

XML

CONSOLIDATED STATEMENT OF OPERATIONS - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Consolidated Statement of Operations
Product sales	$ 7,619	$ 7,364
Service sales	1,903	1,849
Net Sales	9,522	9,213
Costs, expenses and other
Cost of products sold	5,349	5,213
Cost of services sold	1,198	1,149
Cost of products and services sold	6,547	6,362
Selling, general and administrative expenses	1,280	1,230
Other (income) expense	(18)	(20)
Interest and other financial charges	85	77
Cost, operating and non-operating expenses	7,894	7,649
Income before taxes	1,628	1,564
Tax expense	432	418
Net income	1,196	1,146
Less: Net income attributable to the noncontrolling interest	10	30
Net income attributable to Honeywell	$ 1,186	$ 1,116
Earnings per share of common stock - basic	$ 1.54	$ 1.42
Earnings per share of common stock - assuming dilution	1.53	1.41
Cash dividends per share of common stock	$ 0.595	$ 0.5175

XML

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Statement Of Income And Comprehensive Income [Abstract]
Net income	$ 1,196	$ 1,146
Other Comprehensive Income (Loss), Net Of Tax [Abstract]
Foreign exchange translation adjustment	122	(721)
Actuarial losses (gains) recognized	3	(2)
Prior service (credits) costs recognized	(19)	5
Pension and other postretirement benefits adjustments	(16)	3
Effective portion of cash flow hedges recognized in other comprehensive income (loss)	(32)	105
Less: Reclassification adjustment for gains (losses) included in net income	(6)	27
Changes in fair value of effective cash flow hedges	(26)	78
Other comprehensive income (loss), net of tax	80	(640)
Comprehensive income	1,276	506
Less: Comprehensive income attributable to the noncontrolling interest	10	30
Comprehensive income attributable to Honeywell	$ 1,266	$ 476

XML

CONSOLIDATED BALANCE SHEET - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 4,473	$ 5,455
Accounts, notes and other receivables	8,397	8,075
Inventories	4,743	4,420
Investments and other current assets	1,919	2,103
Total current assets	19,532	20,053
Investments and long-term receivables	592	517
Property, plant and equipment - net	6,027	5,789
Goodwill	16,708	15,895
Other intangible assets - net	4,706	4,577
Insurance recoveries for asbestos related liabilities	431	426
Deferred income taxes	318	283
Other assets	2,051	1,776
Total assets	50,365	49,316
Current liabilities:
Accounts payable	5,511	5,580
Commercial paper and other short-term borrowings	3,631	5,937
Current maturities of long-term debt	626	577
Accrued liabilities	5,891	6,277
Total current liabilities	15,659	18,371
Long-term debt	9,700	5,554
Deferred income taxes	626	558
Postretirement benefit obligations other than pensions	506	526
Asbestos related liabilities	1,252	1,251
Other liabilities	4,247	4,348
Redeemable noncontrolling interest	3	290
SHAREOWNERS' EQUITY
Capital - common stock issued	958	958
Capital - additional paid in capital	5,539	5,377
Common stock held in treasury, at cost	(12,719)	(11,664)
Accumulated other comprehensive loss	(2,455)	(2,535)
Retained earnings	26,874	26,147
Total Honeywell shareowners' equity	18,197	18,283
Noncontrolling interest	175	135
Total shareowners' equity	18,372	18,418
Total liabilities, redeemable noncontrolling interest, and shareowners' equity	$ 50,365	$ 49,316

XML

CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash flows from operating activities:
Net income	$ 1,196,000,000	$ 1,146,000,000
Less: Net income attributable to the noncontrolling interest	10,000,000	30,000,000
Net income attributable to Honeywell	1,186,000,000	1,116,000,000
Adjustments to reconcile net income attributable to Honeywell to net cash provided by operating activities:
Depreciation	179,000,000	163,000,000
Amortization	74,000,000	53,000,000
Repositioning and other charges	125,000,000	131,000,000
Net payments for repositioning and other charges	(134,000,000)	(100,000,000)
Pension and other postretirement income	(159,000,000)	(91,000,000)
Pension and other postretirement benefit payments	(38,000,000)	(9,000,000)
Stock compensation expense	53,000,000	52,000,000
Deferred income taxes	48,000,000	93,000,000
Excess tax benefits from share based payment arrangements	(30,000,000)	(47,000,000)
Other	86,000,000	(102,000,000)
Changes in assets and liabilities, net of the effects of acquisitions and divestitures:
Accounts, notes and other receivables	(203,000,000)	(170,000,000)
Inventories	(241,000,000)	(86,000,000)
Other current assets	(59,000,000)	58,000,000
Accounts payable	(113,000,000)	(112,000,000)
Accrued liabilities	(517,000,000)	(528,000,000)
Net cash provided by operating activities	257,000,000	421,000,000
Cash flows from investing activities:
Expenditures for property, plant and equipment	(194,000,000)	(165,000,000)
Proceeds from disposals of property, plant and equipment	1,000,000	1,000,000
Increase in investments	(836,000,000)	(1,501,000,000)
Decrease in investments	880,000,000	1,106,000,000
Cash paid for acquisitions, net of cash acquired	(1,056,000,000)	(185,000,000)
Proceeds from sales of businesses, net of fees paid	0	2,000,000
Other	9,000,000	(178,000,000)
Net cash used for investing activities	(1,196,000,000)	(920,000,000)
Cash flows from financing activities:
Net (decrease) increase in commercial paper and other short-term borrowings	(2,450,000,000)	1,052,000,000
Proceeds from issuance of common stock	105,000,000	78,000,000
Proceeds from issuance of long-term debt	4,448,000,000	3,000,000
Payments of long-term debt	(419,000,000)	(35,000,000)
Excess tax benefits from share based payment arrangements	30,000,000	47,000,000
Repurchases of common stock	(1,156,000,000)	(363,000,000)
Cash dividends paid	(499,000,000)	(415,000,000)
Payments to purchase the noncontrolling interest	(238,000,000)	0
Other	18,000,000	0
Net cash (used for) provided by financing activities	(161,000,000)	367,000,000
Effect of foreign exchange rate changes on cash and cash equivalents	118,000,000	(252,000,000)
Net decrease in cash and cash equivalents	(982,000,000)	(384,000,000)
Cash and cash equivalents at beginning of period	5,455,000,000	6,959,000,000
Cash and cash equivalents at end of period	$ 4,473,000,000	$ 6,575,000,000

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BASIS OF PRESENTATION

3 Months Ended

Mar. 31, 2016

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, 2016, the results of operations for the quarter and three months endedMarch 31, 2016 and 2015and the cash flows for the three months endedMarch 31, 2016and 2015. The results of operations for the three months endedMarch 31, 2016should not necessarily be taken as indicative of the results of operations expected for the entire year.

We report our quarterly financial information using a calendar convention; 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. In the event that differences in actual closing dates are material to year-over-year comparisons of quarterly or year-to-date results, we will provide appropriate disclosures. Our actual closing dates for the three months endedMarch 31, 2016 and 2015 were April 2, 2016 and March 28, 2015. We estimate that our sales in the first quarter of 2016 compared to the first quarter of 2015 include an approximate 3 percent benefit from additional reporting days in the current year period resulting from our normal quarterly closing procedures.

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RECENT ACCOUNTING PRONOUNCEMENTS

3 Months Ended

Mar. 31, 2016

New Accounting Pronouncements And Changes In Accounting Principles [Abstract]

Recent Accounting Pronouncements [Text Block]

Note2. Recent Accounting Pronouncements

Accounting pronouncements 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 effective date was deferred for one year to the interim and annual periods beginning on or after December 15, 2017. Early adoption is permitted as of the original effective date – interim and annual periods beginning on or after December 15, 2016. 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.

In February 2016, the FASB issued guidance on accounting for leases which requires lessees to recognize most leases on their balance sheets for the rights and obligations created by those leases. The guidance requires enhanced disclosures regarding the amount, timing, and uncertainty of cash flows arising from leases and will be effective for interim and annual periods beginning after December 15, 2018. Early adoption is permitted. The guidance requires the use of a modified retrospective approach. We are evaluating the impact of the guidance on our consolidated financial position, results of operations and related disclosures.

In March 2016, the FASB issued amended guidance related to employee share-based payment accounting.  The guidance requires all income tax effects of awards to be recognized in the income statement when the awards vest or are settled and will be applied on a prospective basis. The guidance also requires presentation of excess tax benefits as an operating activity on the statement of cash flows rather than as a financing activity, and can be applied retrospectively or prospectively. The guidance increases the amount companies can withhold to cover income taxes on awards without triggering liability classification for shares used to satisfy statutory income tax withholding obligations and requires application of a modified retrospective transition method. The amendedguidance will be effective for interim and annual periods beginning after December 15, 2016; early adoption is permitted if all provisions are adopted in the same period. We are evaluating the impact of the amended guidance on our consolidated financial position, results of operations and related disclosures.

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ACQUISITIONS

3 Months Ended

Mar. 31, 2016

Business Combinations [Abstract]

Business Combination Disclosure [Text Block]

Note 3. Acquisitions

During the first quarter of 2016, we acquired businesses for an aggregate cost (net of cash acquired and debt assumed) of $1,053 million.

On April 1, 2016, the Company completed the acquisition of Xtralis International Holdings Limited (Xtralis), a leading global provider of aspiration smoke detection and perimeter security technologies, for an aggregate cost, net of cash acquired and debt assumed, of approximately $515 million. Xtralis is part ofAutomation and Control Solutions (ACS).

In February 2016, the Company acquired 100 percent of the issued and outstanding shares of COM DEV International (COM DEV), a leading satellite and space components provider, for an aggregate value, net of cash acquired and debt assumed, of approximately $347 million. COM DEV is part of Aerospace and had reported 2015 revenues of approximately $159 million.

The assets and liabilities of Xtralis and COM DEV have been included in the Consolidated Balance Sheet as of March 31, 2016, including $331 million and $177 million allocated to goodwill, which is non-deductible for tax purposes.

In December 2015, the Company acquired theElster Division of Melrose Industries plc (Elster) for an aggregate value, net of cash acquired, of approximately $4,899 million. Elster is part of ACS and PMT. The following table summarizes the updated estimate of fair values of the Elsterassets and liabilities acquired as of the acquisition date:

Current assets	$	533
Intangible assets		2,255
Other noncurrent assets		209
Current liabilities		(426)
Noncurrent liabilities		(929)
Net assets acquired		1,642
Noncontrolling interest		(3)
Goodwill		3,260
Purchase Price	$	4,899

The purchase accounting for Xtralis, COM DEV and Elster is subject to final adjustment, primarily for the valuation of intangible assets, amounts allocated to goodwill, tax balances and certain pre-acquisition contingencies.

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REPOSITIONING AND OTHER CHARGES

3 Months Ended

Mar. 31, 2016

Repositioning And Other Charges [Abstract]

Repositioning and Other Charges

Note 4. Repositioning and Other Charges

	A summary of repositioning and other charges follows:
			Three Months Ended
			March 31,
			2016		2015
Severance		$	28	$	37
Asset impairments			7		8
Exit costs			2		1
Adjustments			(17)		(7)
Total net repositioning charge			20		39
Asbestos related litigation charges,
net of insurance			53		46
Probable and reasonably estimable
environmental liabilities			52		46
Total net repositioning and other charges		$	125	$	131

The following table summarizes the pretax distribution of total net repositioning and other charges by income statement classification:
		Three Months Ended
		March 31,
		2016		2015
Cost of products and services sold	$	105	$	122
Selling, general and administrative expenses		20		9
	$	125	$	131

The following table summarizes the pretax impact of total net repositioning and other charges by segment:
		Three Months Ended
		March 31,
		2016		2015
Aerospace	$	49	$	48
Automation and Control Solutions		7		24
Performance Materials and Technologies		9		7
Corporate		60		52
	$	125	$	131

In the quarter ended March 31, 2016, we recognized repositioning charges totaling $37 million including severance costs of $28 million related to workforce reductions of293manufacturing and administrative positions mainly in ACS and Performance Materials and Technologies (PMT). The workforce reductions were primarily related to achieving acquisition-related synergies and outsourcing of certain packaging operations. Also, $17 million of previously established accruals, primarily for severance, in ACS and PMT, were returned to income primarily as a result of higher attrition than anticipated in prior severance programs resulting in lower required severance payments.

In the quarter ended March 31, 2015, we recognized repositioning charges totaling $46 million including severance costs of $37 million related to workforce reductions of3,040manufacturing 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 ACS.

The following table summarizes the status of our total repositioning reserves:
		Severance		Asset		Exit
		Costs		Impairments		Costs		Total
December 31, 2015	$	329	$	-	$	21	$	350
Charges		28		7		2		37
Usage - cash		(53)		-		(1)		(54)
Usage - noncash		-		(7)		-		(7)
Foreign currency translation		6		-		-		6
Adjustments		(16)		-		(1)		(17)
March 31, 2016	$	294	$	-	$	21	$	315

Certain repositioning projects in 2016 and 2015 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 are not expected to be significant.

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EARNINGS (LOSS) PER SHARE

3 Months Ended

Mar. 31, 2016

Earnings Per Share [Abstract]

Earnings Per Share

Note5. Earnings Per Share

		Three Months Ended
		March 31,
Basic		2016		2015
Net income attributable to Honeywell	$	1,186	$	1,116
Weighted average shares outstanding		767.9		783.8
Earnings per share of common stock	$	1.54	$	1.42

		Three Months Ended
		March 31,
Assuming Dilution		2016		2015
Net income attributable to Honeywell	$	1,186	$	1,116
Average Shares
Weighted average shares outstanding		767.9		783.8
Dilutive securities issuable - stock plans		9.0		10.2
Total weighted average shares outstanding		776.9		794.0
Earnings per share of common stock	$	1.53	$	1.41

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, 2016and 2015, the weighted average number of stock options excluded from the computations was 8.4 million and7.8 million. These stock options were outstanding at the end of each of the respective periods.

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ACCOUNTS, NOTES AND OTHER RECEIVABLES

3 Months Ended

Mar. 31, 2016

Accounts, Notes And Other Receivables [Abstract]

Accounts, Notes and Other Receivables

Note 6. Accounts, Notes and Other Receivables

		March 31,		December 31,
		2016		2015
Trade	$	8,238	$	7,901
Other		450		436
		8,688		8,337
Less: Allowance for doubtful accounts		(291)		(262)
	$	8,397	$	8,075

Trade receivables include $1,654 and $1,590 million of unbilled balances under long-term contracts as of March 31, 2016 and December 31, 2015. These amounts are billed in accordance with the terms of customer contracts to which they relate.

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INVENTORIES

3 Months Ended

Mar. 31, 2016

Inventories [Abstract]

Inventories

Note 7. Inventories

		March 31,		December 31,
		2016		2015
Raw materials	$	1,195	$	1,120
Work in process		871		826
Finished products		2,768		2,590
		4,834		4,536
Reduction to LIFO cost basis		(91)		(116)
	$	4,743	$	4,420

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LONG-TERM DEBT AND CREDIT AGREEMENTS

3 Months Ended

Mar. 31, 2016

Long Term Debt And Credit Agreements [Abstract]

Long-term Debt and Credit Agreements

Note 8. Long-term Debt and Credit Agreements

		March 31,		December 31,
		2016		2015
5.40% notes due 2016	$	-	$	400
5.30% notes due 2017		400		400
Floating rate Euro notes due 2018		1,134		-
5.30% notes due 2018		900		900
5.00% notes due 2019		900		900
0.65% Euro notes due 2020		1,134		-
4.25% notes due 2021		800		800
1.30% Euro notes due 2023		1,416		-
3.35% notes due 2023		300		300
2.25% Euro notes due 2028		850		-
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 and debt issuance costs),
0.6%-9.5% maturing at various dates through 2023		445		384
		10,326		6,131
Less: current portion		(626)		(577)
	$	9,700	$	5,554

In February 2016, the Company issued €1,000 million Floating Rate Senior Notes due 2018, €1,000 million 0.65% Senior Notes due 2020, €1,250 million 1.30% Senior Notes due 2023 and €750 million 2.25% Senior Notes due 2028 (collectively, the “Notes”). The Notes are senior unsecured and unsubordinated obligations of Honeywell and rank equally with all of Honeywell’s existing and future senior unsecured debt and senior to all of Honeywell’s subordinated debt. The offering resulted in gross proceeds of $4,438million, offset by $17 million in discount and closing costs related to the offering.

We have entered into a $3 billion 364-Day Credit Agreement (364-Day Credit Agreement) with a syndicate of banks. The 364-Day Credit Agreement is maintained for general corporate purposes.

We have also entered into a $4 billion Amended and Restated Five Year Credit Agreement (Credit Agreement) with a syndicate of banks. The Credit Agreement is maintained for general corporate purposes. Commitments under the Credit Agreement can be increased pursuant to the terms of the Credit Agreement to an aggregate amount not to exceed $4.5 billion.

There have been no borrowings under the 364-Day Credit Agreement or the Credit Agreement. 

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FINANCIAL INSTRUMENTS AND FAIR VALUE MEASURES

3 Months Ended

Mar. 31, 2016

Financial Instruments And Fair Value Measures [Abstract]

Financial Instruments and Fair Value Measures

Note 9. 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 2015 Annual Report on Form 10-K.

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,
		2016		2015
Assets:
Foreign currency exchange contracts	$	22	$	28
Available for sale investments		1,352		1,501
Interest rate swap agreements		121		92
Liabilities:
Foreign currency exchange contracts	$	62	$	17

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. The Companyholds investments incertificates of deposits,time deposits and commercial paper that are designated as available for sale and are valued using published prices based on observable market data. These investments are classified within level 2.The Companyalso holds available for sale investments in U.S. government and corporate debt securities valued utilizing published prices based onquoted market pricing, which are classified within level 1.

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, 2016				December 31, 2015
	Carrying		Fair		Carrying		Fair
	Value		Value		Value		Value
Assets
Long-term receivables	$	299	$	294	$	292	$	283
Liabilities
Long-term debt and related current maturities	$	10,326	$	10,976	$	6,131	$	6,721

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. The fair value of these receivables is considered level 2. The Company determined the fair value of the long-term debt and related current maturities utilizing transactions in the listed markets for identical or similar liabilities. The fair value of the long-term debt and related current maturities is also considered level 2.

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, 2016 and 2015, we recognized $29 million and $15 million of gains in the Consolidated Statement of Operations 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 $32 million and $162 million of expense in Other (income) expense for the three months endedMarch 31, 2016 and 2015.

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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

3 Months Ended

Mar. 31, 2016

Accumulated Other Comprehensive Income Loss [Abstract]

Accumulated Other Comprehensive Income (Loss)

Note 10. Accumulated Other Comprehensive Income (Loss)

Changes in Accumulated Other Comprehensive Income by Component

					Pension		Changes in
			Foreign		and Other		Fair Value
			Exchange		Postretirement		of Effective
			Translation		Benefits		Cash Flow
			Adjustment		Adjustments		Hedges		Total
Balance at December 31, 2015		$	(1,892)	$	(644)	$	1	$	(2,535)
	Other comprehensive income
	(loss) before reclassifications		122		-		(32)		90
	Amounts reclassified from
	accumulated other
	comprehensive income		-		(16)		6		(10)
	Net current period other
	comprehensive income (loss)		122		(16)		(26)		80
Balance at March 31, 2016		$	(1,770)	$	(660)	$	(25)	$	(2,455)
					Pension		Changes in
			Foreign		and Other		Fair Value
			Exchange		Postretirement		of Effective
			Translation		Benefits		Cash Flow
			Adjustment		Adjustments		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)

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SEGMENT FINANCIAL DATA

3 Months Ended

Mar. 31, 2016

Segment Financial Data [Abstract]

Segment Financial Data

Note11. Segment Financial Data

We globally manage our business operations through three reportable operating segments. Segment information is consistent with how management reviews the businesses, makes investing and resource allocation decisions and assesses operating performance.

Honeywell’s senior management evaluates segment performance based on segment profit. Segment profit is measured as business unit income (loss) before taxes excluding general corporate unallocated expense, other income (expense), interest and other financial charges, pension and other postretirement income (expense), stock compensation expense, repositioning and other charges.

		Three Months Ended
		March 31,
		2016		2015
Net Sales
Aerospace
Products	$	2,490	$	2,463
Services		1,215		1,144
Total		3,705		3,607
Automation and Control Solutions
Products		3,386		2,979
Services		291		285
Total		3,677		3,264
Performance Materials and Technologies
Products		1,743		1,922
Services		397		420
Total		2,140		2,342
	$	9,522	$	9,213
Segment Profit
Aerospace	$	798	$	752
Automation and Control Solutions		530		516
Performance Materials and Technologies		441		503
Corporate		(49)		(50)
Total segment profit		1,720		1,721
Other income(a)		12		12
Interest and other financial charges		(85)		(77)
Stock compensation expense(b)		(53)		(52)
Pension ongoing income(b)		150		100
Other postretirement income (expense)(b)		9		(9)
Repositioning and other charges (b)		(125)		(131)
Income before taxes	$	1,628	$	1,564
(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.

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PENSION BENEFITS

3 Months Ended

Mar. 31, 2016

Pension Disclosure Paragraph Details [Abstract]

Pension Benefits

Note12. Pension Benefits

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

		Three Months Ended
		U.S. Plans				Non-U.S. Plans
		March 31,				March 31,
		2016		2015		2016		2015
Service cost	$	48	$	57	$	12	$	13
Interest cost		150		178		47		44
Expected return on plan assets		(306)		(320)		(99)		(90)
Amortization of prior service (credit) cost		(11)		6		(1)		-
	$	(119)	$	(79)	$	(41)	$	(33)

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COMMITMENTS AND CONTINGENCIES

3 Months Ended

Mar. 31, 2016

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 13. Commitments and Contingencies

Environmental Matters

Our environmental matters are described in Note 19, Commitments and Contingencies, of Notes to Financial Statements in our 2015 Annual Report on Form 10-K.

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

December 31, 2015	$	518
Accruals for environmental matters deemed
probable and reasonably estimable		52
Environmental liability payments		(31)
March 31, 2016	$	539

Environmental liabilities are included in the following balance sheet accounts:
			March 31,		December 31,
			2016		2015
	Accrued liabilities	$	253	$	253
	Other liabilities		286		265
		$	539	$	518

We do not currently possess sufficient information to reasonably estimate the amounts of environmental liabilities to be recorded upon future completion of studies, litigation or settlements, and neither the timing nor the amount of the ultimate costs associated with environmental matters can be determined although they could be material to our consolidated results of operations and operating cash flows in the periods recognized or paid. However, considering our past experience and existing reserves, we do not expect that environmental matters will have a material adverse effect on our consolidated financial position.

Onondaga Lake, Syracuse, NY—We are implementing a combined dredging/capping remedy of Onondaga Lake pursuant to a consent decree approved by the United States District Court for the Northern District of New York in January 2007. We have accrued for our estimated cost of remediating OnondagaLake based on currently available information and analysis performed by our engineering consultants. Honeywell is also conducting remedial investigations and activities at other sites in Syracuse. We have recorded reserves for these investigations and activities where appropriate, consistent with the accounting policy described above.

Honeywell has entered into a cooperative agreement with potential natural resource trustees to assess alleged natural resource damages relating to this site. It is not possible to predict the outcome or duration of this assessment, or the amounts of, or responsibility for, any damages.

Asbestos Matters

Honeywell is a defendant in asbestos related personal injury actions related to two predecessor companies:

• North American Refractories Company (NARCO), which was sold in 1986, produced refractory products (bricks and cement used in high temperature applications). Claimants consist largely of individuals who allege exposure to NARCO asbestos-containing refractory products in an occupational setting.
• Bendix Friction Materials (Bendix) business, which was sold in 2014, manufactured automotive brake parts that contained chrysotile asbestos in an encapsulated form. Claimants consist largely of individuals who allege exposure to asbestos from brakes from either performing or being in the vicinity of individuals who performed brake replacements.

The following tables summarize information concerning NARCO and Bendix asbestos related balances:

Asbestos Related Liabilities
		Bendix		NARCO		Total
December 31, 2015	$	622	$	921	$	1,543
Accrual for update to estimated liability		52		1		53
Asbestos related liability payments		(50)		(2)		(52)
March 31, 2016	$	624	$	920	$	1,544

Insurance Recoveries for Asbestos Related Liabilities
		Bendix		NARCO		Total
December 31, 2015	$	124	$	325	$	449
Probable insurance recoveries related to
estimated liability		8		-		8
Insurance receivables settlements		-		-		-
Insurance receipts for asbestos related liabilities		(1)		(2)		(3)
March 31, 2016	$	131	$	323	$	454

NARCO and Bendix asbestos related balances are included in the following balance sheet accounts:
		March 31,		December 31,
		2016		2015
Other current assets	$	23	$	23
Insurance recoveries for asbestos related liabilities		431		426
	$	454	$	449
Accrued liabilities	$	292	$	292
Asbestos related liabilities		1,252		1,251
	$	1,544	$	1,543

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 asbestos-containing 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 2016 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. In 2015, Honeywell filed suit against the NARCO Trust in Bankruptcy Court alleging breach of certain provisions of the Trust Agreement and Trust Distribution Procedures. The parties agreed to dismiss the proceeding without prejudice pursuant to an 18 month Standstill Agreement. Claims processing will continue during this period subject to a defined dispute resolution process. As of March 31, 2016, Honeywell has not made any payments to the NARCO Trust for Annual Contribution Claims.

Honeywell is also responsible for payments due to claimants pursuant to settlement agreements reached during the pendency of the NARCO bankruptcy proceedings that provide for the right to submit claims to the NARCO Trust subject to qualification under the terms of the settlement agreements and Trust Distribution Procedures criteria (Pre-established Unliquidated Claims), which amounts are estimated at $150 million and are expected to be paid during the initial years of trust operations ($5 million of which has been paid since the effective date of the NARCO Trust). Such payments are not subject to the annual cap described above.

Our consolidated financial statements reflect an estimated liability for pre-established unliquidated claims ($145 million), unsettled claims pending as of the time NARCO filed for bankruptcy protection ($32 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		2016	2015	2014
Claims Unresolved at the beginning of period		7,779	9,267	12,302
Claims Filed		733	2,862	3,694
Claims Resolved (1)		(762)	(4,350)	(6,729)
Claims Unresolved at the end of period		7,750	7,779	9,267
(1) Claims resolved in 2014 include 2,110 cancer claims which were determined to have no value. Also, claims resolved in 2015 and 2014 include significantly aged (i.e., pending for more than six years) claims totaling 153 and 1,266.

Disease Distribution of Unresolved Claims	March 31,	December 31,
	2016	2015	2014
Mesothelioma and Other Cancer Claims	3,678	3,772	3,933
Nonmalignant Claims	4,072	4,007	5,334
Total Claims	7,750	7,779	9,267

	Honeywell has experienced average resolution values per claim excluding legal costs as follows:
			Years Ended December 31,
			2015		2014		2013		2012		2011
			(in whole dollars)
Malignant claims		$	44,000	$	53,500	$	51,000	$	49,000	$	48,000
Nonmalignant claims		$	100	$	120	$	850	$	1,400	$	1,000

It is not possible to predict whether resolution values for Bendix-related asbestos claims will increase, decrease or stabilize in the future.

Our consolidated financial statements reflect an estimated liability for resolution of pending (claims actually filed as of the financial statement date) and future Bendix-related asbestos claims. We have valued Bendix pending and future claims using average resolution values for the previous five years. We update the resolution values used to estimate the cost of Bendix pending and future claims during the fourth quarter each year.

The liability for future claims represents the estimated value of future asbestos related bodily injury claims expected to be asserted against Bendix over the next five years. Such estimated cost of future Bendix-related asbestos claims is based on historic claims filing experience and dismissal rates, disease classifications, and resolution values in the tort system for the previous five years. In light of the uncertainties inherent in making long-term projections, as well as certain factors unique to friction product asbestos claims, we do not believe that we have a reasonable basis for estimating asbestos claims beyond the next five years. The methodology used to estimate the liability for future claims is similar to that used to estimate the liability for future NARCO-related asbestos claims.

Our insurance receivable corresponding to the liability for settlement of pending and future Bendix asbestos claims reflects coverage which is provided by a large number of insurance policies written by dozens of insurance companies in both the domestic insurance market and the London excess market. Based on our ongoing analysis of the probable insurance recovery, insurance receivables are recorded in the financial statements simultaneous with the recording of the estimated liability for the underlying asbestos claims. This determination is based on our analysis of the underlying insurance policies, our historical experience with our insurers, our ongoing review of the solvency of our insurers, judicial determinations relevant to our insurance programs, and our consideration of the impacts of any settlements reached with our insurers.

Honeywell believes it has sufficient insurance coverage and reserves to cover all pending Bendix-related asbestos claims and Bendix-related asbestos claims estimated to be filed within the next five years. Although it is impossible to predict the outcome of either pending or future Bendix-related asbestos claims, we do not believe that such claims would have a material adverse effect on our consolidated financial position in light of our insurance coverage and our prior experience in resolving such claims. If the rate and types of claims filed, the average resolution value of such claims and the period of time over which claim settlements are paid (collectively, the Variable Claims Factors) do not substantially change, Honeywell would not expect future Bendix-related asbestos claims to have a material adverse effect on our results of operations or operating cash flows in any fiscal year. No assurances can be given, however, that the Variable Claims Factors will not change.

Other Matters

We are subject to a number of other lawsuits, investigations and disputes (some of which involve substantial amounts claimed) arising out of the conduct of our business, including matters relating to commercial transactions, government contracts, product liability, prior acquisitions and divestitures, employee benefit plans, intellectual property, and environmental, health and safety matters. We recognize a liability for any contingency that is probable of occurrence and reasonably estimable. We continually assess the likelihood of adverse judgments of outcomes in these matters, as well as potential ranges of possible losses (taking into consideration any insurance recoveries), based on a careful analysis of each matter with the assistance of outside legal counsel and, if applicable, other experts. Included in these other matters are the following:

Honeywell v. United Auto Workers (UAW) et. al—In July 2011, Honeywell filed an action in federal court (District of New Jersey) against the UAW and all former employees who retired under a series of Master Collective Bargaining Agreements (MCBAs) between Honeywell and the UAW seeking a declaratory judgment that certain express limitations on its obligation to contribute toward the healthcare coverage of such retirees (the CAPS) set forth in the MCBAs may be implemented, effective January 1, 2012.  The UAW and certain retiree defendants filed a mirror suit in the Eastern District of Michigan alleging that the MCBAs do not provide for CAPS on the Company’s liability for healthcare coverage.  The New Jersey action was dismissed and Honeywell subsequently answered the UAW’s complaint in Michigan and asserted counterclaims for fraudulent inducement, negligent misrepresentation and breach of implied warranty. The UAW filed a motion to dismiss these counterclaims. The court dismissed Honeywell’s fraudulent inducement and negligent misrepresentation claims, but let stand the claim for breach of implied warranty. In the second quarter of 2014, the parties agreed to stay the proceedings with respect to those retirees who retired before the initial inclusions of the CAPS in the 2003 MCBA until the Supreme Court decided the M&G Polymers USA, LLC v. Tackett case. In 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. The stay of the proceedings has been lifted and the case is again proceeding. Based on the Supreme Court’s 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 $176 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 $110 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.

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ACQUISITIONS (Tables)

3 Months Ended

Mar. 31, 2016

Business Combinations [Abstract]

Schedule Of Business Acquisitions By Acquisition [Text Block]

Current assets	$	533
Intangible assets		2,255
Other noncurrent assets		209
Current liabilities		(426)
Noncurrent liabilities		(929)
Net assets acquired		1,642
Noncontrolling interest		(3)
Goodwill		3,260
Purchase Price	$	4,899

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REPOSITIONING AND OTHER CHARGES (Tables)

3 Months Ended

Mar. 31, 2016

Repositioning And Other Charges [Abstract]

Repositioning and other charges text block

	A summary of repositioning and other charges follows:
			Three Months Ended
			March 31,
			2016		2015
Severance		$	28	$	37
Asset impairments			7		8
Exit costs			2		1
Adjustments			(17)		(7)
Total net repositioning charge			20		39
Asbestos related litigation charges,
net of insurance			53		46
Probable and reasonably estimable
environmental liabilities			52		46
Total net repositioning and other charges		$	125	$	131

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,
		2016		2015
Cost of products and services sold	$	105	$	122
Selling, general and administrative expenses		20		9
	$	125	$	131

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,
		2016		2015
Aerospace	$	49	$	48
Automation and Control Solutions		7		24
Performance Materials and Technologies		9		7
Corporate		60		52
	$	125	$	131

Total Repositioning Reserves

The following table summarizes the status of our total repositioning reserves:
		Severance		Asset		Exit
		Costs		Impairments		Costs		Total
December 31, 2015	$	329	$	-	$	21	$	350
Charges		28		7		2		37
Usage - cash		(53)		-		(1)		(54)
Usage - noncash		-		(7)		-		(7)
Foreign currency translation		6		-		-		6
Adjustments		(16)		-		(1)		(17)
March 31, 2016	$	294	$	-	$	21	$	315

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EARNINGS (LOSS) PER SHARE (Tables)

3 Months Ended

Mar. 31, 2016

Earnings Per Share [Abstract]

Earnings per share basic

		Three Months Ended
		March 31,
Basic		2016		2015
Net income attributable to Honeywell	$	1,186	$	1,116
Weighted average shares outstanding		767.9		783.8
Earnings per share of common stock	$	1.54	$	1.42

Earnings per share diluted

		Three Months Ended
		March 31,
Assuming Dilution		2016		2015
Net income attributable to Honeywell	$	1,186	$	1,116
Average Shares
Weighted average shares outstanding		767.9		783.8
Dilutive securities issuable - stock plans		9.0		10.2
Total weighted average shares outstanding		776.9		794.0
Earnings per share of common stock	$	1.53	$	1.41

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ACCOUNTS, NOTES AND OTHER RECEIVABLES (Tables)

3 Months Ended

Mar. 31, 2016

Accounts, Notes And Other Receivables [Abstract]

Schedule of trade, notes, and other receivables

		March 31,		December 31,
		2016		2015
Trade	$	8,238	$	7,901
Other		450		436
		8,688		8,337
Less: Allowance for doubtful accounts		(291)		(262)
	$	8,397	$	8,075

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INVENTORIES (Tables)

3 Months Ended

Mar. 31, 2016

Inventories [Abstract]

Inventories

		March 31,		December 31,
		2016		2015
Raw materials	$	1,195	$	1,120
Work in process		871		826
Finished products		2,768		2,590
		4,834		4,536
Reduction to LIFO cost basis		(91)		(116)
	$	4,743	$	4,420

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LONG-TERM DEBT AND CREDIT AGREEMENTS (Tables)

3 Months Ended

Mar. 31, 2016

Long Term Debt And Credit Agreements [Abstract]

Long-Term Debt and Credit Agreements

		March 31,		December 31,
		2016		2015
5.40% notes due 2016	$	-	$	400
5.30% notes due 2017		400		400
Floating rate Euro notes due 2018		1,134		-
5.30% notes due 2018		900		900
5.00% notes due 2019		900		900
0.65% Euro notes due 2020		1,134		-
4.25% notes due 2021		800		800
1.30% Euro notes due 2023		1,416		-
3.35% notes due 2023		300		300
2.25% Euro notes due 2028		850		-
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 and debt issuance costs),
0.6%-9.5% maturing at various dates through 2023		445		384
		10,326		6,131
Less: current portion		(626)		(577)
	$	9,700	$	5,554

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FINANCIAL INSTRUMENTS AND FAIR VALUE MEASURES (Tables)

3 Months Ended

Mar. 31, 2016

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,
		2016		2015
Assets:
Foreign currency exchange contracts	$	22	$	28
Available for sale investments		1,352		1,501
Interest rate swap agreements		121		92
Liabilities:
Foreign currency exchange contracts	$	62	$	17

Financial assets and liabilities that were not carried at fair value

	March 31, 2016				December 31, 2015
	Carrying		Fair		Carrying		Fair
	Value		Value		Value		Value
Assets
Long-term receivables	$	299	$	294	$	292	$	283
Liabilities
Long-term debt and related current maturities	$	10,326	$	10,976	$	6,131	$	6,721

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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)

3 Months Ended

Mar. 31, 2016

Accumulated Other Comprehensive Income (Loss) [Abstract]

Changes in Accumulated Other Comprehensive Income by Component

					Pension		Changes in
			Foreign		and Other		Fair Value
			Exchange		Postretirement		of Effective
			Translation		Benefits		Cash Flow
			Adjustment		Adjustments		Hedges		Total
Balance at December 31, 2015		$	(1,892)	$	(644)	$	1	$	(2,535)
	Other comprehensive income
	(loss) before reclassifications		122		-		(32)		90
	Amounts reclassified from
	accumulated other
	comprehensive income		-		(16)		6		(10)
	Net current period other
	comprehensive income (loss)		122		(16)		(26)		80
Balance at March 31, 2016		$	(1,770)	$	(660)	$	(25)	$	(2,455)
					Pension		Changes in
			Foreign		and Other		Fair Value
			Exchange		Postretirement		of Effective
			Translation		Benefits		Cash Flow
			Adjustment		Adjustments		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)

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SEGMENT FINANCIAL DATA (Tables)

3 Months Ended

Mar. 31, 2016

Segment Financial Data [Abstract]

Segment Financial Data

		Three Months Ended
		March 31,
		2016		2015
Net Sales
Aerospace
Products	$	2,490	$	2,463
Services		1,215		1,144
Total		3,705		3,607
Automation and Control Solutions
Products		3,386		2,979
Services		291		285
Total		3,677		3,264
Performance Materials and Technologies
Products		1,743		1,922
Services		397		420
Total		2,140		2,342
	$	9,522	$	9,213
Segment Profit
Aerospace	$	798	$	752
Automation and Control Solutions		530		516
Performance Materials and Technologies		441		503
Corporate		(49)		(50)
Total segment profit		1,720		1,721
Other income(a)		12		12
Interest and other financial charges		(85)		(77)
Stock compensation expense(b)		(53)		(52)
Pension ongoing income(b)		150		100
Other postretirement income (expense)(b)		9		(9)
Repositioning and other charges (b)		(125)		(131)
Income before taxes	$	1,628	$	1,564
(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.

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PENSION BENEFITS (Tables)

3 Months Ended

Mar. 31, 2016

Pension Benefits (Tables) [Abstract]

Defined Benefit Plans Disclosure

		Three Months Ended
		U.S. Plans				Non-U.S. Plans
		March 31,				March 31,
		2016		2015		2016		2015
Service cost	$	48	$	57	$	12	$	13
Interest cost		150		178		47		44
Expected return on plan assets		(306)		(320)		(99)		(90)
Amortization of prior service (credit) cost		(11)		6		(1)		-
	$	(119)	$	(79)	$	(41)	$	(33)

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COMMITMENTS AND CONTINGENCIES (Tables)

3 Months Ended

Mar. 31, 2016

Commitments And Contingencies Disclosure [Abstract]

Loss Contingency

December 31, 2015	$	518
Accruals for environmental matters deemed
probable and reasonably estimable		52
Environmental liability payments		(31)
March 31, 2016	$	539

Environmental liabilities are included in the following balance sheet accounts:

Environmental liabilities are included in the following balance sheet accounts:
			March 31,		December 31,
			2016		2015
	Accrued liabilities	$	253	$	253
	Other liabilities		286		265
		$	539	$	518

Asbestos Related Liabilities

Asbestos Related Liabilities
		Bendix		NARCO		Total
December 31, 2015	$	622	$	921	$	1,543
Accrual for update to estimated liability		52		1		53
Asbestos related liability payments		(50)		(2)		(52)
March 31, 2016	$	624	$	920	$	1,544

Insurance Recoveries for Asbestos Related Liabilities

Insurance Recoveries for Asbestos Related Liabilities
		Bendix		NARCO		Total
December 31, 2015	$	124	$	325	$	449
Probable insurance recoveries related to
estimated liability		8		-		8
Insurance receivables settlements		-		-		-
Insurance receipts for asbestos related liabilities		(1)		(2)		(3)
March 31, 2016	$	131	$	323	$	454

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,
		2016		2015
Other current assets	$	23	$	23
Insurance recoveries for asbestos related liabilities		431		426
	$	454	$	449
Accrued liabilities	$	292	$	292
Asbestos related liabilities		1,252		1,251
	$	1,544	$	1,543

The following tables present information regarding Bendix related asbestos claims activity

	Three Months Ended		Years Ended
	March 31,		December 31,
Claims Activity		2016	2015	2014
Claims Unresolved at the beginning of period		7,779	9,267	12,302
Claims Filed		733	2,862	3,694
Claims Resolved (1)		(762)	(4,350)	(6,729)
Claims Unresolved at the end of period		7,750	7,779	9,267
(1) Claims resolved in 2014 include 2,110 cancer claims which were determined to have no value. Also, claims resolved in 2015 and 2014 include significantly aged (i.e., pending for more than six years) claims totaling 153 and 1,266.

Disease distribution of claims

Disease Distribution of Unresolved Claims	March 31,	December 31,
	2016	2015	2014
Mesothelioma and Other Cancer Claims	3,678	3,772	3,933
Nonmalignant Claims	4,072	4,007	5,334
Total Claims	7,750	7,779	9,267

Average resolution values per asbestos claim

	Honeywell has experienced average resolution values per claim excluding legal costs as follows:
			Years Ended December 31,
			2015		2014		2013		2012		2011
			(in whole dollars)
Malignant claims		$	44,000	$	53,500	$	51,000	$	49,000	$	48,000
Nonmalignant claims		$	100	$	120	$	850	$	1,400	$	1,000

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BASIS OF PPRESENTATION (Details)	3 Months Ended
	Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Quarterly Financial Information Explanatory Note Period	Our actual closing dates for the three months ended March 31, 2016 and 2015 were April 2, 2016 and March 28, 2015. We estimate that our sales in the first quarter of 2016 compared to the first quarter of 2015 include an approximate 3 percent benefit from additional reporting days in the current year period resulting from our normal quarterly closing procedures.
Sales benefit from additional reporting days in current year, percent	3.00%

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ACQUISITIONS (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Business Combination Recognized Identifiable Assets Acquired Goodwill And Liabilities Assumed Net [Abstract]
Goodwill	$ 16,708	$ 15,895
Total Acquisitions [Member]
Business Acquisition [Line Items]
Payments To Acquire Businesses Net Of Cash Acquired	$ 1,053
Elster [Member]
Business Acquisition [Line Items]
Name of acquired entity	Elster Division of Melrose Industries plc
Effective date of acquisition	Dec. 29, 2015
Purchase price	$ 4,899
Business Combination Recognized Identifiable Assets Acquired Goodwill And Liabilities Assumed Net [Abstract]
Current assets	533
Intangible assets	2,255
Other noncurrent assets	209
Current liabilities	(426)
Noncurrent liabilities	(929)
Net assets acquired	1,642
Noncontrolling interest	(3)
Goodwill	3,260
Purchase price	$ 4,899
Xtralis [Member]
Business Acquisition [Line Items]
Name of acquired entity	Xtralis International Holdings Limited
Description of acquired entity	a leading global provider of aspiration smoke detection and perimeter security technologies
Effective date of acquisition	Apr. 01, 2016
Payments To Acquire Businesses Net Of Cash Acquired	$ 515
Business Combination Recognized Identifiable Assets Acquired Goodwill And Liabilities Assumed Net [Abstract]
Goodwill	$ 331
Com Dev [Member]
Business Acquisition [Line Items]
Name of acquired entity	COM DEV International
Description of acquired entity	a leading satellite and space components provider
Effective date of acquisition	Feb. 29, 2016
Business Acquisition Revenue Reported By Acquired Entity For Last Annual Period		$ 159
Payments To Acquire Businesses Net Of Cash Acquired	$ 347
Business Combination Recognized Identifiable Assets Acquired Goodwill And Liabilities Assumed Net [Abstract]
Goodwill	$ 177

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REPOSITIONING AND OTHER CHARGES (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Component Of Operating Other Cost And Expense [Line Items]
Total net repositioning charge	$ 20	$ 39
Asbestos related litigation charges, net of insurance	53	46
Probable and reasonably estimable environmental liabilities	52	46
Total net repositioning and other charges	125	131
Severance Costs [Member]
Component Of Operating Other Cost And Expense [Line Items]
Total net repositioning charge	28	37
Tangible And Intangible Asset Impairment [Member]
Component Of Operating Other Cost And Expense [Line Items]
Total net repositioning charge	7	8
Exit Costs [Member]
Component Of Operating Other Cost And Expense [Line Items]
Total net repositioning charge	2	1
Restructuring Reserve Accrual Adjustments [Member]
Component Of Operating Other Cost And Expense [Line Items]
Total net repositioning charge	$ (17)	$ (7)

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REPOSITIONING AND OTHER CHARGES 2 (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Net Repositioning And Other Charges By Income Statement Classification [Line Items]
Total net repositioning charges	$ 125	$ 131
Cost of products and services sold [Member]
Net Repositioning And Other Charges By Income Statement Classification [Line Items]
Total net repositioning charges	105	122
Selling, general and administrative expenses [Member]
Net Repositioning And Other Charges By Income Statement Classification [Line Items]
Total net repositioning charges	$ 20	$ 9

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REPOSITIONING AND OTHER CHARGES 3 (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Pretax Impact Of Total Net Repositioning And Other Charges By Segment [Line Items]
Total net repositioning charges	$ 125	$ 131
Corporate [Member]
Pretax Impact Of Total Net Repositioning And Other Charges By Segment [Line Items]
Total net repositioning charges	60	52
Aerospace [Member]
Pretax Impact Of Total Net Repositioning And Other Charges By Segment [Line Items]
Total net repositioning charges	49	48
Automation and Control Solutions [Member]
Pretax Impact Of Total Net Repositioning And Other Charges By Segment [Line Items]
Total net repositioning charges	7	24
Performance Materials And Technologies [Member]
Pretax Impact Of Total Net Repositioning And Other Charges By Segment [Line Items]
Total net repositioning charges	$ 9	$ 7

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REPOSITIONING AND OTHER CHARGES 4 (Details) $ in Millions	3 Months Ended
	Mar. 31, 2016 USD ($) Employees	Mar. 31, 2015 USD ($) Employees
Net Repositioning And Other Charges [Line Items]
Restructuring and Related Cost, Incurred Cost	$ 20	$ 39
Net repositioning and other charges Paragraph Details [Abstract]
Gross Repositioning Charge	$ 37	$ 46
Number of employees severed | Employees	293	3,040
Severance Costs [Member]
Net Repositioning And Other Charges [Line Items]
Restructuring and Related Cost, Incurred Cost	$ 28	$ 37
Tangible And Intangible Asset Impairment [Member]
Net Repositioning And Other Charges [Line Items]
Restructuring and Related Cost, Incurred Cost	7	8
Exit Costs [Member]
Net Repositioning And Other Charges [Line Items]
Restructuring and Related Cost, Incurred Cost	2	1
Restructuring Reserve Accrual Adjustments [Member]
Net Repositioning And Other Charges [Line Items]
Restructuring and Related Cost, Incurred Cost	$ (17)	$ (7)

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REPOSITIONING AND OTHER CHARGES 5 (Details)	3 Months Ended
	Mar. 31, 2016 USD ($)
Restructuring Reserve [Line Items]
Balance at beginning of period,	$ 350,000,000
Charges	37,000,000
Usage - cash	(54,000,000)
Usage - noncash	(7,000,000)
Adjustments	(17,000,000)
Foreign currency translation adjustment	6,000,000
Balance at end of period,	315,000,000
Severance Costs [Member]
Restructuring Reserve [Line Items]
Balance at beginning of period,	329,000,000
Charges	28,000,000
Usage - cash	(53,000,000)
Usage - noncash	0
Adjustments	(16,000,000)
Foreign currency translation adjustment	6,000,000
Balance at end of period,	294,000,000
Tangible And Intangible Asset Impairment [Member]
Restructuring Reserve [Line Items]
Balance at beginning of period,	0
Charges	7,000,000
Usage - cash	0
Usage - noncash	(7,000,000)
Adjustments	0
Foreign currency translation adjustment	0
Balance at end of period,	0
Exit Costs [Member]
Restructuring Reserve [Line Items]
Balance at beginning of period,	21,000,000
Charges	2,000,000
Usage - cash	(1,000,000)
Usage - noncash	0
Adjustments	(1,000,000)
Foreign currency translation adjustment	0
Balance at end of period,	$ 21,000,000

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EARNINGS (LOSS) PER SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Earnings Per Share [Abstract]
Net income attributable to Honeywell	$ 1,186	$ 1,116
Weighted average shares outstanding	767.9	783.8
Earnings per share of common stock - basic	$ 1.54	$ 1.42
Assuming dilution
Net income attributable to Honeywell	$ 1,186	$ 1,116
Average shares
Weighted average shares outstanding	767.9	783.8
Dilutive securities issuable - stock plans	9.0	10.2
Total weighted average diluted shares outstanding	776.9	794.0
Earnings per share of common stock - assuming dilution	$ 1.53	$ 1.41
Earnings Per Share Paragraph Details [Abstract]
Stock options excluded from diluted computations	8.4	7.8

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ACCOUNTS, NOTES AND OTHER RECEIVABLES (Details) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Accounts Receivable, Net Current [Abstract]
Trade	$ 8,238	$ 7,901
Other	450	436
Accounts receivable, Gross	8,688	8,337
Less - Allowance for doubtful accounts	(291)	(262)
Accounts receivable, Net	8,397	8,075
Accounts Notes, And Other Receivables Paragraph Details [Abstract]
Unbilled contract receivable	$ 1,654	$ 1,590

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INVENTORIES (Details) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Inventory Combining Work In Process And Raw Materials Alternative Gross Abstract
Raw materials	$ 1,195	$ 1,120
Work in process	871	826
Finished products	2,768	2,590
Inventory, Gross	4,834	4,536
Reduction to LIFO cost basis	(91)	(116)
Inventories	$ 4,743	$ 4,420

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LONG-TERM DEBT AND CREDIT AGREEMENTS (Details) € in Millions	3 Months Ended
	Mar. 31, 2016 USD ($)	Mar. 31, 2016 EUR (€)	Mar. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Debt Instrument [Line Items]
Total long-term debt, including current portion			$ 10,326,000,000	$ 6,131,000,000
Less current portion			(626,000,000)	(577,000,000)
Total Noncurrent Debt			9,700,000,000	5,554,000,000
Notes 5.40% due 2016 [Member]
Debt Instrument [Line Items]
Senior Notes			$ 0	400,000,000
Various interest rates		5.40%	5.40%
Maturity date of debt instrument	Mar. 15, 2016
Notes 5.30% due 2017 [Member]
Debt Instrument [Line Items]
Senior Notes			$ 400,000,000	400,000,000
Various interest rates		5.30%	5.30%
Maturity date of debt instrument	Mar. 15, 2017
Notes 5.30% due 2018 [Member]
Debt Instrument [Line Items]
Senior Notes			$ 900,000,000	900,000,000
Various interest rates		5.30%	5.30%
Maturity date of debt instrument	Mar. 01, 2018
Notes 5.00% due 2019 [Member]
Debt Instrument [Line Items]
Senior Notes			$ 900,000,000	900,000,000
Various interest rates		5.00%	5.00%
Maturity date of debt instrument	Feb. 15, 2019
Notes 4.25% Due 2021 [Member]
Debt Instrument [Line Items]
Senior Notes			$ 800,000,000	800,000,000
Various interest rates		4.25%	4.25%
Maturity date of debt instrument	Mar. 01, 2021
Notes 3.35% Due 2023 [Member]
Debt Instrument [Line Items]
Senior Notes			$ 300,000,000	300,000,000
Various interest rates		3.35%	3.35%
Maturity date of debt instrument	Dec. 01, 2023
Notes 5.70% due 2036 [Member]
Debt Instrument [Line Items]
Senior Notes			$ 550,000,000	550,000,000
Various interest rates		5.70%	5.70%
Maturity date of debt instrument	Mar. 15, 2036
Notes 5.70% due 2037 [Member]
Debt Instrument [Line Items]
Senior Notes			$ 600,000,000	600,000,000
Various interest rates		5.70%	5.70%
Maturity date of debt instrument	Mar. 15, 2037
Notes 5.375% Due 2041 [Member]
Debt Instrument [Line Items]
Senior Notes			$ 600,000,000	600,000,000
Various interest rates		5.375%	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			$ 30,000,000	30,000,000
Maturity date of debt instrument	Dec. 31, 2037
Debentures 6.625% due 2028 [Member]
Debt Instrument [Line Items]
Debentures			$ 216,000,000	216,000,000
Various interest rates		6.625%	6.625%
Maturity date of debt instrument	Jun. 15, 2028
Debentures 9.065% due 2033 [Member]
Debt Instrument [Line Items]
Debentures			$ 51,000,000	51,000,000
Various interest rates		9.065%	9.065%
Maturity date of debt instrument	Jun. 01, 2033
Other including capitalized leases and debt issuance costs .6% To 9.5% maturing at various dates through 2023 [Member]
Debt Instrument [Line Items]
Other long term debt			$ 445,000,000	384,000,000
Maturity date of debt instrument	Dec. 31, 2023
Other including capitalized leases and debt issuance costs .6% To 9.5% maturing at various dates through 2023 [Member] | Minimum Member]
Debt Instrument [Line Items]
Various interest rates		0.60%	0.60%
Other including capitalized leases and debt issuance costs .6% To 9.5% maturing at various dates through 2023 [Member] | Maximum [Member]
Debt Instrument [Line Items]
Various interest rates		9.50%	9.50%
Floating rate Euro notes due 2018 [Member]
Debt Instrument [Line Items]
Senior Notes		€ 1,000	$ 1,134,000,000	0
Maturity date of debt instrument	Feb. 22, 2018
Euro notes .65% due 2020 [Member]
Debt Instrument [Line Items]
Senior Notes		€ 1,000	$ 1,134,000,000	0
Various interest rates		0.65%	0.65%
Maturity date of debt instrument	Feb. 21, 2020
Euro notes 1.30% due 2023 [Member]
Debt Instrument [Line Items]
Senior Notes		€ 1,250	$ 1,416,000,000	0
Various interest rates		1.30%	1.30%
Maturity date of debt instrument	Feb. 22, 2023
Euro notes 2.25% due 2028 [Member]
Debt Instrument [Line Items]
Senior Notes		€ 750	$ 850,000,000	$ 0
Various interest rates		2.25%	2.25%
Maturity date of debt instrument	Feb. 22, 2028
Euro Notes [Member]
Debt Instrument [Line Items]
Gross proceeds from Euro Notes	$ 4,438,000,000
Discount and closing costs			$ 17,000,000
Issuance date	Feb. 22, 2016
Syndicate Of Banks [Member] | Revolving Credit Facility [Member]
Line Of Credit Facility [Line Items]
Facility initiation date	Jul. 10, 2015
Facility expiration date	Jul. 10, 2020
Line of credit facility, current borrowing capacity			4,000,000,000
Line of credit facility, maximum borrowing capacity			4,500,000,000
Line Of Credit Facility Remaining Borrowing Capacity			4,500,000,000
Syndicate Of Banks [Member] | 364-Day Credit Agreement
Line Of Credit Facility [Line Items]
Facility initiation date	Sep. 30, 2015
Facility expiration date	Sep. 28, 2016
Line of credit facility, current borrowing capacity			3,000,000,000
Line Of Credit Facility Remaining Borrowing Capacity			$ 3,000,000,000

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FINANCIAL INSTRUMENTS AND FAIR VALUE MEASURES (Details) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Significant Observable Inputs (Level 2) | Foreign Currency Exchange Contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Fair Value Of Derivative Asset	$ 22	$ 28
Derivative Fair Value Of Derivative Liability	62	17
Significant Observable Inputs (Level 2) | Interest Rate Swap Agreements [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Fair Value Of Derivative Asset	121	92
Fair Value Inputs Level 1 And Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale investments	$ 1,352	$ 1,501

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FINANCIAL INSTRUMENTS AND FAIR VALUE MEASURES 2 (Details) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Carrying (Reported) Amount, Fair Value Disclosure [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term receivables	$ 299	$ 292
Long-term debt and related current maturities	10,326	6,131
Estimate of Fair Value, Fair Value Disclosure [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term receivables	294	283
Long-term debt and related current maturities	$ 10,976	$ 6,721

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FINANCIAL INSTRUMENTS AND FAIR VALUE MEASURES 3 (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash Flow Hedge Gain Loss Reclassified To Income Statement Locations Paragraph Details [Abstract]
Gain (loss) on interest rate swap agreements	$ 29	$ 15
Foreign Exchange Mark to Market income (expense)	$ (32)	$ (162)

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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Accumulated Other Comprehensive Income Loss [Line Items]
Balance beginning of period December 31,	$ (2,535,000,000)	$ (1,459,000,000)
Other comprehensive income (loss) before reclassifications	90,000,000	(616,000,000)
Amounts reclassified from accumulated other comprehensive income	(10,000,000)	(24,000,000)
Net current period other comprehensive income (loss)	80,000,000	(640,000,000)
Balance end of period	(2,455,000,000)	(2,099,000,000)
Foreign Exchange Translation Adjustment [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Balance beginning of period December 31,	(1,892,000,000)	(740,000,000)
Other comprehensive income (loss) before reclassifications	122,000,000	(721,000,000)
Amounts reclassified from accumulated other comprehensive income	0	0
Net current period other comprehensive income (loss)	122,000,000	(721,000,000)
Balance end of period	(1,770,000,000)	(1,461,000,000)
Pension and Other Postretirement Benefits Adjustments [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Balance beginning of period December 31,	(644,000,000)	(728,000,000)
Other comprehensive income (loss) before reclassifications	0	0
Amounts reclassified from accumulated other comprehensive income	(16,000,000)	3,000,000
Net current period other comprehensive income (loss)	(16,000,000)	3,000,000
Balance end of period	(660,000,000)	(725,000,000)
Changes in Fair Value of Effective Cash Flow Hedges [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Balance beginning of period December 31,	1,000,000	9,000,000
Other comprehensive income (loss) before reclassifications	(32,000,000)	105,000,000
Amounts reclassified from accumulated other comprehensive income	6,000,000	(27,000,000)
Net current period other comprehensive income (loss)	(26,000,000)	78,000,000
Balance end of period	$ (25,000,000)	$ 87,000,000

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SEGMENT FINANCIAL DATA (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Segment Reporting Information [Line Items]
Product sales	$ 7,619	$ 7,364
Service sales	1,903	1,849
Net sales	9,522	9,213
Total segment profit	1,720	1,721
Corporate Non Segment [Member]
Segment Reporting Information [Line Items]
Total segment profit	(49)	(50)
Aerospace [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Product sales	2,490	2,463
Service sales	1,215	1,144
Net sales	3,705	3,607
Total segment profit	798	752
Automation and Control Solutions [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Product sales	3,386	2,979
Service sales	291	285
Net sales	3,677	3,264
Total segment profit	530	516
Performance Materials And Technologies [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Product sales	1,743	1,922
Service sales	397	420
Net sales	2,140	2,342
Total segment profit	$ 441	$ 503

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SEGMENT FINANCIAL DATA 2 (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Reconciliation of segment profit to consolidated [Abstract]
Total segment profit	$ 1,720	$ 1,721
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items]
Other income	12	12
Interest and other financial charges	(85)	(77)
Stock compensation expense	(53)	(52)
Repositioning and other charges	(125)	(131)
Income before taxes	1,628	1,564
Segment Financial Data [Abstract]
Net sales	9,522	9,213
Pension Plans, Defined Benefit [Member]
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items]
Benefit plans income/(expense)	150	100
Other Postretirement Benefit Plans [Member]
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items]
Benefit plans income/(expense)	9	(9)
Corporate [Member]
Reconciliation of segment profit to consolidated [Abstract]
Total segment profit	(49)	(50)
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items]
Repositioning and other charges	$ (60)	$ (52)

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PENSION BENEFITS (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Pension Plans, Defined Benefit [Member]
Defined Benefit Plan Disclosure [Line Items]
Net periodic benefit (income)	$ (150,000,000)	$ (100,000,000)
United States, Defined Benefit [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	48,000,000	57,000,000
Interest cost	150,000,000	178,000,000
Expected return on plan assets	(306,000,000)	(320,000,000)
Amortization of prior service cost (credit)	(11,000,000)	6,000,000
Net periodic benefit (income)	(119,000,000)	(79,000,000)
Non-US, Defined Benefit [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	12,000,000	13,000,000
Interest cost	47,000,000	44,000,000
Expected return on plan assets	(99,000,000)	(90,000,000)
Amortization of prior service cost (credit)	(1,000,000)	0
Net periodic benefit (income)	$ (41,000,000)	$ (33,000,000)

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COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2016	Dec. 31, 2015
Accrual For Environmental Loss Contingencies [RollForward]
Beginning of period	$ 518
Accruals for environmental matters deemed probable and reasonably estimable	52
Environmental liability payments	(31)
End of period	539
Loss Contingency Classification of Accrual [Abstract]
Accrued liabilities		$ 253	$ 253
Other liabilities		286	265
Total environmental liabilities	$ 518	$ 539	$ 518

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COMMITMENTS AND CONTINGENCIES 2 (Details)	3 Months Ended
	Mar. 31, 2016 USD ($)
Asbestos Related Liabilities [Member]
Asbestos Related Liabilities Disclosure [Abstract]
Asbestos Related Liabilities, Beginning of Period	$ 1,543,000,000
Accrual for update to estimated liability	53,000,000
Asbestos related liability payments	(52,000,000)
Asbestos Related Liabilities, End of Period	1,544,000,000
Asbestos Related Liabilities Insurance Recoveries [Line Items]
Insurance Recoveries, beginning of period	449,000,000
Probable insurance recoveries related to estimated liability	8,000,000
Insurance receivables settlements	0
Insurance receipts for asbestos related liabilities	(3,000,000)
Insurance recoveries, end of period	454,000,000
Bendix Asbestos Loss Contingency Liability [Member]
Asbestos Related Liabilities Disclosure [Abstract]
Asbestos Related Liabilities, Beginning of Period	622,000,000
Accrual for update to estimated liability	52,000,000
Asbestos related liability payments	(50,000,000)
Asbestos Related Liabilities, End of Period	624,000,000
Asbestos Related Liabilities Insurance Recoveries [Line Items]
Insurance Recoveries, beginning of period	124,000,000
Probable insurance recoveries related to estimated liability	8,000,000
Insurance receivables settlements	0
Insurance receipts for asbestos related liabilities	(1,000,000)
Insurance recoveries, end of period	131,000,000
Narco Asbestos Loss Contingency Liability [Member]
Asbestos Related Liabilities Disclosure [Abstract]
Asbestos Related Liabilities, Beginning of Period	921,000,000
Accrual for update to estimated liability	1,000,000
Asbestos related liability payments	(2,000,000)
Asbestos Related Liabilities, End of Period	920,000,000
Asbestos Related Liabilities Insurance Recoveries [Line Items]
Insurance Recoveries, beginning of period	325,000,000
Probable insurance recoveries related to estimated liability	0
Insurance receivables settlements	0
Insurance receipts for asbestos related liabilities	(2,000,000)
Insurance recoveries, end of period	$ 323,000,000

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COMMITMENTS AND CONTINGENCIES 3 (Details) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Loss Contingency, Narco and Bendix Asbestos Related Balances by Balance Sheet Caption [Line Items]
Insurance recoveries for asbestos related liabilities	$ 431	$ 426
Asbestos related liabilities	1,252	1,251
Asbestos Related Liabilities [Member]
Loss Contingency, Narco and Bendix Asbestos Related Balances by Balance Sheet Caption [Line Items]
Other current assets	23	23
Insurance recoveries for asbestos related liabilities	431	426
Total assets	454	449
Accrued liabilities	292	292
Asbestos related liabilities	1,252	1,251
Total liabilities	$ 1,544	$ 1,543

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COMMITMENTS AND CONTINGENCIES 4 (Details) $ in Millions	Mar. 31, 2016 USD ($)
Loss Contingency By Nature Of Contingency [Line Items]
Loss Contingency Estimated Pre-established Unliquidated Claims Amount	$ 145
Loss Contingency Unsettled Claims Amount	32
Exceptions To Cap [Abstract]
Value Not Included In Cap	100
Estimated value of settlement agreements to be paid during the initial years of trust operations	150
Settlement Payments	5
Minimum Member]
Loss Contingency By Nature Of Contingency [Line Items]
Estimated Liability	743
Maximum [Member]
Loss Contingency By Nature Of Contingency [Line Items]
Estimated Liability	961
Years 2016 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

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COMMITMENTS AND CONTINGENCIES 5 (Details) - Bendix Asbestos Loss Contingency Liability [Member] - claims	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Loss Contingency Claims [Abstract]
Claims Unresolved at the beginning of period	7,779	9,267	12,302
Claims Filed during the period	733	2,862	3,694
Claims Resolved during the period	(762)	(4,350)	(6,729)
Claims Unresolved at the end of period	7,750	7,779	9,267
Loss Contingency Claims Footnote [Abstract]
Significantly Aged Claims		153	1,266
Cancer Claims With No Determinable Value			2,110

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COMMITMENTS AND CONTINGENCIES 6 (Details) - Bendix Asbestos Loss Contingency Liability [Member] - claims	Mar. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Loss Contingency Disease Distribution Of Unresolved Claims [Line Items]
Mesothelioma and Other Cancer Claims	3,678	3,772	3,933
Nonmalignant Claims	4,072	4,007	5,334

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COMMITMENTS AND CONTINGENCIES 7 (Details) - Bendix Asbestos Loss Contingency Liability [Member] - $ / claims	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Resolution Values Per Claim [Line Items]
Malignant claims	44,000	53,500	51,000	49,000	48,000
Nonmalignant claims	100	120	850	1,400	1,000

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COMMITMENTS AND CONTINGENCIES 8 (Details) - United Auto Workers [Member] $ in Millions	3 Months Ended
	Mar. 31, 2016 USD ($)
Pre-2003 Retirees [Member]
Other Matters Paragraph Details [Line Items]
Potential Opeb Increase Due To Adverse Ruling	$ 176
Post-2003 Retirees [Member]
Other Matters Paragraph Details [Line Items]
Potential Opeb Increase Due To Adverse Ruling	$ 110

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COMMITMENTS AND CONTINGENCIES 9 (Details)	3 Months Ended
	Mar. 31, 2016
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