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STOCK-BASED COMPENSATION PLANS
 12 Months Ended
Dec. 31, 2020
Share-based Payment Arrangement [Abstract]  
Share-based Payment Arrangement [Text Block]
The 2016 Stock Incentive Plan of Honeywell International Inc. and its Affiliates (2016 Plan) and 2016 Stock Plan for Non-Employee Directors of Honeywell International Inc. (2016 Directors Plan) were both approved by the shareowners at the Annual Meeting of Shareowners effective on April 25, 2016. At December 31, 2020, there were 34,104,522, and 832,309 shares of Honeywell common stock available for future grants under terms of the 2016 Plan and 2016 Directors Plan, respectively.
STOCK OPTIONS
The exercise price, term and other conditions applicable to each option granted under the Company's stock plans are generally determined by the Management Development and Compensation Committee of the Board of Directors. The exercise price of stock options is set on the grant date and may not be less than the fair market value per share of our stock on that date. The fair value is recognized as an expense over the employee’s requisite service period (generally the vesting period of the award). Options generally vest over a four-year period and expire after ten years.
The fair value of each option award is estimated on the date of grant using the Black-Scholes option-pricing model. Expected volatility is based on implied volatilities from traded options on our common stock and historical volatility of our common stock. We used a Monte Carlo simulation model to derive an expected term which represents an estimate of the time options are expected to remain outstanding. Such model uses historical data to estimate option exercise activity and post-vest termination behavior. The risk-free rate for periods within the contractual life of the option is based on the U.S. treasury yield curve in effect at the time of grant.
The following table summarizes the impact to the Consolidated Statement of Operations from stock options:
 Years Ended December 31,
202020192018
Compensation expense$50 $47 $64 
Future income tax benefit recognized10 10 13 
The following table sets forth fair value per share information, including related weighted-average assumptions, used to determine compensation cost.
 Years Ended December 31,
202020192018
Weighted average fair value per share of options granted during the year(1)
$21.30 $21.57 $23.63 
Assumptions:
Expected annual dividend yield2.59 %2.65 %2.49 %
Expected volatility18.76 %18.40 %18.93 %
Risk-free rate of return1.32 %2.46 %2.71 %
Expected option term (years)4.624.874.95
(1)Estimated on date of grant using Black-Scholes option-pricing model.
The following table summarizes information about stock option activity for the three years ended December 31, 2020:
Number of
Options		Weighted
Average
Exercise
Price
Outstanding at December 31, 201723,409,293 $94.16 
Spin related adjustment(1)
989,158 
Granted3,303,722 148.48 
Exercised(3,399,375)78.29 
Lapsed or canceled(1,824,217)123.01 
Outstanding at December 31, 201822,478,581 97.83 
Granted3,136,058 155.43 
Exercised(5,897,060)84.31 
Lapsed or canceled(986,017)136.15 
Outstanding at December 31, 201918,731,562 109.87 
Granted3,192,693 176.93 
Exercised(4,424,754)88.96 
Lapsed or canceled(930,972)156.62 
Outstanding at December 31, 202016,568,529 $125.75 
Vested and expected to vest at December 31, 2020(2)
15,442,367 $122.63 
Exercisable at December 31, 202010,120,793 $103.89 
(1)Additional options granted to offset the dilutive impact of the spin-offs on outstanding options.
(2)Represents the sum of vested options of 10.1 million and expected to vest options of 5.3 million. Expected to vest options are derived by applying the pre-vesting forfeiture rate assumption to total outstanding unvested options of 6.4 million.
The following table summarizes information about stock options outstanding and exercisable at December 31, 2020:
Range of Exercise PricesOptions OutstandingOptions Exercisable
Number
Outstanding
Weighted
Average Life(1)
Weighted
Average
Exercise
Price		Aggregate
Intrinsic
Value		Number
Exercisable		Weighted
Average
Exercise
Price		Aggregate
Intrinsic
Value
$27.00–$64.99236,938 1$56.58 $37 236,938 $56.58 $37 
$65.00–$89.992,541,403 2.778.96 340 2,541,403 78.96 340 
$90.00–$99.993,980,975 4.6898.80 453 3,980,975 98.80 453 
$100.00–$134.992,892,011 6.78119.58 270 1,985,364 118.64 187 
$135.00–$180.996,917,202 8.34163.40 341 1,376,113 151.53 84 
16,568,529 6.22$125.75 $1,441 10,120,793 $103.89 $1,101 
(1)Average remaining contractual life in years.
There were 11,620,992 and 14,073,120 options exercisable at weighted average exercise prices of $92.19 and $83.42 at December 31, 2019 and 2018.
The following table summarizes the financial statement impact from stock options exercised:
Options ExercisedYears Ended December 31,
202020192018
Intrinsic value(1)
$379 $483 $238 
Tax benefit realized84 117 47 
(1)Represents the amount by which the stock price exceeded the exercise price of the options on the date of exercise.
At December 31, 2020, there was $88 million of total unrecognized compensation cost related to non-vested stock option awards which is expected to be recognized over a weighted-average period of 2.46 years. The total fair value of options vested for the years ended December 31, 2020, 2019 and 2018 was $55 million, $61 million and $73 million.
RESTRICTED STOCK UNITS
Restricted stock unit (RSU) awards entitle the holder to receive one share of common stock for each unit when the units vest. RSUs are issued to certain key employees and directors as compensation at fair market value at the date of grant. RSUs generally become fully vested over periods ranging from three to six years and are payable in Honeywell common stock upon vesting.
The following table summarizes information about RSU activity for the three years ended December 31, 2020:
Number of
Restricted
Stock Units		Weighted
Average
Grant Date
Fair Value
Per Share
Non-vested at December 31, 20173,946,827 $108.60 
Spin related adjustment(1)
154,346 
Granted1,360,338 153.46
Vested(988,787)91.68
Forfeited(814,851)117.40
Non-vested at December 31, 20183,657,873 125.35
Granted1,200,202 162.43
Vested(1,160,333)104.32
Forfeited(457,677)134.50
Non-vested at December 31, 20193,240,065 143.07
Granted1,551,675 158.52
Vested(1,001,101)117.84
Forfeited(394,116)145.42
Non-vested at December 31, 20203,396,523 $148.23 
(1)Additional RSU grants to offset the dilutive impact of the spin-offs on non-vested RSUs.
As of December 31, 2020, there was approximately $290 million of total unrecognized compensation cost related to non-vested RSUs granted under our stock plans which is expected to be recognized over a weighted-average period of 3.30 years.
The following table summarizes the impact to the Consolidated Statement of Operations from RSUs:
 Years Ended December 31,
202020192018
Compensation expense$118 $106 $111 
Future income tax benefit recognized24 21 21