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, 2021, there were 32,337,638, and 815,299 shares of Honeywell common stock available for future grants under terms of the 2016 Plan and 2016 Directors Plan, respectively.

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 the Company's 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 the Company's common stock. The Company 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 sets forth fair value per share information, including related weighted-average assumptions, used to determine compensation cost.


	Years Ended December 31,
	2021				2020				2019
Weighted average fair value per share of options granted during the year(1)		$	32.42			$	21.30			$	21.57
Assumptions:
Expected annual dividend yield		2.31		%		2.59		%		2.65		%
Expected volatility		24.69		%		18.76		%		18.40		%
Risk-free rate of return		0.48		%		1.32		%		2.46		%
Expected option term (years)		4.54				4.62				4.87


	Number of Options		Weighted Average Exercise Price
Outstanding at December 31, 2018		22,478,581		$	97.83
Granted		3,136,058		155.43
Exercised		(5,897,060)		84.31
Lapsed or canceled		(986,017)		136.15
Outstanding at December 31, 2019		18,731,562		109.87
Granted		3,192,693		176.93
Exercised		(4,424,754)		88.96
Lapsed or canceled		(930,972)		156.62
Outstanding at December 31, 2020		16,568,529		125.75
Granted		2,065,574		204.99
Exercised		(2,016,489)		113.01
Lapsed or canceled		(764,675)		175.42
Outstanding at December 31, 2021		15,852,939		$	135.31
Vested and expected to vest at December 31, 2021(1)		14,694,701		$	131.08
Exercisable at December 31, 2021		10,664,625		$	113.30

(1)Represents the sum of vested options of 10.7 million and expected to vest options of 4.0 million. Expected to vest options are derived by applying the pre-vesting forfeiture rate assumption to total outstanding unvested options of 5.2 million.


Range of Exercise Prices	Options Outstanding										Options Exercisable
	Number Outstanding		Weighted Average Life(1)		Weighted Average Exercise Price per share			Aggregate Intrinsic Value			Number Exercisable		Weighted Average Exercise Price per share			Aggregate Intrinsic Value
$27.00–$64.99		90,181		0.17		$	56.97		$	14		90,181		$	56.97		$	14
$65.00–$89.99		2,293,585		1.68		79.39			296			2,293,585		79.39			296
$90.00–$99.99		3,341,048		3.44		98.80			367			3,341,048		98.80			366
$100.00–$134.99		2,435,321		5.04		119.69			216			2,314,755		119.19			214
$135.00–$232.99		7,692,804		7.55		173.71			271			2,625,056		158.14			232
		15,852,939		5.41		$	135.28		$	1,164		10,664,625		$	113.30		$	1,122

There were 10,120,793 and 11,620,992 options exercisable at weighted average exercise prices of $103.89 and $92.19 at December 31, 2020 and 2019, respectively.

The following table summarizes the financial statement impact from stock options exercised:


Options Exercised	Years Ended December 31,
	2021			2020			2019
Intrinsic value(1)		$	219		$	379		$	483
Tax benefit realized		48			84			117

At December 31, 2021, there was $100 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, 2021, 2020 and 2019 was $52 million, $55 million and $61 million, respectively.

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.


	Number of Restricted Stock Units		Weighted Average Grant Date Fair Value Per Share
Non-vested at December 31, 2018		3,657,873		$	125.35
Granted		1,200,202		162.43
Vested		(1,160,333)		104.32
Forfeited		(457,677)		134.50
Non-vested at December 31, 2019		3,240,065		143.07
Granted		1,551,675		158.52
Vested		(1,001,101)		117.84
Forfeited		(394,116)		145.42
Non-vested at December 31, 2020		3,396,523		148.23
Granted		992,854		214.61
Vested		(1,123,547)		144.34
Forfeited		(308,293)		156.74
Non-vested at December 31, 2021		2,957,536		$	171.73

As of December 31, 2021, there was approximately $273 million of total unrecognized compensation cost related to non-vested RSUs granted under the Company's stock plans which is expected to be recognized over a weighted-average period of 2.23 years.

The following table summarizes the impact to the Consolidated Statement of Operations from RSUs:


	Years Ended December 31,
	2021			2020			2019
Compensation expense		$	162		$	118		$	106
Future income tax benefit recognized		23			24			21