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PENSION AND OTHER POSTRETIREMENT BENEFITS
 12 Months Ended
Dec. 31, 2021
Retirement Benefits, Description [Abstract]  
Pension and Other Postretirement Benefits
The Company sponsors a number of both funded and unfunded U.S. and non-U.S. defined benefit pension plans. Pension benefits for many of the Company's U.S. employees are provided through non-contributory, qualified and non-qualified defined benefit plans. All non-union hourly and salaried employees joining Honeywell for the first time after December 31, 2012, are not eligible to participate in Honeywell’s U.S. defined benefit pension plans. The Company also sponsors defined benefit pension plans which cover non-U.S. employees who are not U.S. citizens, in certain jurisdictions, principally the UK, Netherlands, Germany, and Canada. Other pension plans outside of the U.S. are not material to the Company either individually or in the aggregate.
The Company also sponsors postretirement benefit plans that provide health care benefits and life insurance coverage mainly to U.S. eligible retirees. None of Honeywell’s U.S. employees are eligible for a retiree medical subsidy from the Company. In addition, the vast majority of Honeywell’s U.S. retirees either have no Company subsidy or have a fixed-dollar subsidy amount. This significantly limits the Company's exposure to the impact of future health care cost increases. The retiree medical and life insurance plans are not funded. Claims and expenses are paid from the Company's cash flows from operations.
The following tables summarize the balance sheet impact, including the benefit obligations, assets and funded status associated with the Company's significant pension and other postretirement benefit plans.
 Pension Benefits
U.S. PlansNon-U.S. Plans
2021202020212020
Change in benefit obligation:    
Benefit obligation at beginning of year$18,054 $17,283 $7,670 $6,897 
Service cost105 99 26 23 
Interest cost306 461 77 106 
Plan amendments— — (3)2 
Actuarial (gains) losses(1)
141 1,331 (403)509 
Benefits paid(1,221)(1,100)(249)(246)
Settlements and curtailments— (21)— — 
Foreign currency translation— — (121)291 
Other6 1 2 88 
Benefit obligation at end of year17,391 18,054 6,999 7,670 
Change in plan assets:
Fair value of plan assets at beginning of year20,396 18,995 8,450 7,307 
Actual return on plan assets1,344 2,475 166 918 
Company contributions35 46 101 116 
Benefits paid(1,221)(1,100)(249)(246)
Settlements and curtailments— (21)— — 
Foreign currency translation— — (74)253 
Other6 1 2 102 
Fair value of plan assets at end of year20,560 20,396 8,396 8,450 
Funded status of plans$3,169 $2,342 $1,397 $780 
Amounts recognized in Consolidated Balance Sheet consist of:
Prepaid pension benefit cost(2)
$3,528 $2,695 $2,105 $1,688 
Accrued pension liabilities—current(3)
(33)(29)(14)(14)
Accrued pension liabilities—noncurrent(4)
(326)(324)(694)(894)
Net amount recognized$3,169 $2,342 $1,397 $780 
(1)The actuarial losses incurred in 2021 related to the Company's U.S. plans are primarily the result of changes in demographic experience and demographic assumptions, partially offset by actuarial gains due to an increase in the discount rate assumptions used to estimate the benefit obligations as of December 31, 2021 compared to December 31, 2020. Actuarial gains incurred in 2021 related to the Company's non-U.S. plans are primarily the result of an increase in the discount rate assumption used to estimate the benefit obligations as of December 31, 2021 compared to December 31, 2020. Actuarial losses incurred in 2020 related to the Company's U.S. and non-U.S. plans are primarily the result of a decrease in the discount rate assumptions used to estimate the benefit obligations as of December 31, 2020 compared to December 31, 2019.
(2)Included in Other assets on the Consolidated Balance Sheet
(3)Included in Accrued liabilities on the Consolidated Balance Sheet
(4)Included in Other liabilities on the Consolidated Balance Sheet
 Other
Postretirement
Benefits
20212020
Change in benefit obligation:
Benefit obligation at beginning of year$229 $325 
Service cost— — 
Interest cost5 8 
Plan amendments— (65)
Actuarial (gains) losses(8)(8)
Benefits paid(30)(31)
Benefit obligation at end of year196 229 
Change in plan assets:
Fair value of plan assets at beginning of year— — 
Actual return on plan assets— — 
Company contributions— — 
Benefits paid— — 
Fair value of plan assets at end of year— — 
Funded status of plans$(196)$(229)
Amounts recognized in Consolidated Balance Sheet consist of:
Accrued liabilities$(25)$(27)
Postretirement benefit obligations other than pensions(1)
(171)(202)
Net amount recognized$(196)$(229)
(1)Excludes non-U.S. plan of $37 million and $40 million as of December 31, 2021 and 2020.
Amounts recognized in Accumulated other comprehensive (income) loss associated with the Company's significant pension and other postretirement benefit plans at December 31, 2021 and 2020 are as follows:
 Pension Benefits
U.S. PlansNon-U.S. Plans
2021202020212020
Prior service (credit) cost$(92)$(134)$20 $23 
Net actuarial (gain) loss492 505 397 629 
Net amount recognized$400 $371 $417 $652 
 Other
Postretirement
Benefits
20212020
Prior service (credit) cost$(92)$(165)
Net actuarial (gain) loss(34)(28)
Net amount recognized$(126)$(193)
The components of net periodic benefit (income) cost and other amounts recognized in Other comprehensive (income) loss for the Company's significant pension and other postretirement benefit plans include the following components:
Net Periodic Benefit CostPension Benefits
U.S. PlansNon-U.S. Plans
202120202019202120202019
Service cost$105 $99 $82 $26 $23 $22 
Interest cost306 461 613 77 106 142 
Expected return on plan assets(1,220)(1,135)(1,117)(348)(336)(331)
Amortization of prior service (credit) cost(42)(42)(42)— — — 
Recognition of actuarial losses31 26 35 9 18 88 
Settlements and curtailments— 4 4 — — — 
Net periodic benefit (income) cost$(820)$(587)$(425)$(236)$(189)$(79)
Other Changes in Plan Assets and
Benefits Obligations Recognized in Other Comprehensive
(Income) Loss		U.S. PlansNon-U.S. Plans
202120202019202120202019
Actuarial (gains) losses$(14)$(9)$(277)$(221)$(73)$176 
Prior service (credit) cost— — — (3)2 — 
Prior service credit recognized during year43 42 42 (1)— — 
Actuarial losses recognized during year— (30)(39)(9)(18)(88)
Foreign currency translation— — — (1)19 14 
Total recognized in other comprehensive (income) loss$29 $3 $(274)$(235)$(70)$102 
Total recognized in net periodic benefit (income) cost and other comprehensive (income) loss$(791)$(584)$(699)$(471)$(259)$23 
Net Periodic Benefit CostOther Postretirement Benefits
Years Ended December 31,
202120202019
Service cost$— $— $— 
Interest cost5 8 14 
Amortization of prior service (credit) cost(74)(66)(62)
Recognition of actuarial (gains) losses(2)— — 
Net periodic benefit (income) cost$(71)$(58)$(48)
Other Changes in Plan Assets and Benefits Obligations
Recognized in Other Comprehensive (Income) Loss		Years Ended December 31,
202120202019
Actuarial (gains) losses$(8)$(8)$(16)
Prior service (credit) cost— (65)(2)
Prior service credit recognized during year74 66 62 
Actuarial (gains) losses recognized during year2 — — 
Total recognized in other comprehensive (income) loss$68 $(7)$44 
Total recognized in net periodic benefit (income) cost and other comprehensive (income) loss$(3)$(65)$(4)
Major actuarial assumptions used in determining the benefit obligations and net periodic benefit (income) cost for the Company's significant benefit plans are presented in the following table as weighted averages.
 Pension Benefits
U.S. PlansNon-U.S. Plans
202120202019202120202019
Actuarial assumptions used to determine benefit obligations as of December 31:
Discount rate2.87 %2.50 %3.22 %1.79 %1.23 %1.81 %
Expected annual rate of compensation increase3.25 %3.25 %3.25 %2.56 %2.43 %2.47 %
Actuarial assumptions used to determine net periodic benefit (income) cost for years ended December 31:
Discount rate—benefit obligation2.50 %3.22 %4.35 %1.24 %1.81 %2.63 %
Discount rate—service cost2.68 %3.33 %4.47 %1.00 %1.48 %2.26 %
Discount rate—interest cost1.76 %2.76 %3.94 %1.00 %1.56 %2.34 %
Expected rate of return on plan assets6.15 %6.15 %6.75 %4.03 %4.66 %5.14 %
Expected annual rate of compensation increase3.25 %3.25 %3.25 %2.43 %2.47 %2.46 %
 Other Postretirement Benefits
202120202019
Actuarial assumptions used to determine benefit obligations as of December 31:
 Discount rate2.66 %2.20 %3.03 %
Actuarial assumptions used to determine net periodic benefit cost for years ended December 31:
Discount rate(1)
2.20 %2.36 %4.07 %
(1)Discount rate was 3.03% for January 1, 2020 through September 30, 2020. The rate was changed to 2.36% for the remainder of 2020 due to a Plan remeasurement as of October 1, 2020.
The discount rate for the Company's U.S. pension and other postretirement benefits plans reflects the current rate at which the associated liabilities could be settled at the measurement date of December 31. To determine discount rates for the Company's U.S. pension and other postretirement benefit plans, the Company uses a modeling process that involves matching the expected cash outflows of the Company's benefit plans to a yield curve constructed from a portfolio of high quality, fixed-income debt instruments. The Company uses the single weighted-average yield of this hypothetical portfolio as a discount rate benchmark. The Company utilizes a full yield curve approach in the estimation of the service and interest cost components of net periodic pension benefit (income) for the Company's significant pension plans. This approach applies the specific spot rates along the yield curve used in the determination of the pension benefit obligation to their underlying projected cash flows and provides a more precise measurement of service and interest costs by improving the correlation between projected cash flows and their corresponding spot rates. For the Company's U.S. pension plans, the single weighted average spot rates used to determine service and interest costs for 2022 are 2.97% and 2.26%. The discount rate used to determine the other postretirement benefit obligation is lower principally due to a shorter expected duration of other postretirement plan obligations as compared to pension plan obligations.
The Company plans to use an expected rate of return on U.S. plan assets of 6.40% for 2022, which represents an increase from the 6.15% assumption used for 2021. The Company's asset return assumption is based on historical plan asset returns over varying long-term periods combined with current market conditions and broad asset mix considerations with a focus on long-term trends rather than short-term market conditions. The Company reviews the expected rate of return on an annual basis and revise it as appropriate.
For non-U.S. benefit plans actuarial assumptions reflect economic and market factors relevant to each country.
PENSION BENEFITS
The following amounts relate to the Company's significant pension plans with accumulated benefit obligations exceeding the fair value of plan assets:
 December 31,
U.S. PlansNon-U.S. Plans
2021202020212020
Projected benefit obligation$359 $353 $964 $2,116 
Accumulated benefit obligation$346 $341 $932 $2,042 
Fair value of plan assets$— $— $256 $1,208 
The accumulated benefit obligation for the Company's U.S. defined benefit pension plans was $17.3 billion and $17.9 billion and for the Company's Non-U.S. defined benefit pension plans was $6.9 billion and $7.6 billion at December 31, 2021 and 2020.
The Company's asset investment strategy for its U.S. pension plans focuses on maintaining a diversified portfolio using various asset classes in order to achieve the Company's long-term investment objectives on a risk adjusted basis. The Company's long-term target allocations are as follows: 55%-70% fixed income securities and cash, 25%-40% equity securities, 5%-10% real estate investments, and 10%-20% other types of investments. Equity securities include publicly-traded stock of companies located inside the United States. Fixed income securities include corporate bonds of companies from diversified industries, mortgage-backed securities, and U.S. Treasuries. Real estate investments include direct investments in commercial properties and investments in real estate funds. Other types of investments include investments in private equity that follow several different strategies. The Company reviews its assets on a regular basis to ensure that the Company is within the targeted asset allocation ranges and, if necessary, asset balances are adjusted back within target allocations.
The Company's non-U.S. pension assets are typically managed by decentralized fiduciary committees with the Honeywell Corporate Investments group providing funding and investment guidance. The Company's non-U.S. investment policies are different for each country as local regulations, funding requirements, and financial and tax considerations are part of the funding and investment allocation process in each country.
In accordance with ASU 2015-07, “Fair Value Measurement (Topic 820)”, certain investments that are measured at fair value using the net asset value (NAV) per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in the following tables are intended to permit reconciliation of the fair value hierarchy to the amounts presented for the total pension benefits plan assets.
The fair values of both the Company's U.S. and non-U.S. pension plans assets by asset category are as follows:
 U.S. Plans
December 31, 2021
TotalLevel 1Level 2Level 3
Equities:
Honeywell common stock$3,251 $3,251 $— $— 
U.S. equities— — — — 
Fixed income:
Short term investments1,767 1,767 — — 
Government securities1,373 — 1,373 — 
Corporate bonds9,588 — 9,588 — 
Mortgage/Asset-backed securities1,072 — 1,072 — 
Insurance contracts8 — 8 — 
Direct investments:
Direct private investments1,336 — — 1,336 
Real estate properties843 — — 843 
Total$19,238 $5,018 $12,041 $2,179 
Investments measured at NAV:
Private funds1,244 
Real estate funds14 
Commingled Funds64 
Total assets at fair value$20,560 
 U.S. Plans
December 31, 2020
TotalLevel 1Level 2Level 3
Equities:
Honeywell common stock$3,319 $3,319 $— $— 
U.S. equities— — — — 
Fixed income:
Short term investments1,314 1,314 — — 
Government securities1,520 — 1,520 — 
Corporate bonds10,190 — 10,190 — 
Mortgage/Asset-backed securities982 — 982 — 
Insurance contracts7 — 7 — 
Direct investments:
Direct private investments1,220 — — 1,220 
Real estate properties651 — — 651 
Total$19,203 $4,633 $12,699 $1,871 
Investments measured at NAV:
Private funds1,105 
Real estate funds26 
Commingled funds62 
Total assets at fair value$20,396 
 Non-U.S. Plans
December 31, 2021
TotalLevel 1Level 2Level 3
Equities:
U.S. equities$229 $1 $228 $— 
Non-U.S. equities824 — 824 — 
Fixed income:
Short-term investments571 571 — — 
Government securities3,893 — 3,893 — 
Corporate bonds1,681 — 1,681 — 
Mortgage/Asset-backed securities79 — 79 — 
Insurance contracts123 — 123 — 
Insurance buy-in contracts691 — — 691 
Investments in private funds:
Private funds74 — 41 33 
Real estate funds163 — — 163 
Total$8,328 $572 $6,869 $887 
Investments measured at NAV:
Private funds17 
Real estate funds51 
Total assets at fair value$8,396 
 Non-U.S. Plans
December 31, 2020
TotalLevel 1Level 2Level 3
Equities:
U.S. equities$207 $— $207 $— 
Non-U.S. equities1,614 66 1,548 — 
Fixed income:
Short-term investments596 596 — — 
Government securities3,105 — 3,105 — 
Corporate bonds1,649 — 1,649 — 
Mortgage/Asset-backed securities93 — 93 — 
Insurance contracts142 — 142 — 
Insurance buy-in contracts767 — — 767 
Investments in private funds:
Private funds65 — 36 29 
Real estate funds147 — — 147 
Total$8,385 $662 $6,780 $943 
Investments measured at NAV:
Private funds18 
Real estate funds47 
Total assets at fair value$8,450 
The following table summarizes changes in the fair value of Level 3 assets for both U.S. and Non-U.S. plans:
 U.S. PlansNon-U.S. Plans
Direct
Private
Investments		Real Estate
Properties		Private
Funds		Real Estate
Funds		Insurance Buy-in Contracts
Balance at December 31, 2019$950 $619 $34 $150 $— 
Actual return on plan assets:
Relating to assets still held at year-end100 (4)(5)(3)— 
Relating to assets sold during the year53 — — — — 
Purchases221 59 — — 767 
Sales and settlements(104)(23)— — — 
Balance at December 31, 20201,220 651 29 147 767 
Actual return on plan assets:
Relating to assets still held at year-end11 96 4 23 (76)
Relating to assets sold during the year174 — — 4 — 
Purchases194 99 — — — 
Sales and settlements(263)(3)— (11)— 
Balance at December 31, 2021$1,336 $843 $33 $163 $691 
The Company enters into futures contracts to gain exposure to certain markets. Sufficient cash or cash equivalents are held by the Company's pension plans to cover the notional value of the futures contracts. At December 31, 2021 and 2020, the Company's U.S. plans had contracts with notional amounts of $4,415 million and $3,673 million. At December 31, 2021 and 2020, the Company's non-U.S. plans had contracts with notional amounts of $311 million and $564 million, respectively. In both the Company's U.S. and non-U.S. pension plans, the notional derivative exposure is related to outstanding equity and fixed income futures contracts.
Common stocks, preferred stocks, real estate investment trusts, and short-term investments are valued at the closing price reported in the active market in which the individual securities are traded. Corporate bonds, mortgages/asset-backed securities, and government securities are valued either by using pricing models, bids provided by brokers or dealers, quoted prices of securities with similar characteristics or discounted cash flows and as such include adjustments for certain risks that may not be observable such as credit and liquidity risks. Certain securities are held in collective trust funds which are valued using net asset values provided by the administrators of the funds. Investments in private equity, debt, real estate and hedge funds and direct private investments are valued at estimated fair value based on quarterly financial information received from the investment advisor and/or general partner. Investments in real estate properties are valued on a quarterly basis using the income approach. Valuation estimates are periodically supplemented by third party appraisals. The insurance buy-in contracts represent policies held by the Honeywell UK Pension Scheme, whereby the cost of providing pension benefits to plan participants is funded by the policies. The cash flows from the policies are intended to match the pension benefits. The fair value of these policies is based on an estimate of the policies' exit price.
The Company's funding policy for qualified defined benefit pension plans is to contribute amounts at least sufficient to satisfy regulatory funding standards. In 2021, 2020, and 2019, the Company was not required to make contributions to the U.S. pension plans and no contributions were made. The Company is not required to make any contributions to the U.S. pension plans in 2022. In 2021, contributions of $94 million were made to the non-U.S. pension plans to satisfy regulatory funding requirements. In 2022, the Company expects to make contributions of cash and/or marketable securities of approximately $11 million to the non-U.S. pension plans to satisfy regulatory funding standards. Contributions for both the U.S. and non-U.S. pension plans do not reflect benefits paid directly from Company assets.
Benefit payments, including amounts to be paid from Company assets, and reflecting expected future service, as appropriate, are expected to be paid as follows:
U.S. PlansNon-U.S. Plans
2022$1,135 $261 
20231,124 263 
20241,115 268 
20251,107 275 
20261,097 284 
2027-20315,152 1,455 
OTHER POSTRETIREMENT BENEFITS
 December 31,
20212020
Assumed health care cost trend rate:
Health care cost trend rate assumed for next year6.50 %7.00 %
Rate that the cost trend rate gradually declines to5.00 %5.00 %
Year that the rate reaches the rate it is assumed to remain at2029 2029 
Benefit payments reflecting expected future service, as appropriate, are expected to be paid as follows:
Without Impact of
Medicare Subsidy		Net of
Medicare Subsidy
2022$27 $25 
202325 24 
202414 14 
202514 13 
202613 12 
2027-203157 53