Pension and Other Postretirement Benefits

6 Months Ended

Jun. 30, 2011

Pension And Other Postretirement Benefits [Abstract]

Pension and Other Postretirement Benefits

Note14. Pension and Other Postretirement Benefits

       Net periodic pension and other postretirement benefits costs for our significant defined benefit plans include the following components:

Pension Benefits
		U.S. Plans
		Three Months Ended				Six Months Ended
		June 30,				June 30,
		2011		2010		2011		2010
Service cost	$	53	$	51	$	116	$	111
Interest cost		191		195		381		384
Expected return on plan assets		(254)		(226)		(507)		(451)
Amortization of prior service cost		9		11		17		16
Settlements and curtailments		9		-		24		-
	$	8	$	31	$	31	$	60
		Non-U.S. Plans
		Three Months Ended				Six Months Ended
		June 30,				June 30,
		2011		2010		2011		2010
Service cost	$	15	$	13	$	30	$	26
Interest cost		60		55		120		113
Expected return on plan assets		(72)		(59)		(143)		(118)
Amortization of transition obligation		1		-		1		-
Amortization of prior service (credit)		(1)		-		(1)		-
Settlements and curtailments		1		-		1		4
	$	4	$	9	$	8	$	25
Other Postretirement Benefits
		Three Months Ended				Six Months Ended
		June 30,				June 30,
		2011		2010		2011		2010
Service cost	$	0	$	-	$	1	$	1
Interest cost		17		19		35		43
Amortization of prior service (credit)		(9)		(8)		(22)		(18)
Recognition of actuarial losses		6		10		18		14
Settlements and curtailments		(61)		(9)		(61)		(46)
	$	(47)	$	12	$	(29)	$	(6)

In January 2011, Honeywell made a voluntary cash contribution of $1 billion to our U.S. pension plans to improve the funded status of the plans.

If required, a mark to market adjustment will be recorded in the fourth quarter of 2011 in accordance with our pension accounting method as described in Note 1 to our financial statements for the year ended December 31, 2010 contained in our Form 10-K filed on February 11, 2011.

During the second quarter of 2011, in connection with new collective bargaining agreements reached with several of its union groups, Honeywell amended its U.S. retiree medical plan eliminating the subsidy for those union employees. These plan amendments reduced the accumulated postretirement benefit obligation by $18 million which will be recognized as part of net periodic postretirement benefit cost over the average future service period to full eligibility of the remaining active union employees still eligible for a retiree medical subsidy. These plan amendments also resulted in curtailment gains totaling $61 million in the second quarter of 2011 which was included as part of net periodic postretirement benefit cost. The curtailment gains represent the recognition of previously unrecognized prior service credits attributable to the future years of service of the union groups for which future accrual of benefits has been eliminated.