Pension and Other Postretirement Benefits

9 Months Ended

Sep. 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				Nine Months Ended
		September 30,				September 30,
		2011		2010		2011		2010
Service cost	$	58	$	55	$	174	$	166
Interest cost		190		192		571		576
Expected return on plan assets		(253)		(225)		(760)		(676)
Amortization of prior service cost		8		8		25		24
Settlements and curtailments		-		-		24		-
	$	3	$	30	$	34	$	90
		Non-U.S. Plans
		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2011		2010		2011		2010
Service cost	$	14	$	12	$	44	$	38
Interest cost		60		56		180		169
Expected return on plan assets		(72)		(59)		(215)		(177)
Amortization of transition obligation		-		-		1		-
Amortization of prior service (credit)		-		-		(1)		-
Settlements and curtailments		1		-		2		4
	$	3	$	9	$	11	$	34
Other Postretirement Benefits
		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2011		2010		2011		2010
Service cost	$	0	$	1	$	1	$	2
Interest cost		17		19		52		62
Amortization of prior service (credit)		(3)		(13)		(25)		(31)
Recognition of actuarial losses		10		9		28		23
Settlements and curtailments		(106)		-		(167)		(46)
	$	(82)	$	16	$	(111)	$	10

In January and September 2011, Honeywell made voluntary cash contributions of $1 billion and $400 million, respectively, to our U.S. pension plans to improve the funded status of the plans. Given lower than expected year to date asset returns and current discount rates, the Company is considering an additional $250 million cash contribution to our pension plans in the fourth quarter of 2011 and additional voluntary contributions in 2012. The timing and amount of contributions may be impacted by a number of factors, including changes in the rate of return on plan assets and discount rates.

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.

In the nine months ended September 30, 2011, in connection with new collective bargaining agreements reached with several of its union groups, Honeywell amended its U.S. retiree medical plans eliminating the subsidy for those union employees. These plan amendments resulted in curtailment gains of $61and $106million in the second quarter and third quarter of 2011, respectively, 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.