PENSION AND OTHER POSTRETIREMENT BENEFITS

6 Months Ended

Jun. 30, 2013

Pension and Other Post Retirements Disclosure Paragraph Details [Abstract]

Pension and Other Postretirement Benefits

Note16. 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,
		2013		2012		2013		2012
Service cost	$	68	$	64	$	136	$	128
Interest cost		168		185		336		369
Expected return on plan assets		(268)		(255)		(536)		(510)
Amortization of prior service cost		6		7		12		14
	$	(26)	$	1	$	(52)	$	1
		Non-U.S. Plans
		Three Months Ended				Six Months Ended
		June 30,				June 30,
		2013		2012		2013		2012
Service cost	$	14	$	12	$	28	$	24
Interest cost		53		55		107		110
Expected return on plan assets		(75)		(73)		(152)		(145)
Amortization of transition obligation		1		1		1		1
Amortization of prior service (credit)		-		(1)		(1)		(1)
Settlements and curtailments		-		-		-		2
	$	(7)	$	(6)	$	(17)	$	(9)
Other Postretirement Benefits
		Three Months Ended				Six Months Ended
		June 30,				June 30,
		2013		2012		2013		2012
Service cost	$	-	$	-	$	-	$	-
Interest cost		12		13		24		27
Amortization of prior service (credit)		(2)		(4)		(3)		(7)
Recognition of actuarial losses		10		5		20		16
Settlements and curtailments		(42)		(6)		(42)		(6)
	$	(22)	$	8	$	(1)	$	30

Honeywell made cash contributions of $143 million to our non-U.S. pension plans in the first half of 2013.

During the second quarter of 2013, in connection with a new collective bargaining agreement reached with a union group, Honeywell amended its U.S. retiree medical plan eliminating the Company subsidy for these union employees.  The plan amendment resulted in a curtailment gain of $42 million in the second quarter of 2013 which was included as part of net periodic postretirement benefit cost. The curtailment gain represents the recognition of previously unrecognized prior service credits attributable to the future years of service of the union group for which future accrual of benefits has been eliminated.

If required, a mark to market adjustment will be recorded in the fourth quarter of 2013 in accordance with our pension accounting method as described in Note 1 to our financial statements for the year ended December 31, 2012 contained in our Form 10-K filed on February 15, 2013.