10-Q

United States

Securities and Exchange Commission

Washington, D.C. 20549

Form 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2016

OR

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______ to _____

Commission file number 1-8974

Honeywell International Inc.

(Exact name of registrant as specified in its charter)

Delaware	22-2640650
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
115 Tabor Road Morris Plains, New Jersey	07950
(Address of principal executive offices)	(Zip Code)

(973) 455-2000

(Registrant’s telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year,
if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x  No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x  No o

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a small reporting company. See definitions of “accelerated filer,” “large accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer x  Accelerated filer o  Non-Accelerated filer o  Smaller reporting company o

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes o  No x

There were 762,124,709 shares of Common Stock outstanding at September 30, 2016.

Honeywell International Inc.
Index

Part I.		Financial Information	Page No.
	Item 1.	Financial Statements:
		Consolidated Statement of Operations (unaudited) – Three and Nine Months Ended September 30, 2016 and 2015	3
		Consolidated Statement of Comprehensive Income (unaudited) – Three and Nine Months Ended September 30, 2016 and 2015	4
		Consolidated Balance Sheet (unaudited) – September 30, 2016 and December 31, 2015	5
		Consolidated Statement of Cash Flows (unaudited) – Nine Months Ended September 30, 2016 and 2015	6
		Notes to Financial Statements (unaudited)	7
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	25
	Item 3.	Quantitative and Qualitative Disclosures About Market Risks	34
	Item 4.	Controls and Procedures	35
Part II.		Other Information
	Item 1.	Legal Proceedings	36
	Item 2.	Changes in Securities and Use of Proceeds	36
	Item 5.	Other Information	36
	Item 6.	Exhibits	36
Signatures			37

Cautionary Statement about Forward-Looking Statements

This report contains “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are those that address activities, events or developments that we or our management intends, expects, projects, believes or anticipates will or may occur in the future. They are based on management’s assumptions and assessments in the light of past experience and trends, current economic and industry conditions, expected future developments and other relevant factors. They are not guarantees of future performance, and actual results, developments and business decisions may differ from those envisaged by our forward-looking statements. Our forward-looking statements are also subject to risks and uncertainties, which can affect our performance in both the near- and long-term. These forward-looking statements should be considered in the light of the information included in this report and our other filings with the Securities and Exchange Commission, including, without limitation, the Risk Factors, as well as the description of trends and other factors in Management’s Discussion and Analysis of Financial Condition and Results of Operations, set forth in our 2015 Annual Report on Form 10-K.

2

PART I. FINANCIAL INFORMATION

The financial statements and related footnotes as of September 30, 2016 should be read in conjunction with the financial statements for the year ended December 31, 2015 contained in our 2015 Annual Report on Form 10-K.

ITEM 1.  FINANCIAL STATEMENTS

Honeywell International Inc.

Consolidated Statement of Operations

(Unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
	(Dollars in millions, except per share amounts)
Product sales	$	7,744		$	7,573		$	23,398		$	22,735
Service sales		2,060			2,038			5,919			5,864
Net sales		9,804			9,611			29,317			28,599
Costs, expenses and other
Cost of products sold		5,594			5,372			16,545			16,126
Cost of services sold		1,309			1,282			3,726			3,704
		6,903			6,654			20,271			19,830
Selling, general and administrative expenses		1,367			1,202			3,976			3,674
Other (income) expense		(180	)		(24	)		(197	)		(64	)
Interest and other financial charges		82			72			252			226
		8,172			7,904			24,302			23,666
Income before taxes		1,632			1,707			5,015			4,933
Tax expense		384			431			1,214			1,289
Net income		1,248			1,276			3,801			3,644
Less: Net income attributable to the noncontrolling interest		8			12			26			70
Net income attributable to Honeywell	$	1,240		$	1,264		$	3,775		$	3,574
Earnings per share of common stock - basic	$	1.62		$	1.62		$	4.93		$	4.57
Earnings per share of common stock - assuming dilution	$	1.60		$	1.60		$	4.86		$	4.51
Cash dividends per share of common stock	$	0.5950		$	0.5175		$	1.7850		$	1.5525

The Notes to Financial Statements are an integral part of this statement.

3

Honeywell International Inc.

Consolidated Statement of Comprehensive Income

(Unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
	(Dollars in millions)
Net income	$	1,248		$	1,276		$	3,801		$	3,644
Other comprehensive income (loss), net of tax
Foreign exchange translation adjustment		35			(383	)		83			(893	)
Actuarial losses		-			-			-			(17	)
Actuarial losses recognized		4			5			11			15
Prior service credits recognized		(20	)		(1	)		(58	)		(4	)
Settlements and curtailments		-			2			-			2
Pension and other postretirement benefits adjustments		(16	)		6			(47	)		(4	)
Effective portion of cash flow hedges recognized in other comprehensive income (loss)		(7	)		(8	)		(1	)		60
Less: Reclassification adjustment for gains (losses) included in net income		(5	)		19			(18	)		77
Changes in fair value of effective cash flow hedges		(2	)		(27	)		17			(17	)
Other comprehensive income (loss), net of tax		17			(404	)		53			(914	)
Comprehensive income		1,265			872			3,854			2,730
Less: Comprehensive income attributable to the noncontrolling interest		8			8			23			66
Comprehensive income attributable to Honeywell	$	1,257		$	864		$	3,831		$	2,664

The Notes to Financial Statements are an integral part of this statement.

4

Honeywell International Inc.

Consolidated Balance Sheet

(Unaudited)

	September 30,			December 31,
	2016			2015
	(Dollars in millions)
ASSETS
Current assets:
Cash and cash equivalents	$	6,431		$	5,455
Accounts, notes and other receivables		8,627			8,075
Inventories		4,587			4,420
Investments and other current assets		2,189			2,103
Total current assets		21,834			20,053
Investments and long-term receivables		639			517
Property, plant and equipment - net		5,725			5,789
Goodwill		17,846			15,895
Other intangible assets - net		4,847			4,577
Insurance recoveries for asbestos related liabilities		433			426
Deferred income taxes		335			283
Other assets		1,897			1,776
Total assets	$	53,556		$	49,316
LIABILITIES
Current liabilities:
Accounts payable	$	5,418		$	5,580
Commercial paper and other short-term borrowings		5,601			5,937
Current maturities of long-term debt		649			577
Accrued liabilities		6,545			6,277
Total current liabilities		18,213			18,371
Long-term debt		9,608			5,554
Deferred income taxes		701			558
Postretirement benefit obligations other than pensions		477			526
Asbestos related liabilities		1,278			1,251
Other liabilities		3,905			4,348
Redeemable noncontrolling interest		3			290
SHAREOWNERS’ EQUITY
Capital - common stock issued		958			958
- additional paid-in capital		5,707			5,377
Common stock held in treasury, at cost		(13,182	)		(11,664	)
Accumulated other comprehensive loss		(2,482	)		(2,535	)
Retained earnings		28,190			26,147
Total Honeywell shareowners’ equity		19,191			18,283
Noncontrolling interest		180			135
Total shareowners’ equity		19,371			18,418
Total liabilities, redeemable noncontrolling interest and shareowners’ equity	$	53,556		$	49,316

The Notes to Financial Statements are an integral part of this statement.

5

Honeywell International Inc.

Consolidated Statement of Cash Flows

(Unaudited)

	Nine Months Ended
	September 30,
	2016			2015
	(Dollars in millions)
Cash flows from operating activities:
Net income	$	3,801		$	3,644
Less: Net income attributable to the noncontrolling interest		26			70
Net income attributable to Honeywell		3,775			3,574
Adjustments to reconcile net income attributable to Honeywell to net cash provided by operating activities:
Depreciation		546			503
Amortization		227			158
Gain on sale of non-strategic businesses and assets		(176	)		(1	)
Repositioning and other charges		567			393
Net payments for repositioning and other charges		(420	)		(329	)
Pension and other postretirement income		(471	)		(269	)
Pension and other postretirement benefit payments		(110	)		(84	)
Stock compensation expense		145			132
Deferred income taxes		146			284
Excess tax benefits from share based payment arrangements		-			(69	)
Other		(33	)		151
Changes in assets and liabilities, net of the effects of acquisitions and divestitures:
Accounts, notes and other receivables		(570	)		52
Inventories		(233	)		(20	)
Other current assets		78			(111	)
Accounts payable		(18	)		(13	)
Accrued liabilities		3			(795	)
Net cash provided by operating activities		3,456			3,556
Cash flows from investing activities:
Expenditures for property, plant and equipment		(749	)		(685	)
Proceeds from disposals of property, plant and equipment		4			3
Increase in investments		(3,083	)		(5,701	)
Decrease in investments		2,658			4,050
Cash paid for acquisitions, net of cash acquired		(2,568	)		(185	)
Proceeds from sales of businesses, net of fees paid		304			3
Other		158			(69	)
Net cash used for investing activities		(3,276	)		(2,584	)
Cash flows from financing activities:
Net (decrease) increase in commercial paper and other short-term borrowings		(425	)		2,011
Proceeds from issuance of common stock		386			150
Proceeds from issuance of long-term debt		4,510			48
Payments of long-term debt		(478	)		(148	)
Excess tax benefits from share based payment arrangements		-			69
Repurchases of common stock		(1,866	)		(1,721	)
Cash dividends paid		(1,410	)		(1,261	)
Payments to purchase the noncontrolling interest		(238	)		-
AdvanSix pre-separation funding		269			-
AdvanSix pre-spin borrowing		38			-
AdvanSix cash at spin-off		(38	)		-
Other		(40	)		(61	)
Net cash provided by (used for) financing activities		708			(913	)
Effect of foreign exchange rate changes on cash and cash equivalents		88			(455	)
Net increase (decrease) in cash and cash equivalents		976			(396	)
Cash and cash equivalents at beginning of period		5,455			6,959
Cash and cash equivalents at end of period	$	6,431		$	6,563

The Notes to Financial Statements are an integral part of this statement.

6

Honeywell International Inc.

Notes to Financial Statements

(Unaudited)

(Dollars in millions, except per share amounts)

Note 1. Basis of Presentation

In the opinion of management, the accompanying unaudited consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, necessary to present fairly the financial position of Honeywell International Inc. and its consolidated subsidiaries (Honeywell or the Company) at September 30, 2016, the results of operations for the quarter and nine months ended September 30, 2016 and 2015 and the cash flows for the nine months ended September 30, 2016 and 2015. The results of operations for the three and nine months ended September 30, 2016 should not necessarily be taken as indicative of the results of operations expected for the entire year.

We report our quarterly financial information using a calendar convention; the first, second and third quarters are consistently reported as ending on March 31, June 30 and September 30. It has been our practice to establish actual quarterly closing dates using a predetermined fiscal calendar, which requires our businesses to close their books on a Saturday in order to minimize the potentially disruptive effects of quarterly closing on our business processes. The effects of this practice are generally not significant to reported results for any quarter and only exist within a reporting year. In the event that differences in actual closing dates are material to year-over-year comparisons of quarterly or year-to-date results, we will provide appropriate disclosures. Our actual closing dates for the three and nine months ended September 30, 2016 and 2015 were October 1, 2016 and September 26, 2015.

Note 2. Recent Accounting Pronouncements

Accounting pronouncements not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on our consolidated financial position or results of operations.

In May 2014, and in subsequent related updates and amendments, the Financial Accounting Standards Board (FASB) issued guidance on revenue from contracts with customers that will supersede most current revenue recognition guidance, including industry-specific guidance. The underlying principle is that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. The guidance provides a five-step analysis of transactions to determine when and how revenue is recognized. Other major provisions include capitalization of certain contract costs, consideration of the time value of money in the transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. The guidance also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. The effective date was deferred for one year to the interim and annual periods beginning on or after December 15, 2017. Early adoption is permitted as of the original effective date – interim and annual periods beginning on or after December 15, 2016. The guidance permits the use of either a retrospective or cumulative effect transition method. We have not yet selected a transition method and are currently evaluating the impact of the amended guidance on our consolidated financial position, results of operations and related disclosures.

In February 2016, the FASB issued guidance on accounting for leases which requires lessees to recognize most leases on their balance sheets for the rights and obligations created by those leases. The guidance requires enhanced disclosures regarding the amount, timing, and uncertainty of cash flows arising from leases and will be effective for interim and annual periods beginning after December 15, 2018. Early adoption is permitted. The guidance requires the use of a modified retrospective approach. We are evaluating the impact of the guidance on our consolidated financial position, results of operations and related disclosures.

In March 2016, the FASB issued amended guidance related to employee share-based payment accounting.  The guidance requires all income tax effects of awards to be recognized in the income statement, which were previously presented as a component of Shareowners’ Equity, on a prospective basis.  The guidance also requires presentation of excess tax benefits as an operating activity on the statement of cash flows rather than as a financing activity.  We have elected to early adopt the standard in the quarter ended September 30,

7

Honeywell International Inc.

Notes to Financial Statements

(Unaudited)

(Dollars in millions, except per share amounts)

2016, which requires adoption effective as of the beginning of the fiscal year.  The primary impact of adoption was the recognition of excess tax benefits as a reduction in the provision for income taxes and related diluted earnings per share impacts of $30 million ($0.03 diluted earnings per share) for the quarter ended March 31, 2016, $38 million ($0.04 diluted earnings per share) for the quarter ended June 30, 2016 and $57 million ($0.07 diluted earnings per share) for the quarter ended September 30, 2016. These excess tax benefits previously reported in financing activities in the Consolidated Statement of Cash Flows are now reported as operating activities. Cash paid by the Company when directly withholding shares for tax-withholding purposes are classified as a financing activity on a retrospective basis.

The guidance allows for an accounting policy election to estimate the number of awards that are expected to vest or account for forfeitures when they occur. We elected to maintain the current forfeitures policy and will continue to include an estimate of those forfeitures when recognizing stock compensation expense. Classification of the excess tax benefits in the Consolidated Statement of Cash Flows are presented on a prospective basis starting January 1, 2016.

In August 2016, the FASB issued new guidance intended to reduce diversity in practice in how certain cash receipts and payments are classified in the statement of cash flows, including debt prepayment or extinguishment costs, the settlement of contingent liabilities arising from a business combination, proceeds from insurance settlements, and distributions from certain equity method investees. The guidance is effective for interim and annual periods beginning after December 15, 2017, and early adoption is permitted. The guidance requires application using a retrospective transition method. The Company is currently evaluating the impact of adopting this guidance.

Note 3. Acquisitions and Divestitures

During the quarter and nine months we acquired businesses for an aggregate cost (net of cash acquired and debt assumed) of $1,483 million and $2,532 million.

On August 29, 2016, the Company acquired Intelligrated, a leading provider of supply chain and warehouse automation technologies, for an aggregate value, net of cash acquired, of approximately $1,483 million. Intelligrated is part of Safety and Productivity Solutions. The preliminary determination of the assets and liabilities acquired with Intelligrated have been included in the Consolidated Balance Sheet as of September 30, 2016, including $1,124 million allocated to goodwill, which is non-deductible for tax purposes.

In December 2015, the Company acquired the Elster Division of Melrose Industries plc (Elster) for an aggregate value, net of cash acquired, of approximately $4,899 million. Elster is part of Home and Building Technologies and Performance Materials and Technologies. The following table summarizes the updated fair value estimates of the Elster assets and liabilities acquired as of the acquisition date:

Current assets	$	522
Intangible assets		2,160
Other noncurrent assets		194
Current liabilities		(456	)
Noncurrent liabilities		(919	)
Net assets acquired		1,501
Noncontrolling interest		(3	)
Goodwill		3,401
Purchase Price	$	4,899

The purchase accounting for Elster and Intelligrated is subject to final adjustment, primarily for the valuation of intangible assets, amounts allocated to goodwill, tax balances and certain pre-acquisition contingencies.

8

Honeywell International Inc.

Notes to Financial Statements

(Unaudited)

(Dollars in millions, except per share amounts)

On October 1, 2016 the Company completed the tax-free spin-off of its Resins and Chemicals business, part of Performance Materials and Technologies, into a standalone, publicly-traded company (named AdvanSix) to Honeywell shareowners. Since the effective date of the spin-off falls within the fiscal third quarter, the assets and liabilities associated with AdvanSix have been removed from the Company’s third quarter Consolidated Balance Sheet. The results of operations for AdvanSix are included in the Consolidated Statement of Operations through the effective date of the spin-off. See Note 1 Basis of Presentation of Notes to Financial Statements for further discussion of the Company’s actual quarterly closing date convention.

Honeywell shareowners of record as of the close of business on September 16, 2016 received one share of AdvanSix common stock for every 25 shares of Honeywell common stock. Immediately prior to the effective date of the spin-off, AdvanSix incurred debt to make a cash distribution of $269 million to the Company. At the same time, AdvanSix also incurred $38 million of borrowings in order to fund its post spin-off working capital.

The Company entered into certain agreements with AdvanSix to effect our legal and structural separation including a transition services agreement with AdvanSix to provide certain administrative and other services for a limited time.

On September 16, 2016 the Company completed the sale of Honeywell Technology Solutions Inc. for a sale price of $300 million. The Company recognized a pre-tax gain of $176 million. The Honeywell Technology Solutions business was part of Aerospace.

Note 4. Repositioning and Other Charges

A summary of repositioning and other charges follows:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
		2016			2015			2016		2015
Severance	$	155		$	63		$	253		$	138
Asset impairments		11			1			42			9
Exit costs		36			1			41			3
Reserve adjustments		(31	)		(31	)		(92	)		(43	)
Total net repositioning charge		171			34			244			107
Asbestos related litigation charges, net of insurance		64			50			173			142
Probable and reasonably estimable environmental liabilities		49			49			132			144
Other		18			-			18			-
Total net repositioning and other charges	$	302		$	133		$	567		$	393

The following table summarizes the pretax distribution of total net repositioning and other charges by income statement classification:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2016		2015		2016		2015
Cost of products and services sold	$	226	$	129	$	410	$	363
Selling, general and administrative expenses		53		4		110		30
Other (income) expense		23		-		47		-
	$	302	$	133	$	567	$	393

9

Honeywell International Inc.

Notes to Financial Statements

(Unaudited)

(Dollars in millions, except per share amounts)

The following table summarizes the pretax impact of total net repositioning and other charges by segment:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2016		2015		2016		2015
Aerospace	$	144	$	38	$	265	$	134
Home and Building Technologies		24		12		36		38
Performance Materials and Technologies		35		9		71		30
Safety and Productivity Solutions		10		16		4		29
Corporate		89		58		191		162
	$	302	$	133	$	567	$	393

In the quarter ended September 30, 2016, we recognized a repositioning charge totaling $202 million including severance costs of $155 million related to workforce reductions of 3,017 manufacturing and administrative positions across our segments. The workforce reductions were primarily related to the separation of the former Automation and Control Solutions reporting segment into two new reporting segments (Home and Building Technologies and Safety and Productivity Solutions); factory transitions in Aerospace, Home and Building Technologies, Safety and Productivity Solutions and Performance Materials and Technologies to more cost-effective locations; and cost savings actions taken in connection with our productivity and ongoing functional transformation initiatives. The repositioning charge included exit costs of $36 million principally for expenses related to the spin-off of our AdvanSix business and closure obligations associated with factory transitions. Also, $31 million of previously established accruals for severance were returned to income as a result of higher attrition than anticipated in prior severance programs resulting in lower required severance payments, and changes in the scope of previously announced repositioning actions.

In the quarter ended September 30, 2015, we recognized a repositioning charge totaling $65 million primarily for severance costs related to workforce reductions of 902 manufacturing and administrative positions across our segments. The workforce reductions were primarily related to cost savings actions taken in connection with our productivity and ongoing functional transformation initiatives. Also, $31 million of previously established accruals for severance were returned to income as a result of higher attrition than anticipated in prior severance programs resulting in lower required severance payments, and changes in the scope of previously announced repositioning actions.

In the nine months ended September 30, 2016, we recognized a repositioning charge totaling $336 million including severance costs of $253 million related to workforce reductions of 5,888 manufacturing and administrative positions across our segments. The workforce reductions were primarily related to cost savings actions taken in connection with our productivity and ongoing functional transformation initiatives; the separation of the former Automation and Control Solutions reporting segment into two new reporting segments; factory transitions in Aerospace, Home and Building Technologies, Safety and Productivity Solutions and Performance Materials and Technologies to more cost-effective locations; and achieving acquisition-related synergies. The repositioning charge included asset impairments of $42 million principally related to the write-off of certain intangible assets in connection with the sale of a Performance Materials and Technologies business. The repositioning charge included exit costs of $41 million principally for expenses related to the spin-off of our AdvanSix business and closure obligations associated with factory transitions. Also, $92 million of previously established accruals, primarily for severance, were returned to income as a result of higher attrition than anticipated in prior severance programs resulting in lower required severance payments, lower than expected severance costs in certain repositioning actions, and changes in the scope of previously announced repositioning actions.

In the nine months ended September 30, 2015, we recognized a repositioning charge totaling $150 million primarily for severance costs related to workforce reductions of 4,882 manufacturing and administrative positions across our segments. The workforce reductions were primarily related to cost savings actions taken in connection with our productivity and ongoing functional transformation initiatives and outsourcing of certain component manufacturing in Home and Building Technologies. Also, $43 million of previously established

10

Honeywell International Inc.

Notes to Financial Statements

(Unaudited)

(Dollars in millions, except per share amounts)

accruals, primarily for severance, were returned to income as a result of higher attrition than anticipated in prior severance programs resulting in lower required severance payments, and changes in the scope of previously announced repositioning actions.

The following table summarizes the status of our total repositioning reserves:

	Severance			Asset			Exit
	Costs			Impairments			Costs			Total
December 31, 2015	$	329		$	-		$	21		$	350
Charges		253			42			41			336
Usage - cash		(135	)		-			(8	)		(143	)
Usage - noncash		(6	)		(42	)		-			(48	)
Foreign currency translation		7			-			-			7
Adjustments		(91	)		-			(1	)		(92	)
September 30, 2016	$	357		$	-		$	53		$	410

Certain repositioning projects in 2016 and 2015 included exit or disposal activities, the costs related to which will be recognized in future periods when the actual liability is incurred. Such exit and disposal costs are not expected to be significant.

Note 5. Earnings Per Share

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
Basic	2016		2015		2016		2015
Net income attributable to Honeywell	$	1,240	$	1,264	$	3,775	$	3,574
Weighted average shares outstanding		763.7		780.4		765.0		782.5
Earnings per share of common stock	$	1.62	$	1.62	$	4.93	$	4.57

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
Assuming Dilution	2016		2015		2016		2015
Net income attributable to Honeywell	$	1,240	$	1,264	$	3,775	$	3,574
Average Shares
Weighted average shares outstanding		763.7		780.4		765.0		782.5
Dilutive securities issuable - stock plans		10.7		9.1		11.3		9.6
Total weighted average shares outstanding		774.4		789.5		776.3		792.1
Earnings per share of common stock	$	1.60	$	1.60	$	4.86	$	4.51

The diluted earnings per share calculations exclude the effect of stock options when the options’ assumed proceeds exceed the average market price of the common shares during the period. For the three and nine months ended September 30, 2016, the weighted average number of stock options excluded from the computations were 5.5 million and 6.9 million. For the three and nine months ended September 30, 2015, the weighted average number of stock options excluded from the computations were 7.0 million and 7.3 million. These stock options were outstanding at the end of each period.

11

Honeywell International Inc.

Notes to Financial Statements

(Unaudited)

(Dollars in millions, except per share amounts)

Note 6. Accounts, Notes and Other Receivables

	September 30,			December 31,
	2016			2015
Trade	$	8,333		$	7,901
Other		583			436
		8,916			8,337
Less: Allowance for doubtful accounts		(289	)		(262	)
	$	8,627		$	8,075

Trade receivables include $1,642 and $1,590 million of unbilled balances under long-term contracts as of September 30, 2016 and December 31, 2015. These amounts are billed in accordance with the terms of customer contracts to which they relate.

Note 7. Inventories

	September 30,			December 31,
	2016			2015
Raw materials	$	1,160		$	1,120
Work in process		799			826
Finished products		2,693			2,590
		4,652			4,536
Reduction to LIFO cost basis		(65	)		(116	)
	$	4,587		$	4,420

Note 8. Property, Plant and Equipment - Net

	September 30,			December 31,
	2016			2015
Land and improvements	$	380		$	367
Machinery and equipment		9,872			10,505
Buildings and improvements		3,391			3,188
Construction in progress		965			848
		14,608			14,908
Less—Accumulated depreciation		(8,883	)		(9,119	)
	$	5,725		$	5,789

12

Honeywell International Inc.

Notes to Financial Statements

(Unaudited)

(Dollars in millions, except per share amounts)

Note 9. Goodwill

The change in the carrying amount of goodwill for the nine months ended September 30, 2016 by segment is as follows:

						Currency
	December 31,		Acquisitions/			Translation			September 30,
	2015		Divestitures			Adjustment			2016
Aerospace	$	2,296	$	184		$	(19	)	$	2,461
Home and Building Technologies		6,438		673			20			7,131
Performance Materials and Technologies		3,771		(136	)		41			3,676
Safety and Productivity Solutions		3,390		1,178			10			4,578
	$	15,895	$	1,899		$	52		$	17,846

13

Honeywell International Inc.

Notes to Financial Statements

(Unaudited)

(Dollars in millions, except per share amounts)

Note 10. Long-term Debt and Credit Agreements

	September 30,			December 31,
	2016			2015
5.40% notes due 2016	$	-		$	400
5.30% notes due 2017		400			400
Floating rate Euro notes due 2018		1,116			-
5.30% notes due 2018		900			900
5.00% notes due 2019		900			900
0.65% Euro notes due 2020		1,116			-
4.25% notes due 2021		800			800
1.30% Euro notes due 2023		1,395			-
3.35% notes due 2023		300			300
2.25% Euro notes due 2028		837			-
5.70% notes due 2036		550			550
5.70% notes due 2037		600			600
5.375% notes due 2041		600			600
Industrial development bond obligations, floating rate maturing at various dates through 2037		30			30
6.625% debentures due 2028		216			216
9.065% debentures due 2033		51			51
Other (including capitalized leases and debt issuance costs), 0.6%-9.5% maturing at various dates through 2023		446			384
		10,257			6,131
Less: current portion		(649	)		(577	)
	$	9,608		$	5,554

In February 2016, the Company issued €1,000 million Floating Rate Senior Notes due 2018, €1,000 million 0.65% Senior Notes due 2020, €1,250 million 1.30% Senior Notes due 2023 and €750 million 2.25% Senior Notes due 2028 (collectively, the “Euro Notes”). The Euro Notes are senior unsecured and unsubordinated obligations of Honeywell and rank equally with all of Honeywell’s existing and future senior unsecured debt and senior to all of Honeywell’s subordinated debt. The offering resulted in gross proceeds of $4,438 million, offset by $17 million in discount and closing costs related to the offering.

On April 29, 2016, the Company entered into Amendment No. 2 (Amendment) to the Amended and Restated $4 billion Credit Agreement dated as of July 10, 2015, as amended by the certain Amendment No. 1 dated as of September 30, 2015 (as so amended, the “Credit Agreement”), with a syndicate of banks. The Credit Agreement is maintained for general corporate purposes. Commitments under the Credit Agreement can be increased pursuant to the terms of the Credit Agreement to an aggregate amount not to exceed $4.5 billion. The Amendment, among other things, extends the Credit Agreement’s termination date from July 10, 2020 to July 10, 2021.

On April 29, 2016, the Company entered into a $1.5 billion 364-Day Credit Agreement (364-Day Credit Agreement) with a syndicate of banks. The 364-Day Credit Agreement is maintained for general corporate purposes.

On April 29, 2016, the Company terminated all commitments under the $3 billion credit agreement dated as of September 30, 2015, among the Company, the lenders party thereto and Citibank, N.A., as administrative agent.

A full description of the Credit Agreement and the 364-Day Credit Agreement can be found in the Company’s Current Report on Form 8-K, dated April 29, 2016.

14

Honeywell International Inc.
Notes to Financial Statements
(Unaudited)
(Dollars in millions, except per share amounts)

On August 5, 2016, the Company entered into a $1.5 billion 364-Day Credit Agreement (Second 364-Day Credit Agreement) with a syndicate of banks. The Second 364-Day Credit Agreement is maintained for general corporate purposes.

A full description of the Second 364-day Credit Agreement can be found in the Company’s Current Report on Form 8-K, dated August 5, 2016.

There have been no borrowings under any of the credit agreements previously described.

Note 11. Financial Instruments and Fair Value Measures

Our credit, market, foreign currency and interest rate risk management policies are described in Note 14, Financial Instruments and Fair Value Measures, of Notes to Financial Statements in our 2015 Annual Report on Form 10-K.

The following table sets forth the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis:

	September 30, 2016		December 31, 2015
Assets:
Foreign currency exchange contracts	$	51	$	28
Available for sale investments		1,823		1,501
Interest rate swap agreements		115		92
Liabilities:
Foreign currency exchange contracts	$	30	$	17

The foreign currency exchange contracts and interest rate swap agreements are valued using broker quotations or market transactions in either the listed or over-the-counter markets. These derivative instruments are classified within level 2. The Company holds investments in certificates of deposits, time deposits and commercial paper that are designated as available for sale and are valued using published prices based on observable market data. These investments are classified within level 2. The Company also holds available for sale investments in U.S. government and corporate debt securities valued utilizing published prices based on quoted market pricing, which are classified within level 1.

The carrying value of cash and cash equivalents, trade accounts and notes receivables, payables, commercial paper and short-term borrowings contained in the Consolidated Balance Sheet approximates fair value. The following table sets forth the Company’s financial assets and liabilities that were not carried at fair value:

	September 30, 2016				December 31, 2015
	Carrying Value		Fair Value		Carrying Value		Fair Value
Assets
Long-term receivables	$	281	$	272	$	292	$	283
Liabilities
Long-term debt and related current maturities	$	10,257	$	11,357	$	6,131	$	6,721

The Company determined the fair value of the long-term receivables by discounting based upon the terms of the receivable and counterparty details including credit quality. The fair value of these receivables is considered level 2. The Company determined the fair value of the long-term debt and related current maturities utilizing transactions in the listed markets for identical or similar liabilities. The fair value of the long-term debt and related current maturities is also considered level 2.

15

Honeywell International Inc.
Notes to Financial Statements
(Unaudited)
(Dollars in millions, except per share amounts)

Interest rate swap agreements are designated as hedge relationships with gains or losses on the derivative recognized in Interest and other financial charges offsetting the gains and losses on the underlying debt being hedged. For the three and nine months ended September 30, 2016, we recognized $14 million of losses and $23 million of gains in earnings on interest rate swap agreements. For the three and nine months ended September 30, 2015, we recognized $24 million and $11 million of gains in earnings on interest rate swap agreements. Gains and losses are fully offset by losses and gains on the underlying debt being hedged.

We also economically hedge our exposure to changes in foreign exchange rates principally with forward contracts. These contracts are marked-to-market with the resulting gains and losses recognized in earnings offsetting the gains and losses on the non-functional currency denominated monetary assets and liabilities being hedged. We recognized $24 million and $114 million of income in Other (Income) Expense for the three and nine months ended September 30, 2016. We recognized $72 million of income and $66 million of expense in Other (Income) Expense for the three and nine months ended September 30, 2015.

Note 12. Accumulated Other Comprehensive Income (Loss)

Changes in Accumulated Other Comprehensive Income by Component

	Foreign Exchange Translation Adjustment			Pension and Other Postretirement Benefits Adjustments			Changes in Fair Value of Effective Cash Flow Hedges			Total
Balance at December 31, 2015	$	(1,892	)	$	(644	)	$	1		$	(2,535	)
Other comprehensive income (loss) before reclassifications		83			-			(1	)		82
Amounts reclassified from accumulated other comprehensive income (loss)		-			(47	)		18			(29	)
Net current period other comprehensive income (loss)		83			(47	)		17			53
Balance at September 30, 2016	$	(1,809	)	$	(691	)	$	18		$	(2,482	)
	Foreign Exchange Translation Adjustment			Pension and Other Postretirement Benefits Adjustments			Changes in Fair Value of Effective Cash Flow Hedges			Total
Balance at December 31, 2014	$	(740	)	$	(728	)	$	9		$	(1,459	)
Other comprehensive income (loss) before reclassifications		(893	)		(17	)		60			(850	)
Amounts reclassified from accumulated other comprehensive income (loss)		-			13			(77	)		(64	)
Net current period other comprehensive income (loss)		(893	)		(4	)		(17	)		(914	)
Balance at September 30, 2015	$	(1,633	)	$	(732	)	$	(8	)	$	(2,373	)

16

Honeywell International Inc.
Notes to Financial Statements
(Unaudited)
(Dollars in millions, except per share amounts)

Note 13. Segment Financial Data

We globally manage our business operations through four reportable operating segments. Segment information is consistent with how management reviews the businesses, makes investing and resource allocation decisions and assesses operating performance.

Honeywell’s senior management evaluates segment performance based on segment profit. Segment profit is measured as business unit income (loss) before taxes excluding general corporate unallocated expense, other income (expense), interest and other financial charges, pension and other postretirement income (expense), stock compensation expense, repositioning and other charges.

In July 2016, the Company announced that it is realigning the business units comprising its Automation and Control Solutions reporting segment by forming two new reportable operating segments: Home and Building Technologies and Safety and Productivity Solutions. Home and Building Technologies includes Environmental & Energy Solutions, Security and Fire, and Building Solutions and Distribution. Additionally, the Industrial Combustion/Thermal business, previously part of Environmental & Energy Solutions in Automation and Control Solutions, became part of Performance Materials and Technologies. Safety and Productivity Solutions includes Sensing & Productivity Solutions and Industrial Safety, as well as the Intelligrated business. Under the realigned segment reporting structure, the Company has four reportable operating segments: Aerospace, Home and Building Technologies, Performance Materials and Technologies and Safety and Productivity Solutions. Effective with the quarter ended September 30, 2016 the Company has reported its financial performance based on this realignment.

These realignments have no impact on the Company’s historical consolidated financial position, results of operations or cash flows. Prior period amounts have been reclassified to conform to current period segment presentation.

17

Honeywell International Inc.
Notes to Financial Statements
(Unaudited)
(Dollars in millions, except per share amounts)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
Net Sales
Aerospace
Products	$	2,358		$	2,557		$	7,404		$	7,643
Services		1,243			1,263			3,681			3,611
Total		3,601			3,820			11,085			11,254
Home and Building Technologies
Products		2,360			2,020			6,931			5,825
Services		341			293			923			861
Total		2,701			2,313			7,854			6,686
Performance Materials and Technologies
Products		1,924			1,810			5,822			5,784
Services		405			469			1,222			1,353
Total		2,329			2,279			7,044			7,137
Safety and Productivity Solutions
Products		1,102			1,186			3,241			3,483
Services		71			13			93			39
Total		1,173			1,199			3,334			3,522
	$	9,804		$	9,611		$	29,317		$	28,599
Segment Profit
Aerospace	$	663		$	833		$	2,252		$	2,362
Home and Building Technologies		441			408			1,213			1,088
Performance Materials and Technologies		503			474			1,484			1,517
Safety and Productivity Solutions		172			193			495			565
Corporate		(59	)		(56	)		(157	)		(156	)
Total segment profit		1,720			1,852			5,287			5,376
Other income (expense)(a)		169			15			174			39
Interest and other financial charges		(82	)		(72	)		(252	)		(226	)
Stock compensation expense(b)		(49	)		(41	)		(145	)		(132	)
Pension ongoing income(b)		146			96			447			299
Other postretirement income (expense)(b)		7			(10	)		24			(30	)
Repositioning and other charges (b)		(279	)		(133	)		(520	)		(393	)
Income before taxes	$	1,632		$	1,707		$	5,015		$	4,933

(a)	Equity income (loss) of affiliated companies is included in segment profit.
(b)	Amounts included in cost of products and services sold and selling, general and administrative expenses.

18

Honeywell International Inc.
Notes to Financial Statements
(Unaudited)
(Dollars in millions, except per share amounts)

Note 14. Pension Benefits

Net periodic pension benefit income for our significant defined benefit plans include the following components:

	U.S. Plans
	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
Service cost	$	48		$	58		$	143		$	172
Interest cost		150			179			450			535
Expected return on plan assets		(306	)		(321	)		(918	)		(962	)
Amortization of prior service (credit) cost		(11	)		5			(33	)		17
Settlements and curtailments		-			8			-			8
	$	(119	)	$	(71	)	$	(358	)	$	(230	)
	Non-U.S. Plans
	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
Service cost	$	11		$	13		$	36		$	39
Interest cost		43			44			137			133
Expected return on plan assets		(92	)		(91	)		(291	)		(270	)
Amortization of transition obligation		-			1			-			1
Amortization of prior service (credit)		-			(1	)		(2	)		(2	)
Settlements and curtailments		-			2			-			2
	$	(38	)	$	(32	)	$	(120	)	$	(97	)

Note 15. Commitments and Contingencies

Environmental Matters

Our environmental matters are described in Note 19 Commitments and Contingencies of Notes to Financial Statements in our 2015 Annual Report on Form 10-K.

The following table summarizes information concerning our recorded liabilities for environmental costs:

December 31, 2015	$	518
Accruals for environmental matters deemed probable and reasonably estimable		132
Environmental liability payments		(144	)
Other		(4	)
September 30, 2016	$	502

19

Honeywell International Inc.
Notes to Financial Statements
(Unaudited)
(Dollars in millions, except per share amounts)

Environmental liabilities are included in the following balance sheet accounts:

	September 30, 2016		December 31, 2015
Accrued liabilities	$	251	$	253
Other liabilities		251		265
	$	502	$	518

We do not currently possess sufficient information to reasonably estimate the amounts of environmental liabilities to be recorded upon future completion of studies, litigation or settlements, and neither the timing nor the amount of the ultimate costs associated with environmental matters can be determined although they could be material to our consolidated results of operations and operating cash flows in the periods recognized or paid. However, considering our past experience and existing reserves, we do not expect that environmental matters will have a material adverse effect on our consolidated financial position.

Onondaga Lake, Syracuse, NY—We are implementing a combined dredging/capping remedy of Onondaga Lake pursuant to a consent decree approved by the United States District Court for the Northern District of New York in January 2007. We have accrued for our estimated cost of remediating Onondaga Lake based on currently available information and analysis performed by our engineering consultants. Honeywell is also conducting remedial investigations and activities at other sites in Syracuse. We have recorded reserves for these investigations and activities where appropriate, consistent with the accounting policy described above.

Honeywell has entered into a cooperative agreement with potential natural resource trustees to assess alleged natural resource damages relating to this site. It is not possible to predict the outcome or duration of this assessment, or the amounts of, or responsibility for, any damages.

Asbestos Matters

Honeywell is a defendant in asbestos related personal injury actions related to two predecessor companies:

·	North American Refractories Company (NARCO), which was sold in 1986, produced refractory products (bricks and cement used in high temperature applications). Claimants consist largely of individuals who allege exposure to NARCO asbestos-containing refractory products in an occupational setting.
·	Bendix Friction Materials (Bendix) business, which was sold in 2014, manufactured automotive brake parts that contained chrysotile asbestos in an encapsulated form. Claimants consist largely of individuals who allege exposure to asbestos from brakes from either performing or being in the vicinity of individuals who performed brake replacements.
	The following tables summarize information concerning NARCO and Bendix asbestos related balances:

Asbestos Related Liabilities
	Bendix			NARCO			Total
December 31, 2015	$	622		$	921		$	1,543
Accrual for update to estimated liability		170			7			177
Asbestos related liability payments		(143	)		(7	)		(150	)
September 30, 2016	$	649		$	921		$	1,570

20

Honeywell International Inc.
Notes to Financial Statements
(Unaudited)
(Dollars in millions, except per share amounts)

Insurance Recoveries for Asbestos Related Liabilities
	Bendix			NARCO			Total
December 31, 2015	$	124		$	325		$	449
Probable insurance recoveries related to estimated liability		16			-			16
Insurance receivables settlements		8			-			8
Insurance receipts for asbestos related liabilities		(14	)		(3	)		(17	)
September 30, 2016	$	134		$	322		$	456

NARCO and Bendix asbestos related balances are included in the following balance sheet accounts: 

	September 30, 2016		December 31, 2015
Other current assets	$	23	$	23
Insurance recoveries for asbestos related liabilities		433		426
	$	456	$	449
Accrued liabilities	$	292	$	292
Asbestos related liabilities		1,278		1,251
	$	1,570	$	1,543

NARCO Products –In connection with NARCO’s emergence from bankruptcy on April 30, 2013, a federally authorized 524(g) trust (NARCO Trust) was established for the evaluation and resolution of all existing and future NARCO asbestos claims. Both Honeywell and NARCO are protected by a permanent channeling injunction barring all present and future individual actions in state or federal courts and requiring all asbestos related claims based on exposure to NARCO asbestos-containing products to be made against the NARCO Trust. The NARCO Trust reviews submitted claims and determines award amounts in accordance with established Trust Distribution Procedures approved by the Bankruptcy Court which set forth the criteria claimants must meet to qualify for compensation including, among other things, exposure and medical criteria that determine the award amount. In addition, Honeywell provided, and continues to provide, input to the design of control procedures for processing NARCO claims, and has on-going audit rights to review and monitor the claims processors’ adherence to the established requirements of the Trust Distribution Procedures.

Honeywell is obligated to fund NARCO asbestos claims submitted to the NARCO Trust which qualify for payment under the Trust Distribution Procedures (Annual Contribution Claims), subject to annual caps of $140 million in the years 2016 through 2018 and $145 million for each year thereafter. However, the initial $100 million of claims processed through the NARCO Trust (the Initial Claims Amount) will not count against the annual cap and any unused portion of the Initial Claims Amount will roll over to subsequent years until fully utilized. In 2015, Honeywell filed suit against the NARCO Trust in Bankruptcy Court alleging breach of certain provisions of the Trust Agreement and Trust Distribution Procedures. The parties agreed to dismiss the proceeding without prejudice pursuant to an 18 month Standstill Agreement. Claims processing will continue during this period subject to a defined dispute resolution process. As of September 30, 2016, Honeywell has not made any payments to the NARCO Trust for Annual Contribution Claims.

Honeywell is also responsible for payments due to claimants pursuant to settlement agreements reached during the pendency of the NARCO bankruptcy proceedings that provide for the right to submit claims to the NARCO Trust subject to qualification under the terms of the settlement agreements and Trust Distribution Procedures criteria (Pre-established Unliquidated Claims), which amounts are estimated at $150 million and are expected to be paid during the initial years of trust operations ($5 million of which has been paid since the effective date of the NARCO Trust). Such payments are not subject to the annual cap described above.

Our consolidated financial statements reflect an estimated liability for pre-established unliquidated claims ($145 million), unsettled claims pending as of the time NARCO filed for bankruptcy protection ($33 million) and for the estimated value of future NARCO asbestos claims expected to be asserted against the NARCO Trust through

21

Honeywell International Inc.
Notes to Financial Statements
(Unaudited)
(Dollars in millions, except per share amounts)

2018 ($743 million). In the absence of actual trust experience on which to base the estimate, Honeywell projected the probable value of asbestos related future liabilities, including trust claim handling costs, based on a commonly accepted methodology used by numerous bankruptcy courts addressing 524(g) trusts. Some critical assumptions underlying this methodology include claims filing rates, disease criteria and payment values contained in the Trust Distribution Procedures, estimated approval rates of claims submitted to the NARCO Trust and epidemiological studies estimating disease instances. This projection resulted in a range of estimated liability of $743 million to $961 million. We believe that no amount within this range is a better estimate than any other amount and accordingly, we have recorded the minimum amount in the range. In light of the uncertainties inherent in making long-term projections and in connection with the recent implementation of the Trust Distribution Procedures by the NARCO Trust, as well as the stay of all NARCO asbestos claims which remained in place throughout NARCO’s Chapter 11 case, we do not believe that we have a reasonable basis for estimating NARCO asbestos claims beyond 2018.

Our insurance receivable corresponding to the estimated liability for pending and future NARCO asbestos claims reflects coverage which reimburses Honeywell for portions of NARCO-related indemnity and defense costs and is provided by a large number of insurance policies written by dozens of insurance companies in both the domestic insurance market and the London excess market. We conduct analyses to estimate the probable amount of insurance that is recoverable for asbestos claims. While the substantial majority of our insurance carriers are solvent, some of our individual carriers are insolvent, which has been considered in our analysis of probable recoveries. We made judgments concerning insurance coverage that we believe are reasonable and consistent with our historical dealings and our knowledge of any pertinent solvency issues surrounding insurers.

Projecting future events is subject to many uncertainties that could cause the NARCO-related asbestos liabilities or assets to be higher or lower than those projected and recorded. Given the uncertainties, we review our estimates periodically, and update them based on our experience and other relevant factors. Similarly, we will reevaluate our projections concerning our probable insurance recoveries in light of any changes to the projected liability or other developments that may impact insurance recoveries.

Friction Products—The following tables present information regarding Bendix related asbestos claims activity:

	Nine Months Ended September 30,			Years Ended December 31,
Claims Activity	2016			2015			2014
Claims Unresolved at the beginning of period		7,779			9,267			12,302
Claims Filed		2,081			2,862			3,694
Claims Resolved (1)		(2,066	)		(4,350	)		(6,729	)
Claims Unresolved at the end of period		7,794			7,779			9,267

(1) Claims resolved in 2014 include 2,110 cancer claims which were determined to have no value. Also, claims resolved in 2015 and 2014 include significantly aged (i.e., pending for more than six years) claims totaling 153 and 1,266.

	September 30,		December 31,
Disease Distribution of Unresolved Claims	2016		2015		2014
Mesothelioma and Other Cancer Claims		3,559		3,772		3,933
Nonmalignant Claims		4,235		4,007		5,334
Total Claims		7,794		7,779		9,267

22

Honeywell International Inc.

Notes to Financial Statements

(Unaudited)

(Dollars in millions, except per share amounts)

Honeywell has experienced average resolution values per claim excluding legal costs as follows:

	Years Ended December 31,
	2015		2014		2013		2012		2011
	(in whole dollars)
Malignant claims	$	44,000	$	53,500	$	51,000	$	49,000	$	48,000
Nonmalignant claims	$	100	$	120	$	850	$	1,400	$	1,000

It is not possible to predict whether resolution values for Bendix-related asbestos claims will increase, decrease or stabilize in the future.

Our consolidated financial statements reflect an estimated liability for resolution of pending (claims actually filed as of the financial statement date) and future Bendix-related asbestos claims. We have valued Bendix pending and future claims using average resolution values for the previous five years. We update the resolution values used to estimate the cost of Bendix pending and future claims during the fourth quarter each year.

The liability for future claims represents the estimated value of future asbestos related bodily injury claims expected to be asserted against Bendix over the next five years. Such estimated cost of future Bendix-related asbestos claims is based on historic claims filing experience and dismissal rates, disease classifications, and resolution values in the tort system for the previous five years. In light of the uncertainties inherent in making long-term projections, as well as certain factors unique to friction product asbestos claims, we do not believe that we have a reasonable basis for estimating asbestos claims beyond the next five years. The methodology used to estimate the liability for future claims is similar to that used to estimate the liability for future NARCO-related asbestos claims.

Our insurance receivable corresponding to the liability for settlement of pending and future Bendix asbestos claims reflects coverage which is provided by a large number of insurance policies written by dozens of insurance companies in both the domestic insurance market and the London excess market. Based on our ongoing analysis of the probable insurance recovery, insurance receivables are recorded in the financial statements simultaneous with the recording of the estimated liability for the underlying asbestos claims. This determination is based on our analysis of the underlying insurance policies, our historical experience with our insurers, our ongoing review of the solvency of our insurers, judicial determinations relevant to our insurance programs, and our consideration of the impacts of any settlements reached with our insurers.

Honeywell believes it has sufficient insurance coverage and reserves to cover all pending Bendix-related asbestos claims and Bendix-related asbestos claims estimated to be filed within the next five years. Although it is impossible to predict the outcome of either pending or future Bendix-related asbestos claims, we do not believe that such claims would have a material adverse effect on our consolidated financial position in light of our insurance coverage and our prior experience in resolving such claims. If the rate and types of claims filed, the average resolution value of such claims and the period of time over which claim settlements are paid (collectively, the Variable Claims Factors) do not substantially change, Honeywell would not expect future Bendix-related asbestos claims to have a material adverse effect on our results of operations or operating cash flows in any fiscal year. No assurances can be given, however, that the Variable Claims Factors will not change.

Other Matters

We are subject to a number of other lawsuits, investigations and disputes (some of which involve substantial amounts claimed) arising out of the conduct of our business, including matters relating to commercial transactions, government contracts, product liability, prior acquisitions and divestitures, employee benefit plans, intellectual property, and environmental, health and safety matters. We recognize a liability for any contingency that is probable of occurrence and reasonably estimable. We continually assess the likelihood of adverse judgments of outcomes in these matters, as well as potential ranges of possible losses (taking into consideration any insurance recoveries), based on a careful analysis of each matter with the assistance of outside legal counsel and, if applicable, other experts. Included in these other matters are the following:

23

Honeywell International Inc.

Notes to Financial Statements

(Unaudited)

(Dollars in millions, except per share amounts)

Honeywell v. United Auto Workers (UAW) et. al—In July 2011, Honeywell filed an action in federal court (District of New Jersey) against the UAW and all former employees who retired under a series of Master Collective Bargaining Agreements (MCBAs) between Honeywell and the UAW seeking a declaratory judgment that certain express limitations on its obligation to contribute toward the healthcare coverage of such retirees (the CAPS) set forth in the MCBAs may be implemented, effective January 1, 2012.  The UAW and certain retiree defendants filed a mirror suit in the Eastern District of Michigan alleging that the MCBAs do not provide for CAPS on the Company’s liability for healthcare coverage.  The New Jersey action was dismissed and Honeywell subsequently answered the UAW’s complaint in Michigan and asserted counterclaims for fraudulent inducement, negligent misrepresentation and breach of implied warranty. The UAW filed a motion to dismiss these counterclaims. The court dismissed Honeywell’s fraudulent inducement and negligent misrepresentation claims, but let stand the claim for breach of implied warranty. In the second quarter of 2014, the parties agreed to stay the proceedings with respect to those retirees who retired before the initial inclusions of the CAPS in the 2003 MCBA until the Supreme Court decided the M&G Polymers USA, LLC v. Tackett case. In a ruling on January 26, 2015, the Supreme Court held that retiree health insurance benefits provided in collective bargaining agreements do not carry an inference that they are vested or guaranteed to continue for life and that the “vesting” issue must be decided pursuant to ordinary principles of contract law. The stay of the proceedings has been lifted and the case is again proceeding. Based on the Supreme Court’s ruling, Honeywell is confident that the CAPS will be upheld and that its liability for healthcare coverage premiums with respect to the putative class will be limited as negotiated and expressly set forth in the applicable MCBAs.  In the event of an adverse ruling, however, Honeywell’s other postretirement benefits for pre-2003 retirees would increase by approximately $176 million, reflecting the estimated value of these CAPS.

In December 2013, the UAW and certain of the plaintiffs filed a motion for partial summary judgment with respect to those retirees who retired after the initial inclusion of the CAPS in the 2003 MCBA. The UAW sought a ruling that the 2003 MCBA did not limit Honeywell’s obligation to contribute to healthcare coverage for the post-2003 retirees. That motion remains pending. Honeywell is confident that the Court will find that the 2003 MCBA does, in fact, limit Honeywell’s retiree healthcare obligation for post-2003 retirees. In the event of an adverse ruling, however, Honeywell’s other postretirement benefits for post-2003 retirees would increase by approximately $110 million, reflecting the estimated value of these CAPS.

Joint Strike Fighter Investigation - In 2013 the Company received subpoenas from the Department of Justice requesting information relating primarily to parts manufactured in the United Kingdom and China used in the F-35 fighter jet. The Company is cooperating fully with the investigation. While we believe that Honeywell has complied with all relevant U.S. laws and regulations regarding the manufacture of these sensors, it is not possible to predict the outcome of the investigation or what action, if any, may result from it.

Given the uncertainty inherent in litigation and investigations (including the specific matters referenced above), we do not believe it is possible to develop estimates of reasonably possible loss in excess of current accruals for these matters (other than as specifically set forth above). Considering our past experience and existing accruals, we do not expect the outcome of these matters, either individually or in the aggregate, to have a material adverse effect on our consolidated financial position. Because most contingencies are resolved over long periods of time, potential liabilities are subject to change due to new developments, changes in settlement strategy or the impact of evidentiary requirements, which could cause us to pay damage awards or settlements (or become subject to equitable remedies) that could have a material adverse effect on our results of operations or operating cash flows in the periods recognized or paid.

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ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF
	FINANCIAL CONDITION AND RESULTS OF OPERATIONS (MD&A)
	(Dollars in millions, except per share amounts)

The following MD&A is intended to help the reader understand the results of operations and financial condition of Honeywell International Inc. and its consolidated subsidiaries (Honeywell or the Company) for the three and nine months ended September 30, 2016. The financial information as of September 30, 2016 should be read in conjunction with the financial statements for the year ended December 31, 2015 contained in our 2015 Annual Report on Form 10-K.

In July 2016, the Company announced that it is realigning the business units comprising its Automation and Control Solutions reporting segment by forming two new reportable operating segments: Home and Building Technologies and Safety and Productivity Solutions.  Home and Building Technologies includes Environmental & Energy Solutions, Security and Fire, and Building Solutions and Distribution. Additionally, the Industrial Combustion/Thermal business, previously part of Environmental & Energy Solutions in Automation and Control Solutions, became part of Performance Materials and Technologies. Safety and Productivity Solutions includes Sensing & Productivity Solutions and Industrial Safety, as well as the Intelligrated business. Under the realigned segment reporting structure, the Company has four reportable operating segments:  Aerospace, Home and Building Technologies, Performance Materials and Technologies and Safety and Productivity Solutions. Effective with the quarter ended September 30, 2016 the Company has reported its financial performance based on this realignment.

These realignments have no impact on the Company’s historical consolidated financial position, results of operations or cash flows. Prior period amounts have been reclassified to conform to current period segment presentation. 

A. Results of Operations – quarter and nine months ended September 30, 2016 compared with the quarter and nine months ended September 30, 2015

Net Sales

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2016			2015		2016			2015
Net sales	$	9,804		$	9,611	$	29,317		$	28,599
% change compared with prior period		2	%				3	%

The change in net sales compared to the prior year period is attributable to the following:

	Three Months			Year to Date
Volume		(2	)%		(1	)%
Price		(1	)%		-
Foreign Currency Translation		(1	)%		(1	)%
Acquisitions/Divestitures		6	%		5	%
		2	%		3	%

A discussion of net sales by segment can be found in the Review of Business Segments section of this MD&A. The foreign currency translation impact for the quarter is principally driven by the weakening of the British Pound, Chinese Renminbi and Canadian Dollar, partially offset by the strengthening of the Japanese Yen against the U.S. Dollar. The foreign currency translation impact for the nine months is principally driven by the weakening of the British Pound, Chinese Renminbi and Canadian Dollar, partially offset by the strengthening of the Japanese Yen against the U.S. Dollar.

25

Cost of Products and Services Sold

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2016			2015			2016			2015
Cost of products and services sold	$	6,903		$	6,654		$	20,271		$	19,830
% change compared with prior period		4	%					2	%
Gross Margin percentage		29.6	%		30.8	%		30.9	%		30.7	%

Cost of products and services sold increased in the quarter principally due to an increase in direct material and labor costs of approximately $165 million (driven primarily by acquisitions, net of divestitures, partially offset by the favorable impact from productivity, net of inflation, and foreign currency), higher repositioning and other charges of approximately $100 million and an increase in depreciation and amortization attributable to acquisitions of approximately $35 million, partially offset by increased pension and other postretirement benefits income of approximately $60 million.

Cost of products and services sold increased in the nine months principally due to an increase in direct material and labor costs of approximately $470 million (driven primarily by acquisitions, net of divestitures, partially offset by the favorable impact from productivity, net of inflation and foreign currency), an increase in depreciation and amortization attributable to acquisitions of approximately $105 million and higher repositioning and other charges of approximately $50 million, partially offset by increased pension and other postretirement benefits income of approximately $170 million.

Gross margin percentage decreased in the quarter primarily due to lower segment gross margin in Home and Building Technologies, Aerospace and Safety and Productivity Solutions (approximately 1.0 percentage point impact, principally attributed to acquisitions, net of divestitures, and incentives to Aerospace Original Equipment Manufacturers (OEM incentives)) and higher repositioning and other charges (approximately 1.0 percentage point impact), partially offset by increased pension and other postretirement benefits income (approximately 0.6 percentage point impact) and higher segment gross margin in Performance Materials and Technologies (approximately 0.4 percentage point impact, principally attributed to acquisitions).

Gross margin percentage increased in the nine months primarily driven by increased pension and other postretirement benefits income (approximately 0.6 percentage point impact) and higher segment gross margin in Performance Materials and Technologies (approximately 0.3 percentage point impact), partially offset by lower segment gross margin in Aerospace, Home and Building Technologies and Safety and Productivity Solutions (approximately 0.7 percentage point impact, principally attributed to higher OEM incentives within Aerospace).

Selling, General and Administrative Expenses

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2016			2015			2016			2015
Selling, general and administrative expense	$	1,367		$	1,202		$	3,976		$	3,674
Percent of sales		13.9	%		12.5	%		13.6	%		12.8	%

Selling, general and administrative expenses (SG&A) increased in the quarter primarily due to an increase in labor costs principally attributed to acquisitions and higher repositioning charges.

SG&A increased in the nine months primarily due to an increase in labor costs (principally attributed to acquisitions, investment for growth and merit increases) and higher repositioning charges, partially offset by the favorable impact from foreign currency translation.

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Tax Expense

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2016			2015			2016			2015
Tax expense	$	384		$	431		$	1,214		$	1,289
Effective tax rate		23.5	%		25.2	%		24.2	%		26.1	%

The effective tax rate decreased for the quarter and nine months primarily due to tax benefits from the adoption of the Financial Accounting Standards Board’s (FASB) accounting standard update related to employee share-based payment accounting, partially offset by the Honeywell Technology Solutions, Inc. divestiture that was taxed at a higher rate than the estimated annual effective tax rate and decreased tax benefits from manufacturing incentives.

The effective tax rates for the quarter and nine months were lower than the U.S. federal statutory rate of 35%, in part due to non-U.S. earnings taxed at lower rates, the vast majority of which we intend to permanently reinvest outside the United States, and benefits from manufacturing incentives.

The Company currently expects the effective tax rate for 2016 to be approximately 24.5%, excluding the impact of any pension mark-to-market adjustment and any gains or losses resulting from early extinguishment of debt. The effective tax rate can vary from quarter to quarter due to unusual or infrequently occurring items, the resolution of income tax audits, changes in tax laws or other items such as pension mark-to-market adjustments or any gains or losses resulting from early extinguishment of debt and the tax impact from employee share-based payments.

Net Income Attributable to Honeywell

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2016		2015		2016		2015
Net income attributable to Honeywell	$	1,240	$	1,264	$	3,775	$	3,574
Earnings per share of common stock – assuming dilution	$	1.60	$	1.60	$	4.86	$	4.51

Earnings per share of common stock – assuming dilution was flat in the quarter primarily due to the gain related to the Honeywell Technology Solutions, Inc. divestiture, higher pension and other postretirement income and the tax benefit from adoption of the FASB’s accounting standard related to employee share-based payment accounting, offset by decreased segment profit in Aerospace, principally attributed to OEM incentives, and Safety and Productivity Solutions, and higher repositioning and other charges.

Earnings per share of common stock – assuming dilution increased in the nine months primarily driven by higher pension and other postretirement income, increased segment profit in Home and Building Technologies, the gain related to the Honeywell Technology Solutions, Inc. divestiture, a decrease in the weighted average shares outstanding and the tax benefit from adoption of the FASB’s accounting standard related to employee share-based payment accounting, partially offset by decreased segment profit in Aerospace, principally attributed to OEM incentives, Safety and Productivity Solutions and Performance Materials and Technologies and higher repositioning and other charges.

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Review of Business Segments

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
					%					%
	2016		2015		Change	2016		2015		Change
Aerospace Sales
Commercial Aviation Original Equipment	$	538	$	725	(26)%	$	1,915	$	2,149	(11)%
Commercial Aviation Aftermarket		1,215		1,200	1%		3,570		3,425	4%
Defense and Space		1,125		1,200	(6)%		3,290		3,453	(5)%
Transportation Systems		723		695	4%		2,310		2,227	4%
Total Aerospace Sales		3,601		3,820			11,085		11,254
Home and Building Technologies Sales
Home and Building Products		1,499		1,189	26%		4,396		3,422	28%
Home and Building Distribution		1,202		1,124	7%		3,458		3,264	6%
Total Home and Building
Technologies Sales		2,701		2,313			7,854		6,686
Performance Materials and Technologies Sales
UOP		564		638	(12)%		1,746		2,297	(24)%
Process Solutions		847		725	17%		2,570		2,165	19%
Advanced Materials		918		916	-		2,728		2,675	2%
Total Performance Materials and
Technologies Sales		2,329		2,279			7,044		7,137
Safety and Productivity Solutions Sales
Safety		526		546	(4)%		1,558		1,588	(2)%
Productivity Solutions		647		653	(1)%		1,776		1,934	(8)%
Total Safety and Productivity Solutions Sales		1,173		1,199			3,334		3,522
Net Sales	$	9,804	$	9,611		$	29,317	$	28,599

Aerospace

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2016		2015		% Change	2016		2015		% Change
Net sales	$	3,601	$	3,820	(6)%	$	11,085	$	11,254	(2)%
Cost of products and services sold		2,699		2,753			8,138		8,190
Selling, general and administrative expenses		159		156			457		473
Other		80		78			238		229
Segment profit	$	663	$	833	(20)%	$	2,252	$	2,362	(5)%

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	2016 vs. 2015
	Three Months Ended						Nine Months Ended
	September 30,						September 30,
Factors Contributing to Year-Over-Year Change	Sales			Segment Profit			Sales			Segment Profit
Organic growth/ Operational segment profit		(6	)%		(21	)%		(2	)%		(4	)%
Foreign currency translation		-			-			-			(1	)%
Acquisitions and divestitures, net		-			1	%		-			-
Total % Change		(6	)%		(20	)%		(2	)%		(5	)%

Aerospace sales decreased in the quarter and nine months primarily due to a decrease in organic sales volumes and the Honeywell Technology Solutions Inc. divestiture, which is partially offset by growth from acquisitions.

· Commercial Original Equipment sales decreased 26% (decreased 25% organic) in the quarter and decreased 11% (decreased 10% organic) in the nine months primarily due to lower shipments to business and general aviation original equipment manufacturers (OEMs) and higher OEM incentives. Consistent with broader aerospace industry trends, we expect the continuation of lower business and general aviation OEM sales volumes.

· Commercial Aftermarket sales increased 1% (increased 1% organic) in the quarter primarily driven by higher repair and overhaul activities for air transport and regional customers and acquisitions, partially offset by lower repair and overhaul activities for business and general aviation customers.

Commercial Aftermarket sales increased 4% (increased 4% organic) in the nine months primarily driven by higher repair and overhaul activities and increased spares shipments.

· Defense and Space sales decreased 6% (decreased 6% organic) in the quarter and decreased 5% (decreased 6% organic) in the nine months primarily due to declines in U.S. space and international defense programs, lower U.S. government services revenue, including the impact of divestitures, and decreased demand from commercial helicopter OEMs, partially offset by sales from acquisitions.

· Transportation Systems sales increased 4% (increased 3% organic) in the quarter and increased 4% (increased 4% organic) in the nine months primarily driven by new platform launches and higher global turbo penetration.

Aerospace segment profit decreased in the quarter primarily due to a decrease in operational segment profit, partially offset by acquisitions, net of divestitures. The decrease in operational segment profit is primarily due to continued investments for growth, higher OEM incentives, and lower organic sales volumes, partially offset by productivity, net of inflation. Cost of products and services sold decreased in the quarter ended September 30, 2016 primarily driven by productivity, net of inflation and lower organic sales volumes, partially offset by continued investments for growth.

Aerospace segment profit decreased in the nine months primarily due to a decrease in operational segment profit and the unfavorable impact of foreign currency translation. The decrease in operational segment profit is primarily due to continued investments for growth and higher OEM incentives, partially offset by productivity, net of inflation. Cost of products and services sold decreased in the nine months ended September 30, 2016 primarily driven by productivity, net of inflation, and lower sales volumes, partially offset by acquisitions, net of divestitures.

29

Home and Building Technologies

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2016		2015		% Change	2016		2015		% Change
Net sales	$	2,701	$	2,313	17%	$	7,854	$	6,686	17%
Cost of products and services sold		1,783		1,502			5,225		4,347
Selling, general and administrative expenses		425		351			1,252		1,099
Other		52		52			164		152
Segment profit	$	441	$	408	8%	$	1,213	$	1,088	11%

	2016 vs. 2015
	Three Months Ended						Nine Months Ended
	September 30,						September 30,
Factors Contributing to Year-Over-Year Change	Sales			Segment Profit			Sales			Segment Profit
Organic growth/ Operational segment profit		5	%		4	%		5	%		10	%
Foreign currency translation		(2	)%		(2	)%		(2	)%		(2	)%
Acquisitions and divestitures, net		14	%		6	%		14	%		3	%
Total % Change		17	%		8	%		17	%		11	%

Home and Building Technologies sales increased in the quarter and nine months primarily driven by acquisitions and organic growth partially offset by the unfavorable impact of foreign currency translation.

· Sales in Home and Building Products increased 26% (increased 1% organic) in the quarter and increased 28% (increased 3% organic) in the nine months principally due to acquisitions and growth from our Environmental and Energy Solutions and Security and Fire businesses.

· Sales in Home and Building Distribution increased 7% (increased 8% organic) in the quarter and increased 6% (increased 8% organic) in the nine months principally due to organic sales growth partially offset by the unfavorable impact of foreign currency translation. Organic sales in three and nine months was driven by increased growth in our Distribution and Building Solutions Energy businesses.

Home and Building Technologies segment profit increased in the quarter and nine months due to higher operational segment profit and acquisitions. The increase in operational segment profit is primarily due to the positive impact of volume, price, and productivity net of inflation. Cost of products and services sold increased in the quarter and nine months primarily due to acquisitions and higher organic sales volumes partially offset by the favorable impact of foreign currency translation and productivity net of inflation.

30

Performance Materials and Technologies

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2016		2015		% Change	2016		2015		% Change
Net sales	$	2,329	$	2,279	2%	$	7,044	$	7,137	(1)%
Cost of products and services sold		1,542		1,547			4,683		4,839
Selling, general and administrative expenses		249		226			768		682
Other		35		32			109		99
Segment profit	$	503	$	474	6%	$	1,484	$	1,517	(2)%

	2016 vs. 2015
	Three Months Ended						Nine Months Ended
	September 30, 2016						September 30, 2016
Factors Contributing to Year-Over-Year Change	Sales			Segment Profit			Sales			Segment Profit
Organic growth/ Operational segment profit		(3	)%		-			(6	)%		(5	)%
Foreign currency translation		(1	)%		-			(1	)%		(1	)%
Acquisitions and divestitures, net		6	%		6	%		6	%		4	%
Total % Change		2	%		6	%		(1	%)		(2	%)

Performance Materials and Technologies sales increased in the quarter due to growth from acquisitions, partially offset by a decrease in organic sales volumes and the unfavorable impact of foreign currency translation.

Performance Materials and Technologies sales decreased in the nine months due to a decrease in organic sales volumes and the unfavorable impact of foreign currency translation, partially offset by growth from acquisitions.

· UOP sales decreased 12% (decreased 10% organic) in the quarter primarily driven by lower gas processing revenues due to a significant slowdown in customer projects, decreased licensing and engineering sales, partially offset by increased catalyst volumes and equipment sales, which is expected to continue.

UOP sales decreased 24% (decreased 23% organic) in the nine months primarily driven by lower gas processing revenues, decreased catalyst volumes, and decreased equipment sales.

· Process Solutions sales increased 17% (increased 3% organic) in the quarter and increased 19% (increased 6% organic) in the nine months primarily driven by higher revenues in projects, increased volumes driven by the Elster acquisition, partially offset by lower field products sales.

· Advanced Materials sales were flat (decreased 2% organic) in the quarter primarily driven by increased volumes in Specialty Products, offset by lower market pricing as well as lower raw material pass-through pricing in Resins and Chemicals.

Advanced Materials sales increased 2% (flat organic) in the nine months primarily driven by increased volumes in Fluorine Products and Specialty Products, partially offset by lower market pricing as well as lower raw material pass-through pricing in Resins and Chemicals.

Performance Materials and Technologies segment profit increased in the quarter primarily due to acquisitions. The flat operational segment profit is primarily due to the positive impact of productivity, net of inflation, offset by lower organic sales volume, unfavorable pricing and continued investments for growth. Cost of

31

products and services sold decreased in the quarter primarily due to lower organic sales volumes, favorable foreign currency translation, and productivity, net of inflation, partially offset by acquisitions.

Performance Materials and Technologies segment profit decreased in the nine months ended September 30, 2016 due to a decrease in operational segment profit and the unfavorable impact of foreign currency translation, partially offset by acquisitions. The decrease in operational segment profit is primarily due to lower organic sales volume. Cost of products and services sold decreased in nine months primarily due to lower organic sales volumes, favorable foreign currency translation, and productivity, net of inflation, partially offset by acquisitions.

Safety and Productivity Solutions

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2016		2015		% Change	2016		2015		% Change
Net sales	$	1,173	$	1,199	(2)%	$	3,334	$	3,522	(5)%
Cost of products and services sold		764		774			2,161		2,258
Selling, general and administrative expenses		211		210			604		632
Other		26		22			74		67
Segment profit	$	172	$	193	(11)%	$	495	$	565	(12)%

	2016 vs. 2015
	Three Months Ended						Nine Months Ended
	September 30,						September 30,
Factors Contributing to Year-Over-Year Change	Sales			Segment Profit			Sales			Segment Profit
Organic growth/ Operational segment profit		(8	)%		(13	)%		(7	)%		(12	)%
Foreign exchange		(1	)%		(1	)%		(1	)%		(1	)%
Acquisitions and divestitures, net		7	%		3	%		3	%		1	%
Total % Change		(2	)%		(11	)%		(5	)%		(12	)%

Safety and Productivity Solutions sales decreased in the quarter and nine months primarily due to decreased sales volume and the unfavorable impact of foreign currency translation partially offset by growth from acquisitions.

· Sales in Safety decreased 4% (decreased 3% organic) in the quarter and decreased 2% (decreased 1% organic) in the nine months due to decreased sales volume in the Industrial Safety business, lower distribution in Retail, and the unfavorable impact of foreign currency translation.

· Sales in Productivity Solutions decreased 1% (decreased 12% organic) in the quarter and decreased 8% (decreased 12% organic) in the nine months principally due to declines in the Productivity Products business, partially offset by growth from acquisitions.

Safety and Productivity Solutions segment profit decreased in the quarter and nine months primarily due to a decrease in operational segment profit partially offset by growth from acquisitions. The decrease in operational segment profit is due to decreased sales volume and the unfavorable impact of inflation, partially offset by productivity Cost of products and services sold decreased primarily due to lower sales volume, partially offset by acquisitions.

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Repositioning and Other Charges

Our repositioning actions are expected to generate incremental pretax savings of $275 million to $300 million in 2016 compared with 2015 principally from planned workforce reductions. Cash spending related to our repositioning actions was $143 million in the nine months ended September 30, 2016 and was funded through operating cash flows. We expect cash spending for repositioning actions to be approximately $200 million in 2016 and to be funded through operating cash flows.

B. Liquidity and Capital Resources

Cash Flow Summary

	Nine Months Ended
	September 30,
	2016			2015
Cash provided by (used for):
Operating activities	$	3,456		$	3,556
Investing activities		(3,276	)		(2,584	)
Financing activities		708			(913	)
Effect of exchange rate changes on cash		88			(455	)
Net increase (decrease) in cash and cash equivalents	$	976		$	(396	)

Cash provided by operating activities decreased by $100 million primarily due to an unfavorable impact from working capital of $840 million and higher net payments for repositioning and other charges of $91 million, partially offset by a favorable impact from accrued liabilities of $798 million (primarily driven by a $430 million improvement in customer advances and deferred income and the absence of $151 million in OEM incentive payments).

Cash used for investing activities increased by $692 million primarily due an increase in cash paid for acquisitions of $2,383 million. The increase was partially offset by (i) a net $1,226 million decrease in investments, primarily short term marketable securities, (ii) an increase in proceeds from the sales of businesses of $301 million (most significantly Honeywell Technology Solutions Inc.) and (iii) a decrease of $227 million in settlement payments of foreign currency exchange contracts used as economic hedges on certain non-functional currency denominated monetary assets and liabilities.

Cash provided by financing activities increased by $1,621 million primarily due to an increase in the net proceeds from debt issuances of $1,696, partially offset by an increase in cash dividends paid of $149 million including amounts paid to the former UOP Russell LLC noncontrolling shareholder.

Liquidity

The Company continues to manage its businesses to maximize operating cash flows as the primary source of liquidity. In addition to our available cash and operating cash flows, additional sources of liquidity include committed credit lines, short-term debt from the commercial paper market, long-term borrowings, as well as access to the public debt and equity markets. We continue to balance our cash and financing uses through investment in our existing core businesses, debt reduction, acquisition activity, share repurchases and dividends.

We continuously assess the relative strength of each business in our portfolio as to strategic fit, market position, profit and cash flow contribution in order to upgrade our combined portfolio and identify business units that will most benefit from increased investment. We identify acquisition candidates that will further our strategic plan and strengthen our existing core businesses. We also identify business units that do not fit into our long-term strategic plan based on their market position, relative profitability or growth potential. These businesses are considered for potential divestiture, restructuring or other repositioning actions subject to regulatory constraints.

In 2016, we are not required to make contributions to our U.S. pension plans. In 2016, we plan to make contributions of cash and/or marketable securities of approximately $160 million to our non-U.S. pension plans to satisfy regulatory funding

33

requirements, of which $106 million were already contributed with marketable securities in the first quarter of 2016. The timing and amount of contributions to both our U.S. and non-U.S. pension plans may be impacted by a number of factors, including the funded status of the pension plans.

In accordance with our accounting policy for defined benefit pension plans, we recognize net actuarial gains or losses in excess of 10 percent of the greater of the fair value of plan assets or the plans’ projected benefit obligation in the fourth quarter each year (MTM adjustment). The primary factors contributing to actuarial gains or losses are changes in the discount rate used to value pension obligations each year as of December 31 (measurement date) and the difference between expected and actual return on plan assets. Based on discount rates and actual asset returns as of September 30, 2016 there is a potential MTM adjustment of approximately $1.5 billion in the fourth quarter of 2016 for our significant pension plans. The potential MTM adjustment consists of $0.8 billion from U.S. pension plans and $0.7 billion from non-U.S. pension plans. However, as the amount of any actual MTM adjustment is primarily driven by changes in interest rates and the performance of the financial markets which may change significantly in the fourth quarter, the Company is not able to determine or project the actual amount of any MTM adjustment that may be recorded as of December 31, 2016.

In the three months ended September 30, 2016, the Company repurchased $233 million of outstanding shares. Under the Company’s previously approved $5 billion share repurchase program, $4.3 billion remained available as of September 30, 2016 for additional share repurchases. Honeywell presently expects to repurchase outstanding shares from time to time to generally offset the dilutive impact over the long-term of employee stock-based compensation plans, including future option exercises, restricted unit vesting and matching contributions under our savings plans. The amount and timing of future repurchases may vary depending on market conditions and the level of operating, financing and other investing activities.

In the fourth quarter, we plan to refinance certain outstanding debt, subject to market conditions. Based on market assumptions as of September 30, 2016, there is a potential extinguishment charge of approximately $140 million. The actual debt extinguishment charge will depend on interest rates, market conditions and other factors at the time of the actual refinancing.

See Note 3 Acquisitions and Divestitures and Note 10 Long-term Debt and Credit Agreements of Notes to Financial Statements for additional discussion of items impacting our liquidity.

C. Other Matters

Litigation

We are subject to a number of lawsuits, investigations and claims (some of which involve substantial amounts) arising out of the conduct of our business. See Note 15 Commitments and Contingencies of Notes to Financial Statements for further discussion of environmental, asbestos and other litigation matters.

Critical Accounting Policies

The financial information as of September 30, 2016 should be read in conjunction with the financial statements for the year ended December 31, 2015 contained in our 2015 Annual Report on Form 10-K.

For a discussion of the Company’s critical accounting policies, see Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations in our 2015 Annual Report on Form 10-K.

Recent Accounting Pronouncements

See Note 2 Recent Accounting Pronouncements of Notes to Financial Statements for a discussion of recent accounting pronouncements.

Item 3. Quantitative and Qualitative Disclosures About Market Risks

For a discussion of the Company’s quantitative and qualitative disclosures about market risks, see Item 7A. Quantitative and Qualitative Disclosures About Market Risks, in our 2015 Annual Report on Form 10-K. As of September 30, 2016, there has been no material change in this information.

34

Item 4. Controls and Procedures

Honeywell management, including the Chief Executive Officer and Chief Financial Officer, conducted an evaluation of the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) or 15d-15(e) promulgated under the Securities Exchange Act of 1934, as amended (Exchange Act)) as of the end of the period covered by this Quarterly Report on Form 10-Q. Based upon that evaluation, the Chief Executive Officer and the Chief Financial Officer concluded that such disclosure controls and procedures were effective as of the end of the period covered by this Quarterly Report on Form 10-Q to ensure information required to be disclosed in the reports that Honeywell files or submits under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the Securities and Exchange Commission rules and forms, and that it is accumulated and communicated to our management, including our Chief Executive Officer, our Chief Financial Officer, and our Controller, as appropriate, to allow timely decisions regarding required disclosure. There have been no changes that have materially affected, or are reasonably likely to materially affect, Honeywell’s internal control over financial reporting that have occurred during the period covered by this Quarterly Report on Form 10-Q.

35

Part II. Other Information

Item 1. Legal Proceedings

General Legal Matters

We are subject to a number of lawsuits, investigations and claims (some of which involve substantial amounts) arising out of the conduct of our business. See Note 15 Commitments and Contingencies of Notes to Financial Statements for a discussion of environmental, asbestos and other litigation matters.

Environmental Matters Involving Potential Monetary Sanctions in Excess of $100,000

None

Item 2. Changes in Securities and Use of Proceeds

Honeywell purchased 2,000,000 shares of its common stock, par value $1 per share, in the quarter ended September 30, 2016. In April 2016, the Board of Directors authorized the repurchase of up to a total of $5 billion of Honeywell common stock, which replaces the previously approved share repurchase program. $4.3 billion remained available as of September 30, 2016 for additional share repurchases. The following table summarizes Honeywell’s purchase of its common stock for the quarter ended September 30, 2016:

Issuer Purchases of Equity Securities
	(a)	(b)	(c )	(d)
			Total Number of	Approximate Dollar
	Total		Shares Purchased	Value of Shares that May
	Number of	Average	as Part of Publicly	Yet be Purchased Under
	Shares	Price Paid	Announced Plans	Plans or Programs
Period	Purchased	per Share	or Programs	(Dollars in millions)
August 2016	1,300,000	$116.08	1,300,000	$4,372
September 2016	700,000	$116.78	700,000	$4,290

Item 5. Other Information

Iran Threat Reduction and Syrian Human Rights Act of 2012

Under the Iran Threat Reduction and Syrian Human Rights Act of 2012, which added Section 13(r) of the Securities Exchange Act of 1934, Honeywell is required to disclose in its periodic reports if it or any of its affiliates knowingly engaged in certain activities, transactions or dealings relating to Iran or with entities or individuals designated pursuant to certain Executive Orders.  Disclosure is required even where the activities are conducted outside the U.S. by non-U.S. affiliates in compliance with applicable law, and even if the activities are not covered or prohibited by U.S. law.  All of our sales in Iran during the third quarter of 2016 were conducted by our non-U.S. subsidiaries under General License H and otherwise in compliance with all applicable laws.  In the third quarter, and in compliance with all applicable laws, including sanctions regulations administered by U.S. Treasury’s Office of Foreign Assets Control (OFAC), our UOP business entered into one contract with a non-U.S. distributor to sell non-U.S.-origin molecular sieves for end use in medical oxygen generators. Revenue from this sale totaled the U.S. Dollar equivalent of less than $50,000 in the third quarter.  Our UOP business also entered into a settlement agreement related to an outstanding 2006 licensing agreement entered into in accordance with then-applicable laws.  Revenues from this agreement totaled the U.S. Dollar equivalent of approximately $8.5 million.  Additionally, our Elster business within the Home and Building Technologies segment entered into contracts with non-U.S. distributors to sell approximately $0.7 million in non-U.S.-origin water meter and gas meter products for end use at residential properties and recognized approximately $0.1 million of revenue in connection with a contract for non-U.S. origin software sales and services.  The Movilizer business within our Safety and Productivity Solutions segment also entered into a contract for non-U.S. origin software sales and service for approximately $0.1 million. Our non-U.S. subsidiaries intend to continue doing business in Iran under General License H in compliance with all applicable laws, which sales may require additional disclosure pursuant to Section 13(r) of the Act.

Item 6. Exhibits

(a) See the Exhibit Index on page 38 of this Quarterly Report on Form 10-Q.

36

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	Honeywell International Inc.
Date:  October 21, 2016	By:	/s/ Jennifer H. Mak
		Jennifer H. Mak
		Vice President and Controller
		(on behalf of the Registrant
		and as the Registrant’s
		Principal Accounting Officer)

37

EXHIBIT INDEX

Exhibit No.	Description
11	Computation of Per Share Earnings(1)
12	Computation of Ratio of Earnings to Fixed Charges (filed herewith)
31.1	Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)
31.2	Certification of Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)
32.1	Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith)
32.2	Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith)
101.INS	XBRL Instance Document (filed herewith)
101.SCH	XBRL Taxonomy Extension Schema (filed herewith)
101.CAL	XBRL Taxonomy Extension Calculation Linkbase (filed herewith)
101.DEF	XBRL Taxonomy Extension Definition Linkbase (filed herewith)
101.LAB	XBRL Taxonomy Extension Label Linkbase (filed herewith)
101.PRE	XBRL Taxonomy Extension Presentation Linkbase (filed herewith)

(1) Data required is provided in Note 5 Earnings Per Share of Notes to Financial Statements.

38

EX-12

EXHIBIT 12

Honeywell International Inc.

Statement RE: Computation of Ratio of Earnings to Fixed Charges

Nine Months Ended

September 30, 2016

(Dollars in millions)

Determination of Earnings:
Income before taxes	$	5,015
Add (Deduct):
Amortization of capitalized interest		14
Fixed charges		287
Equity income, net of distributions		(23	)
Total earnings, as defined	$	5,293
Fixed Charges:
Rents(a)	$	35
Interest and other financial charges		252
		287
Capitalized interest		17
Total fixed charges	$	304
Ratio of Earnings to Fixed Charges		17.41

(a) Denotes the equivalent of an appropriate portion of rentals representative of the interest factor on all rentals other than for capitalized leases.

EX-31.1

EXHIBIT 31.1

CERTIFICATION PURSUANT TO

SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, David M. Cote, Chief Executive Officer, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Honeywell International Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting;

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: October 21, 2016	By:	/s/ David M. Cote
		David M. Cote
		Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATION PURSUANT TO

SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, Thomas A. Szlosek, Chief Financial Officer, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Honeywell International Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting;

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: October 21, 2016	By:	/s/ Thomas A. Szlosek
		Thomas A. Szlosek
		Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Honeywell International Inc. (the Company) on Form 10-Q for the period ended September 30, 2016 as filed with the Securities and Exchange Commission on the date hereof (the Report), I, David M. Cote, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:  October 21, 2016	By:	/s/ David M. Cote
		David M. Cote
		Chief Executive Officer

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Honeywell International Inc. (the Company) on Form 10-Q for the period ended September 30, 2016 as filed with the Securities and Exchange Commission on the date hereof (the Report), I, Thomas A. Szlosek, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:  October 21, 2016	By:	/s/ Thomas A. Szlosek
		Thomas A. Szlosek
		Chief Financial Officer

XML

Document and Entity Information	9 Months Ended
	Sep. 30, 2016 shares
Document And Entity Information [Abstract]
Document type	10-Q
Document period end date	Sep. 30, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q3
Amendment flag	false
Entity registrant name	Honeywell International Inc
Entity central index key	0000773840
Entity current reporting status	Yes
Entity voluntary filers	No
Current fiscal year end date	--12-31
Entity filer category	Large Accelerated Filer
Entity well known seasoned issuer	Yes
Entity common stock shares outstanding	762,124,709

XML

CONSOLIDATED STATEMENT OF OPERATIONS - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Consolidated Statement of Operations
Product sales	$ 7,744	$ 7,573	$ 23,398	$ 22,735
Service sales	2,060	2,038	5,919	5,864
Net Sales	9,804	9,611	29,317	28,599
Costs, expenses and other
Cost of products sold	5,594	5,372	16,545	16,126
Cost of services sold	1,309	1,282	3,726	3,704
Cost of products and services sold	6,903	6,654	20,271	19,830
Selling, general and administrative expenses	1,367	1,202	3,976	3,674
Other (income) expense	(180)	(24)	(197)	(64)
Interest and other financial charges	82	72	252	226
Cost, operating and non-operating expenses	8,172	7,904	24,302	23,666
Income before taxes	1,632	1,707	5,015	4,933
Tax expense	384	431	1,214	1,289
Net income	1,248	1,276	3,801	3,644
Less: Net income attributable to the noncontrolling interest	8	12	26	70
Net income attributable to Honeywell	$ 1,240	$ 1,264	$ 3,775	$ 3,574
Earnings per share of common stock - basic	$ 1.62	$ 1.62	$ 4.93	$ 4.57
Earnings per share of common stock - assuming dilution	1.6	1.6	4.86	4.51
Cash dividends per share of common stock	$ 0.595	$ 0.5175	$ 1.785	$ 1.5525

XML

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Statement Of Income And Comprehensive Income [Abstract]
Net income	$ 1,248,000,000	$ 1,276,000,000	$ 3,801,000,000	$ 3,644,000,000
Other Comprehensive Income (Loss), Net Of Tax [Abstract]
Foreign exchange translation adjustment	35,000,000	(383,000,000)	83,000,000	(893,000,000)
Actuarial losses	0	0	0	(17,000,000)
Actuarial losses recognized	4,000,000	5,000,000	11,000,000	15,000,000
Prior service credits recognized	(20,000,000)	(1,000,000)	(58,000,000)	(4,000,000)
Settlements and curtailments	0	2,000,000	0	2,000,000
Pension and other postretirement benefits adjustments	(16,000,000)	6,000,000	(47,000,000)	(4,000,000)
Effective portion of cash flow hedges recognized in other comprehensive income (loss)	(7,000,000)	(8,000,000)	(1,000,000)	60,000,000
Less: Reclassification adjustment for gains (losses) included in net income	(5,000,000)	19,000,000	(18,000,000)	77,000,000
Changes in fair value of effective cash flow hedges	(2,000,000)	(27,000,000)	17,000,000	(17,000,000)
Other comprehensive income (loss), net of tax	17,000,000	(404,000,000)	53,000,000	(914,000,000)
Comprehensive income	1,265,000,000	872,000,000	3,854,000,000	2,730,000,000
Less: Comprehensive income attributable to the noncontrolling interest	8,000,000	8,000,000	23,000,000	66,000,000
Comprehensive income attributable to Honeywell	$ 1,257,000,000	$ 864,000,000	$ 3,831,000,000	$ 2,664,000,000

XML

CONSOLIDATED BALANCE SHEET - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 6,431	$ 5,455
Accounts, notes and other receivables	8,627	8,075
Inventories	4,587	4,420
Investments and other current assets	2,189	2,103
Total current assets	21,834	20,053
Investments and long-term receivables	639	517
Property, plant and equipment - net	5,725	5,789
Goodwill	17,846	15,895
Other intangible assets - net	4,847	4,577
Insurance recoveries for asbestos related liabilities	433	426
Deferred income taxes	335	283
Other assets	1,897	1,776
Total assets	53,556	49,316
Current liabilities:
Accounts payable	5,418	5,580
Commercial paper and other short-term borrowings	5,601	5,937
Current maturities of long-term debt	649	577
Accrued liabilities	6,545	6,277
Total current liabilities	18,213	18,371
Long-term debt	9,608	5,554
Deferred income taxes	701	558
Postretirement benefit obligations other than pensions	477	526
Asbestos related liabilities	1,278	1,251
Other liabilities	3,905	4,348
Redeemable noncontrolling interest	3	290
SHAREOWNERS' EQUITY
Capital - common stock issued	958	958
Capital - additional paid in capital	5,707	5,377
Common stock held in treasury, at cost	(13,182)	(11,664)
Accumulated other comprehensive loss	(2,482)	(2,535)
Retained earnings	28,190	26,147
Total Honeywell shareowners' equity	19,191	18,283
Noncontrolling interest	180	135
Total shareowners' equity	19,371	18,418
Total liabilities, redeemable noncontrolling interest, and shareowners' equity	$ 53,556	$ 49,316

XML

CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash flows from operating activities:
Net income	$ 3,801,000,000	$ 3,644,000,000
Less: Net income attributable to the noncontrolling interest	26,000,000	70,000,000
Net income attributable to Honeywell	3,775,000,000	3,574,000,000
Adjustments to reconcile net income attributable to Honeywell to net cash provided by operating activities:
Depreciation	546,000,000	503,000,000
Amortization	227,000,000	158,000,000
Gain on sale of non-strategic businesses and assets	(176,000,000)	(1,000,000)
Repositioning and other charges	567,000,000	393,000,000
Net payments for repositioning and other charges	(420,000,000)	(329,000,000)
Pension and other postretirement income	(471,000,000)	(269,000,000)
Pension and other postretirement benefit payments	(110,000,000)	(84,000,000)
Stock compensation expense	145,000,000	132,000,000
Deferred income taxes	146,000,000	284,000,000
Excess tax benefits from share based payment arrangements	0	(69,000,000)
Other	(33,000,000)	151,000,000
Changes in assets and liabilities, net of the effects of acquisitions and divestitures:
Accounts, notes and other receivables	(570,000,000)	52,000,000
Inventories	(233,000,000)	(20,000,000)
Other current assets	78,000,000	(111,000,000)
Accounts payable	(18,000,000)	(13,000,000)
Accrued liabilities	3,000,000	(795,000,000)
Net cash provided by operating activities	3,456,000,000	3,556,000,000
Cash flows from investing activities:
Expenditures for property, plant and equipment	(749,000,000)	(685,000,000)
Proceeds from disposals of property, plant and equipment	4,000,000	3,000,000
Increase in investments	(3,083,000,000)	(5,701,000,000)
Decrease in investments	2,658,000,000	4,050,000,000
Cash paid for acquisitions, net of cash acquired	(2,568,000,000)	(185,000,000)
Proceeds from sales of businesses, net of fees paid	304,000,000	3,000,000
Other	158,000,000	(69,000,000)
Net cash used for investing activities	(3,276,000,000)	(2,584,000,000)
Cash flows from financing activities:
Net (decrease) increase in commercial paper and other short-term borrowings	(425,000,000)	2,011,000,000
Proceeds from issuance of common stock	386,000,000	150,000,000
Proceeds from issuance of long-term debt	4,510,000,000	48,000,000
Payments of long-term debt	(478,000,000)	(148,000,000)
Excess tax benefits from share based payment arrangements	0	69,000,000
Repurchases of common stock	(1,866,000,000)	(1,721,000,000)
Cash dividends paid	(1,410,000,000)	(1,261,000,000)
Payments to purchase the noncontrolling interest	(238,000,000)	0
AdvanSix pre-separation funding	269,000,000	0
AdvanSix pre-spin borrowing	38,000,000	0
AdvanSix cash at spinoff	(38,000,000)	0
Other	(40,000,000)	(61,000,000)
Net cash provided by (used for) financing activities	708,000,000	(913,000,000)
Effect of foreign exchange rate changes on cash and cash equivalents	88,000,000	(455,000,000)
Net increase (decrease) in cash and cash equivalents	976,000,000	(396,000,000)
Cash and cash equivalents at beginning of period	5,455,000,000	6,959,000,000
Cash and cash equivalents at end of period	$ 6,431,000,000	$ 6,563,000,000

XML

BASIS OF PRESENTATION

9 Months Ended

Sep. 30, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation [Text Block]

Note1. Basis of Presentation

In the opinion of management, the accompanying unaudited consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, necessary to present fairly the financial position of Honeywell International Inc. and its consolidated subsidiaries (Honeywell or the Company) at September 30, 2016, the results of operations for the quarter and nine months endedSeptember 30, 2016 and 2015and the cash flows for the nine months endedSeptember 30, 2016and 2015. The results of operations for the three and nine months endedSeptember 30, 2016should not necessarily be taken as indicative of the results of operations expected for the entire year.

We report our quarterly financial information using a calendar convention; the first, second and third quarters are consistently reported as ending on March 31, June 30 and September 30. It has been our practice to establish actual quarterly closing dates using a predetermined fiscal calendar, which requires our businesses to close their books on a Saturday in order to minimize the potentially disruptive effects of quarterly closing on our business processes. The effects of this practice are generally not significant to reported results for any quarter and only exist within a reporting year. In the event that differences in actual closing dates are material to year-over-year comparisons of quarterly or year-to-date results, we will provide appropriate disclosures. Our actual closing dates for the three and nine months endedSeptember 30, 2016 and 2015 were October 1, 2016 and September 26, 2015.

XML

RECENT ACCOUNTING PRONOUNCEMENTS

9 Months Ended

Sep. 30, 2016

New Accounting Pronouncements And Changes In Accounting Principles [Abstract]

Recent Accounting Pronouncements [Text Block]

Note2. Recent Accounting Pronouncements

Accounting pronouncements not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on our consolidated financial position or results of operations.

In May 2014, and in subsequent related updates and amendments, the Financial Accounting Standards Board (FASB) issued guidance on revenue from contracts with customers that will supersede most current revenue recognition guidance, including industry-specific guidance. The underlying principle is that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. The guidance provides a five-step analysis of transactions to determine when and how revenue is recognized. Other major provisions include capitalization of certain contract costs, consideration of the time value of money in the transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. The guidance also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. The effective date was deferred for one year to the interim and annual periods beginning on or after December 15, 2017. Early adoption is permitted as of the original effective date – interim and annual periods beginning on or after December 15, 2016. The guidance permits the use of either a retrospective or cumulative effect transition method. We have not yet selected a transition method and are currently evaluating the impact of the amended guidance on our consolidated financial position, results of operations and related disclosures.

In February 2016, the FASB issued guidance on accounting for leases which requires lessees to recognize most leases on their balance sheets for the rights and obligations created by those leases. The guidance requires enhanced disclosures regarding the amount, timing, and uncertainty of cash flows arising from leases and will be effective for interim and annual periods beginning after December 15, 2018. Early adoption is permitted. The guidance requires the use of a modified retrospective approach. We are evaluating the impact of the guidance on our consolidated financial position, results of operations and related disclosures.

In March 2016, the FASB issued amended guidance related to employee share-based payment accounting.  The guidance requires all income tax effects of awards to be recognized in the income statement, which were previously presented as a component of Shareowners’ Equity, on a prospective basis.  The guidance also requires presentation of excess tax benefits as an operating activity on the statement of cash flows rather than as a financing activity.  We have elected to early adopt the standard in the quarter ended September 30, 2016, which requires adoption effective as of the beginning of the fiscal year.  The primary impact of adoption was the recognition of excess tax benefits as a reduction in the provision for income taxes and related diluted earnings per share impacts of $30 million ($0.03 diluted earnings per share) for the quarter ended March 31, 2016, $38 million ($0.04 diluted earnings per share) for the quarter ended June 30, 2016 and $57 million ($0.07 diluted earnings per share) for the quarter ended September 30, 2016. These excess tax benefits previously reported in financing activities in the Consolidated Statement of Cash Flows are now reported as operating activities. Cash paid by the Company when directly withholding shares for tax-withholding purposes are classified as a financing activity on a retrospective basis.

The guidance allows for an accounting policy election to estimate the number of awards that are expected to vest or account for forfeitures when they occur. We elected to maintain the current forfeitures policy and will continue to include an estimate of those forfeitures when recognizing stock compensation expense. Classification of the excess tax benefits in the Consolidated Statement of Cash Flows are presented on a prospective basis starting January 1, 2016.

In August 2016, the FASB issued new guidance intended to reduce diversity in practice in how certain cash receipts and payments are classified in the statement of cash flows, including debt prepayment or extinguishment costs, the settlement of contingent liabilities arising from a business combination, proceeds from insurance settlements, and distributions from certain equity method investees. The guidance is effective for interim and annual periods beginning after December 15, 2017, and early adoption is permitted. The guidance requires application using a retrospective transition method. The Company is currently evaluating the impact of adopting this guidance.

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ACQUISITIONS AND DIVESTITURES

9 Months Ended

Sep. 30, 2016

Business Combinations [Abstract]

Acquisitions and Divestitures [Text Block]

Note 3. Acquisitions and Divestitures

During the quarter and nine months we acquired businesses for an aggregate cost (net of cash acquired and debt assumed) of $1,483 million and $2,532 million.

On August 29, 2016, the Company acquired Intelligrated, a leading provider of supply chain and warehouse automation technologies, for an aggregate value, net of cash acquired, of approximately $1,483 million. Intelligrated is part of Safety and Productivity Solutions. The preliminary determination of the assets and liabilities acquired with Intelligrated have been included in the Consolidated Balance Sheet as of September 30, 2016, including $1,124 million allocated to goodwill, which is non-deductible for tax purposes.

In December 2015, the Company acquired the Elster Division of Melrose Industries plc(Elster) for an aggregate value, net of cash acquired, of approximately $4,899 million. Elster is part of Home and Building Technologies and Performance Materials and Technologies. The following table summarizes the updated fair value estimates of the Elster assets and liabilities acquired as of the acquisition date:

Current assets	$	522
Intangible assets		2,160
Other noncurrent assets		194
Current liabilities		(456)
Noncurrent liabilities		(919)
Net assets acquired		1,501
Noncontrolling interest		(3)
Goodwill		3,401
Purchase Price	$	4,899

The purchase accounting for Elster and Intelligrated is subject to final adjustment, primarily for the valuation of intangible assets, amounts allocated to goodwill, tax balances and certain pre-acquisition contingencies.

On October 1, 2016 the Company completed the tax-free spin-off of its Resins and Chemicals business, part of Performance Materials and Technologies, into a standalone, publicly-traded company (named AdvanSix) to Honeywell shareowners. Since the effective date of the spin-off falls within the fiscal third quarter, the assets and liabilities associated with AdvanSix have been removed from the Company’s third quarter Consolidated Balance Sheet. The results of operations for AdvanSix are included in the Consolidated Statement of Operations through the effective date of the spin-off. See Note 1 Basis of Presentation of Notes to Financial Statements for further discussion of the Company’s actual quarterly closing date convention.

Honeywell shareowners of record as of the close of business on September 16, 2016 received one share of AdvanSix common stock for every 25 shares of Honeywell common stock. Immediately prior to the effective date of the spin-off, AdvanSix incurred debt to make a cash distribution of $269 million to the Company. At the same time, AdvanSix also incurred $38 million of borrowings in order to fund its post spin-off working capital.

The Company entered into certain agreements with AdvanSix to effect our legal and structural separation including a transition services agreement with AdvanSix to provide certain administrative and other services for a limited time.

On September 16, 2016 the Company completed the sale of Honeywell Technology Solutions Inc. for a sale price of $300 million. The Company recognized a pre-tax gain of $176 million. The Honeywell Technology Solutions business was part of Aerospace.

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REPOSITIONING AND OTHER CHARGES

9 Months Ended

Sep. 30, 2016

Repositioning And Other Charges [Abstract]

Repositioning and Other Charges

Note 4. Repositioning and Other Charges

	A summary of repositioning and other charges follows:
			Three Months Ended				Nine Months Ended
			September 30,				September 30,
			2016		2015		2016		2015
Severance		$	155	$	63	$	253	$	138
Asset impairments			11		1		42		9
Exit costs			36		1		41		3
Reserve adjustments			(31)		(31)		(92)		(43)
Total net repositioning charge			171		34		244		107
Asbestos related litigation charges,
net of insurance			64		50		173		142
Probable and reasonably estimable
environmental liabilities			49		49		132		144
Other			18		-		18		-
Total net repositioning and other charges		$	302	$	133	$	567	$	393

The following table summarizes the pretax distribution of total net repositioning and other charges by income statement classification:
		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2016		2015		2016		2015
Cost of products and services sold	$	226	$	129	$	410	$	363
Selling, general and administrative expenses		53		4		110		30
Other (income) expense		23		-		47		-
	$	302	$	133	$	567	$	393

The following table summarizes the pretax impact of total net repositioning and other charges by
segment:
		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2016		2015		2016		2015
Aerospace	$	144	$	38	$	265	$	134
Home and Building Technologies		24		12		36		38
Performance Materials and Technologies		35		9		71		30
Safety and Productivity Solutions		10		16		4		29
Corporate		89		58		191		162
	$	302	$	133	$	567	$	393

In the quarter ended September 30, 2016, we recognized a repositioning charge totaling$202million including severance costs of $155 million related to workforce reductions of3,017 manufacturing and administrative positions across our segments. The workforce reductions were primarily related to the separation of the former Automation and Control Solutions reporting segment into two new reporting segments (Home and Building Technologies and Safety and Productivity Solutions); factory transitions in Aerospace, Home and Building Technologies, Safety and Productivity Solutions and Performance Materials and Technologies to more cost-effective locations; and cost savings actions taken in connection with our productivity and ongoing functional transformation initiatives. The repositioning charge included exit costs of $36 million principally for expenses related to the spin-off of our AdvanSix business and closure obligations associated with factory transitions. Also, $31 million of previously established accruals for severance were returned to income as a result of higher attrition than anticipated in prior severance programs resulting in lower required severance payments, and changes in the scope of previously announced repositioning actions.

In the quarter ended September 30, 2015, we recognized a repositioning charge totaling $65million primarily for severance costs related to workforce reductions of902manufacturing and administrative positions across our segments. The workforce reductions were primarily related to cost savings actions taken in connection with our productivity and ongoing functional transformation initiatives. Also, $31 million of previously established accruals for severance were returned to income as a result of higher attrition than anticipated in prior severance programs resulting in lower required severance payments, and changes in the scope of previously announced repositioning actions.

Inthe nine months endedSeptember 30, 2016, we recognized a repositioning charge totaling $336million including severance costs of $253 million related to workforce reductions of 5,888 manufacturing and administrative positions across our segments. The workforce reductions were primarily related to cost savings actions taken in connection with our productivity and ongoing functional transformation initiatives;the separation of the former Automation and Control Solutions reporting segment into two new reporting segments; factory transitions in Aerospace, Home and Building Technologies, Safety and Productivity Solutions and Performance Materials and Technologies to more cost-effective locations; and achieving acquisition-related synergies. The repositioning charge included asset impairments of $42 million principally related to the write-off of certain intangible assets in connection with the sale of a Performance Materials and Technologies business. The repositioning charge included exit costs of $41 million principally for expenses related to the spin-off of our AdvanSix business and closure obligations associated with factory transitions. Also, $92 million of previously established accruals, primarily for severance, were returned to income as a result of higher attrition than anticipated in prior severance programs resulting in lower required severance payments, lower than expected severance costs in certain repositioning actions, and changes in the scope of previously announced repositioning actions.

In the nine months endedSeptember 30, 2015, we recognized a repositioning charge totaling$150million primarily for severance costsrelated to workforce reductions of4,882manufacturing and administrative positions across our segments. The workforce reductions were primarily related to cost savings actions taken in connection with our productivity and ongoing functional transformation initiatives and outsourcing of certain component manufacturing in Home and Building Technologies. Also, $43 million of previously established accruals, primarily for severance, were returned to income as a result of higher attrition than anticipated in prior severance programs resulting in lower required severance payments,and changes in the scope of previously announced repositioning actions.

The following table summarizes the status of our total repositioning reserves:
		Severance		Asset		Exit
		Costs		Impairments		Costs		Total
December 31, 2015	$	329	$	-	$	21	$	350
Charges		253		42		41		336
Usage - cash		(135)		-		(8)		(143)
Usage - noncash		(6)		(42)		-		(48)
Foreign currency translation		7		-		-		7
Adjustments		(91)		-		(1)		(92)
September 30, 2016	$	357	$	-	$	53	$	410

Certain repositioning projects in 2016 and 2015 included exit or disposal activities, the costs related to which will be recognized in future periods when the actual liability is incurred. Such exit and disposal costs are not expected to be significant.

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EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2016

Earnings Per Share [Abstract]

Earnings Per Share

Note5. Earnings Per Share

		Three Months Ended				Nine Months Ended
		September 30,				September 30,
Basic		2016		2015		2016		2015
Net income attributable to Honeywell	$	1,240	$	1,264	$	3,775	$	3,574
Weighted average shares outstanding		763.7		780.4		765.0		782.5
Earnings per share of common stock	$	1.62	$	1.62	$	4.93	$	4.57

		Three Months Ended				Nine Months Ended
		September 30,				September 30,
Assuming Dilution		2016		2015		2016		2015
Net income attributable to Honeywell	$	1,240	$	1,264	$	3,775	$	3,574
Average Shares
Weighted average shares outstanding		763.7		780.4		765.0		782.5
Dilutive securities issuable - stock plans		10.7		9.1		11.3		9.6
Total weighted average shares outstanding		774.4		789.5		776.3		792.1
Earnings per share of common stock	$	1.60	$	1.60	$	4.86	$	4.51

The diluted earnings per share calculations exclude the effect of stock options when the options’ assumed proceeds exceed the average market price of the common shares during the period. For the three and nine months endedSeptember 30, 2016, the weighted average number of stock options excluded from the computations were 5.5million and 6.9million. For thethree and nine months endedSeptember 30, 2015, the weighted average number of stock options excluded from the computations were 7.0million and 7.3 million. These stock options were outstanding at the end of each period.

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ACCOUNTS, NOTES AND OTHER RECEIVABLES

9 Months Ended

Sep. 30, 2016

Accounts, Notes And Other Receivables [Abstract]

Accounts, Notes and Other Receivables

Note 6. Accounts, Notes and Other Receivables

		September 30,		December 31,
		2016		2015
Trade	$	8,333	$	7,901
Other		583		436
		8,916		8,337
Less: Allowance for doubtful accounts		(289)		(262)
	$	8,627	$	8,075

Trade receivables include $1,642 and $1,590 million of unbilled balances under long-term contracts as of September 30, 2016 and December 31, 2015. These amounts are billed in accordance with the terms of customer contracts to which they relate.

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INVENTORIES

9 Months Ended

Sep. 30, 2016

Inventories [Abstract]

Inventories

Note 7. Inventories

		September 30,		December 31,
		2016		2015
Raw materials	$	1,160	$	1,120
Work in process		799		826
Finished products		2,693		2,590
		4,652		4,536
Reduction to LIFO cost basis		(65)		(116)
	$	4,587	$	4,420

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PROPERTY, PLANT AND EQUIPMENT

9 Months Ended

Sep. 30, 2016

Property Plant And Equipment [Abstract]

Property Plant And Equipment Disclosure [Text Block]

Note 8. Property, Plant and Equipment - Net

	September 30,		December 31,
	2016		2015
Land and improvements	$	380	$	367
Machinery and equipment		9,872		10,505
Buildings and improvements		3,391		3,188
Construction in progress		965		848
		14,608		14,908
Less—Accumulated depreciation		(8,883)		(9,119)
	$	5,725	$	5,789

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GOODWILL

9 Months Ended

Sep. 30, 2016

Goodwill And Other Intangible Assets Net [Abstract]

Goodwill and Other Intangible Assets, Net

Note9. Goodwill

The change in the carrying amount of goodwill for the nine months endedSeptember 30, 2016 by segment is as follows:

						Currency
		December 31,		Acquisitions/		Translation		September 30,
		2015		Divestitures		Adjustment		2016
Aerospace	$	2,296	$	184	$	(19)	$	2,461
Home and Building
Technologies		6,438		673		20		7,131
Performance Materials
and Technologies		3,771		(136)		41		3,676
Safety and Productivity
Solutions		3,390		1,178		10		4,578
	$	15,895	$	1,899	$	52	$	17,846

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LONG-TERM DEBT AND CREDIT AGREEMENTS

9 Months Ended

Sep. 30, 2016

Long Term Debt And Credit Agreements [Abstract]

Long-term Debt and Credit Agreements

Note 10. Long-term Debt and Credit Agreements

		September 30,		December 31,
		2016		2015
5.40% notes due 2016	$	-	$	400
5.30% notes due 2017		400		400
Floating rate Euro notes due 2018		1,116		-
5.30% notes due 2018		900		900
5.00% notes due 2019		900		900
0.65% Euro notes due 2020		1,116		-
4.25% notes due 2021		800		800
1.30% Euro notes due 2023		1,395		-
3.35% notes due 2023		300		300
2.25% Euro notes due 2028		837		-
5.70% notes due 2036		550		550
5.70% notes due 2037		600		600
5.375% notes due 2041		600		600
Industrial development bond obligations, floating
rate maturing at various dates through 2037		30		30
6.625% debentures due 2028		216		216
9.065% debentures due 2033		51		51
Other (including capitalized leases and debt issuance costs),
0.6%-9.5% maturing at various dates through 2023		446		384
		10,257		6,131
Less: current portion		(649)		(577)
	$	9,608	$	5,554

In February 2016, the Company issued €1,000 million Floating Rate Senior Notes due 2018, €1,000 million 0.65% Senior Notes due 2020, €1,250 million 1.30% Senior Notes due 2023 and €750 million 2.25% Senior Notes due 2028 (collectively, the “Euro Notes”). The Euro Notes are senior unsecured and unsubordinated obligations of Honeywell and rank equally with all of Honeywell’s existing and future senior unsecured debt and senior to all of Honeywell’s subordinated debt. The offering resulted in gross proceeds of $4,438 million, offset by $17 million in discount and closing costs related to the offering.

On April 29, 2016, the Company entered into Amendment No. 2 (Amendment) to the Amended and Restated $4 billion Credit Agreement dated as of July 10, 2015, as amended by the certain Amendment No. 1 dated as of September 30, 2015 (as so amended, the “Credit Agreement”), with a syndicate of banks. The Credit Agreement is maintained for general corporate purposes. Commitments under the Credit Agreement can be increased pursuant to the terms of the Credit Agreement to an aggregate amount not to exceed $4.5 billion. The Amendment, among other things, extends the Credit Agreement’s termination date from July 10, 2020 to July 10, 2021.

On April 29, 2016, the Company entered into a $1.5 billion 364-Day Credit Agreement (364-Day Credit Agreement) with a syndicate of banks. The 364-Day Credit Agreement is maintained for general corporate purposes.

On April 29, 2016, the Company terminated all commitments under the $3 billion credit agreement dated as of September 30, 2015, among the Company, the lenders party thereto and Citibank, N.A., as administrative agent.

A full description of the Credit Agreement and the 364-Day Credit Agreement can be found in the Company’s Current Report on Form 8-K, dated April 29, 2016.

On August5, 2016, the Company entered into a $1.5 billion 364-Day Credit Agreement (Second 364-Day Credit Agreement) with a syndicate of banks. The Second 364-Day Credit Agreement is maintained for general corporate purposes.

A full description of the Second 364-day Credit Agreement can be found in the Company’s Current Report on Form 8-K, dated August 5, 2016.

There have been no borrowings under any of the credit agreements previously described.

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FINANCIAL INSTRUMENTS AND FAIR VALUE MEASURES

9 Months Ended

Sep. 30, 2016

Financial Instruments And Fair Value Measures [Abstract]

Financial Instruments and Fair Value Measures

Note 11. Financial Instruments and Fair Value Measures

Our credit, market, foreign currency and interest rate risk management policies are described in Note 14, Financial Instruments and Fair Value Measures, of Notes to Financial Statements in our 2015 Annual Report on Form 10-K.

The following table sets forth the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis:

		September 30,		December 31,
		2016		2015
Assets:
Foreign currency exchange contracts	$	51	$	28
Available for sale investments		1,823		1,501
Interest rate swap agreements		115		92
Liabilities:
Foreign currency exchange contracts	$	30	$	17

The foreign currency exchange contracts and interest rate swap agreements are valued using broker quotations or market transactions in either the listed or over-the-counter markets. These derivative instruments are classified within level 2. The Companyholds investments incertificates of deposits,time deposits and commercial paper that are designated as available for sale and are valued using published prices based on observable market data. These investments are classified within level 2.The Companyalso holds available for sale investments in U.S. government and corporate debt securities valued utilizing published prices based onquoted market pricing, which are classified within level 1.

The carrying value of cash and cash equivalents, trade accounts and notes receivables, payables, commercial paper and short-term borrowings contained in the Consolidated Balance Sheet approximates fair value. The following table sets forth the Company’s financial assets and liabilities that were not carried at fair value:

	September 30, 2016				December 31, 2015
	Carrying		Fair		Carrying		Fair
	Value		Value		Value		Value
Assets
Long-term receivables	$	281	$	272	$	292	$	283
Liabilities
Long-term debt and related current maturities	$	10,257	$	11,357	$	6,131	$	6,721

The Company determined the fair value of the long-term receivables by discounting based upon the terms of the receivable and counterparty details including credit quality. The fair value of these receivables is considered level 2. The Company determined the fair value of the long-term debt and related current maturities utilizing transactions in the listed markets for identical or similar liabilities. The fair value of the long-term debt and related current maturities is also considered level 2.

Interest rate swap agreements are designated as hedge relationships with gains or losses on the derivative recognized in Interest and other financial charges offsetting the gains and losses on the underlying debt being hedged. For the three and nine months endedSeptember 30, 2016,werecognized $14 million of losses and $23 million of gains inearnings on interest rate swap agreements. For the three and nine months endedSeptember 30, 2015, we recognized $24 millionand $11 million of gains in earnings on interest rate swap agreements. Gains and losses are fully offset by losses and gains on the underlying debt being hedged.

We also economically hedge our exposure to changes in foreign exchange rates principally with forward contracts. These contracts are marked-to-market with the resulting gains and losses recognized in earnings offsetting the gains and losses on the non-functional currency denominated monetary assets and liabilities being hedged. We recognized $24 million and $114 million of income in Other (Income) Expense for the three and nine months endedSeptember 30, 2016. We recognized $72 million of income and $66 million of expense in Other (Income) Expense for the three and nine months endedSeptember 30, 2015.

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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

9 Months Ended

Sep. 30, 2016

Accumulated Other Comprehensive Income Loss [Abstract]

Accumulated Other Comprehensive Income (Loss)

Note 12. Accumulated Other Comprehensive Income (Loss)

Changes in Accumulated Other Comprehensive Income by Component

					Pension		Changes in
			Foreign		and Other		Fair Value
			Exchange		Postretirement		of Effective
			Translation		Benefits		Cash Flow
			Adjustment		Adjustments		Hedges		Total
Balance at December 31, 2015		$	(1,892)	$	(644)	$	1	$	(2,535)
	Other comprehensive income
	(loss) before reclassifications		83		-		(1)		82
	Amounts reclassified from
	accumulated other
	comprehensive income (loss)		-		(47)		18		(29)
	Net current period other
	comprehensive income (loss)		83		(47)		17		53
Balance at September 30, 2016		$	(1,809)	$	(691)	$	18	$	(2,482)
					Pension		Changes in
			Foreign		and Other		Fair Value
			Exchange		Postretirement		of Effective
			Translation		Benefits		Cash Flow
			Adjustment		Adjustments		Hedges		Total
Balance at December 31, 2014		$	(740)	$	(728)	$	9	$	(1,459)
	Other comprehensive income
	(loss) before reclassifications		(893)		(17)		60		(850)
	Amounts reclassified from
	accumulated other
	comprehensive income (loss)		-		13		(77)		(64)
	Net current period other
	comprehensive income (loss)		(893)		(4)		(17)		(914)
Balance at September 30, 2015		$	(1,633)	$	(732)	$	(8)	$	(2,373)

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SEGMENT FINANCIAL DATA

9 Months Ended

Sep. 30, 2016

Segment Financial Data [Abstract]

Segment Financial Data

Note13. Segment Financial Data

We globally manage our business operations through four reportable operating segments. Segment information is consistent with how management reviews the businesses, makes investing and resource allocation decisions and assesses operating performance.

Honeywell’s senior management evaluates segment performance based on segment profit. Segment profit is measured as business unit income (loss) before taxes excluding general corporate unallocated expense, other income (expense), interest and other financial charges, pension and other postretirement income (expense), stock compensation expense, repositioning and other charges.

In July 2016, the Company announced that it is realigning the business units comprising its Automation and Control Solutions reporting segment by forming two new reportable operating segments: Home and Building Technologies and Safety and Productivity Solutions.  Home and Building Technologies includes Environmental & Energy Solutions, Security and Fire, and Building Solutions and Distribution. Additionally, the Industrial Combustion/Thermal business, previously part of Environmental & Energy Solutions in Automation and Control Solutions, became part of Performance Materials and Technologies. Safety and Productivity Solutions includes Sensing & Productivity Solutions and Industrial Safety, as well as the Intelligrated business. Under the realigned segment reporting structure, the Company has four reportable operating segments:  Aerospace, Home and Building Technologies, Performance Materials and Technologies and Safety and Productivity Solutions. Effective with the quarter ended September 30, 2016 the Company has reported its financial performance based on this realignment.

These realignments have no impact on the Company’s historical consolidated financial position, results of operations or cash flows. Prior period amounts have been reclassified to conform to current period segment presentation. 

		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2016		2015		2016		2015
Net Sales
Aerospace
Products	$	2,358	$	2,557	$	7,404	$	7,643
Services		1,243		1,263		3,681		3,611
Total		3,601		3,820		11,085		11,254
Home and Building Technologies
Products		2,360		2,020		6,931		5,825
Services		341		293		923		861
Total		2,701		2,313		7,854		6,686
Performance Materials and Technologies
Products		1,924		1,810		5,822		5,784
Services		405		469		1,222		1,353
Total		2,329		2,279		7,044		7,137
Safety and Productivity Solutions
Products		1,102		1,186		3,241		3,483
Services		71		13		93		39
Total		1,173		1,199		3,334		3,522
	$	9,804	$	9,611	$	29,317	$	28,599
Segment Profit
Aerospace	$	663	$	833	$	2,252	$	2,362
Home and Building Technologies		441		408		1,213		1,088
Performance Materials and Technologies		503		474		1,484		1,517
Safety and Productivity Solutions		172		193		495		565
Corporate		(59)		(56)		(157)		(156)
Total segment profit		1,720		1,852		5,287		5,376
Other income (expense)(a)		169		15		174		39
Interest and other financial charges		(82)		(72)		(252)		(226)
Stock compensation expense(b)		(49)		(41)		(145)		(132)
Pension ongoing income(b)		146		96		447		299
Other postretirement income (expense)(b)		7		(10)		24		(30)
Repositioning and other charges (b)		(279)		(133)		(520)		(393)
Income before taxes	$	1,632	$	1,707	$	5,015	$	4,933
(a) Equity income (loss) of affiliated companies is included in segment profit.
(b) Amounts included in cost of products and services sold and selling, general and administrative expenses.

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PENSION BENEFITS

9 Months Ended

Sep. 30, 2016

Pension Disclosure Paragraph Details [Abstract]

Pension Benefits

Note14. Pension Benefits

Net periodic pension benefit income for our significant defined benefit plans include the following components:

		U.S. Plans
		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2016		2015		2016		2015
Service cost	$	48	$	58	$	143	$	172
Interest cost		150		179		450		535
Expected return on plan assets		(306)		(321)		(918)		(962)
Amortization of prior service (credit) cost		(11)		5		(33)		17
Settlements and curtailments		-		8		-		8
	$	(119)	$	(71)	$	(358)	$	(230)
		Non-U.S. Plans
		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2016		2015		2016		2015
Service cost	$	11	$	13	$	36	$	39
Interest cost		43		44		137		133
Expected return on plan assets		(92)		(91)		(291)		(270)
Amortization of transition obligation		-		1		-		1
Amortization of prior service (credit)		-		(1)		(2)		(2)
Settlements and curtailments		-		2		-		2
	$	(38)	$	(32)	$	(120)	$	(97)

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COMMITMENTS AND CONTINGENCIES

9 Months Ended

Sep. 30, 2016

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 15. Commitments and Contingencies

Environmental Matters

Our environmental matters are described in Note 19 Commitments and Contingencies of Notes to Financial Statements in our 2015 Annual Report on Form 10-K.

The following table summarizes information concerning our recorded liabilities for environmental costs:

December 31, 2015	$	518
Accruals for environmental matters deemed
probable and reasonably estimable		132
Environmental liability payments		(144)
Other		(4)
September 30, 2016	$	502

Environmental liabilities are included in the following balance sheet accounts:
			September 30,		December 31,
			2016		2015
	Accrued liabilities	$	251	$	253
	Other liabilities		251		265
		$	502	$	518

We do not currently possess sufficient information to reasonably estimate the amounts of environmental liabilities to be recorded upon future completion of studies, litigation or settlements, and neither the timing nor the amount of the ultimate costs associated with environmental matters can be determined although they could be material to our consolidated results of operations and operating cash flows in the periods recognized or paid. However, considering our past experience and existing reserves, we do not expect that environmental matters will have a material adverse effect on our consolidated financial position.

Onondaga Lake, Syracuse, NY—We are implementing a combined dredging/capping remedy of Onondaga Lake pursuant to a consent decree approved by the United States District Court for the Northern District of New York in January 2007. We have accrued for our estimated cost of remediating OnondagaLake based on currently available information and analysis performed by our engineering consultants. Honeywell is also conducting remedial investigations and activities at other sites in Syracuse. We have recorded reserves for these investigations and activities where appropriate, consistent with the accounting policy described above.

Honeywell has entered into a cooperative agreement with potential natural resource trustees to assess alleged natural resource damages relating to this site. It is not possible to predict the outcome or duration of this assessment, or the amounts of, or responsibility for, any damages.

Asbestos Matters

Honeywell is a defendant in asbestos related personal injury actions related to two predecessor companies:

• North American Refractories Company (NARCO), which was sold in 1986, produced refractory products (bricks and cement used in high temperature applications). Claimants consist largely of individuals who allege exposure to NARCO asbestos-containing refractory products in an occupational setting.
• Bendix Friction Materials (Bendix) business, which was sold in 2014, manufactured automotive brake parts that contained chrysotile asbestos in an encapsulated form. Claimants consist largely of individuals who allege exposure to asbestos from brakes from either performing or being in the vicinity of individuals who performed brake replacements.

The following tables summarize information concerning NARCO and Bendix asbestos related balances:

Asbestos Related Liabilities
		Bendix		NARCO		Total
December 31, 2015	$	622	$	921	$	1,543
Accrual for update to estimated liability		170		7		177
Asbestos related liability payments		(143)		(7)		(150)
September 30, 2016	$	649	$	921	$	1,570

Insurance Recoveries for Asbestos Related Liabilities
		Bendix		NARCO		Total
December 31, 2015	$	124	$	325	$	449
Probable insurance recoveries related to
estimated liability		16		-		16
Insurance receivables settlements		8		-		8
Insurance receipts for asbestos related liabilities		(14)		(3)		(17)
September 30, 2016	$	134	$	322	$	456

NARCO and Bendix asbestos related balances are included in the following balance sheet accounts:
		September 30,		December 31,
		2016		2015
Other current assets	$	23	$	23
Insurance recoveries for asbestos related liabilities		433		426
	$	456	$	449
Accrued liabilities	$	292	$	292
Asbestos related liabilities		1,278		1,251
	$	1,570	$	1,543

NARCO Products –In connection with NARCO’s emergence from bankruptcy on April 30, 2013, a federally authorized 524(g) trust (NARCO Trust) was established for the evaluation and resolution of all existing and future NARCO asbestos claims. Both Honeywell and NARCO are protected by a permanent channeling injunction barring all present and future individual actions in state or federal courts and requiring all asbestos related claims based on exposure to NARCO asbestos-containing products to be made against the NARCO Trust. The NARCO Trust reviews submitted claims and determines award amounts in accordance with established Trust Distribution Procedures approved by the Bankruptcy Court which set forth the criteria claimants must meet to qualify for compensation including, among other things, exposure and medical criteria that determine the award amount. In addition, Honeywell provided, and continues to provide, input to the design of control procedures for processing NARCO claims, and has on-going audit rights to review and monitor the claims processors’ adherence to the established requirements of the Trust Distribution Procedures.

Honeywell is obligated to fund NARCO asbestos claims submitted to the NARCO Trust which qualify for payment under the Trust Distribution Procedures (Annual Contribution Claims), subject to annual caps of $140 million in the years 2016 through 2018 and $145 million for each year thereafter. However, the initial $100 million of claims processed through the NARCO Trust (the Initial Claims Amount) will not count against the annual cap and any unused portion of the Initial Claims Amount will roll over to subsequent years until fully utilized. In 2015, Honeywell filed suit against the NARCO Trust in Bankruptcy Court alleging breach of certain provisions of the Trust Agreement and Trust Distribution Procedures. The parties agreed to dismiss the proceeding without prejudice pursuant to an 18 month Standstill Agreement. Claims processing will continue during this period subject to a defined dispute resolution process. As of September 30, 2016,Honeywell has not made any payments to the NARCO Trust for Annual Contribution Claims.

Honeywell is also responsible for payments due to claimants pursuant to settlement agreements reached during the pendency of the NARCO bankruptcy proceedings that provide for the right to submit claims to the NARCO Trust subject to qualification under the terms of the settlement agreements and Trust Distribution Procedures criteria (Pre-established Unliquidated Claims), which amounts are estimated at $150 million and are expected to be paid during the initial years of trust operations ($5 million of which has been paid since the effective date of the NARCO Trust). Such payments are not subject to the annual cap described above.

Our consolidated financial statements reflect an estimated liability for pre-established unliquidated claims ($145 million), unsettled claims pending as of the time NARCO filed for bankruptcy protection ($33 million) and for the estimated value of future NARCO asbestos claims expected to be asserted against the NARCO Trust through 2018 ($743 million). In the absence of actual trust experience on which to base the estimate, Honeywell projected the probable value of asbestos related future liabilities, including trust claim handling costs, based on a commonly accepted methodology used by numerous bankruptcy courts addressing 524(g) trusts. Some critical assumptions underlying this methodology include claims filing rates, disease criteria and payment values contained in the Trust Distribution Procedures, estimated approval rates of claims submitted to the NARCO Trust and epidemiological studies estimating disease instances. This projection resulted in a range of estimated liability of $743 million to $961 million. We believe that no amount within this range is a better estimate than any other amount and accordingly, we have recorded the minimum amount in the range. In light of the uncertainties inherent in making long-term projections and in connection with the recent implementation of the Trust Distribution Procedures by the NARCO Trust, as well as the stay of all NARCO asbestos claims which remained in place throughout NARCO’s Chapter 11 case, we do not believe that we have a reasonable basis for estimating NARCO asbestos claims beyond 2018.

Our insurance receivable corresponding to the estimated liability for pending and future NARCO asbestos claims reflects coverage which reimburses Honeywell for portions of NARCO-related indemnity and defense costs and is provided by a large number of insurance policies written by dozens of insurance companies in both the domestic insurance market and the London excess market. We conduct analyses to estimate the probable amount of insurance that is recoverable for asbestos claims. While the substantial majority of our insurance carriers are solvent, some of our individual carriers are insolvent, which has been considered in our analysis of probable recoveries. We made judgments concerning insurance coverage that we believe are reasonable and consistent with our historical dealings and our knowledge of any pertinent solvency issues surrounding insurers.

Projecting future events is subject to many uncertainties that could cause the NARCO-related asbestos liabilities or assets to be higher or lower than those projected and recorded. Given the uncertainties, we review our estimates periodically, and update them based on our experience and other relevant factors. Similarly, we will reevaluate our projections concerning our probable insurance recoveries in light of any changes to the projected liability or other developments that may impact insurance recoveries.

Friction Products—The following tables present information regarding Bendix related asbestos claims activity:

	Nine Months Ended		Years Ended
	September 30,		December 31,
Claims Activity		2016	2015	2014
Claims Unresolved at the beginning of period		7,779	9,267	12,302
Claims Filed		2,081	2,862	3,694
Claims Resolved (1)		(2,066)	(4,350)	(6,729)
Claims Unresolved at the end of period		7,794	7,779	9,267
(1) Claims resolved in 2014 include 2,110 cancer claims which were determined to have no value. Also, claims resolved in 2015 and 2014 include significantly aged (i.e., pending for more than six years) claims totaling 153 and 1,266.

Disease Distribution of Unresolved Claims	September 30,	December 31,
	2016	2015	2014
Mesothelioma and Other Cancer Claims	3,559	3,772	3,933
Nonmalignant Claims	4,235	4,007	5,334
Total Claims	7,794	7,779	9,267

	Honeywell has experienced average resolution values per claim excluding legal costs as follows:
			Years Ended December 31,
			2015		2014		2013		2012		2011
			(in whole dollars)
Malignant claims		$	44,000	$	53,500	$	51,000	$	49,000	$	48,000
Nonmalignant claims		$	100	$	120	$	850	$	1,400	$	1,000

It is not possible to predict whether resolution values for Bendix-related asbestos claims will increase, decrease or stabilize in the future.

Our consolidated financial statements reflect an estimated liability for resolution of pending (claims actually filed as of the financial statement date) and future Bendix-related asbestos claims. We have valued Bendix pending and future claims using average resolution values for the previous five years. We update the resolution values used to estimate the cost of Bendix pending and future claims during the fourth quarter each year.

The liability for future claims represents the estimated value of future asbestos related bodily injury claims expected to be asserted against Bendix over the next five years. Such estimated cost of future Bendix-related asbestos claims is based on historic claims filing experience and dismissal rates, disease classifications, and resolution values in the tort system for the previous five years. In light of the uncertainties inherent in making long-term projections, as well as certain factors unique to friction product asbestos claims, we do not believe that we have a reasonable basis for estimating asbestos claims beyond the next five years. The methodology used to estimate the liability for future claims is similar to that used to estimate the liability for future NARCO-related asbestos claims.

Our insurance receivable corresponding to the liability for settlement of pending and future Bendix asbestos claims reflects coverage which is provided by a large number of insurance policies written by dozens of insurance companies in both the domestic insurance market and the London excess market. Based on our ongoing analysis of the probable insurance recovery, insurance receivables are recorded in the financial statements simultaneous with the recording of the estimated liability for the underlying asbestos claims. This determination is based on our analysis of the underlying insurance policies, our historical experience with our insurers, our ongoing review of the solvency of our insurers, judicial determinations relevant to our insurance programs, and our consideration of the impacts of any settlements reached with our insurers.

Honeywell believes it has sufficient insurance coverage and reserves to cover all pending Bendix-related asbestos claims and Bendix-related asbestos claims estimated to be filed within the next five years. Although it is impossible to predict the outcome of either pending or future Bendix-related asbestos claims, we do not believe that such claims would have a material adverse effect on our consolidated financial position in light of our insurance coverage and our prior experience in resolving such claims. If the rate and types of claims filed, the average resolution value of such claims and the period of time over which claim settlements are paid (collectively, the Variable Claims Factors) do not substantially change, Honeywell would not expect future Bendix-related asbestos claims to have a material adverse effect on our results of operations or operating cash flows in any fiscal year. No assurances can be given, however, that the Variable Claims Factors will not change.

Other Matters

We are subject to a number of other lawsuits, investigations and disputes (some of which involve substantial amounts claimed) arising out of the conduct of our business, including matters relating to commercial transactions, government contracts, product liability, prior acquisitions and divestitures, employee benefit plans, intellectual property, and environmental, health and safety matters. We recognize a liability for any contingency that is probable of occurrence and reasonably estimable. We continually assess the likelihood of adverse judgments of outcomes in these matters, as well as potential ranges of possible losses (taking into consideration any insurance recoveries), based on a careful analysis of each matter with the assistance of outside legal counsel and, if applicable, other experts. Included in these other matters are the following:

Honeywell v. United Auto Workers (UAW) et. al—In July 2011, Honeywell filed an action in federal court (District of New Jersey) against the UAW and all former employees who retired under a series of Master Collective Bargaining Agreements (MCBAs) between Honeywell and the UAW seeking a declaratory judgment that certain express limitations on its obligation to contribute toward the healthcare coverage of such retirees (the CAPS) set forth in the MCBAs may be implemented, effective January 1, 2012.  The UAW and certain retiree defendants filed a mirror suit in the Eastern District of Michigan alleging that the MCBAs do not provide for CAPS on the Company’s liability for healthcare coverage.  The New Jersey action was dismissed and Honeywell subsequently answered the UAW’s complaint in Michigan and asserted counterclaims for fraudulent inducement, negligent misrepresentation and breach of implied warranty. The UAW filed a motion to dismiss these counterclaims. The court dismissed Honeywell’s fraudulent inducement and negligent misrepresentation claims, but let stand the claim for breach of implied warranty. In the second quarter of 2014, the parties agreed to stay the proceedings with respect to those retirees who retired before the initial inclusions of the CAPS in the 2003 MCBA until the Supreme Court decided the M&G Polymers USA, LLC v. Tackett case. In a ruling on January 26, 2015, the Supreme Court held that retiree health insurance benefits provided in collective bargaining agreements do not carry an inference that they are vested or guaranteed to continue for life and that the “vesting” issue must be decided pursuant to ordinary principles of contract law. The stay of the proceedings has been lifted and the case is again proceeding. Based on the Supreme Court’s ruling, Honeywell is confident that the CAPS will be upheld and that its liability for healthcare coverage premiums with respect to the putative class will be limited as negotiated and expressly set forth in the applicable MCBAs.  In the event of an adverse ruling, however, Honeywell’s other postretirement benefits for pre-2003 retirees would increase by approximately $176 million, reflecting the estimated value of these CAPS.

In December 2013, the UAW and certain of the plaintiffs filed a motion for partial summary judgment with respect to those retirees who retired after the initial inclusion of the CAPS in the 2003 MCBA. The UAW sought a ruling that the 2003 MCBA did not limit Honeywell’s obligation to contribute to healthcare coverage for the post-2003 retirees. That motion remains pending. Honeywell is confident that the Court will find that the 2003 MCBA does, in fact, limit Honeywell’s retiree healthcare obligation for post-2003 retirees. In the event of an adverse ruling, however, Honeywell’s other postretirement benefits for post-2003 retirees would increase by approximately $110 million, reflecting the estimated value of these CAPS.

Joint Strike Fighter Investigation -In 2013 the Company received subpoenas from the Department of Justice requesting information relating primarily to parts manufactured in the United Kingdom and China used in the F-35 fighter jet. The Company is cooperating fully with the investigation. While we believe that Honeywell has complied with all relevant U.S. laws and regulations regarding the manufacture of these sensors, it is not possible to predict the outcome of the investigation or what action, if any, may result from it.

Given the uncertainty inherent in litigation and investigations (including the specific matters referenced above), we do not believe it is possible to develop estimates of reasonably possible loss in excess of current accruals for these matters (other than as specifically set forth above). Considering our past experience and existing accruals, we do not expect the outcome of these matters, either individually or in the aggregate, to have a material adverse effect on our consolidated financial position. Because most contingencies are resolved over long periods of time, potential liabilities are subject to change due to new developments, changes in settlement strategy or the impact of evidentiary requirements, which could cause us to pay damage awards or settlements (or become subject to equitable remedies) that could have a material adverse effect on our results of operations or operating cash flows in the periods recognized or paid.

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ACQUISITIONS AND DIVESTITURES (Tables)

9 Months Ended

Sep. 30, 2016

Business Combinations [Abstract]

Schedule Of Business Acquisitions By Acquisition [Text Block]

Current assets	$	522
Intangible assets		2,160
Other noncurrent assets		194
Current liabilities		(456)
Noncurrent liabilities		(919)
Net assets acquired		1,501
Noncontrolling interest		(3)
Goodwill		3,401
Purchase Price	$	4,899

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REPOSITIONING AND OTHER CHARGES (Tables)

9 Months Ended

Sep. 30, 2016

Repositioning And Other Charges [Abstract]

Repositioning and other charges text block

	A summary of repositioning and other charges follows:
			Three Months Ended				Nine Months Ended
			September 30,				September 30,
			2016		2015		2016		2015
Severance		$	155	$	63	$	253	$	138
Asset impairments			11		1		42		9
Exit costs			36		1		41		3
Reserve adjustments			(31)		(31)		(92)		(43)
Total net repositioning charge			171		34		244		107
Asbestos related litigation charges,
net of insurance			64		50		173		142
Probable and reasonably estimable
environmental liabilities			49		49		132		144
Other			18		-		18		-
Total net repositioning and other charges		$	302	$	133	$	567	$	393

Pretax distribution of total net repositioning and other charges by income statement classification

The following table summarizes the pretax distribution of total net repositioning and other charges by income statement classification:
		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2016		2015		2016		2015
Cost of products and services sold	$	226	$	129	$	410	$	363
Selling, general and administrative expenses		53		4		110		30
Other (income) expense		23		-		47		-
	$	302	$	133	$	567	$	393

Pretax Impact of Total Net Repositioning and Other Charges by Segment

The following table summarizes the pretax impact of total net repositioning and other charges by
segment:
		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2016		2015		2016		2015
Aerospace	$	144	$	38	$	265	$	134
Home and Building Technologies		24		12		36		38
Performance Materials and Technologies		35		9		71		30
Safety and Productivity Solutions		10		16		4		29
Corporate		89		58		191		162
	$	302	$	133	$	567	$	393

Total Repositioning Reserves

The following table summarizes the status of our total repositioning reserves:
		Severance		Asset		Exit
		Costs		Impairments		Costs		Total
December 31, 2015	$	329	$	-	$	21	$	350
Charges		253		42		41		336
Usage - cash		(135)		-		(8)		(143)
Usage - noncash		(6)		(42)		-		(48)
Foreign currency translation		7		-		-		7
Adjustments		(91)		-		(1)		(92)
September 30, 2016	$	357	$	-	$	53	$	410

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EARNINGS PER SHARE (Tables)

9 Months Ended

Sep. 30, 2016

Earnings Per Share [Abstract]

Earnings per share basic

		Three Months Ended				Nine Months Ended
		September 30,				September 30,
Basic		2016		2015		2016		2015
Net income attributable to Honeywell	$	1,240	$	1,264	$	3,775	$	3,574
Weighted average shares outstanding		763.7		780.4		765.0		782.5
Earnings per share of common stock	$	1.62	$	1.62	$	4.93	$	4.57

Earnings per share diluted

		Three Months Ended				Nine Months Ended
		September 30,				September 30,
Assuming Dilution		2016		2015		2016		2015
Net income attributable to Honeywell	$	1,240	$	1,264	$	3,775	$	3,574
Average Shares
Weighted average shares outstanding		763.7		780.4		765.0		782.5
Dilutive securities issuable - stock plans		10.7		9.1		11.3		9.6
Total weighted average shares outstanding		774.4		789.5		776.3		792.1
Earnings per share of common stock	$	1.60	$	1.60	$	4.86	$	4.51

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ACCOUNTS, NOTES AND OTHER RECEIVABLES (Tables)

9 Months Ended

Sep. 30, 2016

Accounts, Notes And Other Receivables [Abstract]

Schedule of trade, notes, and other receivables

		September 30,		December 31,
		2016		2015
Trade	$	8,333	$	7,901
Other		583		436
		8,916		8,337
Less: Allowance for doubtful accounts		(289)		(262)
	$	8,627	$	8,075

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INVENTORIES (Tables)

9 Months Ended

Sep. 30, 2016

Inventories [Abstract]

Inventories

		September 30,		December 31,
		2016		2015
Raw materials	$	1,160	$	1,120
Work in process		799		826
Finished products		2,693		2,590
		4,652		4,536
Reduction to LIFO cost basis		(65)		(116)
	$	4,587	$	4,420

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PROPERTY, PLANT AND EQUIPMENT (Tables)

9 Months Ended

Sep. 30, 2016

Property Plant And Equipment [Abstract]

Property Plant And Equipment [Text Block]

	September 30,		December 31,
	2016		2015
Land and improvements	$	380	$	367
Machinery and equipment		9,872		10,505
Buildings and improvements		3,391		3,188
Construction in progress		965		848
		14,608		14,908
Less—Accumulated depreciation		(8,883)		(9,119)
	$	5,725	$	5,789

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GOODWILL (Tables)

9 Months Ended

Sep. 30, 2016

Goodwill And Other Intangible Assets Net [Abstract]

Carrying amount of goodwill

						Currency
		December 31,		Acquisitions/		Translation		September 30,
		2015		Divestitures		Adjustment		2016
Aerospace	$	2,296	$	184	$	(19)	$	2,461
Home and Building
Technologies		6,438		673		20		7,131
Performance Materials
and Technologies		3,771		(136)		41		3,676
Safety and Productivity
Solutions		3,390		1,178		10		4,578
	$	15,895	$	1,899	$	52	$	17,846

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LONG-TERM DEBT AND CREDIT AGREEMENTS (Tables)

9 Months Ended

Sep. 30, 2016

Long Term Debt And Credit Agreements [Abstract]

Long-Term Debt and Credit Agreements

		September 30,		December 31,
		2016		2015
5.40% notes due 2016	$	-	$	400
5.30% notes due 2017		400		400
Floating rate Euro notes due 2018		1,116		-
5.30% notes due 2018		900		900
5.00% notes due 2019		900		900
0.65% Euro notes due 2020		1,116		-
4.25% notes due 2021		800		800
1.30% Euro notes due 2023		1,395		-
3.35% notes due 2023		300		300
2.25% Euro notes due 2028		837		-
5.70% notes due 2036		550		550
5.70% notes due 2037		600		600
5.375% notes due 2041		600		600
Industrial development bond obligations, floating
rate maturing at various dates through 2037		30		30
6.625% debentures due 2028		216		216
9.065% debentures due 2033		51		51
Other (including capitalized leases and debt issuance costs),
0.6%-9.5% maturing at various dates through 2023		446		384
		10,257		6,131
Less: current portion		(649)		(577)
	$	9,608	$	5,554

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FINANCIAL INSTRUMENTS AND FAIR VALUE MEASURES (Tables)

9 Months Ended

Sep. 30, 2016

Financial Instruments And Fair Value Measures [Abstract]

Schedule Of Fair Value Assets And Liabilities Measured On Recurring Basis Table Text Block

		September 30,		December 31,
		2016		2015
Assets:
Foreign currency exchange contracts	$	51	$	28
Available for sale investments		1,823		1,501
Interest rate swap agreements		115		92
Liabilities:
Foreign currency exchange contracts	$	30	$	17

Financial assets and liabilities that were not carried at fair value

	September 30, 2016				December 31, 2015
	Carrying		Fair		Carrying		Fair
	Value		Value		Value		Value
Assets
Long-term receivables	$	281	$	272	$	292	$	283
Liabilities
Long-term debt and related current maturities	$	10,257	$	11,357	$	6,131	$	6,721

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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)

9 Months Ended

Sep. 30, 2016

Accumulated Other Comprehensive Income (Loss) [Abstract]

Changes in Accumulated Other Comprehensive Income by Component

					Pension		Changes in
			Foreign		and Other		Fair Value
			Exchange		Postretirement		of Effective
			Translation		Benefits		Cash Flow
			Adjustment		Adjustments		Hedges		Total
Balance at December 31, 2015		$	(1,892)	$	(644)	$	1	$	(2,535)
	Other comprehensive income
	(loss) before reclassifications		83		-		(1)		82
	Amounts reclassified from
	accumulated other
	comprehensive income (loss)		-		(47)		18		(29)
	Net current period other
	comprehensive income (loss)		83		(47)		17		53
Balance at September 30, 2016		$	(1,809)	$	(691)	$	18	$	(2,482)
					Pension		Changes in
			Foreign		and Other		Fair Value
			Exchange		Postretirement		of Effective
			Translation		Benefits		Cash Flow
			Adjustment		Adjustments		Hedges		Total
Balance at December 31, 2014		$	(740)	$	(728)	$	9	$	(1,459)
	Other comprehensive income
	(loss) before reclassifications		(893)		(17)		60		(850)
	Amounts reclassified from
	accumulated other
	comprehensive income (loss)		-		13		(77)		(64)
	Net current period other
	comprehensive income (loss)		(893)		(4)		(17)		(914)
Balance at September 30, 2015		$	(1,633)	$	(732)	$	(8)	$	(2,373)

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SEGMENT FINANCIAL DATA (Tables)

9 Months Ended

Sep. 30, 2016

Segment Financial Data [Abstract]

Segment Financial Data

		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2016		2015		2016		2015
Net Sales
Aerospace
Products	$	2,358	$	2,557	$	7,404	$	7,643
Services		1,243		1,263		3,681		3,611
Total		3,601		3,820		11,085		11,254
Home and Building Technologies
Products		2,360		2,020		6,931		5,825
Services		341		293		923		861
Total		2,701		2,313		7,854		6,686
Performance Materials and Technologies
Products		1,924		1,810		5,822		5,784
Services		405		469		1,222		1,353
Total		2,329		2,279		7,044		7,137
Safety and Productivity Solutions
Products		1,102		1,186		3,241		3,483
Services		71		13		93		39
Total		1,173		1,199		3,334		3,522
	$	9,804	$	9,611	$	29,317	$	28,599
Segment Profit
Aerospace	$	663	$	833	$	2,252	$	2,362
Home and Building Technologies		441		408		1,213		1,088
Performance Materials and Technologies		503		474		1,484		1,517
Safety and Productivity Solutions		172		193		495		565
Corporate		(59)		(56)		(157)		(156)
Total segment profit		1,720		1,852		5,287		5,376
Other income (expense)(a)		169		15		174		39
Interest and other financial charges		(82)		(72)		(252)		(226)
Stock compensation expense(b)		(49)		(41)		(145)		(132)
Pension ongoing income(b)		146		96		447		299
Other postretirement income (expense)(b)		7		(10)		24		(30)
Repositioning and other charges (b)		(279)		(133)		(520)		(393)
Income before taxes	$	1,632	$	1,707	$	5,015	$	4,933
(a) Equity income (loss) of affiliated companies is included in segment profit.
(b) Amounts included in cost of products and services sold and selling, general and administrative expenses.

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PENSION BENEFITS (Tables)

9 Months Ended

Sep. 30, 2016

Pension Benefits (Tables) [Abstract]

Defined Benefit Plans Disclosure

		U.S. Plans
		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2016		2015		2016		2015
Service cost	$	48	$	58	$	143	$	172
Interest cost		150		179		450		535
Expected return on plan assets		(306)		(321)		(918)		(962)
Amortization of prior service (credit) cost		(11)		5		(33)		17
Settlements and curtailments		-		8		-		8
	$	(119)	$	(71)	$	(358)	$	(230)
		Non-U.S. Plans
		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2016		2015		2016		2015
Service cost	$	11	$	13	$	36	$	39
Interest cost		43		44		137		133
Expected return on plan assets		(92)		(91)		(291)		(270)
Amortization of transition obligation		-		1		-		1
Amortization of prior service (credit)		-		(1)		(2)		(2)
Settlements and curtailments		-		2		-		2
	$	(38)	$	(32)	$	(120)	$	(97)

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COMMITMENTS AND CONTINGENCIES (Tables)

9 Months Ended

Sep. 30, 2016

Commitments And Contingencies Disclosure [Abstract]

Loss Contingency

December 31, 2015	$	518
Accruals for environmental matters deemed
probable and reasonably estimable		132
Environmental liability payments		(144)
Other		(4)
September 30, 2016	$	502

Environmental liabilities are included in the following balance sheet accounts:

Environmental liabilities are included in the following balance sheet accounts:
			September 30,		December 31,
			2016		2015
	Accrued liabilities	$	251	$	253
	Other liabilities		251		265
		$	502	$	518

Asbestos Related Liabilities

Asbestos Related Liabilities
		Bendix		NARCO		Total
December 31, 2015	$	622	$	921	$	1,543
Accrual for update to estimated liability		170		7		177
Asbestos related liability payments		(143)		(7)		(150)
September 30, 2016	$	649	$	921	$	1,570

Insurance Recoveries for Asbestos Related Liabilities

Insurance Recoveries for Asbestos Related Liabilities
		Bendix		NARCO		Total
December 31, 2015	$	124	$	325	$	449
Probable insurance recoveries related to
estimated liability		16		-		16
Insurance receivables settlements		8		-		8
Insurance receipts for asbestos related liabilities		(14)		(3)		(17)
September 30, 2016	$	134	$	322	$	456

NARCO and Bendix asbestos related balances are included in the following balance sheet accounts

NARCO and Bendix asbestos related balances are included in the following balance sheet accounts:
		September 30,		December 31,
		2016		2015
Other current assets	$	23	$	23
Insurance recoveries for asbestos related liabilities		433		426
	$	456	$	449
Accrued liabilities	$	292	$	292
Asbestos related liabilities		1,278		1,251
	$	1,570	$	1,543

The following tables present information regarding Bendix related asbestos claims activity

	Nine Months Ended		Years Ended
	September 30,		December 31,
Claims Activity		2016	2015	2014
Claims Unresolved at the beginning of period		7,779	9,267	12,302
Claims Filed		2,081	2,862	3,694
Claims Resolved (1)		(2,066)	(4,350)	(6,729)
Claims Unresolved at the end of period		7,794	7,779	9,267
(1) Claims resolved in 2014 include 2,110 cancer claims which were determined to have no value. Also, claims resolved in 2015 and 2014 include significantly aged (i.e., pending for more than six years) claims totaling 153 and 1,266.

Disease distribution of claims

Disease Distribution of Unresolved Claims	September 30,	December 31,
	2016	2015	2014
Mesothelioma and Other Cancer Claims	3,559	3,772	3,933
Nonmalignant Claims	4,235	4,007	5,334
Total Claims	7,794	7,779	9,267

Average resolution values per asbestos claim

	Honeywell has experienced average resolution values per claim excluding legal costs as follows:
			Years Ended December 31,
			2015		2014		2013		2012		2011
			(in whole dollars)
Malignant claims		$	44,000	$	53,500	$	51,000	$	49,000	$	48,000
Nonmalignant claims		$	100	$	120	$	850	$	1,400	$	1,000

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RECENT ACCOUNTING PRONOUNCEMENTS (Details) - USD ($)	3 Months Ended			9 Months Ended
	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Sep. 30, 2016	Sep. 30, 2015
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Excess tax benefits from share based payment arrangements				$ 0	$ 69,000,000
Accounting Standards Update 2016-09 [Member]
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
New Accounting Pronouncement Or Change In Accounting Principle Effect Of Change On Diluted Earnings Per Share	$ 0.07	$ 0.04	$ 0.03
Excess tax benefits from share based payment arrangements	$ 57,000,000	$ 38,000,000	$ 30,000,000

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ACQUISITIONS AND DIVESTITURES (Details) - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Business Combination Recognized Identifiable Assets Acquired Goodwill And Liabilities Assumed Net [Abstract]
Goodwill	$ 17,846,000,000	$ 17,846,000,000		$ 15,895,000,000
Spinoff [Abstract]
AdvanSix pre-separation funding		269,000,000	$ 0
AdvanSix pre-spin borrowing		38,000,000	0
Proceeds From Divestiture Of Businesses		304,000,000	3,000,000
Pretax gain on sale		$ 176,000,000	$ 1,000,000
AdvanSix (formerly Resins and Chemicals Business) [Member]
Spinoff [Abstract]
Spinoff Activities, Description		On October 1, 2016 the Company completed the tax-free spin-off of its Resins and Chemicals business, part of Performance Materials and Technologies, into a standalone, publicly-traded company (named AdvanSix) to Honeywell shareowners. Since the effective date of the spin-off falls within the fiscal third quarter, the assets and liabilities associated with AdvanSix have been removed from the Company’s third quarter Consolidated Balance Sheet. The results of operations for AdvanSix are included in the Consolidated Statement of Operations through the effective date of the spin-off. See Note 1 Basis of Presentation of Notes to Financial Statements for further discussion of the Company’s actual quarterly closing date convention. Honeywell shareowners of record as of the close of business on September 16, 2016 received one share of AdvanSix common stock for every 25 shares of Honeywell common stock. Immediately prior to the effective date of the spin-off, AdvanSix incurred debt to make a cash distribution of $269 million to the Company. At the same time, AdvanSix also incurred $38 million of borrowings in order to fund its post spin-off working capital.
Spinoff Activities, Completion Date		Oct. 01, 2016
Spinoff Transaction, Share Conversion	0.04	0.04
AdvanSix pre-separation funding		$ 269,000,000
AdvanSix pre-spin borrowing		38,000,000
Honeywell Technology Solutions Inc [Member] | Disposal Group Disposed Of By Sale Not Discontinued Operations [Member]
Spinoff [Abstract]
Proceeds From Divestiture Of Businesses		300,000,000
Pretax gain on sale		$ 176,000,000
Disposal Date 1		Sep. 16, 2016
Total Acquisitions [Member]
Business Acquisitions and Divestitures [Line Items]
Payments To Acquire Businesses Net Of Cash Acquired	$ 1,483,000,000	$ 2,532,000,000
Elster [Member]
Business Acquisitions and Divestitures [Line Items]
Name of acquired entity		Elster Division of Melrose Industries plc
Effective date of acquisition		Dec. 29, 2015
Purchase price	4,899,000,000	$ 4,899,000,000
Business Combination Recognized Identifiable Assets Acquired Goodwill And Liabilities Assumed Net [Abstract]
Current assets	522,000,000	522,000,000
Intangible assets	2,160,000,000	2,160,000,000
Other noncurrent assets	194,000,000	194,000,000
Current liabilities	(456,000,000)	(456,000,000)
Noncurrent liabilities	(919,000,000)	(919,000,000)
Net assets acquired	1,501,000,000	1,501,000,000
Noncontrolling interest	(3,000,000)	(3,000,000)
Goodwill	3,401,000,000	3,401,000,000
Purchase price	4,899,000,000	$ 4,899,000,000
Intelligrated [Member]
Business Acquisitions and Divestitures [Line Items]
Name of acquired entity		Intelligrated
Description of acquired entity		a leading provider of supply chain and warehouse automation technologies,
Effective date of acquisition		Aug. 29, 2016
Payments To Acquire Businesses Net Of Cash Acquired		$ 1,483,000,000
Business Combination Recognized Identifiable Assets Acquired Goodwill And Liabilities Assumed Net [Abstract]
Goodwill	$ 1,124,000,000	$ 1,124,000,000

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REPOSITIONING AND OTHER CHARGES (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Component Of Operating Other Cost And Expense [Line Items]
Total net repositioning charge	$ 171,000,000	$ 34,000,000	$ 244,000,000	$ 107,000,000
Asbestos related litigation charges, net of insurance	64,000,000	50,000,000	173,000,000	142,000,000
Probable and reasonably estimable environmental liabilities	49,000,000	49,000,000	132,000,000	144,000,000
Other	18,000,000	0	18,000,000	0
Total net repositioning and other charges	302,000,000	133,000,000	567,000,000	393,000,000
Severance Costs [Member]
Component Of Operating Other Cost And Expense [Line Items]
Total net repositioning charge	155,000,000	63,000,000	253,000,000	138,000,000
Tangible And Intangible Asset Impairment [Member]
Component Of Operating Other Cost And Expense [Line Items]
Total net repositioning charge	11,000,000	1,000,000	42,000,000	9,000,000
Exit Costs [Member]
Component Of Operating Other Cost And Expense [Line Items]
Total net repositioning charge	36,000,000	1,000,000	41,000,000	3,000,000
Restructuring Reserve Accrual Adjustments [Member]
Component Of Operating Other Cost And Expense [Line Items]
Total net repositioning charge	$ (31,000,000)	$ (31,000,000)	$ (92,000,000)	$ (43,000,000)

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REPOSITIONING AND OTHER CHARGES 2 (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Net Repositioning And Other Charges By Income Statement Classification [Line Items]
Total net repositioning charges	$ 302,000,000	$ 133,000,000	$ 567,000,000	$ 393,000,000
Cost of products and services sold [Member]
Net Repositioning And Other Charges By Income Statement Classification [Line Items]
Total net repositioning charges	226,000,000	129,000,000	410,000,000	363,000,000
Selling, general and administrative expenses [Member]
Net Repositioning And Other Charges By Income Statement Classification [Line Items]
Total net repositioning charges	53,000,000	4,000,000	110,000,000	30,000,000
Other (Income) Expense [Member]
Net Repositioning And Other Charges By Income Statement Classification [Line Items]
Total net repositioning charges	$ 23,000,000	$ 0	$ 47,000,000	$ 0

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REPOSITIONING AND OTHER CHARGES 3 (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Pretax Impact Of Total Net Repositioning And Other Charges By Segment [Line Items]
Total net repositioning charges	$ 302	$ 133	$ 567	$ 393
Corporate [Member]
Pretax Impact Of Total Net Repositioning And Other Charges By Segment [Line Items]
Total net repositioning charges	89	58	191	162
Aerospace [Member]
Pretax Impact Of Total Net Repositioning And Other Charges By Segment [Line Items]
Total net repositioning charges	144	38	265	134
Performance Materials And Technologies [Member]
Pretax Impact Of Total Net Repositioning And Other Charges By Segment [Line Items]
Total net repositioning charges	35	9	71	30
Home and Building Technologies [Member]
Pretax Impact Of Total Net Repositioning And Other Charges By Segment [Line Items]
Total net repositioning charges	24	12	36	38
Safety And Productivity Solutions [Member]
Pretax Impact Of Total Net Repositioning And Other Charges By Segment [Line Items]
Total net repositioning charges	$ 10	$ 16	$ 4	$ 29

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REPOSITIONING AND OTHER CHARGES 4 (Details) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016 USD ($) Employees	Sep. 30, 2015 USD ($) Employees	Sep. 30, 2016 USD ($) Employees	Sep. 30, 2015 USD ($) Employees
Net Repositioning And Other Charges [Line Items]
Restructuring and Related Cost, Incurred Cost	$ 171	$ 34	$ 244	$ 107
Net repositioning and other charges Paragraph Details [Abstract]
Gross Repositioning Charge	$ 202	$ 65	$ 336	$ 150
Number of employees severed | Employees	3,017	902	5,888	4,882
Severance Costs [Member]
Net Repositioning And Other Charges [Line Items]
Restructuring and Related Cost, Incurred Cost	$ 155	$ 63	$ 253	$ 138
Tangible And Intangible Asset Impairment [Member]
Net Repositioning And Other Charges [Line Items]
Restructuring and Related Cost, Incurred Cost	11	1	42	9
Exit Costs [Member]
Net Repositioning And Other Charges [Line Items]
Restructuring and Related Cost, Incurred Cost	36	1	41	3
Restructuring Reserve Accrual Adjustments [Member]
Net Repositioning And Other Charges [Line Items]
Restructuring and Related Cost, Incurred Cost	$ (31)	$ (31)	$ (92)	$ (43)

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REPOSITIONING AND OTHER CHARGES 5 (Details)	9 Months Ended
	Sep. 30, 2016 USD ($)
Restructuring Reserve [Line Items]
Balance at beginning of period,	$ 350,000,000
Charges	336,000,000
Usage - cash	(143,000,000)
Usage - noncash	(48,000,000)
Adjustments	(92,000,000)
Foreign currency translation adjustment	7,000,000
Balance at end of period,	410,000,000
Severance Costs [Member]
Restructuring Reserve [Line Items]
Balance at beginning of period,	329,000,000
Charges	253,000,000
Usage - cash	(135,000,000)
Usage - noncash	(6,000,000)
Adjustments	(91,000,000)
Foreign currency translation adjustment	7,000,000
Balance at end of period,	357,000,000
Tangible And Intangible Asset Impairment [Member]
Restructuring Reserve [Line Items]
Balance at beginning of period,	0
Charges	42,000,000
Usage - cash	0
Usage - noncash	(42,000,000)
Adjustments	0
Foreign currency translation adjustment	0
Balance at end of period,	0
Exit Costs [Member]
Restructuring Reserve [Line Items]
Balance at beginning of period,	21,000,000
Charges	41,000,000
Usage - cash	(8,000,000)
Usage - noncash	0
Adjustments	(1,000,000)
Foreign currency translation adjustment	0
Balance at end of period,	$ 53,000,000

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EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Earnings Per Share [Abstract]
Net income attributable to Honeywell	$ 1,240	$ 1,264	$ 3,775	$ 3,574
Weighted average shares outstanding	763.7	780.4	765.0	782.5
Earnings per share of common stock - basic	$ 1.62	$ 1.62	$ 4.93	$ 4.57
Assuming dilution
Net income attributable to Honeywell	$ 1,240	$ 1,264	$ 3,775	$ 3,574
Average shares
Weighted average shares outstanding	763.7	780.4	765.0	782.5
Dilutive securities issuable - stock plans	10.7	9.1	11.3	9.6
Total weighted average diluted shares outstanding	774.4	789.5	776.3	792.1
Earnings per share of common stock - assuming dilution	$ 1.6	$ 1.6	$ 4.86	$ 4.51
Earnings Per Share Paragraph Details [Abstract]
Stock options excluded from diluted computations	5.5	7.0	6.9	7.3

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ACCOUNTS, NOTES AND OTHER RECEIVABLES (Details) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Accounts Receivable, Net Current [Abstract]
Trade	$ 8,333	$ 7,901
Other	583	436
Accounts receivable, Gross	8,916	8,337
Less - Allowance for doubtful accounts	(289)	(262)
Accounts receivable, Net	8,627	8,075
Accounts Notes, And Other Receivables Paragraph Details [Abstract]
Unbilled contract receivable	$ 1,642	$ 1,590

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INVENTORIES (Details) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Inventory Combining Work In Process And Raw Materials Alternative Gross Abstract
Raw materials	$ 1,160	$ 1,120
Work in process	799	826
Finished products	2,693	2,590
Inventory, Gross	4,652	4,536
Reduction to LIFO cost basis	(65)	(116)
Inventories	$ 4,587	$ 4,420

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PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Property Plant And Equipment [Line Items]
Property Plant And Equipment Gross	$ 14,608	$ 14,908
Less - Accumulated depreciation	(8,883)	(9,119)
Property, plant and equipment - net	5,725	5,789
Land and improvements [Member]
Property Plant And Equipment [Line Items]
Property Plant And Equipment Gross	380	367
Machinery and equipment [Member]
Property Plant And Equipment [Line Items]
Property Plant And Equipment Gross	9,872	10,505
Building and improvements [Member]
Property Plant And Equipment [Line Items]
Property Plant And Equipment Gross	3,391	3,188
Construction in progress [Member]
Property Plant And Equipment [Line Items]
Property Plant And Equipment Gross	$ 965	$ 848

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GOODWILL (Details) $ in Millions	9 Months Ended
	Sep. 30, 2016 USD ($)
Goodwill [Line Items]
Balance at beginning of period,	$ 15,895
Acquisitions/Divestitures	1,899
Currency Translation Adjustment	52
Balance at end of period,	17,846
Aerospace [Member]
Goodwill [Line Items]
Balance at beginning of period,	2,296
Acquisitions/Divestitures	184
Currency Translation Adjustment	(19)
Balance at end of period,	2,461
Home And Building Technologies [Member]
Goodwill [Line Items]
Balance at beginning of period,	6,438
Acquisitions/Divestitures	673
Currency Translation Adjustment	20
Balance at end of period,	7,131
Performance Materials And Technologies [Member]
Goodwill [Line Items]
Balance at beginning of period,	3,771
Acquisitions/Divestitures	(136)
Currency Translation Adjustment	41
Balance at end of period,	3,676
Safety And Productivity Solutions [Member]
Goodwill [Line Items]
Balance at beginning of period,	3,390
Acquisitions/Divestitures	1,178
Currency Translation Adjustment	10
Balance at end of period,	$ 4,578

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LONG-TERM DEBT AND CREDIT AGREEMENTS (Details) € in Millions	9 Months Ended
	Sep. 30, 2016 USD ($)	Sep. 30, 2016 EUR (€)	Sep. 30, 2016 USD ($)	Dec. 31, 2015 USD ($)
Debt Instrument [Line Items]
Total long-term debt, including current portion			$ 10,257,000,000	$ 6,131,000,000
Less current portion			(649,000,000)	(577,000,000)
Total Noncurrent Debt			9,608,000,000	5,554,000,000
Notes 5.40% due 2016 [Member]
Debt Instrument [Line Items]
Senior Notes			$ 0	400,000,000
Various interest rates		5.40%	5.40%
Maturity date of debt instrument	Mar. 15, 2016
Notes 5.30% due 2017 [Member]
Debt Instrument [Line Items]
Senior Notes			$ 400,000,000	400,000,000
Various interest rates		5.30%	5.30%
Maturity date of debt instrument	Mar. 15, 2017
Notes 5.30% due 2018 [Member]
Debt Instrument [Line Items]
Senior Notes			$ 900,000,000	900,000,000
Various interest rates		5.30%	5.30%
Maturity date of debt instrument	Mar. 01, 2018
Notes 5.00% due 2019 [Member]
Debt Instrument [Line Items]
Senior Notes			$ 900,000,000	900,000,000
Various interest rates		5.00%	5.00%
Maturity date of debt instrument	Feb. 15, 2019
Notes 4.25% Due 2021 [Member]
Debt Instrument [Line Items]
Senior Notes			$ 800,000,000	800,000,000
Various interest rates		4.25%	4.25%
Maturity date of debt instrument	Mar. 01, 2021
Notes 3.35% Due 2023 [Member]
Debt Instrument [Line Items]
Senior Notes			$ 300,000,000	300,000,000
Various interest rates		3.35%	3.35%
Maturity date of debt instrument	Dec. 01, 2023
Notes 5.70% due 2036 [Member]
Debt Instrument [Line Items]
Senior Notes			$ 550,000,000	550,000,000
Various interest rates		5.70%	5.70%
Maturity date of debt instrument	Mar. 15, 2036
Notes 5.70% due 2037 [Member]
Debt Instrument [Line Items]
Senior Notes			$ 600,000,000	600,000,000
Various interest rates		5.70%	5.70%
Maturity date of debt instrument	Mar. 15, 2037
Notes 5.375% Due 2041 [Member]
Debt Instrument [Line Items]
Senior Notes			$ 600,000,000	600,000,000
Various interest rates		5.375%	5.375%
Maturity date of debt instrument	Mar. 01, 2041
Industrial development bond obligations, floating rate maturing at various dates through 2037 [Member]
Debt Instrument [Line Items]
Industrial development bond			$ 30,000,000	30,000,000
Maturity date of debt instrument	Dec. 31, 2037
Debentures 6.625% due 2028 [Member]
Debt Instrument [Line Items]
Debentures			$ 216,000,000	216,000,000
Various interest rates		6.625%	6.625%
Maturity date of debt instrument	Jun. 15, 2028
Debentures 9.065% due 2033 [Member]
Debt Instrument [Line Items]
Debentures			$ 51,000,000	51,000,000
Various interest rates		9.065%	9.065%
Maturity date of debt instrument	Jun. 01, 2033
Other including capitalized leases and debt issuance costs .6% To 9.5% maturing at various dates through 2023 [Member]
Debt Instrument [Line Items]
Other long term debt			$ 446,000,000	384,000,000
Maturity date of debt instrument	Dec. 31, 2023
Other including capitalized leases and debt issuance costs .6% To 9.5% maturing at various dates through 2023 [Member] | Minimum Member]
Debt Instrument [Line Items]
Various interest rates		0.60%	0.60%
Other including capitalized leases and debt issuance costs .6% To 9.5% maturing at various dates through 2023 [Member] | Maximum [Member]
Debt Instrument [Line Items]
Various interest rates		9.50%	9.50%
Floating rate Euro notes due 2018 [Member]
Debt Instrument [Line Items]
Senior Notes		€ 1,000	$ 1,116,000,000	0
Maturity date of debt instrument	Feb. 22, 2018
Euro notes .65% due 2020 [Member]
Debt Instrument [Line Items]
Senior Notes		€ 1,000	$ 1,116,000,000	0
Various interest rates		0.65%	0.65%
Maturity date of debt instrument	Feb. 21, 2020
Euro notes 1.30% due 2023 [Member]
Debt Instrument [Line Items]
Senior Notes		€ 1,250	$ 1,395,000,000	0
Various interest rates		1.30%	1.30%
Maturity date of debt instrument	Feb. 22, 2023
Euro notes 2.25% due 2028 [Member]
Debt Instrument [Line Items]
Senior Notes		€ 750	$ 837,000,000	$ 0
Various interest rates		2.25%	2.25%
Maturity date of debt instrument	Feb. 22, 2028
Euro Notes [Member]
Debt Instrument [Line Items]
Gross proceeds from Euro Notes	$ 4,438,000,000
Discount and closing costs			$ 17,000,000
Issuance date	Feb. 22, 2016
Syndicate Of Banks [Member] | Revolving Credit Facility [Member]
Line Of Credit Facility [Line Items]
Facility initiation date	Jul. 10, 2015
Facility expiration date	Jul. 10, 2021
Line of credit facility, current borrowing capacity			4,000,000,000
Line of credit facility, maximum borrowing capacity			4,500,000,000
Line Of Credit Facility Remaining Borrowing Capacity			4,000,000,000
Syndicate Of Banks [Member] | $3B 364-Day Credit Agreement
Line Of Credit Facility [Line Items]
Facility initiation date	Sep. 30, 2015
Facility expiration date	Apr. 29, 2016
Syndicate Of Banks [Member] | $1.5B 364 Day Credit Agreement [Member]
Line Of Credit Facility [Line Items]
Facility initiation date	Apr. 29, 2016
Facility expiration date	Apr. 28, 2017
Line of credit facility, current borrowing capacity			1,500,000,000
Line Of Credit Facility Remaining Borrowing Capacity			1,500,000,000
Syndicate Of Banks [Member] | $1.5B Second 364 Day Credit Agreement
Line Of Credit Facility [Line Items]
Facility initiation date	Aug. 05, 2016
Facility expiration date	Aug. 04, 2017
Line of credit facility, current borrowing capacity			1,500,000,000
Line Of Credit Facility Remaining Borrowing Capacity			$ 1,500,000,000

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FINANCIAL INSTRUMENTS AND FAIR VALUE MEASURES (Details) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Significant Observable Inputs (Level 2) | Foreign Currency Exchange Contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Fair Value Of Derivative Asset	$ 51	$ 28
Derivative Fair Value Of Derivative Liability	30	17
Significant Observable Inputs (Level 2) | Interest Rate Swap Agreements [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Fair Value Of Derivative Asset	115	92
Fair Value Inputs Level 1 And Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale investments	$ 1,823	$ 1,501

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FINANCIAL INSTRUMENTS AND FAIR VALUE MEASURES 2 (Details) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Carrying (Reported) Amount, Fair Value Disclosure [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term receivables	$ 281	$ 292
Long-term debt and related current maturities	10,257	6,131
Estimate of Fair Value, Fair Value Disclosure [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term receivables	272	283
Long-term debt and related current maturities	$ 11,357	$ 6,721

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FINANCIAL INSTRUMENTS AND FAIR VALUE MEASURES 3 (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Cash Flow Hedge Gain Loss Reclassified To Income Statement Locations Paragraph Details [Abstract]
Gain (loss) on interest rate swap agreements	$ (14)	$ 24	$ 23	$ 11
Foreign Exchange Mark to Market income (expense)	$ 24	$ 72	$ 114	$ (66)

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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Accumulated Other Comprehensive Income Loss [Line Items]
Balance beginning of period December 31,	$ (2,535,000,000)	$ (1,459,000,000)
Other comprehensive income (loss) before reclassifications	82,000,000	(850,000,000)
Amounts reclassified from accumulated other comprehensive income (loss)	(29,000,000)	(64,000,000)
Net current period other comprehensive income (loss)	53,000,000	(914,000,000)
Balance end of period	(2,482,000,000)	(2,373,000,000)
Foreign Exchange Translation Adjustment [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Balance beginning of period December 31,	(1,892,000,000)	(740,000,000)
Other comprehensive income (loss) before reclassifications	83,000,000	(893,000,000)
Amounts reclassified from accumulated other comprehensive income (loss)	0	0
Net current period other comprehensive income (loss)	83,000,000	(893,000,000)
Balance end of period	(1,809,000,000)	(1,633,000,000)
Pension and Other Postretirement Benefits Adjustments [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Balance beginning of period December 31,	(644,000,000)	(728,000,000)
Other comprehensive income (loss) before reclassifications	0	(17,000,000)
Amounts reclassified from accumulated other comprehensive income (loss)	(47,000,000)	13,000,000
Net current period other comprehensive income (loss)	(47,000,000)	(4,000,000)
Balance end of period	(691,000,000)	(732,000,000)
Changes in Fair Value of Effective Cash Flow Hedges [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Balance beginning of period December 31,	1,000,000	9,000,000
Other comprehensive income (loss) before reclassifications	(1,000,000)	60,000,000
Amounts reclassified from accumulated other comprehensive income (loss)	18,000,000	(77,000,000)
Net current period other comprehensive income (loss)	17,000,000	(17,000,000)
Balance end of period	$ 18,000,000	$ (8,000,000)

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SEGMENT FINANCIAL DATA (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Segment Reporting Information [Line Items]
Product sales	$ 7,744	$ 7,573	$ 23,398	$ 22,735
Service sales	2,060	2,038	5,919	5,864
Net sales	9,804	9,611	29,317	28,599
Total segment profit	1,720	1,852	5,287	5,376
Corporate Non Segment [Member]
Segment Reporting Information [Line Items]
Total segment profit	(59)	(56)	(157)	(156)
Aerospace [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Product sales	2,358	2,557	7,404	7,643
Service sales	1,243	1,263	3,681	3,611
Net sales	3,601	3,820	11,085	11,254
Total segment profit	663	833	2,252	2,362
Performance Materials and Technologies [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Product sales	1,924	1,810	5,822	5,784
Service sales	405	469	1,222	1,353
Net sales	2,329	2,279	7,044	7,137
Total segment profit	503	474	1,484	1,517
Home and Building Technologies [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Product sales	2,360	2,020	6,931	5,825
Service sales	341	293	923	861
Net sales	2,701	2,313	7,854	6,686
Total segment profit	441	408	1,213	1,088
Safety And Productivity Solutions [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Product sales	1,102	1,186	3,241	3,483
Service sales	71	13	93	39
Net sales	1,173	1,199	3,334	3,522
Total segment profit	$ 172	$ 193	$ 495	$ 565

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SEGMENT FINANCIAL DATA 2 (Details) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016 USD ($)	Sep. 30, 2015 USD ($)	Sep. 30, 2016 USD ($) Segments	Sep. 30, 2015 USD ($)
Reconciliation of segment profit to consolidated [Abstract]
Total segment profit	$ 1,720	$ 1,852	$ 5,287	$ 5,376
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items]
Interest and other financial charges	(82)	(72)	(252)	(226)
Repositioning and other charges	(302)	(133)	(567)	(393)
Income before taxes	1,632	1,707	5,015	4,933
Segment Financial Data [Abstract]
Net sales	9,804	9,611	$ 29,317	28,599
Additional Information About Entity's Reportable Segments			In July 2016, the Company announced that it is realigning the business units comprising its Automation and Control Solutions reporting segment by forming two new reportable operating segments: Home and Building Technologies and Safety and Productivity Solutions.  Home and Building Technologies includes Environmental & Energy Solutions, Security and Fire, and Building Solutions and Distribution. Additionally, the Industrial Combustion/Thermal business, previously part of Environmental & Energy Solutions in Automation and Control Solutions, became part of Performance Materials and Technologies. Safety and Productivity Solutions includes Sensing & Productivity Solutions and Industrial Safety, as well as the Intelligrated business. Under the realigned segment reporting structure, the Company has four reportable operating segments:  Aerospace, Home and Building Technologies, Performance Materials and Technologies and Safety and Productivity Solutions. Effective with the quarter ended September 30, 2016 the Company has reported its financial performance based on this realignment.
Number Of Operating Segments | Segments			4
Material Reconciling Items [Member]
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items]
Other income (expense)	169	15	$ 174	39
Interest and other financial charges	(82)	(72)	(252)	(226)
Stock compensation expense	(49)	(41)	(145)	(132)
Repositioning and other charges	(279)	(133)	(520)	(393)
Income before taxes	1,632	1,707	5,015	4,933
Material Reconciling Items [Member] | Pension Plans, Defined Benefit [Member]
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items]
Benefit plans income/(expense)	146	96	447	299
Material Reconciling Items [Member] | Other Postretirement Benefit Plans [Member]
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items]
Benefit plans income/(expense)	7	(10)	24	(30)
Corporate [Member]
Reconciliation of segment profit to consolidated [Abstract]
Total segment profit	(59)	(56)	(157)	(156)
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items]
Repositioning and other charges	$ (89)	$ (58)	$ (191)	$ (162)

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PENSION BENEFITS (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
United States, Defined Benefit [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 48,000,000	$ 58,000,000	$ 143,000,000	$ 172,000,000
Interest cost	150,000,000	179,000,000	450,000,000	535,000,000
Expected return on plan assets	(306,000,000)	(321,000,000)	(918,000,000)	(962,000,000)
Amortization of prior service cost (credit)	(11,000,000)	5,000,000	(33,000,000)	17,000,000
Settlements and curtailments	0	8,000,000	0	8,000,000
Net periodic benefit (income)	(119,000,000)	(71,000,000)	(358,000,000)	(230,000,000)
Non-US, Defined Benefit [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	11,000,000	13,000,000	36,000,000	39,000,000
Interest cost	43,000,000	44,000,000	137,000,000	133,000,000
Expected return on plan assets	(92,000,000)	(91,000,000)	(291,000,000)	(270,000,000)
Amortization of transition obligations	0	1,000,000	0	1,000,000
Amortization of prior service cost (credit)	0	(1,000,000)	(2,000,000)	(2,000,000)
Settlements and curtailments	0	2,000,000	0	2,000,000
Net periodic benefit (income)	$ (38,000,000)	$ (32,000,000)	$ (120,000,000)	$ (97,000,000)

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COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2016	Dec. 31, 2015
Accrual For Environmental Loss Contingencies [RollForward]
Beginning of period	$ 518
Accruals for environmental matters deemed probable and reasonably estimable	132
Environmental liability payments	(144)
Other	(4)
End of period	502
Loss Contingency Classification of Accrual [Abstract]
Accrued liabilities		$ 251	$ 253
Other liabilities		251	265
Total environmental liabilities	$ 518	$ 502	$ 518

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COMMITMENTS AND CONTINGENCIES 2 (Details)	9 Months Ended
	Sep. 30, 2016 USD ($)
Asbestos Related Liabilities [Member]
Asbestos Related Liabilities Disclosure [Abstract]
Asbestos Related Liabilities, Beginning of Period	$ 1,543,000,000
Accrual for update to estimated liability	177,000,000
Asbestos related liability payments	(150,000,000)
Asbestos Related Liabilities, End of Period	1,570,000,000
Asbestos Related Liabilities Insurance Recoveries [Line Items]
Insurance Recoveries, beginning of period	449,000,000
Probable insurance recoveries related to estimated liability	16,000,000
Insurance receivables settlements	8,000,000
Insurance receipts for asbestos related liabilities	(17,000,000)
Insurance recoveries, end of period	456,000,000
Bendix Asbestos Loss Contingency Liability [Member]
Asbestos Related Liabilities Disclosure [Abstract]
Asbestos Related Liabilities, Beginning of Period	622,000,000
Accrual for update to estimated liability	170,000,000
Asbestos related liability payments	(143,000,000)
Asbestos Related Liabilities, End of Period	649,000,000
Asbestos Related Liabilities Insurance Recoveries [Line Items]
Insurance Recoveries, beginning of period	124,000,000
Probable insurance recoveries related to estimated liability	16,000,000
Insurance receivables settlements	8,000,000
Insurance receipts for asbestos related liabilities	(14,000,000)
Insurance recoveries, end of period	134,000,000
Narco Asbestos Loss Contingency Liability [Member]
Asbestos Related Liabilities Disclosure [Abstract]
Asbestos Related Liabilities, Beginning of Period	921,000,000
Accrual for update to estimated liability	7,000,000
Asbestos related liability payments	(7,000,000)
Asbestos Related Liabilities, End of Period	921,000,000
Asbestos Related Liabilities Insurance Recoveries [Line Items]
Insurance Recoveries, beginning of period	325,000,000
Probable insurance recoveries related to estimated liability	0
Insurance receivables settlements	0
Insurance receipts for asbestos related liabilities	(3,000,000)
Insurance recoveries, end of period	$ 322,000,000

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COMMITMENTS AND CONTINGENCIES 3 (Details) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Loss Contingency, Narco and Bendix Asbestos Related Balances by Balance Sheet Caption [Line Items]
Insurance recoveries for asbestos related liabilities	$ 433	$ 426
Asbestos related liabilities	1,278	1,251
Asbestos Related Liabilities [Member]
Loss Contingency, Narco and Bendix Asbestos Related Balances by Balance Sheet Caption [Line Items]
Other current assets	23	23
Insurance recoveries for asbestos related liabilities	433	426
Total assets	456	449
Accrued liabilities	292	292
Asbestos related liabilities	1,278	1,251
Total liabilities	$ 1,570	$ 1,543

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COMMITMENTS AND CONTINGENCIES 4 (Details) $ in Millions	Sep. 30, 2016 USD ($)
Loss Contingency By Nature Of Contingency [Line Items]
Loss Contingency Estimated Pre-established Unliquidated Claims Amount	$ 145
Loss Contingency Unsettled Claims Amount	33
Exceptions To Cap [Abstract]
Value Not Included In Cap	100
Estimated value of settlement agreements to be paid during the initial years of trust operations	150
Settlement Payments	5
Minimum Member]
Loss Contingency By Nature Of Contingency [Line Items]
Estimated Liability	743
Maximum [Member]
Loss Contingency By Nature Of Contingency [Line Items]
Estimated Liability	961
Years 2016 To 2018 [Member]
Loss Contingency By Nature Of Contingency [Line Items]
Annual Trust Cap	140
Year 2019 And Thereafter [Member]
Loss Contingency By Nature Of Contingency [Line Items]
Annual Trust Cap	$ 145

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COMMITMENTS AND CONTINGENCIES 5 (Details) - Bendix Asbestos Loss Contingency Liability [Member] - claims	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015	Dec. 31, 2014	Sep. 30, 2016	Dec. 31, 2015	Dec. 31, 2014
Loss Contingency Claims [Abstract]
Claims Unresolved at the beginning of period	7,779	9,267	12,302
Claims Filed during the period	2,081	2,862	3,694
Claims Resolved during the period	(2,066)	(4,350)	(6,729)
Claims Unresolved at the end of period	7,794	7,779	9,267
Loss Contingency Claims Footnote [Abstract]
Significantly Aged Claims		153	1,266
Cancer Claims With No Determinable Value			2,110
Loss Contingency Disease Distribution Of Unresolved Claims [Line Items]
Mesothelioma and Other Cancer Claims				3,559	3,772	3,933
Nonmalignant Claims				4,235	4,007	5,334
Total Claims	7,779	7,779	12,302	7,794	7,779	9,267

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COMMITMENTS AND CONTINGENCIES 6 (Details) - Bendix Asbestos Loss Contingency Liability [Member] - $ / claims	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Resolution Values Per Claim [Line Items]
Malignant claims	44,000	53,500	51,000	49,000	48,000
Nonmalignant claims	100	120	850	1,400	1,000

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COMMITMENTS AND CONTINGENCIES 7 (Details) - United Auto Workers [Member] $ in Millions	9 Months Ended
	Sep. 30, 2016 USD ($)
Pre-2003 Retirees [Member]
Other Matters Paragraph Details [Line Items]
Potential Opeb Increase Due To Adverse Ruling	$ 176
Post-2003 Retirees [Member]
Other Matters Paragraph Details [Line Items]
Potential Opeb Increase Due To Adverse Ruling	$ 110

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COMMITMENTS AND CONTINGENCIES 8 (Details)	9 Months Ended
	Sep. 30, 2016
Joint Strike Fighter [Member]
Other Matters Paragraph Details 2 [Line Items]
Loss Contingency Request For Information	In 2013 the Company received subpoenas from the Department of Justice requesting information relating primarily to parts manufactured in the United Kingdom and China used in the F-35 fighter jet. The Company is cooperating fully with the investigation. While we believe that Honeywell has complied with all relevant U.S. laws and regulations regarding the manufacture of these sensors, it is not possible to predict the outcome of the investigation or what action, if any, may result from it