2 0 1 8 A N N U A L R E P O R T

2018 Shareowners Letter

Our 2018 financial performance was excellent with 6% organic sales growth, 60 basis points of
margin expansion, 22% growth in adjusted free cash flow, and 100% adjusted free cash flow
conversion. In addition, we flawlessly executed two very complex spins, resulting in the launch of two
outstanding companies in Garrett and Resideo. Despite these achievements, our total shareowner
return (TSR) was -8% due to the late-year volatility we saw in the stock market. It never feels good to
see negative returns, although we substantially outperformed our multi-industry peers (-25% TSR) and
the Industrial Select Sector SPDR ETF (XLI) (-13% TSR). Our performance in 2018 demonstrated that
you can continue to depend on Honeywell to deliver regardless of how the broader market performs.
The graphic below shows that Honeywell outperformed the XLI during 9 of the past 10 years, often by
substantial amounts. If you are looking for results that beat the market on a consistent basis, Honeywell
is a great place to invest!

TSR Delta Between HON and XLI Performance

2% 12% 10% 11%

6% 5% 6% 1% 5%
-5%

'09 '10 '11 '12 '13 '14 '15 '16 '17 '18

Update on Three Priorities from the 2017 Shareowners Letter

In last year’s letter, I talked about three priorities for 2018:

1. Drive free cash flow and cash conversion

2. Build a software / sensor strategy into everything we develop

3. Take even bolder bets in our new product development

Free cash flow and cash conversion is a strong story for Honeywell. We have driven the focus
on the balance sheet with clear accountability throughout the organization, which led to enhanced cash
generation in 2018 – including 100% adjusted free cash conversion – as shown in the table on the next
page. While I am proud of what we have accomplished to date, we still have substantial opportunity in
this area and will pursue improvements with similar rigor in 2019 and beyond.
Key Cash / Working Capital Metrics, 2016-2018

2016 2017 2018

Year Over Year Adjusted

-1% 12% 22%
Free Cash Flow Growth

Adjusted Free Cash Flow

86% 89% 100%
Conversion

Working Capital Turns 6.6 6.8 7.4

Software and sensor strategies are now fully incorporated into our new product development
process, and these align with the requirements from our Connected Enterprise offerings in Aircraft,
Buildings, Plant, Workflow, and Cyber. Before a connected offering – either software or hardware – is
approved for R&D investment, it must satisfy today’s customer needs and allow for enhancements as
we anticipate future customer needs.

We are proud of our new product development pipeline, which we have enhanced and
expanded by focusing on creating superior value for customers while incorporating the latest
technologies in the marketplace. Some examples of solutions that our customers are excited about:

• An online marketplace for new and used aircraft parts powered by blockchain technology that
provides traceability and transparent pricing.

• Robotics solutions to deliver fully-automated warehouses.

• A wireless fire alarm system for buildings enabled by mesh technology that offers ease of
installation and ensures a high level of occupant safety.

• Augmented reality-enabled industrial technologies that improve industrial worker proficiency and
effectiveness.

Progress Against Strategic Objectives

We continue to hold the bar very high for ourselves in terms of achieving short- and long-term
financial and strategic objectives. Even as we work to meet our current commitments, we are thinking
about how to meet our commitments for the next quarter, the next year, and 10 years from now. We
made substantial progress against the objectives I first outlined during our 2017 Investor Conference,
as shown in the following table.
Key Financial and Strategic Metrics Versus 2017 Expectations

EXPECTATION AS
OUTLINED IN 2017 2018
2014-2016 INVESTOR PEER
KEY OBJECTIVE AVERAGE CONFERENCE 2017 2018 AVERAGE(1)

Low- to Mid-
Enhance Organic
1% Single Digits 4% 6% 5%
Growth
Annually

Continue Margin 70 basis

30-50 bps per year 70 bps 60 bps (15) bps
Expansion points (bps)

Year Over Year Free

9% 12% 22% 2%
Cash Flow Growth

Adjusted Free Cash ~100%

89% 89% 100% 91%
Flow Conversion Adj. FCF Conversion

Total Shareowner TSR >

11% 35% (8%) (25%)
Return (TSR) Peers

Dividend Growth ≥
Dividend Growth 14% 12% 10% (17%)
EPS Growth

The final strategic objective I introduced during the 2017 Investor Conference was our plan to more
aggressively deploy capital given our strong financial condition. Since that time, we have continued a
steady cadence of capital deployment, with more than $7.6 billion deployed in 2018. The 10% dividend
increase in 2018 represented our ninth consecutive double-digit increase since 2010, and we continued
to opportunistically repurchase Honeywell shares at attractive levels, reducing our share count by 2%
year over year.

In 2018, we completed two technology-oriented acquisitions totaling more than $500 million, with
Transnorm and Ortloff Engineers, Ltd., joining the Honeywell family. Transnorm enhances our
warehouse automation platform and gives us a beachhead in Europe. Ortloff develops highly
proprietary technology that enables maximum separation of gas and gas liquids. We continue to
actively seek acquisition opportunities but will maintain our valuation discipline.

In addition to making outstanding progress against our key strategic objectives, we have greatly
streamlined and simplified our portfolio by spinning three businesses since 2015 – AdvanSix (ASIX),
Garrett (GTX), and Resideo (REZI). We see opportunities to deploy capital across all our remaining
platforms for acquisitions that either are bolt-ons to our existing businesses and capabilities or are in
adjacent spaces.

(1)
Peer Average includes Emerson Electric (EMR), General Electric (GE), 3M Corporation (MMM), and United
Technologies (UTX), companies against whom we frequently compete for investor dollars.
 Two years into my tenure as CEO, I am very confident we have created a much more focused,
technology-oriented company that is accelerating the pace of organic sales growth and margin
expansion, and becoming more efficient in cash generation while actively deploying capital. We will
continue to look for opportunities to invest in and expand existing and adjacent platforms. We will also
continuously assess the composition of our portfolio to ensure we have an optimal set of businesses
with attractive growth profiles.

Environmental, Social, and Corporate Governance

Honeywell is very proud of its Environmental, Social, and Corporate Governance (ESG)
achievements and, if anything, has been too quiet in sharing some of our accomplishments. Over
the past 15 years, we have deployed over $4 billion to remediate a number of legacy industrial sites,
resulting in dramatic improvements to the related facilities and surrounding communities:

• At Onondaga Lake in Syracuse, we have dredged and capped the lake bed, enabling the best
water quality in 100 years. Additionally, we have restored and preserved about 1,800 acres of
habitat and are planting 1.1 million native plants, shrubs, and trees. In recognition, Audubon New
York honored Honeywell with its highest award for conserving and restoring natural ecosystems.

• In our Baltimore Inner Harbor project called Harbor Point, Honeywell comprehensively
remediated and repurposed a former manufacturing facility. We then signed agreements to
progressively transfer lots to the developer, which recently completed construction of the 289-unit
Point Street Apartments.

• In January 2019, we completed the $90 million sale of our remediated New Jersey “Bayfront”
property to the City of Jersey City for repurposing as a mixed-use development. This transaction
will help ensure that this former industrial property becomes a vibrant community asset.

It is also important to note that many of the businesses Honeywell operates have a dramatically
positive impact on the environment and the sustainability of our planet. A few of our related
technologies include:

• Honeywell Solstice姞, the most environmentally-friendly line of refrigerants, blowing agents,

aerosols, and solvents, which in many cases have lower global warming potential than carbon
dioxide.

• Energy savings solutions in Honeywell Building Technologies that maximize user comfort while
optimizing and reducing energy consumption.

• Numerous technologies, many enabled by Connected Software, that keep aircraft passengers
and industrial workers safe, generate cleaner fuels, and keep water and air clean.

In addition to benefiting the planet, Honeywell has focused on improving the sustainability of our
own operations. Through thousands of projects worldwide, we have reduced our greenhouse gas
intensity by 90% and improved our energy efficiency by more than 70%.
 Honeywell’s award-winning global citizenship initiative, Honeywell Hometown Solutions, focuses on
a number of social issues such as safe water, humanitarian relief, and safety and accident prevention.
Our key area of focus is educating youth, particularly in science, technology, engineering, and math
(STEM), and encouraging them to pursue careers in these areas. We have partnered with leading
NGOs, public agencies, and universities to educate students and enhance teacher capabilities.

We also take pride in our corporate governance. Inclusion and diversity in the workplace is one of
our three core principles (the other two are integrity and ethics, and workplace respect). Inclusion and
diversity are ingrained in Honeywell’s culture and give us a competitive advantage. We want Honeywell
to be the employer of choice for all, and we welcome people of all backgrounds. We have worked hard
to improve diversity representation in our workforce – in fact, over the past eight years, we have seen
significant net increases in representation for U.S. women, people of color in the U.S., and non-U.S.
women. This past January, we launched a new annual program focused on development and
sponsorship of our top 50 up-and-coming female leaders, largely in fields traditionally dominated by
men.

We are inclusive not only within our ranks but also on our Board. Three of our 11 independent
directors are women (including an African American female), three are Hispanic, and two are non-U.S.
citizens.

We also have an active integrity hotline to ensure we address potential issues quickly, efficiently,
and with appropriate discretion when poor behaviors or actions are experienced or observed. At
Honeywell, we have zero tolerance for behavior that creates a hostile workplace or makes employees
feel uncomfortable in their work environment.

2019 Outlook and Objectives

The 2019 geopolitical environment brings with it numerous unresolved challenges, including Brexit,
trade relationships and sanctions, potential Fed rate hikes, oil price instability, and so on. Although
many uncertainties persist, the overall business environment is still quite strong. Our long-cycle backlog
heading into 2019 is up by a double-digit percentage year over year, our order rates have been good,
and we continue to see robust growth in Aerospace, Warehouse Automation, Sensing and IoT, and our
software offerings. As always, we are careful in our planning so we can perform regardless of
macroeconomic conditions. We are well prepared for 2019, with numerous new product offerings
coming to the market and the benefits from previously-funded repositioning to help us become even
more efficient. The key will be for us to be very agile and make quick adjustments.

For 2019, we will emphasize three key areas that present considerable upside for Honeywell over
the next few years: Honeywell Digital, Integrated Supply Chain (ISC) Transformation, and the
Honeywell Connected Enterprise. The intent of Honeywell Digital is to make Honeywell a more
internally digital company that leverages improved processes, data structures, and governance –
combined with a coherent and consistent IT infrastructure – to enable productivity, enhance customer
experience, reduce errors, and improve decision making. Our entire company will participate in this
initiative, and we fully expect to see significant improvements over the next few years.
 ISC Transformation is a comprehensive effort to modernize and simplify our manufacturing
practices, including use of technology such as additive manufacturing and robotics, planning practices,
and vendor integration. By reducing the complexity of our supply chain and planning processes, we can
achieve world-class standards in inventory, delivery, and operational efficiencies. Similar to Honeywell
Digital, this is a multi-year initiative, which will result in a much simpler and more efficient integrated
supply chain.

One of my key objectives for Honeywell is to transform into a software-industrial company.

Although we delivered very good results and grew our software sales by double digits organically in
2018, we see the opportunity to further accelerate growth. Customers across all of our business groups
want us to do more in the IoT space because of our expertise in their respective industries, our
software capabilities, and our long-term relationships based on trust. To address this, we reorganized
our core software personnel late last year and formed Honeywell Connected Enterprise (HCE) to
provide more consolidated governance, along with an integrated strategy for product development and
go-to-market execution. We anticipate that HCE, with its new leadership and governance structure, will
help us accelerate the pace at which we introduce exciting new products that greatly benefit our
customers.

In closing, Honeywell will continue to do in 2019 what we have always done – deliver for our
shareowners, customers, and employees. We have proven this consistently over the last decade. Our
portfolio is in great shape following the changes we made in 2018, and we are executing an aggressive
business transformation agenda that will position us even better for the future. While building a
company that continues to outperform well into the future is extremely important, it is not enough. We
also must enhance the communities in which we operate around the world. This is why we strive to
make the world safer, more environmentally friendly, and less energy intensive. This is why we are fully
committed to our ESG efforts. Doing well as a business gives us great joy; however, using our
technologies and capabilities to have a long-term positive impact on the world is even more gratifying.

As always, thank you for your trust in Honeywell. We value the fact that you own our shares, and
we work hard every day to make you proud. Keep in mind our best days are still ahead of us!

Sincerely,

DARIUS ADAMCZYK
Chairman and Chief Executive Officer
Notes to Shareowners Letter
1) Reconciliation of Organic Sales % Change

2014 2015 2016 2017 2018

Reported sales % change . . . . . . . . . . . . . . . . . . . . . . . 3% (4%) 2% 3% 3%

Less: Foreign Currency Translation . . . . . . . . . . . . . . — (4%) (1%) — 1%
Less: Acquisitions and Divestitures, Net. . . . . . . . . . — — 4% (1%) (4%)
Organic Sales % Change . . . . . . . . . . . . . . . . . . . . . . . 3% — (1%) 4% 6%

We define organic sales percent as the year-over-year change in reported sales relative to the comparable period, excluding the impact
on sales from foreign currency translation, and acquisitions, net of divestitures. We believe this measure is useful to investors and
management in understanding our ongoing operations and in analysis of ongoing operating trends.

2) Reconciliation of Segment Profit to Operating Income and Calculation of Segment Profit and
Operating Income Margins

($M) 2013 2014 2015 2016 2017 2018

Net sales. . . . . . . . . . . . . . . . . . . . $39,055 $40,306 $38,581 $39,302 $40,534 $41,802

Segment profit. . . . . . . . . . . . . . . $ 6,351 $ 6,696 $ 7,256 $ 7,186 $ 7,690 $ 8,190
Stock compensation
expense(1) . . . . . . . . . . . . . . . . . (170) (187) (175) (184) (176) (175)
Repositioning, Other(2,3) . . . . . . (702) (590) (569) (674) (962) (1,100)
Pension and other
postretirement service
costs(4) . . . . . . . . . . . . . . . . . . . . (330) (297) (274) (277) (249) (210)
Operating income . . . . . . . . . . . . $ 5,149 $ 5,622 $ 6,238 $ 6,051 $ 6,303 $ 6,705
Segment profit. . . . . . . . . . . . . . . $ 6,351 $ 6,696 $ 7,256 $ 7,186 $ 7,690 $ 8,190
÷ Net sales. . . . . . . . . . . . . . . . . . $39,055 $40,306 $38,581 $39,302 $40,534 $41,802
Segment profit margin %. . . . . 16.3% 16.6% 18.8% 18.3% 19.0% 19.6%
Operating income . . . . . . . . . . . . $ 5,149 $ 5,622 $ 6,238 $ 6,051 $ 6,303 $ 6,705
÷ Net sales. . . . . . . . . . . . . . . . . . $39,055 $40,306 $38,581 $39,302 $40,534 $41,802
Operating income margin % . . 13.2% 14.0% 16.2% 15.4% 15.6% 16.0%

(1) Amounts included in Selling, general and administrative expenses.

(2) Includes repositioning, asbestos, environmental expenses and equity income adjustment.
(3) Included in Cost of products and services sold, Selling, general and administrative expenses, and Other income/expense.
(4) Amounts included in Cost of products and services sold and Selling, general and administrative expenses (service costs).

We define segment profit as operating income, excluding stock compensation expense, pension and other postretirement service costs,
and repositioning and other charges. We believe these measures are useful to investors and management in understanding our ongoing
operations and in analysis of ongoing operating trends.
3) Reconciliation of Cash Provided by Operating Activities to Adjusted Free Cash Flow and Calculation
of Adjusted Free Cash Flow Conversion

($M) 2013 2014 2015 2016 2017 2018

Cash provided by operating

activities . . . . . . . . . . . . . . . . . . . . . . $4,335 $ 5,080 $ 5,519 $ 5,498 $ 5,966 $ 6,434
Expenditures for property, plant
and equipment . . . . . . . . . . . . . . . . (947) (1,094) (1,073) (1,095) (1,031) (828)
Free cash flow . . . . . . . . . . . . . . . . . . 3,388 3,986 4,446 4,403 4,935 5,606
Separation cost payments . . . . . . . — — — — — 424
Adjusted free cash flow. . . . . . . . . . $3,388 $ 3,986 $ 4,446 $ 4,403 $ 4,935 $ 6,030
Net income attributable to
Honeywell . . . . . . . . . . . . . . . . . . . . $3,922 $ 4,262 $ 4,771 $ 4,812 $ 1,545 $ 6,765
Pension mark-to-market
expense(1) . . . . . . . . . . . . . . . . . . . . 38 179 43 215 67 28
Debt refinancing expense(1) . . . . . . — — — 93 — —
Separation costs, includes net
tax impacts . . . . . . . . . . . . . . . . . . . — — — — 14 732
U.S. Tax Reform . . . . . . . . . . . . . . . . — — — — 3,891 (1,494)
Adjusted net income attributable
to Honeywell . . . . . . . . . . . . . . . . . . $3,960 $ 4,441 $ 4,814 $ 5,120 $ 5,517 $ 6,031
Cash provided by operating
activities . . . . . . . . . . . . . . . . . . . . . . $4,335 $ 5,080 $ 5,519 $ 5,498 $ 5,966 $ 6,434
÷ Net income attributable to
Honeywell . . . . . . . . . . . . . . . . . . . . $3,922 $ 4,262 $ 4,771 $ 4,812 $ 1,545 $ 6,765
Operating cash flow conversion . . 111% 119% 116% 114% 386% 95%
Adjusted free cash flow. . . . . . . . . . $3,388 $ 3,986 $ 4,446 $ 4,403 $ 4,935 $ 6,030
÷ Adjusted net income
attributable to Honeywell . . . . . . $3,960 $ 4,441 $ 4,814 $ 5,120 $ 5,517 $ 6,031
Adjusted free cash flow
conversion % . . . . . . . . . . . . . . . . . 86% 90% 92% 86% 89% 100%

(1) Pension mark-to-market uses a blended tax rate of 25.5%, 28.1%, 36.1%, 21.3%, 23% and 24%. Debt refinancing expense uses a tax
rate of 26.5%.

We define free cash flow as cash provided by operating activities less cash expenditures for property, plant and equipment.

We believe that this metric is useful to investors and management as a measure of cash generated by business operations that will be
used to repay scheduled debt maturities and can be used to invest in future growth through new business development activities or
acquisitions, pay dividends, repurchase stock or repay debt obligations prior to their maturities. This metric can also be used to evaluate
our ability to generate cash flow from business operations and the impact that this cash flow has on our liquidity.
 UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Form 10-K
嘺 ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2018
OR
䡺 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 (I.R.S. Employer
incorporation or organization) Identification No.)
115 Tabor Road
Morris Plains, New Jersey 07950
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code (973) 455-2000
Securities registered pursuant to Section 12(b) of the Act:
Name of Each Exchange
Title of Each Class on Which Registered
Common Stock, par value $1 per share* New York Stock Exchange
0.650% Senior Notes due 2020 New York Stock Exchange
1.300% Senior Notes due 2023 New York Stock Exchange
2.250% Senior Notes due 2028 New York Stock Exchange
* The common stock is also listed on the London Stock Exchange.
Securities registered pursuant to Section 12(g) of the Act: None
Indicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities
Act. Yes 嘺 No 䡺
Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or Section 15(d) of
the Exchange Act. Yes 䡺 No 嘺
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 嘺 No 䡺
Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to
be submitted 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 such files). Yes 嘺 No 䡺
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained
herein, and will not be contained, to the best of Registrant’s knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. 嘺
Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated
filer, or a smaller reporting company. See definition of “accelerated filer,” “large accelerated filer,” and “smaller
reporting company” in Rule 12b-2 of the Exchange Act. (Check One):
Large accelerated filer 嘺 Accelerated filer 䡺 Non-accelerated filer 䡺 Smaller reporting company 䡺
Emerging growth company 䡺
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended
transition period for complying with any new or revised financial accounting standards pursuant to section 13(a) of
the Exchange Act. 䡺
Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes 䡺 No 嘺
The aggregate market value of the voting stock held by nonaffiliates of the Registrant was approximately
$107.6 billion at June 30, 2018.
There were 729,085,890 shares of Common Stock outstanding at January 25, 2019.
Documents Incorporated by Reference
Part III: Proxy Statement for Annual Meeting of Shareowners to be held April 29, 2019.
 TABLE OF CONTENTS
Item Page

Part I 1. Business. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Executive Officers of the Registrant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
1A. Risk Factors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
1B. Unresolved Staff Comments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
2. Properties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
3. Legal Proceedings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
4. Mine Safety Disclosures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Part II. 5. Market for Registrant’s Common Equity, Related Stockholder Matters and
Issuer Purchases of Equity Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
6. Selected Financial Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
7. Management’s Discussion and Analysis of Financial Condition and Results
of Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
7A. Quantitative and Qualitative Disclosures About Market Risks . . . . . . . . . . . . . . . 35
8. Financial Statements and Supplementary Data. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
9. Changes in and Disagreements with Accountants on Accounting and
Financial Disclosure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96
9A. Controls and Procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96
9B. Other Information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96
Part III. 10. Directors and Executive Officers of the Registrant . . . . . . . . . . . . . . . . . . . . . . . . . 98
11. Executive Compensation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98
12. Security Ownership of Certain Beneficial Owners and Management and
Related Stockholder Matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98
13. Certain Relationships and Related Transactions. . . . . . . . . . . . . . . . . . . . . . . . . . . . 100
14. Principal Accounting Fees and Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100
Part IV. 15. Exhibits and Financial Statement Schedules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101
16. Form 10-K Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101
Signatures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108
 PART I.

Item 1. Business
Honeywell International Inc. (“Honeywell” or “the Company”) invents and commercializes
technologies that address some of the world’s most critical challenges around energy, safety, security,
productivity and global urbanization. As a diversified technology and manufacturing company, we are
uniquely positioned to blend physical products with software to serve customers worldwide with
aerospace products and services, energy efficient products and solutions for businesses, specialty
chemicals, electronic and advanced materials, process technology for refining and petrochemicals, and
productivity, sensing, safety and security technologies for buildings and industries. Our products and
solutions enable a safer, more comfortable and more productive world, enhancing the quality of life of
people around the globe. Honeywell was incorporated in Delaware in 1985.
Our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K
and any amendments to those reports, are available free of charge on our website (www.honeywell.com)
under the heading Investor Relations (see SEC Filings and Reports) immediately after they are filed with,
or furnished to, the Securities and Exchange Commission (SEC). In addition, in this Annual Report on
Form 10-K, the Company incorporates by reference certain information from parts of its Proxy Statement
for the 2019 Annual Meeting of Stockholders, which we expect to file with the SEC on or about
March 14, 2019, and which will also be available free of charge on our website.

Major Businesses
On October 1, 2018, the Company completed the spin-off of its Transportation Systems business,
formerly part of Aerospace, and on October 29, 2018, the Company completed the spin-off of its
Homes and Global Distribution business, formerly part of Home and Building Technologies. Therefore,
as of the end of 2018, those businesses were no longer part of the Company. Following the spin-off of
the Homes and Global Distribution business, the Home and Building Technologies segment was
renamed Honeywell Building Technologies. The major products/services, customers/uses and key
competitors of each of our segments are:

Aerospace
Aerospace is a leading global supplier of products, software and services for aircrafts that it sells
to original equipment manufacturers (OEM) and other customers in a variety of end markets including:
air transport, regional, business and general aviation aircraft, airlines, aircraft operators and defense
and space contractors. Aerospace products and services include auxiliary power units, propulsion
engines, environmental control systems, integrated avionics, wireless connectivity services, electric
power systems, engine controls, flight safety, communications, navigation hardware, data and software
applications, radar and surveillance systems, aircraft lighting, management and technical services,
advanced systems and instruments, satellite and space components, aircraft wheels and brakes, repair
and overhaul services and thermal systems. Aerospace also provides spare parts, repair, overhaul and
maintenance services (principally to aircraft operators) and connected solutions and data services for
the aftermarket.

Honeywell Building Technologies

Honeywell Building Technologies is a leading global provider of products, software, solutions and
technologies that enable commercial building owners and occupants to ensure their facilities are safe,
energy efficient, sustainable and productive. Honeywell Building Technologies products and services
include advanced software applications for building control and optimization; sensors, switches, control
systems and instruments for energy management; access control; video surveillance; fire products;
remote patient monitoring systems; and installation, maintenance and upgrades of systems that keep
buildings safe, comfortable and productive.

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Performance Materials and Technologies
Performance Materials and Technologies is a global leader in developing and manufacturing high-
quality performance chemicals and materials, process technologies and automation solutions. UOP
provides process technology, products, including catalysts and adsorbents, equipment and consulting
services that enable customers to efficiently produce gasoline, diesel, jet fuel, petrochemicals and
renewable fuels for the petroleum refining, gas processing, petrochemical, and other industries.
Process Solutions is a pioneer in automation control, instrumentation, advanced software and related
services for the oil and gas, refining, pulp and paper, industrial power generation, chemicals and
petrochemicals, biofuels, life sciences, and metals, minerals and mining industries. Through its smart
energy business, Process Solutions also enables utilities and distribution companies to deploy
advanced capabilities that transform operations, improve reliability and environmental sustainability,
and better serve customers. Advanced Materials manufactures a wide variety of high-performance
products, including fluorocarbons, hydrofluoroolefins, specialty films, waxes, additives, advanced
fibers, customized research chemicals and intermediates, and electronic materials and chemicals.

Safety and Productivity Solutions

Safety and Productivity Solutions is a leading global provider of products, software and connected
solutions to customers around the globe that improve productivity, workplace safety and asset
performance. Safety products include personal protection equipment, apparel, gear, and footwear
designed for work, play and outdoor activities; gas detection technology; and cloud-based notification
and emergency messaging. Productivity Solutions products and services include mobile devices and
software for computing, data collection and thermal printing; supply chain and warehouse automation
equipment, software and solutions; custom-engineered sensors, switches and controls for sensing and
productivity solutions; and software-based data and asset management productivity solutions.

Competition
We are subject to competition in substantially all product and service areas. Some of our key
competitors are:
• Aerospace: Garmin, Thales, Safran and United Technologies
• Honeywell Building Technologies: Emerson Electric, Itron, Johnson Controls, Schneider Electric
and Siemens
• Performance Materials and Technologies: Albemarle, BASF, DowDupont, Emerson Electric and
Sinopec
• Safety and Productivity Solutions: 3M, Mine Safety Appliances (MSA), Kion Group, TE
Connectivity and Zebra Technologies
Our businesses compete on a variety of factors such as price, quality, reliability, delivery,
customer service, performance, applied technology, product innovation and product recognition. Brand
identity, service to customers and quality are important competitive factors for our products and
services, and there is considerable price competition. Other competitive factors include breadth of
product line, research and development efforts and technical and managerial capability. While our
competitive position varies among our products and services, we believe we are a significant
competitor in each of our major product and service classes. Many of our competitors have substantial
financial resources and significant technological capabilities. In addition, some of our products compete
with the captive component divisions of OEMs.

Aerospace Sales
Our Aerospace segment sales were 37%, 36% and 38% of our total sales in 2018, 2017 and
2016. Our sales to commercial aerospace OEMs were 7%, 6% and 6% of our total sales in 2018, 2017
and 2016. In addition, our sales to commercial aftermarket customers of aerospace products and
services were 13%, 13% and 12% of our total sales in 2018, 2017 and 2016.

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U.S. Government Sales
Sales to the U.S. Government (principally by Aerospace), acting through its various departments
and agencies and through prime contractors, amounted to $3,403 million, $3,203 million and
$3,330 million in 2018, 2017 and 2016, which included sales to the U.S. Department of Defense, as a
prime contractor and subcontractor, of $2,832 million, $2,546 million and $2,647 million in 2018, 2017
and 2016. We do not expect our overall operating results to be significantly affected by any proposed
changes in 2019 federal defense spending due principally to the varied mix of the government
programs which impact us (OEMs’ production, engineering development programs, aftermarket spares
and repairs and overhaul programs), as well as our diversified commercial businesses.

Backlog
Our backlog represents the estimated remaining value of work to be performed under firm
contracts. Starting in 2018 following the adoption of the new revenue recognition standard, backlog is
equal to our remaining performance obligations under the contracts that meet the new guidance on
revenue from contracts with customers as discussed in Note 7 to the Consolidated Financial
Statements. Backlog was $24,850 million and $17,690 million at December 31, 2018 and 2017. We
expect to recognize approximately 56% of our remaining performance obligations as revenue in 2019,
and the remaining balance thereafter.

International Operations
We are engaged in manufacturing, sales, service and research and development (R&D) globally.
U.S. exports and non-U.S. manufactured products are significant to our operations. U.S. exports
comprised 13% of our total sales in 2018, 12% in 2017 and 13% in 2016. Non-U.S. manufactured
products and services, mainly in Europe and Asia, were 43% of our total sales in 2018, 44% in 2017
and 43% in 2016.
Year Ended December 31, 2018
Honeywell Performance Safety and
Manufactured Products and Systems and Building Materials and Productivity
Performance of Services Aerospace Technologies Technologies Solutions
(% of Segment Sales)
U.S. Exports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21% 1% 16% 3%
Non-U.S. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31% 52% 55% 40%
Information related to risks attendant to our foreign operations is included in Item 1A. Risk Factors
under the caption “Macroeconomic and Industry Risks.”

Raw Materials
The principal raw materials used in our operations are generally readily available. Although we
occasionally experience disruption in raw materials supply, we experienced no significant problems in
the purchase of key raw materials or commodities in 2018. We are not dependent on any one supplier
for a material amount of our raw materials.
The costs of certain key raw materials, including R240, copper, fluorspar, tungsten salts, ethylene,
and perchloroethylene in Performance Materials and Technologies and nickel, steel, titanium and other
metals in Aerospace, are expected to continue to fluctuate. We will continue to attempt to offset raw
material cost increases with formula or long-term supply agreements, price increases and hedging
activities where feasible. We do not presently anticipate that a shortage of raw materials will cause any
material adverse impacts during 2019.

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Patents, Trademarks, Licenses and Distribution Rights
Our segments are not dependent upon any single patent or related group of patents, or any
licenses or distribution rights. In our judgment, our intellectual property rights are adequate for the
conduct of our business. We believe that, in the aggregate, the rights under our patents, trademarks
and licenses are generally important to our operations, but we do not consider any individual patent,
trademark or any licensing or distribution rights related to a specific process or product to be of
material importance in relation to our total business.

Environment
We are subject to various federal, state, local and foreign government requirements regarding
protection of human health and the environment. We believe that, as a general matter, our policies,
practices and procedures are properly designed to prevent unreasonable risk of environmental
damage, and of resulting financial liability, in connection with our business. Some risk of environmental
damage is, however, inherent in some of our operations and products, as it is with other companies
engaged in similar businesses.
We are and have been engaged in the handling, manufacturing, use and disposal of many
substances classified as hazardous by one or more regulatory agencies. We believe that, as a general
matter, our policies, practices and procedures are properly designed to prevent unreasonable risk of
environmental damage and personal injury, and that our handling, manufacture, use and disposal of
these substances are in accord with environmental and safety laws and regulations. It is also possible
that future knowledge or other developments, such as improved capability to detect substances in the
environment or increasingly strict environmental laws and standards and enforcement policies, could
bring into question our current or past handling, manufacture, use or disposal of these substances.
Among other environmental requirements, we are subject to the federal Superfund and similar
state and foreign laws and regulations, under which we have been designated as a potentially
responsible party that may be liable for cleanup costs associated with current and former operating
sites and various hazardous waste sites, some of which are on the U.S. Environmental Protection
Agency’s National Priority List. Although there is a possibility that a responsible party might have to
bear more than its proportional share of the cleanup costs if it is unable to obtain appropriate
contribution from other responsible parties, we do not anticipate having to bear significantly more than
our proportional share in multi-party situations taken as a whole.
We do not believe that existing or pending climate change legislation, regulation, or international
treaties or accords are reasonably likely to have a material effect in the foreseeable future on the
Company’s business or markets that it serves, nor on its results of operations, capital expenditures,
earnings, competitive position or financial standing. We will continue to monitor emerging
developments in this area.

Employees
We have approximately 114,000 employees at December 31, 2018, of whom approximately
44,000 are located in the United States.

4
Executive Officers of the Registrant
The executive officers of Honeywell, listed as follows, are elected annually by the Board of
Directors. There are no family relationships among them.
Name, Age,
Date First
Elected an
Executive Officer Business Experience
Darius Adamczyk, 53 Chairman of the Board and Chief Executive Officer since April 2018.
2017(a) President and Chief Executive Officer from April 2017 to April
2018. Chief Operating Officer from April 2016 to March 2017.
President and Chief Executive Officer Performance Materials and
Technologies from April 2014 to April 2016. President of
Honeywell Process Solutions from April 2012 to April 2014.
Que Thanh Dallara, 45 President and Chief Executive Officer Connected Enterprise since
2018 October 2018. Vice President and Chief Commercial Officer from
January 2017 to October 2018.
Rajeev Gautam, 66 President and Chief Executive Officer Performance Materials and
2016 Technologies since April 2016. President of Honeywell UOP from
January 2009 to April 2016.
Mark R. James, 57 Senior Vice President Human Resources, Security and
2007 Communications since November 2007.
Vimal Kapur, 53 President and Chief Executive Officer Honeywell Building
2018 Technologies since May 2018. President of Honeywell Process
Solutions from 2014 to May 2018.
Gregory P. Lewis, 51 Senior Vice President and Chief Financial Officer since August 2018.
2018 Vice President of Enterprise Information Management from
October 2016 to April 2018, prior to being named Vice
President, Corporate Finance in May 2018. Chief Financial
Officer of Automation and Control Solutions from April 2013 to
September 2016.
Anne T. Madden, 54 Senior Vice President and General Counsel since October 2017.
2017 Also Corporate Secretary since February 2018. Vice President of
Corporate Development and Global Head of M&A from January
2002 to October 2017.
Timothy O. Mahoney, 62 President and Chief Executive Officer Aerospace since September
2009 2009.
Krishna Mikkilineni, 59 Senior Vice President Engineering and Information Technology since
2010(b) April 2013.
John F. Waldron, 43 President and Chief Executive Officer, Safety and Productivity
2016 Solutions since July 2016. President of Sensing and Productivity
Solutions from July 2015 to July 2016. President of Scanning and
Mobility from April 2012 to July 2015.

(a) Also a Director.

(b) Mr. Mikkilineni will retire from the Company effective April 30, 2019.

Item 1A. Risk Factors

Cautionary Statement About Forward-Looking Statements
We describe many of the trends and other factors that drive our business and future results in
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations and
in other parts of this report (including this Item 1A). Such discussions contain forward-looking
statements within the meaning of Section 21E of the Securities Exchange Act of 1934.

5
 Forward-looking statements are those that address activities, events or developments that
management intends, expects, projects, believes or anticipates will or may occur in the future. They
are based on management’s assumptions and assessments in 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 significantly from those envisaged by our forward-looking statements. We do not
undertake to update or revise any of our forward-looking statements. Our forward-looking statements
are also subject to risks and uncertainties that can affect our performance in both the near-and long-
term. These forward-looking statements should be considered in light of the information included in this
Form 10-K, including, in particular, the factors discussed below. These factors may be revised or
supplemented in subsequent reports on Forms 10-Q and 8-K.

Risk Factors
Our business, operating results, cash flows and financial condition are subject to the principal risks
and uncertainties set forth below, any one of which could cause our actual results to vary materially
from recent results or from our anticipated future results.

Macroeconomic and Industry Risks

Industry and economic conditions may adversely affect the markets and operating
conditions of our customers, which in turn can affect demand for our products and services
and our results of operations.
• Aerospace—Operating results of Aerospace are directly tied to cyclical industry and economic
conditions, as well as changes in customer buying patterns of aftermarket parts, supplier
stability, factory transitions and global supply chain capacity constraints that may lead to
shortages of crucial components. The operating results of our Commercial Aviation business
unit may be adversely affected by downturns in the global demand for air travel which impacts
new aircraft production or the delay or cancellation of new aircraft orders, delays in launch
schedules for new aircraft, the retirement of aircraft and global flying hours, which impact air
transport, regional, business and general aviation aircraft utilization rates. Operating results
could also be impacted by changes in overall trends related to end market demand for the
product portfolio, as well as, new entrants and non-traditional players entering the market.
Operating results in our Defense and Space business unit may be affected by the mix of U.S.
and foreign government appropriations for defense and space programs and by compliance
risks. Results may also be impacted by the potential introduction of counterfeit parts into our
global supply chain.
• Honeywell Building Technologies—Operating results may be adversely impacted by
downturns in the level of global commercial construction activity (including retrofits and
upgrades), lower capital spending and operating expenditures on building projects, less
industrial plant expansion, changes in the competitive landscape including new market entrants
and new technologies, and fluctuations in inventory levels in distribution channels.
• Performance Materials and Technologies—Operating results may be adversely impacted by
downturns in capacity utilization for chemical, industrial, refining, petrochemical and semi-
conductor plants, our customers’ availability of capital for refinery construction and expansion,
raw material demand and supply volatility, product commoditization, and our ability to maximize
our facilities’ production capacity and minimize downtime. In particular, the volatility in oil and
natural gas prices have and will continue to impact our customers’ operating levels and capital
spending and thus demand for our products and services.
• Safety and Productivity Solutions—Operating results may be adversely impacted by
downturns in the level of global capital spending and operating expenditures, including in the
oil and gas industry, reduced investments in process automation, safety monitoring, and plant
capacity utilization initiatives, fluctuations in retail markets, lower customer demand due to the
failure to anticipate and respond to overall trends related to end market demand, changes in the

6
 competitive landscape including new market entrants and technology that may lead to product
commoditization, and adverse industry economic conditions, all of which could result in lower
market share, reduced selling prices and lower margins.

An increasing percentage of our sales and operations is in non-U.S. jurisdictions and is

subject to the economic, political, regulatory, foreign exchange and other risks of
international operations.

Our international operations, including U.S. exports, represent more than half of the Company’s
sales. Risks related to international operations include exchange control regulations, wage and price
controls, antitrust regulations, employment regulations, foreign investment laws, import, export and
other trade restrictions (such as sanctions and embargoes), violations by our employees of anti-
corruption laws (despite our efforts to mitigate these risks), changes in regulations regarding
transactions with state-owned enterprises, nationalization of private enterprises, acts of terrorism, and
our ability to hire and maintain qualified staff and maintain the safety of our employees in these
regions. Instability and uncertainties arising from the global geopolitical environment, and the evolving
international and domestic political, regulatory and economic landscape, the potential for changes in
global trade policies including sanctions and trade barriers, trends such as populism, economic
nationalism and negative sentiment toward multinational companies, and the cost of compliance with
increasingly complex and often conflicting regulations worldwide can impair our flexibility in modifying
product, marketing, pricing or other strategies for growing our businesses, as well as our ability to
improve productivity and maintain acceptable operating margins.

While it is currently not known what the final outcome and full terms of the United Kingdom’s future
relationship with the European Union will be, it is possible that there will be greater restrictions on
imports and exports between the United Kingdom and other countries, including the United States,
increased tariffs on U.K. imports and exports, and increased regulatory complexities.

Existing free trade laws and regulations, such as the North American Free Trade Agreement, or
any successor agreement, provide certain beneficial duties and tariffs for qualifying imports and
exports. Changes in laws or policies governing the terms of foreign trade, and in particular increased
trade restrictions, tariffs or taxes on imports from countries where we manufacture products or from
where we import products or raw materials, either directly or through our suppliers, could have an
impact on our competitive position and financial results.

Operating outside of the United States also exposes us to foreign exchange risk, which we monitor
and seek to reduce through hedging activities. However, foreign exchange hedging activities bear a
financial cost and may not always be available to us or be successful in eliminating such volatility.
Finally, we generate significant amounts of cash outside of the United States that is invested with
financial and non-financial counterparties. While we employ comprehensive controls regarding global
cash management to guard against cash or investment loss and to ensure our ability to fund our
operations and commitments, a material disruption to the counterparties with whom we transact
business could expose Honeywell to financial loss.

Risks related to our defined benefit pension plans may adversely impact our results of
operations and cash flow.

Significant changes in actual investment return on pension assets, discount rates, and other
factors could adversely affect our results of operations and require cash pension contributions in future
periods. Changes in discount rates and actual asset returns different than our anticipated asset returns
can result in significant non-cash actuarial gains or losses which we record in the fourth quarter of each
fiscal year, and, if applicable, in any quarter in which an interim re-measurement is triggered. With
regard to cash pension contributions, funding requirements for our pension plans are largely dependent
upon interest rates, actual investment returns on pension assets and the impact of legislative or
regulatory changes related to pension funding obligations.

7
Operational Risks

Raw material price fluctuations, the ability of key suppliers to meet quality and delivery
requirements, or catastrophic events can increase the cost of our products and services,
impact our ability to meet commitments to customers and cause us to incur significant
liabilities.
The cost of raw materials is a key element in the cost of our products, particularly in Performance
Materials and Technologies (R240, copper, fluorspar, tungsten salts, ethylene, and perchloroethylene)
and in Aerospace (nickel, steel, titanium and other metals). Our inability to offset material price inflation
through increased prices to customers, formula or long-term fixed price contracts with suppliers,
productivity actions or through commodity hedges could adversely affect our results of operations.
Many major components, product equipment items and raw materials, particularly in Aerospace,
are procured or subcontracted on a single or sole-source basis. Although we maintain a qualification
and performance surveillance process and we believe that sources of supply for raw materials and
components are generally adequate, it is difficult to predict what effects shortages or price increases
may have in the future. Our ability to manage inventory and meet delivery requirements may be
constrained by our suppliers’ inability to scale production and adjust delivery of long-lead time products
during times of volatile demand. Our inability to fill our supply needs would jeopardize our ability to
fulfill obligations under commercial and government contracts, which could, in turn, result in reduced
sales and profits, contract penalties or terminations, and damage to customer relationships.

We may be unable to successfully execute or effectively integrate acquisitions, and

divestitures may not occur as planned.
We regularly review our portfolio of businesses and pursue growth through acquisitions and seek
to divest non-core businesses. We may not be able to complete transactions on favorable terms, on a
timely basis, or at all, and during integration we may discover cybersecurity and compliance issues. In
addition, our results of operations and cash flows may be adversely impacted by (i) the failure of
acquired businesses to meet or exceed expected returns, including risk of impairment; (ii) the failure to
integrate multiple acquired businesses into Honeywell simultaneously and on schedule and/or to
achieve expected synergies; (iii) the inability to dispose of non-core assets and businesses on
satisfactory terms and conditions; (iv) the discovery of unanticipated liabilities, labor relations difficulties
or other problems in acquired businesses for which we lack contractual protections, insurance or
indemnities, or with regard to divested businesses, claims by purchasers to whom we have provided
contractual indemnification and (v) the inability to collect on the indemnification and reimbursement
agreements entered into with our spin-offs, Garrett Motion Inc. and Resideo Technologies, Inc.

Our future growth is largely dependent upon our ability to develop new technologies and
introduce new products that achieve market acceptance in increasingly competitive markets
with acceptable margins.
Our future growth rate depends upon a number of factors, including our ability to (i) identify and
evolve with emerging technological and broader industry trends in our target end-markets, (ii) develop
and maintain competitive products, (iii) defend our market share against an ever-expanding number of
competitors including many new and non-traditional competitors, (iv) enhance our products by adding
innovative features that differentiate our products from those of our competitors and prevent
commoditization of our products, (v) develop, manufacture and bring compelling new products to
market quickly and cost-effectively, (vi) monitor disruptive technologies and business models,
(vii) achieve sufficient return on investment for new products introduced based on capital expenditures
and research and development spending, (viii) respond to changes in overall trends related to end
market demand, and (x) attract, develop and retain individuals with the requisite technical expertise
and understanding of customers’ needs to develop new technologies and introduce new products.
Competitors may also develop after-market services and parts for our products which attract customers
and adversely affect our return on investment for new products.

8
 The failure of our technologies or products to gain market acceptance due to more attractive
offerings by our competitors or the failure to address any of the above factors could significantly reduce
our revenues and adversely affect our competitive standing and prospects.

Failure to increase productivity through sustainable operational improvements, as well as an

inability to successfully execute repositioning projects or to effectively manage our
workforce, may reduce our profitability or adversely impact our businesses.
Our profitability and margin growth are dependent upon our ability to drive sustainable
improvements. In addition, we seek productivity and cost savings benefits through repositioning
actions and projects, such as consolidation of manufacturing facilities, transitions to cost-competitive
regions and product line rationalizations. Risks associated with these actions include delays in
execution of the planned initiatives, additional unexpected costs, realization of fewer than estimated
productivity improvements and adverse effects on employee morale. We may not realize the full
operational or financial benefits we expect, the recognition of these benefits may be delayed and these
actions may potentially disrupt our operations. In addition, organizational changes, increased attrition,
failure to create and implement a succession plan for key Company positions, not retaining key talent,
inability to attract new employees with unique skills, labor relations difficulties, or workforce stoppage
could have a material adverse effect on our business, reputation, financial position and results of
operations.

As a supplier to the U.S. Government, we are subject to unique risks, such as the right of
the U.S. Government to terminate contracts for convenience and to conduct audits and
investigations of our operations and performance.
U.S. Government contracts are subject to termination by the government, either for the
convenience of the government or for our failure to perform consistent with the terms of the
applicable contract. Our contracts with the U.S. Government are also subject to government audits that
may recommend downward price adjustments and other changes. When appropriate and prudent, we
have made adjustments and paid voluntary refunds in the past and may do so in the future.
We are also subject to government investigations of business practices and compliance with
government procurement regulations. If, as a result of any such investigation or other government
investigations (including investigation of violations of certain environmental, employment or export
laws), Honeywell or one of its businesses were found to have violated applicable law, then it could be
suspended from bidding on or receiving awards of new government contracts, suspended from
contract performance pending the completion of legal proceedings and/or have its export privileges
suspended.

Our operations and the prior operations of predecessor companies expose us to the risk of
material environmental liabilities.
Mainly because of past operations and operations of predecessor companies, we are subject to
potentially material liabilities related to the remediation of environmental hazards and to claims of
personal injuries or property damages that may be caused by hazardous substance releases and
exposures. We continue to incur remedial response and voluntary clean-up costs for site contamination
and are a party to lawsuits and claims associated with environmental and safety matters, including past
production of products containing hazardous substances. Additional lawsuits, claims and costs
involving environmental matters are likely to continue to arise in the future. Various federal, state, local
and foreign governments regulate the discharge of materials into the environment, or the use of or
communications respecting certain materials in our products, and can impose substantial fines and
criminal sanctions for violations, and require injunctive relief measures, including installation of costly
equipment or operational changes to limit emissions and/or decrease the likelihood of accidental
hazardous substance releases, or limiting access of our products to markets, among others. In
addition, changes in laws, regulations and enforcement of policies, the discovery of previously
unknown contamination or new technology or information related to individual sites, the establishment
of stricter toxicity standards with respect to certain contaminants, or the imposition of new clean-up

9
requirements or remedial techniques could require us to incur additional costs in the future that would
have a negative effect on our financial condition or results of operations.

Cybersecurity incidents could disrupt business operations, result in the loss of critical and
confidential information, and adversely impact our reputation and results of operations.

Global cybersecurity threats and incidents can range from uncoordinated individual attempts to
gain unauthorized access to information technology (IT) systems to sophisticated and targeted
measures known as advanced persistent threats, directed at the Company, its products, its customers
and/or its third party service providers, including cloud providers. Our customers, including the U.S.
government, are increasingly requiring cybersecurity protections and mandating cybersecurity
standards in our products, and we may incur additional costs to comply with such demands. While
we have experienced, and expect to continue to experience, these types of threats and incidents, none
of them to date have been material to the Company. We seek to deploy comprehensive measures to
deter, prevent, detect, respond to and mitigate these threats, including identity and access controls,
data protection, vulnerability assessments, product software designs which we believe are less
susceptible to cyber attacks, continuous monitoring of our IT networks and systems and maintenance
of backup and protective systems. Despite these efforts, cybersecurity incidents, depending on their
nature and scope, could potentially result in the misappropriation, destruction, corruption or
unavailability of critical data and confidential or proprietary information (our own or that of third
parties) and the disruption of business operations. Cybersecurity incidents aimed at the software
imbedded in our products could lead to third party claims that our product failures have caused a
similar range of damages to our customers, and this risk is enhanced by the increasingly connected
nature of our products. The potential consequences of a material cybersecurity incident include
financial loss, reputational damage, litigation with third parties, theft of intellectual property, fines levied
by the Federal Trade Commission, diminution in the value of our investment in research, development
and engineering, and increased cybersecurity protection and remediation costs due to the increasing
sophistication and proliferation of threats, which in turn could adversely affect our competitiveness and
results of operations.

Data privacy, identity protection, and information security may require significant resources
and presents certain risks.

We collect, store, have access to and otherwise process certain confidential or sensitive data,
including proprietary business information, personal data or other information that is subject to privacy
and security laws, regulations and/or customer-imposed controls. Despite our efforts to protect such
data, we may be vulnerable to material security breaches, theft, misplaced or lost data, programming
errors, or employee errors that could potentially lead to the compromising of such data, improper use
of our systems, software solutions or networks, unauthorized access, use, disclosure, modification or
destruction of information, defective products, production downtimes and operational disruptions. In
addition, we operate in an environment in which there are different and potentially conflicting data
privacy laws in effect in the various U.S. states and foreign jurisdictions in which we operate and we
must understand and comply with each law and standard in each of these jurisdictions while ensuring
the data is secure. For example, the State of California recently passed legislation granting residents
certain new data privacy rights and regulating the security of Internet of Things devices, which will go
into effect in January 2020; European laws require us to have an approved legal mechanism to transfer
personal data out of Europe; the European Union General Data Protection Regulation, which took
effect in May 2018, superseded prior European Union data protection legislation and imposes more
stringent requirements in how we collect and process personal data and provides for significantly
greater penalties for noncompliance; and several other countries have passed laws that require
personal data relating to their citizens to be maintained on local servers and impose additional data
transfer restrictions. Government enforcement actions can be costly and interrupt the regular operation
of our business, and violations of data privacy laws can result in fines, reputational damage and civil
lawsuits, any of which may adversely affect our business, reputation and financial statements.

10
A material disruption of our operations, particularly at our manufacturing facilities or within
our information technology infrastructure, could adversely affect our business.
Our facilities, supply chains, distribution systems and information technology systems are subject
to catastrophic loss due to natural disasters including hurricanes and floods, power outages, fires,
explosions, terrorism, equipment failures, sabotage, adverse weather conditions, public health crises,
labor disputes, critical supply failure, inaccurate downtime forecast, political disruption, and other
reasons, which can result in undesirable consequences, including financial losses and damaged
relationships with customers. We employ information technology systems and networks to support the
business and rely on them to process, transmit and store electronic information, and to manage or
support a variety of business processes and activities. Disruptions to our information technology
infrastructure from system failures, shutdowns, power outages, telecommunication or utility failures,
and other events, including disruptions at our cloud computing, server, systems and other third party IT
service providers, could interfere with our operations, interrupt production and shipments, damage
customer and business partner relationships, and negatively impact our reputation.

Legal and Regulatory Risks

Our U.S. and non-U.S. tax liabilities are dependent, in part, upon the distribution of income
among various jurisdictions in which we operate.
Our future results of operations could be adversely affected by changes in the effective tax rate as
a result of a change in the mix of earnings in countries with differing statutory tax rates, changes in tax
laws, regulations and judicial rulings (or changes in the interpretation thereof), potential expansion of
taxation on digital services, changes in generally accepted accounting principles, changes in the
valuation of deferred tax assets and liabilities, changes in the amount of earnings permanently
reinvested offshore, the results of audits and examinations of previously filed tax returns and
continuing assessments of our tax exposures and various other governmental enforcement initiatives.
Our tax expense includes estimates of tax reserves and reflects other estimates and assumptions,
including assessments of future earnings of the Company which could impact the valuation of our
deferred tax assets. Changes in tax laws or regulations, including further regulatory developments
arising from U.S. tax reform legislation as well as multi-jurisdictional changes enacted in response to
the action items provided by the Organization for Economic Co-operation and Development (OECD),
will increase tax uncertainty and impact our provision for income taxes.

Changes in legislation or government regulations or policies can have a significant impact

on our results of operations.
The sales and margins of each of our segments are directly impacted by government regulations
including safety, performance and product certification regulations. Within Aerospace, the operating
results of Commercial Original Equipment and Commercial Aftermarket may be impacted by, among
other things, mandates of the Federal Aviation Administration and other similar international regulatory
bodies requiring the installation of equipment on aircraft. Our Defense and Space business unit may be
affected by changes in government procurement regulations. Within Honeywell Building Technologies,
the demand for and cost of providing products, services and solutions can be impacted by fire,
security, safety, health care, environmental and energy efficiency standards and regulations.
Performance Materials and Technologies’ results of operations can be impacted by environmental
standards, regulations, and judicial determinations. Growth in all our businesses within emerging
markets may be adversely impacted by the inability to acquire and retain qualified employees where
local employment law mandates may be restrictive. Noncompliance with legislation and regulations can
result in fines and penalties.
Increased public awareness and concern regarding global climate change may result in more
international, regional and/or federal requirements to reduce or mitigate global warming and these
regulations could mandate even more restrictive standards, such as stricter limits on greenhouse gas
emissions, than the voluntary commitments that the Company has made or require such changes on a
more accelerated time frame. There continues to be a lack of consistent climate legislation, which

11
creates economic and regulatory uncertainty. If environmental laws or regulations are either changed
or adopted and impose significant operational restrictions and compliance requirements upon the
Company or its products, they could negatively impact the Company’s business, capital expenditures,
results of operations, financial condition and competitive position.

We cannot predict with certainty the outcome of litigation matters, government proceedings
and other contingencies and uncertainties.
We are subject to a number of 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 (including asbestos), prior acquisitions
and divestitures, employment, employee benefits plans, intellectual property, antitrust, accounting,
import and export, and environmental, health and safety matters. Our potential liabilities are subject to
change over time due to new developments, changes in settlement strategy or the impact of
evidentiary requirements, and we may become subject to or be required to pay damage awards or
settlements that could have a material adverse effect on our results of operations, cash flows and
financial condition. While we maintain insurance for certain risks, the amount of our insurance
coverage may not be adequate to cover the total amount of all insured claims and liabilities. The
incurrence of significant liabilities for which there is no or insufficient insurance coverage could
adversely affect our results of operations, cash flows, liquidity and financial condition.

12
Item 1B. Unresolved Staff Comments
None

Item 2. Properties
We have approximately 991 locations, of which 252 are manufacturing sites. Our properties and
equipment are in good operating condition and are adequate for our present needs. We do not
anticipate difficulty in renewing existing leases as they expire or in finding alternative facilities.

Item 3. Legal Proceedings

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 a discussion of environmental,
asbestos and other litigation matters in Note 20 Commitments and Contingencies of Notes to
Consolidated Financial Statements.

Item 4. Mine Safety Disclosures

Not applicable.

13
 Part II.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters
and Issuer Purchases of Equity Securities
Honeywell’s common stock is listed on the New York Stock Exchange under the ticker symbol
“HON”. Dividend information for Honeywell’s common stock is included in Note 25 Unaudited Quarterly
Financial Information of Notes to Consolidated Financial Statements.
The number of record holders of our common stock at December 31, 2018 was 45,606.
Information regarding securities authorized for issuance under equity compensation plans is
included in Item 12. Security Ownership of Certain Beneficial Owners and Management and Related
Stockholder Matters under the caption “Equity Compensation Plans.”
Honeywell purchased 11,181,042 shares of its common stock, par value $1 per share, in the
quarter ending December 31, 2018. In December 2017, the Board of Directors authorized the
repurchase of up to a total of $8 billion of Honeywell common stock, which included amounts remaining
under and replaced the previously approved share repurchase program. $3.7 billion remained available
as of as of December 31, 2018 for additional share repurchases. Honeywell presently expects to
repurchase outstanding shares from time to time to generally offset the dilutive impact of employee
stock based compensation plans, including option exercises, restricted unit vesting and matching
contributions under our savings plans. Additionally, we seek to reduce share count via share
repurchases as and when attractive opportunities arise. The amount and timing of future repurchases
may vary depending on market conditions and the level of our operating, financing and other investing
activities.
The following table summarizes Honeywell’s purchase of its common stock for the three months
ended December 31, 2018:
Issuer Purchases of Equity Securities
Total Number
of Shares Approximate Dollar
Purchased as Value of Shares that
Total Part of Publicly May Yet be Purchased
Number of Average Announced Under Plans or
Shares Price Paid Plans Programs
Period Purchased per Share or Programs (Dollars in millions)
October 2018 5,360,640 $156.75 5,360,640 $4,589
November 2018 4,810,000 $146.77 4,810,000 $3,883
December 2018 1,010,402 $143.62 1,010,402 $3,737

14
 Performance Graph
The following graph compares the five-year cumulative total return on our common stock to the
total returns on the Standard & Poor’s (S&P) 500 Stock Index and a composite of S&P’s Industrial
Conglomerates and Aerospace and Defense indices, on a 65%/35% weighted basis (the Composite
Index). The weighting of the components of the Composite Index are based on our segments’ relative
contribution to total segment profit. The selection of the Industrial Conglomerates component of the
Composite Index reflects the diverse and distinct range of non-aerospace businesses conducted by
Honeywell. The annual changes for the five-year period shown in the graph are based on the
assumption that $100 had been invested in Honeywell stock and each index on December 31, 2013
and that all dividends were reinvested.

COMPARISON OF CUMULATIVE FIVE YEAR TOTAL RETURN

200

150
D
O
L
L 100
A
R
S
50

0
2013 2014 2015 2016 2017 2018

Dec 2013 Dec 2014 Dec 2015 Dec 2016 Dec 2017 Dec 2018
Honeywell 100 111.51 118.02 135.76 183.33 168.31
S&P 500 Index® 100 113.69 115.26 129.05 157.22 150.33
Composite Index 100 104.90 118.38 132.97 144.89 115.49

15
 HONEYWELL INTERNATIONAL INC.
This selected financial data should be read in conjunction with Honeywell’s Consolidated Financial
Statements and related Notes included elsewhere in this Annual Report as well as the section of this
Annual Report titled Item 7. Management’s Discussion and Analysis of Financial Condition and Results
of Operations.

Item 6. Selected Financial Data

Years Ended December 31,
2018(1) 2017(1) 2016 2015 2014
(Dollars in millions, except per share amounts)
Results of Operations(2)
Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $41,802 $40,534 $39,302 $38,581 $40,306
Net income attributable to Honeywell . . . . . . . . . . 6,765 1,545 4,812 4,771 4,262

Earnings Per Common Share(2)

Earnings from continuing operations:
Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.10 2.03 6.30 6.12 5.43
Assuming dilution . . . . . . . . . . . . . . . . . . . . . . . . . 8.98 2.00 6.21 6.04 5.36
Dividends per share. . . . . . . . . . . . . . . . . . . . . . . . . . . 3.06 2.74 2.45 2.15 1.87

Financial Position at Year-End(2)

Property, plant and equipment-net . . . . . . . . . . . . . 5,296 5,926 5,793 5,789 5,383
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57,773 59,470 54,566 49,711 45,969
Short-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,458 5,309 3,593 6,514 2,637
Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,756 12,573 12,182 5,554 6,046
Total debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,214 17,882 15,775 12,068 8,683
Redeemable noncontrolling interest . . . . . . . . . . . . 7 5 3 290 219
Shareowners’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . 18,358 16,665 18,883 17,751 17,113

(1) 2018 and 2017 Net Income attributable to Honeywell and Earnings Per Common Share were
impacted by U.S. Tax Reform; see Note 5 Income Taxes of Notes to Consolidated Financial
Statements for further details.
(2) Results of Operations, Earnings per Common Share and Financial Position at Year-End were
revised in years prior to 2018 in connection with our change in accounting for Bendix asbestos-
related liabilities for unasserted claims. See Note 20 Commitments and Contingencies of Notes to
Consolidated Financial Statements for further details.

16
Item 7. Management’s Discussion and Analysis of Financial Condition and
Results of Operations
(Dollars in millions, except per share amounts)

The following Management’s Discussion and Analysis of Financial Condition and Results of
Operations 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 years ended December 31, 2018. All references to Notes relate to Notes to Consolidated
Financial Statements in Item 8. Financial Statements and Supplementary Data.
On October 29, 2018, the Company completed the tax-free spin-off to Honeywell shareowners of
its Homes and Global Distribution business, part of Home and Building Technologies (renamed
Honeywell Building Technologies following the spin-off), into a standalone publicly-traded company,
Resideo Technologies, Inc. (“Resideo”). The assets and liabilities associated with Resideo have been
removed from the Company’s Consolidated Balance Sheet as of the effective date of the spin-off. The
results of operations for Resideo are included in the Consolidated Statement of Operations through the
effective date of the spin-off.
On October 1, 2018, the Company completed the tax-free spin-off to Honeywell shareowners of its
Transportation Systems business, part of Aerospace, into a standalone publicly-traded company,
Garrett Motion Inc. (“Garrett”). The assets and liabilities associated with Garrett have been removed
from the Company’s Consolidated Balance Sheet as of the effective date of the spin-off. The results of
operations for Garrett are included in the Consolidated Statement of Operations through the effective
date of the spin-off.
On October 1, 2016, the Company completed the tax-free spin-off to Honeywell shareowners of its
Resins and Chemicals business, part of Performance Materials and Technologies, into a standalone,
publicly-traded company (named AdvanSix Inc. (“AdvanSix”)). The assets and liabilities associated with
AdvanSix have been removed from the Company’s Consolidated Balance Sheet as of the effective
date of the spin-off. The results of operations for AdvanSix are included in the Consolidated Statement
of Operations through the effective date of the spin-off.
On September 16, 2016, the Company completed the sale of the Aerospace government services
business, Honeywell Technology Solutions Inc (“HTSI” or “government services business”). The assets
and liabilities associated with HTSI have been removed from the Company’s Consolidated Balance
Sheet as of the effective date of the sale. The results of operations for HTSI are included in the
Consolidated Statement of Operations through the effective date of the sale.

EXECUTIVE SUMMARY
During 2018, Honeywell continued to deliver on our financial commitments and to create long-term
shareowner value. We grew net sales 3% to $41,802 million and grew income before taxes 8% to
$7,487 million. The improvement in year over year income before taxes was attributable to both sales
growth as well as operational improvements that increased operating margins. We believe our ability to
consistently grow earnings derives from the consistent, rigorous deployment of the Honeywell
Operating System as well as a long history of identifying and investing in productivity initiatives. We
have continued our focus on commercial excellence processes, such as Velocity Product Development
(“VPD”), to drive higher sales at better margins.
We are careful not to allow the attainment of short-term financial results to imperil the creation of
long-term, sustainable shareowner value. Hence, as part of the announcement in October 2017 of the
results of our portfolio review, we affirmed our commitment to a strategy and investments that are
intended to enable us to become one of the world’s leading software industrial companies. Our
refocused strategy and investments are intended to take better advantage of our core technological
and software strengths in high growth businesses that participate in six attractive industrial end
markets. Each of these end markets is characterized by favorable global mega-trends including energy
efficiency, infrastructure investment, urbanization and safety.

17
 In 2018 we deployed capital of $7.6 billion, including the following:
• Capital Investment—we invested over $0.8 billion in capital expenditures focused on high
return projects.
• Dividends—In 2018, we paid cash dividends of $2.3 billion and increased our annual dividend
rate by 10%, as we seek to continue to grow the dividend in line with earnings. The dividend
increase in September 2018 marked the ninth consecutive double-digit increase since 2010.
• Share Repurchases—we continue to repurchase our shares with the goal of keeping share
count flat and by offsetting the dilutive impact of employee stock based compensation and
savings plans. Additionally, we seek to reduce share count via share repurchases as and when
attractive opportunities arise. In 2018, we repurchased 26.5 million shares for $4.0 billion.
• Mergers and Acquisitions—we deployed approximately $0.5 billion during 2018 on
acquisitions.

CONSOLIDATED RESULTS OF OPERATIONS

Net Sales
2018 2017 2016
Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $41,802 $40,534 $39,302
% change compared with prior period . . . . . . . . . . . . . . . . . . 3% 3%
The change in net sales is attributable to the following:
2018 2017
Versus Versus
2017 2016
Volume . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4% 3%
Price. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2% 1%
Acquisitions/Divestitures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4)% (1)%
Foreign Currency Translation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1% 0%
3% 3%

A discussion of net sales by segment can be found in the Review of Business Segments section
of this Management’s Discussion and Analysis.
The foreign currency translation impact in 2018 compared with 2017 was principally driven by the
strengthening on average year over year of the Euro against the U.S. Dollar.
The foreign currency translation impact in 2017 compared with 2016 was flat. The strengthening of
the Euro was offset by the weakening of the British Pound against the U.S. Dollar.

Cost of Products and Services Sold

2018 2017 2016
Cost of products and services sold . . . . . . . . . . . . . . . . . . . . $29,046 $28,144 $27,677
% change compared with prior period . . . . . . . . . . . . . . . . . . 3% 2%

Gross Margin percentage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30.5% 30.6% 29.6%

Cost of products and services sold increased in 2018 compared with 2017 principally due to
increased direct material costs of approximately $790 million (driven by higher sales volume and
inflation partially offset by divestitures and productivity) and higher repositioning and other charges of
approximately $70 million.
Gross margin percentage decreased in 2018 compared with 2017 principally due to higher
repositioning and other charges (approximately 0.2 percentage point impact) partially offset by higher
gross margin in the segments (approximately 0.1 percentage point impact collectively).
Cost of products and services sold increased in 2017 compared with 2016 principally due to
increased direct material costs of approximately $290 million (driven by higher sales volume and
acquisitions partially offset by divestitures and productivity, net of inflation), higher repositioning and

18
other charges of approximately $220 million and higher depreciation and amortization of approximately
$90 million, partially offset by decreased indirect material costs of approximately $70 million and lower
labor costs of approximately $60 million.
Gross margin percentage increased in 2017 compared with 2016 principally due to higher gross
margin in Aerospace and Performance Materials and Technologies (approximately 1.7 percentage
point impact collectively), partially offset by higher repositioning and other charges (approximately 0.5
percentage point impact) and by lower gross margin in Home and Building Solutions and Safety and
Productivity Solutions (approximately 0.3 percentage point impact collectively).

Selling, General and Administrative Expenses

2018 2017 2016
Selling, general and administrative expenses. . . . . . . . . . . . . . . $6,051 $6,087 $5,574
% of sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.5% 15.0% 14.2%
Selling, general and administrative expenses decreased in 2018 compared with 2017 primarily due
to productivity and divestiture impacts, partially offset by labor inflation and higher repositioning
charges.
Selling, general and administrative expenses increased in 2017 compared with 2016 primarily due
to increased labor costs (driven primarily by acquisitions, net of divestitures, investment for growth and
merit increases), and higher repositioning charges.

Other (Income) Expense

2018 2017 2016
Other (income) expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(1,149) $(963) $(739)
Other (income) expense increased in 2018 compared with 2017 primarily due to an increase in
pension ongoing income–non-service, favorable impacts of foreign currency and an increase in interest
income, partially offset by separation costs associated with the spin-offs of our Homes and Global
Distribution business and Transportation Systems business.
Other (income) expense increased in 2017 compared with 2016 primarily due to due to an
increase in pension ongoing income–non-service.

Tax Expense
2018 2017 2016
Tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $659 $5,362 $1,603
Effective tax rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.8% 77.2% 24.8%
The effective tax rate for 2018 was lower than the U.S. federal statutory rate of 21% primarily
attributable to internal restructuring initiatives that resulted in a reduction of accrued withholding taxes
of approximately $1.1 billion related to unremitted foreign earnings. In addition, we recorded a tax
benefit of approximately $440 million as a reduction to our 2017 provisional estimate of impacts from
what is commonly referred to as the U.S. Tax Cuts and Jobs Act (“U.S. Tax Reform”), which was
partially offset by $411 million of tax costs associated with the internal restructuring of the Homes and
Global Distribution business and the Transportation Systems business in advance of their spin-offs.
The effective tax rate for 2017 was higher than the U.S. federal statutory rate of 35% primarily
from the estimated impacts of U.S. Tax Reform of approximately $3.8 billion, partially offset by lower
tax rates on non-U.S. earnings.
The effective tax rate for 2016 was lower than the U.S. federal statutory rate of 35% primarily from
lower tax rates on non-U.S. earnings.
For further discussion of changes in the effective tax rate, see Note 5 Income Taxes of Notes to
Consolidated Financial Statements.

19
 Net Income Attributable to Honeywell
2018 2017 2016
Net income attributable to Honeywell . . . . . . . . . . . . . . . . . . . . . . $6,765 $1,545 $4,812
Earnings per share of common stock–assuming dilution . . . . $ 8.98 $ 2.00 $ 6.21
Earnings per share of common stock–assuming dilution increased in 2018 compared with 2017
primarily driven by the lower income tax expenses (due to reduction of accrued withholding taxes and
the higher comparative income taxes in 2017 from U.S. Tax Reform), higher segment profit, increased
pension and other postretirement income, and lower share count, partially offset by separation costs
and higher repositioning and other charges.
Earnings per share of common stock–assuming dilution decreased in 2017 compared with 2016
primarily driven by additional income tax expense from U.S. Tax Reform, higher repositioning and
other charges, partially offset by higher segment profit across all segments, lower pension mark-to-
market expense and increased pension and other postretirement income.

BUSINESS OVERVIEW
Our consolidated results are principally impacted by:
• Changes in global economic growth rates and industry conditions and demand in our key end
markets;
• The impact of fluctuations in foreign currency exchange rates (in particular the Euro), relative to
the U.S. Dollar;
• The extent to which cost savings from productivity actions are able to offset or exceed the
impact of material and non-material inflation;
• The spin-offs of the Homes and Global Distribution business and the Transportation Systems
business into two stand-alone, publicly-traded companies and the associated separation costs;
• The impact of the pension discount rate and asset returns on pension expense, including mark-
to-market adjustments, and funding requirements; and
• The impact of U.S. Tax Reform.
Our 2019 areas of focus, most of which are applicable to each of our segments include:
• Driving profitable growth through research and development and technological excellence to
deliver innovative products that customers value, and through expansion and localization of our
footprint in high growth regions;
• Executing on our strategy to become a software-industrial company, which for us means
products and services that facilitate the connected plane, building and factory;
• Expanding margins by optimizing the Company’s cost structure through manufacturing and
administrative process improvements, repositioning, and other productivity actions;
• Executing disciplined, rigorous M&A and integration processes to deliver growth through
acquisitions;
• Controlling corporate costs, including costs incurred for asbestos and environmental matters,
pension and other post-retirement benefits; and
• Increasing availability of capital through strong cash flow conversion from effective working
capital management and proactively managing debt levels to enable the Company to smartly
deploy capital for strategic acquisitions, dividends, share repurchases and capital expenditures.

20
Review of Business Segments

% Change
2018 2017
Years Ended December 31, Versus Versus
2018 2017 2016 2017 2016
Aerospace Sales
Commercial Aviation Original
Equipment . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,833 $ 2,475 $ 2,525 14% (2)%
Commercial Aviation Aftermarket. . . . . . 5,373 5,103 4,796 5% 6%
Defense and Space . . . . . . . . . . . . . . . . . . 4,665 4,053 4,375 15% (7)%
Transportation Systems . . . . . . . . . . . . . . 2,622 3,148 3,055 (17)% 3%
Total Aerospace Sales . . . . . . . . . . . 15,493 14,779 14,751
Honeywell Building Technologies Sales
Homes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,928 4,482 4,405 (12)% 2%
Buildings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,370 5,295 5,085 1% 4%
Total Honeywell Building
Technologies Sales . . . . . . . . . . . . 9,298 9,777 9,490
Performance Materials and
Technologies Sales
UOP. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,845 2,753 2,469 3% 12%
Process Solutions . . . . . . . . . . . . . . . . . . . . 4,981 4,795 4,640 4% 3%
Advanced Materials . . . . . . . . . . . . . . . . . . 2,848 2,791 3,327 2% (16)%
Total Performance Materials and
Technologies Sales . . . . . . . . . . . . 10,674 10,339 10,436
Safety and Productivity Solutions Sales
Safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,278 2,169 2,075 5% 5%
Productivity Solutions. . . . . . . . . . . . . . . . . 4,059 3,470 2,550 17% 36%
Total Safety and Productivity
Solutions Sales . . . . . . . . . . . . . . . . 6,337 5,639 4,625
Net Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $41,802 $40,534 $39,302

Aerospace

2018 2017 Change 2016 Change

Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $15,493 $14,779 5% $14,751 —
Cost of products and services sold . . . . . . . . . . . . . . 10,837 10,320 10,820
Selling, general and administrative and other
expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,153 1,171 940
Segment profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,503 $ 3,288 7% $ 2,991 10%

2018 vs. 2017 2017 vs. 2016

Segment Segment
Factors Contributing to Year-Over-Year Change Sales Profit Sales Profit
Organic growth/ Operational segment profit . . . . . . . . . . . . . 9% 9% 2% 11%
Foreign currency translation . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1% 1% — —
Acquisitions, divestitures and other, net . . . . . . . . . . . . . . . . . (5)% (3)% (2)% (1)%
Total % Change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5% 7% — 10%

2018 compared with 2017

Aerospace sales increased due to organic sales growth, due to both volume and price, the
favorable impact of foreign currency translation, the impact of the adoption of the new revenue

21
recognition accounting standard (included within Acquisitions, divestitures and other, net in the table
above), offset by the spin-off of the Transportation Systems business on October 1, 2018.
• Commercial Original Equipment sales increased 14% (increased 11% organic) primarily due to
increased demand from business aviation, and air transport and regional original equipment
manufacturers (OEM), lower OEM incentives and the impact from the classification of
nonrecurring engineering and development funding resulting from the adoption of the new
revenue recognition accounting standard.
• Commercial Aftermarket sales increased 5% (increased 5% organic) primarily due to growth in
business aviation and air transport and regional.
• Defense and Space sales increased 15% (increased 15% organic) primarily driven by growth in
U.S. and international defense.
• Transportation Systems sales decreased 17% driven by divestiture impacts following its
October 1, 2018 spin-off. For the nine-month period prior to the spin-off, sales increased 7%
organic driven by higher volumes in light vehicle gas turbos and commercial vehicles.
Aerospace segment profit increased due to an increase in operational segment profit, the
favorable impact of foreign currency translation, and the impact on service programs from the adoption
of the new revenue recognition accounting standard, partially offset by the Transportation Systems
divestiture. The increase in operational segment profit was driven primarily by higher organic sales
volume, price, productivity net of inflation, and lower OEM incentives, partially offset by the spin-off of
the Transportation Systems business. Cost of products and services sold increased primarily due to
higher organic sales volume, the impact of foreign currency translation and inflation, partially offset by
the Transportation Systems divestiture.

2017 compared with 2016

Aerospace sales were flat due to organic sales growth, offset by the government services
business divestiture.
• Commercial Original Equipment sales decreased 2% (decreased 2% organic) primarily due to
lower shipments to business jet OEMs, partially offset by lower air transport and regional OEM
incentives.
• Commercial Aftermarket sales increased 6% (increased 6% organic) primarily driven by higher
repair and overhaul activities and increased spares shipments.
• Defense and Space sales decreased 7% (increased 1% organic) primarily due to the
government services business divestiture and lower Space sales, partially offset by growth in
U.S. defense.
• Transportation Systems sales increased 3% (increased 2% organic) primarily driven by higher
commercial vehicle volumes, gas turbo penetration and the favorable impact from foreign
currency translation, partially offset by lower diesel turbo volumes.
Aerospace segment profit increased due to an increase in operational segment profit, partially
offset by the government services business divestiture. The increase in operational segment profit was
driven primarily by productivity, net of inflation, including restructuring benefits, lower OEM incentives
and higher organic sales volume, partially offset by the government services business divestiture. Cost
of products and services sold decreased primarily driven by the government services business
divestiture and productivity, net of inflation, partially offset by higher organic sales volume.

22
Honeywell Building Technologies
2018 2017 Change 2016 Change
Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $9,298 $9,777 (5)% $9,490 3%
Cost of products and services sold. . . . . . . . . . . . . . . . . . . 6,066 6,430 6,152
Selling, general and administrative and other
expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,624 1,697 1,717
Segment profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,608 $1,650 (3)% $1,621 2%

2018 vs. 2017 2017 vs. 2016

Segment Segment
Factors Contributing to Year-Over-Year Change Sales Profit Sales Profit
Organic growth/ Operational segment profit . . . . . . . . . . . . . 3% 5% 2% 1%
Foreign currency translation . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1% 1% — 1%
Acquisitions and divestitures, net . . . . . . . . . . . . . . . . . . . . . . . (9)% (9)% 1% —
Total % Change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5)% (3)% 3% 2%

2018 compared with 2017

Honeywell Building Technologies sales decreased primarily due to the Homes divestiture partially
offset by an increase in organic growth, due to both volume and price, and the favorable impact of
foreign currency translation.
• Sales in Homes decreased 12% driven by divestiture impacts following its October 29, 2018
spin-off. For the period prior to the spin-off, sales increased 6% organic driven by both Products
and Distribution (ADI) businesses.
• Sales in Buildings increased 1% (flat organic) due to the organic growth in Building Solutions
and the favorable impact of foreign currency translation, offset by lower sales in Building
Management Systems and Building Products.
Honeywell Building Technologies segment profit decreased due to the Homes divestiture, partially
offset by an increase in operational segment profit and the favorable impact of foreign currency
translation. The increase in operational segment profit was primarily driven by price and productivity,
partially offset by inflation and higher sales of lower margin products. Cost of products and services
decreased due to the Homes divestiture, partially offset by higher organic sales.

2017 compared with 2016

Honeywell Building Technologies sales increased primarily due to an increase in organic sales,
price, and acquisitions.
• Sales in Homes increased 2% (increased 2% organic) due to an increase in organic sales
growth in Distribution, partially offset by lower sales volume in Products.
• Sales in Buildings increased 4% (increased 3% organic) due to organic sales growth in Building
Products, Building Management Systems, Building Solutions, and acquisitions.
Honeywell Building Technologies segment profit increased due to an increase in operational
segment profit and the favorable impact of foreign currency translation. The increase in operational
segment profit was primarily driven by productivity, net of inflation, and price, partially offset by higher
sales of lower margin products. Cost of products and services increased due to higher organic sales
and acquisitions.

23
Performance Materials and Technologies
2018 2017 Change 2016 Change
Net sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $10,674 $10,339 3% $10,436 (1)%
Cost of products and services sold . . . . . . . . . . . . . . . 6,948 6,764 6,978
Selling, general and administrative and other
expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,398 1,369 1,346
Segment profit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,328 $ 2,206 6% $ 2,112 4%

2018 vs. 2017 2017 vs. 2016

Segment Segment
Factors Contributing to Year-Over-Year Change Sales Profit Sales Profit
Organic growth/ Operational segment profit . . . . . . . . . . . . . 2% 5% 8% 10%
Foreign currency translation . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1% 1% — —
Acquisitions and divestitures, net . . . . . . . . . . . . . . . . . . . . . . . — — (9)% (6)%
Total % Change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3% 6% (1)% 4%

2018 compared with 2017

Performance Materials and Technologies sales increased primarily due to organic growth, mainly
due to price, and the favorable impact of foreign currency translation.
• UOP sales increased 3% (increased 3% organic) driven primarily by increases in engineering
revenues and increased catalyst volumes, partially offset by lower gas processing equipment
revenues.
• Process Solutions sales increased 4% (increased 3% organic) driven primarily by increases in
maintenance and migration services, increased revenues in projects, and higher field products
sales.
• Advanced Materials sales increased 2% (flat organic) driven primarily by increased volumes in
fluorine products, partially offset by lower other specialty products sales.
Performance Materials and Technologies segment profit increased primarily due to an increase in
operational segment profit and the favorable impact of foreign currency translation. The increase in
operational segment profit is primarily due to productivity and price, partially offset by inflation, higher
sales of lower margin products, and continued investments for growth. Cost of products and services
sold increased primarily due to inflation, higher sales of lower margin products, and foreign currency
translation, partially offset by productivity.

2017 compared with 2016

Performance Materials and Technologies sales decreased primarily due to divestitures, partially
offset by organic growth.
• UOP sales increased 12% (increased 12% organic) driven primarily by higher gas processing
project revenues, increased catalyst volumes, increased equipment sales, and increased
engineering revenues, partially offset by decreased licensing revenues.
• Process Solutions sales increased 3% (increased 3% organic) driven primarily by higher
revenue in smart energy, services, thermal solutions, and software, partially offset by lower field
products sales.
• Advanced Materials sales decreased 16% (increased 11% organic) driven primarily by the spin-
off of the former resins and chemicals business, partially offset by increased volumes in fluorine
products.
Performance Materials and Technologies segment profit increased primarily due to an increase in
operational segment profit, partially offset by divestitures. The increase in operational segment profit is
primarily due to productivity, net of inflation, higher organic sales volume and pricing, partially offset by
unfavorable product mix and continued investments for growth. Cost of products and services sold

24
decreased primarily due to divestitures and productivity, net of inflation, partially offset by higher
organic sales volumes.

Safety and Productivity Solutions

2018 2017 Change 2016 Change
Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $6,337 $5,639 12% $4,625 22%
Cost of products and services sold . . . . . . . . . . . . . . . . . . . . . . 4,205 3,714 3,001
Selling, general and administrative and other expenses . . 1,100 1,073 944
Segment profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,032 $ 852 21% $ 680 25%

2018 vs. 2017 2017 vs. 2016

Segment Segment
Factors Contributing to Year-Over-Year Change Sales Profit Sales Profit
Organic growth/ Operational segment profit . . . . . . . . . . . . . 11% 20% 5% 18%
Foreign currency translation . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1% 1% — —
Acquisitions and divestitures, net . . . . . . . . . . . . . . . . . . . . . . . — — 17% 7%
Total % Change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12% 21% 22% 25%

2018 compared with 2017

Safety and Productivity Solutions sales increased primarily due to organic sales growth, mainly
due to sales volume and a modest impact due to price.
• Sales in Safety increased 5% (increased 4% organic) due to increased sales volume in both
Industrial Safety and Retail.
• Sales in Productivity Solutions increased 17% (increased 16% organic) primarily due to
increased sales volume in Intelligrated, Sensing and IoT, and Productivity Products.
Safety and Productivity Solutions segment profit increased primarily due to an increase in
operational segment profit. The increase in operational segment profit was driven by higher sales
volume and price. Cost of products and services increased primarily due to higher organic sales.

2017 compared with 2016

Safety and Productivity Solutions sales increased primarily due to acquisitions and organic sales
volume.
• Sales in Safety increased 5% (increased 4% organic) due to increased sales volume in the
Industrial Safety business, higher distribution in the Retail business, and the favorable impact of
foreign currency translation.
• Sales in Productivity Solutions increased 36% (increased 6% organic) principally due to growth
from acquisitions (Intelligrated was acquired in August 2016).
Safety and Productivity Solutions segment profit increased due to an increase from operational
segment profit and acquisitions. The increase in operational segment profit is driven by higher
productivity, net of inflation, and sales volume. Cost of products and services increased primarily due
to acquisitions and higher sales volume offset by productivity, net of inflation.

Repositioning Charges
See Note 3 Repositioning and Other Charges of Notes to Consolidated Financial Statements for a
discussion of our repositioning actions and related charges incurred in 2018, 2017 and 2016. Cash
spending related to our repositioning actions was $285 million, $177 million and $228 million in 2018,
2017 and 2016, and was funded through operating cash flows. In 2019, we expect cash spending for
repositioning actions to be approximately $300 million and to be funded through operating cash flows.

25
LIQUIDITY AND CAPITAL RESOURCES
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, access to the public debt and equity markets and the ability to access non-U.S.
cash as a result of the U.S. Tax Reform. We continue to balance our cash and financing uses through
investment in our existing core businesses, acquisition activity, share repurchases and dividends.

Cash Flow Summary

Our cash flows from operating, investing and financing activities, as reflected in the Consolidated
Statement of Cash Flows, are summarized as follows:
Years Ended December 31,
2018 2017 2016
Cash provided by (used for):
Operating activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6,434 $ 5,966 $ 5,498
Investing activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,027 (3,574) (3,342)
Financing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5,032) (3,516) 346
Effect of exchange rate changes on cash . . . . . . . . . . . . . . . (201) 340 (114)
Net (decrease) increase in cash and cash equivalents . . . . . . . $ 2,228 $ (784) $ 2,388

2018 compared with 2017

Cash provided by operating activities increased by $468 million primarily due to a $239 million
increase in customer advances and deferred income and lower cash tax payments of $185 million.
Cash provided by investing activities increased by $4,601 million primarily due to a net
$4,302 million decrease in investments, primarily short-term marketable securities, and a $620 million
favorable change in settlements of foreign currency exchange contracts used as economic hedges on
certain non-functional currency denominated monetary assets and liabilities, partially offset by an
increase in cash paid for acquisitions of $453 million.
Cash used for financing activities increased by $1,516 million primarily due to an increase in net
debt payments of $2,622 million, an increase in net repurchases of common stock of $1,364 million
and an increase in cash dividends paid of $153 million, partially offset by net spin separation funding of
$2,622 million net of spin-off cash.

2017 compared with 2016

Cash provided by operating activities increased by $468 million primarily due to a $504 million
increase in segment profit and a $294 million favorable impact from working capital (favorable accounts
payable partially offset by inventory and accounts receivable), partially offset by higher cash tax
payments of $609 million.
Cash used for investing activities increased by $232 million primarily due to (i) a net $2,056 million
increase in investments, primarily short-term marketable securities, (ii) an increase of $500 million of
settlement payments of foreign currency exchange contracts used as economic hedges on certain non-
functional currency denominated monetary assets and liabilities and (iii) a decrease in proceeds from
the sales of businesses of $296 million (most significantly Honeywell Technology Solutions Inc. in
2016), partially offset by a decrease in cash paid for acquisitions of $2,491 million (most significantly
Intelligrated in 2016).
Cash provided by financing activities increased by $3,862 million primarily due to a decrease in the
net proceeds from debt issuances of $2,827 million, an increase in net repurchases of common stock
of $699 million and an increase in cash dividends paid of $204 million.

26
Liquidity
Each of our businesses is focused on implementing strategies to increase operating cash flows
through revenue growth, margin expansion and improved working capital turnover. Considering the
current economic environment in which each of the businesses operate and their business plans and
strategies, including the focus on growth, cost reduction and productivity initiatives, we believe that
cash balances and operating cash flow will continue to be our principal source of liquidity. In addition to
the available cash and operating cash flows, additional sources of liquidity include committed credit
lines, short-term debt from the commercial paper markets, long-term borrowings, and access to the
public debt and equity markets. To date, the Company has not experienced any limitations in our ability
to access these sources of liquidity.
We monitor the third-party depository institutions that hold our cash and cash equivalents on a
daily basis. Our emphasis is primarily safety of principal and secondarily maximizing yield of those
funds. We diversify our cash and cash equivalents among counterparties to minimize exposure to any
one of these entities.
A source of liquidity is our ability to issue short-term debt in the commercial paper market.
Commercial paper notes are sold at a discount or premium and have a maturity of not more than
365 days from date of issuance. Borrowings under the commercial paper program are available for
general corporate purposes as well as for financing acquisitions. The weighted average interest rate on
short-term borrowings and commercial paper outstanding as of December 31, 2018 was (0.31%) and
as of December 31, 2017 was (0.17%).
Our ability to access the commercial paper market, and the related cost of these borrowings, is
affected by the strength of our credit rating and market conditions. Our credit ratings are periodically
reviewed by the major independent debt-rating agencies. As of December 31, 2018, Standard and
Poor’s (S&P), Fitch, and Moody’s have ratings on our long-term debt of A, A and A2 and short-term
debt of A-1, F1 and P1. S&P, Fitch and Moody’s have Honeywell’s rating outlook as “stable.”
We also have a current shelf registration statement filed with the Securities and Exchange
Commission under which we may issue additional debt securities, common stock and preferred stock
that may be offered in one or more offerings on terms to be determined at the time of the offering. Net
proceeds of any offering would be used for general corporate purposes, including repayment of
existing indebtedness, share repurchases, capital expenditures and acquisitions.
See Note 2 Acquisitions and Divestitures and Note 13 Long-term Debt and Credit Agreements of
Notes to Consolidated Financial Statements for additional discussion of items impacting our liquidity.
In 2018, the Company repurchased $4,000 million of outstanding shares to offset the dilutive
impact of employee stock based compensation plans, including option exercises, restricted unit vesting
and matching contributions under our savings plans, and to reduce share count when attractive
opportunities arise. In December 2017, the Board of Directors authorized the repurchase of up to a
total of $8 billion of Honeywell common stock, of which $3.7 billion remained available as of
December 31, 2018 for additional share repurchases. This authorization included amounts remaining
under and replaced the previously approved share repurchase program. Honeywell presently expects
to repurchase outstanding shares from time to time to offset the dilutive impact of employee stock
based compensation plans, including option exercises, restricted unit vesting and matching
contributions under our savings plans. We will continue to seek to reduce share count via share
repurchases as and when attractive opportunities arise.
In addition to our normal operating cash requirements, our principal future cash requirements will
be to fund capital expenditures, share repurchases, dividends, strategic acquisitions and debt
repayments.
Specifically, we expect our primary cash requirements in 2019 to be as follows:
• Capital expenditures—we expect to spend approximately $800 million for capital expenditures in
2019 primarily for growth, production and capacity expansion, cost reduction, maintenance, and
replacement.

27
 • Share repurchases—under the Company’s share repurchase program, $3.7 billion is available
as of December 31, 2018 for additional share repurchases. Honeywell presently expects to
repurchase outstanding shares from time to time to offset the dilutive impact of employee stock-
based compensation plans, including option exercises, restricted unit vesting and matching
contributions under our savings plans. Additionally, we will seek to reduce share count via share
repurchases as and when attractive opportunities arise. The amount and timing of future
repurchases may vary depending on market conditions and our level of operating, financing and
other investing activities.
• Dividends—we increased our quarterly dividend rate by 10% to $0.82 per share of common
stock effective with the fourth quarter 2018 dividend. The Company intends to continue to pay
quarterly dividends in 2019.
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 businesses 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 2018, we realized
$2,622 million in net cash proceeds from the spin-off of non-strategic businesses.
Based on past performance and current expectations, we believe that our operating cash flows will
be sufficient to meet our future operating cash needs. Our available cash, committed credit lines and
access to the public debt and equity markets, provide additional sources of short-term and long-term
liquidity to fund current operations, debt maturities, and future investment opportunities.

Contractual Obligations and Probable Liability Payments

Following is a summary of our significant contractual obligations and probable liability payments at
December 31, 2018:
Payments by Period
2020- 2022-
Total(6)(7) 2019 2021 2023 Thereafter
Long-term debt, including capitalized
leases(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $12,628 $2,872 $3,761 $1,778 $4,217
Interest payments on long-term debt,
including capitalized leases . . . . . . . . . . . . 3,049 313 519 389 1,828
Minimum operating lease payments . . . . . . 856 210 310 189 147
Purchase obligations(2) . . . . . . . . . . . . . . . . . . . 2,002 1,146 578 250 28
Estimated environmental liability
payments(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . 755 175 355 172 53
Asbestos related liability payments(4) . . . . . 2,514 245 786 710 773
Asbestos insurance recoveries(5) . . . . . . . . . (477) (40) (114) (84) (239)
$21,327 $4,921 $6,195 $3,404 $6,807

(1) Assumes all long-term debt is outstanding until scheduled maturity.

(2) Purchase obligations are entered into with various vendors in the normal course of business and
are consistent with our expected requirements.
(3) The payment amounts in the table only reflect the environmental liabilities which are probable and
reasonably estimable as of December 31, 2018.
(4) These amounts are estimates of asbestos related cash payments for NARCO and Bendix based
on our asbestos related liabilities which are probable and reasonably estimable as of December 31,
2018. See Asbestos Matters in Note 20 Commitments and Contingencies of Notes to Consolidated
Financial Statements for additional information.

28
(5) These amounts represent our insurance recoveries that are deemed probable for asbestos related
liabilities as of December 31, 2018. See Asbestos Matters in Note 20 Commitments and
Contingencies of Notes to Consolidated Financial Statements for additional information.
(6) The table excludes tax liability payments, including those for unrecognized tax benefits. See Note 5
Income Taxes of Notes to Consolidated Financial Statements for additional information.
(7) The table excludes expected proceeds from the indemnification and reimbursement agreements
entered into with Garrett and Resideo. See Note 20 Commitments and Contingencies of Notes to
Consolidated Financial Statements for additional information.

Environmental Matters
Accruals for environmental matters deemed probable and reasonably estimable were $395 million,
$287 million and $195 million in 2018, 2017 and 2016. In addition, in 2018, 2017 and 2016 we incurred
operating costs for ongoing businesses of approximately $95 million, $82 million and $83 million
relating to compliance with environmental regulations.
Spending related to known environmental matters was $218 million, $212 million and $228 million
in 2018, 2017 and 2016 and is estimated to be approximately $175 million in 2019. We expect to fund
expenditures for these environmental matters from operating cash flow. The timing of cash
expenditures depends on several factors, including the timing of litigation and settlements of
remediation liability, personal injury and property damage claims, regulatory approval of cleanup
projects, execution timeframe of projects, remedial techniques to be utilized and agreement with other
parties.
Reimbursements from Resideo for spending for environmental matters at certain sites as defined
in the indemnification and reimbursement agreement was $25 million in 2018 and is expected to be
$140 million in 2019. Such reimbursements will offset operating cash outflows incurred by the
Company.
See Note 20 Commitments and Contingencies of Notes to Consolidated Financial Statements for
further discussion of our environmental matters and the indemnification and reimbursement agreement
entered into with Resideo.

Financial Instruments
The following table illustrates the potential change in fair value for interest rate sensitive
instruments based on a hypothetical immediate one percentage point increase in interest rates across
all maturities and the potential change in fair value for foreign exchange rate sensitive instruments
based on a 10% weakening of the U.S. Dollar versus local currency exchange rates across all
maturities at December 31, 2018 and 2017.
Estimated
Increase
Face or (Decrease)
Notional Carrying Fair in Fair
Amount Value(1) Value(1) Value(2)
December 31, 2018
Interest Rate Sensitive Instruments
Long-term debt (including current maturities) . . . . . . . . . $12,628 $(12,628) $(13,133) $(654)
Interest rate swap agreements . . . . . . . . . . . . . . . . . . . . . . 2,600 (45) (45) (83)
Foreign Exchange Rate Sensitive Instruments
Foreign currency exchange contracts(3) . . . . . . . . . . . . . . 14,995 115 115 (742)
Cross currency swap agreements . . . . . . . . . . . . . . . . . . . 1,200 32 32 (117)
December 31, 2017
Interest Rate Sensitive Instruments
Long-term debt (including current maturities) . . . . . . . . . $13,924 $(13,924) $(14,695) $(782)
Interest rate swap agreements . . . . . . . . . . . . . . . . . . . . . . 2,600 (8) (8) (233)
Foreign Exchange Rate Sensitive Instruments
Foreign currency exchange contracts(3) . . . . . . . . . . . . . . 9,273 (53) (53) (58)

29
(1) Asset or (liability).
(2) A hypothetical immediate one percentage point decrease in interest rates across all maturities and
a potential change in fair value of foreign exchange rate sensitive instruments based on a 10%
strengthening of the U.S. dollar versus local currency exchange rates across all maturities will
result in a change in fair value approximately equal to the inverse of the amount disclosed in the
table.
(3) Changes in the fair value of foreign currency exchange contracts are offset by changes in the fair
value, cash flows, or net investments of underlying hedged foreign currency transactions or foreign
operations.
See Note 15 Financial Instruments and Fair Value Measures of Notes to Consolidated Financial
Statements for further discussion on the agreements.

CRITICAL ACCOUNTING POLICIES

The preparation of our consolidated financial statements in accordance with generally accepted
accounting principles is based on the selection and application of accounting policies that require us to
make significant estimates and assumptions about the effects of matters that are inherently uncertain.
We consider the accounting policies discussed below to be critical to the understanding of our financial
statements. Actual results could differ from our estimates and assumptions, and any such differences
could be material to our consolidated financial statements.
Contingent Liabilities—We are subject to a number of lawsuits, investigations and claims (some
of which involve substantial dollar amounts) that arise out of the conduct of our global business
operations or those of previously owned entities, including matters relating to commercial transactions,
government contracts, product liability (including asbestos), prior acquisitions and divestitures,
employee benefit plans, intellectual property, legal and environmental, health and safety matters.
We continually assess the likelihood of any adverse judgments or outcomes to our contingencies, as
well as potential amounts or ranges of probable losses, and recognize a liability, if any, for these
contingencies based on a thorough analysis of each matter with the assistance of outside legal counsel
and, if applicable, other experts. Such analysis includes making judgments concerning matters such as
the costs associated with environmental matters, the outcome of negotiations, the number and cost of
pending and future asbestos claims, and the impact of evidentiary requirements. Because most
contingencies are resolved over long periods of time, liabilities may change in the future due to new
developments (including new discovery of facts, changes in legislation and outcomes of similar cases
through the judicial system), changes in assumptions or changes in our settlement strategy. See
Note 20 Commitments and Contingencies of Notes to Consolidated Financial Statements for a
discussion of management’s judgment applied in the recognition and measurement of our
environmental and asbestos liabilities which represent our most significant contingencies.
Asbestos Related Liabilities and Insurance Recoveries, and Indemnification Receivables—
Honeywell’s involvement in asbestos related personal injury actions relates to two predecessor
companies. Regarding North American Refractories Company (“NARCO”) asbestos related claims, we
accrued for pending claims based on terms and conditions in agreements with NARCO, its former
parent company, and certain asbestos claimants, and an estimate of the unsettled claims pending as
of the time NARCO filed for bankruptcy protection. We also accrued for the estimated value of future
NARCO asbestos related claims expected to be asserted against the NARCO Trust. The estimate of
future NARCO claims was prepared in 2002, in the same year NARCO filed for bankruptcy protection,
using NARCO tort system litigation experience based on a commonly accepted methodology used by
numerous bankruptcy courts addressing 524(g) trusts. Accordingly, the estimated value of future
NARCO asbestos claims was prepared before there was data on claims filings and payment rates in
the NARCO Trust under the Trust Distribution Procedures and prepared when the stay of all NARCO
asbestos claims was in effect (which remained in effect until NARCO emerged from Bankruptcy
protection). Some critical assumptions underlying this commonly accepted methodology included
claims filing rates, disease criteria and payment values contained in the Trust Distribution Procedures,

30
estimated approval rates of claims submitted to the NARCO Trust and epidemiological studies
estimating disease instances. This estimate 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. Given the Trust’s lack of
sufficiently reliable claims data since NARCO emerged from bankruptcy protection, it is not yet
possible to update our estimated future claim costs based on actual NARCO Trust experience.
Regarding Bendix Friction Materials (“Bendix”) asbestos related claims, we accrued for the estimated
value of pending claims using average resolution values for the previous five years. We also accrued
for the estimated value of future claims related to Bendix over the full term of epidemiological
projections through 2059 based on historic and anticipated claims filing experience and dismissal rates,
disease classifications, and average resolution values in the tort system for the previous five years.

In connection with the recognition of liabilities for asbestos related matters, we record asbestos
related insurance recoveries that are deemed probable. In assessing the probability of insurance
recovery, we make 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. 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. Projecting
future events is subject to various uncertainties that could cause the insurance recovery on asbestos
related liabilities to be higher or lower than that projected and recorded. Given the inherent uncertainty
in making future projections, we reevaluate our projections concerning our probable insurance
recoveries considering any changes to the projected liability, our recovery experience or other relevant
factors that may impact future insurance recoveries.

Additionally, in conjunction with the Garrett spin-off, the Company entered into an indemnification
and reimbursement agreement with a Garrett subsidiary, pursuant to which Garrett’s subsidiary has an
obligation to make cash payments to Honeywell as reimbursement for asbestos liabilities. Accordingly,
the Company has recorded an indemnification receivable and we monitor the recoverability of such
receivable, which is subject to terms of applicable credit agreements of Garrett and its general ability to
pay.

See Note 20 Commitments and Contingencies of Notes to Consolidated Financial Statements for
a discussion of management’s judgments applied in the recognition and measurement of our asbestos-
related liabilities and related insurance recoveries, and additional details regarding the indemnification
and reimbursement agreement.

Defined Benefit Pension Plans—We sponsor both funded and unfunded U.S. and non-U.S.
defined benefit pension plans. For financial reporting purposes, net periodic pension (income) expense
is calculated annually based upon a number of actuarial assumptions, including a discount rate for plan
obligations and an expected long-term rate of return on plan assets. Changes in the discount rate and
expected long-term rate of return on plan assets could materially affect the annual pension (income)
expense amount. Annual pension (income) expense is comprised of service and interest cost,
assumed return on plan assets, prior service amortization (Pension Ongoing (Income) Expense) and a
potential mark-to-market adjustment (MTM Adjustment).

The key assumptions used in developing our 2018, 2017 and 2016 net periodic pension (income)
expense for our U.S. plans included the following:
2018 2017 2016
Discount Rate:
Projected benefit obligation . . . . . . . . . . . . . . . . . . . . . . 3.68% 4.20% 4.46%
Service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.77% 4.42% 4.69%
Interest cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.27% 3.49% 3.59%
Assets:
Expected rate of return. . . . . . . . . . . . . . . . . . . . . . . . . . 7.75% 7.75% 7.75%
Actual rate of return. . . . . . . . . . . . . . . . . . . . . . . . . . . . . -1.8% 20.5% 9.7%
Actual 10 year average annual compounded rate
of return. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.0% 7.4% 6.4%

31
 The MTM Adjustment represents the recognition of net actuarial gains or losses in excess of 10%
of the greater of the fair value of plan assets or the plans’ projected benefit obligation (the corridor).
Net actuarial gains and losses occur when the actual experience differs from any of the various
assumptions used to value our pension plans or when assumptions change. The primary factors
contributing to actuarial gains and losses are changes in the discount rate used to value pension
obligations as of the measurement date each year and the difference between expected and actual
returns on plan assets. The mark-to-market accounting method results in the potential for volatile and
difficult to forecast MTM Adjustments. MTM charges were $37 million, $87 million and $273 million in
2018, 2017 and 2016.
We determine the expected long-term rate of return on plan assets utilizing historical plan asset
returns over varying long-term periods combined with our expectations of future market conditions and
asset mix considerations (see Note 21 Pension and Other Postretirement Benefits of Notes to
Consolidated Financial Statements for details on the actual various asset classes and targeted asset
allocation percentages for our pension plans). We plan to use an expected rate of return on plan
assets of 6.75% for 2019 down from 7.75% for 2018 reflecting a re-balancing of assets to more fixed
income during 2018.
The discount rate reflects the market rate on December 31 (measurement date) for high-quality
fixed-income investments with maturities corresponding to our benefit obligations and is subject to
change each year. The discount rate can be volatile from year to year as it is determined based upon
prevailing interest rates as of the measurement date. We used a 4.35% discount rate to determine
benefit obligations as of December 31, 2018, reflecting the increase in the market interest rate
environment since the prior year-end.
In addition to the potential for MTM Adjustments, changes in our expected rate of return on plan
assets and discount rate resulting from economic events also affects future pension ongoing (income)
expense. The following table highlights the sensitivity of our U.S. pension obligations and ongoing
(income) expense to changes in these assumptions, assuming all other assumptions remain constant.
These estimates exclude any potential MTM Adjustment:

Impact on 2019
Pension Ongoing
Change in Assumption Expense Impact on PBO
0.25 percentage point decrease in discount rate . . Decrease $20 million Increase $420 million
0.25 percentage point increase in discount rate . . . Increase $20 million Decrease $410 million
0.25 percentage point decrease in expected rate
of return on assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . Increase $41 million —
0.25 percentage point increase in expected rate
of return on assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . Decrease $41 million —

Pension ongoing income for our world-wide pension plans is expected to be approximately
$590 million in 2019 compared with pension ongoing income of $992 million in 2018. The expected
decrease in pension income is primarily due to lower actual asset returns in 2018 and a lower expected
return on asset assumption for 2019 in our U.S. and UK plans. Also, if required, an MTM Adjustment
will be recorded in the fourth quarter of 2019 in accordance with our pension accounting method as
previously described. It is difficult to reliably forecast or predict whether there will be a MTM
Adjustment in 2019, and if one is required, what the magnitude of such adjustment will be. MTM
Adjustments are primarily driven by events and circumstances beyond the control of the Company
such as changes in interest rates and the performance of the financial markets.

Long-Lived Assets (including Tangible and Finite-Lived Intangible Assets)—The determina-

tion of useful lives (for depreciation/amortization purposes) and whether or not tangible and intangible
assets are impaired involves the use of accounting estimates and assumptions, changes in which
could materially impact our financial condition or operating performance if actual results differ from
such estimates and assumptions. We evaluate the recoverability of the carrying amount of our long-
lived assets whenever events or changes in circumstances indicate that the carrying amount of a long-
lived asset group may not be fully recoverable. The principal factors in considering when to perform an
impairment review are as follows:

32
 • Significant under-performance (i.e., declines in sales, earnings or cash flows) of a business or
product line in relation to expectations;
• Annual operating plans or strategic plan outlook that indicate an unfavorable trend in operating
performance of a business or product line;
• Significant negative industry or economic trends; or
• Significant changes or planned changes in our use of the assets.
Once it is determined that an impairment review is necessary, recoverability of assets is measured
by comparing the carrying amount of the asset grouping to the estimated future undiscounted cash
flows. If the carrying amount exceeds the estimated future undiscounted cash flows, the asset grouping
is considered to be impaired. The impairment is then measured as the difference between the carrying
amount of the asset grouping and its fair value. We endeavor to utilize the best information available to
measure fair value, which is usually either market prices (if available), level 1 or level 2 of the fair value
hierarchy, or an estimate of the future discounted cash flow, level 3 of the fair value hierarchy. The key
estimates in our discounted cash flow analysis include assumptions as to expected industry and
business growth rates, sales volume, selling prices and costs, cash flows, and the discount rate
selected. These estimates are subject to changes in the economic environment, including market
interest rates and expected volatility. Management believes the estimates of future cash flows and fair
values are reasonable; however, changes in estimates due to variance from assumptions could
materially affect the valuations.
Goodwill and Indefinite-Lived Intangible Assets Impairment Testing—Goodwill and intangible
assets deemed to have indefinite lives are not amortized, but are subject to annual, or more frequent if
necessary, impairment testing. In testing goodwill and indefinite-lived intangible assets, the fair value is
estimated utilizing a discounted cash flow approach utilizing cash flow forecasts in our five year
strategic and annual operating plans adjusted for terminal value assumptions. These impairment tests
involve the use of accounting estimates and assumptions, changes in which could materially impact
our financial condition or operating performance if actual results differ from such estimates and
assumptions. To address this uncertainty we perform sensitivity analysis on key estimates and
assumptions.
Income Taxes—On a recurring basis, we assess the need for a valuation allowance against our
deferred tax assets by considering all available positive and negative evidence, such as past operating
results, projections of future taxable income, enacted tax law changes and the feasibility and impact of
tax planning initiatives. Our projections of future taxable income include a number of estimates and
assumptions regarding our volume, pricing and costs, as well as the timing and amount of reversals of
taxable temporary differences.
For further discussion of additional income tax policies and provision items recorded in regards to
U.S Tax Reform, see Note 1 Summary of Significant Accounting Policies and Note 5 Income Taxes of
Notes to Consolidated Financial Statements.
Sales Recognition on Long-Term Contracts—We recognize sales for long-term contracts with
performance obligations satisfied over time using either an input or output method. We recognize
revenue over time as we perform on these contracts based on the continuous transfer of control to the
customer. With control transferring over time, revenue is recognized based on the extent of progress
towards completion of the performance obligation. We generally use the cost-to-cost input method of
progress for our contracts because it best depicts the transfer of control to the customer that occurs as
we incur costs. Under the cost-to-cost method, the extent of progress towards completion is measured
based on the proportion of costs incurred to date to the total estimated costs at completion of the
performance obligation. Due to the nature of the work required to be performed on many of our
performance obligations, the estimation of total revenue and cost at completion requires judgment.
Contract revenues are largely determined by negotiated contract prices and quantities, modified by our
assumptions regarding contract options, change orders, incentive and award provisions associated
with technical performance and price adjustment clauses (such as inflation or index-based clauses).
Cost estimates are largely based on negotiated or estimated purchase contract terms, historical
performance trends and other economic projections. Significant factors that influence these estimates

33
include inflationary trends, technical and schedule risk, internal and subcontractor performance trends,
business volume assumptions, asset utilization, and anticipated labor agreements. Revenue and cost
estimates are regularly monitored and revised based on changes in circumstances. Impacts from
changes in estimates of net sales and cost of sales are recognized on a cumulative catch-up basis,
which recognizes in the current period the cumulative effect of the changes on current and prior
periods based on a performance obligation’s percentage of completion. Anticipated losses on long-
term contracts are recognized when such losses become evident. We maintain financial controls over
the customer qualification, contract pricing and estimation processes to reduce the risk of contract
losses.

34
OTHER MATTERS
Litigation
See Note 20 Commitments and Contingencies of Notes to Consolidated Financial Statements for
a discussion of environmental, asbestos and other litigation matters.

Recent Accounting Pronouncements

See Note 1 Summary of Significant Accounting Policies of Notes to Consolidated Financial
Statements for a discussion of recent accounting pronouncements.

Item 7A. Quantitative and Qualitative Disclosures About Market Risks

Information relating to market risks is included in Item 7. Management’s Discussion and Analysis
of Financial Condition and Results of Operations under the caption “Financial Instruments”.

35
Item 8. Financial Statements and Supplementary Data
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED STATEMENT OF OPERATIONS

Years Ended December 31,

2018 2017 2016
(Dollars in millions,
except per share amounts)

Product sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $32,848 $32,317 $31,362

Service sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,954 8,217 7,940
Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41,802 40,534 39,302
Costs, expenses and other
Cost of products sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,634 23,176 22,612
Cost of services sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,412 4,968 5,065
29,046 28,144 27,677
Selling, general and administrative expenses . . . . . . . . . . . . . . . . . . . 6,051 6,087 5,574
Other (income) expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,149) (963) (739)
Interest and other financial charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . 367 316 338
34,315 33,584 32,850
Income before taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,487 6,950 6,452
Tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 659 5,362 1,603
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,828 1,588 4,849
Less: Net income attributable to the noncontrolling interest . . . . . . . . . . 63 43 37
Net income attributable to Honeywell . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6,765 $ 1,545 $ 4,812
Earnings per share of common stock—basic. . . . . . . . . . . . . . . . . . . . . . . . $ 9.10 $ 2.03 $ 6.30
Earnings per share of common stock—assuming dilution . . . . . . . . . . . . $ 8.98 $ 2.00 $ 6.21

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

36
 HONEYWELL INTERNATIONAL INC.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Years Ended December 31,

2018 2017 2016
(Dollars in millions)

Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6,828 $1,588 $4,849

Other comprehensive income (loss), net of tax
Foreign exchange translation adjustment . . . . . . . . . . . . . . . . . . . . . . . . . . (685) (37) (52)
Actuarial gains (losses) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (602) 753 (443)
Prior service (cost) credit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 (59) (18)
Prior service credit recognized during year . . . . . . . . . . . . . . . . . . . . . . (74) (70) (78)
Actuarial losses recognized during year . . . . . . . . . . . . . . . . . . . . . . . . . 35 83 236
Settlements and curtailments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 19 (5)
Foreign exchange translation and other . . . . . . . . . . . . . . . . . . . . . . . . . 31 (49) 73
Pensions and other postretirement benefit adjustments . . . . . . . . . . . . (606) 677 (235)
Effective portion of cash flow hedges recognized in other
comprehensive income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89 (101) 103
Less: reclassification adjustment for (losses) gains included in
net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 60 (5)
Changes in fair value of effective cash flow hedges . . . . . . . . . . . . . . . 85 (161) 108
Other comprehensive income (loss), net of tax . . . . . . . . . . . . . . . . . . . . . . (1,206) 479 (179)
Comprehensive income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,622 2,067 4,670
Less: Comprehensive income attributable to the noncontrolling
interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 51 29
Comprehensive income attributable to Honeywell . . . . . . . . . . . . . . . . . . . . . . $ 5,569 $2,016 $4,641

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

37
 HONEYWELL INTERNATIONAL INC.
CONSOLIDATED BALANCE SHEET

December 31,
2018 2017
(Dollars in millions)
ASSETS
Current assets:
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 9,287 $ 7,059
Short-term investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,623 3,758
Accounts receivable—net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,508 8,866
Inventories. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,326 4,613
Other current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,618 1,706
Total current assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,362 26,002
Investments and long-term receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 742 667
Property, plant and equipment—net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,296 5,926
Goodwill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,546 18,277
Other intangible assets—net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,139 4,496
Insurance recoveries for asbestos related liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . 437 479
Deferred income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 382 251
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,869 3,372
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 57,773 $ 59,470
LIABILITIES
Current liabilities:
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,607 $ 6,584
Commercial paper and other short-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . 3,586 3,958
Current maturities of long-term debt. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,872 1,351
Accrued liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,859 6,968
Total current liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,924 18,861
Long-term debt. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,756 12,573
Deferred income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,713 2,664
Postretirement benefit obligations other than pensions . . . . . . . . . . . . . . . . . . . . . . . 344 512
Asbestos related liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,269 2,260
Other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,402 5,930

Redeemable noncontrolling interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 5

SHAREOWNERS’ EQUITY
Capital—common stock issued. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 958 958
—additional paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,452 6,212
Common stock held in treasury, at cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (19,771) (15,914)
Accumulated other comprehensive income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,437) (2,235)
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33,978 27,481
Total Honeywell shareowners’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,180 16,502
Noncontrolling interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178 163
Total shareowners’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,358 16,665
Total liabilities, redeemable noncontrolling interest and shareowners’
equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 57,773 $ 59,470

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

38
 HONEYWELL INTERNATIONAL INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
Years Ended December 31,
2018 2017 2016
(Dollars in millions)
Cash flows from operating activities:
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6,828 $ 1,588 $ 4,849
Less: Net income attributable to the noncontrolling interest . . . . . . . . . . . . . . . . . . . . . . . . . . 63 43 37
Net income attributable to Honeywell . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,765 1,545 4,812
Adjustments to reconcile net income attributable to Honeywell to net cash provided
by operating activities:
Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 721 717 726
Amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 395 398 304
(Gain) loss on sale of non-strategic businesses and assets . . . . . . . . . . . . . . . . . . . . . — 7 (178)
Repositioning and other charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,091 973 690
Net payments for repositioning and other charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (652) (628) (625)
Pension and other postretirement (income) expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . (987) (647) (360)
Pension and other postretirement benefit payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (80) (106) (143)
Stock compensation expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175 176 184
Deferred income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (586) 2,452 78
Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (694) 1,642 194
Changes in assets and liabilities, net of the effects of acquisitions and
divestitures:
Accounts receivable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (236) (682) (547)
Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (503) (259) (18)
Other current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 218 (568) (106)
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 733 924 254
Accrued liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74 22 233
Net cash provided by operating activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,434 5,966 5,498
Cash flows from investing activities:
Expenditures for property, plant and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (828) (1,031) (1,095)
Proceeds from disposals of property, plant and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . 15 86 21
Increase in investments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4,059) (6,743) (3,954)
Decrease in investments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,032 4,414 3,681
Cash paid for acquisitions, net of cash acquired . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (535) (82) (2,573)
Proceeds from sales of businesses, net of fees paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — 296
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 402 (218) 282
Net cash provided by (used for) investing activities . . . . . . . . . . . . . . . . . . . . . . . 1,027 (3,574) (3,342)
Cash flows from financing activities:
Proceeds from issuance of commercial paper and other short-term borrowings . . . . . . . 23,891 13,701 18,997
Payments of commercial paper and other short-term borrowings. . . . . . . . . . . . . . . . . . . . . (24,095) (13,532) (21,461)
Proceeds from issuance of common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 267 520 409
Proceeds from issuance of long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 1,238 9,245
Payments of long-term debt. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,330) (292) (2,839)
Repurchases of common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4,000) (2,889) (2,079)
Cash dividends paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,272) (2,119) (1,915)
Payments to purchase the noncontrolling interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — (238)
Pre-separation funding. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,801 — 269
Pre-spin borrowing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — 38
Spin-off cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (179) — (38)
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (142) (143) (42)
Net cash (used for) provided by financing activities. . . . . . . . . . . . . . . . . . . . . . . (5,032) (3,516) 346
Effect of foreign exchange rate changes on cash and cash equivalents . . . . . . . . . . . . . . . . . . (201) 340 (114)
Net increase (decrease) in cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,228 (784) 2,388
Cash and cash equivalents at beginning of period. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,059 7,843 5,455
Cash and cash equivalents at end of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 9,287 $ 7,059 $ 7,843

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

39
 HONEYWELL INTERNATIONAL INC.
CONSOLIDATED STATEMENT OF SHAREOWNERS’ EQUITY
Years Ended December 31,
2018 2017 2016
Shares $ Shares $ Shares $
(in millions)
Common stock, par value. . . . . . . . . . . . . . . . . . . . . . . . 957.6 958 957.6 958 957.6 958
Additional paid-in capital
Beginning balance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,212 5,781 5,377
Issued for employee savings and option plans. . 65 255 183
Stock-based compensation expense . . . . . . . . . . . 175 176 171
Other owner changes . . . . . . . . . . . . . . . . . . . . . . . . . — — 50
Ending balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,452 6,212 5,781
Treasury stock
Beginning balance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (206.7) (15,914) (196.8) (13,366) (187.2) (11,664)
Reacquired stock or repurchases of common
stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (26.5) (4,000) (20.5) (2,889) (19.3) (2,079)
Issued for employee savings and option plans. . 5.2 143 10.6 341 9.7 377
Ending balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (228.0) (19,771) (206.7) (15,914) (196.8) (13,366)
Retained earnings
Beginning balance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27,481 28,046 25,480
Adoption of new accounting standards . . . . . . . . . 264 — —
Net income attributable to Honeywell. . . . . . . . . . . 6,765 1,545 4,812
Dividends on common stock . . . . . . . . . . . . . . . . . . . (2,279) (2,101) (1,883)
Spin-offs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,749 (9) (362)
Redemption value adjustment. . . . . . . . . . . . . . . . . . (2) — (1)
Ending balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33,978 27,481 28,046
Accumulated other comprehensive income
(loss)
Beginning balance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,235) (2,714) (2,535)
Foreign exchange translation adjustment . . . . . . . (728) (37) (52)
Pensions and other postretirement benefit
adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (559) 677 (235)
Changes in fair value of effective cash flow
hedges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85 (161) 108
Ending balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,437) (2,235) (2,714)
Noncontrolling interest
Beginning balance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163 178 135
Acquisitions, divestitures, and other . . . . . . . . . . . . (12) (11) 31
Net income attributable to noncontrolling
interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 43 37
Foreign exchange translation adjustment . . . . . . . (10) 8 (8)
Dividends paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (26) (55) (17)
Ending balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178 163 178
Total shareowners’ equity. . . . . . . . . . . . . . . . . . . . . . . . 729.6 18,358 750.9 16,665 760.8 18,883

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

40
 HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in millions, except per share amounts)

Note 1. Summary of Significant Accounting Policies

Accounting Principles—The financial statements and accompanying notes are prepared in
accordance with accounting principles generally accepted in the United States of America. The
following is a description of Honeywell’s significant accounting policies.
Principles of Consolidation—The consolidated financial statements include the accounts of
Honeywell International Inc. and all of its subsidiaries and entities in which a controlling interest is
maintained. Our consolidation policy requires equity investments that we exercise significant influence
over but do not control the investee and are not the primary beneficiary of the investee’s activities to be
accounted for using the equity method. Investments through which we are not able to exercise
significant influence over the investee and which we do not have readily determinable fair values are
accounted for under the cost method. All intercompany transactions and balances are eliminated in
consolidation.
Property, Plant and Equipment—Property, plant and equipment are recorded at cost, including
any asset retirement obligations, less accumulated depreciation. For financial reporting, the straight-
line method of depreciation is used over the estimated useful lives of 10 to 50 years for buildings and
improvements and 2 to 16 years for machinery and equipment. Recognition of the fair value of
obligations associated with the retirement of tangible long-lived assets is required when there is a legal
obligation to incur such costs. Upon initial recognition of a liability, the cost is capitalized as part of the
related long-lived asset and depreciated over the corresponding asset’s useful life.
Goodwill and Indefinite-Lived Intangible Assets—Goodwill and indefinite-lived intangible
assets are subject to impairment testing annually as of March 31, and whenever events or changes
in circumstances indicate that the carrying amount may not be fully recoverable. This testing compares
carrying values to fair values and, when appropriate, the carrying value of these assets is reduced to
fair value. We completed our annual goodwill impairment test as of March 31, 2018 and determined
that there was no impairment as of that date.
Other Intangible Assets with Determinable Lives—Other intangible assets with determinable
lives consist of customer lists, technology, patents and trademarks and other intangibles and are
amortized over their estimated useful lives, ranging from 2 to 24 years.
Sales Recognition—Product and service sales are recognized when or as we transfer control of
the promised products or services to our customer. Revenue is measured as the amount of
consideration we expect to receive in exchange for transferring goods or providing services. Service
sales, principally representing repair, maintenance and engineering activities are recognized over the
contractual period or as services are rendered. Sales under long-term contracts with performance
obligations satisfied over time are recognized using either an input or output method. We recognize
revenue over time as we perform on these contracts because of the continuous transfer of control to
the customer. With control transferring over time, revenue is recognized based on the extent of
progress towards completion of the performance obligation. We generally use the cost-to-cost input
method of progress for our contracts because it best depicts the transfer of control to the customer that
occurs as we incur costs. Under the cost-to-cost method, the extent of progress towards completion is
measured based on the proportion of costs incurred to date to the total estimated costs at completion
of the performance obligation. We review our cost estimates on significant contracts on a periodic
basis, or when circumstances change and warrant a modification to a previous estimate. Cost
estimates are largely based on negotiated or estimated purchase contract terms, historical
performance trends and other economic projections. Significant factors that influence these estimates
include inflationary trends, technical and schedule risk, internal and subcontractor performance trends,
business volume assumptions, asset utilization, and anticipated labor agreements. Provisions for
anticipated losses on long-term contracts are recorded in full when such losses become evident, to the
extent required.

41
 HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)

The customer funding for costs incurred for nonrecurring engineering and development activities of
our products under agreements with commercial customers is deferred and subsequently recognized
as revenue as products are delivered to the customers. Additionally, expenses incurred, up to the
customer agreed funded amount, are deferred as an asset and recognized as cost of sales when
products are delivered to the customer. The deferred customer funding and costs result in recognition
of deferred costs (asset) and deferred revenue (liability) on our Consolidated Balance Sheet.
Revenues for our mechanical service programs are recognized as performance obligations are
satisfied over time, with recognition reflecting a series of distinct services using the output method.
The terms of a contract or the historical business practice can give rise to variable consideration
due to, but not limited to, cash-based incentives, rebates, performance awards, or credits. We estimate
variable consideration at the most likely amount we will receive from customers. We include estimated
amounts in the transaction price to the extent it is probable that a significant reversal of cumulative
revenue recognized for such transaction will not occur, or when the uncertainty associated with the
variable consideration is resolved. Our estimates of variable consideration and determination of
whether to include estimated amounts in the transaction price are based largely on an assessment of
our anticipated performance and all information (historical, current and forecasted) that is reasonably
available to us.
For the years ended 2017 and 2016, prior to the adoption of the revenue recognition standard (see
Note 7 Revenue Recognition and Contracts with Customers), product and service sales were recognized
when persuasive evidence of an arrangement existed, product delivery had occurred or services had
been rendered, pricing was fixed or determinable, and collection was reasonably assured. Service sales,
principally representing repair, maintenance and engineering activities were recognized over the
contractual period or as services were rendered. Sales under long-term contracts were recorded on a
percentage-of-completion method measured on the cost-to-cost basis for engineering-type contracts and
the units-of-delivery basis for production-type contracts. Provisions for anticipated losses on long-term
contracts were recorded in full when such losses became evident. Revenues from contracts with multiple
element arrangements were recognized as each element was earned based on the relative fair value of
each element provided the delivered elements had value to customers on a standalone basis. Amounts
allocated to each element were based on its objectively determined fair value, such as the sales price for
the product or service when it was sold separately or competitor prices for similar products or services.
Environmental—We accrue costs related to environmental matters when it is probable that we
have incurred a liability related to a contaminated site and the amount can be reasonably estimated.
For additional information, see Note 20 Commitments and Contingencies.
Asbestos Related Liabilities and Insurance Recoveries, and Indemnification Receivables—
We recognize a liability for any asbestos related contingency that is probable of occurrence and
reasonably estimable. In connection with the recognition of liabilities for asbestos related matters, we
record asbestos related insurance recoveries that are deemed probable. Additionally, in conjunction
with the Garrett spin-off, the Company entered into an indemnification and reimbursement agreement
with a Garrett subsidiary, pursuant to which Garrett’s subsidiary has an obligation to make cash
payments to Honeywell as reimbursement for asbestos liabilities. Accordingly, the Company has
recorded an indemnification receivable and we monitor the recoverability of such receivable, which is
subject to terms of applicable credit agreements of Garrett and its general ability to pay. For additional
information, see Note 20 Commitments and Contingencies.
Aerospace Sales Incentives—We provide sales incentives to commercial aircraft manufacturers
and airlines in connection with their selection of our aircraft equipment, predominately wheel and
braking system hardware, avionics, and auxiliary power units, for installation on commercial aircraft.
These incentives consist of free or deeply discounted products, credits for future purchases of product
or upfront cash payments. These costs are generally recognized in the period incurred as cost of
products sold or as a reduction to relevant sales, as appropriate.

42
 HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)

Research and Development—Research and development costs for company-sponsored research

and development projects are expensed as incurred. Such costs are principally included in cost of
products sold and were $1,809 million, $1,835 million and $1,864 million in 2018, 2017 and 2016.
Stock-Based Compensation Plans—The principal awards issued under our stock-based
compensation plans, which are described in Note 19 Stock-Based Compensation Plans, are non-
qualified stock options and restricted stock units. The cost for such awards is measured at the grant
date based on the fair value of the award. The value of the portion of the award that is ultimately
expected to vest is recognized as expense over the requisite service periods (generally the vesting
period of the equity award) and is included in selling, general and administrative expenses. Forfeitures
are estimated at the time of grant to recognize expense for those awards that are expected to vest and
are based on our historical forfeiture rates.
Pension Benefits—On January 1, 2018, we retrospectively adopted the new accounting guidance
on presentation of net periodic pension costs. That guidance requires that we disaggregate the service
cost component of net benefit costs and report those costs in the same line item or items in the
Consolidated Statement of Operations as other compensation costs arising from services rendered by
the pertinent employees during the period. The other non-service components of net benefit costs are
required to be presented separately from the service cost component.
Following the adoption of this guidance, we continue to record the service cost component of
Pension ongoing (income) expense in Costs of products and services sold and Selling, general and
administrative expenses. The remaining components of net benefit costs within Pension ongoing
(income) expense, primarily interest costs and assumed return on plan assets, are now recorded in
Other (income) expense. See Note 4 Other (Income) Expense for amounts that were reclassified. We
will continue to recognize net actuarial gains or losses in excess of 10% of the greater of the fair value
of plan assets or the plans’ projected benefit obligation (the corridor) annually in the fourth quarter each
year (MTM Adjustment). The MTM Adjustment will also be reported in Other (income) expense.
Foreign Currency Translation—Assets and liabilities of subsidiaries operating outside the
United States with a functional currency other than U.S. Dollars are translated into U.S. Dollars using
year-end exchange rates. Sales, costs and expenses are translated at the average exchange rates in
effect during the year. Foreign currency translation gains and losses are included as a component of
Accumulated other comprehensive income (loss). For subsidiaries operating in highly inflationary
environments, inventories and property, plant and equipment, including related expenses, are
remeasured at the exchange rate in effect on the date the assets were acquired, while monetary
assets and liabilities are remeasured at year-end exchange rates. Remeasurement adjustments for
these subsidiaries are included in earnings.
Derivative Financial Instruments—We minimize our risks from interest and foreign currency
exchange rate fluctuations through our normal operating and financing activities and, when deemed
appropriate through the use of derivative financial instruments. Derivative financial instruments are
used to manage risk and are not used for trading or other speculative purposes. We do not use
leveraged derivative financial instruments. Derivative financial instruments that qualify for hedge
accounting must be designated and effective as a hedge of the identified risk exposure at the inception
of the contract. Accordingly, changes in fair value of the derivative contract must be highly correlated
with changes in fair value of the underlying hedged item at inception of the hedge and over the life of
the hedge contract.
All derivatives are recorded on the balance sheet as assets or liabilities and measured at fair
value. For derivatives designated as hedges of the fair value of assets or liabilities, the changes in fair
values of both the derivatives and the hedged items are recorded in current earnings. For derivatives
designated as cash flow hedges, the effective portion of the changes in fair value of the derivatives are
recorded in Accumulated other comprehensive income (loss) and subsequently recognized in earnings
when the hedged items impact earnings. Cash flows of such derivative financial instruments are

43
 HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)

classified consistent with the underlying hedged item. We have elected to exclude the time value of the
derivatives (i.e., the forward points) from the assessment of hedge effectiveness and recognize the
initial value of the excluded component in earnings using the amortization approach. For derivative
instruments that are designated and qualify as a net investment hedge, the effective portion of the
derivative’s gain or loss is reported as a component of Other comprehensive income (loss) and
recorded in Accumulated other comprehensive income (loss). The gain or loss will be subsequently
reclassified into net earnings when the hedged net investment is either sold or substantially liquidated.
Income Taxes—Significant judgment is required in evaluating tax positions. We establish
additional reserves for income taxes when, despite the belief that tax positions are fully supportable,
there remain certain positions that do not meet the minimum recognition threshold. The approach for
evaluating certain and uncertain tax positions is defined by the authoritative guidance which
determines when a tax position is more likely than not to be sustained upon examination by the
applicable taxing authority. In the normal course of business, the Company and its subsidiaries are
examined by various federal, state and foreign tax authorities. We regularly assess the potential
outcomes of these examinations and any future examinations for the current or prior years in
determining the adequacy of our provision for income taxes. We continually assess the likelihood and
amount of potential adjustments and adjust the income tax provision, the current tax liability and
deferred taxes in the period in which the facts that give rise to a change in estimate become known.
For discussion of the impacts from what is commonly referred to as the U.S. Tax Cuts and Jobs Act
(“U.S Tax Reform”), see Note 5 Income Taxes.
Cash and cash equivalents—Cash and cash equivalents include cash on hand and highly liquid
investments having an original maturity of three months or less.
Earnings Per Share—Basic earnings per share is based on the weighted average number of
common shares outstanding. Diluted earnings per share is based on the weighted average number of
common shares outstanding and all dilutive potential common shares outstanding.
Reclassifications—Certain prior year amounts have been reclassified to conform to the current
year presentation.
Recent Accounting Pronouncements—We consider the applicability and impact of all
Accounting Standards Updates (ASUs) issued by the Financial Accounting Standards Board (FASB).
ASUs not listed below were assessed and determined to be either not applicable or are expected to
have minimal impact on our consolidated results of operations, financial position and cash flows
(consolidated financial statements).
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 that will be effective for interim and annual periods beginning after December
15, 2018. The standard allows modified retrospective transition method where an entity can elect to
apply the transition provisions at the adoption date and recognize a cumulative-effect adjustment to the
opening balance of retained earnings in the period of adoption.
Effective January 1, 2019, the Company adopted the new lease accounting standard using the
modified retrospective transition option of applying the new standard at the adoption date. In addition,
we elected the package of practical expedients permitted under the transition guidance within the new
standard, which among other things, allowed us to carry forward the historical lease classification.
Adoption of the new standard resulted in the recording of additional net lease assets and lease
liabilities of approximately $0.7 billion. The adoption of this standard did not have a material impact
related to existing leases and as a result, a cumulative-effect adjustment was not recorded. We are
currently working to complete the implementation of new processes and information technology tools to

44
 HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)

assist in our ongoing lease data collection and analysis, and updating our accounting policies and
internal controls in connection with the adoption of the new standard.
In October 2016, the FASB issued an accounting standard update which requires an entity to
recognize the income tax consequences of an intra-entity transfer of an asset, other than inventory, at
the time the entity transfer occurs rather than when the asset is ultimately transferred to a third party,
as required under current U.S. GAAP. The guidance is intended to reduce diversity in practice,
particularly for transfers involving intellectual property. We adopted the accounting standard update as
of January 1, 2018. The guidance requires application on a modified retrospective basis. The adoption
of this guidance increases our deferred tax assets by $339 million with a cumulative-effect adjustment
to retained earnings of the same amount.
In August 2017, the FASB issued amendments to hedge accounting guidance. These
amendments are intended to better align risk management strategies and financial reporting for
hedging relationships. Under the new guidance, more hedging strategies will be eligible for hedge
accounting and the application of hedge accounting is simplified. In addition, the new guidance amends
presentation and disclosure requirements. The Company adopted this standard effective January 1,
2018 using a modified retrospective approach. The adoption did not have a material impact on the
Company’s financial position, results of operations, or cash flows.
In February 2018, the FASB issued guidance that allows for an entity to elect to reclassify the
income tax effects on items within accumulated other comprehensive income resulting from U.S. Tax
Reform to retained earnings. The guidance is effective for fiscal years beginning after December 15,
2018 with early adoption permitted, including interim periods within those years. Upon adoption, the
Company does not expect to elect to reclassify the stranded income tax effects of U.S. Tax Reform
from accumulated other comprehensive income to retained earnings.

Note 2. Acquisitions and Divestitures

During 2018, we acquired businesses for an aggregate cost (net of cash and debt assumed) of
approximately $535 million, mainly due to the November 2018 acquisition of Transnorm, a global
leader in high-performance conveyor and warehouse solutions. Transnorm is part of Safety and
Productivity Solutions. The preliminary determination of the assets and liabilities acquired with
Transnorm have been included in the Consolidated Balance Sheet as of December 31, 2018, including
$338 million allocated to goodwill, which is non-deductible for tax purposes.
During 2017 there were no significant acquisitions individually or in aggregate. During 2016, we
acquired businesses for an aggregate cost (net of cash and debt assumed) of $2,538 million.
In August 2016, the Company acquired Intelligrated, a leading provider of supply chain and
warehouse automation technologies, for an aggregate value, net of cash acquired, of $1,488 million.
Intelligrated is part of Safety and Productivity Solutions. Management recorded goodwill and intangible
assets acquired of, $1,121 million and $507 million, respectively. The Intelligrated identifiable intangible
assets primarily include customer relationships, technology, and trade name that are being amortized
over their estimated lives ranging from 1 to 15 years using straight line and accelerated amortization
methods. The goodwill is non-deductible for tax purposes.
In April 2016, the Company completed the acquisition of Xtralis International Holdings Limited
(“Xtralis”), a leading global provider of aspiration smoke detection and perimeter security technologies,
for an aggregate cost, net of cash acquired and debt assumed, of $515 million. Xtralis is part of
Honeywell Building Technologies.
In February 2016, the Company acquired 100 percent of the issued and outstanding shares of
COM DEV International (“COM DEV”), a leading satellite and space components provider, for an
aggregate value, net of cash acquired and debt assumed, of $347 million. COM DEV is part of
Aerospace.

45
 HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)

In January 2016, the Company acquired the remaining 30 percent noncontrolling interest in UOP
Russell LLC, which develops technology and manufactures modular equipment to process natural gas,
for $240 million. UOP Russell LLC is part of Performance Materials and Technologies.
On October 1, 2018, the Company completed the tax-free spin-off to Honeywell shareowners of its
Transportation Systems business, part of Aerospace, into a standalone publicly-traded company,
Garrett Motion Inc. (“Garrett”). On October 29, 2018, the Company completed the tax-free spin-off to
Honeywell shareowners of its Homes and Global Distribution business, part of Home and Building
Technologies (renamed Honeywell Building Technologies following the spin-off), into a standalone
publicly-traded company, Resideo Technologies, Inc. (“Resideo”). The assets of approximately
$5.5 billion, including approximately $2.8 billion of goodwill and net of recorded indemnification
receivables, and liabilities of approximately $7.2 billion associated with spin-off entities have been
removed through Retained Earnings from the Company’s Consolidated Balance Sheet as of the
effective date of the spin-off. The results of operations and cash flows are included in the Consolidated
Statement of Operations and Consolidated Statement of Cash Flows through the effective date of the
spin-off. The Income before taxes attributable to the spin-off businesses were $0.4 billion, $0.5 billion,
and $0.6 billion for 2018, 2017 and 2016.
Honeywell shareowners of record as of the close of business on October 16, 2018 received one
share of Resideo common stock for every 6 shares of Honeywell common stock. Immediately prior to
the effective date of the spin-off, Resideo incurred debt of $1.2 billion to make a cash distribution to the
Company.
Honeywell shareowners of record as of the close of business on September 18, 2018 received
one share of Garrett common stock for every 10 shares of Honeywell common stock. Immediately prior
to the effective date of the spin-off, Garrett incurred debt of $1.6 billion to make a cash distribution to
the Company.
In 2018 in connection with the spin-off, the Company entered into certain agreements with
Resideo and Garrett to effect our legal and structural separation, including transition services
agreements to provide certain administrative and other services for a limited time, and tax matters and
indemnity agreements. As of the end of 2018, most of those agreements are still in effect.
On October 1, 2016, the Company completed the tax-free spin-off to Honeywell shareowners of its
Resins and Chemicals business, part of Performance Materials and Technologies, into a standalone,
publicly-traded company (named AdvanSix Inc. (“AdvanSix”)). The assets and liabilities associated with
AdvanSix have been removed from the Company’s Consolidated Balance Sheet as of the effective
date of the spin-off. The results of operations for AdvanSix are included in the Consolidated Statement
of Operations through the effective date of the spin-off.
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.
In 2016 in connection with the spin-off, 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. As of the end of 2018,
those agreements have ended.
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, which was
recorded in Other (income) expense. The Honeywell Technology Solutions Inc. business was part of
Aerospace.

46
 HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)

Note 3. Repositioning and Other Charges

A summary of repositioning and other charges follows:
Years Ended December 31,
2018 2017 2016
Severance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 289 $305 $ 283
Asset impairments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162 142 43
Exit costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79 60 43
Reserve adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (10) (16) (109)
Total net repositioning charge. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 520 491 260
Asbestos related litigation charges, net of insurance and indemnities . . 163 159 217
Probable and reasonably estimable environmental liabilities, net of
indemnities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 345 287 195
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 36 18
Total net repositioning and other charges. . . . . . . . . . . . . . . . . . . . . . . . $1,091 $973 $ 690

The following table summarizes the pre-tax distribution of total net repositioning and other charges
by classification:
Years Ended December 31,
2018 2017 2016
Cost of products and services sold. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 811 $736 $517
Selling, general and administrative expenses . . . . . . . . . . . . . . . . . . . . . . . . . 239 187 126
Other (income) expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 50 47
$1,091 $973 $690

The following table summarizes the pre-tax impact of total net repositioning and other charges by
segment:
Years Ended December 31,
2018 2017 2016
Aerospace . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 154 $248 $293
Honeywell Building Technologies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111 78 28
Performance Materials and Technologies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 191 102 101
Safety and Productivity Solutions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133 51 1
Corporate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 502 494 267
$1,091 $973 $690

In 2018, we recognized repositioning charges totaling $530 million including severance costs of $289
million related to workforce reductions of 6,486 manufacturing and administrative positions across our
segments. The workforce reductions were primarily related to planned site closures, mainly in Safety and
Productivity Solutions, Performance Materials and Technologies and Honeywell Building Technologies, as
we transition manufacturing sites to more cost-effective locations. The workforce reductions were also
related to our productivity and ongoing functional transformation initiatives. The repositioning charge
included asset impairments of $162 million mainly related to manufacturing plant and equipment associated
with planned site closures. Asset impairments also included the write-down of a legacy property in
Corporate in connection with its planned disposition and the write-off of certain capitalized assets in
Corporate. The repositioning charge included exit costs of $79 million primarily related to a termination fee
associated with the early cancellation of a supply agreement for certain raw materials in Performance
Materials and Technologies and for closure obligations associated with planned site closures.
In 2017, we recognized repositioning charges totaling $507 million including severance costs of
$305 million related to workforce reductions of 7,096 manufacturing and administrative positions across

47
 HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)

our segments. The workforce reductions were primarily related to cost savings actions taken in
connection with our productivity and ongoing functional transformation initiatives and with site
transitions, in each of our segments, to more cost-effective locations. The repositioning charge
included asset impairments of $142 million principally in our Corporate segment related to the write-
down of legacy properties and certain equipment in connection with their planned disposition and the
write-down of a research and development facility in connection with a planned exit from such facility.
The repositioning charge included exit costs of $60 million principally for closure obligations associated
with site transitions in each of our segments and for lease exit obligations in our Corporate segment.
In 2016, we recognized repositioning charges totaling $369 million including severance costs of
$283 million related to workforce reductions of 6,585 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; site
transitions in each of our segments to more cost-effective locations; and achieving acquisition-related
synergies. The repositioning charge included asset impairments of $43 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 $43 million principally for
expenses related to the spin-off of our AdvanSix business and closure obligations associated with site
transitions. Also, $109 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 scope of previously announced repositioning actions.
The following table summarizes the status of our total repositioning reserves:
Severance Asset Exit
Costs Impairments Costs Total
Balance at December 31, 2015 . . . . . . . . . . . . . . . . . . . $ 329 $ — $ 21 $ 350
2016 charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 283 43 43 369
2016 usage—cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (203) — (25) (228)
2016 usage—noncash . . . . . . . . . . . . . . . . . . . . . . . . . . (6) (43) — (49)
Adjustments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (106) — (3) (109)
Foreign currency translation. . . . . . . . . . . . . . . . . . . . . 1 — (3) (2)
Balance at December 31, 2016 . . . . . . . . . . . . . . . . . . . 298 — 33 331
2017 charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 305 142 60 507
2017 usage—cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (163) — (14) (177)
2017 usage—noncash . . . . . . . . . . . . . . . . . . . . . . . . . . — (142) — (142)
Adjustments and reclassifications. . . . . . . . . . . . . . . . (13) — (10) (23)
Foreign currency translation. . . . . . . . . . . . . . . . . . . . . 15 — 2 17
Balance at December 31, 2017 . . . . . . . . . . . . . . . . . . . 442 — 71 513
2018 charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 289 162 79 530
2018 usage—cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (218) — (67) (285)
2018 usage—noncash . . . . . . . . . . . . . . . . . . . . . . . . . . — (163) — (163)
Divestitures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (11) — (3) (14)
Adjustments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (8) 1 (3) (10)
Foreign currency translation. . . . . . . . . . . . . . . . . . . . . (5) — — (5)
Balance at December 31, 2018 . . . . . . . . . . . . . . . . . . . $ 489 $ — $ 77 $ 566

Certain repositioning projects will recognize exit costs in future periods when the actual liability is
incurred. Such exit costs incurred in 2018, 2017 and 2016 were not significant.
In 2018, the other charge of $63 million mainly relates to reserves taken due to the required wind-
down of our activities in Iran and the evaluation of potential resolution of a certain legal matter.

48
 HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)

Note 4. Other (Income) Expense

Years Ended December 31,
2018 2017 2016
Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (217) $(151) $(106)
Pension ongoing income—non-service . . . . . . . . . . . . . . . . . . . . . (1,165) (875) (605)
Other postretirement income—non-service . . . . . . . . . . . . . . . . . (32) (21) (32)
Equity income of affiliated companies. . . . . . . . . . . . . . . . . . . . . . (50) (39) (31)
Loss (gain) on sale of non-strategic business and assets . . . — 7 (178)
Foreign exchange . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (63) 18 12
Separation costs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 321 16 —
Other (net) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 82 201
$(1,149) $(963) $(739)

Separation costs are associated with the spin-offs of our Homes and Global Distribution business
and Transportation Systems business, and are primarily associated with third party services.
For the year ended December 31, 2018 and 2017, Other (net) includes asset impairments in
Corporate related to the write-down of a legacy property in connection with its planned disposition. See
Note 3 Repositioning and Other Charges.
Refer to Note 2 Acquisitions and Divestitures and Note 13 Long-term Debt and Credit Agreements
for further details of transactions recognized in 2016 within Other (income) expense.

Note 5. Income Taxes

Income before taxes

Years Ended December 31,
2018 2017 2016
U.S.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,919 $2,873 $2,981
Non-U.S. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,568 4,077 3,471
$7,487 $6,950 $6,452

Tax expense (benefit)

Years Ended December 31,
2018 2017 2016
Tax expense (benefit) consists of
Current:
U.S. Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (21) $2,061 $ 869
U.S. State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89 62 97
Non-U.S. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,177 787 559
$1,245 $2,910 $1,525
Deferred:
U.S. Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 396 $ 190 $ 40
U.S. State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 139 17
Non-U.S. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (990) 2,123 21
(586) 2,452 78
$ 659 $5,362 $1,603

49
 HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)

Years Ended December 31,

2018 2017 2016
The U.S. federal statutory income tax rate is reconciled to
our effective income tax rate as follows:
U.S. federal statutory income tax rate . . . . . . . . . . . . . . . . . . . 21.0% 35.0% 35.0%
Taxes on non-U.S. earnings(1)(2) . . . . . . . . . . . . . . . . . . . . . . . . . 0.2 (12.8) (8.0)
U.S. state income taxes(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.6 1.4 1.1
Reserves for tax contingencies . . . . . . . . . . . . . . . . . . . . . . . . . 0.3 1.6 1.2
Employee share-based payments . . . . . . . . . . . . . . . . . . . . . . . (0.7) (2.9) (2.0)
U.S. Tax Reform . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5.8) 56.0 —
Reduction of taxes on unremitted earnings . . . . . . . . . . . . . . (14.2) — —
Separation tax costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.5 — —
All other items—net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.9 (1.1) (2.5)
8.8% 77.2% 24.8%

(1) Net of changes in valuation allowance

(2) Includes U.S. taxes on non-U.S. earnings
The effective tax rate decreased by 68.4 percentage points in 2018 compared to 2017. The
decrease was primarily attributable to internal restructuring initiatives that resulted in a reduction of
accrued withholding taxes of approximately $1.1 billion related to unremitted foreign earnings. In
addition, we recorded a tax benefit of approximately $440 million as a reduction to our 2017 provisional
estimate of impacts from U.S. Tax Reform, which was partially offset by $411 million of tax costs
associated with the internal restructuring of the Homes and Global Distribution business and
Transportation Systems business in advance of their spin-offs. The Company’s non-U.S. effective tax
rate was 4.1%, a decrease of approximately 67.3 percentage points compared to 2017. The year over
year decrease in the foreign effective tax rate was primarily attributable to the impact of the Company’s
internal restructuring initiatives and the reduction of accrued withholding taxes on unremitted foreign
earnings, partially offset by the spin-off transactions.
The effective tax rate increased by 52.4 percentage points in 2017 compared to 2016. The
increase was primarily attributable to the provisional impact of U.S. Tax Reform, partially offset by
increased tax benefits from foreign tax credits and for employee share-based payments. The
Company’s non-U.S. effective tax rate was 71.4%, an increase of approximately 54.7 percentage
points compared to 2016. The year-over-year increase in the non-U.S. effective tax rate was primarily
driven by the Company’s change in assertion regarding foreign unremitted earnings, increased
expense for reserves in various jurisdictions and increased withholding taxes, partially offset by higher
earnings in low tax rate jurisdictions.

50
 HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)

Deferred tax assets (liabilities)

The tax effects of temporary differences and tax carryforwards which give rise to future income tax
benefits and payables are as follows:
December 31,
Deferred tax assets: 2018 2017
Postretirement benefits other than pensions . . . . . . . . . . . . . . . . . . . . . . 120 177
Asbestos and environmental . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 589 570
Employee compensation and benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . 262 218
Other accruals and reserves . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 336 376
Net operating and capital losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 688 632
Tax credit carryforwards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154 510
Gross deferred tax assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,149 2,483
Valuation allowance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (689) (663)
Total deferred tax assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,460 $ 1,820
Deferred tax liabilities:
Pension. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (40) $ (40)
Property, plant and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (422) (439)
Intangibles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,553) (1,326)
Unremitted earnings of foreign subsidiaries . . . . . . . . . . . . . . . . . . . . . . . (616) (2,151)
Other asset basis differences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (110) (210)
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (50) (67)
Total deferred tax liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,791) (4,233)
Net deferred tax liability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(1,331) $(2,413)

Our gross deferred tax assets include $794 million related to non-U.S. operations comprised
principally of net operating losses, capital loss and tax credit carryforwards (mainly in Canada, France,
Germany, Luxembourg and the United Kingdom) and deductible temporary differences. We maintain a
valuation allowance of $686 million against a portion of the non-U.S. gross deferred tax assets. The
change in the valuation allowance resulted in increases of $57 million, $4 million and $69 million to
income tax expense in 2018, 2017 and 2016. In the event we determine that we will not be able to
realize our net deferred tax assets in the future, we will reduce such amounts through an increase to
income tax expense in the period such determination is made. Conversely, if we determine that we will
be able to realize net deferred tax assets in excess of the carrying amounts, we will decrease the
recorded valuation allowance through a reduction to income tax expense in the period that such
determination is made.
As of December 31, 2018, we have recorded a $616 million deferred tax liability on all of our
unremitted foreign earnings based on estimated earnings and profits of approximately $20.5 billion as
of the balance sheet date.
As of December 31, 2018, our net operating loss, capital loss and tax credit carryforwards were as
follows:
Net Operating
Expiration and Capital Loss Tax Credit
Jurisdiction Period Carryforwards Carryforwards
U.S. Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2038 $ 9 $ 22
U.S. State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2038 406 18
Non-U.S. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2038 310 117
Non-U.S. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Indefinite 2,353 —
$3,078 $157

51
 HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)

Many jurisdictions impose limitations on the timing and utilization of net operating loss and tax
credit carryforwards. In those instances, whereby there is an expected permanent limitation on the
utilization of the net operating loss or tax credit carryforward, the deferred tax asset and amount of the
carryforward have been reduced.
2018 2017 2016
Change in unrecognized tax benefits:
Balance at beginning of year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 947 $877 $765
Gross increases related to current period tax positions . . . . . . . . . . . . . 370 94 96
Gross increases related to prior periods tax positions . . . . . . . . . . . . . . 82 153 88
Gross decreases related to prior periods tax positions . . . . . . . . . . . . . (201) (91) (33)
Decrease related to resolutions of audits with tax authorities . . . . . . . (40) (76) (3)
Expiration of the statute of limitations for the assessment of taxes . . (50) (54) (10)
Foreign currency translation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (19) 44 (26)
Balance at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,089 $947 $877

As of December 31, 2018, 2017, and 2016 there were $1,089 million, $947 million and
$877 million of unrecognized tax benefits that if recognized would be recorded as a component of Tax
expense.

The following table summarizes tax years that remain subject to examination by major tax
jurisdictions as of December 31, 2018:

Open Tax Years

Based on Originally Filed Returns
Examination in Examination not yet
Jurisdiction progress initiated
U.S. Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2015 – 2016 2015, 2017 – 2018
U.S. State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2011 – 2017 2012 – 2018
Australia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . N/A 2016 – 2018
Canada(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2010 – 2016 2017 – 2018
China . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2003 – 2017 2018
France . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2008 – 2017 2018
Germany(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2007 – 2018 N/A
India . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1998 – 2016 2017 – 2018
Switzerland(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2013 – 2014 2017 – 2018
United Kingdom . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2013 – 2017 2018

(1) Includes provincial or similar local jurisdictions, as applicable.

Based on the outcome of these examinations, or as a result of the expiration of statute of

limitations for specific jurisdictions, it is reasonably possible that certain unrecognized tax benefits for
tax positions taken on previously filed tax returns will materially change from those recorded as
liabilities in our financial statements. In addition, the outcome of these examinations may impact the
valuation of certain deferred tax assets (such as net operating losses) in future periods.

Unrecognized tax benefits for examinations in progress were $304 million, $487 million and
$398 million, as of December 31, 2018, 2017, and 2016. Estimated interest and penalties related to the
underpayment of income taxes are classified as a component of Tax expense in the Consolidated
Statement of Operations and totaled $45 million, $28 million and $18 million for the years ended
December 31, 2018, 2017, and 2016. Accrued interest and penalties were $426 million, $423 million
and $395 million, as of December 31, 2018, 2017, and 2016.

52
 HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)

U.S. Tax Reform

During the quarter ending December 31, 2018, the Company completed the accounting for the tax
effects of U.S. Tax Reform which amounted to a total tax charge of approximately $3.5 billion, most of
which was recorded as a provisional estimate at the end of 2017. During 2018, we reduced our
provisional estimate by approximately $440 million as a reduction to Tax expense.
Corporate Tax Rate Change—The Company recorded a total tax benefit of approximately
$190 million due to the decrease in the corporate statutory tax rate from 35% to 21%. This includes a
measurement period adjustment of approximately $90 million recorded during 2018 as a reduction to
Tax expense. The change in the provisional estimate primarily relates to information contained in tax
returns that were filed during the quarter ending December 31, 2018, some of which require approval
from U.S. tax authorities. The tax benefit from the change in tax rates results from the Company’s
deferred tax liability position for the excess of its net book value over its tax basis of its U.S. assets and
liabilities that will generate future taxable income in excess of book income. This additional taxable
income will be subject to tax at a lower corporate tax rate, consequently reducing the Company’s
deferred tax liability.
Mandatory Transition Tax—The Company recorded a total tax charge of approximately
$1,950 million due to the imposition of the mandatory transition tax (“MTT”) on the deemed
repatriation of undistributed foreign earnings. This includes a measurement period adjustment of
approximately $50 million recorded during 2018 as an increase to Tax expense. The change in the
provisional estimate primarily relates to updated amounts from tax returns that were finalized during
2018, computations based on 2018 testing dates and guidance from the taxing authorities that was
received during the year. The Company has elected to pay the MTT liability over a period of eight
years.
Undistributed Foreign Earnings—The Company recorded a total tax charge of approximately
$1,700 million due to the Company’s intent to no longer permanently reinvest the historical unremitted
earnings of its foreign affiliates that existed as of December 31, 2017. This includes a measurement
period adjustment of approximately $400 million recorded during 2018 as a reduction to Tax expense.
The change in the provisional estimate primarily relates to updated amounts from tax returns that were
finalized during 2018, the application of foreign tax credits based on guidance issued during the year
and changes to the applicable withholding tax rates in local jurisdictions. During 2018, the Company
executed various internal restructuring initiatives that reduced the taxes on unremitted foreign earnings
by approximately $1.1 billion that was recorded as a reduction to Tax expense.
Global Intangible Low Taxed Income—U.S. Tax Reform imposes a U.S. tax on global intangible
low taxed income (“GILTI”) that is earned by certain foreign affiliates owned by a U.S. shareholder.
GILTI is generally intended to impose tax on the earnings of a foreign corporation that are deemed to
exceed a certain threshold return relative to the underlying business investment. The Company has
made a policy election to treat future taxes related to GILTI as a current period expense in the
reporting period in which the tax is incurred.

Note 6. Earnings Per Share

The details of the earnings per share calculations for the years ended December 31, 2018, 2017
and 2016 are as follows:
Years Ended December 31,
Basic 2018 2017 2016
Net income attributable to Honeywell . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $6,765 $1,545 $4,812
Weighted average shares outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 743.0 762.1 764.3
Earnings per share of common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 9.10 $ 2.03 $ 6.30

53
 HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)

Years Ended December 31,

Assuming Dilution 2018 2017 2016
Net income attributable to Honeywell . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $6,765 $1,545 $4,812
Average Shares
Weighted average shares outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 743.0 762.1 764.3
Dilutive securities issuable—stock plans. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.0 10.0 11.0
Total weighted average diluted shares outstanding . . . . . . . . . . . . . . . . . . . . . 753.0 772.1 775.3
Earnings per share of common stock—assuming dilution . . . . . . . . . . . . . . . $ 8.98 $ 2.00 $ 6.21
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. In 2018,
2017, and 2016 the weighted number of stock options excluded from the computations were
2.5 million, 2.8 million, and 7.5 million. These stock options were outstanding at the end of each of the
respective periods.

Note 7. Revenue Recognition and Contracts with Customers

Adoption
On January 1, 2018, the Company adopted new guidance on revenue from contracts with
customers using the modified retrospective method applied to contracts that were not completed as of
January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under the
new guidance, while prior period amounts are not adjusted and continue to be reported in accordance
with previous guidance.
We recorded a net decrease to opening retained earnings of $75 million as of January 1, 2018, for
the cumulative impact of adopting the new guidance. The impact primarily related to the change in
accounting for mechanical service programs (change from input to output method, resulting in unbilled
receivables (within Accounts receivable–net) and deferred revenue (within Accrued liabilities) being
eliminated through Retained earnings) and for customer funding and the related costs incurred for
nonrecurring engineering and development activities (deferral of revenues and related incurred costs
until products are delivered to customers, resulting in increases in both deferred costs (assets) and
deferred revenue (liability) by approximately $1.1 billion at adoption).

New
Balance at Revenue Balance at
December 31, Standard January 1,
2017 Adjustment 2018
ASSETS
Current assets:
Accounts receivable—net. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 8,866 $ (149) $ 8,717
Inventories. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,613 (10) 4,603
Deferred income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 251 40 291
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,372 1,082 4,454
LIABILITIES
Current liabilities:
Accrued liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,968 (48) 6,920
Deferred income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,664 1 2,665
Other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,930 1,084 7,014
SHAREOWNERS’ EQUITY
Retained earnings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27,481 (75) 27,406
Noncontrolling interest. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 163 $ 1 $ 164

54
 HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)

Under the modified retrospective method of adoption, we are required to disclose the impact to
revenues had we continued to follow our accounting policies under the previous revenue recognition
guidance. We estimate that the impact to revenues for the year ended December 31, 2018 would have
been a decrease of approximately $339 million, which is primarily due to the net impact of the
classification change and deferral impact of nonrecurring engineering and development activities, and
the net impact from service programs with certain amounts being recognized that would have
previously been deferred, and certain amount being deferred that would have previously been
recognized.
Refer to Note 1 Summary of Significant Accounting Policies for a summary of our significant
policies for revenue recognition.

Disaggregated Revenue
Honeywell has a comprehensive offering of products and services, including software and
technologies, that are sold to a variety of customers in multiple end markets. See the following table
and related discussions by operating segment for details.
Year Ended
December 31,
2018
Aerospace
Commercial Aviation Original Equipment . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,833
Commercial Aviation Aftermarket. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,373
Defense Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,665
Transportation Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,622
15,493
Honeywell Building Technologies
Products and Software . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,732
Distribution (ADI). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,196
Building Management Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 830
Building Solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,417
Building Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,123
9,298
Performance Materials and Technologies
UOP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,845
Process Solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,758
Smart Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,223
Specialty Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,134
Fluorine Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,714
10,674
Safety and Productivity Solutions
Safety and Retail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,278
Productivity Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,373
Warehouse and Workflow Solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,829
Sensing & Internet-of-Things (IoT) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 857
6,337
Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $41,802

Aerospace—A global supplier of products, software and services for aircraft and vehicles.
Products include aircraft propulsion engines, auxiliary power units, environmental control systems,

55
 HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)

integrated avionics, electric power systems, hardware for engine controls, flight safety, communica-
tions, and navigation, satellite and space components, aircraft wheels and brakes, turbochargers and
thermal systems. Software includes engine controls, flight safety, communications, navigation, radar
and surveillance systems, internet connectivity and aircraft instrumentation. Services are provided to
customers for the repair, overhaul, retrofit and modification of propulsion engines, auxiliary power units,
avionics and mechanical systems and aircraft wheels and brakes.

Honeywell Building Technologies—A global provider of products, software, solutions and

technologies. Products include controls and displays for heating, cooling, indoor air quality, ventilation,
humidification, combustion, lighting and home automation; sensors, switches, control systems and
instruments for measuring pressure, air flow, temperature and electrical current; access control; video
surveillance; fire detection; remote patient monitoring systems; and installation, maintenance and
upgrades of systems that keep buildings safe, comfortable and productive. Software includes
monitoring and managing heating, cooling, indoor air quality, ventilation, humidification, combustion,
lighting and home automation; advanced applications for home/building control and optimization; video
surveillance; and to support remote patient monitoring systems. Installation, maintenance and upgrade
services of products used in commercial building applications for heating, cooling, maintaining indoor
air quality, ventilation, humidification, combustion, lighting, video surveillance and fire safety.

Performance Materials and Technologies—A global provider of products, software, solutions

and technologies. Products include catalysts, absorbents, equipment and high-performance materials,
devices for measurement, regulation, control and metering of gases and electricity, and metering and
communications systems for water utilities and industries. Software is provided to support process
technologies supporting automation and to monitor a variety of industrial processes used in industries
such as oil and gas, chemicals, petrochemicals, metals, minerals and mining industries. Services are
provided for installation and maintenance of products.

Safety and Productivity Solutions—A global provider of products, software and solutions.
Products include personal protection equipment and footwear, gas detection devices, mobile
computing, data collection and thermal printing devices, automation equipment for supply chain and
warehouse automation and custom-engineered sensors, switches and controls. Software and solutions
are provided to customers for supply chain and warehouse automation, to manage data and assets to
drive productivity and for computing, data collection and thermal printing.

For a summary by disaggregated product and services sales for each segment, refer to Note 22
Segment Financial Data.

We recognize revenue arising from performance obligations outlined in contracts with our
customers that are satisfied at a point in time and over time. The disaggregation of our revenue based
off timing of recognition is as follows:

Year Ended
December 31,
2018
Products, transferred point in time . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67%
Products, transferred over time . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Net product sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
Services, transferred point in time. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Services, transferred over time. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Net service sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100%

56
 HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)

Contract Balances
Progress on satisfying performance obligations under contracts with customers and the related
billings and cash collections are recorded on the Consolidated Balance Sheet in Accounts receivable—
net and Other assets (the current and noncurrent portions, respectively, of unbilled receivables
(contract assets) and billed receivables) and Accrued liabilities and Other liabilities (the current and
noncurrent portions, respectively, of customer advances and deposits (contract liabilities)). Unbilled
receivables (contract assets) arise when the timing of cash collected from customers differs from the
timing of revenue recognition, such as when contract provisions require specific milestones to be met
before a customer can be billed. Those assets are recognized when the revenue associated with the
contract is recognized prior to billing and derecognized when billed in accordance with the terms of the
contract. Contract liabilities are recorded when customers remit contractual cash payments in advance
of us satisfying performance obligations under contractual arrangements, including those with
performance obligations to be satisfied over a period of time. Contract liabilities are derecognized
when revenue is recorded, either when a milestone is met triggering the contractual right to bill or when
the performance obligation is satisfied.
Contract balances are classified as assets or liabilities on a contract-by-contract basis at the end
of each reporting period.
The following table summarizes our contract assets and liabilities balances:
2018
Contract assets—January 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,721
Contract assets—December 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,548
Change in contract assets—increase (decrease) . . . . . . . . . . . . . . . . . . . . . . . . $ (173)
Contract liabilities—January 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(2,973)
Contract liabilities—December 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,378)
Change in contract liabilities—(increase) decrease . . . . . . . . . . . . . . . . . . . . . . $ (405)
Net change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (578)

The net change was primarily driven by the receipt of advance payments from customers
exceeding reductions from recognition of revenue as performance obligations were satisfied and
related billings. For the year ended December 31, 2018, we recognized revenue of $1,166 million that
was previously included in the beginning balance of contract liabilities.
When contracts are modified to account for changes in contract specifications and requirements,
we consider whether the modification either creates new or changes the existing enforceable rights and
obligations. Contract modifications that are for goods or services that are not distinct from the existing
contract, due to the significant integration with the original good or service provided, are accounted for
as if they were part of that existing contract. The effect of a contract modification on the transaction
price and our measure of progress for the performance obligation to which it relates, is recognized as
an adjustment to revenue (either as an increase in or a reduction of revenue) on a cumulative catch-up
basis. When the modifications include additional performance obligations that are distinct and at
relative stand-alone selling price, they are accounted for as a new contract and performance obligation,
which are recognized prospectively.

Performance Obligations
A performance obligation is a promise in a contract to transfer a distinct good or service to the
customer, and is defined as the unit of account. A contract’s transaction price is allocated to each
distinct performance obligation and recognized as revenue when, or as, the performance obligation is
satisfied. When our contracts with customers require highly complex integration or manufacturing

57
 HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)

services that are not separately identifiable from other promises in the contracts and, therefore, not
distinct, then the entire contract is accounted for as a single performance obligation. In situations when
our contract includes distinct goods or services that are substantially the same and have the same
pattern of transfer to the customer over time, they are recognized as a series of distinct goods or
services. For any contracts with multiple performance obligations, we allocate the contract’s
transaction price to each performance obligation based on the estimated relative standalone selling
price of each distinct good or service in the contract. For product sales, each product sold to a
customer typically represents a distinct performance obligation. In such cases, the observable
standalone sales are used to determine the stand alone selling price.

Performance obligations are satisfied as of a point in time or over time. Performance obligations
are supported by contracts with customers, providing a framework for the nature of the distinct goods,
services or bundle of goods and services. The timing of satisfying the performance obligation is
typically indicated by the terms of the contract. The following table outlines our performance obligations
disaggregated by segment.

2018
Aerospace. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $10,228
Honeywell Building Technologies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,302
Performance Materials and Technologies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,436
Safety and Productivity Solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,884
$24,850

Performance obligations recognized as of December 31, 2018 will be satisfied over the course of
future periods. Our disclosure of the timing for satisfying the performance obligation is based on the
requirements of contracts with customers. However, from time to time, these contracts may be subject
to modifications, impacting the timing of satisfying the performance obligations. Performance
obligations expected to be satisfied within one year and greater than one year are 56% and 44%.

The timing of satisfaction of our performance obligations does not significantly vary from the
typical timing of payment. Typical payment terms of our fixed-price over time contracts include
progress payments based on specified events or milestones, or based on project progress. For some
contracts we may be entitled to receive an advance payment.

We have applied the practical expedient for certain revenue streams to exclude the value of
remaining performance obligations for (i) contracts with an original expected term of one year or less or
(ii) contracts for which we recognize revenue in proportion to the amount we have the right to invoice
for services performed.

Note 8. Accounts Receivable

December 31,
2018 2017
Trade . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $7,705 $9,068
Less—Allowance for doubtful accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (197) (202)
7,508 8,866

Trade Receivables includes $1,543 million and $1,853 million of unbilled balances under long-term
contracts as of December 31, 2018 and December 31, 2017. These amounts are billed in accordance
with the terms of customer contracts to which they relate.

58
 HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)

Note 9. Inventories
December 31,
2018 2017
Raw materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,109 $1,193
Work in process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 811 790
Finished products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,445 2,669
4,365 4,652
Reduction to LIFO cost basis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (39) (39)
$4,326 $4,613

Inventories valued at LIFO amounted to $294 million and $324 million at December 31, 2018 and
2017. Had such LIFO inventories been valued at current costs, the carrying values would have been
approximately $39 million higher at December 31, 2018 and 2017.

Note 10. Property, Plant and Equipment—Net

December 31,
2018 2017
Land and improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 262 $ 287
Machinery and equipment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,435 10,762
Buildings and improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,125 3,463
Construction in progress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 588 675
13,410 15,187
Less—Accumulated depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (8,114) (9,261)
$ 5,296 $ 5,926

Depreciation expense was $721 million, $717 million and $726 million in 2018, 2017 and 2016.

Note 11. Goodwill and Other Intangible Assets—Net

The following table summarizes the change in the carrying amount of goodwill for the years ended
December 31, 2018 and 2017 by segment.
Currency
December 31, Acquisitions/ Translation December 31,
2017 Divestitures Adjustment 2018
Aerospace . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,468 $ (193) $ (17) $ 2,258
Honeywell Building Technologies . . . . . . . . . . . . . 5,960 (2,640) (82) 3,238
Performance Materials and Technologies . . . . . 5,242 23 (118) 5,147
Safety and Productivity Solutions . . . . . . . . . . . . 4,607 338 (42) 4,903
$18,277 $(2,472) $(259) $15,546

59
 HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)

Other intangible assets are comprised of:

December 31, 2018 December 31, 2017
Gross Net Gross Net
Carrying Accumulated Carrying Carrying Accumulated Carrying
Amount Amortization Amount Amount Amortization Amount
Determinable life intangibles:
Patents and technology . . . . . $1,996 $(1,332) $ 664 $1,990 $(1,272) $ 718
Customer relationships . . . . . . 3,785 (1,510) 2,275 3,911 (1,366) 2,545
Trademarks . . . . . . . . . . . . . . . . . 326 (206) 120 328 (189) 139
Other . . . . . . . . . . . . . . . . . . . . . . . 349 (299) 50 353 (304) 49
6,456 (3,347) 3,109 6,582 (3,131) 3,451
Indefinite life intangibles:
Trademarks . . . . . . . . . . . . . . . . . 1,030 — 1,030 1,045 — 1,045
$7,486 $(3,347) $4,139 $7,627 $(3,131) $4,496

Intangible assets amortization expense was $395 million, $398 million, and $304 million in 2018,
2017, 2016. Estimated intangible asset amortization expense for each of the next five years
approximates $386 million in 2019, $349 million in 2020, $312 million in 2021, $288 million in 2022,
and $251 million in 2023.

Note 12. Accrued Liabilities

December 31,
2018 2017
Customer advances and deferred income . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,403 $2,198
Compensation, benefit and other employee related . . . . . . . . . . . . . . . . . . . 1,469 1,420
Asbestos related liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 245 350
Repositioning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 566 508
Product warranties and performance guarantees . . . . . . . . . . . . . . . . . . . . . . 243 307
Environmental costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175 226
Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166 134
Accrued interest. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94 94
Other taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 234 277
Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170 199
Other (primarily operating expenses) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,094 1,255
$6,859 $6,968

60
 HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)

Note 13. Long-term Debt and Credit Agreements

December 31,
2018 2017
Two year floating rate Euro notes due 2018 . . . . . . . . . . . . . . . . . . . . . . — 1,199
1.40% notes due 2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,250 1,250
Three year floating rate notes due 2019 . . . . . . . . . . . . . . . . . . . . . . . . . . 250 250
Two year floating rate notes due 2019. . . . . . . . . . . . . . . . . . . . . . . . . . . . 450 450
1.80% notes due 2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 750 750
0.65% Euro notes due 2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,145 1,199
4.25% notes due 2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 800 800
1.85% notes due 2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,500 1,500
1.30% Euro notes due 2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,432 1,499
3.35% notes due 2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300 300
2.50% notes due 2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,500 1,500
2.25% Euro notes due 2028 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 859 900
5.70% notes due 2036 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 441 441
5.70% notes due 2037 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 462 462
5.375% notes due 2041. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 417 417
3.812% notes due 2047. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 445 445
Industrial development bond obligations, floating rate maturing at
various dates through 2037 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 22
6.625% debentures due 2028 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201 201
9.065% debentures due 2033 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 51
Other (including capitalized leases and debt issuance costs), 5.0%
weighted average maturing at various dates through 2025. . . . . . . 353 288
12,628 13,924
Less: current portion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,872) (1,351)
$ 9,756 $12,573

The schedule of principal payments on long-term debt is as follows:

December 31,
2018
2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,872
2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,416
2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,345
2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,756
Thereafter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,217
12,628
Less-current portion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,872)
$ 9,756

In October of 2017, the Company issued $450 million Floating Rate Senior Notes due 2019 and
$750 million 1.80% Senior Notes due 2019 (collectively, the “2017 Notes”). The 2017 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 $1,200 million, offset by $5 million in discount and closing costs
related to the offering.
In November of 2017, the Company issued $445 million 3.812% Senior Notes due 2047 (the
“Exchange Notes”). The Exchange Notes are senior unsecured and unsubordinated obligations of

61
 HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)

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 Exchange Notes were issued in partial exchange
for the 6.625% Debentures due 2028, the 5.70% Notes due 2036, the 5.70% Notes due 2037 and the
5.375% Notes due 2041. The Company paid $133 million to bondholders in connection with the partial
exchange.
On January 29, 2018, the Company completed an exchange offer for any and all of its outstanding
Exchange Notes, which had not been registered under the Securities Act of 1933, as amended
(“Securities Act”) for an equal principal amount of new 3.812% Notes due 2047 which had been
registered under the Securities Act (“Registered Notes”). 99.4% of the Exchange Notes were
exchanged for Registered Notes, representing 99.4% of the principal amount of the Company’s
outstanding 3.812% Notes due 2047.
On February 22, 2018, the Company paid its Two year floating rate Euro notes due 2018.
For the issuances described above, unless otherwise noted, all debt issuance costs are deferred
and recognized as a direct deduction to the related debt liability and are amortized to interest expense
over the debt term.
In connection with the Garrett spin-off, wholly owned subsidiaries of Garrett issued notes and
entered new credit facilities, which obligations were retained by Garrett in the spin-off. On
September 27, 2018 the Company received net proceeds of $1,604 million from such borrowings.
In connection with the Resideo spin-off, wholly owned subsidiaries of Resideo issued notes and
entered new credit facilities, which obligations were retained by Resideo in the spin-off. On October 25,
2018 the Company received net proceeds of $1,197 million from such borrowings.
On February 16, 2018, the Company entered into a $1.5 billion 364-Day Credit Agreement with a
syndicate of banks. This 364-Day Credit Agreement was maintained for general corporate purposes
and was terminated November 9, 2018.
On April 27, 2018, the Company entered into a $4 billion Amended and Restated Five Year Credit
Agreement (the “5-Year Credit Agreement”), with a syndicate of banks. The 5-Year Credit Agreement
is maintained for general corporate purposes. Commitments under the 5-Year Credit Agreement can
be increased pursuant to the terms of the 5-Year Credit Agreement to an aggregate amount not to
exceed $4.5 billion. The 5-Year Credit Agreement amends and restates the previously reported
$4 billion five year credit agreement dated as of July 10, 2015 (the “Prior Agreement”). The 5-Year
Credit Agreement has substantially the same material terms and conditions as the Prior Agreement.
On April 27, 2018, the Company entered into an additional $1.5 billion 364-Day Credit Agreement
with a syndicate of banks. This 364-Day Credit Agreement is maintained for general corporate
purposes.
There have been no borrowings under any of the credit agreements previously described.

62
 HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)

Note 14. Lease Commitments

Future minimum lease payments under operating leases having initial or remaining noncancellable
lease terms in excess of one year are as follows:
At December 31,
2018
2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $210
2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168
2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142
2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109
2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
Thereafter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147
$856

Rent expense was $360 million, $385 million and $387 million in 2018, 2017 and 2016.

Note 15. Financial Instruments and Fair Value Measures

Credit and Market Risk—Financial instruments, including derivatives, expose us to counterparty
credit risk for nonperformance and to market risk related to changes in interest and currency exchange
rates. We manage our exposure to counterparty credit risk through specific minimum credit standards,
diversification of counterparties, and procedures to monitor concentrations of credit risk. Our
counterparties in derivative transactions are substantial investment and commercial banks with
significant experience using such derivative instruments. We monitor the impact of market risk on the
fair value and cash flows of our derivative and other financial instruments considering reasonably
possible changes in interest rates and currency exchange rates and restrict the use of derivative
financial instruments to hedging activities.
We continually monitor the creditworthiness of our customers to which we grant credit terms in the
normal course of business. The terms and conditions of our credit sales are designed to mitigate or
eliminate concentrations of credit risk with any single customer. Our sales are not materially dependent
on a single customer or a small group of customers.
Foreign Currency Risk Management—We conduct our business on a multinational basis in a
wide variety of foreign currencies. Our exposure to market risk for changes in foreign currency
exchange rates arises from international financing activities between subsidiaries, foreign currency
denominated monetary assets and liabilities and transactions arising from international trade. Our
primary objective is to preserve the U.S. Dollar value of foreign currency denominated cash flows and
earnings. We attempt to hedge currency exposures with natural offsets to the fullest extent possible
and, once these opportunities have been exhausted, through foreign currency exchange forward and
option contracts (foreign currency exchange contracts) with third parties.
We hedge monetary assets and liabilities denominated in non-functional currencies. Prior to
conversion into U.S. dollars, these assets and liabilities are remeasured at spot exchange rates in
effect on the balance sheet date. The effects of changes in spot rates are recognized in earnings and
included in other (income) expense. We partially hedge forecasted sales and purchases, which are
denominated in non-functional currencies, with foreign currency exchange contracts. Changes in the
forecasted non-functional currency cash flows due to movements in exchange rates are substantially
offset by changes in the fair value of the foreign currency exchange contracts designated as hedges.
Market value gains and losses on these contracts are recognized in earnings when the hedged
transaction is recognized. At December 31, 2018 and 2017, we had contracts with notional amounts of
$14,995 million and $9,273 million to exchange foreign currencies, principally the U.S. Dollar, Euro,
British Pound, Canadian Dollar, Mexican Peso, Swiss Franc, Indian Rupee, Russian Ruble, and
Chinese Renminbi. As of December 31, 2018, we estimate that approximately $90 million of net

63
 HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)

derivative gains related to our cash flow hedges included in Accumulated other comprehensive income
(loss) will be reclassified into earnings within the next 12 months.
We have also designated foreign currency debt and certain derivative contracts as hedges against
portions of our net investment in foreign operations during the year ended December 31, 2018. Gains
or losses on the effective portion of the foreign currency debt designated as a net investment hedge
are recorded in the same manner as foreign currency translation adjustments. The Company did not
have ineffectiveness related to net investment hedges during the year ended December 31, 2018.
Interest Rate Risk Management—We use a combination of financial instruments, including long-
term, medium-term and short-term financing, variable-rate commercial paper, and interest rate swaps
to manage the interest rate mix of our total debt portfolio and related overall cost of borrowing. At
December 31, 2018 and 2017, interest rate swap agreements designated as fair value hedges
effectively changed $2,600 million of fixed rate debt at 2.93% to LIBOR based floating rate debt. Our
interest rate swaps mature at various dates through 2026.
Fair Value of Financial Instruments—The FASB’s accounting guidance defines fair value as the
price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date (exit price).
Financial and nonfinancial assets and liabilities are classified in their entirety based on the lowest
level of input that is significant to the fair value measurement. The following table sets forth the
Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as
of December 31, 2018 and 2017:
December 31,
2018 2017
Assets:
Foreign currency exchange contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 119 $ 17
Available for sale investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,784 3,916
Interest rate swap agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 44
Cross currency swap agreements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 —
Liabilities:
Foreign currency exchange contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4 $ 70
Interest rate swap agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 52
The foreign currency exchange contracts, interest rate swap agreements, and cross currency
swap agreements are valued using broker quotations, or market transactions in either the listed or
over-the-counter markets. As such, these derivative instruments are classified within level 2. The
Company also holds investments in commercial paper, certificates of deposits, and time deposits that
are designated as available for sale and are valued using published prices based off observable
market data. As such, 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:
December 31, 2018 December 31, 2017
Carrying Fair Carrying Fair
Value Value Value Value
Assets
Long-term receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 333 $ 329 $ 296 $ 289
Liabilities
Long-term debt and related current maturities . . . . . . . $12,628 $13,133 $13,924 $14,695

64
 HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)

The following table sets forth the amounts recorded on the Consolidated Balance Sheet related to
cumulative basis adjustments for fair value hedges:
Cumulative Amount of Fair Value Hedging
Adjustment Included in the Carrying
Carrying Amount of the Hedged Item Amount of the Hedged Item
Line in the Consolidated Balance December 31, December 31, December 31, December 31,
Sheet of Hedged Item 2018 2017 2018 2017
Long-term debt . . . . . . . . . . . . . $2,555 $2,592 $(45) $(8)
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. As such, 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.
As such, the fair value of the long-term debt and related current maturities is 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. Losses on interest rate swap agreements recognized in earnings were
$37 million, $29 million and $71 million in the years ended December 31, 2018, 2017 and 2016. Gains
and losses are fully offset by losses and gains on the underlying debt being hedged.
We 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 $394 million of income and $207 million
of expense in Other (income) expense in the years ended December 31, 2018 and 2017. We
recognized $232 million of income in Other (income) expense in the year ended December 31, 2016.
The following tables summarize the location and impact to the Consolidated Statement of
Operations related to fair value and cash flow hedging relationships:
Year Ended
December 31, 2018
Interest
Cost of Other and Other
Products (Income) Financial
Revenue Sold SG&A Expense Charges
$41,802 $23,634 $6,051 $(1,149) $367
Gain or (loss) on cash flow hedges:
Foreign Currency Exchange Contracts:
Amount reclassified from accumulated other
comprehensive income into income. . . . . . . (9) (35) (2) 47 —
Amount excluded from effectiveness testing
recognized in earnings using an
amortization approach . . . . . . . . . . . . . . . . . . . — 6 — 9 —
Gain or (loss) on fair value hedges:
Interest Rate Swap Agreements:
Hedged Items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — — 37
Derivatives designated as hedges . . . . . . . . . . — — — — (37)

65
 HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)

Year Ended
December 31, 2017
Interest
Cost of and Other
Products Financial
Revenue Sold SG&A Charges
$40,534 $23,176 $6,087 $316
Gain or (loss) on cash flow hedges:
Foreign Currency Exchange Contracts:
Amount reclassified from accumulated other
comprehensive income into income . . . . . . . . . . . . . . . . 15 31 28 —
Gain or (loss) on fair value hedges:
Interest Rate Swap Agreements:
Hedged Items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — 29
Derivatives designated as hedges . . . . . . . . . . . . . . . . . . . . — — — (29)
The following table summarizes the amounts of gain or (loss) on net investment hedges
recognized in Accumulated other comprehensive income (loss):
Years Ended
December 31,
Derivatives Net Investment Hedging Relationships 2018 2017
Euro-denominated long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $177 $(582)
Euro-denominated commercial paper . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168 (458)
Cross currency swap . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 —

Note 16. Other Liabilities

December 31,
2018 2017
Pension and other employee related . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,795 $1,986
Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,236 2,898
Environmental. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 580 369
Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 236 233
Product warranties and performance guarantees. . . . . . . . . . . . . . . . . . . . . . . 67 101
Asset retirement obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74 82
Deferred income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,264 76
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150 185
$6,402 $5,930

Note 17. Capital Stock

We are authorized to issue up to 2,000,000,000 shares of common stock, with a par value of $1.
Common shareowners are entitled to receive such dividends as may be declared by the Board of
Directors, are entitled to one vote per share, and are entitled, in the event of liquidation, to share
ratably in all the assets of Honeywell which are available for distribution to the common shareowners.
Common shareowners do not have preemptive or conversion rights. Shares of common stock issued
and outstanding or held in the treasury are not liable to further calls or assessments. There are no
restrictions on us relative to dividends or the repurchase or redemption of common stock.
In December 2017, the Board of Directors authorized the repurchase of up to $8 billion of
Honeywell common stock. Approximately $3.7 billion and $7.7 billion remained available as of
December 31, 2018, and December 31, 2017 for additional share repurchases.

66
 HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)

We repurchased approximately 26.5 million and 20.5 million shares of our common stock in 2018
and 2017, for $4,000 million and $2,889 million.
We are authorized to issue up to 40,000,000 shares of preferred stock, without par value, and can
determine the number of shares of each series, and the rights, preferences and limitations of each
series. At December 31, 2018, there was no preferred stock outstanding.

Note 18. Accumulated Other Comprehensive Income (Loss)

The changes in Accumulated other comprehensive income (loss) are provided in the tables below.
Comprehensive income (loss) attributable to noncontrolling interest consists predominantly of net
income.
Pre-tax Tax After-Tax
Year Ended December 31, 2018
Foreign exchange translation adjustment. . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (728) $ — $ (728)
Pensions and other postretirement benefit adjustments . . . . . . . . . . . . . . (727) 168 (559)
Changes in fair value of effective cash flow hedges . . . . . . . . . . . . . . . . . 102 (17) 85
$(1,353) $ 151 $(1,202)
Year Ended December 31, 2017
Foreign exchange translation adjustment. . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (37) $ — $ (37)
Pensions and other postretirement benefit adjustments . . . . . . . . . . . . . . 847 (170) 677
Changes in fair value of effective cash flow hedges . . . . . . . . . . . . . . . . . (194) 33 (161)
$ 616 $(137) $ 479
Year Ended December 31, 2016
Foreign exchange translation adjustment. . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (52) $ — $ (52)
Pensions and other postretirement benefit adjustments . . . . . . . . . . . . . . (336) 101 (235)
Changes in fair value of effective cash flow hedges . . . . . . . . . . . . . . . . . 134 (26) 108
$ (254) $ 75 $ (179)

Components of Accumulated Other Comprehensive Income (Loss)

December 31,
2018 2017
Cumulative foreign exchange translation adjustment . . . . . . . . . . . . . . . . . . . . . . . . . $(2,709) $(1,981)
Pensions and other postretirement benefit adjustments . . . . . . . . . . . . . . . . . . . . . . (761) (202)
Fair value of effective cash flow hedges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 (52)
$(3,437) $(2,235)

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 HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)

Changes in Accumulated Other Comprehensive Income (Loss) by Component

Changes in
Foreign Pension Fair Value of
Exchange and Other Effective
Translation Postretirement Cash Flow
Adjustment Adjustments Hedges Total
Balance at December 31, 2016 . . . . . . . . . . . . . . $(1,944) $(879) $ 109 $(2,714)
Other comprehensive income (loss) before
reclassifications . . . . . . . . . . . . . . . . . . . . . . . . . (37) 645 (101) 507
Amounts reclassified from accumulated
other comprehensive income (loss) . . . . . . — 32 (60) (28)
Net current period other comprehensive
income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . (37) 677 (161) 479
Balance at December 31, 2017 . . . . . . . . . . . . . . $(1,981) $(202) $ (52) $(2,235)
Other comprehensive income (loss) before
reclassifications . . . . . . . . . . . . . . . . . . . . . . . . . (685) (569) 89 (1,165)
Amounts reclassified from accumulated
other comprehensive income . . . . . . . . . . . . — (37) (4) (41)
Spin-off . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (43) 47 — 4
Net current period other comprehensive
income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . (728) (559) 85 (1,202)
Balance at December 31, 2018 . . . . . . . . . . . . . . $(2,709) $(761) $ 33 $(3,437)

Reclassifications Out of Accumulated Other Comprehensive Income (Loss)

Year Ended December 31, 2018
Affected Line in the Consolidated Statement of Operations
Selling,
Cost of Cost of General and Other
Product Products Services Admin. (Income)
Sales Sold Sold Expenses Expense Total
Amortization of Pension and Other
Postretirement Items:
Actuarial losses recognized . . . . . . . . . $— $— $— $— $ 45 $ 45
Prior service (credit) recognized. . . . . — — — — (99) (99)
Settlements and curtailments . . . . . . . — — — — 2 2
Losses (gains) on cash flow hedges. . . . . 10 30 6 2 (47) 1
Total before tax . . . . . . . . . . . . . . . . . . . . . . . . $10 $30 $ 6 $ 2 $(99) $(51)
Tax expense (benefit) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Total reclassifications for the period, net of tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(41)

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 HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)

Year Ended December 31, 2017

Affected Line in the Consolidated Statement of Operations
Selling,
Cost of Cost of General and Other
Product Products Services Admin. (Income)
Sales Sold Sold Expenses Expense Total
Amortization of Pension and Other
Postretirement Items:
Actuarial losses recognized . . . . . . . . $ — $ — $— $ — $ 110 $ 110
Prior service (credit) recognized . . . — — — — (103) (103)
Settlements and curtailments . . . . . . — — — — 24 24
Losses (gains) on cash flow hedges . . . (15) (22) (4) (28) — (69)
Total before tax . . . . . . . . . . . . . . . . . . . . . . . $(15) $(22) $ (4) $(28) $ 31 $ (38)
Tax expense (benefit) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Total reclassifications for the period, net of tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (28)

Note 19. Stock-Based Compensation Plans

The 2016 Stock Incentive Plan of Honeywell International Inc. and its Affiliates (2016 Plan) and
2016 Stock Plan for Non-Employee Directors of Honeywell International Inc (2016 Directors Plan) were
both approved by the shareowners at the Annual Meeting of Shareowners effective on April 25, 2016.
Following approval of both plans, we have not and will not grant any new awards under any previously
existing stock-based compensation plans. At December 31, 2018, there were 40,270,690, and 893,809
shares of Honeywell common stock available for future grants under terms of the 2016 Plan and 2016
Directors Plan, respectively.

Stock Options—The exercise price, term and other conditions applicable to each option granted
under our stock plans are generally determined by the Management Development and Compensation
Committee of the Board. The exercise price of stock options is set on the grant date and may not be
less than the fair market value per share of our stock on that date. The fair value is recognized as an
expense over the employee’s requisite service period (generally the vesting period of the award).
Options generally vest over a four-year period and expire after ten years.

The fair value of each option award is estimated on the date of grant using the Black-Scholes
option-pricing model. Expected volatility is based on implied volatilities from traded options on our
common stock and historical volatility of our common stock. We used a Monte Carlo simulation model
to derive an expected term which represents an estimate of the time options are expected to remain
outstanding. Such model uses historical data to estimate option exercise activity and post-vest
termination behavior. The risk-free rate for periods within the contractual life of the option is based on
the U.S. treasury yield curve in effect at the time of grant.

The following table summarizes the impact to the Consolidated Statement of Operations from
stock options:

Years Ended December 31,

2018 2017 2016
Compensation expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $64 $79 $87
Future income tax benefit recognized . . . . . . . . . . . . . . . . . . . . . . . . . . 13 17 29

The following table sets forth fair value per share information, including related weighted-average
assumptions, used to determine compensation cost.

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 HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)

Years Ended December 31,

2018 2017 2016
Weighted average fair value per share of options granted
during the year(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $23.63 $16.68 $15.59
Assumptions:
Expected annual dividend yield. . . . . . . . . . . . . . . . . . . . . . . . . 2.49% 2.81% 2.92%
Expected volatility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18.93% 18.96% 23.07%
Risk-free rate of return. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.71% 2.02% 1.29%
Expected option term (years). . . . . . . . . . . . . . . . . . . . . . . . . . . 4.95 5.04 4.97

(1) Estimated on date of grant using Black-Scholes option-pricing model.

The following table summarizes information about stock option activity for the three years ended
December 31, 2018:
Weighted
Average
Number of Exercise
Options Price
Outstanding at December 31, 2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,569,438 $ 70.76
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,281,053 103.51
Exercised. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (7,075,852) 57.41
Lapsed or canceled . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,107,339) 96.81
Outstanding at December 31, 2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28,667,300 79.57
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,098,569 125.16
Exercised. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (8,840,019) 62.34
Lapsed or canceled . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,516,557) 109.04
Outstanding at December 31, 2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,409,293 94.16
Spin related adjustment(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 989,158
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,303,722 148.48
Exercised. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,399,375) 78.29
Lapsed or canceled . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,824,217) 123.01
Outstanding at December 31, 2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,478,581 $ 97.83
Vested and expected to vest at December 31, 2018(2) . . . . . . . . . . . . . . . . . . . . 21,590,740 $ 96.27
Exercisable at December 31, 2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,073,120 $ 83.42

(1) Additional options granted to offset the dilutive impact of the spin-offs on outstanding options.
(2) Represents the sum of vested options of 14.1 million and expected to vest options of 7.5 million.
Expected to vest options are derived by applying the pre-vesting forfeiture rate assumption to total
outstanding unvested options of 8.6 million.

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 HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)

The following table summarizes information about stock options outstanding and exercisable at
December 31, 2018:
Options Outstanding Options Exercisable
Weighted Weighted
Weighted Average Aggregate Average Aggregate
Number Average Exercise Intrinsic Number Exercise Intrinsic
Range of Exercise prices Outstanding Life(1) Price Value Exercisable Price Value
$27.00–$64.99 . . . . . . . . . . . . . . 3,225,142 2.47 $ 53.34 $254 3,225,142 $ 53.34 $254
$65.00–$89.99 . . . . . . . . . . . . . . 4,788,204 4.72 79.22 253 4,788,204 79.22 253
$90.00–$99.99 . . . . . . . . . . . . . . 7,614,190 6.69 98.80 254 4,885,314 98.82 163
$100.00–$134.99 . . . . . . . . . . . . 4,155,389 8.12 119.20 54 1,155,376 118.67 16
$135.00–$156.00 . . . . . . . . . . . . 2,695,656 9.17 148.45 — 19,084 148.79 —
22,478,581 6.23 97.83 $815 14,073,120 $ 83.42 $686

(1) Average remaining contractual life in years.

There were 12,288,854, and 15,536,961 options exercisable at weighted average exercise prices
of $78.35 and $63.39 at December 31, 2017 and 2016.
The following table summarizes the financial statement impact from stock options exercised:
Years Ended December 31,
Options Exercised 2018 2017 2016
Intrinsic value(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $238 $620 $395
Tax benefit realized. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 221 137

(1) Represents the amount by which the stock price exceeded the exercise price of the options on the
date of exercise.
At December 31, 2018 there was $89 million of total unrecognized compensation cost related to
non-vested stock option awards which is expected to be recognized over a weighted-average period of
2.43 years. The total fair value of options vested during 2018, 2017 and 2016 was $73 million,
$87 million and $76 million.
Restricted Stock Units—Restricted stock unit (RSU) awards entitle the holder to receive one
share of common stock for each unit when the units vest. RSUs are issued to certain key employees
and directors as compensation at fair market value at the date of grant. RSUs typically become fully
vested over periods ranging from three to seven years and are payable in Honeywell common stock
upon vesting.

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 HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)

The following table summarizes information about RSU activity for the three years ended
December 31, 2018:
Weighted
Average
Number of Grant Date
Restricted Fair Value
Stock Units Per Share
Non-vested at December 31, 2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,981,588 $ 82.18
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,364,469 110.49
Vested . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,486,173) 68.58
Forfeited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (392,541) 88.88
Non-vested at December 31, 2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,467,343 94.17
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,274,791 129.71
Vested . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,289,892) 81.37
Forfeited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (505,415) 103.06
Non-vested at December 31, 2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,946,827 108.60
Spin related adjustment(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154,346
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,360,338 153.46
Vested . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (988,787) 91.68
Forfeited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (814,851) 117.40
Non-vested at December 31, 2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,657,873 $125.35

(1) Additional RSU grants to offset the dilutive impact of the spin-offs on non-vested RSUs.
As of December 31, 2018, there was approximately $218 million of total unrecognized
compensation cost related to non-vested RSUs granted under our stock plans which is expected to
be recognized over a weighted-average period of 3.05 years.
The following table summarizes the impact to the Consolidated Statement of Operations from
RSUs:
Years Ended December 31,
2018 2017 2016
Compensation expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $111 $97 $97
Future income tax benefit recognized. . . . . . . . . . . . . . . . . . . . . . 21 19 30

Note 20. Commitments and Contingencies

Environmental Matters
We are subject to various federal, state, local and foreign government requirements relating to the
protection of the environment. We believe that, as a general matter, our policies, practices and
procedures are properly designed to prevent unreasonable risk of environmental damage and personal
injury and that our handling, manufacture, use and disposal of hazardous substances are in
accordance with environmental and safety laws and regulations. However, mainly because of past
operations and operations of predecessor companies, we, like other companies engaged in similar
businesses, have incurred remedial response and voluntary cleanup costs for site contamination and
are a party to lawsuits and claims associated with environmental and safety matters, including past
production of products containing hazardous substances. Additional lawsuits, claims and costs
involving environmental matters are likely to continue to arise in the future.
With respect to environmental matters involving site contamination, we continually conduct
studies, individually or jointly with other potentially responsible parties, to determine the feasibility of
various remedial techniques. It is our policy to record appropriate liabilities for environmental matters

72
 HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)

when remedial efforts or damage claim payments are probable and the costs can be reasonably
estimated. Such liabilities are based on our best estimate of the undiscounted future costs required to
complete the remedial work. The recorded liabilities are adjusted periodically as remediation efforts
progress or as additional technical, regulatory or legal information becomes available. Given the
uncertainties regarding the status of laws, regulations, enforcement policies, the impact of other
potentially responsible parties, technology and information related to individual sites, we do not believe
it is possible to develop an estimate of the range of reasonably possible environmental loss in excess
of our recorded liabilities. We expect to fund expenditures for these matters from operating cash flow.
The timing of cash expenditures depends on a number of factors, including the timing of remedial
investigations and feasibility studies, the timing of litigation and settlements of remediation liability,
personal injury and property damage claims, regulatory approval of cleanup projects, remedial
techniques to be utilized and agreements with other parties.
The following table summarizes information concerning our recorded liabilities for environmental
costs:
Years Ended December 31,
2018 2017 2016
Beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 595 $ 511 $ 518
Accruals for environmental matters deemed probable and
reasonably estimable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 395 287 195
Environmental liability payments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . (218) (212) (228)
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (17) 9 26
End of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 755 $ 595 $ 511

Environmental liabilities are included in the following balance sheet accounts:

December 31,
2018 2017
Accrued liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $175 $226
Other liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 580 369
$755 $595

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.
In conjunction with the Resideo spin-off, the Company entered into an indemnification and
reimbursement agreement with a Resideo subsidiary, pursuant to which Resideo’s subsidiary has an
ongoing obligation to make cash payments to Honeywell in amounts equal to 90 percent of
Honeywell’s annual net spending for environmental matters at certain sites as defined in the
agreement. The amount payable to Honeywell in any given year is subject to a cap of $140 million, and
the obligation will continue until the earlier of December 31, 2043, or December 31 of the third
consecutive year during which the annual payment obligation has been less than $25 million.
Reimbursements associated with this indemnification agreement were $25 million in 2018 and offset
operating cash outflows incurred by the Company. As the Company records the accruals for
environmental matters deemed probable and reasonably estimable related to the sites covered by the
indemnification agreement, a corresponding receivable from Resideo for 90 percent of that accrual is
also recorded. This receivable amount recorded in 2018 subsequent to the spin-off was $50 million. As

73
 HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)

of December 31, 2018, Other Current Assets and Other Assets includes $140 million and $476 million
representing the short-term and long-term portion of the receivable amount due from Resideo under
the indemnification and reimbursement agreement.

Asbestos Matters
Honeywell is a defendant in asbestos related personal injury actions related to North American
Refractories Company (“NARCO”), which was sold in 1986, and Bendix Friction Materials (“Bendix”)
business, which was sold in 2014.
In the third quarter of 2018, the Company revised its accounting to correct the time period associated
with the determination of appropriate accruals for the legacy Bendix asbestos-related liability for unasserted
claims. The prior accounting treatment applied a five-year time horizon; the revised treatment reflects the
full term of epidemiological projections through 2059. Previously issued financial statements have been
revised for this correction with the following effects: The Company’s revised estimated asbestos-related
liabilities are now $2,610 million as of December 31, 2017, which is $1,087 million higher than the
Company’s prior estimate. The Company’s insurance recoveries for asbestos-related liabilities are
estimated to be $503 million as of December 31, 2017, which is $68 million higher than the Company’s
prior estimate. As of December 31, 2017, the net deferred income taxes impact was $245 million, with a
decrease to liabilities and increase to assets, and the cumulative impact on retained earnings was a
decrease of $774 million. For 2017 and 2016 Cost of services sold decreased $48 million and $5 million,
Tax expense increased $158 million and $2 million, and Net income decreased $110 million and $3 million.
This revision followed the Securities and Exchange Commission (SEC) Division of Corporation
Finance review of our Annual Report on Form 10-K for 2017, which included review of our prior
accounting for liability for unasserted Bendix-related asbestos claims. On September 13, 2018,
following completion of Corporation Finance’s review, the SEC Division of Enforcement advised that it
has opened an investigation related to this matter. Honeywell intends to provide requested information
and otherwise fully cooperate with the SEC staff. On October 31, 2018, David Kanefsky, a Honeywell
shareholder, filed a putative class action complaint alleging violations of the Securities Exchange Act of
1934 and Rule 10b-5 related to the prior accounting for Bendix asbestos claims. We believe the
Complaint has no merit.
The following tables summarize information concerning NARCO and Bendix asbestos related
balances:

Asbestos Related Liabilities

Year Ended December 31, Year Ended December 31, Year Ended December 31,
2018 2017 2016
Bendix NARCO Total Bendix NARCO Total Bendix NARCO Total

Beginning of year . . . . . . . . $1,703 $907 $2,610 $1,789 $919 $2,708 $1,793 $921 $2,714
Accrual for update to
estimated liability . . . . . . 197 32 229 199 31 230 203 9 212
Change in estimated cost
of future claims . . . . . . . . (72) — (72) (65) — (65) (10) — (10)
Update of expected
resolution values for
pending claims . . . . . . . . 1 — 1 3 — 3 4 — 4
Asbestos related liability
payments. . . . . . . . . . . . . . (206) (48) (254) (223) (43) (266) (201) (11) (212)
End of year. . . . . . . . . . . . . . $1,623 $891 $2,514 $1,703 $907 $2,610 $1,789 $919 $2,708

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 HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)

Insurance Recoveries for Asbestos Related Liabilities

Year Ended December 31, Year Ended December 31, Year Ended December 31,
2018 2017 2016
Bendix NARCO Total Bendix NARCO Total Bendix NARCO Total

Beginning of year . . . . . . . . . . . . . . . . . $191 $312 $503 $201 $319 $520 $222 $325 $547
Probable insurance recoveries
related to estimated liability. . . . . . 11 — 11 10 — 10 8 — 8
Insurance receipts for asbestos
related liabilities. . . . . . . . . . . . . . . . . (33) (5) (38) (20) (7) (27) (37) (6) (43)
Insurance receivables settlements
and write offs . . . . . . . . . . . . . . . . . . . 1 — 1 — — — 7 — 7
Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — — — — 1 — 1
End of year. . . . . . . . . . . . . . . . . . . . . . . $170 $307 $477 $191 $312 $503 $201 $319 $520

NARCO and Bendix asbestos related balances are included in the following balance sheet
accounts:
December 31,
2018 2017
Other current assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 40 $ 24
Insurance recoveries for asbestos related liabilities . . . . . . . . . . . . . . . . . . . . . . 437 479
$ 477 $ 503
Accrued liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 245 $ 350
Asbestos related liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,269 2,260
$2,514 $2,610

NARCO Products—Honeywell’s predecessor, Allied Corporation owned NARCO from 1979 to

1986. When the NARCO business was sold, Honeywell’s predecessor entered into a cross-indemnity
agreement with NARCO which included an obligation to indemnify the purchaser for asbestos claims.
Such claims arise primarily from alleged occupational exposure to asbestos-containing refractory brick
and mortar for high-temperature applications. NARCO ceased manufacturing these products in 1980,
and the first asbestos claims were filed in the tort system against NARCO in 1983. Claims filings and
related costs increased dramatically in the late 1990s through 2001, which led to NARCO filing for
bankruptcy in January 2002. Once NARCO filed for bankruptcy, all then current and future NARCO
asbestos claims were stayed against both NARCO and Honeywell pending the reorganization of
NARCO.
Following the bankruptcy filing, in December 2002 Honeywell recorded a total NARCO asbestos
liability of $3.2 billion, which was comprised of three components: (i) the estimated liability to settle pre-
bankruptcy petition NARCO claims and certain post-petition settlements ($2.2 billion, referred to as
“Pre-bankruptcy NARCO Liability”), (ii) the estimated liability related to then unasserted NARCO claims
for the period 2004 through 2018 ($950 million, referred to as “NARCO Trust Liability”), and (iii) other
NARCO bankruptcy-related obligations totaling $73 million.
When the NARCO Trust Liability of $950 million was established in 2002, the methodology for
estimating the potential liability was based primarily on: (a) epidemiological projections of the future
incidence of disease for the period 2004 through 2018, a fifteen-year period; (b) historical claims rates
in the tort system for the five-year period prior to the bankruptcy filing date; and (c) anticipated NARCO
Trust payment values set forth in the then current draft of the NARCO Trust Distribution Procedures.
The methodology required estimating, by disease, three critical inputs: (i) likely number of claims to be
asserted against the NARCO Trust in the future, (ii) percentage of those claims likely to receive
payment, and (iii) payment values. The Company utilized outside asbestos liability valuation specialists

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 HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)

to support our preparation of the NARCO Trust Liability estimate, which was based on a commonly
accepted methodology used by numerous bankruptcy courts addressing 524(g) trusts.
In 2002, when we first established our initial liability, NARCO asbestos claims resolution shifted
from the tort system to an anticipated NARCO Trust framework, where claims would be processed in
accordance with established NARCO Trust Distribution Procedures, including strict medical and
exposure criteria for a plaintiff to receive compensation. We believed at the time that the NARCO
Trust’s claims filing and resolution experience after the NARCO Trust became operational would be
significantly different from pre-bankruptcy tort system experience in light of these more rigorous claims
processing requirements in the NARCO Trust Distribution Procedures and Honeywell’s active oversight
of claims processing and approval. Given these anticipated differences, we believed that a 15-year
time period was the appropriate horizon for establishing a probable and reasonably estimable liability
for then unasserted NARCO claims as it represented our best estimate of the time period it would take
for the NARCO Trust to be approved by the Bankruptcy Court, become fully operational and generate
sufficiently reliable claims data (i.e., a data set which is statistically representative) to enable us to
update our NARCO Trust Liability.
The NARCO Trust Distribution Procedures were finalized in 2006, and the Company updated its
NARCO Trust Liability to reflect the final terms and payment values. The original 15-year period (from
2004 through 2018) for unasserted claims did not change as asbestos claims filings continued to be
stayed against both Honeywell and NARCO. The 2006 update resulted in a range of the estimated
liability for unasserted claims of $743 million to $961 million, and we believed that no amount within
this range was a better estimate than any other amount. In accordance with ASC 450–Contingencies
(“ASC 450”), we recorded the low end of the range of $743 million which resulted in a reduction of
$207 million in our NARCO Trust Liability.
NARCO emerged from bankruptcy on April 30, 2013, at which time a federally authorized 524(g)
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 Agreement and the NARCO Trust Distribution Procedures are the principal
documents setting forth the structure of the NARCO Trust. These documents establish Honeywell’s
evergreen funding obligations. 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 an annual cap of $145 million. 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. These
documents also establish the material operating rules for the NARCO Trust, including Honeywell audit
rights and the criteria claimants must meet to have a valid claim paid. These claims payment criteria
include providing the NARCO Trust with adequate medical evidence of the claimant’s asbestos-related
condition and credible evidence of exposure to a specific NARCO asbestos-containing product.
Further, the NARCO Trust is eligible to receive cash dividends from Harbison-Walker International Inc
(“HWI”), the reorganized and renamed entity that emerged, fully operational, from the NARCO
bankruptcy. The NARCO Trust is required to use any funding received from HWI to pay Annual
Contribution Claims until those funds are exhausted. It is only at this point that Honeywell’s funding
obligation to the Trust is triggered. Thus, there is an unrelated primary source for funding that affects
Honeywell’s funding of the NARCO Trust Liability.
Once operational, the NARCO Trust began to receive, process and pay claims that had been
previously stayed pending the Trust becoming operational. As the NARCO Trust began to pay claims
in 2014, we began to assert our on-going audit rights to review and monitor the claims processor’s
adherence to the established requirements of the NARCO Trust Distribution Procedures. While doing

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 HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)

so, we identified several issues with the way the Trust was implementing the NARCO Trust Distribution
Procedures. In 2015, Honeywell filed suit against the NARCO Trust in Bankruptcy Court alleging
breach of certain provisions of the NARCO Trust Agreement and NARCO Trust Distribution
Procedures. The parties agreed to dismiss the proceeding without prejudice pursuant to an 18-month
Standstill Agreement, which expired in October 2017. Notwithstanding its expiration, claims processing
continues, and Honeywell continues to negotiate and attempt to resolve remaining disputed issues
(that is, instances where Honeywell believes the NARCO Trust is not processing claims in accordance
with established NARCO Trust Distribution Procedures). Honeywell reserves the right to seek judicial
intervention should negotiations fail.
After the NARCO Trust became effective in 2013, the $743 million NARCO Trust Liability was then
comprised of:
(i) liability for unasserted claims; and
(ii) liability for claims asserted after the NARCO Trust became operational but not yet paid.
Although we know the number of claims filed with the NARCO Trust each year, we are not able to
determine at this time the portion of the NARCO Trust Liability which represents asserted versus
unasserted claims due to the lack of sufficiently reliable claims data because of the claims processing
issues described previously.
Honeywell maintained the $743 million accrual for NARCO Trust Liability, as there has not been
sufficiently reliable claims data history to enable us to update that liability.
As of December 31, 2018, our total NARCO asbestos liability of $891 million reflects Pre-
bankruptcy NARCO liability of $148 million and NARCO Trust Liability of $743 million. Through
December 31, 2018, Pre-bankruptcy NARCO Liability has been reduced by approximately $2 billion
since first established in 2002, largely related to settlement payments. The remaining Pre-bankruptcy
NARCO liability principally represents estimated amounts owed 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. The other NARCO bankruptcy obligations were paid in
2013 and no further liability is recorded.
As of December 31, 2018, Honeywell has not made any payments to the NARCO Trust for Annual
Contribution Claims as Annual Contribution Claims which have been paid since the Trust became
operational have been funded by cash dividends from HWI.
Honeywell continues to evaluate the appropriateness of the $743 million NARCO Trust Liability.
Despite becoming effective in 2013, the NARCO Trust has experienced delays in becoming fully
operational. Violations of the Trust Distribution Procedures and the resulting disputes and challenges, a
standstill pending dispute resolution, and limited claims payments, have all contributed to the lack of
sufficient normalized data based on actual claims processing experience in the Trust since it became
operational. As a result, we have not been able to further update the NARCO Trust Liability. The $743
million NARCO Trust Liability continues to be appropriate because of the unresolved pending claims in
the Trust, some portion of which will result in payouts in the future, and because new claims continue
to be filed with the NARCO Trust. When sufficiently reliable claims data exists, we will update our
estimate of the NARCO Trust Liability and it is possible that a material change may need to be
recognized.
Our insurance receivable of $307 million as of December 31, 2018, corresponding to the
estimated liability for asserted and unasserted 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

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 HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)

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.
Bendix Products—Bendix manufactured automotive brake linings 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 present information regarding Bendix related asbestos claims
activity:
Years Ended
December 31,
Claims Activity 2018 2017
Claims Unresolved at the beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,280 7,724
Claims Filed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,430 2,645
Claims Resolved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,501) (4,089)
Claims Unresolved at the end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,209 6,280

December 31,
Disease Distribution of Unresolved Claims 2018 2017
Mesothelioma and Other Cancer Claims . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,949 3,062
Nonmalignant Claims . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,260 3,218
Total Claims . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,209 6,280

Honeywell has experienced average resolution values per claim excluding legal costs as follows:
Years Ended December 31,
2018 2017 2016 2015 2014
(in whole dollars)
Malignant claims . . . . . . . . . . . . . . . . . . . . . $55,300 $56,000 $44,000 $44,000 $53,500
Nonmalignant claims. . . . . . . . . . . . . . . . . . $ 4,700 $ 2,800 $ 4,485 $ 100 $ 120
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 asserted
(claims filed as of the financial statement date) and unasserted Bendix-related asbestos claims and
excludes the Company’s legal fees to defend such asbestos claims which will continue to be expensed
by the Company as they are incurred. We have valued Bendix asserted and unasserted claims using
average resolution values for the previous five years. We update the resolution values used to estimate
the cost of Bendix asserted and unasserted claims during the fourth quarter each year.
Honeywell reflects the inclusion of all years of epidemiological disease projection through 2059
when estimating the liability for unasserted Bendix-related asbestos claims. Such liability for
unasserted Bendix-related asbestos claims is based on historic and anticipated claims filing experience
and dismissal rates, disease classifications, and resolution values in the tort system for the previous
five years.
Our insurance receivable corresponding to the liability for settlement of asserted and unasserted
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

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 HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)

solvency of our insurers, judicial determinations relevant to our insurance programs, and our
consideration of the impacts of any settlements reached with our insurers.
In conjunction with the Garrett spin-off, the Company entered into an indemnification and
reimbursement agreement with a Garrett subsidiary, pursuant to which Garrett’s subsidiary will have an
obligation to make cash payments to Honeywell in amounts equal to (i) 90% of Honeywell’s asbestos-
related liability payments primarily related to the Bendix business in the United States, as well as
certain environmental-related liability payments and accounts payable and non-United States
asbestos-related liability payments, in each case related to legacy elements of the Garrett business,
including the legal costs of defending and resolving such liabilities, less (ii) 90% of Honeywell’s net
insurance receipts and, as may be applicable, certain other recoveries associated with such liabilities.
The amount payable to Honeywell in respect of such liabilities arising in any given year will be subject
to a cap of approximately Euro 150 million (equivalent to $175 million at the time the indemnification
agreement was entered into). The obligation will continue until the earlier of December 31, 2048, or
December 31 of the third consecutive year during which the annual indemnification obligation has been
less than the Euro equivalent, at the fixed exchange rate at time of the indemnification agreement, of
$25 million. Reimbursements associated with this indemnification agreement were $42 million in 2018.
As the Company records the accruals for matters covered by the indemnification agreement, a
corresponding receivable from Garrett is recorded for 90 percent of that accrual as determined by the
terms of the agreement. In 2018 subsequent to the spin-off, the Company recorded a reversal to the
receivable for $17 million in the fourth quarter of 2018. As of December 31, 2018, Other Current Assets
and Other Assets includes $171 million and $1,058 million representing the short-term and long-term
portion of the receivable amount due from Garrett under the indemnification and reimbursement
agreement.

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 September 2011, the UAW and certain
Honeywell retirees (Plaintiffs) filed a suit in the Eastern District of Michigan (the District Court) alleging
that a series of Master Collective Bargaining Agreements (MCBAs) between Honeywell and the UAW
provided the retirees with rights to lifetime, vested healthcare benefits that could never be changed or
reduced. Plaintiffs alleged that Honeywell had violated those vested rights by implementing express
limitations (CAPS) on the amount Honeywell contributed toward healthcare coverage for the retirees.
Honeywell subsequently answered the UAW’s complaint and asserted counterclaims, including for
breach of implied warranty.
Between 2014 and 2015, Honeywell began enforcing the CAPS against former employees. In
response, the UAW and certain of the Plaintiffs filed a motion seeking a ruling that the MCBAs do not
limit Honeywell’s obligation to contribute to healthcare coverage for those retirees.
On March 29, 2018, the District Court issued its opinion resolving all pending summary judgment
motions, except for Honeywell’s counterclaim for breach of implied warranty, which has since been
dismissed without prejudice.

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 HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)

In the opinion, the District Court held that the MCBAs do not promise retirees vested, lifetime
benefits that survive expiration of the MCBAs. Based on this ruling, Honeywell terminated the retirees
healthcare coverage benefits altogether as of July 31, 2018. In response, the UAW filed a motion to
enjoin Honeywell from completely terminating coverage as of July 31, 2018, arguing that the CAPS
themselves are vested and that Honeywell must continue to provide retiree medical benefits at the
capped level. On July 28, 2018, the District Court denied the UAW’s motion and entered a final
judgment consistent with its March 2018 ruling. The UAW has appealed this decision to the Sixth
Circuit Court of Appeals. Honeywell believes the District Court’s ruling will be upheld.
In the March 2018 opinion, the District Court also held that Honeywell is obligated under the
MCBAs to pay the “full premium” for retiree healthcare rather than the capped amount. Based on this
ruling, Honeywell would be required to pay monetary damages to retirees for any past years in which
Honeywell paid less than the “full premium” of their healthcare coverage. Such damages would be
limited, depending on the retiree group, to a two to three-year period ending when the 2016 MCBA
expired, and Honeywell would have no ongoing obligation to continue funding healthcare coverage for
subsequent periods. Honeywell has appealed the District Court’s ruling on this “full premium” damages
issue, and believes that the Sixth Circuit Court of Appeals will reverse the District Court on that issue.
In the event the Sixth Circuit were to sustain the District Court’s ruling on this issue, Honeywell would
be liable for damages of at least $12 million.
Given the uncertainty inherent in litigation and investigations (including the specific matter
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.

Warranties and Guarantees

In the normal course of business we issue product warranties and product performance
guarantees. We accrue for the estimated cost of product warranties and performance guarantees
based on contract terms and historical experience at the time of sale. Adjustments to initial obligations
for warranties and guarantees are made as changes to the obligations become reasonably estimable.
The following table summarizes information concerning our recorded obligations for product warranties
and product performance guarantees.
Years Ended
December 31,
2018 2017 2016
Beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 408 $ 487 $ 416
Accruals for warranties/guarantees issued during the year . . . . . 208 215 326
Adjustment of pre-existing warranties/guarantees . . . . . . . . . . . . . . (78) (27) (40)
Settlement of warranty/guarantee claims . . . . . . . . . . . . . . . . . . . . . . (228) (267) (215)
End of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 310 $ 408 $ 487

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 HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)

Product warranties and product performance guarantees are included in the following balance
sheet accounts:
December 31,
2018 2017
Accrued liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $243 $307
Other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 101
$310 $408

Note 21. Pension and Other Postretirement Benefits

We sponsor a number of both funded and unfunded U.S. and non-U.S. defined benefit pension
plans. Pension benefits for many of our U.S. employees are provided through non-contributory,
qualified and non-qualified defined benefit plans. All non-union hourly and salaried employees joining
Honeywell for the first time after December 31, 2012, are not eligible to participate in Honeywell’s U.S.
defined benefit pension plans. We also sponsor defined benefit pension plans which cover non-U.S.
employees who are not U.S. citizens, in certain jurisdictions, principally the UK, Netherlands, Germany,
and Canada. Other pension plans outside of the U.S. are not material to the Company either
individually or in the aggregate.
We also sponsor postretirement benefit plans that provide health care benefits and life insurance
coverage mainly to U.S. eligible retirees. None of Honeywell’s U.S. employees are eligible for a retiree
medical subsidy from the Company. In addition, the vast majority of Honeywell’s U.S. retirees either
have no Company subsidy or have a fixed-dollar subsidy amount. This significantly limits our exposure
to the impact of future health care cost increases. The retiree medical and life insurance plans are not
funded. Claims and expenses are paid from our operating cash flow.

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 HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)

The following tables summarize the balance sheet impact, including the benefit obligations, assets
and funded status associated with our significant pension and other postretirement benefit plans.
Pension Benefits
U.S. Plans Non-U.S. Plans
2018 2017 2018 2017
Change in benefit obligation:
Benefit obligation at beginning of year . . . . . . . . . . . . . . . . . . . . . $18,151 $17,414 $7,019 $6,483
Service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140 172 26 40
Interest cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 573 586 143 147
Plan amendments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — 30 (1)
Actuarial (gains) losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,111) 1,234 (356) (24)
Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,137) (1,146) (264) (253)
Settlements and curtailments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (109) (9) —
Foreign currency translation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — (342) 614
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (475) — (65) 13
Benefit obligation at end of year. . . . . . . . . . . . . . . . . . . . . . . . . . . 16,141 18,151 6,182 7,019
Change in plan assets:
Fair value of plan assets at beginning of year. . . . . . . . . . . . . . 18,985 16,814 7,151 6,120
Actual return on plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (303) 3,287 (173) 539
Company contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 139 137 161
Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,137) (1,146) (264) (253)
Settlements and curtailments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (109) — —
Foreign currency translation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — (378) 569
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (470) — 8 15
Fair value of plan assets at end of year . . . . . . . . . . . . . . . . . . . 17,109 18,985 6,481 7,151
Funded status of plans. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 968 $ 834 $ 299 $ 132
Amounts recognized in Consolidated Balance Sheet consist of:
Prepaid pension benefit cost(1). . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,295 $ 1,205 $1,094 $ 944
Accrued pension liabilities—current(2) . . . . . . . . . . . . . . . . . . . . . . (27) (27) (12) (12)
Accrued pension liabilities—noncurrent(3) . . . . . . . . . . . . . . . . . . . (300) (344) (783) (800)
Net amount recognized . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 968 $ 834 $ 299 $ 132

(1) Included in Other assets on Consolidated Balance Sheet

(2) Included in Accrued liabilities on Consolidated Balance Sheet
(3) Included in Other liabilities on Consolidated Balance Sheet

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 HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)

Other
Postretirement
Benefits
2018 2017
Change in benefit obligation:
Benefit obligation at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 530 $ 492
Service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — —
Interest cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 19
Plan amendments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (34) 91
Actuarial (gains) losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (110) (14)
Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (37) (58)
Benefit obligation at end of year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 364 530
Change in plan assets:
Fair value of plan assets at beginning of year. . . . . . . . . . . . . . . . . . . . . . — —
Actual return on plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — —
Company contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — —
Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — —
Fair value of plan assets at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . — —
Funded status of plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(364) $(530)
Amounts recognized in Consolidated Balance Sheet consist of:
Accrued liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (62) $ (62)
Postretirement benefit obligations other than pensions(1) . . . . . . . . . . . . (302) (468)
Net amount recognized. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(364) $(530)

(1) Excludes non-U.S. plans of $42 million and $44 million in 2018 and 2017.
Amounts recognized in Accumulated other comprehensive (income) loss associated with our
significant pension and other postretirement benefit plans at December 31, 2018 and 2017 are as
follows:
Pension Benefits
U.S. Plans Non-U.S. Plans
2018 2017 2018 2017
Prior service (credit) cost. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(218) $(268) $ 20 $ (13)
Net actuarial loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 860 248 600 427
Net amount recognized . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 642 $ (20) $620 $414

Other
Postretirement
Benefits
2018 2017
Prior service (credit) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(226) $(244)
Net actuarial (gain) loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4) 109
Net amount recognized. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(230) $(135)

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 HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)

The components of net periodic benefit (income) cost and other amounts recognized in Other
comprehensive (income) loss for our significant pension and other postretirement benefit plans include
the following components:
Pension Benefits
U.S. Plans Non-U.S. Plans
Net Periodic Benefit Cost 2018 2017 2016 2018 2017 2016
Service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 140 $ 172 $ 191 $ 26 $ 40 $ 47
Interest cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 573 586 600 143 147 179
Expected return on plan assets. . . . . . . . . . . . . . (1,426) (1,262) (1,226) (443) (411) (377)
Amortization of prior service (credit) cost. . . . . (43) (43) (43) (1) (1) (3)
Recognition of actuarial losses . . . . . . . . . . . . . . — 41 27 37 46 246
Settlements and curtailments . . . . . . . . . . . . . . . . — 18 — (3) — (7)
Net periodic benefit (income) cost . . . . . . . . . . . $ (756) $ (488) $ (451) $(241) $(179) $ 85

Other Changes in Plan Assets and

Benefits Obligations Recognized in U.S. Plans Non-U.S. Plans
Other Comprehensive (Income) Loss 2018 2017 2016 2018 2017 2016
Actuarial (gains) losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $619 $ (792) $ 121 $250 $(153) $ 447
Prior service cost (credit) . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — 30 (1) —
Prior service credit recognized during year . . . . . . . . . . 43 43 43 4 1 10
Actuarial losses recognized during year . . . . . . . . . . . . . — (59) (27) (37) (46) (246)
Foreign currency translation. . . . . . . . . . . . . . . . . . . . . . . . . — — — (34) 43 (83)
Total recognized in other comprehensive
(income) loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $662 $ (808) $ 137 $213 $(156) $ 128
Total recognized in net periodic benefit (income)
cost and other comprehensive (income) loss . . $ (94) $(1,296) $(314) $ (28) $(335) $ 213

The estimated prior service (credit) for pension benefits that will be amortized from Accumulated
other comprehensive (income) loss into net periodic benefit (income) cost in 2019 are expected to be
($42) million and $0 million for U.S. and non-U.S. pension plans.
Other Postretirement Benefits
Years Ended December 31,
Net Periodic Benefit Cost 2018 2017 2016
Service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ — $ — $ —
Interest cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 19 20
Amortization of prior service (credit). . . . . . . . . . . . . . . . . . . . . . . . . . . . (52) (58) (76)
Recognition of actuarial losses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 13 22
Net periodic benefit (income) cost. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(34) $(26) $(34)

Other Changes in Plan Assets and Benefits Obligations Years Ended December 31,
Recognized in Other Comprehensive (Income) Loss 2018 2017 2016
Actuarial (gains) losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(110) $ (14) $(31)
Prior service cost (credit) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (34) 91 27
Prior service credit recognized during year. . . . . . . . . . . . . . . . . . . . . . . . . 52 58 76
Actuarial losses recognized during year. . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) (13) (22)
Total recognized in other comprehensive (income) loss . . . . . . . . $ (95) $122 $ 50
Total recognized in net periodic benefit (income) cost and other
comprehensive (income) loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(129) $ 96 $ 16

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 HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)

The estimated net loss and prior service (credit) for other postretirement benefits that will be
amortized from Accumulated other comprehensive (income) loss into net periodic benefit (income) cost
in 2019 are expected to be $0 and ($62) million.
Major actuarial assumptions used in determining the benefit obligations and net periodic benefit
(income) cost for our significant benefit plans are presented in the following table as weighted
averages.
Pension Benefits
U.S. Plans Non-U.S. Plans
2018 2017 2016 2018 2017 2016
Actuarial assumptions used to determine benefit
obligations as of December 31:
Discount rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.35% 3.68% 4.20% 2.63% 2.36% 2.51%
Expected annual rate of compensation
increase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.25% 4.50% 4.50% 2.46% 0.73% 2.17%
Actuarial assumptions used to determine net
periodic benefit (income) cost for years ended
December 31:
Discount rate—benefit obligation . . . . . . . . . . . . . . 3.68% 4.20% 4.46% 2.36% 2.51% 3.49%
Discount rate—service cost. . . . . . . . . . . . . . . . . . . 3.77% 4.42% 4.69% 2.20% 2.14% 2.92%
Discount rate—interest cost . . . . . . . . . . . . . . . . . . 3.27% 3.49% 3.59% 2.08% 2.19% 3.07%
Expected rate of return on plan assets. . . . . . . . 7.75% 7.75% 7.75% 6.23% 6.43% 6.65%
Expected annual rate of compensation
increase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.50% 4.50% 4.48% 2.49% 2.17% 2.11%
Other
Postretirement
Benefits
2018 2017 2016
Actuarial assumptions used to determine benefit obligations as of
December 31:
Discount rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.07% 3.39% 3.65%
Actuarial assumptions used to determine net periodic benefit cost for
years ended December 31:
Discount rate(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.39% 3.60% 3.80%

(1) Discount rate was 3.65% for 1/1/17 through 2/28/17. Rate was changed to 3.60% for the remainder
of 2017 due to Plan remeasurement as of 3/1/17.
The discount rate for our U.S. pension and other postretirement benefits plans reflects the current
rate at which the associated liabilities could be settled at the measurement date of December 31. To
determine discount rates for our U.S. pension and other postretirement benefit plans, we use a
modeling process that involves matching the expected cash outflows of our benefit plans to a yield
curve constructed from a portfolio of high quality, fixed-income debt instruments. We use the single
weighted-average yield of this hypothetical portfolio as a discount rate benchmark. We utilize a full
yield curve approach in the estimation of the service and interest cost components of net periodic
pension benefit (income) for our significant pension plans. This approach applies the specific spot rates
along the yield curve used in the determination of the pension benefit obligation to their underlying
projected cash flows and provides a more precise measurement of service and interest costs by
improving the correlation between projected cash flows and their corresponding spot rates. For our
U.S. pension plans, the single weighted average spot rates used to determine service and interest
costs for 2019 are 4.47% and 3.94%. The discount rate used to determine the other postretirement
benefit obligation is lower principally due to a shorter expected duration of other postretirement plan
obligations as compared to pension plan obligations.

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 HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)

Our expected rate of return on U.S. plan assets of 6.75% at December 31, 2018 was down from
7.75% at December 31, 2017 reflecting a re-balancing of assets to more fixed income during 2018. Our
asset return assumption is based on historical plan asset returns over varying long-term periods
combined with current market conditions and broad asset mix considerations with a focus on long-term
trends rather than short-term market conditions. We review the expected rate of return on an annual
basis and revise it as appropriate.
For non-U.S. benefit plans actuarial assumptions reflect economic and market factors relevant to
each country.

Pension Benefits
The following amounts relate to our significant pension plans with accumulated benefit obligations
exceeding the fair value of plan assets.
December 31,
U.S. Plans Non-U.S. Plans
2018 2017 2018 2017
Projected benefit obligation . . . . . . . . . . . . . . . . . . . . . . . . . $327 $371 $1,668 $1,082
Accumulated benefit obligation . . . . . . . . . . . . . . . . . . . . . $321 $360 $1,604 $1,018
Fair value of plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . — — $ 873 $ 269
Accumulated benefit obligation for our U.S. defined benefit pension plans were $16.1 billion and
$18.1 billion and for our Non-U.S. defined benefit pension plans were $6.1 billion and $6.9 billion at
December 31, 2018 and 2017.
Our asset investment strategy for our U.S. pension plans focuses on maintaining a diversified
portfolio using various asset classes in order to achieve our long-term investment objectives on a risk
adjusted basis. During 2018, we began to employ a de-risking strategy which increases the matching
characteristics of our assets relative to our obligation. Our long-term target allocations are as follows:
45%-70% fixed income securities and cash, 35%-50% equity securities, 5%-10% real estate
investments, and 10%-20% other types of investments. Equity securities include publicly-traded stock
of companies located both inside and outside the United States. Fixed income securities include
corporate bonds of companies from diversified industries, mortgage-backed securities, and U.S.
Treasuries. Real estate investments include direct investments in commercial properties and
investments in real estate funds. Other types of investments include investments in private equity
and hedge funds that follow several different strategies. We review our assets on a regular basis to
ensure that we are within the targeted asset allocation ranges and, if necessary, asset balances are
adjusted back within target allocations.
Our non-U.S. pension assets are typically managed by decentralized fiduciary committees with the
Honeywell Corporate Investments group providing funding and investment guidance. Our non-U.S.
investment policies are different for each country as local regulations, funding requirements, and financial
and tax considerations are part of the funding and investment allocation process in each country.
In accordance with ASU 2015-07, “Fair Value Measurement (Topic 820)”, certain investments that
are measured at fair value using the net asset value (NAV) per share (or its equivalent) practical
expedient have not been classified in the fair value hierarchy. The fair value amounts presented in the
following tables are intended to permit reconciliation of the fair value hierarchy to the amounts
presented for the total pension benefits plan assets.

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 HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)

The fair values of both our U.S. and non-U.S. pension plans assets by asset category are as
follows:
U.S. Plans
December 31, 2018
Total Level 1 Level 2 Level 3
Equities:
Honeywell common stock . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,438 $2,438 — —
U.S. equities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,365 1,365 — —
Non-U.S. equities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 753 753 — —
Real estate investment trusts . . . . . . . . . . . . . . . . . . . . . . 244 244 — —
Fixed income:
Short term investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . 877 877 — —
Government securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 993 — 993 —
Corporate bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,824 — 6,824 —
Mortgage/Asset-backed securities . . . . . . . . . . . . . . . . . . 1,032 — 1,032 —
Insurance contracts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 — 8 —
Direct investments:
Direct private investments . . . . . . . . . . . . . . . . . . . . . . . . . 829 — — 829
Real estate properties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 657 — — 657
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,020 $5,677 $8,857 $1,486
Investments measured at NAV:
Private funds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 931
Real estate funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
Hedge funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Commingled Funds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101
Total assets at fair value. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $17,109

U.S. Plans
December 31, 2017
Total Level 1 Level 2 Level 3
Equities:
Honeywell common stock. . . . . . . . . . . . . . . . . . . . . . . . . $ 2,832 $ 2,832 $ — $ —
U.S. equities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,573 3,573 — —
Non-U.S. equities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,631 2,618 13 —
Real estate investment trusts . . . . . . . . . . . . . . . . . . . . . 265 265 — —
Fixed income:
Short term investments . . . . . . . . . . . . . . . . . . . . . . . . . . . 919 919 — —
Government securities. . . . . . . . . . . . . . . . . . . . . . . . . . . . 428 — 428 —
Corporate bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,052 — 5,052 —
Mortgage/Asset-backed securities . . . . . . . . . . . . . . . . . 742 — 742 —
Insurance contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 — 8 —
Direct investments:
Direct private investments . . . . . . . . . . . . . . . . . . . . . . . . 752 — — 752
Real estate properties . . . . . . . . . . . . . . . . . . . . . . . . . . . . 597 — — 597
Total. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,799 $10,207 $6,243 $1,349
Investments measured at NAV:
Private funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 901
Real estate funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84
Hedge funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Commingled funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 181
Total assets at fair value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $18,985

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 HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)

Non-U.S. Plans
December 31, 2018
Total Level 1 Level 2 Level 3
Equities:
U.S. equities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 429 $297 132 —
Non-U.S. equities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,356 44 1,312 —
Fixed income:
Short-term investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189 189 — —
Government securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,572 — 2,572 —
Corporate bonds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,468 — 1,468 —
Mortgage/Asset-backed securities . . . . . . . . . . . . . . . . . . . . 60 — 60 —
Insurance contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137 — 137 —
Investments in private funds:
Private funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 — 12 34
Real estate funds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144 — — 144
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,401 $530 $5,693 $178
Investments measured at NAV:
Private funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Real estate funds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
Total assets at fair value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $6,481

Non-U.S. Plans
December 31, 2017
Total Level 1 Level 2 Level 3
Equities:
U.S. equities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 573 $420 $ 153 $ —
Non-U.S. equities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,801 99 2,702 —
Fixed income:
Short-term investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 238 238 — —
Government securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,685 — 1,685 —
Corporate bonds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,364 — 1,364 —
Mortgage/Asset-backed securities . . . . . . . . . . . . . . . . . . . . 47 — 47 —
Insurance contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157 — 157 —
Investments in private funds:
Private funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 — 21 31
Real estate funds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149 — — 149
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,066 $757 $6,129 $180
Investments measured at NAV:
Private funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Real estate funds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
Total assets at fair value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $7,151

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 HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)

The following table summarizes changes in the fair value of Level 3 assets for both U.S. and
Non-U.S. plans:
U.S. Plans Non-U.S. Plans
Direct
Private Real Estate Private Real Estate
Investments Properties Funds Funds
Balance at December 31, 2016 . . . . . . . . . . . . . . . . . . . . . . $ 609 $ 664 $23 $124
Actual return on plan assets:
Relating to assets still held at year-end . . . . . . . . . . 33 2 5 26
Relating to assets sold during the year . . . . . . . . . . . 51 31 — —
Purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 148 18 6 —
Sales and settlements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (89) (118) (3) (1)
Balance at December 31, 2017 . . . . . . . . . . . . . . . . . . . . . . 752 597 31 149
Actual return on plan assets:
Relating to assets still held at year-end . . . . . . . . . . 36 33 1 (4)
Relating to assets sold during the year . . . . . . . . . . . 65 2 — —
Purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95 47 2 —
Sales and settlements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (119) (22) — (1)
Balance at December 31, 2018 . . . . . . . . . . . . . . . . . . . . . . $ 829 $ 657 $34 $144

The Company enters into futures contracts to gain exposure to certain markets. Sufficient cash or
cash equivalents are held by our pension plans to cover the notional value of the futures contracts. At
December 31, 2018 and 2017, our U.S. plans had contracts with notional amounts of $2,808 million
and $4,188 million. At December 31, 2018 and 2017, our non-U.S. plans had contracts with notional
amounts of $111 million and $133 million. In both our U.S. and non-U.S. pension plans, the notional
derivative exposure is related to outstanding equity and fixed income futures contracts.
Common stocks, preferred stocks, real estate investment trusts, and short-term investments are
valued at the closing price reported in the active market in which the individual securities are traded.
Corporate bonds, mortgages, asset-backed securities, and government securities are valued either by
using pricing models, bids provided by brokers or dealers, quoted prices of securities with similar
characteristics or discounted cash flows and as such include adjustments for certain risks that may not
be observable such as credit and liquidity risks. Certain securities are held in collective trust funds
which are valued using net asset values provided by the administrators of the funds. Investments in
private equity, debt, real estate and hedge funds and direct private investments are valued at
estimated fair value based on quarterly financial information received from the investment advisor
and/or general partner. Investments in real estate properties are valued on a quarterly basis using the
income approach. Valuation estimates are periodically supplemented by third party appraisals.
Our funding policy for qualified defined benefit pension plans is to contribute amounts at least
sufficient to satisfy regulatory funding standards. In 2018, 2017, and 2016, we were not required to
make contributions to our U.S. pension plans and no contributions were made. We are not required to
make any contributions to our U.S. pension plans in 2019. In 2018, contributions of $115 million were
made to our non-U.S. pension plans to satisfy regulatory funding requirements. In 2019, we expect to
make contributions of cash and/or marketable securities of approximately $42 million to our non-U.S.
pension plans to satisfy regulatory funding standards. Contributions for both our U.S. and non-U.S.
pension plans do not reflect benefits paid directly from Company assets.

89
 HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)

Benefit payments, including amounts to be paid from Company assets, and reflecting expected
future service, as appropriate, are expected to be paid as follows:
U.S. Plans Non-U.S. Plans
2019. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,177 $ 254
2020. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,171 259
2021. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,167 266
2022. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,163 273
2023. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,160 280
2024-2028 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,564 1,519

Other Postretirement Benefits

December 31,
2018 2017
Assumed health care cost trend rate:
Health care cost trend rate assumed for next year . . . . . . . . . . . . . . . . . . . . . 7.00% 6.50%
Rate that the cost trend rate gradually declines to. . . . . . . . . . . . . . . . . . . . . . 5.00% 5.00%
Year that the rate reaches the rate it is assumed to remain at . . . . . . . . . . 2029 2023
The assumed health care cost trend rate has a significant effect on the amounts reported. A one-
percentage-point change in the assumed health care cost trend rate would have the following effects:
1 percentage point
Increase Decrease
Effect on total of service and interest cost components . . . . . . . . . . . . . . . . $ 1 $ (1)
Effect on postretirement benefit obligation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $18 $(14)
Benefit payments reflecting expected future service, as appropriate, are expected to be paid as
follows:
Without Impact of Net of
Medicare Subsidy Medicare Subsidy
2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 52 $48
2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 44
2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 40
2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 37
2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 34
2024-2028 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109 98

Note 22. 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 segment income (loss) before taxes excluding general corporate
unallocated expense, other income (expense), interest and other financial charges, stock compensa-
tion expenses, pension and other postretirement benefits (expense), stock compensation expense and
repositioning and other charges.

90
 HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)

Years Ended December 31,

2018 2017 2016
Net Sales
Aerospace
Product . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $10,415 $10,067 $ 9,926
Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,078 4,712 4,825
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,493 14,779 14,751
Honeywell Building Technologies
Product . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,868 8,396 8,250
Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,430 1,381 1,240
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,298 9,777 9,490
Performance Materials and Technologies
Product . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,589 8,521 8,725
Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,085 1,818 1,711
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,674 10,339 10,436
Safety and Productivity Solutions
Product . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,976 5,333 4,461
Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 361 306 164
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,337 5,639 4,625
$41,802 $40,534 $39,302
Depreciation and amortization
Aerospace . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 281 $ 279 $ 275
Honeywell Building Technologies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112 118 107
Performance Materials and Technologies . . . . . . . . . . . . . . . . . . . . . . . 452 441 399
Safety and Productivity Solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 216 219 188
Corporate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 58 61
$ 1,116 $ 1,115 $ 1,030
Segment Profit
Aerospace . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,503 $ 3,288 $ 2,991
Honeywell Building Technologies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,608 1,650 1,621
Performance Materials and Technologies . . . . . . . . . . . . . . . . . . . . . . . 2,328 2,206 2,112
Safety and Productivity Solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,032 852 680
Corporate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (281) (306) (218)
$ 8,190 $ 7,690 $ 7,186
Capital expenditures
Aerospace . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 308 $ 380 $ 331
Honeywell Building Technologies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125 88 92
Performance Materials and Technologies . . . . . . . . . . . . . . . . . . . . . . . 254 303 473
Safety and Productivity Solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78 79 55
Corporate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 181 144
$ 828 $ 1,031 $ 1,095

December 31,
2018 2017 2016
Total Assets
Aerospace . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $11,234 $11,769 $11,426
Honeywell Building Technologies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,010 10,592 10,392
Performance Materials and Technologies . . . . . . . . . . . . . . . . . . . . . . . 17,827 17,203 15,835
Safety and Productivity Solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,886 9,456 8,951
Corporate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,816 10,450 7,962
$57,773 $59,470 $54,566

91
 HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)

A reconciliation of segment profit to consolidated income from continuing operations before taxes
are as follows:
Years Ended December 31,
2018 2017 2016
Segment Profit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 8,190 $7,690 $7,186
Interest and other financial charges . . . . . . . . . . . . . . . . . . . . . . . . . . (367) (316) (338)
Stock compensation expense(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (175) (176) (184)
Pension ongoing income (expense)(2) . . . . . . . . . . . . . . . . . . . . . . . . 992 713 601
Pension mark-to-market expense(2) . . . . . . . . . . . . . . . . . . . . . . . . . . (37) (87) (273)
Other postretirement income (expense)(2) . . . . . . . . . . . . . . . . . . . . . 32 21 32
Repositioning and other charges(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,091) (973) (690)
Other(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (57) 78 118
Income before taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7,487 $6,950 $6,452

(1) Amounts included in Selling, general and administrative expenses.

(2) Amounts included in Cost of products and services sold and Selling, general and administrative
expenses (service costs) and Other income/expense (non-service cost components).
(3) Amounts included in Cost of products and services sold, Selling, general and administrative
expenses, and Other income/expense.
(4) Amounts include the other components of Other income/expense not included within other
categories in this reconciliation. Equity income/loss of affiliated companies is included in segment
profit.

Note 23. Geographic Areas—Financial Data

Net Sales(1) Long-lived Assets(2)
Years Ended December 31, December 31,
2018 2017 2016 2018 2017 2016
United States . . . . . . . . . . . . . . . . . . $23,841 $22,722 $22,652 $3,601 $3,604 $3,744
Europe . . . . . . . . . . . . . . . . . . . . . . . . 10,066 10,400 9,966 571 927 741
Other International . . . . . . . . . . . . . 7,895 7,412 6,684 1,124 1,395 1,308
$41,802 $40,534 $39,302 $5,296 $5,926 $5,793

(1) Sales between geographic areas approximate market and are not significant. Net sales are
classified according to their country of origin. Included in United States net sales are export sales
of $5,293 million, $4,974 million and $5,290 million in 2018, 2017 and 2016.
(2) Long-lived assets are comprised of property, plant and equipment - net.

92
 HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)

Note 24. Supplemental Cash Flow Information

Years Ended December 31,
2018 2017 2016
Net payments for repositioning and other charges:
Severance and exit cost payments . . . . . . . . . . . . . . . . . . . . . . . $ (285) $ (177) $ (228)
Environmental payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (218) (212) (228)
Indemnity receipts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 — —
Insurance receipts for asbestos related liabilities . . . . . . . . . . 38 27 43
Asbestos related liability payments . . . . . . . . . . . . . . . . . . . . . . . (254) (266) (212)
$ (652) $ (628) $ (625)
Interest paid, net of amounts capitalized . . . . . . . . . . . . . . . . . . . . . . $ 353 $ 306 $ 329
Income taxes paid, net of refunds . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,566 1,751 1,142
Non-cash investing and financing activities:
Common stock contributed to savings plans . . . . . . . . . . . . . . 52 172 168
Marketable securities contributed to non-U.S. pension
plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99 89 106

Note 25. Unaudited Quarterly Financial Information

2018
Mar. 31 June 30 Sept. 30 Dec. 31 Year
Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $10,392 $10,919 $10,762 $9,729 $41,802
Gross profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,201 3,305 3,206 3,044 12,756
Net income attributable to Honeywell. . . . . . . . . . 1,439 1,267 2,338 1,721 6,765
Earnings per common share—basic(1)(4) . . . . . . . . . 1.92 1.70 3.15 2.34 9.10
Earnings per common share—assuming
dilution(1)(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.89 1.68 3.11 2.31 8.98
Cash dividends per common share . . . . . . . . . . . . . 0.745 0.745 0.745 0.820 3.055
2017
Mar. 31 June 30 Sept. 30 Dec. 31(3) Year
Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $9,492 $10,078 $10,121 $10,843 $40,534
Gross profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,966 3,054 3,067 3,303 12,390
Net income (loss) attributable to Honeywell. . . . . . 1,328 1,391 1,345 (2,519) 1,545
Earnings (loss) per common share—basic(1)(4) . . . . . 1.74 1.82 1.76 (3.32) 2.03
Earnings (loss) per common share—assuming
dilution(1)(2)(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.72 1.80 1.74 (3.32) 2.00
Cash dividends per common share. . . . . . . . . . . . . . . . 0.665 0.665 0.665 0.745 2.740

(1) Total for the full year may differ from the sum of the individual quarters due to the requirement to
use weighted average shares each quarter, which may fluctuate with share repurchases and share
issuances, and due to the impact of losses in a quarter.
(2) Due to a loss for the quarter ended December 31, 2017, no incremental shares were included
because the effect would be antidilutive.
(3) For the quarter ended December 31, 2017 Net income (loss) attributable to Honeywell, Earnings
(loss) per common share - basic and Earnings (loss) per common share - assuming dilution were
impacted by U.S. Tax Reform.
(4) Earnings per Common Share and Net income attributable to Honeywell were revised for periods
prior to Sept. 30, 2018 in connection with our change in accounting for Bendix asbestos-related
liabilities for unasserted claims. See Note 20 Commitments and Contingencies for further details.

93
 Report of Independent Registered Public Accounting Firm

To the Shareowners and the Board of Directors of Honeywell International Inc.

Opinions on the Financial Statements and Internal Control over Financial Reporting
We have audited the accompanying consolidated balance sheets of Honeywell International Inc.
and subsidiaries (the “Company”) as of December 31, 2018 and 2017, and the related consolidated
statements of operations, comprehensive income, shareowners’ equity, and cash flows, for each of the
three years in the period ended December 31, 2018, and the related notes (collectively referred to as
the “financial statements”). We also have audited the Company’s internal control over financial
reporting as of December 31, 2018, based on criteria established in Internal Control—Integrated
Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission
(COSO).
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of the Company as of December 31, 2018 and 2017, and the results of its operations
and its cash flows for each of the three years in the period ended December 31, 2018, in conformity
with accounting principles generally accepted in the United States of America. Also, in our opinion, the
Company maintained, in all material respects, effective internal control over financial reporting as of
December 31, 2018, based on criteria established in Internal Control—Integrated Framework (2013)
issued by COSO.

Change in Accounting Principle

As discussed in Note 1 to the financial statements, the accompanying 2017 and 2016 consolidated
statements of operations have been retrospectively adjusted for the adoption of Accounting Standards
Update 2017-07, Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net
Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.

Basis for Opinions

The Company’s management is responsible for these financial statements, for maintaining
effective internal control over financial reporting, and for its assessment of the effectiveness of internal
control over financial reporting, included in the accompanying Management’s Report on Internal
Control Over Financial Reporting. Our responsibility is to express an opinion on these financial
statements and an opinion on the Company’s internal control over financial reporting based on our
audits. We are a public accounting firm registered with the Public Company Accounting Oversight
Board (United States) (PCAOB) and are required to be independent with respect to the Company in
accordance with the U.S. federal securities laws and the applicable rules and regulations of the
Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards
require that we plan and perform the audits to obtain reasonable assurance about whether the financial
statements are free of material misstatement, whether due to error or fraud, and whether effective
internal control over financial reporting was maintained in all material respects.
Our audits of the financial statements included performing procedures to assess the risks of
material misstatement of the financial statements, whether due to error or fraud, and performing
procedures to respond to those risks. Such procedures included examining, on a test basis, evidence
regarding the amounts and disclosures in the financial statements. Our audits also included evaluating
the accounting principles used and significant estimates made by management, as well as evaluating
the overall presentation of the financial statements. Our audit of internal control over financial reporting
included obtaining an understanding of internal control over financial reporting, assessing the risk that
a material weakness exists, and testing and evaluating the design and operating effectiveness of
internal control based on the assessed risk. Our audits also included performing such other procedures
as we considered necessary in the circumstances. We believe that our audits provide a reasonable
basis for our opinions.

94
Definition and Limitations of Internal Control over Financial Reporting
A company’s internal control over financial reporting is a process designed 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. A company’s internal
control over financial reporting includes those policies and procedures that (1) pertain to the
maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the company; (2) provide reasonable assurance that transactions are
recorded as necessary to permit preparation of financial statements in accordance with generally
accepted accounting principles, and that receipts and expenditures of the company are being made
only in accordance with authorizations of management and directors of the company; and (3) provide
reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or
disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or
detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject
to the risk that controls may become inadequate because of changes in conditions, or that the degree
of compliance with the policies or procedures may deteriorate.

/s/ Deloitte & Touche LLP

Parsippany, New Jersey

February 8, 2019
We have served as the Company’s auditor since 2014.

95
Item 9. Changes in and Disagreements with Accountants on Accounting and
Financial Disclosure
Not Applicable.

Item 9A. Controls and Procedures

Honeywell management maintains disclosure controls and procedures designed to provide
reasonable assurance that information required to be disclosed in reports filed under the Securities
Exchange Act of 1934, as amended (Exchange Act) is recorded, processed, summarized and reported
within the specified time periods and accumulated and communicated to our management, including
our principal executive officer and principal financial officer, 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 quarter ended December 31, 2018.
Our management, with the participation of our CEO and CFO, evaluated the effectiveness of our
disclosure controls and procedures (as defined in Rules 13a-15(e) or 15d-15(e) promulgated under the
Exchange Act) at December 31, 2018. Based on these evaluations, our CEO and CFO concluded that
our disclosure controls and procedures required by paragraph (b) of Rules 13a-15 or 15d-15 were
effective as of December 31, 2018.

Management’s Report on Internal Control Over Financial Reporting

Honeywell management is responsible for establishing and maintaining adequate internal control
over financial reporting and for its assessment of the effectiveness of internal control over financial
reporting as defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934.
Honeywell’s internal control over financial reporting is a process designed to provide reasonable
assurance to our management and board of directors regarding the reliability of financial reporting and
the preparation of financial statements for external purposes in accordance with generally accepted
accounting principles.
Because of its inherent limitations, internal control over financial reporting may not prevent or
detect misstatements.
Management assessed the effectiveness of Honeywell’s internal control over financial reporting as
of December 31, 2018. In making this assessment, management used the criteria set forth by the
Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control—
Integrated Framework (2013).
Based on this assessment, management determined that Honeywell maintained effective internal
control over financial reporting as of December 31, 2018.
The effectiveness of Honeywell’s internal control over financial reporting as of December 31, 2018
has been audited by Deloitte & Touche LLP, an independent registered public accounting firm, as
stated in their report which is included in Item 8. Financial Statements and Supplementary Data.

Item 9B. 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. All of our activities in Iran
during the year ended December 31, 2018, including the activities disclosed below, were conducted by
our non-U.S. subsidiaries (i) under General License H, (ii) under General License I, or (iii) under a
specific license issued by U.S. Treasury’s Office of Foreign Assets Control (OFAC), and otherwise in
compliance with all applicable laws, including sanctions regulations administered by OFAC.

96
 In the year ended December 31, 2018, the non-U.S. subsidiaries of our UOP business, part of
Performance Materials and Technologies, engaged in the following activities related to Iran’s oil, gas
and/or petrochemical sectors:
• Delivered services to Iranian counterparties pursuant to new and existing contracts, which
resulted in revenue of approximately $31.3 million.
• Sold non-U.S. origin products to non-U.S. third-parties for end-use in Iran pursuant to new and
existing contracts, which resulted in revenue of approximately $14.0 million.
Following our completion of the wind-down activities authorized by OFAC after the United States’
withdrawal from the Joint Comprehensive Plan of Action, we have now ceased doing business in Iran.
On February 4, 2019, Krishna Mikkilineni, the Company’s Senior Vice President of Engineering
and Information Technology, communicated his intention to retire from the Company effective as of
April 30, 2019 (the “Retirement Date”).
In consideration for Mr. Mikkilineni’s agreement to (1) provide post-Retirement Date transition
services through October 31, 2019, and (2) extend the time period of his existing non-solicitation and
non-compete covenants from two years to three years, the Company and Mr. Mikkilineni entered into a
Retirement Agreement that provides Mr. Mikkilineni with the following benefits notwithstanding his
voluntary retirement: (i) the outstanding restricted stock units previously awarded to Mr. Mikkilineni that
are unvested as of the Retirement Date and that would otherwise have vested before March 1, 2020
shall remain outstanding and continue to vest as scheduled pursuant to their existing terms and
conditions, including the satisfaction of any applicable Company performance requirements, (ii) all
outstanding stock options that are unvested as of the Retirement Date and that would otherwise have
vested before March 1, 2020 shall continue to vest as scheduled, and (iii) Mr. Mikkilineni shall receive
a $2,500,000 payout from the performance stock units (“PSUs”) granted to him for the 2017–2019 PSU
performance cycle (or the full payout of such PSUs if such payout is less than $2,500,000). All other
unvested long-term incentive awards shall be forfeited as of the Retirement Date.

97
 PART III.

Item 10. Directors and Executive Officers of the Registrant

Information relating to the Directors of Honeywell, as well as information relating to compliance
with Section 16(a) of the Securities Exchange Act of 1934, will be contained in our definitive Proxy
Statement involving the election of the Directors, which will be filed with the SEC pursuant to
Regulation 14A not later than 120 days after December 31, 2018, and such information is incorporated
herein by reference. Certain other information relating to the Executive Officers of Honeywell appears
in Part I of this Annual Report on Form 10-K under the heading Executive Officers of the Registrant.
The members of the Audit Committee of our Board of Directors are: George Paz (Chair), Kevin
Burke, Jaime Chico Pardo (ex officio member), D. Scott Davis, Linnet Deily, Judd Gregg and Robin L.
Washington. The Board has determined that Mr. Paz, Mr. Chico Pardo, Mr. Davis and Ms. Washington
are audit committee financial experts as defined by applicable SEC rules and that Mr. Paz, Mr. Burke,
Mr. Davis, Ms. Deily and Ms. Washington satisfy the accounting or related financial management
expertise criteria established by the NYSE. All members of the Audit Committee are independent as
that term is defined in applicable SEC rules and NYSE listing standards.
Honeywell’s corporate governance policies and procedures, including the Code of Business
Conduct, Corporate Governance Guidelines and Charters of the Committees of the Board of Directors
are available, free of charge, on our website under the heading Investor Relations (see Corporate
Governance), or by writing to Honeywell, 115 Tabor Road, Morris Plains, New Jersey 07950, c/o Vice
President and Corporate Secretary. Honeywell’s Code of Business Conduct applies to all Honeywell
directors, officers (including the Chief Executive Officer, Chief Financial Officer and Controller) and
employees. Amendments to or waivers of the Code of Business Conduct granted to any of Honeywell’s
directors or executive officers will be published on our website within five business days of such
amendment or waiver.

Item 11. Executive Compensation

Information relating to executive compensation is contained in the Proxy Statement referred to
above in Item 10. Directors and Executive Officers of the Registrant, and such information is
incorporated herein by reference.

Item 12. Security Ownership of Certain Beneficial Owners and Management

and Related Stockholder Matters
Information relating to security ownership of certain beneficial owners and management and
related stockholder matters is contained in the Proxy Statement referred to above in Item 10. Directors
and Executive Officers of the Registrant, and such information is incorporated herein by reference.

EQUITY COMPENSATION PLANS

As of December 31, 2018 information about our equity compensation plans is as follows:
Number of Securities
Number of Shares Remaining Available for
to be Issued Upon Weighted-Average Future Issuance Under
Exercise of Exercise Price of Equity Compensation
Outstanding Outstanding Plans (Excluding
Options, Warrants Options, Warrants Securities Reflected in
and Rights and Rights Column (a))
Plan category (a) (b) (c)
Equity compensation plans approved by
security holders . . . . . . . . . . . . . . . . . . . . . . 26,746,020(1) $97.83(2) 42,792,180(3)
Equity compensation plans not
approved by security holders . . . . . . . . . 328,003(4) N/A(5) N/A(6)
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27,074,023 $97.83 42,792,180

98
(1) Equity compensation plans approved by shareowners which are included in column (a) of the table
are the 2016 Stock Incentive Plan, the 2011 Stock Incentive Plan, and the 2006 Stock Incentive
Plan (including 22,222,860 shares of Common Stock to be issued for options; 3,617,539 RSUs
subject to continued employment; and 631,082 deferred RSUs); and the 2016 Stock Plan for Non-
Employee Directors and the 2006 Stock Plan for Non-Employee Directors (including 255,721
shares of Common Stock to be issued for options; and 18,818 RSUs subject to continued
services). RSUs included in column (a) of the table represent the full number of RSUs awarded
and outstanding whereas the number of shares of Common Stock to be issued upon vesting will be
lower than what is reflected on the table because the value of shares required to meet employee
tax withholding requirements are not issued.
1,110,753 growth plan units were issued and remain outstanding for the performance cycle
commencing January 1, 2016 and ended December 31, 2017 pursuant to the 2011 Stock Incentive
Plan. The value of this growth plan award will be paid in cash and, thus, growth plan units are not
included in the table above.
Because the number of future shares that may be distributed to employees participating in the
Honeywell Global Stock Plan is unknown, no shares attributable to that plan are included in column
(a) of the table above.
(2) Column (b) relates to stock options and does not include any exercise price for RSUs because an
RSU’s value is dependent upon attainment of certain performance goals or continued employment
or service and they are settled for shares of Common Stock on a one-for-one basis.
(3) The number of shares that may be issued under the 2016 Stock Incentive Plan as of December 31,
2018 is 40,270,690 which includes the following additional shares that may again be available for
issuance: shares that are settled for cash, expire, are canceled, or under similar prior plans, are
tendered as option exercise price or tax withholding obligations, are reacquired with cash option
exercise price or with monies attributable to any tax deduction to Honeywell upon the exercise of
an option, or are under any outstanding awards assumed under any equity compensation plan of
an entity acquired by Honeywell. No securities are available for future issuance under the 2011
Stock Incentive Plan or the 2006 Stock Incentive Plan.
The number of shares that may be issued under the Honeywell Global Stock Plan as of
December 31, 2018 is 1,807,681. This plan is an umbrella plan for three plans described below
maintained solely for eligible employees of participating non-U.S. countries.
• The UK Sharebuilder Plan allows an eligible UK employee to invest taxable earnings in
Common Stock. The Company matches those shares and dividends paid are used to purchase
additional shares of Common Stock. For the year ending December 31, 2018, 42,697 shares
were credited to participants’ accounts under the UK Sharebuilder Plan.
• The Honeywell Aerospace Ireland Share Participation Plan, the Honeywell Measurex (Ireland)
Limited Group Employee Profit Sharing Plan, and the Honeywell International Technologies
Limited Employee Share Ownership Plan allow eligible Irish employees to contribute a
percentage of base pay and/or bonus that is invested in Common Stock. For the year ending
December 31, 2018, 4,139 shares of Common Stock were credited to participants’ accounts
under these plans. The Honeywell International Technologies Limited Employee Share
Ownership Plan was part of the spinoff of the Transportation Systems business that occurred
on October 1, 2018 and is no longer sponsored by Honeywell.
The remaining 893,809 shares included in column (c) are shares remaining under the 2016 Stock
Plan for Non-Employee Directors.
(4) Equity compensation plans not approved by shareowners included in the table refers to the
Honeywell Excess Benefit Plan and Supplemental Savings Plan.
The Honeywell Excess Benefit Plan and Supplemental Savings Plan for highly compensated
employees is an unfunded, non-tax qualified plan that provides benefits equal to the employee
deferrals and company matching allocations that would have been provided under Honeywell’s
U.S. tax-qualified savings plan if the Internal Revenue Code limitations on compensation and

99
 contributions did not apply. The Company matching contribution is credited to participants’
accounts in the form of notional shares of Common Stock. The notional shares are distributed in
the form of actual shares of Common Stock. The number of shares to be issued under this plan
based on the value of the notional shares as of December 31, 2018 is 328,003.
(5) Column (b) does not include any exercise price for notional shares allocated to employees under
Honeywell’s equity compensation plans not approved by shareowners because all of these shares
are only settled for shares of Common Stock on a one-for-one basis.
(6) The amount of securities available for future issuance under the Honeywell Excess Benefit Plan
and Supplemental Savings Plan is not determinable because the number of securities that may be
issued under this plan depends upon the amount deferred to the plan by participants in future
years.

Item 13. Certain Relationships and Related Transactions

Information relating to certain relationships and related transactions is contained in the Proxy
Statement referred to above in Item 10. Directors and Executive Officers of the Registrant, and such
information is incorporated herein by reference.

Item 14. Principal Accounting Fees and Services

Information relating to fees paid to and services performed by Deloitte & Touche LLP and our
Audit Committee’s pre-approval policies and procedures with respect to non-audit services are
contained in the Proxy Statement referred to above in Item 10. Directors and Executive Officers of the
Registrant, and such information is incorporated herein by reference.

100
 PART IV.

Item 15. Exhibits and Financial Statement Schedules

Page Number
in Form 10-K

(a)(1.) Consolidated Financial Statements:

Consolidated Statement of Operations for the years ended
December 31, 2018, 2017 and 2016. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Consolidated Statement of Comprehensive Income for the years
ended December 31, 2018, 2017 and 2016 . . . . . . . . . . . . . . . . . . . . . . 37
Consolidated Balance Sheet at December 31, 2018 and 2017 . . . . . . . 38
Consolidated Statement of Cash Flows for the years ended
December 2018, 2017 and 2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
Consolidated Statement of Shareowners’ Equity for the years ended
December 31, 2018, 2017 and 2016. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
Notes to Consolidated Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . 41
Report of Independent Registered Public Accounting Firm. . . . . . . . . . . 94
Page Number
in Form 10-K
(a)(2.) Exhibits
See the Exhibit Index of this Annual Report on Form 10-K . . . . . . . . . . 102

Item 16. Form 10-K Summary

None.

101
 EXHIBIT INDEX
Exhibit No. Description

3(i) Amended and Restated Certificate of Incorporation of Honeywell International Inc., as

amended April 23, 2018 (incorporated by reference to Exhibit 3(i) to Honeywell’s
Form 10-Q for the quarter ended June 30, 2018)
3(ii) By-laws of Honeywell International Inc., as amended April 23, 2018 (incorporated by
reference to Exhibit 3(ii) to Honeywell’s 10-Q for the quarter ended June 30, 2018)
4 Honeywell International Inc. is a party to several long-term debt instruments under
which, in each case, the total amount of securities authorized does not exceed
10% of the total assets of Honeywell and its subsidiaries on a consolidated basis.
Pursuant to paragraph 4(iii)(A) of Item 601(b) of Regulation S-K, Honeywell agrees
to furnish a copy of such instruments to the Securities and Exchange Commission
upon request.
10.1* Deferred Compensation Plan for Non-Employee Directors of Honeywell International
Inc., as amended and restated (incorporated by reference to Exhibit 10.2 to
Honeywell’s Form 10-Q for quarter ended June 30, 2003)
10.2* Amendment to Deferred Compensation Plan for Non-Employee Directors of
Honeywell International Inc., as amended and restated (incorporated by
reference to Exhibit 10.1 to Honeywell’s Form 8-K filed December 21, 2004)
10.3* Amendment to Deferred Compensation Plan for Non-Employee Directors of
Honeywell International Inc., as amended and restated (incorporated by
reference to Exhibit 10.2 to Honeywell’s Form 10-K for the year ended
December 31, 2005)
10.4* Honeywell International Inc. Incentive Compensation Plan for Executive Employees,
as amended and restated (filed herewith)
10.5* Honeywell Excess Benefit Plan and Honeywell Supplemental Savings Plan, as
amended and restated (incorporated by reference to Exhibit 10.2 to Honeywell’s
Form 10-Q for the quarter ended March 31, 2018)
10.6* Honeywell International Inc. Severance Plan for Designated Officers, as amended
and restated (incorporated by reference to Exhibit 10.6 to Honeywell’s Form 10-K
for the year ended December 31, 2013)
10.7* Honeywell Deferred Incentive Compensation Plan, as amended and restated
(incorporated by reference to Exhibit 10.3 to Honeywell’s Form 10-Q for the
quarter ended March 31, 2018)
10.8* Honeywell International Inc. Supplemental Pension Plan, as amended and restated
(incorporated by reference to Exhibit 10.10 to Honeywell’s Form 10-K for the year
ended December 31, 2008)
10.9* Amendment to Honeywell International Inc. Supplemental Pension Plan, as amended
and restated (incorporated by reference to Exhibit 10.10 to Honeywell’s Form 10-K
for the year ended December 31, 2009)
10.10* Amendment to Honeywell International Inc. Supplemental Pension Plan, as amended
and restated (incorporated by reference to Exhibit 10.7 to Honeywell’s Form 10-K
for the year ended December 31, 2015)
10.11* Honeywell International Inc. Supplemental Executive Retirement Plan for Executives
in Career Band 6 and Above, as amended and restated (incorporated by reference
to Exhibit 10.12 to Honeywell’s Form 10-K for the year ended December 31, 2008)
10.12* Amendment to Honeywell International Inc. Supplemental Executive Retirement Plan
for Executives in Career Band 6 and Above, as amended and restated
(incorporated by reference to Exhibit 10.12 to Honeywell’s Form 10-K for the
year ended December 31, 2009)

102
Exhibit No. Description

10.13* Amendment to Honeywell International Inc. Supplemental Executive Retirement Plan

for Executives in Career Band 6 and Above, as amended and restated
(incorporated by reference to Exhibit 10.9 to Honeywell’s Form 10-K for the year
ended December 31, 2013)
10.14* Amendment to Honeywell International Inc. Supplemental Executive Retirement Plan
for Executives in Career Band 6 and Above, as amended and restated
(incorporated by reference to Exhibit 10.8 to Honeywell’s Form 10-K for the year
ended December 31, 2015)
10.15* Honeywell Supplemental Defined Benefit Retirement Plan, as amended and restated
(incorporated by reference to Exhibit 10.13 to Honeywell’s Form 10-K for the year
ended December 31, 2008)
10.16* Amendment to Honeywell Supplemental Defined Benefit Retirement Plan, as
amended and restated (incorporated by reference to Exhibit 10.13 to
Honeywell’s Form 10-K for the year ended December 31, 2009)
10.17* Amendment to Honeywell Supplemental Defined Benefit Retirement Plan, as
amended and restated (incorporated by reference to Exhibit 10.9 to Honeywell’s
Form 10-K for the year ended December 31, 2015)
10.18* Honeywell International Inc. Severance Plan for Corporate Staff Employees
(Involuntary Termination Following a Change in Control), as amended and
restated (incorporated by reference to Exhibit 10.12 to Honeywell’s Form 10-K
for the year ended December 31, 2013)
10.19* Employment Agreement dated as of February 18, 2002 between Honeywell and
David M. Cote (incorporated by reference to Exhibit 10.24 to Honeywell’s Form 8-K
filed March 4, 2002)
10.20* Amendment to Employment Agreement dated as of February 18, 2002 between
Honeywell and David M. Cote (incorporated by reference to Exhibit 10.3 to
Honeywell’s Form 10-Q for the quarter ended September 30, 2008)
10.21* Amendment to Employment Agreement dated as of February 18, 2002 between
Honeywell and David M. Cote (incorporated by reference to Exhibit 10.17 to
Honeywell’s Form 10-K for the year ended December 31, 2008)
10.22* Amendment to Employment Agreement dated as of February 18, 2002 between
Honeywell and David M. Cote (incorporated by reference to Exhibit 10.1 to
Honeywell’s Form 10-Q for the quarter ended March 31, 2013)
10.23* Deferred Compensation Agreement dated August 4, 2006 between Honeywell and
David M. Cote (incorporated by reference to Exhibit 10.22 to Honeywell’s
Form 10-K for the year ended December 31, 2006)
10.24* Amendment to Deferred Compensation Agreement dated August 4, 2006 between
Honeywell and David M. Cote (incorporated by reference to Exhibit 10.22 to
Honeywell’s Form 10-K for the year ended December 31, 2009)
10.25* Honeywell Supplemental Retirement Plan (incorporated by reference to Exhibit 10.24
to Honeywell’s Form 10-K for the year ended December 31, 2006)
10.26* 2006 Stock Incentive Plan of Honeywell International Inc. and Its Affiliates, as
amended and restated (incorporated by reference to Exhibit 10.26 to Honeywell’s
Form 10-K for the year ended December 31, 2008)
10.27* Amendment to the 2006 Stock Incentive Plan of Honeywell International Inc. and Its
Affiliates, as amended and restated (incorporated by reference to Exhibit 10.1 to
Honeywell’s 10-Q for the quarter ended March 31, 2011)

103
Exhibit No. Description

10.28* 2006 Stock Incentive Plan of Honeywell International Inc. and Its Affiliates—Form of
Option Award Agreement (incorporated by reference to Exhibit 10.2 to Honeywell’s
Form 10-Q for the quarter ended March 31, 2009)
10.29* 2006 Stock Plan for Non-Employee Directors of Honeywell International Inc., as
amended and restated (incorporated by reference to Exhibit 10.31 to Honeywell’s
Form 10-K for the year ended December 31, 2008)
10.30* Amendment to 2006 Stock Plan for Non-Employee Directors of Honeywell
International Inc., as amended and restated (incorporated by reference to
Exhibit 10.27 to Honeywell’s Form 10-K for the year ended December 31, 2011)
10.31* Amendment to 2006 Stock Plan for Non-Employee Directors of Honeywell
International Inc., as amended and restated (incorporated by reference to
Exhibit 10.24 to Honeywell’s Form 10-K for the year ended December 31, 2014)
10.32* 2006 Stock Plan for Non-Employee Directors of Honeywell International Inc.—Form
of Option Agreement (incorporated by reference to Exhibit 10.3 to Honeywell’s
Form 10-Q for the quarter ended March 31, 2012)
10.33* 2006 Stock Plan for Non-Employee Directors of Honeywell International Inc.—Form
of Restricted Unit Agreement (incorporated by reference to Exhibit 10.4 to
Honeywell’s Form 10-Q for the quarter ended March 31, 2012)
10.34* 2007 Honeywell Global Employee Stock Plan (incorporated by reference to
Honeywell’s Proxy Statement, dated March 12, 2007, filed pursuant to
Rule 14a-6 of the Securities Exchange Act of 1934)
10.35* 2006 Stock Incentive Plan of Honeywell International Inc. and Its Affiliates—Form of
Option Award Agreement, Form 2 (incorporated by reference to Exhibit 10.37 to
Honeywell’s Form 10-K for the year ended December 31, 2010)
10.36* Letter Agreement dated September 3, 2009 between Honeywell and Timothy
Mahoney (incorporated by reference to Exhibit 10.38 to Honeywell’s Form 10-K for
the year ended December 31, 2010)
10.37* Form of Honeywell International Inc. Noncompete Agreement for Senior Executives
(incorporated by reference to Exhibit 10.39 to Honeywell’s Form 10-K for the year
ended December 31, 2010)
10.38* 2011 Stock Incentive Plan of Honeywell International Inc. and its Affiliates
(incorporated by reference to Honeywell’s Proxy Statement, dated March 10,
2011, filed pursuant to Rule 14a-6 of the Securities Exchange Act of 1934)
10.39* Amendment to 2011 Stock Incentive Plan of Honeywell International Inc. and its
Affiliates (incorporated by reference to Exhibit 10.36 to Honeywell’s Form 10-K for
the year ended December 31, 2012)
10.40* Amendment to 2011 Stock Incentive Plan of Honeywell International Inc. and its
Affiliates (incorporated by reference to Exhibit 10.1 to Honeywell’s Form 10-Q for
the quarter ended March 31, 2014)
10.41* 2011 Stock Incentive Plan of Honeywell International Inc. and its Affiliates—Form of
Restricted Unit Agreement (incorporated by reference to Exhibit 10.2 to
Honeywell’s Form 10-Q for the quarter ended March 31, 2014)
10.42* 2011 Stock Incentive Plan of Honeywell International Inc. and its Affiliates—Form of
Restricted Unit Agreement, Form 2 (incorporated by reference to Exhibit 10.3 to
Honeywell’s Form 10-Q for the quarter ended March 31, 2014)
10.43* 2011 Stock Incentive Plan of Honeywell International Inc. and Its Affiliates—Form of
Stock Option Award Agreement (incorporated by reference to Exhibit 10.4 to
Honeywell’s Form 10-Q for the quarter ended March 31, 2014)

104
Exhibit No. Description

10.44* 2011 Stock Incentive Plan of Honeywell International Inc. and Its Affiliates—Form of
Stock Option Award Agreement, Form 2 (incorporated by reference to
Exhibit 10.39 to Honeywell’s Form 10-K for the year ended December 31, 2014)
10.45* 2011 Stock Incentive Plan of Honeywell International Inc. and Its Affiliates—Form of
Growth Plan Agreement (incorporated by reference to Exhibit 10.5 to Honeywell’s
Form 10-Q for the quarter ended March 31, 2014)
10.46* 2016 Stock Incentive Plan of Honeywell International Inc. and its Affiliates–Form of
Performance Plan Grant Agreement (incorporated by reference to Exhibit 10.2 to
Honeywell’s Form 10-Q for the quarter ended March 31, 2017)
10.47* Letter Agreement dated August 4, 2011 between Honeywell International Inc. and
David M. Cote (incorporated by reference to Exhibit 10.1 to Honeywell’s Form 10-Q
for the quarter ended September 30, 2011)
10.48* Letter Agreement dated April 7, 2014 between Honeywell International Inc. and
Thomas A. Szlosek (incorporated by reference to Exhibit 10.10 to Honeywell’s
Form 10-Q for the quarter ended March 31, 2014)
10.49* CEO Retention Agreement, as approved by the Board of Directors of Honeywell
International Inc. on October 31, 2014 and agreed to by David M. Cote on
December 11, 2014 (incorporated by reference to Exhibit 99.2 to Honeywell’s
Form 8-K filed December 12, 2014)
10.50* Chief Executive Officer Business Continuity Agreement as approved by the Board of
Directors of Honeywell International Inc. on June 28, 2016 (incorporated by
reference to Exhibit 99.1 to Honeywell’s Form 8-K filed June 28, 2016)
10.51* Amendment to Chief Executive Officer Business Continuity Agreement as approved
by the Board of Directors of Honeywell International Inc. on June 28, 2016
(incorporated by reference to Exhibit 10.1 to Honeywell’s Form 10-Q for the quarter
ended March 31, 2017)
10.52* Letter Agreement dated February 24, 2012 between Honeywell and Darius
Adamczyk (incorporated by reference to Exhibit 10.1 to Honeywell’s Form 10-Q
for the quarter ended March 31, 2016)
10.53* Offer letter dated March 31, 2016 from Honeywell International Inc. to Darius
Adamczyk (incorporated by reference to Exhibit 99.1 to Honeywell’s Form 8-K filed
April 6, 2016)
10.54* Employment Offer Letter dated March 1, 2017 between Honeywell and Darius
Adamczyk (incorporated by reference to Exhibit 99.1 to Honeywell’s Form 8-K filed
March 6, 2017)
10.55* Offer letter dated March 11, 2013 from Honeywell International Inc. to Krishna
Mikkilineni (incorporated by reference to Exhibit 10.43 to Honeywell’s Form 10-K
for the year ended December 31, 2016)
10.56* 2016 Stock Incentive Plan of Honeywell International Inc. and its Affiliates
(incorporated by reference to Honeywell’s Proxy Statement, dated March 10,
2016, filed pursuant to Rule 14a-6 of the Securities Exchange Act of 1934)
10.57* 2016 Stock Incentive Plan of Honeywell International Inc. and its Affiliates—Form of
Restricted Unit Agreement (incorporated by reference to Exhibit 10.1 to
Honeywell’s Form 10-Q for the quarter ended June 30, 2016)
10.58* 2016 Stock Incentive Plan of Honeywell International Inc. and its Affiliates—Form of
Restricted Unit Agreement, Form 2 (incorporated by reference to Exhibit 10.2 to
Honeywell’s Form 10-Q for the quarter ended June 30, 2016)

105
Exhibit No. Description

10.59* 2016 Stock Incentive Plan of Honeywell International Inc. and its Affiliates—Form of
Stock Option Award Agreement (incorporated by reference to Exhibit 10.3 to
Honeywell’s Form 10-Q for the quarter ended June 30, 2016)
10.60* 2016 Stock Plan for Non-Employee Directors (incorporated by reference to
Honeywell’s Proxy Statement, dated March 10, 2016, filed pursuant to
Rule 14a-6 of the Securities Exchange Act of 1934)
10.61* 2016 Stock Plan for Non-Employee Directors of Honeywell International Inc.—Form
of Stock Option Award Agreement (incorporated by reference to Exhibit 10.74 to
Honeywell’s Form 10-K for the year ended December 31, 2017)
10.62* 2016 Stock Plan for Non-Employee Directors of Honeywell International Inc.—Form
of Restricted Unit Agreement (incorporated by reference to Exhibit 10.6 to
Honeywell’s Form 10-Q for the quarter ended June 30, 2016)
10.63* UOP LLC Supplemental Pension Plan, as amended and restated (incorporated by
reference to Exhibit 10.76 to Honeywell’s 10-K for the year ended December 31,
2017)
10.64* Letter Agreement dated April 1, 2016 between Honeywell and Rajeev Gautam
(incorporated by reference to Exhibit 10.1 to Honeywell’s Form 10-Q for the quarter
ended March 31, 2018)
10.65* Letter Agreement dated July 27, 2018 between Honeywell and Greg Lewis
(incorporated by reference to Exhibit 99.1 to Honeywell’s Form 8-K filed
August 2, 2018)
10.66* Retirement Agreement dated August 3, 2018 between Honeywell and Thomas A.
Szlosek (incorporated by reference to Exhibit 99.2 to Honeywell’s Form 8-K filed
August 2, 2018)
10.67 364-Day Credit Agreement, dated as of February 16, 2018, among Honeywell
International Inc., the banks, financial institutions and other institutional lenders
parties thereto, JPMorgan Chase Bank, N.A., as administrative agent, Goldman
Sachs Bank USA, as syndication agent, Bank of America, N.A., Barclays Bank
PLC, Citibank, N.A., Deutsche Bank AG New York Branch, as documentation
agents, and JPMorgan Chase Bank, N.A. and Goldman Sachs Bank USA, as joint
lead arrangers and co-book managers (incorporated by reference to Exhibit 10.1 to
Honeywell’s Form 8-K filed February 20, 2018)
10.68 364-Day Credit Agreement, dated as of April 27, 2018, among Honeywell
International Inc., the banks, financial institutions and other institutional lenders
parties thereto, Citibank, N.A., as administrative agent, JPMorgan Chase Bank,
N.A., as syndication agent, Bank of America, N.A., Barclays Bank PLC, Deutsche
Bank Securities Inc., Goldman Sachs Bank USA, Morgan Stanley MUFG Loan
Partners, LLC and Wells Fargo Bank, National Association, as documentation
agents, and Citibank, N.A. and JPMorgan Chase Bank, N.A., as joint lead
arrangers and co-book managers (incorporated by reference to Exhibit 10.1 to
Honeywell’s Form 8-K filed April 27, 2018)

106
Exhibit No. Description

10.69 Amended and Restated Five-Year Credit Agreement, dated as of April 27, 2018,
among Honeywell International Inc., the banks, financial institutions and other
institutional lenders parties thereto, Citibank, N.A., as administrative agent,
Citibank Europe PLC, UK Branch, as swing line agent, JPMorgan Chase Bank,
N.A., as syndication agent, Bank of America, N.A., Barclays Bank PLC, Deutsche
Bank Securities Inc., Goldman Sachs Bank USA, Morgan Stanley MUFG Loan
Partners, LLC and Wells Fargo Bank, National Association, as documentation
agents, and Citibank, N.A. and J.P. Morgan Chase Bank N.A., as joint lead
arrangers and co-bookrunners (incorporated by reference to Exhibit 10.2 to
Honeywell’s Form 8-K filed April 27, 2018)
10.70 Indemnification and Reimbursement Agreement, dated September 12, 2018, by and
among Honeywell ASASCO Inc., Honeywell ASASCO 2 Inc., and Honeywell
International Inc. (incorporated by reference to Exhibit 2.1 to Honeywell’s Form 8-K
filed September 14, 2018)
10.71 Indemnification and Reimbursement Agreement dated October 14, 2018 by and
among New HAPI Inc. and Honeywell International Inc. (incorporated by reference
to Exhibit 2.1 to Honeywell’s Form 8-K filed October 15, 2018)
10.72* Retirement Agreement dated February 7, 2019 between Honeywell and Krishna
Mikkilineni (filed herewith)
21 Subsidiaries of the Registrant (filed herewith)
23.1 Consent of Deloitte & Touche LLP (filed herewith)
24 Powers of Attorney (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)

The Exhibits identified above with an asterisk (*) are management contracts or compensatory
plans or arrangements.
** Certain schedules and similar attachments have been omitted pursuant to Item 601(b)(2) of
Regulation S-K. The registrant hereby undertakes to furnish copies of any of the omitted schedules
and similar attachments upon request by the U.S. Securities and Exchange Commission.

107
 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: February 8, 2019 By: /s/ John J. Tus

John J. Tus
Vice President and Controller
(on behalf of the Registrant
and as the Registrant’s
Principal Accounting Officer)

Pursuant to the requirements of the Securities Exchange Act of 1934, this annual report has been
signed below by the following persons on behalf of the Registrant and in the capacities and on the date
indicated:
Name Name

* *
Darius Adamczyk Linnet F. Deily
Chairman and Chief Executive Officer Director
(Principal Executive Officer)
* *
Duncan B. Angove Judd Gregg
Director Director
* *
William S. Ayer Clive Hollick
Director Director
* *
Kevin Burke Grace D. Lieblein
Director Director
* *
Jaime Chico Pardo George Paz
Director Director
* *
D. Scott Davis Robin L. Washington
Director Director
/s/ Gregory P. Lewis /s/ John J. Tus
Gregory P. Lewis John J. Tus
Senior Vice President and Vice President and Controller
Chief Financial Officer (Principal Accounting Officer)
(Principal Financial Officer)

*By: /s/ Gregory P. Lewis

(Gregory P. Lewis
Attorney-in-fact)

February 8, 2019

108
LEADERSHIP TEAM AND SHAREOWNER
CORPORATE OFFICERS INFORMATION

DARIUS ADAMCZYK HARSH BANSAL ANNUAL MEETING

Chairman and Vice President The Annual Meeting of Shareowners will be held at 10:30 a.m.
Chief Executive Officer Investments on Monday, April 29, 2019, at Honeywell’s Headquarters,
115 Tabor Road, Morris Plains, New Jersey, 07950.
QUE THANH DALLARA MICHAEL BENNETT
President and Vice President DIVIDENDS/SHAREOWNER MATTERS
Chief Executive Officer Communications and Honeywell’s Dividend Reinvestment and Share Purchase
Honeywell Connected President Honeywell Plan provides for automatic reinvestment of common stock
Enterprise Hometown Solutions dividends at market price. Participants also may add cash
for the purchase of additional shares of common stock
RAJEEV GAUTAM JIM CARROLL without payment of any brokerage commission or service
President and Senior Vice President charge. Honeywell offers Direct Registration, or paperless
Chief Executive Officer Global Government stock ownership. This means that instead of getting a
Performance Materials Relations paper stock certificate to represent your shares, your
and Technologies shares are held in your name and tracked electronically in
JIM COLBY our records.
MARK R. JAMES Vice President and
Senior Vice President Treasurer The company has established a Direct Deposit of
Human Resources, Dividends service enabling registered shareowners to
Security and TORSTEN PILZ have their quarterly dividend payments sent electronically
Communications Senior Vice President and to their bank accounts on the payment date.
Chief Supply Chain
VIMAL KAPUR Officer For more information on these services or for answers to
President and questions about dividend checks, stock transfers, or other
Chief Executive Officer SHANE TEDJARATI shareowner matters, please contact Honeywell’s transfer
Honeywell Building President Global High agent and registrar:
Technologies Growth Regions
EQ SHAREOWNER SERVICES
GREGORY P. LEWIS JOHN J. TUS 1110 Centre Pointe Curve, Suite 101
Senior Vice President and Vice President and Mendota Heights, MN 55120
Chief Financial Officer Controller 1-800-401-1957 (US)
1-651-450-4064 (International)
ANNE T. MADDEN http://www.shareowneronline.com
Senior Vice President,
HONEYWELL INTERNATIONAL INC.
General Counsel and
Corporate Secretary Corporate Publications
115 Tabor Road
TIMOTHY O. MAHONEY Morris Plains, NJ 07950-2546
President and 1-973-455-2000
Chief Executive Officer
STOCK EXCHANGE LISTINGS
Aerospace
Honeywell’s Common Stock is listed on the New York
KRISHNA MIKKILINENI Stock Exchange under the symbol HON. It is also listed
Senior Vice President on the London Stock Exchange. Shareowners of record
Engineering and as of December 31, 2018, totaled 45,606.
Information Technology
GENERAL INQUIRIES
JOHN F. WALDRON For additional shareowner inquiries, please contact
President and Honeywell’s Shareowner Services at 1-800-647-7147 or
Chief Executive Officer Honeywell Investor Relations at 1-973-455-2222.
Safety and Productivity
Solutions
Aerospace • Honeywell Building Technologies • Performance Materials and Technologies • Safety and Productivity Solutions

Honeywell International Inc.

115 Tabor Road
Morris Plains, NJ 07950-2546
USA

For more information about Honeywell, visit www.honeywell.com