HONEYWELL INTERNATIONAL INC.

CONSOLIDATED BALANCE SHEET

December 31,
2012
2011
(Dollars in millions)
ASSETS

Current assets:
Cash and cash equivalents
Accounts, notes and other receivables
Inventories
Deferred income taxes
Investments and other current assets

3,698
7,228
4,264
460
484

17,598
623
5,001
12,425
2,449
663
1,889
1,205

16,134
494
4,804
11,858
2,477
709
2,132
1,200

$ 41,853

$ 39,808

Total current assets

Investments and long-term receivables
Property, plant and equipmentnet
Goodwill
Other intangible assetsnet
Insurance recoveries for asbestos related liabilities
Deferred income taxes
Other assets

Total assets

4,634
7,429
4,235
669
631

LIABILITIES

Current liabilities:
Accounts payable
Short-term borrowings
Commercial paper
Current maturities of long-term debt
Accrued liabilities

4,736
76
400
625
7,208

4,738
60
599
15
6,863

13,045
6,395
628
1,365
1,292
5,913
150

12,275
6,881
676
1,417
1,499
6,158

Capitalcommon stock issued

additional paid-in capital
Common stock held in treasury, at cost
Accumulated other comprehensive income (loss)
Retained earnings

958
4,358
(8,801 )
(1,339 )
17,799

958
4,157
(8,948 )
(1,444 )
16,083

Total Honeywell shareowners equity

Noncontrolling interest

12,975
90

10,806
96

13,065

10,902

$ 41,853

$ 39,808

Total current liabilities

Long-term debt
Deferred income taxes
Postretirement benefit obligations other than pensions
Asbestos related liabilities
Other liabilities
Redeemable noncontrolling interest
SHAREOWNERS EQUITY

Total shareowners equity

Total liabilities, redeemable noncontrolling interest and shareowners equity

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

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HONEYWELL INTERNATIONAL INC.

NOTES TO FINANCIAL STATEMENTS
(Dollars in millions, except per share amounts)

Note 1Summary 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 Honeywells 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 investees 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.
The Consumer Products Group (CPG) automotive aftermarket business had historically been part of the Transportation
Systems reportable segment. In accordance with generally accepted accounting principles, CPG is presented as
discontinued operations in all periods presented. See Note 2 Acquisitions and Divestitures for further details.
Noncontrolling interest is included within the equity section in the Consolidated Balance Sheet. Redeemable noncontrolling
interest is considered to be temporary equity and is therefore reported outside of permanent equity on the Companys
Consolidated Balance Sheet at the greater of the initial carrying amount adjusted for the noncontrolling interests share of net
income (loss) or its redemption value. We present the amount of consolidated net income that is attributable to Honeywell and
the noncontrolling interest in the Consolidated Statement of Operations. Furthermore, we disclose the amount of comprehensive
income that is attributable to Honeywell and the noncontrolling interest in the Consolidated Statement of Comprehensive
Income.

Cash and Cash Equivalents Cash and cash equivalents include cash on hand and on deposit and highly liquid,
temporary cash investments with an original maturity of three months or less.
Inventories Inventories are valued at the lower of cost or market using the first-in, first-out or the average cost method
and the last-in, first-out (LIFO) method for certain qualifying domestic inventories.
Investments Investments in affiliates over which we have a significant influence, but not a controlling interest, are
accounted for using the equity method of accounting. Other investments are carried at market value, if readily determinable, or
at cost. All equity investments are periodically reviewed to determine if declines in fair value below cost basis are other-thantemporary. Significant and sustained decreases in quoted market prices or a series of historic and projected operating losses
by investees are strong indicators of other-than-temporary declines. If the decline in fair value is determined to be other- thantemporary, an impairment loss is recorded and the investment is written down to a new carrying value.

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 assets useful life. See Note 11 Property, Plant and Equipment - Net and Note
17 Other Liabilities of Notes to the Financial Statements for additional details.
Goodwill and Indefinite-Lived Intangible Assets Goodwill represents the excess of acquisition costs over the fair
value of tangible net assets and identifiable intangible assets of businesses acquired. Goodwill and certain other intangible
assets deemed to have indefinite lives are not
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HONEYWELL INTERNATIONAL INC.

NOTES TO FINANCIAL STATEMENTS(Continued)
(Dollars in millions, except per share amounts)

Note 8Accounts, Notes and Other Receivables

December 31,
2012
2011

$ 6,940
715

Trade
Other

7,655
(226 )

LessAllowance for doubtful accounts

$ 7,429

$ 6,926
555

7,481
(253 )
$ 7,228

Trade Receivables includes $1,495, and $1,404 million of unbilled balances under long-term contracts as of December
31, 2012 and December 31, 2011, respectively. These amounts are billed in accordance with the terms of customer contracts
to which they relate.

Note 9Inventories
December 31,
2012
2011

$ 1,152
859
2,421

Raw materials
Work in process
Finished products

4,432
(197 )

Reduction to LIFO cost basis

$ 4,235

$ 1,222
958
2,253

4,433
(169 )
$ 4,264

Inventories valued at LIFO amounted to $325 and $302 million at December 31, 2012 and 2011, respectively. Had such
LIFO inventories been valued at current costs, their carrying values would have been approximately $197 and $169 million
higher at December 31, 2012 and 2011, respectively.

Note 10Investments and Long-Term Receivables

December 31,
2012
2011

Investments
Long-term trade and other receivables
Long-term financing receivables

$ 424
168
31

$ 362
81
51

$ 623

$ 494

Long-Term Trade and Other Receivables include $31 million and $29 million of unbilled balances under long-term
contracts as of December 31, 2012 and 2011, respectively. These amounts are billed in accordance with the terms of the
customer contracts to which they relate.
The following table summarizes long term trade, financing and other receivables by segment, including current portions
and allowances for credit losses.
December 31,
2012

Aerospace
Automation and Control Solutions
Performance Materials and Technologies
Transportation Systems

11
89
9
15
73

197

Corporate

80