Honeywell 2008 Annual Report Download - page 112

HONEYWELL INTERNATIONAL INC.
NOTES TO FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)
Note 19—Accumulated Other Comprehensive Income (Loss)
Total accumulated other comprehensive income (loss) is included in the Consolidated Statement of
Shareowners' Equity. The changes in Accumulated Other Comprehensive Income (Loss) are as follows:
Pretax Tax After-
Tax
Year Ended December 31, 2008
Foreign exchange translation adjustments $ (614) $ — $ (614)
Change in fair value of effective cash flow hedges (40) 16 (24)
Change in fair value of available for sale investments (51) — (51)
Pension and postretirement benefit adjustment (4,159) 1,583 (2,576)
$ (4,864) $ 1,599 $ (3,265)
Year Ended December 31, 2007
Foreign exchange translation adjustments $ 248 $ — $ 248
Change in fair value of effective cash flow hedges (5) 2 (3)
Pension and postretirement benefit adjustment 803 (285) 518
$ 1,046 $ (283) $ 763
Year Ended December 31, 2006
Foreign exchange translation adjustments $ 233 $ — $ 233
Change in fair value of effective cash flow hedges (5) 2 (3)
Minimum pension liability adjustment 268 (72) 196
Pension and postretirement benefit adjustment (2,620) 912 (1,708)
$ (2,124) $ 842 $ (1,282)
The components of Accumulated Other Comprehensive Income (Loss) are as follows:
December 31,
2008 2007
Cumulative foreign exchange translation adjustments $ 209 $ 823
Fair value of effective cash flow hedges (22) 2
Fair value of available for sale investments (51) —
Pension and postretirement benefit adjustment (3,945) (1,369)
$ (3,809) $ (544)
Note 20—Stock-Based Compensation Plans
We have stock-based compensation plans available to grant non-qualified stock options, incentive stock
options, stock appreciation rights, restricted units and restricted stock to key employees. Under the 2006 Stock
Incentive Plan of Honeywell International Inc. and its Affiliates (the Plan), a maximum of 43 million shares of
Honeywell common stock may be awarded. We expect that common stock awarded on an annual basis will be
between 1.0 and 1.5 percent of total common stock outstanding. Additionally, under the 2006 Stock Plan for Non-
Employee Directors of Honeywell International Inc. (the Directors Plan) 500,000 shares of Honeywell common
stock may be awarded.
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