Honeywell 2010 Annual Report Download - page 106

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HONEYWELL INTERNATIONAL INC.
NOTES TO FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)
U.S. Plans
Private
Equity/Debt
Funds
Direct
Private
Investments
Hedge
Funds
Real Estate
Funds
Real Estate
Properties
Balance at December 31, 2008 $ 659 $ 142 $ 123 $ 197 $ 646
Actual Return on plan assets:
Relating to assets still held
at year-end 121 3 17 (102) (228)
Relating to assets sold
during the year 7 — 11 — —
Purchases, sales and
settlements 124 4 (73) 37 34
Balance at December 31, 2009 911 149 78 132 452
Actual Return on plan assets:
Relating to assets still held
at year-end 42 (9) 11 36 45
Relating to assets sold
during the year 29 — 1 1 10
Purchases, sales and
settlements 71 27 (13) 45 (13)
Balance at December 31, 2010 $ 1,053 $ 167 $ 77 $ 214 $ 494
Non-U.S. Plans
Private
Equity/Debt
Funds
Hedge
Funds
Real Estate
Funds
Balance at December 31, 2008 $ 38 $ 46 $ 114
Actual Return on plan assets:
Relating to assets still held
at year-end (5) 15 24
Relating to assets sold
during the year (1) (10) (4)
Purchases, sales and
settlements 49 — 3
Balance at December 31, 2009 81 51 137
Actual Return on plan assets:
Relating to assets still held
at year-end 2 4 2
Relating to assets sold
during the year 3 — 5
Purchases, sales and
settlements 3 — 25
Balance at December 31, 2010 $ 89 $ 55 $ 169
Our U.S. pension assets at December 31, 2010 and 2009 include $834 and $481 million respectively, in notional derivative exposure primarily related
to outstanding equity futures contracts. The Company enters into futures contracts to gain exposure to certain markets.
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 commingled funds which are valued
using net asset values provided by the administrators of the funds. Investments in private equity, debt 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
are valued based on annual independent appraised values.
103