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The following table summarizes information about stock option activity for the three years ended
December 31, 2012:
Number of
Options
Weighted
Average
Exercise
Price
Outstanding at December 31, 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,910,373 $38.58
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,607,950 40.29
Exercised. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5,211,526) 34.77
Lapsed or canceled . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,515,266) 44.14
Outstanding at December 31, 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,791,531 39.05
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,625,950 57.08
Exercised. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (7,984,840) 36.39
Lapsed or canceled . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,516,271) 42.38
Outstanding at December 31, 2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38,916,370 43.01
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,788,734 59.86
Exercised. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (8,347,313) 36.52
Lapsed or canceled . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (788,770) 49.76
Outstanding at December 31, 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,569,021 $47.13
Vested and expected to vest at December 31, 2012(1) . . . . . . . . . . . . . . . . . . . 32,959,330 $46.39
Exercisable at December 31, 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,468,017 $43.64
(1) Represents the sum of vested options of 19.5 million and expected to vest options of 13.4 million.
Expected to vest options are derived by applying the pre-vesting forfeiture rate assumption to total
outstanding unvested options 16.1 million.
The following table summarizes information about stock options outstanding and exercisable at
December 31, 2012:
Range of Exercise prices
Number
Outstanding
Weighted
Average
Life(1)
Weighted
Average
Exercise
Price
Aggregate
Intrinsic
Value
Number
Exercisable
Weighted
Average
Exercise
Price
Aggregate
Intrinsic
Value
Options Outstanding Options Exercisable
$21.75–$32.99 . . . . . . . . . . . . . . 4,993,846 5.93 $28.18 $176 3,206,132 $28.05 $114
$33.00–$39.99 . . . . . . . . . . . . . . 3,194,212 1.83 36.27 87 3,194,212 36.27 87
$40.00–$49.99 . . . . . . . . . . . . . . 11,234,405 5.46 42.55 235 7,856,329 43.52 157
$50.00–$74.95 . . . . . . . . . . . . . . 16,146,558 7.85 58.32 83 5,211,344 57.91 29
35,569,021 6.28 47.13 $581 19,468,017 43.64 $387
(1) Average remaining contractual life in years.
There were 21,672,281 and 24,722,493 options exercisable at weighted average exercise prices
of $40.71 and $39.43 at December 31, 2011 and 2010, respectively.
The total intrinsic value of options (which is the amount by which the stock price exceeded the
exercise price of the options on the date of exercise) exercised during 2012, 2011 and 2010 was $202,
$164 and $54 million, respectively. During 2012, 2011 and 2010, the amount of cash received from the
exercise of stock options was $305, $290 and $181 million, respectively, with an associated tax benefit
realized of $74, $54 and $18 million, respectively. In 2012, 2011 and 2010 we classified $56, $42 and
$13 million, respectively, of this benefit as a financing cash inflow in the Consolidated Statement of
Cash Flows, and the balance was classified as cash from operations.
92
HONEYWELL INTERNATIONAL INC.
NOTES TO FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)