Honeywell 2012 Annual Report Download - page 6

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Notes to Shareowners Letter:
1) Reconciliation of EPS to EPS, Excluding Pension Mark-to-Market Adjustment
2011(a) 2012(b)
EPS. ................................................................. $2.61 $3.69
Pension Mark-to-Market Adjustment . . . ................................ 1.44 0.79
EPS—Excluding Pension
Mark-to-Market Adjustment . . . ....................................... $4.05 $4.48
(a) Utilizes weighted average shares of 791.6 million and mark-to-market uses a blended
tax rate of 36.9%.
(b) Utilizes weighted average shares of 791.9 million and mark-to-market uses a blended
tax rate of 35.0%.
2) Reconciliation of Segment Profit to Operating Income Excluding Pension Mark-to-Market
Adjustment and Calculation of Segment Profit and Operating Income Margin Excluding
Pension Mark-to-Market Adjustment
($M) 2009 2011 2012
Segment Profit . ..................................... $ 3,991 $ 5,357 $ 5,879
Stock Based Compensation (a) ....................... (117) (168) (170)
Repositioning and Other (a, b)......................... (493) (794) (488)
Pension Ongoing Expense (a) ........................ (287) (105) (36)
Pension Mark-to-Market Adjustment (a) ............... (741) (1,802) (957)
Other Postretirement Income (Expense) (a) ........... 15 86 (72)
Operating Income ................................... $ 2,368 $ 2,574 $ 4,156
Pension Mark-to-Market Adjustment (a) ............... ($741) ($1,802) ($957)
Operating Income Excluding Pension
Mark-to-Market Adjustment . ....................... $ 3,109 $ 4,376 $ 5,113
Segment Profit . ..................................... $ 3,991 $ 5,357 $ 5,879
÷Sales ............................................. $29,951 $ 36,529 $37,665
Segment Profit Margin % ............................ 13.3% 14.7% 15.6%
Operating Income ................................... $ 2,368 $ 2,574 $ 4,156
÷Sales ............................................. $29,951 $ 36,529 $37,665
Operating Income Margin % . . ....................... 7.9% 7.0% 11.0%
Operating Income Excluding Pension
Mark-to-Market Adjustment . ....................... $ 3,109 $ 4,376 $ 5,113
÷Sales ............................................. $29,951 $ 36,529 $37,665
Operating Income Margin Excluding Pension
Mark-to-Market Adjustment . ....................... 10.4% 12.0% 13.6%
(a) Included in cost of products and services sold and selling, general and administrative
expenses.
(b) Includes repositioning, asbestos, environmental expenses and equity income
adjustment.