Honeywell 2013 Annual Report Download - page 108

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The following table summarizes information about stock option activity for the three years ended
December 31, 2013:
Number of
Options
Weighted
Average
Exercise
Price
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
Granted. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,041,422 69.89
Exercised . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (10,329,611) 41.91
Lapsed or canceled . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (616,995) 53.84
Outstanding at December 31, 2013. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,663,837 $53.27
Vested and expected to vest at December 31, 2013(1). . . . . . . . . . . . . . . . . . . 28,190,580 $52.20
Exercisable at December 31, 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,594,410 $45.76
(1) Represents the sum of vested options of 15.6 million and expected to vest options of 12.6 million.
Expected to vest options are derived by applying the pre-vesting forfeiture rate assumption to total
outstanding unvested options of 15.1 million.
The following table summarizes information about stock options outstanding and exercisable at
December 31, 2013:
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
$28.35–$39.99 . . . . . . . . . . . . . . 3,526,437 3.69 $31.29 $ 212 3,526,437 $31.29 $212
$40.00–$49.99 . . . . . . . . . . . . . . 8,018,738 4.69 42.25 394 6,368,574 42.75 310
$50.00–$59.99 . . . . . . . . . . . . . . 13,067,490 7.02 58.35 431 5,624,099 58.04 187
$60.00–$75.00 . . . . . . . . . . . . . . 6,051,172 9.11 69.70 131 75,300 60.54 2
30,663,837 6.43 53.27 $1,168 15,594,410 45.76 $711
(1) Average remaining contractual life in years.
There were 19,468,017 and 21,672,281 options exercisable at weighted average exercise prices
of $43.64 and $40.71 at December 31, 2012 and 2011, 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 2013, 2012 and 2011 was $367,
$202 and $164 million, respectively. During 2013, 2012 and 2011, the amount of cash received from
the exercise of stock options was $432, $305 and $290 million, respectively, with an associated tax
benefit realized of $129, $74 and $54 million, respectively. In 2013, 2012 and 2011 we classified $99,
$56 and $42 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.
96
HONEYWELL INTERNATIONAL INC.
NOTES TO FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)