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HONEYWELL INTERNATIONAL INC.
NOTES TO FINANCIAL STATEMENTS
—(Continued)
(Dollars in millions, except per share amounts)
The following table sets forth fair value per share information, including related weighted-average assumptions, used to
determine compensation cost:
The following table summarizes information about stock option activity for the three years ended December 31, 2015:
57
Years Ended December 31,
2015
2014
2013
Weighted average fair value per share of options granted during
the year(1)
$
17.21
$
16.35
$
11.85
Assumptions:
Expected annual dividend yield
1.98
%
2.05
%
2.55
%
Expected volatility
21.55
%
23.06
%
24.73
%
Risk-free rate of return
1.61
%
1.48
%
0.91
%
Expected option term (years)
5.0
5.0
5.5
(1)
Estimated on date of grant using Black-Scholes option-pricing model.
Number of
Options
Weighted
Average
Exercise
Price
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
Granted
5,823,706
93.95
Exercised
(5,697,263
)
47.47
Lapsed or canceled
(1,294,668
)
67.70
Outstanding at December 31, 2014
29,495,612
61.80
Granted
5,967,256
103.87
Exercised
(4,190,298
)
53.40
Lapsed or canceled
(703,132
)
84.31
Outstanding at December 31, 2015
30,569,438
$
70.76
Vested and expected to vest at December 31, 2015(1)
28,852,696
$
68.96
Exercisable at December 31, 2015
17,202,377
$
55.11
(1)
Represents the sum of vested options of 17.2 million and expected to vest options of 11.7 million. Expected to vest
options are derived by applying the pre-vesting forfeiture rate assumption to total outstanding unvested options of 13.6
million.