Honeywell 2014 Annual Report Download - page 84

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The following tables summarize changes in the fair value of Level 3 assets:
Private
Funds
Direct
Private
Investments
Hedge
Funds
Real Estate
Funds
Real Estate
Properties
U.S. Plans
Balance at December 31, 2012. . . . . . . . . . . . . . $1,100 $ 227 $ 52 $254 $ 595
Actual return on plan assets:
Relating to assets still held at year-end . . (10) 34 (22) 11 61
Relating to assets sold during the year . . 117 1 22 1 4
Purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94 37 9 15 15
Sales and settlements. . . . . . . . . . . . . . . . . . . . . . . (243) (21) (55) (44) (48)
Balance at December 31, 2013. . . . . . . . . . . . . . 1,058 278 6 237 627
Actual return on plan assets:
Relating to assets still held at year-end . . (50) (10) (2) 21 10
Relating to assets sold during the year . . 94 59 2 — 53
Purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168 92 3 8 38
Sales and settlements. . . . . . . . . . . . . . . . . . . . . . . (271) (118) (6) (40) (128)
Balance at December 31, 2014. . . . . . . . . . . . . . $ 999 $ 301 $ 3 $226 $ 600
Private
Funds
Hedge
Funds
Real Estate
Funds
Non-U.S. Plans
Balance at December 31, 2012. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $136 $ 56 $157
Actual return on plan assets:
Relating to assets still held at year-end. . . . . . . . . . . . . . . . . . . . . . . (6) 4 18
Relating to assets sold during the year . . . . . . . . . . . . . . . . . . . . . . . 3 — (1)
Purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 2 12
Sales and settlements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (70) — (5)
Balance at December 31, 2013. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 62 181
Actual return on plan assets:
Relating to assets still held at year-end. . . . . . . . . . . . . . . . . . . . . . . (4) (11) 17
Relating to assets sold during the year . . . . . . . . . . . . . . . . . . . . . . . 6 12 1
Purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — 4
Sales and settlements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (7) (61) (18)
Balance at December 31, 2014. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 62 $ 2 $185
The Company enters into futures contracts to gain exposure to certain markets. Sufficient cash or
cash equivalents are held by our pension plans to cover the notional value of the futures contracts. At
December 31, 2014 and 2013, our U.S. plans had contracts with notional amounts of $2,354 million
and $1,938 million, respectively. At December 31, 2014 and 2013, our non-U.S. plans had contracts
with notional amounts of $65 million and $61 million, respectively. In both our U.S. and non-U.S.
pension plans, the notional derivative exposure is primarily related to outstanding equity futures
contracts.
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
75
HONEYWELL INTERNATIONAL INC.
NOTES TO FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)