Honeywell 2002 Annual Report Download - page 227

other than the required adoption of SFAS No. 142 (see Note 1 of Notes to
Financial Statements for additional details).
Contingent Liabilities
We are subject to a number of lawsuits, investigations and claims (some of which
involve substantial dollar amounts) that arise out of the conduct of our global
business operations. These contingencies relate to product liabilities,
including asbestos, commercial transactions, government contracts and
environmental health and safety matters. We recognize a liability for any
contingency that is probable of occurrence and reasonably estimable. We
continually assess the likelihood of any adverse judgments or outcomes to our
contingencies, as well as potential ranges of probable losses, and recognize a
liability, if any, for these contingencies based on a careful analysis of each
individual issue with the assistance of outside legal counsel and other experts.
Such analysis includes making judgments concerning matters such as the costs
associated with environmental matters, the outcome of negotiations, the number
of future asbestos claims and the impact of evidentiary requirements. Because
most contingencies are resolved over long periods of time, liabilities may
change in the future due to new developments or changes in our settlement
strategy. For information on our contingencies, including recognized
liabilities, see Notes 1 and 21 of Notes to Financial Statements.
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