Honeywell 2002 Annual Report Download - page 260

changed $1,132 and $1,096 million, respectively, of fixed rate debt at an
average rate of 6.51 and 6.55 percent, respectively, to LIBOR based floating
rate debt. Our interest rate swaps mature through 2007.
Fair Value of Financial Instruments
The carrying value of cash and cash equivalents, trade accounts and notes
receivables, payables, commercial paper and short-term borrowings contained in
the Consolidated Balance Sheet approximates fair value. Summarized below are the
carrying values and fair values of our other financial instruments at December
31, 2002 and 2001. The fair values are based on the quoted market prices for the
issues (if traded), current rates offered to us for debt of the same remaining
maturity and characteristics, or other valuation techniques, as appropriate.
December 31, 2002 December 31, 2001
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Carrying Fair Carrying Fair
Value Value Value Value
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Assets
Available-for-sale equity
securities................ $ -- $ -- $ 92 $ 92
Long-term receivables........ 464 443 154 145
Interest rate swap
agreements................ 76 76 5 5
Foreign currency exchange
contracts................. 8 8 5 5
Forward commodity
contracts................. 5 5 1 1
Liabilities
Long-term debt and related
current maturities
(excluding capitalized
leases)................... $(4,812) $(5,261) $(5,121) $(5,407)
Interest rate swap
agreements................ -- -- (10) (10)
Foreign currency exchange
contracts................. (16) (16) (11) (11)
Forward commodity
contracts................. -- -- (7) (7)
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NOTE 18. CAPITAL STOCK
We are authorized to issue up to 2,000,000,000 shares of common stock, with a
par value of one dollar. Common shareowners are entitled to receive such
dividends as may be declared by the Board, are entitled to one vote per share,
and are entitled, in the event of liquidation, to share ratably in all the
assets of Honeywell which are available for distribution to the common
shareowners. Common shareowners do not have preemptive or conversion rights.
Shares of common stock issued and outstanding or held in the treasury are not
liable to further calls or assessments. There are no restrictions on us relative
to dividends or the repurchase or redemption of common stock.
We are authorized to issue up to 40,000,000 shares of preferred stock, without
par value, and can determine the number of shares of each series, and the
rights, preferences and limitations of each series. At December 31, 2002, there
was no preferred stock outstanding.
NOTE 19. OTHER NONOWNER CHANGES IN SHAREOWNERS' EQUITY
Total nonowner changes in shareowners' equity are included in the Consolidated
Statement of Shareowners' Equity. The components of Accumulated Other Nonowner
Changes are as follows:
After-
Pretax Tax Tax
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Year Ended December 31, 2002
Unrealized gains on securities
available-for-sale.................. $ -- $ -- $ --
Reclassification adjustment for gains
on securities available-for-sale
included in net income.............. -- -- --
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Net unrealized gains arising
during the year..................... -- -- --
Foreign exchange translation
adjustments......................... 310 -- 310
Change in fair value of effective
cash flow hedges.................... 35 (13) 22
Minimum pension liability