Honeywell 2003 Annual Report Download - page 20

chemical plant which is alleged to have contributed mercury and other
contaminants to the Lake and certain surrounding areas. In May 2003, Honeywell
submitted to the New York State Department of Environmental Conservation (DEC) a
draft Feasibility Study for the Lake and certain surrounding areas. In November
2003, the DEC issued formal comments on the Feasibility Study. Those comments
include a request for further evaluation of remedies for the Lake and
surrounding areas. Accordingly, pursuant to the consent decree, Honeywell is
required to submit a revised Feasibility Study on or before May 3, 2004.
Provisions have been made in our financial statements based on our expected
revisions to our Feasibility Study. We do not expect that this matter will have
a material adverse effect on our consolidated financial position. However,
should the DEC ultimately require a substantially more extensive remedy than
that expected to be proposed in the revised Feasibility Study and should
Honeywell agree to undertake such a remedy, such outcome could have a material
adverse impact on our consolidated results of operations and operating cash
flows in the periods recognized or paid.
During 2003, three incidents occurred at our Baton Rouge, Louisiana chemical
plant including a release of chlorine, a release of antimony pentachloride which
resulted in an employee fatality, and an employee exposure to hydrofluoric acid.
As a result of these incidents, the United States Environmental Protection
Agency (USEPA), Occupational Health and Safety Administration (OSHA), the
Chemical Safety Board and state and local agencies commenced investigations. A
number of potential government claims have been settled, including a $110,000
penalty paid to OSHA for citations arising from the incidents. The USEPA and
Chemical Safety Board investigations are ongoing however no charges have been
filed or claims asserted. Honeywell has been served with several civil lawsuits.
We do not expect that these matters will have a material adverse effect on our
consolidated financial position, consolidated results of operations or operating
cash flows.
Further information regarding environmental matters is included in
Management's Discussion and Analysis of Financial Condition and Results of
Operations of our 2003 Annual Report to Shareowners which is incorporated
herein by reference.
Employees
We have approximately 108,000 employees at December 31, 2003, of which
approximately 61,000 were located in the United States.
Item 2. Properties
We have over 1,000 locations consisting of plants, research laboratories,
sales offices and other facilities. Our headquarters and administrative complex
is located at Morris Township, New Jersey. Our plants are generally located to
serve large marketing areas and to provide accessibility to raw materials and
labor pools. Our properties are generally maintained in good operating
condition. Utilization of these plants may vary with sales to customers and
other business conditions; however, no major operating facility is significantly
idle. We own or lease warehouses, railroad cars, barges, automobiles, trucks,
airplanes and materials handling and data processing equipment. We also lease
space for administrative and sales staffs. Our properties and equipment are in
good operating condition and are adequate for our present needs. We do not
anticipate difficulty in renewing existing leases as they expire or in finding
alternative facilities.
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