Honeywell 2003 Annual Report Download - page 339

asset returns below the expected rate of return during the period 2000 to
2002.
o A reduction in 2003 in the expected rate of return on plan assets from 10
to 9 percent in response to the continued deterioration in financial market
returns in 2002.
o A decrease in the discount rate from 7.75 percent in 2001 to 6.75 percent
in 2003.
Using an expected long-term rate of return of 9 percent and a discount rate of 6
percent, pension expense for our U.S. plans is expected to be $380 million in
2004, an increase of $241 million compared with 2003.
(Gain) Loss on Sale of Non-Strategic Businesses
(Dollars in Millions) 2003 2002 2001
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(Gain) loss on sale of non-strategic businesses ........... $(38) $124 $--
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Gain on sale of non-strategic businesses of $38 million in 2003 represents the
net pretax gain on the dispositions of certain Specialty Materials (Engineering
Plastics, Rudolstadt and Metglas) and Aerospace (Honeywell Aerospace Defense
Services) businesses. The dispositions of these businesses did not materially
impact net sales and segment profit in 2003 compared with 2002. Loss on sale of
non-strategic businesses
32