Honeywell 2003 Annual Report Download - page 349

statement classification:
(Dollars in Millions) 2003 2002 2001
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Cost of goods sold ................................... $272 $ 561 $2,134
Selling, general and administrative expenses ......... 4 45 151
Asbestos related litigation charges, net of
insurance ......................................... -- 1,548 159
Business impairment charges .......................... -- 877 145
Equity in (income) loss of affiliated companies ...... 2 13 200
Other (income) expense ............................... -- 15 6
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$278 $3,059 $2,795
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In 2003, we recognized a repositioning charge of $82 million mainly for
severance costs related to workforce reductions of 1,501 manufacturing and
administrative positions across all of our reportable segments. Also, $69
million of previously established accruals, mainly for severance, were returned
to income in 2003, due to fewer employee separations than originally anticipated
associated with certain 2002 repositioning actions, resulting in reduced
severance liabilities in our Automation and Control Solutions, Aerospace and
Specialty Materials reportable segments.
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