Honeywell 2003 Annual Report Download - page 352

Financial Statements for further discussion), asbestos related litigation
charges of $159 million (see Note 21 of Notes to Financial Statements for
further discussion), customer claims and settlements of contract liabilities of
$310 million and write-offs of receivables, inventories and other assets of $335
million. Our Friction Materials business was designated as held for disposal,
and we recognized an impairment charge of $145 million related to the write-down
of property, plant and equipment, goodwill and other identifiable intangible
assets to their fair value less costs to sell. We recognized charges of $112
million related to an other than temporary decline in the value of an equity
investment and an equity investee's loss contract, and a $100 million charge for
write-off of investments, including inventory, related to a regional jet engine
contract cancellation. We also recognized $42 million of transaction expenses
related to the proposed merger with General Electric and redeemed our $200
million 5 3/4% dealer remarketable securities due 2011, resulting in a loss of
$6 million.
The following tables provide details of the pretax impact of total net
repositioning, litigation, business impairment and other charges by reportable
segment.
Aerospace
(Dollars in Millions) 2003 2002 2001
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Net repositioning charge ................................. $10 $ 15 $198
Litton litigation settlement ............................. -- -- 440
Other probable and reasonably estimable legal and
environmental liabilities ............................. -- -- 2
Customer claims and settlements of contract liabilities .. -- 99 111
Write-offs of receivables, inventories and other assets .. -- 21 44
Investment impairment charges ............................ -- 11 --
Aerospace jet engine contract cancellation ............... -- -- 100
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$10 $146 $895
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Automation and Control Solutions
(Dollars in Millions) 2003 2002 2001
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Net repositioning charge ................................. $(22) $131 $289
Other probable and reasonably estimable legal and
environmental liabilities ............................. -- -- 53
Business impairment charges .............................. -- 22 --
Customer claims and settlements of contract liabilities .. -- 42 114
Write-offs of receivables, inventories and other assets .. -- 17 236
Investment impairment charges ............................ -- -- 93
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$(22) $212 $785
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Specialty Materials
(Dollars in Millions) 2003 2002 2001
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Net repositioning charge ................................. $16 $167 $172
Other probable and reasonably estimable legal and
environmental liabilities ............................. -- 23 --
Business impairment charges .............................. -- 763 --
Customer claims and settlements of contract liabilities .. -- 11 29
Write-offs of receivables, inventories and other assets .. 2 12 22
Investment impairment charges ............................ 2 -- 19
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$20 $976 $242
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Transportation Systems
(Dollars in Millions) 2003 2002 2001
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Net repositioning charge ................................. $ 5 $ 26 $133
Asbestos related litigation charges, net of insurance .... -- 167 --
Other probable and reasonably estimable legal and
environmental liabilities ............................. 11 -- 2
Business impairment charges .............................. -- 92 145
Customer claims and settlements of contract liabilities .. -- -- 56
Write-offs of receivables, inventories and other assets .. -- 10 31
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$16 $295 $367
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