Honeywell 2003 Annual Report Download - page 376

incurred. The adoption of the provisions of SFAS No. 146 impacted the
measurement and timing of costs associated with any exit or disposal activities
initiated after December 31, 2002.
In June 2001, the FASB issued Statement of Financial Accounting Standards No.
143, "Accounting for Asset Retirement Obligations" (SFAS No. 143) which requires
recognition of the fair value of obligations associated with the retirement of
tangible long-lived assets when there is a legal obligation to incur such costs.
Upon initial recognition of a liability the cost is capitalized as part of the
related long-lived asset and depreciated over the corresponding asset's useful
life. SFAS No. 143 primarily impacts our accounting for costs associated with
the future retirement of nuclear fuel conversion facilities in our Specialty
Materials reportable segment. Upon adoption on January 1, 2003, we recorded an
increase in property, plant and equipment, net of $16 million and recognized an
asset retirement obligation of $47 million. This
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