Honeywell 2004 Annual Report Download - page 111

HONEYWELL INTERNATIONAL INC.
NOTES TO FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)
logistics and electric power systems); Aerospace Electronic Systems (flight safety, communications, navigation, radar and
surveillance systems; aircraft and airport lighting; management and technical services and advanced systems and
instruments); and Aircraft Landing Systems (aircraft wheels and brakes).
• Automation and Control Solutions includes Automation and Control Products (controls for heating, cooling, indoor air
quality, ventilation, humidification and home automation; advanced software applications for home/building control and
optimization; sensors, switches, control systems and instruments for measuring pressure, air flow, temperature, electrical
current; and security and fire detection, access control, video surveillance and remote patient monitoring systems); Building
Solutions (installs, maintains and upgrades systems that keep buildings safe, comfortable and productive); and Process
Solutions (provides a full range of automation and control solutions for industrial plants, offering advanced software and
automation systems that integrate, control and monitor complex processes in many types of industrial settings).
• Specialty Materials includes fluorocarbons, specialty films, advanced fibers, customized research chemicals and
intermediates, and electronic materials and chemicals.
• Transportation Systems includes Honeywell Turbo Technologies (turbochargers and charge-air and thermal systems); the
Consumer Products Group (car care products including anti-freeze, filters, spark plugs, and cleaners, waxes and additives);
and Friction Materials (friction materials and related brake system components).
The accounting policies of the segments are the same as those described in Note 1. Honeywell's senior management evaluates
segment performance based on segment profit. Segment profit is business unit income (loss) before taxes excluding general corporate
unallocated expenses, gains (losses) on sales of non-strategic businesses, equity income (loss), other income (expense), interest and
other financial charges, pension and other postretirement benefits (expense) income and repositioning and other charges and
accounting changes. In 2003, Honeywell changed its definition of segment profit to exclude pension and other postretirement benefits
(expense) income. Pension and other postretirement benefits (expense) income is significantly impacted by external factors such as
investment returns, interest rates and other actuarial assumptions that Honeywell does not consider indicative of the underlying
business segment operating performance under the control of business unit management. All periods presented in this annual report
have been restated to reflect this change. Intersegment sales approximate market and are not significant. Reportable segment data
follows:
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