Honeywell 2004 Annual Report Download - page 73

HONEYWELL INTERNATIONAL INC.
NOTES TO FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)
Note 3—Repositioning and Other Charges
A summary of repositioning and other charges follows:
Years Ended December 31,
2004 2003 2002
Severance $ 85 $ 69 $ 270
Asset impairments 21 6 121
Exit costs 10 7 62
Reserve adjustments (28) (69) (76)
Total net repositioning charge 88 13 377
Asbestos related litigation charges, net of insurance 76 — 1,548
Other probable and reasonably estimable legal and
environmental liabilities 565 261 30
Business impairment charges 42 — 877
Customer claims and settlements of contract liabilities (10) — 152
Write-offs of receivables, inventories and other assets 14 2 60
Investment impairment charges — 2 15
Total net repositioning and other charges $775 $278 $3,059
The following table summarizes the pretax distribution of total net repositioning and other charges by income statement
classification.
Years Ended December 31,
2004 2003 2002
Cost of products and services sold $621 $272 $ 561
Selling, general and administrative expenses 25 4 45
Asbestos related litigation charges, net of insurance 76 — 1,548
Business impairment charges 42 — 877
Equity in (income) loss of affiliated companies 6 2 13
Other (income) expense 5 — 15
$775 $278 $3,059
The following table summarizes the pretax impact of total net repositioning and other charges by reportable segment.
Years Ended December 31,
2004 2003 2002
Aerospace $ (5) $ 10 $ 146
Automation and Control Solutions 28 (22) 212
Specialty Materials 90 20 976
Transportation Systems 147 16 295
Corporate 515 254 1,430
$775 $278 $3,059