Honeywell 2005 Annual Report Download - page 117

HONEYWELL INTERNATIONAL INC.
NOTES TO FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)
Employee Savings Plans—We sponsor employee savings plans under which we match, in the form of our common stock, savings
plan contributions for certain eligible U.S. employees. Shares issued under the stock match plans were 4.1, 4.3 and 6.5 million at a
cost of $153, $151 and $173 million in 2005, 2004 and 2003, respectively.
Note 23—Segment Financial Data
We globally manage our business operations through four reportable segments serving customers worldwide with aerospace
products and services, control, sensing and security technologies for buildings, homes and industry, automotive products and
chemicals. Segment information is consistent with how management reviews the businesses, makes investing and resource allocation
decisions and assesses operating performance. Our four reportable segments are as follows:
• Aerospace is organized by customer end-market (Air Transport and Regional, Business and General Aviation and Defense
and Space) and provides products and services which include auxiliary power units; propulsion engines; environmental
control systems; engine controls; repair and overhaul services; hardware; logistics; electric power systems; flight safety,
communications, navigation, radar and surveillance systems; aircraft and airport lighting; management and technical
services; advanced systems and instruments; and aircraft wheels and brakes.
• Automation and Control Solutions includes 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 and electrical current; security, fire
and gas 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, electronic materials and chemicals, and catalysts and adsorbents.
• Transportation Systems includes Honeywell Turbo Technologies (turbochargers and charge-air and thermal systems); and the
Consumer Products Group (car care products including anti-freeze, filters, spark plugs, and cleaners, waxes and additives;
and brake hard parts and other friction materials).
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) 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).
Pension and other postretirement benefits (expense) 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. Intersegment sales approximate market and are not significant.
Reportable segment data follows:
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