Honeywell 2005 Annual Report Download - page 240

knowledge of any pertinent solvency issues surrounding insurers and various judicial determinations relevant to our insurance programs.
Projecting future events is subject to many uncertainties that could cause the NARCO related asbestos liabilities to be higher or lower than those
projected and recorded. There is no assurance that a plan of reorganization will be proposed or confirmed, that insurance recoveries will be timely or whether
there will be any NARCO related asbestos claims beyond 2018. Given the inherent uncertainty in predicting future events, we review our estimates
periodically, and update them based on our experience and other relevant factors. Similarly we will reevaluate our projections concerning our probable
insurance recoveries in light of any changes to the projected liability or other developments that may impact insurance recoveries.
Friction Products – Honeywell's Bendix Friction Materials (Bendix) business manufactured automotive brake pads that contained chrysotile asbestos in
an encapsulated form. There is a group of existing and potential claimants consisting largely of individuals that allege to have performed brake replacements.
From 1981 through June 30, 2005, we have resolved approximately 74,000 Bendix related asbestos claims including trials covering 120 plaintiffs,
which resulted in 115 favorable verdicts. Trials covering five individuals resulted in adverse verdicts; however, two of these verdicts were reversed on appeal
and the remaining three claims were settled. The following tables present information regarding Bendix related asbestos claims activity:
Years Ended
December 31,
Six Months Ended
Claims Activity June 30, 2005 2004 2003
Claims Unresolved at the beginning of period 76,348 72,976 50,821
Claims Filed 5,158 10,504 25,765
Claims Resolved (2,820) (7,132) (3,610)
Claims Unresolved at the end of period 78,686 76,348 72,976
December 31,
Disease Distribution of Unresolved Claims June 30, 2005 2004 2003
Mesothelioma and Other Cancer Claims 3,766 3,534 3,277
Other Claims 74,920 72,814 69,699
Total Claims 78,686 76,348 72,976
Approximately 30 percent of the approximately 79,000 pending claims at June 30, 2005 are on the inactive, deferred, or similar dockets established in
some jurisdictions for claimants who allege minimal or no impairment. The approximately 79,000 pending claims also include claims
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