Honeywell 2005 Annual Report Download - page 90

HONEYWELL INTERNATIONAL INC.
NOTES TO FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)
Intangible assets are comprised of:
December 31, 2005 December 31, 2004
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Intangible assets with determinable lives:
Investments in Aerospace sales incentives $ 1,018 $ (215) $ 803 $ 952 $ (176) $ 776
Patents and trademarks 512 (326) 186 445 (310) 135
Other 1,153 (273) 880 512 (219) 293
2,683 (814) 1,869 1,909 (705) 1,204
Trademark with indefinite life 116 (9) 107 46 (9) 37
$ 2,799 $ (823) $ 1,976 $ 1,955 $ (714) $ 1,241
Aerospace sales incentives capitalized were $71, $93 and $95 million in 2005, 2004 and 2003, respectively. Aerospace sales
incentives amortized to income were $44, $36 and $38 million in 2005, 2004 and 2003, respectively. Sales incentives related to certain
auxiliary power units where we are not the sole supplier were $13, $9 and $13 million in 2005, 2004 and 2003, respectively, and were
expensed as incurred.
Intangible assets amortization expense was $119, $78 and $66 million in 2005, 2004 and 2003, respectively. Estimated intangible
assets amortization expense for each of the five succeeding years approximates $140 million.
Note 14—Accrued Liabilities
December 31,
2005 2004
Compensation and benefit costs $ 996 $ 926
Customer advances and deferred income 932 775
Income taxes 361 217
Environmental costs 237 267
Asbestos related liabilities 520 744
Product warranties and performance guarantees 322 270
Other 1,991 1,772
$5,359 $4,971
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