Honeywell 2006 Annual Report Download - page 45
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Years Ended December 31,
2006 2005 2004
(Dollars in millions)
Automation and Control Solutions
Net repositioning charge $39 $84 $15
Other — 1 13
$39 $85 $28
Years Ended December 31,
2006 2005 2004
(Dollars in millions)
Specialty Materials
Net repositioning charge $ 11 $ 14 $36
Business impairment charges 12 23 42
Arbitration award related to phenol supply agreement (18) (67) —
Other — (4) 12
$ 5 $(34) $90
Years Ended December 31,
2006 2005 2004
(Dollars in millions)
Transportation Systems
Net repositioning charge $ 32 $49 $ 26
Asbestos related litigation charges, net of insurance 261 31 120
Other — 2 1
$293 $82 $147
Years Ended December 31,
2006 2005 2004
(Dollars in millions)
Corporate
Net repositioning charge $ 10 $ (1) $ 6
Asbestos related litigation charges, net of insurance (135) (21) (44)
Probable and reasonably estimable environmental liabilities 210 186 536
Other 51 19 17
$ 136 $183 $515
In 2006, we recognized repositioning charges totaling $124 million primarily for severance costs related to workforce reductions
of 2,253 manufacturing and administrative positions across all of our reportable segments. Also, $22 million of previously established
accruals, primarily for severance at our Aerospace, Transportation Systems and Specialty Materials reportable segments, were
returned to income in 2006 due mainly to changes in the scope of previously announced severance programs and due to fewer
employee separations than originally planned associated with prior Aerospace severance actions.
In 2005, we recognized repositioning charges totaling $267 million primarily for severance costs related to workforce reductions
of 5,269 maufacturing and administrative positions across all of our reportable segments including the implementation of a new
organizational structure in our Aerospace reportable segment (substantially implemented in the third quarter of 2005) which
reorganized our Aerospace businesses to better align with customer segments. Also, $25 million of previously established accruals,
primarily for severance at our Corporate, Specialty Materials and Automation and Control Solutions reportable segments were
returned to income in 2005. The reversal of severance liabilities related to changes in the scope of previously announced severance
programs, excise taxes related to an executive severance amount previously paid which were determined to no longer be payable, and