Honeywell 2006 Annual Report Download - page 80
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HONEYWELL INTERNATIONAL INC.
NOTES TO FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)
further detail in Note 21. We recognized asbestos related litigation charges, net of insurance, of $76 million which are discussed in
Note 21. We recognized an impairment charge of $42 million in the second quarter of 2004 related principally to the write-down of
property, plant and equipment of our Performance Fibers business in our Specialty Materials reportable segment. This business was
sold in December 2004. We also recognized other charges of $33 million consisting of $29 million for various legal settlements
including property damage claims in our Automation and Control Solutions reportable segment, $14 million for the write-off of
receivables, inventories and other assets net of a reversal of a reserve of $10 million established in the prior year for a contract
settlement.
Note 4—Other (Income)/Expense
Years Ended December 31,
2006 2005 2004
Gain on sale of non-strategic businesses and assets $ (30) $ (36) $(255)(1)
Equity (income)/loss of affiliated companies (13) (134)(2) (82)(2)
Interest income (94) (84) (100)
Foreign exchange 18 21 28
Other (net) 8 2 (20)(3)
$(111) $(231) $(429)
(1)
Includes pretax gains on the sales of our Security Monitoring and VCSEL Optical Products businesses of $215 and $36 million,
respectively.
(2)
Includes equity income of $107 million in 2005 and $71 million in 2004 from UOP (acquisition to full ownership in November
2005).
(3) Includes recognition of a gain of $27 million related to the settlement of a patent infringement lawsuit.
Note 5—Interest and Other Financial Charges
Years Ended December 31,
2006 2005 2004
Total interest and other financial charges $396 $373 $349
Less—capitalized interest (22) (17) (18)
$374 $356 $331
The weighted average interest rate on short-term borrowings and commercial paper outstanding at December 31, 2006 and 2005
was 5.67 percent and 4.48 percent, respectively.
Note 6—Income Taxes
Income from continuing operations before taxes
Years Ended December 31,
2006 2005 2004
United States $1,882 $1,530 $ 821
Foreign 916 766 802
$2,798 $2,296 $1,623