Honeywell 2007 Annual Report Download - page 125
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HONEYWELL INTERNATIONAL INC.
NOTES TO FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)
Insurance Recoveries for Asbestos Related Liabilities
Year Ended December 31, 2007 Year Ended December 31, 2006 Year Ended December 31, 2005
Bendix NARCO Total Bendix NARCO Total Bendix NARCO
Beginning of year $ 302 $ 955 $ 1,257 $ 377 $ 1,096 $ 1,473 $ 336 $ 1,226
Probable insurance recoveries related
to claims filed 6 — 6 11 — 11 34 —
Probable insurance recoveries related
to annual update of expected
resolution values for pending claims (4 ) — (4 ) 39 — 39 (15 ) —
Insurance receipts for asbestos related
liabilities (107) (16) (123 ) (166 ) (100 ) (266 ) (33 ) (127 )
Insurance receivables settlements and
write-offs(1) — — — 34 (41 ) (7 ) 41 —
Other — — — 7 — 7 14 (3 )
End of year $ 197 $ 939 $ 1,136 $ 302 $ 955 $ 1,257 $ 377 $ 1,096
(1) In 2006, $34 million reflects gains from settlements with two Bendix insurance carriers and $41 million
represents the write-down of the NARCO insurance receivable to reflect the reduction in the estimated cost of
future claims. In 2005, consists of gains from insurance settlements of $172 million principally related to a
structured insurance settlement with a carrier which converted a policy into a future, fixed, non-contingent
payment stream, and charges of $131 million for write-offs of certain amounts due from insurance carriers.
NARCO and Bendix asbestos related balances are included in the following balance sheet accounts:
December 31,
2007 2006
Other current assets $ 50 $ 157
Insurance recoveries for asbestos related liabilities 1,086 1,100
$ 1,136 $ 1,257
Accrued liabilities $ 250 $ 557
Asbestos related liabilities 1,405 1,262
$ 1,655 $ 1,819
Other Matters
Allen, et, al. v. Honeywell Retirement Earnings Plan—During the third quarter of 2007, we agreed to a
settlement in principle with the plaintiffs in this class action lawsuit relating to allegations that, among other
things, Honeywell impermissibly reduced the pension benefits of certain employees of the former Garrett
Corporation (a predecessor entity by merger) when the plan was amended in 1983 and failed to calculate certain
benefits in accordance with the terms of the plan. Under the terms of the settlement, 18 of the 21 claims alleged