Honeywell 2008 Annual Report Download - page 101

HONEYWELL INTERNATIONAL INC.
NOTES TO FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)
December 31,
2008 2007
Designated pools of trade receivables $ 1,073 $ 1,322
Interest sold to third parties (500) (500)
Retained interest $ 573 $ 822
Losses on sales of receivables were $18, $29 and $27 million in 2008, 2007 and 2006, respectively. No
credit losses were incurred during those years.
Note 9—Inventories
December 31,
2008 2007
Raw materials $ 1,644 $ 1,692
Work in process 952 870
Finished products 1,415 1,501
4,011 4,063
Less—
Progress payments (3) (3)
Reduction to LIFO cost basis (160) (199)
$ 3,848 $ 3,861
Inventories valued at LIFO amounted to $269 and $247 million at December 31, 2008 and 2007,
respectively. Had such LIFO inventories been valued at current costs, their carrying values would have been
approximately $160 and $199 million higher at December 31, 2008 and 2007, respectively.
Note 10—Investments and Long-Term Receivables
December 31,
2008 2007
Investments $ 153 $ 40
Long-term trade and other receivables 209 223
Long-term financing receivables 308 237
$ 670 $ 500
Long-Term Trade and Other Receivables includes $36 and $63 million of unbilled balances under long-term
contracts as of December 31, 2008 and 2007, respectively. These amounts are billed in accordance with the
terms of the customer contracts to which they relate.
Note 11—Property, Plant and Equipment
December 31,
2008 2007
Land and improvements $ 475 $ 409
Machinery and equipment 10,075 10,243
Buildings and improvements 2,429 2,244
Construction in progress 407 466