Honeywell 2008 Annual Report Download - page 119

HONEYWELL INTERNATIONAL INC.
NOTES TO FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)
With respect to environmental matters involving site contamination, we continually conduct studies,
individually or jointly with other potentially responsible parties, to determine the feasibility of various remedial
techniques. It is our policy to record appropriate liabilities for environmental matters when remedial efforts or
damage claim payments are probable and the costs can be reasonably estimated. Such liabilities are based on
our best estimate of the undiscounted future costs required to complete the remedial work. The recorded
liabilities are adjusted periodically as remediation efforts progress or as additional technical, regulatory or legal
information becomes available. Given the uncertainties regarding the status of laws, regulations, enforcement
policies, the impact of other potentially responsible parties, technology and information related to individual sites,
we do not believe it is possible to develop an estimate of the range of reasonably possible environmental loss in
excess of our recorded liabilities. We expect to fund expenditures for these matters from operating cash flow. The
timing of cash expenditures depends on a number of factors, including the timing of remedial investigations and
feasibility studies, the timing of litigation and settlements of remediation liability, personal injury and property
damage claims, regulatory approval of cleanup projects, remedial techniques to be utilized and agreements with
other parties. The following table summarizes information concerning our recorded liabilities for environmental
costs:
Years Ended December,
2008 2007 2006
Beginning of year $ 799 $ 831 $ 879
Accruals for environmental matters deemed probable and reasonably estimable 466 230 218
Environmental liability payments (320) (267) (264)
Other adjustments 1 5 (2)
End of year $ 946 $ 799 $ 831
See Note 3, Repositioning and Other Charges, for more detail regarding accruals for environmental matters
during 2008.
Environmental liabilities are included in the following balance sheet accounts:
December 31, 2008 December 31, 2007
Accrued liabilities $ 343 $ 311
Other liabilities 603 488
$ 946 $ 799
Although we do not currently possess sufficient information to reasonably estimate the amounts of liabilities
to be recorded upon future completion of studies, litigation or settlements, and neither the timing nor the amount
of the ultimate costs associated with environmental matters can be determined, they could be material to our
consolidated results of operations or operating cash flows in the periods recognized or paid. However,
considering our past experience and existing reserves, we do not expect that these environmental matters will
have a material adverse effect on our consolidated financial position.
New Jersey Chrome Sites—Provisions have been made in our financial statements for the estimated costs
of the court-ordered excavation and transport for offsite disposal of approximately one million tons of chromium
residue present at a predecessor Honeywell site located in Jersey City, New Jersey, known as Study Area 7.
These expenditures have been and are expected to continue to be incurred evenly through the remedy's
expected completion date in 2010. We do not expect implementation of this remedy to have a material adverse
effect on our future consolidated results of operations, operating cash flows or financial position. Provision also
has been made in our financial statements for the estimated costs of implementing related groundwater remedial
plans approved by
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