Honeywell 2008 Annual Report Download - page 126

HONEYWELL INTERNATIONAL INC.
NOTES TO FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)
Refractory and Friction Products—The following tables summarize information concerning NARCO and
Bendix asbestos related balances:
Asbestos Related Liabilities
Year Ended December 31, 2008 Year Ended December 31, 2007 Year Ended December 31, 2006
Bendix NARCO Total Bendix NARCO Total Bendix NARCO
Beginning of year $ 517 $ 1,138 $ 1,655 $ 528 $ 1,291 $ 1,819 $ 287 $ 1,782
Accrual for pending claims and
defense costs incurred 153 — 153 122 — 122 125 —
Accrual for estimated cost of future
claims 43 — 43 — — — 335 —
Reduction in estimated cost of future
claims — — — (8 ) — (8 ) — (207 )
Asbestos related liability payments (140 ) (7 ) (147 ) (115 ) (153 ) (268 ) (103 ) (316 )
Settlement with plaintiff firms of certain
pending asbestos claims — — — — — — — 32
Update of expected resolution values
for pending claims 5 — 5 (10) — (10 ) (118 ) —
Other — — — — — — 2 —
End of year $ 578 $ 1,131 $ 1,709 $ 517 $ 1,138 $ 1,655 $ 528 $ 1,291
Insurance Recoveries for Asbestos Related Liabilities
Year Ended December 31,
2008 Year Ended December 31,
2007 Year Ended December 31,
2006
Bendix NARCO Total Bendix NARCO Total Bendix NARCO
Beginning of year $ 197 $ 939 $ 1,136 $ 302 $ 955 $ 1,257 $ 377 $ 1,096
Probable insurance recoveries related
to claims filed 39 — 39 6 — 6 11 —
Probable insurance recoveries related
to annual update of expected
resolution values for pending claims 1 — 1 (4 ) — (4 ) 39 —
Insurance receipts for asbestos related
liabilities (116) (62) (178 ) (107 ) (16 ) (123 ) (166 ) (100 )
Insurance receivables settlements and
write-offs(1) 36 — 36 — — — 34 (41 )
Other (1) — (1 ) — — — 7 —
End of year $ 156 $ 877 $ 1,033 $ 197 $ 939 $ 1,136 $ 302 $ 955
(1) In 2008, $36 million reflects gains from settlements with two Bendix insurance carriers. 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.
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