Honeywell 2008 Annual Report Download - page 128

HONEYWELL INTERNATIONAL INC.
NOTES TO FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)
NARCO and Bendix asbestos related balances are included in the following balance sheet accounts:
December 31,
2008 2007
Other current assets $ 4 $ 50
Insurance recoveries for asbestos related liabilities 1,029 1,086
$ 1,033 $ 1,136
Accrued liabilities $ 171 $ 250
Asbestos related liabilities 1,538 1,405
$ 1,709 $ 1,655
Other Matters
We are subject to a number of other lawsuits, investigations and disputes (some of which involve substantial
amounts claimed) arising out of the conduct of our business, including matters relating to commercial
transactions, government contracts, product liability, prior acquisitions and divestitures, employee benefit plans,
intellectual property, and health and safety matters. We recognize a liability for any contingency that is probable
of occurrence and reasonably estimable. We continually assess the likelihood of adverse judgments of outcomes
in these matters, as well as potential ranges of possible losses (taking into consideration any insurance
recoveries), based on a careful analysis of each matter with the assistance of outside legal counsel and, if
applicable, other experts. Included in these other matters are the following:
Allen, et al. v. Honeywell Retirement Earnings Plan—Pursuant to a settlement approved by the U.S.
District Court for the District of Arizona in February 2008, 18 of 21 claims alleged by plaintiffs in this class action
lawsuit were dismissed with prejudice in exchange for approximately $35 million and the maximum aggregate
liability for the remaining three claims (alleging that Honeywell impermissibly reduced the pension benefits of
certain employees of a predecessor entity when the plan was amended in 1983 and failed to calculate benefits in
accordance with the terms of the plan) was capped at $500 million. Any amounts payable, including the
settlement amount, have or will be paid from the Company's pension plan. We continue to expect to prevail on
the remaining claims in light of applicable law and our substantial affirmative defenses, which have not yet been
considered by the Court. Accordingly, we do not believe that a liability is probable of occurrence and reasonably
estimable with respect to these claims and we have not recorded a provision for the remaining claims in our
financial statements.
Quick Lube—On March 31, 2008, S&E Quick Lube, a filter distributor, filed suit in U.S. District Court for the
District of Connecticut alleging that twelve filter manufacturers, including Honeywell, engaged in a conspiracy to
fix prices, rig bids and allocate U.S. customers for aftermarket automotive filters. This suit is a purported class
action on behalf of direct purchasers of filters from the defendants. Parallel purported class actions, including on
behalf of indirect purchasers of filters, have been filed by other plaintiffs in a variety of jurisdictions in the United
States and Canada. The U.S cases have been consolidated into a single multi-district litigation in the Northern
District of Illinois. We intend to vigorously defend the claims raised in these actions. The Antitrust Division of the
Department of Justice (DOJ) is also investigating the allegations raised in these suits. We are fully cooperating
with the DOJ investigation.
Gyros—In March 2008, the U.S. Department of State advised Honeywell that it is reviewing Honeywell's
compliance with applicable U.S. export controls in connection with the Company's export of its GG1320 gyros
and related inertial navigation systems under State and Commerce Department
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