Honeywell 2008 Annual Report Download - page 138

HONEYWELL INTERNATIONAL INC.
NOTES TO FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)
drug coverage that is at least actuarially equivalent to that offered by Medicare Part D. The impact of the Act
reduced other postretirement benefits expense by approximately $21, $25 and $37 million in 2008, 2007 and
2006, respectively.
December 31,
2008 2007
Assumed health care cost trend rate:
Health care cost trend rate assumed for next year 8.0% 8.5%
Rate that the cost trend rate gradually declines to 5.5% 5.5%
Year that the rate reaches the rate it is assumed to remain at 2014 2014
The assumed health care cost trend rate has a significant effect on the amounts reported. A one-percentage-
point change in the assumed health care cost trend rate would have the following effects:
1 percentage point
Increase Decrease
Effect on total of service and interest cost components $ 4 $ (4)
Effect on postretirement benefit obligation $ 68 $ (61)
Benefit payments reflecting expected future service, as appropriate, are expected to be paid as follows:
Without Impact
of
Medicare Subsidy Net of
Medicare Subsidy
2009 $ 219 $ 204
2010 221 207
2011 221 208
2012 206 193
2013 198 185
2014-2018 892 831
Employee Savings Plans
We sponsor employee savings plans under which we match, in the form of our common stock, savings plan
contributions for certain eligible employees. Shares issued under the stock match plans were 4.9, 3.7 and 4.5
million at a cost of $220, $199 and $179 million in 2008, 2007 and 2006, respectively.
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