Honeywell 2008 Annual Report Download - page 142

HONEYWELL INTERNATIONAL INC.
NOTES TO FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)
A reconciliation of segment profit to consolidated income from continuing operations before taxes is as
follows:
Years Ended December 31,
2008 2007 2006
Segment profit $ 4,845 $ 4,654 $ 4,080
Other income (expense)(1) 665 53 111
Interest and other financial charges (456) (456) (374)
Stock compensation expense(2),(3) (128) (65) (77)
Pension and other postretirement benefits (expense)(2) (113) (322) (459)
Repositioning and other charges(2) (1,012) (543) (483)
Income from continuing operations before taxes $ 3,801 $ 3,321 $ 2,798
(1) Equity income/(loss) of affiliated companies was included in Segment Profit, on a prospective basis,
commencing January 1, 2008. Other income/(expense) as presented above includes equity income/(loss) of
affiliated companies of $10 and $13 million for the years ended December 31, 2007 and 2006, respectively.
(2) Amounts included in cost of products and services sold and selling, general and administrative expenses.
(3) Costs associated with restricted stock units ("RSU") were excluded from Segment Profit, on a prospective
basis, commencing January 1, 2008. Stock compensation expense, including RSU expense, totaled $112
and $106 million for the years ended December 31, 2007 and 2006, respectively. Stock option expense is
included for all periods presented.
Note 24—Geographic Areas—Financial Data
Net Sales(1) Long-lived Assets(2)
Years Ended December 31, Years Ended December 31,
2008 2007 2006 2008 2007 2006
United States $ 22,291 $ 21,101 $ 19,821 $ 14,193 $ 11,916 $ 11,438
Europe 9,484 9,104 7,781 2,050 2,706 2,161
Other International 4,781 4,384 3,765 1,143 1,036 848
$ 36,556 $ 34,589 $ 31,367 $ 17,386 $ 15,658 $ 14,447
(1) Sales between geographic areas approximate market and are not significant. Net sales are classified
according to their country of origin. Included in United States net sales are export sales of $3,506, $3,427 and
$3,493 million in 2008, 2007 and 2006, respectively.
(2) Long-lived assets are comprised of property, plant and equipment, goodwill and other intangible assets.