Honeywell 2008 Annual Report Download - page 57

liabilities to be higher or lower than those projected and recorded. See Asbestos Matters in Note 21 to the
financial statements for additional information.
(5) These amounts represent probable insurance recoveries through 2018 based on our insurance recoveries
that are deemed probable for asbestos related liabilities as of December 31, 2008. See Asbestos Matters in
Note 21 to the financial statements for additional information.
(6) The table excludes $671 million of uncertain tax positions. See Note 6 to the financial statements.
The table also excludes our pension and other postretirement benefits (OPEB) obligations. We made
voluntary cash contributions of $42, $42 and $68 million to our U.S. pension plans in 2008, 2007 and 2006,
respectively. In December 2008, we also made a voluntary contribution of $200 million of Honeywell common
stock to our U.S. plans to improve the funded status of our plans which deteriorated during 2008 due to the
significant asset losses resulting from the poor performance of the equity markets. During 2009, we plan to make
additional voluntary contributions of Honeywell common stock to our U.S. plans totaling approximately $800
million to improve the funded status of our plans. Any additional future plan contributions necessary to satisfy
minimum statutory funding requirements are dependent upon actual plan asset returns and interest rates.
Assuming that actual plan returns are consistent with our expected plan return of 9 percent in 2009, interest rates
remain constant, and there are no additional changes to U.S. pension funding legislation, we expect that we
would be required to make contributions to our U.S. pension plans of approximately $360, $700, $1,000 and
$800 million in 2010, 2011, 2012 and 2013, respectively, to satisfy minimum statutory funding requirements. We
may also make voluntary contributions to our U.S. pension plans from time to time. We also expect to make cash
contributions to our non-U.S. plans of approximately $140 million in 2009. Payments due under our OPEB plans
are not required to be funded in advance, but are paid as medical costs are incurred by covered retiree
populations, and are principally dependent upon the future cost of retiree medical benefits under our plans. We
expect our OPEB payments to approximate $204 million in 2009 net of the benefit of approximately $15 million
from the Medicare prescription subsidy. See Note 22 to the financial statements for further discussion of our
pension and OPEB plans.
Off-Balance Sheet Arrangements
Following is a summary of our off-balance sheet arrangements:
Guarantees—We have issued or are a party to the following direct and indirect guarantees at December 31,
2008:
Maximum
Potential
Future
Payments
(Dollars in millions)
Operating lease residual values $ 39
Other third parties' financing 4
Unconsolidated affiliates' financing 3
Customer financing 16
$ 62
We do not expect that these guarantees will have a material adverse effect on our consolidated results of
operations, financial position or liquidity.
In connection with the disposition of certain businesses and facilities we have indemnified the purchasers for
the expected cost of remediation of environmental contamination, if any, existing on the date of disposition. Such
expected costs are accrued when environmental assessments are made or remedial efforts are probable and the
costs can be reasonably estimated.
Retained Interests in Factored Pools of Trade Accounts Receivables—As a source of liquidity, we sell
interests in designated pools of trade accounts receivables to third parties. The sold receivables ($500 million at
December 31, 2008) are over-collateralized and we retain a subordinated interest in the pool of receivables
representing that over-collateralization as well as an undivided interest in the balance of the receivables pools.
The over-collateralization provides credit support to the
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