Honeywell 2008 Annual Report Download - page 87

HONEYWELL INTERNATIONAL INC.
NOTES TO FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)
As of December 31, 2008, the purchase accounting for Norcross and Metrologic are still subject to final
adjustment primarily for useful lives, amounts allocated to intangible assets and goodwill, for certain pre-
acquisition contingencies, and for settlement of post closing purchase price adjustments.
In connection with all acquisitions in 2008, 2007 and 2006, the amounts recorded for transaction costs and
the costs of integrating the acquired businesses into Honeywell were not material.
The pro forma results for 2008, 2007 and 2006, assuming these acquisitions had been made at the
beginning of the year, would not be materially different from consolidated reported results.
Note 3—Repositioning and Other Charges
A summary of repositioning and other charges follows:
Years Ended December 31,
2008 2007 2006
Severance $ 333 $ 186 $ 102
Asset impairments 78 14 15
Exit costs 33 9 7
Reserve adjustments (20) (18) (22)
Total net repositioning charge 424 191 102
Asbestos related litigation charges, net of insurance 125 100 126
Probable and reasonably estimable environmental liabilities 465 225 210
Business impairment charges — 9 12
Arbitration award related to phenol supply agreement — — (18)
Other (2) 18 51
Total net repositioning and other charges $ 1,012 $ 543 $ 483
The following table summarizes the pretax distribution of total net repositioning and other charges by income
statement classification.
Years Ended December 31,
2008 2007 2006
Cost of products and services sold $ 908 $ 495 $ 472
Selling, general and administrative expenses 104 48 11
$ 1,012 $ 543 $ 483
The following table summarizes the pretax impact of total net repositioning and other charges by segment.
Years Ended December 31,
2008 2007 2006
Aerospace $ 84 $ 37 $ 10
Automation and Control Solutions 164 127 39
Specialty Materials 42 14 5
Transportation Systems 233 119 293
Corporate 489 246 136
$ 1,012 $ 543 $ 483
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