Honeywell 2008 Annual Report Download - page 98

HONEYWELL INTERNATIONAL INC.
NOTES TO FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)
In many cases our uncertain tax positions are related to tax years that remain subject to examination by the
relevant tax authorities. The following table summarizes these open tax years by major jurisdiction as of
December 31, 2008:
Jurisdiction
Open Tax Year
Examination in
progress Examination not yet
initiated
United States (1) 1998 – 2007 2007 – 2008
United Kingdom 2002 – 2006 2007 – 2008
Canada (1) 2003 – 2006 2007 – 2008
Germany (1) 2000 – 2003 2004 – 2008
France N/A 2000 – 2008
Netherlands 2002 – 2006 2007 – 2008
Australia N/A 2004 – 2008
China N/A 2005 – 2008
India 1999 – 2007 2008
(1) includes federal as well as state, provincial or similar local jurisdictions, as applicable
Based on the outcome of these examinations, or as a result of the expiration of statute of limitations for
specific jurisdictions, it is reasonably possible that the related unrecognized tax benefits for tax positions taken
regarding previously filed tax returns will materially change from those recorded as liabilities for uncertain tax
positions in our financial statements. In addition, the outcome of these examinations may impact the valuation of
certain deferred tax assets (such as net operating losses) in future periods. Based on the number of tax years
currently under audit by the relevant U.S federal, state and foreign tax authorities, the Company anticipates that
several of these audits may be finalized in the foreseeable future. However, based on the status of these
examinations, and the protocol of finalizing audits by the relevant tax authorities, which could include formal legal
proceedings, at this time it is not possible to estimate the impact of any amount of such changes, if any, to
previously recorded uncertain tax positions.
Unrecognized tax benefits for the above listed examinations in progress were $249 million and $199 million
as of December 31, 2008 and 2007, respectively. This increase is primarily due to reserves for examinations
initiated in 2008 and increases to prior reserves based on facts and circumstances as of the reporting date,
partially offset by the settlement of tax examinations and the expiration of various statute of limitations during the
year.
Estimated interest and penalties related to the underpayment of income taxes are classified as a component
of Tax Expense in the Consolidated Statement of Operations and totaled $19 million and $20 million for the years
ended December 31, 2008 and 2007, respectively. Accrued interest and penalties were $137 million and $118
million as of December 31, 2008 and December 31, 2007, respectively.
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