Honeywell 2009 Annual Report Download - page 123

HONEYWELL INTERNATIONAL INC.
NOTES TO FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)
period recognized but would not be material to our consolidated financial position or operating cash flows.
Projecting future events is subject to many uncertainties that could cause the NARCO related asbestos
liabilities or assets to be higher or lower than those projected and recorded. There is no assurance that the plan
of reorganization will become final, that insurance recoveries will be timely or whether there will be any NARCO
related asbestos claims beyond 2018. Given the inherent uncertainty in predicting future events, we review our
estimates periodically, and update them based on our experience and other relevant factors. Similarly we will
reevaluate our projections concerning our probable insurance recoveries in light of any changes to the projected
liability or other developments that may impact insurance recoveries.
Friction Products—Honeywell's Bendix friction materials (Bendix) business manufactured automotive brake
parts that contained chrysotile asbestos in an encapsulated form. Existing and potential claimants consist largely
of individuals who allege exposure to asbestos from brakes from either performing or being in the vicinity of
individuals who performed brake replacements.
From 1981 through December 31, 2009, we have resolved approximately 152,000 Bendix related asbestos
claims. We had 129 trials resulting in favorable verdicts and 17 trials resulting in adverse verdicts. Four of these
adverse verdicts were reversed on appeal, five verdicts were vacated on post-trial motions, three claims were
settled and the remaining five have been or will be appealed. The claims portfolio was reduced in 2009 due to
settlements, dismissals and the elimination of significantly aged (i.e., pending for more than six years), inactive
(including claims for which the required medical and exposure showings have not been made) and duplicate
claims. The following tables present information regarding Bendix related asbestos claims activity:
Claims Activity Years Ended December 31,
2009 2008
Claims Unresolved at the beginning of year 51,951 51,658
Claims Filed 2,697 4,003
Claims Resolved (34,708) (3,710)
Claims Unresolved at the end of year 19,940 51,951
Disease Distribution of Unresolved Claims December 31,
2009 2008
Mesothelioma and Other Cancer Claims 4,727 5,575
Other Claims 15,213 46,376
Total Claims 19,940 51,951
Honeywell has experienced average resolution values per claim excluding legal costs as follows:
Years Ended December 31,
2009 2008 2007 2006
(in whole dollars)
Malignant claims $ 50,000 $ 65,000 $ 33,000 $ 33,000
Nonmalignant claims $ 200 $ 1,500 $ 500 $ 250
It is not possible to predict whether resolution values for Bendix related asbestos claims will increase,
decrease or stabilize in the future.
Our consolidated financial statements reflect an estimated liability for resolution of pending and future Bendix
related asbestos claims of $566 and $578 million at December 31, 2009 and 2008, respectively. Our liability for
the estimated cost of future Bendix related asbestos claims is based on historic claims filing experience, disease
classifications, expected resolution values, and historic dismissal rates. In the fourth quarter of each year we
update our analysis of the estimated cost of
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