Honeywell 2009 Annual Report Download - page 126

HONEYWELL INTERNATIONAL INC.
NOTES TO FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)
NARCO and Bendix asbestos related balances are included in the following balance sheet accounts:
December 31,
2009 2008
Other current assets $ 62 $ 4
Insurance recoveries for asbestos related liabilities 941 1,029
$ 1,003 $ 1,033
Accrued liabilities $ 654 $ 171
Asbestos related liabilities 1,040 1,538
$ 1,694 $ 1,709
Other Matters
We are subject to a number of other lawsuits, investigations and disputes (some of which involve substantial
amounts claimed) arising out of the conduct of our business, including matters relating to commercial
transactions, government contracts, product liability, prior acquisitions and divestitures, employee benefit plans,
intellectual property, and health and safety matters. We recognize a liability for any contingency that is probable
of occurrence and reasonably estimable. We continually assess the likelihood of adverse judgments of outcomes
in these matters, as well as potential ranges of possible losses (taking into consideration any insurance
recoveries), based on a careful analysis of each matter with the assistance of outside legal counsel and, if
applicable, other experts. Included in these other matters are the following:
Allen, et al. v. Honeywell Retirement Earnings Plan—Pursuant to a settlement approved by the U.S.
District Court for the District of Arizona in February 2008, 18 of 21 claims alleged by plaintiffs in this class action
lawsuit were dismissed with prejudice in exchange for approximately $35 million and the maximum aggregate
liability for the remaining three claims (alleging that Honeywell impermissibly reduced the pension benefits of
certain employees of a predecessor entity when the plan was amended in 1983 and failed to calculate benefits in
accordance with the terms of the plan) was capped at $500 million. Any amounts payable, including the
settlement amount, have or will be paid from the Company's pension plan. In October 2009, the Court granted
summary judgment in favor of the Honeywell Retirement Earnings Plan with respect to the claim regarding the
calculation of benefits. We continue to expect to prevail on the remaining claims in light of applicable law and our
substantial affirmative defenses, which have not yet been considered fully by the Court. Accordingly, we do not
believe that a liability is probable of occurrence and reasonably estimable with respect to these claims and we
have not recorded a provision for the remaining claims in our financial statements.
Quick Lube—On March 31, 2008, S&E Quick Lube, a filter distributor, filed suit in U.S. District Court for the
District of Connecticut alleging that twelve filter manufacturers, including Honeywell, engaged in a conspiracy to
fix prices, rig bids and allocate U.S. customers for aftermarket automotive filters. This suit is a purported class
action on behalf of direct purchasers of filters from the defendants. Parallel purported class actions, including on
behalf of indirect purchasers of filters, have been filed by other plaintiffs in a variety of jurisdictions in the United
States and Canada. The U.S cases have been consolidated into a single multi-district litigation in the Northern
District of Illinois. We intend to vigorously defend the claims raised in these actions. The Antitrust Division of the
Department of Justice notified Honeywell on January 21, 2010 that it has officially closed its investigation into
possible collusion in the replacement auto filters industry.
Given the uncertainty inherent in litigation and investigations (including the specific matters referenced
above), we do not believe it is possible to develop estimates of reasonably possible loss in excess of current
accruals for these matters. Considering our past experience and existing accruals,
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