Honeywell 2009 Annual Report Download - page 59

claims. Projecting future events is subject to many uncertainties that could cause asbestos 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, 2009. See Asbestos Matters in
Note 21 to the financial statements for additional information.
(6) The table excludes $720 million of uncertain tax positions. See Note 6 to the financial statements.
The table also excludes our pension and other postretirement benefits (OPEB) obligations. During 2010, we
plan to make additional voluntary contributions of Honeywell common stock to our U.S. plans to improve the
funded status of our plans. We also expect to make contributions to our non-U.S. plans of approximately $150
million in 2010. Beyond 2010, minimum statutory funding requirements for our U.S. pension plans may become
significant. However, the actual amounts required to be contributed are dependent upon, among other things,
interest rates, underlying asset returns and the impact of legislative or regulatory actions related to pension
funding obligations. 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 $200 million in 2010
net of the benefit of approximately $14 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,
2009:
Maximum
Potential
Future
Payments
(Dollars in millions)
Operating lease residual values $ 35
Other third parties' financing 4
Unconsolidated affiliates' financing 30
Customer financing 16
$ 85
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 purchasers of the receivable interest by limiting their
losses in the event that a portion of the receivables sold becomes uncollectible. In April 2009, we modified the
terms of the trade accounts receivable program to permit the repurchase of receivables from the third parties at
our discretion. This modification provides additional flexibility in the management of the receivable portfolio and
also requires the receivables in the program to remain on the Company balance sheet. As a result, $500 million
of program receivables were reflected as Accounts, notes and other receivables with a
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