Honeywell 2009 Annual Report Download - page 90

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HONEYWELL INTERNATIONAL INC.
NOTES TO FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)
Certain repositioning projects in our Aerospace, Automation and Control Solutions and Transportation
Systems segments included exit or disposal activities, the costs related to which, will be recognized in future
periods when the actual liability is incurred. The nature of these exit or disposal costs principally includes product
recertification and requalification and employee training and travel. The following table summarizes by segment,
expected, incurred and remaining exit and disposal costs related to 2008 repositioning actions which we were not
able to recognize at the time the actions were initiated. The exit and disposal costs related to the 2009
repositioning actions which we were not able to recognize at the time the actions were initiated were not
significant.
Aerospace
Automation
and Control
Solutions Transportation
Systems Total
Expected exit and disposal costs $ 96 $ 27 $ 6 $ 129
Costs incurred year ended December 31, 2008 (12) — (1) (13)
Costs incurred year ended December 31, 2009 (44) (1) (2) (47)
Remaining exit and disposal costs at December
31, 2009 $ 40 $ 26 $ 3 $ 69
In 2009, we recognized a charge of $145 million for environmental liabilities deemed probable and
reasonably estimable during the year. We recognized asbestos related litigation charges, net of insurance, of
$155 million. Environmental and Asbestos Matters are discussed in detail in Note 21.
In 2008, we recognized a charge of $465 million for environmental liabilities deemed probable and
reasonably estimable during the year, of which $309 million was recognized in the third quarter which included:
• $100 million related to the resolution of technical design issues regarding the remediation plan for
Onondaga Lake ("Lake") (as previously reported, the ultimate cost of the remediation of the Lake depended
upon the resolution of these issues);
•
$90 million for the estimated cost of proposed remedial actions to be taken at other sites located in
Syracuse, New York in accordance with remediation plans submitted to state environmental regulators;
•
$38 million primarily related to changes in cost estimates (due to, among other things, increases in the cost
of steel, waste transportation and disposal costs) and settlement costs relating to the remediation of the
New Jersey Chrome sites known as Study Areas 5, 6 and 7.
We also recognized asbestos related litigation charges, net of insurance, of $125 million.
In 2007, we recognized a charge of $225 million for environmental liabilities deemed probable and
reasonably estimable during the year. We recognized asbestos related litigation charges, net of insurance, of
$100 million. We recognized other charges of $18 million for a business sales tax related to a prior divestiture ($8
million) and for contemplated settlements of certain legal matters ($10 million). We also recognized impairment
charges of $9 million related to the write-down of property, plant and equipment held for sale in our Specialty
Materials segment.
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