Honeywell 2010 Annual Report Download - page 89

HONEYWELL INTERNATIONAL INC.
NOTES TO FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)
As of December 31, 2010, there was approximately $202 million of total unrecognized compensation cost related to non-vested RSUs granted under our
stock plans which is expected to be recognized over a weighted-average period of 1.8 years. Compensation expense related to RSUs was $109, $79 and $77
million in 2010, 2009, and 2008, respectively.
Non-Employee Directors' Plan—Under the Directors' Plan each new director receives a one-time grant of 3,000 restricted stock units that will vest on
the fifth anniversary of continuous Board service.
The Directors' Plan also provides for an annual grant to each director of options to purchase 5,000 shares of common stock at the fair market value on
the date of grant. Options generally become exercisable over a four-year period and expire after ten years.
Note 21—Commitments and Contingencies
Environmental Matters
We are subject to various federal, state, local and foreign government requirements relating to the protection of the environment. We believe that, as a
general matter, our policies, practices and procedures are properly designed to prevent unreasonable risk of environmental damage and personal injury and
that our handling, manufacture, use and disposal of hazardous substances are in accordance with environmental and safety laws and regulations. However,
mainly because of past operations and operations of predecessor companies, we, like other companies engaged in similar businesses, have incurred remedial
response and voluntary cleanup costs for site contamination and are a party to lawsuits and claims associated with environmental and safety matters, including
past production of products containing hazardous substances. Additional lawsuits, claims and costs involving environmental matters are likely to continue to
arise in the future.
With respect to environmental matters involving site contamination, we continually conduct studies, individually or jointly with other potentially
responsible parties, to determine the feasibility of various remedial techniques. It is our policy to record appropriate liabilities for environmental matters when
remedial efforts or damage claim payments are probable and the costs can be reasonably estimated. Such liabilities are based on our best estimate of the
undiscounted future costs required to complete the remedial work. The recorded liabilities are adjusted periodically as remediation efforts progress or as
additional technical, regulatory or legal information becomes available. Given the uncertainties regarding the status of laws, regulations, enforcement policies,
the impact of other potentially responsible parties, technology and information related to individual sites, we do not believe it is possible to develop an
estimate of the range of reasonably possible environmental loss in excess of our recorded liabilities. We expect to fund expenditures for these matters from
operating cash flow. The timing of cash expenditures depends on a number of factors, including the timing of remedial investigations and feasibility studies,
the timing of litigation and settlements of remediation liability, personal injury and property damage claims, regulatory approval of cleanup projects, remedial
techniques to be utilized and agreements with other parties.
The following table summarizes information concerning our recorded liabilities for environmental costs:
Years Ended December 31,
2010 2009 2008
Beginning of year $ 779 $ 946 $ 799
Accruals for environmental matters deemed probable and reasonably estimable 225 151 466
Environmental liability payments
(266) (318) (320)
Other 15 — 1
End of year $ 753 $ 779 $ 946
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