Honeywell 2010 Annual Report Download - page 93

HONEYWELL INTERNATIONAL INC.
NOTES TO FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)
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, 2010, we have resolved approximately 155,000 Bendix related asbestos claims. We had 131 trials resulting in
favorable verdicts and 18 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 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:
Years Ended
December 31,
Claims Activity 2010 2009
Claims Unresolved at the beginning of year 19,940 51,951
Claims Filed(a) 4,302 2,697
Claims Resolved(b) (1,762) (34,708)
Claims Unresolved at the end of year 22,480 19,940
(a) The number of claims filed in 2010 includes approximately 1,541 non-malignant claims (with an accrued liability of approximately $575 thousand
in the aggregate), a majority of which had previously been dismissed in Mississippi and re-filed in Arkansas.
(b) The number of claims resolved in 2010 includes approximately 1,300 claims previously classified as inactive (95% non-malignant and accrued
liability of approximately $2.0 million) which were activated during the current period.
December 31,
Disease Distribution of Unresolved Claims 2010 2009
Mesothelioma and Other Cancer Claims 4,856 4,727
Other Claims 17,624 15,213
Total Claims 22,480 19,940
Honeywell has experienced average resolution values per claim excluding legal costs as follows:
Year Ended December 31,
2010 2009 2008 2007 2006
(in whole dollars)
Malignant claims $ 54,000 $ 50,000 $ 65,000 $ 33,000 $33,000
Nonmalignant claims $ 1,300 $ 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
90