Honeywell 2011 Annual Report Download - page 86

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Interest rate swap agreements are designated as hedge relationships with gains or (losses) on the derivative recognized in Interest and other financial
charges offsetting the gains and losses on the underlying debt being hedged. Gains or (losses) on interest rate swap agreements recognized in earnings were
$112 and $24 million in the years ended December 31, 2011 and 2010 respectively. These gains were fully offset by losses on the underlying debt being
hedged.
We also economically hedge our exposure to changes in foreign exchange rates principally with forward contracts. These contracts are marked-to-
market with the resulting gains and losses recognized in earnings offsetting the gains and losses on the non-functional currency denominated monetary assets
and liabilities being hedged. We recognized $30 million of income and $18 million of expense, in Other (Income) Expense for the years ended December 31,
2011 and 2010, respectively.
Note 17. Other Liabilities
Year Ended
December 31,
2011 2010
Pension and other employee
related $ 4,308 $ 4,216
Environmental 420 425
Income taxes 856 562
Insurance 218 177
Asset retirement obligations(1) 74 80
Deferred income 77 94
Other 205 344
$ 6,158 5,898
(1) Asset retirement obligations primarily relate to costs associated with the future retirement of nuclear fuel conversion facilities in our Performance
Materials and Technologies segment and the future retirement of facilities in our Automation and Control Solutions segment.
A reconciliation of our liability for asset retirement obligations for the year ended December 31, 2011, is as follows:
2011 2010
Change in asset retirement obligations:
Balance at beginning of year $80 $ 79
Liabilities settled (6) (3)
Adjustments (2) 2
Accretion expense 2 2
Balance at end of year $74 $80
Note 18. Capital Stock
We are authorized to issue up to 2,000,000,000 shares of common stock, with a par value of $1. Common shareowners are entitled to receive such
dividends as may be declared by the Board, are entitled to one vote per share, and are entitled, in the event of liquidation, to share ratably in all the assets of
Honeywell which are available for distribution to the common shareowners. Common shareowners do not have preemptive or conversion rights. Shares of
common stock issued and outstanding or held in the treasury are not liable to further calls or assessments. There are no restrictions on us relative to dividends
or the repurchase or redemption of common stock.
The Board of Directors has authorized the repurchase of up to a total of $3.0 billion of Honeywell common stock, which amount includes $1.9 billion
that remained available under the Company's previously reported share repurchase program. We purchased a total of approximately 20.3 million shares of our
common stock in 2011 for $1,085 million.
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