Honeywell 2012 Annual Report Download - page 103

or before December 31, 2015. Noncontrolling interests with redemption features, such as the
arrangement described above, that are not solely within the Company’s control are considered
redeemable noncontrolling interests. Redeemable noncontrolling interest is considered temporary
equity and is therefore reported outside of permanent equity on the Company’s Consolidated Balance
Sheet at the greater of the initial carrying amount adjusted for the noncontrolling interest’s share of net
income (loss) or its redemption value. As of December 31, 2012, the redemption value of the
redeemable noncontrolling interest approximated the carrying value.
Note 22—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:
2012 2011 2010
Years Ended December 31,
Beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 723 $ 753 $ 779
Accruals for environmental matters deemed probable and
reasonably estimable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 234 240 225
Environmental liability payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (320) (270) (266)
Other ....................................................... 17 — 15
End of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 654 $ 723 $ 753
94
HONEYWELL INTERNATIONAL INC.
NOTES TO FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)