Honeywell 2012 Annual Report Download - page 104

Environmental liabilities are included in the following balance sheet accounts:
2012 2011
December 31,
Accrued liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $304 $303
Other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 350 420
$654 $723
Although we do not currently possess sufficient information to reasonably estimate the amounts of
liabilities to be recorded upon future completion of studies, litigation or settlements, and neither the
timing nor the amount of the ultimate costs associated with environmental matters can be determined,
they could be material to our consolidated results of operations or operating cash flows in the periods
recognized or paid. However, considering our past experience and existing reserves, we do not expect
that these environmental matters will have a material adverse effect on our consolidated financial
position.
New Jersey Chrome Sites—The excavation and offsite disposal of approximately one million
tons of chromium residue present at a predecessor Honeywell site located in Jersey City, New Jersey,
known as Study Area 7, was completed in January 2010. We are also implementing related
groundwater remedial actions, and are conducting related river sediment work. In addition, remedial
investigations and related activities are underway at other sites in Hudson County, New Jersey that
allegedly have chromium contamination, and for which Honeywell has accepted responsibility in whole
or in part. Provisions have been made in our financial statements for the estimated cost of
investigations and implementation of these remedies consistent with the accounting policy described
above. We do not believe that these matters will have a material adverse impact on our consolidated
results of operations, financial position or operating cash flows.
Onondaga Lake, Syracuse, NY—We are implementing a combined dredging/capping remedy of
Onondaga Lake pursuant to a consent decree approved by the United States District Court for the
Northern District of New York in January 2007. We have accrued for our estimated cost of remediating
Onondaga Lake based on currently available information and analysis performed by our engineering
consultants. Honeywell is also conducting remedial investigations and activities at other sites in
Syracuse. We have recorded reserves for these investigations and activities where appropriate
consistent with the accounting policy described above.
Honeywell has entered into a cooperative agreement with potential natural resource trustees to
assess alleged natural resource damages relating to this site. It is not possible to predict the outcome
or duration of this assessment, or the amounts of, or responsibility for, any damages.
Asbestos Matters
Like many other industrial companies, Honeywell is a defendant in personal injury actions related
to asbestos. We did not mine or produce asbestos, nor did we make or sell insulation products or other
construction materials that have been identified as the primary cause of asbestos related disease in
the vast majority of claimants.
Honeywell’s predecessors owned North American Refractories Company (NARCO) from 1979 to
1986. NARCO produced refractory products (bricks and cement used in high temperature
applications). We sold the NARCO business in 1986 and agreed to indemnify NARCO with respect
to personal injury claims for products that had been discontinued prior to the sale (as defined in the
sale agreement). NARCO retained all liability for all other claims. NARCO and/or Honeywell are
defendants in asbestos personal injury cases asserting claims based upon alleged exposure to
NARCO asbestos-containing products. Claimants consist largely of individuals who allege exposure to
NARCO asbestos-containing refractory products in an occupational setting. These claims, and the
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HONEYWELL INTERNATIONAL INC.
NOTES TO FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)