Honeywell 2012 Annual Report Download - page 105

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filing of subsequent claims, have been stayed continuously since January 4, 2002, the date on which
NARCO sought bankruptcy protection (see discussion below).
Honeywell’s Bendix friction materials (Bendix) business manufactured automotive brake parts that
contained chrysotile asbestos in an encapsulated form. 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.
The following tables summarize information concerning NARCO and Bendix asbestos related
balances:
Asbestos Related Liabilities
Bendix NARCO Total Bendix NARCO Total Bendix NARCO Total
2012 2011 2010
Year Ended December 31, Year Ended December 31, Year Ended December 31,
Beginning of year . . . . . . . . . $ 613 $1,123 $1,736 $ 594 $1,125 $1,719 $ 566 $1,128 $1,694
Accrual for update to
estimated liability . . . . . . . 168 (1) 167 167 3 170 162 3 165
Change in estimated cost
of future claims . . . . . . . . . 30 — 30 16 — 16 16 — 16
Update of expected
resolution values for
pending claims . . . . . . . . . 8 — 8 2 — 2 7 — 7
Asbestos related liability
payments. . . . . . . . . . . . . . . (166) (3) (169) (166) (5) (171) (157) (6) (163)
End of year. . . . . . . . . . . . . . . $ 653 $1,119 $1,772 $ 613 $1,123 $1,736 $ 594 $1,125 $1,719
Insurance Recoveries for Asbestos Related Liabilities
Bendix NARCO Total Bendix NARCO Total Bendix NARCO Total
2012 2011 2010
Year Ended December 31, Year Ended December 31, Year Ended December 31,
Beginning of year . . . . . . . . . . . . . . $162 $618 $ 780 $157 $ 718 $ 875 $172 $ 831 $1,003
Probable insurance recoveries
related to estimated liability . . 28 — 28 29 — 29 26 — 26
Insurance receipts for asbestos
related liabilities . . . . . . . . . . . . . (60) (62) (122) (34) (100) (134) (41) (100) (141)
Insurance receivables
settlements and write offs . . . . 8 13 21 10 — 10 — (13) (13)
End of year . . . . . . . . . . . . . . . . . . . $138 $569 $ 707 $162 $ 618 $ 780 $157 $ 718 $ 875
NARCO and Bendix asbestos related balances are included in the following balance sheet
accounts:
2012 2011
December 31,
Other current assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 44 $ 71
Insurance recoveries for asbestos related liabilities. . . . . . . . . . . . . . . . . . . . . . 663 709
$ 707 $ 780
Accrued liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 480 $ 237
Asbestos related liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,292 1,499
$1,772 $1,736
96
HONEYWELL INTERNATIONAL INC.
NOTES TO FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)