Honeywell 2012 Annual Report Download - page 55

Download and view the complete annual report

Please find page 55 of the 2012 Honeywell annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 141

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141

plans. The amount and timing of future repurchases may vary depending on market conditions
and the level of operating, financing and other investing activities.
•Dividends—we expect to pay approximately $1.3 billion in dividends on our common stock in
2013, reflecting the 10 percent increase in the dividend rate effective with the fourth quarter
2012 dividend.
•Asbestos claims—we expect our cash spending for asbestos claims and our cash receipts for
related insurance recoveries to be approximately $480 and $44 million, respectively, in 2013.
We believe it is possible that the effective date of the NARCO Plan of Reorganization will occur
in 2013 so we have included estimated funding for the NARCO Trust in 2013. See Asbestos
Matters in Note 22 to the financial statements for further discussion of possible funding
obligations in 2013 related to the NARCO Trust.
•Pension contributions—in 2013, we are not required to make contributions to our U.S. pension
plans. We plan to make cash contributions of approximately $150 million ($113 million was
made in January 2013) to our non-U.S. plans to satisfy regulatory funding standards. The timing
and amount of contributions to both our U.S. and non-U.S. plans may be impacted by a number
of factors, including the funded status of the plans.
•Repositioning actions—we expect that cash spending for severance and other exit costs
necessary to execute the previously announced repositioning actions will approximate $175
million in 2013.
•Environmental remediation costs—we expect to spend approximately $300 million in 2013 for
remedial response and voluntary clean-up costs. See Environmental Matters in Note 22 to the
financial statements for additional information.
We continuously assess the relative strength of each business in our portfolio as to strategic fit,
market position, profit and cash flow contribution in order to upgrade our combined portfolio and
identify business units that will most benefit from increased investment. We identify acquisition
candidates that will further our strategic plan and strengthen our existing core businesses. We also
identify businesses that do not fit into our long-term strategic plan based on their market position,
relative profitability or growth potential. These businesses are considered for potential divestiture,
restructuring or other repositioning actions subject to regulatory constraints. In 2012 and 2011, we
realized $21 and $1,156 million, respectively, in cash proceeds from sales of non-strategic businesses.
Based on past performance and current expectations, we believe that our operating cash flows will
be sufficient to meet our future operating cash needs. Our available cash, committed credit lines,
access to the public debt and equity markets as well as our ability to sell trade accounts receivables,
provide additional sources of short-term and long-term liquidity to fund current operations, debt
maturities, and future investment opportunities.
46