Honeywell 2012 Annual Report Download - page 56

Contractual Obligations and Probable Liability Payments
Following is a summary of our significant contractual obligations and probable liability payments at
December 31, 2012:
Total(6) 2013
2014-
2015
2016-
2017 Thereafter
Payments by Period
Long-term debt, including capitalized
leases(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7,020 $ 625 $ 711 $ 863 $4,821
Interest payments on long-term debt,
including capitalized leases . . . . . . . . . . . . 2,798 240 400 357 1,801
Minimum operating lease payments . . . . . . 1,288 305 442 229 312
Purchase obligations(2) . . . . . . . . . . . . . . . . . . 1,783 939 474 223 147
Estimated environmental liability
payments(3) . . . . . . . . . . . . . . . . . . . . . . . . . . 654 304 200 100 50
Asbestos related liability payments(4) . . . . 1,772 480 769 438 85
Asbestos insurance recoveries(5) . . . . . . . . (707) (44) (147) (141) (375)
$14,608 $2,849 $2,849 $2,069 $6,841
(1) Assumes all long-term debt is outstanding until scheduled maturity.
(2) Purchase obligations are entered into with various vendors in the normal course of business and
are consistent with our expected requirements.
(3) The payment amounts in the table only reflect the environmental liabilities which are probable and
reasonably estimable as of December 31, 2012. See Environmental Matters in Note 22
Commitments and Contingencies of Notes to the Financial Statements for additional information.
(4) These amounts are estimates of asbestos related cash payments for NARCO and Bendix based
on our asbestos related liabilities which are probable and reasonably estimable as of December 31,
2012. We believe that 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 starting in 2013.
We have accrued for the estimated value of future NARCO asbestos related claims expected to be
asserted against the NARCO trust through 2018. In light of the uncertainties inherent in making
long-term projections and in connection with the initial operation of a 524(g) trust, as well as the
stay of all NARCO asbestos claims since January 2002, we do not believe that we have a
reasonable basis for estimating NARCO asbestos claims beyond 2018. Projecting the timing of
NARCO payments is dependent on, among other things, the effective date of the Trust which could
cause the timing of payments to be earlier or later than that projected. Projecting future events is
subject to many uncertainties that could cause asbestos liabilities to be higher or lower than those
projected and recorded. See Asbestos Matters in Note 22 Commitments and Contingencies of
Notes to the Financial Statements for additional information.
(5) These amounts represent our insurance recoveries that are deemed probable for asbestos related
liabilities as of December 31, 2012. The timing of insurance recoveries are impacted by the terms
of insurance settlement agreements, as well as the documentation, review and collection process
required to collect on insurance claims. Where probable insurance recoveries are not subject to
definitive settlement agreements with specified payment dates, but instead are covered by
insurance policies, we have assumed collection will occur beyond 2017. Projecting the timing of
insurance recoveries is subject to many uncertainties that could cause the amounts collected to be
higher or lower than those projected and recorded or could cause the timing of collections to be
earlier or later than that projected. We reevaluate our projections concerning insurance recoveries
in light of any changes or developments that would impact recoveries or the timing thereof. See
Asbestos Matters in Note 22 Commitments and Contingencies of Notes to the Financial
Statements for additional information.
(6) The table excludes tax effects as well as $722 million of uncertain tax positions. See Note 6
Income Taxes of Notes to the Financial Statements for additional information.
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