Honeywell 2012 Annual Report Download - page 82

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Transportation Systems and Aerospace segments, were returned to income in 2010 due to fewer
employee separations than originally planned associated with prior severance programs.
The following table summarizes the status of our total repositioning reserves:
Severance
Costs
Asset
Impairments
Exit
Costs Total
Balance at December 31, 2009 . . . . . . . . . . . . . . . . . . . $ 294 $ — $ 37 $ 331
2010 charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144 21 14 179
2010 usage—cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (130) — (17) (147)
2010 usage—noncash . . . . . . . . . . . . . . . . . . . . . . . . . . — (21) — (21)
Adjustments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (30) — — (30)
Foreign currency translation. . . . . . . . . . . . . . . . . . . . . (8) — — (8)
Balance at December 31, 2010 . . . . . . . . . . . . . . . . . . . 270 — 34 304
2011 charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246 86 48 380
2011 usage—cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (136) — (23) (159)
2011 usage—noncash . . . . . . . . . . . . . . . . . . . . . . . . . . — (86) — (86)
Adjustments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (26) — — (26)
Foreign currency translation. . . . . . . . . . . . . . . . . . . . . (1) — — (1)
Balance at December 31, 2011 . . . . . . . . . . . . . . . . . . . 353 — 59 412
2012 charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91 12 16 119
2012 usage—cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (113) — (23) (136)
2012 usage—noncash . . . . . . . . . . . . . . . . . . . . . . . . . . — (12) — (12)
Adjustments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (61) — (5) (66)
Foreign currency translation. . . . . . . . . . . . . . . . . . . . . 6 — — 6
Balance at December 31, 2012 . . . . . . . . . . . . . . . . . . . $ 276 $ — $ 47 $ 323
Certain repositioning projects in our Aerospace, Automation and Control Solutions and
Transportation Systems segments included exit or disposal activities, the costs related to which will
be recognized in future periods when the actual liability is incurred. The nature of these exit or disposal
costs includes asset set-up and moving, product recertification and requalification, and employee
retention, training and travel. The following tables summarize by segment, expected, incurred and
remaining exit and disposal costs related to 2011 and 2010 repositioning actions which we were not
able to recognize at the time the actions were initiated. The exit and disposal costs related to the
repositioning actions in 2012 which we were not able to recognize at the time the actions were initiated
were not significant.
2011 Repositioning Actions Aerospace
Automation
and Control
Solutions
Transportation
Systems Total
Expected exit and disposal costs . . . . . . . . . . . . $15 $15 $ 7 $37
Costs incurred during:
Year ended December 31, 2011 . . . . . . . . . . (1) — — (1)
Year ended December 31, 2012 . . . . . . . . . . (2) (3) (1) (6)
Remaining exit and disposal costs at
December 31, 2012 . . . . . . . . . . . . . . . . . . . . . . $12 $12 $ 6 $30
73
HONEYWELL INTERNATIONAL INC.
NOTES TO FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)