Honeywell 2012 Annual Report Download - page 98

We also economically hedge our exposure to changes in foreign exchange rates principally with
forward contracts. These contracts are marked-to-market with the resulting gains and losses
recognized in earnings offsetting the gains and losses on the non-functional currency denominated
monetary assets and liabilities being hedged. We recognized $20 million and $30 million of income, in
Other (Income) Expense for the years ended December 31, 2012 and 2011, respectively.
Note 17—Other Liabilities
2012 2011
Years Ended
December 31,
Pension and other employee related . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,440 $4,308
Environmental. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 350 420
Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 550 856
Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 273 218
Asset retirement obligations(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 74
Deferred income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 77
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182 205
$5,913 $6,158
(1) Asset retirement obligations primarily relate to costs associated with the future retirement of
nuclear fuel conversion facilities in our Performance Materials and Technologies segment and the
future retirement of facilities in our Automation and Control Solutions segment.
A reconciliation of our liability for asset retirement obligations for the year ended December 31,
2012, is as follows:
2012 2011
Change in asset retirement obligations:
Balance at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $74 $80
Liabilities settled . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (8) (6)
Adjustments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 (2)
Accretion expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2
Balance at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $71 $74
Note 18—Capital Stock
We are authorized to issue up to 2,000,000,000 shares of common stock, with a par value of $1.
Common shareowners are entitled to receive such dividends as may be declared by the Board, are
entitled to one vote per share, and are entitled, in the event of liquidation, to share ratably in all the
assets of Honeywell which are available for distribution to the common shareowners. Common
shareowners do not have preemptive or conversion rights. Shares of common stock issued and
outstanding or held in the treasury are not liable to further calls or assessments. There are no
restrictions on us relative to dividends or the repurchase or redemption of common stock.
The Board of Directors has authorized the repurchase of up to a total of $3.0 billion of Honeywell
common stock, which amount includes $1.6 billion that remained available under the Company’s
previously reported share repurchase program. We purchased a total of approximately 5 million and
20.3 million shares of our common stock in 2012 and 2011, for $317 and $1,085 million, respectively.
We are authorized to issue up to 40,000,000 shares of preferred stock, without par value, and can
determine the number of shares of each series, and the rights, preferences and limitations of each
series. At December 31, 2012, there was no preferred stock outstanding.
89
HONEYWELL INTERNATIONAL INC.
NOTES TO FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)