Honeywell 2014 Annual Report Download - page 55

Many jurisdictions impose limitations on the timing and utilization of net operating loss and tax
credit carryforwards. In those instances whereby there is an expected permanent limitation on the
utilization of the net operating loss or tax credit carryforward the deferred tax asset and amount of the
carryforward have been reduced.
U.S. federal income taxes have not been provided on undistributed earnings of the vast majority of
our international subsidiaries as it is our intention to reinvest these earnings into the respective
subsidiaries. At December 31, 2014 Honeywell has not provided for U.S. federal income and non-U.S.
withholding taxes on approximately $15.0 billion of such earnings of our non-U.S. operations. It is not
practicable to estimate the amount of tax that might be payable if some or all of such earnings were to
be repatriated, and the amount of foreign tax credits that would be available to reduce or eliminate the
resulting U.S. income tax liability.
2014 2013 2012
Change in unrecognized tax benefits:
Balance at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 729 $722 $815
Gross increases related to current period tax positions . . . . . . . . . . . 65 41 25
Gross increases related to prior periods tax positions. . . . . . . . . . . . . 204 118 44
Gross decreases related to prior periods tax positions . . . . . . . . . . . . (277) (21) (62)
Decrease related to resolutions of audits with tax authorities . . . . . . (32) (92) (40)
Expiration of the statute of limitations for the assessment of taxes (10) (30) (64)
Foreign currency translation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (20) (9) 4
Balance at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 659 $729 $722
As of December 31, 2014, 2013, and 2012 there were $659 million, $729 million and $722 million
of unrecognized tax benefits that if recognized would be recorded as a component of income tax
expense.
Generally, our uncertain tax positions are related to tax years that remain subject to examination
by the relevant tax authorities. The following table summarizes these open tax years by major
jurisdiction as of December 31, 2014:
Jurisdiction
Examination in
progress
Examination not yet
initiated
Open Tax Years
Based on Originally Filed Returns
U.S. Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2010 – 2013 2013 – 2014
U.S. State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2007 – 2013 2006 – 2014
United Kingdom . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . N/A 2012 – 2014
Canada(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2007 – 2013 2014
Germany(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2006 – 2012 2013 – 2014
France . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2008 – 2013 2004 – 2007, 2014
Netherlands . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2009 2010 – 2014
Australia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . N/A 2009 – 2014
China . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2003 – 2012 2013 – 2014
India . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1999 – 2012 2013 – 2014
Italy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2008 – 2013 2014
(1) Includes provincial or similar local jurisdictions, as applicable.
Based on the outcome of these examinations, or as a result of the expiration of statute of
limitations for specific jurisdictions, it is reasonably possible that certain unrecognized tax benefits for
tax positions taken on previously filed tax returns will materially change from those recorded as
liabilities for uncertain tax positions in our financial statements. In addition, the outcome of these
46
HONEYWELL INTERNATIONAL INC.
NOTES TO FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)