Honeywell 2014 Annual Report Download - page 70

Download and view the complete annual report

Please find page 70 of the 2014 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 101

  • 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

Asbestos Matters
Honeywell is a defendant in asbestos related personal injury actions related to two predecessor
companies:
•North American Refractories Company (NARCO), which was sold in 1986, produced refractory
products (bricks and cement used in high temperature applications). Claimants consist largely of
individuals who allege exposure to NARCO asbestos-containing refractory products in an
occupational setting.
•Bendix Friction Materials (Bendix) business, which was sold in 2014, manufactured automotive
brake parts that contained chrysotile asbestos in an encapsulated form. Claimants consist
largely of individuals who allege exposure to asbestos from brakes from either performing or
being in the vicinity of individuals who performed brake replacements.
The following tables summarize information concerning NARCO and Bendix asbestos related
balances:
Asbestos Related Liabilities
Bendix NARCO Total Bendix NARCO Total Bendix NARCO Total
2014 2013 2012
Year Ended December 31, Year Ended December 31, Year Ended December 31,
Beginning of year. . . . . . . . . . $ 656 $955 $1,611 $ 653 $1,119 $1,772 $ 613 $1,123 $1,736
Accrual for update to
estimated liability . . . . . . . . 195 4 199 180 5 185 168 (1) 167
Change in estimated cost
of future claims. . . . . . . . . . (1) — (1) 16 — 16 30 — 30
Update of expected
resolution values for
pending claims . . . . . . . . . . 2 — 2 (5) — (5) 8 — 8
Asbestos related liability
payments . . . . . . . . . . . . . . . (229) (30) (259) (188) (169) (357) (166) (3) (169)
End of year . . . . . . . . . . . . . . . $ 623 $929 $1,552 $ 656 $ 955 $1,611 $ 653 $1,119 $1,772
Insurance Recoveries for Asbestos Related Liabilities
Bendix NARCO Total Bendix NARCO Total Bendix NARCO Total
2014 2013 2012
Year Ended December 31, Year Ended December 31, Year Ended December 31,
Beginning of year. . . . . . . . . . . . . . . . $141 $ 531 $ 672 $138 $569 $707 $162 $618 $ 780
Probable insurance recoveries
related to estimated liability . . . . 24 — 24 27 — 27 28 — 28
Insurance receipts for asbestos
related liabilities . . . . . . . . . . . . . . . (24) (187) (211) (24) (34) (58) (60) (62) (122)
Insurance receivables settlements
and write offs . . . . . . . . . . . . . . . . . (6) 7 1 — (6) (6) 8 13 21
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . — (1) (1) — 2 2 — — —
End of year . . . . . . . . . . . . . . . . . . . . . $135 $ 350 $ 485 $141 $531 $672 $138 $569 $ 707
61
HONEYWELL INTERNATIONAL INC.
NOTES TO FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)