Honeywell 2015 Annual Report Download - page 50

HONEYWELL INTERNATIONAL INC.
NOTES TO FINANCIAL STATEMENTS —(Continued)
(Dollars in millions, except per share amounts)
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, 2015
Honeywell has not provided for U.S. federal income and non-U.S. withholding taxes on approximately $16.6 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.
As of December 31, 2015, 2014, and 2013 there were $765 million, $659 million and $729 million of unrecognized tax
benefits that if recognized would be recorded as a component of income tax expense.
Generally, our unrecognized tax benefits 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, 2015:
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
46
2015
2014
2013
Change in unrecognized tax benefits:
Balance at beginning of year
$
659
$
729
$
722
Gross increases related to current period tax positions
56
65
41
Gross increases related to prior periods tax positions
175
204
118
Gross decreases related to prior periods tax positions
(72
)
(277
)
(21
)
Decrease related to resolutions of audits with tax authorities
(11
)
(32
)
(92
)
Expiration of the statute of limitations for the assessment of taxes
(13
)
(10
)
(30
)
Foreign currency translation
(29
)
(20
)
(9
)
Balance at end of year
$
765
$
659
$
729
Jurisdiction
Open Tax Years
Based on Originally Filed Returns
Examination in
progress
Examination not yet
initiated
U.S. Federal
2010 – 2012
2013 – 2015
U.S. State
2008 – 2014
2011 – 2015
United Kingdom
N/A
2013 – 2015
Canada(1)
2010 – 2013
2014 – 2015
Germany(1)
2008 – 2012
2013 – 2015
France
2012 – 2014
2005 – 2011, 2015
Netherlands
2009
2011 – 2015
Australia
N/A
2010 – 2015
China
2003 – 2014
2015
India
1999 – 2013
2014 – 2015
Italy
2008 – 2012
2014 – 2015
(1)
Includes provincial or similar local jurisdictions, as applicable.