Honeywell 2015 Annual Report Download - page 70

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HONEYWELL INTERNATIONAL INC.
NOTES TO FINANCIAL STATEMENTS
—(Continued)
(Dollars in millions, except per share amounts)
The following table summarizes information concerning our recorded obligations for product warranties and product
performance guarantees:
Product warranties and product performance guarantees are included in the following balance sheet accounts:
Note 20. Pension and Other Postretirement Benefits
We sponsor both funded and unfunded U.S. and non-U.S. defined benefit pension plans covering the majority of our
employees and retirees. Pension benefits for substantially all U.S. employees are provided through non-contributory,
qualified and non-qualified defined benefit plans. All non-union hourly and salaried employees joining Honeywell for the first
time after December 31, 2012, are not eligible to participate in Honeywell
’
s U.S. defined benefit pension plans. We also
sponsor defined benefit pension plans which cover non-U.S. employees who are not U.S. citizens, in certain jurisdictions,
principally the UK, Netherlands, Germany, and Canada. Other pension plans outside of the U.S. are not material to the
Company either individually or in the aggregate.
We also sponsor postretirement benefit plans that provide health care benefits and life insurance coverage mainly to
U.S. eligible retirees. Less than 1% of Honeywell
’
s U.S. employees are eligible for a retiree medical subsidy from the
Company; and this subsidy is limited to a fixed-dollar amount. In addition, more than 80% of Honeywell
’
s current retirees
either have no Company subsidy or have a fixed-dollar subsidy amount. This significantly limits our exposure to the impact
of future health care cost increases. The retiree medical and life insurance plans are not funded. Claims and expenses are
paid from our operating cash flow.
66
Years Ended
December 31,
2015
2014
2013
Beginning of year
$
403
$
405
$
407
Accruals for warranties/guarantees issued during the year
206
225
212
Adjustment of pre-existing warranties/guarantees
13
(34
)
(1
)
Settlement of warranty/guarantee claims
(206
)
(193
)
(213
)
End of year
$
416
$
403
$
405
December 31,
2015
2014
Accrued liabilities
$
355
$
332
Other liabilities
61
71
$
416
$
403