Honeywell 2013 Annual Report Download - page 61

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Total(6) 2014
2015-
2016
2017-
2018 Thereafter
Payments by Period
Long-term debt, including capitalized
leases(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7,433 $ 632 $1,328 $1,343 $4,130
Interest payments on long-term debt,
including capitalized leases . . . . . . . . . . . . 3,664 315 591 494 2,264
Minimum operating lease payments . . . . . . 1,244 313 440 227 264
Purchase obligations(2) . . . . . . . . . . . . . . . . . . 1,626 796 502 248 80
Estimated environmental liability
payments(3) . . . . . . . . . . . . . . . . . . . . . . . . . . 643 304 230 80 29
Asbestos related liability payments(4) . . . . 1,611 461 630 401 119
Asbestos insurance recoveries(5) . . . . . . . . (672) (77) (140) (148) (307)
$15,549 $2,744 $3,581 $2,645 $6,579
(1) Assumes all long-term debt is outstanding until scheduled maturity.
(2) Purchase obligations are entered into with various vendors in the normal course of business and
are consistent with our expected requirements.
(3) The payment amounts in the table only reflect the environmental liabilities which are probable and
reasonably estimable as of December 31, 2013. See Environmental Matters in Note 22
Commitments and Contingencies of Notes to the Financial Statements for additional information.
(4) These amounts are estimates of asbestos related cash payments for NARCO and Bendix based
on our asbestos related liabilities which are probable and reasonably estimable as of December 31,
2013. We have accrued for the estimated value of future NARCO asbestos related claims expected
to be asserted against the NARCO Trust through 2018. In light of the uncertainties inherent in
making long-term projections and in connection with the initial operation of a 524(g) trust, as well
as the stay of all NARCO asbestos claims from January 2002 until April 2013 when the NARCO
Plan of Reorganization became fully effective, we do not believe that we have a reasonable basis
for estimating NARCO asbestos claims beyond 2018. Projecting future events is subject to many
uncertainties that could cause asbestos liabilities to be higher or lower than those projected and
recorded. See Asbestos Matters in Note 22 Commitments and Contingencies of Notes to the
Financial Statements for additional information.
(5) These amounts represent our insurance recoveries that are deemed probable for asbestos related
liabilities as of December 31, 2013. The timing of insurance recoveries are impacted by the terms
of insurance settlement agreements, as well as the documentation, review and collection process
required to collect on insurance claims. Where probable insurance recoveries are not subject to
definitive settlement agreements with specified payment dates, but instead are covered by
insurance policies, we have assumed collection will occur beyond 2018. Projecting the timing of
insurance recoveries is subject to many uncertainties that could cause the amounts collected to be
higher or lower than those projected and recorded or could cause the timing of collections to be
earlier or later than that projected. We reevaluate our projections concerning insurance recoveries
in light of any changes or developments that would impact recoveries or the timing thereof. See
Asbestos Matters in Note 22 Commitments and Contingencies of Notes to the Financial
Statements for additional information.
(6) The table excludes tax effects as well as $729 million of uncertain tax positions. See Note 6
Income Taxes of Notes to the Financial Statements for additional information.
The table also excludes our pension and other postretirement benefits (OPEB) obligations. In
2014, we are not required to make contributions to our U.S. pension plans, however, we plan to make
contributions of cash and/or marketable securities of approximately $150 million ($117 million of
marketable securities were contributed in January 2014) to our non-U.S. plans to satisfy regulatory
funding standards. The timing and amount of contributions to both our U.S. and non-U.S. plans may be
impacted by a number of factors, including the funded status of the plans. Beyond 2014, the actual
amounts required to be contributed are dependent upon, among other things, interest rates, underlying
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