Honeywell 2014 Annual Report Download - page 36

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Contractual Obligations and Probable Liability Payments
Following is a summary of our significant contractual obligations and probable liability payments at
December 31, 2014:
Total(6) 2015
2016-
2017
2018-
2019 Thereafter
Payments by Period
Long-term debt, including capitalized
leases(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6,985 $ 939 $ 962 $1,807 $3,277
Interest payments on long-term debt,
including capitalized leases . . . . . . . . . . . . 3,349 303 552 414 2,080
Minimum operating lease payments . . . . . . 1,281 330 470 224 257
Purchase obligations(2) . . . . . . . . . . . . . . . . . . 1,643 953 472 158 60
Estimated environmental liability
payments(3) . . . . . . . . . . . . . . . . . . . . . . . . . . 591 278 218 75 20
Asbestos related liability payments(4) . . . . 1,552 352 737 413 50
Asbestos insurance recoveries(5) . . . . . . . . (485) (31) (112) (105) (237)
$14,916 $3,124 $3,299 $2,986 $5,507
(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, 2014.
(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,
2014. See Asbestos Matters in Note 19 Commitments and Contingencies of Notes to Financial
Statements for additional information.
(5) These amounts represent our insurance recoveries that are deemed probable for asbestos related
liabilities as of December 31, 2014. See Asbestos Matters in Note 19 Commitments and
Contingencies of Notes to Financial Statements for additional information.
(6) The table excludes tax effects as well as $659 million of uncertain tax positions. See Note 5
Income Taxes of Notes to Financial Statements for additional information.
Environmental Matters
Accruals for environmental matters deemed probable and reasonably estimable were $268 million,
$272 million and $234 million in 2014, 2013 and 2012, respectively. In addition, in both 2014 and 2013
we incurred operating costs for ongoing businesses of approximately $88 million relating to compliance
with environmental regulations.
Spending related to known environmental matters was $321 million, $304 million and $320 million
in 2014, 2013 and 2012, respectively, and is estimated to be approximately $275 million in 2015. We
expect to fund expenditures for these environmental matters from operating cash flow. The timing of
cash expenditures depends on a numbers of factors, including the timing of litigation and settlements
of remediation liability, personal injury and property damage claims, regulatory approval of cleanup
projects, execution timeframe of projects, remedial techniques to be utilized and agreement with other
parties.
See Note 19 Commitments and Contingencies of Notes to Financial Statements for further
discussion of our environmental matters.
Financial Instruments
The following table illustrates the potential change in fair value for interest rate sensitive
instruments based on a hypothetical immediate one percentage point increase in interest rates across
all maturities and the potential change in fair value for foreign exchange rate sensitive instruments
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