Honeywell 2014 Annual Report Download - page 72

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the uncertainties inherent in making long-term projections and in connection with the recent
implementation of the Trust Distribution Procedures by the NARCO Trust, as well as the stay of all
NARCO asbestos claims which remained in place throughout NARCO’s Chapter 11 case, we do not
believe that we have a reasonable basis for estimating NARCO asbestos claims beyond 2018.
Our insurance receivable corresponding to the estimated liability for pending and future NARCO
asbestos claims reflects coverage which reimburses Honeywell for portions of NARCO-related
indemnity and defense costs and is provided by a large number of insurance policies written by dozens
of insurance companies in both the domestic insurance market and the London excess market. We
conduct analyses to estimate the probable amount of insurance that is recoverable for asbestos
claims. While the substantial majority of our insurance carriers are solvent, some of our individual
carriers are insolvent, which has been considered in our analysis of probable recoveries. We made
judgments concerning insurance coverage that we believe are reasonable and consistent with our
historical dealings and our knowledge of any pertinent solvency issues surrounding insurers.
Projecting future events is subject to many uncertainties that could cause the NARCO-related
asbestos liabilities or assets to be higher or lower than those projected and recorded. Given the
uncertainties, we review our estimates periodically, and update them based on our experience and
other relevant factors. Similarly, we will reevaluate our projections concerning our probable insurance
recoveries in light of any changes to the projected liability or other developments that may impact
insurance recoveries.
Friction Products—The following tables present information regarding Bendix related asbestos
claims activity:
Claims Activity 2014 2013
Years Ended
December 31,
Claims Unresolved at the beginning of year. . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,302 23,141
Claims Filed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,694 4,527
Claims Resolved(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6,729) (15,366)
Claims Unresolved at the end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,267 12,302
(1) Claims resolved in 2014 include 2,110 cancer claims which were determined to have no value.
Also, claims resolved in 2014 and 2013 include significantly aged (i.e., pending for more than six
years) claims totaling 1,266 and 12,250, respectively, of which 82% and 92%, respectively, were
non-malignant.
Disease Distribution of Unresolved Claims 2014 2013
December 31,
Mesothelioma and Other Cancer Claims . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,933 5,810
Nonmalignant Claims . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,334 6,492
Total Claims . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,267 12,302
Honeywell has experienced average resolution values per claim excluding legal costs as follows:
2014 2013 2012 2011 2010
Years Ended December 31,
(in whole dollars)
Malignant claims . . . . . . . . . . . . . . . . . . . . . $53,500 $51,000 $49,000 $48,000 $54,000
Nonmalignant claims. . . . . . . . . . . . . . . . . . $ 120 $ 850 $ 1,400 $ 1,000 $ 1,300
It is not possible to predict whether resolution values for Bendix-related asbestos claims will
increase, decrease or stabilize in the future.
63
HONEYWELL INTERNATIONAL INC.
NOTES TO FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)