Honeywell 2013 Annual Report Download - page 60

•Capital expenditures—we expect to spend approximately $1.2 billion for capital expenditures in
2014 primarily for growth, production and capacity expansion, cost reduction, maintenance, and
replacement.
•Share repurchases—under the Company’s share repurchase program, $5 billion is available as
of December 31, 2013 for additional share repurchases. Honeywell presently expects to
repurchase outstanding shares from time to time to offset the dilutive impact of employee stock-
based compensation plans, including future option exercises, restricted unit vesting and
matching contributions under our savings plans. The amount and timing of future repurchases
may vary depending on market conditions and the level of operating, financing and other
investing activities.
•Dividends—we increased our dividend rate by 10 percent to $.45 per share of common stock
effective with the fourth quarter 2013 dividend. The Company intends to continue to pay
quarterly dividends in 2014.
•Asbestos claims—we expect our cash spending for asbestos claims and our cash receipts for
related insurance recoveries to be approximately $459 and $76 million, respectively, in 2014.
See Asbestos Matters in Note 22 to the financial statements for further discussion of possible
funding obligations in 2014 related to the NARCO Trust.
•Pension contributions—in 2014, we are not required to make contributions to our U.S. pension
plans. 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.
•Repositioning actions—we expect that cash spending for severance and other exit costs
necessary to execute repositioning actions will approximate $175 million in 2014.
•Environmental remediation costs—we expect to spend approximately $300 million in 2014 for
remedial response and voluntary clean-up costs. See Environmental Matters in Note 22 to the
financial statements for additional information.
We continuously assess the relative strength of each business in our portfolio as to strategic fit,
market position, profit and cash flow contribution in order to upgrade our combined portfolio and
identify business units that will most benefit from increased investment. We identify acquisition
candidates that will further our strategic plan and strengthen our existing core businesses. We also
identify businesses that do not fit into our long-term strategic plan based on their market position,
relative profitability or growth potential. These businesses are considered for potential divestiture,
restructuring or other repositioning actions subject to regulatory constraints. In 2013 and 2012, we
realized $3 and $21 million, respectively, in cash proceeds from sales of non-strategic businesses.
Based on past performance and current expectations, we believe that our operating cash flows will
be sufficient to meet our future operating cash needs. Our available cash, committed credit lines,
access to the public debt and equity markets as well as our ability to sell trade accounts receivables,
provide additional sources of short-term and long-term liquidity to fund current operations, debt
maturities, and future investment opportunities.
Contractual Obligations and Probable Liability Payments
Following is a summary of our significant contractual obligations and probable liability payments at
December 31, 2013:
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