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<div> <a name="_AUC88633c09e177481b9dadfcebd7872bb4">Note 3. Acquisitions</a>   In June 2009, the Company entered into a definitive agreement to acquire the RMG Group (RMG Regel + Messtechnik GmbH), a natural gas measuring and control products, services and integrated solutions company, for approximately $400 million.   Completion of this acquisition is subject to regulatory approval.  The RMG Group will be integrated into our Automation and Control Solutions segment. <style> /*<![CDATA[*/  /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-qformat:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman","serif";} /*]]>*/ </style> </div>

<div> <a name="_AUCa347fcc6cdfa4751abd17c99ccd7b002">NOTE 15. Commitments and Contingencies</a>   Environmental Matters We are subject to various federal, state, local and foreign government requirements relating to the protection of the environment. We believe that, as a general matter, our policies, practices and procedures are properly designed to prevent unreasonable risk of environmental damage and personal injury and that our handling, manufacture, use and disposal of hazardous substances are in accordance with environmental and safety laws and regulations. However, mainly because of past operations and operations of predecessor companies, we, like other companies engaged in similar businesses, have incurred remedial response and voluntary cleanup costs for site contamination and are a party to lawsuits and claims associated with environmental and safety matters, including past production of products containing hazardous substances. Additional lawsuits, claims and costs involving environmental matters are likely to continue to arise in the future. With respect to environmental matters involving site contamination, we continually conduct studies, individually or jointly with other potentially responsible parties, to determine the feasibility of various remedial techniques. It is our policy to record appropriate liabilities for environmental matters when remedial efforts or damage claim payments are probable and the costs can be reasonably estimated. Such liabilities are based on our best estimate of the undiscounted future costs required to complete the remedial work. The recorded liabilities are adjusted periodically as remediation efforts progress or as additional technical, regulatory or legal information becomes available. Given the uncertainties regarding the status of laws, regulations, enforcement policies, the impact of other potentially responsible parties, technology and information related to individual sites, we do not believe it is possible to develop an estimate of the range of reasonably possible environmental loss in excess of our recorded liabilities. We expect to fund expenditures for these matters from operating cash flow. The timing of cash expenditures depends on a number of factors, including the timing of remedial investigations and feasibility studies, the timing of litigation and settlements of remediation liability, personal injury and property damage claims, regulatory approval of cleanup projects, remedial techniques to be utilized and agreements with other parties. The following table summarizes information concerning our recorded liabilities for environmental costs:   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="607" style= "width:455.4pt;border-collapse:collapse;mso-yfti-tbllook:480;mso-padding-alt: 0in 5.4pt 0in 5.4pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="439" valign="top" style= "width:329.4pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="168" valign="top" style= "width:1.75in;border:none;border-bottom:solid windowtext 1.0pt; mso-border-bottom-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> Six Months Ended June 30, 2009 </td> </tr> <tr style="mso-yfti-irow:1"> <td width="439" valign="top" style= "width:329.4pt;padding:0in 5.4pt 0in 5.4pt"> Beginning of period </td> <td width="168" valign="top" style= "width:1.75in;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt">       $ 946 </td> </tr> <tr style="mso-yfti-irow:2"> <td width="439" valign="top" style= "width:329.4pt;padding:0in 5.4pt 0in 5.4pt"> Accruals for environmental matters deemed   probable and reasonably estimable </td> <td width="168" valign="top" style= "width:1.75in;padding:0in 5.4pt 0in 5.4pt">            71 </td> </tr> <tr style="mso-yfti-irow:3"> <td width="439" valign="top" style= "width:329.4pt;padding:0in 5.4pt 0in 5.4pt"> Environmental liability payments </td> <td width="168" valign="top" style= "width:1.75in;padding:0in 5.4pt 0in 5.4pt">        (133) </td> </tr> <tr style="mso-yfti-irow:4;mso-yfti-lastrow:yes"> <td width="439" valign="top" style= "width:329.4pt;padding:0in 5.4pt 0in 5.4pt"> End of period </td> <td width="168" valign="top" style= "width:1.75in;padding:0in 5.4pt 0in 5.4pt">       $ 884 </td> </tr> </table>   Environmental liabilities are included in the following balance sheet accounts:   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="607" style= "width:455.4pt;border-collapse:collapse;mso-yfti-tbllook:480;mso-padding-alt: 0in 5.4pt 0in 5.4pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="271" valign="top" style= "width:203.4pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="140" valign="top" style= "width:105.2pt;padding:0in 5.4pt 0in 5.4pt"> June 30, 2009 </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="180" valign="top" style= "width:135.0pt;padding:0in 5.4pt 0in 5.4pt"> December 31, 2008 </td> </tr> <tr style="mso-yfti-irow:1"> <td width="271" valign="top" style= "width:203.4pt;padding:0in 5.4pt 0in 5.4pt"> Accrued liabilities </td> <td width="140" valign="top" style= "width:105.2pt;padding:0in 5.4pt 0in 5.4pt">         $314 </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="180" valign="top" style= "width:135.0pt;padding:0in 5.4pt 0in 5.4pt">          $343 </td> </tr> <tr style="mso-yfti-irow:2"> <td width="271" valign="top" style= "width:203.4pt;padding:0in 5.4pt 0in 5.4pt"> Other liabilities </td> <td width="140" valign="top" style= "width:105.2pt;padding:0in 5.4pt 0in 5.4pt">          570 </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="180" valign="top" style= "width:135.0pt;padding:0in 5.4pt 0in 5.4pt">           603 </td> </tr> <tr style="mso-yfti-irow:3;mso-yfti-lastrow:yes"> <td width="271" valign="top" style= "width:203.4pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="140" valign="top" style= "width:105.2pt;padding:0in 5.4pt 0in 5.4pt">         $884 </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="180" valign="top" style= "width:135.0pt;padding:0in 5.4pt 0in 5.4pt">          $946 </td> </tr> </table>   Although we do not currently possess sufficient information to reasonably estimate the amounts of liabilities to be recorded upon future completion of studies, litigation or settlements, and neither the timing nor the amount of the ultimate costs associated with environmental matters can be determined, they could be material to our consolidated results of operations or operating cash flows in the periods recognized or paid. However, considering our past experience and existing reserves, we do not expect that these environmental matters will have a material adverse effect on our consolidated financial position. New Jersey Chrome Sites — Provisions have been made in our financial statements for the estimated costs of the court-ordered excavation and transport for offsite disposal of approximately one million tons of chromium residue present at a predecessor Honeywell site located in Jersey City, New Jersey, known as Study Area 7. These expenditures have been and are expected to continue to be incurred evenly through the remedy’s expected completion date in 2010. We do not expect implementation of this remedy to have a material adverse effect on our future consolidated results of operations, operating cash flows or financial position. Provision also has been made in our financial statements for the estimated costs of implementing related groundwater remedial plans approved by the Court, as well as sediment remedial plans, which also have been approved by the Court and are presently under review by the U.S. Environmental Protection Agency. The above-referenced site is the most significant of the twenty-one sites located in Hudson County, New Jersey that are the subject of an Administrative Consent Order (ACO) entered into with the New Jersey Department of Environmental Protection (NJDEP) in 1993 (the “Honeywell ACO Sites”). Remedial investigations and activities consistent with the ACO have also been conducted and are underway at the other Honeywell ACO Sites. We have recorded reserves for the Honeywell ACO Sites where appropriate under the accounting policy described above. On May 3, 2005, NJDEP filed a lawsuit in New Jersey Superior Court against Honeywell and two other companies seeking declaratory and injunctive relief, unspecified damages, and the reimbursement of unspecified total costs relating to sites in New Jersey allegedly contaminated with chrome ore processing residue. The claims against Honeywell relate to the activities of a predecessor company which ceased its New Jersey manufacturing operations in the mid-1950’s. Honeywell and the two other companies have agreed to settle this litigation with NJDEP, subject to Court approval. Under the settlement, Honeywell would pay $5 million of NJDEP’s past costs, as well as accept sole responsibility to remediate 24 of the 53 “Publicly Funded Sites” (i.e., those sites for which none of the three companies had previously accepted responsibility). Honeywell would also bear 50% of the costs at another 10 Publicly Funded Sites. We have recorded reserves for the Publicly Funded Sites where appropriate under the accounting policy described above. Lawsuits were previously filed in federal court against Honeywell and other landowners by Jersey City and two of its municipal utility authorities, and separately by a citizens group seeking, the cleanup of chrome residue at several of the Honeywell ACO Sites under the federal Resource Conservation and Recovery Act (RCRA). Honeywell, Jersey City, the municipal utility authorities and the citizens group have agreed to settle claims relating to a group of properties known as Study Area 6 North, which settlement has been approved by the Court. These sites and other related sites have been classified by Jersey City as an area in need of redevelopment and Jersey City has approved a redevelopment plan and agreement regarding these sites. As part of this settlement, Honeywell has also agreed to release claims it may have had against Jersey City and its municipal utility authorities for contamination of river sediments and for the remediation of chrome residue at the Publicly Funded Sites that are sewer lines. Honeywell and the plaintiffs have reached a settlement for one group of properties known as Study Area 6 South, and that settlement has been approved by the Court. The remedial actions regarding the settlements discussed above, which have also been approved by NJDEP, are consistent with our recorded reserves. Settlement negotiations are ongoing for the remaining sites (portions of what is known as Study Area 5) in the litigation. Dundalk Marine Terminal, Baltimore — Chrome residue from legacy chrome plant operations in Baltimore was deposited as fill at the Dundalk Marine Terminal (“DMT”), which is owned and operated by the Maryland Port Administration (“MPA”). Honeywell and the MPA have been sharing costs to investigate and mitigate related environmental issues, and have entered into a cost sharing agreement under which Honeywell will bear 77 percent of the costs of developing and implementing permanent remedies for the DMT facility. The investigative phase is ongoing, after which the appropriate remedies will be identified and chosen. We have negotiated a Consent Decree with the MPA and Maryland Department of the Environment (“MDE”) with respect to the investigation and remediation of the DMT facility. The Consent Decree is being challenged in federal court by BUILD, a Baltimore community group, together with a local church and two individuals (collectively “BUILD”). In October 2007, the Court dismissed with prejudice BUILD’s state law claims and dismissed without prejudice BUILD’s RCRA claims regarding neighborhoods near the DMT facility. In August 2008, the Court held a hearing on the Company’s motion to dismiss BUILD’s remaining claims on the grounds that MDE is diligently prosecuting the investigation and remediation of the DMT. We are awaiting the Court’s decision. We do not believe that this matter will have a material adverse impact on our consolidated financial position or operating cash flows. Given the scope and complexity of this project, it is possible that the cost of remediation, when determinable, could have a material adverse impact on our results of operations in the periods recognized. Onondaga Lake, Syracuse, NY — A predecessor company to Honeywell operated a chemical plant which is alleged to have contributed mercury and other contaminants to the Lake. In July 2005, the New York State Department of Environmental Conservation (the DEC) issued its Record of Decision (ROD) with respect to remediation of industrial contamination in the Lake. In January 2007, a Consent Decree was approved by the United States District Court for the Northern District of New York for the implementation of the combined dredging/capping remedy set forth in the ROD. We have accrued for our estimated cost of implementing the remedy set forth in the ROD based on current available information and analysis performed by our engineering consultants. In December 2006, the United States Fish and Wildlife Service published notice of its intent to pursue natural resource damages related to the site. It is not possible to predict the outcome or timing of its assessments, which are typically lengthy processes lasting several years, or the amounts of or responsibility for these damages. Honeywell is also conducting remedial investigations and activities at other sites in Syracuse, New York. We have recorded reserves for these investigations and activities where appropriate under the accounting policy described above. Asbestos Matters Like many other industrial companies, Honeywell is a defendant in personal injury actions related to asbestos. We did not mine or produce asbestos, nor did we make or sell insulation products or other construction materials that have been identified as the primary cause of asbestos related disease in the vast majority of claimants. Products containing asbestos previously manufactured by Honeywell or by previously owned subsidiaries primarily fall into two general categories: refractory products and friction products. Refractory Products — Honeywell owned North American Refractories Company (NARCO) from 1979 to 1986. NARCO produced refractory products (high temperature bricks and cement) that were sold largely to the steel industry in the East and Midwest. Less than 2 percent of NARCO’s products contained asbestos. When we sold the NARCO business in 1986, we agreed to indemnify NARCO with respect to personal injury claims for products that had been discontinued prior to the sale (as defined in the sale agreement). NARCO retained all liability for all other claims. On January 4, 2002, NARCO filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code. As a result of the NARCO bankruptcy filing, all of the claims pending against NARCO are automatically stayed pending the reorganization of NARCO. In addition, the bankruptcy court enjoined both the filing and prosecution of NARCO-related asbestos claims against Honeywell. The stay has remained in effect continuously since January 4, 2002. In connection with NARCO’s bankruptcy filing, we paid NARCO’s parent company $40 million and agreed to provide NARCO with up to $20 million in financing. We also agreed to pay $20 million to NARCO’s parent company upon the filing of a plan of reorganization for NARCO acceptable to Honeywell (which amount was paid in December 2005 following the filing of NARCO’s Third Amended Plan of Reorganization), and to pay NARCO’s parent company $40 million, and to forgive any outstanding NARCO indebtedness to Honeywell, upon the effective date of the plan of reorganization. We believe that, as part of the NARCO plan of reorganization, a trust will be established for the benefit of all asbestos claimants, current and future, pursuant to Trust Distribution Procedures negotiated with the NARCO Asbestos Claimants Committee and the Court-appointed legal representative for future asbestos claimants. If the trust is put in place and approved by the Court as fair and equitable, Honeywell as well as NARCO will be entitled to a permanent channeling injunction barring all present and future individual actions in state or federal courts and requiring all asbestos related claims based on exposure to NARCO products to be made against the federally-supervised trust. Honeywell has reached agreement with the representative for future NARCO claimants and the Asbestos Claimants Committee to cap its annual contributions to the trust with respect to future claims at a level that would not have a material impact on Honeywell’s operating cash flows. In November 2007, the Bankruptcy Court entered an amended order confirming the NARCO Plan without modification and approving the 524(g) trust and channeling injunction in favor of NARCO and Honeywell. In December 2007, certain insurers filed an appeal of the Bankruptcy Court Order in the United States District Court for the Western District of Pennsylvania. The District Court affirmed the Bankruptcy Court Order in July 2008. In August 2008, insurers filed a notice of appeal to the Third Circuit Court of Appeals. The appeal is fully briefed, oral argument took place on May 21, 2009, and the matter has been submitted for decision. No assurances can be given as to the time frame or outcome of this appeal. We expect that the stay enjoining litigation against NARCO and Honeywell will remain in effect during the pendency of these proceedings. Our consolidated financial statements reflect an estimated liability for settlement of pending and future NARCO-related asbestos claims as of June 30, 2009 and December 31, 2008 of $1.1 billion. The estimated liability for pending claims is based on terms and conditions, including evidentiary requirements, in definitive agreements with approximately 260,000 current claimants, and an estimate of the unsettled claims pending as of the time NARCO filed for bankruptcy protection. Substantially all settlement payments with respect to current claims have been made. Approximately $100 million of payments due pursuant to these settlements is due only upon establishment of the NARCO trust. The estimated liability for future claims represents the estimated value of future asbestos related bodily injury claims expected to be asserted against NARCO through 2018 and the aforementioned obligations to NARCO’s parent. In light of the uncertainties inherent in making long-term projections we do not believe that we have a reasonable basis for estimating asbestos claims beyond 2018 under SFAS No. 5, “Accounting for Contingencies”. The estimate is based upon the disease criteria and payment values contained in the NARCO Trust Distribution Procedures negotiated with the NARCO Asbestos Claimants Committee and the NARCO future claimants’ representative. Honeywell projected the probable number and value, including trust claim handling costs, of asbestos related future liabilities based upon experience of asbestos claims filing rates in the tort system and in certain operating asbestos trusts, and the claims experience in those forums. The valuation methodology also includes an analysis of the population likely to have been exposed to asbestos containing products, epidemiological studies to estimate the number of people likely to develop asbestos related diseases, NARCO claims filing history, the pending inventory of NARCO asbestos related claims and payment rates expected to be established by the NARCO trust. This methodology used to estimate the liability for future claims has been commonly accepted by numerous courts. As of June 30, 2009 and December 31, 2008, our consolidated financial statements reflect an insurance receivable corresponding to the liability for settlement of pending and future NARCO-related asbestos claims of $873 and $877 million, respectively. This coverage reimburses Honeywell for portions of the costs incurred to settle NARCO related claims and court judgments as well as 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. At June 30, 2009, a significant portion of this coverage is with insurance companies with whom we have agreements to pay full policy limits based on corresponding Honeywell claims costs. We conduct analyses to determine the amount of insurance that we estimate is probable of recovery in relation to payment of current and estimated future 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 with our insurers, our knowledge of any pertinent solvency issues surrounding insurers and various judicial determinations relevant to our insurance programs. In the second quarter of 2006, Travelers Casualty and Insurance Company (“Travelers”) filed a lawsuit against Honeywell and other insurance carriers in the Supreme Court of New York, County of New York, disputing obligations for NARCO-related asbestos claims under high excess insurance coverage issued by Travelers and other insurance carriers. Approximately $340 million of coverage under these policies is included in our NARCO-related insurance receivable at June 30, 2009. Honeywell believes it is entitled to the coverage at issue and expects to prevail in this matter. In the third quarter of 2007, Honeywell prevailed on a critical choice of law issue concerning the appropriate method of allocating NARCO-related asbestos liabilities to triggered policies. The plaintiffs appealed and the trial court’s ruling was upheld by the appellate court in the second quarter of 2009. A related New Jersey action brought by Honeywell has been dismissed, but all coverage claims against plaintiffs have been preserved in the New York action.  Based upon (i) our understanding of relevant facts and applicable law, (ii) the terms of the insurance policies at issue, (iii) our experience on matters of this nature, and (iv) the advice of counsel, we believe that the amount due from Travelers and other insurance carriers ($340 million at June 30, 2009) is probable of recovery. While Honeywell expects to prevail in this matter, an adverse outcome could have a material impact on our results of operations in the period recognized but would not be material to our consolidated financial position or operating cash flows. 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. There is no assurance that the plan of reorganization will become final, that insurance recoveries will be timely or whether there will be any NARCO related asbestos claims beyond 2018. Given the inherent uncertainty in predicting future events, 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 — Honeywell’s Bendix friction materials (Bendix) business manufactured automotive brake parts that contained chrysotile asbestos in an encapsulated form. Existing and potential claimants consist largely of individuals who allege exposure to asbestos from brakes from either performing or being in the vicinity of individuals who performed brake replacements. From 1981 through June 30, 2009, we have resolved approximately 119,000 Bendix related asbestos claims. We had 129 trials resulting in favorable verdicts and 15 trials resulting in adverse verdicts. Two of these adverse verdicts were reversed on appeal, three verdicts were vacated on post-trial motions, three claims were settled and the remaining have been or will be appealed. The following tables present information regarding Bendix related asbestos claims activity:       <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="655" style= "border-collapse:collapse;mso-table-layout-alt:fixed;mso-yfti-tbllook: 480;mso-padding-alt:0in 5.4pt 0in 5.4pt"> <tr style= "mso-yfti-irow:0;mso-yfti-firstrow:yes;height:24.0pt"> <td width="295" valign="top" style= "width:221.4pt;padding:0in 5.4pt 0in 5.4pt; height:24.0pt">   </td> <td width="145" valign="top" style= "width:108.65pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:24.0pt"> Six Months Ended June 30, 2009 </td> <td width="23" valign="top" style= "width:17.35pt;padding:0in 5.4pt 0in 5.4pt; height:24.0pt">   </td> <td width="192" colspan="2" valign="top" style= "width:2.0in;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:24.0pt"> Year Ended December 31, </td> </tr> <tr style="mso-yfti-irow:1"> <td width="295" valign="top" style= "width:221.4pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="145" valign="top" style= "width:108.65pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="23" valign="top" style= "width:17.35pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="96" valign="top" style= "width:1.0in;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt">    2008  </td> <td width="96" valign="top" style= "width:1.0in;border:none;border-top:solid windowtext 1.0pt; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt">    2007 </td> </tr> <tr style="mso-yfti-irow:2"> <td width="295" valign="top" style= "width:221.4pt;padding:0in 5.4pt 0in 5.4pt"> Claims Activity </td> <td width="145" valign="top" style= "width:108.65pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="23" valign="top" style= "width:17.35pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">   </td> </tr> <tr style="mso-yfti-irow:3"> <td width="295" valign="top" style= "width:221.4pt;padding:0in 5.4pt 0in 5.4pt"> Claims Unresolved at the beginning   of period </td> <td width="145" valign="top" style= "width:108.65pt;padding:0in 5.4pt 0in 5.4pt">         51,951 </td> <td width="23" valign="top" style= "width:17.35pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">       51,658 </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">       57,108 </td> </tr> <tr style="mso-yfti-irow:4"> <td width="295" valign="top" style= "width:221.4pt;padding:0in 5.4pt 0in 5.4pt"> Claims Filed during the period </td> <td width="145" valign="top" style= "width:108.65pt;padding:0in 5.4pt 0in 5.4pt">        1,353 </td> <td width="23" valign="top" style= "width:17.35pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">      4,003 </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">      2,771 </td> </tr> <tr style="mso-yfti-irow:5"> <td width="295" valign="top" style= "width:221.4pt;padding:0in 5.4pt 0in 5.4pt"> Claims Resolved during the period </td> <td width="145" valign="top" style= "width:108.65pt;padding:0in 5.4pt 0in 5.4pt">       (2,194) </td> <td width="23" valign="top" style= "width:17.35pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">     (3,710) </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">     (8,221) </td> </tr> <tr style="mso-yfti-irow:6"> <td width="295" valign="top" style= "width:221.4pt;padding:0in 5.4pt 0in 5.4pt"> Claims Unresolved at the end of period </td> <td width="145" valign="top" style= "width:108.65pt;padding:0in 5.4pt 0in 5.4pt">       51,110 </td> <td width="23" valign="top" style= "width:17.35pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">     51,951 </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">     51,658 </td> </tr> <tr style="mso-yfti-irow:7"> <td width="295" valign="top" style= "width:221.4pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="145" valign="top" style= "width:108.65pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="23" valign="top" style= "width:17.35pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">   </td> </tr> <tr style="mso-yfti-irow:8"> <td width="295" valign="top" style= "width:221.4pt;padding:0in 5.4pt 0in 5.4pt"> Disease Distribution of Unresolved Claims </td> <td width="145" valign="top" style= "width:108.65pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="23" valign="top" style= "width:17.35pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="192" colspan="2" valign="top" style= "width:2.0in;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt">   December 31, </td> </tr> <tr style="mso-yfti-irow:9"> <td width="295" valign="top" style= "width:221.4pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="145" valign="top" style= "width:108.65pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt"> June 30, 2009 </td> <td width="23" valign="top" style= "width:17.35pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="96" valign="top" style= "width:1.0in;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt">     2008 </td> <td width="96" valign="top" style= "width:1.0in;border:none;border-top:solid windowtext 1.0pt; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt">     2007 </td> </tr> <tr style="mso-yfti-irow:10"> <td width="295" valign="top" style= "width:221.4pt;padding:0in 5.4pt 0in 5.4pt"> Mesothelioma and Other Cancer Claims </td> <td width="145" valign="top" style= "width:108.65pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt">        5,787 </td> <td width="23" valign="top" style= "width:17.35pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">      5,575 </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">      5,011 </td> </tr> <tr style="mso-yfti-irow:11"> <td width="295" valign="top" style= "width:221.4pt;padding:0in 5.4pt 0in 5.4pt"> Other Claims </td> <td width="145" valign="top" style= "width:108.65pt;padding:0in 5.4pt 0in 5.4pt">       45,323 </td> <td width="23" valign="top" style= "width:17.35pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">     46,376 </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">     46,647 </td> </tr> <tr style="mso-yfti-irow:12;mso-yfti-lastrow:yes"> <td width="295" valign="top" style= "width:221.4pt;padding:0in 5.4pt 0in 5.4pt">   Total Claims </td> <td width="145" valign="top" style= "width:108.65pt;padding:0in 5.4pt 0in 5.4pt">       51,110 </td> <td width="23" valign="top" style= "width:17.35pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">     51,951 </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">     51,658 </td> </tr> </table>   Approximately 45 percent of the approximately 51,000 pending claims at June 30, 2009 are on the inactive, deferred, or similar dockets established in some jurisdictions for claimants who allege minimal or no impairment. The approximately 51,000 pending claims also include claims filed in jurisdictions such as Texas, Virginia, and Mississippi that historically allowed for consolidated filings. In these jurisdictions, plaintiffs were permitted to file complaints against a pre-determined master list of defendants, regardless of whether they have claims against each individual defendant. Many of these plaintiffs may not actually intend to assert claims against Honeywell. Based on state rules and prior experience in these jurisdictions, we anticipate that many of these claims will ultimately be dismissed. Honeywell has experienced average resolution values per claim excluding legal costs as follows:   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="655" style= "width:491.4pt;border-collapse:collapse;mso-yfti-tbllook:480;mso-padding-alt: 0in 5.4pt 0in 5.4pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="307" valign="top" style= "width:3.2in;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="348" colspan="3" valign="top" style= "width:261.0pt;padding:0in 5.4pt 0in 5.4pt">      Years Ended December 31,      </td> </tr> <tr style="mso-yfti-irow:1"> <td width="307" valign="top" style= "width:3.2in;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt"> 2008 </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt"> 2007 </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt"> 2006 </td> </tr> <tr style="mso-yfti-irow:2"> <td width="307" valign="top" style= "width:3.2in;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="348" colspan="3" valign="top" style= "width:261.0pt;padding:0in 5.4pt 0in 5.4pt"> (in whole dollars) </td> </tr> <tr style="mso-yfti-irow:3"> <td width="307" valign="top" style= "width:3.2in;padding:0in 5.4pt 0in 5.4pt"> Malignant claims </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt">    $65,000 </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt">    $33,000 </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt">    $33,000 </td> </tr> <tr style="mso-yfti-irow:4;mso-yfti-lastrow:yes"> <td width="307" valign="top" style= "width:3.2in;padding:0in 5.4pt 0in 5.4pt"> Nonmalignant claims </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt">     $1,500 </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt">       $500 </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt">       $250 </td> </tr> </table> It is not possible to predict whether resolution values for Bendix related asbestos claims will increase, decrease or stabilize in the future. Our consolidated financial statements reflect an estimated liability for resolution of pending and future Bendix related asbestos claims of $596 and $578 million at June 30, 2009 and December 31, 2008, respectively. The estimated liability for future claims represents the estimated value of future asbestos related bodily injury claims expected to be asserted against Bendix over the next five years. In light of the uncertainties inherent in making long-term projections, as well as certain factors unique to friction product asbestos claims, we do not believe that we have a reasonable basis for estimating asbestos claims beyond the next five years under SFAS No. 5, “Accounting for Contingencies”. The estimate is based upon Bendix historical experience in the tort system for the three years ended December 31, 2008 with respect to claims filing and resolution values. The methodology used to estimate the liability for future claims has been commonly accepted by numerous courts. It is similar to that used to estimate the future NARCO related asbestos claims liability. Honeywell currently has approximately $1.9 billion of insurance coverage remaining with respect to pending and potential future Bendix related asbestos claims, of which $167 and $156 million are reflected as receivables in our consolidated balance sheet at June 30, 2009 and December 31, 2008, respectively. This coverage 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. Insurance receivables are recorded in the financial statements simultaneous with the recording of the liability for the estimated value of the underlying asbestos claims. The amount of the insurance receivable recorded is based on our ongoing analysis of the insurance that we estimate is probable of recovery. This determination is based on our analysis of the underlying insurance policies, our historical experience with our insurers, our ongoing review of the solvency of our insurers, our interpretation of judicial determinations relevant to our insurance programs, and our consideration of the impacts of any settlements reached with our insurers. Insurance receivables are also recorded when structured insurance settlements provide for future fixed payment streams that are not contingent upon future claims or other events. Such amounts are recorded at the net present value of the fixed payment stream. On a cumulative historical basis, Honeywell has recorded insurance receivables equal to approximately 50 percent of the value of the underlying asbestos claims recorded. However, because there are gaps in our coverage due to insurance company insolvencies, certain uninsured periods, and insurance settlements, this rate is expected to decline for any future Bendix related asbestos liabilities that may be recorded. Future recoverability rates may also be impacted by numerous other factors, such as future insurance settlements, insolvencies and judicial determinations relevant to our coverage program, which are difficult to predict. Assuming continued defense and indemnity spending at current levels, we estimate that the cumulative recoverability rate could decline over the next five years to approximately 40 percent. Honeywell believes it has sufficient insurance coverage and reserves to cover all pending Bendix related asbestos claims and Bendix related asbestos claims estimated to be filed within the next five years. Although it is impossible to predict the outcome of either pending or future Bendix related asbestos claims, we do not believe that such claims would have a material adverse effect on our consolidated financial position in light of our insurance coverage and our prior experience in resolving such claims. If the rate and types of claims filed, the average resolution value of such claims and the period of time over which claim settlements are paid (collectively, the “Variable Claims Factors”) do not substantially change, Honeywell would not expect future Bendix related asbestos claims to have a material adverse effect on our results of operations or operating cash flows in any fiscal year. No assurances can be given, however, that the Variable Claims Factors will not change. The following tables summarize information concerning NARCO and Bendix asbestos related balances:   Asbestos Related Liabilities <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="667" style= "width:6.95in;border-collapse:collapse;mso-yfti-tbllook:480;mso-padding-alt: 0in 5.4pt 0in 5.4pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="415" valign="top" style= "width:311.4pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="252" colspan="3" valign="top" style= "width:189.0pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt"> Six Months Ended       June 30, 2009       </td> </tr> <tr style="mso-yfti-irow:1"> <td width="415" valign="top" style= "width:311.4pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="84" valign="top" style= "width:63.0pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> Bendix </td> <td width="84" valign="top" style= "width:63.0pt;border:none;border-top:solid windowtext 1.0pt; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> NARCO </td> <td width="84" valign="top" style= "width:63.0pt;border:none;border-top:solid windowtext 1.0pt; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> Total </td> </tr> <tr style="mso-yfti-irow:2"> <td width="415" valign="top" style= "width:311.4pt;padding:0in 5.4pt 0in 5.4pt"> Beginning of period </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt">   $ 578 </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt">  $1,131 </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt">  $1,709 </td> </tr> <tr style="mso-yfti-irow:3"> <td width="415" valign="top" style= "width:311.4pt;padding:0in 5.4pt 0in 5.4pt"> Accrual for update to estimated liability </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt">      83 </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt">       2 </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt">      85 </td> </tr> <tr style="mso-yfti-irow:4"> <td width="415" valign="top" style= "width:311.4pt;padding:0in 5.4pt 0in 5.4pt"> Asbestos related liability payments </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt">     (65) </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt">      (1) </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt">     (66) </td> </tr> <tr style="mso-yfti-irow:5;mso-yfti-lastrow:yes"> <td width="415" valign="top" style= "width:311.4pt;padding:0in 5.4pt 0in 5.4pt"> End of period </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt">   $ 596 </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt">  $1,132 </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt">  $1,728 </td> </tr> </table>   Insurance Recoveries for Asbestos Related Liabilities <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="667" style= "width:6.95in;border-collapse:collapse;mso-yfti-tbllook:480;mso-padding-alt: 0in 5.4pt 0in 5.4pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="415" valign="top" style= "width:311.4pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="252" colspan="3" valign="top" style= "width:189.0pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt"> Six Months Ended       June 30, 2009       </td> </tr> <tr style="mso-yfti-irow:1"> <td width="415" valign="top" style= "width:311.4pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="84" valign="top" style= "width:63.0pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> Bendix </td> <td width="84" valign="top" style= "width:63.0pt;border:none;border-top:solid windowtext 1.0pt; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> NARCO </td> <td width="84" valign="top" style= "width:63.0pt;border:none;border-top:solid windowtext 1.0pt; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> Total </td> </tr> <tr style="mso-yfti-irow:2"> <td width="415" valign="top" style= "width:311.4pt;padding:0in 5.4pt 0in 5.4pt"> Beginning of period </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt">   $ 156 </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt">    $877 </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt">  $1,033 </td> </tr> <tr style="mso-yfti-irow:3"> <td width="415" valign="top" style= "width:311.4pt;padding:0in 5.4pt 0in 5.4pt"> Probable insurance recoveries related to     </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt">         </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt">       </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt">        </td> </tr> <tr style="mso-yfti-irow:4"> <td width="415" valign="top" style= "width:311.4pt;padding:0in 5.4pt 0in 5.4pt">   estimated liability </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt">      12 </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt">       - </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt">      12 </td> </tr> <tr style="mso-yfti-irow:5"> <td width="415" valign="top" style= "width:311.4pt;padding:0in 5.4pt 0in 5.4pt"> Insurance receipts for asbestos related liabilities </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt">      (1) </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt">      (4) </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt">      (5) </td> </tr> <tr style="mso-yfti-irow:6;mso-yfti-lastrow:yes"> <td width="415" valign="top" style= "width:311.4pt;padding:0in 5.4pt 0in 5.4pt"> End of period </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt">   $ 167 </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt">    $873 </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt">  $1,040 </td> </tr> </table>           NARCO and Bendix asbestos related balances are included in the following balance sheet accounts:   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="667" style= "width:6.95in;border-collapse:collapse;mso-yfti-tbllook:480;mso-padding-alt: 0in 5.4pt 0in 5.4pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="439" valign="top" style= "width:329.4pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="92" valign="top" style= "width:69.2pt;padding:0in 5.4pt 0in 5.4pt"> June 30, </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt"> December 31, </td> </tr> <tr style="mso-yfti-irow:1"> <td width="439" valign="top" style= "width:329.4pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="92" valign="top" style= "width:69.2pt;border:none;border-bottom:solid windowtext 1.0pt; mso-border-bottom-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt">    2009 </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="120" valign="top" style= "width:1.25in;border:none;border-bottom:solid windowtext 1.0pt; mso-border-bottom-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt">      2008 </td> </tr> <tr style="mso-yfti-irow:2"> <td width="439" valign="top" style= "width:329.4pt;padding:0in 5.4pt 0in 5.4pt"> Other current assets </td> <td width="92" valign="top" style= "width:69.2pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt">  $    4 </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="120" valign="top" style= "width:1.25in;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt">    $    4 </td> </tr> <tr style= "mso-yfti-irow:3;mso-prop-change:Honeywell 20080401T1728; mso-yfti-irow:3 !msorm"> <td width="439" valign="top" style= "width:329.4pt;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm"> Insurance recoveries for asbestos related liabilities </td> <td width="92" valign="top" style= "width:69.2pt;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm">   1,036 </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm">   </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm">     1,029 </td> </tr> <tr style= "mso-yfti-irow:4;mso-prop-change:Honeywell 20080401T1728; mso-yfti-irow:4 !msorm"> <td width="439" valign="top" style= "width:329.4pt;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm">   </td> <td width="92" valign="top" style= "width:69.2pt;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm">  $1,040 </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm">   </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm">    $1,033 </td> </tr> <tr style= "mso-yfti-irow:5;mso-prop-change:Honeywell 20080401T1728; mso-yfti-irow:5 !msorm"> <td width="439" valign="top" style= "width:329.4pt;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm">   </td> <td width="92" valign="top" style= "width:69.2pt;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm">   </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm">   </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm">   </td> </tr> <tr style= "mso-yfti-irow:6;mso-prop-change:Honeywell 20080401T1728; mso-yfti-irow:6 !msorm"> <td width="439" valign="top" style= "width:329.4pt;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm"> Accrued liabilities </td> <td width="92" valign="top" style= "width:69.2pt;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm">  $  171 </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm">   </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm">    $  171 </td> </tr> <tr style= "mso-yfti-irow:7;mso-prop-change:Honeywell 20080401T1728; mso-yfti-irow:7 !msorm"> <td width="439" valign="top" style= "width:329.4pt;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm"> Asbestos related liabilities </td> <td width="92" valign="top" style= "width:69.2pt;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm">   1,557 </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm">   </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm">     1,538 </td> </tr> <tr style= "mso-yfti-irow:8;mso-yfti-lastrow:yes;mso-prop-change:Honeywell 20080401T1728; mso-yfti-irow:8 !msorm;mso-yfti-lastrow:yes !msorm"> <td width="439" valign="top" style= "width:329.4pt;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm">   </td> <td width="92" valign="top" style= "width:69.2pt;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm">  $1,728 </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm">   </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm">    $1,709 </td> </tr> </table> Other Matters    We are subject to a number of other lawsuits, investigations and disputes (some of which involve substantial amounts claimed) arising out of the conduct of our business, including matters relating to commercial transactions, government contracts, product liability, prior acquisitions and divestitures, employee benefit plans, intellectual property, and health and safety matters. We recognize a liability for any contingency that is probable of occurrence and reasonably estimable. We continually assess the likelihood of adverse judgments of outcomes in these matters, as well as potential ranges of possible losses (taking into consideration any insurance recoveries), based on a careful analysis of each matter with the assistance of outside legal counsel and, if applicable, other experts. Included in these other matters are the following: Allen, et al. v. Honeywell Retirement Earnings Plan — Pursuant to a settlement approved by the U.S. District Court for the District of Arizona in February 2008, 18 of 21 claims alleged by plaintiffs in this class action lawsuit were dismissed with prejudice in exchange for approximately $35 million and the maximum aggregate liability for the remaining three claims (alleging that Honeywell impermissibly reduced the pension benefits of certain employees of a predecessor entity when the plan was amended in 1983 and failed to calculate benefits in accordance with the terms of the plan) was capped at $500 million. Any amounts payable, including the settlement amount, have or will be paid from the Company’s pension plan. We continue to expect to prevail on the remaining claims in light of applicable law and our substantial affirmative defenses, which have not yet been considered by the Court. Accordingly, we do not believe that a liability is probable of occurrence and reasonably estimable with respect to these claims and we have not recorded a provision for the remaining claims in our financial statements. Quick Lube — On March 31, 2008, S&E Quick Lube, a filter distributor, filed suit in U.S. District Court for the District of Connecticut alleging that twelve filter manufacturers, including Honeywell, engaged in a conspiracy to fix prices, rig bids and allocate U.S. customers for aftermarket automotive filters. This suit is a purported class action on behalf of direct purchasers of filters from the defendants. Parallel purported class actions, including on behalf of indirect purchasers of filters, have been filed by other plaintiffs in a variety of jurisdictions in the United States and Canada. The U.S cases have been consolidated into a single multi-district litigation in the Northern District of Illinois. We intend to vigorously defend the claims raised in these actions. The Antitrust Division of the Department of Justice (DOJ) is also investigating the allegations raised in these suits. We are fully cooperating with the DOJ investigation. Given the uncertainty inherent in litigation and investigations (including the specific matters referenced above), we do not believe it is possible to develop estimates of reasonably possible loss in excess of current accruals for these matters. Considering our past experience and existing accruals, we do not expect the outcome of these matters, either individually or in the aggregate, to have a material adverse effect on our consolidated financial position. Because most contingencies are resolved over long periods of time, potential liabilities are subject to change due to new developments, changes in settlement strategy or the impact of evidentiary requirements, which could cause us to pay damage awards or settlements (or become subject to equitable remedies) that could have a material adverse effect on our results of operations or operating cash flows in the periods recognized or paid. <style> /*<![CDATA[*/ st1:*{behavior:url(#ieooui) }  /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-qformat:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman","serif";} /*]]>*/ </style> </div>

<div> <a name="_AUC27bffd93df1d44d1886da3995ebcbb4e">NOTE 12. Comprehensive Income/(Loss)</a>   Comprehensive income/(loss) consists of the following:   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="667" style= "border-collapse:collapse;mso-table-layout-alt:fixed;mso-yfti-tbllook: 480;mso-padding-alt:0in 5.4pt 0in 5.4pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="307" valign="top" style= "width:3.2in;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="168" colspan="2" valign="top" style= "width:1.75in;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt"> Three Months Ended     June 30,       </td> <td width="17" valign="top" style= "width:12.9pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="175" colspan="2" valign="top" style= "width:131.1pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt"> Six Months Ended     June 30,       </td> </tr> <tr style="mso-yfti-irow:1"> <td width="307" valign="top" style= "width:3.2in;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="72" valign="top" style= "width:.75in;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt">  2009  </td> <td width="96" valign="top" style= "width:1.0in;border:none;border-top:solid windowtext 1.0pt; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt">  2008  </td> <td width="17" valign="top" style= "width:12.9pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="91" valign="top" style= "width:68.1pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt">  2009  </td> <td width="84" valign="top" style= "width:63.0pt;border:none;border-top:solid windowtext 1.0pt; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt">  2008  </td> </tr> <tr style="mso-yfti-irow:2;height:15.3pt"> <td width="307" valign="top" style= "width:3.2in;padding:0in 5.4pt 0in 5.4pt; height:15.3pt">   </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt; height:15.3pt">   </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt; height:15.3pt">   </td> <td width="17" valign="top" style= "width:12.9pt;padding:0in 5.4pt 0in 5.4pt; height:15.3pt">   </td> <td width="91" valign="top" style= "width:68.1pt;padding:0in 5.4pt 0in 5.4pt; height:15.3pt">   </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt; height:15.3pt">   </td> </tr> <tr style="mso-yfti-irow:3"> <td width="307" valign="top" style= "width:3.2in;padding:0in 5.4pt 0in 5.4pt"> Net income </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt">  $460 </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">    $728 </td> <td width="17" valign="top" style= "width:12.9pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="91" valign="top" style= "width:68.1pt;padding:0in 5.4pt 0in 5.4pt"> $  859 </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> $1,375 </td> </tr> <tr style="mso-yfti-irow:4"> <td width="307" valign="top" style= "width:3.2in;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="17" valign="top" style= "width:12.9pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="91" valign="top" style= "width:68.1pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt">   </td> </tr> <tr style="mso-yfti-irow:5"> <td width="307" valign="top" style= "width:3.2in;padding:0in 5.4pt 0in 5.4pt"> Foreign exchange translation   adjustments </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt">     389 </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">       (67) </td> <td width="17" valign="top" style= "width:12.9pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="91" valign="top" style= "width:68.1pt;padding:0in 5.4pt 0in 5.4pt">      139 </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt">      177 </td> </tr> <tr style="mso-yfti-irow:6"> <td width="307" valign="top" style= "width:3.2in;padding:0in 5.4pt 0in 5.4pt"> Pension and postretirement   benefit adjustments </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt">      57 </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">        12 </td> <td width="17" valign="top" style= "width:12.9pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="91" valign="top" style= "width:68.1pt;padding:0in 5.4pt 0in 5.4pt">       83 </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt">       25 </td> </tr> <tr style="mso-yfti-irow:7"> <td width="307" valign="top" style= "width:3.2in;padding:0in 5.4pt 0in 5.4pt"> Change in fair value of   effective cash flow hedges </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt">      46 </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">        (4) </td> <td width="17" valign="top" style= "width:12.9pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="91" valign="top" style= "width:68.1pt;padding:0in 5.4pt 0in 5.4pt">       24 </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt">       (2) </td> </tr> <tr style="mso-yfti-irow:8"> <td width="307" valign="top" style= "width:3.2in;padding:0in 5.4pt 0in 5.4pt"> Change in unrealized losses on   available for sale investments (1) </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt">      45 </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">         - </td> <td width="17" valign="top" style= "width:12.9pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="91" valign="top" style= "width:68.1pt;padding:0in 5.4pt 0in 5.4pt">       51 </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt">        - </td> </tr> <tr style="mso-yfti-irow:9"> <td width="307" valign="top" style= "width:3.2in;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt">   997 </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">     669 </td> <td width="17" valign="top" style= "width:12.9pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="91" valign="top" style= "width:68.1pt;padding:0in 5.4pt 0in 5.4pt">  1,156 </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt">  1,575 </td> </tr> <tr style="mso-yfti-irow:10"> <td width="307" valign="top" style= "width:3.2in;padding:0in 5.4pt 0in 5.4pt"> Comprehensive Income attributable to noncontrolling interest(2) </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt">      (9) </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">        (5) </td> <td width="17" valign="top" style= "width:12.9pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="91" valign="top" style= "width:68.1pt;padding:0in 5.4pt 0in 5.4pt">      (11) </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt">       (9) </td> </tr> <tr style="mso-yfti-irow:11"> <td width="307" valign="top" style= "width:3.2in;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="17" valign="top" style= "width:12.9pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="91" valign="top" style= "width:68.1pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt">   </td> </tr> <tr style="mso-yfti-irow:12;mso-yfti-lastrow:yes"> <td width="307" valign="top" style= "width:3.2in;padding:0in 5.4pt 0in 5.4pt"> Comprehensive Income/(Loss) attributable to Honeywell </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt"> $988 </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> $664 </td> <td width="17" valign="top" style= "width:12.9pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="91" valign="top" style= "width:68.1pt;padding:0in 5.4pt 0in 5.4pt"> $1,145 </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt">  $1,566 </td> </tr> </table>   <![if !supportLists]>(1)  <![endif]>Includes reclassification adjustment for losses included in net income.   <![if !supportLists]>(2)  <![endif]>Comprehensive Income/(Loss) attributable to noncontrolling interest consisted predominately of net income.     Changes in Noncontrolling interest consist of the following:   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="415" style= "width:311.4pt;border-collapse:collapse;mso-padding-alt:0in 5.4pt 0in 5.4pt"> <tr style= "mso-yfti-irow:0;mso-yfti-firstrow:yes;height:12.75pt"> <td width="366" nowrap="nowrap" valign="bottom" style= "width:274.45pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> December 31, 2008 </td> <td width="49" nowrap="nowrap" valign="bottom" style= "width:36.95pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> $82 </td> </tr> <tr style="mso-yfti-irow:1;height:12.75pt"> <td width="366" nowrap="nowrap" valign="bottom" style= "width:274.45pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> Comprehensive Income/(Loss)attributable to noncontrolling interest </td> <td width="49" nowrap="nowrap" valign="bottom" style= "width:36.95pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">  11 </td> </tr> <tr style="mso-yfti-irow:2;height:13.5pt"> <td width="366" nowrap="nowrap" valign="bottom" style= "width:274.45pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt"> Capital contribution by noncontrolling shareholders </td> <td width="49" nowrap="nowrap" valign="bottom" style= "width:36.95pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   4 </td> </tr> <tr style="mso-yfti-irow:3;height:13.5pt"> <td width="366" nowrap="nowrap" valign="bottom" style= "width:274.45pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt"> Dividends paid </td> <td width="49" nowrap="nowrap" valign="bottom" style= "width:36.95pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">  (3) </td> </tr> <tr style= "mso-yfti-irow:4;mso-yfti-lastrow:yes;height:13.5pt"> <td width="366" nowrap="nowrap" valign="bottom" style= "width:274.45pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt"> June 30, 2009 </td> <td width="49" nowrap="nowrap" valign="bottom" style= "width:36.95pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt"> $94 </td> </tr> </table>   In the first six months of 2009 there were no increases or decreases to Honeywell additional paid in capital for purchases or sales of existing noncontrolling interests. <style> /*<![CDATA[*/  /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-qformat:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman","serif";} /*]]>*/ </style> </div>

<div> <a name="_AUCf147973294e043659d3dc641c71062d5">NOTE 10.  Long-term Debt and Credit Agreements</a>   <table class="MsoNormalTable" border="1" cellspacing="0" cellpadding="0" width="667" style= "width:6.95in;border-collapse:collapse;border:none;mso-border-alt:solid windowtext .5pt; mso-yfti-tbllook:480;mso-padding-alt:0in 5.4pt 0in 5.4pt;mso-border-insideh: .5pt solid windowtext;mso-border-insidev:.5pt solid windowtext"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="427" valign="top" style= "width:4.45in;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> June 30,     2009     </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> December 31,     2008     </td> </tr> <tr style="mso-yfti-irow:1"> <td width="427" valign="top" style= "width:4.45in;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> </tr> <tr style="mso-yfti-irow:2"> <td width="427" valign="top" style= "width:4.45in;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt">          </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt">    </td> </tr> <tr style="mso-yfti-irow:3"> <td width="427" valign="top" style= "width:4.45in;border:none;padding:0in 5.4pt 0in 5.4pt"> Floating rate notes due 2009 </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt">   $    - </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt">   $   300 </td> </tr> <tr style="mso-yfti-irow:4"> <td width="427" valign="top" style= "width:4.45in;border:none;padding:0in 5.4pt 0in 5.4pt"> Floating rate notes due 2009 </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt">       500 </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt">       500 </td> </tr> <tr style="mso-yfti-irow:5"> <td width="427" valign="top" style= "width:4.45in;border:none;padding:0in 5.4pt 0in 5.4pt"> Zero coupon bonds and money multiplier notes </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> </tr> <tr style="mso-yfti-irow:6"> <td width="427" valign="top" style= "width:4.45in;border:none;padding:0in 5.4pt 0in 5.4pt">   13.0%-14.26%, due 2009 </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt">       100 </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt">       100 </td> </tr> <tr style="mso-yfti-irow:7"> <td width="427" valign="top" style= "width:4.45in;border:none;padding:0in 5.4pt 0in 5.4pt"> Floating rate notes due 2009-2011 </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt">        - </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt">       193 </td> </tr> <tr style="mso-yfti-irow:8"> <td width="427" valign="top" style= "width:4.45in;border:none;padding:0in 5.4pt 0in 5.4pt"> 7.50% notes due 2010 </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt">     1,000 </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt">     1,000 </td> </tr> <tr style="mso-yfti-irow:9"> <td width="427" valign="top" style= "width:4.45in;border:none;padding:0in 5.4pt 0in 5.4pt"> 6-1/8% notes due 2011 </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt">       500 </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt">       500 </td> </tr> <tr style="mso-yfti-irow:10"> <td width="427" valign="top" style= "width:4.45in;border:none;padding:0in 5.4pt 0in 5.4pt"> 5.625% notes due 2012 </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt">       400 </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt">       400 </td> </tr> <tr style="mso-yfti-irow:11"> <td width="427" valign="top" style= "width:4.45in;border:none;padding:0in 5.4pt 0in 5.4pt"> 4.25% notes due 2013 3.875% notes due 2014 </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt">       600       600 </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt">       600        - </td> </tr> <tr style="mso-yfti-irow:12"> <td width="427" valign="top" style= "width:4.45in;border:none;padding:0in 5.4pt 0in 5.4pt"> 5.40% notes due 2016 </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt">       400 </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt">       400 </td> </tr> <tr style="mso-yfti-irow:13"> <td width="427" valign="top" style= "width:4.45in;border:none;padding:0in 5.4pt 0in 5.4pt"> 5.30% notes due 2017 </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt">       400 </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt">       400 </td> </tr> <tr style="mso-yfti-irow:14"> <td width="427" valign="top" style= "width:4.45in;border:none;padding:0in 5.4pt 0in 5.4pt"> 5.30% notes due 2018 5.00% notes due 2019 </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt">       900       900 </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt">       900        - </td> </tr> <tr style="mso-yfti-irow:15"> <td width="427" valign="top" style= "width:4.45in;border:none;padding:0in 5.4pt 0in 5.4pt"> Industrial development bond obligations, floating   rate maturing at various dates through 2037 </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt">          60 </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt">          60 </td> </tr> <tr style="mso-yfti-irow:16"> <td width="427" valign="top" style= "width:4.45in;border:none;padding:0in 5.4pt 0in 5.4pt"> 6-5/8% debentures due 2028 </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt">       216 </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt">       216 </td> </tr> <tr style="mso-yfti-irow:17"> <td width="427" valign="top" style= "width:4.45in;border:none;padding:0in 5.4pt 0in 5.4pt"> 9.065% debentures due 2033 </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt">        51 </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt">        51 </td> </tr> <tr style="mso-yfti-irow:18"> <td width="427" valign="top" style= "width:4.45in;border:none;padding:0in 5.4pt 0in 5.4pt"> 5.70% notes due 2036 </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt">       550 </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt">       550 </td> </tr> <tr style="mso-yfti-irow:19"> <td width="427" valign="top" style= "width:4.45in;border:none;padding:0in 5.4pt 0in 5.4pt"> 5.70% notes due 2037 </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt">       600 </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt">       600 </td> </tr> <tr style="mso-yfti-irow:20"> <td width="427" valign="top" style= "width:4.45in;border:none;padding:0in 5.4pt 0in 5.4pt"> Other (including capitalized leases), 1.54%-11.00% </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> </tr> <tr style="mso-yfti-irow:21"> <td width="427" valign="top" style= "width:4.45in;border:none;padding:0in 5.4pt 0in 5.4pt">   maturing at various dates through 2017 </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt">       101 </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt">       118 </td> </tr> <tr style="mso-yfti-irow:22"> <td width="427" valign="top" style= "width:4.45in;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt">     7,878 </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt">     6,888 </td> </tr> <tr style="mso-yfti-irow:23"> <td width="427" valign="top" style= "width:4.45in;border:none;padding:0in 5.4pt 0in 5.4pt"> Less current portion </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt">    (1,627) </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt">    (1,023) </td> </tr> <tr style="mso-yfti-irow:24;mso-yfti-lastrow:yes"> <td width="427" valign="top" style= "width:4.45in;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt">   $ 6,251 </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt">   $ 5,865 </td> </tr> </table>   The schedule of principal payments on long term debt is as follows:   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="637" style= "width:477.9pt;border-collapse:collapse;mso-yfti-tbllook:480;mso-padding-alt: 0in 5.4pt 0in 5.4pt"> <tr style= "mso-yfti-irow:0;mso-yfti-firstrow:yes;page-break-inside:avoid"> <td width="433" valign="top" style= "width:324.9pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="204" valign="top" style= "width:153.0pt;padding:0in 5.4pt 0in 5.4pt"> At June 30, 2009 </td> </tr> <tr style="mso-yfti-irow:1;page-break-inside:avoid"> <td width="433" valign="top" style= "width:324.9pt;padding:0in 5.4pt 0in 5.4pt"> 2009 </td> <td width="204" valign="top" style= "width:153.0pt;padding:0in 5.4pt 0in 5.4pt">        $   622 </td> </tr> <tr style="mso-yfti-irow:2;page-break-inside:avoid"> <td width="433" valign="top" style= "width:324.9pt;padding:0in 5.4pt 0in 5.4pt"> 2010 </td> <td width="204" valign="top" style= "width:153.0pt;padding:0in 5.4pt 0in 5.4pt">          1,018 </td> </tr> <tr style="mso-yfti-irow:3;page-break-inside:avoid"> <td width="433" valign="top" style= "width:324.9pt;padding:0in 5.4pt 0in 5.4pt"> 2011 </td> <td width="204" valign="top" style= "width:153.0pt;padding:0in 5.4pt 0in 5.4pt">            519 </td> </tr> <tr style="mso-yfti-irow:4;page-break-inside:avoid"> <td width="433" valign="top" style= "width:324.9pt;padding:0in 5.4pt 0in 5.4pt"> 2012 </td> <td width="204" valign="top" style= "width:153.0pt;padding:0in 5.4pt 0in 5.4pt">            401 </td> </tr> <tr style="mso-yfti-irow:5;page-break-inside:avoid"> <td width="433" valign="top" style= "width:324.9pt;padding:0in 5.4pt 0in 5.4pt"> 2013 </td> <td width="204" valign="top" style= "width:153.0pt;padding:0in 5.4pt 0in 5.4pt">            605 </td> </tr> <tr style="mso-yfti-irow:6;page-break-inside:avoid"> <td width="433" valign="top" style= "width:324.9pt;padding:0in 5.4pt 0in 5.4pt"> Thereafter </td> <td width="204" valign="top" style= "width:153.0pt;padding:0in 5.4pt 0in 5.4pt">          4,713 </td> </tr> <tr style="mso-yfti-irow:7;page-break-inside:avoid"> <td width="433" valign="top" style= "width:324.9pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="204" valign="top" style= "width:153.0pt;padding:0in 5.4pt 0in 5.4pt">          7,878 </td> </tr> <tr style="mso-yfti-irow:8;page-break-inside:avoid"> <td width="433" valign="top" style= "width:324.9pt;padding:0in 5.4pt 0in 5.4pt"> Less-current portion </td> <td width="204" valign="top" style= "width:153.0pt;padding:0in 5.4pt 0in 5.4pt">         (1,627) </td> </tr> <tr style= "mso-yfti-irow:9;mso-yfti-lastrow:yes;page-break-inside:avoid"> <td width="433" valign="top" style= "width:324.9pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="204" valign="top" style= "width:153.0pt;padding:0in 5.4pt 0in 5.4pt">        $ 6,251 </td> </tr> </table>     In February 2009, the Company issued $600 million 3.875% Senior Notes due 2014 and $900 million 5.00% Senior Notes due 2019 (collectively, the “2009 Senior Notes”).  The 2009 Senior Notes are senior unsecured and unsubordinated obligations of Honeywell and rank equally with all of Honeywell’s existing and future senior unsecured debt and senior to all of Honeywell’s subordinated debt.  The offering resulted in gross proceeds of $1.5 billion, offset by $12 million in discount and issuance costs.   We sell interests in designated pools of trade accounts receivables to third parties. In April 2009, we modified the terms of the trade accounts receivable program to permit the repurchase of receivables from the third parties at our discretion. This modification will provide additional flexibility in the management of the receivable portfolio and will also require the receivables in the program remain on the Company balance sheet. As a result, $500 million of program receivables were reflected as Accounts, notes and other receivables with a corresponding amount recorded as Short-term borrowings in the Consolidated Balance Sheet. As of June 30, 2009, these short-term borrowings were $300 million.  This modification also results in the program costs being recognized as Interest and other financial charges in the Consolidated Statement of Operations on a prospective basis. <style> /*<![CDATA[*/  /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-qformat:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman","serif";} /*]]>*/ </style> </div>

<div> <a name="_AUCadeaeb4ad73c4d6b9054d0631c51e614">NOTE 6.  Earnings Per Share</a>         The details of the earnings per share calculations for the three months and six months ended June 30, 2009 and 2008 are as follows:   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="649" style= "width:486.75pt;margin-left:4.65pt;border-collapse:collapse;mso-padding-alt: 0in 5.4pt 0in 5.4pt"> <tr style= "mso-yfti-irow:0;mso-yfti-firstrow:yes;height:12.75pt"> <td width="277" nowrap="nowrap" valign="bottom" style= "width:207.75pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="29" nowrap="nowrap" valign="bottom" style= "width:22.0pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="343" nowrap="nowrap" colspan="7" valign="bottom" style= "width:257.0pt;border: none;border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:12.75pt"> Three Months Ended June 30, </td> </tr> <tr style="mso-yfti-irow:1;height:12.75pt"> <td width="277" nowrap="nowrap" valign="bottom" style= "width:207.75pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="29" nowrap="nowrap" valign="bottom" style= "width:22.0pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="163" nowrap="nowrap" colspan="3" valign="bottom" style= "width:122.0pt;border: none;border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:12.75pt"> 2009 </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="164" nowrap="nowrap" colspan="3" valign="bottom" style= "width:123.2pt;border: none;border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:12.75pt"> 2008 </td> </tr> <tr style="mso-yfti-irow:2;height:12.75pt"> <td width="277" nowrap="nowrap" valign="bottom" style= "width:207.75pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="29" nowrap="nowrap" valign="bottom" style= "width:22.0pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="66" nowrap="nowrap" valign="bottom" style= "width:49.45pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="81" nowrap="nowrap" valign="bottom" style= "width:60.75pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> Assuming </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="76" nowrap="nowrap" valign="bottom" style= "width:57.3pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="72" nowrap="nowrap" valign="bottom" style= "width:54.1pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> Assuming </td> </tr> <tr style="mso-yfti-irow:3;height:12.75pt"> <td width="277" nowrap="nowrap" valign="bottom" style= "width:207.75pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="29" nowrap="nowrap" valign="bottom" style= "width:22.0pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="66" nowrap="nowrap" valign="bottom" style= "width:49.45pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:12.75pt"> Basic </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="81" nowrap="nowrap" valign="bottom" style= "width:60.75pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:12.75pt"> Dilution </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="76" nowrap="nowrap" valign="bottom" style= "width:57.3pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:12.75pt"> Basic </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="72" nowrap="nowrap" valign="bottom" style= "width:54.1pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:12.75pt"> Dilution </td> </tr> <tr style="mso-yfti-irow:4;height:12.75pt"> <td width="277" nowrap="nowrap" valign="bottom" style= "width:207.75pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> Income </td> <td width="29" nowrap="nowrap" valign="bottom" style= "width:22.0pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="66" nowrap="nowrap" valign="bottom" style= "width:49.45pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="81" nowrap="nowrap" valign="bottom" style= "width:60.75pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="76" nowrap="nowrap" valign="bottom" style= "width:57.3pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="72" nowrap="nowrap" valign="bottom" style= "width:54.1pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> </tr> <tr style="mso-yfti-irow:5;height:13.5pt"> <td width="277" nowrap="nowrap" valign="bottom" style= "width:207.75pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt"> Net income attributable to Honeywell </td> <td width="29" nowrap="nowrap" valign="bottom" style= "width:22.0pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="66" nowrap="nowrap" valign="bottom" style= "width:49.45pt;border:none; border-bottom:double windowtext 2.25pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">  $ 450   </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="81" nowrap="nowrap" valign="bottom" style= "width:60.75pt;border:none; border-bottom:double windowtext 2.25pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">  $  450   </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="76" nowrap="nowrap" valign="bottom" style= "width:57.3pt;border:none;border-bottom: double windowtext 2.25pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt">  $  723 </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="72" nowrap="nowrap" valign="bottom" style= "width:54.1pt;border:none;border-bottom: double windowtext 2.25pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt">  $  723 </td> </tr> <tr style="mso-yfti-irow:6;height:13.5pt"> <td width="277" nowrap="nowrap" valign="bottom" style= "width:207.75pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="29" nowrap="nowrap" valign="bottom" style= "width:22.0pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="66" nowrap="nowrap" valign="bottom" style= "width:49.45pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="81" nowrap="nowrap" valign="bottom" style= "width:60.75pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="76" nowrap="nowrap" valign="bottom" style= "width:57.3pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="72" nowrap="nowrap" valign="bottom" style= "width:54.1pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> </tr> <tr style="mso-yfti-irow:7;height:12.75pt"> <td width="277" nowrap="nowrap" valign="bottom" style= "width:207.75pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> Average shares </td> <td width="29" nowrap="nowrap" valign="bottom" style= "width:22.0pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="66" nowrap="nowrap" valign="bottom" style= "width:49.45pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="81" nowrap="nowrap" valign="bottom" style= "width:60.75pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="76" nowrap="nowrap" valign="bottom" style= "width:57.3pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="72" nowrap="nowrap" valign="bottom" style= "width:54.1pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> </tr> <tr style="mso-yfti-irow:8;height:14.25pt"> <td width="277" nowrap="nowrap" valign="bottom" style= "width:207.75pt;padding:0in 5.4pt 0in 5.4pt; height:14.25pt"> Average shares outstanding </td> <td width="29" nowrap="nowrap" valign="bottom" style= "width:22.0pt;padding:0in 5.4pt 0in 5.4pt; height:14.25pt">   </td> <td width="66" nowrap="nowrap" valign="bottom" style= "width:49.45pt;padding:0in 5.4pt 0in 5.4pt; height:14.25pt">   747.7    </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:14.25pt">   </td> <td width="81" nowrap="nowrap" valign="bottom" style= "width:60.75pt;padding:0in 5.4pt 0in 5.4pt; height:14.25pt">   747.7   </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:14.25pt">   </td> <td width="76" nowrap="nowrap" valign="bottom" style= "width:57.3pt;padding:0in 5.4pt 0in 5.4pt; height:14.25pt">   743.9 </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:14.25pt">   </td> <td width="72" nowrap="nowrap" valign="bottom" style= "width:54.1pt;padding:0in 5.4pt 0in 5.4pt; height:14.25pt">   743.9 </td> </tr> <tr style="mso-yfti-irow:9;height:25.5pt"> <td width="277" valign="bottom" style= "width:207.75pt;padding:0in 5.4pt 0in 5.4pt; height:25.5pt"> Dilutive securities issuable in   connection with stock plans </td> <td width="29" nowrap="nowrap" valign="bottom" style= "width:22.0pt;padding:0in 5.4pt 0in 5.4pt; height:25.5pt">   </td> <td width="66" nowrap="nowrap" valign="bottom" style= "width:49.45pt;padding:0in 5.4pt 0in 5.4pt; height:25.5pt">      - </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:25.5pt">   </td> <td width="81" nowrap="nowrap" valign="bottom" style= "width:60.75pt;padding:0in 5.4pt 0in 5.4pt; height:25.5pt">     2.4 </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:25.5pt">   </td> <td width="76" nowrap="nowrap" valign="bottom" style= "width:57.3pt;padding:0in 5.4pt 0in 5.4pt; height:25.5pt">       - </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:25.5pt">   </td> <td width="72" nowrap="nowrap" valign="bottom" style= "width:54.1pt;padding:0in 5.4pt 0in 5.4pt; height:25.5pt">     9.5 </td> </tr> <tr style="mso-yfti-irow:10;height:13.5pt"> <td width="277" nowrap="nowrap" valign="bottom" style= "width:207.75pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt"> Total average shares outstanding </td> <td width="29" nowrap="nowrap" valign="bottom" style= "width:22.0pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="66" nowrap="nowrap" valign="bottom" style= "width:49.45pt;border-top:solid windowtext 1.0pt; border-left:none;border-bottom:double windowtext 2.25pt;border-right:none; mso-border-top-alt:solid windowtext .5pt;mso-border-bottom-alt:double windowtext 2.25pt; padding:0in 5.4pt 0in 5.4pt;height:13.5pt">   747.7    </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="81" nowrap="nowrap" valign="bottom" style= "width:60.75pt;border-top:solid windowtext 1.0pt; border-left:none;border-bottom:double windowtext 2.25pt;border-right:none; mso-border-top-alt:solid windowtext .5pt;mso-border-bottom-alt:double windowtext 2.25pt; padding:0in 5.4pt 0in 5.4pt;height:13.5pt">   750.1     </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="76" nowrap="nowrap" valign="bottom" style= "width:57.3pt;border-top:solid windowtext 1.0pt; border-left:none;border-bottom:double windowtext 2.25pt;border-right:none; mso-border-top-alt:solid windowtext .5pt;mso-border-bottom-alt:double windowtext 2.25pt; padding:0in 5.4pt 0in 5.4pt;height:13.5pt">   743.9 </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="72" nowrap="nowrap" valign="bottom" style= "width:54.1pt;border-top:solid windowtext 1.0pt; border-left:none;border-bottom:double windowtext 2.25pt;border-right:none; mso-border-top-alt:solid windowtext .5pt;mso-border-bottom-alt:double windowtext 2.25pt; padding:0in 5.4pt 0in 5.4pt;height:13.5pt">   753.4 </td> </tr> <tr style="mso-yfti-irow:11;height:13.5pt"> <td width="277" nowrap="nowrap" valign="bottom" style= "width:207.75pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="29" nowrap="nowrap" valign="bottom" style= "width:22.0pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="66" nowrap="nowrap" valign="bottom" style= "width:49.45pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="81" nowrap="nowrap" valign="bottom" style= "width:60.75pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="76" nowrap="nowrap" valign="bottom" style= "width:57.3pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="72" nowrap="nowrap" valign="bottom" style= "width:54.1pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> </tr> <tr style="mso-yfti-irow:12;height:12.75pt"> <td width="277" nowrap="nowrap" valign="bottom" style= "width:207.75pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> Earnings per share of common stock </td> <td width="29" nowrap="nowrap" valign="bottom" style= "width:22.0pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="66" nowrap="nowrap" valign="bottom" style= "width:49.45pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="81" nowrap="nowrap" valign="bottom" style= "width:60.75pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="76" nowrap="nowrap" valign="bottom" style= "width:57.3pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="72" nowrap="nowrap" valign="bottom" style= "width:54.1pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> </tr> <tr style= "mso-yfti-irow:13;mso-yfti-lastrow:yes;height:13.5pt"> <td width="277" nowrap="nowrap" valign="bottom" style= "width:207.75pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt"> Net income attributable to Honeywell </td> <td width="29" nowrap="nowrap" valign="bottom" style= "width:22.0pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="66" nowrap="nowrap" valign="bottom" style= "width:49.45pt;border:none; border-bottom:double windowtext 2.25pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">  $ 0.60  </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="81" nowrap="nowrap" valign="bottom" style= "width:60.75pt;border:none; border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height: 13.5pt">  $ 0.60   </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="76" nowrap="nowrap" valign="bottom" style= "width:57.3pt;border:none;border-bottom: double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt">  $ 0.97 </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="72" nowrap="nowrap" valign="bottom" style= "width:54.1pt;border:none;border-bottom: double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt">  $ 0.96 </td> </tr> </table>     <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="649" style= "width:486.75pt;margin-left:4.65pt;border-collapse:collapse;mso-padding-alt: 0in 5.4pt 0in 5.4pt"> <tr style= "mso-yfti-irow:0;mso-yfti-firstrow:yes;height:12.75pt"> <td width="277" nowrap="nowrap" valign="bottom" style= "width:207.75pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="29" nowrap="nowrap" valign="bottom" style= "width:22.0pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="343" nowrap="nowrap" colspan="7" valign="bottom" style= "width:257.0pt;border: none;border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:12.75pt"> Six Months Ended June 30, </td> </tr> <tr style="mso-yfti-irow:1;height:12.75pt"> <td width="277" nowrap="nowrap" valign="bottom" style= "width:207.75pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="29" nowrap="nowrap" valign="bottom" style= "width:22.0pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="163" nowrap="nowrap" colspan="3" valign="bottom" style= "width:122.0pt;border: none;border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:12.75pt"> 2009 </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="164" nowrap="nowrap" colspan="3" valign="bottom" style= "width:123.2pt;border: none;border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:12.75pt"> 2008 </td> </tr> <tr style="mso-yfti-irow:2;height:12.75pt"> <td width="277" nowrap="nowrap" valign="bottom" style= "width:207.75pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="29" nowrap="nowrap" valign="bottom" style= "width:22.0pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="66" nowrap="nowrap" valign="bottom" style= "width:49.45pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="81" nowrap="nowrap" valign="bottom" style= "width:60.75pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> Assuming </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="76" nowrap="nowrap" valign="bottom" style= "width:57.3pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="72" nowrap="nowrap" valign="bottom" style= "width:54.1pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> Assuming </td> </tr> <tr style="mso-yfti-irow:3;height:12.75pt"> <td width="277" nowrap="nowrap" valign="bottom" style= "width:207.75pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="29" nowrap="nowrap" valign="bottom" style= "width:22.0pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="66" nowrap="nowrap" valign="bottom" style= "width:49.45pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:12.75pt"> Basic </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="81" nowrap="nowrap" valign="bottom" style= "width:60.75pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:12.75pt"> Dilution </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="76" nowrap="nowrap" valign="bottom" style= "width:57.3pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:12.75pt"> Basic </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="72" nowrap="nowrap" valign="bottom" style= "width:54.1pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:12.75pt"> Dilution </td> </tr> <tr style="mso-yfti-irow:4;height:12.75pt"> <td width="277" nowrap="nowrap" valign="bottom" style= "width:207.75pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> Income </td> <td width="29" nowrap="nowrap" valign="bottom" style= "width:22.0pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="66" nowrap="nowrap" valign="bottom" style= "width:49.45pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="81" nowrap="nowrap" valign="bottom" style= "width:60.75pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="76" nowrap="nowrap" valign="bottom" style= "width:57.3pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="72" nowrap="nowrap" valign="bottom" style= "width:54.1pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> </tr> <tr style="mso-yfti-irow:5;height:13.5pt"> <td width="277" nowrap="nowrap" valign="bottom" style= "width:207.75pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt"> Net income attributable to Honeywell </td> <td width="29" nowrap="nowrap" valign="bottom" style= "width:22.0pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="66" nowrap="nowrap" valign="bottom" style= "width:49.45pt;border:none; border-bottom:double windowtext 2.25pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">  $  847  </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="81" nowrap="nowrap" valign="bottom" style= "width:60.75pt;border:none; border-bottom:double windowtext 2.25pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">  $  847   </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="76" nowrap="nowrap" valign="bottom" style= "width:57.3pt;border:none;border-bottom: double windowtext 2.25pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt">  $1,366 </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="72" nowrap="nowrap" valign="bottom" style= "width:54.1pt;border:none;border-bottom: double windowtext 2.25pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt">  $1,366 </td> </tr> <tr style="mso-yfti-irow:6;height:13.5pt"> <td width="277" nowrap="nowrap" valign="bottom" style= "width:207.75pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="29" nowrap="nowrap" valign="bottom" style= "width:22.0pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="66" nowrap="nowrap" valign="bottom" style= "width:49.45pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="81" nowrap="nowrap" valign="bottom" style= "width:60.75pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="76" nowrap="nowrap" valign="bottom" style= "width:57.3pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="72" nowrap="nowrap" valign="bottom" style= "width:54.1pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> </tr> <tr style="mso-yfti-irow:7;height:12.75pt"> <td width="277" nowrap="nowrap" valign="bottom" style= "width:207.75pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> Average shares </td> <td width="29" nowrap="nowrap" valign="bottom" style= "width:22.0pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="66" nowrap="nowrap" valign="bottom" style= "width:49.45pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="81" nowrap="nowrap" valign="bottom" style= "width:60.75pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="76" nowrap="nowrap" valign="bottom" style= "width:57.3pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="72" nowrap="nowrap" valign="bottom" style= "width:54.1pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> </tr> <tr style="mso-yfti-irow:8;height:14.25pt"> <td width="277" nowrap="nowrap" valign="bottom" style= "width:207.75pt;padding:0in 5.4pt 0in 5.4pt; height:14.25pt"> Average shares outstanding </td> <td width="29" nowrap="nowrap" valign="bottom" style= "width:22.0pt;padding:0in 5.4pt 0in 5.4pt; height:14.25pt">   </td> <td width="66" nowrap="nowrap" valign="bottom" style= "width:49.45pt;padding:0in 5.4pt 0in 5.4pt; height:14.25pt">   742.7    </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:14.25pt">   </td> <td width="81" nowrap="nowrap" valign="bottom" style= "width:60.75pt;padding:0in 5.4pt 0in 5.4pt; height:14.25pt">   742.7    </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:14.25pt">   </td> <td width="76" nowrap="nowrap" valign="bottom" style= "width:57.3pt;padding:0in 5.4pt 0in 5.4pt; height:14.25pt">   743.7 </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:14.25pt">   </td> <td width="72" nowrap="nowrap" valign="bottom" style= "width:54.1pt;padding:0in 5.4pt 0in 5.4pt; height:14.25pt">   743.7 </td> </tr> <tr style="mso-yfti-irow:9;height:25.5pt"> <td width="277" valign="bottom" style= "width:207.75pt;padding:0in 5.4pt 0in 5.4pt; height:25.5pt"> Dilutive securities issuable in   connection with stock plans </td> <td width="29" nowrap="nowrap" valign="bottom" style= "width:22.0pt;padding:0in 5.4pt 0in 5.4pt; height:25.5pt">   </td> <td width="66" nowrap="nowrap" valign="bottom" style= "width:49.45pt;padding:0in 5.4pt 0in 5.4pt; height:25.5pt">      - </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:25.5pt">   </td> <td width="81" nowrap="nowrap" valign="bottom" style= "width:60.75pt;padding:0in 5.4pt 0in 5.4pt; height:25.5pt">     2.0 </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:25.5pt">   </td> <td width="76" nowrap="nowrap" valign="bottom" style= "width:57.3pt;padding:0in 5.4pt 0in 5.4pt; height:25.5pt">       - </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:25.5pt">   </td> <td width="72" nowrap="nowrap" valign="bottom" style= "width:54.1pt;padding:0in 5.4pt 0in 5.4pt; height:25.5pt">     9.4 </td> </tr> <tr style="mso-yfti-irow:10;height:13.5pt"> <td width="277" nowrap="nowrap" valign="bottom" style= "width:207.75pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt"> Total average shares outstanding </td> <td width="29" nowrap="nowrap" valign="bottom" style= "width:22.0pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="66" nowrap="nowrap" valign="bottom" style= "width:49.45pt;border-top:solid windowtext 1.0pt; border-left:none;border-bottom:double windowtext 2.25pt;border-right:none; mso-border-top-alt:solid windowtext .5pt;mso-border-bottom-alt:double windowtext 2.25pt; padding:0in 5.4pt 0in 5.4pt;height:13.5pt">   742.7    </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="81" nowrap="nowrap" valign="bottom" style= "width:60.75pt;border-top:solid windowtext 1.0pt; border-left:none;border-bottom:double windowtext 2.25pt;border-right:none; mso-border-top-alt:solid windowtext .5pt;mso-border-bottom-alt:double windowtext 2.25pt; padding:0in 5.4pt 0in 5.4pt;height:13.5pt">   744.7     </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="76" nowrap="nowrap" valign="bottom" style= "width:57.3pt;border-top:solid windowtext 1.0pt; border-left:none;border-bottom:double windowtext 2.25pt;border-right:none; mso-border-top-alt:solid windowtext .5pt;mso-border-bottom-alt:double windowtext 2.25pt; padding:0in 5.4pt 0in 5.4pt;height:13.5pt">   743.7 </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="72" nowrap="nowrap" valign="bottom" style= "width:54.1pt;border-top:solid windowtext 1.0pt; border-left:none;border-bottom:double windowtext 2.25pt;border-right:none; mso-border-top-alt:solid windowtext .5pt;mso-border-bottom-alt:double windowtext 2.25pt; padding:0in 5.4pt 0in 5.4pt;height:13.5pt">   753.1 </td> </tr> <tr style="mso-yfti-irow:11;height:13.5pt"> <td width="277" nowrap="nowrap" valign="bottom" style= "width:207.75pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="29" nowrap="nowrap" valign="bottom" style= "width:22.0pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="66" nowrap="nowrap" valign="bottom" style= "width:49.45pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="81" nowrap="nowrap" valign="bottom" style= "width:60.75pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="76" nowrap="nowrap" valign="bottom" style= "width:57.3pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="72" nowrap="nowrap" valign="bottom" style= "width:54.1pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> </tr> <tr style="mso-yfti-irow:12;height:12.75pt"> <td width="277" nowrap="nowrap" valign="bottom" style= "width:207.75pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> Earnings per share of common stock </td> <td width="29" nowrap="nowrap" valign="bottom" style= "width:22.0pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="66" nowrap="nowrap" valign="bottom" style= "width:49.45pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="81" nowrap="nowrap" valign="bottom" style= "width:60.75pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="76" nowrap="nowrap" valign="bottom" style= "width:57.3pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="72" nowrap="nowrap" valign="bottom" style= "width:54.1pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> </tr> <tr style= "mso-yfti-irow:13;mso-yfti-lastrow:yes;height:13.5pt"> <td width="277" nowrap="nowrap" valign="bottom" style= "width:207.75pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt"> Net income attributable to Honeywell </td> <td width="29" nowrap="nowrap" valign="bottom" style= "width:22.0pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="66" nowrap="nowrap" valign="bottom" style= "width:49.45pt;border:none; border-bottom:double windowtext 2.25pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">  $ 1.14  </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="81" nowrap="nowrap" valign="bottom" style= "width:60.75pt;border:none; border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height: 13.5pt">  $ 1.14   </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="76" nowrap="nowrap" valign="bottom" style= "width:57.3pt;border:none;border-bottom: double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt">  $ 1.84 </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="72" nowrap="nowrap" valign="bottom" style= "width:54.1pt;border:none;border-bottom: double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt">  $ 1.81 </td> </tr> </table>                   The diluted earnings per share calculations exclude the effect of stock options when the options’ assumed proceeds exceed the average market price of the common shares during the period.  For the three months ended June 30, 2009 and 2008, the number of stock options excluded from the computations were 45.6 and 10.3 million, respectively. For the six months ended June 30, 2009 and 2008, the number of stock options excluded from the computations were 43.4 and 8.9 million, respectively. These stock options were outstanding at the end of each of the respective periods. <style> /*<![CDATA[*/  /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-qformat:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman","serif";} /*]]>*/ </style> </div>

<div> <a name="_AUCf82ba93ccb8d49448e4a2dad0281a049">NOTE 11. Financial Instruments and Fair Value Measures</a>   Credit and Market Risk—Financial instruments, including derivatives, expose us to counterparty credit risk for nonperformance and to market risk related to changes in interest and currency exchange rates and commodity prices. We manage our exposure to counterparty credit risk through specific minimum credit standards, diversification of counterparties, and procedures to monitor concentrations of credit risk. Our counterparties in derivative transactions are substantial investment and commercial banks with significant experience using such derivative instruments. We monitor the impact of market risk on the fair value and cash flows of our derivative and other financial instruments considering reasonably possible changes in interest rates, currency exchange rates and commodity prices and restrict the use of derivative financial instruments to hedging activities.   We continually monitor the creditworthiness of our customers to which we grant credit terms in the normal course of business. The terms and conditions of our credit sales are designed to mitigate or eliminate concentrations of credit risk with any single customer. Our sales are not materially dependent on a single customer or a small group of customers.   Foreign Currency Risk Management—We conduct our business on a multinational basis in a wide variety of foreign currencies. Our exposure to market risk for changes in foreign currency exchange rates arises from international financing activities between subsidiaries, foreign currency denominated monetary assets and liabilities and transactions arising from international trade. Our objective is to preserve the economic value of non-functional currency denominated cash flows. We attempt to hedge transaction exposures with natural offsets to the fullest extent possible and, once these opportunities have been exhausted, through foreign currency exchange forward and option contracts with third parties.   We hedge monetary assets and liabilities denominated in non-functional currencies. Prior to conversion into U.S. dollars, these assets and liabilities are remeasured at spot exchange rates in effect on the balance sheet date. The effects of changes in spot rates are recognized in earnings and included in Other (Income) Expense.   We partially hedge forecasted sales and purchases, which predominantly occur in the next twelve months and are denominated in non-functional currencies, with currency forward contracts. Changes in the forecasted non-functional currency cash flows due to movements in exchange rates are substantially offset by changes in the fair value of the currency forward contracts designated as hedges. Market value gains and losses on these contracts are recognized in earnings when the hedged transaction is recognized. Open foreign currency exchange forward contracts mature predominantly in the next twelve months. At June 30, 2009, we had contracts with notional amounts of $3,622 million to exchange foreign currencies, principally the US dollar, Euro, British pound, Canadian dollar, Hong Kong dollar, Mexican peso, Swiss franc, Czech koruna, Chinese renminbi, Indian rupee and Japanese yen.   Commodity Price Risk Management—Our exposure to market risk for commodity prices can result in changes in our cost of production. We primarily mitigate our exposure to commodity price risk through the use of long-term, fixed-price contracts with our suppliers and formula price agreements with suppliers and customers. We also enter into forward commodity contracts with third parties designated as hedges of anticipated purchases of several commodities. Forward commodity contracts are marked-to-market, with the resulting gains and losses recognized in earnings when the hedged transaction is recognized. At June 30, 2009, we had contracts with notional amounts of $20 million related to forward commodity agreements, principally base metals and natural gas.   Interest Rate Risk Management—We use a combination of financial instruments, including long-term, medium-term and short-term financing, variable-rate commercial paper, and interest rate swaps to manage the interest rate mix of our total debt portfolio and related overall cost of borrowing. At June 30, 2009, interest rate swap agreements designated as fair value hedges effectively changed $600 million of fixed rate debt at a rate of 3.875 percent to LIBOR based floating debt. Our interest rate swaps mature in 2014.     Fair Value of Financial Instruments— SFAS No. 157, defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). SFAS No. 157 classifies the inputs used to measure fair value into the following hierarchy:   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "margin-left:.7in;border-collapse:collapse;mso-table-layout-alt:fixed; mso-padding-alt:0in 5.4pt 0in 5.4pt"> <tr style= "mso-yfti-irow:0;mso-yfti-firstrow:yes;height:11.75pt"> <td width="108" nowrap="nowrap" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt"> Level 1 </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt">   </td> <td width="368" nowrap="nowrap" valign="bottom" style= "width:276.2pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt"> Unadjusted quoted prices in active markets for identical assets or liabilities   </td> </tr> <tr style="mso-yfti-irow:1;height:11.75pt"> <td width="108" nowrap="nowrap" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt"> Level 2 </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt">   </td> <td width="368" nowrap="nowrap" valign="bottom" style= "width:276.2pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt"> Unadjusted quoted prices in active markets for similar assets or liabilities, or   Unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or   Inputs other than quoted prices that are observable for the asset or liability   </td> </tr> <tr style="mso-yfti-irow:2;height:11.75pt"> <td width="108" nowrap="nowrap" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt"> Level 3 </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt">   </td> <td width="368" nowrap="nowrap" valign="bottom" style= "width:276.2pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt"> Unobservable inputs for the asset or liability </td> </tr> <tr style= "mso-yfti-irow:3;mso-yfti-lastrow:yes;height:7.45pt"> <td width="108" nowrap="nowrap" valign="bottom" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt; height:7.45pt">   </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:7.45pt">   </td> <td width="368" nowrap="nowrap" valign="bottom" style= "width:276.2pt;padding:0in 5.4pt 0in 5.4pt; height:7.45pt">   </td> </tr> </table>   The Company endeavors to utilize the best available information in measuring fair value. Nonfinancial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company has determined that our financial assets and liabilities are level 2 in the fair value hierarchy. The following table sets forth the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of June 30, 2009: <div align="center"> <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "margin-left:35.1pt;border-collapse:collapse;mso-table-layout-alt:fixed; mso-padding-alt:0in 5.4pt 0in 5.4pt"> <tr style= "mso-yfti-irow:0;mso-yfti-firstrow:yes;height:25.65pt"> <td width="309" nowrap="nowrap" valign="bottom" style= "width:232.1pt;padding:0in 5.4pt 0in 5.4pt; height:25.65pt">   </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:25.65pt">   </td> <td width="98" nowrap="nowrap" valign="bottom" style= "width:73.2pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:25.65pt"> June 30, 2009 </td> <td width="99" valign="top" style= "width:74.4pt;border:none;border-bottom:solid windowtext 1.0pt; mso-border-bottom-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt; height:25.65pt">   December 31, 2008 </td> </tr> <tr style="mso-yfti-irow:1;height:11.75pt"> <td width="309" nowrap="nowrap" valign="bottom" style= "width:232.1pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt">   </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt">   </td> <td width="98" nowrap="nowrap" valign="bottom" style= "width:73.2pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt;height:11.75pt">   </td> <td width="99" valign="top" style= "width:74.4pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt;height:11.75pt">   </td> </tr> <tr style="mso-yfti-irow:2;height:11.75pt"> <td width="309" nowrap="nowrap" valign="bottom" style= "width:232.1pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt"> Assets: </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt">   </td> <td width="98" nowrap="nowrap" valign="bottom" style= "width:73.2pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt">   </td> <td width="99" valign="top" style= "width:74.4pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt">   </td> </tr> <tr style="mso-yfti-irow:3;height:11.75pt"> <td width="309" nowrap="nowrap" valign="bottom" style= "width:232.1pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt">   Foreign currency exchange contracts </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt">   </td> <td width="98" nowrap="nowrap" valign="bottom" style= "width:73.2pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt"> $45 </td> <td width="99" valign="bottom" style= "width:74.4pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt">  $7 </td> </tr> <tr style="mso-yfti-irow:4;height:11.75pt"> <td width="309" nowrap="nowrap" valign="bottom" style= "width:232.1pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt">  Available for sale investments </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt">   </td> <td width="98" nowrap="nowrap" valign="bottom" style= "width:73.2pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt">  43 </td> <td width="99" valign="bottom" style= "width:74.4pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt">  23 </td> </tr> <tr style="mso-yfti-irow:5;height:11.75pt"> <td width="309" nowrap="nowrap" valign="bottom" style= "width:232.1pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt">  Interest rate swap agreements </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt">   </td> <td width="98" nowrap="nowrap" valign="bottom" style= "width:73.2pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt">  1 </td> <td width="99" valign="top" style= "width:74.4pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt"> - </td> </tr> <tr style="mso-yfti-irow:6;height:11.75pt"> <td width="309" nowrap="nowrap" valign="bottom" style= "width:232.1pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt">  Forward commodity contracts </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt">   </td> <td width="98" nowrap="nowrap" valign="bottom" style= "width:73.2pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt">  - </td> <td width="99" valign="top" style= "width:74.4pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt"> - </td> </tr> <tr style="mso-yfti-irow:7;height:11.75pt"> <td width="309" nowrap="nowrap" valign="bottom" style= "width:232.1pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt"> Liabilities: </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt">   </td> <td width="98" nowrap="nowrap" valign="bottom" style= "width:73.2pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt">   </td> <td width="99" valign="top" style= "width:74.4pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt">   </td> </tr> <tr style="mso-yfti-irow:8;height:11.75pt"> <td width="309" nowrap="nowrap" valign="bottom" style= "width:232.1pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt">  Foreign currency exchange contracts </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt">   </td> <td width="98" nowrap="nowrap" valign="bottom" style= "width:73.2pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt"> $35 </td> <td width="99" valign="bottom" style= "width:74.4pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt"> $34 </td> </tr> <tr style="mso-yfti-irow:9;height:11.75pt"> <td width="309" nowrap="nowrap" valign="bottom" style= "width:232.1pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt">  Interest rate swap agreements </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt">   </td> <td width="98" nowrap="nowrap" valign="bottom" style= "width:73.2pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt">  3 </td> <td width="99" valign="bottom" style= "width:74.4pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt">  - </td> </tr> <tr style="mso-yfti-irow:10;height:11.75pt"> <td width="309" nowrap="nowrap" valign="bottom" style= "width:232.1pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt">  Forward commodity contracts </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt">   </td> <td width="98" nowrap="nowrap" valign="bottom" style= "width:73.2pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt">  1 </td> <td width="99" valign="bottom" style= "width:74.4pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt">  4 </td> </tr> <tr style= "mso-yfti-irow:11;mso-yfti-lastrow:yes;height:7.45pt"> <td width="309" nowrap="nowrap" valign="bottom" style= "width:232.1pt;padding:0in 5.4pt 0in 5.4pt; height:7.45pt">   </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:7.45pt">   </td> <td width="98" nowrap="nowrap" valign="bottom" style= "width:73.2pt;padding:0in 5.4pt 0in 5.4pt; height:7.45pt">   </td> <td width="99" valign="top" style= "width:74.4pt;padding:0in 5.4pt 0in 5.4pt; height:7.45pt">   </td> </tr> </table> </div> The foreign currency exchange contracts, interest rate swap agreements, and forward commodity contracts are valued using broker quotations, or market transactions in either the listed or over-the-counter markets. As such, these derivative instruments are classified within level 2. The Company also holds investments in marketable equity securities that are designated as available for sale and are valued using market transactions in over-the-counter markets. As such, these investments are classified within level 2.   The carrying value of cash and cash equivalents, trade accounts and notes receivables, payables, commercial paper and short-term borrowings contained in the Consolidated Balance Sheet approximates fair value. The following table sets forth the Company’s financial assets and liabilities that were not carried at fair value:   <div align="center"> <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="90%" style= "margin-left:.5in;border-collapse:collapse;mso-table-layout-alt:fixed; mso-yfti-tbllook:16;mso-padding-alt:0in 0in 0in 0in"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="54%" valign="bottom" style= "width:54.5%;padding:0in 0in 0in 0in">   </td> <td width="2%" valign="bottom" style= "width:2.94%;padding:0in 0in 0in 0in">   </td> <td width="1%" valign="bottom" style= "width:1.52%;padding:0in 0in 0in 0in">   </td> <td width="7%" valign="bottom" style= "width:7.78%;padding:0in 0in 0in 0in">   </td> <td width="1%" valign="bottom" style= "width:1.48%;padding:0in 0in 0in 0in">   </td> <td width="1%" valign="bottom" style= "width:1.72%;padding:0in 0in 0in 0in">   </td> <td width="6%" valign="bottom" style= "width:6.64%;padding:0in 0in 0in 0in">   </td> <td width="2%" valign="bottom" style= "width:2.5%;padding:0in 0in 0in 0in">   </td> <td width="1%" valign="bottom" style= "width:1.84%;padding:0in 0in 0in 0in">   </td> <td width="7%" valign="bottom" style= "width:7.74%;padding:0in 0in 0in 0in">   </td> <td width="1%" valign="bottom" style= "width:1.5%;padding:0in 0in 0in 0in">   </td> <td width="1%" valign="bottom" style= "width:1.72%;padding:0in 0in 0in 0in">   </td> <td width="6%" valign="bottom" style= "width:6.64%;padding:0in 0in 0in 0in">   </td> <td width="1%" valign="bottom" style= "width:1.48%;padding:0in 0in 0in 0in">   </td> </tr> <tr style="mso-yfti-irow:1"> <td width="54%" valign="bottom" style= "width:54.5%;padding:0in 0in 0in 0in">   </td> <td width="2%" valign="bottom" style= "width:2.94%;padding:0in 0in 0in 0in">   </td> <td width="19%" colspan="5" valign="bottom" style= "width:19.14%;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 0in 0in 0in"> June 30, 2009 </td> <td width="2%" valign="bottom" style= "width:2.5%;padding:0in 0in 0in 0in">   </td> <td width="19%" colspan="5" valign="bottom" style= "width:19.44%;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 0in 0in 0in"> December 31, 2008 </td> <td width="1%" valign="bottom" style= "width:1.48%;padding:0in 0in 0in 0in">   </td> </tr> <tr style="mso-yfti-irow:2"> <td width="54%" valign="bottom" style= "width:54.5%;padding:0in 0in 0in 0in">   </td> <td width="2%" valign="bottom" style= "width:2.94%;padding:0in 0in 0in 0in">   </td> <td width="9%" colspan="2" valign="bottom" style= "width:9.3%;border:none; border-bottom:solid windowtext 1.0pt;mso-border-top-alt:solid windowtext .5pt; mso-border-top-alt:solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 0in 0in 0in"> Carrying Value </td> <td width="1%" valign="bottom" style= "width:1.48%;border:none;border-top:solid windowtext 1.0pt; mso-border-top-alt:solid windowtext .5pt;padding:0in 0in 0in 0in">   </td> <td width="8%" colspan="2" valign="bottom" style= "width:8.36%;border-top:solid windowtext 1.0pt; border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none; mso-border-top-alt:solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 0in 0in 0in"> Fair Value </td> <td width="2%" valign="bottom" style= "width:2.5%;padding:0in 0in 0in 0in">   </td> <td width="9%" colspan="2" valign="bottom" style= "width:9.58%;border:none; border-bottom:solid windowtext 1.0pt;mso-border-top-alt:solid windowtext .5pt; mso-border-top-alt:solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 0in 0in 0in"> Carrying Value </td> <td width="1%" valign="bottom" style= "width:1.5%;padding:0in 0in 0in 0in">   </td> <td width="8%" colspan="2" valign="bottom" style= "width:8.36%;border-top:solid windowtext 1.0pt; border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none; mso-border-top-alt:solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 0in 0in 0in"> Fair Value </td> <td width="1%" valign="bottom" style= "width:1.48%;padding:0in 0in 0in 0in">   </td> </tr> <tr style="mso-yfti-irow:3"> <td width="54%" valign="bottom" style= "width:54.5%;padding:0in 0in 0in 0in"> Assets </td> <td width="2%" valign="bottom" style= "width:2.94%;padding:0in 0in 0in 0in">   </td> <td width="1%" valign="bottom" style= "width:1.52%;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 0in 0in 0in">   </td> <td width="7%" valign="bottom" style= "width:7.78%;border:none;border-top:solid windowtext 1.0pt; mso-border-top-alt:solid windowtext .5pt;padding:0in 0in 0in 0in">   </td> <td width="1%" valign="bottom" style= "width:1.48%;padding:0in 0in 0in 0in">   </td> <td width="1%" valign="bottom" style= "width:1.72%;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 0in 0in 0in">   </td> <td width="6%" valign="bottom" style= "width:6.64%;border:none;border-top:solid windowtext 1.0pt; mso-border-top-alt:solid windowtext .5pt;padding:0in 0in 0in 0in">   </td> <td width="2%" valign="bottom" style= "width:2.5%;padding:0in 0in 0in 0in">   </td> <td width="1%" valign="bottom" style= "width:1.84%;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 0in 0in 0in">   </td> <td width="7%" valign="bottom" style= "width:7.74%;border:none;border-top:solid windowtext 1.0pt; mso-border-top-alt:solid windowtext .5pt;padding:0in 0in 0in 0in">   </td> <td width="1%" valign="bottom" style= "width:1.5%;padding:0in 0in 0in 0in">   </td> <td width="1%" valign="bottom" style= "width:1.72%;padding:0in 0in 0in 0in">   </td> <td width="6%" valign="bottom" style= "width:6.64%;padding:0in 0in 0in 0in">   </td> <td width="1%" valign="bottom" style= "width:1.48%;padding:0in 0in 0in 0in">   </td> </tr> <tr style="mso-yfti-irow:4"> <td width="54%" valign="bottom" style= "width:54.5%;padding:0in 0in 0in 0in"> Long-term receivables </td> <td width="2%" valign="bottom" style= "width:2.94%;padding:0in 0in 0in 0in">   </td> <td width="1%" valign="bottom" style= "width:1.52%;padding:0in 0in 0in 0in"> $ </td> <td width="7%" valign="bottom" style= "width:7.78%;padding:0in 0in 0in 0in"> 318 </td> <td width="1%" valign="bottom" style= "width:1.48%;padding:0in 0in 0in 0in">   </td> <td width="1%" valign="bottom" style= "width:1.72%;padding:0in 0in 0in 0in"> $ </td> <td width="6%" valign="bottom" style= "width:6.64%;padding:0in 0in 0in 0in"> 292 </td> <td width="2%" valign="bottom" style= "width:2.5%;padding:0in 0in 0in 0in">   </td> <td width="1%" valign="bottom" style= "width:1.84%;padding:0in 0in 0in 0in"> $ </td> <td width="7%" valign="bottom" style= "width:7.74%;padding:0in 0in 0in 0in"> 517 </td> <td width="1%" valign="bottom" style= "width:1.5%;padding:0in 0in 0in 0in">   </td> <td width="1%" valign="bottom" style= "width:1.72%;padding:0in 0in 0in 0in"> $ </td> <td width="6%" valign="bottom" style= "width:6.64%;padding:0in 0in 0in 0in"> 471 </td> <td width="1%" valign="bottom" style= "width:1.48%;padding:0in 0in 0in 0in">   </td> </tr> <tr style="mso-yfti-irow:5"> <td width="54%" valign="bottom" style= "width:54.5%;padding:0in 0in 0in 0in"> Liabilities </td> <td width="2%" valign="bottom" style= "width:2.94%;padding:0in 0in 0in 0in">   </td> <td width="1%" valign="bottom" style= "width:1.52%;padding:0in 0in 0in 0in">   </td> <td width="7%" valign="bottom" style= "width:7.78%;padding:0in 0in 0in 0in">   </td> <td width="1%" valign="bottom" style= "width:1.48%;padding:0in 0in 0in 0in">   </td> <td width="1%" valign="bottom" style= "width:1.72%;padding:0in 0in 0in 0in">   </td> <td width="6%" valign="bottom" style= "width:6.64%;padding:0in 0in 0in 0in">   </td> <td width="2%" valign="bottom" style= "width:2.5%;padding:0in 0in 0in 0in">   </td> <td width="1%" valign="bottom" style= "width:1.84%;padding:0in 0in 0in 0in">   </td> <td width="7%" valign="bottom" style= "width:7.74%;padding:0in 0in 0in 0in">   </td> <td width="1%" valign="bottom" style= "width:1.5%;padding:0in 0in 0in 0in">   </td> <td width="1%" valign="bottom" style= "width:1.72%;padding:0in 0in 0in 0in">   </td> <td width="6%" valign="bottom" style= "width:6.64%;padding:0in 0in 0in 0in">   </td> <td width="1%" valign="bottom" style= "width:1.48%;padding:0in 0in 0in 0in">   </td> </tr> <tr style="mso-yfti-irow:6;mso-yfti-lastrow:yes"> <td width="54%" valign="bottom" style= "width:54.5%;padding:0in 0in 0in 0in"> Long-term debt and related current maturities </td> <td width="2%" valign="bottom" style= "width:2.94%;padding:0in 0in 0in 0in">   </td> <td width="1%" valign="bottom" style= "width:1.52%;padding:0in 0in 0in 0in"> $ </td> <td width="7%" valign="bottom" style= "width:7.78%;padding:0in 0in 0in 0in"> 7,878 </td> <td width="1%" valign="bottom" style= "width:1.48%;padding:0in 0in 0in 0in">   </td> <td width="1%" valign="bottom" style= "width:1.72%;padding:0in 0in 0in 0in"> $ </td> <td width="6%" valign="bottom" style= "width:6.64%;padding:0in 0in 0in 0in"> 8,228 </td> <td width="2%" valign="bottom" style= "width:2.5%;padding:0in 0in 0in 0in">   </td> <td width="1%" valign="bottom" style= "width:1.84%;padding:0in 0in 0in 0in"> $ </td> <td width="7%" valign="bottom" style= "width:7.74%;padding:0in 0in 0in 0in"> 6,888 </td> <td width="1%" valign="bottom" style= "width:1.5%;padding:0in 0in 0in 0in">   </td> <td width="1%" valign="bottom" style= "width:1.72%;padding:0in 0in 0in 0in"> $ </td> <td width="6%" valign="bottom" style= "width:6.64%;padding:0in 0in 0in 0in"> 7,082 </td> <td width="1%" valign="bottom" style= "width:1.48%;padding:0in 0in 0in 0in">   </td> </tr> </table> </div>   In the second quarter and first six months June 30, 2009, the Company had assets with a net book value of $27 million and $29 million, respectively, specifically property, plant and equipment and intangible assets, which were accounted for at fair value on a nonrecurring basis.  These assets were tested for impairment and based on the fair value of these assets the Company recognized losses of $7 million and $9 million, respectively, in the second quarter and first six months.  The Company has determined that the fair value measurements of these nonfinancial assets are level 3 in the fair value hierarchy.   The Company holds investments in marketable equity securities that are designated as cost method investments and available for sale securities, as appropriate. The Company considers duration of the unrealized loss position, stability of the liquidity positions and financial conditions of the investees, and the Company’s intent and ability to hold these investments for a reasonable period of time sufficient for a forecasted recovery of fair value, in determining other than temporary impairments. As a result of the other-than-temporary decline in fair value of these investments, the Company recognized an impairment charge of $62 million in the second quarter of 2009 that is included in Other (Income) Expense.   The derivatives utilized for risk management purposes as detailed above are included on the Consolidated Balance Sheet and impacted the Statement of Operations as follows:     <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="624" style= "width:6.5in;margin-left:5.4pt;border-collapse:collapse;mso-padding-alt: 0in 5.4pt 0in 5.4pt"> <tr style= "mso-yfti-irow:0;mso-yfti-firstrow:yes;height:13.5pt"> <td width="228" rowspan="2" valign="bottom" style= "width:171.0pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:13.5pt"> Designated as Hedging Instruments </td> <td width="396" nowrap="nowrap" colspan="3" valign="bottom" style= "width:297.0pt;border: none;border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:13.5pt"> Asset Derivatives </td> </tr> <tr style="mso-yfti-irow:1;height:31.5pt"> <td width="156" valign="bottom" style= "width:117.0pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-top-alt:solid windowtext .5pt;mso-border-top-alt: solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt;padding: 0in 5.4pt 0in 5.4pt;height:31.5pt"> Balance Sheet Location </td> <td width="108" nowrap="nowrap" valign="bottom" style= "width:81.0pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-top-alt:solid windowtext .5pt; mso-border-top-alt:solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:31.5pt"> June 30, 2009 Fair Value </td> <td width="132" valign="bottom" style= "width:99.0pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-top-alt:solid windowtext .5pt;mso-border-top-alt: solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt;padding: 0in 5.4pt 0in 5.4pt;height:31.5pt"> December 31, 2008 Fair Value </td> </tr> <tr style="mso-yfti-irow:2;height:13.5pt"> <td width="228" nowrap="nowrap" valign="bottom" style= "width:171.0pt;border:none; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   Foreign currency exchange contracts </td> <td width="156" nowrap="nowrap" valign="bottom" style= "width:117.0pt;border:none; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt"> Accounts, notes, and other receivables </td> <td width="108" nowrap="nowrap" valign="bottom" style= "width:81.0pt;border:none; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt"> $44 </td> <td width="132" valign="bottom" style= "width:99.0pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt"> $2 </td> </tr> <tr style="mso-yfti-irow:3;height:23.4pt"> <td width="228" nowrap="nowrap" valign="bottom" style= "width:171.0pt;padding:0in 5.4pt 0in 5.4pt; height:23.4pt"> Interest rate swap agreements </td> <td width="156" nowrap="nowrap" valign="bottom" style= "width:117.0pt;padding:0in 5.4pt 0in 5.4pt; height:23.4pt"> Other assets </td> <td width="108" nowrap="nowrap" valign="bottom" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt; height:23.4pt">  1 </td> <td width="132" valign="bottom" style= "width:99.0pt;padding:0in 5.4pt 0in 5.4pt; height:23.4pt">  - </td> </tr> <tr style="mso-yfti-irow:4;height:23.4pt"> <td width="228" nowrap="nowrap" valign="bottom" style= "width:171.0pt;padding:0in 5.4pt 0in 5.4pt; height:23.4pt"> Commodity contracts </td> <td width="156" nowrap="nowrap" valign="bottom" style= "width:117.0pt;padding:0in 5.4pt 0in 5.4pt; height:23.4pt"> Accounts, notes, and other receivables </td> <td width="108" nowrap="nowrap" valign="bottom" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt; height:23.4pt">  - </td> <td width="132" valign="bottom" style= "width:99.0pt;padding:0in 5.4pt 0in 5.4pt; height:23.4pt">  - </td> </tr> <tr style="mso-yfti-irow:5;height:13.5pt"> <td width="228" nowrap="nowrap" valign="bottom" style= "width:171.0pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="156" nowrap="nowrap" valign="bottom" style= "width:117.0pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="240" nowrap="nowrap" colspan="2" valign="bottom" style= "width:2.5in;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> </tr> <tr style="mso-yfti-irow:6;height:.4in"> <td width="228" valign="bottom" style= "width:171.0pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:.4in"> Not Designated as Hedging Instruments </td> <td width="156" nowrap="nowrap" valign="bottom" style= "width:117.0pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:.4in"> Balance Sheet Location </td> <td width="108" nowrap="nowrap" valign="bottom" style= "width:81.0pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:.4in"> June 30, 2009 Fair Value </td> <td width="132" valign="bottom" style= "width:99.0pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:.4in"> December 31, 2008 Fair Value </td> </tr> <tr style= "mso-yfti-irow:7;mso-yfti-lastrow:yes;height:24.3pt"> <td width="228" nowrap="nowrap" valign="bottom" style= "width:171.0pt;border:none; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt; height:24.3pt"> Foreign currency exchange contracts </td> <td width="156" nowrap="nowrap" valign="bottom" style= "width:117.0pt;border:none; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt; height:24.3pt"> Accounts, notes, and other receivables </td> <td width="108" nowrap="nowrap" valign="bottom" style= "width:81.0pt;border:none; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt; height:24.3pt"> $1 </td> <td width="132" valign="bottom" style= "width:99.0pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt;height:24.3pt"> $5 </td> </tr> </table>   <table class="MsoNormalTable" border="1" cellspacing="0" cellpadding="0" width="624" style= "width:6.5in;margin-left:5.4pt;border-collapse:collapse;border:none; mso-border-bottom-alt:solid windowtext .5pt;mso-padding-alt:0in 5.4pt 0in 5.4pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes;height:.25in"> <td width="228" rowspan="2" valign="bottom" style= "width:171.0pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:.25in"> Designated as Hedging Instruments </td> <td width="396" nowrap="nowrap" colspan="3" valign="bottom" style= "width:297.0pt;border: none;border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:.25in"> Liability Derivatives </td> </tr> <tr style="mso-yfti-irow:1;height:41.25pt"> <td width="156" valign="bottom" style= "width:117.0pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-top-alt:solid windowtext .5pt;mso-border-top-alt: solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt;padding: 0in 5.4pt 0in 5.4pt;height:41.25pt"> Balance Sheet Location </td> <td width="108" nowrap="nowrap" valign="bottom" style= "width:81.0pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-top-alt:solid windowtext .5pt; mso-border-top-alt:solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:41.25pt"> June 30, 2009 Fair Value </td> <td width="132" valign="bottom" style= "width:99.0pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-top-alt:solid windowtext .5pt;mso-border-top-alt: solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt;padding: 0in 5.4pt 0in 5.4pt;height:41.25pt"> December 31, 2008 Fair Value </td> </tr> <tr style="mso-yfti-irow:2;height:13.5pt"> <td width="228" nowrap="nowrap" valign="bottom" style= "width:171.0pt;border:none; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   Foreign currency exchange contracts </td> <td width="156" nowrap="nowrap" valign="bottom" style= "width:117.0pt;border:none; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt"> Accrued liabilities </td> <td width="108" nowrap="nowrap" valign="bottom" style= "width:81.0pt;border:none; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt"> $32 </td> <td width="132" valign="bottom" style= "width:99.0pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt"> $19 </td> </tr> <tr style="mso-yfti-irow:3;height:23.4pt"> <td width="228" nowrap="nowrap" valign="bottom" style= "width:171.0pt;border:none; padding:0in 5.4pt 0in 5.4pt;height:23.4pt"> Interest rate swap agreements </td> <td width="156" nowrap="nowrap" valign="bottom" style= "width:117.0pt;border:none; padding:0in 5.4pt 0in 5.4pt;height:23.4pt"> Accrued liabilities </td> <td width="108" nowrap="nowrap" valign="bottom" style= "width:81.0pt;border:none; padding:0in 5.4pt 0in 5.4pt;height:23.4pt">   3 </td> <td width="132" valign="bottom" style= "width:99.0pt;border:none;padding:0in 5.4pt 0in 5.4pt; height:23.4pt"> - </td> </tr> <tr style="mso-yfti-irow:4;height:23.4pt"> <td width="228" nowrap="nowrap" valign="bottom" style= "width:171.0pt;border:none; padding:0in 5.4pt 0in 5.4pt;height:23.4pt"> Commodity contracts </td> <td width="156" nowrap="nowrap" valign="bottom" style= "width:117.0pt;border:none; padding:0in 5.4pt 0in 5.4pt;height:23.4pt"> Accrued liabilities </td> <td width="108" nowrap="nowrap" valign="bottom" style= "width:81.0pt;border:none; padding:0in 5.4pt 0in 5.4pt;height:23.4pt">  1 </td> <td width="132" valign="bottom" style= "width:99.0pt;border:none;padding:0in 5.4pt 0in 5.4pt; height:23.4pt">  4 </td> </tr> <tr style="mso-yfti-irow:5;height:13.5pt"> <td width="228" nowrap="nowrap" valign="bottom" style= "width:171.0pt;border:none; padding:0in 5.4pt 0in 5.4pt;height:13.5pt">   </td> <td width="156" nowrap="nowrap" valign="bottom" style= "width:117.0pt;border:none; padding:0in 5.4pt 0in 5.4pt;height:13.5pt">   </td> <td width="240" nowrap="nowrap" colspan="2" valign="bottom" style= "width:2.5in;border:none; padding:0in 5.4pt 0in 5.4pt;height:13.5pt">   </td> </tr> <tr style="mso-yfti-irow:6;height:40.5pt"> <td width="228" valign="bottom" style= "width:171.0pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:40.5pt"> Not Designated as Hedging Instruments </td> <td width="156" nowrap="nowrap" valign="bottom" style= "width:117.0pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:40.5pt"> Balance Sheet Location </td> <td width="108" nowrap="nowrap" valign="bottom" style= "width:81.0pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:40.5pt"> June 30, 2009 Fair Value </td> <td width="132" valign="bottom" style= "width:99.0pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:40.5pt"> December 31, 2008 Fair Value </td> </tr> <tr style= "mso-yfti-irow:7;mso-yfti-lastrow:yes;height:13.5pt"> <td width="228" nowrap="nowrap" valign="bottom" style= "width:171.0pt;border:none; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt"> Foreign currency exchange contracts </td> <td width="156" nowrap="nowrap" valign="bottom" style= "width:117.0pt;border:none; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt"> Accrued liabilities </td> <td width="108" nowrap="nowrap" valign="bottom" style= "width:81.0pt;border:none; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt"> $3 </td> <td width="132" valign="bottom" style= "width:99.0pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt"> $14 </td> </tr> </table>     <div align="center"> <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="654" style= "width:490.6pt;margin-left:5.05pt;border-collapse:collapse;mso-padding-alt: 0in 5.4pt 0in 5.4pt"> <tr style= "mso-yfti-irow:0;mso-yfti-firstrow:yes;height:57.0pt"> <td width="110" rowspan="2" valign="bottom" style= "width:82.6pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:57.0pt"> Derivatives in Cash Flow Hedge Relationships </td> <td width="216" colspan="2" valign="bottom" style= "width:2.25in;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:57.0pt"> Gain or (Loss) Recognized in OCI (Effective Portion) </td> <td width="120" rowspan="2" valign="bottom" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt; height:57.0pt"> Location of Gain or (Loss) Reclassified from AOCI into Income (Effective Portion) </td> <td width="208" colspan="2" valign="bottom" style= "width:156.0pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:57.0pt"> Gain or (Loss) Reclassified from AOCI into Income </td> </tr> <tr style="mso-yfti-irow:1;height:12.75pt"> <td width="108" nowrap="nowrap" valign="bottom" style= "width:81.0pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-top-alt:solid windowtext .5pt; mso-border-top-alt:solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:12.75pt"> Three Months Ended June 30, 2009 </td> <td width="108" valign="bottom" style= "width:81.0pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-top-alt:solid windowtext .5pt;mso-border-top-alt: solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt;padding: 0in 5.4pt 0in 5.4pt;height:12.75pt"> Six Months Ended June 30, 2009 </td> <td width="108" valign="bottom" style= "width:81.0pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-top-alt:solid windowtext .5pt;mso-border-top-alt: solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt;padding: 0in 5.4pt 0in 5.4pt;height:12.75pt"> Three Months Ended June 30, 2009 </td> <td width="100" nowrap="nowrap" valign="bottom" style= "width:75.0pt;border-top:solid windowtext 1.0pt; border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none; mso-border-top-alt:solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:12.75pt"> Six Months Ended June 30, 2009 </td> </tr> <tr style="mso-yfti-irow:2;height:12.75pt"> <td width="110" nowrap="nowrap" rowspan="3" valign= "bottom" style= "width:82.6pt;border:none; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> Foreign currency exchange contracts </td> <td width="108" nowrap="nowrap" rowspan="3" valign= "bottom" style= "width:81.0pt;border:none; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> $33 </td> <td width="108" rowspan="3" valign="bottom" style= "width:81.0pt;border:none; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">     $9 </td> <td width="120" nowrap="nowrap" valign="bottom" style= "width:1.25in;border:none; border-top:solid windowtext 1.0pt;mso-border-top-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:12.75pt"> Product sales </td> <td width="108" valign="bottom" style= "width:81.0pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt"> $12 </td> <td width="100" nowrap="nowrap" valign="bottom" style= "width:75.0pt;border:none; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> $10 </td> </tr> <tr style="mso-yfti-irow:3;height:12.75pt"> <td width="120" nowrap="nowrap" valign="bottom" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> Cost of products sold </td> <td width="108" valign="bottom" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">  (10) </td> <td width="100" nowrap="nowrap" valign="bottom" style= "width:75.0pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">  (12) </td> </tr> <tr style="mso-yfti-irow:4;height:12.75pt"> <td width="120" nowrap="nowrap" valign="bottom" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> Sales & General Administrative Expenses </td> <td width="108" valign="bottom" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">  (2) </td> <td width="100" nowrap="nowrap" valign="bottom" style= "width:75.0pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">  (2) </td> </tr> <tr style="mso-yfti-irow:5;height:10.5pt"> <td width="110" nowrap="nowrap" valign="bottom" style= "width:82.6pt;padding:0in 5.4pt 0in 5.4pt; height:10.5pt">   </td> <td width="108" nowrap="nowrap" valign="bottom" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt; height:10.5pt">   </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt; height:10.5pt">   </td> <td width="120" nowrap="nowrap" valign="bottom" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt; height:10.5pt">   </td> <td width="108" valign="bottom" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt; height:10.5pt">   </td> <td width="100" nowrap="nowrap" valign="bottom" style= "width:75.0pt;padding:0in 5.4pt 0in 5.4pt; height:10.5pt">   </td> </tr> <tr style= "mso-yfti-irow:6;mso-yfti-lastrow:yes;height:24.3pt"> <td width="110" nowrap="nowrap" valign="bottom" style= "width:82.6pt;padding:0in 5.4pt 0in 5.4pt; height:24.3pt"> Commodity contracts </td> <td width="108" nowrap="nowrap" valign="bottom" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt; height:24.3pt"> $8 </td> <td width="108" valign="bottom" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt; height:24.3pt">   $5 </td> <td width="120" nowrap="nowrap" valign="bottom" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt; height:24.3pt"> Cost of products sold </td> <td width="108" valign="bottom" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt; height:24.3pt">  ($3) </td> <td width="100" nowrap="nowrap" valign="bottom" style= "width:75.0pt;padding:0in 5.4pt 0in 5.4pt; height:24.3pt"> ($4) </td> </tr> </table> </div>   Ineffective portions of commodity derivative instruments designated in cash flow hedge relationships were ($0.2) million and ($0.4) million, respectively, in the second quarter and first six months of 2009 and are located in cost of products sold. Foreign currency exchange contracts in cash flow hedge relationships qualify as critical matched terms hedge relationships and as a result have no ineffectiveness.   Interest rate swap agreements are designated in SFAS No. 133 as hedge relationships with gains or (losses) on the derivative recognized in Interest and other financial charges offsetting the gains and losses on the underlying debt being hedged. Gains on interest rate swap agreements recognized in earnings were $1 million in both the second quarter and six months ended June 30, 2009. These gains were fully off-set by losses on the underlying debt being hedged.   We also economically hedge our exposure to changes in foreign exchange rates principally with forward contracts. Forward contracts are marked-to-market with the resulting gains and losses similarly recognized in earnings offsetting the gains and losses on the non-functional currency denominated monetary assets and liabilities being hedged. The Company had the following derivatives utilized as economic hedges for foreign currency risk management purposes described above as of June 30, 2009: <div align="center"> <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="635" style= "width:476.4pt;margin-left:-15.75pt;border-collapse:collapse;mso-padding-alt: 0in 5.4pt 0in 5.4pt"> <tr style= "mso-yfti-irow:0;mso-yfti-firstrow:yes;height:54.75pt"> <td width="214" valign="bottom" style= "width:160.8pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:54.75pt"> Derivative Instruments Not Designated as Hedging Instruments under SFAS No. 133 </td> <td width="168" valign="bottom" style= "width:1.75in;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:54.75pt"> Location of Gain or (Loss) Recognized in Income on Derivative </td> <td width="253" colspan="2" valign="bottom" style= "width:189.6pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:54.75pt"> Gain or (Loss) Recognized in Income on Derivative </td> </tr> <tr style="mso-yfti-irow:1;height:12.75pt"> <td width="214" nowrap="nowrap" valign="bottom" style= "width:160.8pt;border:none; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="168" nowrap="nowrap" valign="bottom" style= "width:1.75in;border:none; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="132" nowrap="nowrap" valign="bottom" style= "width:99.0pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-top-alt:solid windowtext .5pt; mso-border-top-alt:solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:12.75pt"> Three Months Ended June 30, 2009 </td> <td width="121" valign="bottom" style= "width:90.6pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-top-alt:solid windowtext .5pt;mso-border-top-alt: solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt;padding: 0in 5.4pt 0in 5.4pt;height:12.75pt">   Six Months Ended June 30, 2009 </td> </tr> <tr style= "mso-yfti-irow:2;mso-yfti-lastrow:yes;height:12.75pt"> <td width="214" nowrap="nowrap" valign="bottom" style= "width:160.8pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> Foreign currency exchange contracts </td> <td width="168" nowrap="nowrap" valign="bottom" style= "width:1.75in;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> Other(income) expense </td> <td width="132" nowrap="nowrap" valign="bottom" style= "width:99.0pt;border:none; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> $(29) </td> <td width="121" valign="top" style= "width:90.6pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt">   $(68) </td> </tr> </table> </div>   <style> /*<![CDATA[*/ st1:*{behavior:url(#ieooui) }  /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-qformat:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman","serif";} /*]]>*/ </style> </div>

<div> <a name="_AUC57608b0e4fb2454c9efb9f18018a6dfd">NOTE 9.  Goodwill and Other Intangible Assets - Net</a>         The change in the carrying amount of goodwill for the six months ended June 30, 2009 by segment is as follows:   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="667" style= "width:6.95in;border-collapse:collapse;mso-yfti-tbllook:480;mso-padding-alt: 0in 5.4pt 0in 5.4pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="163" valign="top" style= "width:1.7in;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt">     Dec. 31, 2008 </td> <td width="97" valign="top" style= "width:72.5pt;padding:0in 5.4pt 0in 5.4pt">     Acquisitions </td> <td width="97" valign="top" style= "width:72.5pt;padding:0in 5.4pt 0in 5.4pt">     Divestitures </td> <td width="97" valign="top" style= "width:72.5pt;padding:0in 5.4pt 0in 5.4pt"> Currency Translation  Adjustment  </td> <td width="106" valign="top" style= "width:79.5pt;padding:0in 5.4pt 0in 5.4pt">     June, 30, 2009 </td> </tr> <tr style="mso-yfti-irow:1"> <td width="163" valign="top" style= "width:1.7in;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="97" valign="top" style= "width:72.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="97" valign="top" style= "width:72.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="97" valign="top" style= "width:72.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="106" valign="top" style= "width:79.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> </tr> <tr style="mso-yfti-irow:2"> <td width="163" valign="top" style= "width:1.7in;padding:0in 5.4pt 0in 5.4pt"> Aerospace </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt">     $ 1,882 </td> <td width="97" valign="top" style= "width:72.5pt;padding:0in 5.4pt 0in 5.4pt">    $   - </td> <td width="97" valign="top" style= "width:72.5pt;padding:0in 5.4pt 0in 5.4pt">     $  - </td> <td width="97" valign="top" style= "width:72.5pt;padding:0in 5.4pt 0in 5.4pt">      $11 </td> <td width="106" valign="top" style= "width:79.5pt;padding:0in 5.4pt 0in 5.4pt">    $ 1,893 </td> </tr> <tr style="mso-yfti-irow:3"> <td width="163" valign="top" style= "width:1.7in;padding:0in 5.4pt 0in 5.4pt"> Automation and </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="97" valign="top" style= "width:72.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="97" valign="top" style= "width:72.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="97" valign="top" style= "width:72.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="106" valign="top" style= "width:79.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> </tr> <tr style="mso-yfti-irow:4"> <td width="163" valign="top" style= "width:1.7in;padding:0in 5.4pt 0in 5.4pt">    Control Solutions </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt">       6,638 </td> <td width="97" valign="top" style= "width:72.5pt;padding:0in 5.4pt 0in 5.4pt">       24 </td> <td width="97" valign="top" style= "width:72.5pt;padding:0in 5.4pt 0in 5.4pt">        -   </td> <td width="97" valign="top" style= "width:72.5pt;padding:0in 5.4pt 0in 5.4pt">        7 </td> <td width="106" valign="top" style= "width:79.5pt;padding:0in 5.4pt 0in 5.4pt">      6,669 </td> </tr> <tr style="mso-yfti-irow:5"> <td width="163" valign="top" style= "width:1.7in;padding:0in 5.4pt 0in 5.4pt"> Specialty Materials </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt">       1,151 </td> <td width="97" valign="top" style= "width:72.5pt;padding:0in 5.4pt 0in 5.4pt">        - </td> <td width="97" valign="top" style= "width:72.5pt;padding:0in 5.4pt 0in 5.4pt">        - </td> <td width="97" valign="top" style= "width:72.5pt;padding:0in 5.4pt 0in 5.4pt">        - </td> <td width="106" valign="top" style= "width:79.5pt;padding:0in 5.4pt 0in 5.4pt">      1,151 </td> </tr> <tr style="mso-yfti-irow:6"> <td width="163" valign="top" style= "width:1.7in;padding:0in 5.4pt 0in 5.4pt"> Transportation Systems </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt">         514 </td> <td width="97" valign="top" style= "width:72.5pt;padding:0in 5.4pt 0in 5.4pt">        -  </td> <td width="97" valign="top" style= "width:72.5pt;padding:0in 5.4pt 0in 5.4pt">        -  </td> <td width="97" valign="top" style= "width:72.5pt;padding:0in 5.4pt 0in 5.4pt">        9 </td> <td width="106" valign="top" style= "width:79.5pt;padding:0in 5.4pt 0in 5.4pt">        523 </td> </tr> <tr style="mso-yfti-irow:7"> <td width="163" valign="top" style= "width:1.7in;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt">     $10,185 </td> <td width="97" valign="top" style= "width:72.5pt;padding:0in 5.4pt 0in 5.4pt">    $  24       </td> <td width="97" valign="top" style= "width:72.5pt;padding:0in 5.4pt 0in 5.4pt">     $  -     </td> <td width="97" valign="top" style= "width:72.5pt;padding:0in 5.4pt 0in 5.4pt">      $27 </td> <td width="106" valign="top" style= "width:79.5pt;padding:0in 5.4pt 0in 5.4pt">    $10,236 </td> </tr> <tr style="mso-yfti-irow:8;mso-yfti-lastrow:yes"> <td width="163" valign="top" style= "width:1.7in;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="97" valign="top" style= "width:72.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="97" valign="top" style= "width:72.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="97" valign="top" style= "width:72.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="106" valign="top" style= "width:79.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> </tr> </table>   Other intangible assets are comprised of:   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="679" style= "width:509.4pt;border-collapse:collapse;mso-yfti-tbllook:480;mso-padding-alt: 0in 5.4pt 0in 5.4pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="187" valign="top" style= "width:1.95in;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="240" colspan="3" valign="top" style= "width:2.5in;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt"> June 30, 2009 </td> <td width="17" valign="top" style= "width:12.7pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="235" colspan="3" valign="top" style= "width:176.3pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt"> December 31, 2008 </td> </tr> <tr style="mso-yfti-irow:1"> <td width="187" valign="top" style= "width:1.95in;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="72" valign="top" style= "width:.75in;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> Gross Carrying  Amount  </td> <td width="96" valign="top" style= "width:1.0in;border:none;border-top:solid windowtext 1.0pt; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt">   Accumulated Amortization </td> <td width="72" valign="top" style= "width:.75in;border:none;border-top:solid windowtext 1.0pt; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> Net Carrying  Amount  </td> <td width="17" valign="top" style= "width:12.7pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="67" valign="top" style= "width:50.3pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> Gross Carrying  Amount  </td> <td width="96" valign="top" style= "width:1.0in;border:none;border-top:solid windowtext 1.0pt; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt">   Accumulated Amortization </td> <td width="72" valign="top" style= "width:.75in;border:none;border-top:solid windowtext 1.0pt; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> Net Carrying  Amount  </td> </tr> <tr style="mso-yfti-irow:2"> <td width="187" valign="top" style= "width:1.95in;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="17" valign="top" style= "width:12.7pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="67" valign="top" style= "width:50.3pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt">   </td> </tr> <tr style="mso-yfti-irow:3"> <td width="187" valign="top" style= "width:1.95in;padding:0in 5.4pt 0in 5.4pt"> Intangible assets with   determinable lives: </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="17" valign="top" style= "width:12.7pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="67" valign="top" style= "width:50.3pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt">   </td> </tr> <tr style="mso-yfti-irow:4"> <td width="187" valign="top" style= "width:1.95in;padding:0in 5.4pt 0in 5.4pt">   Patents and technology </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt">  $1,030 </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">  $  (542) </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt">  $  488 </td> <td width="17" valign="top" style= "width:12.7pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="67" valign="top" style= "width:50.3pt;padding:0in 5.4pt 0in 5.4pt">  $1,030 </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">  $  (494) </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt">   $  536 </td> </tr> <tr style="mso-yfti-irow:5"> <td width="187" valign="top" style= "width:1.95in;padding:0in 5.4pt 0in 5.4pt">   Customer relationships </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt">   1,260 </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">     (231) </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt">   1,029 </td> <td width="17" valign="top" style= "width:12.7pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="67" valign="top" style= "width:50.3pt;padding:0in 5.4pt 0in 5.4pt">   1,250 </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">     (175) </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt">    1,075 </td> </tr> <tr style="mso-yfti-irow:6"> <td width="187" valign="top" style= "width:1.95in;padding:0in 5.4pt 0in 5.4pt">   Trademarks </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt">     167 </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">      (60) </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt">     107 </td> <td width="17" valign="top" style= "width:12.7pt;padding:0in 5.4pt 0in 5.4pt">     </td> <td width="67" valign="top" style= "width:50.3pt;padding:0in 5.4pt 0in 5.4pt">     164 </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">      (50) </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt">      114 </td> </tr> <tr style="mso-yfti-irow:7"> <td width="187" valign="top" style= "width:1.95in;padding:0in 5.4pt 0in 5.4pt">   Other </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt">     501 </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">     (380) </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt">     121 </td> <td width="17" valign="top" style= "width:12.7pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="67" valign="top" style= "width:50.3pt;padding:0in 5.4pt 0in 5.4pt">     501 </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">     (362) </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt">      139 </td> </tr> <tr style="mso-yfti-irow:8"> <td width="187" valign="top" style= "width:1.95in;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt">   2,958 </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">   (1,213) </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt">   1,745 </td> <td width="17" valign="top" style= "width:12.7pt;padding:0in 5.4pt 0in 5.4pt">    </td> <td width="67" valign="top" style= "width:50.3pt;padding:0in 5.4pt 0in 5.4pt">   2,945 </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">   (1,081) </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt">    1,864 </td> </tr> <tr style="mso-yfti-irow:9"> <td width="187" valign="top" style= "width:1.95in;padding:0in 5.4pt 0in 5.4pt"> Trademarks with indefinite   lives </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt">       396 </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">          - </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt">       396 </td> <td width="17" valign="top" style= "width:12.7pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="67" valign="top" style= "width:50.3pt;padding:0in 5.4pt 0in 5.4pt">       403 </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">          - </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt">        403 </td> </tr> <tr style="mso-yfti-irow:10;mso-yfti-lastrow:yes"> <td width="187" valign="top" style= "width:1.95in;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt">  $3,354 </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">  $(1,213) </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt">  $2,141 </td> <td width="17" valign="top" style= "width:12.7pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="67" valign="top" style= "width:50.3pt;padding:0in 5.4pt 0in 5.4pt">  $3,348 </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">  $(1,081) </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt">   $2,267 </td> </tr> </table>           Amortization expense related to intangible assets for the six months ended June 30, 2009 and 2008 was $125 and $103 million, respectively.          We completed our annual impairment testing of goodwill and indefinite-lived intangibles as of March 31, 2009 and determined that there was no impairment as of that date. <style> /*<![CDATA[*/  /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-qformat:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman","serif";} /*]]>*/ </style> </div>

<div> <a name="_AUC209ff5f0058d4318a78ae09c3a62a9bc">NOTE 8.  Inventories</a>   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="631" style= "width:473.4pt;border-collapse:collapse;mso-yfti-tbllook:480;mso-padding-alt: 0in 5.4pt 0in 5.4pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="67" valign="top" style= "width:.7in;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="324" valign="top" style= "width:243.0pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt"> June 30,     2009     </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt"> December 31,     2008     </td> </tr> <tr style="mso-yfti-irow:1"> <td width="67" valign="top" style= "width:.7in;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="324" valign="top" style= "width:243.0pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt">   </td> </tr> <tr style="mso-yfti-irow:2"> <td width="67" valign="top" style= "width:.7in;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="324" valign="top" style= "width:243.0pt;padding:0in 5.4pt 0in 5.4pt"> Raw materials </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt">    $1,383 </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt">    $1,644 </td> </tr> <tr style="mso-yfti-irow:3"> <td width="67" valign="top" style= "width:.7in;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="324" valign="top" style= "width:243.0pt;padding:0in 5.4pt 0in 5.4pt"> Work in process </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt">       811 </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt">       952 </td> </tr> <tr style="mso-yfti-irow:4"> <td width="67" valign="top" style= "width:.7in;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="324" valign="top" style= "width:243.0pt;padding:0in 5.4pt 0in 5.4pt"> Finished products </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt">     1,568 </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt">     1,415 </td> </tr> <tr style="mso-yfti-irow:5"> <td width="67" valign="top" style= "width:.7in;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="324" valign="top" style= "width:243.0pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt">     3,762 </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt">     4,011 </td> </tr> <tr style="mso-yfti-irow:6"> <td width="67" valign="top" style= "width:.7in;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="324" valign="top" style= "width:243.0pt;padding:0in 5.4pt 0in 5.4pt"> Less – Progress payments </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt">        (2) </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt">        (3) </td> </tr> <tr style="mso-yfti-irow:7"> <td width="67" valign="top" style= "width:.7in;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="324" valign="top" style= "width:243.0pt;padding:0in 5.4pt 0in 5.4pt">      - Reduction to LIFO cost basis </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt">      (167) </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt">      (160) </td> </tr> <tr style="mso-yfti-irow:8;mso-yfti-lastrow:yes"> <td width="67" valign="top" style= "width:.7in;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="324" valign="top" style= "width:243.0pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt">    $3,593 </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt">    $3,848 </td> </tr> </table>   During the three and six months ended June 30, 2009, the quantity of inventory valued using the last-in, first-out (LIFO) method in our Specialty Materials segment declined.  This reduction resulted in a liquidation of LIFO inventory quantities carried at lower of costs prevailing in prior years as compared with the cost of 2009 purchases, the effect of which decreased cost of products sold by $4 million during the second quarter of 2009. <style> /*<![CDATA[*/  /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-qformat:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman","serif";} /*]]>*/ </style> </div>

<div> <h4 style="margin-left:0in"> <a name="_AUC18f5b3d3c2c34928afaa6e7f60cc5bbd"> NOTE 7.  Accounts, Notes and Other Receivables</a> </h4>   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="631" style= "width:473.4pt;border-collapse:collapse;mso-yfti-tbllook:480;mso-padding-alt: 0in 5.4pt 0in 5.4pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="67" valign="top" style= "width:.7in;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="324" valign="top" style= "width:243.0pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt"> June 30,     2009     </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt"> December 31,     2008     </td> </tr> <tr style="mso-yfti-irow:1"> <td width="67" valign="top" style= "width:.7in;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="324" valign="top" style= "width:243.0pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt">   </td> </tr> <tr style="mso-yfti-irow:2"> <td width="67" valign="top" style= "width:.7in;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="324" valign="top" style= "width:243.0pt;padding:0in 5.4pt 0in 5.4pt"> Trade </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt">    $6,049 </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt">    $5,893 </td> </tr> <tr style="mso-yfti-irow:3"> <td width="67" valign="top" style= "width:.7in;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="324" valign="top" style= "width:243.0pt;padding:0in 5.4pt 0in 5.4pt"> Other </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt">       454 </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt">       422 </td> </tr> <tr style="mso-yfti-irow:4"> <td width="67" valign="top" style= "width:.7in;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="324" valign="top" style= "width:243.0pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt">     6,503 </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt">     6,315 </td> </tr> <tr style="mso-yfti-irow:5"> <td width="67" valign="top" style= "width:.7in;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="324" valign="top" style= "width:243.0pt;padding:0in 5.4pt 0in 5.4pt"> Less - Allowance for doubtful accounts </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt">      (218) </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt">      (186) </td> </tr> <tr style="mso-yfti-irow:6;mso-yfti-lastrow:yes"> <td width="67" valign="top" style= "width:.7in;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="324" valign="top" style= "width:243.0pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt">    $6,285 </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt">    $6,129 </td> </tr> </table>   <style> /*<![CDATA[*/  /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-qformat:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman","serif";} /*]]>*/ </style> </div>

<div> <a name="_AUCee9221f37c1b4b4298bb12b8d4f5f986">NOTE 1.  Basis of Presentation</a>         In the opinion of management, the accompanying unaudited consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, necessary to present fairly the financial position of Honeywell International Inc. and its consolidated subsidiaries at June 30, 2009 and the results of operations for the three and six months ended June 30, 2009 and 2008 and cash flows for the six months ended June 30, 2009 and 2008.  The results of operations for the three and six month periods ended June 30, 2009 should not necessarily be taken as indicative of the results of operations that may be expected for the entire year.         We report our quarterly financial information using a calendar convention; that is, the first, second and third quarters are consistently reported as ending on March 31, June 30 and September 30, respectively. It has been our practice to establish actual quarterly closing dates using a predetermined “fiscal” calendar, which requires our businesses to close their books on a Saturday in order to minimize the potentially disruptive effects of quarterly closing on our business processes. The effects of this practice are generally not significant to reported results for any quarter and only exist within a reporting year. In the event that differences in actual closing dates are material to year-over-year comparisons of quarterly or year-to-date results, we provide appropriate disclosures. Our actual closing dates for the three and six month periods ended June 30, 2009 and 2008 were July 4, 2009 and June 28, 2008, respectively.         The financial information as of June 30, 2009 should be read in conjunction with the financial statements for the year ended December 31, 2008 contained in our Form 10-K filed on February 13, 2009.         Certain prior year amounts have been reclassified to conform to current year presentation. <style> /*<![CDATA[*/  /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-qformat:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman","serif";} /*]]>*/ </style> </div>

<div> <a name="_AUCd2feadf723ab4b989fde50d0fe4c5bfe">NOTE 5. Other (income) expense.</a>   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="631" style= "width:473.4pt;border-collapse:collapse;mso-yfti-tbllook:480;mso-padding-alt: 0in 5.4pt 0in 5.4pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="41" valign="top" style= "width:30.6pt;padding:0in 5.4pt 0in 5.4pt"> </td> <td width="240" valign="top" style= "width:180.1pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="164" colspan="2" valign="top" style= "width:123.2pt;padding:0in 5.4pt 0in 5.4pt"> Three Months Ended </td> <td width="18" valign="top" style= "width:13.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="168" colspan="2" valign="top" style= "width:1.75in;padding:0in 5.4pt 0in 5.4pt"> Six Months Ended </td> </tr> <tr style="mso-yfti-irow:1"> <td width="41" valign="top" style= "width:30.6pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="240" valign="top" style= "width:180.1pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="164" colspan="2" valign="top" style= "width:123.2pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt">     June 30,     </td> <td width="18" valign="top" style= "width:13.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="168" colspan="2" valign="top" style= "width:1.75in;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt">     June 30,     </td> </tr> <tr style="mso-yfti-irow:2"> <td width="41" valign="top" style= "width:30.6pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="240" valign="top" style= "width:180.1pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="81" valign="top" style= "width:60.75pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> 2009 </td> <td width="83" valign="top" style= "width:62.45pt;border:none;border-top:solid windowtext 1.0pt; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> 2008 </td> <td width="18" valign="top" style= "width:13.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="76" valign="top" style= "width:56.75pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> 2009 </td> <td width="92" valign="top" style= "width:69.25pt;border:none;border-top:solid windowtext 1.0pt; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> 2008 </td> </tr> <tr style="mso-yfti-irow:3"> <td width="41" valign="top" style= "width:30.6pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="240" valign="top" style= "width:180.1pt;padding:0in 5.4pt 0in 5.4pt"> Equity (income)/loss of   affiliated companies </td> <td width="81" valign="top" style= "width:60.75pt;padding:0in 5.4pt 0in 5.4pt">     $  (9) </td> <td width="83" valign="top" style= "width:62.45pt;padding:0in 5.4pt 0in 5.4pt">     $  (6) </td> <td width="18" valign="top" style= "width:13.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="76" valign="top" style= "width:56.75pt;padding:0in 5.4pt 0in 5.4pt">     $ (15) </td> <td width="92" valign="top" style= "width:69.25pt;padding:0in 5.4pt 0in 5.4pt">      $(22) </td> </tr> <tr style="mso-yfti-irow:4"> <td width="41" valign="top" style= "width:30.6pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="240" valign="top" style= "width:180.1pt;padding:0in 5.4pt 0in 5.4pt"> Gain on sale of non-strategic   Businesses and assets </td> <td width="81" valign="top" style= "width:60.75pt;padding:0in 5.4pt 0in 5.4pt">         -  </td> <td width="83" valign="top" style= "width:62.45pt;padding:0in 5.4pt 0in 5.4pt">       (12) </td> <td width="18" valign="top" style= "width:13.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="76" valign="top" style= "width:56.75pt;padding:0in 5.4pt 0in 5.4pt">        - </td> <td width="92" valign="top" style= "width:69.25pt;padding:0in 5.4pt 0in 5.4pt">       (12) </td> </tr> <tr style="mso-yfti-irow:5"> <td width="41" valign="top" style= "width:30.6pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="240" valign="top" style= "width:180.1pt;padding:0in 5.4pt 0in 5.4pt"> Interest income </td> <td width="81" valign="bottom" style= "width:60.75pt;padding:0in 5.4pt 0in 5.4pt">      (6) </td> <td width="83" valign="bottom" style= "width:62.45pt;padding:0in 5.4pt 0in 5.4pt">     (29) </td> <td width="18" valign="top" style= "width:13.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="76" valign="bottom" style= "width:56.75pt;padding:0in 5.4pt 0in 5.4pt">     (18) </td> <td width="92" valign="bottom" style= "width:69.25pt;padding:0in 5.4pt 0in 5.4pt">     (54) </td> </tr> <tr style="mso-yfti-irow:6"> <td width="41" valign="top" style= "width:30.6pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="240" valign="top" style= "width:180.1pt;padding:0in 5.4pt 0in 5.4pt"> Foreign exchange </td> <td width="81" valign="bottom" style= "width:60.75pt;padding:0in 5.4pt 0in 5.4pt">       5 </td> <td width="83" valign="bottom" style= "width:62.45pt;padding:0in 5.4pt 0in 5.4pt">       3 </td> <td width="18" valign="top" style= "width:13.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="76" valign="bottom" style= "width:56.75pt;padding:0in 5.4pt 0in 5.4pt">      27 </td> <td width="92" valign="bottom" style= "width:69.25pt;padding:0in 5.4pt 0in 5.4pt">      14 </td> </tr> <tr style="mso-yfti-irow:7"> <td width="41" valign="top" style= "width:30.6pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="240" valign="top" style= "width:180.1pt;padding:0in 5.4pt 0in 5.4pt"> Other (net) </td> <td width="81" valign="bottom" style= "width:60.75pt;padding:0in 5.4pt 0in 5.4pt">      61 </td> <td width="83" valign="bottom" style= "width:62.45pt;padding:0in 5.4pt 0in 5.4pt">       1 </td> <td width="18" valign="top" style= "width:13.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="76" valign="bottom" style= "width:56.75pt;padding:0in 5.4pt 0in 5.4pt">      59 </td> <td width="92" valign="bottom" style= "width:69.25pt;padding:0in 5.4pt 0in 5.4pt">       5 </td> </tr> <tr style= "mso-yfti-irow:8;mso-yfti-lastrow:yes;height:17.55pt"> <td width="41" valign="top" style= "width:30.6pt;padding:0in 5.4pt 0in 5.4pt; height:17.55pt">   </td> <td width="240" valign="top" style= "width:180.1pt;padding:0in 5.4pt 0in 5.4pt; height:17.55pt">   </td> <td width="81" style= "width:60.75pt;padding:0in 5.4pt 0in 5.4pt;height:17.55pt">   $  51 </td> <td width="83" style= "width:62.45pt;padding:0in 5.4pt 0in 5.4pt;height:17.55pt">    $(43) </td> <td width="18" valign="top" style= "width:13.5pt;padding:0in 5.4pt 0in 5.4pt; height:17.55pt">   </td> <td width="76" style= "width:56.75pt;padding:0in 5.4pt 0in 5.4pt;height:17.55pt">   $   53 </td> <td width="92" style= "width:69.25pt;padding:0in 5.4pt 0in 5.4pt;height:17.55pt">    $(69) </td> </tr> </table>     Other (net) includes an other-than-temporary impairment charge of $62 million recognized in the second quarter of 2009. See Note 11 for further details. <style> /*<![CDATA[*/  /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-qformat:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman","serif";} /*]]>*/ </style> </div>

<div> <a name="_AUC733f648a27164947b61fd3f877997736">NOTE 14. Pension and Other Postretirement Benefits</a>         Net periodic pension and other postretirement benefits costs for our significant defined benefit plans include the following components:   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="679" style= "border-collapse:collapse;mso-table-layout-alt:fixed;mso-yfti-tbllook: 480;mso-padding-alt:0in 5.4pt 0in 5.4pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="319" valign="top" style= "width:239.4pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="180" colspan="3" valign="top" style= "width:135.0pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt"> Three Months Ended   June 30,    </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="164" colspan="2" valign="top" style= "width:123.2pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt"> Six Months Ended   June 30,    </td> </tr> <tr style="mso-yfti-irow:1"> <td width="319" valign="top" style= "width:239.4pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="84" valign="top" style= "width:63.0pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt">  2009  </td> <td width="96" colspan="2" valign="top" style= "width:1.0in;border:none;border-top: solid windowtext 1.0pt;mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt">   2008  </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="77" valign="top" style= "width:57.4pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt">  2009  </td> <td width="88" valign="top" style= "width:65.8pt;border:none;border-top:solid windowtext 1.0pt; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt">   2008  </td> </tr> <tr style="mso-yfti-irow:2"> <td width="319" valign="top" style= "width:239.4pt;padding:0in 5.4pt 0in 5.4pt"> Pension Benefits </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="96" colspan="2" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="77" valign="top" style= "width:57.4pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="88" valign="top" style= "width:65.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> </tr> <tr style="mso-yfti-irow:3"> <td width="319" valign="top" style= "width:239.4pt;padding:0in 5.4pt 0in 5.4pt"> Service cost </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt">  $  54 </td> <td width="96" colspan="2" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">  $  67 </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="77" valign="top" style= "width:57.4pt;padding:0in 5.4pt 0in 5.4pt">  $ 111 </td> <td width="88" valign="top" style= "width:65.8pt;padding:0in 5.4pt 0in 5.4pt">  $ 134 </td> </tr> <tr style="mso-yfti-irow:4"> <td width="319" valign="top" style= "width:239.4pt;padding:0in 5.4pt 0in 5.4pt"> Interest cost </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt">    250 </td> <td width="96" colspan="2" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">    262 </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="77" valign="top" style= "width:57.4pt;padding:0in 5.4pt 0in 5.4pt">    492 </td> <td width="88" valign="top" style= "width:65.8pt;padding:0in 5.4pt 0in 5.4pt">    524 </td> </tr> <tr style="mso-yfti-irow:5"> <td width="319" valign="top" style= "width:239.4pt;padding:0in 5.4pt 0in 5.4pt"> Expected return on plan assets </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt">   (333) </td> <td width="96" colspan="2" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">   (364) </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">    </td> <td width="77" valign="top" style= "width:57.4pt;padding:0in 5.4pt 0in 5.4pt">   (654) </td> <td width="88" valign="top" style= "width:65.8pt;padding:0in 5.4pt 0in 5.4pt">   (727) </td> </tr> <tr style="mso-yfti-irow:6"> <td width="319" valign="top" style= "width:239.4pt;padding:0in 5.4pt 0in 5.4pt"> Amortization of prior service cost </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt">      5 </td> <td width="96" colspan="2" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">      7 </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">    </td> <td width="77" valign="top" style= "width:57.4pt;padding:0in 5.4pt 0in 5.4pt">     12 </td> <td width="88" valign="top" style= "width:65.8pt;padding:0in 5.4pt 0in 5.4pt">     14 </td> </tr> <tr style="mso-yfti-irow:7"> <td width="319" valign="top" style= "width:239.4pt;padding:0in 5.4pt 0in 5.4pt"> Recognition of actuarial losses </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt">     45 </td> <td width="96" colspan="2" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">     12 </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">    </td> <td width="77" valign="top" style= "width:57.4pt;padding:0in 5.4pt 0in 5.4pt">     81 </td> <td width="88" valign="top" style= "width:65.8pt;padding:0in 5.4pt 0in 5.4pt">     24 </td> </tr> <tr style="mso-yfti-irow:8"> <td width="319" valign="top" style= "width:239.4pt;padding:0in 5.4pt 0in 5.4pt"> Settlements and curtailments </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt">      - </td> <td width="96" colspan="2" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">      - </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="77" valign="top" style= "width:57.4pt;padding:0in 5.4pt 0in 5.4pt">      - </td> <td width="88" valign="top" style= "width:65.8pt;padding:0in 5.4pt 0in 5.4pt">      2 </td> </tr> <tr style="mso-yfti-irow:9"> <td width="319" valign="top" style= "width:239.4pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt">  $  21 </td> <td width="96" colspan="2" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">  $ (16) </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="77" valign="top" style= "width:57.4pt;padding:0in 5.4pt 0in 5.4pt">  $  42 </td> <td width="88" valign="top" style= "width:65.8pt;padding:0in 5.4pt 0in 5.4pt">  $ (29) </td> </tr> <tr style="mso-yfti-irow:10"> <td width="319" valign="top" style= "width:239.4pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="96" colspan="2" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="77" valign="top" style= "width:57.4pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="88" valign="top" style= "width:65.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> </tr> <tr style="mso-yfti-irow:11"> <td width="319" valign="top" style= "width:239.4pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="96" colspan="2" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="77" valign="top" style= "width:57.4pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="88" valign="top" style= "width:65.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> </tr> <tr style="mso-yfti-irow:12"> <td width="319" valign="top" style= "width:239.4pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="180" colspan="3" valign="top" style= "width:135.0pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt"> Three Months Ended   June 30,    </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="164" colspan="2" valign="top" style= "width:123.2pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt"> Six Months Ended   June 30,    </td> </tr> <tr style="mso-yfti-irow:13"> <td width="319" valign="top" style= "width:239.4pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="96" colspan="2" valign="top" style= "width:1.0in;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> 2009  </td> <td width="84" valign="top" style= "width:63.0pt;border:none;border-top:solid windowtext 1.0pt; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt">   2008  </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="77" valign="top" style= "width:57.4pt;padding:0in 5.4pt 0in 5.4pt"> 2009  </td> <td width="88" valign="top" style= "width:65.8pt;padding:0in 5.4pt 0in 5.4pt">   2008  </td> </tr> <tr style="mso-yfti-irow:14"> <td width="319" valign="top" style= "width:239.4pt;padding:0in 5.4pt 0in 5.4pt"> Other Postretirement Benefits </td> <td width="96" colspan="2" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="77" valign="top" style= "width:57.4pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="88" valign="top" style= "width:65.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> </tr> <tr style="mso-yfti-irow:15"> <td width="319" valign="top" style= "width:239.4pt;padding:0in 5.4pt 0in 5.4pt"> Service cost </td> <td width="96" colspan="2" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">  $   - </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> $   4 </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="77" valign="top" style= "width:57.4pt;padding:0in 5.4pt 0in 5.4pt">  $   3 </td> <td width="88" valign="top" style= "width:65.8pt;padding:0in 5.4pt 0in 5.4pt"> $   7 </td> </tr> <tr style="mso-yfti-irow:16"> <td width="319" valign="top" style= "width:239.4pt;padding:0in 5.4pt 0in 5.4pt"> Interest cost </td> <td width="96" colspan="2" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">     23 </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt">    33 </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="77" valign="top" style= "width:57.4pt;padding:0in 5.4pt 0in 5.4pt">     52 </td> <td width="88" valign="top" style= "width:65.8pt;padding:0in 5.4pt 0in 5.4pt">    66 </td> </tr> <tr style="mso-yfti-irow:17"> <td width="319" valign="top" style= "width:239.4pt;padding:0in 5.4pt 0in 5.4pt"> Amortization of prior service (credit) </td> <td width="96" colspan="2" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">    (12) </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt">   (10) </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="77" valign="top" style= "width:57.4pt;padding:0in 5.4pt 0in 5.4pt">    (22) </td> <td width="88" valign="top" style= "width:65.8pt;padding:0in 5.4pt 0in 5.4pt">   (20) </td> </tr> <tr style="mso-yfti-irow:18"> <td width="319" valign="top" style= "width:239.4pt;padding:0in 5.4pt 0in 5.4pt"> Recognition of actuarial losses </td> <td width="96" colspan="2" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">     (1) </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt">     8 </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="77" valign="top" style= "width:57.4pt;padding:0in 5.4pt 0in 5.4pt">      7 </td> <td width="88" valign="top" style= "width:65.8pt;padding:0in 5.4pt 0in 5.4pt">    17 </td> </tr> <tr style="mso-yfti-irow:19;height:4.0pt"> <td width="319" valign="top" style= "width:239.4pt;padding:0in 5.4pt 0in 5.4pt; height:4.0pt"> Settlements and curtailments </td> <td width="96" colspan="2" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt; height:4.0pt">    (98) </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt; height:4.0pt">     - </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:4.0pt">   </td> <td width="77" valign="top" style= "width:57.4pt;padding:0in 5.4pt 0in 5.4pt; height:4.0pt">    (98) </td> <td width="88" valign="top" style= "width:65.8pt;padding:0in 5.4pt 0in 5.4pt; height:4.0pt">     - </td> </tr> <tr style= "mso-yfti-irow:20;mso-yfti-lastrow:yes;height:4.0pt"> <td width="319" valign="top" style= "width:239.4pt;padding:0in 5.4pt 0in 5.4pt; height:4.0pt">   </td> <td width="96" colspan="2" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt; height:4.0pt">  $ (88) </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt; height:4.0pt"> $  35 </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:4.0pt">   </td> <td width="77" valign="top" style= "width:57.4pt;padding:0in 5.4pt 0in 5.4pt; height:4.0pt">  $ (58) </td> <td width="88" valign="top" style= "width:65.8pt;padding:0in 5.4pt 0in 5.4pt; height:4.0pt"> $  70 </td> </tr><![if !supportMisalignedColumns]> <tr height="0"> <td width="319" style="border:none"></td> <td width="84" style="border:none"></td> <td width="12" style="border:none"></td> <td width="84" style="border:none"></td> <td width="16" style="border:none"></td> <td width="77" style="border:none"></td> <td width="88" style="border:none"></td> </tr><![endif]> </table>   In both March 2009 and June 2009 we made $200 million voluntary contributions of Honeywell common stock to our U.S. pension plans to improve the funded status of our plans.   On May 1, 2009, Honeywell amended the U.S. retiree medical plan eliminating the subsidy for non-union employees who retire after September 1, 2009.  Employees already retired or who retire on or before September 1, 2009 will not be affected by this change. This plan amendment reduced the accumulated postretirement benefit obligation by $180 million representing the elimination of benefits attributable to years of service already rendered by active non-union employees who are not eligible to retire and those eligible non-union employees who are assumed not to retire prior to September 1, 2009. This reduction in the accumulated postretirement benefit obligation will be recognized as part of net periodic postretirement benefit cost over the average future service period to full eligibility of the remaining active union employees still eligible for a retiree medical subsidy. This plan amendment also resulted in a curtailment gain of $98 million which was included as part of net periodic postretirement benefit cost in the three and six months ended June 30, 2009. The curtailment gain represents the recognition of previously unrecognized negative prior service costs attributable to the future years of service of the employee group for which future accrual of benefits has been eliminated. <style> /*<![CDATA[*/ st1:*{behavior:url(#ieooui) }  /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-qformat:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman","serif";} /*]]>*/ </style> </div>

<div> <a name="_AUCa69f315aab4a44abbe63f078ea87bb6c">NOTE 4. Repositioning and Other Charges</a>         A summary of repositioning and other charges follows:   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="649" style= "margin-left:4.65pt;border-collapse:collapse;mso-table-layout-alt:fixed; mso-padding-alt:0in 5.4pt 0in 5.4pt"> <tr style= "mso-yfti-irow:0;mso-yfti-firstrow:yes;height:11.25pt"> <td width="301" nowrap="nowrap" colspan="2" valign="bottom" style= "width:225.75pt; padding:0in 5.4pt 0in 5.4pt;height:11.25pt">   </td> <td width="156" nowrap="nowrap" colspan="3" valign="bottom" style= "width:117.0pt;padding: 0in 5.4pt 0in 5.4pt;height:11.25pt"> Three Months Ended </td> <td width="48" valign="top" style= "width:.5in;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="144" nowrap="nowrap" colspan="3" valign="bottom" style= "width:1.5in;padding:0in 5.4pt 0in 5.4pt; height:11.25pt"> Six Months Ended </td> </tr> <tr style="mso-yfti-irow:1;height:11.25pt"> <td width="301" nowrap="nowrap" colspan="2" valign="bottom" style= "width:225.75pt; padding:0in 5.4pt 0in 5.4pt;height:11.25pt">   </td> <td width="156" nowrap="nowrap" colspan="3" valign="bottom" style= "width:117.0pt;border: none;border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:11.25pt"> June 30, </td> <td width="48" valign="top" style= "width:.5in;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="144" nowrap="nowrap" colspan="3" valign="bottom" style= "width:1.5in;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:11.25pt"> June 30, </td> </tr> <tr style="mso-yfti-irow:2;height:11.25pt"> <td width="301" nowrap="nowrap" colspan="2" valign="bottom" style= "width:225.75pt; padding:0in 5.4pt 0in 5.4pt;height:11.25pt">   </td> <td width="72" nowrap="nowrap" valign="bottom" style= "width:.75in;border:none;border-bottom: solid windowtext 1.0pt;mso-border-top-alt:solid windowtext .5pt;mso-border-top-alt: solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt;padding: 0in 5.4pt 0in 5.4pt;height:11.25pt"> 2009 </td> <td width="16" valign="top" style= "width:11.8pt;border:none;border-top:solid windowtext 1.0pt; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="68" valign="bottom" style= "width:51.2pt;border-top:solid windowtext 1.0pt; border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none; mso-border-top-alt:solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:11.25pt"> 2008 </td> <td width="48" valign="top" style= "width:.5in;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="60" nowrap="nowrap" valign="bottom" style= "width:45.0pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-top-alt:solid windowtext .5pt;mso-border-top-alt: solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt;padding: 0in 5.4pt 0in 5.4pt;height:11.25pt"> 2009 </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;border:none;border-top: solid windowtext 1.0pt;mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="68" nowrap="nowrap" valign="bottom" style= "width:51.2pt;border-top:solid windowtext 1.0pt; border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none; mso-border-top-alt:solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:11.25pt"> 2008 </td> </tr> <tr style="mso-yfti-irow:3;height:11.25pt"> <td width="301" nowrap="nowrap" colspan="2" valign="bottom" style= "width:225.75pt; padding:0in 5.4pt 0in 5.4pt;height:11.25pt"> Severance </td> <td width="72" nowrap="nowrap" valign="bottom" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">  $  80 </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="68" valign="bottom" style= "width:51.2pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">  $  25 </td> <td width="48" valign="top" style= "width:.5in;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="60" nowrap="nowrap" valign="bottom" style= "width:45.0pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">  $ 142 </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="68" nowrap="nowrap" valign="bottom" style= "width:51.2pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">  $ 113 </td> </tr> <tr style="mso-yfti-irow:4;height:11.25pt"> <td width="301" nowrap="nowrap" colspan="2" valign="bottom" style= "width:225.75pt; padding:0in 5.4pt 0in 5.4pt;height:11.25pt"> Asset impairments </td> <td width="72" nowrap="nowrap" valign="bottom" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">      2 </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="68" valign="bottom" style= "width:51.2pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">     21  </td> <td width="48" valign="top" style= "width:.5in;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="60" nowrap="nowrap" valign="bottom" style= "width:45.0pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">      4 </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="68" nowrap="nowrap" valign="bottom" style= "width:51.2pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">     32  </td> </tr> <tr style= "mso-yfti-irow:5;height:11.25pt;mso-row-margin-left:.75pt"> <td style= "mso-cell-special:placeholder;border:none;padding:0in 0in 0in 0in" width="1">   </td> <td width="300" nowrap="nowrap" valign="bottom" style= "width:225.0pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt"> Exit costs </td> <td width="72" nowrap="nowrap" valign="bottom" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">      2 </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="68" valign="bottom" style= "width:51.2pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">     16  </td> <td width="48" valign="top" style= "width:.5in;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="60" nowrap="nowrap" valign="bottom" style= "width:45.0pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">      3 </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="68" nowrap="nowrap" valign="bottom" style= "width:51.2pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">     20  </td> </tr> <tr style= "mso-yfti-irow:6;height:11.25pt;mso-row-margin-left:.75pt"> <td style= "mso-cell-special:placeholder;border:none;padding:0in 0in 0in 0in" width="1">   </td> <td width="300" nowrap="nowrap" valign="bottom" style= "width:225.0pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt"> Adjustments </td> <td width="72" nowrap="nowrap" valign="bottom" style= "width:.75in;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:11.25pt">    (18)  </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="68" valign="bottom" style= "width:51.2pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:11.25pt">      - </td> <td width="48" valign="top" style= "width:.5in;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="60" nowrap="nowrap" valign="bottom" style= "width:45.0pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:11.25pt">    (39)  </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="68" nowrap="nowrap" valign="bottom" style= "width:51.2pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:11.25pt">      - </td> </tr> <tr style="mso-yfti-irow:7;height:12.75pt"> <td width="301" nowrap="nowrap" colspan="2" valign="bottom" style= "width:225.75pt; padding:0in 5.4pt 0in 5.4pt;height:12.75pt">   Total net repositioning charge </td> <td width="72" nowrap="nowrap" valign="bottom" style= "width:.75in;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:12.75pt">     66  </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="68" valign="bottom" style= "width:51.2pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-top-alt:solid windowtext .5pt;mso-border-top-alt: solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt;padding: 0in 5.4pt 0in 5.4pt;height:12.75pt">     62 </td> <td width="48" valign="top" style= "width:.5in;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="60" nowrap="nowrap" valign="bottom" style= "width:45.0pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-top-alt:solid windowtext .5pt;mso-border-top-alt: solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt;padding: 0in 5.4pt 0in 5.4pt;height:12.75pt">    110  </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="68" nowrap="nowrap" valign="bottom" style= "width:51.2pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-top-alt:solid windowtext .5pt;mso-border-top-alt: solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt;padding: 0in 5.4pt 0in 5.4pt;height:12.75pt">    165 </td> </tr> <tr style="mso-yfti-irow:8;height:11.25pt"> <td width="301" nowrap="nowrap" colspan="2" valign="bottom" style= "width:225.75pt; padding:0in 5.4pt 0in 5.4pt;height:11.25pt">   </td> <td width="72" nowrap="nowrap" valign="bottom" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="68" valign="bottom" style= "width:51.2pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt;height:11.25pt">   </td> <td width="48" valign="top" style= "width:.5in;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="60" nowrap="nowrap" valign="bottom" style= "width:45.0pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt;height:11.25pt">   </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="68" nowrap="nowrap" valign="bottom" style= "width:51.2pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt;height:11.25pt">   </td> </tr> <tr style="mso-yfti-irow:9;height:24.75pt"> <td width="301" colspan="2" valign="bottom" style= "width:225.75pt;padding:0in 5.4pt 0in 5.4pt; height:24.75pt"> Asbestos related litigation charges,   net of insurance </td> <td width="72" nowrap="nowrap" valign="bottom" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt; height:24.75pt">     37 </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:24.75pt">   </td> <td width="68" valign="bottom" style= "width:51.2pt;padding:0in 5.4pt 0in 5.4pt; height:24.75pt">     34 </td> <td width="48" valign="top" style= "width:.5in;padding:0in 5.4pt 0in 5.4pt; height:24.75pt">   </td> <td width="60" nowrap="nowrap" valign="bottom" style= "width:45.0pt;padding:0in 5.4pt 0in 5.4pt; height:24.75pt">     73 </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:24.75pt">   </td> <td width="68" nowrap="nowrap" valign="bottom" style= "width:51.2pt;padding:0in 5.4pt 0in 5.4pt; height:24.75pt">     62 </td> </tr> <tr style="mso-yfti-irow:10;height:25.5pt"> <td width="301" colspan="2" valign="bottom" style= "width:225.75pt;padding:0in 5.4pt 0in 5.4pt; height:25.5pt"> Probable and reasonably estimable   environmental liabilities </td> <td width="72" nowrap="nowrap" valign="bottom" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt; height:25.5pt">     36 </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:25.5pt">   </td> <td width="68" valign="bottom" style= "width:51.2pt;padding:0in 5.4pt 0in 5.4pt; height:25.5pt">     51 </td> <td width="48" valign="top" style= "width:.5in;padding:0in 5.4pt 0in 5.4pt; height:25.5pt">   </td> <td width="60" nowrap="nowrap" valign="bottom" style= "width:45.0pt;padding:0in 5.4pt 0in 5.4pt; height:25.5pt">     67 </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:25.5pt">   </td> <td width="68" nowrap="nowrap" valign="bottom" style= "width:51.2pt;padding:0in 5.4pt 0in 5.4pt; height:25.5pt">    117  </td> </tr> <tr style="mso-yfti-irow:11;height:11.25pt"> <td width="301" colspan="2" valign="bottom" style= "width:225.75pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt"> Other </td> <td width="72" nowrap="nowrap" valign="bottom" style= "width:.75in;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:11.25pt">      5 </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="68" valign="bottom" style= "width:51.2pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:11.25pt">      3 </td> <td width="48" valign="top" style= "width:.5in;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="60" nowrap="nowrap" valign="bottom" style= "width:45.0pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:11.25pt">      5 </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="68" nowrap="nowrap" valign="bottom" style= "width:51.2pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:11.25pt">      3 </td> </tr> <tr style= "mso-yfti-irow:12;mso-yfti-lastrow:yes;height:24.0pt"> <td width="301" colspan="2" valign="top" style= "width:225.75pt;padding:0in 5.4pt 0in 5.4pt; height:24.0pt">      Total net repositioning and other charges </td> <td width="72" nowrap="nowrap" valign="bottom" style= "width:.75in;border:none;border-bottom: double windowtext 2.25pt;mso-border-top-alt:solid windowtext .5pt;padding: 0in 5.4pt 0in 5.4pt;height:24.0pt">  $ 144 </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:24.0pt">   </td> <td width="68" valign="bottom" style= "width:51.2pt;border:none;border-bottom: double windowtext 1.5pt;mso-border-top-alt:solid windowtext .5pt;padding: 0in 5.4pt 0in 5.4pt;height:24.0pt">  $ 150 </td> <td width="48" valign="top" style= "width:.5in;padding:0in 5.4pt 0in 5.4pt; height:24.0pt">   </td> <td width="60" nowrap="nowrap" valign="bottom" style= "width:45.0pt;border:none;border-bottom: double windowtext 1.5pt;mso-border-top-alt:solid windowtext .5pt;padding: 0in 5.4pt 0in 5.4pt;height:24.0pt">  $ 255 </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:24.0pt">   </td> <td width="68" nowrap="nowrap" valign="bottom" style= "width:51.2pt;border:none;border-bottom: double windowtext 1.5pt;mso-border-top-alt:solid windowtext .5pt;padding: 0in 5.4pt 0in 5.4pt;height:24.0pt">  $ 347 </td> </tr><![if !supportMisalignedColumns]> <tr height="0"> <td width="1" style="border:none"></td> <td width="300" style="border:none"></td> <td width="72" style="border:none"></td> <td width="16" style="border:none"></td> <td width="68" style="border:none"></td> <td width="48" style="border:none"></td> <td width="60" style="border:none"></td> <td width="16" style="border:none"></td> <td width="68" style="border:none"></td> </tr><![endif]> </table>   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="685" style= "margin-left:4.65pt;border-collapse:collapse;mso-table-layout-alt:fixed; mso-padding-alt:0in 5.4pt 0in 5.4pt"> <tr style= "mso-yfti-irow:0;mso-yfti-firstrow:yes;height:11.25pt"> <td width="685" nowrap="nowrap" colspan="9" valign="bottom" style= "width:513.8pt;padding: 0in 5.4pt 0in 5.4pt;height:11.25pt">      The following table summarizes the pretax distribution of total net repositioning and other charges by income statement classification: </td> </tr> <tr style="mso-yfti-irow:1;height:11.25pt"> <td width="301" nowrap="nowrap" valign="bottom" style= "width:225.75pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="156" nowrap="nowrap" colspan="3" valign="bottom" style= "width:117.0pt;padding: 0in 5.4pt 0in 5.4pt;height:11.25pt">   </td> <td width="48" nowrap="nowrap" valign="bottom" style= "width:.5in;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="144" nowrap="nowrap" colspan="3" valign="bottom" style= "width:1.5in;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="36" nowrap="nowrap" valign="bottom" style= "width:27.05pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> </tr> <tr style="mso-yfti-irow:2;height:11.25pt"> <td width="301" nowrap="nowrap" valign="bottom" style= "width:225.75pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="156" nowrap="nowrap" colspan="3" valign="bottom" style= "width:117.0pt;padding: 0in 5.4pt 0in 5.4pt;height:11.25pt"> Three Months Ended </td> <td width="48" nowrap="nowrap" valign="bottom" style= "width:.5in;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="144" nowrap="nowrap" colspan="3" valign="bottom" style= "width:1.5in;padding:0in 5.4pt 0in 5.4pt; height:11.25pt"> Six Months Ended </td> <td width="36" nowrap="nowrap" valign="bottom" style= "width:27.05pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> </tr> <tr style="mso-yfti-irow:3;height:11.25pt"> <td width="301" nowrap="nowrap" valign="bottom" style= "width:225.75pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="156" colspan="3" valign="bottom" style= "width:117.0pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:11.25pt"> June 30, </td> <td width="48" nowrap="nowrap" valign="bottom" style= "width:.5in;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="144" colspan="3" valign="bottom" style= "width:1.5in;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:11.25pt"> June 30, </td> <td width="36" nowrap="nowrap" valign="bottom" style= "width:27.05pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> </tr> <tr style="mso-yfti-irow:4;height:11.25pt"> <td width="301" nowrap="nowrap" valign="bottom" style= "width:225.75pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="72" nowrap="nowrap" valign="bottom" style= "width:.75in;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:11.25pt"> 2009 </td> <td width="24" nowrap="nowrap" valign="bottom" style= "width:.25in;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="60" nowrap="nowrap" valign="bottom" style= "width:45.0pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:11.25pt">  2008 </td> <td width="48" nowrap="nowrap" valign="bottom" style= "width:.5in;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="60" nowrap="nowrap" valign="bottom" style= "width:45.0pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:11.25pt"> 2009 </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;border:none;border-top: solid windowtext 1.0pt;mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="68" nowrap="nowrap" valign="bottom" style= "width:51.2pt;border-top:solid windowtext 1.0pt; border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none; mso-border-top-alt:solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:11.25pt">  2008 </td> <td width="36" nowrap="nowrap" valign="bottom" style= "width:27.05pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> </tr> <tr style="mso-yfti-irow:5;height:11.25pt"> <td width="301" valign="bottom" style= "width:225.75pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt"> Cost of products and services sold </td> <td width="72" nowrap="nowrap" valign="bottom" style= "width:.75in;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt;height:11.25pt">  $ 114 </td> <td width="24" nowrap="nowrap" valign="bottom" style= "width:.25in;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="60" nowrap="nowrap" valign="bottom" style= "width:45.0pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">  $ 135 </td> <td width="48" nowrap="nowrap" valign="bottom" style= "width:.5in;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="60" nowrap="nowrap" valign="bottom" style= "width:45.0pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt;height:11.25pt">  $ 208 </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="68" nowrap="nowrap" valign="bottom" style= "width:51.2pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">  $ 306 </td> <td width="36" nowrap="nowrap" valign="bottom" style= "width:27.05pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> </tr> <tr style="mso-yfti-irow:6;height:11.25pt"> <td width="301" valign="bottom" style= "width:225.75pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt"> Selling, general and administrative expenses </td> <td width="72" nowrap="nowrap" valign="bottom" style= "width:.75in;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:11.25pt">     30 </td> <td width="24" nowrap="nowrap" valign="bottom" style= "width:.25in;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="60" nowrap="nowrap" valign="bottom" style= "width:45.0pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:11.25pt">     15 </td> <td width="48" nowrap="nowrap" valign="bottom" style= "width:.5in;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="60" nowrap="nowrap" valign="bottom" style= "width:45.0pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:11.25pt">     47 </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="68" nowrap="nowrap" valign="bottom" style= "width:51.2pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:11.25pt">     41 </td> <td width="36" nowrap="nowrap" valign="bottom" style= "width:27.05pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> </tr> <tr style= "mso-yfti-irow:7;mso-yfti-lastrow:yes;height:13.5pt"> <td width="301" nowrap="nowrap" valign="bottom" style= "width:225.75pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="72" nowrap="nowrap" valign="bottom" style= "width:.75in;border:none;border-bottom: double windowtext 1.5pt;mso-border-top-alt:solid windowtext .5pt;padding: 0in 5.4pt 0in 5.4pt;height:13.5pt">  $ 144 </td> <td width="24" nowrap="nowrap" valign="bottom" style= "width:.25in;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="60" nowrap="nowrap" valign="bottom" style= "width:45.0pt;border:none;border-bottom: double windowtext 1.5pt;mso-border-top-alt:solid windowtext .5pt;padding: 0in 5.4pt 0in 5.4pt;height:13.5pt">  $ 150 </td> <td width="48" nowrap="nowrap" valign="bottom" style= "width:.5in;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="60" nowrap="nowrap" valign="bottom" style= "width:45.0pt;border:none;border-bottom: double windowtext 1.5pt;mso-border-top-alt:solid windowtext .5pt;padding: 0in 5.4pt 0in 5.4pt;height:13.5pt">  $ 255 </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="68" nowrap="nowrap" valign="bottom" style= "width:51.2pt;border:none;border-bottom: double windowtext 1.5pt;mso-border-top-alt:solid windowtext .5pt;padding: 0in 5.4pt 0in 5.4pt;height:13.5pt">  $ 347 </td> <td width="36" nowrap="nowrap" valign="bottom" style= "width:27.05pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> </tr> </table>   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="685" style= "margin-left:4.65pt;border-collapse:collapse;mso-table-layout-alt:fixed; mso-padding-alt:0in 5.4pt 0in 5.4pt"> <tr style= "mso-yfti-irow:0;mso-yfti-firstrow:yes;height:11.25pt"> <td width="685" nowrap="nowrap" colspan="9" valign="bottom" style= "width:513.8pt;padding: 0in 5.4pt 0in 5.4pt;height:11.25pt">      The following table summarizes the pretax impact of total net repositioning and other charges by segment: </td> </tr> <tr style="mso-yfti-irow:1;height:11.25pt"> <td width="301" nowrap="nowrap" valign="bottom" style= "width:225.75pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="72" nowrap="nowrap" valign="bottom" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="24" nowrap="nowrap" valign="bottom" style= "width:.25in;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="60" nowrap="nowrap" valign="bottom" style= "width:45.0pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="36" nowrap="nowrap" valign="bottom" style= "width:27.0pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="72" nowrap="nowrap" valign="bottom" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="68" nowrap="nowrap" valign="bottom" style= "width:51.2pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="36" nowrap="nowrap" valign="bottom" style= "width:27.05pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> </tr> <tr style="mso-yfti-irow:2;height:11.25pt"> <td width="301" nowrap="nowrap" valign="bottom" style= "width:225.75pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="156" nowrap="nowrap" colspan="3" valign="bottom" style= "width:117.0pt;padding: 0in 5.4pt 0in 5.4pt;height:11.25pt"> Three Months Ended </td> <td width="36" nowrap="nowrap" valign="bottom" style= "width:27.0pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="156" nowrap="nowrap" colspan="3" valign="bottom" style= "width:117.0pt;padding: 0in 5.4pt 0in 5.4pt;height:11.25pt"> Six Months Ended </td> <td width="36" nowrap="nowrap" valign="bottom" style= "width:27.05pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> </tr> <tr style="mso-yfti-irow:3;height:11.25pt"> <td width="301" nowrap="nowrap" valign="bottom" style= "width:225.75pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="156" colspan="3" valign="bottom" style= "width:117.0pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:11.25pt"> June 30, </td> <td width="36" nowrap="nowrap" valign="bottom" style= "width:27.0pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="156" colspan="3" valign="bottom" style= "width:117.0pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:11.25pt"> June 30, </td> <td width="36" nowrap="nowrap" valign="bottom" style= "width:27.05pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> </tr> <tr style="mso-yfti-irow:4;height:11.25pt"> <td width="301" nowrap="nowrap" valign="bottom" style= "width:225.75pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="72" nowrap="nowrap" valign="bottom" style= "width:.75in;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:11.25pt"> 2009 </td> <td width="24" nowrap="nowrap" valign="bottom" style= "width:.25in;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="60" nowrap="nowrap" valign="bottom" style= "width:45.0pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:11.25pt"> 2008 </td> <td width="36" nowrap="nowrap" valign="bottom" style= "width:27.0pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="72" nowrap="nowrap" valign="bottom" style= "width:.75in;border:none;border-bottom: solid windowtext 1.0pt;mso-border-top-alt:solid windowtext .5pt;mso-border-top-alt: solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt;padding: 0in 5.4pt 0in 5.4pt;height:11.25pt"> 2009 </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;border:none;border-top: solid windowtext 1.0pt;mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="68" nowrap="nowrap" valign="bottom" style= "width:51.2pt;border-top:solid windowtext 1.0pt; border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none; mso-border-top-alt:solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:11.25pt"> 2008 </td> <td width="36" nowrap="nowrap" valign="bottom" style= "width:27.05pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> </tr> <tr style="mso-yfti-irow:5;height:11.25pt"> <td width="301" nowrap="nowrap" valign="bottom" style= "width:225.75pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt"> Aerospace </td> <td width="72" nowrap="nowrap" valign="bottom" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">  $  34 </td> <td width="24" nowrap="nowrap" valign="bottom" style= "width:.25in;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="60" nowrap="nowrap" valign="bottom" style= "width:45.0pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt;height:11.25pt">  $   6 </td> <td width="36" nowrap="nowrap" valign="bottom" style= "width:27.0pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="72" nowrap="nowrap" valign="bottom" style= "width:.75in;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt;height:11.25pt">  $  32 </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="68" nowrap="nowrap" valign="bottom" style= "width:51.2pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">  $  44 </td> <td width="36" nowrap="nowrap" valign="bottom" style= "width:27.05pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> </tr> <tr style="mso-yfti-irow:6;height:11.25pt"> <td width="301" valign="bottom" style= "width:225.75pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt"> Automation and Control Solutions </td> <td width="72" nowrap="nowrap" valign="bottom" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">      4 </td> <td width="24" nowrap="nowrap" valign="bottom" style= "width:.25in;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="60" nowrap="nowrap" valign="bottom" style= "width:45.0pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">      3 </td> <td width="36" nowrap="nowrap" valign="bottom" style= "width:27.0pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="72" nowrap="nowrap" valign="bottom" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">     27 </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="68" nowrap="nowrap" valign="bottom" style= "width:51.2pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">     38 </td> <td width="36" nowrap="nowrap" valign="bottom" style= "width:27.05pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> </tr> <tr style="mso-yfti-irow:7;height:11.25pt"> <td width="301" valign="bottom" style= "width:225.75pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt"> Specialty Materials </td> <td width="72" nowrap="nowrap" valign="bottom" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">      1 </td> <td width="24" nowrap="nowrap" valign="bottom" style= "width:.25in;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="60" nowrap="nowrap" valign="bottom" style= "width:45.0pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">      2 </td> <td width="36" nowrap="nowrap" valign="bottom" style= "width:27.0pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="72" nowrap="nowrap" valign="bottom" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">      5 </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="68" nowrap="nowrap" valign="bottom" style= "width:51.2pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">      2 </td> <td width="36" nowrap="nowrap" valign="bottom" style= "width:27.05pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> </tr> <tr style="mso-yfti-irow:8;height:11.25pt"> <td width="301" valign="bottom" style= "width:225.75pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt"> Transportation Systems </td> <td width="72" nowrap="nowrap" valign="bottom" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">     62 </td> <td width="24" nowrap="nowrap" valign="bottom" style= "width:.25in;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="60" nowrap="nowrap" valign="bottom" style= "width:45.0pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">     69 </td> <td width="36" nowrap="nowrap" valign="bottom" style= "width:27.0pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="72" nowrap="nowrap" valign="bottom" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">    113 </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="68" nowrap="nowrap" valign="bottom" style= "width:51.2pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">    125 </td> <td width="36" nowrap="nowrap" valign="bottom" style= "width:27.05pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> </tr> <tr style="mso-yfti-irow:9;height:11.25pt"> <td width="301" valign="bottom" style= "width:225.75pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt"> Corporate </td> <td width="72" nowrap="nowrap" valign="bottom" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">     43 </td> <td width="24" nowrap="nowrap" valign="bottom" style= "width:.25in;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="60" nowrap="nowrap" valign="bottom" style= "width:45.0pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">     70 </td> <td width="36" nowrap="nowrap" valign="bottom" style= "width:27.0pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="72" nowrap="nowrap" valign="bottom" style= "width:.75in;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:11.25pt">     78 </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="68" nowrap="nowrap" valign="bottom" style= "width:51.2pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:11.25pt">    138 </td> <td width="36" nowrap="nowrap" valign="bottom" style= "width:27.05pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> </tr> <tr style="mso-yfti-irow:10;height:13.5pt"> <td width="301" nowrap="nowrap" valign="bottom" style= "width:225.75pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="72" nowrap="nowrap" valign="bottom" style= "width:.75in;border-top:solid windowtext 1.0pt; border-left:none;border-bottom:double windowtext 2.25pt;border-right:none; mso-border-top-alt:solid windowtext .5pt;mso-border-bottom-alt:double windowtext 2.25pt; padding:0in 5.4pt 0in 5.4pt;height:13.5pt">  $ 144 </td> <td width="24" nowrap="nowrap" valign="bottom" style= "width:.25in;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="60" nowrap="nowrap" valign="bottom" style= "width:45.0pt;border-top:solid windowtext 1.0pt; border-left:none;border-bottom:double windowtext 2.25pt;border-right:none; mso-border-top-alt:solid windowtext .5pt;mso-border-bottom-alt:double windowtext 2.25pt; padding:0in 5.4pt 0in 5.4pt;height:13.5pt">  $ 150 </td> <td width="36" nowrap="nowrap" valign="bottom" style= "width:27.0pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="72" nowrap="nowrap" valign="bottom" style= "width:.75in;border:none;border-bottom: double windowtext 1.5pt;mso-border-top-alt:solid windowtext .5pt;padding: 0in 5.4pt 0in 5.4pt;height:13.5pt">  $ 255 </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="68" nowrap="nowrap" valign="bottom" style= "width:51.2pt;border:none;border-bottom: double windowtext 1.5pt;mso-border-top-alt:solid windowtext .5pt;padding: 0in 5.4pt 0in 5.4pt;height:13.5pt">  $ 347 </td> <td width="36" nowrap="nowrap" valign="bottom" style= "width:27.05pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> </tr> <tr style= "mso-yfti-irow:11;mso-yfti-lastrow:yes;height:11.25pt"> <td width="301" nowrap="nowrap" valign="bottom" style= "width:225.75pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="72" nowrap="nowrap" valign="bottom" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="24" nowrap="nowrap" valign="bottom" style= "width:.25in;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="60" nowrap="nowrap" valign="bottom" style= "width:45.0pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="36" nowrap="nowrap" valign="bottom" style= "width:27.0pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="72" nowrap="nowrap" valign="bottom" style= "width:.75in;border:none;mso-border-top-alt: double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:11.25pt">   </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="68" nowrap="nowrap" valign="bottom" style= "width:51.2pt;border:none;mso-border-top-alt: double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:11.25pt">   </td> <td width="36" nowrap="nowrap" valign="bottom" style= "width:27.05pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> </tr> </table>         In the second quarter of 2009, we recognized repositioning charges totaling $84 million primarily for severance costs related to workforce reductions of 1,811 manufacturing and administrative positions principally in our Aerospace, Automation and Control Solutions and Transportation Systems segments.  The workforce reductions were related to organizational realignments of portions of our Aerospace and Transportation Systems segments, adverse market conditions currently being experienced by many of our businesses and a factory transition in our Transportation Systems segment to a more cost-effective location. Also, $18 million of previously established accruals, primarily for severance at our Automation and Control Solutions and Aerospace segments, were returned to income in the second quarter of 2009 due principally to fewer employee separations than originally planned associated with prior severance programs.          In the second quarter of 2008, we recognized a repositioning charge of $62 million including severance costs of $25 million related to workforce reductions of 607 manufacturing and administrative positions across all of our business segments.  The repositioning charge included asset impairments of $21 million related to plant closures in our Transportation Systems segment and the shutdown of certain administrative facilities in our Corporate segment.  The repositioning charge also included exit costs of $16 million primarily for environmental remediation and monitoring costs related to the closure and sale of a plant in our Transportation Systems segment.            In the first six months of 2009, we recognized repositioning charges totaling $149 million primarily for severance costs related to workforce reductions of 3,120 manufacturing and administrative positions across all of our segments. The workforce reductions were primarily related to the adverse market conditions currently being experienced by many of our businesses, cost savings actions taken in connection with our ongoing functional transformation initiative, and organizational realignments of portions of our Aerospace and Transportation Systems segments. Also, $39 million of previously established accruals, primarily for severance at our Aerospace, Automation and Control Solutions and Transportation Systems segments, were returned to income in the first six months of 2009 due to fewer employee separations than originally planned associated with prior severance programs and changes in the scope of previously announced repositioning actions.   In the first six months of 2008, we recognized a repositioning charge of $165 million primarily for severance costs related to workforce reductions of 2,683 manufacturing and administrative positions across all of our segments. The more significant actions comprising the repositioning charge included the transitioning of manufacturing work to more cost-effective locations, the closure of plants and certain administrative facilities, outsourcing of non-core components, and our functional transformation initiative.   The following table summarizes the status of our total repositioning reserves: <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="643" style= "width:6.7in;border-collapse:collapse;mso-yfti-tbllook:480;mso-padding-alt: 0in 5.4pt 0in 5.4pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="259" valign="top" style= "width:2.7in;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt"> Severance   Costs   </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt"> Asset Impairments </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt"> Exit Costs </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">   Total </td> </tr> <tr style="mso-yfti-irow:1"> <td width="259" valign="top" style= "width:2.7in;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">   </td> </tr> <tr style="mso-yfti-irow:2"> <td width="259" valign="top" style= "width:2.7in;padding:0in 5.4pt 0in 5.4pt"> Balance at December 31, 2008 </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt">     $365 </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt">     $  - </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt">   $36 </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">    $401 </td> </tr> <tr style="mso-yfti-irow:3"> <td width="259" valign="top" style= "width:2.7in;padding:0in 5.4pt 0in 5.4pt"> 2009 charges </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt">      142   </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt">        4 </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt">     3 </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">     149 </td> </tr> <tr style="mso-yfti-irow:4"> <td width="259" valign="top" style= "width:2.7in;padding:0in 5.4pt 0in 5.4pt"> 2009 usage </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt">      (98) </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt">       (4) </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt">    (2) </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">    (104) </td> </tr> <tr style="mso-yfti-irow:5"> <td width="259" valign="top" style= "width:2.7in;padding:0in 5.4pt 0in 5.4pt"> Adjustments </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt">      (38) </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt">        -  </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt">    (1) </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">     (39) </td> </tr> <tr style="mso-yfti-irow:6"> <td width="259" valign="top" style= "width:2.7in;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">   </td> </tr> <tr style="mso-yfti-irow:7;mso-yfti-lastrow:yes"> <td width="259" valign="top" style= "width:2.7in;padding:0in 5.4pt 0in 5.4pt"> Balance at June 30, 2009 </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt"> $371 </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt">     $  - </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt">   $36 </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">    $407 </td> </tr> </table>     Certain repositioning projects in our Aerospace, Automation and Control Solutions and Transportation Systems segments included exit or disposal activities, the costs related to which, will be recognized in future periods when the actual liability is incurred. The nature of these exit or disposal costs principally includes product recertification and requalification and employee training and travel. The following table summarizes by segment, expected, incurred and remaining exit and disposal costs related to 2008 repositioning actions which we were not able to recognize at the time the actions were initiated. The exit and disposal costs related to the repositioning actions in the first six months of 2009 which we were not able to recognize at the time the actions were initiated were not significant.     <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="667" style= "border-collapse:collapse;mso-table-layout-alt:fixed;mso-yfti-tbllook: 480;mso-padding-alt:0in 5.4pt 0in 5.4pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="283" valign="top" style= "width:2.95in;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">       Aerospace  </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt">   Automation and Control Solutions </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">   Transpor-tation Systems </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt">       Total </td> </tr> <tr style="mso-yfti-irow:1"> <td width="283" valign="top" style= "width:2.95in;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt">   </td> </tr> <tr style="mso-yfti-irow:2"> <td width="283" valign="top" style= "width:2.95in;padding:0in 5.4pt 0in 5.4pt"> Expected exit and disposal costs </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">     $113 </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt">      $27 </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">     $11 </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt">    $151 </td> </tr> <tr style="mso-yfti-irow:3"> <td width="283" valign="top" style= "width:2.95in;padding:0in 5.4pt 0in 5.4pt"> Costs incurred year ended </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">     </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt">       </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt">    </td> </tr> <tr style="mso-yfti-irow:4"> <td width="283" valign="top" style= "width:2.95in;padding:0in 5.4pt 0in 5.4pt">    December 31, 2008 </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">      (12) </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt">        - </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">      (1) </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt">     (13) </td> </tr> <tr style="mso-yfti-irow:5"> <td width="283" valign="top" style= "width:2.95in;padding:0in 5.4pt 0in 5.4pt"> Costs incurred six months </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">        </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt">        </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">     </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt">       </td> </tr> <tr style="mso-yfti-irow:6"> <td width="283" valign="top" style= "width:2.95in;padding:0in 5.4pt 0in 5.4pt">    ended June 30, 2009 </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">      (17) </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt">       (1)  </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">      (1) </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt">     (19) </td> </tr> <tr style="mso-yfti-irow:7"> <td width="283" valign="top" style= "width:2.95in;padding:0in 5.4pt 0in 5.4pt"> Remaining exit and disposal costs </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt">   </td> </tr> <tr style="mso-yfti-irow:8;mso-yfti-lastrow:yes"> <td width="283" valign="top" style= "width:2.95in;padding:0in 5.4pt 0in 5.4pt">    at June 30, 2009 </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">   $ 84 </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt">      $26 </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">     $ 9 </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt">    $119 </td> </tr> </table>   In the second quarter of 2009, we recognized a charge of $36 million for environmental liabilities deemed probable and reasonably estimable in the quarter.  We also recognized a charge of $37 million primarily representing an update to our estimated liability for the resolution of Bendix related asbestos claims as of June 30, 2009, net of probable insurance recoveries.  Environmental and Asbestos matters are discussed in detail in Note 15, Commitments and Contingencies.   In the second quarter of 2008, we recognized a charge of $51 million for environmental liabilities deemed probable and reasonably estimable in the quarter.  We also recognized a charge of $34 million representing an update to our estimated liability for the resolution of Bendix related asbestos claims as of June 30, 2008, net of probable insurance recoveries.     In the first six months of 2009, we recognized a charge of $67 million for environmental liabilities deemed probable and reasonably estimable in the period. We also recognized a charge of $73 million primarily representing an update to our estimated liability for the resolution of Bendix related asbestos claims as of June 30, 2009, net of probable insurance recoveries.   <span style= "font-size:12.0pt;font-family:Times New Roman,serif;mso-fareast-font-family: Times New Roman;mso-bidi-font-family:Courier New;mso-ansi-language:EN-US; mso-fareast-language:EN-US;mso-bidi-language:AR-SA">In the first six months of 2008, we recognized a charge of $117 million for environmental liabilities deemed probable and reasonably estimable in the period. We also recognized a charge of $62 million representing an update to our estimated liability for the resolution of Bendix related asbestos claims as of June 30, 2008, net of probable insurance recoveries. <style> /*<![CDATA[*/  /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-qformat:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman","serif";} /*]]>*/ </style> </div>

<div> <a name="_AUC28c2ce49ec0e423f803fbdc5de02ab66">NOTE 2.  Recent Accounting Pronouncements</a>   Recent Accounting Pronouncements – In September 2006, the FASB issued Statement of Financial Accounting Standard (“SFAS”) No. 157, “Fair Value Measurements” (SFAS No. 157). SFAS No. 157 establishes a common definition for fair value to be applied to U.S. GAAP requiring use of fair value, establishes a framework for measuring fair value, and expands disclosure about such fair value measurements. SFAS No. 157 is effective for financial assets and financial liabilities for fiscal years beginning after November 15, 2007. Issued in February 2008, FSP 157-1 “Application of FASB Statement No. 157 to FASB Statement No. 13 and Other Accounting Pronouncements That Address Fair Value Measurements for Purposes of Lease Classification or Measurement under Statement 13” removed leasing transactions accounted for under Statement 13 and related guidance from the scope of SFAS No. 157. FSP 157-2 “Partial Deferral of the Effective Date of Statement 157” (FSP 157-2), deferred the effective date of SFAS No. 157 for all nonfinancial assets and nonfinancial liabilities to fiscal years beginning after November 15, 2008.   In October 2008, the FASB issued FSP 157-3 “Determining Fair Value of a Financial Asset in a Market That is Not Active” (FSP 157-3). FSP 157-3 clarified the application of SFAS No. 157 in an inactive market. It demonstrated how the fair value of a financial asset is determined when the market for that financial asset is inactive. FSP 157-3 was effective upon issuance, including prior periods for which financial statements had not been issued.   In April 2009, the FASB issued FSP FAS 157-4, “Determining Whether a Market Is Not Active and a Transaction Is Not Distressed” (FSP 157-4). FSP 157-4 provides additional guidance on factors to consider in estimating fair value when there has been a significant decrease in market activity for a financial asset. FSP 157-4 is effective for interim and annual periods ending after June 15, 2009. The implementation of this standard did not have a material impact on our consolidated financial position and results of operations.   The implementation of SFAS No. 157 for nonfinancial assets and nonfinancial liabilities, effective January 1, 2009, did not have a material impact on our consolidated financial position and results of operations. See Note 11 for additional SFAS No. 157 information and disclosure for financial and nonfinancial assets and liabilities. In December 2007, the FASB issued SFAS No. 141(revised 2007), “Business Combinations” (SFAS No. 141R). SFAS No. 141R provides revised guidance on how acquirors recognize and measure the consideration transferred, identifiable assets acquired, liabilities assumed, noncontrolling interests, and goodwill acquired in a business combination. SFAS No. 141R also expands required disclosures surrounding the nature and financial effects of business combinations. SFAS No. 141R is effective, on a prospective basis, for fiscal years beginning after December 15, 2008. Upon adoption, this standard did not have a material impact on our consolidated financial position and results of operations. However, if the Company enters into any business combinations after the adoption of SFAS No. 141R, a transaction may significantly impact the Company’s consolidated financial position and results of operations as compared to the Company’s recent acquisitions, accounted for under prior GAAP requirements, due to the changes described above.   In April 2009, the FASB issued FSP 141(R)-1, “Accounting for Assets Acquired and Liabilities Assumed in a Business Combination That Arise from Contingencies” (FSP 141R-1). FSP 141R-1 amends and clarifies SFAS No. 141R to address application issues associated with initial recognition and measurement, subsequent measurement and accounting, and disclosure of assets and liabilities arising from contingencies in a business combination. FSP 141R-1 is effective for assets or liabilities arising from contingencies in business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December 15, 2008. The implementation of this standard will not have a material impact on our consolidated financial position and results of operations.   In December 2007, the FASB issued SFAS No. 160, “Noncontrolling Interests in Consolidated Financial Statements” (SFAS No. 160). SFAS No. 160 establishes requirements for ownership interests in subsidiaries held by parties other than the Company (sometimes called “minority interests”) be clearly identified, presented, and disclosed in the consolidated statement of financial position within equity, but separate from the parent’s equity. All changes in the parent’s ownership interests are required to be accounted for consistently as equity transactions and any noncontrolling equity investments in unconsolidated subsidiaries must be measured initially at fair value. SFAS No. 160 is effective, on a prospective basis, for fiscal years beginning after December 15, 2008. However, presentation and disclosure requirements must be retrospectively applied to comparative financial statements. Upon adoption of SFAS No. 160 the Company reclassified $82 million of noncontrolling interest from other liabilities to noncontrolling interest as a separate component of shareholders equity in our consolidated balance sheet as of December 31, 2008 and $5 million and $9 million of noncontrolling interest expense to net income attributable to noncontrolling interest in our statement of operations for the second quarter and six months ended June 30, 2008, respectively. See Note 12, Other Comprehensive Income/(Loss), for additional SFAS No. 160 disclosures regarding noncontrolling interest components of other comprehensive income. The implementation of this standard did not have a material impact on our consolidated financial position and results of operations. In March 2008, the FASB issued SFAS No. 161, “Disclosures About Derivative Instruments and Hedging Activities – an amendment of FASB Statement No. 133” (SFAS No. 161). SFAS No. 161 expands quarterly disclosure requirements in SFAS No. 133 about an entity’s derivative instruments and hedging activities. SFAS No. 161 is effective for fiscal years beginning after November 15, 2008. All derivatives are recorded on the balance sheet as assets or liabilities and measured at fair value. For derivatives designated as hedges of the fair value of assets or liabilities, the changes in fair values of both the derivatives and the hedged items are recorded in current earnings. For derivatives designated as cash flow hedges, the effective portion of the changes in fair value of the derivatives are recorded in Accumulated Other Comprehensive Income (Loss) and subsequently recognized in earnings when the hedged items impact earnings. Cash flows of such derivative financial instruments are classified consistent with the underlying hedged item. The implementation of this standard did not have a material impact on our consolidated financial position and results of operations.  See Note 11 for additional SFAS No. 161 information and disclosures. In November 2008, the FASB ratified EITF Issue No. 08-07, “Accounting for Defensive Intangible Assets” (EITF 08-7). EITF 08-7 provides guidance for accounting for defensive intangible assets subsequent to their acquisition in accordance with SFAS No. 141R and SFAS No. 157 including the estimated useful life that should be assigned to such assets. EITF 08-7 is effective for intangible assets acquired on or after the beginning of the first annual reporting period beginning on or after December 15, 2008. The implementation of this standard did not have a material impact on our consolidated financial position and results of operations.   In December 2008, the FASB issued FSP FAS 132(R)-1, “Employers’ Disclosures about Postretirement Benefit Plan Assets” (FSP FAS 132(R)-1). FSP FAS 132(R)-1 provides guidance on an employer’s disclosures about plan assets of a defined benefit pension or other postretirement plan. FSP FAS 132(R)-1 is effective for fiscal years ending after December 15, 2009. The implementation of this standard will not have a material impact on our consolidated financial position and results of operations.   In April 2009, the FASB issued FSP FAS 115-2 and FAS 124-2, “Recognition and Presentation of Other-Than-Temporary Impairments” (FSP FAS 115-2 and FAS 124-2). FSP FAS 115-2 and FAS 124-2 changes the method for determining whether an other-than-temporary impairment exists for debt securities and the amount of the impairment to be recorded in earnings. FSP FAS 115-2 and FAS 124-2 is effective for interim and annual periods ending after June 15, 2009. The implementation of this standard did not have a material impact on our consolidated financial position and results of operations.   In April 2009, the FASB issued FSP FAS 107-1, APB 28-1, “Interim Disclosures About Fair Value of Financial Instruments” (FSP FAS 107-1, APB 28-1). FSP FAS 107-1, APB 28-1 requires fair value disclosures in both interim as well as annual financial statements in order to provide more timely information about the effects of current market conditions on financial instruments. FSP FAS 107-1, APB 28-1 is effective for interim and annual periods ending after June 15, 2009. The implementation of this standard did not have a material impact on our consolidated financial position and results of operations.   In May 2009, the FASB issued SFAS No. 165, “Subsequent Events” (SFAS No. 165). SFAS No. 165 provides guidance on management’s assessment of subsequent events and incorporates this guidance into accounting literature. SFAS No. 165 is effective prospectively for interim and annual periods ending after June 15, 2009. The implementation of this standard did not have a material impact on our consolidated financial position and results of operations. The Company has evaluated subsequent events through July 27, 2009, the date of issuance of our consolidated financial position and results of operations.   In June 2009, the FASB issued SFAS No. 166, “Accounting for Transfers of Financial Assets” (SFAS No. 166). SFAS No. 166 amends the derecognition guidance in SFAS No. 140, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities (SFAS No. 140). SFAS No. 166 is effective for fiscal years beginning after November 15, 2009. The Company is currently assessing the impact of SFAS No. 166 on its consolidated financial position and results of operations.   In June 2009, the FASB issued SFAS No. 167, “Amendments to FASB Interpretation No. 46(R)” (SFAS No. 167). SFAS No. 167 amends the consolidation guidance applicable to variable interest entities and affects the overall consolidation analysis under FASB Interpretation No. 46(R). SFAS No. 167 is effective for fiscal years beginning after November 15, 2009. The Company is currently assessing the impact of SFAS No. 167 on its consolidated financial position and results of operations.   In June 2009, the FASB issued SFAS No. 168, “The FASB Accounting Standards Codification and the Hierarchy of Generally Accepted Accounting Principles – a replacement of FASB Statement No. 162” (SFAS No. 168). SFAS No. 168 stipulates the FASB Accounting Standards Codification is the source of authoritative U.S. GAAP recognized by the FASB to be applied by nongovernmental entities. SFAS No. 168 is effective for financials statements issued for interim and annual periods ending after September 15, 2009.  The implementation of this standard will not have a material impact on our consolidated financial position and results of operations. <style> /*<![CDATA[*/ st1:*{behavior:url(#ieooui) }  /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-qformat:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman","serif";} /*]]>*/ </style> </div>

<div> <a name="_AUCb3ef624fb41d4a4abf8ab3cfb031f9d2"> </a> NOTE 13. Segment Financial Data   Honeywell’s senior management evaluates segment performance based on segment profit.  Segment profit is measured as business unit income (loss) before taxes excluding general corporate unallocated expense, other income (expense), interest and other financial charges, pension and other postretirement benefits (expense), stock compensation expense, repositioning and other charges and accounting changes.    <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="681" style= "width:511.05pt;margin-left:4.65pt;border-collapse:collapse;mso-padding-alt: 0in 5.4pt 0in 5.4pt"> <tr style= "mso-yfti-irow:0;mso-yfti-firstrow:yes;height:13.5pt"> <td width="307" nowrap="nowrap" valign="bottom" style= "width:230.0pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="168" nowrap="nowrap" colspan="3" valign="bottom" style= "width:1.75in;padding: 0in 5.4pt 0in 5.4pt;height:13.5pt"> Three Months Ended </td> <td width="23" nowrap="nowrap" valign="bottom" style= "width:17.0pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="184" nowrap="nowrap" colspan="3" valign="bottom" style= "width:138.05pt; padding:0in 5.4pt 0in 5.4pt;height:13.5pt"> Six Months Ended </td> </tr> <tr style="mso-yfti-irow:1;height:11.25pt"> <td width="307" nowrap="nowrap" valign="bottom" style= "width:230.0pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="168" colspan="3" valign="bottom" style= "width:1.75in;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:11.25pt"> June 30, </td> <td width="23" nowrap="nowrap" valign="bottom" style= "width:17.0pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="184" colspan="3" valign="bottom" style= "width:138.05pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:11.25pt"> June 30, </td> </tr> <tr style="mso-yfti-irow:2;height:13.5pt"> <td width="307" nowrap="nowrap" valign="bottom" style= "width:230.0pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="82" nowrap="nowrap" valign="bottom" style= "width:61.45pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:13.5pt"> 2009 </td> <td width="4" nowrap="nowrap" valign="bottom" style= "width:3.1pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="82" nowrap="nowrap" valign="bottom" style= "width:61.45pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:13.5pt"> 2008 </td> <td width="23" nowrap="nowrap" valign="bottom" style= "width:17.0pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="90" nowrap="nowrap" valign="bottom" style= "width:67.5pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:13.5pt"> 2009 </td> <td width="4" nowrap="nowrap" valign="bottom" style= "width:3.05pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="90" nowrap="nowrap" valign="bottom" style= "width:67.5pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:13.5pt"> 2008 </td> </tr> <tr style="mso-yfti-irow:3;height:13.5pt"> <td width="307" nowrap="nowrap" valign="bottom" style= "width:230.0pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt"> Net Sales </td> <td width="82" nowrap="nowrap" valign="bottom" style= "width:61.45pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="4" nowrap="nowrap" valign="bottom" style= "width:3.1pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="82" nowrap="nowrap" valign="bottom" style= "width:61.45pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="23" nowrap="nowrap" valign="bottom" style= "width:17.0pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="90" nowrap="nowrap" valign="bottom" style= "width:67.5pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="4" nowrap="nowrap" valign="bottom" style= "width:3.05pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="90" nowrap="nowrap" valign="bottom" style= "width:67.5pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> </tr> <tr style="mso-yfti-irow:4;height:13.5pt"> <td width="307" nowrap="nowrap" valign="bottom" style= "width:230.0pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt"> Aerospace </td> <td width="82" nowrap="nowrap" valign="bottom" style= "width:61.45pt;background:white; padding:0in 5.4pt 0in 5.4pt;height:13.5pt">  $2,719 </td> <td width="4" nowrap="nowrap" valign="bottom" style= "width:3.1pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="82" nowrap="nowrap" valign="bottom" style= "width:61.45pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">  $3,281 </td> <td width="23" nowrap="nowrap" valign="bottom" style= "width:17.0pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="90" nowrap="nowrap" valign="bottom" style= "width:67.5pt;background:white; padding:0in 5.4pt 0in 5.4pt;height:13.5pt">  $ 5,478 </td> <td width="4" nowrap="nowrap" valign="bottom" style= "width:3.05pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="90" nowrap="nowrap" valign="bottom" style= "width:67.5pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">  $ 6,311 </td> </tr> <tr style="mso-yfti-irow:5;height:13.5pt"> <td width="307" nowrap="nowrap" valign="bottom" style= "width:230.0pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt"> Automation and Control Solutions </td> <td width="82" nowrap="nowrap" valign="bottom" style= "width:61.45pt;background:white; padding:0in 5.4pt 0in 5.4pt;height:13.5pt">   3,013 </td> <td width="4" nowrap="nowrap" valign="bottom" style= "width:3.1pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="82" nowrap="nowrap" valign="bottom" style= "width:61.45pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   3,616 </td> <td width="23" nowrap="nowrap" valign="bottom" style= "width:17.0pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="90" nowrap="nowrap" valign="bottom" style= "width:67.5pt;background:white; padding:0in 5.4pt 0in 5.4pt;height:13.5pt">    6,014 </td> <td width="4" nowrap="nowrap" valign="bottom" style= "width:3.05pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="90" nowrap="nowrap" valign="bottom" style= "width:67.5pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">    6,796 </td> </tr> <tr style="mso-yfti-irow:6;height:13.5pt"> <td width="307" nowrap="nowrap" valign="bottom" style= "width:230.0pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt"> Specialty Materials </td> <td width="82" nowrap="nowrap" valign="bottom" style= "width:61.45pt;background:white; padding:0in 5.4pt 0in 5.4pt;height:13.5pt">   1,048 </td> <td width="4" nowrap="nowrap" valign="bottom" style= "width:3.1pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="82" nowrap="nowrap" valign="bottom" style= "width:61.45pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   1,450 </td> <td width="23" nowrap="nowrap" valign="bottom" style= "width:17.0pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="90" nowrap="nowrap" valign="bottom" style= "width:67.5pt;background:white; padding:0in 5.4pt 0in 5.4pt;height:13.5pt">    2,102 </td> <td width="4" nowrap="nowrap" valign="bottom" style= "width:3.05pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="90" nowrap="nowrap" valign="bottom" style= "width:67.5pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">    2,859 </td> </tr> <tr style="mso-yfti-irow:7;height:13.5pt"> <td width="307" nowrap="nowrap" valign="bottom" style= "width:230.0pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt"> Transportation Systems </td> <td width="82" nowrap="nowrap" valign="bottom" style= "width:61.45pt;background:white; padding:0in 5.4pt 0in 5.4pt;height:13.5pt">     786 </td> <td width="4" nowrap="nowrap" valign="bottom" style= "width:3.1pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="82" nowrap="nowrap" valign="bottom" style= "width:61.45pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   1,327 </td> <td width="23" nowrap="nowrap" valign="bottom" style= "width:17.0pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="90" nowrap="nowrap" valign="bottom" style= "width:67.5pt;background:white; padding:0in 5.4pt 0in 5.4pt;height:13.5pt">    1,542 </td> <td width="4" nowrap="nowrap" valign="bottom" style= "width:3.05pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="90" nowrap="nowrap" valign="bottom" style= "width:67.5pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">    2,603 </td> </tr> <tr style="mso-yfti-irow:8;height:13.5pt"> <td width="307" nowrap="nowrap" valign="bottom" style= "width:230.0pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt"> Corporate </td> <td width="82" nowrap="nowrap" valign="bottom" style= "width:61.45pt;background:white; padding:0in 5.4pt 0in 5.4pt;height:13.5pt">       - </td> <td width="4" nowrap="nowrap" valign="bottom" style= "width:3.1pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="82" nowrap="nowrap" valign="bottom" style= "width:61.45pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">       - </td> <td width="23" nowrap="nowrap" valign="bottom" style= "width:17.0pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="90" nowrap="nowrap" valign="bottom" style= "width:67.5pt;background:white; padding:0in 5.4pt 0in 5.4pt;height:13.5pt">        - </td> <td width="4" nowrap="nowrap" valign="bottom" style= "width:3.05pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="90" nowrap="nowrap" valign="bottom" style= "width:67.5pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">        - </td> </tr> <tr style="mso-yfti-irow:9;height:14.25pt"> <td width="307" nowrap="nowrap" valign="bottom" style= "width:230.0pt;padding:0in 5.4pt 0in 5.4pt; height:14.25pt">   </td> <td width="82" nowrap="nowrap" valign="bottom" style= "width:61.45pt;border-top:solid windowtext 1.0pt; border-left:none;border-bottom:double windowtext 2.25pt;border-right:none; mso-border-top-alt:solid windowtext .5pt;mso-border-bottom-alt:double windowtext 2.25pt; background:white;padding:0in 5.4pt 0in 5.4pt;height:14.25pt">  $7,566 </td> <td width="4" nowrap="nowrap" valign="bottom" style= "width:3.1pt;padding:0in 5.4pt 0in 5.4pt; height:14.25pt">   </td> <td width="82" nowrap="nowrap" valign="bottom" style= "width:61.45pt;border-top:solid windowtext 1.0pt; border-left:none;border-bottom:double windowtext 2.25pt;border-right:none; mso-border-top-alt:solid windowtext .5pt;mso-border-bottom-alt:double windowtext 2.25pt; padding:0in 5.4pt 0in 5.4pt;height:14.25pt">  $9,674 </td> <td width="23" nowrap="nowrap" valign="bottom" style= "width:17.0pt;padding:0in 5.4pt 0in 5.4pt; height:14.25pt">   </td> <td width="90" nowrap="nowrap" valign="bottom" style= "width:67.5pt;border-top:solid windowtext 1.0pt; border-left:none;border-bottom:double windowtext 2.25pt;border-right:none; mso-border-top-alt:solid windowtext .5pt;mso-border-bottom-alt:double windowtext 2.25pt; background:white;padding:0in 5.4pt 0in 5.4pt;height:14.25pt">  $15,136 </td> <td width="4" nowrap="nowrap" valign="bottom" style= "width:3.05pt;padding:0in 5.4pt 0in 5.4pt; height:14.25pt">   </td> <td width="90" nowrap="nowrap" valign="bottom" style= "width:67.5pt;border-top:solid windowtext 1.0pt; border-left:none;border-bottom:double windowtext 2.25pt;border-right:none; mso-border-top-alt:solid windowtext .5pt;mso-border-bottom-alt:double windowtext 2.25pt; padding:0in 5.4pt 0in 5.4pt;height:14.25pt">  $18,569 </td> </tr> <tr style="mso-yfti-irow:10;height:14.25pt"> <td width="307" nowrap="nowrap" valign="bottom" style= "width:230.0pt;padding:0in 5.4pt 0in 5.4pt; height:14.25pt">   </td> <td width="82" nowrap="nowrap" valign="bottom" style= "width:61.45pt;background:white; padding:0in 5.4pt 0in 5.4pt;height:14.25pt">   </td> <td width="4" nowrap="nowrap" valign="bottom" style= "width:3.1pt;padding:0in 5.4pt 0in 5.4pt; height:14.25pt">   </td> <td width="82" nowrap="nowrap" valign="bottom" style= "width:61.45pt;padding:0in 5.4pt 0in 5.4pt; height:14.25pt">   </td> <td width="23" nowrap="nowrap" valign="bottom" style= "width:17.0pt;padding:0in 5.4pt 0in 5.4pt; height:14.25pt">   </td> <td width="90" nowrap="nowrap" valign="bottom" style= "width:67.5pt;background:white; padding:0in 5.4pt 0in 5.4pt;height:14.25pt">   </td> <td width="4" nowrap="nowrap" valign="bottom" style= "width:3.05pt;padding:0in 5.4pt 0in 5.4pt; height:14.25pt">   </td> <td width="90" nowrap="nowrap" valign="bottom" style= "width:67.5pt;padding:0in 5.4pt 0in 5.4pt; height:14.25pt">   </td> </tr> <tr style="mso-yfti-irow:11;height:13.5pt"> <td width="307" nowrap="nowrap" valign="bottom" style= "width:230.0pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="82" nowrap="nowrap" valign="bottom" style= "width:61.45pt;background:white; padding:0in 5.4pt 0in 5.4pt;height:13.5pt">   </td> <td width="4" nowrap="nowrap" valign="bottom" style= "width:3.1pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="82" nowrap="nowrap" valign="bottom" style= "width:61.45pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="23" nowrap="nowrap" valign="bottom" style= "width:17.0pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="90" nowrap="nowrap" valign="bottom" style= "width:67.5pt;background:white; padding:0in 5.4pt 0in 5.4pt;height:13.5pt">   </td> <td width="4" nowrap="nowrap" valign="bottom" style= "width:3.05pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="90" nowrap="nowrap" valign="bottom" style= "width:67.5pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> </tr> <tr style="mso-yfti-irow:12;height:13.5pt"> <td width="307" nowrap="nowrap" valign="bottom" style= "width:230.0pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt"> Segment Profit </td> <td width="82" nowrap="nowrap" valign="bottom" style= "width:61.45pt;background:white; padding:0in 5.4pt 0in 5.4pt;height:13.5pt">   </td> <td width="4" nowrap="nowrap" valign="bottom" style= "width:3.1pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="82" nowrap="nowrap" valign="bottom" style= "width:61.45pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="23" nowrap="nowrap" valign="bottom" style= "width:17.0pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="90" nowrap="nowrap" valign="bottom" style= "width:67.5pt;background:white; padding:0in 5.4pt 0in 5.4pt;height:13.5pt">   </td> <td width="4" nowrap="nowrap" valign="bottom" style= "width:3.05pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="90" nowrap="nowrap" valign="bottom" style= "width:67.5pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> </tr> <tr style="mso-yfti-irow:13;height:13.5pt"> <td width="307" nowrap="nowrap" valign="bottom" style= "width:230.0pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt"> Aerospace </td> <td width="82" nowrap="nowrap" valign="bottom" style= "width:61.45pt;background:white; padding:0in 5.4pt 0in 5.4pt;height:13.5pt">  $  454 </td> <td width="4" nowrap="nowrap" valign="bottom" style= "width:3.1pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="82" nowrap="nowrap" valign="bottom" style= "width:61.45pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">  $  602 </td> <td width="23" nowrap="nowrap" valign="bottom" style= "width:17.0pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="90" nowrap="nowrap" valign="bottom" style= "width:67.5pt;background:white; padding:0in 5.4pt 0in 5.4pt;height:13.5pt">  $   942 </td> <td width="4" nowrap="nowrap" valign="bottom" style= "width:3.05pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="90" nowrap="nowrap" valign="bottom" style= "width:67.5pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">  $ 1,165 </td> </tr> <tr style="mso-yfti-irow:14;height:13.5pt"> <td width="307" nowrap="nowrap" valign="bottom" style= "width:230.0pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt"> Automation and Control Solutions </td> <td width="82" nowrap="nowrap" valign="bottom" style= "width:61.45pt;background:white; padding:0in 5.4pt 0in 5.4pt;height:13.5pt">     346 </td> <td width="4" nowrap="nowrap" valign="bottom" style= "width:3.1pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="82" nowrap="nowrap" valign="bottom" style= "width:61.45pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">     390 </td> <td width="23" nowrap="nowrap" valign="bottom" style= "width:17.0pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="90" nowrap="nowrap" valign="bottom" style= "width:67.5pt;background:white; padding:0in 5.4pt 0in 5.4pt;height:13.5pt">      657 </td> <td width="4" nowrap="nowrap" valign="bottom" style= "width:3.05pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="90" nowrap="nowrap" valign="bottom" style= "width:67.5pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">      718 </td> </tr> <tr style="mso-yfti-irow:15;height:13.5pt"> <td width="307" nowrap="nowrap" valign="bottom" style= "width:230.0pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt"> Specialty Materials </td> <td width="82" nowrap="nowrap" valign="bottom" style= "width:61.45pt;background:white; padding:0in 5.4pt 0in 5.4pt;height:13.5pt">     150 </td> <td width="4" nowrap="nowrap" valign="bottom" style= "width:3.1pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="82" nowrap="nowrap" valign="bottom" style= "width:61.45pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">     186 </td> <td width="23" nowrap="nowrap" valign="bottom" style= "width:17.0pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="90" nowrap="nowrap" valign="bottom" style= "width:67.5pt;background:white; padding:0in 5.4pt 0in 5.4pt;height:13.5pt">      275 </td> <td width="4" nowrap="nowrap" valign="bottom" style= "width:3.05pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="90" nowrap="nowrap" valign="bottom" style= "width:67.5pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">      451 </td> </tr> <tr style="mso-yfti-irow:16;height:13.5pt"> <td width="307" nowrap="nowrap" valign="bottom" style= "width:230.0pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt"> Transportation Systems </td> <td width="82" nowrap="nowrap" valign="bottom" style= "width:61.45pt;background:white; padding:0in 5.4pt 0in 5.4pt;height:13.5pt">      25 </td> <td width="4" nowrap="nowrap" valign="bottom" style= "width:3.1pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="82" nowrap="nowrap" valign="bottom" style= "width:61.45pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">     149 </td> <td width="23" nowrap="nowrap" valign="bottom" style= "width:17.0pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="90" nowrap="nowrap" valign="bottom" style= "width:67.5pt;background:white; padding:0in 5.4pt 0in 5.4pt;height:13.5pt">       22 </td> <td width="4" nowrap="nowrap" valign="bottom" style= "width:3.05pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="90" nowrap="nowrap" valign="bottom" style= "width:67.5pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">      298 </td> </tr> <tr style="mso-yfti-irow:17;height:13.5pt"> <td width="307" nowrap="nowrap" valign="bottom" style= "width:230.0pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt"> Corporate </td> <td width="82" nowrap="nowrap" valign="bottom" style= "width:61.45pt;background:white; padding:0in 5.4pt 0in 5.4pt;height:13.5pt">     (45) </td> <td width="4" nowrap="nowrap" valign="bottom" style= "width:3.1pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="82" nowrap="nowrap" valign="bottom" style= "width:61.45pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">     (49) </td> <td width="23" nowrap="nowrap" valign="bottom" style= "width:17.0pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="90" nowrap="nowrap" valign="bottom" style= "width:67.5pt;background:white; padding:0in 5.4pt 0in 5.4pt;height:13.5pt">      (90) </td> <td width="4" nowrap="nowrap" valign="bottom" style= "width:3.05pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="90" nowrap="nowrap" valign="bottom" style= "width:67.5pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">     (105) </td> </tr> <tr style="mso-yfti-irow:18;height:13.5pt"> <td width="307" nowrap="nowrap" valign="bottom" style= "width:230.0pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">     Total Segment Profit </td> <td width="82" nowrap="nowrap" valign="bottom" style= "width:61.45pt;border-top:solid windowtext 1.0pt; border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none; mso-border-top-alt:solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt; background:white;padding:0in 5.4pt 0in 5.4pt;height:13.5pt">     930 </td> <td width="4" nowrap="nowrap" valign="bottom" style= "width:3.1pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="82" nowrap="nowrap" valign="bottom" style= "width:61.45pt;border-top:solid windowtext 1.0pt; border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none; mso-border-top-alt:solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:13.5pt">   1,278 </td> <td width="23" nowrap="nowrap" valign="bottom" style= "width:17.0pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="90" nowrap="nowrap" valign="bottom" style= "width:67.5pt;border-top:solid windowtext 1.0pt; border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none; mso-border-top-alt:solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt; background:white;padding:0in 5.4pt 0in 5.4pt;height:13.5pt">    1,806 </td> <td width="4" nowrap="nowrap" valign="bottom" style= "width:3.05pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="90" nowrap="nowrap" valign="bottom" style= "width:67.5pt;border-top:solid windowtext 1.0pt; border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none; mso-border-top-alt:solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:13.5pt">    2,527 </td> </tr> <tr style="mso-yfti-irow:19;height:6.95pt"> <td width="307" nowrap="nowrap" valign="bottom" style= "width:230.0pt;padding:0in 5.4pt 0in 5.4pt; height:6.95pt">   </td> <td width="82" nowrap="nowrap" valign="bottom" style= "width:61.45pt;background:white; padding:0in 5.4pt 0in 5.4pt;height:6.95pt">   </td> <td width="4" nowrap="nowrap" valign="bottom" style= "width:3.1pt;padding:0in 5.4pt 0in 5.4pt; height:6.95pt">   </td> <td width="82" nowrap="nowrap" valign="bottom" style= "width:61.45pt;padding:0in 5.4pt 0in 5.4pt; height:6.95pt">   </td> <td width="23" nowrap="nowrap" valign="bottom" style= "width:17.0pt;padding:0in 5.4pt 0in 5.4pt; height:6.95pt">   </td> <td width="90" nowrap="nowrap" valign="bottom" style= "width:67.5pt;background:white; padding:0in 5.4pt 0in 5.4pt;height:6.95pt">   </td> <td width="4" nowrap="nowrap" valign="bottom" style= "width:3.05pt;padding:0in 5.4pt 0in 5.4pt; height:6.95pt">   </td> <td width="90" nowrap="nowrap" valign="bottom" style= "width:67.5pt;padding:0in 5.4pt 0in 5.4pt; height:6.95pt">   </td> </tr> <tr style="mso-yfti-irow:20;height:13.5pt"> <td width="307" valign="bottom" style= "width:230.0pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt"> Other income (expense) (A) </td> <td width="82" nowrap="nowrap" valign="bottom" style= "width:61.45pt;background:white; padding:0in 5.4pt 0in 5.4pt;height:13.5pt">     (60) </td> <td width="4" nowrap="nowrap" valign="bottom" style= "width:3.1pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="82" nowrap="nowrap" valign="bottom" style= "width:61.45pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">      37 </td> <td width="23" nowrap="nowrap" valign="bottom" style= "width:17.0pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="90" nowrap="nowrap" valign="bottom" style= "width:67.5pt;background:white; padding:0in 5.4pt 0in 5.4pt;height:13.5pt">      (68) </td> <td width="4" nowrap="nowrap" valign="bottom" style= "width:3.05pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="90" nowrap="nowrap" valign="bottom" style= "width:67.5pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">       47 </td> </tr> <tr style="mso-yfti-irow:21;height:13.5pt"> <td width="307" valign="bottom" style= "width:230.0pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt"> Interest and other financial charges </td> <td width="82" nowrap="nowrap" valign="bottom" style= "width:61.45pt;background:white; padding:0in 5.4pt 0in 5.4pt;height:13.5pt">    (123) </td> <td width="4" nowrap="nowrap" valign="bottom" style= "width:3.1pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="82" nowrap="nowrap" valign="bottom" style= "width:61.45pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">    (115) </td> <td width="23" nowrap="nowrap" valign="bottom" style= "width:17.0pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="90" nowrap="nowrap" valign="bottom" style= "width:67.5pt;background:white; padding:0in 5.4pt 0in 5.4pt;height:13.5pt">     (240) </td> <td width="4" nowrap="nowrap" valign="bottom" style= "width:3.05pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="90" nowrap="nowrap" valign="bottom" style= "width:67.5pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">     (230) </td> </tr> <tr style="mso-yfti-irow:22;height:13.5pt"> <td width="307" valign="bottom" style= "width:230.0pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt"> Stock compensation expense (B) </td> <td width="82" nowrap="nowrap" valign="bottom" style= "width:61.45pt;background:white; padding:0in 5.4pt 0in 5.4pt;height:13.5pt">     (35) </td> <td width="4" nowrap="nowrap" valign="bottom" style= "width:3.1pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="82" nowrap="nowrap" valign="bottom" style= "width:61.45pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">     (35) </td> <td width="23" nowrap="nowrap" valign="bottom" style= "width:17.0pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="90" nowrap="nowrap" valign="bottom" style= "width:67.5pt;background:white; padding:0in 5.4pt 0in 5.4pt;height:13.5pt">      (77) </td> <td width="4" nowrap="nowrap" valign="bottom" style= "width:3.05pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="90" nowrap="nowrap" valign="bottom" style= "width:67.5pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">      (76) </td> </tr> <tr style="mso-yfti-irow:23;height:13.5pt"> <td width="307" valign="bottom" style= "width:230.0pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt"> Pension and other postretirement </td> <td width="82" nowrap="nowrap" valign="bottom" style= "width:61.45pt;background:white; padding:0in 5.4pt 0in 5.4pt;height:13.5pt">   </td> <td width="4" nowrap="nowrap" valign="bottom" style= "width:3.1pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="82" nowrap="nowrap" valign="bottom" style= "width:61.45pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="23" nowrap="nowrap" valign="bottom" style= "width:17.0pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="90" nowrap="nowrap" valign="bottom" style= "width:67.5pt;background:white; padding:0in 5.4pt 0in 5.4pt;height:13.5pt">   </td> <td width="4" nowrap="nowrap" valign="bottom" style= "width:3.05pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="90" nowrap="nowrap" valign="bottom" style= "width:67.5pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> </tr> <tr style="mso-yfti-irow:24;height:13.5pt"> <td width="307" valign="bottom" style= "width:230.0pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   expense (B) </td> <td width="82" nowrap="nowrap" valign="bottom" style= "width:61.45pt;background:white; padding:0in 5.4pt 0in 5.4pt;height:13.5pt">      58 </td> <td width="4" nowrap="nowrap" valign="bottom" style= "width:3.1pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="82" nowrap="nowrap" valign="bottom" style= "width:61.45pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">     (26) </td> <td width="23" nowrap="nowrap" valign="bottom" style= "width:17.0pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="90" nowrap="nowrap" valign="bottom" style= "width:67.5pt;background:white; padding:0in 5.4pt 0in 5.4pt;height:13.5pt">        3 </td> <td width="4" nowrap="nowrap" valign="bottom" style= "width:3.05pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="90" nowrap="nowrap" valign="bottom" style= "width:67.5pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">      (53) </td> </tr> <tr style="mso-yfti-irow:25;height:13.5pt"> <td width="307" valign="bottom" style= "width:230.0pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt"> Repositioning and other charges (B) </td> <td width="82" nowrap="nowrap" valign="bottom" style= "width:61.45pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; background:white;padding:0in 5.4pt 0in 5.4pt;height:13.5pt">    (144) </td> <td width="4" nowrap="nowrap" valign="bottom" style= "width:3.1pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="82" nowrap="nowrap" valign="bottom" style= "width:61.45pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:13.5pt">    (150) </td> <td width="23" nowrap="nowrap" valign="bottom" style= "width:17.0pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="90" nowrap="nowrap" valign="bottom" style= "width:67.5pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; background:white;padding:0in 5.4pt 0in 5.4pt;height:13.5pt">     (255) </td> <td width="4" nowrap="nowrap" valign="bottom" style= "width:3.05pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="90" nowrap="nowrap" valign="bottom" style= "width:67.5pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:13.5pt">     (347) </td> </tr> <tr style="mso-yfti-irow:26;height:6.95pt"> <td width="307" valign="bottom" style= "width:230.0pt;padding:0in 5.4pt 0in 5.4pt; height:6.95pt">   </td> <td width="82" nowrap="nowrap" valign="bottom" style= "width:61.45pt;background:white; padding:0in 5.4pt 0in 5.4pt;height:6.95pt">   </td> <td width="4" nowrap="nowrap" valign="bottom" style= "width:3.1pt;padding:0in 5.4pt 0in 5.4pt; height:6.95pt">   </td> <td width="82" nowrap="nowrap" valign="bottom" style= "width:61.45pt;padding:0in 5.4pt 0in 5.4pt; height:6.95pt">   </td> <td width="23" nowrap="nowrap" valign="bottom" style= "width:17.0pt;padding:0in 5.4pt 0in 5.4pt; height:6.95pt">   </td> <td width="90" nowrap="nowrap" valign="bottom" style= "width:67.5pt;background:white; padding:0in 5.4pt 0in 5.4pt;height:6.95pt">   </td> <td width="4" nowrap="nowrap" valign="bottom" style= "width:3.05pt;padding:0in 5.4pt 0in 5.4pt; height:6.95pt">   </td> <td width="90" nowrap="nowrap" valign="bottom" style= "width:67.5pt;padding:0in 5.4pt 0in 5.4pt; height:6.95pt">   </td> </tr> <tr style="mso-yfti-irow:27;height:14.25pt"> <td width="307" valign="bottom" style= "width:230.0pt;padding:0in 5.4pt 0in 5.4pt; height:14.25pt"> Income before taxes </td> <td width="82" nowrap="nowrap" valign="bottom" style= "width:61.45pt;border:none; border-bottom:double windowtext 2.25pt;background:white;padding:0in 5.4pt 0in 5.4pt; height:14.25pt">  $  626 </td> <td width="4" nowrap="nowrap" valign="bottom" style= "width:3.1pt;padding:0in 5.4pt 0in 5.4pt; height:14.25pt">   </td> <td width="82" nowrap="nowrap" valign="bottom" style= "width:61.45pt;border:none; border-bottom:double windowtext 2.25pt;padding:0in 5.4pt 0in 5.4pt; height:14.25pt">  $  989 </td> <td width="23" nowrap="nowrap" valign="bottom" style= "width:17.0pt;padding:0in 5.4pt 0in 5.4pt; height:14.25pt">   </td> <td width="90" nowrap="nowrap" valign="bottom" style= "width:67.5pt;border:none;border-bottom: double windowtext 2.25pt;background:white;padding:0in 5.4pt 0in 5.4pt; height:14.25pt">  $ 1,169 </td> <td width="4" nowrap="nowrap" valign="bottom" style= "width:3.05pt;padding:0in 5.4pt 0in 5.4pt; height:14.25pt">   </td> <td width="90" nowrap="nowrap" valign="bottom" style= "width:67.5pt;border:none;border-bottom: double windowtext 2.25pt;padding:0in 5.4pt 0in 5.4pt;height:14.25pt">  $ 1,868 </td> </tr> <tr style="mso-yfti-irow:28;height:6.0pt"> <td width="307" nowrap="nowrap" valign="bottom" style= "width:230.0pt;padding:0in 5.4pt 0in 5.4pt; height:6.0pt">   </td> <td width="82" nowrap="nowrap" valign="bottom" style= "width:61.45pt;padding:0in 5.4pt 0in 5.4pt; height:6.0pt">   </td> <td width="4" nowrap="nowrap" valign="bottom" style= "width:3.1pt;padding:0in 5.4pt 0in 5.4pt; height:6.0pt">   </td> <td width="82" nowrap="nowrap" valign="bottom" style= "width:61.45pt;padding:0in 5.4pt 0in 5.4pt; height:6.0pt">   </td> <td width="23" nowrap="nowrap" valign="bottom" style= "width:17.0pt;padding:0in 5.4pt 0in 5.4pt; height:6.0pt">   </td> <td width="90" nowrap="nowrap" valign="bottom" style= "width:67.5pt;padding:0in 5.4pt 0in 5.4pt; height:6.0pt">   </td> <td width="4" nowrap="nowrap" valign="bottom" style= "width:3.05pt;padding:0in 5.4pt 0in 5.4pt; height:6.0pt">   </td> <td width="90" nowrap="nowrap" valign="bottom" style= "width:67.5pt;padding:0in 5.4pt 0in 5.4pt; height:6.0pt">   </td> </tr> <tr style="mso-yfti-irow:29;height:13.5pt"> <td width="307" nowrap="nowrap" valign="bottom" style= "width:230.0pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="82" nowrap="nowrap" valign="bottom" style= "width:61.45pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="4" nowrap="nowrap" valign="bottom" style= "width:3.1pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="82" nowrap="nowrap" valign="bottom" style= "width:61.45pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="23" nowrap="nowrap" valign="bottom" style= "width:17.0pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="90" nowrap="nowrap" valign="bottom" style= "width:67.5pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="4" nowrap="nowrap" valign="bottom" style= "width:3.05pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="90" nowrap="nowrap" valign="bottom" style= "width:67.5pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> </tr> <tr style="mso-yfti-irow:30;height:13.5pt"> <td width="681" nowrap="nowrap" colspan="8" valign="bottom" style= "width:511.05pt; padding:0in 5.4pt 0in 5.4pt;height:13.5pt"> (A)  Equity income/(loss) of affiliated companies is included in Segment Profit. </td> </tr> <tr style="mso-yfti-irow:31;height:12.75pt"> <td width="307" nowrap="nowrap" valign="bottom" style= "width:230.0pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="82" nowrap="nowrap" valign="bottom" style= "width:61.45pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="4" nowrap="nowrap" valign="bottom" style= "width:3.1pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="82" nowrap="nowrap" valign="bottom" style= "width:61.45pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="23" nowrap="nowrap" valign="bottom" style= "width:17.0pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="90" nowrap="nowrap" valign="bottom" style= "width:67.5pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="4" nowrap="nowrap" valign="bottom" style= "width:3.05pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> <td width="90" nowrap="nowrap" valign="bottom" style= "width:67.5pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt">   </td> </tr> <tr style="mso-yfti-irow:32;height:13.5pt"> <td width="681" nowrap="nowrap" colspan="8" valign="bottom" style= "width:511.05pt; padding:0in 5.4pt 0in 5.4pt;height:13.5pt"> (B)  Amounts included in cost of products and services sold and selling, general and </td> </tr> <tr style= "mso-yfti-irow:33;mso-yfti-lastrow:yes;height:13.5pt"> <td width="307" nowrap="nowrap" valign="bottom" style= "width:230.0pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">      administrative expenses. </td> <td width="82" nowrap="nowrap" valign="bottom" style= "width:61.45pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="4" nowrap="nowrap" valign="bottom" style= "width:3.1pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="82" nowrap="nowrap" valign="bottom" style= "width:61.45pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="23" nowrap="nowrap" valign="bottom" style= "width:17.0pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="90" nowrap="nowrap" valign="bottom" style= "width:67.5pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="4" nowrap="nowrap" valign="bottom" style= "width:3.05pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> <td width="90" nowrap="nowrap" valign="bottom" style= "width:67.5pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt">   </td> </tr> </table>      <span style="font-size:12.0pt;mso-bidi-font-size:10.0pt;font-family:Times New Roman,serif; mso-fareast-font-family:Times New Roman;mso-ansi-language:EN-US;mso-fareast-language: EN-US;mso-bidi-language:AR-SA">  <style> /*<![CDATA[*/  /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; 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