Combustion Engineering Asbestos Trust Annual Reports, 2010–2025

Combustion Engineering ended 2025 with $385.24 million in net claimants' equity, down $36.32 million from $421.56 million. Investment income of $15.97 million and realized gains of $16.63 million were partly offset by $3.26 million in unrealized losses. Claims expense reached $53.38 million, including a $13.99 million increase in accrued claims and related expenses as annual payment caps delayed payments. Operating expenses and income taxes totaled $12.17 million, including $8.07 million in federal tax expense, up from $2.03 million in 2024; direct investment expenses were $0.66 million. The final plan reserve account release contributed $0.56 million.

The claims narrative reports 30,201 new claims and 14,045 claims paid for $39.39 million; the audited note instead lists 14,046 paid claims, a one-claim discrepancy. The narrative count and $39,387,113 payment total are the basis for the record's average-payment calculation. The report distinguishes the 20% year-end payment percentage from a subsequent reduction to 15.3%, described in an April 1, 2026 notice to the advisory committee and future claimants' representative. That later development is separate from the 2025 results. This summary is based on the report filed April 24, 2026, as Bankruptcy Docket No. 3642.

Combustion Engineering's net claimants' equity declined by $24.15 million in 2024, from $445.72 million to $421.56 million. Investment income of $15.67 million, realized gains of $4.58 million and unrealized gains of $5.01 million generated $25.26 million in additions. Personal-injury claims expense was $43.32 million, operating expenses and income taxes were $5.38 million, and direct investment expenses were $0.72 million. Positive investment results were therefore insufficient to cover claims and other recognized costs.

The trust received 28,869 claims and liquidated and paid 13,350 claims. The claims narrative reports $29.04 million in Category A payments, another $8.65 million in Category A supplemental payments, and $5.68 million in Category B payments. Together these total $43.378 million, compared with audited cash distributions of $43.377 million; the report expressly notes that timing differences can affect these figures. The supplemental distributions are important when interpreting payment totals against paid-claim counts. This summary is based on the report filed April 24, 2025, as Bankruptcy Docket No. 3641.

Combustion Engineering ended 2023 with $445.72 million in net claimants' equity, only $0.18 million below the opening $445.90 million. Investment income of $16.52 million and unrealized gains of $22.36 million were partly offset by $2.27 million in realized losses, $5.99 million in operating expenses and income taxes, and $0.71 million in direct investment expenses. A release of $8.64 million from the plan reserve blocked account and a $0.88 million reduction in the provision for queued claims helped offset $39.60 million in cash distributions.

The trust received 23,949 claims and liquidated and paid 15,013 claims. Payments were $34.08 million on 4,919 Category A claims and $5.52 million on 10,094 Category B claims, net of refunds. Equity was nearly unchanged because investment recovery and the reserve-account release replenished most of the amounts used for claims and expenses. The reserve-account proceeds were a release of existing restricted funds, rather than recurring investment earnings.

Combustion Engineering's net claimants' equity fell by $81.58 million in 2022, from $527.48 million to $445.90 million. Investment income of $13.64 million was outweighed by $46.59 million in unrealized losses and $2.39 million in realized losses. Operating expenses and income taxes totaled $4.52 million, with direct investment expenses of $0.99 million. These results reduced equity by $40.86 million before $39.37 million in cash distributions and a further $1.35 million increase in the provision for claims awaiting payment.

The trust received 20,414 claims and liquidated and paid 14,008 claims. Payments totaled $34.42 million on 4,979 Category A claims and $4.95 million on 9,029 Category B claims, with the latter amount net of refunds. Investment losses were a major driver of the decline, while paid-claim volume and cash distributions also increased from 2021.

Combustion Engineering ended 2021 with $527.48 million in net claimants' equity, a decline of $9.11 million from $536.59 million. Investment income of $12.74 million, realized gains of $5.17 million and unrealized gains of $8.14 million generated $26.05 million in additions. Operating expenses and income taxes of $4.21 million and direct investment expenses of $0.87 million left $20.97 million before claim distributions. Cash distributions of $30.08 million exceeded that amount; the change in the provision for queued claims was minimal.

The trust received 16,052 claims and liquidated and paid 10,566 claims. Payments comprised $26.24 million on 3,521 Category A claims and $3.84 million on 7,045 Category B claims, with the latter amount reported net of refunds. Both the number of claims paid and cash distributions were lower than in 2020. Positive investment results and lower distributions limited the year's decline in equity.

Combustion Engineering's net claimants' equity declined by $23.10 million in 2020, from $559.69 million to $536.59 million. Investment income of $13.84 million, realized gains of $2.40 million and unrealized gains of $15.82 million, together with a $0.61 million federal tax refund, supported the trust. Operating expenses and income taxes totaled $4.96 million, and direct investment expenses were $0.87 million. Cash distributions of $57.34 million exceeded the year's contribution from investments and other income, although a $6.99 million reduction in the provision for queued claims and $0.41 million in insurance-related receipts moderated the decline.

The trust received 19,827 claims and liquidated and paid 19,077 claims. Payments consisted of $48.30 million on 5,217 Category A claims and $9.04 million on 13,860 Category B claims. These categories distinguish malignancy and severe-asbestosis claims from other non-malignancy claims. The reduction in the queued-claim provision increased reported equity without representing additional investment income or new cash received.

Combustion Engineering ended 2019 with $559.69 million in net claimants' equity, down $19.72 million from $579.41 million. Investment income of $18.47 million, realized gains of $1.03 million and unrealized gains of $28.88 million generated strong positive results. After $5.40 million in operating expenses and income taxes and $0.88 million in direct investment expenses, the trust recorded a $42.10 million contribution before claim activity. Insurance and scheme receipts added $2.00 million, while cash distributions of $59.66 million and a $4.16 million increase in the provision for queued claims produced the overall decline.

The trust received 24,256 claims and liquidated and paid 14,813 claims. The report describes the trustees' July 24 decision to adjust the payment percentage to 25%, subject to the required consents, and their application of 25% to determined claims in the payment queue. The trust also reset its payment allocation for the second half of the year. Positive investment performance substantially offset distributions but did not prevent equity from falling.

Combustion Engineering's net claimants' equity fell by $76.58 million in 2018, from $655.98 million to $579.41 million. Investment income of $16.70 million was outweighed by $18.18 million in unrealized losses and $6.99 million in realized losses. Operating expenses and income taxes totaled $5.09 million, with direct investment expenses of $1.08 million. Cash distributions of $70.11 million and a $2.36 million increase in the provision for queued claims further reduced equity, partly offset by $10.54 million in receipts from insurance and scheme payments.

The trust received 25,783 claims and liquidated and paid 16,845 claims. The payment percentage remained at 29%. The maximum annual payment was $58.69 million, with unused funds carried forward from the prior year also available under the payment rules. The year's decline reflected both adverse investment results and continued claims activity, even after the additional insurance-related receipts.

Combustion Engineering ended 2017 with $655.98 million in net claimants' equity, down $18.09 million from $674.08 million. Investment income of $11.55 million, realized gains of $8.81 million, unrealized gains of $24.97 million and a federal tax refund of $3.82 million supported the asset pool. Operating expenses and income taxes were $5.75 million, with $1.49 million in direct investment expenses. The resulting $41.92 million contribution before claim activity, together with a $4.95 million reduction in the provision for queued claims, partially offset $64.96 million in cash distributions.

The trust reported 21,008 new claims and 14,186 claims liquidated and paid. The payment percentage remained at 29%, and the maximum annual payment was $72.75 million before applicable carryovers. Investment gains and the release of previously accrued claim amounts substantially moderated the decline, but year-end equity still fell because distributions exceeded those sources of support.

Combustion Engineering's net claimants' equity declined by $66.47 million in 2016, from $740.55 million to $674.08 million. Investment income of $27.97 million and unrealized gains of $20.34 million were partly offset by $26.17 million in realized losses. Operating expenses and income taxes were $5.16 million, and direct investment expenses were $1.48 million. The resulting $15.52 million contribution before claim activity did not cover $79.95 million in cash distributions and a $2.04 million increase in the provision for claims awaiting payment.

The trust received 30,417 claims and liquidated and paid 16,160 claims. The payment percentage applied during the year was 29%. The report notes that category payments included supplemental amounts for claimants previously paid at a lower percentage, bringing their recoveries to the 29% level. Those supplemental payments are part of the year's distribution activity and should not be interpreted as payments solely on newly resolved claims.

Combustion Engineering ended 2014 with $786.16 million in net claimants' equity, down $79.04 million from $865.20 million. Investment income of $35.27 million and realized gains of $10.65 million were partly offset by $7.85 million in unrealized investment losses. Operating expenses and income taxes totaled $5.67 million, with another $1.71 million in direct investment expenses. These results provided $30.68 million before claim activity, but recognized claim distributions of $110.20 million exceeded that contribution.

The trust received 20,176 claims and reported 24,396 claims liquidated and paid for approximately $113.30 million. Audited cash distributions were also approximately $113.30 million, exceeding recognized distributions as some previously accrued obligations were paid. The payment percentage applied to claims paid during 2014 was 33%, and the maximum annual payment was $113.30 million. Paid claims exceeded new filings during the year, although those groups include claims originating in different periods.

Combustion Engineering's net claimants' equity fell by $85.80 million in 2013, from $951.00 million to $865.20 million. Investment income of $36.51 million and realized gains of $12.81 million were offset in part by $24.42 million in unrealized investment losses, $4.64 million in operating expenses and income taxes, and $2.02 million in direct investment expenses. After other additions of $1.13 million, recognized claim settlements of $105.18 million drove the overall decline.

The trust reported 25,229 new claims and 12,284 claims liquidated and paid for $89.89 million. Audited cash distributions were $89.89 million, while the larger recognized settlement amount included a $15.28 million increase in accrued claims and related expenses. The payment percentage was 44%. The distinction between cash paid and claims recognized is significant: part of the year's reduction in equity related to obligations that remained unpaid at year-end.

Combustion Engineering ended 2012 with $951.00 million in net claimants' equity, a decline of $73.55 million from $1.025 billion. Investment income of $37.46 million and realized gains of $40.15 million were partly offset by a $23.33 million adverse change in unrealized investment values, $4.33 million in operating expenses and income taxes, and $1.47 million in direct investment expenses. The resulting $48.48 million gain before claim activity was insufficient to cover $122.26 million in recognized claim settlements.

The report lists 15,335 claims liquidated and paid for approximately $101.17 million; audited cash distributions were also approximately $101.16 million. The difference from recognized settlements reflects a $21.10 million increase in accrued claims and related expenses, rather than an equivalent amount of additional cash paid during the year. Effective May 1, 2012, the trust reduced its payment percentage from 48.33% to 44%. The year therefore combined continued claim payments with a growing accrued obligation and a lower payment percentage.

Combustion Engineering's net claimants' equity declined by $52.09 million in 2011, from $1.077 billion to $1.025 billion. Investment income of $40.84 million, realized gains of $13.77 million and a small unrealized gain produced $54.67 million in additions before operating expenses and income taxes of $6.03 million. Those positive results were outweighed by $101.00 million in recognized claim distributions, with other additions contributing approximately $0.27 million.

The claims narrative reports 12,730 claims liquidated and paid for approximately $101.00 million. The audited cash-flow statement records $101.85 million in cash distributions, reflecting the settlement of previously accrued claims and related expenses as well as current-year activity. The payment percentage remained at 48.33%, and the report states that all liquidated claims in the payment queue during the year were paid. Investment earnings helped fund distributions but did not fully replace the amounts recognized for claims.

Combustion Engineering ended 2010 with $1.077 billion in net claimants' equity, down $37.00 million from $1.114 billion. Investment income of $40.46 million and unrealized gains of $7.14 million were partly offset by $2.14 million in realized investment losses and $5.85 million in operating expenses and income taxes. After $1.12 million in other additions and $77.73 million in recognized claim distributions, equity finished below its opening level despite positive investment results.

The claims narrative reports 109,893 new claims and 6,594 claims liquidated and paid for $77.69 million. The audited cash-flow statement separately records $76.88 million in cash distributions, while the equity statement recognizes $77.73 million; these are different reporting measures and should not be treated as interchangeable. The payment percentage remained at 48.33%. The report states that all liquidated Category A and Category B claims in the payment queue during the year were paid.