Honeywell 2007 Annual Report Download - page 82

HONEYWELL INTERNATIONAL INC.
NOTES TO FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)
the Automation and Control Solutions segment and were not material to the consolidated financial statements.
In December 2007, the Company, specifically the Automation and Control Solutions segment, completed the
acquisition of Maxon Corporation, a leading industrial combustion business, for a purchase price of
approximately $185 million. The purchase price for the acquisition was allocated to the tangible and identifiable
intangible assets acquired and liabilities assumed based on their estimated fair values at acquisition date. The
Company has assigned $88 million to identifiable intangible assets, predominantly customer relationships and
trademarks. These intangible assets are being amortized over their estimated lives which range from 6-10 years
using straight line and accelerated amortization methods. The excess of the purchase price over the estimated
fair values of net assets acquired approximating $92 million, was recorded as goodwill. This goodwill is non-
deductible for tax purposes. This acquisition was accounted for by the purchase method, and, accordingly,
results of operations are included in the consolidated financial statements from the date of acquisition. The
results from the acquisition date through December 31, 2007 were not material to the consolidated financial
statements.
In December 2007, the Company, specifically the Automation and Control Solutions segment, completed the
acquisition of Hand Held Products, Inc. a privately held automatic identification and data collection company, for
a purchase price of approximately $390 million. The purchase price for the acquisition was allocated to the
tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values at
the acquisition date. The Company has assigned $114 million to identifiable intangible assets, predominantly
customer relationships and existing technology. These intangible assets are being amortized over their estimated
lives which range from 6 to 10 years using straight-line and accelerated amortization methods. The excess of the
purchase price over the estimated fair values of net assets acquired approximating $259 million, was recorded as
goodwill. This goodwill is non-deductible for tax purposes. This acquisition was accounted for by the purchase
method, and, accordingly, results of operations are included in the consolidated financial statements from the
date of acquisition. The results from the acquisition date through December 31, 2007 were not material to the
consolidated financial statements.
In May 2006, the Company purchased Gardiner Groupe, a privately held company. The purchase price for
the acquisition was allocated to the tangible and identifiable intangible assets acquired and liabilities assumed
based on their estimated fair values and lives at the acquisition date. The Company has assigned $47 million to
identifiable intangible assets, predominantly customer relationships and trademarks. These intangible assets are
being amortized over their estimated lives which range from 3 to 15 years using straight-line and accelerated
amortization methods. The excess of the purchase price over the estimated fair values of net assets acquired
approximating $130 million, was recorded as goodwill. This goodwill is non-deductible for tax purposes. This
acquisition was accounted for by the purchase method, and, accordingly, results of operations are included in the
consolidated financial statements from the date of acquisition. The results from the acquisition date through
December 31, 2006 are included in the Automation and Control Solutions segment and were not material to the
consolidated financial statements.
In March 2006, the Company purchased First Technology plc, a U.K. publicly listed company. The aggregate
value of the purchase price was $723 million, including the assumption of approximately $217 million of
outstanding debt and $23 million of transaction costs. The purchase price for the acquisition was allocated to the
tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values at
the acquisition date. The Company has assigned $155 million to identifiable intangible assets, predominantly
customer relationships, existing technology and trademarks. These intangible assets are being amortized over
their estimated lives which range from 2 to 15 years using straight-line and accelerated amortization methods.
The excess of the purchase price over the estimated fair values of net assets acquired approximating $432
million, was
58