Honeywell 2008 Annual Report Download - page 81

HONEYWELL INTERNATIONAL INC.
NOTES TO FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)
fair value option has been elected are reported in earnings. SFAS No. 159 is effective for fiscal years beginning
after November 15, 2007. The implementation of this standard did not have a material impact on our
consolidated financial position and results of operations.
In March 2007, the FASB ratified Emerging Issues Task Force ("EITF") Issue No. 06-10 "Accounting for
Collateral Assignment Split-Dollar Life Insurance Agreements" (EITF 06-10). EITF 06-10 provides guidance for
determining a liability for postretirement benefit obligations as well as recognition and measurement of the
associated asset on the basis of the terms of the collateral assignment agreement. EITF 06-10 is effective for
fiscal years beginning after December 15, 2007. The implementation of this standard did not have a material
impact on our consolidated financial position and results of operations.
In June 2007, the FASB ratified EITF 06-11 "Accounting for the Income Tax Benefits of Dividends on Share-
Based Payment Awards" (EITF 06-11). EITF 06-11 provides that tax benefits associated with dividends on share-
based payment awards be recorded as a component of additional paid-in capital. EITF 06-11 is effective, on a
prospective basis, for fiscal years beginning after December 15, 2007. The implementation of this standard did
not have a material impact on our consolidated financial position and results of operations.
In December 2007, the FASB issued SFAS No. 141 (revised 2007), "Business Combinations" (SFAS No.
141R). SFAS No. 141R provides revised guidance on how acquirers recognize and measure the consideration
transferred, identifiable assets acquired, liabilities assumed, contingencies, 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 will 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 existing GAAP requirements, due to the changes described above.
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. 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. 133 Accounting for Derivative Instruments and Hedging
Activities (SFAS No. 133), Implementation Issue No. E23, "Hedging—General: Issues Involving the Application of
the Shortcut Method under Paragraph 68" (Issue E23). Issue E23 amends SFAS 133 to explicitly permit use of
the shortcut method for hedging relationships in which interest rate swaps have nonzero fair value at the
inception of the hedging relationship, provided certain conditions are met. Issue E23 was effective for hedging
relationships designated on or after January 1, 2008. The implementation of this guidance 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
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