Honeywell 2008 Annual Report Download - page 85

HONEYWELL INTERNATIONAL INC.
NOTES TO FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)
In July 2008, the Company completed the acquisition of Metrologic Instruments, Inc. (Metrologic), a leading
manufacturer of data capture and collection hardware and software, for a purchase price of approximately $715
million, net of cash acquired. 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 $248 million to identifiable intangible assets, predominantly customer relationships,
technology and trademarks. These intangible assets are being amortized over their estimated lives which range
from 1-15 years using straight line and accelerated amortization methods. The excess of the purchase price over
the estimated fair values of net assets acquired (approximately $440 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, 2008, are included in 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 $70 million to identifiable intangible assets, predominantly customer relationships and
trademarks. These intangible assets are being amortized over their estimated lives which range from 7-20 years
using straight line and accelerated amortization methods. The value assigned to the trade marks of
approximately $10 million is classified as an indefinite lived intangible. The excess of the purchase price over the
estimated fair values of net assets acquired approximating $114 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 $101 million to identifiable intangible assets, predominantly
customer relationships and existing technology. These intangible assets are being amortized over their estimated
lives which range from 1 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 $257 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 July 2007, the Company completed the acquisition of Dimensions International, a defense logistics
business, for a purchase price of approximately $233 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 $21 million to identifiable intangible
assets, predominantly contractual relationships. These intangible assets are being amortized over their estimated
life of 5 years using straight-line and accelerated amortization methods. The excess of the purchase price over
the estimated fair values of net assets acquired approximating $183 million, was recorded as goodwill. Goodwill
will be deducted over a 15 year period for tax purposes. This acquisition was accounted for by the purchase
method, and, accordingly, results
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