Honeywell 2008 Annual Report Download - page 86

HONEYWELL INTERNATIONAL INC.
NOTES TO FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)
of operations are included in the consolidated financial statements from the date of acquisition. The results from
the acquisition date through December 31, 2007 are included in the Aerospace segment and were not material to
the consolidated financial statements.
In July 2007, the Company completed the acquisition of Enraf Holding B.V., a provider of comprehensive
solutions for the control and management of transportation, storage and blending operations in the oil and gas
industry, for a purchase price of approximately $264 million, including the assumption of approximately $40
million of debt. 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 $90 million to identifiable intangible assets, predominantly customer relationships,
existing technology and trademarks. The remaining intangible assets are being amortized over their estimated
life of 8-15 years using straight-line and accelerated amortization methods. The value assigned to the trademarks
of approximately $27 million is classified as an indefinite lived intangible. The excess of the purchase price over
the estimated fair values of net assets acquired approximating $167 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 are included in the Automation and
Control Solutions segment and 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 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. During the year, the Company completed the sales of the First Technology Safety &
Analysis business for $93 million and First Technology Automotive for $90 million which were accounted for as
part of the purchase price allocation.
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