Honeywell 2009 Annual Report Download - page 82

HONEYWELL INTERNATIONAL INC.
NOTES TO FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)
impact on our consolidated financial position and results of operations. However, if the Company enters into any
business combinations after the adoption of the new guidance on business combinations, 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 prior GAAP requirements, due to the changes described
above.
In April 2009, the FASB issued a staff position amending and clarifying the new business combination
standard to address application issues associated with initial recognition and measurement, subsequent
measurement and accounting, and disclosure of assets and liabilities arising from contingencies in a business
combination. The staff position is effective for assets or liabilities arising from contingencies in business
combinations for which the acquisition date is on or after the beginning of the first annual reporting period
beginning on or after December 15, 2008. 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 new guidance on noncontrolling interests which 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. The new guidance 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. Upon adoption of the new
guidance on noncontrolling interest the Company reclassified $82 million and $71 million of noncontrolling
interest from other liabilities to noncontrolling interest as a separate component of shareholders equity in our
consolidated balance sheet as of December 31, 2008 and 2007, respectively and $20 million and $16 million of
noncontrolling interest expense to net income attributable to noncontrolling interest in our statement of operations
for the years ended December 31, 2008 and 2007, respectively. See statement of shareholders' equity for
additional disclosures regarding noncontrolling interest components of other comprehensive income. The
implementation of this standard did not have a material impact on our consolidated financial position and results
of operations.
In November 2008, the FASB ratified an issue providing guidance for accounting for defensive intangible
assets subsequent to their acquisition in accordance with the new business combination and fair value
standards, including the estimated useful life that should be assigned to such assets. The new guidance is
effective for intangible assets acquired on or after the beginning of the first annual reporting period beginning on
or after December 15, 2008. The implementation of this standard did not have a material impact on our
consolidated financial position and results of operations.
In April 2009, the FASB issued a staff position which changes the method for determining whether an other-
than-temporary impairment exists for debt securities and the amount of the impairment to be recorded in
earnings. The guidance is effective for interim and annual periods ending after June 15, 2009. The
implementation of this standard did not have a material impact on our consolidated financial position and results
of operations.
In May 2009, the FASB issued new guidance on subsequent events. The standard provides guidance on
management's assessment of subsequent events and incorporates this guidance into accounting literature. The
standard is effective prospectively for interim and annual periods ending after June 15, 2009. The implementation
of this standard did not have a material impact on our consolidated financial position and results of operations.
The Company has evaluated subsequent events through February 12, 2010, the date of issuance of our
consolidated financial statements.
In June 2009, the FASB issued an amendment to the accounting and disclosure requirements for transfers of
financial assets. The guidance requires additional disclosures for transfers of financial
59