Honeywell 2010 Annual Report Download - page 66

HONEYWELL INTERNATIONAL INC.
NOTES TO FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)
Recent Accounting Pronouncements—Changes to accounting principles generally accepted in the United States of America (U.S. GAAP) are
established by the Financial Accounting Standards Board (FASB) in the form of accounting standards updates (ASU's) to the FASB's Accounting Standards
Codification.
The Company considers the applicability and impact of all ASU's. ASU's not listed below were assessed and determined to be either not applicable or
are expected to have minimal impact on our consolidated financial position and results of operations.
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 assets and changes the requirements for derecognizing financial assets. The guidance was effective for fiscal
years beginning after November 15, 2009. The implementation of this standard did not have a material impact on our consolidated financial position and
results of operations.
In June 2009, the FASB issued an amendment to the accounting and disclosure requirements for the consolidation of variable interest entities. The
guidance affects the overall consolidation analysis and requires enhanced disclosures on involvement with variable interest entities. The guidance was
effective for fiscal years beginning after November 15, 2009. The implementation of this standard did not have a material impact on our consolidated financial
position and results of operations.
In October 2009, the FASB issued amendments to the accounting and disclosure for revenue recognition. These amendments, effective for fiscal years
beginning on or after June 15, 2010 (early adoption is permitted), modify the criteria for recognizing revenue in multiple element arrangements and the scope
of what constitutes a non-software deliverable. The Company has elected to early adopt this guidance, on a prospective basis for applicable transactions
originating or materially modified after January 1, 2010. The implementation of this amended accounting guidance did not have a material impact on our
consolidated financial position and results of operations in the period of adoption. Adoption impacts in future periods will vary based upon the nature and
volume of new or materially modified transactions but are not expected to have a significant impact on sales.
Note 2—Acquisitions and Divestitures
We acquired businesses for an aggregate cost of $1,303, $468 and $2,181 million in 2010, 2009 and 2008, respectively. For all of our acquisitions the
acquired businesses were recorded at their estimated fair values at the dates of acquisition. Significant acquisitions made in these years are discussed below.
In October 2010, we completed the acquisition of the issued and outstanding shares of Sperian Protection (Sperian), a French company that operates
globally in the personal protection equipment design and manufacturing industry. Sperian had reported 2009 revenues of approximately $900 million.
The aggregate value, net of cash acquired, was approximately $1,475 million (including the assumption of approximately $326 million of outstanding
debt) and was allocated to tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values at the acquisition
date.
The following table summarizes the estimated fair values of the assets and liabilities acquired as of the acquisition date.
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