Honeywell 2012 Annual Report Download - page 76

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In May 2011, the FASB issued amendments to disclosure requirements for common fair value
measurement. These amendments, effective for the interim and annual periods beginning on or after
December 15, 2011 (early adoption is prohibited), result in a common definition of fair value and
common requirements for measurement of and disclosure requirements between U.S. GAAP and
International Financial Reporting Standards. Consequently, the amendments change some fair value
measurement principles and disclosure requirements. The implementation of the amended accounting
guidance has not had a material impact on our consolidated financial position or results of operations.
In June 2011, the FASB issued amendments to disclosure requirements for presentation of
comprehensive income. This guidance, effective retrospectively for the interim and annual periods
beginning on or after December 15, 2011 (early adoption is permitted), requires presentation of total
comprehensive income, the components of net income, and the components of other comprehensive
income either in a single continuous statement of comprehensive income or in two separate but
consecutive statements. In December 2011, the FASB issued an amendment to defer the presentation
on the face of the financial statements the effects of reclassifications out of accumulated other
comprehensive income on the components of net income and other comprehensive income for annual
and interim financial statements. The implementation of the amended accounting guidance has not had
a material impact on our consolidated financial position or results of operations. In February 2013, the
FASB issued amendments to disclosure requirements for presentation of comprehensive income. The
standard requires presentation (either in a single note or parenthetically on the face of the financial
statements) of the effect of significant amounts reclassified from each component of accumulated other
comprehensive income based on its source and the income statement line items affected by the
reclassification. If a component is not required to be reclassified to net income in its entirety, a cross
reference to the related footnote for additional information will be required. The amendments are
effective prospectively for reporting periods beginning after December 15, 2012 (early adoption is
permitted). The implementation of the amended accounting guidance is not expected to have a
material impact on our consolidated financial position or results of operations.
In September 2011, the FASB issued amendments to the goodwill impairment guidance which
provides an option for companies to use a qualitative approach to test goodwill for impairment if certain
conditions are met. The amendments are effective for annual and interim goodwill impairment tests
performed for fiscal years beginning after December 15, 2011 (early adoption is permitted). The
implementation of the amended accounting guidance has not had a material impact on our
consolidated financial position or results of operations.
In July 2012, the FASB issued amendments to the indefinite-lived intangible asset impairment
guidance which provides an option for companies to use a qualitative approach to test indefinite-lived
intangible assets for impairment if certain conditions are met. The amendments are effective for annual
and interim indefinite-lived intangible asset impairment tests performed for fiscal years beginning after
September 15, 2012 (early adoption is permitted). The implementation of the amended accounting
guidance is not expected to have a material impact on our consolidated financial position or results of
operations.
Note 2—Acquisitions and Divestitures
Acquisitions—We acquired businesses for an aggregate cost (net of cash acquired) of $438,
$973, and $1,303 million in 2012, 2011 and 2010, 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 December 2012, the Company entered into a definitive agreement to acquire Intermec, Inc.
(Intermec) a leading provider of mobile computing, radio frequency identification solutions (RFID) and
bar code, label and receipt printers for use in warehousing, supply chain, field service and
manufacturing environments for $10 per share in cash, or an aggregate purchase price of
67
HONEYWELL INTERNATIONAL INC.
NOTES TO FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)