XML 136 R27.htm IDEA: XBRL DOCUMENT v2.4.0.6
REDEEMABLE NONCONTROLLING INTEREST
12 Months Ended
Dec. 31, 2012
Temporary Equity Disclosure [Abstract]  
Redeemable Noncontrolling Interest

Note 21. Redeemable Noncontrolling Interest

 

As discussed in Note 2 Acquisitions and Divestitures, on October 22, 2012, the Company acquired a 70 percent controlling interest in Thomas Russell Co. During the calendar year 2016, Honeywell has the right to acquire and the noncontrolling shareholder has the right to sell to Honeywell the remaining 30 percent interest at a price based on a multiple of Thomas Russell Co.'s average annual operating income from 2013 to 2015, subject to a predetermined cap and floor. Additionally, Honeywell has the right to acquire the remaining 30 percent interest for a fixed price equivalent to the cap at any time on or before December 31, 2015. Noncontrolling interests with redemption features, such as the arrangement described above, that are not solely within the Company's control are considered redeemable noncontrolling interests. Redeemable noncontrolling interest is considered temporary equity and is therefore reported outside of permanent equity on the Company's Consolidated Balance Sheet at the greater of the initial carrying amount adjusted for the noncontrolling interest's share of net income (loss) or its redemption value. As of December 31, 2012, the redemption value of the redeemable noncontrolling interest approximated the carrying value.