Statement Of Financial Position
Statement Of Financial Position Classified (USD $) | ||
In Thousands | Oct. 02, 2009
| Dec. 31, 2008
|
Current Assets: | ||
Cash and equivalents | $1,636,231 | $392,854 |
Trade accounts receivable, net | 1,836,255 | 1,894,585 |
Inventories: | ||
Finished goods | 499,170 | 543,996 |
Work in process | 201,907 | 211,353 |
Raw material and supplies | 370,353 | 386,960 |
Total inventories | 1,071,430 | 1,142,309 |
Prepaid expenses and other current assets | 654,868 | 757,371 |
Total current assets | 5,198,784 | 4,187,119 |
Property, plant and equipment, net of accumulated depreciation of $1,607,840 and $1,483,202, respectively | 1,097,424 | 1,108,653 |
Other assets | 678,338 | 464,353 |
Goodwill | 9,633,448 | 9,210,581 |
Other intangible assets, net | 2,553,913 | 2,519,422 |
Total assets | 19,161,907 | 17,490,128 |
Current Liabilities: | ||
Notes payable and current portion of long-term debt | 50,714 | 66,159 |
Trade accounts payable | 973,155 | 1,108,961 |
Accrued expenses | 1,654,482 | 1,569,977 |
Total current liabilities | 2,678,351 | 2,745,097 |
Other long-term liabilities | 2,373,530 | 2,383,299 |
Long-term debt | 2,899,497 | 2,553,170 |
Stockholders' Equity: | ||
Common stock - $0.01 par value | 3,571 | 3,544 |
Additional paid-in capital | 1,976,451 | 1,812,963 |
Retained earnings | 8,951,148 | 8,095,155 |
Accumulated other comprehensive income (loss) | 279,359 | (103,100) |
Total stockholders' equity | 11,210,529 | 9,808,562 |
Total liabilities and stockholders' equity | $19,161,907 | $17,490,128 |
1_Statement Of Financial Positi
Statement Of Financial Position Classified (Parenthetical) (USD $) | ||
In Thousands, except Per Share data | Oct. 02, 2009
| Dec. 31, 2008
|
Property, plant and equipment, accumulated depreciation | $1,607,840 | $1,483,202 |
Common stock, par value | 0.01 | 0.01 |
Statement Of Income Alternative
Statement Of Income Alternative (USD $) | ||||
In Thousands, except Per Share data | 3 Months Ended
Oct. 02, 2009 | 3 Months Ended
Sep. 26, 2008 | 9 Months Ended
Oct. 02, 2009 | 9 Months Ended
Sep. 26, 2008 |
Sales | $2,750,693 | $3,208,181 | $8,052,046 | $9,520,950 |
Operating costs and expenses: | ||||
Cost of sales | 1,429,736 | 1,697,611 | 4,210,211 | 5,032,365 |
Selling, general and administrative expenses | 782,438 | 806,424 | 2,299,756 | 2,484,783 |
Research and development expenses | 159,040 | 182,006 | 478,435 | 557,976 |
Other (income) expense | (85,118) | 0 | (85,118) | 0 |
Total operating expenses | 2,286,096 | 2,686,041 | 6,903,284 | 8,075,124 |
Operating profit | 464,597 | 522,140 | 1,148,762 | 1,445,826 |
Interest expense | (31,842) | (30,218) | (87,228) | (104,741) |
Interest income | 1,594 | 1,070 | 3,385 | 6,004 |
Earnings before income taxes | 434,349 | 492,992 | 1,064,919 | 1,347,089 |
Income taxes | (82,986) | (121,000) | (180,150) | (335,144) |
Net earnings | $351,363 | $371,992 | $884,769 | $1,011,945 |
Net earnings per share: | ||||
Basic | 1.09 | 1.16 | 2.78 | 3.17 |
Diluted | 1.05 | 1.11 | 2.66 | 3.03 |
Average common stock and common equivalent shares outstanding: | ||||
Basic | 321,093 | 319,887 | 318,519 | 319,307 |
Diluted | 336,268 | 337,334 | 334,763 | 336,619 |
Statement Of Shareholders Equit
Statement Of Shareholders Equity And Other Comprehensive Income (USD $) | ||||||
In Thousands | Common Stock Par Value
| Additional Paid-In Capital
| Retained Earnings
| Accumulated Other Comprehensive Income (Loss)
| Total
| |
Beginning Balance at Dec. 31, 2008 | $3,544 | $1,812,963 | $8,095,155 | ($103,100) | $9,808,562 | |
Beginning Balance at Dec. 31, 2008 | 354,487 | |||||
Net income | 884,769 | 884,769 | ||||
Dividends declared | (28,776) | |||||
Common stock based award activity | 2,620 | |||||
Common stock based award activity | 27 | 163,488 | ||||
Increase from translation of foreign financial statements | 348,306 | |||||
Unrealized gain on available-for-sale securities (net of $18.4 million tax expense) | 34,153 | |||||
Ending Balance at Oct. 02, 2009 | 357,107 | |||||
Ending Balance at Oct. 02, 2009 | $3,571 | $1,976,451 | $8,951,148 | $279,359 | $11,210,529 |
2_Statement Of Shareholders Equ
Statement Of Shareholders Equity And Other Comprehensive Income (Parenthetical) (USD $) | ||
In Millions | Accumulated Other Comprehensive Income (Loss)
| Comprehensive Income
|
Unrealized gain on available-for-sale securities, tax | 18.4 | 18.4 |
Statement Of Cash Flows Indirec
Statement Of Cash Flows Indirect (USD $) | ||
In Thousands | 9 Months Ended
Oct. 02, 2009 | 9 Months Ended
Sep. 26, 2008 |
Cash flows from operating activities: | ||
Net earnings | $884,769 | $1,011,945 |
Non-cash items: | ||
Depreciation | 138,506 | 145,124 |
Amortization | 113,891 | 109,932 |
Stock compensation expense | 66,924 | 64,019 |
Consideration received in shares | (84,749) | 0 |
Change in trade accounts receivable, net | 145,814 | (82,293) |
Change in inventories | 112,590 | (64,115) |
Change in accounts payable | (146,746) | 14,389 |
Change in prepaid expenses and other assets | 108,591 | 143,913 |
Change in accrued expenses and other liabilities | (34,098) | 6,759 |
Net cash flows from operating activities | 1,305,492 | 1,349,673 |
Cash flows from investing activities: | ||
Payments for additions to property, plant and equipment | (115,414) | (118,180) |
Proceeds from disposals of property, plant and equipment | 3,387 | 916 |
Cash paid for other investments | (50,768) | 0 |
Cash paid for acquisitions | (281,369) | (241,193) |
Proceeds from refundable escrowed purchase price | 0 | 48,504 |
Net cash used in investing activities | (444,164) | (309,953) |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock | 96,591 | 72,193 |
Payment of dividends | (28,776) | (28,708) |
Net repayments of borrowings (maturities of 90 days or less) | (457,095) | (1,073,142) |
Proceeds of borrowings (maturities longer than 90 days) | 744,615 | 48,426 |
Repayments of borrowings (maturities longer than 90 days) | (6,827) | (10,172) |
Net cash provided by (used in) financing activities | 348,508 | (991,403) |
Effect of exchange rate changes on cash and equivalents | 33,541 | (906) |
Net change in cash and equivalents | 1,243,377 | 47,411 |
Beginning balance of cash and equivalents | 392,854 | 239,108 |
Ending balance of cash and equivalents | 1,636,231 | 286,519 |
Supplemental disclosures: | ||
Cash interest payments | 86,185 | 59,973 |
Cash income tax payments | $159,593 | $253,281 |
NOTE 1. GENERAL
NOTE 1. GENERAL | |
9 Months Ended
Oct. 02, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
NOTE 1. GENERAL | NOTE 1. GENERAL The consolidated condensed financial statements included herein have been prepared by Danaher Corporation (the Company) without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to such rules and regulations; however, the Company believes that the disclosures are adequate to make the information presented not misleading. The condensed financial statements included herein should be read in conjunction with the financial statements and the notes thereto included in the Companys Annual Report on Form 10-K for the year ended December31, 2008 (the 2008 Annual Report on Form 10-K). In the opinion of the registrant, the accompanying financial statements contain all adjustments (consisting of only normal recurring accruals) necessary to present fairly the financial position of the Company at October2, 2009 and December31, 2008, and its results of operations and cash flows for the three and nine months ended October2, 2009 and September26, 2008. Effective January1, 2009, the Company adopted new accounting standards related to accounting for and presentation of non-controlling interests in the financial statements. The adoption of this new standard did not impact the Company as non-controlling interests included in the Companys consolidated financial statements are not significant. Total comprehensive income was as follows ($ in millions): October2,2009 September26,2008 Three Months Ended $ 547 $ 57 Nine Months Ended 1,267 984 Total comprehensive income for the first nine months of 2009 includes the change in cumulative foreign translation adjustment associated with the translation of foreign subsidiary financial statements into U.S. dollars, as well as unrealized gains associated with marketable securities available-for-sale and open foreign currency forward contracts that qualify for hedge accounting. Refer to Note 7 for discussion of these forward contracts. As of October2, 2009, the Company had investments in available-for-sale equity securities with an aggregate cost basis of $135 million and an aggregate fair value of $187 million. Through October2, 2009, unrealized gains of approximately $52 million ($34 million net of tax) associated with these available-for-sale securities have been reflected in other comprehensive income. Total comprehensive income for the first nine months of 2008 includes the change in cumulative foreign translation adjustment as well as the cumulative impact of the change in the measurement date for post-employment benefit obligations. Refer to Notes 1 and 9 in the 2008 Annual Report on Form 10-K for further information related to the change in the measurement date. The Company has evaluated subsequent events through October21, 2009 for recording or disclosure in these financial statements. |
NOTE 2. ACQUISITIONS
NOTE 2. ACQUISITIONS | |
9 Months Ended
Oct. 02, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
NOTE 2. ACQUISITIONS | NOTE 2. ACQUISITIONS The Company continually evaluates potential acquisitions that either strategically fit with the Companys existing portfolio or expand the Companys portfolio into a new and attractive business area. The Company has completed a number of acquisitions that have been accounted for as purchases and have resulted in the recognition of goodwill in the Companys financial statements. This goodwill arises because the purchase prices for these businesses reflect a number of factors including the future earnings and cash flow potential of these businesses; the multiple to earnings, cash flow and other factors at which similar businesses have been purchased by other acquirers; the competitive nature of the process by which the Company acquired the business; and the complementary strategic fit and resulting synergies these businesses bring to existing operations. The Company makes an initial allocation of the purchase price at the date of acquisition based upon its understanding of the fair market value of the acquired assets and assumed liabilities. The Company obtains this information during due diligence and through other sources. In the months after closing, as the Company obtains additional information about these assets and liabilities, including through tangible and intangible asset appraisals, and learns more about the newly acquired business, it is able to refine the estimates of fair market value and more accurately allocate the purchase price. Only items identified as of the acquisition date are considered for subsequent adjustment. The Company is continuing to evaluate certain pre-acquisition contingencies associated with certain of its 2008 and 2009 acquisitions and is in the process of obtaining valuations of acquired intangible assets and certain acquisition related liabilities in connection with its 2009 acquisitions. The Company will make appropriate adjustments to the purchase price allocation prior to completion of the measurement period, as required. The following briefly describes the Companys acquisition activity for the nine months ended October2, 2009. For a complete description of the Companys acquisition and divestiture activity for the year ended December31, 2008, please refer to Note 2 to the Consolidated Financial Statements included in the 2008 Annual Report on Form 10-K. During the first nine months of 2009, the Company completed the acquisition of nine businesses for total consideration of approximately $281 million in cash, net of cash acquired. The businesses acquired manufacture instrumentation and/or supply products and services in the test and measurement, environmental, product identification, dental and sensors and controls markets and had annual aggregate sales of approximately $180 million based on the acquired business revenues in their respective last completed fiscal year. These companies were acquired to complement existing units of the Professional Instrumentation, Medical Technologies and Industrial Technologies segments. The Company preliminarily recorded an aggregate of $185 million of goodwill related to these acquisitions. The following table summarizes the aggregate estim |
NOTE 3. INCOME TAXES
NOTE 3. INCOME TAXES | |
9 Months Ended
Oct. 02, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
NOTE 3. INCOME TAXES | NOTE 3. INCOME TAXES The global nature of the Companys operations results in the Company filing numerous consolidated and separate income tax returns in the United States Federal jurisdiction and in many state and non-U.S. jurisdictions. As a result, the Company and its subsidiaries are routinely examined by various taxing authorities throughout the world. With few exceptions, the Company is no longer subject to U.S. Federal income tax examinations for years before 2006 and is no longer subject to state, local and non-U.S. income tax examinations by tax authorities for years before 2002. The Company assesses uncertain tax positions in accordance with income tax accounting standards. As indicated in the Companys 2008 Annual Report on Form 10-K, management estimated that it was reasonably possible unrecognized tax benefits related to uncertain tax positions may be recognized in 2009 as a result of resolution of worldwide tax matters, tax audit settlements and/or statute expirations. During the second and third quarters of 2009, the Company recognized tax benefits associated with certain international and domestic tax positions being resolved in its favor and the lapse of statutes of limitations. The impacts of the favorable resolutions have been treated as discrete items in the periods they were resolved and reduced the provision for income taxes by approximately $37 million (or $0.11 per diluted share) and $97 million (or $0.29 per diluted share) during the three and nine month periods ended October2, 2009, respectively. |
NOTE 4. STOCK-BASED COMPENSATIO
NOTE 4. STOCK-BASED COMPENSATION | |
9 Months Ended
Oct. 02, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
NOTE 4. STOCK-BASED COMPENSATION | NOTE 4. STOCK-BASED COMPENSATION Stock options and restricted stock units (RSUs) have been issued to directors, officers and other employees under the Companys 1998 Stock Option Plan and the 2007 Stock Incentive Plan, and RSUs have been issued to the Companys CEO pursuant to an award approved by shareholders in 2003. In addition, in connection with the November 2007 Tektronix acquisition, the Company assumed the Tektronix 2005 Stock Incentive Plan and the Tektronix 2002 Stock Incentive Plan (the Tektronix Plans) and assumed certain outstanding stock options, restricted stock and RSUs that had been awarded to Tektronix employees under the plans. These plans operate in a similar manner to the Companys 2007 Stock Incentive Plan and 1998 Stock Option Plan. No further equity awards will be issued under the 1998 Stock Option Plan or the Tektronix Plans. The 2007 Stock Incentive Plan provides for the grant of stock options, stock appreciation rights, RSUs, restricted stock or any other stock based award. In May 2009, the Companys shareholders approved amendments to the 2007 Stock Incentive Plan that, among other items, authorized the issuance of an additional 7million shares pursuant to the Plan bringing the total number of shares authorized for issuance under the Plan to 19 million. No more than 6million of the 19million authorized shares may be granted in any form other than stock options or stock appreciation rights. Stock options granted under the 2007 Stock Incentive Plan, the 1998 Stock Option Plan and the Tektronix Plans generally vest pro-rata over a five-year period and terminate ten years from the issuance date, though the specific terms of each grant are determined by the Compensation Committee of the Companys Board of Directors (Compensation Committee). The Companys executive officers and certain other employees have been awarded options with different vesting criteria. Option exercise prices for options granted by the Company under these plans equal the closing price on the NYSE of the Companys common stock on the date of grant.Option exercise prices for the options outstanding under the Tektronix Plans were based on the closing price of Tektronix common stock on the date of grant. In connection with the Companys assumption of these options, the number of shares underlying each option and exercise price of each option were adjusted to reflect the substitution of Danaher stock for the Tektronix stock underlying these awards. RSUs issued under the 2007 Stock Incentive Plan and the 1998 Stock Option Plan provide for the issuance of a share of the Companys common stock at no cost to the holder.They are generally subject to performance criteria determined by the Compensation Committee, as well as time-based vesting. Most RSU awards granted prior to the third quarter of 2009 vest (subject to satisfaction of the performance criteria) 50% on each of the fourth and fifth anniversaries of the grant date. These vesting terms continue to apply to most RSU awards to senior management. However, for other RSU award recipients who were granted RSU awards during the third quarter of 2009, vesting (subject to satisfaction of the performance crit |
NOTE 5. GOODWILL
NOTE 5. GOODWILL | |
9 Months Ended
Oct. 02, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
NOTE 5. GOODWILL | NOTE 5. GOODWILL The following table shows the rollforward of goodwill reflected in the financial statements resulting from the Companys acquisition activities for the nine months ended October2, 2009 ($ in millions). Balance, December31, 2008 $ 9,211 Attributable to 2009 acquisitions 185 Adjustments to purchase price allocations (14 ) Effect of foreign currency translations 251 Balance, October2, 2009 $ 9,633 Adjustments to purchase price allocations are a result of refinements made to the fair market valuations of intangible and other assets subsequent to the initial allocation of purchase price. The carrying value of goodwill at October2, 2009, for the Professional Instrumentation, Medical Technologies, Industrial Technologies and Tools Components segments is $3,969 million, $3,409 million, $2,061 million, and $194 million, respectively. Goodwill arises from the excess of the purchase price for acquired businesses exceeding the fair value of tangible and intangible assets acquired. Management assesses goodwill for impairment for each of its reporting units at least annually at the beginning of the fourth quarter or as triggering events occur. In making its assessment of goodwill impairment, management relies on a number of factors including operating results, business plans, economic projections, anticipated future cash flows, and transactions and marketplace data. The assessment for one reporting unit was updated as of July3, 2009 due to the comparison of its actual financial performance during the first six months of 2009 to expectations used in the 2008 annual assessment. This updated assessment indicated that no impairment of the reporting units goodwill existed. The factors used by management in its impairment analysis are inherently subject to uncertainty, particularly in light of the recent deterioration in overall global economic conditions and worldwide credit markets. While the Company believes it has made reasonable estimates and assumptions to calculate the fair value of its reporting units, if actual results are not consistent with managements estimates and assumptions, goodwill and other intangible assets may be overstated and a charge would need to be taken against net earnings. |
NOTE 6. FINANCING TRANSACTIONS
NOTE 6. FINANCING TRANSACTIONS | |
9 Months Ended
Oct. 02, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
NOTE 6. FINANCING TRANSACTIONS | NOTE 6. FINANCING TRANSACTIONS The components of the Companys debt as of October2, 2009 and December31, 2008 were as follows ($ in millions): October2,2009 December31,2008 U.S. dollar-denominated commercial paper $ 180 $ 624 4.5% guaranteed Eurobond Notes due July22, 2013 (500 million) 729 699 5.625% notes due 2018 500 500 5.4% notes due 2019 750 Zero coupon Liquid Yield Option Notes due 2021 (LYONs) 631 620 Other borrowings 160 176 Total 2,950 2,619 Less currently payable 51 66 Long-term debt $ 2,899 $ 2,553 For a full description of the Companys debt financing, please refer to Note 8 of the Companys 2008 Annual Report on Form 10-K and the description of the 2019 Notes set forth below. As of October2, 2009, the Companys 5.625% notes due 2018 had an approximate fair value of $549 million and the 5.4% notes due 2019 had an approximate fair value of $811 million. The fair value of the Companys 4.5% guaranteed Eurobond Notes due July22, 2013 approximated its carrying value as of October2, 2009. The Company satisfies its short-term liquidity needs primarily through operating cash flow, available cash and issuances of U.S. dollar and Euro commercial paper. As of October2, 2009, the commercial paper outstanding under the Companys U.S. dollar commercial paper program had a weighted average interest rate of 0.18% and a weighted average maturity of approximately 25 days. There was no outstanding Euro-denominated commercial paper as of October2, 2009. Credit support for the commercial paper program is provided by an unsecured $1.45 billion multicurrency revolving credit facility that expires on April25, 2012 and an unsecured $75 million multicurrency revolving credit facility that expires on May3, 2010. The Company has a shelf registration statement on Form S-3 on file with the SEC that registers an indeterminate amount of debt securities, common stock, preferred stock, warrants, depositary shares, purchase contracts and units for future issuance. In March 2009, the Company used the shelf registration statement to complete an underwritten public offering of $750 million aggregate principal amount of 5.40% senior unsecured notes due 2019. The notes were issued at 99.93% of their principal amount. The net proceeds, after expenses and the underwriters discount, were approximately $745 million. A portion of the net proceeds were used to repay a portion of the Companys outstanding commercial paper with the balance of the net proceeds invested in cash and equivalents and expected to be used for general corporate purposes, which may include acquisitions, further refinancing of debt, working capital, share repurchases and capital expenditures. The Company may redeem the notes at any time prior to their maturity at a redemption price equal to the greater of the principal amount of the notes to be redeemed, or the sum of the present values of the remaining scheduled payments of principal and interest plus 40 basis points. If the Company experiences a change of control and a rating do |
NOTE 7. CONTINGENCIES
NOTE 7. CONTINGENCIES | |
9 Months Ended
Oct. 02, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
NOTE 7. CONTINGENCIES | NOTE 7. CONTINGENCIES For a further description of the Companys litigation and contingencies, reference is made to Note 12 to the Consolidated Financial Statements included in the Companys 2008 Annual Report on Form 10-K. The Company generally accrues estimated warranty costs at the time of sale. In general, manufactured products are warranted against defects in material and workmanship when properly used for their intended purpose, installed correctly, and appropriately maintained. Warranty period terms depend on the nature of the product and range from 90 days up to the life of the product. The amount of the accrued warranty liability is determined based on historical information such as past experience, product failure rates or number of units repaired, estimated cost of material and labor, and in certain instances estimated property damage. The liability, shown in the table below, is reviewed on a quarterly basis and may be adjusted as additional information regarding expected warranty costs becomes known. In certain cases the Company will sell extended warranty or maintenance agreements. The proceeds from these agreements are deferred and recognized as revenue over the term of the agreement. The following is a rollforward of the Companys warranty accrual for the nine months ended October2, 2009 ($ in thousands): Balance, December31, 2008 $ 107,910 Accruals for warranties issued during the period 76,014 Attributable to 2009 acquisitions 2,482 Settlements made (71,327 ) Balance, October2, 2009 $ 115,079 The Company selectively uses derivative financial instruments to manage currency exchange risk and does not hold derivatives for trading purposes. In the fourth quarter of 2008, two wholly-owned subsidiaries of the Company entered into foreign currency forward contracts related to anticipated sales denominated in currencies other than the functional currency of the subsidiaries entering the contracts. A portion of the contracts were settled in the nine months ended October2, 2009. The remaining open forward contracts, having an aggregate notional amount of 881million Japanese Yen ($9.8 million) as of October2, 2009 related to one subsidiary and an aggregate notional amount of 4.2million Euro ($6.1 million) also as of October2, 2009, related to the second subsidiary, will be settled at various dates during the remaining three month period ending December31, 2009 based on their terms. These forward contracts qualify as effective or perfect hedges. As of October2, 2009 the aggregate fair value of the forward contracts was less than $1 million. |
NOTE 8. PENSION AND OTHER POST-
NOTE 8. PENSION AND OTHER POST-RETIREMENT BENEFITS | |
9 Months Ended
Oct. 02, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
NOTE 8. PENSION AND OTHER POST-RETIREMENT BENEFITS | NOTE 8. PENSION AND OTHER POST-RETIREMENT BENEFITS The following sets forth the components of the Companys net periodic benefit cost of the non-contributory defined benefit plans for the three and nine months ended October2, 2009 and September26, 2008 respectively ($ in millions): Pension Benefits Three Months Ended US Non-US October2,2009 September26,2008 October2,2009 September26,2008 Service cost $ 0.4 $ 1.5 $ 3.2 $ 3.7 Interest cost 18.9 17.8 7.9 8.2 Expected return on plan assets (21.0 ) (22.1 ) (4.8 ) (6.1 ) Amortization of prior service credits (0.1 ) (0.1 ) Amortization of loss 2.3 0.6 0.9 (0.1 ) Other (0.2 ) Net periodic cost / (benefit) $ 0.6 $ (2.2 ) $ 7.1 $ 5.4 Nine Months Ended US Non-US October2, 2009 September26, 2008 October2, 2009 September26, 2008 Service cost $ 1.6 $ 5.7 $ 9.2 $ 11.2 Interest cost 57.1 55.0 22.7 25.0 Expected return on plan assets (63.2 ) (67.3 ) (13.7 ) (18.7 ) Amortization of prior service credits (0.3 ) (0.3 ) Amortization of loss / (gain) 7.3 3.4 2.4 (0.3 ) Other 0.8 (0.2 ) Net periodic cost / (benefit) $ 2.8 $ (3.2 ) $ 21.1 $ 16.7 The following sets forth the components of the Companys other postretirement employee benefit plans for the three and nine months ended October2, 2009 and September26, 2008 respectively ($ in millions): Other Post-Retirement Benefits Three Months Ended Nine Months Ended October2,2009 September26,2008 October2,2009 September26,2008 Service cost $ 0.1 $ 0.3 $ 0.7 $ 0.9 Interest cost 1.5 1.7 5.1 5.5 Amortization of prior service credits (2.0 ) (1.8 ) (6.0 ) (5.4 ) Amortization of loss 0.6 1.6 2.2 Net periodic cost $ (0.4 ) $ 0.8 $ 1.4 $ 3.2 Employer Contributions During the nine months ended October2, 2009, no contributions were made to the U.S. plan and there are no significant anticipated statutory funding requirements for the remainder of 2009. The Companys total 2009 contributions to non-U.S. plans are estimated to be approximately $30 million. |
NOTE 9. EARNINGS PER SHARE
NOTE 9. EARNINGS PER SHARE | |
9 Months Ended
Oct. 02, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
NOTE 9. EARNINGS PER SHARE | NOTE 9. EARNINGS PER SHARE Basic earnings per share (EPS) is calculated by dividing net earnings by the weighted average number of common shares outstanding for the applicable period. Diluted EPS is calculated after adjusting the numerator and the denominator of the basic EPS calculation for the effect of all potential dilutive common shares related to instruments outstanding during the period. For the three and nine months ended October2, 2009, approximately 5.3million options to purchase shares were not included in the diluted earnings per share calculation as the impact of their inclusion would have been anti-dilutive. Information related to the calculation of earnings per share of common stock is summarized as follows ($ in thousands, except per share amounts): NetEarnings (Numerator) Shares (Denominator) PerShare Amount For the Three Months Ended October2, 2009: Basic EPS $ 351,363 321,093 $ 1.09 Adjustment for interest on convertible debentures 2,515 Incremental shares from assumed exercise of dilutive options 3,206 Incremental shares from assumed conversion of the convertible debentures 11,969 Diluted EPS $ 353,878 336,268 $ 1.05 For the Three Months Ended September26, 2008: Basic EPS $ 371,992 319,887 $ 1.16 Adjustment for interest on convertible debentures 2,591 Incremental shares from assumed exercise of dilutive options 5,476 Incremental shares from assumed conversion of the convertible debentures 11,971 Diluted EPS $ 374,583 337,334 $ 1.11 For the Nine Months Ended October2, 2009: Basic EPS $ 884,769 318,519 $ 2.78 Adjustment for interest on convertible Debentures 7,374 Incremental shares from assumed exercise of dilutive options 4,275 Incremental shares from assumed conversion of the convertible debentures 11,969 Diluted EPS $ 892,143 334,763 $ 2.66 For the Nine Months Ended September26, 2008: Basic EPS $ 1,011,945 319,307 $ 3.17 Adjustment for interest on convertible debentures 7,730 Incremental shares from assumed exercise of dilutive options 5,341 Incremental shares from assumed conversion of the convertible debentures 11,971 Diluted EPS $ 1,019,675 336,619 $ 3.03 |
NOTE 10. RESTRUCTURING AND OTHE
NOTE 10. RESTRUCTURING AND OTHER RELATED CHARGES | |
9 Months Ended
Oct. 02, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
NOTE 10. RESTRUCTURING AND OTHER RELATED CHARGES | NOTE 10. RESTRUCTURING AND OTHER RELATED CHARGES During the fourth quarter of 2008 the Company initiated and substantially completed restructuring actions to better position the Companys cost base for future periods. In connection with these various actions, the Company recorded pre-tax restructuring and other related charges totaling $82.0 million ($61.5 million net of tax, or $0.18 per diluted share) in the fourth quarter of 2008. The restructuring and other related charges improved operational efficiency through targeted workforce reductions and facility consolidations and closures. Approximately 93% of the total pre-tax charge required cash payments, which were funded with cash generated from operations. Substantially all required cash payments have been made. For a full description of the Companys fourth quarter 2008 restructuring activities, please refer to Note 16 of the Companys 2008 Annual Report on Form 10-K. In addition, in April and August 2009, the Company approved plans to implement further restructuring activities throughout its businesses.The plan approved in April resulted from managements assessment that significant additional actions were appropriate to adjust the Companys cost base in light of the continued weakness in demand in most of the Companys end markets resulting from the overall deterioration in global economic conditions since the beginning of 2009.The plan approved in August resulted from managements assessment that additional actions were appropriate to adjust the Companys on-going cost structure to reflect lower demand levels experienced to date in 2009 resulting from the global recession. The April plan, which authorized spending for actions of up to $120 million, and the August plan, which authorized spending for actions of up to $80 million, are in addition to the Companys regular on-going restructuring actions that are expected to result in charges of $40 to $60 million in 2009, resulting in approximately $250 million of aggregate expected restructuring and related costs for 2009. Completion of some of these actions may be delayed until the first half of 2010. Total 2009 expected restructuring and related charges for actions currently planned and in the process of being implemented and the associated costs incurred during the three and nine months ended October2, 2009 are summarized in the table below ($ in millions): Employee Severance Related FacilityExit Other Related Charges TotalRestructuring Other Related Charges Total Expected Costs $ 201.3 $ 48.7 $ 250.0 Costs incurred: Three months ended April3, 2009 $ 9.9 $ 0.3 10.2 Three months ended July3, 2009 44.6 1.2 45.8 Three months ended October2, 2009 37.6 7.8 45.4 Nine months ended October2, 2009 $ 92.1 $ 9.3 $ 101.4 Remaining Expected Costs $ 109.2 $ 39.4 $ 148.6 The nature of the restructuring and related activities were broadly consistent throughout the Companys reportable segments and resulted in the pre-tax charges during the three and n |
NOTE 11. OTHER INCOME
NOTE 11. OTHER INCOME | |
9 Months Ended
Oct. 02, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
NOTE 11. OTHER INCOME | NOTE 11. OTHER INCOME During the third quarter of 2009, Ormco Corporation, a wholly owned subsidiary of the Company, settled certain litigation pending between Ormco and Align Technology, Inc. (Align). Among other provisions, as part of the settlement, Align paid $13 million in cash to Ormco and issued to the Company 7.6million shares of Align common stock, which following issuance represented an approximately ten percent ownership interest in Align. The Company recorded a pre-tax gain of $85 million ($53 million after tax or $0.16 per share) related to the settlement representing the cash received and the value of the shares received on the respective dates the shares were issued to the Company, net of $13 million of related legal and direct settlement costs incurred. This gain is reflected as other (income) expense in the accompanying Consolidated Condensed Statement of Earnings. The shares received in connection with the settlement have been classified as available-for-sale securities. Any gains or losses resulting from changes in the fair value of the securities are reflected as unrealized gains or losses in other comprehensive income and classified as a component of stockholders equity until such gains or losses are realized. |
NOTE 12. SEGMENT INFORMATION
NOTE 12. SEGMENT INFORMATION | |
9 Months Ended
Oct. 02, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
NOTE 12. SEGMENT INFORMATION | NOTE 12. SEGMENT INFORMATION The Company reports under four segments: Professional Instrumentation, Medical Technologies, Industrial Technologies and Tools Components. Segment information is presented consistently with the basis described in the 2008 Annual Report on Form 10-K. There has been no material change in total assets or liabilities by segment except for the effect of the 2009 acquisitions (see Note 2). Segment results for the three and nine months ended October2, 2009 and September26, 2008 are shown below ($ in thousands): Three Months Ended Nine Months Ended October2,2009 September26,2008 October2,2009 September26,2008 Sales: Professional Instrumentation $ 1,060,076 $ 1,213,676 $ 3,106,009 $ 3,616,815 Medical Technologies 766,267 835,009 2,220,866 2,433,206 Industrial Technologies 654,925 819,819 1,952,925 2,487,519 Tools and Components 269,425 339,677 772,246 983,410 $ 2,750,693 $ 3,208,181 $ 8,052,046 $ 9,520,950 Operating Profit: Professional Instrumentation $ 165,234 $ 244,100 $ 500,308 $ 685,294 Medical Technologies 168,125 102,880 317,446 280,339 Industrial Technologies 111,217 149,039 302,315 415,543 Tools and Components 42,101 47,628 95,294 127,330 Other (22,080 ) (21,507 ) (66,601 ) (62,680 ) $ 464,597 $ 522,140 $ 1,148,762 $ 1,445,826 |
Document Information
Document Information | |
9 Months Ended
Oct. 02, 2009 USD / shares | |
Document Information [Text Block] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | 2009-10-02 |
Entity Information
Entity Information (USD $) | ||
9 Months Ended
Oct. 02, 2009 | Oct. 16, 2009
| |
Entity [Text Block] | ||
Trading Symbol | DHR | |
Entity Registrant Name | DANAHER CORP /DE/ | |
Entity Central Index Key | 0000313616 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 321,234,857 |