Statement Of Income Alternative
Statement Of Income Alternative (USD $) | |||
In Thousands, except Per Share data | 12 Months Ended
Dec. 31, 2009 | 12 Months Ended
Dec. 31, 2008 | 12 Months Ended
Dec. 31, 2007 |
Sales | $11,184,938 | $12,697,456 | $11,025,917 |
Operating costs and expenses: | |||
Cost of sales | 5,904,718 | 6,757,262 | 5,985,022 |
Selling, general and administrative expenses | 3,190,211 | 3,345,274 | 2,713,097 |
Research and development expenses | 632,651 | 725,443 | 601,424 |
Other income | (85,118) | 0 | (14,335) |
Total operating expenses | 9,642,462 | 10,827,979 | 9,285,208 |
Operating profit | 1,542,476 | 1,869,477 | 1,740,709 |
Interest expense | (122,656) | (130,174) | (109,702) |
Interest income | 5,034 | 10,004 | 6,092 |
Earnings from continuing operations before income taxes | 1,424,854 | 1,749,307 | 1,637,099 |
Income taxes | (273,150) | (431,676) | (423,101) |
Earnings from continuing operations | 1,151,704 | 1,317,631 | 1,213,998 |
Earnings from discontinued operations, net of income taxes | 0 | 0 | 155,906 |
Net earnings | $1,151,704 | $1,317,631 | $1,369,904 |
Earnings per share from continuing operations: | |||
Basic | 3.59 | 4.13 | 3.9 |
Diluted | 3.46 | 3.95 | 3.72 |
Earnings per share from discontinued operations: | |||
Basic | $0 | $0 | 0.5 |
Diluted | $0 | $0 | 0.47 |
Net earnings per share: | |||
Basic | 3.59 | 4.13 | 4.4 |
Diluted | 3.46 | 3.95 | 4.19 |
Average common stock and common equivalent shares outstanding (in thousands): | |||
Basic | 320,765 | 319,361 | 311,225 |
Diluted | 335,742 | 335,863 | 329,459 |
Statement Of Financial Position
Statement Of Financial Position Classified (USD $) | ||
In Thousands | Dec. 31, 2009
| Dec. 31, 2008
|
Current Assets: | ||
Cash and equivalents | $1,721,920 | $392,854 |
Trade accounts receivable, less allowance for doubtful accounts of $133,103 and $120,730, respectively | 1,916,831 | 1,894,585 |
Inventories | 993,016 | 1,142,309 |
Prepaid expenses and other current assets | 588,861 | 757,371 |
Total current assets | 5,220,628 | 4,187,119 |
Property, plant and equipment, net | 1,143,331 | 1,108,653 |
Other assets | 758,035 | 464,353 |
Goodwill | 9,817,923 | 9,210,581 |
Other intangible assets, net | 2,655,503 | 2,519,422 |
Total assets | 19,595,420 | 17,490,128 |
Current Liabilities: | ||
Notes payable and current portion of long-term debt | 44,186 | 66,159 |
Trade accounts payable | 1,051,487 | 1,108,961 |
Accrued expenses and other liabilities | 1,665,287 | 1,569,977 |
Total current liabilities | 2,760,960 | 2,745,097 |
Other long-term liabilities | 2,315,261 | 2,383,299 |
Long-term debt | 2,889,023 | 2,553,170 |
Stockholders' equity: | ||
Common stock - $0.01 par value, 1 billion shares authorized; 358,922 and 354,487 issued; 322,735 and 318,380 outstanding, respectively | 3,589 | 3,544 |
Additional paid-in capital | 2,074,501 | 1,812,963 |
Retained earnings | 9,205,142 | 8,095,155 |
Accumulated other comprehensive income (loss) | 346,944 | (103,100) |
Total stockholders' equity | 11,630,176 | 9,808,562 |
Total liabilities and stockholders' equity | $19,595,420 | $17,490,128 |
1_Statement Of Financial Positi
Statement Of Financial Position Classified (Parenthetical) (USD $) | ||
In Thousands, except Share data | Dec. 31, 2009
| Dec. 31, 2008
|
Trade accounts receivable, allowance for doubtful accounts | $133,103 | $120,730 |
Common stock, par value | 0.01 | 0.01 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, issued | 358,922,000 | 354,487,000 |
Common stock, outstanding | 322,735,000 | 318,380,000 |
Statement Of Cash Flows Indirec
Statement Of Cash Flows Indirect (USD $) | |||
In Thousands | 12 Months Ended
Dec. 31, 2009 | 12 Months Ended
Dec. 31, 2008 | 12 Months Ended
Dec. 31, 2007 |
Cash flows from operating activities: | |||
Net earnings | $1,151,704 | $1,317,631 | $1,369,904 |
Less: earnings from discontinued operations, net of tax | 0 | 0 | 155,906 |
Earnings from continuing operations | 1,151,704 | 1,317,631 | 1,213,998 |
Non-cash items, net of the effect of discontinued operations: | |||
Depreciation | 184,524 | 193,997 | 173,942 |
Amortization | 157,063 | 145,290 | 94,550 |
Stock compensation expense | 87,350 | 86,000 | 73,347 |
Consideration received in shares | (84,749) | 0 | 0 |
Change in deferred income taxes | (154,098) | 27,691 | 29,870 |
Change in trade accounts receivable, net | 106,132 | 71,403 | (72,555) |
Change in inventories | 211,595 | 33,119 | 38,094 |
Change in accounts payable | (89,853) | 3,713 | 103,800 |
Change in prepaid expenses and other assets | 142,396 | (4,773) | 38,601 |
Change in accrued expenses and other liabilities | 88,770 | (15,042) | 5,661 |
Total operating cash flows from continuing operations | 1,800,834 | 1,859,029 | 1,699,308 |
Total operating cash flows used by discontinued operations | 0 | 0 | (53,533) |
Net cash flows from operating activities | 1,800,834 | 1,859,029 | 1,645,775 |
Cash flows from investing activities: | |||
Payments for additions to property, plant and equipment | (188,547) | (193,783) | (162,071) |
Proceeds from disposals of property, plant and equipment | 6,090 | 1,088 | 15,537 |
Cash paid for acquisitions | (703,511) | (423,208) | (3,576,562) |
Cash paid for other investments | (66,768) | 0 | (23,219) |
Proceeds from divestitures, sale of investment and refundable escrowed purchase price | 9,795 | 48,504 | 301,278 |
Total investing cash flows from continuing operations | (942,941) | (567,399) | (3,445,037) |
Total investing cash flows from discontinued operations | 0 | 0 | (722) |
Net cash used in investing activities | (942,941) | (567,399) | (3,445,759) |
Cash flows from financing activities: | |||
Proceeds from issuance of common stock | 174,233 | 82,430 | 733,028 |
Payment of dividends | (41,717) | (38,259) | (34,275) |
Purchase of treasury stock | 0 | (74,165) | (117,486) |
Net (repayments) proceeds of borrowings (maturities of 90 days or less) | (445,711) | (905,567) | 647,761 |
Proceeds of borrowings (maturities longer than 90 days) | 744,615 | 72,652 | 493,705 |
Repayments of borrowings (maturities longer than 90 days) | (24,188) | (259,344) | (10,563) |
Net cash provided by (used in) financing activities | 407,232 | (1,122,253) | 1,712,170 |
Effect of exchange rate changes on cash and equivalents | 63,941 | (15,631) | 9,112 |
Net change in cash and equivalents | 1,329,066 | 153,746 | (78,702) |
Beginning balance of cash and equivalents | 392,854 | 239,108 | 317,810 |
Ending balance of cash and equivalents | $1,721,920 | $392,854 | $239,108 |
Statement Of Shareholders Equit
Statement Of Shareholders Equity And Other Comprehensive Income (USD $) | |||||
In Thousands | Common Stock
| Additional Paid-in Capital
| Retained Earnings
| Accumulated Other Comprehensive Income (Loss)
| Total
|
Beginning Balance at Dec. 31, 2006 | $3,412 | $1,027,454 | $5,421,809 | $191,985 | |
Beginning Balance (in shares) at Dec. 31, 2006 | 341,223 | ||||
Cumulative impact of change in accounting for uncertainties in income taxes (see Note 14) | 63,318 | ||||
Net earnings for the year | 1,369,904 | 1,369,904 | |||
Dividends declared | (34,275) | ||||
Common stock issuance (in shares) | 6,900 | ||||
Common stock issuance | 69 | 550,433 | |||
Common stock issued in connection with LYON's conversion (in shares) | 49 | ||||
Common stock issued in connection with LYON's conversion | 1 | 2,487 | |||
Common stock based award activity (including 310 thousand restricted shares issued in connection with Tektronix acquisition in 2007) (in shares) | 4,436 | ||||
Common stock based award activity (including 310 thousand restricted shares issued in connection with Tektronix acquisition in 2007) | 44 | 255,828 | |||
Treasury stock purchase (1.38 million in 2008 and 1.64 million in 2007 in shares) | (117,486) | ||||
Increase (Decrease) from translation of foreign financial statements | 305,758 | ||||
Unrecognized pension and postretirement plan costs (net of tax expense (benefit) of $8 million in 2009, $155 million in 2008 and $22 million in 2007) | 44,947 | ||||
Ending Balance (in shares) at Dec. 31, 2007 | 352,608 | ||||
Ending Balance at Dec. 31, 2007 | 3,526 | 1,718,716 | 6,820,756 | 542,690 | |
Cumulative impact of change in measurement date for post - employment benefit obligations, net of taxes (see Note 1) | (4,973) | 978 | |||
Net earnings for the year | 1,317,631 | 1,317,631 | |||
Dividends declared | (38,259) | ||||
Common stock issued in connection with LYON's conversion (in shares) | 18 | ||||
Common stock issued in connection with LYON's conversion | 985 | ||||
Common stock based award activity (including 310 thousand restricted shares issued in connection with Tektronix acquisition in 2007) (in shares) | 1,861 | ||||
Common stock based award activity (including 310 thousand restricted shares issued in connection with Tektronix acquisition in 2007) | 18 | 167,427 | |||
Treasury stock purchase (1.38 million in 2008 and 1.64 million in 2007 in shares) | (74,165) | ||||
Increase (Decrease) from translation of foreign financial statements | (359,520) | ||||
Unrecognized pension and postretirement plan costs (net of tax expense (benefit) of $8 million in 2009, $155 million in 2008 and $22 million in 2007) | (287,248) | ||||
Ending Balance (in shares) at Dec. 31, 2008 | 354,487 | ||||
Ending Balance at Dec. 31, 2008 | 3,544 | 1,812,963 | 8,095,155 | (103,100) | 9,808,562 |
Net earnings for the year | 1,151,704 | 1,151,704 | |||
Dividends declared | (41,717) | ||||
Common stock based award activity (including 310 thousand restricted shares issued in connection with Tektronix acquisition in 2007) (in shares) | 4,435 | ||||
Common stock based award activity (including 310 thousand restricted shares issued in connection with Tektronix acquisition in 2007) | 45 | 261,538 | |||
Unrealized gain on available-for-sale securities (net of tax expense of $29 million) | 54,342 | ||||
Increase (Decrease) from translation of foreign financial statements | 373,233 | ||||
Unrecognized pension and postretirement plan costs (net of tax expense (benefit) of $8 million in 2009, $155 million in 2008 and $22 million in 2007) | 22,469 | ||||
Ending Balance (in shares) at Dec. 31, 2009 | 358,922 | ||||
Ending Balance at Dec. 31, 2009 | $3,589 | $2,074,501 | $9,205,142 | $346,944 | $11,630,176 |
2_Statement Of Shareholders Equ
Statement Of Shareholders Equity And Other Comprehensive Income (Parenthetical) (USD $) | ||||
In Millions, except Share data | Common Stock
| Additional Paid-in Capital
| Accumulated Other Comprehensive Income (Loss)
| Comprehensive Income
|
Common stock based award activity, restricted shares | 310,000 | 310,000 | ||
Treasury stock purchase, shares | 1,640,000 | |||
Unrecognized pension and postretirement plan costs, tax expense (benefit) | $22 | $22 | ||
Treasury stock purchase, shares | 1,380,000 | |||
Unrecognized pension and postretirement plan costs, tax expense (benefit) | 155 | 155 | ||
Unrealized gain on available-for-sale securities, tax expense | 29 | 29 | ||
Unrecognized pension and postretirement plan costs, tax expense (benefit) | $8 | $8 |
BUSINESS AND SUMMARY OF SIGNIFI
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: | (1)BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: BusinessDanaher Corporation designs, manufactures and markets professional, medical, industrial, commercial and consumer products and services which are typically characterized by strong brand names, proprietary technology and major market positions in four business segments: Professional Instrumentation, Medical Technologies, Industrial Technologies and Tools Components. Businesses in the Professional Instrumentation segment offer professional and technical customers various products and services that are used to enable or enhance the performance of their work. The Professional Instrumentation segment encompasses two strategic lines of business - environmental and test and measurement. These businesses produce and sell bench top and compact, professional electronic test tools and calibration equipment, a variety of video test and monitoring products, network management solutions, network diagnostic equipment and related services; water quality instrumentation and consumables and ultraviolet disinfection systems; industrial water treatment solutions; and retail/commercial petroleum products and services, including underground storage tank leak detection and vapor recovery systems. The Medical Technologies segment consists of businesses that offer clinical and research medical professionals various products and services that are used in connection with the performance of their work. The Medical Technologies segment encompasses the acute care diagnostic, life science and diagnostics, and dental businesses. Businesses in the Industrial Technologies segment manufacture products and sub-systems that are typically incorporated by customers and systems integrators into production and packaging lines as well as incorporated by original equipment manufacturers (OEMs) into various end-products. Many of the businesses also provide services to support their products, including helping customers integrate and install the products and helping ensure product uptime. The Industrial Technologies segment encompasses two strategic lines of business - product identification and motion, and two focused niche businesses, aerospace and defense and sensors controls. These businesses produce and sell product identification equipment and consumables; precision motion control equipment; monitoring, sensing and control devices; and aerospace safety devices and defense articles. The Tools Components segment is one of the largest producers and distributors of general purpose and specialty mechanics hand tools. Other products manufactured by the businesses in this segment include toolboxes and storage devices; diesel engine retarders; wheel service equipment and drill chucks. Accounting PrinciplesThe consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany balances and transactions have been eliminated upon consolidation. Use of EstimatesThe preparation of these financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and judgments that affect the reported amounts of assets |
ACQUISITIONS:
ACQUISITIONS: | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
ACQUISITIONS: | (2)ACQUISITIONS: Effective January1, 2009, the Company adopted the provisions of revised business combination accounting standards that establish principles and requirements for how the Company recognizes and measures in its financial statements the identifiable assets acquired, the liabilities assumed, any resulting goodwill and any noncontrolling interest in the acquired business. The revised standard requires the Company to record fair value estimates of contingent consideration and certain other contingent assets and liabilities during the original purchase price allocation, expense acquisition costs as incurred, and does not permit restructuring activities to be recorded as a component of purchase price as was required under prior business combination accounting standards. The revised business combination accounting standard is applicable to all acquisitions completed after December31, 2008. 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 during the years ended December31, 2009, 2008 and 2007. All of these acquisitions 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 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 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 2009 acquisitions and is also in the process of obtaining valuations of acquired intangible assets and certain acquisition related liabilities in connection with these 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 three years ended December31, 2009. The Company acquired fifteen businesses during 2009 for consideration of approximately $704 million in cash, net of cash |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
DISCONTINUED OPERATIONS | (3) DISCONTINUED OPERATIONS In July 2007, the Company completed the sale of its power quality business for a sale price of $275 million in cash, net of transaction costs, and recorded an after-tax gain of $150 million ($0.45 per diluted share). The power quality business designs, makes and sells power quality and reliability products and services, and prior to the sale was part of the Companys Industrial Technologies segment. The Company has reported the power quality business as a discontinued operation in this Form 10-K and accordingly, the results of operations for all periods presented have been reclassified to reflect the power quality business as a discontinued operation. The Company allocated a portion of the consolidated interest expense to discontinued operations. The key components of income from discontinued operations related to the power quality business for the year ended December31, 2007 were as follows ($ in thousands): 2007 Net sales $ 81,141 Operating expense 72,239 Allocated interest expense 351 Earnings before taxes 8,551 Income taxes (2,279 ) Earnings from discontinued operations 6,272 Gain on sale, net of $61,369 of related income taxes 149,634 Earnings from discontinued operations, net of income taxes $ 155,906 During 2009, the Company divested of five businesses or product lines for approximately $10 million of net cash proceeds. The divested businesses and product lines were part of the Industrial Technologies and Tools and Components segments. The Company recorded no significant gain or loss, either individually or in the aggregate, associated with these divestitures. The businesses divested by the Company have not been treated as discontinued operations in the accompanying financial statements as the impact of these businesses to the Companys results of operations, financial position, cash flows and segment information were not significant. |
INVENTORY:
INVENTORY: | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
INVENTORY: | (4)INVENTORY: The classes of inventory as of December31 are summarized as follows ($ in thousands): 2009 2008 Finished goods $ 474,671 $ 543,996 Work in process 179,461 211,353 Raw material 338,884 386,960 $ 993,016 $ 1,142,309 If the FIFO method had been used for inventories valued at LIFO cost, such inventories would have been $14 million and $24 million higher at December31, 2009 and 2008, respectively. During 2009, the Company recorded approximately $10 million of operating profit associated with the liquidation of LIFO inventory. |
PROPERTY, PLANT AND EQUIPMENT:
PROPERTY, PLANT AND EQUIPMENT: | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
PROPERTY, PLANT AND EQUIPMENT: | (5)PROPERTY, PLANT AND EQUIPMENT: The classes of property, plant and equipment as of December31 are summarized as follows ($ in thousands): 2009 2008 Land and improvements $ 110,651 $ 106,472 Buildings 725,670 691,766 Machinery and equipment 1,877,596 1,793,617 2,713,917 2,591,855 Less accumulated depreciation (1,570,586 ) (1,483,202 ) $ 1,143,331 $ 1,108,653 |
GOODWILL & OTHER INTANGIBLE ASS
GOODWILL & OTHER INTANGIBLE ASSETS: | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
GOODWILL & OTHER INTANGIBLE ASSETS: | (6)GOODWILL OTHER INTANGIBLE ASSETS: As discussed in Note 2, goodwill arises from 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. As of December31, 2009, the Company had 27 reporting units for goodwill impairment testing. The carrying value of the goodwill included in the individual reporting units ranges from approximately $5 million to approximately $2 billion. In making its assessment of goodwill impairment, management relies on a number of factors including operating results, business plans, economic projections, anticipated future cash flows, and transactions and market place data. The Companys annual impairment test was performed as of the first day of the Companys fiscal fourth quarters of 2009, 2008 and 2007 and no impairment was identified. The factors used by management in its impairment analysis are inherently subject to uncertainty. While the Company believes it has made reasonable estimates and assumptions to calculate the fair value of its reporting units, if actual results are not consistent with managements estimates and assumptions, goodwill and other intangible assets may be overstated and a charge would need to be taken against net earnings. The following table shows the rollforward of goodwill reflected in the financial statements resulting from the Companys acquisition activities for 2007, 2008, and 2009 ($ in millions). Balance January1, 2007 $ 6,560 Attributable to 2007 acquisitions 2,455 Adjustments due to finalization of purchase price allocations (12 ) Effect of foreign currency translation 238 Balance December31, 2007 $ 9,241 Attributable to 2008 acquisitions 265 Adjustments due to finalization of purchase price allocations (20 ) Effect of foreign currency translation (275 ) Balance December31, 2008 $ 9,211 Attributable to 2009 acquisitions 423 Adjustments due to finalization of purchase price allocations (21 ) Effect of foreign currency translation 205 Balance December31, 2009 $ 9,818 The carrying value of goodwill by segment as of December31 is summarized as follows ($ in millions): Segment 2009 2008 Professional Instrumentation $ 4,028 $ 3,802 Medical Technologies 3,555 3,242 Industrial Technologies 2,041 1,973 Tools Components 194 194 $ 9,818 $ 9,211 Intangible assets are amortized over their legal or estimated useful life. The following summarizes the gross carrying value and accumulated amortization for each major category of intangible asset ($ in millions): December31, 2009 December31, 2008 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Finite Lived Intangibles Patents technology $ 597 |
FAIR VALUE MEASUREMENTS:
FAIR VALUE MEASUREMENTS: | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
FAIR VALUE MEASUREMENTS: | (7)FAIR VALUE MEASUREMENTS: Accounting standards define fair value based on an exit price model, establish a framework for measuring fair value where the Companys assets and liabilities are required to be carried at fair values and provide for certain disclosures related to the valuation methods used within a valuation hierarchy as established within the accounting standards. This hierarchy prioritizes the inputs into three broad levels as follows. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets in markets that are not active, inputs other than quoted prices that are observable for the asset or liability, including interest rates, yield curves and credit risks, or inputs that are derived principally from or corroborated by observable market data through correlation. Level 3 inputs are unobservable inputs based on our own assumptions used to measure assets and liabilities at fair value. A financial asset or liabilitys classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. A summary of financial assets and liabilities that are measured at fair value on a recurring basis at December31, 2009 were as follows ($ in thousands): QuotedPricesin Active Market (Level 1) Significant Other ObservableInputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets: Available for sale securities $ 219,120 $ 219,120 Liabilities: Deferred compensation plans $ 61,468 61,468 Available for sale securities are measured at fair value using quoted market prices and included in other assets in the accompanying Consolidated Balance Sheet. The Company has established nonqualified deferred compensation programs that permit officers, directors and certain management employees to defer a portion of their compensation, on a pre-tax basis, until their termination of employment. All amounts deferred under this plan are unfunded, unsecured obligations of the Company and presented as a component of the Companys compensation and benefits accrual included in accrued expenses in the accompanying Consolidated Balance Sheet (refer to Note 8). Participants may choose among alternative earning rates for the amounts they defer which are based on investment options within the Companys 401K program in the United States. Changes in the value of the deferred compensation liability under these programs are recognized based on the fair value of the participants accounts based on their investment elections. Refer to Note 10 for information related to the fair value of the Company sponsored defined benefit pension plan assets. |
ACCRUED EXPENSES AND OTHER LIAB
ACCRUED EXPENSES AND OTHER LIABILITIES: | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
ACCRUED EXPENSES AND OTHER LIABILITIES: | (8) ACCRUED EXPENSES AND OTHER LIABILITIES: Accrued expenses and other liabilities as of December31 include the following ($ in thousands): 2009 2008 Current Non-Current Current Non-Current Compensation and benefits $ 499,130 $ 219,797 $ 503,212 $ 196,336 Restructuring 129,857 91,410 Claims, including self-insurance and litigation 100,643 80,334 94,770 77,144 Pension and postretirement benefits 60,100 709,000 35,175 833,325 Environmental and regulatory compliance 41,638 72,164 44,571 76,506 Taxes, income and other 161,937 1,181,772 244,407 1,145,737 Sales and product allowances 389,533 36,190 298,990 29,517 Warranty 111,910 13,000 95,910 12,000 Other, individually less than 5% of current or total liabilities 170,539 3,004 161,532 12,734 $ 1,665,287 $ 2,315,261 $ 1,569,977 $ 2,383,299 Approximately $292 million of accrued expenses and other liabilities were guaranteed by standby letters of credit and performance bonds as of December31, 2009. Refer to Note 14 for further discussion of the Companys income tax obligations. |
FINANCING:
FINANCING: | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
FINANCING: | (9)FINANCING: The components of the Companys debt as of December31 were as follows ($ in thousands): 2009 2008 U.S. dollar-denominated commercial paper $ 179,996 $ 623,728 4.5% guaranteed Eurobond Notes due 2013 (500 million) 715,900 699,400 5.625% notes due 2018 500,000 500,000 5.4% notes due 2019 750,000 Zero-coupon Liquid Yield Option Notes due 2021 (LYONs) 634,181 619,757 Other 153,132 176,444 2,933,209 2,619,329 Less currently payable 44,186 66,159 $ 2,889,023 $ 2,553,170 The Company satisfies its short-term liquidity needs primarily through issuances of U.S. dollar and Euro commercial paper. Under the Companys U.S. dollar and Euro commercial paper programs, the Company or a subsidiary of the Company, as applicable, may issue and sell unsecured, short-term promissory notes in aggregate principal amount not to exceed $4.0 billion. Since the Credit Facilities (described below) provide credit support for the program, the $1.525 billion of availability under the Credit Facilities has the practical effect of reducing from $4.0 billion to $1.525 billion the maximum amount of commercial paper that the Company can issue under the program. Commercial paper notes are sold at a discount and have a maturity of not more than 90 days from the date of issuance. Borrowings under the program are available for general corporate purposes, including financing acquisitions. The Company classifies the borrowings under the commercial paper program as long-term borrowings in the accompanying Consolidated Balance Sheet as the Company has the intent and the ability, as supported by the availability of the Credit Facility, to refinance these borrowings for at least one year from the balance sheet date. Credit support for the commercial paper program is provided by an unsecured $1.45 billion multicurrency revolving credit facility (the Credit Facility) that expires on April25, 2012 and an unsecured $75 million multicurrency revolving credit facility that expires on May3, 2010 (the Supplemental Credit Facility and together with the Credit Facility, the Credit Facilities). The Credit Facilities can also be used for working capital and other general corporate purposes. Under the Credit Facility, interest is based on, at the Companys option (1)a LIBOR-based formula that is dependent in part on the Companys credit rating, (2)a formula based on the higher (as of the date of determination) of Bank of Americas prime rate or the Federal funds rate plus 50 basis points, or (3)the rate of interest bid by a particular lender for a particular loan under the facility. Under the Supplemental Credit Facility, interest is based on, at the Companys option (1)a LIBOR-based formula, or (2)a formula based on the highest (as of the date of determination) of the lenders prime rate, the Federal funds rate plus 50 basis points or the LIBOR rate plus 100 basis points. Both of the Credit Facilities require the Company to maintain a consolidated leverage ratio (the ratio of consolidated indebtedness to consolidated in |
PENSION BENEFIT PLANS:
PENSION BENEFIT PLANS: | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
PENSION BENEFIT PLANS: | (10)PENSION BENEFIT PLANS: The Company has noncontributory defined benefit pension plans which cover certain of its U.S. employees. Benefit accruals under most of these plans have ceased. The Company also has noncontributory defined benefit pension plans which cover certain of its non-U.S. employees, and under certain of these plans, benefit accruals continue. The following sets forth the funded status of the U.S. and non-U.S. plans as of the most recent actuarial valuations using a measurement date of December31, 2009 and December31, 2008: ($ in millions) U.S. Pension Benefits Non-U.S.PensionBenefits 2009 2008 2009 2008 Change in pension benefit obligation Benefit obligation at beginning of year $ 1,275.1 $ 1,276.8 $ 607.6 $ 659.6 Adoption of ASC Topic 715 measurement provision (0.5 ) 5.6 Service cost 2.0 7.3 13.2 14.9 Interest cost 75.9 72.7 31.0 32.0 Employee contributions 3.1 3.0 Amendments, settlements and curtailments (6.2 ) (1.1 ) Benefits paid and other (90.5 ) (85.5 ) (37.1 ) (35.0 ) Acquisitions 15.5 6.4 Actuarial loss (gain) 46.8 (11.2 ) (5.0 ) 0.8 Foreign exchange rate impact 33.1 (72.2 ) Benefit obligation at end of year 1,309.3 1,275.1 646.1 607.6 Change in plan assets Fair value of plan assets at beginning of year 821.0 1,200.5 315.6 411.5 Adoption of ASC Topic 715 measurement provision (0.1 ) 1.4 Actual return on plan assets 125.2 (294.5 ) 36.7 (53.1 ) Employer contributions 60.7 0.6 32.5 39.2 Employee contributions 3.1 3.0 Plan settlements (6.0 ) (0.8 ) Benefits paid and other (90.5 ) (85.5 ) (37.1 ) (35.0 ) Acquisitions 5.5 Foreign exchange rate impact 24.4 (50.6 ) Fair value of plan assets at end of year 916.4 821.0 374.7 315.6 Funded status (392.9 ) (454.1 ) (271.4 ) (292.0 ) Accrued contribution Accrued benefit cost $ (392.9 ) $ (454.1 ) $ (271.4 ) $ (292.0 ) Weighted average assumptions used to determine benefit obligations at date of measurement: U. S. Plans Non-U.S. Plans December31, 2009 December31, 2008 December31, 2009 December31, 2008 Discount rate 5.75 % 6.25 % 5.10 % 5.15 % Rate of compensation increase 4.00 % 4.00 % 3.10 % 3.10 % ($ in millions) U.S.PensionBenefits Non-U.S.PensionBenefits 2009 2008 2009 2008 Components of net periodic pension |
OTHER POST RETIREMENT EMPLOYEE
OTHER POST RETIREMENT EMPLOYEE BENEFIT PLANS: | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
OTHER POST RETIREMENT EMPLOYEE BENEFIT PLANS: | (11) OTHER POST RETIREMENT EMPLOYEE BENEFIT PLANS: In addition to providing pension benefits, the Company provides certain health care and life insurance benefits for some of its retired employees in the United States. Certain employees may become eligible for these benefits as they reach normal retirement age while working for the Company. The following sets forth the funded status of the domestic plans as of the most recent actuarial valuations using a measurement date of December31, 2009 and December31, 2008: ($ in millions) PostRetirementMedicalBenefits 2009 2008 Change in benefit obligation Benefit obligation at beginning of year $ 122.4 $ 131.2 Adoption of ASC Topic 715 measurement provision (1.7 ) Service cost 0.8 1.3 Interest cost 6.5 7.1 Amendments and other (3.5 ) (6.3 ) Actuarial loss (gain) (9.4 ) 2.3 Retiree contributions 1.7 1.5 Benefits paid (13.7 ) (13.0 ) Benefit obligation at end of year 104.8 122.4 Change in plan assets Fair value of plan assets Funded status / accrued benefit cost $ (104.8 ) $ (122.4 ) At December31, 2009, $94.2 million of the total underfunded status of the plan was recognized as long-term accrued post retirement liability since it is not expected to be funded within one year. At December31, 2008, $109.5 million of the total underfunded status of the plan was recognized as long-term accrued post-retirement liability. Weighted average assumptions used to determine benefit obligations at date of measurement: 2009 2008 Discount rate 5.75 % 6.25 % Medical trend rate initial 8.10 % 8.80 % Medical trend rate grading period 19years 20years Medical trend rate ultimate 4.5 % 4.00 % The medical trend rate used to determine the post retirement benefit obligation was 8.1% for 2009. The rate decreases gradually to an ultimate rate of 4.5% in 2029, and remains at that level thereafter. The trend is a significant factor in determining the amounts reported. The following table sets forth benefit payments, which reflect expected future service, as appropriate, expected to be paid in the periods indicated. ($ in millions) Amount 2010 $ 10.6 2011 10.2 2012 9.8 2013 9.5 2014 9.5 2015-2019 45.5 Effect of a one-percentage-point change in assumed health care cost trend rates ($ in millions): 1%PointIncrease 1%PointDecrease Effect on the total of service and interest cost components $ 0.4 $ (0.3 ) Effect on post retirement medical benefit obligation 6.8 (6.2 ) PostRetirementMedical Benefits 2009 2008 Components of net periodic benefit cost ($ in millions) Service cost $ 0.8 $ 1.3 Interest cost 6.5 7.1 Amortization of loss 1.6 2.8 Amortization of prior service credit (7.9 ) |
LEASES AND COMMITMENTS:
LEASES AND COMMITMENTS: | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
LEASES AND COMMITMENTS: | (12)LEASES AND COMMITMENTS: The Companys operating leases extend for varying periods of time up to ten years and, in some cases, contain renewal options that would extend existing terms beyond ten years. Future minimum rental payments for all operating leases having initial or remaining non-cancelable lease terms in excess of one year are $115 million in 2010, $81 million in 2011, $56 million in 2012, $38 million in 2013, $29 million in 2014 and $56 million thereafter. Total rent expense charged to income for all operating leases was $136 million, $110 million and, $103 million, for the years ended December31, 2009, 2008 and 2007, respectively. The Company generally accrues estimated warranty costs at the time of sale. In general, manufactured products are warranted against defects in material and workmanship when properly used for their intended purpose, installed correctly, and appropriately maintained. Warranty period terms depend on the nature of the product and range from 90 days up to the life of the product. The amount of the accrued warranty liability is determined based on historical information such as past experience, product failure rates or number of units repaired, estimated cost of material and labor, and in certain instances estimated property damage. The liability, shown in the following table, is reviewed on a quarterly basis and may be adjusted as additional information regarding expected warranty costs becomes known. In certain cases the Company will sell extended warranty or maintenance agreements. The proceeds from these agreements is deferred and recognized as revenue over the term of the agreement. The following is a rollforward of the Companys warranty accrual for the years ended December31, 2009 and 2008 ($ in thousands): Balance December31, 2007 $ 110,700 Accruals for warranties issued during period 98,891 Settlements made (101,143 ) Additions due to acquisitions 273 Effect of foreign currency translation (811 ) Balance December31, 2008 107,910 Accruals for warranties issued during period 105,935 Settlements made (96,026 ) Additions due to acquisitions 4,554 Effect of foreign currency translation 2,537 Balance December31, 2009 $ 124,910 |
LITIGATION AND CONTINGENCIES:
LITIGATION AND CONTINGENCIES: | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
LITIGATION AND CONTINGENCIES: | (13) LITIGATION AND CONTINGENCIES: The Company is, from time to time, subject to a variety of litigation and similar proceedings incidental to its business. These lawsuits primarily involve claims for damages arising out of the use of the Companys products and services and claims relating to intellectual property matters, employment matters, tax matters, commercial disputes, competition and sales and trading practices, personal injury, insurance coverage and acquisition-related matters. The Company may also become subject to lawsuits as a result of past or future acquisitions or as a result of liabilities retained from, or representations, warranties or indemnities provided in connection with divested businesses. Some of these lawsuits may include claims for punitive and consequential as well as compensatory damages. Based upon the Companys experience, current information and applicable law, it does not believe that these proceedings and claims will have a material adverse effect on its financial position, results of operations or cash flows. While the Company maintains workers compensation, property, cargo, automobile, aviation, crime, fiduciary, product, general liability, and directors and officers liability insurance (and has acquired rights under similar policies in connection with certain acquisitions) that it believes cover a portion of these claims, this insurance may be insufficient or unavailable to cover such losses. In addition, while the Company believes it is entitled to indemnification from third parties for some of these claims, these rights may also be insufficient or unavailable to cover such losses. The Company maintains third party insurance policies up to certain limits to cover certain liability costs in excess of predetermined retained amounts. For general liability risk (which includes product liability) and most other insured risks, the Company purchases outside insurance coverage only for severe losses (stop loss insurance) and must establish and maintain reserves with respect to amounts within the self-insured retention. The Company recognizes a liability for any contingency that is probable of occurrence and reasonably estimable. The Company periodically assesses the likelihood of adverse judgments or outcomes for these matters, as well as potential amounts or ranges of probable losses, and if appropriate recognizes a reserve for these contingencies. These reserves consist of specific reserves for individual claims and additional amounts for anticipated developments of these claims as well as for incurred but not yet reported claims. The specific reserves for individual known claims are quantified with the assistance of legal counsel and outside risk insurance professionals where appropriate. In addition, outside risk insurance professionals assist in the determination of reserves for incurred but not yet reported claims through evaluation of the Companys specific loss history, actual claims reported, and industry trends among statistical and other factors. Reserve estimates are adjusted as additional information regarding a claim becomes known. While the Company actively pursues financial recoveries from |
INCOME TAXES:
INCOME TAXES: | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
INCOME TAXES: | (14)INCOME TAXES: The provision for income taxes from continuing operations for the years ended December31 consists of the following ($ in thousands): 2009 2008 2007 Current: Federal U.S. $ 297,288 $ 207,025 $ 263,078 Non - U.S. 106,551 180,401 103,511 State and local 23,409 16,560 26,642 Deferred: Federal U.S. (38,191 ) 90,065 70,953 Non - U.S. (121,562 ) (65,423 ) (44,876 ) State and Local 5,655 3,048 3,793 Income tax provision $ 273,150 $ 431,676 $ 423,101 Current deferred income tax assets are reflected in prepaid expenses and other current assets. Long-term deferred income tax liabilities are included in other long-term liabilities in the accompanying Consolidated Balance Sheets. Deferred income taxes consist of the following ($ in thousands): 2009 2008 Bad debt allowance $ 35,560 $ 31,179 Inventories 81,396 84,154 Property, plant and equipment (54,836 ) (50,843 ) Pension and postretirement benefits 192,298 230,134 Insurance, including self insurance (35,548 ) (26,596 ) Basis difference in LYONs (146,598 ) (122,999 ) Goodwill and other intangibles (952,504 ) (849,414 ) Environmental and regulatory compliance 33,251 29,712 Other accruals and prepayments 292,832 227,725 Deferred service income (155,457 ) (193,635 ) Stock compensation expense 92,368 67,575 Tax credit and loss carryforwards 355,803 203,202 Unrealized gains on marketable securities (29,262 ) All other accounts 7,932 14,394 Net deferred tax liability $ (282,765 ) $ (355,412 ) Deferred taxes associated with temporary differences resulting from timing of recognition for income tax purposes of fees paid for services rendered between consolidated entities are reflected as deferred service income in the above table. These fees are fully eliminated in consolidation and have no effect on reported revenue, income or reported income tax expense. Deferred taxes associated with U.S. entities consisted of net deferred tax liabilities of approximately $478 million and $479 million as of December31, 2009 and 2008, respectively. Deferred taxes associated with non-U.S. entities consisted of net deferred tax assets of approximately $195 million and $124 million as of December31, 2009 and 2008, respectively. The effective income tax rate for the years ended December31 varies from the statutory federal income tax rate as follows: PercentageofPre-TaxEarnings 2009 2008 2007 Statutory federal income tax rate 35.0 % 35.0 % 35.0 % Increase (decrease) in tax rate resulting from: State income taxes (net of Federal income tax benefit) 1.6 0.8 1.2 Taxes on foreign earnings (11.8 ) (11.1 |
EARNINGS PER SHARE
EARNINGS PER SHARE (EPS): | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
EARNINGS PER SHARE (EPS): | (15)EARNINGS PER SHARE (EPS): Basic EPS is calculated by dividing 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 outstanding during the period. For the years ended December31, 2009 and December31, 2008, approximately 4.8million and 10.3million options to purchase shares, respectively, 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 from continuing operations per share of common stock is summarized as follows (in thousands, except per share amounts): For the Year Ended December31, 2009: Net earnings from continuingoperations (Numerator) Shares (Denominator) PerShare Amount Basic EPS $ 1,151,704 320,765 $ 3.59 Adjustment for interest on convertible debentures 10,320 Incremental shares from assumed exercise of dilutive options and RSUs 3,007 Incremental shares from assumed conversion of the convertible debentures 11,970 Diluted EPS $ 1,162,024 335,742 $ 3.46 For the Year Ended December31, 2008: Net earnings from continuingoperations (Numerator) Shares (Denominator) PerShare Amount Basic EPS $ 1,317,631 319,361 $ 4.13 Adjustment for interest on convertible debentures 10,369 Incremental shares from assumed exercise of dilutive options and RSUs 4,531 Incremental shares from assumed conversion of the convertible debentures 11,971 Diluted EPS $ 1,328,000 335,863 $ 3.95 For the Year Ended December31, 2007: Net earnings from continuingoperations (Numerator) Shares (Denominator) PerShare Amount Basic EPS $ 1,213,998 311,225 $ 3.90 Adjustment for interest on convertible debentures 10,033 Incremental shares from assumed exercise of dilutive options and RSUs 6,245 Incremental shares from assumed conversion of the convertible debentures 11,989 Diluted EPS $ 1,224,031 329,459 $ 3.72 |
STOCK TRANSACTIONS:
STOCK TRANSACTIONS: | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
STOCK TRANSACTIONS: | (16)STOCK TRANSACTIONS: On May15, 2007, the Companys shareholders voted to approve an amendment to Danahers Certificate of Incorporation to increase the number of authorized shares of common stock of Danaher to a total of one billion shares, $.01 par value. Danahers Certificate of Incorporation was amended to reflect this change on May16, 2007. On November7, 2007, the Company completed the public offering of 6.9million shares of its common stock at a price to the public of $82.25 per share. The net proceeds, after expenses and the underwriters discount, were $550 million. The proceeds were used, in part, to fund the 2007 acquisition of Tektronix (refer to Note 2). During 2009, the Company did not repurchase any shares of Company common stock pursuant to the stock repurchase program authorized by the Companys Board of Directors on April21, 2005. During 2008, the Company repurchased 1.38million shares of Company common stock in open market transactions at a cost of $74 million. During 2007, the Company repurchased 1.64million shares of Company common stock in open market transactions at a cost of $117 million. The 2008 and 2007 repurchases were funded from available cash and from proceeds from the issuance of commercial paper. At December31, 2009, the Company had approximately 2million shares remaining for stock repurchases under the existing Board authorization. The Company expects to fund any further repurchases using the Companys available cash balances or proceeds from the issuance of commercial paper. Stock options and 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 grant date, though the specific terms of each grant are determined by the Compensation |
RESTRUCTURING AND OTHER RELATED
RESTRUCTURING AND OTHER RELATED CHARGES: | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
RESTRUCTURING AND OTHER RELATED CHARGES: | (17) RESTRUCTURING AND OTHER RELATED CHARGES: During 2009, the Company recorded pre-tax restructuring and other related charges totaling $238.5 million. Of the total 2009 restructuring costs incurred, $192.3 million ($144.4 million net of tax or $0.43 per diluted share) was incurred pursuant to plans approved by the Company in April and August of 2009 and $46.2 million was incurred in connection with the Companys normal on-going restructuring actions. The plans approved by the Company in April and August 2009 reflected managements assessment that adjustments to the Companys on-going cost structure were appropriate in light of lower demand in most of the Companys end markets resulting from the overall deterioration in global economic conditions that began in the latter half of 2008 and continued through 2009. Substantially all planned restructuring activities related to the 2009 plans were completed during the year resulting in approximately $204 million of employee severance and related charges and $35 million of facility exit and other related charges. During the fourth quarter of 2008 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) associated with restructuring actions initiated and substantially completed during 2008 to better position the Companys cost base for future periods. The pre-tax charge recorded during 2008 consisted of approximately $72 million of employee severance and related charges and $10 million of facility exit and other related charges. The nature of the restructuring and related activities initiated in both 2009 and 2008 were broadly consistent throughout the Companys reportable segments and focused on improvements in operational efficiency through targeted workforce reductions and facility consolidations and closures. Restructuring and other related charges recorded for the year ended December31 by segment are summarized in the table below ($ in millions): Segment 2009 2008 Professional Instrumentation $ 99.0 $ 28.8 Medical Technologies 60.5 26.1 Industrial Technologies 60.7 23.1 Tools Components 18.3 4.0 $ 238.5 $ 82.0 The table below summarizes the accrual balance and utilization by type of restructuring cost associated with the 2008 and 2009 actions ($ in millions): Balanceasof December31,2008 Costs Incurred Paid / Settled Balance as of December31,2009 Restructuring Charges Employee severance and related $ 52.7 $ 203.9 $ (151.6 ) $ 105.0 Facility exit and related 2.6 34.6 (20.6 ) 16.6 Total Restructuring $ 55.3 $ 238.5 $ (172.2 ) $ 121.6 The restructuring and other related charges incurred during 2009, include cash charges of $228.1 million and $10.4 million of non-cash charges. The restructuring and other related charges incurred during 2008 include cash charges of $76.3 million and $5.7 million of non-cash charges. These charges |
OTHER INCOME:
OTHER INCOME: | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
OTHER INCOME: | (18) 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 in the accompanying Consolidated Statements 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. Accu-Sort, Inc., a subsidiary of the Company, was a defendant in a suit filed by Federal Express Corporation on May16, 2001.On March9, 2006 Accu-Sort settled the case with Federal Express for an amount which the Company believes is not material to its financial position, which amount was reflected in the Companys results of operations in 2005.The purchase agreement pursuant to which the Company acquired Accu-Sort in 2003 provides certain indemnification for the Company with respect to this matter, and an arbitrator ordered the former owners of Accu-Sort to pay the Company a portion of the losses incurred by the Company in connection with this litigation.In April 2007, the Company received this payment from the former owners and recorded a pre-tax gain of $12 million ($7.8 million after-tax, or $0.02 per diluted share) which is included in other income in the accompanying Consolidated Statement of Earnings for the year ended December31, 2007. |
SEGMENT DATA:
SEGMENT DATA: | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
SEGMENT DATA: | (19)SEGMENT DATA: The Company currently operates in four reportable segments: Professional Instrumentation, Medical Technologies, Industrial Technologies and Tools Components. Operating profit represents total revenues less operating expenses, excluding other expense, interest and income taxes. The identifiable assets by segment are those used in each segments operations. Inter-segment amounts are not significant and are eliminated to arrive at consolidated totals. Detailed segment data for the years ended December31, 2009, 2008 and 2007 is presented in the following table ($ in thousands): 2009 2008 2007 Total Sales: Professional Instrumentation $ 4,330,695 $ 4,860,764 $ 3,537,912 Medical Technologies 3,141,916 3,277,026 2,997,986 Industrial Technologies 2,658,041 3,265,451 3,153,377 Tools Components 1,054,286 1,294,215 1,336,642 $ 11,184,938 $ 12,697,456 $ 11,025,917 Operating Profit: Professional Instrumentation $ 728,479 $ 907,254 $ 709,502 Medical Technologies 395,489 370,473 393,230 Industrial Technologies 383,241 522,112 532,477 Tools Components 124,814 157,673 175,634 Other (89,547 ) (88,035 ) (70,134 ) $ 1,542,476 $ 1,869,477 $ 1,740,709 Identifiable Assets: Professional Instrumentation $ 6,902,130 $ 6,585,262 $ 6,692,014 Medical Technologies 6,557,285 6,189,622 6,160,557 Industrial Technologies 3,355,804 3,394,792 3,536,156 Tools Components 742,846 787,469 801,117 Other 2,037,355 532,983 282,091 $ 19,595,420 $ 17,490,128 $ 17,471,935 Liabilities: Professional Instrumentation $ 1,637,315 $ 1,295,015 $ 1,286,739 Medical Technologies 1,681,549 1,521,717 1,489,739 Industrial Technologies 787,749 835,226 828,963 Tools Components 217,970 227,003 214,784 Other 3,640,661 3,802,605 4,566,022 $ 7,965,244 $ 7,681,566 $ 8,386,247 Depreciation and Amortization: Professional Instrumentation $ 134,801 $ 130,427 $ 64,802 Medical Technologies 127,846 123,481 119,673 Industrial Technologies 55,983 64,358 63,206 Tools Components 20,955 21,021 20,811 Other 2,002 $ 341,587 $ 339,287 $ 268,492 2009 2008 2007 Capital Expenditures, Gross Professional Instrumentation $ 46,904 $ 40,941 $ 39,010 Medical Technologies 54,212 61,725 47,618 Industrial Technologies 45,868 41,548 |
QUARTERLY DATA-UNAUDITED
QUARTERLY DATA-UNAUDITED ($ in thousands, except per share data): | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
QUARTERLY DATA-UNAUDITED ($ in thousands, except per share data): | (20)QUARTERLY DATA-UNAUDITED ($ in thousands, except per share data): 2009 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Net sales $ 2,627,744 $ 2,673,609 $ 2,750,693 $ 3,132,892 Gross profit 1,258,609 1,262,269 1,320,957 1,438,385 Operating profit 340,219 343,946 464,597 393,714 Net earnings 237,712 295,694 351,363 266,935 Earnings per share: Basic $ 0.74 $ 0.93 $ 1.09 $ 0.83 Diluted $ 0.72 $ 0.89 $ 1.05 $ 0.80 2008 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Net sales $ 3,028,874 $ 3,283,895 $ 3,208,181 $ 3,176,506 Gross profit 1,417,716 1,560,299 1,510,570 1,451,609 Operating profit 413,222 510,464 522,140 423,651 Net earnings 276,505 363,448 371,992 305,686 Earnings per share: Basic $ 0.87 $ 1.14 $ 1.16 $ 0.96 Diluted $ 0.83 $ 1.09 $ 1.11 $ 0.92 |
SCHEDULE II-VALUATION AND QUALI
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS | DANAHER CORPORATION AND SUBSIDIARIES SCHEDULE IIVALUATION AND QUALIFYING ACCOUNTS Classification Balanceat Beginning ofPeriod Charged toCosts Expenses Charged toother Accounts WriteOffs, WriteDowns Deductions Balanceat EndofPeriod Year Ended December31, 2009 Allowances deducted from asset account: Allowance for doubtful accounts: $ 120,730 $ 47,369 $ 2,394 (a) $ 37,390 $ 133,103 Year Ended December31, 2008 Allowances deducted from asset account: Allowance for doubtful accounts: $ 108,781 $ 34,957 $ 1,920 (a) $ 24,928 $ 120,730 Year Ended December31, 2007 Allowances deducted from asset account: Allowance for doubtful accounts: $ 102,369 $ 23,165 $ 5,340 (a) $ 22,093 $ 108,781 Notes: (a)Amounts related to businesses acquired, net of amounts related to businesses disposed. |
Document Information
Document Information | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Document Type | 10-K |
Amendment Flag | false |
Document Period End Date | 2009-12-31 |
Entity Information
Entity Information (USD $) | |||
12 Months Ended
Dec. 31, 2009 | Feb. 12, 2010
| Jul. 03, 2009
| |
Trading Symbol | DHR | ||
Entity Registrant Name | DANAHER CORP /DE/ | ||
Entity Central Index Key | 0000313616 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 323,482,284 | ||
Entity Public Float | $15,100,000,000 |