CONSOLIDATED STATEMENT OF INCOM
CONSOLIDATED STATEMENT OF INCOME (USD $) | ||
In Millions, except Per Share data | 3 Months Ended
Mar. 31, 2010 | 3 Months Ended
Mar. 31, 2009 |
CONSOLIDATED STATEMENT OF INCOME | ||
Net sales | 1432.1 | 1348.2 |
Cost of sales (including special charges of $8.0 in 2009) | 716.7 | 707.9 |
Selling, general and administrative expenses | 558.1 | 516.3 |
Special gains and charges | 3.5 | 26.5 |
Operating income | 153.8 | 97.5 |
Interest expense, net | 15 | 15.8 |
Income before income taxes | 138.8 | 81.7 |
Provision for income taxes | 43.1 | 24 |
Net income including noncontrolling interest | 95.7 | 57.7 |
Less: Net income attributable to noncontrolling interest | 0.2 | 0.3 |
Net income attributable to Ecolab | 95.5 | 57.4 |
Net income attributable to Ecolab per common share | ||
Basic (in dollars per share) | 0.41 | 0.24 |
Diluted (in dollars per share) | 0.4 | 0.24 |
Dividends declared per common share (in dollars per share) | 0.155 | 0.14 |
Weighted-average common shares outstanding | ||
Basic (in shares) | 235.4 | 236.1 |
Diluted (in shares) | 239 | 238.1 |
1_CONSOLIDATED STATEMENT OF INC
CONSOLIDATED STATEMENT OF INCOME (Parenthetical) (USD $) | |
In Millions | 3 Months Ended
Mar. 31, 2009 |
CONSOLIDATED STATEMENT OF INCOME | |
Cost of sales, special charges | $8 |
CONSOLIDATED BALANCE SHEET
CONSOLIDATED BALANCE SHEET (USD $) | |||||||||||||||||||
In Millions | Mar. 31, 2010
| Dec. 31, 2009
| |||||||||||||||||
Current assets | |||||||||||||||||||
Cash and cash equivalents | 85.3 | 73.6 | |||||||||||||||||
Accounts receivable, net | 950.2 | 1016.1 | |||||||||||||||||
Inventories | 468.9 | 493.4 | |||||||||||||||||
Deferred income taxes | 86.2 | 83.9 | |||||||||||||||||
Other current assets | 127.7 | 147.2 | |||||||||||||||||
Total current assets | 1718.3 | 1814.2 | |||||||||||||||||
Property, plant and equipment, net | 1141.8 | 1176.2 | |||||||||||||||||
Goodwill | 1342.2 | 1414.1 | |||||||||||||||||
Other intangible assets, net | 295.6 | 312.5 | |||||||||||||||||
Other assets | 271.3 | 303.9 | |||||||||||||||||
Total assets | 4769.2 | 5020.9 | |||||||||||||||||
Current liabilities | |||||||||||||||||||
Short-term debt | 361.1 | 98.5 | |||||||||||||||||
Accounts payable | 316 | 360.9 | |||||||||||||||||
Compensation and benefits | 231.9 | 302.1 | |||||||||||||||||
Income taxes | 30.9 | 21.8 | |||||||||||||||||
Other current liabilities | 430.1 | 466.9 | |||||||||||||||||
Total current liabilities | 1,370 | 1250.2 | |||||||||||||||||
Long-term debt | 677.9 | 868.8 | |||||||||||||||||
Postretirement health care and pension benefits | 581.2 | 603.7 | |||||||||||||||||
Other liabilities | 271.6 | 288.6 | |||||||||||||||||
Equity (a) | |||||||||||||||||||
Common stock | 330.3 | [1] | 329.8 | [1] | |||||||||||||||
Additional paid-in capital | 1198.9 | 1179.3 | |||||||||||||||||
Retained earnings | 2957.1 | 2898.1 | |||||||||||||||||
Accumulated other comprehensive loss | -307.7 | -232.9 | |||||||||||||||||
Treasury stock | -2317.9 | -2173.4 | |||||||||||||||||
Total Ecolab shareholders' equity | 1860.7 | 2000.9 | |||||||||||||||||
Noncontrolling interest | 7.8 | 8.7 | |||||||||||||||||
Total equity | 1868.5 | 2009.6 | |||||||||||||||||
Total liabilities and equity | 4769.2 | 5020.9 | |||||||||||||||||
[1](a) Common stock, 400 million shares authorized, $1.00 par value per share, 233.9 million shares outstanding at March 31, 2010, 236.6 million shares outstanding at December 31, 2009. |
CONSOLIDATED BALANCE SHEET (Par
CONSOLIDATED BALANCE SHEET (Parenthetical) (USD $) | ||
Share data in Millions, except Per Share data | Mar. 31, 2010
| Dec. 31, 2009
|
CONSOLIDATED BALANCE SHEET | ||
Common stock, shares authorized | 400 | 400 |
Common stock, par value per share (in dollars per share) | $1 | $1 |
Common stock, shares outstanding | 233.9 | 236.6 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS (USD $) | ||
In Millions | 3 Months Ended
Mar. 31, 2010 | 3 Months Ended
Mar. 31, 2009 |
OPERATING ACTIVITIES | ||
Net income including noncontrolling interest | 95.7 | 57.7 |
Adjustments to reconcile net income including noncontrolling interest to cash provided by operating activities: | ||
Depreciation and amortization | 86.2 | 80.4 |
Deferred income taxes | 2.2 | 5.8 |
Share-based compensation expense | 4.4 | 7.9 |
Excess tax benefits from share-based payment arrangements | -2.6 | -0.2 |
Pension and postretirement plan contributions | -6.7 | -56.1 |
Pension and postretirement plan expense | 22.9 | 20.2 |
Restructuring, net of cash paid | 24.7 | |
Other, net | 4 | 2.3 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 19.2 | 45 |
Inventories | 5 | -5.8 |
Other assets | 13.1 | -20.9 |
Accounts payable | -31.3 | -48.2 |
Other liabilities | -76.7 | -85.4 |
Cash provided by operating activities | 135.4 | 27.4 |
INVESTING ACTIVITIES | ||
Capital expenditures | (51) | -51.2 |
Capitalized software expenditures | -8.6 | (8) |
Property sold | 0.8 | 0.7 |
Businesses acquired and investments in affiliates, net of cash acquired | -4.5 | |
Sale of businesses | 1.3 | |
Cash used for investing activities | -57.5 | (63) |
FINANCING ACTIVITIES | ||
Net issuances (repayments) of commercial paper and notes payable | 112.7 | 81.8 |
Long-term debt repayments | -1.4 | (2) |
Reacquired shares | -144.7 | -0.1 |
Cash dividends on common stock | -36.8 | (33) |
Exercise of employee stock options | 13.7 | 1.8 |
Excess tax benefits from share-based payment arrangements | 2.6 | 0.2 |
Cash provided by (used for) financing activities | -53.9 | 48.7 |
Effect of exchange rate changes on cash | -12.3 | -0.3 |
INCREASE IN CASH AND CASH EQUIVALENTS | 11.7 | 12.8 |
Cash and cash equivalents, beginning of period | 73.6 | 66.7 |
Cash and cash equivalents, end of period | 85.3 | 79.5 |
Consolidated Financial Informat
Consolidated Financial Information | |
3 Months Ended
Mar. 31, 2010 | |
Consolidated Financial Information | |
Consolidated Financial Information | 1. Consolidated Financial Information The unaudited consolidated financial information for the first quarter ended March31, 2010 and 2009, reflect, in the opinion of management, all adjustments necessary for a fair presentation of the financial position, results of operations and cash flows of Ecolab Inc. (the company) for the interim periods presented. The financial results for any interim period are not necessarily indicative of results for the full year. The consolidated balance sheet data as of December31, 2009 was derived from the audited consolidated financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. The unaudited consolidated financial information should be read in conjunction with the consolidated financial statements and notes thereto incorporated in the companys Annual Report on Form10-K for the year ended December31, 2009. With respect to the unaudited financial information of the company for the first quarter ended March31, 2010 and 2009 included in this Form10-Q, PricewaterhouseCoopers LLP reported that they have applied limited procedures in accordance with professional standards for a review of such information. Therefore, their separate report dated May6, 2010 appearing herein, states that they did not audit and they do not express an opinion on that unaudited financial information. Accordingly, the degree of reliance on their report on such information should be restricted in light of the limited nature of the review procedures applied. PricewaterhouseCoopers LLP is not subject to the liability provisions of Section11 of the Securities Act of 1933, as amended (the Act) for their report on the unaudited financial information because that report is not a report or a part of a registration statement prepared or certified by PricewaterhouseCoopers LLP within the meaning of Sections 7 and 11 of the Act. |
Special Gains and Charges
Special Gains and Charges | |
3 Months Ended
Mar. 31, 2010 | |
Special Gains and Charges | |
Special Gains and Charges | 2. Special Gains and Charges Special gains and charges reported on the Consolidated Statement of Income include the following: First Quarter Ended March31 March31 (millions) 2010 2009 Cost of sales Restructuring charges $ $ 8.0 Special gains and charges Restructuring charges 24.7 Venezuela currency devaluation 4.2 Business structure and optimization 0.6 1.0 Business write-downs and closures (1.0 ) Other items (0.3 ) 0.8 Total 3.5 26.5 Total special gains and charges $ 3.5 $ 34.5 Beginning in 2010, Venezuela has been designated hyper-inflationary and as such all foreign currency fluctuations are recorded in income. On January8, 2010 the Venezuelan government devalued its currency (Bolivar Fuerte). As a result of the devaluation, the company recorded a charge of $4.2 million in the first quarter of 2010 due to remeasurement of the local balance sheet using the official rate of exchange for the Bolivar Fuerte. In 2009, the company completed restructuring and other cost-saving actions in order to streamline operations and improve efficiency and effectiveness. The restructuring included a reduction of the companys global workforce by 950 positions or 4% and the reduction of plant and distribution center locations during 2009. As a result of these actions, the company recorded restructuring charges of $32.7 million ($20.9 million after tax) in the first quarter of 2009. The restructuring plan was finalized and all actions, except for certain cash payments, were completed as of December31, 2009. The restructuring charges and subsequent reductions to the related liability accounts include the following: Employee Termination (millions) Costs Disposals Other Total First Quarter 2009: Recorded expense and accrual $ 31.2 $ 0.6 $ 0.9 $ 32.7 Cash payments (8.0 ) (8.0 ) Non-cash charges (0.6 ) (0.9 ) (1.5 ) Restructuring liability, March31, 2009 $ 23.2 $ $ $ 23.2 First Quarter 2010: Restructuring liability December31, 2009 $ 18.6 $ $ 1.4 $ 20.0 Cash payments (8.0 ) (0.9 ) (8.9 ) Effect of foreign currency translation (0.6 ) (0.6 ) Restructuring liability, March31, 2010 $ 10.0 $ $ 0.5 $ 10.5 Restructuring charges have been included as a component of both cost of sales and special gains and charges on the Consolidated Statement of Income for 2009. Amounts included as a component of cost of sales include asset write-downs and manufacturing related severance. Restructuring liabilities have been classified as a component of other current liabilities on the Consolidated Balance Sheet. The majority of the remaining accrued amount is expected to be paid in 2010. Employee termination costs include personnel reductions and related costs for severance, benefits and outplacement services. Asset disposals include inventory and intangible asset write-downs related to the discontinuance of product |
Selected Balance Sheet Informat
Selected Balance Sheet Information | |
3 Months Ended
Mar. 31, 2010 | |
Selected Balance Sheet Information | |
Selected Balance Sheet Information | 3. Selected Balance Sheet Information March31 December31 (millions) 2010 2009 Accounts receivable, net Accounts receivable $ 995.2 $ 1,068.5 Allowance for doubtful accounts (45.0 ) (52.4 ) Total $ 950.2 $ 1,016.1 Inventories Finished goods $ 274.3 $ 293.4 Raw materials and parts 217.2 222.9 Inventories at FIFO cost 491.5 516.3 Excess of FIFO cost over LIFO cost (22.6 ) (22.9 ) Total $ 468.9 $ 493.4 Property, plant and equipment, net Land $ 28.1 $ 28.8 Buildings and leaseholds 345.0 350.5 Machinery and equipment 702.4 718.0 Merchandising equipment 1,404.3 1,424.2 Capitalized software 265.6 236.6 Construction in progress 74.6 108.4 2,820.0 2,866.5 Accumulated depreciation (1,678.2 ) (1,690.3 ) Total $ 1,141.8 $ 1,176.2 Other intangible assets, gross Customer relationships $ 282.7 $ 301.6 Intellectual property 84.5 83.9 Trademarks 114.3 115.7 Other intangibles 59.3 59.5 540.8 560.7 Accumulated amortization Customer relationships (156.8 ) (163.2 ) Intellectual property (31.0 ) (29.7 ) Trademarks (40.2 ) (39.4 ) Other intangibles (17.2 ) (15.9 ) Other intangible assets, net $ 295.6 $ 312.5 Other assets Deferred income taxes $ 109.1 $ 139.6 Pension 9.2 9.8 Other 153.0 154.5 Total $ 271.3 $ 303.9 March31 December31 (millions) 2010 2009 Short-term debt Notes payable $ 203.4 $ 90.6 Long-term debt, current maturities 157.7 7.9 Total $ 361.1 $ 98.5 Other current liabilities Discounts and rebates $ 217.6 $ 218.5 Dividends payable 36.6 36.8 Interest payable 8.3 9.6 Taxes payable, other than income 38.8 57.8 Foreign exchange contracts 5.6 5.7 Restructuring 10.5 20.0 Other 112.7 118.5 Total $ 430.1 $ 466.9 Other liabilities Deferred income taxes $ 80.2 $ 86.7 Income taxes payable - non-current 76.6 82.7 Other 114.8 119.2 Total $ 271.6 $ 288.6 Accumulated other comprehensive loss Unrealized loss on financial instruments, net of tax $ (2.6 ) $ (3.7 ) Unrecognized pension and postretirement benefit expense (411.7 ) (426.1 ) Cumulative translation 106.6 196.9 Total $ (307.7 ) $ (232.9 ) |
Interest
Interest | |
3 Months Ended
Mar. 31, 2010 | |
Interest | |
Interest | 4. Interest First Quarter Ended March31 March31 (millions) 2010 2009 Interest expense $ 16.3 $ 17.8 Interest income (1.3 ) (2.0 ) Interest expense, net $ 15.0 $ 15.8 |
Financial Instruments and Hedgi
Financial Instruments and Hedging Transactions | |
3 Months Ended
Mar. 31, 2010 | |
Financial Instruments and Hedging Transactions | |
Financial Instruments and Hedging Transactions | 5. Financial Instruments and Hedging Transactions The carrying amount and the estimated fair value of financial instruments held by the company were: March31,2010 December31,2009 Carrying Fair Carrying Fair (millions) Amount Value Amount Value Assets Cash and cash equivalents $ 85.3 $ 85.3 $ 73.6 $ 73.6 Accounts receivable, net 950.2 950.2 1,016.1 1,016.1 Foreign currency forward contracts 1.8 1.8 3.2 3.2 Liabilities Foreign currency forward contracts 5.6 5.6 5.7 5.7 Notes payable 35.4 35.4 16.2 16.2 Commercial paper 168.0 168.0 74.4 74.4 Long-term debt (including current maturities) 835.6 880.0 876.7 908.7 The carrying amount of cash equivalents, accounts receivable, notes payable and commercial paper approximate fair value because of their short maturities. The carrying amount of foreign exchange contracts is at fair value, which is determined based on foreign currency exchange rates as of the balance sheet date (level 2 - significant other observable inputs). The fair value of long-term debt is based on quoted market prices for the same or similar debt instruments. The company has concluded that it does not have any amounts of financial assets and liabilities measured using the companys own assumptions of fair market value (level 3 - unobservable inputs). Derivative Instruments and Hedging The company uses foreign currency forward contracts, interest rate swaps and foreign currency debt to manage risks associated with foreign currency exchange rates, interest rates and net investments in foreign operations. The company records all derivatives as assets and liabilities on the balance sheet at fair value. Changes in fair value are recognized immediately in earnings unless the derivative qualifies and is designated as a hedge. The effective portion of changes in fair value of hedges are initially recognized in accumulated other comprehensive income (AOCI) on the Consolidated Balance Sheet. Amounts recorded in AOCI are reclassified into earnings in the same period or periods during which the hedged transactions affect earnings. The company evaluates hedge effectiveness at inception and on an ongoing basis. If a derivative is no longer expected to be effective, hedge accounting is discontinued. Hedge ineffectiveness, if any, is recorded in earnings. The company does not hold derivative financial instruments of a speculative nature. The company is exposed to credit loss in the event of nonperformance of counterparties for foreign currency forward exchange contracts and interest rate swap agreements. The company monitors its exposure to credit risk by using credit approvals and credit limits and by selecting major international banks and financial institutions as counterparties. The company does not anticipate nonperformance by any of these counterparties. Derivatives Designated as Cash Flow Hedges The company utilizes foreign currency forward contracts to hedge the effect of foreign currency exchange rate f |
Comprehensive Income
Comprehensive Income | |
3 Months Ended
Mar. 31, 2010 | |
Comprehensive Income | |
Comprehensive Income | 6. Comprehensive Income First Quarter Ended March31 (millions) 2010 2009 (unaudited) Net income including noncontrolling interest $ 95.7 $ 57.7 Other comprehensive income (loss), net of tax Foreign currency translation (90.3 ) (24.3 ) Derivative instruments 1.1 0.7 Pension and postretirement benefits 14.4 2.8 Total (74.8 ) (20.8 ) Total comprehensive income, including noncontrolling interest 20.9 36.9 Less: Comprehensive income (loss) attributable to noncontrolling interest (0.9 ) 0.1 Comprehensive income attributable to Ecolab $ 21.8 $ 36.8 |
Business Acquisitions and Dispo
Business Acquisitions and Dispositions | |
3 Months Ended
Mar. 31, 2010 | |
Business Acquisitions and Dispositions | |
Business Acquisitions and Dispositions | 7. Business Acquisitions and Dispositions There were no acquisitions or material business disposals during the first quarter of 2010. There were no business disposals during the first quarter of 2009. In February2009, the company acquired assets of the Stackhouse business of CORPAK Medsystems,Inc. Stackhouse is a leading developer, manufacturer and marketer of surgical helmets and smoke evacuators, primarily for use during orthopedic surgeries. The business, which has annual sales of approximately $4 million, became part of the companys U.S. Cleaning Sanitizing operations during the first quarter of 2009. Acquisitions in 2009 are not material to the companys consolidated financial statements; therefore pro forma financial information is not presented. The aggregate purchase price of acquisitions has been reduced for any cash or cash equivalents acquired with the acquisitions. Based upon purchase price allocations, the components of the aggregate purchase prices of acquisitions and investments in affiliates made were as follows: First Quarter Ended March31 (millions) 2009 Net tangible assets acquired $ 2.3 Identifiable intangible assets Customer relationships 0.9 Intellectual property 1.0 Total 1.9 Goodwill 0.3 Net cash paid for acquisitions $ 4.5 The changes in the carrying amount of goodwill for each of the companys reportable segments for the first quarter ended March31, 2010 were as follows: UnitedStates (unaudited) Cleaning Other (millions) Sanitizing Services Total International Consolidated Balance as of December31, 2009 Goodwill $ 446.8 $ 50.5 $ 497.3 $ 920.8 $ 1,418.1 Accumulated impairment loss(1) (4.0 ) (4.0 ) Goodwill, net 446.8 50.5 497.3 916.8 1,414.1 Goodwill allocated to business disposals (0.1 ) (0.1 ) Foreign currency translation (71.8 ) (71.8 ) Total change (71.9 ) (71.9 ) Balance as of March31, 2010 Goodwill 446.8 50.5 497.3 848.9 1,346.2 Accumulated impairment loss(1) (4.0 ) (4.0 ) Goodwill, net $ 446.8 $ 50.5 $ 497.3 $ 844.9 $ 1,342.2 (1)Since adoption of FASB guidance for goodwill and other intangibles on January1, 2002. |
Net Income Attributable to Ecol
Net Income Attributable to Ecolab Per Common Share | |
3 Months Ended
Mar. 31, 2010 | |
Net Income Attributable to Ecolab Per Common Share | |
Net Income Attributable to Ecolab Per Common Share | 8. Net Income Attributable to Ecolab Per Common Share The computations of the basic and diluted net income attributable to Ecolab per share amounts were as follows: First Quarter Ended March31 (millions, except per share) 2010 2009 Net income attributable to Ecolab $ 95.5 $ 57.4 Weighted-average common shares outstanding Basic 235.4 236.1 Effect of dilutive stock options and awards 3.6 2.0 Diluted 239.0 238.1 Net income attributable to Ecolab per common share Basic $ 0.41 $ 0.24 Diluted $ 0.40 $ 0.24 Anti-dilutive stock options and performance-based restricted units excluded from the computation of diluted shares 7.4 15.1 Unvested restricted stock awards excluded from the computation of basic shares 0.1 0.1 |
Pension and Postretirement Plan
Pension and Postretirement Plans | |
3 Months Ended
Mar. 31, 2010 | |
Pension and Postretirement Plans | |
Pension and Postretirement Plans | 9. Pension and Postretirement Plans The components of net periodic pension and postretirement health care benefit costs for the first quarter ended March31 are as follows: U.S. Pension Benefits U.S. (qualified and non- International Postretirement (unaudited) qualified plans) Pension Benefits Health Care Benefits (millions) 2010 2009 2010 2009 2010 2009 Service cost $ 12.7 $ 11.8 $ 4.9 $ 3.8 $ 0.5 $ 0.5 Interest cost on benefit obligation 15.6 14.8 6.9 5.9 2.2 2.4 Expected return on plan assets (22.5 ) (18.9 ) (4.4 ) (3.9 ) (0.4 ) (0.4 ) Recognition of net actuarial loss 6.2 4.0 1.0 0.4 0.1 1.1 Amortization of prior service cost (benefit) 0.1 0.1 0.1 0.1 (0.1 ) (1.5 ) Curtailment and settlement loss 0.9 Total expense $ 12.1 $ 11.8 $ 8.5 $ 6.3 $ 2.3 $ 3.0 The company is not required to make any contributions to its U.S. pension plan and postretirement health care benefits plan for 2010. Certain international pension benefit plans are required to be funded in accordance with local government requirements. The company contributed $6.7 million to its international pension benefit plans during the first quarter of 2010. The company currently estimates that it will contribute approximately $20 million more to the international pension benefit plans during the remainder of 2010. |
Operating Segments
Operating Segments | |
3 Months Ended
Mar. 31, 2010 | |
Operating Segments | |
Operating Segments | 10. Operating Segments Financial information for each of the companys reportable segments is as follows: First Quarter Ended March31 (millions) 2010 2009 Net Sales United States Cleaning Sanitizing $ 632.3 $ 622.9 Other Services 104.7 107.1 Total 737.0 730.0 International 699.6 683.5 Subtotal at fixed currency rates 1,436.6 1,413.5 Effect of foreign currency translation (4.5 ) (65.3 ) Consolidated $ 1,432.1 $ 1,348.2 Operating Income United States Cleaning Sanitizing $ 113.4 $ 102.6 Other Services 14.6 13.2 Total 128.0 115.8 International 37.2 25.4 Corporate (11.9 ) (39.1 ) Subtotal at fixed currency rates 153.3 102.1 Effect of foreign currency translation 0.5 (4.6 ) Consolidated $ 153.8 $ 97.5 The International amounts included above are based on translation into U.S. dollars at the fixed currency exchange rates used by management for 2010. Consistent with the companys internal management reporting, the Corporate segment includes special gains and charges reported on the Consolidated Statement of Income. The Corporate segment also includes investments in the development of business systems and other corporate investments the company is making as part of ongoing efforts to improve efficiency and returns. Total service revenue for the U.S. Other Services and International segments, at public exchange rates are as follows: First Quarter Ended March31 (millions) 2010 2009 U.S. Other Services $ 87.8 $ 89.6 International 44.4 38.4 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | |
3 Months Ended
Mar. 31, 2010 | |
Goodwill and Other Intangible Assets | |
Goodwill and Other Intangible Assets | 11. Goodwill and Other Intangible Assets The company tests goodwill for impairment on an annual basis during the second quarter. If circumstances change significantly, the company would also test a reporting unit for impairment during interim periods between its annual tests. The straight-line method of amortization reflects an appropriate allocation of the cost of the intangible assets to earnings in proportion to the amount of economic benefits obtained by the company in each reporting period. Total amortization expense related to other intangible assets during the first quarters ended March31, 2010 and 2009 was $10.3 million and $10.0 million, respectively. As of March31, 2010, future estimated amortization expense related to amortizable other identifiable intangible assets will be: (unaudited) (millions) 2010 (Remainder: nine-month period) $ 33 2011 42 2012 41 2013 38 2014 28 |
New Accounting Pronouncements
New Accounting Pronouncements | |
3 Months Ended
Mar. 31, 2010 | |
New Accounting Pronouncements | |
New Accounting Pronouncements | 12. New Accounting Pronouncements There were no new accounting pronouncements issued or effective that have had or are expected to have a material impact on the companys consolidated financial statements. |
Commitments and Contingencies
Commitments and Contingencies | |
3 Months Ended
Mar. 31, 2010 | |
Commitments and Contingencies | |
Commitments and Contingencies | 13. Commitments and Contingencies The company and certain subsidiaries are party to various lawsuits, claims and environmental actions that have arisen in the ordinary course of business. These include antitrust, patent infringement, product liability and wage hour lawsuits, as well as possible obligations to investigate and mitigate the effects on the environment of the disposal or release of certain chemical substances at various sites, such as Superfund sites and other operating or closed facilities. Because litigation is inherently uncertain, and unfavorable rulings or developments could occur, there can be no certainty that the company may not ultimately incur charges in excess of presently recorded liabilities. A future adverse ruling, settlement or unfavorable development could result in future charges that could have a material adverse effect on the companys results of operations or cash flows in the period in which they are recorded. The company currently believes that such future charge, if any, would not have a material adverse effect on the companys consolidated financial position. The company records liabilities where a contingent loss is probable and can be reasonably estimated. If the reasonable estimate of a probable loss is a range, the company records the most probable estimate of the loss or the minimum amount when no amount within the range is a better estimate than any other amount. The company discloses a contingent liability even if the liability is not probable or the amount is not estimable, or both, if there is a reasonable possibility that a material loss may have been incurred. The company is a defendant in three wage hour lawsuits in the Southern District of New York, one of which has been certified for class-action status. The company has entered into a settlement agreement covering these suits which has been preliminarily approved by the court and is subject to final approval. The company has fully accrued for the settlement amount, which is not material to the companys consolidated results of operations or financial position. |
Document and Entity Information
Document and Entity Information | ||
3 Months Ended
Mar. 31, 2010 | Apr. 30, 2010
| |
Document and Entity Information | ||
Entity Registrant Name | ECOLAB INC | |
Entity Central Index Key | 0000031462 | |
Document Type | 10-Q | |
Document Period End Date | 2010-03-31 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 233,372,148 | |
Document Fiscal Year Focus | 2,010 | |
Document Fiscal Period Focus | Q1 |