Danaher 2009 Annual Report Download - page 15

Table of Contents
Environmental Laws and Regulations
Our operations are subject to environmental laws and regulations in the jurisdictions in which they operate, which impose limitations on the discharge of
pollutants into the ground, air and water and establish standards for the use, generation, treatment, storage and disposal of hazardous and non-hazardous
wastes. A number of our operations involve the handling, manufacturing, use or sale of substances that are or could be classified as hazardous materials
within the meaning of applicable laws. We must also comply with various health and safety regulations in both the United States and abroad in connection
with our operations. Compliance with these laws and regulations has not had and, based on current information and the applicable laws and regulations
currently in effect, is not expected to have a material adverse effect on our capital expenditures, earnings or competitive position, and we do not anticipate
material capital expenditures for environmental control facilities. For a discussion of risks related to compliance with environmental and health and safety
laws, please refer to “Item 1A. Risk Factors.”
In addition to environmental compliance costs, we from time to time incur costs related to alleged damages associated with past or current waste disposal
practices or other hazardous materials handling practices. For example, generators of hazardous substances found in disposal sites at which environmental
problems are alleged to exist, as well as the current and former owners of those sites and certain other classes of persons, are subject to claims brought by state
and federal regulatory agencies pursuant to statutory authority. We have received notification from the U.S. Environmental Protection Agency, and from state
and non-U.S. environmental agencies, that conditions at a number of sites where we and others previously disposed of hazardous wastes and/or are or were
property owners require clean-up and other possible remedial action, including sites where we have been identified as a potentially responsible party under
U.S. federal and state environmental laws and regulations. We have projects underway at a number of current and former facilities, in both the United States
and abroad, to investigate and remediate environmental contamination resulting from past operations. We are also from time to time party to personal injury or
other claims brought by private parties alleging injury due to the presence of or exposure to hazardous substances.
We have made a provision for environmental investigation and remediation and environmental-related personal injury claims with respect to sites owned or
formerly owned by the Company and its subsidiaries and third-party sites where we have been determined to be a potentially responsible party. Refer to Note 8
to the Consolidated Financial Statements for information about the amount of our environmental provisions. We generally make an assessment of the costs
involved for our remediation efforts based on environmental studies, as well as our prior experience with similar sites. If the Company determines that potential
remediation liability for a particular site is probable and reasonably estimable, it accrues the total estimated costs, including investigation and remediation
costs, associated with the site. We also accrue a liability for our exposure for probable and reasonably estimable environmental-related personal injury claims.
While we actively pursue insurance recoveries, as well as recoveries from other potentially responsible parties, we do not recognize any insurance recoveries for
environmental liability claims until realized or until such time as a sustained pattern of collections is established related to historical matters of a similar nature
and magnitude.
The ultimate cost of site cleanup is difficult to predict given the uncertainties of our involvement in certain sites, uncertainties regarding the extent of the
required cleanup, the availability of alternative cleanup methods, variations in the interpretation of applicable laws and regulations, the possibility of
insurance recoveries with respect to certain sites and the fact that imposition of joint and several liability with right of contribution is possible under the
Comprehensive Environmental Response, Compensation and Liability Act of 1980 and other environmental laws and regulations. All provisions have been
recorded without giving effect to any possible future third party recoveries. For the reasons described above, we cannot assure you that our estimates of
environmental liabilities will not change.
In view of our financial position and provisions for environmental remediation matters and environmental-related personal injury claims and based on current
information and the applicable laws and regulations currently in effect, we believe that our liability related to past or current waste disposal practices and other
hazardous materials handling practices will not have a material adverse effect on our results of operations, financial condition or cash flow. For a discussion
of risks related to past or future releases of, or exposures to, hazardous substances, please refer to “Item 1A. Risk Factors.”
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Source: DANAHER CORP /DE/, 10-K, February 24, 2010 Powered by Morningstar® Document Research℠
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