Danaher 2009 Annual Report Download - page 48

Table of Contents
LIQUIDITY AND CAPITAL RESOURCES
Management assesses the Company’s liquidity in terms of its ability to generate cash to fund its operating, investing and financing activities.
The Company’s ability to access the commercial paper market and the other capital markets has not been affected adversely by the recent uncertainty in the
financial markets. The Company continues to generate substantial cash from operating activities and believes that its cash flow and other sources of liquidity,
primarily its commercial paper program and committed credit facility, will be sufficient to allow it to continue investing in existing businesses and strategic
acquisitions and maintain its capital structure on a short and long-term basis. For a discussion of risks related to the uncertainty in the financial markets and
the global economy in general, please refer to “Item 1A. Risk Factors.”
Overview of Cash Flows and Liquidity
 
  
Operating cash flows from continuing operations $1,800.8 $1,859.0 $1,699.3
Operating cash flows used by discontinued operations — — (53.5)
Net cash flows from operating activities 1,800.8 1,859.0 1,645.8
Purchases of property, plant and equipment (188.5) (193.8) (162.1)
Cash paid for acquisitions (703.5) (423.2) (3,576.6)
Cash paid for investment in acquisition targets and other marketable securities (66.8) — (23.2)
Other sources 15.9 49.6 316.8
Investing cash flows from continued operations (942.9) (567.4) (3,445.1)
Investing cash flows from discontinued operations — — (0.7)
Net cash used in investing activities (942.9) (567.4) (3,445.8)
Proceeds from the issuance of common stock 174.2 82.4 733.0
Debt (repayments) proceeds, net of new borrowings (excluding March 2009 public debt offering) (469.9) (1,092.3) 1,131.0
Proceeds of March 2009 public debt offering 744.6 — —
Purchase of treasury stock — (74.2) (117.5)
Payment of dividends (41.7) (38.2) (34.3)
Net cash provided by / (used in) financing activities 407.2 (1,122.3) 1,712.2
• Operating cash flow from continuing operations, a key source of the Company’s liquidity, decreased $58 million during 2009, or approximately
3%, as compared to 2008.
• Funding for acquisitions constituted the most significant use of cash during 2009. The Company acquired fifteen businesses during 2009. Total
consideration paid for these acquisitions was approximately $704 million in cash, net of cash acquired. In addition, the Company used
approximately $67 million in cash for other investment opportunities.
• The Company repaid approximately $470 million of debt (net of new borrowings, other than the proceeds from the March 2009 public debt
offering) during 2009.
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Source: DANAHER CORP /DE/, 10-K, February 24, 2010 Powered by Morningstar® Document Research℠
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