Danaher 2009 Annual Report Download - page 72

Table of Contents
Foreign Currency Translation—Exchange rate adjustments resulting from foreign currency transactions are recognized in net earnings, whereas adjustments
resulting from the translation of financial statements are reflected as a component of accumulated other comprehensive income within stockholders’ equity. Net
foreign currency transaction gains or losses were not material in any of the years presented.
Accumulated Other Comprehensive Income (Loss) —The components of accumulated other comprehensive income (loss) as of December 31 are summarized
below. Foreign currency translation adjustments are generally not adjusted for income taxes as they relate to indefinite investments in non-US subsidiaries ($ in
millions).
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Foreign currency translation adjustment $ 610.7 $ 237.5 $597.0
Unrealized gain on available-for-sale securities, net of income tax 54.3 — —
Unrecognized pension and post-retirement costs, net of income tax (318.1) (340.6) (54.3)
$ 346.9 $(103.1) $ 542.7
See Notes 10 and 11 for additional information related to the unrecognized pension and post-retirement cost components of accumulated other comprehensive
income (loss).
Accounting for Stock Options—The Company accounts for stock-based compensation by measuring the cost of employee services received in exchange for all
equity awards granted, including stock options, restricted stock units (“RSUs”) and restricted shares, based on the fair value of the award as of the grant
date. Equity-based compensation expense is recognized net of an estimated forfeiture rate on a straight-line basis over the requisite service period of the award.
In the case of performance based share-based awards, compensation expense is recognized on an accelerated attribution method.
Pension & Post Retirement Benefit Plans —The Company measures its pension and post retirement plans’ assets and its obligations that determine the
respective plan’s funded status as of the end of the Company’s fiscal year, and recognizes an asset for a plan’s over funded status or a liability for a plan’s
under funded status in its statement of financial position. Changes in the funded status of the plans are recognized in the year in which the changes occur and
reported in comprehensive income (loss).
The accounting standard requiring the Company to measure the plan assets and benefit obligations as of the date of the Company’s fiscal year end in the
statement of financial position was effective and adopted by the Company as of the year ended December 31, 2008. Prior to measuring the plan assets and
benefit obligations as of December 31 as required by the new accounting standard, the majority of the Company’s pension and postretirement plans used a
September 30 measurement date. The adoption of the December 31 measurement date increased long-term liabilities by approximately $6 million and decreased
stockholders’ equity by approximately $4 million on the date of adoption. There was no effect on the Company’s results of operations or cash flows.
Subsequent Events—The Company has evaluated subsequent events through February 24, 2010 for recording or disclosure in these financial statements.
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Effective January 1, 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
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Source: DANAHER CORP /DE/, 10-K, February 24, 2010 Powered by Morningstar® Document Research℠
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