Danaher 2009 Annual Report Download - page 75

Table of Contents
The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition for each of the individually
significant acquisitions in 2007 discussed above, and all of the other 2007 acquisitions as a group ($ in thousands):
2007 Acquisitions
   
Accounts receivable $149,315 $ 33,982 $16,902 $200,199
Inventory 181,753 6,541 19,042 207,336
Property, plant and equipment 185,567 10,655 5,981 202,203
Goodwill 1,874,578 330,847 250,048 2,455,473
Other intangible assets, primarily customer relationships, trade names
and patents 720,000 72,000 92,263 884,263
In-process research and development 60,400 — — 60,400
Refundable escrowed purchase price 48,504 — — 48,504
Accounts payable (35,919) (11,468) (10,230) (57,617)
Other assets and liabilities, net (401,308) (17,891) (1,219) (420,418)
Assumed debt — — (3,781) (3,781)
Net cash consideration $2,782,890 $424,666 $369,006 $3,576,562
The unaudited pro forma information for the periods set forth below gives effect to the above noted acquisitions as if they had occurred at the beginning of the
annual period presented. The pro forma information is presented for informational purposes only and is not necessarily indicative of the results of operations
that actually would have been achieved had the acquisitions been consummated as of that time (unaudited, $ in thousands except per share amounts):
 
Net sales $11,470,791 $13,318,097
Net earnings $ 1,154,704 $1,319,928
Diluted earnings per share $3.47 $3.96
In connection with its acquisitions, the Company assesses and formulates a plan related to the future integration of the acquired entity. This process begins
during the due diligence process and is concluded within twelve months of the acquisition. As a result of the new business combination accounting standards
that became effective on January 1, 2009, all integration related costs, including workforce reduction and restructuring costs as well as facility closure and
realignment costs, associated with acquisitions completed after December 31, 2008 are expensed as incurred. In addition, all legal, investment banking and
other direct transaction costs associated with due diligence related to acquisitions pending and completed after December 31, 2008 are expensed as incurred
under these new accounting standards. During 2009, in connection with pending or completed acquisitions, the Company has incurred $24 million of pre-tax
transaction related costs, primarily banking fees and amounts paid to third party advisers. In addition, the Company’s earnings for 2009 reflect the impact of
pre-tax charges totaling $13 million associated with fair value adjustments to acquired inventory and acquired deferred revenue related to completed
acquisitions.
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Source: DANAHER CORP /DE/, 10-K, February 24, 2010 Powered by Morningstar® Document Research℠
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