Danaher 2009 Annual Report Download - page 91

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In addition, the Company’s 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 the Company’s 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. The Company 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 the Company’s capital expenditures, earnings or
competitive position, and the Company does not anticipate material capital expenditures for environmental control facilities.
In addition to environmental compliance costs, the Company from time to time incurs 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. The Company has 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 the Company 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 the Company has
been identified as a potentially responsible party under U.S. federal and state environmental laws and regulations. The Company has 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. The Company is 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.
The Company has made a provision for environmental investigation and remediation and environmental-related personal injury claims with respect to sites
owned or formerly owned by it and its subsidiaries and third-party sites where the Company or any of its subsidiaries have been determined to be a potentially
responsible party. The Company generally makes an assessment of the costs involved for remediation efforts based on environmental studies as well as its
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. The Company also accrues a liability for its exposure
for probable and reasonably estimable environmental-related personal injury claims. While the Company actively pursues insurance recoveries as well as
recoveries from other potentially responsible parties, it does not recognize any insurance recoveries until realized or until such time as a sustained pattern of
collections is established related to historical matters of a similar nature and magnitude. Refer to Note 8.
The ultimate cost of site cleanup is difficult to predict given the uncertainties of the Company’s 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, the Company cannot assure that its estimates of
environmental liabilities will not change.
In view of the Company’s 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, the Company believes that its liability related to past or current waste
disposal practices and other hazardous materials handling practices will not have a material adverse effect on its results of operations, financial condition or
cash flow.
The Company’s Certificate of Incorporation requires it to indemnify to the full extent authorized or permitted by law any person made, or threatened to be made
a party to any action or proceeding by reason of his or her service as a director or officer of the Company, or by reason of serving at the request of the
Company as a director or officer of any other entity, subject to limited exceptions. The Company’s Amended and Restated By-laws provide for similar
indemnification rights. In addition, the Company has executed with each of its directors and executive officers an
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Source: DANAHER CORP /DE/, 10-K, February 24, 2010 Powered by Morningstar® Document Research℠
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