Danaher 2009 Annual Report Download - page 92

Table of Contents
indemnification agreement with the Company which provides for substantially similar indemnification rights and under which the Company has agreed to
pay expenses in advance of the final disposition of any such indemnifiable proceeding. While the Company maintains insurance for this type of liability, a
significant deductible applies to this coverage and any such liability could exceed the amount of the insurance coverage.

The provision for income taxes from continuing operations for the years ended December 31 consists of the following ($ in thousands):
  
Current:
Federal U.S. $297,288 $ 207,025 $263,078
Non - U.S. 106,551 180,401 103,511
State and local 23,409 16,560 26,642
Deferred:
Federal U.S. (38,191) 90,065 70,953
Non - U.S. (121,562) (65,423) (44,876)
State and Local 5,655 3,048 3,793
Income tax provision $ 273,150 $431,676 $423,101
Current deferred income tax assets are reflected in prepaid expenses and other current assets. Long-term deferred income tax liabilities are included in other
long-term liabilities in the accompanying Consolidated Balance Sheets. Deferred income taxes consist of the following ($ in thousands):
 
Bad debt allowance $35,560 $31,179
Inventories 81,396 84,154
Property, plant and equipment (54,836) (50,843)
Pension and postretirement benefits 192,298 230,134
Insurance, including self – insurance (35,548) (26,596)
Basis difference in LYONs (146,598) (122,999)
Goodwill and other intangibles (952,504) (849,414)
Environmental and regulatory compliance 33,251 29,712
Other accruals and prepayments 292,832 227,725
Deferred service income (155,457) (193,635)
Stock compensation expense 92,368 67,575
Tax credit and loss carryforwards 355,803 203,202
Unrealized gains on marketable securities (29,262) —
All other accounts 7,932 14,394
Net deferred tax liability $(282,765) $ (355,412)
Deferred taxes associated with temporary differences resulting from timing of recognition for income tax purposes of fees paid for services rendered between
consolidated entities are reflected as deferred service income in the above table. These fees are fully eliminated in consolidation and have no effect on reported
revenue, income or reported income tax expense. Deferred taxes associated with U.S. entities consisted of net deferred tax liabilities of approximately $478
million and $479 million as of December 31, 2009 and 2008, respectively. Deferred taxes associated with non-U.S. entities consisted of net deferred tax assets
of approximately $195 million and $124 million as of December 31, 2009 and 2008, respectively.
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Source: DANAHER CORP /DE/, 10-K, February 24, 2010 Powered by Morningstar® Document Research℠
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