Danaher 2011 Annual Report Download - page 49

Table of Contents
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Management assesses the Company’s liquidity in terms of its ability to generate cash to fund its operating, investing and financing activities. The Company
continues to generate substantial cash from operating activities and believes that its operating cash flow and other sources of liquidity will be sufficient to allow
it to continue investing in existing businesses, consummating strategic acquisitions, paying interest and servicing debt and managing its capital structure on a
short and long-term basis.

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($ in millions)   
Total operating cash flows from continuing operations $2,732.0 $ 2,018.7 $1,722.8
Payments for additions to property, plant and equipment (334.5) (191.1) (175.4)
Cash paid for acquisitions (6,210.8) (2,129.7) (703.5)
Cash paid for other investments — — (66.8)
Proceeds from sale of discontinued operations 680.1 — —
Other sources 17.9 31.9 2.8
Net cash used in investing activities (5,847.3) (2,288.9) (942.9)
Proceeds from the issuance of common stock 1,112.5 178.4 174.2
Repayments of long-term debt (1,602.4) (9.4) (24.2)
Proceeds from public debt offerings 1,785.8 — 744.6
Net proceeds (repayment) of borrowings with maturities of less than 90 days 854.0 — (445.7)
Payment of dividends (61.3) (52.2) (41.7)
Net cash provided by financing activities 2,088.6 116.8 407.2
• Operating cash flows from continuing operations, a key source of the Company’s liquidity, increased $713 million, or approximately 35%,
during 2011 as compared to 2010.
• Acquisitions constituted the most significant use of cash during 2011. The Company acquired fourteen businesses during 2011, including the
acquisition of Beckman Coulter, for total consideration (net of cash acquired) of approximately $6.2 billion.
• The Company financed the $5.5 billion acquisition of Beckman Coulter using (1) approximately $2.3 billion of available cash, (2) net proceeds,
after expenses and the underwriters’ discount, of approximately $966 million from the underwritten public offering of the Company’s common
stock on June 21, 2011, (3) net proceeds, after expenses and the underwriters’ discount, of approximately $1.8 billion from the underwritten
public offering of senior unsecured notes on June 23, 2011, and (4) net proceeds from the sale of additional commercial paper under the
Company’s U.S. commercial paper program prior to the closing of the acquisition. The Company also assumed approximately $1.6 billion of
indebtedness and acquired approximately $450 million of cash in connection with the acquisition. During the third quarter of 2011, the Company
retired substantially all of the acquired Beckman Coulter debt using proceeds from the issuance of U.S. dollar commercial paper and recorded an
approximate $33 million ($21 million, after tax or $0.03 per diluted share) charge to earnings due to “make whole” payments associated with the
retirement of certain of the Beckman Coulter debt.
• In April 2011, the Company sold its Pacific Scientific Aerospace business for a sale price of $680 million in cash.
• The Company’s 2011 restructuring activities used approximately $49 million in cash during 2011.
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Source: DANAHER CORP /DE/, 10-K, February 24, 2012 Powered by Morningstar® Document Research℠
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