Danaher 2011 Annual Report Download - page 50

Table of Contents
• The Company contributed approximately $132 million in cash to the Company’s U.S. defined benefit pension plan and approximately $45
million to the Company’s non-U.S. defined benefit pension plans during 2011.
• As of December 31, 2011, the Company held approximately $537 million of cash and cash equivalents.

The Company continues to generate substantial cash from operating activities and remains in a strong financial position. Cash flows from operating activities
can fluctuate significantly from period to period as working capital needs and the timing of payments for items such as income taxes, restructuring activities,
pension funding and other items impact reported cash flows.
Operating cash flows from continuing operations were approximately $2.7 billion for 2011, an increase of $713 million, or 35% as compared to 2010. The
year-over-year change in operating cash flows from 2010 to 2011 was primarily attributable to the following factors:
• Earnings from continuing operations increased by $217 million in 2011 as compared to 2010. Included in 2010 earnings from continuing
operations is a non-cash gain of $291 million recognized on the formation of the Apex joint venture, which gain did not recur in 2011 which
further contributes to the year-over-year operating cash flow comparison.
• Depreciation and amortization expense increased by $247 million in 2011 compared to 2010. The increased depreciation and amortization expense
impacts earnings without a corresponding impact to operating cash flows.
• The aggregate of trade accounts receivable, inventories and trade accounts payable provided $63 million in operating cash flows during 2011, a
$258 million improvement over 2010 during which these items used $195 million in operating cash flows.
• Cash income tax payments, net of refunds, from continuing operations increased by $21 million during 2011 as compared to 2010. Net cash
payments for income taxes from continuing operations totaled $303 million and $282 million in 2011 and 2010, respectively.
• Partially offsetting these favorable cash flows during 2011 were additional pension contributions and employee benefit payments as compared to
2010.
Operating cash flows from continuing operations were approximately $2.0 billion for 2010, an increase of $296 million, or 17% as compared to 2009. The
increase in operating cash flow was primarily attributable to the increase in earnings in 2010 as compared to 2009. Partially offsetting this benefit was an
investment in trade accounts receivable, inventories and accounts payable which in the aggregate used $195 million of operating cash flows during 2010 as
compared to contributing $214 million in operating cash flows during 2009. The increased use of cash reflects increased inventory and accounts receivable
levels, partially offset by increased accounts payable levels, associated with increased business activity.
In connection with the Company’s restructuring activities, the Company records appropriate accruals for the costs of closing facilities, severing personnel
and, in connection with acquisitions, integrating the acquired businesses into existing Company operations. Cash flows from operating activities are reduced
by the amounts expended against the various accruals established in connection with these activities. During 2011, the Company paid approximately $49
million related to its 2011 restructuring activities. During 2010, the Company paid approximately $110 million related to its 2009 restructuring activities. The
Company anticipates cash payments of approximately $124 million during 2012 related to its 2011 restructuring activities. Please refer to Note 18 to the
Consolidated Financial Statements for additional information about these expenditures.

Cash flows relating to investing activities consist primarily of cash used for acquisitions and capital expenditures and cash proceeds from divestitures of
businesses or assets.
Net cash used in investing activities was approximately $5.8 billion during 2011 compared to approximately $2.3 billion of net cash used in 2010 and
approximately $943 million of net cash used in 2009.
48
Source: DANAHER CORP /DE/, 10-K, February 24, 2012 Powered by Morningstar® Document Research℠
The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,
except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.