Danaher 2011 Annual Report Download - page 81

Table of Contents
 
The classes of property, plant and equipment as of December 31 are summarized as follows ($ in millions):
 
Land and improvements $180.1 $119.3
Buildings 937.4 728.2
Machinery and equipment 2,117.7 1,717.4
Customer-leased instruments 531.8 —
3,767.0 2,564.9
Less accumulated depreciation (1,666.0) (1,435.1)
$2,101.0 $1,129.8
 
As discussed in Note 2, goodwill arises from the purchase price for acquired businesses exceeding the fair value of tangible and intangible assets acquired less
assumed liabilities and non-controlling interests. Management assesses the goodwill of each of its reporting units for impairment at least annually at the
beginning of the fourth quarter and as “triggering” events occur. As of December 31, 2011, the Company had twenty eight reporting units for goodwill
impairment testing. The carrying value of the goodwill included in each individual reporting unit ranges from approximately $7 million to approximately $3.7
billion. The Company’s annual impairment test was performed as of the first day of the Company’s fiscal fourth quarters of 2011, 2010 and 2009 and no
impairment was identified. Reporting units resulting from recent acquisitions generally present the highest risk of impairment. Management believes the
impairment risk associated with these reporting units typically decreases as such businesses are integrated into the Company and positioned for improved
future earnings growth. In measuring the fair value of its reporting units, management relies on a number of factors including operating results, business
plans, economic projections, anticipated future cash flows, and transactions and marketplace data. The factors used by management in its impairment
analysis are inherently subject to uncertainty. While the Company believes it has made reasonable estimates and assumptions to calculate the fair value of its
reporting units, if actual results are not consistent with management’s estimates and assumptions, goodwill and other intangible assets may be overstated and
a charge would need to be taken against net earnings.
The following table shows the rollforward of goodwill reflected in the financial statements resulting from the Company’s activities during 2011 and 2010 ($ in
millions).

 


 






 
Balance January 1, 2010 $2,687.9 $1,329.6 $1,512.2 $2,043.2 $1,705.8 $173.8 $9,452.5
Attributable to 2010 acquisitions 308.5 52.6 599.8 131.4 65.5 — 1,157.8
Goodwill of businesses contributed to Apex joint
venture — — — — — (173.8) (173.8)
Adjustments due to finalization of purchase price
allocations 4.8 4.2 — (8.4) 4.3 — 4.9
Effect of foreign currency translation 0.4 (2.8) 10.4 (51.7) (4.0) — (47.7)
Balance December 31, 2010 3,001.6 1,383.6 2,122.4 2,114.5 1,771.6 — 10,393.7
Attributable to 2011 acquisitions 35.4 90.6 3,758.3 2.8 277.6 — 4,164.7
Adjustments due to finalization of purchase price
allocations 0.4 (3.9) (5.7) 26.8 — — 17.6
Effect of foreign currency translation 0.6 (21.1) (33.0) (22.0) (26.2) — (101.7)
Balance December 31, 2011 $3,038.0 $ 1,449.2 $ 5,842.0 $2,122.1 $2,023.0 $ — $14,474.3
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Source: DANAHER CORP /DE/, 10-K, February 24, 2012 Powered by Morningstar® Document Research℠
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