Danaher 2011 Annual Report Download - page 88

Table of Contents
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The Company has noncontributory defined benefit pension plans which cover certain of its U.S. employees. Benefit accruals under most of these plans have
ceased. The Company also has noncontributory defined benefit pension plans which cover certain of its non-U.S. employees, and under certain of these
plans, benefit accruals continue. In general, the Company’s policy is to fund these plans based on considerations relating to legal requirements, underlying
asset returns, the plan’s funded status, the anticipated deductibility of the contribution, local practices, market conditions, interest rates, and other factors.
The following sets forth the funded status of the U.S. and non-U.S. plans as of the most recent actuarial valuations using measurement dates of December 31,
2011 and 2010 ($ in millions):
 
   
Change in pension benefit obligation:
Benefit obligation at beginning of year $1,382.4 $1,309.3 $685.4 $646.1
Service cost 15.0 2.2 17.4 12.3
Interest cost 91.1 71.1 39.2 30.4
Employee contributions — — 5.7 2.8
Benefits paid and other (120.3) (89.0) (38.8) (35.5)
Acquisitions 852.7 56.5 323.5 8.8
Actuarial loss 159.2 32.3 49.2 29.7
Amendments, settlements and curtailments (64.0) — (16.5) (0.4)
Foreign exchange rate impact — — (26.6) (8.8)
Benefit obligation at end of year 2,316.1 1,382.4 1,038.5 685.4
Change in plan assets:
Fair value of plan assets at beginning of year 1,073.6 916.4 406.7 374.7
Actual return on plan assets (0.7) 109.9 8.2 28.0
Employer contributions 131.9 90.5 45.4 32.7
Employee contributions — — 5.6 2.8
Plan settlements — — (12.7) (0.5)
Benefits paid and other (120.3) (89.0) (38.8) (35.5)
Acquisitions 650.9 45.8 243.3 0.3
Foreign exchange rate impact — — (14.8) 4.2
Fair value of plan assets at end of year 1,735.4 1,073.6 642.9 406.7
Funded status (580.7) (308.8) (395.6) (278.7)
Less: Funded status attributable to discontinued operations 1.9 (1.7) 4.6 9.0
Accrued benefit cost – continuing operations $ (578.8) $(310.5) $(391.0) $(269.7)
The significant change in the benefit obligation and plan assets from acquisitions during 2011 reflects the impact of the Beckman Coulter acquisition in June
2011. Refer to Note 2.

 
   
Discount rate 4.50% 5.20% 4.10% 4.70%
Rate of compensation increase 4.00% 4.00% 3.00% 3.00%
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Source: DANAHER CORP /DE/, 10-K, February 24, 2012 Powered by Morningstar® Document Research℠
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