Danaher 2011 Annual Report Download - page 91

Table of Contents
Venture capital and partnership investments are valued based on the information provided by the asset fund managers, which reflects the plan’s share of the
fair value of the net assets of the investment. The investments are valued using a combination of discounted cash flows, earnings and market multiples and
through reference to the quoted market prices of the underlying investments held by the venture or partnership where available. Valuation adjustments reflect
changes in operating results, financial condition, or prospects of the applicable portfolio company.
Real estate investments are valued periodically using discounted cash flow models which consider long-term lease estimates, future rental receipts and
estimated residual values. The real estate investment fund managers supplement the discounted cash flow valuations with third-party appraisals that are
performed on either a quarterly or an annual basis.
The methods described above may produce a fair value estimate that may not be indicative of net realizable value or reflective of future fair values.
Furthermore, while the Company believes the valuation methods are appropriate and consistent with the methods used by other market participants, the use of
different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the
reporting date.
The table below sets forth a summary of changes in the fair value of the Level 3 investments for the years ended December 31, 2011 and 2010 ($ in millions):
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
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  
Balance, January 1, 2010 $ 6.4 $52.2 $100.2 $158.8
Actual return on plan assets:
— Relating to assets sold during the period (0.1) (1.0) — (1.1)
— Relating to assets still held at December 31, 2010 0.5 1.9 (0.7) 1.7
Acquisitions — 9.9 — 9.9
Purchases, sales, issuances and settlements (net) (6.1) (0.4) 2.2 (4.3)
Balance, December 31, 2010 $0.7 $62.6 $101.7 $165.0
Actual return on plan assets:
— Relating to assets sold during the period — — 0.9 0.9
— Relating to assets still held at December 31, 2011 — (16.0) 8.6 (7.4)
Acquisitions — 114.2 40.2 154.4
Purchases — 7.0 2.3 9.3
Sales (0.7) (1.3) (1.7) (3.7)
Settlements — (2.6) — (2.6)
Balance, December 31, 2011 $ — $163.9 $ 152.0 $315.9
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During 2011, the Company contributed approximately $132 million to its U.S. defined benefit pension plan and approximately $45 million to its non-U.S.
defined benefit pension plans. During 2012, the Company’s cash contribution requirements for its U.S. plan are not expected to be significant. The
Company’s cash contribution requirements for its non-U.S. plans are expected to be approximately $50 million, although the ultimate amounts to be
contributed to the U.S. and non-U.S. plans depend upon, among other things, legal requirements, underlying asset returns, the plan’s funded status, the
anticipated tax deductibility of the contribution, local practices, market conditions, interest rates and other factors.
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Source: DANAHER CORP /DE/, 10-K, February 24, 2012 Powered by Morningstar® Document Research℠
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