Danaher 2011 Annual Report Download - page 100

Table of Contents
The Company files numerous consolidated and separate income tax returns in the United States Federal jurisdiction and in many state and foreign
jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal income tax examinations for years before 2006 and is no longer subject to
state, local and foreign income tax examinations by tax authorities for years before 2000.
Management estimates that it is reasonably possible that the amount of unrecognized tax benefits may be reduced by approximately $53 million within twelve
months as a result of resolution of worldwide tax matters, tax audit settlements and/or statute expirations.
The Company operates in various non–U.S. tax jurisdictions where “tax holiday” income tax incentives have been granted for a specified period. These tax
benefits are not material to the Company’s financial statements.
As of December 31, 2011, the Company held $523 million of cash and cash equivalents outside of the United States. Although repatriation of some foreign
balances may be restricted by local laws, most of the amounts held outside the United States could be repatriated to the United States but, under current law,
could be subject to U.S. federal income taxes, less applicable foreign tax credits. For most of its foreign subsidiaries, the Company makes an election
regarding the amount of earnings intended for indefinite reinvestment, with the balance available to be repatriated to the United States. A deferred tax liability
has been accrued for the funds that are available to be repatriated to the United States. No provision for U.S. income taxes has been made with respect to
earnings that are planned to be reinvested indefinitely outside the United States, and the amount of U S. income taxes that may be applicable to such earnings
is not readily determinable given the various tax planning alternatives the Company could employ if it repatriated these earnings. The cash that the Company’s
foreign subsidiaries hold for indefinite reinvestment is generally used to finance foreign operations and investments, including acquisitions. As of
December 31, 2011 and 2010, the total amount of earnings planned to be reinvested indefinitely outside the United States for which deferred taxes have not
been provided was approximately $7.8 billion and $6.5 billion, respectively.
 
Basic net earnings per share (“EPS”) from continuing operations is calculated by dividing net earnings from continuing operations by the weighted-average
number of common shares outstanding for the applicable period. Diluted net EPS from continuing operations is computed based on the weighted average
number of common shares outstanding increased by the number of additional shares that would have been outstanding had the potentially dilutive common
shares been issued and reduced by the number of shares the Company could have repurchased with the proceeds from the issuance of the potentially dilutive
shares. For the years ended December 31, 2011 and December 31, 2009, approximately 3 million and 5 million options to purchase shares, respectively, were
not included in the diluted earnings per share calculation as the impact of their inclusion would have been anti-dilutive. There were no anti-dilutive options for
the year ended December 31, 2010. Information related to the calculation of net earnings from continuing operations per share of common stock is summarized
as follows (in millions, except per share amounts):
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Basic EPS $1,935.3 676.2 $2.86
Adjustment for interest on convertible debentures 7.1 —
Incremental shares from assumed exercise of dilutive options and vesting of
dilutive RSUs — 11.3
Incremental shares from assumed conversion of the convertible debentures — 13.7
Diluted EPS $ 1,942.4 701.2 $ 2.77
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Source: DANAHER CORP /DE/, 10-K, February 24, 2012 Powered by Morningstar® Document Research℠
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