Danaher 2011 Annual Report Download - page 24

Table of Contents

At December 31, 2011, the net carrying value of our goodwill and other indefinite lived intangible assets totaled approximately $17.1 billion. In accordance
with generally accepted accounting principles, we periodically assess these assets to determine if they are impaired. Significant negative industry or economic
trends, disruptions to our business, inability to effectively integrate acquired businesses, unexpected significant changes or planned changes in use of the
assets, divestitures and market capitalization declines may impair our goodwill and other indefinite lived intangible assets. Any charges relating to such
impairments would adversely affect our results of operations in the periods recognized.

Sales and purchases in currencies other than the U.S. dollar expose us to fluctuations in foreign currencies relative to the U.S. dollar and may adversely affect
our financial statements. Increased strength of the U.S. dollar will increase the effective price of our products sold in U.S. dollars into other countries, which
may require us to lower our prices or adversely affect sales to the extent we do not increase local currency prices. Decreased strength of the U.S. dollar could
adversely affect the cost of materials, products and services purchased overseas. Our sales and expenses are also translated into U.S. dollars for reporting
purposes and the strengthening or weakening of the U.S. dollar could result in unfavorable translation effects. In addition, certain of our businesses may
invoice customers in a currency other than the business’ functional currency, and movements in the invoiced currency relative to the functional currency
could also result in unfavorable translation effects.


We are subject to income taxes in the U.S. and in various non-U.S. jurisdictions. Please see the MD&A for a discussion of the factors that may adversely
affect our effective tax rate and decrease our profitability in any period. The impact of these factors may be substantially different from period to period. In
addition, the amount of income taxes we pay is subject to ongoing audits by U.S. federal, state and local tax authorities and by non-U.S. tax authorities. Due
to the potential for changes to tax law and the ambiguity of tax laws, the subjectivity of factual interpretations and other factors, our estimates of income tax
liabilities may differ from actual payments or assessments. If these audits result in payments or assessments different from our reserves, our future results
may include unfavorable adjustments to our tax liabilities. Intercompany transactions associated with the sale of inventory, services and intellectual property
are complex and can also affect our tax liabilities.

We are subject to a variety of litigation and similar proceedings incidental to our business (or the business operations of previously owned entities), including
claims for damages arising out of the use of products or services and claims relating to intellectual property matters, employment matters, tax matters,
commercial disputes, competition and sales and trading practices, environmental matters, personal injury, insurance coverage and acquisition or divestiture-
related matters. These lawsuits may include claims for compensatory damages, punitive and consequential damages and/or injunctive relief. The defense of
these lawsuits may divert our management’s attention, we may incur significant expenses in defending these lawsuits, and we may be required to pay damage
awards or settlements or become subject to equitable remedies that could adversely affect our financial statements. Moreover, any insurance or indemnification
rights that we may have may be insufficient or unavailable to protect us against such losses. In addition, developments in legal proceedings in any given
period may require us to adjust the loss contingency estimates that we have recorded in our financial statements, make estimates for liabilities or assets
previously not susceptible of reasonable estimates or pay cash settlements or judgments. Any of these developments could adversely affect our financial
statements in any particular period. We cannot assure you that our liabilities in connection with litigation and similar proceedings will not exceed our estimates
or adversely affect our financial statements and reputation. However, based on the information we currently have we do not believe that it is reasonably
possible that any amounts we may be required to pay in connection with litigation and similar proceedings in excess of our reserves as of December 31, 2011
will have a material effect on our financial statements.
22
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.