Danaher 2011 Annual Report Download - page 35

Table of Contents
Operating profit margins were 16.3% in the year ended December 31, 2010 as compared to 13.7% for the year ended December 31, 2009. The increase in
operating profit margins during 2010 is primarily a result of higher sales volumes in 2010 compared to 2009 as well as cost savings attributable to the
Company’s 2009 restructuring activities. Year-over-year operating margin comparisons also benefited from approximately 160 basis points of incremental
restructuring costs incurred during 2009 as compared to 2010. The favorable settlement of litigation with Align Technologies in the third quarter 2009
adversely impacted year-over-year operating profit margin comparisons by 75 basis points. The net dilutive effect of acquired businesses, 2009 divestitures
and the operating profit margin impact of contributing certain businesses to the Apex joint venture in 2010 adversely impacted year-over-year operating profit
margin comparisons by approximately 65 basis points. 2010 acquisition related charges associated with fair value adjustments to acquired inventory and
deferred revenue balances as well as 2010 transaction costs deemed significant by the Company (net of comparable acquisition related charges and costs
recorded in 2009) also adversely impacted year-over-year operating profit margin comparisons by 35 basis points as such charges and costs were greater in
2010 than in 2009. The Company deems acquisition-related transaction costs incurred in a given period to be significant (generally relating to the Company’s
larger acquisitions) if it determines that such costs exceed the range of acquisition-related transaction costs typical for the Company in a given period.
Business Segments
The following table summarizes sales by business segment for each of the periods indicated ($ in millions):

  
Test & Measurement $ 3,390.9 $2,832.9 $ 2,221.3
Environmental 2,939.6 2,738.0 2,418.7
Life Sciences & Diagnostics 4,627.4 2,298.3 1,484.9
Dental 2,011.2 1,824.6 1,657.0
Industrial Technologies 3,121.4 2,540.6 2,126.9
Businesses contributed to Apex joint venture — 315.6 607.9
Total $16,090.5 $12,550.0 $10,516.7

The Company’s Test & Measurement segment is a leading global provider of electronic measurement instruments and monitoring, management and
optimization tools for communications and enterprise networks and related services. The segment’s products are used in the design, development,
manufacture, installation, deployment and operation of electronics equipment and communications networks and services. Customers for these products and
services include manufacturers of electronic instruments; service, installation and maintenance professionals; manufacturers who design, develop,
manufacture and install network equipment; and service providers who implement, maintain and manage communications networks and services. Also
included in the Test & Measurement segment are the Company’s mobile tool and wheel service businesses.


  
Sales $3,390.9 $2,832.9 $2,221.3
Operating profit 751.2 572.9 301.4
Depreciation and amortization 126.6 107.8 93.5
Restructuring and other related charges 18.8 — 67.7
Operating profit as a % of sales 22.2% 20.2% 13.6%
Depreciation and amortization as a % of sales 3.7% 3.8% 4.2%
Restructuring and other related charges as a % of sales 0.6% — 3.0%
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Source: DANAHER CORP /DE/, 10-K, February 24, 2012 Powered by Morningstar® Document Research℠
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