Danaher 2011 Annual Report Download - page 70

Table of Contents
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Business— Danaher Corporation (the “Company”) designs, manufactures and markets professional, medical, industrial and commercial products and
services, which are characterized by strong brand names, innovative technology and major market positions. The Company operates in five business
segments: Test & Measurement, Environmental, Life Sciences & Diagnostics, Dental and Industrial Technologies. 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. Also included in the Test & Measurement segment are the Company’s mobile tool and
wheel service businesses. The Company’s Environmental segment provides products that help protect customers’ water supply and air quality and serves two
primary markets: water quality and retail/commercial petroleum. The Company’s water quality business is a global leader in water quality analysis and
treatment, providing instrumentation and disinfection systems to help analyze and manage the quality of ultra pure, potable and waste water in residential,
commercial, industrial and natural resource applications. The Company’s retail/commercial petroleum business is a leading worldwide provider of products
and services for the retail/commercial petroleum market. In the Life Sciences & Diagnostics segment, the Company’s diagnostics businesses offer a broad
range of analytical instruments, reagents, consumables, software and services that hospitals, physician’s offices, reference laboratories and other critical care
settings use to diagnose disease and make treatment decisions. The Company’s life sciences businesses offer a broad range of research and clinical tools that
are used by scientists to study cells and cell components to gain a better understanding of complex biological processes. Pharmaceutical and biotechnology
companies, universities, medical schools and research institutions use these tools to study the causes of disease, identify new therapies and test new drugs and
vaccines. The Company’s Dental segment is a leading worldwide provider of a broad range of equipment, consumables and services for the dental market
focused on driving technological innovations that help dental professionals improve clinical outcomes and enhance productivity. The Company’s Industrial
Technologies segment designs and manufactures components and systems that are typically incorporated by original equipment manufacturers and system
integrators for sale into a diverse set of applications and end-markets. The businesses in this segment also provide service and support, including helping
customers with integration and installation and providing services to ensure performance and up-time. The Industrial Technologies segment consists of two
strategic lines of business, product identification and motion, as well as the sensors and controls, defense and engine retarder businesses.
Accounting Principles—The consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany balances and
transactions have been eliminated upon consolidation. The consolidated financial statements also reflect the impact of non-controlling interests. Non-controlling
interests do not have a significant impact on the Company’s consolidated results of operations, therefore earnings and earnings per share attributable to non-
controlling interests are not presented separately in the Company’s Consolidated Statements of Earnings. Earnings attributable to non-controlling interests have
been reflected in selling, general and administrative expenses and were insignificant in all periods presented.
Use of Estimates—The preparation of these financial statements in conformity with accounting principles generally accepted in the United States requires
management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of
contingent assets and liabilities. The Company bases these estimates on historical experience, the current economic environment and on various other
assumptions that are believed to be reasonable under the circumstances. However, uncertainties associated with these estimates exist and actual results may
differ from these estimates.
Stock Split—On May 11, 2010, the Company’s Board of Directors approved a two-for-one stock split (effected in the form of a dividend by issuing one
additional share of common stock for each issued share of common stock) which was paid on June 10, 2010 to stockholders of record at the close of business
on May 25, 2010. All prior period share and per share amounts set forth in this report, including earnings per share and the weighted average number of
shares outstanding for basic and diluted earnings per share for each respective period, have been adjusted to reflect the stock split.
Cash and Equivalents—The Company considers all highly liquid investments with a maturity of three months or less at the date of purchase to be cash
equivalents.
Accounts Receivable and Allowances for Doubtful Accounts —All trade accounts, contract and finance receivables are reported on the accompanying
Consolidated Balance Sheet adjusted for any write-offs and net of allowances for doubtful accounts.
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Source: DANAHER CORP /DE/, 10-K, February 24, 2012 Powered by Morningstar® Document Research℠
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