Danaher 2011 Annual Report Download - page 74

Table of Contents
agreement acquired as a part of a business combination. The currency swap does not qualify for hedge accounting, and, as a result, changes in the fair value
of the currency swap are reflected in earnings. Refer to Note 8 for additional information.
Accumulated Other Comprehensive Income (Loss) —The components of accumulated other comprehensive income (loss) as of December 31 are summarized
below. Foreign currency translation adjustments are generally not adjusted for income taxes as they relate to indefinite investments in non-US subsidiaries ($ in
millions).
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January 1, 2009 $ 237.5 — $(340.6) $(103.1)
Increase 373.2 $ 83.5 30.5 487.2
Income tax expense — (29.2) (8.0) (37.2)
December 31, 2009 610.7 54.3 (318.1) 346.9
Increase (decrease) 0.6 37.9 (37.9) 0.6
Income tax (expense) benefit — (13.3) 11.1 (2.2)
December 31, 2010 611.3 78.9 (344.9) 345.3
(Decrease) increase (226.8) 30.0 (261.9) (458.7)
Income tax (expense) benefit — (14.3) 90.8 76.5
December 31, 2011 $384.5 $94.6 $ (516.0) $ (36.9)
See Notes 11 and 12 for additional information related to the unrecognized pension and post-retirement cost components and Note 8 for the available-for-sale
securities component of accumulated other comprehensive income (loss).
Accounting for Stock-Based Compensation — The Company accounts for stock-based compensation by measuring the cost of employee services received in
exchange for all equity awards granted, including stock options, restricted stock units (“RSUs”) and restricted shares, based on the fair value of the award as
of the grant date. Equity-based compensation expense is recognized net of an estimated forfeiture rate on a straight-line basis over the requisite service period of
the award, except that in the case of RSUs, compensation expense is recognized on an accelerated attribution method.
Pension & Post Retirement Benefit Plans —The Company measures its pension and post retirement plans’ assets and its obligations that determine the
respective plan’s funded status as of the end of the Company’s fiscal year, and recognizes an asset for a plan’s over funded status or a liability for a plan’s
under funded status in its balance sheet. Changes in the funded status of the plans are recognized in the year in which the changes occur and reported in
comprehensive income (loss).
Recently Issued Accounting Pronouncements —In September 2011, updated accounting guidance was issued requiring additional disclosures about an
employer’s participation in multiemployer retirement benefit plans. The amended disclosures, which are to be applied retrospectively for all prior periods
presented, are effective for annual periods for fiscal years ending after December 15, 2011, with early adoption permitted. As the new guidance is related to
disclosure only, the adoption of this guidance did not have a material effect on the Company’s results of operations, financial position or cash flows. Refer to
Note 11 for additional information related to the Company’s multiemployer pension and retirement plans.
In September 2011, updated accounting guidance was issued which allows entities to perform a qualitative assessment on goodwill impairment to determine
whether it is more likely than not (defined as having a likelihood of more than 50 percent) that the fair value of a reporting unit is less than its carrying amount
as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. This guidance is effective for goodwill impairment tests
performed in interim and annual periods for fiscal years beginning after December 15, 2011, with early adoption permitted. The implementation of this
guidance is not expected to have a material impact on the Company’s results of operations, financial position or cash flows.
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Source: DANAHER CORP /DE/, 10-K, February 24, 2012 Powered by Morningstar® Document Research℠
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