Danaher 2011 Annual Report Download - page 82

Table of Contents
Finite-lived intangible assets are amortized over their legal or estimated useful life. The following summarizes the gross carrying value and accumulated
amortization for each major category of intangible asset ($ in millions):
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Finite – Lived Intangibles:
Patents & technology $1,180.0 $(384.8) $761.6 $(295.9)
Customer relationships and other intangibles 3,009.0 (633.2) 1,857.6 (453.2)
Total finite – lived intangibles 4,189.0 (1,018.0) 2,619.2 (749.1)
Indefinite – Lived Intangibles:
Trademarks & trade names 2,669.2 — 1,437.6 —
Total intangibles $6,858.2 $(1,018.0) $4,056.8 $(749.1)
During 2011, the Company acquired finite-lived intangible assets, consisting primarily of customer relationships and patents, with a weighted-average life of
15 years. Refer to Note 2 for additional information on the intangible assets acquired.
Total intangible amortization expense in 2011, 2010 and 2009 was $284 million, $199 million and $156 million, respectively. Based on the intangible assets
recorded as of December 31, 2011, amortization expense is estimated to be $324 million during 2012, $290 million during 2013, $261 million during 2014,
$235 million during 2015 and $211 million during 2016.
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Accounting standards define fair value based on an exit price model, establish a framework for measuring fair value where the Company’s assets and
liabilities are required to be carried at fair value and provide for certain disclosures related to the valuation methods used within a valuation hierarchy as
established within the accounting standards. This hierarchy prioritizes the inputs into three broad levels as follows. Level 1 inputs are quoted prices
(unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets and liabilities in active markets, quoted
prices for identical or similar assets in markets that are not active, inputs other than quoted prices that are observable for the asset or liability, including
interest rates, yield curves and credit risks, or inputs that are derived principally from or corroborated by observable market data through correlation. Level 3
inputs are unobservable inputs based on the Company’s assumptions used to measure assets and liabilities at fair value. A financial asset or liability’s
classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
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Source: DANAHER CORP /DE/, 10-K, February 24, 2012 Powered by Morningstar® Document Research℠
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