Danaher 2011 Annual Report Download - page 94

Table of Contents
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
 
Service cost $1.6 $ 0.9
Interest cost 9.5 6.3
Amortization of loss 4.0 2.3
Amortization of prior service credit (5.9) (7.9)
Curtailment loss 3.0 —
Net periodic benefit cost $ 12.2 $1.6
Included in accumulated other comprehensive income at December 31, 2011 are the following amounts that have not yet been recognized in net periodic benefit
cost: unrecognized prior service credits of $16 million ($10 million, net of tax) and unrecognized actuarial losses of $54 million ($34 million, net of tax). The
unrecognized losses and prior service credits, net, is calculated as the difference between the actuarially determined projected benefit obligation and the value of
the plan assets less accrued benefit costs as of December 31, 2011. The prior service credits and actuarial loss included in accumulated comprehensive income
and expected to be recognized in net periodic benefit costs during the year ending December 31, 2012 is $6 million ($4 million, net of tax) and $4 million ($2
million, net of tax), respectively.
The following table sets forth benefit payments, which reflect expected future service, as appropriate, expected to be paid in the periods indicated ($ in
millions):

2012 $ 21.8
2013 21.7
2014 21.8
2015 22.1
2016 22.4
2017-2021 109.7
 
The Company’s operating leases extend for varying periods of time up to twenty years and, in some cases, contain renewal options that would extend existing
terms beyond twenty years. Future minimum rental payments for all operating leases having initial or remaining non-cancelable lease terms in excess of one
year are $195 million in 2012, $156 million in 2013, $124 million in 2014, $95 million in 2015, $76 million in 2016 and $134 million thereafter. Total
rent expense for all operating leases was $210 million, $146 million and, $132 million, for the years ended December 31, 2011, 2010 and 2009, respectively.
The Company generally accrues estimated warranty costs at the time of sale. In general, manufactured products are warranted against defects in material and
workmanship when properly used for their intended purpose, installed correctly, and appropriately maintained. Warranty period terms depend on the nature of
the product and range from 90 days up to the life of the product. The amount of the accrued warranty liability is determined based on historical information
such as past experience, product failure rates or number of units repaired, estimated cost of material and labor, and in certain instances estimated property
damage. The accrued warranty liability is reviewed on a quarterly basis and may be adjusted as additional information regarding expected warranty costs
becomes known.
In certain cases, the Company will sell extended warranty or maintenance agreements. The proceeds from these agreements is deferred and recognized as
revenue over the term of the agreement.
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Source: DANAHER CORP /DE/, 10-K, February 24, 2012 Powered by Morningstar® Document Research℠
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