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SIGNIFICANT ACCOUNTING POLICIES (Tables)
 12 Months Ended
Dec. 31, 2016
SIGNIFICANT ACCOUNTING POLICIES  
Summarized activity in the allowance for doubtful accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

(millions)

      

2016

      

2015

      

2014

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

 
$
75

 

 

 
$
77

 

 

 
$
81

Bad debt expense

 

 
20

 

 

 
26

 

 

 
23

Write-offs

 

 
(25)

 

 

 
(22)

 

 

 
(20)

Other (a)

 

 
(2)

 

 

 
(6)

 

 

 
(7)

Ending balance

 

 
$
68

 

 

 
$
75

 

 

 
$
77

 

(a)

Other amounts are primarily the effects of changes in currency translations and the impact of allowance for returns and credits.

 

Changes in the carrying amount of goodwill

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global

 

Global

 

Global

 

 

 

 

 

 

 

 

(millions)

    

Industrial

    

Institutional

    

Energy

    

Other

    

Total

 

 

December 31, 2014

 

 
$
2,642.2

 

 
$
691.2

 

 
$
3,262.1

 

 
$
121.5

 

 
$
6,717.0

 

 

Current year business combinations (a)

 

 
84.2

 

 
6.1

 

 
45.0

 

 
0.9

 

 
136.2

 

 

Prior year business combinations (b)

 

 
0.7

 

 

 -

 

 

 -

 

 

 -

 

 
0.7

 

 

Dispositions

 

 
(0.4)

 

 

 -

 

 
(0.1)

 

 

 -

 

 
(0.5)

 

 

Reclassifications (c)

 

 
(23.7)

 

 
2.9

 

 
20.8

 

 

 -

 

 

 -

 

 

Effect of foreign currency translation

 

 
(142.2)

 

 
(37.5)

 

 
(176.3)

 

 
(6.6)

 

 
(362.6)

 

 

December 31, 2015

 

 
$
2,560.8

 

 
$
662.7

 

 
$
3,151.5

 

 
$
115.8

 

 
$
6,490.8

 

 

Current year business combinations (a)

 

 

 -

 

 
3.1

 

 
0.6

 

 

 -

 

 
3.7

 

 

Prior year business combinations (b)

 

 
3.5

 

 

 -

 

 
0.1

 

 

 -

 

 
3.6

 

 

Reclassifications (c)

 

 
3.5

 

 
(0.6)

 

 
(2.9)

 

 

 -

 

 

 -

 

 

Effect of foreign currency translation

 

 
(45.5)

 

 
(11.8)

 

 
(55.7)

 

 
(2.1)

 

 
(115.1)

 

 

December 31, 2016

 

 
$
2,522.3

 

 
$
653.4

 

 
$
3,093.6

 

 
$
113.7

 

 
$
6,383.0

 

 

 

(a)

For 2016, the Company expects approximately $3.0 million of the goodwill related to businesses acquired to be tax deductible. For 2015, $45.9 million of the goodwill related to businesses acquired is expected to be tax deductible.

(b)

Represents purchase price allocation adjustments for acquisitions deemed preliminary as of the end of the prior year.

(c)

Represents immaterial reclassifications of beginning balances to conform to the current or prior year presentation due to customer reclassifications across reporting segments completed in the first quarter of the respective year.

Weighted-average useful life by type of asset

 

The weighted-average useful life by type of amortizable asset at December 31, 2016 is as follows:

 

(years)

 

 

 

Customer relationships

    
14

Trademarks

 
14

Patents

 
14

Other technology

 
7

 

Future estimated amortization expenses

 

 

 

 

 

(millions)

 

 

 

2014

 
$
305

 

2015

 
292

 

2016

    
290

 

2017

 
287

 

2018

 
283

 

2019

 
270

 

2020

 
264

 

2021

 
260

 

 

Computations of the basic and diluted earnings attributable to Ecolab per share amounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(millions, except per share)

 

2016

 

2015

 

2014

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to Ecolab

 

 
$
1,229.6

 

 

 
$
1,002.1

 

 

 
$
1,202.8

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average common shares outstanding

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 
292.5

 

 

 
296.4

 

 

 
300.1

Effect of dilutive stock options and units

 

 
4.2

 

 

 
5.0

 

 

 
5.8

Diluted

 

 
296.7

 

 

 
301.4

 

 

 
305.9

 

 

 

 

 

 

 

 

 

 

 

 

Basic EPS

 

 
$
4.20

 

 

 
$
3.38

 

 

 
$
4.01

Diluted EPS

 

 
$
4.14

 

 

 
$
3.32

 

 

 
$
3.93

 

 

 

 

 

 

 

 

 

 

 

 

Anti-dilutive securities excluded from the computation of EPS

 

 
3.6

 

 

 
3.5

 

 

 
3.4

 

Other significant accounting policies

 

 

 

 

Policy

 

Note

Fair value measurements

      

7

Derivatives and hedging transactions

 

8

Share-based compensation

 

11

Research and development expenditures

 

14

Legal contingencies

 

15

Pension and post-retirement benefit plans

 

16

Reportable segments

 

17