SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2014

Summarized activity in the allowance for doubtful accounts

MILLIONS	2014			2013			2012
Beginning balance	$	81		$	73		$	49
Bad debt expense	23			28			37
Write-offs	(20		)	(21		)	(13		)
Other(a)	(7		)	1			–
Ending balance	$	77		$	81		$	73

(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, 2012	$	2,751.6		$	720.6		$	2,325.3		$	123.0		$	5,920.5
Acquisitions(a)	33.9			—			1,037.9			—			1,071.8
Dispositions	(2.1		)	—			—			—			(2.1		)
Effect of foreign currency translation	(53.9		)	(14.0		)	(57.0		)	(2.4		)	(127.3		)
December 31, 2013	2,729.5			706.6			3,306.2			120.6			6,862.9
Current year acquisitions(a)	18.5			—			9.9			4.6			33.0
Prior year acquisitions(b)	(0.1		)	—			16.9			—			16.8
Dispositions	—			(0.4		)	—			(0.2		)	(0.6		)
Reclassifications(c)	(28.9		)	5.0			23.9			—			—
Effect of foreign currency translation	(76.8		)	(20.0		)	(94.8		)	(3.5		)	(195.1		)
December 31, 2014	$	2,642.2		$	691.2		$	3,262.1		$	121.5		$	6,717.0

(a)

For 2014, the company expects $20.7 million of the goodwill related to businesses acquired to be tax deductible. For 2013, none of the goodwill related to businesses acquired is expected to be tax deductible.

(b)

Represents purchase price allocation adjustments for 2013 acquisitions deemed preliminary as of December 31, 2013.

(c)

Represents immaterial transfers related to certain changes to the company’s reportable segments during the first quarter of 2014.

Weighted-average useful life by type of asset

The weighted-average useful life by type of amortizable asset at December 31, 2014 is as follows:

NUMBER OF YEARS

Customer relationships	14
Trademarks	14
Patents	14
Other technology	8

Future estimated amortization expenses

MILLIONS

2012	$ 237
2013	293
2014	305
2015	299
2016	295
2017	292
2018	286
2019	273

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

MILLIONS
EXCEPT PER SHARE	2014		2013		2012
Net income attributable to Ecolab	$	1,202.8	$	967.8	$	703.6
Weighted-average common shares outstanding
Basic	300.1		299.9		292.5
Effect of dilutive stock options, units and awards	5.8		6.0		6.4
Diluted	305.9		305.9		298.9
Earnings attributable to Ecolab per common share
Basic	$	4.01	$	3.23	$	2.41
Diluted	$	3.93	$	3.16	$	2.35
Anti-dilutive securities excluded from the computation of earnings per share	3.4		1.8		2.6

Other significant accounting policies

POLICY	NOTE	PAGE
Fair value measurements	7	47
Derivatives and hedging transactions	8	48
Share-based compensation	11	51
Legal contingencies	15	54
Pension and post-retirement benefit plans	16	56
Reportable segments	17	61