SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2022

SIGNIFICANT ACCOUNTING POLICIES

Summarized activity in the allowance for doubtful accounts

(millions)	2022		2021		2020
Beginning balance		$52.8		$68.4		$38.8
Adoption of new standard		-		-		4.3
Bad debt expense		38.1		15.0		57.7
Write-offs		(21.1)		(27.4)		(31.6)
Other (a)		2.1		(3.2)		(0.8)
Ending balance		$71.9		$52.8		$68.4

(a) Other amounts are primarily the effects of changes in currency translations and acquired balances.

Changes in the carrying amount of goodwill

			Global		Global
	Global		Institutional		Healthcare &
(millions)	Industrial		& Specialty		Life Sciences		Other		Total
December 31, 2020		$4,287.9		$564.1		$909.8		$245.1		$6,006.9
Current year business combinations (a)		6.9		17.2		2,123.2		-		2,147.3
Prior year business combinations (b)		(0.9)		-		-		-		(0.9)
Effect of foreign currency translation		(23.8)		(4.8)		(58.8)		(2.0)		(89.4)
December 31, 2021		$4,270.1		$576.5		$2,974.2		$243.1		$8,063.9
Prior year business combinations (b)		0.4		-		253.4		-		253.8
Effect of foreign currency translation		(188.7)		(8.9)		(102.2)		(5.2)		(305.0)
December 31, 2022		$4,081.8		$567.6		$3,125.4		$237.9		$8,012.7

(a) Represents goodwill associated with current year acquistions. For 2021, approximately $2,209 million of goodwill related to businesses acquired is expected to be tax deductible related to the acquisitions of Purolite and National Wiper Alliance, Inc. (refer to Footnote 4 for additional information).

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

Weighted-average useful life by type of asset

The weighted-average useful life by type of amortizable asset at December 31, 2022 were as follows:

(years)

Customer relationships	15
Patents	14
Trademarks	13
Other technology	12

Future estimated amortization expenses

(millions)
2020	$219
2021	239
2022	320
2023	299
2024	291
2025	285
2026	271
2027	146

Computations of the basic and diluted EPS

The computations of the basic and diluted earnings attributable to Ecolab per share amounts were as follows:

(millions, except per share)	2022		2021		2020
Net income from continuing operations attributable to Ecolab		$1,091.7		$1,129.9		$967.4
Net loss from discontinued operations, net of tax		-		-		(2,172.5)
Net income (loss) attributable to Ecolab		$1,091.7		$1,129.9		($1,205.1)
Weighted-average common shares outstanding
Basic		285.2		286.3		287.0
Effect of dilutive stock options and units		1.4		2.8		3.3
Diluted		286.6		289.1		290.3
Earnings (loss) attributable to Ecolab per common share
Basic EPS
Continuing operations		$3.83		$3.95		$3.37
Discontinued operations		$-		$-		($7.57)
Earnings (loss) attributable to Ecolab		$3.83		$3.95		($4.20)
Diluted EPS
Continuing operations		$3.81		$3.91		$3.33
Discontinued operations		$-		$-		($7.48)
Earnings (loss) attributable to Ecolab		$3.81		$3.91		($4.15)
Anti-dilutive securities excluded from the computation of diluted EPS		3.9		1.9		1.9
Amounts do not necessarily sum due to rounding.

Other significant accounting policies

Policy	Note
Fair value measurements	8
Derivatives and hedging transactions	9
Share-based compensation	12
Research and development expenditures	15
Legal contingencies	16
Pension and post-retirement benefit plans	17
Reportable segments	19

Schedule of new accounting pronouncements

New Accounting Pronouncements

Standards That Are Not Yet Adopted:
			Required
	Date of		Date of	Effect on the
Standard	Issuance	Description	Adoption	Financial Statements
ASU 2021-08 - Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers	October 2021	Update to improve the accounting for acquired revenue contracts with customers in a business combination by addressing diversity in practice and inconsistency related to the recognition of an acquired contract liability and payment terms and their effect on subsequent revenue recognized by the acquirer.	January 1, 2023.	The Company is currently evaluating any potential future impacts on the Company's financial statements, any such changes would be prospective.

Standards That Were Adopted:
	Date of		Date of	Effect on the
Standard	Issuance	Description	Adoption	Financial Statements
ASU 2020-04 - Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting ASU 2021-01 - Reference Rate Reform (Topic 848): Scope ASU 2022-06 - Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848	March 2020	Certain LIBOR rates, widely used reference rates for pricing financial products, were discontinued on December 31, 2021. This standard provides optional expedients and exceptions if certain criteria are met when accounting for contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform.	Application of guidance is optional until the options and expedients expire on December 31, 2024.	The Company evaluated contracts whose terms previously included references to LIBOR or one of its equivalents and identified two contracts requiring modifications of the interest rate provisions included therein. The Company applied certain of the expedients included in ASC 848 allowing the Company to account for the contract modifications prospectively. There were no financial statement impacts at the time of modification.
ASU 2021 -10 - Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance	November 2021	Update to increase the transparency of government assistance including annual disclosure of the types of assistance accounted for under a grant or contribution method of accounting, an entity’s accounting for the assistance, and the effect of the assistance on an entity’s financial statements.	Annual period beginning January 1, 2022.	The adoption of this standard did not have a significant impact on the Company's financial statements.